MEMPHIS, TN— RFS Hotel Investors reported that funds from operations (FFO) for the fourth quarter ended December 31, 2001, were $6.9 million, or $0.25 per share, compared to $13.5 million, or $0.50 per share, for the same quarter last year, representing a 50% decline in FFO per share. The company announced on November 1, 2001, that it expected its fourth quarter FFO to range from $0.10 to $0.25 per share. FFO results were $0.06 higher than the consensus analysts estimate of $0.19. FFO for the year was $51.2 million, or $1.85 per share, compared to 2000 FFO of $64.2 million, or $2.37 per share, a decline of 22% in FFO per share. RevPAR declined 15.9% for the quarter, with the company’s 10 California hotels experienced an average decline in quarterly RevPAR of 29.7%. EBITDA decreased 28.7% to $14.3 million for the quarter and declined 9.4% for the year. Total debt was reduced by $1.6 million during the quarter. Randy Churchey, president/COO, said, “Operating results for the quarter were somewhat better than we anticipated for two reasons. First, the RevPAR decline of 15.9% was at the low end of the 15% to 25% range we expected. Second, Flagstone Hospitality, which operates 52 of our 58 properties, did an outstanding job of controlling costs. Although revenue declined by $9.9 million during the quarter, hotel EBITDA declined by only $7.3 million.”
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