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 November 9, 2016. |
DIAMONDROCK HOSPITALITY COMPANY | ||||||
Date: November 9, 2016 | By: | /s/ William J. Tennis | ||||
William J. Tennis | ||||||
Executive Vice President, General Counsel and Corporate Secretary |
• | Net Income: Net income was $29.9 million and earnings per diluted share was $0.15. |
• | Comparable RevPAR: RevPAR was $187.91, a 0.8% increase from the comparable period of 2015. |
• | Comparable Hotel Adjusted EBITDA Margin: Hotel Adjusted EBITDA margin was 32.12%, an increase of 23 basis points from the comparable period of 2015. |
• | Adjusted EBITDA: Adjusted EBITDA was $65.6 million, a decrease of $3.7 million or 5.3% from 2015. Adjusted EBITDA for the comparable period of 2015 included $6.8 million of Adjusted EBITDA from the three non-core hotels that were sold in 2016. |
• | Adjusted FFO: Adjusted FFO was $52.1 million and Adjusted FFO per diluted share was $0.26. |
• | Hotel Disposition: As previously announced, the Company sold the 169-room Hilton Garden Inn Chelsea on July 7, 2016 for $65.0 million. |
• | Share Repurchases: The Company repurchased 92,600 shares at an average price of $8.90 per share during the third quarter. Subsequent to September 30, 2016, the Company repurchased an additional 634,537 shares at an average price of $8.92 per share. |
• | Dividends: The Company declared a dividend of $0.125 per share during the third quarter, which was paid on October 12, 2016. |
Third Quarter | ||||||||||
2016 | 2015 | Change | ||||||||
Comparable Operating Results (1) | ||||||||||
ADR | $223.44 | $223.34 | 0.0 | % | ||||||
Occupancy | 84.1 | % | 83.5 | % | 0.6 percentage points | |||||
RevPAR | $187.91 | $186.47 | 0.8 | % | ||||||
Revenues | $220.1 million | $214.1 million | 2.8 | % | ||||||
Hotel Adjusted EBITDA Margin | 32.12 | % | 31.89 | % | 23 basis points | |||||
Actual Operating Results | ||||||||||
Revenues | $220.2 million | $238.5 million | -7.7 | % | ||||||
Net income | $29.9 million | $24.5 million | $5.4 million | |||||||
Earnings per diluted share | $0.15 | $0.12 | $0.03 | |||||||
Adjusted EBITDA | $65.6 million | $69.3 million | -$3.7 million | |||||||
Adjusted FFO | $52.1 million | $52.3 million | -$0.2 million | |||||||
Adjusted FFO per diluted share | $0.26 | $0.26 | $0.00 |
Year to Date | ||||||||||
2016 | 2015 | Change | ||||||||
Comparable Operating Results (1)(2) | ||||||||||
ADR | $223.98 | $223.05 | 0.4 | % | ||||||
Occupancy | 80.9 | % | 81.4 | % | -0.5 percentage points | |||||
RevPAR | $181.30 | $181.66 | -0.2 | % | ||||||
Revenues | $644.6 million | $639.1 million | 0.9 | % | ||||||
Hotel Adjusted EBITDA Margin | 31.96 | % | 31.72 | % | 24 basis points | |||||
Actual Operating Results | ||||||||||
Revenues | $689.9 million | $697.2 million | -1.1 | % | ||||||
Net income | $90.9 million | $59.9 million | $31.0 million | |||||||
Earnings per diluted share | $0.45 | $0.30 | $0.15 | |||||||
Adjusted EBITDA | $200.1 million | $198.9 million | $1.2 million | |||||||
Adjusted FFO | $158.0 million | $151.5 million | $6.5 million | |||||||
Adjusted FFO per diluted share | $0.78 | $0.75 | $0.03 |
• | The Gwen, a Luxury Collection Hotel: The Company rebranded the Conrad Chicago to Marriott's Luxury Collection brand on September 1, 2015. The renovation work associated with the brand conversion will be completed in two phases. The first phase, consisting of the lobby, rooftop bar and other public spaces, was completed in May 2016. The second phase of the renovation, consisting of the guest rooms, is expected to be completed during the seasonally slow winter season beginning in late 2016. |
• | Chicago Marriott Downtown: The second and largest phase of the multi-year renovation was completed early in the second quarter 2016. This phase included the upgrade renovation of approximately 460 guest rooms as well as construction of a new, state-of-the-art fitness center. The remaining guest rooms will be renovated during the seasonally slow winter months over the next two years. |
• | The Lodge at Sonoma: The Company expects to renovate the guest rooms at the hotel during the seasonally slow period during late 2016 through early 2017. |
• | Charleston Renaissance: The Company expects to renovate the guest rooms at the hotel during the seasonally slow period from the end of the year through early 2017. |
• | Worthington Renaissance: The Company has commenced the guest room renovation at the hotel and expects to complete the project at the end of 2016. |
Previous Guidance | Current Guidance | ||||
Metric | Low End | High End | Low End | High End | |
Comparable RevPAR Growth | 0 percent | 1 percent | -0.75 percent | 0 percent | |
Adjusted EBITDA | $250 million | $263 million | $250 million | $263 million | |
Adjusted FFO | $199 million | $209 million | $199 million | $209 million | |
Adjusted FFO per share (based on 201.5 million shares) | $0.99 per share | $1.04 per share | $0.99 per share | $1.04 per share |
Quarter 1, 2015 | Quarter 2, 2015 | Quarter 3, 2015 | Quarter 4, 2015 | Full Year 2015 | |||||||||||
ADR | $ | 211.89 | $ | 232.75 | $ | 223.34 | $ | 227.67 | $ | 224.17 | |||||
Occupancy | 76.5 | % | 84.3 | % | 83.5 | % | 77.1 | % | 80.3 | % | |||||
RevPAR | $ | 162.02 | $ | 196.15 | $ | 186.47 | $ | 175.45 | $ | 180.09 | |||||
Revenues (in thousands) | $ | 195,263 | $ | 229,647 | $ | 214,144 | $ | 208,741 | $ | 847,795 | |||||
Hotel Adjusted EBITDA (in thousands) | $ | 52,351 | $ | 82,072 | $ | 68,300 | $ | 65,624 | $ | 268,347 | |||||
% of full Year | 19.5 | % | 30.6 | % | 25.5 | % | 24.4 | % | 100.0 | % | |||||
Hotel Adjusted EBITDA Margin | 26.81 | % | 35.74 | % | 31.89 | % | 31.44 | % | 31.65 | % | |||||
Available Rooms | 844,784 | 856,751 | 867,168 | 866,732 | 3,435,435 |
Quarter 1, 2016 | Quarter 2, 2016 | Quarter 3, 2016 | YTD 2016 | ||||||||||
ADR | $ | 216.03 | $ | 231.31 | $ | 223.44 | $ | 223.98 | |||||
Occupancy | 73.2 | % | 85.5 | % | 84.1 | % | 80.9 | % | |||||
RevPAR | $ | 158.22 | $ | 197.69 | $ | 187.91 | $ | 181.30 | |||||
Revenues (in thousands) | $ | 192,034 | $ | 232,500 | $ | 220,087 | $ | 644,621 | |||||
Hotel Adjusted EBITDA (in thousands) | $ | 51,968 | $ | 83,362 | $ | 70,686 | $ | 206,016 | |||||
Hotel Adjusted EBITDA Margin | 27.06 | % | 35.85 | % | 32.12 | % | 31.96 | % | |||||
Available Rooms | 857,311 | 858,039 | 867,468 | 2,582,818 |
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Property and equipment, net | $ | 2,642,034 | $ | 2,882,176 | |||
Restricted cash | 47,661 | 59,339 | |||||
Due from hotel managers | 87,019 | 86,698 | |||||
Favorable lease assets, net | 18,076 | 23,955 | |||||
