The Spokane-based hotelier today reported a 30% rise in profit in 2001 on a 4% drop in revenue. Net income was $7.57 million, up 30% from $5.82 million. Revenue was $121 million, down from $126 million. EBITDA decreased 11.2%, from $34.0 million to $30.2 million. Shares of West Coast ended Thursday worth $7.53 each, up$0.03 on the day on light volume. The share price is up from a 52-week low of $4.90 in March of last year and off $0.47 from a 52-week high of $8.00 achieved in July of last year.
During the fourth quarter, WestCoast's lost $553,000 on an 8.5% decline in revenue. RevPAR fell 13.0% at all owned, managed and franchised hotels on a decline in occupancy of 4.1 percentage points a 6% decline in average daily rates. Particularly from the standpoint of revenue per available room and earnings comparisons between 2001 and the prior year, WestCoast believes it faired well compared to its industry peers.
"We are certainly still feeling the effects of September 11 and are looking forward to coming to better economic times," West Coast VP Stephen Barbieri tells GlobeSt.com. "For now, considering the economy, we're happy where we are and with our balance sheet."
In December, WestCoast acquired Red Lion Hotels and Inns, approximately doubling the number of hotels either owned, managed or franchised by the Company to 93 hotels in 16 states. The acquisition included hotels in 34 new markets. Looking ahead, Chairman Barbieri says WestCoast is now a "much more formidable competitor."
Barbieri the VP adds that the company has every intention of holding onto all of those properties, subject to name changes for some. "We believe the Red Lion acquisition is going to help us in the future as we cross-pollinate the customer base of the two brands," he says "We're looking at which properties would most benefit from being changed to the WestCoast brand."
Plans for 2002 include a development effort to attract new franchisees. Through it, WestCoast expects to add 10%-20% more hotels to its current base of 93 properties during 2002.
To the company's shareholders, Chairman Barbieri says the company holds a "strong balance sheet and good debt coverage ratios." These, he offers, "…will enable us to continue our growth, taking sliver equity positions in key hotels and maintaining our current property portfolio with capital replacements and systems to efficiently and effectively operate."
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