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8-K - FORM 8-K - DiamondRock Hospitality Co | c20344e8vk.htm |
Exhibit 99.1
COMPANY CONTACT
Chris King
(240) 744-1150
(240) 744-1150
FOR IMMEDIATE RELEASE
MONDAY, JULY 25, 2011
DIAMONDROCK HOSPITALITY COMPANY REPORTS SECOND QUARTER RESULTS
BETHESDA, Maryland, Monday July 25, 2011 DiamondRock Hospitality Company (the Company) (NYSE:
DRH) today announced results of operations for its second fiscal quarter ending June 17, 2011. The
Company is a lodging focused real estate investment trust that owns 26 premium hotels in North
America and holds a senior mortgage loan secured by another premium hotel.
Second Quarter 2011 Highlights
| Pro Forma RevPAR: The Companys Pro Forma RevPAR was $124.03, an increase of 6.4% from the comparable period in 2010. Pro Forma RevPAR is calculated for the 25 hotels owned by the Company as of June 17, 2011 as if these hotels were owned since January 1, 2010 but excludes the operating results of the Frenchmans Reef & Morning Star Marriott Beach Resort due to the impact of the ongoing extensive renovation of the hotel in 2011. |
| Pro Forma Hotel Adjusted EBITDA Margins: The Companys Pro Forma Hotel Adjusted EBITDA margin was 27.87%, an increase of 104 basis points from the comparable period in 2010. Pro Forma Hotel Adjusted EBITDA margin is calculated for the 25 hotels owned by the Company as of June 17, 2011 as if these hotels were owned since January 1, 2010 but excludes the operating results of the Frenchmans Reef & Morning Star Marriott Beach Resort. |
| Adjusted EBITDA: The Companys Adjusted EBITDA was $41.1 million. |
| Adjusted FFO: The Companys Adjusted FFO was $25.6 million and Adjusted FFO per diluted share was $0.15. |
| Acquisition of the JW Marriott Denver: On May 19, 2011, the Company acquired the JW Marriott Denver at Cherry Creek for approximately $74 million. |
| Acquisition of the Lexington Hotel NYC: On June 1, 2011, the Company acquired the Lexington Hotel New York for approximately of $337 million. |
| Acquisition of the Courtyard Denver: On July 22, 2011, the Company acquired the Courtyard Denver Downtown for approximately $46 million. |
| Hilton Minneapolis Mortgage Loan: On April 15, 2011, the Company received $100 million of proceeds from a new non-recourse loan secured by the Hilton Minneapolis. |
| Credit Facility Amendment: On June 2, 2011, the Company amended its $200 million corporate credit facility to reduce the interest rate, lower certain fees, and extend the term for an additional year. |
| Dividends: The Company declared a quarterly dividend of $0.08 per share during the second quarter. |
Mark W. Brugger, Chief Executive Officer of DiamondRock Hospitality Company, stated, The second
quarter represented the continued successful execution of our strategy and evidenced both strong
internal and external growth for DiamondRock. Our operating results reflect strengthening of
lodging fundamentals, which should continue to be strong against a
comparison to cyclical trough
results as well as constrained new hotel supply. Since last year, we have completed or committed
$900 million of high-quality investments with more than half of those investments in Midtown New
York. We continue to see excellent acquisition opportunities but remain focused on maximizing value
from our existing portfolio.
We are pleased with our portfolios room revenue performance, particularly in light of difficult
comparisons and convention calendar challenges in our two largest group markets, Chicago and
Boston. Group booking pace in these two key markets is up over 8% for the balance of 2011 and 14%
for 2012. Overall margin expansion was strong as our cost containment efforts maintained profits
even as group banquet contribution moderated, stated John Williams, President and Chief Operating
Officer of DiamondRock Hospitality Company. Our $45 million repositioning of Frenchmans Reef is
currently on-time and on-budget, albeit with estimated operating profit displacement increasing $1
million as we temporarily added costs to keep our customers happy during the renovation. The group
meeting planner reaction has been better than expected and group pace is up 20% in the fourth
quarter of 2011 and 55% for 2012.
Operating Results
Please see Certain Definitions and Non-GAAP Financial Measures attached to this press release
for an explanation of the terms EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA Margins, FFO
and Adjusted FFO. Moreover, the discussions of Pro Forma RevPAR and Pro Forma Hotel Adjusted
EBITDA Margins assume the 25 hotels owned by the Company as of June 17, 2011 were owned since
January 1, 2010 but exclude the operating results of the Frenchmans Reef & Morning Star Marriott
Beach Resort (Frenchmans Reef) due to the impact of the extensive renovation of the hotel in
2011, which includes partial closure of the hotel.
For the second quarter beginning March 26, 2011 and ending June 17, 2011, the Company reported the
following:
| Pro Forma RevPAR increase of 6.4% and Pro Forma Hotel Adjusted EBITDA margin increase of 104 basis points compared to the comparable period in 2010. |
| Revenues of $169.5 million compared to $151.1 million for the comparable period in 2010. |
| Adjusted EBITDA of $41.1 million compared to $35.8 million for the comparable period in 2010. |
| Adjusted FFO of $25.6 million and Adjusted FFO per diluted share of $0.15 based on 167.4 million diluted weighted average shares compared to $21.6 million and $0.16, respectively, for the comparable period in 2010. |
| Net loss of $0.6 million (or $0.00 per diluted share) compared to net income of $0.8 million (or $0.01 per diluted share) for the comparable period in 2010. |
The second quarter Pro Forma RevPAR increase of 6.4% (from $116.60 to $124.03) was driven by a 4.2%
increase in the average daily rate (from $157.14 to $163.78) and a 1.5 percentage point increase in
occupancy (from 74.2 percent to 75.7 percent). Second quarter Pro Forma Hotel Adjusted EBITDA
margins increased 104 basis points (from 26.83% to 27.87%) from the comparable period in 2010.
For the period from January 1, 2011 to June 17, 2011, the Company reported the following:
| Pro Forma RevPAR increase of 5.6% and Pro Forma Hotel Adjusted EBITDA margin increase of 82 basis points compared to the comparable period in 2010. |
| Revenues of $291.8 million compared to $264.0 million for the comparable period in 2010. |
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| Adjusted EBITDA of $59.9 million compared to $54.3 million for the comparable period in 2010. |
| Adjusted FFO of $37.4 million and Adjusted FFO per diluted share of $0.23 based on 165.7 million diluted weighted average shares compared to $33.6 million and $0.25, respectively, for the comparable period in 2010. |
| Net loss of $11.6 million (or $0.07 per diluted share) compared to $7.5 million (or $0.06 per diluted share) for the comparable period in 2010. |
The year-to-date Pro Forma RevPAR increase of 5.6% (from $104.33 to $110.19) was driven by a 4.4%
increase in the average daily rate (from $148.09 to $154.56) and a 0.8 percentage point increase in
occupancy (from 70.5 percent to 71.3 percent). Year-to-date Pro Forma Hotel Adjusted EBITDA margins
increased 82 basis points (from 22.68% to 23.50%) from the comparable period in 2010.
Hotel Acquisitions
JW Marriott Denver Cherry Creek. On May 19, 2011, the Company completed the acquisition of the
196-room JW Marriott Denver Cherry Creek for approximately $74 million. The acquisition was funded
with corporate cash and the assumption of a $42.4 million mortgage loan. The mortgage loan bears a
fixed interest rate of 6.47% and matures in July 2015. The JW
Marriott was acquired at an 11.5
times multiple of 2012 forecasted EBITDA. The hotel is consistently the market leader among its
competitive set and is well-positioned to continue capturing Denvers high-end demand. Earlier this
year, the JW Marriott completed a $5.0 million renovation of its guestrooms, which feature
four-fixture marble bathrooms, the hotels 8,400 square feet of meeting space and new
state-of-the-art fitness center. With luxury finishes and a 2011 RevPAR of $165, this acquisition
enhances the overall quality of the DiamondRock portfolio. The Company entered into a new
management agreement with Sage Hospitality to continue managing the hotel. The Company is also
investigating a potentially valuable return on investment opportunity to enhance the meeting space
at the hotel.
The Lexington Hotel New York City. On June 1, 2011, the Company completed the acquisition of the
712-room Lexington Hotel New York for approximately $337 million. The acquisition was funded with
corporate cash and a $115 million draw on the Companys credit facility. The Lexington Hotel was
acquired at a 13.5 times multiple of 2012 forecasted EBITDA. The hotels forecasted 2011 RevPAR of
$198 is over 60% above the Companys portfolio average and the hotel is expected to generate Hotel
Adjusted EBITDA margins that are over 1200 basis points higher than the portfolio average. The
acquisition provides the Company with additional exposure to the dynamic Manhattan market and
offers rebranding potential. The Company entered into a new management agreement with Highgate
Hotels to continue managing the hotel. The Company is currently exploring opportunities to create
significant value by re-branding and/or repositioning the hotel.
