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)) |
1. | The following directors were elected to the Company’s Board of Directors (constituting the entire Board of Directors) to serve until the 2018 annual meeting of stockholders and until their respective successors are duly elected and qualified: |
Name | For | Against | Abstain | Broker Non-Votes |
Daniel J. Altobello | 186,472,117 | 2,122,780 | 729,960 | 2,145,308 |
Mark W. Brugger | 187,852,632 | 743,005 | 729,220 | 2,145,308 |
Timothy R. Chi | 187,668,579 | 912,215 | 744,063 | 2,145,308 |
Maureen L. McAvey | 187,385,194 | 1,666,790 | 272,873 | 2,145,308 |
William W. McCarten | 187,378,688 | 1,216,743 | 729,426 | 2,145,308 |
Gilbert T. Ray | 187,304,354 | 1,746,676 | 273,827 | 2,145,308 |
William J. Shaw | 186,610,448 | 2,439,224 | 275,185 | 2,145,308 |
Bruce D. Wardinski | 188,136,772 | 914,772 | 273,313 | 2,145,308 |
2. | The Company’s stockholders approved, on a non-binding, advisory basis, the compensation of the Company’s named executive officers. |
For | Against | Abstain | Broker Non-Votes |
182,287,854 | 6,681,201 | 355,802 | 2,145,308 |
3. | The Company’s stockholders recommended a frequency of one year for the vote, on a non-binding, advisory basis, on the compensation of the Company’s named executive officers. |
1 Year | 2 Years | 3 Years | Abstain |
159,276,436 | 22,728 | 29,660,476 | 365,217 |
For | Against | Abstain |
190,149,484 | 1,060,408 | 260,273 |
Exhibit No. | Description | |
99.1 | Press Release, dated May 5, 2017. |
DIAMONDROCK HOSPITALITY COMPANY | ||||||
Date: May 5, 2017 | By: | /s/ William J. Tennis | ||||
William J. Tennis | ||||||
Executive Vice President, General Counsel and Corporate Secretary |
• | Net Income: Net income was $8.9 million and earnings per diluted share was $0.04. |
• | Comparable RevPAR: RevPAR was $161.89, a 1.9% increase from the comparable period of 2016. Renovation disruption negatively impacted the Company's RevPAR growth by approximately 210 basis points. |
• | Comparable Hotel Adjusted EBITDA Margin: Hotel Adjusted EBITDA margin was 26.79%, a increase of 5 basis points from the comparable period of 2016. Renovation disruption negatively impacted the Company's comparable Hotel Adjusted EBITDA margins by approximately 76 basis points. Total hotel operating expenses increased approximately 1% from the comparable period of 2016. |
• | Adjusted EBITDA: Adjusted EBITDA was $47.3 million. |
• | Adjusted FFO: Adjusted FFO was $36.6 million and Adjusted FFO per diluted share was $0.18. |
• | Acquisitions: The Company acquired the 88-room L'Auberge de Sedona and the 70-room Orchards Inn for a combined purchase price of $97 million. |
• | Chief Operating Officer: Thomas G. Healy joined the Company as Chief Operating Officer and Executive Vice President, Asset Management. |
• | Dividends: The Company declared a dividend of $0.125 per share during the first quarter, which was paid on April 12, 2017. |
• | Term Loan: On April 26, 2017, the Company closed on a new five-year $200 million unsecured term loan. |
• | Mortgage Loan Repayment: On April 26, 2017, the Company repaid the $170.4 million mortgage loan secured by the Lexington Hotel New York with the proceeds from the new term loan. |
First Quarter | ||||||||||
2017 | 2016 | Change | ||||||||
Comparable Operating Results (1) | ||||||||||
ADR | $218.58 | $217.33 | 0.6 | % | ||||||
Occupancy | 74.1 | % | 73.1 | % | 1.0 percentage points | |||||
RevPAR | $161.89 | $158.88 | 1.9 | % | ||||||
Revenues | $199.6 million | $197.4 million | 1.1 | % | ||||||
Hotel Adjusted EBITDA Margin | 26.79 | % | 26.74 | % | 5 basis points | |||||
Actual Operating Results (2) | ||||||||||
Revenues | $196.2 million | $213.0 million | -7.9 | % | ||||||
Net income | $8.9 million | $16.8 million | -$7.9 million | |||||||
