For the quarter, total sales rose 14% to $18.7 million from $16.5 million in fourth quarter 1999.. Revenue for the year grew 14% to a record $75.3 million from $65.9 in 1999, the company reported.
Net income, however, declined. The company reported fourth quarter net income of $788,000, or seven cents per share compared to $1.09 million, or eight cents per share for the same period in 1999. For all of 2000, net income was $5.3 million, or 41 cents per share versus $8 million, or 53 cents per share the previous year.
The company attributes the decrease to higher interest expense and lower interest income. In addition, says Suburban Lodges CEO David Krischer in a prepared statement, the hotels were affected by reduced travel during the first six weeks of 2000 as a result of Y2K concerns. He notes that the 10 cents of the decline in earnings occurred during the first quarter.
Occupancy increased to 79.5% in 2000 from 78.6% the year before. Suburban Lodges expects to increase its occupancy rate to 81% this year.
The company is focusing on franchising for most future growth, Krischer says in his statement, and will open six to eight Suburban Lodge hotels in 2001; one company-owned property; and about 55 franchised GuestHouse International hotels.
The CEO says the firm has scaled back the number of openings this year because of "recessionary trends" and the tight hotel financing market. Suburban Lodges anticipates earnings of 45 cents to 48 cents in 2001.
The company currently has about 184 Suburban Lodge and GuestHouse International hotels open or under development in more than 20 states.
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