Allied Hotel Properties Inc. (“Allied”, stock symbol AHP) has reported its financial results for the year ended December 31, 2001.
Revenues were $71.1 million and gross profit was $37.4 million for the year, down from revenues of $77.1 million and gross profit of $40.6 million for the previous year. The reduction in both revenues and gross profit was due to the sales, noted below, along with the general decline in business experienced after the first quarter of 2001. Operating expenses totalled $34.6 million, resulting in operating income of $2.9 million, down from $5.0 million for the previous year. The Company took a write-down of $8.4 million in the carrying value of its hotel properties. Loss before income tax and non-controlling interest was $6.9 million, an improvement over a loss of $10.8 million in 2000. Loss for the year was $7.0 million, compared to $8.6 million for the previous year.
During the year, Allied sold a two-thirds interest in the Holiday Inn Vancouver downtown Hotel along with its 65.2% interest in the Delta Vancouver Suites hotel. These transactions resulted in gains of $9.6 million and $2.2 million, respectively. Net proceeds from the sales were used to repay long-term debt and amounts due to affiliated companies.
Subsequent to the year-end Allied entered into a binding agreement to sell its remaining one-third interest in the Holiday Inn Vancouver Downtown Hotel. Payment of $2.0 million has been received from the purchaser, with the balance due no later than September 30, 2002.
Allied’s Annual General Meeting of Shareholders will be held at 10:00 am on Tuesday, June 11, 2002 in the Queen Anne Room, Crowne Plaza Hotel Georgia, Vancouver, B.C.
Allied is a hotel ownership and management company with properties in Greater Vancouver, Edmonton and Toronto. Its hotel portfolio currently consists of: Crowne Plaza Hotel Georgia, Crowne Plaza Chateau Lacombe, Crowne Plaza Toronto Don Valley Hotel, Vancouver Airport Conference Resort, Delta Vancouver Airport and Holiday Inn Vancouver Downtown Hotel. Interested parties can find further information at www.alliedhotels.com.
On behalf of the Board of Directors:
Ronald G. Erdman (signed)
Mr. Ronald G. Erdman
President and Chief Executive Officer
For more information please contact:
Allied Hotel Properties Inc.
Tel: (604) 689-9318 Fax: (604) 689-9332 e-mail: firstname.lastname@example.org
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