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NEWS UPDATE
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EXHIBIT 99.3
RESORTQUEST INTERNATIONAL ANNOUNCES SECOND QUARTER 2003 FINANCIAL RESULTS
-COMPANY REALIZES 3.8% INCREASE IN REVPAU AS EBITDA STABILIZES
Destin, FL, August 5, 2003 - ResortQuest International, Inc. (NYSE: RZT), the
nation's leading property manager of vacation condos, homes and villas, today
announced financial results for the second quarter ended June 30, 2003.
As previously announced today, ResortQuest has agreed to be acquired by Gaylord
Entertainment Company (NYSE: GET) in a stock-for-stock acquisition estimated at
$177 million, including approximately $68 million of ResortQuest net debt ($71
million in senior debt and $3 million in unrestricted cash). For additional
information, please refer to today's joint release, which can be found on
http://www.resortquest.com.
SECOND QUARTER HIGHLIGHTS
The following are operational highlights from the second quarter:
- - Revenue per available unit ("RevPAU") comparisons increased 3.8% in the
second quarter 2003 as compared to prior year versus an 8.1% decline in
the first quarter 2003 as compared to prior year.
- - Overall average daily rate ("ADR") increased 6.8% in the second quarter
2003 versus a 2.1% increase in the first quarter 2003.
- - Continued strength in the Hawaii market evidenced by a 3.4% increase in
gross lodging revenues.
- - Cross-selling of our guest database created 4%, or $8.4 million, of the
Company's gross lodging revenues for the first six months of 2003.
- - Portofino, ResortQuest's new marquee resort in Pensacola Beach, FL,
officially opened and currently has approximately 135 units and an ADR
for the summer in excess of $200.
- - The launch of the "Quest for America" cross-selling promotional
campaign builds off the success of the Tan Now/Ski Later, Free!
Program.
- - ResortQuest/Wells Fargo mortgage origination joint venture officially
began operations in June.
- - Signed an alliance with AAA's Auto Club Group, giving the group's
4.1 million members preferred rates on ResortQuest vacation rentals
across North America.
- - Launched the second ResortQuest Specialist certification process for
Travel Agents through Travel Agent Magazine's TA University.
SECOND QUARTER RESULTS
ResortQuest reported revenues of $48.4 million for the second quarter of 2003,
which are relatively flat from revenues of $48.9 million for the prior year
second quarter. Included in both periods is other revenue from managed entities
that primarily relates to reimbursed payroll expense and related benefits. The
Company reported net income for the second quarter of 2003 of $1.3 million,
compared to net income of $2.2 million in 2002. This translates to diluted
earnings per share of $0.07 in the second quarter of 2003, as compared to
diluted earnings per share of $0.12 in the second quarter of 2002. Included in
the second quarter of 2003 is $366,000 of expenses related to the move of the
Company's corporate office to Destin, Florida. As
previously disclosed, relocation expenses are excluded from the Company's annual
EBITDA(1) margin estimate.
The Company reported EBITDA of $5.9 million in the second quarter of 2003
compared to $6.5 million in the second quarter of 2002, a 9.0% decline. EBITDA
per diluted share was $0.31 in the second quarter of 2003 as compared to $0.33
in the second quarter of 2002. The number of ResortQuest diluted shares
outstanding for the second quarter of 2002 and 2003 was 19.4 million and 19.3
million, respectively.
For the six months ended June 30, 2003, total revenues declined 3.0% to $95.0
million. Net income for the six-month period was $2.0 million, and diluted
earnings per share was $0.11. EBITDA declined 21.3% to $10.6 million compared to
$13.5 million in the first six months of 2002. EBITDA per diluted share was
$0.55 versus $0.70 in the comparable prior year period. Included in the first
six months of 2003 is $672,000 of expenses related to the move of the Company's
corporate office to Destin, Florida. The Company estimates that the total cost
of the move will be $800,000 to $900,000, which includes actual moving costs and
related severance. Management anticipates that the relocation of its corporate
office and the continued accounting consolidation from existing operations in
Colorado and Hawaii will save ResortQuest over $1 million annually beginning in
the second half of 2003. Included in the first quarter of 2002 is $502,000 of
expenses related to professional fees resulting from certain employee-related
matters and a study to explore financing and strategic growth alternatives.
Additionally, in the first quarter of 2002, the Company recorded, upon the
adoption of a new accounting principle, an after-tax non-cash goodwill charge of
$6.3 million related to its Desert resorts.