Courtyard Denver Downtown. On July 22, 2011, the Company completed the acquisition of the 177-room
Courtyard Denver Downtown for approximately $46 million. The acquisition was funded with corporate
cash, a draw on the Companys credit facility and the assumption of a $27.2 million mortgage loan.
The loan bears interest at 6.26% and is prepayable beginning in February 2012. The hotel is
consistently ranked first in its competitive set of downtown Denver hotels. The hotel, created
from a conversion of a historic department store, enjoys a superb location in downtown Denver and
is centrally located on the 16th Street Pedestrian Mall in the heart of Denvers Central
Business District. With its premier location and strong brand, the hotel is able to charge
full-service average daily rates with the lower limitedservice cost structure. The hotel has
achieved a RevPAR premium to the nearest full-service Marriott for seven consecutive years. Earlier
this year, the hotel completed an extensive guest room renovation and is in excellent physical
condition. The Company expects the hotel to generate 2012 EBITDA of approximately $3.8 million.
- 3 -
Credit Facility Amendment
On June 2, 2011, the Company amended its $200 million corporate credit facility. The amendment
removed the LIBOR floor from the interest rate on borrowings, lowered unused fees and reduced the
cost to extend the credit
facility. Interest continues to accrue on borrowings at varying rates, based upon LIBOR plus an
applicable margin. The applicable margin is now based on the Companys ratio of net indebtedness
to EBITDA. In addition, the maturity date of the credit facility was extended by one year to
August 2014. The Company has an additional one year extension option to August 2015, subject to the
satisfaction of customary conditions and the payment of applicable fees. At the end of the second
fiscal quarter, the Company had $115 million in outstanding borrowings on the credit facility
bearing interest at 2.45%. Subsequent to the end of the second fiscal quarter, the Company
borrowed an additional $15 million on the credit facility to fund a portion of its acquisition of
the Courtyard Denver Downtown. Based on the Companys current ratio of net indebtedness to EBITDA,
future borrowings under the facility are expected to bear interest at LIBOR plus 300 basis points.
Hilton Minneapolis Financing
On April 15, 2011, the Company completed a new $100 million non-recourse loan secured by the Hilton
Minneapolis. The loan has a 10-year term, bears interest at an annual fixed rate of 5.46% and
amortizes on a 25-year schedule. The Company acquired the Hilton Minneapolis in June 2010 for
approximately $157 million and the hotel was previously unencumbered by debt. The Company used the
proceeds from this loan toward the purchase of the Lexington Hotel New York.
Dividends
The Companys Board of Directors declared a quarterly dividend of $0.08 per share to stockholders
of record as of June 17, 2011. The dividend was paid on June 27, 2011.
Conrad Chicago Performance Termination
The Conrad Chicago failed the performance criteria under the Companys management agreement with
Hilton. The Company is currently in negotiations with Hilton and other global brand companies about
the optimal long-term solution for the branding and management of the hotel.
Capital Expenditures
During 2011, the Company plans to commence or complete approximately $65 million of capital
improvements, approximately $40 million of which will be funded from corporate cash and the
remainder from restricted cash (reserves held by hotel managers). The Companys estimated 2011
capital expenditures include approximately $37 million for the 2011 portion of the Frenchmans Reef
capital investment program ($32 million from corporate cash and existing property reserves and $5
million from Marriott). The Company has spent approximately $21.3 million on capital improvements
as of June 17, 2011.
The Company is continuing to execute on the comprehensive $45 million capital investment program at
Frenchmans Reef. The majority of the renovation and repositioning program commenced in early May
2011 when two of the resorts four buildings (representing approximately 300 guestrooms) closed.
The Company currently expects $6.5 million of renovation disruption from the project. The
renovation disruption estimate is $1.0 million above the Companys estimate at the end of the first
fiscal quarter due to the hotel expecting to incur incremental operating cost during the renovation
which will include costs to resolve guest satisfaction during the construction period and
additional energy costs.
Allerton Hotel Mortgage Loan Update
The Company holds the senior mortgage loan secured by the Allerton Hotel, located in downtown
Chicago, Illinois. The loan matured in January 2010 and is in default. On May 5, 2011, the
borrower under the loan filed for bankruptcy protection in the Northern District of Illinois. The
senior mortgage loan held by the Company is secured by substantially all of the assets of the
borrower, including, without limitation, the Allerton Hotel. The filing of the bankruptcy case had
the effect of, among other things, automatically staying the foreclosure proceedings that the
Company had previously filed against the borrower. While the Company intends to
continue to vigorously pursue its rights in the bankruptcy case, it is too early in the process to
determine the likelihood of potential outcomes.
- 4 -
Due to the uncertainty of the timing and amount of cash payments expected, the Company is not
currently accruing any interest income on the Allerton loan. However, the Company includes all
cash received from the borrower in its calculations of Adjusted EBITDA and Adjusted FFO. As of
June 17, 2011, the Company had received cash interest payments from the borrower of $0.6 million.
Subsequent to June 17, 2011, the Company received cash interest payments of $0.5 million. The
Companys 2011 Adjusted EBITDA and Adjusted FFO guidance assumes $3.0 million of cash interest
payments received in 2011 on the Allerton loan.
Balance Sheet
As of June 17, 2011, the Company had $20.9 million of unrestricted cash on hand and $1.0 billion of
debt outstanding, which consists of $921.1 million of fixed rate, property-specific mortgage debt
with no near-term maturities and $115 million of outstanding borrowings on the Companys corporate
credit facility. Twelve of the Companys 25 hotels owned at the end of the second fiscal quarter
are unencumbered by mortgage debt.
The Company continues to maintain its straightforward capital structure. The Company has no
preferred equity outstanding and continues to own 100% of its properties directly.
Outlook and Guidance
The Company is providing guidance, but does not undertake to update it for any developments in its
business. Achievement of the anticipated results is subject to the risks disclosed in the
Companys filings with the Securities and Exchange Commission. The RevPAR guidance assumes that
all of the Companys 26 hotels were owned since January 1,
2010 but excludes Frenchmans Reef for
all of 2011 because it is partially closed for the renovation.
The Company is revising its full year 2011 guidance to incorporate the acquisitions of the JW
Marriott Denver, Lexington Hotel New York and Courtyard Denver. In addition, the Company is
currently maintaining its expectation of receiving $3 million in cash interest payments from the
Allerton Hotel mortgage loan. The Company expects full year results as follows:
| RevPAR to increase 6 percent to 8 percent. |
| Adjusted EBITDA of $172 million to $177 million, which assumes $6.5 million of renovation disruption from the Frenchmans Reef repositioning project. |
| Adjusted FFO of $111 million to $116 million, which assumes income tax expense to range from $6 million to $7 million. |
| Adjusted FFO per share of $0.66 to $0.69 based on 167.5 million diluted weighted average shares. |
Earnings Call
The
Company will host a conference call to discuss its second quarter
results on Monday, July 25,
2011, at 5:00 p.m. Eastern Time (ET). To participate in the live call, investors are invited to
dial 866-788-0542 (for domestic callers) or 857-350-1680 (for international callers).
The participant passcode is 74146995. A live webcast of the call will be available via the investor
relations section of DiamondRock Hospitality Companys website at www.drhc.com. A replay of the
webcast will also be archived on the website for one year.
- 5 -
About the Company
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an
owner of premium hotel properties. The Company owns 26 premium hotels with approximately 12,000
rooms and holds the senior mortgage loan on another premium hotel. The Companys hotels are
generally operated under globally recognized brands such as Hilton, Marriott, and Westin. For
further information, please visit DiamondRock Hospitality Companys website at www.drhc.com.
This press release contains forward-looking statements within the meaning of federal securities
laws and regulations. These forward-looking statements are identified by their use of terms and
phrases such as believe, expect, intend, project, forecast, plan and other similar
terms and phrases, including references to assumptions and forecasts of future results.
Forward-looking statements are not guarantees of future performance and involve known and unknown
risks, uncertainties and other factors which may cause the actual results to differ materially from
those anticipated at the time the forward-looking statements are made. These risks include, but
are not limited to: national and local economic and business conditions, including the potential
for additional terrorist attacks, that will affect occupancy rates at the Companys hotels and the
demand for hotel products and services; operating risks associated with the hotel business; risks
associated with the level of the Companys indebtedness; relationships with property managers; the
ability to compete effectively in areas such as access, location, quality of accommodations and
room rate structures; changes in travel patterns, taxes and government regulations which influence
or determine wages, prices, construction procedures and costs; risks associated with the bankruptcy
proceedings on the Allerton Hotel; risks associated with the development of a hotel by a
third-party developer; risks associated with the ongoing renovation and repositioning of the
Frenchmans Reef & Morning Star Marriott Beach Resort and other risk factors contained in the
Companys filings with the Securities and Exchange Commission. Although the Company believes the
expectations reflected in such forward-looking statements are based upon reasonable assumptions, it
can give no assurance that the expectations will be attained or that any deviation will not be
material. All information in this release is as of the date of this release, and the Company
undertakes no obligation to update any forward-looking statement to conform the statement to actual
results or changes in the Companys expectations.
