Aston parent
earnings up
17 percent

Lower room rates bring down
revenues from Hawaii properties

By Russ Lynch
Star-Bulletin

ResortQuest International Inc., owner of Hawaii's Aston Hotels & Resorts, today reported a first-quarter profit of $3.33 million, or 19 cents a share, up 17 percent from $2.84 million, or 17 cents a share, a year earlier.

The results are pro forma, meaning they were calculated to show year-earlier earnings from the businesses it now owns even though ResortQuest didn't have them a year ago.

The public company was formed last May to pool Aston and 12 other vacation property management businesses across North America. Since then, ResortQuest has since acquired another 12 such businesses.

Pro forma revenues of $31.6 million in the latest quarter were up 18 percent from $26.8 million in the 1998 period. ResortQuest earnings were in line with analysts' expectations. The Memphis, Tenn.-based company's stock was down 31 cents to close at $16.19 in trading on the New York Stock Exchange.

In the 5,000 units ResortQuest manages in Hawaii, first-quarter occupancy was up but overall revenues were pulled down by lower room rates, the company said. Hawaii revenues, from Aston and some smaller businesses, were $38.7 million in the three months ended March 31, down 3.4 percent from $40.1 million a year earlier.

Its Hawaii occupancy was 83.7 percent, up from 78.7 percent, but the average daily room rate in its Hawaii properties was down 5.7 percent at $106.97 in the latest quarter, from $113.44 in the 1998 period.