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Wyndham Reports Strong 2Q Results: Results Attributed To Performance Of Three Of Its Five Puerto Rico Properties
by EVELYN GUADALUPE-FAJARDO
August 17, 2000
Wyndham International Inc. (NYSE: WYN) reported strong results for the second quarter (2Q) ended June 30, including a 5.7% improvement in revenue per available room (RevPar) and record occupancy.
"On the heels of a strong 1Q, we have delivered a record 2Q. This confirms the on-target effectiveness of the business plan we implemented last year," said Fred J. Kleisner, president and CEO of Wyndham in a press statement.
Richard Cortese, vice president of Wyndham Resorts, attributes the improvement in RevPar to the success of three of Wyndhams properties in Puerto Rico.
Wyndham has five properties in Puerto Rico: the Condado Plaza Hotel & Casino, The Regency Hotel, El San Juan Hotel & Casino, El Conquistador Resort & Country Club, and the Old San Juan Hotel & Casino.
"A large portion of RevPar increase reflected in Wyndham Internationals overall results was caused by the Condado Plaza, El San Juan, and El Conquistador," Cortese said. "We had a great 2Q and 3Q will also be good."
Meanwhile, Les Bentley, executive vice president of Wyndham International and president of the Wyndham hotel group, has resigned from the company to lead an investment group. Ted Teng, COO, will assume Bentleys duties.
"Les Bentley has long been synonymous with Wyndham and helped guide the brands growth from just a handful of hotels into one of the nations leading upscale hotel and resort brands," Kleisner added. "He developed the Wyndham Garden Hotels into an important part of our company. We wish him much success in his new venture."
Actual earnings before interest, taxes, depreciation, and amortization (EBITDA), as adjusted, was $182.4 million in 2Q 2000.
On a pro forma basis, which reflects the spin-off of Interstate and other completed asset dispositions, EBITDA, increased 15.3% to $177.3 million in 2Q 2000 from $153.8 million in 2Q 1999.
The 2000 results were impacted by a non-recurring, non-cash charge of $45.4 million, net of taxes, reflecting a write-down of certain non-strategic assets currently being held for sale as part of Wyndhams strategy to focus on its core proprietary brands.
On the other hand, the loss in 1999 largely reflected one-time costs associated with the companys re-capitalization and restructuring.
For 2Q 2000, on a pro forma basis, Wyndham reported a net loss of $49 million, or 0.45 cents per share, compared with a loss of $856.4 million, or $5.30 per share, in 2Q 1999.
Reflecting its focus on becoming a branded hotel operating company, Wyndham sold $140 million of non-strategic assets in 2Q 2000. The sale of assets, along with operational cash flow, enabled the company to strengthen its balance sheet by reducing debt by $160 million in the quarter while cash remained constant.
Wyndham International owns, leases, manages and franchises hotels and resorts in the United States, Canada, Mexico, the Caribbean, and Europe.
This Caribbean Business article appears courtesy of Casiano Communications.