Reporting Periods for Statement of Operations
The results reported in the Companys consolidated statements of operations are based on results of
its hotels reported by hotel managers. The Companys hotel managers use different reporting
periods. Marriott International, the manager of most of the Companys properties, uses a fiscal
year ending on the Friday closest to December 31 and reports 12 weeks of operations for the first
three quarters and 16 or 17 weeks for the fourth quarter of the year for its domestic managed
hotels. In contrast, Marriott International for its non-domestic hotels (including Frenchmans
Reef), Davidson Hotel Company, manager of the Westin Atlanta North, Vail Resorts, manager of the
Vail Marriott, Hilton Hotels Corporation, manager of the Conrad Chicago and the Hilton Minneapolis,
Westin Hotel Management, L.P., manager of the Westin Boston Waterfront, Alliance Hospitality
Management, manager of the Hilton Garden Inn Chelsea, Sage Hospitality, manager of the JW Marriott
Denver Cherry Creek and the Courtyard Denver, and Highgate Hotels, manager of the Lexington Hotel,
report results on a monthly basis. Additionally, the Company, as a REIT, is required by U.S.
federal tax laws to report results on a calendar year basis. As a result, the Company has adopted
the reporting periods used by Marriott International for its domestic hotels, except that the
fiscal year always ends on December 31 to comply with REIT rules. The first three fiscal quarters
end on the same day as Marriott Internationals fiscal quarters but the fourth quarter ends on
December 31 and full year results, as reported in the statement of operations, always include the
same number of days as the calendar year.
Two consequences of the reporting cycle the Company has adopted are: (1) quarterly start dates will
usually differ between years, except for the first quarter which always commences on January 1, and
(2) the first and fourth quarters of operations and year-to-date operations may not include the
same number of days as reflected in prior years.
- 6 -
While the reporting calendar the Company adopted is more closely aligned with the reporting
calendar used by the manager of most of its properties, one final consequence of the calendar is
the Company is unable to report any results for Frenchmans Reef, Westin Atlanta North, Vail
Marriott, Conrad Chicago, Westin Boston Waterfront, Hilton Minneapolis, Hilton Garden Inn Chelsea,
JW Marriott Denver Cherry Creek, Courtyard Denver or the Lexington Hotel for the month of
operations that ends after its fiscal quarter-end because none of Vail Resorts, Davidson Hotel
Company, Hilton Hotels Corporation, Westin Hotel Management, L.P., Alliance Hospitality
Management, Sage Hospitality, Highgate Hotels and Marriott International (for international hotels)
make mid-month results available. As a result, the quarterly results of operations include results
from these hotels as follows: first quarter (January and February), second quarter (March to May),
third quarter (June to August) and fourth quarter (September to December). While this does not
affect full-year results, it does affect the reporting of quarterly results.
Ground Leases
Five of the Companys hotels are subject to ground leases: Bethesda Marriott Suites, Courtyard
Manhattan Fifth Avenue, Salt Lake City Downtown Marriott, Westin Boston Waterfront and Hilton
Minneapolis. In addition, part of a parking structure at a sixth hotel and the golf courses at two
additional hotels are also subject to ground leases. In accordance with U.S. GAAP, the Company
records rent expense on a straight-line basis for ground leases that provide minimal rental
payments that increase in pre-established amounts over the remaining term of the ground lease. For
the second quarter 2011, contractual cash rent payable on the ground leases totaled $1.8 million
and the Company recorded approximately $3.5 million in ground rent expense. The non-cash portion
of ground rent expense recorded for the second quarter 2011 was $1.7 million. The Companys 2011
guidance assumes ground rent expense of approximately $14 million, which consists of approximately
$7 million of contractual ground rent and non-cash ground rent of approximately $7 million.
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DIAMONDROCK HOSPITALITY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
As of June 17, 2011 and December 31, 2010
(in thousands, except share amounts)
As of June 17, 2011 and December 31, 2010
(in thousands, except share amounts)
June 17, 2011 | December 31, 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Property and equipment, at cost |
$ | 2,901,026 | $ | 2,468,289 | ||||
Less: accumulated depreciation |
(439,324 | ) | (396,686 | ) | ||||
2,461,702 | 2,071,603 | |||||||
Deferred financing costs, net |
6,935 | 5,492 | ||||||
Restricted cash |
75,812 | 51,936 | ||||||
Due from hotel managers |
60,340 | 50,715 | ||||||
Note receivable |
57,346 | 57,951 | ||||||
Favorable lease assets, net |
43,825 | 42,622 | ||||||
Prepaid and other assets |
75,232 | 50,089 | ||||||
Cash and cash equivalents |
20,918 | 84,201 | ||||||
Total assets |
$ | 2,802,110 | $ | 2,414,609 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Liabilities: |
||||||||
Mortgage debt |
$ | 921,094 | $ | 780,880 | ||||
Senior unsecured credit facility |
115,000 | | ||||||
Total debt |
1,036,094 | 780,880 | ||||||
Deferred income related to key money, net |
20,564 | 19,199 | ||||||
Unfavorable contract liabilities, net |
82,923 | 83,613 | ||||||
Due to hotel managers |
37,408 | 36,168 | ||||||
Dividends declared and unpaid |
13,549 | | ||||||
Accounts payable and accrued expenses |
87,827 | 81,232 | ||||||
Total other liabilities |
242,271 | 220,212 | ||||||
Stockholders Equity: |
||||||||
Preferred stock, $0.01 par value; 10,000,000
shares authorized; no shares issued and
outstanding |
| | ||||||
Common stock, $0.01 par value; 200,000,000
shares authorized; 167,385,657 and 154,570,543
shares issued and outstanding at June 17, 2011
and December 31, 2010, respectively |
1,674 | 1,546 | ||||||
Additional paid-in capital |
1,706,887 | 1,558,047 | ||||||
Accumulated deficit |
(184,816 | ) | (146,076 | ) | ||||
Total stockholders equity |
1,523,745 | 1,413,517 | ||||||
Total liabilities and stockholders equity |
$ | 2,802,110 | $ | 2,414,609 | ||||
- 8 -
DIAMONDROCK HOSPITALITY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Fiscal Quarters Ended June 17, 2011 and June 18, 2010 and
the Periods from January 1, 2011 to June 17, 2011 and January 1, 2010 to June 18, 2010
(in thousands, except per share amounts)
For the Fiscal Quarters Ended June 17, 2011 and June 18, 2010 and
the Periods from January 1, 2011 to June 17, 2011 and January 1, 2010 to June 18, 2010
(in thousands, except per share amounts)
Fiscal Quarter | Fiscal Quarter | Period from | Period from | |||||||||||||
Ended | Ended | January 1, 2011 to | January 1, 2010 to | |||||||||||||
June 17, 2011 | June 18, 2010 | June 17, 2011 | June 18, 2010 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Revenues: |
||||||||||||||||
Rooms |
$ | 111,866 | $ | 95,730 | $ | 191,184 | $ | 167,378 | ||||||||
Food and beverage |
49,432 | 47,699 | 86,466 | 83,250 | ||||||||||||
Other |
8,207 | 7,696 | 14,122 | 13,324 | ||||||||||||
Total revenues |
169,505 | 151,125 | 291,772 | 263,952 | ||||||||||||
Operating Expenses: |
||||||||||||||||
Rooms |
28,534 | 24,458 | 51,243 | 44,530 | ||||||||||||
Food and beverage |
33,210 | 31,490 | 60,252 | 56,215 | ||||||||||||
Management fees |
6,987 | 5,482 | 10,389 | 8,554 | ||||||||||||
Other hotel expenses |
58,211 | 51,990 | 105,931 | 96,619 | ||||||||||||
Depreciation and amortization |
21,682 | 19,074 | 43,034 | 37,981 | ||||||||||||
Hotel acquisition costs |
1,904 | 337 | 2,159 | 337 | ||||||||||||
Corporate expenses |
4,373 | 3,560 | 8,448 | 6,911 | ||||||||||||
Total operating expenses |
154,901 | 136,391 | 281,456 | 251,147 | ||||||||||||
Operating income |
14,604 | 14,734 | 10,316 | 12,805 | ||||||||||||
Other Expenses (Income): |
||||||||||||||||
Interest income |
(268 | ) | (286 | ) | (565 | ) | (367 | ) | ||||||||
Interest expense |
12,340 | 11,089 | 23,483 | 19,215 | ||||||||||||
Total other expenses |
12,072 | 10,803 | 22,918 | 18,848 | ||||||||||||
Income (loss) before income taxes |
2,532 | 3,931 | (12,602 | ) | (6,043 | ) | ||||||||||
Income tax (expense) benefit |
(3,088 | ) | (3,092 | ) | 1,003 | (1,462 | ) | |||||||||
Net (loss) income |
$ | (556 | ) | $ | 839 | $ | (11,599 | ) | $ | (7,505 | ) | |||||
Earnings (loss) per share: |
||||||||||||||||
Basic and diluted earnings (loss) per share |
$ | | $ | 0.01 | $ | (0.07 | ) | $ | (0.06 | ) | ||||||
- 9 -
Non-GAAP Financial Measures
The Company uses the following four non-GAAP financial measures that it believes are useful to
investors as key measures of its operating performance: (1) EBITDA, (2) FFO, (3) Adjusted EBITDA
and (4) Adjusted FFO.
