IRVING, TX— FelCor Lodging Trust here has posted quarterly results at the bottom end of its lowered expectations, blaming slow travel, the weak economy and a looming war with Iraq for this performance, and has subsequently slashed its fourth-quarter outlook. “We keep pushing back the so-called recovery,” FelCor President/CEO Tom Corcoran said after the latest earnings results were released. Specific to those results was the REIT’s citing of a third-quarter net loss of $13.8 million, or $0.26 per share, compared with a loss of $31.9 million, or $0.60 per share, in the year-ago quarter. Recurring funds from operations, meanwhile, amounted to $29.2 million, or $0.44 per share, compared with $33.1 million, or $0.50 per share, a year ago. Of note, FelCor had warned (on Sept. 25) that a slower-than-expected travel rebound had left third-quarter results below forecast, and similarly said funds from operations would be between $0.44 – $0.48 per share in the third quarter. The company had also forecast that fourth-quarter funds from operations would be $0.22 – $0.27 per share, down from its prior estimate of $0.34 – $0.40 per share, and below the Thomson First Call consensus estimate of $0.36 per share. Revenue for the REIT was $331.6 million in the third quarter, down from $337.8 million a year earlier, and RevPAR fell 2.5%. All told, it was reported occupancy rose 2.2%, but room rates dropped 4.6%. “We clearly have got the occupancy back today, but what we are lacking is the average daily rate [ADR],” Corcoran said, suggesting fear of a war with Iraq was slowing business travel. As such, he noted the company had not yet set a fourth-quarter dividend. (FelCor had paid a $0.15 dividend each quarter this year.) Finally, it was pointed out third-quarter EBITDA fell to $77.1 million from $80.1 million. FelCor is forecasting EBITDA of $62 million – $66 million in the fourth quarter.
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