Maryland | 001-32514 | 20-1180098 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
3 Bethesda Metro Center, Suite 1500 Bethesda, MD |
20814 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
DIAMONDROCK HOSPITALITY COMPANY |
||||
Date: October 19, 2011 | By: | /s/ William J. Tennis | ||
William J. Tennis | ||||
Executive Vice President, General Counsel and Corporate Secretary |
Exhibit No. | Description | |||
99.1 | Press release dated October 19, 2011. |
| Sale Agreement for Three-Hotel Portfolio: The Company entered into an agreement to sell a portfolio of three non-core hotels, the Griffin Gate Marriott Resort and Spa, Renaissance Waverly and Renaissance Austin, to an affiliate of Inland American for a contractual purchase price of $262.5 million. The sale is expected to close by the end of the year. | ||
| Pro Forma RevPAR: The Companys Pro Forma RevPAR was $126.05, an increase of 7.2% from the comparable period in 2010. Pro Forma RevPAR is calculated assuming the Company owned all of its hotels since January 1, 2010 but excludes the operating results of the Frenchmans Reef & Morning Star Marriott Beach Resort due to the impact of the extensive renovation of the hotel in 2011. | ||
| Pro Forma Hotel Adjusted EBITDA Margin: The Companys Pro Forma Hotel Adjusted EBITDA margin was 27.19%, an increase of 44 basis points from the comparable period in 2010. Pro Forma Hotel Adjusted EBITDA margin is calculated assuming the Company owned all of its hotels since January 1, 2010 but excludes Frenchmans Reef & Morning Star Marriott Beach Resort. | ||
| Adjusted EBITDA: The Companys Adjusted EBITDA was $41.7 million. | ||
| Adjusted FFO: The Companys Adjusted FFO was $26.2 million and Adjusted FFO per diluted share was $0.16. | ||
| Acquisition of the Courtyard Denver: On July 22, 2011, the Company acquired the Courtyard Denver Downtown for approximately $46 million. | ||
| Dividends: The Company declared a quarterly dividend of $0.08 per share during the third quarter. |
| Pro Forma RevPAR growth of 7.2% and Pro Forma Hotel Adjusted EBITDA margin expansion of 44 basis points compared to the comparable period in 2010. | ||
| Revenues of $179.0 million compared to $151.1 million for the comparable period in 2010. | ||
| Adjusted EBITDA of $41.7 million compared to $33.0 million for the comparable period in 2010. | ||
| Adjusted FFO of $26.2 million and Adjusted FFO per diluted share of $0.16 compared to $22.4 million and $0.15, respectively, for the comparable period in 2010. | ||
| Net loss of $1.0 million (or $0.01 per diluted share) compared to a net loss of $3.5 million (or $0.02 per diluted share) for the comparable period in 2010. |
- 2 -
| Pro Forma RevPAR growth of 6.1% and Pro Forma Hotel Adjusted EBITDA margin expansion of 66 basis points compared to the comparable period in 2010. | ||
| Revenues of $470.8 million compared to $415.1 million for the comparable period in 2010. | ||
| Adjusted EBITDA of $101.7 million compared to $87.3 million for the comparable period in 2010. | ||
| Adjusted FFO of $63.6 million and Adjusted FFO per diluted share of $0.38 compared to $56.0 million and $0.40, respectively, for the comparable period in 2010. | ||
| Net loss of $12.6 million (or $0.08 per diluted share) compared to a net loss of $11.0 million (or $0.08 per diluted share) for the comparable period in 2010. |
- 3 -
- 4 -
| RevPAR to increase 6 percent to 7 percent; | ||
| Adjusted EBITDA of $166 million to $170 million; | ||
| Adjusted FFO of $105 million to $109 million, which assumes income tax expense to range from $4.4 million to $5.4 million; and | ||
| Adjusted FFO per share of $0.63 to $0.65 based on 167 million diluted weighted average shares. |
- 5 -
- 6 -
September 9, 2011 | December 31, 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Property and equipment, at cost |
$ | 2,962,709 | $ | 2,468,289 | ||||
Less: accumulated depreciation |
(462,986 | ) | (396,686 | ) | ||||
2,499,723 | 2,071,603 | |||||||
Deferred financing costs, net |
6,720 | 5,492 | ||||||
Restricted cash |
65,645 | 51,936 | ||||||
Due from hotel managers |
65,454 | 50,715 | ||||||
Note receivable |
56,247 | 57,951 | ||||||
Favorable lease assets, net |
43,594 | 42,622 | ||||||
Prepaid and other assets |
71,445 | 50,089 | ||||||
Cash and cash equivalents |
28,777 | 84,201 | ||||||
Total assets |
$ | 2,837,605 | $ | 2,414,609 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Liabilities: |
||||||||
Mortgage debt |
$ | 945,888 | $ | 780,880 | ||||
Senior unsecured credit facility |
130,000 | | ||||||
Total debt |
1,075,888 | 780,880 | ||||||
Deferred income related to key money, net |
22,216 | 19,199 | ||||||
Unfavorable contract liabilities, net |
82,490 | 83,613 | ||||||
Due to hotel managers |
42,487 | 36,168 | ||||||
Dividends declared and unpaid |
13,569 | | ||||||
Accounts payable and accrued expenses |
91,397 | 81,232 | ||||||
Total other liabilities |
252,159 | 220,212 | ||||||
Stockholders Equity: |
||||||||
Preferred stock, $0.01 par value;
10,000,000 shares authorized; no shares
issued and outstanding |
| | ||||||
Common stock, $0.01 par value;
200,000,000 shares authorized;
167,502,359 and 154,570,543 shares issued
and outstanding at September 9, 2011 and
December 31, 2010, respectively |
1,675 | 1,546 | ||||||
Additional paid-in capital |
1,707,240 | 1,558,047 | ||||||
Accumulated deficit |
(199,357 | ) | (146,076 | ) | ||||
Total stockholders equity |
1,509,558 | 1,413,517 | ||||||
Total liabilities and stockholders equity |
$ | 2,837,605 | $ | 2,414,609 | ||||
- 7 -
Fiscal Quarter Ended | Period From | |||||||||||||||
January 1, 2011 to | January 1, 2010 to | |||||||||||||||
September 9, 2011 | September 10, 2010 | September 9, 2011 | September 10, 2010 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Revenues: |
||||||||||||||||
Rooms |
$ | 125,100 | $ | 99,703 | $ | 316,284 | $ | 267,081 | ||||||||
Food and beverage |
44,671 | 43,370 | 131,137 | 126,620 | ||||||||||||
Other |
9,224 | 8,040 | 23,347 | 21,364 | ||||||||||||
Total revenues |
178,995 | 151,113 | 470,768 | 415,065 | ||||||||||||
Operating Expenses: |
||||||||||||||||
Rooms |
33,398 | 26,979 | 84,642 | 71,510 | ||||||||||||
Food and beverage |
31,024 | 30,534 | 91,276 | 86,748 | ||||||||||||
Management fees |
5,214 | 5,080 | 15,603 | 13,634 | ||||||||||||
Other hotel expenses |
64,296 | 55,613 | 170,227 | 152,232 | ||||||||||||
Depreciation and amortization |
23,801 | 21,297 | 66,835 | 59,278 | ||||||||||||
Hotel acquisition costs |
445 | 899 | 2,604 | 1,236 | ||||||||||||
Corporate expenses |
6,453 | 3,948 | 14,901 | 10,859 | ||||||||||||
Total operating expenses |