EBITDA represents net (loss) income excluding: (1) interest expense; (2) provision for income
taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization.
The Company believes EBITDA is useful to an investor in evaluating its operating performance
because it helps investors evaluate and compare the results of its operations from period to period
by removing the impact of the Companys capital structure (primarily interest expense) and its
asset base (primarily depreciation and amortization) from its operating results. The Company also
uses EBITDA as one measure in determining the value of hotel acquisitions and dispositions.
Historical (in 000s) | ||||||||||||||||
Fiscal Quarter Ended | Period From | |||||||||||||||
January 1, 2011 to | January 1, 2010 to | |||||||||||||||
June 17, 2011 | June 18, 2010 | January 17, 2011 | January 18, 2010 | |||||||||||||
Net (loss) income |
$ | (556 | ) | $ | 839 | $ | (11,599 | ) | $ | (7,505 | ) | |||||
Interest expense |
12,340 | 11,089 | 23,483 | 19,215 | ||||||||||||
Income tax expense (benefit) |
3,088 | 3,092 | (1,003 | ) | 1,462 | |||||||||||
Depreciation and amortization |
21,682 | 19,074 | 43,034 | 37,981 | ||||||||||||
EBITDA |
$ | 36,554 | $ | 34,094 | $ | 53,915 | $ | 51,153 | ||||||||
Full Year Forecast 2011 (in 000s) | ||||||||
Low End | High End | |||||||
Net (loss) income |
$ | (1,164 | ) | $ | 4,836 | |||
Interest expense |
55,000 | 54,000 | ||||||
Income tax expense |
6,000 | 7,000 | ||||||
Depreciation and amortization |
101,000 | 100,000 | ||||||
EBITDA |
$ | 160,836 | $ | 165,836 | ||||
The Company computes FFO in accordance with standards established by NAREIT, which
defines FFO as net (loss) income determined in accordance with GAAP, excluding gains (losses) from
sales of property, plus depreciation and amortization. The Company believes that the presentation
of FFO provides useful information to investors regarding its operating performance because it is a
measure of the Companys operations without regard to specified non-cash items, such as real estate
depreciation and amortization and gain or loss on sale of assets. The Company also uses FFO as one
measure in assessing its results.
Historical (in 000s) | ||||||||||||||||
Fiscal Quarter Ended | Period From | |||||||||||||||
January 1, 2011 to | January 1, 2010 to | |||||||||||||||
June 17, 2011 | June 18, 2010 | January 17, 2011 | January 18, 2010 | |||||||||||||
Net (loss) income |
$ | (556 | ) | $ | 839 | $ | (11,599 | ) | $ | (7,505 | ) | |||||
Real estate related depreciation
|
21,682 | 19,074 | 43,034 | 37,981 | ||||||||||||
FFO |
21,126 | 19,913 | 31,435 | 30,476 | ||||||||||||
FFO per share (basic and diluted) |
$ | 0.13 | $ | 0.14 | $ | 0.19 | $ | 0.23 | ||||||||
Full Year Forecast 2011 (in 000s) | ||||||||
Low End | High End | |||||||
Net income |
$ | (1,164 | ) | $ | 4,836 | |||
Depreciation and amortization |
101,000 | 100,000 | ||||||
FFO |
$ | 99,836 | $ | 104,836 | ||||
FFO per share (basic and diluted) |
$ | 0.60 | $ | 0.63 | ||||
- 10 -
The Company also evaluates its performance by reviewing Adjusted EBITDA and Adjusted FFO
because it believes that the exclusion of certain additional recurring and non-recurring items
described below provides useful supplemental information regarding the Companys ongoing operating
performance and that the presentation of Adjusted EBITDA and Adjusted FFO, when combined with the
primary GAAP presentation of net income (loss), is beneficial to a complete understanding of the
Companys operating performance. The Company adjusts EBITDA and FFO for the following items, which
may occur in any period, and refers to these measures as Adjusted EBITDA and Adjusted FFO:
| Non-Cash Ground Rent: The Company excludes the non-cash expense incurred from straight lining the rent from its ground lease obligations and the non-cash amortization of its favorable lease assets. |
| The impact of the non-cash amortization of the unfavorable contract liabilities recorded in conjunction with the Companys acquisitions of the Bethesda Marriott Suites, the Chicago Marriott Downtown, the Renaissance Charleston and the Radisson Lexington. The amortization of the unfavorable contract liabilities does not reflect the underlying performance of the Company. |
| Cumulative effect of a change in accounting principle: Infrequently, the Financial Accounting Standards Board (FASB) promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. The Company excludes these one-time adjustments because they do not reflect its actual performance for that period. |
| Gains from Early Extinguishment of Debt: The Company excludes the effect of gains recorded on the early extinguishment of debt because it believes that including them in EBITDA and FFO is not consistent with reflecting the ongoing performance of its hotels. |
| Impairment Losses: The Company excludes the effect of impairment losses recorded because it believes that including them in EBITDA and FFO is not consistent with reflecting the ongoing performance of its assets. In addition, the Company believes that impairment charges are similar to depreciation expense, which is also excluded from EBITDA and FFO. |
| Gains or Losses on Dispositions: The Company excludes the effect of gains or losses on dispositions from EBITDA because it believes that including them is not consistent with reflecting the ongoing performance of its remaining assets. In addition, gains and losses on dispositions are excluded from the calculation of FFO in accordance with NAREIT standards. |
| Acquisition Costs: The Company excludes acquisition transaction costs expensed during the period because it believes that including these costs in EBITDA and FFO is not consistent with the underlying performance of the Company. |
| Mortgage Loan Interest Payments Received: The Company includes cash payments received on its senior loan secured by the Allerton Hotel in Adjusted EBITDA and Adjusted FFO. GAAP requires the Company to record the cash received from the borrower as a reduction of its basis in the mortgage loan due to the uncertainty over the timing and amount of cash payments on the loan. The Company believes that these cash payments reflect its return on its investment in the mortgage loan and should be included in Adjusted EBITDA and Adjusted FFO as they relate to the operating performance of the Company. |
