WestCoast Hospitality Posts 132% EPS Growth

SPOKANE, WA-WestCoast Hospitality Corp. is reporting a 132% spike in earnings per share for its second quarter ended June 30. EPS was 35 cents a share in the second quarter of 2001, up from 15 cents a share. Without the $3.8 million gain, EPS for the second quarter was 17 cents a share, or 13% more than the same 200 period.

Total revenues decreased 1.9% during the second quarter, from $33 million in 2000 to $32.4 million in 2001. The decrease primarily was the result of lower occupancy at some of the owned hotels but was offset with increased revenue from entertainment and real estate lease income.

WestCoast’s hotel room revenue at owned, managed and franchised hotels increased 1.6% during the quarter, from $44.8 million in the second quarter of 2000, to $45.5 million in the comparable period of 2001. The hotel company says its customers can be broken down into one-third leisure travelers, one-third business travelers and one-third group travelers.

“The current economic downturn that is affecting the hotel industry has certainly negatively impacted our hotel revenues,” says Donald Barbieri, company chairman, president and. The company’s business travel segment saw the largest drop in demand, says Barbieri.

The company’s Real Estate Division revenues increased 5.9%, from $2.3 million in the second quarter of 2000, to $2.5 million during the same period this year. The increase in revenues was a result of higher occupancies and lease income in both company-owned and managed commercial and residential properties.

WestCoast manages and franchises full-service hotels in nine western states. At close of markets Tuesday, just 200 shares of WestCoast had traded hands, as some 80% of the 13 million outstanding shares are owned by insiders and institutions. The sale price of those 200 shares was $7.70, 30 cents off a 52-week high that came earlier this month and $2.80 above its 52-week low of $4.90.