Prepaid and other assets (1) | 47,693 | 46,758 | |||||
Cash and cash equivalents | 235,965 | 213,584 | |||||
Total assets | $ | 3,078,448 | $ | 3,312,510 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Mortgage debt, net of unamortized debt issuance costs | $ | 823,626 | $ | 1,169,749 | |||
Term loan, net of unamortized debt issuance costs | 99,336 | — | |||||
Senior unsecured credit facility | — | — | |||||
Total debt | 922,962 | 1,169,749 | |||||
Deferred income related to key money, net | 20,776 | 23,568 | |||||
Unfavorable contract liabilities, net | 73,123 | 74,657 | |||||
Deferred ground rent | 79,027 | 70,153 | |||||
Due to hotel managers | 55,350 | 65,350 | |||||
Dividends declared and unpaid | 23,586 | 25,599 | |||||
Accounts payable and accrued expenses (2) | 59,247 | 58,829 | |||||
Total other liabilities | 311,109 | 318,156 | |||||
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; 200,796,110 and 200,741,777 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 2,008 | 2,007 | |||||
Additional paid-in capital | 2,059,638 | 2,056,878 | |||||
Accumulated deficit | (217,269 | ) | (234,280 | ) | |||
Total stockholders’ equity | 1,844,377 | 1,824,605 | |||||
Total liabilities and stockholders’ equity | $ | 3,078,448 | $ | 3,312,510 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Rooms | $ | 163,158 | $ | 178,529 | $ | 498,714 | $ | 504,729 | |||||||
Food and beverage | 44,069 | 47,256 | 151,850 | 155,662 | |||||||||||
Other | 13,012 | 12,717 | 39,373 | 36,801 | |||||||||||
Total revenues | 220,239 | 238,502 | 689,937 | 697,192 | |||||||||||
Operating Expenses: | |||||||||||||||
Rooms | 39,766 | 42,415 | 121,737 | 122,872 | |||||||||||
Food and beverage | 29,103 | 32,143 | 97,718 | 103,044 | |||||||||||
Management fees | 7,655 | 7,562 | 23,036 | 22,665 | |||||||||||
Other hotel expenses | 74,123 | 83,358 | 232,576 | 237,410 | |||||||||||
Depreciation and amortization | 23,605 | 25,107 | 73,731 | 75,018 | |||||||||||
Hotel acquisition costs | — | 453 | — | 945 | |||||||||||
Corporate expenses | 4,684 | 6,048 | 17,420 | 17,790 | |||||||||||
Impairment losses | — | — | — | 10,461 | |||||||||||
Total operating expenses, net | 178,936 | 197,086 | 566,218 | 590,205 | |||||||||||
Operating profit | 41,303 | 41,416 | 123,719 | 106,987 | |||||||||||
Interest and other income, net | (333 | ) | (126 | ) | (451 | ) | (480 | ) | |||||||
Interest expense | 9,504 | 12,907 | 32,242 | 38,963 | |||||||||||
Gain on sales of hotel properties | (2,198 | ) | — | (10,319 | ) | — | |||||||||
Total other expenses, net | 6,973 | 12,781 | 21,472 | 38,483 | |||||||||||
Income before income taxes | 34,330 | 28,635 | 102,247 | 68,504 | |||||||||||
Income tax expense | (4,393 | ) | (4,171 | ) | (11,357 | ) | (8,576 | ) | |||||||
Net income | $ | 29,937 | $ | 24,464 | $ | 90,890 | $ | 59,928 | |||||||
Earnings per share: | |||||||||||||||
Basic earnings per share | $ | 0.15 | $ | 0.12 | $ | 0.45 | $ | 0.30 | |||||||
Diluted earnings per share | $ | 0.15 | $ | 0.12 | $ | 0.45 | $ | 0.30 | |||||||
Weighted-average number of common shares outstanding: | |||||||||||||||
Basic | 201,297,846 | 200,852,072 | 201,188,563 | 200,776,641 | |||||||||||
Diluted | 201,739,604 | 201,167,659 | 201,572,206 | 201,124,091 |
• | 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. We exclude these non-cash items because they do not reflect the actual rent amounts due to the respective lessors in the current period and they are of lesser significance in evaluating our actual performance for that period. |
• | Non-Cash Amortization of Favorable and Unfavorable Contracts: We exclude the non-cash amortization of favorable and unfavorable contracts recorded in conjunction with certain acquisitions because the non-cash amortization is based on historical cost accounting and is of lesser significance in evaluating our actual performance for that period. |
• | 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 adjustments, which include the accounting impact from prior periods, because they do not reflect the Company’s actual underlying performance for the current 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 these gains or losses result from transaction activity related to the Company’s capital structure that we believe are not indicative of the ongoing operating performance of the Company or our hotels. |
• | Hotel Acquisition Costs: We exclude hotel acquisition costs expensed during the period because we believe these transaction costs are not reflective of the ongoing performance of the Company or our hotels. |
• | Severance Costs: We exclude corporate severance costs incurred with the termination of corporate-level employees and severance costs incurred at our hotels related to lease terminations because we believe these costs do not reflect the ongoing performance of the Company or our hotels. |
• | Hotel Manager Transition Costs: We exclude the transition costs associated with a change in hotel manager because we believe these costs do not reflect the ongoing performance of the Company or our hotels. During the nine months ended September 30, 2015, we excluded the transition costs associated with the change of hotel managers in connection with the acquisitions of the Westin Fort Lauderdale and the Shorebreak Hotel. |
• | Other Items: From time to time we incur costs or realize gains that we consider outside the ordinary course of business and that we do not believe reflect the ongoing performance of the Company or our hotels. Such items may include, but are not limited to the following: pre-opening costs incurred with newly developed hotels; lease preparation costs incurred to prepare vacant space for marketing; management or franchise contract termination fees; gains or losses from legal settlements; bargain purchase gains incurred upon acquisition of a hotel; and gains from insurance proceeds. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 29,937 | $ | 24,464 | $ | 90,890 | $ | 59,928 | |||||||
Interest expense | 9,504 | 12,907 | 32,242 | 38,963 | |||||||||||
Income tax expense | 4,393 | 4,171 | 11,357 | 8,576 | |||||||||||
Real estate related depreciation and amortization | 23,605 | 25,107 | 73,731 | 75,018 | |||||||||||
EBITDA | 67,439 | 66,649 | 208,220 | 182,485 | |||||||||||
Non-cash ground rent | 1,568 | 1,467 | 4,230 | 4,454 | |||||||||||
Non-cash amortization of favorable and unfavorable contract liabilities, net | (478 | ) | (407 | ) | (1,434 | ) | (1,134 | ) | |||||||
Impairment losses | — | — | — | 10,461 | |||||||||||
Gain on sale of hotel properties | (2,198 | ) | — | (10,319 | ) | — | |||||||||
