Earlier this year, lodging industry economists predicted softer demand on expectations of reduced corporate travel in light of a weakened national economy. Instead, the Palm Beach-based hotel real estate investment trust recorded a 4.7% increase in revenue per available room for the three months ended March 31.
The increase in RevPar largely accounts for the company's ability to meet an earnings forecast of 45 cents per share in terms of funds from operations--net income plus depreciation and amortization minus real estate gains.
FFO increased to $21 million, or 45 cents a share, for the three months, compared with $19.2 million, or 41 cents a share, for the same period in 2000.
The company reported an overall net loss of $3.5 million or 18 cents per diluted share on revenue of $17 million, compared to a net loss of $4.2 million or 20 cents per diluted share on revenue of $15.9 million for the same period last year.
The earnings report apparently had little impact on investors, however, as the company's common shares closed up just three cents Tuesday on the New York Stock Exchange at $11.38 on volume of 178,600. Shares are trading near the 52-week high of $12.43, while the issue has traded as low as $8.56 over the same time period.
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