| Other Non-Cash and /or Unusual Items: The Company excludes the effect of certain non-cash and/or unusual items because it believes that including these costs in EBITDA and FFO is not consistent with the underlying performance of the Company. During the second fiscal quarter ended June 17, 2011 the Company accrued for the net repayment of key money to Hilton in conjunction with entering into a termination agreement for the Conrad Chicago. The Company excluded this unusual cost from EBITDA and FFO because it believes that including it would not be consistent with reflecting the ongoing performance of its asset. |
Historical (in 000s) | ||||||||||||||||
Fiscal Quarter Ended | Period From | |||||||||||||||
January 1, 2011 | January 1, 2010 | |||||||||||||||
June 17, 2011 | June 18, 2010 | to June 17, 2011 | to June 18, 2010 | |||||||||||||
EBITDA |
$ | 36,554 | $ | 34,094 | $ | 53,915 | $ | 51,153 | ||||||||
Non-cash ground rent |
1,655 | 1,777 | 3,221 | 3,566 | ||||||||||||
Non-cash amortization of
unfavorable contract
liabilities |
(426 | ) | (397 | ) | (852 | ) | (794 | ) | ||||||||
Accrual for net key money
repayment |
864 | | 864 | | ||||||||||||
Mortgage loan cash payments |
505 | | 605 | | ||||||||||||
Acquisition costs |
1,904 | 337 | 2,159 | 337 | ||||||||||||
Adjusted EBITDA |
$ | 41,056 | $ | 35,811 | $ | 59,912 | $ | 54,262 | ||||||||
Forecast Full Year 2011 (in 000s) | ||||||||
Low End | High End | |||||||
EBITDA |
$ | 160,836 | $ | 165,836 | ||||
Non-cash ground rent |
6,600 | 6,600 | ||||||
Non-cash amortization of unfavorable contract liabilities |
(1,800 | ) | (1,800 | ) | ||||
Accrual for net key money repayment |
864 | 864 | ||||||
Mortgage loan cash payments |
3,000 | 3,000 | ||||||
Acquisition costs |
2,500 | 2,500 | ||||||
Adjusted EBITDA |
$ | 172,000 | $ | 177,000 | ||||
- 11 -
Historical (in 000s) | ||||||||||||||||
Fiscal Quarter Ended | Period From | |||||||||||||||
January 1, 2011 | January 1, 2010 | |||||||||||||||
June 17, 2011 | June 18, 2010 | to June 17, 2011 | to June 18, 2010 | |||||||||||||
FFO |
$ | 21,126 | $ | 19,913 | $ | 31,435 | $ | 30,476 | ||||||||
Non-cash ground rent |
1,655 | 1,777 | 3,221 | 3,566 | ||||||||||||
Non-cash amortization of
unfavorable contract
liabilities |
(426 | ) | (397 | ) | (852 | ) | (794 | ) | ||||||||
Accrual for net key money
repayment |
864 | | 864 | | ||||||||||||
Mortgage loan cash payments |
505 | | 605 | | ||||||||||||
Acquisition costs |
1,904 | 337 | 2,159 | 337 | ||||||||||||
Adjusted FFO |
$ | 25,628 | $ | 21,630 | $ | 37,432 | $ | 33,585 | ||||||||
Adjusted FFO per share
(basic and diluted) |
$ | 0.15 | $ | 0.16 | $ | 0.23 | $ | 0.25 | ||||||||
Forecast Full Year 2011 (in 000s) | ||||||||
Low End | High End | |||||||
FFO |
$ | 99,836 | $ | 104,836 | ||||
Non-cash ground rent |
6,600 | 6,600 | ||||||
Non-cash amortization of unfavorable contract liabilities |
(1,800 | ) | (1,800 | ) | ||||
Accrual for net key money repayment |
864 | 864 | ||||||
Acquisition costs |
3,000 | 3,000 | ||||||
Mortgage loan cash payments |
2,500 | 2,500 | ||||||
Adjusted FFO |
$ | 111,000 | $ | 116,000 | ||||
Adjusted FFO per share (diluted) |
$ | 0.66 | $ | 0.69 | ||||
Reconciliation of Estimated Net Income to Estimated EBITDA for the Courtyard Denver Downtown
(000s)
2012 | ||||
Full Year | ||||
Estimated Net Income (Loss) |
$ | 1,400 | ||
Income Tax Expense |
100 | |||
Depreciation Expense |
1,300 | |||
Interest Expense |
1,000 | |||
Estimated EBITDA |
$ | 3,800 | ||
Quarterly Pro Forma Financial Information
The following table is presented to provide investors with selected historical quarterly operating
information to include the operating results for all of the Companys 26 hotels as if they were
owned since January 1, 2010 but exclude Frenchmans Reef due to the impact of its extensive
renovation.
Quarter 2, 2010 | Quarter 3, 2010 | Quarter 4, 2010 | Full Year 2010 | Quarter 1, 2011 | ||||||||||||||||
RevPAR |
$ | 116.71 | $ | 117.63 | $ | 118.76 | $ | 112.11 | $ | 94.36 | ||||||||||
Revenues (in thousands) |
$ | 171,623 | $ | 166,670 | $ | 227,497 | $ | 685,324 | $ | 121,574 | ||||||||||
Hotel Adjusted EBITDA (in thousands) |
$ | 46,378 | $ | 44,326 | $ | 66,712 | $ | 177,626 | $ | 20,960 | ||||||||||
% of Full Year |
26.1 | % | 25.0 | % | 37.6 | % | 100.0 | % | 10.8 | % | ||||||||||
Hotel Adjusted EBITDA Margin |
27.02 | % | 26.60 | % | 29.32 | % | 25.92 | % | 17.24 | % | ||||||||||
Available Rooms |
982,360 | 982,360 | 1,307,402 | 4,133,444 | 854,009 |
Certain Definitions
In this release, when we discuss Hotel Adjusted EBITDA, we exclude from Hotel EBITDA the non-cash
expense 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
the unfavorable contract liabilities recorded in conjunction with the acquisitions of the Bethesda
Marriott Suites, the Chicago Marriott Downtown, the Renaissance Charleston and the Radisson
Lexington. Hotel EBITDA represents hotel net income excluding: (1) interest expense; (2) income
taxes; and (3) depreciation and amortization. Hotel Adjusted EBITDA margins are calculated as Hotel
Adjusted EBITDA divided by total hotel revenues. Net debt is calculated as total debt outstanding
less unrestricted cash.
- 12 -
DIAMONDROCK HOSPITALITY COMPANY
PRO FORMA HOTEL OPERATING DATA (1)
Schedule of Property Level Results
(in thousands)
(unaudited)
Schedule of Property Level Results
(in thousands)
(unaudited)
Fiscal Quarter | Fiscal Quarter | Period from | Period from | |||||||||||||||||||||
Ended | Ended | January 1, 2011 to | January 1, 2010 to | |||||||||||||||||||||
June 17, 2011 | June 18, 2010 | % Change | June 17, 2011 | June 18, 2010 | % Change | |||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Rooms |
$ | 119,841 | $ | 112,649 | 6.4 | % | $ | 199,419 | $ | 189,564 | 5.2 | % | ||||||||||||
Food and beverage |
47,459 | 48,525 | (2.2 | )% | 82,454 | 84,168 | (2.0 | )% | ||||||||||||||||
Other |
8,549 | 8,303 | 3.0 | % | 14,453 | 14,151 | 2.1 | % | ||||||||||||||||
Total revenues |
175,849 | 169,477 | 3.8 | % | 296,326 | 287,883 | 2.9 | % | ||||||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Rooms |
31,291 | 29,493 | 6.1 | % | 55,437 | 52,637 | 5.3 | % | ||||||||||||||||
Food and beverage |
31,344 | 31,420 | (0.2 | )% | 56,758 | 56,446 | 0.6 | % | ||||||||||||||||
Other direct departmental |