164,631 | 144,350 | 446,088 | 395,497 | ||||||||||||
Operating profit |
14,364 | 6,763 | 24,680 | 19,568 | ||||||||||||
Other Expenses (Income): |
||||||||||||||||
Interest income |
(24 | ) | (283 | ) | (590 | ) | (650 | ) | ||||||||
Interest expense |
13,605 | 11,240 | 37,088 | 30,455 | ||||||||||||
Total other expenses |
13,581 | 10,957 | 36,498 | 29,805 | ||||||||||||
Income (loss) before income
taxes |
783 | (4,194 | ) | (11,818 | ) | (10,237 | ) | |||||||||
Income tax (expense) benefit |
(1,798 | ) | 660 | (795 | ) | (803 | ) | |||||||||
Net loss |
$ | (1,015 | ) | $ | (3,534 | ) | $ | (12,613 | ) | $ | (11,040 | ) | ||||
Loss per share: |
||||||||||||||||
Basic and diluted loss per share |
$ | (0.01 | ) | $ | (0.02 | ) | $ | (0.08 | ) | $ | (0.08 | ) | ||||
- 8 -
Historical (in 000s) | ||||||||||||||||
Fiscal Quarter Ended | Period From | |||||||||||||||
September 9, | September 10, | January 1, 2011 to | January 1, 2010 to | |||||||||||||
2011 | 2010 | September 9, 2011 | September 10, 2010 | |||||||||||||
Net loss |
$ | (1,015 | ) | $ | (3,534 | ) | $ | (12,613 | ) | $ | (11,040 | ) | ||||
Interest expense |
13,605 | 11,240 | 37,088 | 30,455 | ||||||||||||
Income tax expense (benefit) |
1,798 | (660 | ) | 795 | 803 | |||||||||||
Depreciation and amortization |
23,801 | 21,297 | 66,835 | 59,278 | ||||||||||||
EBITDA |
$ | 38,189 | $ | 28,343 | $ | 92,105 | $ | 79,496 | ||||||||
Full Year 2011 Forecast (in 000s) | ||||||||
Low End | High End | |||||||
Net loss |
$ | (6,800 | ) | $ | (1,800 | ) | ||
Interest expense |
56,000 | 55,000 | ||||||
Income tax expense |
4,400 | 5,400 | ||||||
Depreciation and amortization |
100,000 | 99,000 | ||||||
EBITDA |
$ | 153,600 | $ | 157,600 | ||||
| Non-Cash Ground Rent: The Company excludes the non-cash expense incurred from straight lining the rent from its ground lease obligations and the non-cash amortization of its favorable lease assets. |
| The impact of the non-cash amortization of the unfavorable contract liabilities recorded in conjunction with the Companys acquisitions of the Bethesda Marriott Suites, the Chicago Marriott Downtown, the Renaissance Charleston and the Radisson Lexington. The amortization of the unfavorable contract liabilities does not reflect the underlying performance of the Company. |
| Cumulative effect of a change in accounting principle: Infrequently, the Financial Accounting Standards Board (FASB) promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. The Company excludes these one-time adjustments because they do not reflect its actual performance for that period. |
| Gains from Early Extinguishment of Debt: The Company excludes the effect of gains recorded on the early extinguishment of debt because it believes that including them in EBITDA is not consistent with reflecting the ongoing performance of its hotels. |
| Impairment Losses: The Company excludes the effect of impairment losses recorded because it believes that including them in EBITDA is not consistent with reflecting the ongoing performance of its hotels. In addition, the Company believes that impairment charges are similar to depreciation expense, which is also excluded from EBITDA. |
| Gains or Losses on Dispositions: The Company excludes the effect of gains or losses on dispositions from EBITDA because it believes that including them is not consistent with reflecting the ongoing performance of its remaining hotels. |
| Acquisition Costs: The Company excludes acquisition transaction costs expensed during the period because it believes that including these costs in EBITDA is not consistent with the underlying performance of the Company. |
- 9 -
| Mortgage Loan Interest Payments Received: The Company includes cash payments received on its senior loan secured by the Allerton Hotel in Adjusted EBITDA. GAAP requires the Company to record the cash received from the borrower as a reduction of its basis in the mortgage loan due to the uncertainty over the timing and amount of cash payments on the loan. The Company believes that these cash payments reflect its return on its investment in the mortgage loan and should be included in Adjusted EBITDA as they relate to the ongoing operating performance of the Company. |
| Other Non-Cash and /or Unusual Items: The Company excludes the effect of certain non-cash and/or unusual items because it believes that including these costs in EBITDA is not consistent with the underlying performance of the Company. During the third fiscal quarter ended September 9, 2011 the Company reversed the accrual made in the second fiscal quarter 2011 for the repayment of key money to Hilton based on the execution of an amended management agreement for the Conrad Chicago. In addition, the Company recorded an accrual for the tentative settlement of litigation at the Los Angeles Airport Marriott. The Company excluded these unusual items from EBITDA because it believes that including them would not be consistent with reflecting the ongoing performance of its hotels. |
Fiscal Quarter Ended | Period From | |||||||||||||||
September 9, | September 10, | January 1, 2011 to | January 1, 2010 to | |||||||||||||
2011 | 2010 | September 9, 2011 | September 10, 2010 | |||||||||||||
EBITDA |
$ | 38,189 | $ | 28,343 | $ | 92,105 | $ | 79,496 | ||||||||
Non-cash ground rent |
1,658 | 1,538 | 4,878 | 5,104 | ||||||||||||
Non-cash amortization of
unfavorable contract liabilities |
(432 | ) | (409 | ) | (1,284 | ) | (1,203 | ) | ||||||||
Accrual for net key money repayment |
(864 | ) | | | | |||||||||||
Mortgage loan cash payments |
1,099 | 1,250 | 1,704 | 1,250 | ||||||||||||
Hurricane remediation expense |
| 1,391 | | 1,391 | ||||||||||||
Litigation settlement |
1,650 | | 1,650 | | ||||||||||||
Acquisition costs |
445 | 899 | 2,604 | 1,236 | ||||||||||||
Adjusted EBITDA |
$ | 41,745 | $ | 33,012 | $ | 101,657 | $ | 87,274 | ||||||||
Full Year 2011 Forecast (in 000s) | ||||||||
Low End | High End | |||||||
EBITDA |
$ | 153,600 | $ | 157,600 | ||||
Non-cash ground rent |
7,000 | 7,000 | ||||||
Non-cash amortization of
unfavorable contract liabilities |
(1,850 | ) | (1,850 | ) | ||||
Litigation settlement |
1,650 | 1,650 | ||||||
Mortgage loan cash payments |
3,000 | 3,000 | ||||||
Acquisition costs |
2,600 | 2,600 | ||||||
Adjusted EBITDA |
$ | 166,000 | $ | 170,000 | ||||
Historical (in 000s) | ||||||||||||||||
Fiscal Quarter Ended | Period From | |||||||||||||||
September 9, | September 10, | January 1, 2011 to | January 1, 2010 to | |||||||||||||
2011 | 2010 | September 9, 2011 | September 10, 2010 | |||||||||||||
Net loss |
$ | (1,015 | ) | $ | (3,534 | ) | $ | (12,613 | ) | $ | (11,040 | ) | ||||
