Press Release: John Q. Hammons Hotels, Inc.
November 8, 2001
SPRINGFIELD, MO -- John Q. Hammons Hotels, Inc. (AMEX:JQH) yesterday reported basic and diluted loss per share
in the 2001 third quarter of ($0.42), compared to basic and diluted loss per share of ($0.10) in the 2000 third
quarter.
For the three quarters of 2001, basic and diluted loss per share for the Company was ($0.23), compared to ($0.08)
for the same period in 2000. Total revenue was $100.3 million for the third quarter, down 7.6% compared to the
2000 third quarter of $108.5 million. Total earnings before interest expense, taxes, depreciation, and amortization
(EBITDA) were $23.2 million for the third quarter, down 23.9% compared to the 2000 third quarter EBITDA of $30.5
million, reflecting a weak economy and the impact of the terrorist attacks of September 11.
The combined effects of the continued slowing of the domestic economy and the September 11, 2001, terrorist attacks
on New York and Washington, D.C., have adversely affected the lodging industry, as well as the Company's operations.
The Company believes it has incurred canceled business of approximately $16.5 million due to travel interruption
in the third and fourth quarters of 2001, but fully expects half of this business to be rebooked in the future.
The Company's occupancy and Revenue Per Available Room (RevPAR) were off historical levels as much as 25 percentage
points and 35 percent, respectively, in the week immediately after the terrorist attacks, but have slowly been
trending upward toward prior years' levels. For example, in the third week after the attacks, RevPAR was down approximately
13% from prior year, down 8% at five weeks and finally in the last week of October, RevPAR was only off 5% from
prior year. Travel disruptions may continue to affect our business, and may worsen the already slowing economy,
potentially impacting our future results.
In spite of the weaker economy, the Company continued to surpass the RevPAR performance of the hotel industry.
For example, the Company's average room rate for the 2001 third quarter was $98.32, up slightly from the 2000 third
quarter average room rate of $98.30. In comparison, the average room rate for the hotel industry was $83.28 in
the 2001 third quarter, down 3.4% from the 2000 third quarter. The Company's occupancy for the 2001 third quarter
was 61.9%, down 5.8 percentage points from the 2000 third quarter occupancy rate of 67.7%. Occupancy for the hotel
industry was 64.2% for the 2001 third quarter, down 8.0 percentage points from the 2000 third quarter. The Company's
RevPAR was $60.85 for the 2001 third quarter, down 8.5% from $66.52 in the 2000 third quarter. RevPAR for the hotel
industry was $53.44 in the 2001 third quarter, down 11.2% from the 2000 third quarter. RevPAR for the Company was
13.9% above the hotel industry average during the 2001 third quarter.
John Q. Hammons, Chairman and Chief Executive Officer, stated: ``The tragic events of September 11 have disrupted
life across the country, business in general, and the travel industry in particular. The fourth quarter of 2001
will be a challenging environment, but with our quality products and many hotels that are located in secondary
and tertiary markets, we will continue to perform well.''
Although the Company is not developing new hotels, Mr. John Q. Hammons has personally developed two projects that
opened in 2000 and three projects that opened in 2001. The Marriott Courtyard in Springfield, Missouri, opened
April 10, 2000, and the Embassy Suites Hotel in Lincoln, Nebraska, opened May 1, 2000. In 2001, Mr. Hammons opened
a Renaissance Hotel in Richardson, Texas, on May 18, an Embassy Suites Hotel in Nashville, Tennessee (Franklin),
on August 7, and a Marriott Residence Inn in Springfield, Missouri, on September 24. The Company manages all of
these properties.
The Company currently owns and manages 56 hotels, including nine managed hotels, with 13,711 rooms in twenty-two
states. For more information about John Q. Hammons Hotels, please visit our website at www.jqhhotels.com.
NOTE: Certain matters discussed within this press release are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Although John Q. Hammons Hotels, Inc. believes the expectations
reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that
its expectations will be attained. These uncertainties are more fully described in the Company's filings with the
Securities and Exchange Commission.
John Q. Hammons Hotels, Inc.
(Amounts in thousands except earnings per-share and operating data)
Three Months Ended Nine Months Ended
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
2001 2000 2001 2000
Total Revenue $100,255 $108,523 $332,514 $327,145
EBITDA $ 23,166 $ 30,536 $ 90,767 $ 94,280
EBITDA Margin (Percentage
of Total Revenue) 23.1% 28.1% 27.3% 28.8%
Net Loss $ (2,108) $ (511) $ (1,191) $ (423)
Loss Per Share -- Basic
and Diluted:
Basic Loss per share $ (0.42) $ (0.10) $ (0.23) $ (0.08)
Weighted Average Shares
Outstanding 5,076,174 5,271,002 5,070,270 5,418,851
Hotels Operating Data
Mature Hotels:
Occupancy 61.8% 68.5% 64.1% 66.9%
Average Room Rate $ 97.87 $ 97.16 $ 100.62 $ 96.73
RevPAR (Room Revenue per
available room) $ 60.53 $ 66.59 $ 64.52 $ 64.69
New Hotels (a)
Occupancy 62.7% 62.0% 67.7% 60.0%
Average Room Rate $ 107.14 $ 106.47 $ 111.21 $ 110.76
RevPAR (Room Revenue per
available room) $ 67.14 $ 66.06 $ 75.33 $ 66.47
Total Owned Hotels:
Occupancy 61.9% 67.7% 64.3% 66.0%
Average Room Rate $ 98.32 $ 98.30 $ 101.16 $ 98.36
RevPAR (Room Revenue per
available room) $ 60.85 $ 66.52 $ 65.05 $ 64.92
Sept. 28, Dec. 29,
2001 2000
Selected Balance Sheet Data
Current Assets $ 57,202 $ 67,208
Total Assets $892,098 $920,884
Current Liabilities
Excluding Debt $ 43,858 $ 48,387
Total Debt Including
Current Portion $815,987 $836,707
Total Cash and
Equivalents and
Marketable Securities $ 41,542 $ 49,171
(a) New Hotels include: Oklahoma City Renaissance and North
Charleston Embassy Suites
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Contact:
John Q. Hammons Hotels, Inc., Springfield
Paul Muellner, 417/864-4300