UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 27, 2009
DiamondRock Hospitality Company
(Exact name of registrant as specified in its charter)
Maryland | 001-32514 | 20-1180098 | ||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
6903 Rockledge Drive, Suite 800 Bethesda, |
MD 20817 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code: (240) 744-1150
(Former name or former address if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. Results of Operations and Financial Condition
The information in this Current Report on Form 8-K is furnished under Item 2.02 Results of Operations and Financial Condition. Such information, including the exhibits attached hereto, shall not be deemed filed for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.
On February 27, 2009, DiamondRock Hospitality Company (the Company) issued a press release announcing its financial results for the quarter and year ended December 31, 2008. The text of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
ITEM 9.01. Financial Statements and Exhibits.
(d) | Exhibits. |
See Index to Exhibits attached hereto.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DIAMONDROCK HOSPITALITY COMPANY | ||||
Date: February 27, 2009
|
By: | /s/ Michael D. Schecter | ||
Michael D. Schecter | ||||
Executive Vice President, General Counsel and Corporate Secretary |
EXHIBIT INDEX
Exhibit No. | Description | |
99.1
|
Press release dated February 27, 2009. |
| RevPAR: The Companys same-store RevPAR decreased 9.4 percent compared to the same period in 2007. |
| Hotel Adjusted EBITDA Margins: The Companys same-store Hotel Adjusted EBITDA margins decreased 327 basis points compared to the same period in 2007. |
| Adjusted EBITDA: The Companys Adjusted EBITDA was $54.6 million. |
| Adjusted FFO: The Companys Adjusted FFO was $41.5 million and Adjusted FFO per diluted share was $0.46. |
| RevPAR: The Companys same-store RevPAR decreased 3.3 percent compared to the same period in 2007. |
| Hotel Adjusted EBITDA Margins: The Companys same-store Hotel Adjusted EBITDA margins decreased 201 basis points compared to the same period in 2007. |
| Adjusted EBITDA: The Companys Adjusted EBITDA was $178.8 million. |
| Adjusted FFO: The Companys Adjusted FFO was $137.8 million and Adjusted FFO per diluted share was $1.48. |
| Revenues of $218.0 million compared to $236.1 million for the comparable period in 2007. |
| Adjusted EBITDA of $54.6 million compared to $67.7 million for the comparable period in 2007. |
| Adjusted FFO and Adjusted FFO per diluted share of $41.5 million and $0.46, respectively, compared to $47.6 million and $0.50, respectively, for the comparable period in 2007. |
| Net income of $13.8 million (or $0.15 per diluted share) compared to $25.1 million (or $0.26 per diluted share) for the comparable period in 2007. |
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| Revenues of $693.2 million compared to $717.4 million for the comparable period in 2007. |
| Adjusted EBITDA of $178.8 million compared to $202.2 million for the comparable period in 2007. |
| Adjusted FFO and Adjusted FFO per diluted share of $137.8 million and $1.48, respectively, compared to $145.8 million and $1.55, respectively, for the comparable period in 2007. |
| Net income of $52.9 million (or $0.56 per diluted share) compared to $68.3 million (or $0.72 per diluted share) for the comparable period in 2007. |
Full Year 2008 Guidance | Full Year 2008 Results | |||
RevPAR Growth
|
-1% to -3% | -3.3% | ||
Adjusted EBITDA
|
$175 to $181 million | $178.8 million | ||
Adjusted FFO
|
$136 to $140 million | $137.8 million | ||
Adjusted FFO/Share
|
$1.46 to $1.51 per diluted share | $1.48 per diluted share |
- 3 -
| chose to not pay a fourth quarter dividend and intends to pay its next dividend to shareholders of record as of December 31, 2009; |
| is assessing whether to utilize the Internal Revenue Services Revenue Procedure 2009-15 in order to pay a portion of its 2009 dividend in shares of our common stock and the remainder in cash; |
| significantly curtailed capital spending for 2009 and expects to owner fund less than $10 million in capital expenditures in 2009 as compared to more than $25 million in 2008; |
| is considering the sale of one or more of its hotels; |
| may issue common stock as appropriate; |
| amended its senior unsecured credit facility to reduce the risk of default under one of its financial covenants and may seek further amendments to its credit facility to make additional changes to the financial covenants; and |
| engaged mortgage brokers to determine potential options for additional property-specific mortgage debt or the refinancing of its two mortgages that mature prior to the end of January 2010. |
| In 2008, the Company generated $191 million of Hotel Adjusted EBITDA and, from that amount, contributed $30.3 million to hotel FF&E escrow accounts. | ||
| For 2009, the Company projects approximately $53 million of debt service based on its current capital structure. The 2009 debt service will include approximately $4.7 million of regularly scheduled principal payments. | ||
| The Company expects to complete approximately $35 million of capital expenditures during 2009 which will consist of $25 million that will be funded from existing reserve accounts and approximately $10 million funded from corporate cash. | ||
| The Company expects to incur $16.0 million of corporate G&A in 2009 which includes approximately $10.5 million of cash expenses. | ||
| The Companys 2009 weighted average fully diluted shares will be approximately 90.6 million shares based upon its current capital structure. |