Earnings per diluted share | $0.04 | $0.08 | -$0.04 | |||||||
Adjusted EBITDA | $47.3 million | $50.3 million | -$3.0 million | |||||||
Adjusted FFO | $36.6 million | $42.8 million | -$6.2 million | |||||||
Adjusted FFO per diluted share | $0.18 | $0.21 | -$0.03 |
• | Chicago Marriott Downtown: The Company recently completed the third phase of the multi-year renovation, which included the upgrade renovation of approximately 340 guest rooms. The Company expects to commence the final phase of the multi-year renovation, which includes renovating the final 258 of 1,200 guest rooms, meeting rooms and certain public spaces, during late 2017 with completion in early 2018. |
• | The Gwen: The Company completed the renovation of the hotel's 311 guest rooms in April 2017. |
• | Worthington Renaissance: The Company completed the renovation of the hotel's 504 guest rooms in January 2017. |
• | Charleston Renaissance: The Company completed the renovation of the hotel's 166 guest rooms in February 2017. |
• | The Lodge at Sonoma: The Company commenced the renovation of the hotel's 182 guest rooms in January 2017 and expects to complete the project during the second quarter of 2017. |
• | JW Marriott Denver: The Company expects to renovate the hotel's 196 guest rooms, corridors, meeting space and lobby during the seasonally slow period beginning in late 2017 through early 2018. |
Metric | Low End | High End | |
Comparable RevPAR Growth | -1.0 percent | 1.0 percent | |
Adjusted EBITDA | $238.5 million | $251.5 million | |
Adjusted FFO | $193 million | $203 million | |
Adjusted FFO per share (based on 201.5 million shares) | $0.96 per share | $1.01 per share |
Quarter 1, 2016 | Quarter 2, 2016 | Quarter 3, 2016 | Quarter 4, 2016 | Full Year 2016 | |||||||||||
ADR | $ | 217.33 | $ | 233.36 | $ | 224.91 | $ | 232.91 | $ | 227.36 | |||||
Occupancy | 73.1 | % | 85.4 | % | 84.0 | % | 76.1 | % | 79.6 | % | |||||
RevPAR | $ | 158.88 | $ | 199.22 | $ | 188.88 | $ | 177.21 | $ | 181.06 | |||||
Revenues (in thousands) | $ | 197,395 | $ | 240,366 | $ | 226,957 | $ | 214,765 | $ | 879,483 | |||||
Hotel Adjusted EBITDA (in thousands) | $ | 52,775 | $ | 85,525 | $ | 71,997 | $ | 67,070 | $ | 277,367 | |||||
% of full Year | 19.0 | % | 30.8 | % | 26.0 | % | 24.2 | % | 100.0 | % | |||||
Hotel Adjusted EBITDA Margin | 26.74 | % | 35.58 | % | 31.72 | % | 31.23 | % | 31.54 | % | |||||
Available Rooms | 871,689 | 872,417 | 882,004 | 883,016 | 3,509,126 |
March 31, 2017 | December 31, 2016 | ||||||
ASSETS | (unaudited) | ||||||
Property and equipment, net | $ | 2,753,516 | $ | 2,646,676 | |||
Restricted cash | 48,754 | 46,069 | |||||
Due from hotel managers | 91,859 | 77,928 | |||||
Favorable lease assets, net | 26,508 | 18,013 | |||||
Prepaid and other assets (1) | 35,682 | 37,682 | |||||
Cash and cash equivalents | 112,429 | 243,095 | |||||
Total assets | $ | 3,068,748 | $ | 3,069,463 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Mortgage debt, net of unamortized debt issuance costs | $ | 818,600 | $ | 821,167 | |||
Term loan, net of unamortized debt issuance costs | 99,409 | 99,372 | |||||
Senior unsecured credit facility | — | — | |||||
Total debt | 918,009 | 920,539 | |||||
Deferred income related to key money, net | 19,359 | 20,067 | |||||
Unfavorable contract liabilities, net | 72,168 | 72,646 | |||||
Deferred ground rent | 81,990 | 80,509 | |||||
Due to hotel managers | 72,738 | 58,294 | |||||
Dividends declared and unpaid | 25,464 | 25,567 | |||||
Accounts payable and accrued expenses (2) | 57,723 | 55,054 | |||||
Total other liabilities | 329,442 | 312,137 | |||||
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; 200,266,132 and 200,200,902 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 2,003 | 2,002 | |||||