4,672 | 4,669 | 0.1 | % | 8,491 | 8,432 | 0.7 | % | ||||||||||||||||
General and administrative |
14,293 | 14,266 | 0.2 | % | 26,270 | 26,077 | 0.7 | % | ||||||||||||||||
Utilities |
5,515 | 5,364 | 2.8 | % | 10,527 | 10,419 | 1.0 | % | ||||||||||||||||
Repairs and maintenance |
7,653 | 7,201 | 6.3 | % | 14,163 | 13,530 | 4.7 | % | ||||||||||||||||
Sales and marketing |
13,583 | 12,862 | 5.6 | % | 23,646 | 22,080 | 7.1 | % | ||||||||||||||||
Base management fees |
4,720 | 4,515 | 4.5 | % | 7,853 | 7,581 | 3.6 | % | ||||||||||||||||
Incentive management fees |
1,508 | 1,397 | 7.9 | % | 1,680 | 1,506 | 11.6 | % | ||||||||||||||||
Property taxes |
7,710 | 8,348 | (7.6 | )% | 13,762 | 15,791 | (12.8 | )% | ||||||||||||||||
Ground rent |
3,452 | 3,234 | 6.7 | % | 6,356 | 6,132 | 3.7 | % | ||||||||||||||||
Other fixed expenses |
2,330 | 2,320 | 0.4 | % | 4,128 | 4,250 | (2.9 | )% | ||||||||||||||||
Total operating expenses |
128,071 | 125,089 | 2.4 | % | 229,071 | 224,881 | 1.9 | % | ||||||||||||||||
Hotel EBITDA |
$ | 47,778 | $ | 44,388 | 7.6 | % | $ | 67,255 | $ | 63,002 | 6.8 | % | ||||||||||||
Non-cash ground rent |
1,654 | 1,514 | 9.2 | % | 3,220 | 3,128 | 2.9 | % | ||||||||||||||||
Non-cash amortization of
unfavorable contract
liabilities |
(426 | ) | (426 | ) | 0.0 | % | (852 | ) | (852 | ) | 0.0 | % | ||||||||||||
Hotel Adjusted EBITDA |
$ | 49,006 | $ | 45,476 | 7.8 | % | $ | 69,623 | $ | 65,278 | 6.7 | % | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys 25 hotels owned as of June 17, 2011 as if they were owned since January 1, 2010 but excludes the Frenchmans Reef & Morning Star Marriott Beach Resort from all periods presented due to the extensive ongoing renovation. |
- 13 -
Market Capitalization as of June 17, 2011
(in thousands, except per share data)
(in thousands, except per share data)
Enterprise Value |
||||
Common equity capitalization (at June 17, 2011 closing price of $10.01/share) |
$ | 1,688,066 | ||
Consolidated debt |
1,036,094 | |||
Cash and cash equivalents |
(20,918 | ) | ||
Total enterprise value |
$ | 2,703,242 | ||
Share Reconciliation |
||||
Common shares outstanding |
167,386 | |||
Unvested restricted stock held by management and employees |
1,219 | |||
Share grants under deferred compensation plan held by directors |
33 | |||
Combined shares outstanding |
168,638 | |||
Debt Summary as of June 17, 2011
(dollars in thousands)
(dollars in thousands)
Interest | Outstanding | |||||||||||||||
Property | Rate | Term | Principal | Maturity | ||||||||||||
Courtyard Manhattan / Midtown East |
8.810 | % | Fixed | $ | 42,476 | October 2014 | ||||||||||
Salt Lake City Marriott Downtown |
5.500 | % | Fixed | 30,962 | January 2015 | |||||||||||
Courtyard Manhattan / Fifth Avenue |
6.480 | % | Fixed | 51,000 | June 2016 | |||||||||||
Los Angeles Airport Marriott |
5.300 | % | Fixed | 82,600 | July 2015 | |||||||||||
Marriott Frenchmans Reef |
5.440 | % | Fixed | 60,103 | August 2015 | |||||||||||
Renaissance Worthington |
5.400 | % | Fixed | 55,942 | July 2015 | |||||||||||
Orlando Airport Marriott |
5.680 | % | Fixed | 58,694 | January 2016 | |||||||||||
Chicago Marriott Downtown |
5.975 | % | Fixed | 215,684 | April 2016 | |||||||||||
Austin Renaissance Hotel |
5.507 | % | Fixed | 83,000 | December 2016 | |||||||||||
Waverly Renaissance Hotel |
5.503 | % | Fixed | 97,000 | December 2016 | |||||||||||
Hilton Minneapolis |
5.464 | % | Fixed | 99,859 | May 2021 | |||||||||||
JW Marriott Denver Cherry Creek |
6.470 | % | Fixed | 42,321 | July 2015 | |||||||||||
Debt premium (1) |
1,453 | |||||||||||||||
Total mortgage debt |
921,094 | |||||||||||||||
Senior Unsecured Credit Facility |
LIBOR + 2.25 | Variable | 115,000 | August 2014 | ||||||||||||
Total Debt |
$ | 1,036,094 | ||||||||||||||
(1) | The debt premium is a purchase accounting adjustment to record the debt on the JW Marriott Denver Cherry Creek at its acquisition date fair value. The premium will be amortized over the life of the loan into interest expense. |
- 14 -
Pro Forma Operating Statistics Second Quarter (1)
ADR | Occupancy | RevPAR | Hotel Adjusted EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||||
2Q 2011 | 2Q 2010 | B/(W) | 2Q 2011 | 2Q 2010 | B/(W) | 2Q 2011 | 2Q 2010 | B/(W) | 2Q 2011 | 2Q 2010 | B/(W) | |||||||||||||||||||||||||||||||||||||
Atlanta Alpharetta |
$ | 131.89 | $ | 118.12 | 11.7 | % | 69.7 | % | 64.9 | % | 4.8 | % | $ | 91.95 | $ | 76.61 | 20.0 | % | 29.41 | % | 22.96 | % | 645 | bps | ||||||||||||||||||||||||
Westin Atlanta North (2) |
$ | 107.68 | $ | 102.68 | 4.9 | % | 73.8 | % | 73.5 | % | 0.3 | % | $ | 79.51 | $ | 75.47 | 5.4 | % | 16.66 | % | 17.49 | % | -83 | bps | ||||||||||||||||||||||||
Atlanta Waverly |
$ | 127.94 | $ | 128.22 | (0.2 | %) | 66.4 | % | 60.6 | % | 5.8 | % | $ | 84.96 | $ | 77.70 | 9.3 | % | 22.76 | % | 16.76 | % | 600 | bps | ||||||||||||||||||||||||
Renaissance Austin |
$ | 140.12 | $ | 142.09 | (1.4 | %) | 62.0 | % | 63.9 | % | (1.9 | %) | $ | 86.93 | $ | 90.82 | (4.3 | %) | 25.36 | % | 31.92 | % | -656 | bps | ||||||||||||||||||||||||
Bethesda Marriott Suites |
$ | 175.36 | $ | 168.63 | 4.0 | % | 78.3 | % | 76.8 | % | 1.5 | % | $ | 137.38 | $ | 129.43 | 6.1 | % | 35.00 | % | 27.99 | % | 701 | bps | ||||||||||||||||||||||||
Boston Westin (2) |
$ | 196.99 | $ | 202.26 | (2.6 | %) | 75.9 | % | 72.2 | % | 3.7 | % | $ | 149.59 | $ | 145.95 | 2.5 | % | 28.87 | % | 29.59 | % | -72 | bps | ||||||||||||||||||||||||
Renaissance Charleston |
$ | 190.81 | $ | 171.06 | 11.5 | % | 92.7 | % | 91.3 | % | 1.4 | % | $ | 176.81 | $ | 156.10 | 13.3 | % | 42.12 | % | 41.90 | % | 22 | bps | ||||||||||||||||||||||||
Hilton
Garden Inn Chelsea (2) |
$ | 208.56 | $ | 188.76 | 10.5 | % | 94.3 | % | 91.6 | % | 2.7 | % | $ | 196.64 | $ | 172.99 | 13.7 | % | 47.50 | % | 43.62 | % | 388 | bps | ||||||||||||||||||||||||
Chicago Marriott |
$ | 212.30 | $ | 197.80 | 7.3 | % | 74.8 | % | 78.5 | % | (3.7 | %) | $ | 158.89 | $ | 155.31 | 2.3 | % | 27.58 | % | 26.59 | % | 99 | bps | ||||||||||||||||||||||||
Chicago Conrad (2) |
$ | 183.19 | $ | 164.48 | 11.4 | % | 90.4 | % | 83.0 | % | 7.4 | % | $ | 165.68 | $ | 136.55 | 21.3 | % | 29.32 | % | 22.78 | % | 654 | bps | ||||||||||||||||||||||||
Courtyard Fifth Avenue |
$ | 273.59 | $ | 254.26 | 7.6 | % | 88.7 | % | 91.3 | % | (2.6 | %) | $ | 242.65 | $ | 232.11 | 4.5 | % | 35.00 | % | 33.63 | % | 137 | bps | ||||||||||||||||||||||||
