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   Pacifica Hotel Co. Reports 19 Managed Hotels Finished
2001 at 73.9%, down 6.7% Compared to 2000; 
ADR Up  5.9% Over Prior Year
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Santa Barbara, California -- January 2002 - Pacifica Hotel Company  (PHC) announced that despite the economic recession and the events of September 11th, the firm's 2001 year-end results finished only slightly lower than prior year statistics. In fact, approximately 40% of PHC hotels posted modest to substantial RevPar increases when compared to prior year. For the twelve months ending December 31, 2001, the aggregate occupancy of PHC's 19 managed hotels finished at 73.9%, down 6.7% compared to 2000 levels; however, the corresponding average daily rate finished 2001 at $112.50, a 5.9% increase over prior year. 

For comparison purposes, occupancy for the twelve months ending December 31, 2000, a record year for Pacifica, was 80.2% with a corresponding average daily rate of $106.28. Revenue per available room ("RevPar") finished 2001 at $83.14, down 2.5% compared to record year-end 2000 RevPar of $85.23.

PHC Chairman Dale Marquis stated, "The year-on-year performance success demonstrates that strong management, coupled with the resiliency of California coastal oriented locations, provides a meaningful risk-hedge during challenging economic times." According to Marquis, the overall success of PHC in 2001 was a tale of three stories. First, hotels located in Santa Barbara, Carpinteria, Pismo Beach, and San Luis Obispo demonstrated strong RevPar growth in 2001. Second, hotels located in the Los Angeles area showed declining RevPar; and third, San Diego area hotels remained essentially flat year-on-year from a RevPar standpoint.  

Pacifica Hotel Investors, LLC, an acquisition and asset management affiliate of Pacifica Hotel Company, completed transactions in excess of $100 Million in 1998, 1999, and 2000 but took a conservative approach in 2001 as value escalation prevented the firm from underwriting transactions with any meaningful upside potential. 

However, Pacifica Hotel Investors' CEO Craig Stevenson expects 2002 to be a more active transactional year, particularly in the third and fourth quarters. Stevenson said, "As the current recession draws to a conclusion, we are programming to aggressively acquire hotels throughout California and other selective western states. Our primary focus will continue to be directed toward limited to mid-service hotels in niche markets where the strength of Pacifica Hotel Company can be deployed to enhance value. 

However, we also plan to expand our placement practices by acquiring and/or investing in full service and boutique hotels with other third party operators in California and select markets outside California."    

"For the right type of deal, we are prepared to be extremely creative," added Chairman Marquis,  "Note purchases, mezzanine equity investments, joint venture arrangements, and straight-up purchase transactions will all be explored."

Headquartered in Santa Barbara, California, Pacifica Hotel Company and Pacifica Hotel Investors are privately held diversified real estate investment and management firms specializing in the acquisition, development, and management of hotels.

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Contact:

Craig Stevenson, CEO 
(805) 957-0095
[email protected]
www.pacificahotels.com

Also See Pacifica Hotel Company Names Craig Stevenson Chief Executive Officer / Aug 2001 


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