Maryland | 001-32514 | 20-1180098 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1 | Press release dated May 12, 2014. |
DIAMONDROCK HOSPITALITY COMPANY | ||||||
Date: May 12, 2014 | By: | /s/ William J. Tennis | ||||
William J. Tennis | ||||||
Executive Vice President, General Counsel and Corporate Secretary |
• | Pro Forma RevPAR: Pro Forma RevPAR was $133.66, an increase of 8.4% from 2013. |
• | Pro Forma Hotel Adjusted EBITDA Margin: Pro Forma Hotel Adjusted EBITDA margin was 22.57%, an increase of 95 basis points from 2013. |
• | Pro Forma Hotel Adjusted EBITDA: Pro Forma Hotel Adjusted EBITDA was $42.5 million, an increase of 14% from 2013. |
• | Adjusted EBITDA: Adjusted EBITDA was $37.3 million. |
• | Adjusted FFO: Adjusted FFO was $29.5 million and Adjusted FFO per diluted share was $0.15. |
• | Dividends: The Company declared a quarterly dividend of $0.1025 per share during the first quarter, representing a 21% increase over the prior quarterly dividend. |
• | Chief Investment Officer Hire: Troy Furbay, a proven leader with 25 years of experience in the lodging industry, joined the Company as Executive Vice President and Chief Investment Officer in April 2014. |
• | Non-Core Hotel Disposition: The Company sold the 386-room Oak Brook Hills Resort on April 14, 2014 for $30.1 million. |
First Quarter | ||||||||||
2014 | 2013 | Change | ||||||||
ADR1 | $180.81 | $172.95 | 4.5 | % | ||||||
Occupancy1 | 73.9 | % | 71.3 | % | 2.6 percentage points | |||||
RevPAR1 | $133.66 | $123.32 | 8.4 | % | ||||||
Hotel Adjusted EBITDA Margin1 | 22.57 | % | 21.62 | % | 95 basis points | |||||
Adjusted EBITDA | $37.3 million | $34.3 million | $3.0 million | |||||||
Adjusted FFO | $29.5 million | $26.8 million | $2.7 million | |||||||
Adjusted FFO per diluted share | $0.15 | $0.14 | $0.01 | |||||||
• | Oak Brook Hills Resort: The sale of the hotel reduces 2014 Adjusted EBITDA by approximately $3.5 million and 2014 Adjusted FFO by approximately $2.5 million. |
• | Allerton Loan: The payoff of the Allerton Loan will reduce 2014 Adjusted EBITDA and 2014 Adjusted FFO by approximately $3.5 million. |
Metric | Previous Guidance | Impact | Revised Guidance | ||
Low End | High End | Low End | High End | ||
Pro Forma RevPAR Growth | 9 percent | 11 percent | N/A | 9 percent | 11 percent |
Adjusted EBITDA | $230 million | $240 million | $7 million | $223 million | $233 million |
Adjusted FFO | $169 million | $176 million | $6 million | $163 million | $170 million |
Adjusted FFO per share (based on 196.5 million shares) | $0.86 per share | $0.90 per share | $0.03 per share | $0.83 per share | $0.87 per share |
March 31, 2014 | December 31, 2013 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Property and equipment, at cost | $ | 3,188,753 | $ | 3,168,088 | |||
Less: accumulated depreciation | (625,692 | ) | (600,555 | ) | |||
2,563,061 | 2,567,533 | ||||||
Deferred financing costs, net | 6,910 | 7,702 | |||||
Restricted cash | 97,949 | 89,106 | |||||
Due from hotel managers | 76,056 | 69,353 | |||||
Note receivable | 44,762 | 50,084 | |||||
Favorable lease assets, net | 39,677 | 39,936 | |||||
Prepaid and other assets (1) | 76,946 | 79,474 | |||||
Cash and cash equivalents | 111,482 | 144,584 | |||||
Total assets | $ | 3,016,843 | $ | 3,047,772 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Mortgage debt | $ | 1,088,259 | $ | 1,091,861 | |||
