SPOKANE, WA - Cavanaughs Hospitality Corporation (NYSE:CVH) today reported preliminary hotel sales of approximately $11,600,000 for the first quarter ending March 31,1998, an increase of 52% over sales of approximately $7,600,000 for the comparable period ending March 31, 1997. The Company's same hotel sales for the quarter, which includes hotels at least one year, increased 16% and revenue per available room (REVPAR) increased on a same hotel basis by 29%. On a proforma basis, including acquired hotel sales for the previous year, sales increased 12% and REVPAR increased 18%. The Company will report earnings the week of April 20th.
"We are proud of our record revenue,"said Donald K. Barbieri, Cavanaughs Chairman, President and CEO. "Our Initial Public Offering completed last week will position us for aggressive growth as the Northwest's dominant full service chain." "In addition to growing the Company, we want to have our shareholders be our best critics," said Barbieri. "We will be offering all shareholders free membership to three Cavanaughs amenities programs; the Cavanaughs Gold Card, the Gold Card Cuisine Club and the Alaska Airlines and Horizon Air travel partnership, including an initial 1000 mile bonus free of charge." The Gold Card will allow the Company shareholders special corporate rates as will as other travel benefits. The Gold Card Cuisine Club offers special meal discounts. The Alaska Airlines and Horizon Air membership provides travel incentives and rewards. Shareholders should contact Investor Relations to receive membership. Details on all programs will be forwarded upon request. Contact Investor Relations at 1-800-325-4000 extension 6219, or by E-Mail at Investor Relations@Cavanaughs.com. Visit CHC website at Cavanaughs.com.
The Company will also announce that it will complete acquisition of two full service hotels in the second quarter of 1998. Cavanaughs Hillsboro Hotel in Portland, Oregon, the Company's first Portland hotel, will be completed on April 20, 1998. The company will conduct an extensive renovation and expansion of the hotel. The Outlaw Inn and Convention Center acquisition in Kalispell, Montana will be completed on June 8, 1998. With this acquisition, Cavanaughs will have 350 hotel rooms and over 25,000 square feet of meeting space in Kalispell, the gateway city to Glacier National Park.
Cavanuaghs Hospitality Corporation became public on April 3, 1998, trading under the symbol CVH on the New York Stock Exchange. Cavanaughs serves the Northwest with 2,712 full service hotel rooms in 13 hotels, including the two acquisitions, 31 restaurants and lounges and 134,600 square feet of meeting space. In addition, CHC provides entertainment services through G&B Select-A-Seat, 20 outlet computerized ticket company, and G&B Presents, a Broadway and special event presenting company. CHC also manages 3.1 million square feet of third party property management and owns 590,000 square feet of office and retail space.
With the exception of historical information, the matters discussed in this news release include "forward-looking statements" within the meaning of the federal securities laws and are qualified be cautionary statements contained herein and in CHC's filings with the Securities and Exchange Commission. All financial numbers are preliminary and subject to auditors review. SOURCE Cavanaughs Hospitality Corporation.