Hotel Properties Notches 89% Rise in 2nd Quarter

Hotel Properties Inc., a real estate investment trust based in Woodland Hills, earned $2.2 million in its second quarter, up 89% from the same quarter a year ago. Revenue was up 30%, to $2.65 million.

Per-share earnings were 52 cents in the most recent quarter, versus 31 cents a year ago.

Hotel Properties, which has agreed to merge with Hotel Investors of Chevy Chase, Md., said the higher earnings stem largely from the sale of two hotels--one in Stockton and the other in Modesto. The company attributed its higher revenue to increased rental income.

Cash flow available for pay-out to investors in the second quarter was $2.2 million, or 57 cents a share, versus $3.3 million, or 94 cents a share, a year ago. The company noted that the earlier quarter included a $1.3-million gain from the sale of properties.

For the six months ended June 30, cash flow available for pay-out totaled $3.85 million, or $1.02 a share, down from $4.2 million, or $1.52 a share.

Hotel Properties invests exclusively in the lodging industry and has interests in 20 hotels in nine states. Hotel Investors, with whom Hotel Properties has agreed to merge in a stock deal, consists of a real estate investment trust with interests in 21 hotels in 15 states and a management company that runs 19 hotels.