Senior unsecured credit facility | — | — | |||||
Total debt | 1,088,259 | 1,091,861 | |||||
Deferred income related to key money, net | 23,435 | 23,707 | |||||
Unfavorable contract liabilities, net | 77,625 | 78,093 | |||||
Due to hotel managers | 54,914 | 54,225 | |||||
Dividends declared and unpaid | 20,330 | 16,981 | |||||
Accounts payable and accrued expenses (2) | 88,564 | 102,214 | |||||
Total other liabilities | 264,868 | 275,220 | |||||
Stockholders’ Equity: | |||||||
Preferred stock, $0.01 par value; 10,000,000 shares authorized; no shares issued and outstanding | — | — | |||||
Common stock, $0.01 par value; 400,000,000 shares authorized; 195,679,187 and 195,470,791 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 1,957 | 1,955 | |||||
Additional paid-in capital | 1,978,800 | 1,979,613 | |||||
Accumulated deficit | (317,041 | ) | (300,877 | ) | |||
Total stockholders’ equity | 1,663,716 | 1,680,691 | |||||
Total liabilities and stockholders’ equity | $ | 3,016,843 | $ | 3,047,772 |
(1) | Includes $39.4 million of deferred tax assets, $26.9 million for the Hilton Garden Inn Times Square purchase deposit, $5.6 million of prepaid expenses and $5.0 million of other assets as of March 31, 2014. |
(2) | Includes $60.4 million of deferred ground rent, $4.1 million of deferred tax liabilities, $10.2 million of accrued property taxes, $3.3 million of accrued capital expenditures and $10.6 million of other accrued liabilities as of March 31, 2014. |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Revenues: | |||||||
Rooms | $ | 129,736 | $ | 120,381 | |||
Food and beverage | 48,611 | 44,017 | |||||
Other | 11,737 | 11,465 | |||||
Total revenues | 190,084 | 175,863 | |||||
Operating Expenses: | |||||||
Rooms | 38,105 | 35,181 | |||||
Food and beverage | 34,500 | 32,842 | |||||
Management fees | 5,293 | 4,735 | |||||
Other hotel expenses | 72,476 | 67,655 | |||||
Depreciation and amortization | 25,123 | 26,251 | |||||
Corporate expenses | 5,188 | 7,845 | |||||
Gain on insurance proceeds | (663 | ) | — | ||||
Total operating expenses | 180,022 | 174,509 | |||||
Operating profit | 10,062 | 1,354 | |||||
Other Expenses (Income): | |||||||
Interest income | (1,652 | ) | (1,285 | ) | |||
Interest expense | 14,525 | 13,583 | |||||
Total other expenses, net | 12,873 | 12,298 | |||||
Loss from continuing operations before income taxes | (2,811 | ) | (10,944 | ) | |||
Income tax benefit | 6,848 | 6,145 | |||||
Income (loss) from continuing operations | 4,037 | (4,799 | ) | ||||
Income from discontinued operations, net of income taxes | — | 673 | |||||
Net income (loss) | 4,037 | (4,126 | ) | ||||
Earnings (loss) earnings per share: | |||||||
Continuing operations | $ | 0.02 | $ | (0.02 | ) | ||
Discontinued operations | 0.00 | 0.00 | |||||
Basic and diluted earnings (loss) per share | $ | 0.02 | $ | (0.02 | ) |
• | Non-Cash Ground Rent: We exclude the non-cash expense incurred from the straight line recognition of rent from our ground lease obligations and the non-cash amortization of our favorable lease assets. |
• | Non-Cash Amortization of Favorable and Unfavorable Contracts: We exclude the non-cash amortization of the favorable management contract assets recorded in conjunction with our acquisitions of the Westin Washington D.C. City Center, Westin San Diego, and Hilton Burlington and the non-cash amortization of the unfavorable contract liabilities recorded in conjunction with our acquisitions of the Bethesda Marriott Suites, the Chicago Marriott Downtown, the Renaissance Charleston and the Lexington Hotel New York. The amortization of the favorable and unfavorable contracts does not reflect the underlying operating performance of our hotels. |
