WestCoast Hospitality Upgrades 3Q Earnings Guidance

SPOKANE, WA— WestCoast Hospitality Corp. is updating guidance for the third quarter ending September 30, 2002 and based on financial information through the quarter, the company now expects earnings per share to be in the range of $0.25 to $0.33, compared to $0.23 in the third quarter of 2001. The company will update guidance for the remainder of the year in its quarterly earnings, scheduled for release in the last week of October. Revenue is expected to range from $54.5 million to $56 million for the third quarter of 2002, compared to $33.8 million in the prior year period. EBITDA is expected to range from $11.8 million to $12.5 million, compared to $10.1 million in the third quarter of 2001. Cash flow is expected to range from $6.8 million to $7.5 million, compared to $5.8 million last year. While current data suggests improving trends, including a RevPAR gain of more than 3% at all company owned hotels for the first 23 days of September, the WestCoast Hospitality remains cautious as the country faces a soft economy, potential conflict in Iraq, and continued government issued security alerts. Despite the near term economic uncertainty, the company is encouraged by its strong performance over 2001. Specifically, WestCoast noted its strong cash flow, which is expected to increase 15.7% to 28.6% during the third quarter 2002. WestCoast Hospitality owns, manages and franchises full and limited service hotels in 16 western states.