SPRINGFIELD, MO— Although the remaining economic slowdown adversely affected John Q. Hammons Hotels performance, the company reported positive RevPAR results in the first quarter. The company noted it continued to surpass the RevPAR performance of the hotel industry. RevPAR was $61.86 for the first quarter, down 6.4% from $66.07 in the 2001 first quarter. The company said these results are more than 31% higher than the hotel industry and nearly 19% higher than the RevPAR in the upscale hotel sector. Overall, basic and diluted earnings per share for the first quarter were $0.05, equal to the first quarter of 2001. But total revenues for the 2002 first quarter were $107.4 million, a decrease of $7.9 million, or 6.9% compared to the 2001 first quarter. Total earnings before EBITDA were $31.1 million for the first quarter, down 5.8% compared to the 2001 EBITDA of $33.0 million. EBITDA as a percentage of total revenue was equal to prior year, reflecting cost-control measures implemented as business volume decreased, explained the company. During the first quarter, decreased demand continued in most of John Q. Hammons markets compared to the same period in 2001. The company attributed this decrease to Sept. 11 and the residual weakness in the industry. Regardless of this weakness, efforts have been made to increase EBITDA margins, as shown in the companys results over the last six months. John Q. Hammons believes the continued concentration of these efforts will prove beneficial to operations, should RevPAR remain depressed. However, The company feels its RevPAR will continue to trend upward, remaining slightly below prior years levels, until the economy completely recovers. John Q. Hammons Hotels is expecting second quarter revenues to be 1 to 2% below 2001, and EBITDA to remain comparable and continue to improve as the economy recovers.