Additional paid-in capital | 2,056,255 | 2,055,365 | |||||
Accumulated deficit | (236,961 | ) | (220,580 | ) | |||
Total stockholders’ equity | 1,821,297 | 1,836,787 | |||||
Total liabilities and stockholders’ equity | $ | 3,068,748 | $ | 3,069,463 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Revenues: | |||||||
Rooms | $ | 137,832 | $ | 149,443 | |||
Food and beverage | 44,778 | 50,374 | |||||
Other | 13,600 | 13,217 | |||||
Total revenues | 196,210 | 213,034 | |||||
Operating Expenses: | |||||||
Rooms | 36,901 | 38,714 | |||||
Food and beverage | 29,466 | 33,350 | |||||
Management fees | 6,012 | 6,609 | |||||
Other hotel expenses | 71,659 | 78,929 | |||||
Depreciation and amortization | 24,363 | 25,121 | |||||
Hotel acquisition costs | 2,251 | — | |||||
Corporate expenses | 6,262 | 6,000 | |||||
Total operating expenses, net | 176,914 | 188,723 | |||||
Operating profit | 19,296 | 24,311 | |||||
Interest and other income, net | (359 | ) | (50 | ) | |||
Interest expense | 9,513 | 11,664 | |||||
Total other expenses, net | 9,154 | 11,614 | |||||
Income before income taxes | 10,142 | 12,697 | |||||
Income tax (expense) benefit | (1,255 | ) | 4,081 | ||||
Net income | $ | 8,887 | $ | 16,778 | |||
Earnings per share: | |||||||
Basic earnings per share | $ | 0.04 | $ | 0.08 | |||
Diluted earnings per share | $ | 0.04 | $ | 0.08 | |||
Weighted-average number of common shares outstanding: | |||||||
Basic | 200,654,092 | 200,992,875 | |||||
Diluted | 201,837,582 | 201,595,461 |
• | 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 or structured severance programs 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. |
• | 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 March 31, | |||||||
2017 | 2016 | ||||||
Net income | $ | 8,887 | $ | 16,778 | |||
Interest expense | 9,513 | 11,664 | |||||
Income tax expense (benefit) | 1,255 | (4,081 | ) | ||||
Real estate related depreciation and amortization | 24,363 | 25,121 | |||||
EBITDA | 44,018 | 49,482 | |||||
Non-cash ground rent | 1,550 | 1,334 | |||||
Non-cash amortization of favorable and unfavorable contract liabilities, net | (478 | ) | (478 | ) | |||
Hotel acquisition costs | 2,251 | — | |||||
Adjusted EBITDA | $ | 47,341 | $ | 50,338 |
Full Year 2017 Guidance | |||||||
Low End | High End | ||||||
Net income | $ | 89,449 | $ | 100,449 | |||
Interest expense | 38,000 | 37,000 | |||||
Income tax expense | 7,500 | 11,500 | |||||
Real estate related depreciation and amortization | 97,100 | 96,100 | |||||
EBITDA | 232,049 | 245,049 | |||||
Non-cash ground rent | 6,100 | 6,100 | |||||
Non-cash amortization of favorable and unfavorable contracts, net | (1,900 | ) | (1,900 | ) | |||
Acquisition costs | 2,251 | 2,251 | |||||
Adjusted EBITDA | $ | 238,500 | $ | 251,500 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net income | $ | 8,887 | $ | 16,778 | |||
Interest expense | 9,513 | 11,664 | |||||
Income tax expense (benefit) | 1,255 | (4,081 | ) | ||||
Real estate related depreciation and amortization | 24,363 | 25,121 | |||||
EBITDA | 44,018 | 49,482 | |||||
Corporate expenses | 6,262 | 6,000 | |||||
Interest and other income, net | (359 | ) | (50 | ) | |||
Hotel acquisition costs | 2,251 | — | |||||
Hotel EBITDA | 52,172 | 55,432 | |||||
Non-cash ground rent | 1,550 | 1,334 | |||||
Non-cash amortization of favorable and unfavorable contract liabilities, net | (478 | ) | (478 | ) | |||
Hotel Adjusted EBITDA | $ | 53,244 | $ | 56,288 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net income | $ | 8,887 | $ | 16,778 | |||
Real estate related depreciation and amortization | 24,363 | 25,121 | |||||
FFO | 33,250 | 41,899 | |||||
Non-cash ground rent | 1,550 | 1,334 | |||||
Non-cash amortization of favorable and unfavorable contract liabilities, net | (478 | ) | (478 | ) | |||