"As anticipated, our business experienced a rebound in the second quarter after
a challenging first quarter," said Jim Olin, President and Chief Executive
Officer of ResortQuest. "We are very pleased by the resilience of our business
as we came through the unique challenges that our industry faced during the
first part of this year. Our strategy of increasing our focus on the drive-to
markets is paying off and we are seeing solid performance in these markets as we
progress through the summer months. We are excited to be settled into our new
headquarters in Destin, and we are already seeing the benefits of the
consolidation of our operations. "
SECOND QUARTER OPERATING HIGHLIGHTS
Total gross lodging revenues were $99.8 million for the second quarter of 2003,
compared to $98.3 million in the second quarter of 2002 representing a 1.5%
increase. Average daily rate for all lodging in the quarter increased 6.8% to
$146.96 as compared to $137.55 in 2002. The Beach resorts, which include the
majority of the drive-to destinations, experienced a 2.1% increase in gross
lodging revenues to $60.3 million driven by a 5.3% increase in ADR. The Hawaii
resorts' gross lodging revenues increased 3.4% to $34.0 million in the second
quarter of 2003 from $32.9 million in the second quarter of 2002 as Hawaii
continued its strong rebound in May and June as the impact of SARS subsided. The
Company experienced declines in gross lodging revenues in both its Desert and
Mountain resorts primarily due to lower occupancy levels in fly-to markets
during April. Total occupancy levels were down slightly from 49.3% in the second
quarter of 2002 to 47.9% in the second quarter of 2003. The total number of
exclusively managed units was down 3.9% to 17,854 in 2003 as the Company pared
back lower-end units in markets where demand had softened enabling the Company
to increase ADR by increasing the occupancy in higher yielding units. The Real
Estate and Other income statement line item decreased 16.5% in the second
quarter of 2003 from the second quarter in 2002 due to continued weakness in the
overall high-end real-estate market.
"As we refine the makeup of our property inventory to better meet the demands of
our customers and react to market dynamics, we are pleased that three out of our
four regions experienced positive RevPAU growth in the quarter," said Park
Brady, Senior Vice President and Chief
Operating Officer. "By focusing on higher performing units, we are seeing a
positive impact to ADR, which rose 6.8% in the quarter over the previous year."
"In our effort to more effectively cross-sell our network of properties, we have
renamed our successful, long-running `Ski Now/Tan Later' marketing promotion
`Quest for America' and expanded its scope to include all markets across our
network," added Olin. "This strategy is definitely beginning to reap benefits,
as we generated cross-selling gross lodging revenues of over $8 million for the
six months ended June 30, 2003. As part of our on-going strategy to standardize
and improve the customer experience, we have opened our new management training
center in Fort Walton, Florida, where all new managers will receive a consistent
and formalized training experience before deployment to the field. While we are
encouraged with the upward trends in our property management business as we
enter the third quarter, we are also pleased to report that it has been a
breakthrough quarter for our First Resort Software unit. We are continuing to
experience high market acceptance and sales of not only our flagship software,
V12, but also our full range of technology services. These factors, in
conjunction with the restructuring of First Resort at the end of 2002, are
resulting in a significantly positive impact on the profitability of this
operation."
BALANCE SHEET
As previously discussed, the Company plans to merge with Gaylord Entertainment
Company in a stock-for-stock acquisition estimated at $177 million, including
approximately $68 million of ResortQuest net debt ($71 million in senior debt
and $3 million in unrestricted cash). As part of this transaction, Gaylord will
provide the Company, subject to the approval of ResortQuest's lenders, a working
capital line of credit of up to $10 million. This line of credit, if utilized,
will bear interest at 10.5% per annum and will remain outstanding until the
earliest to occur of the closing of the acquisition, August 4, 2005, or the
termination of the merger agreement. Given the Company's need to fund certain
fixed costs during its off season coupled with an anticipated slow down in
reservation deposits in October and November due to recently experienced shorter
reservation lead times, the Company may be required to utilize this line of
credit. The utilization of the line of credit is subject to the consent of
ResortQuest's lenders by September 8, 2003.
At June 30, 2003, the Company had $36.9 million in total cash and total debt of
$70.5 million, which generated a debt to total capitalization of 35%.
OUTLOOK
The following information is based on current information as of August 5, 2003.