Real estate related depreciation
amortization |
23,801 | 21,297 | 66,835 | 59,278 | ||||||||||||
FFO |
22,786 | 17,763 | 54,222 | 48,238 | ||||||||||||
FFO per share (basic and diluted) |
$ | 0.14 | $ | 0.11 | $ | 0.33 | $ | 0.34 | ||||||||
- 10 -
Full Year 2011 Forecast (in 000s) | ||||||||
Low End | High End | |||||||
Net loss |
$ | (6,800 | ) | $ | (1,800 | ) | ||
Depreciation and amortization |
100,000 | 99,000 | ||||||
FFO |
$ | 93,200 | $ | 97,200 | ||||
FFO per share (basic and diluted) |
$ | 0.56 | $ | 0.58 | ||||
| Non-Cash Ground Rent: The Company excludes the non-cash expense incurred from straight lining the rent from its ground lease obligations and the non-cash amortization of its favorable lease assets. |
| The impact of the non-cash amortization of the unfavorable contract liabilities recorded in conjunction with the Companys acquisitions of the Bethesda Marriott Suites, the Chicago Marriott Downtown, the Renaissance Charleston and the Radisson Lexington. The amortization of the unfavorable contract liabilities does not reflect the underlying performance of the Company. |
| The impact of the non-cash amortization of the debt premiums recorded in conjunction with the acquisitions of the JW Marriott Denver at Cherry Creek and Courtyard Denver Downtown. |
| Cumulative effect of a change in accounting principle: Infrequently, the Financial Accounting Standards Board (FASB) promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. The Company excludes these one-time adjustments because they do not reflect its actual performance for that period. |
| Gains from Early Extinguishment of Debt: The Company excludes the effect of gains recorded on the early extinguishment of debt because it believes that including them in FFO is not consistent with reflecting the ongoing performance of its hotels. |
| Impairment Losses: The Company excludes the effect of impairment losses recorded because it believes that including them in FFO is not consistent with reflecting the ongoing performance of its assets. In addition, the Company believes that impairment charges are similar to depreciation expense and gains or losses on dispositions, both of which are excluded from FFO. |
| Acquisition Costs: The Company excludes acquisition transaction costs expensed during the period because it believes that including these costs in FFO is not consistent with the underlying performance of the Company. |
| Mortgage Loan Interest Payments Received: The Company includes cash payments received on its senior loan secured by the Allerton Hotel in Adjusted FFO. GAAP requires the Company to record the cash received from the borrower as a reduction of its basis in the mortgage loan due to the uncertainty over the timing and amount of cash payments on the loan. The Company believes that these cash payments reflect its return on its investment in the mortgage loan and should be included in Adjusted FFO as they relate to the ongoing operating performance of the Company. |
| Other Non-Cash and /or Unusual Items: The Company excludes the effect of certain non-cash and/or unusual items because it believes that including these costs in EBITDA is not consistent with the underlying performance of the Company. During the third fiscal quarter ended September 9, 2011 the Company reversed the accrual made in the second fiscal quarter 2011 for the repayment of key money to Hilton based on the execution of an amended management agreement for the Conrad Chicago. In addition, the Company recorded an accrual for the tentative settlement of litigation at the Los Angeles Airport Marriott. The Company excluded these unusual items from EBITDA because it believes that including them would not be consistent with reflecting the ongoing performance of its hotels |
- 11 -
Historical (in 000s) | ||||||||||||||||
Fiscal Quarter Ended | Period From | |||||||||||||||
January 1, 2011 | January 1, 2010 | |||||||||||||||
September 9, | September 10, | to September 9, | to September 10, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
FFO |
$ | 22,786 | $ | 17,763 | $ | 54,222 | $ | 48,238 | ||||||||
Non-cash ground rent |
1,658 | 1,538 | 4,878 | 5,104 | ||||||||||||
Non-cash amortization of
unfavorable contract
liabilities |
(432 | ) | (409 | ) | (1,284 | ) | (1,203 | ) | ||||||||
Accrual for key money repayment |
(864 | ) | | | | |||||||||||
Hurricane remediation expense |
| 1,391 | | 1,391 | ||||||||||||
Mortgage loan cash payments |
1,099 | 1,250 | 1,704 | 1,250 | ||||||||||||
Litigation settlement |
1,650 | | 1,650 | | ||||||||||||
Amortization of debt premium |
(134 | ) | | (161 | ) | | ||||||||||
Acquisition costs |
445 | 899 | 2,604 | 1,236 | ||||||||||||
Adjusted FFO |
$ | 26,208 | $ | 22,432 | $ | 63,613 | $ | 56,016 | ||||||||
Adjusted FFO per share (basic
and diluted) |
$ | 0.16 | $ | 0.15 | $ | 0.38 | $ | 0.40 | ||||||||
Full Year 2011 Forecast (in 000s) | ||||||||
Low End | High End | |||||||
FFO |
$ | 93,200 | $ | 97,200 | ||||
Non-cash ground rent |
7,000 | 7,000 | ||||||
Non-cash amortization of
unfavorable contract liabilities |
(1,850 | ) | (1,850 | ) | ||||
Acquisition costs |
2,600 | 2,600 | ||||||
Litigation settlement |
1,650 | 1,650 | ||||||
Debt premium amortization |
(600 | ) | (600 | ) | ||||
Mortgage loan cash payments |
3,000 | 3,000 | ||||||
Adjusted FFO |
$ | 105,000 | $ | 109,000 | ||||
Adjusted FFO per share (diluted) |
$ | 0.63 | $ | 0.65 | ||||
Quarter 3, 2010 | Quarter 4, 2010 | Full Year 2010 | Quarter 1, 2011 | Quarter 2, 2011 | ||||||||||||||||
RevPAR |
$ | 117.63 | $ | 118.76 | $ | 112.11 | $ | 94.36 | $ | 123.85 | ||||||||||
Revenues (in thousands) |
$ | 166,670 | $ | 227,497 | $ | 685,324 | $ | 121,541 | $ | 177,825 | ||||||||||
Hotel Adjusted EBITDA (in
thousands) |
$ | 44,592 | $ | 67,109 | $ | 178,680 | $ | 21,020 | $ | 49,977 | ||||||||||
% of Full Year |
25.0 | % | 37.6 | % | 100.0 | % | 11.1 | % | 26.3 | % | ||||||||||
Hotel Adjusted EBITDA Margin |
26.75 | % | 29.50 | % | 26.07 | % | 17.29 | % | 28.10 | % | ||||||||||
Available Rooms |
982,360 | 1,307,402 | 4,133,444 | 854,009 | 982,544 |
Quarter 3, 2010 | Quarter 4, 2010 | Full Year 2010 | Quarter 1, 2011 | Quarter 2, 2011 | ||||||||||||||||
RevPAR |
$ | 122.60 | $ | 121.99 | $ | 115.73 | $ | 96.04 | $ | 128.65 | ||||||||||
Revenues (in thousands) |
$ | 147,980 | $ | 199,049 | $ | 600,275 | $ | 103,028 | $ | 158,488 | ||||||||||
Hotel Adjusted EBITDA (in
thousands) |
$ | 38,353 | $ | 58,156 | $ | 154,275 | $ | 16,446 | $ | 44,822 | ||||||||||
% of Full Year |
24.9 | % | 37.7 | % | 100.0 | % | 9.8 | % | 26.7 | % | ||||||||||
Hotel Adjusted EBITDA Margin |
25.92 | % | 29.22 | % | 25.70 | % | 15.96 | % | 28.28 | % | ||||||||||
