PALM BEACH, FL Innkeepers USA Trust, a REIT and owner of upscale, extended stay hotels, reported that FFO for the 2001 first quarter rose 9% to $21 million, from $19.2 million for the same period in 2000. The increase in FFO resulted primarily from a 4.7% improvement in RevPAR to $85.10, compared to $81.31, for the company s 66 hotels open in the first quarter of 2001 versus 2000. The RevPAR gain consisted of a 7.6% rise in ADR, offset by a 2.7% decline in occupancy.
Despite these seemingly favorable 1Q results, Innkeepers has lowered its FFO guidance for the full year 2001 to $1.86, or $0.06 below the $1.92 per share achieved in 2000. The $1.86 estimate assumes a decline in RevPAR of approximately 2% to 3% for the remaining three quarters. The revised guidance reflects the company s significant presence (29% of revenue) in Silicon Valley, where primary demand generators have cut business travel significantly. (5/1/01)