• | 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. We exclude the effect of these one-time adjustments because they do not reflect its actual performance for that period. |
• | Gains or Losses from Early Extinguishment of Debt: We exclude the effect of gains or losses recorded on the early extinguishment of debt because we believe they do not accurately reflect the underlying performance of the Company. |
• | Acquisition Costs: We exclude acquisition transaction costs expensed during the period because we believe they do not reflect the underlying performance of the Company. |
• | Allerton Loan: We recognize interest income, which includes the amortization of the difference between the carrying basis of the old loan and face value of the new loan. Cash payments received during 2010 and 2011 that were included in Adjusted EBITDA and Adjusted FFO and reduced the carrying basis of the loan are now deducted from Adjusted EBITDA and Adjusted FFO on a straight-line basis over the anticipated five-year term of the new loan. |
• | Other Non-Cash and /or Unusual Items: From time to time we incur costs or realize gains that we do not believe reflect the underlying performance of the Company. Such items include, but are not limited to, pre-opening costs, contract termination fees, severance costs, and gains from legal settlements or insurance proceeds. |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Net income (loss) | $ | 4,037 | $ | (4,126 | ) | ||
Interest expense | 14,525 | 13,583 | |||||
Income tax expense (benefit) (1) | (6,848 | ) | (6,143 | ) | |||
Real estate related depreciation and amortization (2) | 25,123 | 26,834 | |||||
EBITDA | 36,837 | 30,148 | |||||
Non-cash ground rent | 1,696 | 1,693 | |||||
Non-cash amortization of favorable and unfavorable contract liabilities, net | (353 | ) | (354 | ) | |||
Gain on insurance proceeds | (663 | ) | — | ||||
Reversal of previously recognized Allerton income | (291 | ) | (291 | ) | |||
Acquisition costs | 36 | 9 | |||||
Pre-opening costs | 14 | — | |||||
Severance costs | — | 3,065 | |||||
Adjusted EBITDA | $ | 37,276 | $ | 34,270 |
(1) | Includes $2 of income tax expense reported in discontinued operations for the three months ended March 31, 2013. |
(2) | Includes $0.6 million of depreciation expense reported in discontinued operations for the three months ended March 31, 2013. |
Full Year 2014 Guidance | |||||||
Low End | High End | ||||||
Net income | $ | 62,978 | $ | 70,478 | |||
Interest expense | 59,200 | 59,100 | |||||
Income tax expense (benefit) | 400 | 3,500 | |||||
Real estate related depreciation and amortization | 95,500 | 95,000 | |||||
EBITDA | 218,078 | 228,078 | |||||
Non-cash ground rent | 6,400 | 6,400 | |||||
Non-cash amortization of favorable and unfavorable contracts, net | (1,400 | ) | (1,400 | ) | |||
Gain on insurance proceeds | (663 | ) | (663 | ) | |||
Reversal of previously recognized Allerton income | (415 | ) | (415 | ) | |||
Acquisition costs | 200 | 200 | |||||
Pre-opening costs | 800 | 800 | |||||