Available Rooms |
862,912 | 1,148,138 | 3,614,414 | 734,561 | 863,096 |
- 12 -
- 13 -
Fiscal Quarter Ended | Period From | |||||||||||||||||||||||
January 1, | January 1, | |||||||||||||||||||||||
2011 to | 2010 to | |||||||||||||||||||||||
September 9, | September | % | September | September | % | |||||||||||||||||||
2011 | 10, 2010 | Change | 9, 2011 | 10, 2010 | Change | |||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Rooms |
$ | 123,852 | $ | 115,551 | 7.2 | % | $ | 326,123 | $ | 308,126 | 5.8 | % | ||||||||||||
Food and beverage |
43,803 | 42,700 | 2.6 | % | 126,257 | 126,868 | (0.5 | %) | ||||||||||||||||
Other |
9,059 | 8,419 | 7.6 | % | 23,700 | 22,832 | 3.8 | % | ||||||||||||||||
Total revenues |
176,714 | 166,670 | 6.0 | % | 476,080 | 457,826 | 4.0 | % | ||||||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Rooms |
32,734 | 31,089 | 5.3 | % | 88,783 | 84,434 | 5.2 | % | ||||||||||||||||
Food and beverage |
29,926 | 29,124 | 2.8 | % | 86,684 | 85,569 | 1.3 | % | ||||||||||||||||
Other direct departmental |
5,056 | 4,746 | 6.5 | % | 13,617 | 13,257 | 2.7 | % | ||||||||||||||||
General and administrative |
14,545 | 14,306 | 1.7 | % | 41,103 | 40,679 | 1.0 | % | ||||||||||||||||
Utilities |
6,313 | 6,520 | (3.2 | %) | 16,962 | 17,081 | (0.7 | %) | ||||||||||||||||
Repairs and maintenance |
7,665 | 7,309 | 4.9 | % | 21,973 | 20,960 | 4.8 | % | ||||||||||||||||
Sales and marketing |
13,766 | 12,926 | 6.5 | % | 37,819 | 35,383 | 6.9 | % | ||||||||||||||||
Base management fees |
4,699 | 4,406 | 6.7 | % | 12,614 | 12,052 | 4.7 | % | ||||||||||||||||
Incentive management fees |
1,328 | 991 | 34.0 | % | 3,008 | 2,497 | 20.5 | % | ||||||||||||||||
Property taxes |
8,263 | 6,392 | 29.3 | % | 22,097 | 22,253 | (0.7 | %) | ||||||||||||||||
Ground rent |
3,407 | 3,244 | 5.0 | % | 9,763 | 9,377 | 4.1 | % | ||||||||||||||||
Other fixed expenses |
2,187 | 2,144 | 2.0 | % | 6,273 | 6,281 | (0.1 | %) | ||||||||||||||||
Total hotel operating expenses |
129,889 | 123,197 | 5.4 | % | 360,696 | 349,823 | 3.1 | % | ||||||||||||||||
Hotel EBITDA |
46,825 | 43,473 | 7.7 | % | 115,384 | 108,003 | 6.8 | % | ||||||||||||||||
Non-cash ground rent |
1,658 | 1,551 | 6.9 | % | 4,941 | 4,743 | 4.2 | % | ||||||||||||||||
Non-cash amortization of
unfavorable contract
liabilities |
(432 | ) | (432 | ) | | (1,278 | ) | (1,278 | ) | | ||||||||||||||
Hotel Adjusted EBITDA |
$ | 48,051 | $ | 44,592 | 7.8 | % | $ | 119,047 | $ | 111,468 | 6.8 | % | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming they were owned since January 1, 2010 but excludes the Frenchmans Reef & Morning Star Marriott Beach Resort from all periods presented due to the extensive 2011 renovation. |
- 14 -
Enterprise Value |
||||
Common equity capitalization (at September 9, 2011 closing price of $7.05/share) |
$ | 1,188,257 | ||
Consolidated debt |
1,075,888 | |||
Cash and cash equivalents |
(28,777 | ) | ||
Total enterprise value |
$ | 2,235,368 | ||
Share Reconciliation |
||||
Common shares outstanding |
167,502 | |||
Unvested restricted stock held by management and employees |
1,011 | |||
Share grants under deferred compensation plan held by directors |
34 | |||
Combined shares outstanding |
168,547 | |||
Interest | Outstanding | |||||||||||
Property | Rate | Term | Principal | Maturity | ||||||||
Courtyard Manhattan / Midtown East |
8.810 | % | Fixed | $ | 42,390 | October 2014 | ||||||
Salt Lake City Marriott Downtown |
5.500 | % | Fixed | 30,591 | January 2015 | |||||||
Courtyard Manhattan / Fifth Avenue |
6.480 | % | Fixed | 50,841 | June 2016 | |||||||
Los Angeles Airport Marriott |
5.300 | % | Fixed | 82,600 | July 2015 | |||||||
Marriott Frenchmans Reef |
5.440 | % | Fixed | 59,880 | August 2015 | |||||||
Renaissance Worthington |
5.400 | % | Fixed | 55,746 | July 2015 | |||||||
Orlando Airport Marriott |
5.680 | % | Fixed | 58,520 | January 2016 | |||||||
Chicago Marriott Downtown |
5.975 | % | Fixed | 215,027 | April 2016 | |||||||
Austin Renaissance Hotel |
5.507 | % | Fixed | 83,000 | December 2016 | |||||||
Waverly Renaissance Hotel |
5.503 | % | Fixed | 97,000 | December 2016 | |||||||
Hilton Minneapolis |
5.464 | % | Fixed | 99,415 | May 2021 | |||||||
JW Marriott Denver Cherry Creek |
6.470 | % | Fixed | 42,085 | July 2015 | |||||||
Courtyard Denver Downtown |
6.260 | % | Fixed | 27,140 | August 2012 | |||||||
Debt premiums (1) |
1,653 | |||||||||||
Total mortgage debt |
945,888 | |||||||||||
Senior Unsecured Credit Facility |
LIBOR + 3.00 | Variable | 130,000 | August 2014 | ||||||||
Total Debt |
$ | 1,075,888 | ||||||||||
(1) | The debt premiums are purchase accounting adjustments to record the debt on the JW Marriott Denver Cherry Creek and Courtyard Denver Downtown at their respective acquisition date fair values. The premiums will be amortized over the life of the loans into interest expense. |
- 15 -
ADR | Occupancy | RevPAR | Hotel Adjusted EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||||
3Q 2011 | 3Q 2010 | B/(W) | 3Q 2011 | 3Q 2010 | B/(W) | 3Q 2011 | 3Q 2010 | B/(W) | 3Q 2011 | 3Q 2010 | B/(W) | |||||||||||||||||||||||||||||||||||||
Atlanta Alpharetta |
$ | 133.08 | $ | 117.07 | 13.7 | % | 67.2 | % | 69.0 | % | (1.8 | %) | $ | 89.46 | $ | 80.72 | 10.8 | % | 26.65 | % | 22.55 | % | 410 | bps | ||||||||||||||||||||||||
Westin Atlanta North (2) |
$ | 106.95 | $ | 102.37 | 4.5 | % | 76.2 | % | 72.0 | % | 4.2 | % | $ | 81.44 | $ | 73.72 | 10.5 | % | 14.10 | % | 13.43 | % | 67 | bps | ||||||||||||||||||||||||
Atlanta Waverly |
$ | 125.83 | $ | 120.96 | 4.0 | % | 70.7 | % | 63.7 | % | 7.0 | % | $ | 88.96 | $ | 77.04 | 15.5 | % | 24.24 | % | 47.07 | % | -2283 | bps | ||||||||||||||||||||||||
Renaissance Austin |
$ | 132.98 | $ | 137.25 | (3.1 | %) | 60.3 | % | 57.5 | % | 2.8 | % | $ | 80.24 | $ | 78.89 | 1.7 | % | 20.88 | % | 22.79 | % | -191 | bps | ||||||||||||||||||||||||
Bethesda Marriott Suites |
$ | 148.97 | $ | 152.06 | (2.0 | %) | 61.7 | % | 67.6 | % | (5.9 | %) | $ | 91.94 | $ | 102.87 | (10.6 | %) | 16.69 | % | 20.71 | % | -402 | bps | ||||||||||||||||||||||||
Boston Westin (2) |
$ | 198.48 | $ | 184.80 | 7.4 | % | 83.1 | % | 79.9 | % | 3.2 | % | $ | 164.90 | $ | 147.72 | 11.6 | % | 28.75 | % | 25.37 | % | 338 | bps | ||||||||||||||||||||||||
Renaissance Charleston |
$ | 154.80 | $ | 151.90 | 1.9 | % | 86.2 | % | 88.7 | % | (2.5 | %) | $ | 133.36 | $ | 134.71 | (1.0 | %) | 27.41 | % | 30.46 | % | -305 | bps | ||||||||||||||||||||||||
Hilton Garden Inn Chelsea (2) |
$ | 207.11 | $ | 195.82 | 5.8 | % | 95.2 | % | 93.6 | % | 1.6 | % | $ | 197.27 | $ | 183.30 | 7.6 | % | 45.04 | % | 40.51 | % | 453 | bps | ||||||||||||||||||||||||
