Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MIAMI-Boca Resorts Inc. saw a 5% increase in leisure and recreation revenue, along with other positive financial results, during the company’s fourth fiscal quarter ended June 30, 2002.

Leisure and recreation revenue was $75.8 million, $3.7 million more than the same quarter a year earlier.

The increase was mainly the result of a strong financial performance at the Boca Raton Resort & Club in Boca Raton, FL, the company says in a prepared statement. This resort experienced growth in occupancy, average daily rate and ancillary (non-room) customer spending.

Net income was $5.1 million, or 13 cents per diluted share, compared to $3.3 million, or eight cents per diluted share in the same quarter a year earlier.

The same-property occupancy rate decreased from 75.6% to 69.4%.

Most fourth-quarter figures, however, fared better than the company’s spring projections:

–Occupancy was 69%, higher than the 65% to 68% projected this spring.

–Revenue per available room was $136, a strong finishing considering the projected figure of greater than $130.

–Average daily rate was $196, up slightly from the projected $190 to $195.

“We set a high bar for our sales back in April, and we are very pleased with how we performed during our fourth quarter during what has been characterized as an extremely challenging business environment,” David S. Feder, president and chief operating officer for Boca Resorts Inc., said in a Sept. 12 conference call announcing the company’s fourth-quarter results.

The picture was not as rosy for fourth-quarter operating expenses. They rose from $60.3 million in fourth quarter 2001 to $66 million in fourth quarter 2002.

The hike was largely a result of the increased depreciation after the completion of recent capital projects, William M. Pierce, the company’s senior vice president and chief financial officer, says in a prepared statement. “A shift in revenue mix from higher-margin room revenue to lower-margin non-room revenue” affected the results, he says.

For the 12 months, the company had $273 million in leisure and recreation revenue, down from $329.2 million the year before. The 2001 revenue included $39.9 million from the Arizona Biltmore Resort & Spa, which the company sold in December 2000.

A decrease in same-hotel occupancy from 71.7% to 62.5% contributed to the drop in leisure and recreation revenue. The occupancy declined due to the Sept. 11 terrorist attacks and the slow economy, the company’s statement says.

For the year, operating expenses dropped to $241.5 million from $268.7 million in 2001. This decrease was mainly the result of $31.8 million in operating expenses from the Arizona Biltmore Resort & Spa the year before.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.