Financial

Pacifica Hotel Company Posts Solid Results in 2003

Pacifica Hotel Company (PHC), which owns and manages 19 quality California hotels in attractive coastal locations stretching from San Diego to the Bay Area, announced that 2003 revenues were more than $57 million, up eight percent from the $53 million recorded in 2002.

Pacifica Hotels "Pacifica had an outstanding year in every way in 2003," said Pacifica President Dale J. Marquis. "We acquired several attractive properties and broke ground or received approvals on others. Our occupancy and RevPAR numbers are up, demonstrating that travelers are continuing to choose Pacifica hotels. We continue to strengthen our management team which positions us for an even stronger year in 2004."

PHC reported its overall occupancy for 2003 was 77.4%, up from 69.5% a year ago, with RevPAR increasing to $88.51 from $79.73 prior year.

Marquis noted a number of significant accomplishments in 2003 by Pacifica and its parent company, Invest West Financial, including:

-- The acquisition of the historic Carmel River Inn in partnership with Moonstone Hotels.

-- Commencement of construction of a 200-room Hilton Garden Inn in Rancho Bernardo, in partnership with Leddy Ventures Limited.

-- Acquisition of the Holiday Inn Express in San Luis Obispo and the Sommerset Suites in San Diego.

-- Approval by the Los Angeles County Board of Supervisors for a 147-unit, extended-stay Residence Inn Hotel by Marriott in Marina del Rey, where PHC already operates the Best Western Jamaica Bay Inn.

-- STAR performance index of 116.1 for occupancy, 117.9 for average daily rate and 136.8 for revenue per available room. An index above 100 in the Smith Travel Research report indicates that the hotels are receiving more than their fair share of business compared to other hotels in the Pacific Region.

-- A $12 million 2002 and 2003 capital improvement plan which produced significant enhancements to a number of PHC properties.

-- An ongoing acquisition campaign including the just-purchased Half Moon Bay Lodge in Half Moon Bay, as well as another purchase which will be announced shortly.

-- A modification of most of the hotels' loans, providing the company substantial cost savings.

"Pacifica's strategy of providing comfortable high-quality accommodations and friendly, approachable service continues to attract travelers in the competitive California marketplace," Marquis said. "We have an experienced and innovative management team, excellent properties in attractive locations and a strong balance sheet enhanced by our outstanding 2003 performance. We are committed to continuing to provide superior value to our customers and we see a bright future ahead for Pacifica and our partners."

Pacifica Hotel Company was formed in January of 1993 to consolidate the hospitality operations of Invest West Financial Corporation, which has been involved in the acquisition, development, refurbishing and operating of quality hotel properties for almost 30 years. Pacifica's 19 independent and flag properties in key California cities from San Diego to San Francisco feature outstanding locations, AAA 3-diamond ratings, upgraded amenities and high standards of guest service.



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