Chicago Marriott |
$ | 178.04 | $ | 175.41 | 1.5 | % | 85.6 | % | 84.7 | % | 0.9 | % | $ | 152.46 | $ | 148.52 | 2.7 | % | 24.78 | % | 23.71 | % | 107 | bps | ||||||||||||||||||||||||
Chicago Conrad (2) |
$ | 210.88 | $ | 198.78 | 6.1 | % | 93.8 | % | 89.4 | % | 4.4 | % | $ | 197.82 | $ | 177.66 | 11.3 | % | 37.64 | % | 31.85 | % | 579 | bps | ||||||||||||||||||||||||
Courtyard Denver Downtown (2) |
$ | 161.38 | $ | 151.73 | 6.4 | % | 91.1 | % | 87.1 | % | 4.0 | % | $ | 147.02 | $ | 132.15 | 11.3 | % | 47.74 | % | 45.50 | % | 224 | bps | ||||||||||||||||||||||||
Courtyard Fifth Avenue |
$ | 244.40 | $ | 247.56 | (1.3 | %) | 90.1 | % | 84.7 | % | 5.4 | % | $ | 220.19 | $ | 209.72 | 5.0 | % | 25.37 | % | 23.72 | % | 165 | bps | ||||||||||||||||||||||||
Courtyard Midtown East |
$ | 247.58 | $ | 235.92 | 4.9 | % | 88.7 | % | 87.4 | % | 1.3 | % | $ | 219.68 | $ | 206.26 | 6.5 | % | 31.49 | % | 28.91 | % | 258 | bps | ||||||||||||||||||||||||
Frenchmans Reef (2) |
$ | 187.66 | $ | 175.16 | 7.1 | % | 90.7 | % | 85.6 | % | 5.1 | % | $ | 170.19 | $ | 149.90 | 13.5 | % | (53.68 | %) | 5.01 | % | -5869 | bps | ||||||||||||||||||||||||
Griffin Gate Marriott |
$ | 132.95 | $ | 127.74 | 4.1 | % | 68.3 | % | 71.2 | % | (2.9 | %) | $ | 90.80 | $ | 90.99 | (0.2 | %) | 24.84 | % | 28.91 | % | -407 | bps | ||||||||||||||||||||||||
JW Marriott Denver Cherry Creek (2) |
$ | 241.65 | $ | 227.13 | 6.4 | % | 78.1 | % | 79.0 | % | (0.9 | %) | $ | 188.85 | $ | 179.50 | 5.2 | % | 35.24 | % | 31.57 | % | 367 | bps | ||||||||||||||||||||||||
Los Angeles Airport |
$ | 103.61 | $ | 100.33 | 3.3 | % | 90.9 | % | 85.3 | % | 5.6 | % | $ | 94.15 | $ | 85.59 | 10.0 | % | 16.02 | % | 13.81 | % | 221 | bps | ||||||||||||||||||||||||
Hilton Minneapolis (2) |
$ | 150.53 | $ | 143.14 | 5.2 | % | 89.7 | % | 84.8 | % | 4.9 | % | $ | 135.04 | $ | 121.33 | 11.3 | % | 37.15 | % | 35.33 | % | 182 | bps | ||||||||||||||||||||||||
Oak Brook Hills |
$ | 116.53 | $ | 109.28 | 6.6 | % | 64.6 | % | 61.5 | % | 3.1 | % | $ | 75.26 | $ | 67.25 | 11.9 | % | 16.45 | % | 17.55 | % | -110 | bps | ||||||||||||||||||||||||
Orlando Airport Marriott |
$ | 88.73 | $ | 86.92 | 2.1 | % | 68.6 | % | 65.1 | % | 3.5 | % | $ | 60.91 | $ | 56.60 | 7.6 | % | 7.19 | % | 7.35 | % | -16 | bps | ||||||||||||||||||||||||
Salt Lake City Marriott |
$ | 129.37 | $ | 133.49 | (3.1 | %) | 58.2 | % | 53.6 | % | 4.6 | % | $ | 75.34 | $ | 71.58 | 5.3 | % | 25.38 | % | 21.81 | % | 357 | bps | ||||||||||||||||||||||||
The Lodge at Sonoma |
$ | 245.22 | $ | 214.37 | 14.4 | % | 83.3 | % | 86.1 | % | (2.8 | %) | $ | 204.31 | $ | 184.52 | 10.7 | % | 28.13 | % | 27.59 | % | 54 | bps | ||||||||||||||||||||||||
Torrance Marriott South Bay |
$ | 105.14 | $ | 101.60 | 3.5 | % | 86.5 | % | 79.0 | % | 7.5 | % | $ | 90.91 | $ | 80.24 | 13.3 | % | 28.12 | % | 19.55 | % | 857 | bps | ||||||||||||||||||||||||
Vail Marriott (2) |
$ | 150.15 | $ | 183.45 | (18.2 | %) | 71.0 | % | 65.7 | % | 5.3 | % | $ | 106.56 | $ | 120.61 | (11.6 | %) | 21.51 | % | 23.24 | % | -173 | bps | ||||||||||||||||||||||||
Radisson Lexington Hotel New York (2) |
$ | 195.16 | $ | 183.80 | 6.2 | % | 97.6 | % | 97.3 | % | 0.3 | % | $ | 190.53 | $ | 178.76 | 6.6 | % | 35.93 | % | 40.17 | % | -424 | bps | ||||||||||||||||||||||||
Renaissance Worthington |
$ | 144.24 | $ | 156.29 | (7.7 | %) | 70.8 | % | 54.9 | % | 15.9 | % | $ | 102.09 | $ | 85.78 | 19.0 | % | 20.23 | % | 16.52 | % | 371 | bps | ||||||||||||||||||||||||
Total/Weighted Average |
$ | 157.92 | $ | 154.36 | 2.3 | % | 80.2 | % | 77.1 | % | 3.1 | % | $ | 126.72 | $ | 119.01 | 6.5 | % | 25.54 | % | 25.43 | % | 11 | bps | ||||||||||||||||||||||||
Comparable Total/Weighted Avg. (3) |
$ | 157.41 | $ | 153.32 | 2.7 | % | 80.1 | % | 76.7 | % | 3.4 | % | $ | 126.05 | $ | 117.63 | 7.2 | % | 27.19 | % | 26.75 | % | 44 | bps | ||||||||||||||||||||||||
Post-Sale Total/Weighted Average (4) |
$ | 160.46 | $ | 156.14 | 2.8 | % | 82.0 | % | 78.5 | % | 3.5 | % | $ | 131.53 | $ | 122.60 | 7.3 | % | 27.62 | % | 25.92 | % | 170 | bps | ||||||||||||||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming they were owned since January 1, 2010. | |
(2) | The hotel reports results on a monthly basis. The data presented is based upon the Companys reporting calendar for the third quarter and includes the months of June, July, and August. | |
(3) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort from all periods presented due to the extensive 2011 renovation. | |
(4) | The post-sale total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort and the three hotels under agreement to be sold from all periods presented. |
- 16 -
ADR | Occupancy | RevPAR | Hotel Adjusted EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||||
YTD 2011 | YTD 2010 | B/(W) | YTD 2011 | YTD 2010 | B/(W) | YTD 2011 | YTD 2010 | B/(W) | YTD 2011 | YTD 2010 | B/(W) | |||||||||||||||||||||||||||||||||||||
Atlanta Alpharetta |
$ | 133.83 | $ | 118.63 | 12.8 | % | 68.0 | % | 67.5 | % | 0.5 | % | $ | 91.00 | $ | 80.07 | 13.7 | % | 29.97 | % | 24.55 | % | 542 | bps | ||||||||||||||||||||||||
Westin Atlanta North (2) |
$ | 107.92 | $ | 102.40 | 5.4 | % | 72.3 | % | 71.4 | % | 0.9 | % | $ | 78.03 | $ | 73.14 | 6.7 | % | 14.97 | % | 15.00 | % | -3 | bps | ||||||||||||||||||||||||
Atlanta Waverly |
$ | 129.01 | $ | 126.66 | 1.9 | % | 68.2 | % | 64.7 | % | 3.5 | % | $ | 88.02 | $ | 81.93 | 7.4 | % | 23.66 | % | 29.65 | % | -599 | bps | ||||||||||||||||||||||||
Renaissance Austin |
$ | 140.88 | $ | 141.71 | (0.6 | %) | 64.6 | % | 61.7 | % | 2.9 | % | $ | 91.01 | $ | 87.46 | 4.1 | % | 28.14 | % | 28.68 | % | -54 | bps | ||||||||||||||||||||||||
Bethesda Marriott Suites |
$ | 167.16 | $ | 162.00 | 3.2 | % | 64.9 | % | 67.2 | % | (2.3 | %) | $ | 108.51 | $ | 108.83 | (0.3 | %) | 25.50 | % | 23.89 | % | 161 | bps | ||||||||||||||||||||||||
Boston Westin (2) |
$ | 191.18 | $ | 186.39 | 2.6 | % | 71.7 | % | 69.6 | % | 2.1 | % | $ | 137.00 | $ | 129.65 | 5.7 | % | 23.21 | % | 23.54 | % | -33 | bps | ||||||||||||||||||||||||
Renaissance Charleston |
$ | 168.95 | $ | 156.39 | 8.0 | % | 84.8 | % | 84.5 | % | 0.3 | % | $ | 143.30 | $ | 132.07 | 8.5 | % | 33.13 | % | 33.27 | % | -14 | bps | ||||||||||||||||||||||||
Hilton Garden Inn Chelsea (2) |
$ | 195.28 | $ | 182.80 | 6.8 | % | 92.1 | % | 90.0 | % | 2.1 | % | $ | 179.76 | $ | 164.57 | 9.2 | % | 42.65 | % | 39.22 | % | 343 | bps | ||||||||||||||||||||||||
Chicago Marriott |
$ | 184.90 | $ | 176.48 | 4.8 | % | 70.5 | % | 71.7 | % | (1.2 | %) | $ | 130.28 | $ | 126.48 | 3.0 | % | 20.43 | % | 18.63 | % | 180 | bps | ||||||||||||||||||||||||
Chicago Conrad (2) |