Adjusted EBITDA | $ | 223,000 | $ | 233,000 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Net income (loss) | $ | 4,037 | $ | (4,126 | ) | ||
Real estate related depreciation and amortization (1) | 25,123 | 26,834 | |||||
FFO | 29,160 | 22,708 | |||||
Non-cash ground rent | 1,696 | 1,693 | |||||
Non-cash amortization of unfavorable contract liabilities, net | (353 | ) | (354 | ) | |||
Gain on insurance proceeds | (663 | ) | — | ||||
Acquisition costs | 36 | 9 | |||||
Pre-opening costs | 14 | — | |||||
Reversal of previously recognized Allerton income | (291 | ) | (291 | ) | |||
Severance costs | — | 3,065 | |||||
Fair value adjustments to debt instruments | (85 | ) | (65 | ) | |||
Adjusted FFO | $ | 29,514 | $ | 26,765 | |||
Adjusted FFO per share | $ | 0.15 | $ | 0.14 |
(1) | Includes $0.6 million of depreciation expense reported in discontinued operations for the three months ended March 31, 2013. |
Full Year 2014 Guidance | |||||||
Low End | High End | ||||||
Net income | $ | 62,978 | $ | 70,478 | |||
Real estate related depreciation and amortization | 95,500 | 95,000 | |||||
FFO | 158,478 | 165,478 | |||||
Non-cash ground rent | 6,400 | 6,400 | |||||
Non-cash amortization of favorable and unfavorable contracts, net | (1,400 | ) | (1,400 | ) | |||
Gain on insurance proceeds | (663 | ) | (663 | ) | |||
Reversal of previously recognized Allerton income | (415 | ) | (415 | ) | |||
Acquisition costs | 200 | 200 | |||||
Pre-opening costs | 800 | 800 | |||||
Fair value adjustments to debt instruments | (400 | ) | (400 | ) | |||
Adjusted FFO | $ | 163,000 | $ | 170,000 | |||
Adjusted FFO per share | $ | 0.83 | $ | 0.87 |
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | % Change | ||||||||||||||
Revenues: | ||||||||||||||||
Rooms | $ | 128,863 | $ | 118,680 | 8.6 | % | ||||||||||
Food and beverage | 47,594 | 42,365 | 12.3 | % | ||||||||||||
Other | 11,657 | 11,339 | 2.8 | % | ||||||||||||
Total revenues | 188,114 | 172,384 | 9.1 | % | ||||||||||||
Operating Expenses: | ||||||||||||||||
Rooms departmental expenses | $ | 37,560 | $ | 34,498 | 8.9 | % | ||||||||||
Food and beverage departmental expenses | 33,546 | 31,322 | 7.1 | % | ||||||||||||
Other direct departmental | 5,320 | 5,228 | 1.8 | % | ||||||||||||
General and administrative | 15,841 | 14,786 | 7.1 | % | ||||||||||||
Utilities | 7,171 | 6,778 | 5.8 | % | ||||||||||||
Repairs and maintenance | 8,897 | 8,572 | 3.8 | % | ||||||||||||
Sales and marketing | 13,305 | 11,928 | 11.5 | % | ||||||||||||
Franchise fees | 3,308 | 2,847 | 16.2 | % | ||||||||||||
Base management fees | 4,688 | 4,181 | 12.1 | % | ||||||||||||
Incentive management fees | 565 | 467 | 21.0 | % | ||||||||||||
Property taxes | 10,165 | 9,572 | 6.2 | % | ||||||||||||
Ground rent | 3,718 | 3,661 | 1.6 | % | ||||||||||||
Other fixed expenses | 2,812 | 2,501 | 12.4 | % | ||||||||||||
Total hotel operating expenses | $ | 146,896 | $ | 136,341 | 7.7 | % | ||||||||||
Hotel EBITDA | 41,218 | 36,043 | 14.4 | % | ||||||||||||
Non-cash ground rent | 1,589 | 1,584 | 0.3 | % | ||||||||||||
Non-cash amortization of unfavorable contract liabilities | (353 | ) | (354 | ) | (0.3 | )% | ||||||||||
Hotel Adjusted EBITDA | $ | 42,454 | $ | 37,273 | 13.9 | % |
(1) | Pro forma to exclude hotels sold in 2014 and 2013. |
Market Capitalization as of March 31, 2014 | ||||
(in thousands, except per share data) | ||||
Enterprise Value | ||||
