The news has a week after final sale papers for its Malmaison brand and hotel properties in England and Scotland. Marylebone Warwick Balfour Group has paid $111 million for the hotels. To date this year, Wyndham has reaped $406 million in property dispositions, surpassing its $300-million goal for 2000. The sell-offs are critical to a strategic realignment to focus on Wyndham-branded hotel and resort operations. Malmaison hotels are located in Leeds, Manchester, Newcastle, Glasgow and Edinburgh, with hotels planned in Birmingham and London.
Meanwhile, the third-quarter reporting reflects record occupancy rates. Wyndham Hotels & Resorts has increased occupancy to an average of 71.8%. Average room rates are $113.78 per night. Wyndham Luxury Resorts has experienced a 54.6% occupancy average, with average daily rates of $229.79. Summerfield by Wyndham is averaging 88.7% occupancy in the third quarter and average daily rates of $127.16. Wyndham Garden's occupancy average is 72.1% and its average daily rate is $88.27.
Wyndham's EBITDA has increased 13.9% to $131.9 million in the third quarter, up from $115.8 million in third quarter 1999. The adjusted EBITDA totals $132.3 million, a 5% increase over last year.
"This was another outstanding quarter for us and a continuation of the excellent results that we have shown so far this year," says Fred J. Kleisner, Wyndham's chairman and CEO. "We are confident that we have the right strategy." That strategy has resulted in 65 fewer hotels than a year ago, but higher third quarter EBITDA and RevPAR, which peaked at 6.9% in the last accounting. Despite the property dispositions, Wyndham has added branded hotels in Baltimore and New Orleans to its portfolio.
On a pro forma basis, Wyndham has incurred a net loss of $119.5 million for the third quarter, or $0.87 per diluted share, in comparison to $49.8 million, or $0.45 per diluted share, in third quarter 1999. The 2000 results have been affected by non-recurring, non-cash charges of $77.8 million, net of tax, largely reflecting a write-down of certain non-strategic assets currently being held for sale as part of Wyndham's strategy to focus on its core proprietary brands.
Wyndham is seeking to become a branded hotel operating company, selling off $30.9 million of non-strategic assets last quarter. On an owned, leased and managed basis, Wyndham Hotels & Resorts was the leader, with an 8.1% RevPAR growth. Summerfield Suites by Wyndham has posted a RevPAR gain of 7.3% while Wyndham Luxury Resorts has experienced a 3.2% RevPAR gain in the third quarter. The Dallas-based Wyndham International owns, leases, manages and franchises hotels and resorts in the United States, Canada, Mexico, the Caribbean and Europe.
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