Hotel Investors Profit Drops 71% in 2nd Quarter

Hotel Investors Trust and Hotel Investors Corp. said they earned a combined $901,000, or 7 cents a share, in the second quarter that ended June 30, down 71% from $3.1 million, or 24 cents a share, a year earlier. Revenue rose 18% to $22.4 million.

The companies said earnings were lower because of costs associated with operating a new hotel in Indian Wells near Palm Springs and with refurbishing a hotel and casino in Las Vegas.

Hotel Investors Trust is a real estate investment trust in Woodland Hills that owns hotels. Hotel Investors Corp., an affiliated company in San Diego, manages the hotels. The companies report combined earnings. Shares in the companies are paired and traded on the New York Stock Exchange.

For the first six months in 1988, earnings fell 52% to $2.1 million, or 17 cents per paired share, compared to $4.4 million, or 35 cents per share, for the same period in 1987. Revenue increased 15% to $42.1 million.