- 4 -
| Chicago Marriott Downtown: The Company completed a $35 million renovation of the hotel. Approximately $10 million was paid from corporate funds, with the balance coming from the hotels escrow funds and a contribution from Marriott International. The project included a complete renovation of all the meeting and ballrooms, adding 12,000 square feet of new meeting space, reconcepting and relocating the restaurant, expanding the lobby bar and creating a Marriott great room in the lobby. The project began during the third quarter of 2007 and was substantially completed in April 2008. The estimated disruption of approximately $2 million to Hotel Adjusted EBITDA, mainly associated with the ballroom renovations, primarily impacted the first quarter of 2008. |
| Westin Boston Waterfront: The Company completed the construction of additional meeting rooms in the building attached to the hotel. The $19 million project included the creation of over 37,000 square feet of meeting and exhibition space. The project began in the third quarter of 2007 and was substantially completed in the first quarter of 2008. |
| Chicago Conrad: The Company completed its renovation of the guestrooms and corridors during the first quarter and the upgrade of the front entrance repositioning during the third quarter of 2008. |
| Salt Lake City Marriott: The Company extensively renovated the guestrooms at the hotel during the fourth quarter of 2008 which was completed in January 2009, almost all of which was be funded by the hotels escrow funds. |
- 5 -
- 6 -
- 7 -
2008 | 2007 | |||||||
ASSETS |
||||||||
Property and equipment, at cost |
$ | 2,146,616 | $ | 2,086,933 | ||||
Less: accumulated depreciation |
(226,400 | ) | (148,101 | ) | ||||
1,920,216 | 1,938,832 | |||||||
Restricted cash |
30,060 | 31,736 | ||||||
Due from hotel managers |
61,062 | 68,153 | ||||||
Favorable lease assets, net |
40,619 | 42,070 | ||||||
Prepaid and other assets |
33,414 | 17,043 | ||||||
Cash and cash equivalents |
13,830 | 29,773 | ||||||
Deferred financing costs, net |
3,335 | 4,020 | ||||||
Total assets |
$ | 2,102,536 | $ | 2,131,627 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Liabilities: |
||||||||
Mortgage debt |
$ | 821,353 | $ | 824,526 | ||||
Senior unsecured credit facility |
57,000 | | ||||||
Total debt |
878,353 | 824,526 | ||||||
Deferred income related to key money, net |
20,328 | 15,884 | ||||||
Unfavorable contract liabilities, net |
84,403 | 86,123 | ||||||
Due to hotel managers |
35,196 | 36,910 | ||||||
Dividends declared and unpaid |
| 22,922 | ||||||
Accounts payable and accrued expenses |
66,624 | 64,980 | ||||||
Total other liabilities |
206,551 | 226,819 | ||||||
Shareholders Equity: |
||||||||
Preferred stock, $.01 par value; 10,000,000 shares
authorized; no shares issued and outstanding |
| | ||||||
Common stock, $.01 par value; 200,000,000 shares
authorized; 90,050,264 and 94,730,813 shares
issued and outstanding at December 31, 2008 and
2007, respectively |
901 | 947 | ||||||
Additional paid-in capital |
1,100,541 | 1,145,511 | ||||||
Accumulated deficit |
(83,810 | ) | (66,176 | ) | ||||
Total shareholders equity |
1,017,632 | 1,080,282 | ||||||
Total liabilities and shareholders equity |
$ | 2,102,536 | $ | 2,131,627 | ||||
- 8 -
(Unaudited) | ||||||||
2008 | 2007 | |||||||
Revenues: |
||||||||
Rooms |
$ | 135,929 | $ | 148,230 | ||||
Food and beverage |
70,349 | 74,128 | ||||||
Other |
11,681 | 11,901 | ||||||
Total revenues |
217,959 | 234,259 | ||||||
Operating Expenses: |
||||||||
Rooms |
33,037 | 33,668 | ||||||
Food and beverage |
46,916 | 49,394 | ||||||
Management fees |
8,712 | 9,942 | ||||||
Other hotel expenses |
72,711 | 72,661 | ||||||
Impairment of favorable lease asset |
695 | | ||||||
Depreciation and amortization |
25,144 | 23,941 | ||||||
Corporate expenses |
4,440 | 4,126 | ||||||
Total operating expenses |
191,655 | 193,732 | ||||||
Operating income |
26,304 | 40,527 | ||||||
Interest income |
(582 | ) | (655 | ) | ||||
Interest expense |
16,647 | 16,362 | ||||||
Total other expenses |
16,065 | 15,707 | ||||||
Income before income taxes |
10,239 | 24,820 | ||||||
Income tax benefit (expense) |
3,546 | (3,953 | ) | |||||
Income from continuing operations |
13,785 | 20,867 | ||||||
Income from discontinued operations, net of tax |
| 4,271 | ||||||
Net income |
$ | 13,785 | $ | 25,138 | ||||
Earnings per share: |
||||||||
Continuing operations |
0.15 | 0.22 | ||||||
Discontinued operations |
| 0.04 | ||||||
Basic and diluted earnings per share |
$ | 0.15 | $ | 0.26 | ||||
Weighted-average number of
common shares outstanding: |
||||||||
Basic |
90,517,083 | 95,154,244 | ||||||
Diluted |
90,517,083 | 95,235,591 | ||||||
- 9 -
2008 | 2007 | |||||||
Revenues: |
||||||||
Rooms |
$ | 444,070 | $ | 456,719 | ||||
Food and beverage |
211,475 | 217,505 | ||||||
Other |
37,689 | 36,709 | ||||||
Total revenues |
693,234 | 710,933 | ||||||
Operating Expenses: |
||||||||
Rooms |
105,868 | 104,672 | ||||||
Food and beverage |
145,181 | 147,463 | ||||||
Management fees |
28,569 | 29,764 | ||||||
Other hotel expenses |
228,469 | 224,053 | ||||||
Depreciation and amortization |
78,156 | 74,315 | ||||||
Impairment of favorable lease asset |
695 | | ||||||
Corporate expenses |
13,987 | 13,818 | ||||||
Total operating expenses |
600,925 | 594,085 | ||||||
Operating income |
92,309 | 116,848 | ||||||
Interest income |
(1,648 | ) | (2,399 | ) | ||||
Interest expense |
50,404 | 51,445 | ||||||
Gain on early extinguishment of debt |
| (359 | ) | |||||
Total other expenses (income) |
48,756 | 48,687 | ||||||