The Company does not expect to update full year guidance until next quarter's
earnings release; however, the Company may update the full business outlook or
any portion thereof at any time for any reason.
The Company expects a continued challenging economic environment for the lodging
industry although it is pleased with the drive-to market performance thus far
this summer as consumers stay closer to home when taking leisure trips.
ResortQuest is benefiting from this situation given its significant inventory in
these primarily drive-to markets. The Company's expectations for 2003 are
revenues, excluding other revenue from managed properties, of $150-$155 million
with EBITDA margin in the 12% range.
CONFERENCE CALL
The previously announced earnings call will now be jointly hosted by ResortQuest
International and Gaylord Entertainment and will address today's acquisition
announcement. The call will take place today, August 5, 2003 at 11:00 a.m.
(EDT). To participate on the call, please dial (973) 582-2706 and request the
ResortQuest conference call. A recording of the call will be
available for 7 days by dialing (973) 341-3080 and entering access code 4083269.
The call will be simultaneously broadcast over the Internet and will be
available thereafter at www.resortquest.com.
(1) EBITDA, defined as earnings before interest, taxes, depreciation and
amortization, is presented as supplemental information in the
discussion of operating results above and in the accompanied financial
tables because the Company believes that analysis of EBITDA (a non-GAAP
measure), along with other GAAP measurements, provides a more
comprehensive representation of the Company's financial performance.
EBITDA is commonly used in the lodging industry as a measure of
performance and as a basis for valuation of lodging Companies. EBITDA
should not be regarded as an alternative or replacement to any GAAP
measurement of performance. All companies do not calculate EBITDA in
the same manner. As a result, EBITDA as presented by our Company may
not be comparable to similar titles presented by other companies. See
the following reconciliation of EBITDA to operating income.
Reconciliation of EBITDA to Net Income:
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2002 2003 2002 2003
-------- -------- -------- --------
EBITDA $ 6,471 $ 5,890 $ 13,505 $ 10,627
Depreciation 1,533 1,669 2,963 3,334
Interest and other
expense, net 1,364 2,031 2,830 3,844
Income taxes 1,340 902 2,892 1,419
Change in acct
principle, net -- -- 6,280 --
-------- -------- -------- --------
Net income $ 2,234 $ 1,288 $ (1,460) $ 2,030
======== ======== ======== ========
Corporate Relocation Detail:
Corporate Relocation Expense $ -- $ 366 $ -- $ 672
======== ======== ======== ========
ABOUT RESORTQUEST INTERNATIONAL
ResortQuest International, the first brand name "real-time" online booking
service (WWW.RESORTQUEST.COM) in vacation condominium and home rentals and
sales, provides a one-stop resource in over 50 premier resort destinations in
the U.S. and Canada. ResortQuest is the nation's leading vacation rental
property management company, based on a portfolio of approximately 20,000
vacation rental properties with a combined real estate value estimated in excess
of $7.0 billion.
This news release contains certain forward-looking statements within the meaning
of Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act of 1934, as amended, which are intended to be covered by the safe harbors
created thereby. These forward-looking statements involve risks and
uncertainties, as well as assumptions that, if they never materialize or prove
incorrect, could cause the results of ResortQuest and its consolidated
subsidiaries to differ materially from those expressed or implied by such
forward looking statements. In addition to the factors discussed above, other
factors that could cause actual results to differ materially include the risks
associated with obtaining the necessary consents and approvals and meeting the
other conditions necessary to consummate the merger with Gaylord Entertainment
Company and obtain the associated credit line, continued acceptance of the
Company's First Resort software, the anticipated slowdown in reservation
deposits, poor weather reducing the number of stays at Company managed
facilities, the Company's ability to meet its cash needs with available sources
of cash, successful integration of additional acquired companies, factors
affecting
internal growth and management of growth, ResortQuest's acquisition strategy and
the availability of financing, the tour and travel industry, seasonality,
quarterly fluctuations and general economic conditions, dependence on technology
and travel providers, and other factors discussed from time to time in
ResortQuest's Securities and Exchange Commission reports, including its annual
report on Form 10-K for the year ended December 31, 2002.
Although the Company believes that the assumptions underlying the
forward-looking statements contained herein are reasonable, any of the
assumptions could be inaccurate, and, therefore, there can be no assurance that
the forward-looking statements included in this filing will prove to be
accurate. In light of the significant uncertainties inherent in the
forward-looking statements included herein, the inclusion of such information
should not be regarded as a representation by ResortQuest or any other person
that the objectives and plans of the Company will be achieved. The company
undertakes no obligation to publicly update or revise any forward-looking
statements whether as a result of new information, future events or any other
reason.
