ResortQuest loss
widens to $6.2 million

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By Russ Lynch
rlynch@starbulletin.com

The post-Sept. 11 tourism slump in Hawaii helped pull fourth-quarter earnings down at ResortQuest International Inc. which owns the Aston Hotels & Resorts chain in the islands as well as operating dozens of other vacation businesses on the mainland.

The Memphis, Tenn.-headquartered company today reported a fourth-quarter net loss of $6.2 million, or 32 cents a share, a 148 percent increase in red ink from the loss of $2.5 million, or 13 cents a share, in the final quarter of 2000. The company said unusual employee-related expenses of $833,000 in the latest quarter contributed to the decline, but the results were in line with previously announced expectations.

Quarterly revenues of $23.4 million were down 8.6 percent from $25.6 million in the year-earlier quarter but ahead of projections, ResortQuest said.

The company's Hawaii operations had lodging revenues of $26.7 million in the latest quarter, down 29.2 percent from a year-earlier $37.7 million. Hawaii occupancy slipped 16 points to 61.9 percent in the latest quarter from 77.9 percent in the year-earlier period. Daily revenue per available unit in Hawaii dropped 22.4 percent to $64.85 from $83.56.

For all of 2001, Hawaii lodging revenues were down only 7.8 percent at $143.4 million, from $155.5 million in 2000. The full-year occupancy average in the islands was 46.2 percent, down 5.1 points from 51.3 percent, and average revenue per available room through the year was $72 a day, down 3.9 percent from $74.94 in 2000.

ResortQuest reported a 2001 net profit of $1.6 million, or 8 cents a share, down 83.3 percent from a net of $9.6 million, or 51 cents a share, in 2000. David Levine, chairman, president and CEO, said the quarterly and full-year results "confirm that we are successfully weathering the storm of economic challenges faced by the travel and tourism industry."

The company now anticipates it will have a profit of 11 cents to 12 cents a share in the first quarter of this year.

ResortQuest's stock, which closed down 9 cents to $6.51 today, is up 36.8 percent this year.