Income before income taxes |
43,553 | 68,161 | ||||||
Income tax (expense) benefit |
9,376 | (5,264 | ) | |||||
Income from continuing operations |
52,929 | 62,897 | ||||||
Income from discontinued operations, net of tax |
| 5,412 | ||||||
Net income |
$ | 52,929 | $ | 68,309 | ||||
Earnings per share: |
||||||||
Continuing operations |
$ | 0.56 | $ | 0.66 | ||||
Discontinued operations |
| 0.06 | ||||||
Basic and diluted earnings (loss) per share |
$ | 0.56 | $ | 0.72 | ||||
Weighted-average number of common shares
outstanding: |
||||||||
Basic |
93,064,790 | 94,199,814 | ||||||
Diluted |
93,116,162 | 94,265,245 | ||||||
- 10 -
2008 | 2007 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 52,929 | $ | 68,309 | ||||
Adjustments to reconcile net income to net cash
provided by operating activities: |
||||||||
Real estate depreciation |
78,156 | 75,477 | ||||||
Corporate asset depreciation as corporate expenses |
164 | 172 | ||||||
Non-cash financing costs as interest |
808 | 779 | ||||||
Non-cash ground rent |
7,755 | 7,823 | ||||||
Gain on disposal of asset, net of taxes |
| (3,783 | ) | |||||
Impairment of favorable lease asset |
695 | | ||||||
Gain on early extinguishment of debt, net |
| (359 | ) | |||||
Amortization of debt premium and unfavorable contract liabilities |
(1,720 | ) | (1,807 | ) | ||||
Amortization of deferred income |
(557 | ) | (392 | ) | ||||
Yield support received |
797 | 1,803 | ||||||
Non-cash yield support recognized |
| (894 | ) | |||||
Stock-based compensation |
3,981 | 3,584 | ||||||
Deferred income tax expense (benefit) |
(10,128 | ) | 2,952 | |||||
Changes in assets and liabilities: |
||||||||
Prepaid expenses and other assets |
(2,183 | ) | (347 | ) | ||||
Due to/from hotel managers |
1,773 | (6,795 | ) | |||||
Restricted cash |
(1,773 | ) | 1,217 | |||||
Accounts payable and accrued expenses |
(1,196 | ) | 959 | |||||
Net cash provided by operating activities |
129,501 | 148,698 | ||||||
Cash flows from investing activities: |
||||||||
Hotel acquisitions |
| (331,325 | ) | |||||
Proceeds from sale of asset, net |
| 35,405 | ||||||
Hotel capital expenditures |
(65,116 | ) | (56,412 | ) | ||||
Receipt of deferred key money |
5,000 | 5,250 | ||||||
Change in restricted cash |
3,449 | (4,210 | ) | |||||
Net cash used in investing activities |
(56,667 | ) | (351,292 | ) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from mortgage debt |
| 5,000 | ||||||
Repayments of mortgage debt |
| (18,392 | ) | |||||
Repayments of credit facilities |
(116,000 | ) | (108,000 | ) | ||||
Draws on credit facilities |
173,000 | 108,000 | ||||||
Scheduled mortgage debt principal payments |
(3,173 | ) | (3,233 | ) | ||||
Prepayment penalty on early extinguishment of debt |
| (1,972 | ) | |||||
Payment of financing costs |
(123 | ) | (1,237 | ) | ||||
Proceeds from sale of common stock |
| 317,935 | ||||||
Payment of costs related to sale of common stock |
| (380 | ) | |||||
Repurchase of shares |
(49,434 | ) | (2,720 | ) | ||||
Payment of dividends |
(93,047 | ) | (82,325 | ) | ||||
Net cash provided by financing activities |
(88,777 | ) | 212,676 | |||||
Net (decrease) increase in cash and cash equivalents |
(15,943 | ) | 10,082 | |||||
Cash and cash equivalents, beginning of period |
29,773 | 19,691 | ||||||
Cash and cash equivalents, end of period |
$ | 13,830 | $ | 29,773 | ||||
- 11 -
2008 | 2007 | |||||||
Supplemental Disclosure of Cash Flow Information: |
||||||||
Cash paid for interest |
$ | 49,614 | $ | 50,560 | ||||
Capitalized interest |
$ | 259 | $ | 50 | ||||
Cash paid for income taxes |
$ | 1,080 | $ | 1,867 | ||||
Non-cash Investing and Financing Activities: |
||||||||
Unpaid dividends |
$ | | $ | 22,922 | ||||
- 12 -
Historical (in 000s) | ||||||||
Fiscal | Fiscal | |||||||
Quarter Ended | Quarter Ended | |||||||
December 31, 2008 | December 31, 2007 | |||||||
Net income |
$ | 13,785 | $ | 25,138 | ||||
Interest expense |
16,647 | 16,362 | ||||||
Income tax (benefit) / expense (1) |
(3,546 | ) | 3,835 | |||||
Depreciation and amortization (2) |
25,144 | 24,284 | ||||||
EBITDA |
$ | 52,030 | $ | 69,619 | ||||
(1) | Includes $0.1 million of income tax benefit included in discontinued operations for the fiscal quarter ended December 31, 2007. | |
(2) | Includes $0.3 million of depreciation expense included in discontinued operations for the fiscal quarter ended December 31, 2007. |
Historical (in 000s) | ||||||||
Year-Ended | Year-Ended | |||||||
December 31, 2008 | December 31, 2007 | |||||||
Net income |
$ | 52,929 | $ | 68,309 | ||||
Interest expense |
50,404 | 51,445 | ||||||
Income tax (benefit) expense (1) |
(9,376 | ) | 4,919 | |||||
Depreciation and amortization (2) |
78,156 | 75,477 | ||||||
EBITDA |
$ | 172,113 | $ | 200,150 | ||||
(1) | Includes $0.3 million of income tax benefit included in discontinued operations for the period from January 1, 2007 to December 31, 2007. | |
(2) | Includes $1.2 million of depreciation expense included in discontinued operations for the period from January 1, 2007 to December 31, 2007. |
| Non-Cash Ground Rent: We exclude the non-cash expense incurred from straight lining the rent from our ground lease obligations and the non-cash amortization of our favorable lease assets. | ||
| The impact of the non-cash amortization of the unfavorable contract liabilities recorded in conjunction with our acquisitions of the Bethesda Marriott Suites and the Chicago Marriott Downtown. The amortization of the unfavorable contract liabilities does not reflect the underlying performance of the Company. | ||