This communication is not a solicitation of a proxy from any security holder of
Gaylord Entertainment Company or ResortQuest International, Inc. Gaylord and
ResortQuest intend to file a registration statement on Form S-4 with the SEC in
connection with the merger. The Form S-4 will contain a prospectus, a proxy
statement and other documents for the stockholders' meetings of Gaylord and
ResortQuest at which time the proposed transaction will be considered. Gaylord
and ResortQuest plan to mail the proxy statement and prospectus contained in the
Form S-4 to their respective stockholders. The Form S-4, proxy statement and
prospectus will contain important information about Gaylord, ResortQuest, the
merger and related matters. Investors and stockholders should read the Form S-4,
the proxy statement and prospectus and the other documents filed with the SEC in
connection with the merger carefully before they make any decision with respect
to the merger. The Form S-4, proxy statement and prospectus, and all other
documents filed with the SEC in connection with the merger will be available
when filed free of charge at the SEC's web site, www.sec.gov. In addition, all
documents filed with the SEC by Gaylord in connection with the merger will be
made available to investors free of charge by writing to: Gaylord Entertainment
Company, One Gaylord Drive, Nashville, Tennessee 37214, Attn: Investor
Relations. All documents filed with the SEC by ResortQuest in connection with
the merger will be made available to investors free of charge by writing to:
ResortQuest International, Inc., Suite 203, 8955 Highway 98 West, Destin,
Florida 32550, Attn: Investor Relations.
Gaylord, ResortQuest, their respective directors and executive officers may be
deemed participants in the solicitation of proxies from Gaylord's stockholders
and ResortQuest's stockholders. Information concerning Gaylord's directors and
certain executive officers and their direct and indirect interests in Gaylord is
contained in its proxy statement for its 2003 annual meeting of stockholders.
Information concerning ResortQuest's directors and certain executive officers
and their direct and indirect interests in ResortQuest is contained in its proxy
statement for its 2003 annual meeting of stockholders. Additional information
regarding the interests of these participants in the merger will be available in
the proxy statement regarding the merger. Investors can obtain free copies of
these documents from the SEC's website, Gaylord and ResortQuest using the
contact information above.
###
INVESTOR RELATIONS CONTACTS: MEDIA CONTACTS:
ResortQuest International Sloane & Company
Mitch Collins / David Selberg Dan O'Connor
(850) 278-4000 (212) 446-1865
Sloane & Company
Jenny Lee
(212) 446-1892
ResortQuest International, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
(in thousands) 2002 2003 2002 2003
-------- -------- -------- --------
Revenues
Property management fees $ 19,929 $ 20,180 $ 45,253 $ 42,736
Service fees 12,398 12,908 22,698 22,978
Real estate and other 7,549 6,306 12,437 11,350
-------- -------- -------- --------
39,876 39,394 80,388 77,064
Other revenue from managed entities(1) 8,981 9,000 17,484 17,887
-------- -------- -------- --------
Total revenues 48,857 48,394 97,872 94,951
Operating expenses
Direct operating 21,082 21,073 41,224 41,741
General and administrative 12,323 12,431 25,659 24,696
-------- -------- -------- --------
33,405 33,504 66,883 66,437
Other expenses from managed entities(1) 8,981 9,000 17,484 17,887
-------- -------- -------- --------
Total operating expenses 42,386 42,504 84,367 84,324
-------- -------- -------- --------
EBITDA(2) 6,471 5,890 13,505 10,627
Depreciation 1,533 1,669 2,963 3,334
-------- -------- -------- --------
Total non-cash expenses 1,533 1,669 2,963 3,334
-------- -------- -------- --------
Operating income 4,938 4,221 10,542 7,293
Interest and other expense, net 1,364 2,031 2,830 3,844
-------- -------- -------- --------
Income before income taxes 3,574 2,190 7,712 3,449
Provision for income taxes (1,340) (902) (2,892) (1,419)
-------- -------- -------- --------
Income before the cumulative effect of a change
in accounting principle 2,234 1,288 4,820 2,030
Cumulative effect of a change in
accounting principle(3) -- -- (6,280) --
-------- -------- -------- --------
Net income (loss) $ 2,234 $ 1,288 $ (1,460) $ 2,030
======== ======== ======== ========
Earnings per share
Basic and Diluted
Before cumulative effect of a change in
accounting principle $ 0.12 $ 0.07 $ 0.25 $ 0.11
Cumulative effect of a change in
accounting principle -- -- (0.33) --
-------- -------- -------- --------
$ 0.12 $ 0.07 $ (0.08) $ 0.11
======== ======== ======== ========
EBITDA per diluted share(2) $ 0.33 $ 0.31 $ 0.70 $ 0.55
======== ======== ======== ========
(1) Other revenue and expenses from managed entities are included in our
reported results in response to a recent FASB pronouncement. These
costs relate primarily to reimbursed payroll costs and related benefits
for managed entities where we are the manager. These costs primarily
relate to our Hawaii resorts.