Severance costs (1) | (682 | ) | 428 | (563 | ) | 428 | |||||||||
Hotel acquisition costs | — | 453 | — | 945 | |||||||||||
Hotel manager transition costs (2) | — | 754 | — | 1,287 | |||||||||||
Adjusted EBITDA | $ | 65,649 | $ | 69,344 | $ | 200,134 | $ | 198,926 |
(1) | Classified as corporate expenses on the consolidated statements of operations. During the three months ended September 30, 2016, we reversed $0.7 million of previously recognized compensation expense for forfeited equity awards related to the resignation of our former Executive Vice President and Chief Operating Officer. |
(2) | Classified as other hotel expenses on the consolidated statements of operations. |
Full Year 2016 Guidance | |||||||
Low End | High End | ||||||
Net income | $ | 107,450 | $ | 118,450 | |||
Interest expense | 43,000 | 42,500 | |||||
Income tax expense | 9,432 | 12,932 | |||||
Real estate related depreciation and amortization | 98,000 | 97,000 | |||||
EBITDA | 257,882 | 270,882 | |||||
Non-cash ground rent | 4,800 | 4,800 | |||||
Non-cash amortization of favorable and unfavorable contracts, net | (1,800 | ) | (1,800 | ) | |||
Gain on sale of hotel properties | (10,319 | ) | (10,319 | ) | |||
Severance costs | (563 | ) | (563 | ) | |||
Adjusted EBITDA | $ | 250,000 | $ | 263,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 29,937 | $ | 24,464 | $ | 90,890 | $ | 59,928 | |||||||
Interest expense | 9,504 | 12,907 | 32,242 | 38,963 | |||||||||||
Income tax expense | 4,393 | 4,171 | 11,357 | 8,576 | |||||||||||
Real estate related depreciation and amortization | 23,605 | 25,107 | 73,731 | 75,018 | |||||||||||
EBITDA | 67,439 | 66,649 | 208,220 | 182,485 | |||||||||||
Corporate expenses | 4,684 | 6,048 | 17,420 | 17,790 | |||||||||||
Interest and other income, net | (333 | ) | (126 | ) | (451 | ) | (480 | ) | |||||||
Hotel acquisition costs | — | 453 | — | 945 | |||||||||||
Gain on sale of hotel properties | (2,198 | ) | — | (10,319 | ) | — | |||||||||
Impairment losses | — | — | — | 10,461 | |||||||||||
Hotel EBITDA | 69,592 | 73,024 | 214,870 | 211,201 | |||||||||||
Non-cash ground rent | 1,568 | 1,467 | 4,230 | 4,454 | |||||||||||
Non-cash amortization of favorable and unfavorable contract liabilities, net | (478 | ) | (407 | ) | (1,434 | ) | (1,134 | ) | |||||||
Hotel manager transition costs | — | 754 | — | 1,287 | |||||||||||
Hotel level severance costs | — | 428 | — | 428 | |||||||||||
Hotel Adjusted EBITDA | $ | 70,682 | $ | 75,266 | $ | 217,666 | $ | 216,236 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 29,937 | $ | 24,464 | $ | 90,890 | $ | 59,928 | |||||||
Real estate related depreciation and amortization | 23,605 | 25,107 | 73,731 | 75,018 | |||||||||||
Gain on sales of hotel properties, net of income tax | (1,877 | ) | — | (8,887 | ) | — | |||||||||
Impairment losses | — | — | — | 10,461 | |||||||||||
FFO | 51,665 | 49,571 | 155,734 | 145,407 | |||||||||||
Non-cash ground rent | 1,568 | 1,467 | 4,230 | 4,454 | |||||||||||
Non-cash amortization of favorable and unfavorable contract liabilities, net | (478 | ) | (407 | ) | (1,434 | ) | (1,134 | ) | |||||||
Hotel acquisition costs | — | 453 | — | 945 | |||||||||||
Hotel manager transition costs (1) | — | 754 | — | 1,287 | |||||||||||
Severance costs (2) | (682 | ) | 428 | (563 | ) | 428 | |||||||||
Fair value adjustments to debt instruments | — | 49 | 19 | 115 | |||||||||||
Adjusted FFO | $ | 52,073 | $ | 52,315 | $ | 157,986 | $ | 151,502 | |||||||
Adjusted FFO per diluted share | $ | 0.26 | $ | 0.26 | $ | 0.78 | $ | 0.75 |
(1) | Classified as corporate expenses on the consolidated statements of operations. |
(2) | Classified as other hotel expenses on the consolidated statements of operations. During the three months ended September 30, 2016, we reversed $0.7 million of previously recognized compensation expense for forfeited equity award related to the resignation of our former Executive Vice President and Chief Operating Officer. |
Full Year 2016 Guidance | |||||||
Low End | High End | ||||||
Net income | $ | 107,450 | $ | 118,450 | |||
Real estate related depreciation and amortization | 98,000 | 97,000 | |||||
Gain on sales of hotel properties, net of income tax | (8,887 | ) | (8,887 | ) | |||
FFO | 196,563 | 206,563 | |||||
Non-cash ground rent | 4,800 | 4,800 | |||||
Non-cash amortization of favorable and unfavorable contract liabilities, net | (1,800 | ) | (1,800 | ) | |||
Severance costs | (563 | ) | (563 | ) | |||
Adjusted FFO | $ | 199,000 | $ | 209,000 | |||
Adjusted FFO per diluted share | $ | 0.99 | $ | 1.04 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | $ | 220,239 | $ | 238,502 | $ | 689,937 | $ | 697,192 | |||||||
Hotel revenues from prior ownership (1) | — | — | — | 11,537 | |||||||||||
Hotel revenues from sold hotels (2) | (152 | ) | (24,358 | ) | (45,316 | ) | (69,675 | ) | |||||||
Comparable Revenues | $ | 220,087 | $ | 214,144 | $ | 644,621 | $ | 639,054 | |||||||
Hotel Adjusted EBITDA | $ | 70,682 | $ | 75,266 | $ | 217,666 | $ | 216,236 | |||||||
Hotel Adjusted EBITDA from prior ownership (1) | — | — | — | 4,779 | |||||||||||
Hotel Adjusted EBITDA from sold hotels (2) | 4 | (6,966 | ) | (11,650 | ) | (18,292 | ) | ||||||||
Comparable Hotel Adjusted EBITDA | $ | 70,686 | $ | 68,300 | $ | 206,016 | $ | 202,723 | |||||||
Hotel Adjusted EBITDA Margin | 32.09 | % | 31.56 | % | 31.55 | % | 31.02 | % | |||||||
Comparable Hotel Adjusted EBITDA Margin | 32.12 | % | 31.89 | % | 31.96 | % | 31.72 | % |
(1) | Amounts represent the pre-acquisition operating results of the Shorebreak Hotel for the period from January 1, 2015 to February 5, 2015 and the Sheraton Suites Key West for the period from January 1, 2015 to June 29, 2015. The pre-acquisition operating results were obtained from the respective sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the respective sellers. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors. |
(2) | Amounts represent the operating results of the Orlando Airport Marriott, Minneapolis Hilton and Hilton Garden Inn Chelsea. |
As Reported | Adjustments for Acquisitions/Dispositions | Comparable | |||||||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | 2016 | 2015 | % Change | ||||||||||||||||||||||
Rooms departmental expenses | $ | 39,766 | $ | 42,415 | (6.2 | )% | $ | (54 | ) | $ | (3,950 | ) | $ | 39,712 | $ | 38,465 | 3.2 | % | |||||||||||
Food and beverage departmental expenses | 29,103 | 32,143 | (9.5 | )% | (12 | ) | (4,101 | ) | 29,091 | 28,042 | 3.7 | % | |||||||||||||||||
Other direct departmental | 3,022 | 4,374 | (30.9 | )% | — | (221 | ) | 3,022 | 4,153 | (27.2 | )% | ||||||||||||||||||
