Prime Earnings Drop 92% In First Quarter

FAIRFIELD, NJ— Prime Hospitality Corp. said that first-quarter earnings fell more than 92% due to continued slowdown in business travel, according to Reuters. The company, which operates AmeriSuites and Wellesley Inns & Suites hotels, said net income for the quarter was $774,000, or 2 cents per share, compared to $9.6 million, or 21 cents per share, last year. Excluding gains on asset sales, the company reported earnings of $343,000, or 1 cent per share, for the quarter. The results were in line with analyst expectations. Prime’s total revenues for the quarter dropped over 25% to $98.2 million from $131.7 million on lower revenues at comparable hotels. The company said RevPAR dropped 13.3% compared to last year. Prime also said it expects second-quarter earnings per share in the range of 14 cents to 16 cents on revenues below prior year levels and a REVPar decrease of about 5% to 6%. The company expects full-year earnings per share in the low 40 cent range on a REVPar decrease in the range of 1% to 2%. — Reuters