Hotel acquisition costs | 2,251 | — | |||||
Fair value adjustments to debt instruments | — | 14 | |||||
Adjusted FFO | $ | 36,573 | $ | 42,769 | |||
Adjusted FFO per diluted share | $ | 0.18 | $ | 0.21 |
Full Year 2017 Guidance | |||||||
Low End | High End | ||||||
Net income | $ | 89,449 | $ | 100,449 | |||
Real estate related depreciation and amortization | 97,100 | 96,100 | |||||
FFO | 186,549 | 196,549 | |||||
Non-cash ground rent | 6,100 | 6,100 | |||||
Non-cash amortization of favorable and unfavorable contract liabilities, net | (1,900 | ) | (1,900 | ) | |||
Acquisition costs | 2,251 | 2,251 | |||||
Adjusted FFO | $ | 193,000 | $ | 203,000 | |||
Adjusted FFO per diluted share | $ | 0.96 | $ | 1.01 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Revenues | $ | 196,210 | $ | 213,034 | |||
Hotel revenues from prior ownership (1) | 3,422 | 5,365 | |||||
Hotel revenues from sold hotels (2) | — | (21,004 | ) | ||||
Comparable Revenues | $ | 199,632 | $ | 197,395 | |||
Hotel Adjusted EBITDA | $ | 53,244 | $ | 56,288 | |||
Hotel Adjusted EBITDA from prior ownership (1) | 229 | 785 | |||||
Hotel Adjusted EBITDA from sold hotels (2) | — | (4,298 | ) | ||||
Comparable Hotel Adjusted EBITDA | $ | 53,473 | $ | 52,775 | |||
Hotel Adjusted EBITDA Margin | 27.14 | % | 26.42 | % | |||
Comparable Hotel Adjusted EBITDA Margin | 26.79 | % | 26.74 | % |
(1) | Amounts represent the pre-acquisition operating results of the L'Auberge de Sedona and Orchards Inn Sedona for the period from January 1, 2017 to February 27, 2017 and January 1, 2016 to March 31, 2016, respectively. 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 seller. 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 March 31, | Three Months Ended March 31, | ||||||||||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | 2017 | 2016 | % Change | ||||||||||||||||||||||
Rooms departmental expenses | $ | 36,901 | $ | 38,714 | (4.7 | )% | $ | 773 | $ | (2,479 | ) | $ | 37,674 | $ | 36,235 | 4.0 | % | ||||||||||||
Food and beverage departmental expenses | 29,466 | 33,350 | (11.6 | )% | 919 | (2,626 | ) | 30,385 | 30,724 | (1.1 | )% | ||||||||||||||||||
Other direct departmental | 2,995 | 3,100 | (3.4 | )% | 256 | 266 | 3,251 | 3,366 | (3.4 | )% | |||||||||||||||||||
General and administrative | 17,995 | 19,697 | (8.6 | )% | 416 | (1,533 | ) | 18,411 | 18,164 | 1.4 | % | ||||||||||||||||||
Utilities | 6,060 | 6,812 | (11.0 | )% | 107 | (508 | ) | 6,167 | 6,304 | (2.2 | )% | ||||||||||||||||||
Repairs and maintenance | 8,684 | 9,316 | (6.8 | )% | 209 | (621 | ) | 8,893 | 8,695 | 2.3 | % | ||||||||||||||||||
Sales and marketing | 13,801 | 15,685 | (12.0 | )% | 263 | (1,541 | ) | 14,064 | 14,144 | (0.6 | )% | ||||||||||||||||||
Franchise fees | 5,031 | 5,288 | (4.9 | )% | — | (229 | ) | 5,031 | 5,059 | (0.6 | )% | ||||||||||||||||||
Base management fees | 4,545 | 5,315 | (14.5 | )% | 116 | (431 | ) | 4,661 | 4,884 | (4.6 | )% | ||||||||||||||||||
Incentive management fees | 1,467 | 1,294 | 13.4 | % | — | (7 | ) | 1,467 | 1,287 | 14.0 | % | ||||||||||||||||||
Property taxes | 12,230 | 12,255 | (0.2 | )% | 82 | (519 | ) | 12,312 | 11,736 | 4.9 | % | ||||||||||||||||||
Ground rent | 2,513 | 3,799 | (33.9 | )% | — | (1,490 | ) | 2,513 | 2,309 | 8.8 | % | ||||||||||||||||||
Insurance | 1,688 | 1,790 | (5.7 | )% | 45 | (99 | ) | 1,733 | 1,691 | 2.5 | % | ||||||||||||||||||
Other fixed expenses | 662 | 1,187 | (44.2 | )% | 39 | (31 | ) | 701 | 1,156 | (39.4 | )% | ||||||||||||||||||
Total hotel operating expenses | $ | 144,038 | $ | 157,602 | (8.6 | )% | $ | 3,225 | $ | (11,848 | ) | $147,263 | $ | 145,754 | 1.0 | % |
Market Capitalization as of March 31, 2017 | ||||
(in thousands) | ||||
Enterprise Value | ||||
Common equity capitalization (at March 31, 2017 closing price of $11.15/share) | $ | 2,245,722 | ||
