But the tough fiscal climate still has taken its toll. During the quarter, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) declined 29.8% to $4.2 million while Earnings Per Share declined $0.02, from $0.05 in the first quarter of 2001 to $0.03 in the first quarter of 2002.
While results still reflect a difficult economic environment, there are indications of a strengthening demand for reservations at the company's central reservations office where April reservation bookings have outpaced prior year trends.
"It is good to see indications that hotel demand is recovering in many markets," says Don Barbieri, chairman and CEO. "The team's diligence in working through integrating the brands in a manner that drives top line revenue positions us well for an economic upturn.
The company's Real Estate Division revenue was $2.5 million, which is roughly thesame as the prior year period. During the quarter, WestCoast sold an 80.1% interest in the 100,350-sf WHC building in Spokane for $10.6 million. The gain on sale of approximately $3 million before tax was recognized in the quarter for this sale.
Company officials say the sale was part of an overall strategy to divest of ownership in non-core real estate assets while maintaining sliver ownership interests and management responsibilities with the proceeds used to pay down debt and grow the company.
The company will continue to sell non-core real estate assets during the upcoming years. Whilethe company seeks to dispose of assets in its Real Estate Division portfolio, the company continues to expand the division through management contracts in commercial and residential housing and in development services for third party owners.
WestCoast Hospitality Corp. (NYSE: WEH) owns, manages and franchises more than90 hotels in 16 states. As of early afternoon, the company stock was trading at $7.50, up from its 52-week low of $5.57 and down from its high of $8.08.
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