Hammons Hotels reports improved 2004 financials

While officials discuss the company’s sale to a New York-based private entity, John Q. Hammons Hotels Inc. Feb. 15 reported positive 2004 fourth-quarter and year-end results.
Total revenues from continuing operations for the 12 months ended Dec. 31 were $430.8 million, an increase of 4.2 percent compared to the 12 months ended Jan. 2, 2004. The company reported a $600,000 net loss for 2004, a vast improvement from 2003’s $7.1 million-loss.
Hammons Hotels representatives declined to comment on the financial figures for this story.
Basic and diluted loss per share for the 12 months ended Dec. 31 was 12 cents, compared to basic and diluted loss per share of $1.39 for the 12 months ended Jan. 2, 2004.
Fourth-quarter figures showed signifi-cant increases over the same period a year ago. Total revenues for the three months ended Dec. 31 were $104.7 million, an increase of 5.5 percent compared to the three months ended Jan. 2, 2004.
Net loss for the 2004 fourth quarter was $4 million, compared to $7.5 million for the fourth quarter of 2003. Basic and diluted loss per share for the last quarter was 77 cents, compared to $1.47 loss per share in the last quarter of 2003.
Revenue per available room from continuing operations was $67.51 for 2004 and $61.88 for the fourth quarter, compared to the 2003 yearly and fourth-quarter revenues of $64.92 and $58.72, respectively.
The company expects the industry to continue its recovery into 2005. Although the company itself is not developing new hotels, founder and CEO John Q. Hammons has numerous personal projects in development, including properties in Springfield; St. Charles; Frisco, Texas; Albuquerque, N.M.; and Hampton, Va.
As far as the talks of a possible buyout are concerned, Hammons Hotels Vice President Scott Tarwater said negotiations continue with JQH Acquisition LLC.
“There have been ongoing meetings in trying to put all of the pieces of the puzzle together,” Tarwater said, “and things are progressing.”
The companies have signed an agreement to negotiate exclusively through February.
John Q. Hammons Hotels Inc. stock (AmEx: JQH) closed Feb. 23 at $22.89 per share.