Consolidated debt | 918,009 | |||
Cash and cash equivalents | (112,429) | |||
Total enterprise value | $ | 3,051,302 | ||
Share Reconciliation | ||||
Common shares outstanding | 200,266 | |||
Unvested restricted stock held by management and employees | 632 | |||
Share grants under deferred compensation plan | 512 | |||
Combined shares outstanding | 201,410 |
Debt Summary as of May 4, 2017 | ||||||||||
(dollars in thousands) | ||||||||||
Property | Interest Rate | Term | Outstanding Principal | Maturity | ||||||
Marriott Salt Lake City Downtown | 4.25% | Fixed | $ | 57,790 | November 2020 | |||||
Westin Washington D.C. City Center | 3.99% | Fixed | 66,180 | January 2023 | ||||||
The Lodge at Sonoma, a Renaissance Resort & Spa | 3.96% | Fixed | 28,687 | April 2023 | ||||||
Westin San Diego | 3.94% | Fixed | 65,805 | April 2023 | ||||||
Courtyard Manhattan / Midtown East | 4.40% | Fixed | 84,990 | August 2024 | ||||||
Renaissance Worthington | 3.66% | Fixed | 85,000 | May 2025 | ||||||
JW Marriott Denver at Cherry Creek | 4.33% | Fixed | 64,226 | July 2025 | ||||||
Westin Boston Waterfront Hotel | 4.36% | Fixed | 200,329 | November 2025 | ||||||
Debt issuance costs, net | (5,564 | ) | ||||||||
Total mortgage debt, net of unamortized debt issuance costs | $ | 647,443 | ||||||||
Unsecured term loan | LIBOR + 1.45(1) | Variable | 100,000 | May 2021 | ||||||
Unsecured term loan | LIBOR + 1.45(1) | Variable | 200,000 | April 2022 | ||||||
Debt issuance costs, net | (4,179 | ) | ||||||||
Unsecured term loans, net of unamortized debt issuance costs | $ | 295,821 | ||||||||
Senior unsecured credit facility | LIBOR + 1.50 | Variable | $ | — | May 2020 (2) | |||||
Total debt, net of unamortized debt issuance costs | $ | 943,264 | ||||||||
Weighted-average interest rate of fixed rate debt | 4.22% | |||||||||
Total weighted-average interest rate | 3.67% |
(1) | The interest rate as of May 4, 2017 was 2.45%. |
(2) | May be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. |
Operating Statistics – First Quarter | |||||||||||||||||||||||||||||||
ADR | Occupancy | RevPAR | Hotel Adjusted EBITDA Margin | ||||||||||||||||||||||||||||
1Q 2017 | 1Q 2016 | B/(W) | 1Q 2017 | 1Q 2016 | B/(W) | 1Q 2017 | 1Q 2016 | B/(W) | 1Q 2017 | 1Q 2016 | B/(W) | ||||||||||||||||||||
Atlanta Alpharetta Marriott | $ | 179.49 | $ | 184.82 | (2.9 | )% | 70.2 | % | 68.9 | % | 1.3 | % | $ | 125.98 | $ | 127.39 | (1.1 | )% | 33.33 | % | 35.63 | % | -230 bps | ||||||||
Bethesda Marriott Suites | $ | 170.50 | $ | 160.42 | 6.3 | % | 70.1 | % | 60.6 | % | 9.5 | % | $ | 119.47 | $ | 97.25 | 22.8 | % | 26.00 | % | 18.45 | % | 755 bps | ||||||||
Boston Westin | $ | 207.73 | $ | 201.23 | 3.2 | % | 67.6 | % | 71.2 | % | (3.6 | )% | $ | 140.34 | $ | 143.34 | (2.1 | )% | 20.42 | % | 18.58 | % | 184 bps | ||||||||
Hilton Boston Downtown | $ | 202.90 | $ | 206.30 | (1.6 | )% | 72.7 | % | 76.8 | % | (4.1 | )% | $ | 147.60 | $ | 158.36 | (6.8 | )% | 17.50 | % | 23.44 | % | -594 bps | ||||||||
Hilton Burlington | $ | 122.29 | $ | 126.35 | (3.2 | )% | 67.3 | % | 68.0 | % | (0.7 | )% | $ | 82.32 | $ | 85.90 | (4.2 | )% | 14.23 | % | 22.09 | % | -786 bps | ||||||||
Renaissance Charleston | $ | 240.22 | $ | 203.73 | 17.9 | % | 57.3 | % | 86.4 | % | (29.1 | )% | $ | 137.59 | $ | 175.98 | (21.8 | )% | 18.90 | % | 33.52 | % | -1462 bps | ||||||||
Chicago Marriott | $ | 164.76 | $ | 162.21 | 1.6 | % | 49.5 | % | 40.4 | % | 9.1 | % | $ | 81.51 | $ | 65.52 | 24.4 | % | (3.16 | )% | (21.31 | )% | 1815 bps | ||||||||
Chicago Gwen | $ | 161.61 | $ | 160.13 | 0.9 | % | 45.2 | % | 55.2 | % | (10.0 | )% | $ | 73.10 | $ | 88.37 | (17.3 | )% | (23.13 | )% | (8.08 | )% | -1505 bps | ||||||||
Courtyard Denver Downtown | $ | 187.94 | $ | 185.29 | 1.4 | % | 71.5 | % | 75.8 | % | (4.3 | )% | $ | 134.32 | $ | 140.37 | (4.3 | )% | 40.92 | % | 41.44 | % | -52 bps | ||||||||
