Financial

Thunderbird Resorts Inc.: March 2011 Revenue and Sale of 2 of 4 Peru Hotels

On 27 March 2011, the Group announced that THLA entered into a contract to sell the Thunderbird Hotels-Principal and the Thunderbird Hotels-Bellavista for $18 million.

Thunderbird Resorts Thunderbird Resorts Inc. (FRANKFURT:4TR)(EURONEXT:TBIRD) reports the following revenues for March 2011:

Thunderbird Resorts Inc. Group-wide sales results by country (unaudited, in thousands) March 2011 March 2010 Year-over-year

increase/

(decrease)

 
Costa Rica 1,686 2,014 (16.2% )
Nicaragua 1,017 971 4.7%  
Philippines 4,169 4,312 (3.3% )
Peru Gaming 2,188 2,073 5.5%  
Peru Hotel 1,583 1,473 7.5%  
Total Consolidated Revenues 10,643 10,843 (1.8% )
Successful Sale of Peru Hotels

In order to reduce the Group's investment and related debt in "non-gaming" assets, in Q-4 2009 the Group commenced efforts to sell four of the six Thunderbird Hoteles Las Americas ("THLA") hotels that did not have a casino component. Previously, the Group announced the sale of the Thunderbird Hotels-Pardo for $8.4 million and Thunderbird Hotels-Carrera for $5.25 million during 2010. 

On 27 March 2011, the Group announced that THLA entered into a contract to sell the Thunderbird Hotels-Principal and the Thunderbird Hotels-Bellavista for $18 million. The Group is pleased to announce that this transaction was successfully concluded on 7 April 2011. The net proceeds from the sale of the Thunderbird Hotels-Principal and the Thunderbird Hotels-Bellavista will be used to pay down certain Peruvian related debt and certain accounts payable balances related to our Peru hotel operations. The Group will manage the Thunderbird Hotels-Principal and the Thunderbird Hotels-Bellavista for a short transition period. The Group continues to earn management fees to manage the Thunderbird Hotels-Pardo and Thunderbird Hotels-Carrera for the current owners.

The Group retains ownership of the Thunderbird Hotels-El Pueblo Resort & Convention Center (235 rooms) and the Thunderbird Hotels-Fiesta Hotel & Casino (66 rooms), which hotel houses our flagship Fiesta Casino with 427 slots and 208 tables positions, spa, gym, 3,500 square meters of commercial rental space, karaoke, bar, restaurant and café.

The Group believes that the sale of these hotels and the accompanying debt pay down and interest expense reduction is the continuation of our stated goal of debt reduction, which will enhance our risk management and improve cash flow. The Group intends to continue in 2011 to focus on deleveraging in ways that also support smart growth.



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