Courtyard Midtown East |
$ | 274.79 | $ | 239.91 | 14.5 | % | 86.5 | % | 92.0 | % | (5.5 | %) | $ | 237.81 | $ | 220.72 | 7.7 | % | 40.67 | % | 37.63 | % | 304 | bps | ||||||||||||||||||||||||
Frenchmans Reef (2) |
$ | 236.65 | $ | 251.22 | (5.8 | %) | 85.1 | % | 85.6 | % | (0.5 | %) | $ | 201.37 | $ | 215.08 | (6.4 | %) | 12.57 | % | 31.13 | % | -1856 | bps | ||||||||||||||||||||||||
Griffin Gate Marriott |
$ | 137.69 | $ | 133.75 | 2.9 | % | 70.7 | % | 70.6 | % | 0.1 | % | $ | 97.29 | $ | 94.45 | 3.0 | % | 31.76 | % | 28.80 | % | 296 | bps | ||||||||||||||||||||||||
JW Marriott Denver Cherry Creek (2) |
$ | 227.82 | $ | 213.66 | 6.6 | % | 71.4 | % | 71.4 | % | 0.0 | % | $ | 162.77 | $ | 152.60 | 6.7 | % | 24.76 | % | 24.98 | % | -22 | bps | ||||||||||||||||||||||||
Los Angeles Airport |
$ | 102.00 | $ | 100.48 | 1.5 | % | 84.6 | % | 79.1 | % | 5.5 | % | $ | 86.34 | $ | 79.48 | 8.6 | % | 18.66 | % | 13.18 | % | 548 | bps | ||||||||||||||||||||||||
Hilton Minneapolis (2) |
$ | 139.44 | $ | 133.10 | 4.8 | % | 73.3 | % | 73.1 | % | 0.2 | % | $ | 102.28 | $ | 97.34 | 5.1 | % | 29.44 | % | 29.56 | % | -12 | bps | ||||||||||||||||||||||||
Oak Brook Hills |
$ | 114.85 | $ | 106.17 | 8.2 | % | 62.1 | % | 59.9 | % | 2.2 | % | $ | 71.32 | $ | 63.58 | 12.2 | % | 18.22 | % | 16.06 | % | 216 | bps | ||||||||||||||||||||||||
Orlando Airport Marriott |
$ | 99.93 | $ | 97.14 | 2.9 | % | 73.6 | % | 69.0 | % | 4.6 | % | $ | 73.50 | $ | 66.99 | 9.7 | % | 17.80 | % | 17.72 | % | 8 | bps | ||||||||||||||||||||||||
Salt Lake City Marriott |
$ | 125.83 | $ | 130.64 | (3.7 | %) | 63.9 | % | 54.8 | % | 9.1 | % | $ | 80.47 | $ | 71.57 | 12.4 | % | 27.65 | % | 26.52 | % | 113 | bps | ||||||||||||||||||||||||
The Lodge at Sonoma |
$ | 205.20 | $ | 192.05 | 6.8 | % | 76.5 | % | 71.2 | % | 5.3 | % | $ | 157.07 | $ | 136.80 | 14.8 | % | 18.02 | % | 14.27 | % | 375 | bps | ||||||||||||||||||||||||
Torrance Marriott South Bay |
$ | 105.69 | $ | 101.44 | 4.2 | % | 79.0 | % | 83.4 | % | (4.4 | %) | $ | 83.46 | $ | 84.65 | (1.4 | %) | 25.18 | % | 21.36 | % | 382 | bps | ||||||||||||||||||||||||
Vail Marriott (2) |
$ | 245.67 | $ | 223.84 | 9.8 | % | 51.4 | % | 55.4 | % | (4.0 | %) | $ | 126.17 | $ | 124.04 | 1.7 | % | 21.48 | % | 25.23 | % | -375 | bps | ||||||||||||||||||||||||
Radisson Lexington Hotel New York (2) |
$ | 196.69 | $ | 183.43 | 7.2 | % | 96.9 | % | 94.9 | % | 2.0 | % | $ | 190.65 | $ | 174.16 | 9.5 | % | 36.58 | % | 35.34 | % | 124 | bps | ||||||||||||||||||||||||
Renaissance Worthington |
$ | 160.33 | $ | 164.74 | (2.7 | %) | 69.4 | % | 67.3 | % | 2.1 | % | $ | 111.26 | $ | 110.87 | 0.4 | % | 28.65 | % | 34.49 | % | -584 | bps | ||||||||||||||||||||||||
Total/Weighted Average |
$ | 166.60 | $ | 161.84 | 2.9 | % | 76.0 | % | 74.7 | % | 1.3 | % | $ | 126.70 | $ | 120.89 | 4.8 | % | 26.99 | % | 27.20 | % | -21 | bps | ||||||||||||||||||||||||
Comparable Total/Weighted Avg. (3) |
$ | 163.78 | $ | 157.14 | 4.2 | % | 75.7 | % | 74.2 | % | 1.5 | % | $ | 124.03 | $ | 116.60 | 6.4 | % | 27.87 | % | 26.83 | % | 104 | bps | ||||||||||||||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys 25 hotels owned as of June 17, 2011 as if they were owned since January 1, 2010. | |
(2) | The hotel reports results on a monthly basis. The data presented is based upon the Companys reporting calendar for the second quarter and includes the months of March, April, and May. | |
(3) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort from all periods presented due to the extensive ongoing renovation. |
- 15 -
Pro Forma Operating Statistics Year to Date (1)
ADR | Occupancy | RevPAR | Hotel Adjusted EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||||
YTD 2011 | YTD 2010 | B/(W) | YTD 2011 | YTD 2010 | B/(W) | YTD 2011 | YTD 2010 | B/(W) | YTD 2011 | YTD 2010 | B/(W) | |||||||||||||||||||||||||||||||||||||
Atlanta Alpharetta |
$ | 134.19 | $ | 119.44 | 12.3 | % | 68.4 | % | 66.8 | % | 1.6 | % | $ | 91.77 | $ | 79.75 | 15.1 | % | 31.50 | % | 25.53 | % | 597 | bps | ||||||||||||||||||||||||
Westin Atlanta North (2) |
$ | 108.56 | $ | 102.42 | 6.0 | % | 70.0 | % | 71.1 | % | (1.1 | %) | $ | 75.95 | $ | 72.79 | 4.3 | % | 15.49 | % | 15.94 | % | -45 | bps | ||||||||||||||||||||||||
Atlanta Waverly |
$ | 130.69 | $ | 129.43 | 1.0 | % | 67.0 | % | 65.2 | % | 1.8 | % | $ | 87.55 | $ | 84.36 | 3.8 | % | 23.36 | % | 21.33 | % | 203 | bps | ||||||||||||||||||||||||
Renaissance Austin |
$ | 144.45 | $ | 143.70 | 0.5 | % | 66.7 | % | 63.8 | % | 2.9 | % | $ | 96.39 | $ | 91.72 | 5.1 | % | 30.92 | % | 31.22 | % | -30 | bps | ||||||||||||||||||||||||
Bethesda Marriott Suites |
$ | 175.60 | $ | 166.99 | 5.2 | % | 66.5 | % | 66.9 | % | (0.4 | %) | $ | 116.80 | $ | 111.80 | 4.5 | % | 29.05 | % | 25.38 | % | 367 | bps | ||||||||||||||||||||||||
Boston Westin (2) |
$ | 185.47 | $ | 187.61 | (1.1 | %) | 64.7 | % | 63.2 | % | 1.5 | % | $ | 120.00 | $ | 118.63 | 1.2 | % | 19.03 | % | 22.42 | % | -339 | bps | ||||||||||||||||||||||||
Renaissance Charleston |
$ | 176.19 | $ | 158.79 | 11.0 | % | 84.1 | % | 82.3 | % | 1.8 | % | $ | 148.26 | $ | 130.76 | 13.4 | % | 35.45 | % | 34.60 | % | 85 | bps | ||||||||||||||||||||||||
Hilton Garden Inn Chelsea (2) |
$ | 187.66 | $ | 174.35 | 7.6 | % | 90.1 | % | 87.8 | % | 2.3 | % | $ | 169.09 | $ | 153.15 | 10.4 | % | 40.97 | % | 38.29 | % | 268 | bps | ||||||||||||||||||||||||
Chicago Marriott |
$ | 189.57 | $ | 177.18 | 7.0 | % | 62.9 | % | 65.2 | % | (2.3 | %) | $ | 119.19 | $ | 115.53 | 3.2 | % | 17.75 | % | 15.54 | % | 221 | bps | ||||||||||||||||||||||||
Chicago Conrad (2) |
$ | 170.74 | $ | 158.74 | 7.6 | % | 78.8 | % | 70.6 | % | 8.2 | % | $ | 134.60 | $ | 112.12 | 20.0 | % | 18.55 | % | 11.84 | % | 671 | bps | ||||||||||||||||||||||||
Courtyard Fifth Avenue |
$ | 243.45 | $ | 230.28 | 5.7 | % | 83.7 | % | 86.8 | % | (3.1 | %) | $ | 203.69 | $ | 199.92 | 1.9 | % | 24.47 | % | 24.59 | % | -12 | bps | ||||||||||||||||||||||||
Courtyard Midtown East |
$ | 241.91 | $ | 214.31 | 12.9 | % | 80.5 | % | 84.6 | % | (4.1 | %) | $ | 194.68 | $ | 181.35 | 7.4 | % | 29.67 | % | 28.08 | % | 159 | bps | ||||||||||||||||||||||||
Frenchmans Reef (2) |
$ | 253.11 | $ | 267.55 | (5.4 | %) | 82.1 | % | 84.4 | % | (2.3 | %) | $ | 207.72 | $ | 225.70 | (8.0 | %) | 20.04 | % | 34.32 | % | -1428 | bps | ||||||||||||||||||||||||