Courtyard Fifth Avenue | $ | 198.63 | $ | 204.97 | (3.1 | )% | 83.3 | % | 78.1 | % | 5.2 | % | $ | 165.38 | $ | 160.08 | 3.3 | % | (7.67 | )% | (4.38 | )% | -329 bps | ||||||||
Courtyard Midtown East | $ | 196.41 | $ | 204.49 | (4.0 | )% | 81.9 | % | 85.4 | % | (3.5 | )% | $ | 160.86 | $ | 174.67 | (7.9 | )% | 7.12 | % | 10.04 | % | -292 bps | ||||||||
Fort Lauderdale Westin | $ | 237.77 | $ | 252.29 | (5.8 | )% | 96.0 | % | 97.6 | % | (1.6 | )% | $ | 228.24 | $ | 246.24 | (7.3 | )% | 45.44 | % | 47.66 | % | -222 bps | ||||||||
Frenchman's Reef | $ | 351.14 | $ | 337.11 | 4.2 | % | 91.0 | % | 89.3 | % | 1.7 | % | $ | 319.39 | $ | 301.10 | 6.1 | % | 35.77 | % | 36.66 | % | -89 bps | ||||||||
JW Marriott Denver Cherry Creek | $ | 242.85 | $ | 256.27 | (5.2 | )% | 74.4 | % | 77.0 | % | (2.6 | )% | $ | 180.69 | $ | 197.26 | (8.4 | )% | 28.05 | % | 31.13 | % | -308 bps | ||||||||
Inn at Key West | $ | 238.63 | $ | 260.36 | (8.3 | )% | 80.7 | % | 96.5 | % | (15.8 | )% | $ | 192.53 | $ | 251.27 | (23.4 | )% | 55.90 | % | 53.46 | % | 244 bps | ||||||||
Sheraton Suites Key West | $ | 297.84 | $ | 314.54 | (5.3 | )% | 93.4 | % | 95.5 | % | (2.1 | )% | $ | 278.06 | $ | 300.32 | (7.4 | )% | 52.08 | % | 51.95 | % | 13 bps | ||||||||
Lexington Hotel New York | $ | 177.62 | $ | 184.59 | (3.8 | )% | 87.2 | % | 81.0 | % | 6.2 | % | $ | 154.92 | $ | 149.48 | 3.6 | % | (14.97 | )% | (8.24 | )% | -673 bps | ||||||||
Hotel Rex | $ | 249.07 | $ | 250.81 | (0.7 | )% | 76.2 | % | 79.2 | % | (3.0 | )% | $ | 189.72 | $ | 198.59 | (4.5 | )% | 34.72 | % | 35.15 | % | -43 bps | ||||||||
Salt Lake City Marriott | $ | 170.62 | $ | 165.41 | 3.1 | % | 76.8 | % | 65.6 | % | 11.2 | % | $ | 130.97 | $ | 108.49 | 20.7 | % | 43.34 | % | 34.23 | % | 911 bps | ||||||||
L'Auberge de Sedona (1) | $ | 627.33 | $ | 526.93 | 19.1 | % | 81.7 | % | 75.4 | % | 6.3 | % | $ | 512.35 | $ | 397.13 | 29.0 | % | 32.84 | % | 28.80 | % | 404 bps | ||||||||
Orchards Inn Sedona (1) | $ | 257.29 | $ | 230.43 | 11.7 | % | 91.5 | % | 89.0 | % | 2.5 | % | $ | 235.48 | $ | 205.15 | 14.8 | % | 42.71 | % | 43.52 | % | -81 bps | ||||||||
Shorebreak | $ | 219.08 | $ | 215.30 | 1.8 | % | 62.2 | % | 75.6 | % | (13.4 | )% | $ | 136.21 | $ | 162.76 | (16.3 | )% | 16.47 | % | 25.34 | % | -887 bps | ||||||||
The Lodge at Sonoma | $ | 236.41 | $ | 225.28 | 4.9 | % | 41.8 | % | 73.5 | % | (31.7 | )% | $ | 98.91 | $ | 165.66 | (40.3 | )% | (9.98 | )% | 19.34 | % | -2932 bps | ||||||||
Hilton Garden Inn Times Square Central | $ | 174.40 | $ | 182.29 | (4.3 | )% | 95.2 | % | 94.0 | % | 1.2 | % | $ | 166.10 | $ | 171.27 | (3.0 | )% | 8.72 | % | 13.84 | % | -512 bps | ||||||||
Vail Marriott | $ | 422.64 | $ | 412.52 | 2.5 | % | 91.7 | % | 89.2 | % | 2.5 | % | $ | 387.75 | $ | 368.09 | 5.3 | % | 52.91 | % | 53.96 | % | -105 bps | ||||||||
Westin San Diego | $ | 197.49 | $ | 187.19 | 5.5 | % | 84.6 | % | 83.7 | % | 0.9 | % | $ | 167.12 | $ | 156.71 | 6.6 | % | 41.58 | % | 39.61 | % | 197 bps | ||||||||
Westin Washington D.C. City Center | $ | 230.68 | $ | 207.40 | 11.2 | % | 82.9 | % | 80.3 | % | 2.6 | % | $ | 191.33 | $ | 166.50 | 14.9 | % | 39.29 | % | 33.20 | % | 609 bps | ||||||||
Renaissance Worthington | $ | 184.65 | $ | 182.58 | 1.1 | % | 77.4 | % | 67.1 | % | 10.3 | % | $ | 142.97 | $ | 122.45 | 16.8 | % | 39.95 | % | 34.25 | % | 570 bps | ||||||||
Total | $ | 217.62 | $ | 217.09 | 0.2 | % | 74.1 | % | 73.3 | % | 0.8 | % | $ | 161.30 | $ | 159.09 | 1.4 | % | 27.14 | % | 27.15 | % | -1 bps | ||||||||
Comparable Total (2) | $ | 218.58 | $ | 217.33 | 0.6 | % | 74.1 | % | 73.1 | % | 1.0 | % | $ | 161.89 | $ | 158.88 | 1.9 | % | 26.79 | % | 26.74 | % | 5 bps |
