CorePoint Lodging Inc (NYSE: CPLG) stock lost over 18.4% on 22nd March, 2019 (As of 10:19 am GMT-4; Source: Google finance). The firm said that their real estate portfolio to identify hotels would no longer fit within CorePoint strategic plans and may be candidates for possible disposition. With regard to the first initiative, the company believe there are opportunities create value by leveraging Wyndham’s broad distribution network and infrastructure to drive revenue and improve margins.
The company in the fourth quarter of FY 18 has reported comparable RevPAR growth of 9.9%, driven by healthy increases in both rate and occupancy. The RevPAR performance in the fourth quarter benefited from having rooms back in service in Florida and we successfully reopened the remaining properties impacted by hurricane Irma, which was ahead of schedule. The fourth quarter also benefited from a continued RevPAR growth tailwind, driven by the repositioned properties. During the quarter, the company completed four additional repositioning projects bringing the total to 53 as of the end of the fiscal year. This leaves the company with one repositioning project to be completed at the location, which the company expect to be complete in the first half of 2019.
For the full year, the company delivered comparable RevPAR growth of 4.7%, which exceeded the high end of the guidance range of 4.25% growth and comparable RevPAR index for the full-year grew by 360 basis points. Growth in both RevPAR and market share in 2018 was primarily driven by the list generated by the repositioned hotels and by the performance in the West Texas hotels. Adjusted EBITDA for the fourth quarter of 2018 was 30 million. At the end of the fourth quarter of 2018, the company had total debt outstanding of 1.035 billion, which consists entirely of the CMBS debt facility.
In 2019, CPLG will be focused on two strategic initiatives to unlock the potential of the diverse portfolio and maximize results. First, the company are executing an aggressive asset management strategy that includes working closely with the manager to improve the operational performance of CorePoint’s portfolio, especially in the underperforming hotels and working to leverage their broad distribution network and infrastructure.
Additionally, for the portfolio, the channel mix of third-party booking was 30% for the fourth quarter and the full-year of 2018 as compared to 27% for the same period last year. CPLG believe that by the second half of this year, once the La Quinta brand is fully integrated, the company will begin to see the benefits of Wyndham’s network distribution and scale.