| Cumulative effect of a change in accounting principle: Infrequently, the Financial Accounting Standards Board (FASB) promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments because they do not reflect our actual performance for that period. | ||
| Gains from Early Extinguishment of Debt: We exclude the effect of gains recorded on the early extinguishment of debt because we believe that including them in EBITDA is not consistent with reflecting the ongoing performance of our remaining assets. |
- 13 -
| Impairment Losses and Gains or Losses on Dispositions: We exclude the effect of impairment losses and gains or losses on dispositions recorded because we believe that including them in EBITDA is not consistent with reflecting the ongoing performance of our remaining assets. In addition, we believe that impairment charges are similar to depreciation expense, which is also excluded from EBITDA. | ||
| Acquisition Costs: We exclude acquisition transaction costs expensed during the period from EBITDA because we believe that including these costs in EBITDA is not consistent with the underlying performance of the Company. The GAAP accounting treatment of acquisition costs was modified effective January 1, 2009 to require companies to expense acquisition costs as incurred. The previous GAAP accounting treatment was to capitalize acquisition costs. | ||
| Other Non-Cash and / or Non-Recurring Items: We exclude the effect of certain non-cash and / or non-recurring items from EBITDA because we believe that including these costs in EBITDA is not consistent with the underlying performance of the Company. |
Historical (in 000s) | ||||||||
Fiscal | Fiscal | |||||||
Quarter Ended | Quarter Ended | |||||||
December 31, 2008 | December 31, 2007 | |||||||
EBITDA |
$ | 52,030 | $ | 69,619 | ||||
Gain on property disposal, net of tax |
| (3,783 | ) | |||||
Non-cash ground rent |
2,434 | 2,440 | ||||||
Non-cash amortization of unfavorable contract liabilities |
(529 | ) | (529 | ) | ||||
Impairment of favorable lease asset |
695 | | ||||||
Adjusted EBITDA |
$ | 54,630 | $ | 67,747 | ||||
Historical (in 000s) | ||||||||
Year-Ended | Year-Ended | |||||||
December 31, 2008 | December 31, 2007 | |||||||
EBITDA |
$ | 172,113 | $ | 200,150 | ||||
Gain on early extinguishment of debt |
| (359 | ) | |||||
Gain on property disposal, net of tax |
| (3,783 | ) | |||||
Non-cash ground rent |
7,755 | 7,863 | ||||||
Non-cash amortization of unfavorable contract liabilities |
(1,719 | ) | (1,719 | ) | ||||
Impairment of favorable lease asset |
695 | |||||||
Adjusted EBITDA |
$ | 178,844 | $ | 202,152 | ||||
Historical (in 000s) | ||||||||
Fiscal | Fiscal | |||||||
Quarter Ended | Quarter Ended | |||||||
December 31, 2008 | December 31, 2007 | |||||||
Net income |
$ | 13,785 | $ | 25,138 | ||||
Gain on property disposal, net of tax |
| (3,783 | ) | |||||
Real estate related depreciation and amortization (1) |
25,144 | 24,284 | ||||||
FFO |
$ | 38,929 | $ | 45,639 | ||||
FFO per share (basic and diluted) |
$ | 0.43 | $ | 0.48 | ||||
(1) | Includes $0.3 million of depreciation expense included in discontinued operations for the fiscal quarter ended December 31, 2007. |
- 14 -
Historical (in 000s) | ||||||||
Year-Ended | Year-Ended | |||||||
December 31, 2008 | December 31, 2007 | |||||||
Net income |
$ | 52,929 | $ | 68,309 | ||||
Gain on property disposal, net of tax |
| (3,783 | ) | |||||
Real estate related depreciation and amortization (1) |
78,156 | 75,477 | ||||||
FFO |
$ | 131,085 | $ | 140,003 | ||||
FFO per share (basic and diluted) |
$ | 1.41 | $ | 1.49 | ||||
(1) | Includes $1.2 million of depreciation expense included in discontinued operations for the period from January 1, 2007 to December 31, 2007. |
| Non-Cash Ground Rent: We exclude the non-cash expense incurred from straight lining the rent from our ground lease obligations and the non-cash amortization of our favorable lease assets. | ||
| The impact of the non-cash amortization of the unfavorable contract liabilities recorded in conjunction with our acquisitions of the Bethesda Marriott Suites and the Chicago Marriott Downtown. The amortization of the unfavorable contract liabilities does not reflect the underlying performance of the Company. | ||
| Cumulative effect of a change in accounting principle: Infrequently, the Financial Accounting Standards Board (FASB) promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments because they do not reflect our actual performance for that period. | ||
| Gains from Early Extinguishment of Debt: We exclude the effect of gains recorded on the early extinguishment of debt because we believe that including them in FFO is not consistent with reflecting the ongoing performance of our remaining assets. | ||
| Impairment Losses: We exclude the effect of impairment losses recorded because we believe that including them in FFO is not consistent with reflecting the ongoing performance of our remaining assets. In addition, we believe that impairment charges are similar to gains or losses on dispositions and depreciation expense, both of which are also excluded from FFO. | ||
| Acquisition Costs: We exclude acquisition transaction costs expensed during the period from FFO because we believe that including these costs in FFO is not consistent with the underlying performance of the Company. The GAAP accounting treatment of acquisition costs was modified effective January 1, 2009 to require companies to expense acquisition costs as incurred. The previous GAAP accounting treatment was to capitalize acquisition costs. | ||