$ | 187.61 | $ | 176.17 | 6.5 | % | 84.5 | % | 77.7 | % | 6.8 | % | $ | 158.54 | $ | 136.93 | 15.8 | % | 27.78 | % | 21.88 | % | 590 | bps | ||||||||||||||||||||||||
Courtyard Denver Downtown (2) |
$ | 152.68 | $ | 146.22 | 4.4 | % | 79.9 | % | 82.1 | % | (2.2 | %) | $ | 121.96 | $ | 120.04 | 1.6 | % | 43.20 | % | 42.54 | % | 66 | bps | ||||||||||||||||||||||||
Courtyard Fifth Avenue |
$ | 243.78 | $ | 235.93 | 3.3 | % | 85.8 | % | 86.1 | % | (0.3 | %) | $ | 209.19 | $ | 203.18 | 3.0 | % | 24.78 | % | 24.29 | % | 49 | bps | ||||||||||||||||||||||||
Courtyard Midtown East |
$ | 243.92 | $ | 221.64 | 10.1 | % | 83.2 | % | 85.6 | % | (2.4 | %) | $ | 203.01 | $ | 189.62 | 7.1 | % | 30.34 | % | 28.40 | % | 194 | bps | ||||||||||||||||||||||||
Frenchmans Reef (2) |
$ | 239.39 | $ | 232.26 | 3.1 | % | 83.7 | % | 84.8 | % | (1.1 | %) | $ | 200.46 | $ | 197.00 | 1.8 | % | 8.75 | % | 25.80 | % | -1705 | bps | ||||||||||||||||||||||||
Griffin Gate Marriott |
$ | 130.04 | $ | 124.17 | 4.7 | % | 61.0 | % | 63.7 | % | (2.7 | %) | $ | 79.33 | $ | 79.11 | 0.3 | % | 22.74 | % | 22.62 | % | 12 | bps | ||||||||||||||||||||||||
JW Marriott Denver Cherry Creek (2) |
$ | 231.79 | $ | 215.38 | 7.6 | % | 71.7 | % | 73.9 | % | (2.2 | %) | $ | 166.20 | $ | 159.07 | 4.5 | % | 28.53 | % | 27.21 | % | 132 | bps | ||||||||||||||||||||||||
Los Angeles Airport |
$ | 104.64 | $ | 102.44 | 2.1 | % | 86.3 | % | 82.4 | % | 3.9 | % | $ | 90.29 | $ | 84.45 | 6.9 | % | 17.65 | % | 15.65 | % | 200 | bps | ||||||||||||||||||||||||
Hilton Minneapolis (2) |
$ | 139.47 | $ | 131.83 | 5.8 | % | 76.3 | % | 74.6 | % | 1.7 | % | $ | 106.41 | $ | 98.31 | 8.2 | % | 30.41 | % | 28.85 | % | 156 | bps | ||||||||||||||||||||||||
Oak Brook Hills |
$ | 113.64 | $ | 106.83 | 6.4 | % | 54.5 | % | 52.6 | % | 1.9 | % | $ | 61.87 | $ | 56.22 | 10.0 | % | 8.61 | % | 10.09 | % | -148 | bps | ||||||||||||||||||||||||
Orlando Airport Marriott |
$ | 99.90 | $ | 97.65 | 2.3 | % | 77.2 | % | 71.6 | % | 5.6 | % | $ | 77.12 | $ | 69.90 | 10.3 | % | 22.05 | % | 19.34 | % | 271 | bps | ||||||||||||||||||||||||
Salt Lake City Marriott |
$ | 127.22 | $ | 134.00 | (5.1 | %) | 60.0 | % | 54.0 | % | 6.0 | % | $ | 76.28 | $ | 72.32 | 5.5 | % | 25.45 | % | 26.10 | % | -65 | bps | ||||||||||||||||||||||||
The Lodge at Sonoma |
$ | 211.60 | $ | 192.22 | 10.1 | % | 70.9 | % | 68.1 | % | 2.8 | % | $ | 150.06 | $ | 130.99 | 14.6 | % | 15.29 | % | 14.36 | % | 93 | bps | ||||||||||||||||||||||||
Torrance Marriott South Bay |
$ | 105.61 | $ | 100.73 | 4.8 | % | 81.1 | % | 81.4 | % | (0.3 | %) | $ | 85.64 | $ | 81.96 | 4.5 | % | 24.91 | % | 19.76 | % | 515 | bps | ||||||||||||||||||||||||
Vail Marriott (2) |
$ | 226.25 | $ | 232.48 | (2.7 | %) | 65.8 | % | 65.8 | % | 0.0 | % | $ | 148.94 | $ | 152.94 | (2.6 | %) | 30.21 | % | 32.46 | % | -225 | bps | ||||||||||||||||||||||||
Radisson Lexington Hotel New York (2) |
$ | 180.19 | $ | 170.37 | 5.8 | % | 95.4 | % | 94.4 | % | 1.0 | % | $ | 171.84 | $ | 160.80 | 6.9 | % | 31.65 | % | 33.43 | % | -178 | bps | ||||||||||||||||||||||||
Renaissance Worthington |
$ | 159.30 | $ | 158.77 | 0.3 | % | 71.5 | % | 66.2 | % | 5.3 | % | $ | 113.88 | $ | 105.07 | 8.4 | % | 30.66 | % | 29.87 | % | 79 | bps | ||||||||||||||||||||||||
Total/Weighted Average |
$ | 158.08 | $ | 153.71 | 2.8 | % | 74.6 | % | 73.2 | % | 1.4 | % | $ | 117.96 | $ | 112.50 | 4.9 | % | 24.22 | % | 24.46 | % | -24 | bps | ||||||||||||||||||||||||
Comparable Total/Weighted Avg. (3) |
$ | 155.55 | $ | 149.95 | 3.7 | % | 74.4 | % | 72.7 | % | 1.7 | % | $ | 115.68 | $ | 109.03 | 6.1 | % | 25.01 | % | 24.35 | % | 66 | bps | ||||||||||||||||||||||||
Post-Sale Total/Weighted Average (4) |
$ | 158.32 | $ | 152.31 | 3.9 | % | 75.8 | % | 74.1 | % | 1.7 | % | $ | 119.93 | $ | 112.82 | 6.3 | % | 25.01 | % | 23.93 | % | 108 | bps | ||||||||||||||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming they were owned since January 1, 2010 | |
(2) | The hotel reports results on a monthly basis. The data presented is based upon the Companys reporting calendar and includes the months of January through August. | |
(3) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort from all periods presented due to the extensive 2011 renovation. | |
(4) | The post-sale total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort and the three hotels under agreement to be sold from all periods presented. |
- 17 -
Third Quarter 2011 (1) | ||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||
Plus: | Plus: | Non-Cash Adjustments | Equals: | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | (2) | Hotel Adjusted EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 3,347 | $ | 603 | $ | 289 | $ | | $ | | $ | 892 | ||||||||||||
Westin Atlanta North (3) |
$ | 4,149 | $ | 150 | $ | 435 | $ | | $ | | $ | 585 | ||||||||||||
Atlanta Waverly |
$ | 6,946 | $ | (647 | ) | $ | 1,080 | $ | 1,251 | $ | | $ | 1,684 | |||||||||||
Renaissance Austin |
$ | 5,398 | $ | (897 | ) | $ | 951 | $ | 1,073 | $ | | $ | 1,127 | |||||||||||
Bethesda Marriott Suites |
$ | 2,978 | $ | (1,430 | ) | $ | 481 | $ | | $ | 1,446 | $ | 497 | |||||||||||
Boston Westin (3) |
$ | 18,809 | $ | 2,424 | $ | 2,866 | $ | | $ | 117 | $ | 5,407 | ||||||||||||
Renaissance Charleston |
$ | 2,255 | $ | 306 | $ | 341 | $ | | $ | (29 | ) | $ | 618 | |||||||||||
Hilton Garden Inn Chelsea (3) |
$ | 3,146 | $ | 981 | $ | 436 | $ | | $ | | $ | 1,417 | ||||||||||||
Chicago Marriott |
$ | 22,299 | $ | (155 | ) | $ | 2,956 | $ | 3,090 | $ | (365 | ) | $ | 5,526 | ||||||||||
Chicago Conrad (3) |
$ | 7,717 | $ | 1,760 | $ | 1,145 | $ | | $ | | $ | 2,905 | ||||||||||||
Courtyard Denver Downtown (3) |
$ | 2,564 | $ | 625 | $ | 264 | $ | 335 | $ | | $ | 1,224 | ||||||||||||
Courtyard Fifth Avenue |
$ | 3,492 | $ | (418 | ) | $ | 439 | $ | 817 | $ | 48 | $ | 886 | |||||||||||
Courtyard Midtown East |
$ | 6,017 | $ | 447 | $ | 531 | $ | 917 | $ | | $ | 1,895 | ||||||||||||
Frenchmans Reef (3) |
$ | 3,694 | $ | (3,540 | ) | $ | 971 | $ | 586 | $ | | $ | (1,983 | ) | ||||||||||
Griffin Gate Marriott |
$ | 5,668 | $ | 650 | $ | 759 | $ | | $ | (1 | ) | $ | 1,408 | |||||||||||
JW Marriott Denver Cherry Creek (3) |
$ | 5,425 | $ | 920 | $ | 418 | $ | 574 | $ | | $ | 1,912 | ||||||||||||
Los Angeles Airport |
$ | 12,394 | $ | (269 | ) | $ | 1,195 | $ | 1,060 | $ | | $ | 1,986 | |||||||||||
Minneapolis Hilton (3) |
$ | 15,402 | $ | 2,885 | $ | 1,698 | $ | 1,290 | $ | (151 | ) | $ | 5,722 | |||||||||||
Oak Brook Hills |
$ | 5,770 | $ | 92 | $ | 732 | $ | | $ | 125 | $ | 949 | ||||||||||||
Orlando Airport Marriott |
$ | 3,449 | $ | (1,302 | ) | $ | 751 | $ | 799 | $ | | $ | 248 | |||||||||||
Salt Lake City Marriott |
$ | 4,744 | $ | 165 | $ | 629 | $ | 410 | $ | | $ | 1,204 | ||||||||||||
