Allied Hotel Properties Announces Profit For Third Quarter 2001

Vancouver, B.C. — Allied Hotel Properties Inc. (“Allied”, stock symbol AHP) has reported its financial results for the nine months ended September 30, 2001.

Total revenues were $57.6 million for the nine months ending September 30, 2001, down by 3.8% from $59.9 million for the prior year period. Room revenues in the third quarter were down 7.8% compared to the third quarter of 2000, primarily as a result of the tragic events of September 11th . Earnings before interest, tax, depreciation and amortization (“EBITDA”) of $8.5 million was reported for the nine month period, a decrease of 14% from $9.9 million for the comparable period in 2000. Lower levels of business travel as a result of a slower economy had already contributed to the decrease in EBITDA in the current year and this market softening was exacerbated by the events of September 11th . Forecasts through to the end of 2001 suggest the recovery is likely to occur over a number of months.

Interest on long-term debt fell by 15.1% to $7.7 million for the nine months ended September 30, 2001, a period which has seen the Company’s long-term debt paid down by $13.7 million (net). The Company is well positioned to take advantage of reductions in short-term interest rates.

The Company sold a two-thirds interest in one of its hotel properties during the period, resulting in a gain of $9.8 million. The remaining one-third interest is now accounted for by the equity method of accounting. The purchaser of the two-thirds interest holds an option to acquire the remaining one-third of the property at any time up to December 31, 2001.

Net income for the nine month period was $5.6 million (5? per share), compared to a loss of $4.2 million (4? per share) for the first nine months of 2000. For the third quarter the net income was $9.7 million, an increase from $0.6 million for the third quarter of 2000. Without the gain on sale, the net loss for the nine months to September 30, 2001 would have been approximately $0.8 million less than the loss for the nine months to September 30, 2000.

Allied is a hotel ownership and management company with hotel 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, Delta Vancouver Suites, Delta Pacific Resort & Conference Centre, 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:
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: info@alliedhotels.com

THE CANADIAN VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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