| Other Non-Cash and / or Non-Recurring Items: We exclude the effect of certain non-cash and / or non-recurring items from FFO because we believe that including these costs in FFO is not consistent with the underlying performance of the Company. |
Historical (in 000s) | ||||||||
Fiscal | Fiscal | |||||||
Quarter Ended | Quarter Ended | |||||||
December 31, 2008 | December 31, 2007 | |||||||
FFO |
$ | 38,929 | $ | 45,639 | ||||
Non-cash ground rent |
2,434 | 2,440 | ||||||
Non-cash amortization of unfavorable contract liabilities |
(529 | ) | (529 | ) | ||||
Impairment of favorable lease asset |
695 | | ||||||
Adjusted FFO |
$ | 41,529 | $ | 47,550 | ||||
Adjusted FFO per share (basic and diluted) |
$ | 0.46 | $ | 0.50 | ||||
- 15 -
Historical (in 000s) | ||||||||
Year-Ended | Year-Ended | |||||||
December 31, 2008 | December 31, 2007 | |||||||
FFO |
$ | 131,085 | $ | 140,003 | ||||
Gain on early extinguishment of debt |
| (359 | ) | |||||
Non-cash ground rent |
7,755 | 7,863 | ||||||
Non-cash amortization of unfavorable contract liabilities |
(1,719 | ) | (1,719 | ) | ||||
Impairment of favorable lease asset |
695 | | ||||||
Adjusted FFO |
$ | 137,816 | $ | 145,788 | ||||
Adjusted FFO per share (basic and diluted) |
$ | 1.48 | $ | 1.55 | ||||
- 16 -
Enterprise Value |
||||
Common equity capitalization (at 12/31/08 closing price of $5.07/share) |
$ | 461,993 | ||
Consolidated debt |
878,353 | |||
Cash and cash equivalents |
(13,830 | ) | ||
Total enterprise value |
$ | 1,326,516 | ||
Share Reconciliation |
||||
Common shares outstanding |
90,050 | |||
Unvested restricted stock held by management and employees |
606 | |||
Share grants under deferred compensation plan held by corporate officers |
467 | |||
Combined shares outstanding |
91,123 | |||
Interest | Outstanding | |||||||||||
Property | Rate | Term | Principal | Maturity | ||||||||
Courtyard Manhattan / Midtown East |
5.195 | % | Fixed | $ | 41,238 | December 2009 | ||||||
Salt Lake City Marriott Downtown |
5.500 | % | Fixed | 34,441 | January 2015 | |||||||
Courtyard Manhattan / Fifth Avenue |
6.480 | % | Fixed | 51,000 | June 2016 | |||||||
Marriott Griffin Gate Resort |
5.110 | % | Fixed | 28,434 | January 2010 | |||||||
Bethesda Marriott Suites |
1.420 | % | Variable | 5,000 | July 2010 | |||||||
Los Angeles Airport Marriott |
5.300 | % | Fixed | 82,600 | July 2015 | |||||||
Marriott Frenchmans Reef |
5.440 | % | Fixed | 62,240 | August 2015 | |||||||
Renaissance Worthington |
5.400 | % | Fixed | 57,400 | July 2015 | |||||||
Orlando Airport Marriott |
5.680 | % | Fixed | 59,000 | January 2016 | |||||||
Chicago Marriott Downtown |
5.975 | % | Fixed | 220,000 | April 2016 | |||||||
Austin Renaissance Hotel |
5.507 | % | Fixed | 83,000 | December 2016 | |||||||
Waverly Renaissance Hotel |
5.503 | % | Fixed | 97,000 | December 2016 | |||||||
Senior Unsecured Credit Facility |
2.840 | % | Variable | 57,000 | February 2011 | |||||||
Total Debt |
$ | 878,353 | ||||||||||
- 17 -
ADR | Occupancy | RevPAR | Hotel Adjusted EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||||
2008 | 2007 | B/(W) | 2008 | 2007 | B/(W) | 2008 | 2007 | B/(W) | 2008 | 2007 | B/(W) | |||||||||||||||||||||||||||||||||||||
Atlanta Alpharetta |
$ | 147.89 | $ | 153.70 | (3.8 | %) | 59.6 | % | 60.5 | % | (0.8 | %) | $ | 88.20 | $ | 92.95 | (5.1 | %) | 30.1 | % | 33.1 | % | (2.96 | %) | ||||||||||||||||||||||||
Westin Atlanta North |
$ | 136.74 | $ | 139.81 | (2.2 | %) | 61.5 | % | 66.5 | % | (5.0 | %) | $ | 84.13 | $ | 93.04 | (9.6 | %) | 25.4 | % | 31.0 | % | (5.62 | %) | ||||||||||||||||||||||||
Atlanta Waverly |
$ | 142.19 | $ | 145.31 | (2.1 | %) | 66.8 | % | 69.2 | % | (2.4 | %) | $ | 94.95 | $ | 100.53 | (5.5 | %) | 25.9 | % | 28.5 | % | (2.56 | %) | ||||||||||||||||||||||||
Renaissance Austin |
$ | 161.09 | $ | 156.57 | 2.9 | % | 68.6 | % | 74.7 | % | (6.1 | %) | $ | 110.50 | $ | 116.94 | (5.5 | %) | 29.3 | % | 28.7 | % | 0.60 | % | ||||||||||||||||||||||||
Bethesda Marriott Suites (1) |
$ | 191.34 | $ | 186.33 | 2.7 | % | 69.8 | % | 73.3 | % | (3.5 | %) | $ | 133.61 | $ | 136.56 | (2.2 | %) | 28.7 | % | 33.4 | % | (4.63 | %) | ||||||||||||||||||||||||
Boston Westin |
$ | 203.40 | $ | 210.08 | (3.2 | %) | 69.1 | % | 68.6 | % | 0.5 | % | $ | 140.55 | $ | 144.03 | (2.4 | %) | 29.7 | % | 30.4 | % | (0.66 | %) | ||||||||||||||||||||||||
Chicago Marriott |
$ | 208.74 | $ | 209.55 | (0.4 | %) | 73.1 | % | 78.9 | % | (5.9 | %) | $ | 152.51 | $ | 165.37 | (7.8 | %) | 26.1 | % | 29.6 | % | (3.54 | %) | ||||||||||||||||||||||||
Chicago Conrad |
$ | 238.42 | $ | 249.04 | (4.3 | %) | 75.6 | % | 75.4 | % | 0.2 | % | $ | 180.35 | $ | 187.83 | (4.0 | %) | 31.9 | % | 33.2 | % | (1.23 | %) | ||||||||||||||||||||||||
Courtyard Fifth Avenue |
$ | 300.36 | $ | 293.66 | 2.3 | % | 87.8 | % | 90.9 | % | (3.1 | %) | $ | 263.80 | $ | 266.90 | (1.2 | %) | 38.8 | % | 41.4 | % | (2.58 | %) | ||||||||||||||||||||||||
Courtyard Midtown East |
$ | 302.57 | $ | 302.02 | 0.2 | % | 88.3 | % | 89.7 | % | (1.4 | %) | $ | 267.17 | $ | 270.90 | (1.4 | %) | 42.6 | % | 44.4 | % | (1.82 | %) | ||||||||||||||||||||||||
Frenchmans Reef |
$ | 238.09 | $ | 228.24 | 4.3 | % | 79.8 | % | 84.0 | % | (4.1 | %) | $ | 190.07 | $ | 191.65 | (0.8 | %) | 18.8 | % | 22.3 | % | (3.53 | %) | ||||||||||||||||||||||||
Griffin Gate Marriott |
$ | 145.33 | $ | 137.91 | 5.4 | % | 64.1 | % | 64.5 | % | (0.4 | %) | $ | 93.10 | $ | 88.93 | 4.7 | % | 27.9 | % | 25.6 | % | 2.33 | % | ||||||||||||||||||||||||
Los Angeles Airport |
$ | 114.51 | $ | 117.24 | (2.3 | %) | 84.5 | % | 80.8 | % | 3.8 | % | $ | 96.79 | $ | 94.67 | 2.2 | % | 23.9 | % | 25.0 | % | (1.13 | %) | ||||||||||||||||||||||||
Oak Brook Hills (2) |
