BETHESDA, MD— Host Marriott Corp. reported that in the third quarter ended September 6, 2002, the company suffered a diluted loss per share of $0.18, versus a diluted loss per share of $0.06 in the same period of 2001. Total revenue was $789 million for the third quarter compared to $848 million last year. Comparative Funds From Operations (FFO) was $0.15 per diluted share for the third quarter, versus FFO of $0.28 in the third quarter of 2001. FFO for the third quarter of 2002 includes $0.03 per diluted share for the recognition of business interruption insurance proceeds for the New York Marriott Financial Center and Marriott World Trade Center hotels. EBITDA was $159 million for the quarter compared to $185 million last year. Comparable RevPAR for the third quarter declined 8.9% while operating profit margins declined by 4.4%. The companys third quarter RevPAR decline was the result of a 6.7% reduction in average room rate and an occupancy decline of 1.7%. Year-to-date, comparable RevPAR declined 10.4% (8.1% decline in average room rate combined with an occupancy decline of 1.9%), while margins declined by 2.5%. Host Marriott’s urban, resort and conventions hotels, which contributed 69% of the year-to-date EBITDA, continue to outperform the overall portfolio with a year-to-date RevPAR decline of 7.6%. For the quarter, these hotels had a RevPAR decline of 8.1%. As of September 6, 2002, Hotel Marriott had $394 million in cash on hand and $300 million of availability under its credit facility. The company has no significant refinancing requirements until 2005 and does not believe that it will need to borrow under the credit facility during the balance of 2002. The companys updated guidance for RevPAR for full year 2002 is for a decline of between 4% and 5%. Based upon this guidance the Company estimates FFO per share for the full year should be in the range of $1.05 to $1.10, and EBITDA for the full year should be between $860 and $875 million.
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