General and administrative | 17,742 | 18,799 | (5.6 | )% | (28 | ) | (2,016 | ) | 17,714 | 16,783 | 5.5 | % | |||||||||||||||||
Utilities | 6,740 | 7,178 | (6.1 | )% | (6 | ) | (695 | ) | 6,734 | 6,483 | 3.9 | % | |||||||||||||||||
Repairs and maintenance | 8,578 | 9,406 | (8.8 | )% | (5 | ) | (899 | ) | 8,573 | 8,507 | 0.8 | % | |||||||||||||||||
Sales and marketing | 14,765 | 16,340 | (9.6 | )% | (7 | ) | (2,092 | ) | 14,758 | 14,248 | 3.6 | % | |||||||||||||||||
Franchise fees | 5,483 | 5,939 | (7.7 | )% | (14 | ) | (344 | ) | 5,469 | 5,595 | (2.3 | )% | |||||||||||||||||
Base management fees | 5,393 | 5,909 | (8.7 | )% | (4 | ) | (665 | ) | 5,389 | 5,244 | 2.8 | % | |||||||||||||||||
Incentive management fees | 2,262 | 1,653 | 36.8 | % | — | — | 2,262 | 1,653 | 36.8 | % | |||||||||||||||||||
Property taxes | 12,302 | 13,463 | (8.6 | )% | (26 | ) | (557 | ) | 12,276 | 12,906 | (4.9 | )% | |||||||||||||||||
Ground rent | 2,596 | 3,797 | (31.6 | )% | — | (1,475 | ) | 2,596 | 2,322 | 11.8 | % | ||||||||||||||||||
Hotel manager transition costs | — | 754 | (100.0 | )% | — | — | — | 754 | (100.0 | )% | |||||||||||||||||||
Other fixed expenses | 2,895 | 3,308 | (12.5 | )% | — | (176 | ) | 2,895 | 3,132 | (7.6 | )% | ||||||||||||||||||
Total hotel operating expenses | $ | 150,647 | $ | 165,478 | (9.0 | )% | $ | (156 | ) | $ | (17,191 | ) | $150,491 | $ | 148,287 | 1.5 | % |
As Reported | Adjustments for Acquisitions/Dispositions | Comparable | |||||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | 2016 | 2015 | % Change | ||||||||||||||||||||||
Rooms departmental expenses | $ | 121,737 | $ | 122,872 | (0.9 | )% | $ | (7,455 | ) | $ | (9,636 | ) | $ | 114,282 | $ | 113,236 | 0.9 | % | |||||||||||
Food and beverage departmental expenses | 97,718 | 103,044 | (5.2 | )% | (8,251 | ) | (11,330 | ) | 89,467 | 91,714 | (2.5 | )% | |||||||||||||||||
Other direct departmental | 9,177 | 12,946 | (29.1 | )% | (116 | ) | (449 | ) | 9,061 | 12,497 | (27.5 | )% | |||||||||||||||||
General and administrative | 58,036 | 54,886 | 5.7 | % | (4,199 | ) | (5,133 | ) | 53,837 | 49,753 | 8.2 | % | |||||||||||||||||
Utilities | 20,035 | 20,889 | (4.1 | )% | (1,276 | ) | (1,606 | ) | 18,759 | 19,283 | (2.7 | )% | |||||||||||||||||
Repairs and maintenance | 27,069 | 27,397 | (1.2 | )% | (1,724 | ) | (2,196 | ) | 25,345 | 25,201 | 0.6 | % | |||||||||||||||||
Sales and marketing | 47,381 | 48,323 | (1.9 | )% | (3,790 | ) | (5,760 | ) | 43,591 | 42,563 | 2.4 | % | |||||||||||||||||
Franchise fees | 16,520 | 15,916 | 3.8 | % | (587 | ) | (27 | ) | 15,933 | 15,889 | 0.3 | % | |||||||||||||||||
Base management fees | 17,005 | 17,308 | (1.8 | )% | (1,274 | ) | (1,578 | ) | 15,731 | 15,730 | — | % | |||||||||||||||||
Incentive management fees | 6,031 | 5,357 | 12.6 | % | — | — | 6,031 | 5,357 | 12.6 | % | |||||||||||||||||||
Property taxes | 35,212 | 35,286 | (0.2 | )% | (1,169 | ) | (1,362 | ) | 34,043 | 33,924 | 0.4 | % | |||||||||||||||||
Ground rent | 10,121 | 11,363 | (10.9 | )% | (2,901 | ) | (4,413 | ) | 7,220 | 6,950 | 3.9 | % | |||||||||||||||||
Hotel manager transition costs | — | 1,287 | (100.0 | )% | — | — | — | 1,287 | (100.0 | )% | |||||||||||||||||||
Other fixed expenses | 9,025 | 9,117 | (1.0 | )% | (443 | ) | (536 | ) | 8,582 | 8,581 | — | % | |||||||||||||||||
Total hotel operating expenses | $ | 475,067 | $ | 485,991 | (2.2 | )% | $ | (33,185 | ) | $ | (44,026 | ) | $ | 441,882 | $ | 441,965 | — | % |
Market Capitalization as of September 30, 2016 | ||||
(in thousands) | ||||
Enterprise Value | ||||
Common equity capitalization (at September 30, 2016 closing price of $9.10/share) | $ | 1,836,097 | ||
Consolidated debt | 922,962 | |||
Cash and cash equivalents | (235,965) | |||
Total enterprise value | $ | 2,523,094 | ||
Share Reconciliation | ||||
Common shares outstanding | 200,796 | |||
Unvested restricted stock held by management and employees | 563 | |||
Share grants under deferred compensation plan | 410 | |||
Combined shares outstanding | 201,769 |
Debt Summary as of September 30, 2016 | ||||||||||
(dollars in thousands) | ||||||||||
Property | Interest Rate | Term | Outstanding Principal | Maturity | ||||||
Marriott Salt Lake City Downtown | 4.25% | Fixed | $ | 58,719 | November 2020 | |||||
Westin Washington D.C. City Center | 3.99% | Fixed | 66,623 | January 2023 | ||||||
The Lodge at Sonoma, a Renaissance Resort & Spa | 3.96% | Fixed | 29,044 | April 2023 | ||||||
Westin San Diego | 3.94% | Fixed | 67,341 | April 2023 | ||||||
Courtyard Manhattan / Midtown East | 4.40% | Fixed | 85,790 | August 2024 | ||||||
Renaissance Worthington | 3.66% | Fixed | 85,000 | May 2025 | ||||||
JW Marriott Denver at Cherry Creek | 4.33% | Fixed | 64,839 | July 2025 | ||||||
Westin Boston Waterfront Hotel | 4.36% | Fixed | 202,309 | November 2025 | ||||||
Lexington Hotel New York | LIBOR + 2.25(1) | Variable | 170,368 | October 2017 (2) | ||||||
Debt issuance costs, net | (6,407 | ) | ||||||||
Total mortgage debt, net of unamortized debt issuance costs | $ | 823,626 | ||||||||
Senior unsecured term loan | LIBOR + 1.45(3) | Variable | 100,000 | May 2021 | ||||||
Debt issuance costs, net | (664 | ) | ||||||||
Senior unsecured term loan, net of unamortized debt issuance costs | $ | 99,336 | ||||||||
Senior unsecured credit facility | LIBOR + 1.50 | Variable | — | May 2020 (4) | ||||||
Total debt, net of unamortized debt issuance costs | $ | 922,962 | ||||||||
Weighted-average interest rate of fixed rate debt | 4.22% | |||||||||
Total weighted-average interest rate | 3.72% |
(1) | The interest rate as of September 30, 2016 was 2.77%. |
(2) | May be extended for two additional one-year terms subject to the satisfaction of certain conditions, including a debt yield based on trailing 12-month hotel cash flows equal to or greater than 13% at the time the first extension option is exercised, and the payment of an extension fee. The debt yield as of September 30, 2016 was approximately 5.7%. |
(3) | The interest rate as of September 30, 2016 was 1.97%. |
(4) | May be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. |
Operating Statistics – Third Quarter | |||||||||||||||||||||||||||||||
ADR | Occupancy | RevPAR | Hotel Adjusted EBITDA Margin | ||||||||||||||||||||||||||||
3Q 2016 | 3Q 2015 | B/(W) | 3Q 2016 | 3Q 2015 | B/(W) | 3Q 2016 | 3Q 2015 | B/(W) | 3Q 2016 | 3Q 2015 | B/(W) | ||||||||||||||||||||
Atlanta Alpharetta Marriott | $ | 168.83 | $ | 162.26 | 4.0 | % | 74.6 | % | 78.4 | % | (3.8 | )% | $ | 125.87 | $ | 127.24 | (1.1 | )% | 36.03 | % | 38.98 | % | -295 bps | ||||||||
