|CLEVELAND, Feb. 9, 1999 - Boykin Lodging Company (NYSE:
BOY), a multitenant hotel real estate investment trust, today reported
record revenues and funds from operations for the fourth quarter and year
ending December 31, 1998.
On a same-unit basis, total hotel revenues for the 1998 fourth quarter were $66.5 million, compared with $65.7 million the year before. REVPAR increased 1.9 percent to $53.59 from $52.58 last year. Occupancy was 61.8 percent compared with 61.5 percent last year. The average daily rate increased 1.5 percent to $86.78 from $85.53.
Fourth-quarter net income increased to $3.4 million, or $0.20 per share, for 1998 from $1.4 million, or $0.14 per share, for 1997.
"We started the year with 17 hotels comprising 4,568 rooms and ended with 31 hotels and 8,689 rooms," said Robert W. Boykin, chairman, president and chief executive officer. "We expanded our geographic reach into twelve new markets in six new states. In the process, we formed strategic alliances with some well-respected hospitality companies."
Strategic renovation and repositioning continues to drive Boykin's internal growth by developing the earnings power of individual hotels and unlocking their potential to achieve increases in REVPAR.
"In 1998, we invested $32.5 million in hotel capital renovation, representing nearly 14 percent of the 1998 hotel revenues under our ownership," Mr. Boykin said. "As we have seen time and time again, these dollars yield measurable returns and strengthen our income stream -- very important to a dividend-paying enterprise. In fact, the benefits of our renovation program started to manifest themselves in 1998's fourth quarter, when we completed the renovation of two of our largest hotels."
Last week the company announced a joint venture with AEW Partners III, L.P., an investment partnership managed by AEW Capital Management, L.P., a Boston-based real estate investment firm with a portfolio of approximately $6 billion.
"The combination of AEW's capital with our expertise in this joint venture should enable us to take advantage of selected hotel acquisition opportunities and enhance our cash flow and share value," Mr. Boykin said.
For all of 1998, FFO increased 56.3 percent to $42.8 million, or $2.59 per share/unit (basic and diluted), compared with $27.4 million, or $2.50 per share/unit (diluted), for 1997. Percentage lease revenues for the full year increased 84.1 percent to $69.7 million for 1998 from $37.9 million for 1997.
On a same-unit basis, REVPAR for 1998 increased to $60.04 from $59.80 for 1997. Occupancy for the year was 66.6 percent, compared with 68.3 percent for 1997. Average daily rate increased to $90.18 from $87.52.
Net income for 1998 increased 32.5 percent to $19.0 million, or $1.25 per share, from $14.3 million, or $1.49 per share, for 1997. An extraordinary item of $1.1 million, or $0.07 per share, in 1998 resulted from the write-off of deferred financing costs associated with the replacement of the company's revolving credit facility in the second quarter. Net income for 1997 included an extraordinary item of $882,000, or $0.09 per share, for a loss related to the early extinguishment of debt. Income before extraordinary items increased 32.3 percent to $20.1 million from $15.2 million.
Boykin Lodging Company is a multitenant real estate investment trust
which focuses on the acquisition
of full-service, upscale commercial and resort hotels. The company currently
owns 31 full-service commercial and resort hotels containing a total of
8,689 rooms located in California, Colorado, Florida, Idaho, Indiana, Maryland,
Minnesota, Missouri, Nebraska, New York, New Jersey, North Carolina, Ohio,
Oregon, Tennessee, and Washington.
This release contains forward-looking statements. Although the company believes its business plans are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the company's expectations include financial performance, real estate conditions, execution of hotel acquisition programs, changes in local or national economic conditions, and other similar variables.
|Also See:||Boykin Lodging Completes Acquisition of Ten DoubleTree Hotels / May 1998|
|Boykin Lodging Acquires Knoxville Hilton and High Point Radisson for $37 Million / March 1998|