Common equity capitalization (at March 31, 2014 closing price of $11.75/share) | $ | 2,306,405 | ||
Consolidated debt | 1,088,259 | |||
Cash and cash equivalents | (111,482) | |||
Total enterprise value | $ | 3,283,182 | ||
Share Reconciliation | ||||
Common shares outstanding | 195,679 | |||
Unvested restricted stock held by management and employees | 534 | |||
Share grants under deferred compensation plan held by directors | 77 | |||
Combined shares outstanding | 196,290 |
Debt Summary as of March 31, 2014 | ||||||||||
(dollars in thousands) | ||||||||||
Property | Interest Rate | Term | Outstanding Principal | Maturity | ||||||
Courtyard Manhattan / Midtown East | 8.810% | Fixed | $ | 41,424 | October 2014 | |||||
Lexington Hotel New York | LIBOR + 3.00 | Variable | 170,368 | March 2015 | ||||||
Los Angeles Airport Marriott | 5.300% | Fixed | 82,600 | July 2015 | ||||||
Renaissance Worthington | 5.400% | Fixed | 53,563 | July 2015 | ||||||
JW Marriott Denver at Cherry Creek | 6.470% | Fixed | 39,507 | July 2015 | ||||||
Frenchman’s Reef Marriott | 5.440% | Fixed | 57,397 | August 2015 | ||||||
Orlando Airport Marriott | 5.680% | Fixed | 56,558 | January 2016 | ||||||
Chicago Marriott Downtown | 5.975% | Fixed | 207,580 | April 2016 | ||||||
Courtyard Manhattan / Fifth Avenue | 6.480% | Fixed | 49,429 | June 2016 | ||||||
Salt Lake City Marriott Downtown | 4.250% | Fixed | 62,525 | November 2020 | ||||||
Hilton Minneapolis | 5.464% | Fixed | 94,499 | May 2021 | ||||||
Westin Washington D.C. City Center | 3.990% | Fixed | 71,971 | January 2023 | ||||||
The Lodge at Sonoma | 3.960% | Fixed | 30,511 | April 2023 | ||||||
Westin San Diego | 3.940% | Fixed | 69,875 | April 2023 | ||||||
Debt premium (1) | 452 | |||||||||
Total mortgage debt | $ | 1,088,259 | ||||||||
Senior unsecured credit facility | LIBOR + 1.90 | Variable | - | January 2017 | ||||||
Total debt | $ | 1,088,259 |
(1) | Non-cash GAAP adjustment recorded upon the assumption of the mortgage loan secured by the JW Marriott Denver Cherry Creek in 2011. |
Operating Statistics – First Quarter | |||||||||||||||||||||||||||||||
ADR | Occupancy | RevPAR | Hotel Adjusted EBITDA Margin | ||||||||||||||||||||||||||||
1Q 2014 | 1Q 2013 | B/(W) | 1Q 2014 | 1Q 2013 | B/(W) | 1Q 2014 | 1Q 2013 | B/(W) | 1Q 2014 | 1Q 2013 | B/(W) | ||||||||||||||||||||
Atlanta Alpharetta Marriott | $ | 171.40 | $ | 146.57 | 16.9 | % | 67.1 | % | 73.0 | % | (5.9 | )% | $ | 115.01 | $ | 106.94 | 7.5 | % | 35.13 | % | 35.25 | % | -12 bps | ||||||||
Bethesda Marriott Suites | $ | 165.22 | $ | 177.66 | (7.0 | )% | 54.9 | % | 48.7 | % | 6.2 | % | $ | 90.66 | $ | 86.58 | 4.7 | % | 17.56 | % | 19.07 | % | -151 bps | ||||||||
Boston Westin | $ | 189.65 | $ | 173.64 | 9.2 | % | 65.0 | % | 63.6 | % | 1.4 | % | $ | 123.19 | $ | 110.40 | 11.6 | % | 12.49 | % | 6.35 | % | 614 bps | ||||||||
Hilton Boston Downtown | $ | 179.94 | $ | 168.98 | 6.5 | % | 82.8 | % | 73.2 | % | 9.6 | % | $ | 148.96 | $ | 123.61 | 20.5 | % | 18.50 | % | 17.18 | % | 132 bps | ||||||||
Hilton Burlington | $ | 118.80 | $ | 122.20 | (2.8 | )% | 64.1 | % | 62.2 | % | 1.9 | % | $ | 76.21 | $ | 76.01 | 0.3 | % | 22.60 | % | 23.04 | % | -44 bps | ||||||||
Renaissance Charleston | $ | 181.31 | $ | 183.37 | (1.1 | )% | 87.6 | % | 81.0 | % | 6.6 | % | $ | 158.78 | $ | 148.55 | 6.9 | % | 29.31 | % | 32.63 | % | -332 bps | ||||||||