Bethesda Marriott Suites | $ | 164.31 | $ | 153.53 | 7.0 | % | 69.1 | % | 67.2 | % | 1.9 | % | $ | 113.56 | $ | 103.14 | 10.1 | % | 23.62 | % | 19.89 | % | 373 bps | ||||||||
Boston Westin | $ | 252.89 | $ | 248.93 | 1.6 | % | 87.5 | % | 87.7 | % | (0.2 | )% | $ | 221.19 | $ | 218.41 | 1.3 | % | 32.06 | % | 34.24 | % | -218 bps | ||||||||
Hilton Boston Downtown | $ | 319.55 | $ | 312.36 | 2.3 | % | 92.6 | % | 95.4 | % | (2.8 | )% | $ | 295.76 | $ | 298.02 | (0.8 | )% | 45.15 | % | 45.54 | % | -39 bps | ||||||||
Hilton Burlington | $ | 221.77 | $ | 212.95 | 4.1 | % | 91.0 | % | 88.1 | % | 2.9 | % | $ | 201.88 | $ | 187.53 | 7.7 | % | 49.40 | % | 49.30 | % | 10 bps | ||||||||
Renaissance Charleston | $ | 209.97 | $ | 203.53 | 3.2 | % | 92.3 | % | 89.2 | % | 3.1 | % | $ | 193.72 | $ | 181.55 | 6.7 | % | 37.14 | % | 33.89 | % | 325 bps | ||||||||
Hilton Garden Inn Chelsea (1) | $ | 149.01 | $ | 227.32 | (34.4 | )% | 99.8 | % | 97.9 | % | 1.9 | % | $ | 148.72 | $ | 222.46 | (33.1 | )% | (2.63 | )% | 40.50 | % | -4313 bps | ||||||||
Chicago Marriott | $ | 223.48 | $ | 227.50 | (1.8 | )% | 84.5 | % | 84.2 | % | 0.3 | % | $ | 188.75 | $ | 191.66 | (1.5 | )% | 31.58 | % | 28.68 | % | 290 bps | ||||||||
Chicago Gwen | $ | 222.73 | $ | 233.92 | (4.8 | )% | 88.9 | % | 76.9 | % | 12.0 | % | $ | 197.93 | $ | 179.79 | 10.1 | % | 38.04 | % | 30.92 | % | 712 bps | ||||||||
Courtyard Denver Downtown | $ | 211.53 | $ | 215.61 | (1.9 | )% | 88.4 | % | 84.6 | % | 3.8 | % | $ | 187.03 | $ | 182.34 | 2.6 | % | 52.69 | % | 50.08 | % | 261 bps | ||||||||
Courtyard Fifth Avenue | $ | 266.76 | $ | 278.40 | (4.2 | )% | 93.7 | % | 90.7 | % | 3.0 | % | $ | 250.09 | $ | 252.47 | (0.9 | )% | 24.22 | % | 25.57 | % | -135 bps | ||||||||
Courtyard Midtown East | $ | 270.70 | $ | 282.99 | (4.3 | )% | 95.1 | % | 89.5 | % | 5.6 | % | $ | 257.53 | $ | 253.32 | 1.7 | % | 33.38 | % | 33.48 | % | -10 bps | ||||||||
Fort Lauderdale Westin | $ | 140.24 | $ | 136.22 | 3.0 | % | 85.1 | % | 77.8 | % | 7.3 | % | $ | 119.30 | $ | 106.00 | 12.5 | % | 27.77 | % | 20.11 | % | 766 bps | ||||||||
Frenchman's Reef | $ | 196.57 | $ | 181.61 | 8.2 | % | 81.6 | % | 77.0 | % | 4.6 | % | $ | 160.31 | $ | 139.90 | 14.6 | % | 14.09 | % | 7.97 | % | 612 bps | ||||||||
JW Marriott Denver Cherry Creek | $ | 275.52 | $ | 272.60 | 1.1 | % | 87.1 | % | 87.4 | % | (0.3 | )% | $ | 240.03 | $ | 238.21 | 0.8 | % | 38.30 | % | 36.53 | % | 177 bps | ||||||||
Inn at Key West | $ | 165.14 | $ | 179.25 | (7.9 | )% | 79.1 | % | 81.0 | % | (1.9 | )% | $ | 130.56 | $ | 145.25 | (10.1 | )% | 37.84 | % | 37.21 | % | 63 bps | ||||||||
Sheraton Suites Key West | $ | 218.30 | $ | 221.65 | (1.5 | )% | 78.4 | % | 80.2 | % | (1.8 | )% | $ | 171.24 | $ | 177.68 | (3.6 | )% | 33.54 | % | 34.20 | % | -66 bps | ||||||||
Lexington Hotel New York | $ | 251.31 | $ | 266.34 | (5.6 | )% | 94.8 | % | 94.4 | % | 0.4 | % | $ | 238.14 | $ | 251.30 | (5.2 | )% | 20.53 | % | 29.07 | % | -854 bps | ||||||||
Hotel Rex | $ | 237.76 | $ | 260.95 | (8.9 | )% | 84.9 | % | 87.2 | % | (2.3 | )% | $ | 201.96 | $ | 227.64 | (11.3 | )% | 38.26 | % | 42.26 | % | -400 bps | ||||||||
Salt Lake City Marriott | $ | 165.71 | $ | 164.54 | 0.7 | % | 73.4 | % | 73.0 | % | 0.4 | % | $ | 121.65 | $ | 120.13 | 1.3 | % | 39.47 | % | 35.13 | % | 434 bps | ||||||||
Shorebreak | $ | 256.64 | $ | 263.32 | (2.5 | )% | 85.7 | % | 83.4 | % | 2.3 | % | $ | 220.01 | $ | 219.65 | 0.2 | % | 41.33 | % | 40.68 | % | 65 bps | ||||||||
The Lodge at Sonoma | $ | 336.17 | $ | 315.38 | 6.6 | % | 88.2 | % | 92.7 | % | (4.5 | )% | $ | 296.45 | $ | 292.23 | 1.4 | % | 38.04 | % | 35.05 | % | 299 bps | ||||||||
Hilton Garden Inn Times Square Central | $ | 260.05 | $ | 265.28 | (2.0 | )% | 98.1 | % | 98.3 | % | (0.2 | )% | $ | 255.16 | $ | 260.68 | (2.1 | )% | 34.25 | % | 39.75 | % | -550 bps | ||||||||
Vail Marriott | $ | 187.56 | $ | 172.12 | 9.0 | % | 76.9 | % | 71.6 | % | 5.3 | % | $ | 144.31 | $ | 123.22 | 17.1 | % | 26.12 | % | 23.96 | % | 216 bps | ||||||||
Westin San Diego | $ | 193.87 | $ | 190.12 | 2.0 | % | 90.9 | % | 90.4 | % | 0.5 | % | $ | 176.27 | $ | 171.92 | 2.5 | % | 37.99 | % | 33.81 | % | 418 bps | ||||||||
Westin Washington D.C. City Center | $ | 198.32 | $ | 188.96 | 5.0 | % | 86.4 | % | 85.1 | % | 1.3 | % | $ | 171.30 | $ | 160.78 | 6.5 | % | 34.44 | % | 34.43 | % | 1 bps | ||||||||
Renaissance Worthington | $ | 170.16 | $ | 175.17 | (2.9 | )% | 50.2 | % | 65.2 | % | (15.0 | )% | $ | 85.34 | $ | 114.14 | (25.2 | )% | 19.70 | % | 29.14 | % | -944 bps | ||||||||
Total | $ | 223.34 | $ | 223.35 | — | % | 84.1 | % | 83.5 | % | 0.6 | % | $ | 187.87 | $ | 186.51 | 0.7 | % | 32.09 | % | 31.56 | % | 53 bps | ||||||||
Comparable Total (2) | $ | 223.44 | $ | 223.34 | — | % | 84.1 | % | 83.5 | % | 0.6 | % | $ | 187.91 | $ | 186.47 | 0.8 | % | 32.12 | % | 31.89 | % | 23 bps |
(1) | The hotel was sold on July 7, 2016. The 2015 operating results reflect the period in 2015 comparable to our ownership period in 2016. |
(2) | Excludes the three hotels sold in 2016: Orlando Airport Marriott, Hilton Minneapolis and Hilton Garden Inn Chelsea. |
Operating Statistics – Year to Date | |||||||||||||||||||||||||||||||
ADR | Occupancy | RevPAR | Hotel Adjusted EBITDA Margin | ||||||||||||||||||||||||||||
YTD 2016 | YTD 2015 | B/(W) | YTD 2016 | YTD 2015 | B/(W) | YTD 2016 | YTD 2015 | B/(W) | YTD 2016 | YTD 2015 | B/(W) | ||||||||||||||||||||
Atlanta Alpharetta Marriott | $ | 174.58 | $ | 164.07 | 6.4 | % | 73.7 | % | 74.9 | % | (1.2 | )% | $ | 128.67 | $ | 122.89 | 4.7 | % | 35.86 | % | 36.47 | % | -61 bps | ||||||||
Bethesda Marriott Suites | $ | 170.48 | $ | 169.30 | 0.7 | % | 71.4 | % | 67.1 | % | 4.3 | % | $ | 121.78 | $ | 113.62 | 7.2 | % | 28.24 | % | 26.67 | % | 157 bps | ||||||||
Boston Westin | $ | 242.15 | $ | 240.01 | 0.9 | % | 82.0 | % | 80.8 | % | 1.2 | % | $ | 198.46 | $ | 193.90 | 2.4 | % | 31.11 | % | 31.24 | % | -13 bps | ||||||||
Hilton Boston Downtown | $ | 282.76 | $ | 286.90 | (1.4 | )% | 87.8 | % | 84.9 | % | 2.9 | % | $ | 248.16 | $ | 243.46 | 1.9 | % | 40.72 | % | 39.74 | % | 98 bps | ||||||||
Hilton Burlington | $ | 180.39 | $ | 173.28 | 4.1 | % | 81.4 | % | 78.7 | % | 2.7 | % | $ | 146.82 | $ | 136.36 | 7.7 | % | 41.53 | % | 40.75 | % | 78 bps | ||||||||
Renaissance Charleston | $ | 223.06 | $ | 218.44 | 2.1 | % | 90.9 | % | 90.6 | % | 0.3 | % | $ | 202.75 | $ | 197.92 | 2.4 | % | 39.64 | % | 36.30 | % | 334 bps | ||||||||
Hilton Garden Inn Chelsea (1) | $ | 201.66 | $ | 206.70 | (2.4 | )% | 98.1 | % | 92.4 | % | 5.7 | % | $ | 197.74 | $ | 191.04 | 3.5 | % | 25.85 | % | 31.22 | % | -537 bps | ||||||||