The Lodge at Sonoma |
$ | 4,814 | $ | 1,032 | $ | 322 | $ | | $ | | $ | 1,354 | ||||||||||||
Torrance Marriott South Bay |
$ | 5,387 | $ | 784 | $ | 731 | $ | | $ | | $ | 1,515 | ||||||||||||
Vail Marriott (3) |
$ | 5,375 | $ | 644 | $ | 512 | $ | | $ | | $ | 1,156 | ||||||||||||
Radisson Lexington Hotel New York (3) |
$ | 13,149 | $ | 2,334 | $ | 2,354 | $ | 3 | $ | 33 | $ | 4,724 | ||||||||||||
Renaissance Worthington |
$ | 6,020 | $ | (140 | ) | $ | 626 | $ | 729 | $ | 3 | $ | 1,218 | |||||||||||
Total |
$ | 180,408 | $ | 8,004 | $ | 23,912 | $ | 12,934 | $ | 1,226 | $ | 46,068 | ||||||||||||
Comparable Total (4) |
$ | 176,714 | $ | 11,544 | $ | 22,941 | $ | 12,348 | $ | 1,226 | $ | 48,051 | ||||||||||||
Post-Sale Total (5) |
$ | 158,702 | $ | 12,438 | $ | 20,151 | $ | 10,024 | $ | 1,227 | $ | 43,832 | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming they were owned since January 1, 2010. | |
(2) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of favorable lease assets, and the non-cash amortization of unfavorable contract liabilities. | |
(3) | The hotel reports results on a monthly basis. The amounts presented are based on the Companys reporting calendar for the third quarter and include the months of June, July, and August. | |
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due to the extensive 2011 renovation. | |
(5) | The post-sale total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort and the three hotels under agreement to be sold. |
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Third Quarter 2010 (1) | ||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||
Plus: | Plus: | Non-Cash Adjustments | Equals: | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | (2) | Hotel Adjusted EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 3,060 | $ | 404 | $ | 286 | $ | | $ | | $ | 690 | ||||||||||||
Westin Atlanta North (3) |
$ | 3,931 | $ | 96 | $ | 432 | $ | | $ | | $ | 528 | ||||||||||||
Atlanta Waverly |
$ | 6,662 | $ | 818 | $ | 1,066 | $ | 1,252 | $ | | $ | 3,136 | ||||||||||||
Renaissance Austin |
$ | 5,982 | $ | (666 | ) | $ | 954 | $ | 1,075 | $ | | $ | 1,363 | |||||||||||
Bethesda Marriott Suites |
$ | 3,197 | $ | (1,292 | ) | $ | 503 | $ | | $ | 1,451 | $ | 662 | |||||||||||
Boston Westin (3) |
$ | 16,170 | $ | 1,092 | $ | 2,894 | $ | | $ | 117 | $ | 4,103 | ||||||||||||
Renaissance Charleston |
$ | 2,226 | $ | 346 | $ | 361 | $ | | $ | (29 | ) | $ | 678 | |||||||||||
Hilton Garden Inn Chelsea (3) |
$ | 2,930 | $ | 683 | $ | 504 | $ | | $ | | $ | 1,187 | ||||||||||||
Chicago Marriott |
$ | 21,634 | $ | (1,029 | ) | $ | 3,444 | $ | 3,079 | $ | (365 | ) | $ | 5,129 | ||||||||||
Chicago Conrad (3) |
$ | 7,096 | $ | 1,152 | $ | 1,108 | $ | | $ | | $ | 2,260 | ||||||||||||
Courtyard Denver Downtown (3) |
$ | 2,299 | $ | 425 | $ | 280 | $ | 341 | $ | | $ | 1,046 | ||||||||||||
Courtyard Fifth Avenue |
$ | 3,288 | $ | (504 | ) | $ | 437 | $ | 799 | $ | 48 | $ | 780 | |||||||||||
Courtyard Midtown East |
$ | 5,597 | $ | 183 | $ | 522 | $ | 913 | $ | | $ | 1,618 | ||||||||||||
Frenchmans Reef (3) |
$ | 10,789 | $ | (3,043 | ) | $ | 1,402 | $ | 791 | $ | 1,391 | $ | 541 | |||||||||||
Griffin Gate Marriott |
$ | 6,046 | $ | 998 | $ | 751 | $ | | $ | (1 | ) | $ | 1,748 | |||||||||||
JW Marriott Denver Cherry Creek (3) |
$ | 5,242 | $ | 650 | $ | 420 | $ | 585 | $ | | $ | 1,655 | ||||||||||||
Los Angeles Airport |
$ | 11,329 | $ | (796 | ) | $ | 1,324 | $ | 1,036 | $ | | $ | 1,564 | |||||||||||
Minneapolis Hilton (3) |
$ | 13,965 | $ | 3,535 | $ | 1,662 | $ | | $ | (263 | ) | $ | 4,934 | |||||||||||
Oak Brook Hills |
$ | 5,691 | $ | 128 | $ | 746 | $ | | $ | 125 | $ | 999 | ||||||||||||
Orlando Airport Marriott |
$ | 3,238 | $ | (1,297 | ) | $ | 750 | $ | 785 | $ | | $ | 238 | |||||||||||
Salt Lake City Marriott |
$ | 4,420 | $ | (169 | ) | $ | 714 | $ | 419 | $ | | $ | 964 | |||||||||||
The Lodge at Sonoma |
$ | 4,552 | $ | 932 | $ | 324 | $ | | $ | | $ | 1,256 | ||||||||||||
Torrance Marriott South Bay |
$ | 4,492 | $ | 125 | $ | 753 | $ | | $ | | $ | 878 | ||||||||||||
Vail Marriott (3) |
$ | 5,835 | $ | 861 | $ | 495 | $ | | $ | | $ | 1,356 | ||||||||||||
Radisson Lexington Hotel New York (3) |
$ | 12,414 | $ | 2,595 | $ | 2,355 | $ | 3 | $ | 33 | $ | 4,986 | ||||||||||||
Renaissance Worthington |
$ | 5,374 | $ | (462 | ) | $ | 625 | $ | 722 | $ | 3 | $ | 888 | |||||||||||
Total |
$ | 177,459 | $ | 5,765 | $ | 25,112 | $ | 11,800 | $ | 2,510 | $ | 45,133 | ||||||||||||
Comparable Total (4) |
$ | 166,670 | $ | 8,808 | $ | 23,710 | $ | 11,009 | $ | 1,119 | $ | 44,592 | ||||||||||||
Post-Sale Total (5) |
$ | 147,980 | $ | 7,658 | $ | 20,939 | $ | 8,682 | $ | 1,120 | $ | 38,345 | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming they were owned as of January 1, 2010. | |
(2) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of our favorable lease assets and the non-cash amortization of our unfavorable contract liabilities. | |
(3) | The hotel reports results on a monthly basis. The data presented is based upon the Companys reporting calendar for the third quarter and includes the months of June, July and August. | |
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due to the extensive 2011 renovation. | |
(5) | The post-sale total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort and the three hotels under agreement to be sold. |
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Year to Date 2011 (1) | ||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||
Plus: | Plus: | Non-Cash | Equals: | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Adjustments (2) | Hotel Adjusted EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 10,588 | $ | 2,311 | $ | 862 | $ | | $ | | $ | 3,173 | ||||||||||||
Westin Atlanta North (3) |
$ | 10,869 | $ | 349 | $ | 1,278 | $ | | $ | | $ | 1,627 | ||||||||||||
Atlanta Waverly |
$ | 20,948 | $ | (2,030 | ) | $ | 3,232 | $ | 3,754 | $ | | $ | 4,956 | |||||||||||
Renaissance Austin |
$ | 19,473 | $ | (603 | ) | $ | 2,860 | $ | 3,222 | $ | | $ | 5,479 | |||||||||||
Bethesda Marriott Suites |
$ | 10,332 | $ | (3,160 | ) | $ | 1,452 | $ | | $ | 4,343 | $ | 2,635 | |||||||||||
Boston Westin (3) |
$ | 43,761 | $ | 1,168 | $ | 8,637 | $ | | $ | 351 | $ | 10,156 | ||||||||||||
Renaissance Charleston |
$ | 7,307 | $ | 1,505 | $ | 1,003 | $ | | $ | (87 | ) | $ | 2,421 | |||||||||||
Hilton Garden Inn Chelsea (3) |
$ | 7,615 | $ | 1,966 | $ | 1,282 | $ | | $ | | $ | 3,248 | ||||||||||||
Chicago Marriott |
$ | 58,405 | $ | (5,386 | ) | $ | 9,218 | $ | 9,198 | $ | (1,095 | ) | $ | 11,935 | ||||||||||
Chicago Conrad (3) |