(1) | Hotels were acquired on February 28, 2017. Amounts reflect the operating results these hotels for the period from February 28, 2017 to March 31, 2017 and February 28, 2016 to March 31, 2016, respectively. |
(2) | Amounts include the pre-acquisition operating results of the L'Auberge de Sedona and Orchards Inn Sedona for the period from January 1, 2017 to February 27, 2017 and January 1, 2016 to March 31, 2016, respectively, and exclude the three hotels sold in 2016. |
Hotel Adjusted EBITDA Reconciliation | ||||||||||||||||||||
First Quarter 2017 | ||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Adjustments (1) | Hotel Adjusted EBITDA | |||||||||||||||
Atlanta Alpharetta Marriott | $ | 5,014 | $ | 1,287 | $ | 384 | $ | — | $ | — | $ | 1,671 | ||||||||
Bethesda Marriott Suites | $ | 3,931 | $ | (848 | ) | $ | 347 | $ | — | $ | 1,523 | $ | 1,022 | |||||||
Boston Westin | $ | 18,300 | $ | (607 | ) | $ | 2,181 | $ | 2,231 | $ | (69 | ) | $ | 3,736 | ||||||
Hilton Boston Downtown | $ | 6,137 | $ | (162 | ) | $ | 1,236 | $ | — | $ | — | $ | 1,074 | |||||||
Hilton Burlington | $ | 2,523 | $ | (157 | ) | $ | 516 | $ | — | $ | — | $ | 359 | |||||||
Renaissance Charleston | $ | 2,344 | $ | 145 | $ | 330 | $ | — | $ | (32 | ) | $ | 443 | |||||||
Chicago Marriott | $ | 15,721 | $ | (3,613 | ) | $ | 3,478 | $ | 35 | $ | (397 | ) | $ | (497 | ) | |||||
Chicago Gwen | $ | 2,542 | $ | (1,443 | ) | $ | 855 | $ | — | $ | — | $ | (588 | ) | ||||||
Courtyard Denver Downtown | $ | 2,314 | $ | 664 | $ | 283 | $ | — | $ | — | $ | 947 | ||||||||
Courtyard Fifth Avenue | $ | 2,895 | $ | (723 | ) | $ | 449 | $ | — | $ | 52 | $ | (222 | ) | ||||||
Courtyard Midtown East | $ | 4,891 | $ | (1,303 | ) | $ | 662 | $ | 989 | $ | — | $ | 348 | |||||||
Fort Lauderdale Westin | $ | 14,728 | $ | 5,424 | $ | 1,269 | $ | — | $ | — | $ | 6,693 | ||||||||
Frenchman's Reef | $ | 21,856 | $ | 6,160 | $ | 1,658 | $ | — | $ | — | $ | 7,818 | ||||||||
JW Marriott Denver Cherry Creek | $ | 5,152 | $ | 231 | $ | 508 | $ | 706 | $ | — | $ | 1,445 | ||||||||
Inn at Key West | $ | 2,213 | $ | 1,044 | $ | 193 | $ | — | $ | — | $ | 1,237 | ||||||||
Sheraton Suites Key West | $ | 5,495 | $ | 2,575 | $ | 287 | $ | — | $ | — | $ | 2,862 | ||||||||
Lexington Hotel New York | $ | 10,801 | $ | (6,567 | ) | $ | 3,475 | $ | 1,467 | $ | 8 | $ | (1,617 | ) | ||||||
Hotel Rex | $ | 1,875 | $ | 508 | $ | 143 | $ | — | $ | — | $ | 651 | ||||||||
Salt Lake City Marriott | $ | 9,230 | $ | 2,843 | $ | 518 | $ | 639 | $ | — | $ | 4,000 | ||||||||
L'Auberge de Sedona | $ | 2,372 | $ | 595 | $ | 184 | $ | — | $ | — | $ | 779 | ||||||||
Orchards Inn Sedona | $ | 967 | $ | 336 | $ | 77 | $ | — | $ | — | $ | 413 | ||||||||
Shorebreak | $ | 2,532 | $ | 32 | $ | 400 | $ | — | $ | (15 | ) | $ | 417 | |||||||
The Lodge at Sonoma | $ | 3,045 | $ | (985 | ) | $ | 390 | $ | 291 | $ | — | $ | (304 | ) | ||||||
Hilton Garden Inn Times Square Central | $ | 4,337 | $ | (413 | ) | $ | 791 | $ | — | $ | — | $ | 378 | |||||||
Vail Marriott | $ | 16,255 | $ | 8,097 | $ | 503 | $ | — | $ | — | $ | 8,600 | ||||||||
Westin San Diego | $ | 9,438 | $ | 2,158 | $ | 1,108 | $ | 658 | $ | — | $ | 3,924 | ||||||||
Westin Washington D.C. City Center | $ | 8,420 | $ | 1,323 | $ | 1,283 | $ | 702 | $ | — | $ | 3,308 | ||||||||
Renaissance Worthington | $ | 10,882 | $ | 2,691 | $ | 855 | $ | 799 | $ | 2 | $ | 4,347 | ||||||||
Total | $ | 196,210 | $ | 19,292 | $ | 24,363 | $ | 8,517 | $ | 1,072 | $ | 53,244 | ||||||||
Add: Prior Ownership Results(2) | $ | 3,422 | $ | (293 | ) | $ | 522 | $ | — | $ | — | $ | 229 | |||||||
Comparable Total | $ | 199,632 | $ | 18,999 | $ | 24,885 | $ | 8,517 | $ | 1,072 | $ | 53,473 |
(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 pre-acquisition operating results of L'Auberge de Sedona and Orchards Inn Sedona for the period from January 1, 2017 to February 27, 2017. |