Chicago Marriott | $ | 219.65 | $ | 219.01 | 0.3 | % | 69.4 | % | 75.6 | % | (6.2 | )% | $ | 152.52 | $ | 165.49 | (7.8 | )% | 25.77 | % | 23.74 | % | 203 bps | ||||||||
Chicago Gwen | $ | 208.80 | $ | 220.74 | (5.4 | )% | 76.8 | % | 74.6 | % | 2.2 | % | $ | 160.33 | $ | 164.56 | (2.6 | )% | 29.77 | % | 26.41 | % | 336 bps | ||||||||
Courtyard Denver Downtown | $ | 203.60 | $ | 204.66 | (0.5 | )% | 82.9 | % | 80.8 | % | 2.1 | % | $ | 168.86 | $ | 165.31 | 2.1 | % | 49.43 | % | 47.78 | % | 165 bps | ||||||||
Courtyard Fifth Avenue | $ | 250.14 | $ | 261.65 | (4.4 | )% | 88.2 | % | 88.8 | % | (0.6 | )% | $ | 220.50 | $ | 232.22 | (5.0 | )% | 17.72 | % | 21.17 | % | -345 bps | ||||||||
Courtyard Midtown East | $ | 251.17 | $ | 260.63 | (3.6 | )% | 91.9 | % | 89.7 | % | 2.2 | % | $ | 230.80 | $ | 233.68 | (1.2 | )% | 28.31 | % | 29.73 | % | -142 bps | ||||||||
Fort Lauderdale Westin | $ | 196.63 | $ | 182.12 | 8.0 | % | 92.1 | % | 86.4 | % | 5.7 | % | $ | 181.03 | $ | 157.31 | 15.1 | % | 39.84 | % | 32.88 | % | 696 bps | ||||||||
Frenchman's Reef | $ | 257.46 | $ | 255.49 | 0.8 | % | 86.5 | % | 85.6 | % | 0.9 | % | $ | 222.74 | $ | 218.74 | 1.8 | % | 26.32 | % | 24.83 | % | 149 bps | ||||||||
JW Marriott Denver Cherry Creek | $ | 270.10 | $ | 271.88 | (0.7 | )% | 81.9 | % | 80.9 | % | 1.0 | % | $ | 221.10 | $ | 219.84 | 0.6 | % | 36.19 | % | 33.72 | % | 247 bps | ||||||||
Inn at Key West | $ | 208.16 | $ | 226.21 | (8.0 | )% | 87.1 | % | 88.6 | % | (1.5 | )% | $ | 181.22 | $ | 200.40 | (9.6 | )% | 46.85 | % | 51.91 | % | -506 bps | ||||||||
Sheraton Suites Key West (2) | $ | 260.24 | $ | 258.07 | 0.8 | % | 88.2 | % | 91.1 | % | (2.9 | )% | $ | 229.56 | $ | 235.11 | (2.4 | )% | 44.35 | % | 34.96 | % | 939 bps | ||||||||
Lexington Hotel New York | $ | 230.77 | $ | 238.68 | (3.3 | )% | 90.3 | % | 92.9 | % | (2.6 | )% | $ | 208.44 | $ | 221.81 | (6.0 | )% | 14.76 | % | 26.43 | % | -1167 bps | ||||||||
Hilton Minneapolis (3) | $ | 149.38 | $ | 141.74 | 5.4 | % | 69.8 | % | 75.2 | % | (5.4 | )% | $ | 104.32 | $ | 106.58 | (2.1 | )% | 19.92 | % | 23.45 | % | -353 bps | ||||||||
Orlando Airport Marriott (4) | $ | 129.43 | $ | 128.65 | 0.6 | % | 86.8 | % | 84.6 | % | 2.2 | % | $ | 112.29 | $ | 108.79 | 3.2 | % | 35.80 | % | 29.29 | % | 651 bps | ||||||||
Hotel Rex | $ | 238.58 | $ | 238.66 | — | % | 83.9 | % | 85.2 | % | (1.3 | )% | $ | 200.28 | $ | 203.23 | (1.5 | )% | 36.77 | % | 36.83 | % | -6 bps | ||||||||
Salt Lake City Marriott | $ | 161.18 | $ | 158.13 | 1.9 | % | 71.0 | % | 73.8 | % | (2.8 | )% | $ | 114.44 | $ | 116.67 | (1.9 | )% | 36.45 | % | 34.44 | % | 201 bps | ||||||||
Shorebreak (5) | $ | 232.01 | $ | 232.71 | (0.3 | )% | 81.3 | % | 81.4 | % | (0.1 | )% | $ | 188.73 | $ | 189.35 | (0.3 | )% | 34.10 | % | 36.16 | % | -206 bps | ||||||||
The Lodge at Sonoma | $ | 294.85 | $ | 276.28 | 6.7 | % | 81.4 | % | 83.9 | % | (2.5 | )% | $ | 240.07 | $ | 231.66 | 3.6 | % | 30.92 | % | 29.18 | % | 174 bps | ||||||||
Hilton Garden Inn Times Square Central | $ | 234.74 | $ | 242.32 | (3.1 | )% | 96.4 | % | 97.0 | % | (0.6 | )% | $ | 226.36 | $ | 235.05 | (3.7 | )% | 29.71 | % | 42.28 | % | -1257 bps | ||||||||
Vail Marriott | $ | 271.71 | $ | 261.69 | 3.8 | % | 73.4 | % | 71.8 | % | 1.6 | % | $ | 199.34 | $ | 187.77 | 6.2 | % | 37.13 | % | 36.39 | % | 74 bps | ||||||||
Westin San Diego | $ | 189.79 | $ | 187.95 | 1.0 | % | 86.4 | % | 86.0 | % | 0.4 | % | $ | 163.95 | $ | 161.73 | 1.4 | % | 37.74 | % | 34.10 | % | 364 bps | ||||||||
Westin Washington D.C. City Center | $ | 222.66 | $ | 215.77 | 3.2 | % | 85.9 | % | 82.8 | % | 3.1 | % | $ | 191.30 | $ | 178.60 | 7.1 | % | 38.65 | % | 35.81 | % | 284 bps | ||||||||
Renaissance Worthington | $ | 180.21 | $ | 181.28 | (0.6 | )% | 64.1 | % | 70.3 | % | (6.2 | )% | $ | 115.59 | $ | 127.47 | (9.3 | )% | 32.89 | % | 35.48 | % | -259 bps | ||||||||
Total | $ | 217.54 | $ | 216.25 | 0.6 | % | 80.7 | % | 81.3 | % | (0.6 | )% | $ | 175.58 | $ | 175.86 | (0.2 | )% | 31.55 | % | 31.02 | % | 53 bps | ||||||||
Comparable Total (6) | $ | 223.98 | $ | 223.05 | 0.4 | % | 80.9 | % | 81.4 | % | (0.5 | )% | $ | 181.30 | $ | 181.66 | (0.2 | )% | 31.96 | % | 31.72 | % | 24 bps |
(1) | The hotel was sold on July 7, 2016. The 2015 operating results reflect the period in 2015 comparable to our ownership period in 2016. |
(2) | The hotel was acquired on June 30, 2015. The 2015 amounts include pre-acquisition operating results in order to reflect the period in 2015 comparable to our ownership period in 2016. |
(3) | The hotel was sold on June 30, 2016. The 2015 operating results reflect the period in 2015 comparable to our ownership period in 2016. |
(4) | The hotel was sold on June 8, 2016. The 2015 operating results reflect the period in 2015 comparable to our ownership period in 2016. |
(5) | The hotel was acquired on February 6, 2015. The 2015 amounts include pre-acquisition operating results in order to reflect the period in 2015 comparable to our ownership period in 2016. |
(6) | Excludes the three hotels sold in 2016: Orlando Airport Marriott, Hilton Minneapolis and Hilton Garden Inn Chelsea. |
Hotel Adjusted EBITDA Reconciliation | ||||||||||||||||||||
Third Quarter 2016 | ||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Adjustments (1) | Hotel Adjusted EBITDA | |||||||||||||||
Atlanta Alpharetta Marriott | $ | 5,015 | $ | 1,441 | $ | 366 | $ | — | $ | — | $ | 1,807 | ||||||||
Bethesda Marriott Suites | $ | 3,789 | $ | (993 | ) | $ | 355 | $ | — | $ | 1,533 | $ | 895 | |||||||
Boston Westin | $ | 25,683 | $ | 3,804 | $ | 2,193 | $ | 2,298 | $ | (60 | ) | $ | 8,235 | |||||||
Hilton Boston Downtown | $ | 11,681 | $ | 4,067 | $ | 1,207 | $ | — | $ | — | $ | 5,274 | ||||||||
Hilton Burlington | $ | 5,834 | $ | 2,365 | $ | 517 | $ | — | $ | — | $ | 2,882 | ||||||||
Renaissance Charleston | $ | 3,398 | $ | 1,034 | $ | 260 | $ | — | $ | (32 | ) | $ | 1,262 | |||||||
Hilton Garden Inn Chelsea | $ | 152 | $ | (4 | ) | $ | — | $ | — | $ | — | $ | (4 | ) | ||||||
Chicago Marriott | $ | 30,621 | $ | 6,651 | $ | 3,450 | $ | (34 | ) | $ | (397 | ) | $ | 9,670 | ||||||
Chicago Gwen | $ | 7,615 | $ | 2,169 | $ | 728 | $ | — | $ | — | $ | 2,897 | ||||||||
Courtyard Denver Downtown | $ | 3,234 | $ | 1,413 | $ | 291 | $ | — | $ | — | $ | 1,704 | ||||||||
Courtyard Fifth Avenue | $ | 4,438 | $ | 554 | $ | 469 | $ | — | $ | 52 | $ | 1,075 | ||||||||
Courtyard Midtown East | $ | 7,889 | $ | 946 | $ | 669 | $ | 1,018 | $ | — | $ | 2,633 | ||||||||
Fort Lauderdale Westin | $ | 8,824 | $ | 1,267 | $ | 1,183 | $ | — | $ | — | $ | 2,450 | ||||||||
Frenchman's Reef | $ | 14,072 | $ | 366 | $ | 1,617 | $ | — | $ | — | $ | 1,983 | ||||||||