$ | 132.39 | $ | 137.47 | (3.7 | %) | 52.2 | % | 56.8 | % | (4.6 | %) | $ | 69.12 | $ | 78.06 | (11.5 | %) | 20.2 | % | 29.3 | % | (9.16 | %) | ||||||||||||||||||||||||
Orlando Airport Marriott |
$ | 117.43 | $ | 121.84 | (3.6 | %) | 72.8 | % | 75.8 | % | (3.0 | %) | $ | 85.48 | $ | 92.35 | (7.4 | %) | 29.0 | % | 31.3 | % | (2.28 | %) | ||||||||||||||||||||||||
Salt Lake City Marriott |
$ | 135.49 | $ | 136.49 | (0.7 | %) | 65.4 | % | 69.7 | % | (4.3 | %) | $ | 88.67 | $ | 95.20 | (6.9 | %) | 27.9 | % | 29.9 | % | (2.00 | %) | ||||||||||||||||||||||||
The Lodge at Sonoma |
$ | 224.47 | $ | 226.46 | (0.9 | %) | 69.3 | % | 70.0 | % | (0.7 | %) | $ | 155.54 | $ | 158.42 | (1.8 | %) | 20.4 | % | 22.5 | % | (2.03 | %) | ||||||||||||||||||||||||
Torrance Marriott South Bay |
$ | 124.03 | $ | 120.03 | 3.3 | % | 78.3 | % | 80.5 | % | (2.2 | %) | $ | 97.10 | $ | 96.63 | 0.5 | % | 28.8 | % | 28.2 | % | 0.63 | % | ||||||||||||||||||||||||
Vail Marriott |
$ | 237.18 | $ | 234.23 | 1.3 | % | 64.4 | % | 64.2 | % | 0.2 | % | $ | 152.80 | $ | 150.45 | 1.6 | % | 29.2 | % | 27.3 | % | 1.89 | % | ||||||||||||||||||||||||
Renaissance Worthington |
$ | 174.46 | $ | 173.78 | 0.4 | % | 73.3 | % | 75.0 | % | (1.8 | %) | $ | 127.82 | $ | 130.39 | (2.0 | %) | 28.4 | % | 30.0 | % | (1.60 | %) |
1) | Hotel Adjusted EBITDA Margins for 2007 benefited from the elimination of 2007 incentive management fees as a result of the 2007 debt refinancing. | |
2) | Hotel Adjusted EBITDA Margins for 2007 benefited from $0.8 million in yield support at Oak Brook Hills. |
- 18 -
ADR | Occupancy | RevPAR | Hotel Adjusted EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||||
4Q 2008 | 4Q 2007 | B/(W) | 4Q 2008 | 4Q 2007 | B/(W) | 4Q 2008 | 4Q 2007 | B/(W) | 4Q 2008 | 4Q 2007 | B/(W) | |||||||||||||||||||||||||||||||||||||
Atlanta Alpharetta |
$ | 145.66 | $ | 151.11 | (3.6 | %) | 55.0 | % | 59.5 | % | (4.4 | %) | $ | 80.13 | $ | 89.83 | (10.8 | %) | 27.1 | % | 32.7 | % | (5.64 | %) | ||||||||||||||||||||||||
Westin Atlanta North (1) |
$ | 124.51 | $ | 142.34 | (12.5 | %) | 61.0 | % | 63.2 | % | (2.2 | %) | $ | 75.98 | $ | 89.95 | (15.5 | %) | 21.6 | % | 33.1 | % | (11.43 | %) | ||||||||||||||||||||||||
Atlanta Waverly |
$ | 141.10 | $ | 150.50 | (6.2 | %) | 59.6 | % | 67.6 | % | (8.0 | %) | $ | 84.04 | $ | 101.67 | (17.3 | %) | 28.4 | % | 30.3 | % | (1.91 | %) | ||||||||||||||||||||||||
Renaissance Austin |
$ | 166.44 | $ | 159.98 | 4.0 | % | 66.0 | % | 69.3 | % | (3.3 | %) | $ | 109.77 | $ | 110.81 | (0.9 | %) | 31.4 | % | 30.1 | % | 1.32 | % | ||||||||||||||||||||||||
Bethesda Marriott Suites (2) |
$ | 191.04 | $ | 192.20 | (0.6 | %) | 64.7 | % | 72.6 | % | (7.9 | %) | $ | 123.67 | $ | 139.62 | (11.4 | %) | 29.7 | % | 32.6 | % | (2.90 | %) | ||||||||||||||||||||||||
Boston Westin (1) |
$ | 215.13 | $ | 229.11 | (6.1 | %) | 67.4 | % | 67.4 | % | 0.1 | % | $ | 145.08 | $ | 154.35 | (6.0 | %) | 31.9 | % | 32.2 | % | (0.26 | %) | ||||||||||||||||||||||||
Chicago Marriott |
$ | 216.57 | $ | 227.73 | (4.9 | %) | 72.9 | % | 75.7 | % | (2.8 | %) | $ | 157.80 | $ | 172.30 | (8.4 | %) | 26.9 | % | 34.0 | % | (7.18 | %) | ||||||||||||||||||||||||
Chicago Conrad (1) |
$ | 256.08 | $ | 279.80 | (8.5 | %) | 75.6 | % | 76.3 | % | (0.7 | %) | $ | 193.53 | $ | 213.47 | (9.3 | %) | 36.3 | % | 37.3 | % | (1.00 | %) | ||||||||||||||||||||||||
Courtyard Fifth Avenue |
$ | 326.51 | $ | 368.39 | (11.4 | %) | 84.7 | % | 89.1 | % | (4.4 | %) | $ | 276.60 | $ | 328.30 | (15.7 | %) | 44.8 | % | 48.3 | % | (3.49 | %) | ||||||||||||||||||||||||
Courtyard Midtown East |
$ | 333.70 | $ | 376.80 | (11.4 | %) | 83.7 | % | 89.6 | % | (5.8 | %) | $ | 279.38 | $ | 337.45 | (17.2 | %) | 46.4 | % | 50.4 | % | (3.94 | %) | ||||||||||||||||||||||||
Frenchmans Reef (1) |
$ | 197.91 | $ | 194.17 | 1.9 | % | 68.9 | % | 77.6 | % | (8.7 | %) | $ | 136.41 | $ | 150.67 | (9.5 | %) | (4.7 | %) | 8.5 | % | (13.22 | %) | ||||||||||||||||||||||||
Griffin Gate Marriott |
$ | 158.24 | $ | 147.86 | 7.0 | % | 61.9 | % | 61.1 | % | 0.8 | % | $ | 97.92 | $ | 90.36 | 8.4 | % | 32.9 | % | 27.8 | % | 5.08 | % | ||||||||||||||||||||||||
Los Angeles Airport |
$ | 113.43 | $ | 115.61 | (1.9 | %) | 79.9 | % | 80.0 | % | 0.0 | % | $ | 90.65 | $ | 92.44 | (1.9 | %) | 23.5 | % | 22.8 | % | 0.64 | % | ||||||||||||||||||||||||
Oak Brook Hills (3) |
$ | 130.64 | $ | 137.79 | (5.2 | %) | 51.2 | % | 55.7 | % | (4.5 | %) | $ | 66.85 | $ | 76.74 | (12.9 | %) | 19.0 | % | 28.6 | % | (9.53 | %) | ||||||||||||||||||||||||
Orlando Airport Marriott |
$ | 107.56 | $ | 120.25 | (10.6 | %) | 69.7 | % | 70.3 | % | (0.6 | %) | $ | 74.98 | $ | 84.55 | (11.3 | %) | 25.2 | % | 31.3 | % | (6.14 | %) | ||||||||||||||||||||||||
Salt Lake City Marriott |
$ | 135.27 | $ | 133.20 | 1.6 | % | 54.5 | % | 65.7 | % | (11.2 | %) | $ | 73.77 | $ | 87.53 | (15.7 | %) | 22.5 | % | 27.1 | % | (4.58 | %) | ||||||||||||||||||||||||
The Lodge at Sonoma |
$ | 222.85 | $ | 233.42 | (4.5 | %) | 67.1 | % | 71.5 | % | (4.4 | %) | $ | 149.54 | $ | 166.91 | (10.4 | %) | 21.1 | % | 25.4 | % | (4.29 | %) | ||||||||||||||||||||||||
Torrance Marriott South Bay |
$ | 119.57 | $ | 123.93 | (3.5 | %) | 69.8 | % | 79.7 | % | (9.9 | %) | $ | 83.44 | $ | 98.80 | (15.6 | %) | 26.0 | % | 30.3 | % | (4.25 | %) | ||||||||||||||||||||||||
Vail Marriott (1) |
$ | 194.78 | $ | 195.95 | (0.6 | %) | 53.9 | % | 57.8 | % | (3.9 | %) | $ | 105.01 | $ | 113.30 | (7.3 | %) | 16.9 | % | 8.5 | % | 8.42 | % | ||||||||||||||||||||||||
Renaissance Worthington |
$ | 169.82 | $ | 179.63 | (5.5 | %) | 72.0 | % | 72.4 | % | (0.4 | %) | $ | 122.35 | $ | 130.07 | (5.9 | %) | 29.8 | % | 30.6 | % | (0.80 | %) |
