DALLAS— La Quinta Corp.s first quarter operating results continue to be impacted negatively by the slowdown in travel and a decline in lodging demand. However, La Quintas EBITDA was slightly ahead of expectations, and the company further reported its results were also affected positively by the sale of certain healthcare assets. Overall, first quarter total revenue was $138.7 million, a 27% decline compared to 2001. Furthermore, first quarter earnings for La Quinta that were available to common shareholders were negative $459.8 million, or ($3.22) per share in 2002, versus negative $15.8 million, or $0.11 per share, in 2001. First quarter total EBITDA was $46.5 million— though that was slightly ahead of guidance, it still represents a 51% decline compared to 2001, noted La Quinta. RevPAR for comparable hotels declined 12.6% to $36.09 during the first quarter. Occupancy for comparable hotels declined 5.7 percentage points to 59.1% during the first quarter, reflecting reduced lodging demand. ADR for comparable hotels fell 4.1% to $61.09 during the first quarter, primarily reflecting a change in business mix in response to reduced demand, noted La Quinta. Lodging EBITDA for the first quarter was $42.0 million, a 31.9% decrease over the same period last year. La Quinta currently anticipates full-year 2002 total company RevPAR growth to be between -2% and 0%. Lodging EBITDA is currently anticipated to be between $195 million and $205 million, based upon the timing of lodging asset sales and the speed of improvements in the lodging business. For the second quarter of 2002, La Quinta currently expects a total company RevPAR decline of approximately 8%. Lodging EBITDA is currently expected to be roughly $55 million in the second quarter.
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