GERMANTOWN, TN— Equity Inns, a hotel REIT, reported stronger than expected earnings growth for the second straight quarter, with FFO totaling $16.2 million, compared to $16.6 million last year. FFO per share was $0.43, compared to $0.44 in second quarter 2000, which is $0.01 above analysts’ estimates. RevPAR for the company was down 1.3%, occupancy declined 1.7% to 70.4%, and ADR increased 1% to $81.51 from $80.67 last year. Donald Dempsey, CFO/Equity Inns, said that the AmeriSuites portfolio “significantly impacted” the company’s overall performance with RevPAR declining 5.1% compared to the second quarter last year. “Prime Hospitality is the manager of our AmeriSuites properties, and we are pleased that they are taking some important and very necessary steps to improve results. They are aggressively addressing the poor performance through recent management changes, a summertime advertising blitz, and the September implementation of a guest frequency program.” Dempsey added that results from the company’s Hampton Inns and Homewood Suites properties “continue to be positively affected by the Hilton HHonors guest loyalty program and cross-selling efforts.”
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