(2) EBITDA, a non-GAAP measure, is defined as earnings before interest,
taxes, and depreciation and excludes the cumulative effect of a change
in accounting principle.
(3) Beginning January 1, 2002, the Company adopted SFAS Nos. 141 and 142 as
it relates to the accounting for goodwill and related amortization. In
conjunction with the adoption of these pronouncements, the Company
recorded a $6.3 million non-cash goodwill charge, net of a $1.9 million
income tax benefit, related to its Desert resorts. Additionally, the
Company has ceased recording amortization of all existing goodwill and
any goodwill associated with future mergers and acquisitions.
ResortQuest International, Inc.
Performance Statistics
Total System (2)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2002 2003 Var 2002 2003 Var
-------- -------- ----- -------- -------- -------
Beach
Gross Lodging Revenues(1) $ 59,080 $ 60,332 2.1 % $ 93,439 $ 88,433 (5.4)%
Occupancy 47.4% 46.1% (1.3)pts 51.7% 47.0% (4.7)pts
ADR $ 180.18 $ 189.69 5.3 % $ 133.74 $ 140.15 4.8 %
RevPAU $ 85.39 $ 87.36 2.3 % $ 69.11 $ 65.88 (4.7)%
Total Units 9,327 9,155 (1.8)% 9,327 9,155 (1.8)%
Hawaii
Gross Lodging Revenues(1) $ 32,938 $ 34,048 3.4 % $ 70,061 $ 73,551 5.0 %
Occupancy 69.2% 69.9% 0.7 pts 73.5% 73.4% (0.1)pts
ADR $ 100.58 $ 109.00 8.4 % $ 105.80 $ 114.08 7.8 %
RevPAU $ 69.60 $ 76.21 9.5 % $ 77.72 $ 83.75 7.8 %
Total Units 5,512 5,203 (5.6)% 5,512 5,203 (5.6)%
Mountain
Gross Lodging Revenues(1) $ 5,141 $ 4,454 (13.4)% $ 37,724 $ 33,042 (12.4)%
Occupancy 18.7% 16.2% (2.5)pts 36.4% 30.5% (5.9)pts
ADR $ 110.50 $ 109.27 (1.1)% $ 204.96 $ 209.14 2.0 %
RevPAU $ 20.67 $ 17.70 (14.4)% $ 74.53 $ 63.78 (14.4)%
Total Units 3,265 3,128 (4.2)% 3,265 3,128 (4.2)%
Desert
Gross Lodging Revenues(1) $ 1,100 $ 923 (16.1)% $ 4,713 $ 3,393 (28.0)%
Occupancy 34.8% 26.6% (8.2)pts 50.3% 40.6% (9.7)pts
ADR $ 88.25 $ 121.60 37.8 % $ 124.76 $ 141.00 13.0 %
RevPAU $ 30.75 $ 32.30 5.0 % $ 62.81 $ 57.31 (8.8)%
Total Units 469 368 (21.5)% 469 368 (21.5)%
Total
Gross Lodging Revenues(1) $ 98,259 $ 99,757 1.5 % $205,937 $198,419 (3.7)%
Occupancy 49.3% 47.9% (1.4)pts 55.8% 52.1% (3.7)pts
ADR $ 137.55 $ 146.96 6.8 % $ 130.11 $ 136.11 4.6 %
RevPAU $ 67.79 $ 70.37 3.8 % $ 72.65 $ 70.92 (2.4)%
Total Units 18,573 17,854 (3.9)% 18,573 17,854 (3.9)%
(1) Lodging revenues are in thousands and represent the total rental
charged to property rental customers. Our revenue represents from 3% to
over 40% of the lodging revenues based on the services provided by us.