JW Marriott Denver Cherry Creek | $ | 6,504 | $ | 1,258 | $ | 506 | $ | 727 | $ | — | $ | 2,491 | ||||||||
Inn at Key West | $ | 1,707 | $ | 461 | $ | 185 | $ | — | $ | — | $ | 646 | ||||||||
Sheraton Suites Key West | $ | 3,679 | $ | 718 | $ | 516 | $ | — | $ | — | $ | 1,234 | ||||||||
Lexington Hotel New York | $ | 16,641 | $ | (1,369 | ) | $ | 3,413 | $ | 1,366 | $ | 7 | $ | 3,417 | |||||||
Hotel Rex | $ | 1,968 | $ | 610 | $ | 143 | $ | — | $ | — | $ | 753 | ||||||||
Salt Lake City Marriott | $ | 7,963 | $ | 1,960 | $ | 521 | $ | 662 | $ | — | $ | 3,143 | ||||||||
Shorebreak | $ | 4,152 | $ | 1,348 | $ | 383 | $ | — | $ | (15 | ) | $ | 1,716 | |||||||
The Lodge at Sonoma | $ | 7,324 | $ | 2,108 | $ | 378 | $ | 300 | $ | — | $ | 2,786 | ||||||||
Hilton Garden Inn Times Square Central | $ | 6,727 | $ | 1,476 | $ | 828 | $ | — | $ | — | $ | 2,304 | ||||||||
Vail Marriott | $ | 7,772 | $ | 1,553 | $ | 477 | $ | — | $ | — | $ | 2,030 | ||||||||
Westin San Diego | $ | 9,268 | $ | 1,817 | $ | 1,024 | $ | 680 | $ | — | $ | 3,521 | ||||||||
Westin Washington D.C. City Center | $ | 7,959 | $ | 763 | $ | 1,251 | $ | 727 | $ | — | $ | 2,741 | ||||||||
Renaissance Worthington | $ | 6,330 | $ | (247 | ) | $ | 676 | $ | 816 | $ | 2 | $ | 1,247 | |||||||
Total | $ | 220,239 | $ | 37,536 | $ | 23,606 | $ | 8,560 | $ | 1,090 | $ | 70,682 | ||||||||
Less: Sold Hotel(2) | $ | (152 | ) | $ | 4 | $ | — | $ | — | $ | — | $ | 4 | |||||||
Comparable Total | $ | 220,087 | $ | 37,540 | $ | 23,606 | $ | 8,560 | $ | 1,090 | $ | 70,686 |
(1) | Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities. |
(2) | Amounts represent the operating results of the Hilton Garden Inn Chelsea. |
Hotel Adjusted EBITDA Reconciliation | ||||||||||||||||||||
Third Quarter 2015 | ||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Adjustments (1) | Hotel Adjusted EBITDA | |||||||||||||||
Atlanta Alpharetta Marriott | $ | 5,282 | $ | 1,674 | $ | 385 | $ | — | $ | — | $ | 2,059 | ||||||||
Bethesda Marriott Suites | $ | 3,479 | $ | (1,211 | ) | $ | 362 | $ | — | $ | 1,541 | $ | 692 | |||||||
Boston Westin | $ | 24,679 | $ | 6,231 | $ | 2,218 | $ | — | $ | 2 | $ | 8,451 | ||||||||
Hilton Boston Downtown | $ | 11,757 | $ | 4,110 | $ | 1,215 | $ | — | $ | 29 | $ | 5,354 | ||||||||
Hilton Burlington | $ | 5,456 | $ | 2,203 | $ | 464 | $ | — | $ | 23 | $ | 2,690 | ||||||||
Renaissance Charleston | $ | 3,101 | $ | 736 | $ | 347 | $ | — | $ | (32 | ) | $ | 1,051 | |||||||
Hilton Garden Inn Chelsea | $ | 3,936 | $ | 1,232 | $ | 362 | $ | — | $ | — | $ | 1,594 | ||||||||
Chicago Marriott | $ | 29,530 | $ | 2,952 | $ | 2,744 | $ | 3,171 | $ | (397 | ) | $ | 8,470 | |||||||
Chicago Gwen | $ | 7,331 | $ | 851 | $ | 731 | $ | — | $ | 685 | $ | 2,267 | ||||||||
Courtyard Denver Downtown | $ | 3,177 | $ | 1,308 | $ | 283 | $ | — | $ | — | $ | 1,591 | ||||||||
Courtyard Fifth Avenue | $ | 4,334 | $ | (228 | ) | $ | 450 | $ | 834 | $ | 52 | $ | 1,108 | |||||||
Courtyard Midtown East | $ | 7,653 | $ | 860 | $ | 683 | $ | 1,019 | $ | — | $ | 2,562 | ||||||||
Fort Lauderdale Westin | $ | 7,604 | $ | 397 | $ | 1,132 | $ | — | $ | — | $ | 1,529 | ||||||||
Frenchman's Reef | $ | 11,625 | $ | (662 | ) | $ | 1,589 | $ | — | $ | — | $ | 927 | |||||||
JW Marriott Denver Cherry Creek | $ | 6,639 | $ | 1,172 | $ | 525 | $ | 728 | $ | — | $ | 2,425 | ||||||||
Inn at Key West | $ | 1,685 | $ | 451 | $ | 176 | $ | — | $ | — | $ | 627 | ||||||||
Sheraton Suites Key West | $ | 3,687 | $ | 749 | $ | 512 | $ | — | $ | — | $ | 1,261 | ||||||||
Lexington Hotel New York | $ | 17,483 | $ | 448 | $ | 3,342 | $ | 1,282 | $ | 10 | $ | 5,082 | ||||||||
Minneapolis Hilton | $ | 14,907 | $ | 1,869 | $ | 1,474 | $ | 1,297 | $ | (202 | ) | $ | 4,438 | |||||||
Orlando Airport Marriott | $ | 5,515 | $ | (448 | ) | $ | 575 | $ | 807 | $ | — | $ | 934 | |||||||
Hotel Rex | $ | 2,158 | $ | 770 | $ | 142 | $ | — | $ | — | $ | 912 | ||||||||
Salt Lake City Marriott | $ | 7,688 | $ | 1,256 | $ | 767 | $ | 678 | $ | — | $ | 2,701 | ||||||||
Shorebreak | $ | 4,233 | $ | 1,503 | $ | 217 | $ | — | $ | 2 | $ | 1,722 | ||||||||
The Lodge at Sonoma | $ | 7,495 | $ | 1,950 | $ | 371 | $ | 306 | $ | — | $ | 2,627 | ||||||||
Hilton Garden Inn Times Square Central | $ | 6,873 | $ | 1,955 | $ | 777 | $ | — | $ | — | $ | 2,732 | ||||||||
Vail Marriott | $ | 6,802 | $ | 1,150 | $ | 480 | $ | — | $ | — | $ | 1,630 | ||||||||
Westin San Diego | $ | 8,601 | $ | 1,149 | $ | 1,020 | $ | 693 | $ | 46 | $ | 2,908 | ||||||||
Westin Washington D.C. City Center | $ | 7,471 | $ | 585 | $ | 1,189 | $ | 746 | $ | 52 | $ | 2,572 | ||||||||
Renaissance Worthington | $ | 8,321 | $ | 1,034 | $ | 575 | $ | 814 | $ | 2 | $ | 2,425 | ||||||||
Total | $ | 238,502 | $ | 36,046 | $ | 25,107 | $ | 12,375 | $ | 1,813 | $ | 75,266 | ||||||||
Less: Sold Hotels (2) | $ | (24,358 | ) | $ | (2,653 | ) | $ | (2,411 | ) | $ | (2,104 | ) | $ | 202 | $ | (6,966 | ) | |||
Comparable Total | $ | 214,144 | $ | 33,393 | $ | 22,696 | $ | 10,271 | $ | 2,015 | $ | 68,300 |
(1) | Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations, the non-cash amortization favorable and unfavorable contract liabilities and hotel manger transition costs. |
(2) | Amounts represent the operating results of the Orlando Airport Marriott, Minneapolis Hilton and Hilton Garden Inn Chelsea. |
Hotel Adjusted EBITDA Reconciliation | ||||||||||||||||||||
Year to Date 2016 | ||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Adjustments (1) | Hotel Adjusted EBITDA | |||||||||||||||
Atlanta Alpharetta Marriott | $ | 15,506 | $ | 4,475 | $ | 1,085 | $ | — | $ | — | $ | 5,560 | ||||||||
Bethesda Marriott Suites | $ | 12,130 | $ | (2,240 | ) | $ | 1,067 | $ | — | $ | 4,598 | $ | 3,425 | |||||||
Boston Westin | $ | 73,021 | $ | 9,430 | $ | 6,595 | $ | 6,873 | $ | (181 | ) | $ | 22,717 | |||||||
Hilton Boston Downtown | $ | 29,583 | $ | 8,406 | $ | 3,631 | $ | — | $ | 8 | $ | 12,045 | ||||||||
Hilton Burlington | $ | 13,387 | $ | 4,100 | $ | 1,460 | $ | — | $ | — | $ | 5,560 | ||||||||
Renaissance Charleston | $ | 10,468 | $ | 3,485 | $ | 759 | $ | — | $ | (95 | ) | $ | 4,149 | |||||||
Hilton Garden Inn Chelsea | $ | 6,413 | $ | 1,057 | $ | 601 | $ | — | $ | — | $ | 1,658 | ||||||||
Chicago Marriott | $ | 74,356 | $ | 10,074 | $ | 9,866 | $ | 410 | $ | (1,192 | ) | $ | 19,158 | |||||||
Chicago Gwen | $ | 17,816 | $ | 3,216 | $ | 2,087 | $ | — | $ | — | $ | 5,303 | ||||||||
Courtyard Denver Downtown | $ | 8,738 | $ | 3,456 | $ | 863 | $ | — | $ | — | $ | 4,319 | ||||||||
Courtyard Fifth Avenue | $ | 11,645 | $ | (660 | ) | $ | 1,357 | $ | 1,212 | $ | 155 | $ | 2,064 | |||||||