$ | 15,952 | $ | 1,015 | $ | 3,417 | $ | | $ | | $ | 4,432 | ||||||||||||
Courtyard Denver Downtown (3) |
$ | 5,673 | $ | 622 | $ | 824 | $ | 1,005 | $ | | $ | 2,451 | ||||||||||||
Courtyard Fifth Avenue |
$ | 9,958 | $ | (1,405 | ) | $ | 1,316 | $ | 2,414 | $ | 143 | $ | 2,468 | |||||||||||
Courtyard Midtown East |
$ | 16,677 | $ | 709 | $ | 1,593 | $ | 2,757 | $ | | $ | 5,059 | ||||||||||||
Frenchmans Reef (3) |
$ | 24,100 | $ | (2,883 | ) | $ | 2,902 | $ | 2,089 | $ | | $ | 2,108 | |||||||||||
Griffin Gate Marriott |
$ | 15,441 | $ | 1,220 | $ | 2,295 | $ | | $ | (3 | ) | $ | 3,512 | |||||||||||
JW Marriott Denver Cherry Creek (3) |
$ | 12,727 | $ | 652 | $ | 1,258 | $ | 1,721 | $ | | $ | 3,631 | ||||||||||||
Los Angeles Airport |
$ | 36,999 | $ | (620 | ) | $ | 4,020 | $ | 3,131 | $ | | $ | 6,531 | |||||||||||
Minneapolis Hilton (3) |
$ | 33,980 | $ | 3,463 | $ | 5,074 | $ | 2,273 | $ | (475 | ) | $ | 10,335 | |||||||||||
Oak Brook Hills |
$ | 13,955 | $ | (1,382 | ) | $ | 2,209 | $ | | $ | 375 | $ | 1,202 | |||||||||||
Orlando Airport Marriott |
$ | 13,857 | $ | (1,571 | ) | $ | 2,260 | $ | 2,367 | $ | | $ | 3,056 | |||||||||||
Salt Lake City Marriott |
$ | 14,572 | $ | 601 | $ | 1,885 | $ | 1,223 | $ | | $ | 3,709 | ||||||||||||
The Lodge at Sonoma |
$ | 11,411 | $ | 772 | $ | 973 | $ | | $ | | $ | 1,745 | ||||||||||||
Torrance Marriott South Bay |
$ | 15,057 | $ | 1,547 | $ | 2,204 | $ | | $ | | $ | 3,751 | ||||||||||||
Vail Marriott (3) |
$ | 17,115 | $ | 3,642 | $ | 1,529 | $ | | $ | | $ | 5,171 | ||||||||||||
Radisson Lexington Hotel New York (3) |
$ | 31,490 | $ | 2,792 | $ | 7,064 | $ | 9 | $ | 103 | $ | 9,968 | ||||||||||||
Renaissance Worthington |
$ | 21,918 | $ | 2,673 | $ | 1,877 | $ | 2,161 | $ | 8 | $ | 6,719 | ||||||||||||
Total |
$ | 500,180 | $ | 7,967 | $ | 72,524 | $ | 37,324 | $ | 3,663 | $ | 121,155 | ||||||||||||
Comparable Total (4) |
$ | 476,080 | $ | 10,850 | $ | 69,622 | $ | 35,235 | $ | 3,663 | $ | 119,047 | ||||||||||||
Post-Sale Total (5) |
$ | 420,218 | $ | 12,263 | $ | 61,235 | $ | 28,259 | $ | 3,666 | $ | 105,100 | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming they were owned as of January 1, 2010. | |
(2) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of our favorable lease assets and the non-cash amortization of our unfavorable contract liabilities. | |
(3) | The hotel reports results on a monthly basis. The data presented is based upon the Companys reporting calendar and includes the months of January through August. | |
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due to the extensive 2011 renovation. | |
(5) | The post-sale total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort and the three hotels under agreement to be sold. |
- 20 -
Year to Date 2010 (1) | ||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||
Plus: | Plus: | Non-Cash Adjustments | Equals: | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | (2) | Hotel Adjusted EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 9,413 | $ | 1,453 | $ | 858 | $ | | $ | | $ | 2,311 | ||||||||||||
Westin Atlanta North (3) |
$ | 10,511 | $ | 311 | $ | 1,266 | $ | | $ | | $ | 1,577 | ||||||||||||
Atlanta Waverly |
$ | 20,622 | $ | (810 | ) | $ | 3,155 | $ | 3,770 | $ | | $ | 6,115 | |||||||||||
Renaissance Austin |
$ | 19,928 | $ | (381 | ) | $ | 2,865 | $ | 3,232 | $ | | $ | 5,716 | |||||||||||
Bethesda Marriott Suites |
$ | 9,988 | $ | (3,505 | ) | $ | 1,523 | $ | | $ | 4,368 | $ | 2,386 | |||||||||||
Boston Westin (3) |
$ | 42,536 | $ | 994 | $ | 8,670 | $ | | $ | 351 | $ | 10,015 | ||||||||||||
Renaissance Charleston |
$ | 6,839 | $ | 1,233 | $ | 1,129 | $ | | $ | (87 | ) | $ | 2,275 | |||||||||||
Hilton Garden Inn Chelsea (3) |
$ | 6,978 | $ | 1,225 | $ | 1,512 | $ | | $ | | $ | 2,737 | ||||||||||||
Chicago Marriott |
$ | 57,113 | $ | (7,190 | ) | $ | 9,641 | $ | 9,285 | $ | (1,095 | ) | $ | 10,641 | ||||||||||
Chicago Conrad (3) |
$ | 14,139 | $ | (225 | ) | $ | 3,319 | $ | | $ | | $ | 3,094 | |||||||||||
Courtyard Denver Downtown (3) |
$ | 5,573 | $ | 510 | $ | 839 | $ | 1,022 | $ | | $ | 2,371 | ||||||||||||
Courtyard Fifth Avenue |
$ | 9,630 | $ | (1,521 | ) | $ | 1,310 | $ | 2,405 | $ | 145 | $ | 2,339 | |||||||||||
Courtyard Midtown East |
$ | 15,590 | $ | 79 | $ | 1,561 | $ | 2,787 | $ | | $ | 4,427 | ||||||||||||
Frenchmans Reef (3) |
$ | 37,119 | $ | 5,758 | $ | 3,173 | $ | (745 | ) | $ | 1,391 | $ | 9,577 | |||||||||||
Griffin Gate Marriott |
$ | 16,051 | $ | 1,352 | $ | 2,282 | $ | | $ | (3 | ) | $ | 3,631 | |||||||||||
JW Marriott Denver Cherry Creek (3) |
$ | 12,128 | $ | 285 | $ | 1,260 | $ | 1,755 | $ | | $ | 3,300 | ||||||||||||
Los Angeles Airport |
$ | 34,699 | $ | (1,624 | ) | $ | 3,936 | $ | 3,120 | $ | | $ | 5,432 | |||||||||||
Minneapolis Hilton (3) |
$ | 31,472 | $ | 4,704 | $ | 5,076 | $ | | $ | (700 | ) | $ | 9,080 | |||||||||||
Oak Brook Hills |
$ | 14,023 | $ | (1,200 | ) | $ | 2,240 | $ | | $ | 375 | $ | 1,415 | |||||||||||
Orlando Airport Marriott |
$ | 12,874 | $ | (2,100 | ) | $ | 2,226 | $ | 2,364 | $ | | $ | 2,490 | |||||||||||
Salt Lake City Marriott |
$ | 14,350 | $ | 327 | $ | 2,145 | $ | 1,274 | $ | | $ | 3,746 | ||||||||||||
The Lodge at Sonoma |
$ | 10,287 | $ | 509 | $ | 968 | $ | | $ | | $ | 1,477 | ||||||||||||
Torrance Marriott South Bay |
$ | 13,995 | $ | 509 | $ | 2,257 | $ | | $ | | $ | 2,766 | ||||||||||||
Vail Marriott (3) |
$ | 18,053 | $ | 3,943 | $ | 1,917 | $ | | $ | | $ | 5,860 | ||||||||||||
Radisson Lexington Hotel New York
(3) |
$ | 29,617 | $ | 2,723 | $ | 7,065 | $ | 9 | $ | 103 | $ | 9,900 | ||||||||||||
Renaissance Worthington |
$ | 21,417 | $ | 2,008 | $ | 2,199 | $ | 2,182 | $ | 8 | $ | 6,397 | ||||||||||||
Total |
$ | 494,945 | $ | 9,367 | $ | 74,392 | $ | 32,460 | $ | 4,856 | $ | 121,045 | ||||||||||||
Comparable Total (4) |
$ | 457,826 | $ | 3,609 | $ | 71,219 | $ | 33,205 | $ | 3,465 | $ | 111,468 | ||||||||||||
Post-Sale Total (5) |
$ | 401,225 | $ | 3,448 | $ | 62,917 | $ | 26,203 | $ | 3,468 | $ | 96,006 | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming they were owned as of January 1, 2010. | |
(2) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of our favorable lease assets and the non-cash amortization of our unfavorable contract liabilities. | |
(3) | The hotel reports results on a monthly basis. The data presented is based upon the Companys reporting calendar and includes the months of January through August. | |
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due to the extensive 2011 renovation. | |
(5) | The post-sale total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort and the three hotels under agreement to be sold. |
- 21 -