Hotel Adjusted EBITDA Reconciliation | ||||||||||||||||||||
First Quarter 2016 | ||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Adjustments (1) | Hotel Adjusted EBITDA | |||||||||||||||
Atlanta Alpharetta Marriott | $ | 5,217 | $ | 1,501 | $ | 358 | $ | — | $ | — | $ | 1,859 | ||||||||
Bethesda Marriott Suites | $ | 3,311 | $ | (1,279 | ) | $ | 357 | $ | — | $ | 1,533 | $ | 611 | |||||||
Boston Westin | $ | 18,324 | $ | (1,030 | ) | $ | 2,203 | $ | 2,292 | $ | (60 | ) | $ | 3,405 | ||||||
Hilton Boston Downtown | $ | 6,588 | $ | 308 | $ | 1,228 | $ | — | $ | 8 | $ | 1,544 | ||||||||
Hilton Burlington | $ | 2,798 | $ | 151 | $ | 467 | $ | — | $ | — | $ | 618 | ||||||||
Renaissance Charleston | $ | 3,100 | $ | 820 | $ | 251 | $ | — | $ | (32 | ) | $ | 1,039 | |||||||
Hilton Garden Inn Chelsea | $ | 2,513 | $ | (30 | ) | $ | 361 | $ | — | $ | — | $ | 331 | |||||||
Chicago Marriott | $ | 12,376 | $ | (5,598 | ) | $ | 2,941 | $ | 417 | $ | (397 | ) | $ | (2,637 | ) | |||||
Chicago Gwen | $ | 3,157 | $ | (913 | ) | $ | 658 | $ | — | $ | — | $ | (255 | ) | ||||||
Courtyard Denver Downtown | $ | 2,454 | $ | 731 | $ | 286 | $ | — | $ | — | $ | 1,017 | ||||||||
Courtyard Fifth Avenue | $ | 2,833 | $ | (1,436 | ) | $ | 440 | $ | 820 | $ | 52 | $ | (124 | ) | ||||||
Courtyard Midtown East | $ | 5,249 | $ | (1,154 | ) | $ | 673 | $ | 1,008 | $ | — | $ | 527 | |||||||
Fort Lauderdale Westin | $ | 15,743 | $ | 6,335 | $ | 1,168 | $ | — | $ | — | $ | 7,503 | ||||||||
Frenchman's Reef | $ | 21,759 | $ | 6,364 | $ | 1,613 | $ | — | $ | — | $ | 7,977 | ||||||||
JW Marriott Denver Cherry Creek | $ | 5,908 | $ | 595 | $ | 525 | $ | 719 | $ | — | $ | 1,839 | ||||||||
Inn at Key West | $ | 2,817 | $ | 1,327 | $ | 179 | $ | — | $ | — | $ | 1,506 | ||||||||
Sheraton Suites Key West | $ | 5,965 | $ | 2,585 | $ | 514 | $ | — | $ | — | $ | 3,099 | ||||||||
Lexington Hotel New York | $ | 10,413 | $ | (5,571 | ) | $ | 3,367 | $ | 1,339 | $ | 7 | $ | (858 | ) | ||||||
Minneapolis Hilton | $ | 9,418 | $ | (2,319 | ) | $ | 1,462 | $ | 1,268 | $ | (242 | ) | $ | 169 | ||||||
Orlando Airport Marriott | $ | 9,073 | $ | 3,225 | $ | 573 | $ | — | $ | — | $ | 3,798 | ||||||||
Hotel Rex | $ | 1,960 | $ | 547 | $ | 142 | $ | — | $ | — | $ | 689 | ||||||||
Salt Lake City Marriott | $ | 7,213 | $ | 1,262 | $ | 544 | $ | 663 | $ | — | $ | 2,469 | ||||||||
Shorebreak | $ | 3,315 | $ | 480 | $ | 375 | $ | — | $ | (15 | ) | $ | 840 | |||||||
The Lodge at Sonoma | $ | 5,475 | $ | 392 | $ | 367 | $ | 300 | $ | — | $ | 1,059 | ||||||||
Hilton Garden Inn Times Square Central | $ | 4,501 | $ | (154 | ) | $ | 777 | $ | — | $ | — | $ | 623 | |||||||
Vail Marriott | $ | 15,415 | $ | 7,839 | $ | 479 | $ | — | $ | — | $ | 8,318 | ||||||||
Westin San Diego | $ | 9,120 | $ | 1,907 | $ | 1,026 | $ | 679 | $ | — | $ | 3,612 | ||||||||
Westin Washington D.C. City Center | $ | 7,687 | $ | 604 | $ | 1,219 | $ | 729 | $ | — | $ | 2,552 | ||||||||
Renaissance Worthington | $ | 9,332 | $ | 1,818 | $ | 568 | $ | 808 | $ | 2 | $ | 3,196 | ||||||||
Total | $ | 213,034 | $ | 19,307 | $ | 25,121 | $ | 11,042 | $ | 856 | $ | 56,288 | ||||||||
Add: Prior Ownership Results(2) | $ | 5,365 | $ | (148 | ) | $ | 933 | $ | — | $ | — | $ | 785 | |||||||
Less: Sold Hotels (3) | $ | (21,004 | ) | $ | (876 | ) | $ | (2,396 | ) | $ | (1,268 | ) | $ | 242 | $ | (4,298 | ) | |||
Comparable Total | $ | 197,395 | $ | 18,283 | $ | 23,658 | $ | 9,774 | $ | 1,098 | $ | 52,775 |
(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 pre-acquisition operating results of the L'Auberge de Sedona and Orchards Inn Sedona for the period from January 1, 2016 to March 31, 2016. |
(3) | Amounts represent the operating results of the three hotels sold in 2016: Orlando Airport Marriott, Minneapolis Hilton and Hilton Garden Inn Chelsea. |