FAIRFIELD, NJ Prime Hospitality Corp. reported that in the first quarter ended March 31, 2001, net income totaled $9.6 million, or $0.21 per share, compared to net income of $10.5 million, or $0.22 per share last year. Prior year results included the operations of the Frenchmans Reef Resort Hotel, which contributed a net additional $0.03 per share before its sale in March 2000.
Like most other hotel companies, Prime stated that results were impacted by the slowing economy, noting that its upscale AmeriSuites chain was most affected by travelers reduced budgets. However, its mid-priced Wellesley Inn & Suites brand performed well in the first quarter, showing RevPAR rising 7.1%.
In response to the economic challenges, the company is implementing a number of new initiatives designed to increase the visibility of its brands. Beginning next month, Prime will run national cable television advertisements for AmeriSuites and national radio ads for its Wellesley brand.
For the quarter, revenues were $131.7 million and EBITDA was $33.4 million. Excluding the impact of hotels divested in the past year, revenue grew by 10.9% and EBITDA before lease expense grew by 13.3% over the same quarter in 2000. (4/26/01)