Courtyard Midtown East | $ | 21,010 | $ | 904 | $ | 2,010 | $ | 3,034 | $ | — | $ | 5,948 | ||||||||
Fort Lauderdale Westin | $ | 36,822 | $ | 11,149 | $ | 3,520 | $ | — | $ | — | $ | 14,669 | ||||||||
Frenchman's Reef | $ | 52,794 | $ | 9,060 | $ | 4,834 | $ | — | $ | — | $ | 13,894 | ||||||||
JW Marriott Denver Cherry Creek | $ | 18,935 | $ | 3,141 | $ | 1,545 | $ | 2,166 | $ | — | $ | 6,852 | ||||||||
Inn at Key West | $ | 6,550 | $ | 2,521 | $ | 548 | $ | — | $ | — | $ | 3,069 | ||||||||
Sheraton Suites Key West | $ | 14,298 | $ | 4,797 | $ | 1,544 | $ | — | $ | — | $ | 6,341 | ||||||||
Lexington Hotel New York | $ | 43,433 | $ | (7,833 | ) | $ | 10,185 | $ | 4,036 | $ | 22 | $ | 6,410 | |||||||
Minneapolis Hilton | $ | 24,786 | $ | (11 | ) | $ | 2,917 | $ | 2,514 | $ | (482 | ) | $ | 4,938 | ||||||
Orlando Airport Marriott | $ | 14,117 | $ | 4,481 | $ | 573 | $ | — | $ | — | $ | 5,054 | ||||||||
Hotel Rex | $ | 5,858 | $ | 1,725 | $ | 429 | $ | — | $ | — | $ | 2,154 | ||||||||
Salt Lake City Marriott | $ | 22,366 | $ | 4,586 | $ | 1,583 | $ | 1,983 | $ | — | $ | 8,152 | ||||||||
Shorebreak | $ | 11,078 | $ | 2,692 | $ | 1,130 | $ | — | $ | (44 | ) | $ | 3,778 | |||||||
The Lodge at Sonoma | $ | 19,662 | $ | 4,069 | $ | 1,111 | $ | 899 | $ | — | $ | 6,079 | ||||||||
Hilton Garden Inn Times Square Central | $ | 17,810 | $ | 2,910 | $ | 2,382 | $ | — | $ | — | $ | 5,292 | ||||||||
Vail Marriott | $ | 28,034 | $ | 8,976 | $ | 1,433 | $ | — | $ | — | $ | 10,409 | ||||||||
Westin San Diego | $ | 26,945 | $ | 5,053 | $ | 3,083 | $ | 2,034 | $ | — | $ | 10,170 | ||||||||
Westin Washington D.C. City Center | $ | 26,264 | $ | 4,270 | $ | 3,703 | $ | 2,179 | $ | — | $ | 10,152 | ||||||||
Renaissance Worthington | $ | 26,112 | $ | 4,321 | $ | 1,829 | $ | 2,431 | $ | 6 | $ | 8,587 | ||||||||
Total | $ | 689,937 | $ | 111,610 | $ | 73,730 | $ | 29,771 | $ | 2,795 | $ | 217,666 | ||||||||
Less: Sold Hotels(2) | $ | (45,316 | ) | $ | (5,527 | ) | $ | (4,091 | ) | $ | (2,514 | ) | $ | 482 | $ | (11,650 | ) | |||
Comparable Total | $ | 644,621 | $ | 106,083 | $ | 69,639 | $ | 27,257 | $ | 3,277 | $ | 206,016 |
(1) | Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities. |
(2) | Amounts represent the operating results of the Orlando Airport Marriott, Minneapolis Hilton and Hilton Garden Inn Chelsea. |
Hotel Adjusted EBITDA Reconciliation | ||||||||||||||||||||
Year to Date 2015 | ||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Adjustments (1) | Hotel Adjusted EBITDA | |||||||||||||||
Atlanta Alpharetta Marriott | $ | 14,945 | $ | 4,292 | $ | 1,159 | $ | — | $ | — | $ | 5,451 | ||||||||
Bethesda Marriott Suites | $ | 11,460 | $ | (2,685 | ) | $ | 1,117 | $ | — | $ | 4,624 | $ | 3,056 | |||||||
Boston Westin | $ | 71,004 | $ | 15,499 | $ | 6,674 | $ | — | $ | 7 | $ | 22,180 | ||||||||
Hilton Boston Downtown | $ | 27,510 | $ | 7,368 | $ | 3,452 | $ | — | $ | 113 | $ | 10,933 | ||||||||
Hilton Burlington | $ | 12,394 | $ | 3,613 | $ | 1,370 | $ | — | $ | 68 | $ | 5,051 | ||||||||
Renaissance Charleston | $ | 10,277 | $ | 2,695 | $ | 1,131 | $ | — | $ | (95 | ) | $ | 3,731 | |||||||
Hilton Garden Inn Chelsea | $ | 9,932 | $ | 2,015 | $ | 1,086 | $ | — | $ | — | $ | 3,101 | ||||||||
Chicago Marriott | $ | 77,669 | $ | 3,353 | $ | 6,852 | $ | 9,425 | $ | (1,192 | ) | $ | 18,438 | |||||||
Chicago Gwen | $ | 19,428 | $ | 2,091 | $ | 2,338 | $ | — | $ | 702 | $ | 5,131 | ||||||||
Courtyard Denver Downtown | $ | 8,554 | $ | 3,236 | $ | 851 | $ | — | $ | — | $ | 4,087 | ||||||||
Courtyard Fifth Avenue | $ | 11,835 | $ | (1,480 | ) | $ | 1,347 | $ | 2,483 | $ | 155 | $ | 2,505 | |||||||
Courtyard Midtown East | $ | 20,995 | $ | 1,167 | $ | 2,051 | $ | 3,024 | $ | — | $ | 6,242 | ||||||||
Fort Lauderdale Westin | $ | 33,319 | $ | 7,416 | $ | 3,388 | $ | — | $ | 151 | $ | 10,955 | ||||||||
Frenchman's Reef | $ | 49,929 | $ | 6,464 | $ | 4,767 | $ | 1,164 | $ | — | $ | 12,395 | ||||||||
JW Marriott Denver Cherry Creek | $ | 18,907 | $ | 2,958 | $ | 1,577 | $ | 1,840 | $ | — | $ | 6,375 | ||||||||
Inn at Key West | $ | 6,770 | $ | 2,992 | $ | 522 | $ | — | $ | — | $ | 3,514 | ||||||||
Sheraton Suites Key West (2) | $ | 3,750 | $ | 799 | $ | 512 | $ | — | $ | — | $ | 1,311 | ||||||||
Lexington Hotel New York | $ | 46,742 | $ | (1,663 | ) | $ | 10,027 | $ | 3,945 | $ | 47 | $ | 12,356 | |||||||
Minneapolis Hilton | $ | 39,514 | $ | (180 | ) | $ | 6,177 | $ | 3,874 | $ | (606 | ) | $ | 9,265 | ||||||
Orlando Airport Marriott | $ | 20,229 | $ | 1,808 | $ | 1,714 | $ | 2,404 | $ | — | $ | 5,926 | ||||||||
Hotel Rex | $ | 5,824 | $ | 1,720 | $ | 425 | $ | — | $ | — | $ | 2,145 | ||||||||
Salt Lake City Marriott | $ | 22,331 | $ | 3,404 | $ | 2,262 | $ | 2,025 | $ | — | $ | 7,691 | ||||||||
Shorebreak (2) | $ | 9,925 | $ | 2,243 | $ | 973 | $ | — | $ | 373 | $ | 3,589 | ||||||||
The Lodge at Sonoma | $ | 19,849 | $ | 3,754 | $ | 1,124 | $ | 913 | $ | — | $ | 5,791 | ||||||||
Hilton Garden Inn Times Square Central | $ | 18,429 | $ | 5,550 | $ | 2,332 | $ | — | $ | (90 | ) | $ | 7,792 | |||||||
Vail Marriott | $ | 26,062 | $ | 8,021 | $ | 1,462 | $ | — | $ | — | $ | 9,483 | ||||||||
Westin San Diego | $ | 26,170 | $ | 3,667 | $ | 3,053 | $ | 2,066 | $ | 137 | $ | 8,923 | ||||||||
Westin Washington D.C. City Center | $ | 24,247 | $ | 2,711 | $ | 3,536 | $ | 2,229 | $ | 207 | $ | 8,683 | ||||||||
Renaissance Worthington | $ | 29,192 | $ | 6,300 | $ | 1,740 | $ | 2,310 | $ | 6 | $ | 10,356 | ||||||||
Total | $ | 697,192 | $ | 99,128 | $ | 75,019 | $ | 37,702 | $ | 4,607 | $ | 216,236 | ||||||||
Add: Prior Ownership Results(2) | $ | 11,537 | $ | 3,760 | $ | 1,026 | $ | — | $ | (7 | ) | $ | 4,779 | |||||||
Less: Sold Hotels(3) | $ | (69,675 | ) | $ | (3,643 | ) | $ | (8,977 | ) | $ | (6,278 | ) | $ | 606 | $ | (18,292 | ) | |||
Comparable Total | $ | 639,054 | $ | 99,245 | $ | 67,068 | $ | 31,424 | $ | 5,206 | $ | 202,723 |
(1) | Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations, the non-cash amortization favorable and unfavorable contract liabilities and manager transition costs. |
(2) | Amounts represent the pre-acquisition operating results of Shorebreak for the period from January 1, 2015 to February 5, 2015 and the Sheraton Suites Key West for the period from January 1, 2015 to June 29, 2015. The pre-acquisition operating results were obtained from the respective sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the respective sellers. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors. |
(3) | Amounts represent the operating results of the Orlando Airport Marriott, Minneapolis Hilton and Hilton Garden Inn Chelsea. |