Hilton Garden Inn Chelsea | $ | 174.12 | $ | 179.34 | (2.9 | )% | 91.5 | % | 96.1 | % | (4.6 | )% | $ | 159.26 | $ | 172.38 | (7.6 | )% | 27.21 | % | 33.28 | % | -607 bps | ||||||||
Chicago Marriott | $ | 157.63 | $ | 161.90 | (2.6 | )% | 57.9 | % | 62.7 | % | (4.8 | )% | $ | 91.31 | $ | 101.53 | (10.1 | )% | 1.46 | % | 8.74 | % | -728 bps | ||||||||
Chicago Conrad | $ | 163.84 | $ | 165.03 | (0.7 | )% | 71.8 | % | 71.4 | % | 0.4 | % | $ | 117.67 | $ | 117.80 | (0.1 | )% | 4.97 | % | (0.17 | )% | 514 bps | ||||||||
Courtyard Denver Downtown | $ | 173.63 | $ | 152.88 | 13.6 | % | 81.3 | % | 79.7 | % | 1.6 | % | $ | 141.23 | $ | 121.80 | 16.0 | % | 43.00 | % | 37.93 | % | 507 bps | ||||||||
Courtyard Fifth Avenue | $ | 219.61 | $ | 233.46 | (5.9 | )% | 84.8 | % | 64.4 | % | 20.4 | % | $ | 186.13 | $ | 150.38 | 23.8 | % | 4.42 | % | (2.60 | )% | 702 bps | ||||||||
Courtyard Midtown East | $ | 221.21 | $ | 223.41 | (1.0 | )% | 86.5 | % | 74.2 | % | 12.3 | % | $ | 191.30 | $ | 165.72 | 15.4 | % | 18.22 | % | 10.81 | % | 741 bps | ||||||||
Frenchman's Reef | $ | 327.97 | $ | 310.60 | 5.6 | % | 91.3 | % | 90.5 | % | 0.8 | % | $ | 299.47 | $ | 280.98 | 6.6 | % | 35.23 | % | 32.38 | % | 285 bps | ||||||||
JW Marriott Denver Cherry Creek | $ | 235.98 | $ | 226.41 | 4.2 | % | 79.2 | % | 75.8 | % | 3.4 | % | $ | 186.97 | $ | 171.59 | 9.0 | % | 29.29 | % | 25.46 | % | 383 bps | ||||||||
Lexington Hotel New York | $ | 186.43 | $ | 162.94 | 14.4 | % | 80.8 | % | 58.7 | % | 22.1 | % | $ | 150.69 | $ | 95.66 | 57.5 | % | 5.68 | % | (12.91 | )% | 1859 bps | ||||||||
Los Angeles Airport Marriott | $ | 124.63 | $ | 114.01 | 9.3 | % | 93.2 | % | 82.0 | % | 11.2 | % | $ | 116.14 | $ | 93.50 | 24.2 | % | 22.64 | % | 17.86 | % | 478 bps | ||||||||
Hilton Minneapolis | $ | 114.31 | $ | 116.42 | (1.8 | )% | 56.8 | % | 61.6 | % | (4.8 | )% | $ | 64.91 | $ | 71.77 | (9.6 | )% | 3.96 | % | 13.23 | % | -927 bps | ||||||||
Oak Brook Hills Resort | $ | 105.44 | $ | 111.49 | (5.4 | )% | 23.8 | % | 43.9 | % | (20.1 | )% | $ | 25.13 | $ | 48.96 | (48.7 | )% | (71.17 | )% | (13.88 | )% | -5729 bps | ||||||||
Orlando Airport Marriott | $ | 120.93 | $ | 110.48 | 9.5 | % | 90.9 | % | 86.9 | % | 4.0 | % | $ | 109.91 | $ | 95.96 | 14.5 | % | 35.93 | % | 29.19 | % | 674 bps | ||||||||
Hotel Rex | $ | 183.18 | $ | 172.09 | 6.4 | % | 78.3 | % | 77.1 | % | 1.2 | % | $ | 143.39 | $ | 132.61 | 8.1 | % | 23.33 | % | 25.11 | % | -178 bps | ||||||||
Salt Lake City Marriott | $ | 146.86 | $ | 147.41 | (0.4 | )% | 67.2 | % | 67.5 | % | (0.3 | )% | $ | 98.70 | $ | 99.57 | (0.9 | )% | 30.67 | % | 35.30 | % | -463 bps | ||||||||
The Lodge at Sonoma | $ | 208.74 | $ | 196.72 | 6.1 | % | 58.8 | % | 63.1 | % | (4.3 | )% | $ | 122.73 | $ | 124.08 | (1.1 | )% | 6.94 | % | 8.63 | % | -169 bps | ||||||||
Vail Marriott | $ | 376.44 | $ | 346.39 | 8.7 | % | 86.7 | % | 89.3 | % | (2.6 | )% | $ | 326.43 | $ | 309.29 | 5.5 | % | 49.10 | % | 50.06 | % | -96 bps | ||||||||
Westin San Diego | $ | 163.92 | $ | 155.20 | 5.6 | % | 82.0 | % | 84.6 | % | (2.6 | )% | $ | 134.43 | $ | 131.34 | 2.4 | % | 30.53 | % | 31.92 | % | -139 bps | ||||||||
Westin Washington D.C. City Center | $ | 206.03 | $ | 191.02 | 7.9 | % | 54.3 | % | 70.1 | % | (15.8 | )% | $ | 111.81 | $ | 133.95 | (16.5 | )% | 17.61 | % | 28.37 | % | -1076 bps | ||||||||
Renaissance Worthington | $ | 179.48 | $ | 174.11 | 3.1 | % | 72.0 | % | 64.7 | % | 7.3 | % | $ | 129.28 | $ | 112.71 | 14.7 | % | 35.92 | % | 31.34 | % | 458 bps | ||||||||