(2) Total system statistics include all exclusive managed contracts from
the period under management through June 30, 2002 and June 30, 2003.
Excluded from these statistics are non-exclusive management contracts
which approximated 1,500 units as of June 30, 2002 and 1,600 as of June
30, 2003. Also excluded from these statistics are owner use nights and
renovation nights which were approximately 12.3% of gross available
nights in the three months ended June 30, 2002, 12.9% of gross
available nights in the three months ended June 30, 2003, 13.9% of
gross available nights in the six months ended June 30, 2002 and 14.2%
of gross available nights in the six months ended June 30, 2003.
ResortQuest International, Inc.
Performance Statistics
Same-Store (2)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2002 2003 Var 2002 2003 Var
-------- -------- ----- -------- -------- -----
Beach
Gross Lodging Revenues(1) $ 58,937 $ 60,332 2.4 % $ 93,210 $ 88,433 (5.1)%
Occupancy 47.6% 46.1% (1.5)pts 51.8% 47.0% (4.8)pts
ADR $ 180.74 $ 189.69 5.0 % $ 134.41 $ 140.15 4.3 %
RevPAU $ 85.97 $ 87.36 1.6 % $ 69.59 $ 65.88 (5.3)%
Total Units 9,248 9,155 (1.0)% 9,248 9,155 (1.0)%
Hawaii
Gross Lodging Revenues(1) $ 32,938 $ 34,048 3.4 % $ 70,061 $ 73,551 5.0 %
Occupancy 69.2% 69.9% 0.7 pts 73.5% 73.4% (0.1)pts
ADR $ 100.58 $ 109.00 8.4 % $ 105.80 $ 114.08 7.8 %
RevPAU $ 69.60 $ 76.21 9.5 % $ 77.72 $ 83.75 7.8 %
Total Units 5,512 5,203 (5.6)% 5,512 5,203 (5.6)%
Mountain
Gross Lodging Revenues(1) $ 5,141 $ 4,454 (13.4)% $ 37,724 $ 33,042 (12.4)%
Occupancy 18.7% 16.2% (2.5)pts 36.4% 30.5% (5.9)pts
ADR $ 110.50 $ 109.27 (1.1)% $ 204.96 $ 209.14 2.0 %
RevPAU $ 20.67 $ 17.70 (14.4)% $ 74.53 $ 63.78 (14.4)%
Total Units 3,265 3,128 (4.2)% 3,265 3,128 (4.2)%
Desert
Gross Lodging Revenues(1) $ 1,100 $ 923 (16.1)% $ 4,713 $ 3,393 (28.0)%
Occupancy 34.8% 26.6% (8.2)pts 50.3% 40.6% (9.7)pts
ADR $ 88.25 $ 121.60 37.8 % $ 124.76 $ 141.00 13.0 %
RevPAU $ 30.75 $ 32.30 5.0 % $ 62.81 $ 57.31 (8.8)%
Total Units 469 368 (21.5)% 469 368 (21.5)%
Total
Gross Lodging Revenues(1) $ 98,116 $ 99,757 1.7 % $205,708 $198,419 (3.5)%
Occupancy 49.4% 47.9% (1.5)pts 55.9% 52.1% (3.8)pts
ADR $ 137.70 $ 146.96 6.7 % $ 130.40 $ 136.11 4.4 %
RevPAU $ 67.98 $ 70.37 3.5 % $ 72.89 $ 70.92 (2.7)%
Total Units 18,494 17,854 (3.5)% 18,494 17,854 (3.5)%
(1) Lodging revenues are in thousands and represent the total rental
charged to property rental customers. Our revenue represents from 3% to
over 40% of the lodging revenues based on the services provided by us.
(2) For better comparability, the above statistics exclude all
non-exclusive management contracts as well as all properties that were
not part of ResortQuest for both time periods, which approximated 1,600
units as of June 30, 2002 and June 30, 2003. Also excluded from these
statistics are owner use nights and renovation nights which were
approximately 12.3% of gross available nights in the three months ended
June 30, 2002, 12.9% of gross available nights in the three months
ended June 30, 2003, 13.9% of gross available nights in the six months
ended June 30, 2002 and 14.2% of gross available nights in the six
months ended June 30, 2003.