1) | The hotel reports results on a monthly basis. The figures presented are based on the Companys reporting calendar for the fourth quarter and include the months of September, October, November, and December. | |
2) | Hotel Adjusted EBITDA Margins for the fourth quarter of 2007 benefited from the elimination of 2007 incentive management fees as a result of the 2007 debt refinancing. | |
3) | Hotel Adjusted EBITDA Margins for the fourth quarter of 2007 benefited from $0.3 million in yield support at Oak Brook Hills. |
- 19 -
Full Year 2008 | ||||||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||||||
Total | Net Income / | Non-Cash | Hotel Adjusted | |||||||||||||||||||||
Revenues | (Loss) | Depreciation | Interest Expense | Adjustments (1) | EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 14,909 | $ | 3,466 | $ | 1,028 | $ | | $ | | $ | 4,494 | ||||||||||||
Westin Atlanta North |
$ | 18,346 | $ | 1,810 | $ | 2,846 | $ | | $ | | $ | 4,656 | ||||||||||||
Atlanta Waverly |
$ | 35,173 | $ | (457 | ) | $ | 4,112 | $ | 5,468 | $ | | $ | 9,123 | |||||||||||
Renaissance Austin |
$ | 35,686 | $ | 2,212 | $ | 3,582 | $ | 4,674 | $ | | $ | 10,468 | ||||||||||||
Bethesda Marriott Suites |
$ | 17,584 | $ | (3,729 | ) | $ | 2,109 | $ | 325 | $ | 6,348 | $ | 5,053 | |||||||||||
Boston Westin |
$ | 72,993 | $ | 9,201 | $ | 11,987 | $ | | $ | 507 | $ | 21,695 | ||||||||||||
Chicago Marriott |
$ | 96,238 | $ | 1,125 | $ | 12,277 | $ | 13,308 | $ | (1,581 | ) | $ | 25,129 | |||||||||||
Chicago Conrad |
$ | 27,440 | $ | 4,356 | $ | 4,410 | $ | | $ | | $ | 8,766 | ||||||||||||
Courtyard Fifth Avenue |
$ | 18,054 | $ | 1,421 | $ | 1,906 | $ | 3,480 | $ | 207 | $ | 7,014 | ||||||||||||
Courtyard Midtown East |
$ | 31,671 | $ | 9,016 | $ | 2,224 | $ | 2,239 | $ | | $ | 13,479 | ||||||||||||
Frenchmans Reef |
$ | 54,715 | $ | 3,820 | $ | 2,971 | $ | 3,484 | $ | | $ | 10,275 | ||||||||||||
Griffin Gate Marriott |
$ | 28,219 | $ | 3,107 | $ | 3,254 | $ | 1,504 | $ | 2 | $ | 7,867 | ||||||||||||
Los Angeles Airport |
$ | 59,065 | $ | 4,207 | $ | 5,363 | $ | 4,528 | $ | | $ | 14,098 | ||||||||||||
Oak Brook Hills |
$ | 24,562 | $ | 1,028 | $ | 3,385 | $ | | $ | 542 | $ | 4,955 | ||||||||||||
Orlando Airport Marriott |
$ | 24,357 | $ | 567 | $ | 3,076 | $ | 3,424 | $ | | $ | 7,067 | ||||||||||||
Salt Lake City Marriott |
$ | 24,915 | $ | 2,962 | $ | 2,057 | $ | 1,938 | $ | | $ | 6,957 | ||||||||||||
The Lodge at Sonoma |
$ | 18,140 | $ | 1,515 | $ | 2,192 | $ | | $ | | $ | 3,707 | ||||||||||||
Torrance Marriott South Bay |
$ | 25,110 | $ | 4,046 | $ | 3,197 | $ | | $ | | $ | 7,243 | ||||||||||||
Vail Marriott |
$ | 27,800 | $ | 5,124 | $ | 2,993 | $ | | $ | | $ | 8,117 | ||||||||||||
Renaissance Worthington |
$ | 38,256 | $ | 4,488 | $ | 3,186 | $ | 3,176 | $ | 12 | $ | 10,862 |
(1) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of our favorable lease assets and the non-cash amortization of our unfavorable contract liabilities. |
- 20 -
Full Year 2007 | ||||||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||||||
Total | Net Income / | Non-Cash | Hotel Adjusted | |||||||||||||||||||||
Revenues | (Loss) | Depreciation | Interest Expense | Adjustments (1) | EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 16,019 | $ | 4,103 | $ | 1,200 | $ | | $ | | $ | 5,303 | ||||||||||||
Westin Atlanta North |
$ | 19,378 | $ | 3,367 | $ | 2,640 | $ | | $ | | $ | 6,007 | ||||||||||||
Atlanta Waverly |
$ | 37,985 | $ | 1,499 | $ | 3,929 | $ | 5,398 | $ | | $ | 10,826 | ||||||||||||
Renaissance Austin |
$ | 36,340 | $ | 2,498 | $ | 3,307 | $ | 4,637 | $ | | $ | 10,442 | ||||||||||||
Bethesda Marriott Suites (2) |
$ | 17,985 | $ | (4,429 | ) | $ | 3,011 | $ | 1,038 | $ | 6,383 | $ | 6,003 | |||||||||||
Boston Westin (3) |
$ | 71,975 | $ | 11,039 | $ | 10,359 | $ | | $ | 467 | $ | 21,865 | ||||||||||||
Chicago Marriott |
$ | 103,341 | $ | 8,422 | $ | 10,285 | $ | 13,515 | $ | (1,581 | ) | $ | 30,641 | |||||||||||
Chicago Conrad |
$ | 28,532 | $ | 5,723 | $ | 3,744 | $ | | $ | | $ | 9,467 | ||||||||||||
Courtyard Fifth Avenue |
$ | 18,221 | $ | 1,952 | $ | 1,874 | $ | 3,410 | $ | 313 | $ | 7,549 | ||||||||||||
Courtyard Midtown East |
$ | 32,090 | $ | 9,685 | $ | 2,286 | $ | 2,271 | $ | | $ | 14,242 | ||||||||||||
Frenchmans Reef |
$ | 54,724 | $ | 6,150 | $ | 2,595 | $ | 3,465 | $ | | $ | 12,210 | ||||||||||||
Griffin Gate Marriott |
$ | 27,113 | $ | 2,440 | $ | 2,946 | $ | 1,536 | $ | 6 | $ | 6,928 | ||||||||||||
Los Angeles Airport |
$ | 58,896 | $ | 5,091 | $ | 5,119 | $ | 4,513 | $ | | $ | 14,723 | ||||||||||||
Oak Brook Hills |
$ | 27,172 | $ | 3,008 | $ | 4,422 | $ | | $ | 542 | $ | 7,972 | ||||||||||||
Orlando Airport Marriott |
$ | 25,891 | $ | 1,753 | $ | 2,840 | $ | 3,510 | $ | | $ | 8,103 | ||||||||||||
Salt Lake City Marriott |
$ | 26,375 | $ | 2,774 | $ | 3,051 | $ | 2,067 | $ | | $ | 7,892 | ||||||||||||
The Lodge at Sonoma |
$ | 18,822 | $ | 2,226 | $ | 2,002 | $ | | $ | | $ | 4,228 | ||||||||||||
Torrance Marriott South Bay |
$ | 25,242 | $ | 4,168 | $ | 2,954 | $ | | $ | | $ | 7,122 | ||||||||||||
Vail Marriott |
$ | 28,103 | $ | 4,804 | $ | 2,870 | $ | | $ | | $ | 7,674 | ||||||||||||
Renaissance Worthington |
$ | 39,804 | $ | 5,939 | $ | 2,798 | $ | 3,191 | $ | 11 | $ | 11,939 |
(1) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of our favorable lease assets, the non-cash amortization of our unfavorable contract liabilities and gains from the early extinguishment of debt. | |
(2) | Hotel Adjusted EBITDA for 2007 benefited from the elimination of 2007 incentive management fees as a result of the 2007 debt refinancing. | |
(3) | Amount includes the results of operations of the hotel under previous ownership for the comparable period to our ownership periods. |