Total | $ | 179.95 | $ | 171.62 | 4.9 | % | 72.2 | % | 70.3 | % | 1.9 | % | $ | 129.89 | $ | 120.73 | 7.6 | % | 21.60 | % | 20.92 | % | 68 bps | ||||||||
Pro Forma Total (1) | $ | 180.81 | $ | 172.95 | 4.5 | % | 73.9 | % | 71.3 | % | 2.6 | % | $ | 133.66 | $ | 123.32 | 8.4 | % | 22.57 | % | 21.62 | % | 95 bps |
Hotel Adjusted EBITDA Reconciliation | ||||||||||||||||||||
First Quarter 2014 | ||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Non-Cash Adjustments (1) | Hotel Adjusted EBITDA | |||||||||||||||
Atlanta Alpharetta Marriott | $ | 4,583 | $ | 1,207 | $ | 403 | $ | — | $ | — | $ | 1,610 | ||||||||
Bethesda Marriott Suites | $ | 3,150 | $ | (1,360 | ) | $ | 363 | $ | — | $ | 1,550 | $ | 553 | |||||||
Boston Westin | $ | 16,383 | $ | (151 | ) | $ | 2,195 | $ | — | $ | 2 | $ | 2,046 | |||||||
Hilton Boston Downtown | $ | 5,458 | $ | (143 | ) | $ | 1,111 | $ | — | $ | 42 | $ | 1,010 | |||||||
Hilton Burlington | $ | 2,412 | $ | 71 | $ | 451 | $ | — | $ | 23 | $ | 545 | ||||||||
Renaissance Charleston | $ | 2,961 | $ | 502 | $ | 398 | $ | — | $ | (32 | ) | $ | 868 | |||||||
Hilton Garden Inn Chelsea | $ | 2,536 | $ | 199 | $ | 491 | $ | — | $ | — | $ | 690 | ||||||||
Chicago Marriott | $ | 16,457 | $ | (5,650 | ) | $ | 3,115 | $ | 3,172 | $ | (397 | ) | $ | 240 | ||||||
Chicago Conrad | $ | 4,563 | $ | (723 | ) | $ | 950 | $ | — | $ | — | $ | 227 | |||||||
Courtyard Denver Downtown | $ | 2,407 | $ | 765 | $ | 270 | $ | — | $ | — | $ | 1,035 | ||||||||
Courtyard Fifth Avenue | $ | 3,119 | $ | (1,176 | ) | $ | 430 | $ | 832 | $ | 52 | $ | 138 | |||||||
Courtyard Midtown East | $ | 5,669 | $ | (631 | ) | $ | 690 | $ | 974 | $ | — | $ | 1,033 | |||||||
Frenchman's Reef | $ | 22,348 | $ | 5,554 | $ | 1,514 | $ | 805 | $ | — | $ | 7,873 | ||||||||
JW Marriott Denver Cherry Creek | $ | 5,217 | $ | 437 | $ | 514 | $ | 577 | $ | — | $ | 1,528 | ||||||||
Lexington Hotel New York | $ | 10,663 | $ | (4,414 | ) | $ | 3,261 | $ | 1,728 | $ | 31 | $ | 606 | |||||||
Los Angeles Airport Marriott | $ | 16,840 | $ | 1,726 | $ | 976 | $ | 1,111 | $ | — | $ | 3,813 | ||||||||
Minneapolis Hilton | $ | 8,641 | $ | (3,085 | ) | $ | 2,241 | $ | 1,315 | $ | (129 | ) | $ | 342 | ||||||
Oak Brook Hills Resort | $ | 1,970 | $ | (1,893 | ) | $ | 383 | $ | — | $ | 108 | $ | (1,402 | ) | ||||||
Orlando Airport Marriott | $ | 6,960 | $ | 1,066 | $ | 627 | $ | 808 | $ | — | $ | 2,501 | ||||||||
Hotel Rex | $ | 1,423 | $ | 111 | $ | 221 | $ | — | $ | — | $ | 332 | ||||||||
Salt Lake City Marriott | $ | 6,994 | $ | 699 | $ | 760 | $ | 686 | $ | — | $ | 2,145 | ||||||||
The Lodge at Sonoma | $ | 3,804 | $ | (427 | ) | $ | 383 | $ | 308 | $ | — | $ | 264 | |||||||
Vail Marriott | $ | 13,487 | $ | 6,095 | $ | 527 | $ | — | $ | — | $ | 6,622 | ||||||||
Westin San Diego | $ | 7,272 | $ | 389 | $ | 1,088 | $ | 697 | $ | 46 | $ | 2,220 | ||||||||
Westin Washington D.C. City Center | $ | 5,257 | $ | (994 | ) | $ | 1,115 | $ | 758 | $ | 47 | $ | 926 | |||||||
Renaissance Worthington | $ | 9,510 | $ | 2,035 | $ | 645 | $ | 734 | $ | 2 | $ | 3,416 | ||||||||
Total | $ | 190,084 | $ | 209 | $ | 25,122 | $ | 14,505 | $ | 1,345 | $ | 41,052 | ||||||||
Pro Forma Total (2) | $ | 188,114 | $ | 2,102 | $ | 24,739 | $ | 14,505 | $ | 1,237 | $ | 42,454 |
(1) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations, the non-cash amortization of our favorable lease assets, and the non-cash amortization of our unfavorable contract liabilities. |
