Suburban Franchise Reports Strong 1Q Performance

ATLANTA— Suburban Franchise Systems (SFS) announced positive performance for the first quarter of 2003. SFS, which operates and franchises Suburban Extended Stay Hotels, reported that primary performance indicators including RevPAR, occupancy and rate increased for franchisee-owned properties during the first quarter of 2003 compared with the first quarter of 2002. Citing the Highlands Groups US Extended-Stay Lodging Report, Kevin Lewis, president/CEO of SFS, said in a prepared statement that extended-stay hotels generally outperformed the overall hotel industry in the first quarter of 2003 compared to the same quarter in 2002. However, the report also noted that that economy sector saw both occupancy and RevPAR decline. Suburbans RevPAR increased to $153.77, up 4.1% over last year and 8.72% over the first quarter average for the economy extended-stay segment, according to Lewis. Suburban Extended Stay Hotels average occupancy was 72%, a 2.9% increase over last year. The industry average for overall extended-stay hotel occupancy was 68.5%. Additionally, Suburbans average rate increased to $212.92, up 0.7% over the same period last year. The overall extended-stay lodging segment experienced an average rate increase of 1.1%, according to Lewis.