- 21 -
Fourth Quarter 2008 | ||||||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||||||
Total | Net Income / | Non-Cash | Hotel Adjusted | |||||||||||||||||||||
Revenues | (Loss) | Depreciation | Interest Expense | Adjustments (1) | EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 4,603 | $ | 891 | $ | 355 | $ | | $ | | $ | 1,246 | ||||||||||||
Westin Atlanta North (2) |
$ | 5,921 | $ | 396 | $ | 885 | $ | | $ | | $ | 1,281 | ||||||||||||
Atlanta Waverly |
$ | 10,826 | $ | 49 | $ | 1,293 | $ | 1,728 | $ | | $ | 3,070 | ||||||||||||
Renaissance Austin |
$ | 11,547 | $ | 939 | $ | 1,195 | $ | 1,494 | $ | | $ | 3,628 | ||||||||||||
Bethesda Marriott Suites |
$ | 5,390 | $ | (1,108 | ) | $ | 649 | $ | 108 | $ | 1,952 | $ | 1,601 | |||||||||||
Boston Westin (2) |
$ | 26,676 | $ | 4,574 | $ | 3,786 | $ | | $ | 157 | $ | 8,517 | ||||||||||||
Chicago Marriott |
$ | 32,443 | $ | 646 | $ | 4,271 | $ | 4,287 | $ | (486 | ) | $ | 8,718 | |||||||||||
Chicago Conrad (2) |
$ | 9,717 | $ | 2,096 | $ | 1,428 | $ | | $ | | $ | 3,524 | ||||||||||||
Courtyard Fifth Avenue |
$ | 6,049 | $ | 890 | $ | 592 | $ | 1,111 | $ | 116 | $ | 2,709 | ||||||||||||
Courtyard Midtown East |
$ | 10,491 | $ | 3,469 | $ | 695 | $ | 709 | $ | | $ | 4,873 | ||||||||||||
Frenchmans Reef (2) |
$ | 13,530 | $ | (2,704 | ) | $ | 954 | $ | 1,112 | $ | | $ | (638 | ) | ||||||||||
Griffin Gate Marriott |
$ | 9,863 | $ | 1,711 | $ | 1,052 | $ | 479 | $ | (2 | ) | $ | 3,240 | |||||||||||
Los Angeles Airport |
$ | 18,008 | $ | 1,140 | $ | 1,648 | $ | 1,442 | $ | | $ | 4,230 | ||||||||||||
Oak Brook Hills |
$ | 7,568 | $ | 211 | $ | 1,064 | $ | | $ | 167 | $ | 1,442 | ||||||||||||
Orlando Airport Marriott |
$ | 6,901 | $ | (333 | ) | $ | 977 | $ | 1,093 | $ | | $ | 1,737 | |||||||||||
Salt Lake City Marriott |
$ | 6,794 | $ | 264 | $ | 684 | $ | 584 | $ | | $ | 1,532 | ||||||||||||
The Lodge at Sonoma |
$ | 5,492 | $ | 475 | $ | 682 | $ | | $ | | $ | 1,157 | ||||||||||||
Torrance Marriott South Bay |
$ | 7,098 | $ | 853 | $ | 995 | $ | | $ | | $ | 1,848 | ||||||||||||
Vail Marriott (2) |
$ | 6,921 | $ | 238 | $ | 932 | $ | | $ | | $ | 1,170 | ||||||||||||
Renaissance Worthington |
$ | 12,119 | $ | 1,591 | $ | 1,007 | $ | 1,007 | $ | 3 | $ | 3,608 |
(1) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of our favorable lease assets and the non-cash amortization of our unfavorable contract liabilities. | |
(2) | The hotel reports results on a monthly basis. The figures presented are based on the Companys reporting calendar for the fourth quarter and include the months of September, October, November and December. |
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Fourth Quarter 2007 | ||||||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||||||
Total | Net Income / | Non-Cash | Hotel Adjusted | |||||||||||||||||||||
Revenues | (Loss) | Depreciation | Interest Expense | Adjustments (1) | EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 5,139 | $ | 1,386 | $ | 295 | $ | | $ | | $ | 1,681 | ||||||||||||
Westin Atlanta North (2) |
$ | 6,521 | $ | 1,297 | $ | 858 | $ | | $ | | $ | 2,155 | ||||||||||||
Atlanta Waverly |
$ | 13,006 | $ | 967 | $ | 1,274 | $ | 1,696 | $ | | $ | 3,937 | ||||||||||||
Renaissance Austin |
$ | 11,486 | $ | 933 | $ | 1,071 | $ | 1,453 | $ | | $ | 3,457 | ||||||||||||
Bethesda Marriott Suites (3) |
$ | 5,858 | $ | (1,150 | ) | $ | 984 | $ | 111 | $ | 1,964 | $ | 1,909 | |||||||||||
Boston Westin (2) |
$ | 25,695 | $ | 4,512 | $ | 3,593 | $ | | $ | 164 | $ | 8,269 | ||||||||||||
Chicago Marriott |
$ | 33,428 | $ | 4,333 | $ | 3,228 | $ | 4,307 | $ | (487 | ) | $ | 11,381 | |||||||||||
Chicago Conrad (2) |
$ | 10,810 | $ | 2,883 | $ | 1,145 | $ | | $ | | $ | 4,028 | ||||||||||||
Courtyard Fifth Avenue |
$ | 7,055 | $ | 1,612 | $ | 597 | $ | 1,101 | $ | 95 | $ | 3,405 | ||||||||||||
Courtyard Midtown East |
$ | 12,537 | $ | 4,830 | $ | 769 | $ | 718 | $ | | $ | 6,317 | ||||||||||||
Frenchmans Reef (2) |
$ | 14,998 | $ | (719 | ) | $ | 884 | $ | 1,112 | $ | | $ | 1,277 | |||||||||||
Griffin Gate Marriott |
$ | 9,142 | $ | 1,033 | $ | 1,019 | $ | 485 | $ | 2 | $ | 2,539 | ||||||||||||
Los Angeles Airport |
$ | 18,282 | $ | 1,015 | $ | 1,710 | $ | 1,452 | $ | | $ | 4,177 | ||||||||||||
Oak Brook Hills |
$ | 8,627 | $ | 1,212 | $ | 1,087 | $ | | $ | 167 | $ | 2,466 | ||||||||||||
Orlando Airport Marriott |
$ | 7,865 | $ | 390 | $ | 947 | $ | 1,126 | $ | | $ | 2,463 | ||||||||||||
Salt Lake City Marriott |
$ | 7,792 | $ | 493 | $ | 980 | $ | 640 | $ | | $ | 2,113 | ||||||||||||
The Lodge at Sonoma |
$ | 6,432 | $ | 966 | $ | 666 | $ | | $ | | $ | 1,632 | ||||||||||||
Torrance Marriott South Bay |
$ | 8,403 | $ | 1,562 | $ | 982 | $ | | $ | | $ | 2,544 | ||||||||||||
Vail Marriott (2) |
$ | 7,618 | $ | (270 | ) | $ | 916 | $ | | $ | | $ | 646 | |||||||||||
Renaissance Worthington |
$ | 13,564 | $ | 2,176 | $ | 940 | $ | 1,029 | $ | 4 | $ | 4,149 |
(1) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of our favorable lease assets, the non-cash amortization of our unfavorable contract liabilities and gains from the early extinguishment of debt. | |
(2) | The hotel reports results on a monthly basis. The figures presented are based on the Companys reporting calendar for the fourth quarter and include the months of September, October, November, and December. | |
(3) | Hotel Adjusted EBITDA for the fourth quarter of 2007 benefited from the elimination of 2007 incentive management fees as a result of the 2007 debt refinancing. |
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