(2) | Excludes the Oak Brook Hills Resort sold in April 2014. |
Pro Forma Hotel Adjusted EBITDA Reconciliation | ||||||||||||||||||||
First Quarter 2013 | ||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Non-Cash Adjustments (1) | Hotel Adjusted EBITDA | |||||||||||||||
Atlanta Alpharetta Marriott | $ | 4,530 | $ | 1,191 | $ | 406 | $ | — | $ | — | $ | 1,597 | ||||||||
Bethesda Marriott Suites | $ | 3,046 | $ | (1,483 | ) | $ | 507 | $ | — | $ | 1,557 | $ | 581 | |||||||
Boston Westin | $ | 13,886 | $ | (1,239 | ) | $ | 2,119 | $ | — | $ | 2 | $ | 882 | |||||||
Hilton Boston Downtown | $ | 4,564 | $ | (690 | ) | $ | 1,432 | $ | — | $ | 42 | $ | 784 | |||||||
Hilton Burlington | $ | 2,309 | $ | (332 | ) | $ | 841 | $ | — | $ | 23 | $ | 532 | |||||||
Renaissance Charleston | $ | 2,764 | $ | 546 | $ | 388 | $ | — | $ | (32 | ) | $ | 902 | |||||||
Hilton Garden Inn Chelsea | $ | 2,734 | $ | 436 | $ | 474 | $ | — | $ | — | $ | 910 | ||||||||
Chicago Marriott | $ | 17,422 | $ | (4,504 | ) | $ | 3,239 | $ | 3,185 | $ | (397 | ) | $ | 1,523 | ||||||
Chicago Conrad | $ | 4,166 | $ | (919 | ) | $ | 912 | $ | — | $ | — | $ | (7 | ) | ||||||
Courtyard Denver Downtown | $ | 2,112 | $ | 541 | $ | 260 | $ | — | $ | — | $ | 801 | ||||||||
Courtyard Fifth Avenue | $ | 2,535 | $ | (1,279 | ) | $ | 314 | $ | 842 | $ | 57 | $ | (66 | ) | ||||||
Courtyard Midtown East | $ | 4,764 | $ | (1,035 | ) | $ | 577 | $ | 973 | $ | — | $ | 515 | |||||||
Frenchman's Reef | $ | 20,471 | $ | 4,209 | $ | 1,600 | $ | 819 | $ | — | $ | 6,628 | ||||||||
JW Marriott Denver Cherry Creek | $ | 4,843 | $ | 159 | $ | 479 | $ | 595 | $ | — | $ | 1,233 | ||||||||
Lexington Hotel New York | $ | 6,676 | $ | (5,737 | ) | $ | 3,162 | $ | 1,680 | $ | 33 | $ | (862 | ) | ||||||
Los Angeles Airport Marriott | $ | 14,140 | $ | 68 | $ | 1,348 | $ | 1,110 | $ | — | $ | 2,526 | ||||||||
Minneapolis Hilton | $ | 9,498 | $ | (1,871 | ) | $ | 1,936 | $ | 1,342 | $ | (150 | ) | $ | 1,257 | ||||||
Oak Brook Hills Resort | $ | 3,479 | $ | (854 | ) | $ | 262 | $ | — | $ | 109 | $ | (483 | ) | ||||||
Orlando Airport Marriott | $ | 6,269 | $ | 286 | $ | 725 | $ | 819 | $ | — | $ | 1,830 | ||||||||
Hotel Rex | $ | 1,334 | $ | 103 | $ | 232 | $ | — | $ | — | $ | 335 | ||||||||
Salt Lake City Marriott | $ | 6,708 | $ | 1,236 | $ | 736 | $ | 396 | $ | — | $ | 2,368 | ||||||||
The Lodge at Sonoma | $ | 3,836 | $ | (71 | ) | $ | 364 | $ | 38 | $ | — | $ | 331 | |||||||
Vail Marriott | $ | 12,278 | $ | 5,550 | $ | 596 | $ | — | $ | — | $ | 6,146 | ||||||||
Westin San Diego | $ | 7,315 | $ | 1,213 | $ | 1,053 | $ | 23 | $ | 46 | $ | 2,335 | ||||||||
Westin Washington D.C. City Center | $ | 6,144 | $ | (669 | ) | $ | 1,587 | $ | 778 | $ | 47 | $ | 1,743 | |||||||
Renaissance Worthington | $ | 8,040 | $ | 1,068 | $ | 704 | $ | 746 | $ | 2 | $ | 2,520 | ||||||||
Total | $ | 175,863 | $ | (4,077 | ) | $ | 26,253 | $ | 13,346 | $ | 1,339 | $ | 36,790 | |||||||
Pro Forma Total (2) | $ | 172,384 | $ | (3,223 | ) | $ | 25,991 | $ | 13,346 | $ | 1,230 | $ | 37,273 |
(1) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations, the non-cash amortization of our favorable lease assets and the non-cash amortization of our unfavorable contract liabilities. |
(2) | Excludes the Oak Brook Hills Resort sold in April 2014. |