Declining hotel revenues in Hawaii helped drag down second-quarter net income 27 percent for vacation property rental firm ResortQuest International Inc. ResortQuest
earnings fallStar-Bulletin staff
ResortQuest's profit declined to $2.2 million from $3 million in the same quarter last year, while diluted earnings per share declined to 12 cents from 16 cents, Memphis-based ResortQuest said today. Total revenue fell 4.5 percent to $48.9 million from $51.2 million.
Hawaii lodging revenues dropped by more than $2 million to $32.9 million from $35 million, a 6 percent decrease, ResortQuest said. Hawaii occupancy in the second quarter was 69.2 percent, compared with 71.3 percent last year. The average daily room rate was off 10.3 percent at $100.58, compared with $112.13, while revenue per available unit fell 13 percent to $69.60 from $79.95.
Hawaii lodging revenues have improved after being down 16 percent and 29 percent in the two previous quarters, respectively, ResortQuest said.
ResortQuest manages more than 5,000 units in Hawaii. The firm bought Aston Hotels & Resorts from Andre S. Tatibouet in 1998 for nearly $30 million plus 1.7 million shares of ResortQuest stock.
"Our Hawaii resorts, while still not at prior year levels, had a better quarter than expected despite the weak travel environment and outperformed all of our regions versus prior year results," said Jim Olin, ResortQuest president and chief operating officer.
In the third quarter, the firm's diluted earnings per share will be affected by a $500,000 increase in depreciation expense over last year related to new vacation rental management software and its accounting and payroll system.
ResortQuest's stock rose 19 cents today to close at $4.81 on the New York Stock Exchange.