Griffin Gate Marriott |
$ | 128.31 | $ | 122.07 | 5.1 | % | 57.4 | % | 60.0 | % | (2.6 | %) | $ | 73.60 | $ | 73.20 | 0.5 | % | 21.62 | % | 18.83 | % | 279 | bps | ||||||||||||||||||||||||
JW Marriott Denver Cherry Creek (2) |
$ | 224.86 | $ | 207.38 | 8.4 | % | 67.8 | % | 70.7 | % | (2.9 | %) | $ | 152.39 | $ | 146.63 | 3.9 | % | 22.51 | % | 22.84 | % | -33 | bps | ||||||||||||||||||||||||
Los Angeles Airport |
$ | 105.19 | $ | 103.54 | 1.6 | % | 84.0 | % | 81.0 | % | 3.0 | % | $ | 88.36 | $ | 83.89 | 5.3 | % | 18.48 | % | 16.55 | % | 193 | bps | ||||||||||||||||||||||||
Hilton Minneapolis (2) |
$ | 130.59 | $ | 123.29 | 5.9 | % | 68.1 | % | 68.4 | % | (0.3 | %) | $ | 88.97 | $ | 84.29 | 5.6 | % | 24.83 | % | 23.68 | % | 115 | bps | ||||||||||||||||||||||||
Oak Brook Hills |
$ | 111.74 | $ | 105.28 | 6.1 | % | 49.4 | % | 48.2 | % | 1.2 | % | $ | 55.18 | $ | 50.74 | 8.8 | % | 3.08 | % | 4.98 | % | -190 | bps | ||||||||||||||||||||||||
Orlando Airport Marriott |
$ | 104.61 | $ | 102.29 | 2.3 | % | 81.5 | % | 74.8 | % | 6.7 | % | $ | 85.23 | $ | 76.51 | 11.4 | % | 26.98 | % | 23.37 | % | 361 | bps | ||||||||||||||||||||||||
Salt Lake City Marriott |
$ | 126.18 | $ | 134.25 | (6.0 | %) | 60.8 | % | 54.1 | % | 6.7 | % | $ | 76.75 | $ | 72.68 | 5.6 | % | 25.50 | % | 28.01 | % | -251 | bps | ||||||||||||||||||||||||
The Lodge at Sonoma |
$ | 189.95 | $ | 176.23 | 7.8 | % | 64.7 | % | 59.2 | % | 5.5 | % | $ | 122.93 | $ | 104.39 | 17.8 | % | 5.93 | % | 3.87 | % | 206 | bps | ||||||||||||||||||||||||
Torrance Marriott South Bay |
$ | 105.87 | $ | 100.32 | 5.5 | % | 78.4 | % | 82.5 | % | (4.1 | %) | $ | 83.01 | $ | 82.81 | 0.2 | % | 23.11 | % | 19.87 | % | 324 | bps | ||||||||||||||||||||||||
Vail Marriott (2) |
$ | 278.73 | $ | 262.31 | 6.3 | % | 62.7 | % | 65.8 | % | (3.1 | %) | $ | 174.76 | $ | 172.64 | 1.2 | % | 34.19 | % | 36.86 | % | -267 | bps | ||||||||||||||||||||||||
Radisson Lexington Hotel New York (2) |
$ | 170.71 | $ | 161.79 | 5.5 | % | 94.0 | % | 92.6 | % | 1.4 | % | $ | 160.45 | $ | 149.86 | 7.1 | % | 27.97 | % | 27.10 | % | 87 | bps | ||||||||||||||||||||||||
Renaissance Worthington |
$ | 166.72 | $ | 159.72 | 4.4 | % | 71.8 | % | 71.8 | % | 0.0 | % | $ | 119.78 | $ | 114.65 | 4.5 | % | 34.51 | % | 34.33 | % | 18 | bps | ||||||||||||||||||||||||
Total/Weighted Average |
$ | 158.35 | $ | 153.51 | 3.2 | % | 71.7 | % | 71.0 | % | 0.7 | % | $ | 113.46 | $ | 108.97 | 4.1 | % | 23.27 | % | 23.65 | % | -38 | bps | ||||||||||||||||||||||||
Comparable Total/Weighted Avg. (3) |
$ | 154.56 | $ | 148.09 | 4.4 | % | 71.3 | % | 70.5 | % | 0.8 | % | $ | 110.19 | $ | 104.33 | 5.6 | % | 23.50 | % | 22.68 | % | 82 | bps | ||||||||||||||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys 25 hotels owned as of June 17, 2011 as if they were owned since January 1, 2010 | |
(2) | The hotel reports results on a monthly basis. The data presented is based upon the Companys reporting calendar and includes the months of January through May. | |
(3) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort from all periods presented due to the extensive ongoing renovation. |
- 16 -
Pro Forma Hotel Adjusted EBITDA Reconciliation
Second Quarter 2011 (1) | ||||||||||||||||||||||||
Plus: | Equals: | |||||||||||||||||||||||
Plus: | Plus: | Non-Cash | Hotel Adjusted | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Adjustments (2) | EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 3,570 | $ | 762 | $ | 288 | $ | | $ | | $ | 1,050 | ||||||||||||
Westin Atlanta North (3) |
$ | 4,220 | $ | 288 | $ | 415 | $ | | $ | | $ | 703 | ||||||||||||
Atlanta Waverly |
$ | 6,581 | $ | (833 | ) | $ | 1,080 | $ | 1,251 | $ | | $ | 1,498 | |||||||||||
Renaissance Austin |
$ | 6,314 | $ | (426 | ) | $ | 952 | $ | 1,075 | $ | | $ | 1,601 | |||||||||||
Bethesda Marriott Suites |
$ | 4,271 | $ | (434 | ) | $ | 483 | $ | | $ | 1,446 | $ | 1,495 | |||||||||||
Boston Westin (3) |
$ | 18,731 | $ | 2,428 | $ | 2,863 | $ | | $ | 117 | $ | 5,408 | ||||||||||||
Renaissance Charleston |
$ | 3,001 | $ | 961 | $ | 332 | $ | | $ | (29 | ) | $ | 1,264 | |||||||||||
Hilton Garden Inn Chelsea (3) |
$ | 3,158 | $ | 1,076 | $ | 424 | $ | | $ | | $ | 1,500 | ||||||||||||
Chicago Marriott |
$ | 23,699 | $ | 893 | $ | 2,949 | $ | 3,059 | $ | (365 | ) | $ | 6,536 | |||||||||||
Chicago Conrad (3) (5) |
$ | 6,133 | $ | 662 | $ | 1,136 | $ | | $ | | $ | 1,798 | ||||||||||||
Courtyard Fifth Avenue |
$ | 3,863 | $ | 67 | $ | 439 | $ | 798 | $ | 48 | $ | 1,352 | ||||||||||||
Courtyard Midtown East |
$ | 6,462 | $ | 1,189 | $ | 530 | $ | 909 | $ | | $ | 2,628 | ||||||||||||
Frenchmans Reef (3) |
$ | 10,771 | $ | (329 | ) | $ | 978 | $ | 705 | $ | | $ | 1,354 | |||||||||||
Griffin Gate Marriott |
$ | 6,442 | $ | 1,284 | $ | 763 | $ | | $ | (1 | ) | $ | 2,046 | |||||||||||
JW Marriott Denver Cherry Creek (3) |
$ | 4,676 | $ | 165 | $ | 420 | $ | 573 | $ | | $ | 1,158 | ||||||||||||
Los Angeles Airport |
$ | 12,349 | $ | (247 | ) | $ | 1,516 | $ | 1,035 | $ | | $ | 2,304 | |||||||||||
Minneapolis Hilton (3) |
$ | 12,450 | $ | 1,104 | $ | 1,694 | $ | 983 | $ | (116 | ) | $ | 3,665 | |||||||||||
Oak Brook Hills |
$ | 5,577 | $ | 156 | $ | 735 | $ | | $ | 125 | $ | 1,016 | ||||||||||||
Orlando Airport Marriott |
$ | 4,394 | $ | (755 | ) | $ | 754 | $ | 783 | $ | | $ | 782 | |||||||||||
Salt Lake City Marriott |
$ | 5,056 | $ | 366 | $ | 628 | $ | 404 | $ | | $ | 1,398 | ||||||||||||
The Lodge at Sonoma |
$ | 3,996 | $ | 398 | $ | 322 | $ | | $ | | $ | 720 | ||||||||||||
Torrance Marriott South Bay |
$ | 5,004 | $ | 523 | $ | 737 | $ | | $ | | $ | 1,260 | ||||||||||||
Vail Marriott (3) |
$ | 5,246 | $ | 620 | $ | 507 | $ | | $ | | $ | 1,127 | ||||||||||||
Radisson Lexington Hotel New York (3) |
$ | 13,189 | $ | 2,470 | $ | 2,355 | $ | | $ | | $ | 4,825 | ||||||||||||
Renaissance Worthington |
$ | 7,467 | $ | 797 | $ | 625 | $ | 714 | $ | 3 | $ | 2,139 | ||||||||||||
Total |
$ | 186,620 | $ | 13,185 | $ | 23,925 | $ | 12,289 | $ | 1,228 | $ | 50,360 | ||||||||||||
Comparable Total (4) |
$ | 175,849 | $ | 13,514 | $ | 22,947 | $ | 11,584 | $ | 1,228 | $ | 49,006 | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys 25 hotels owned as of June 17, 2011 as if they were owned since January 1, 2010. | |
(2) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of favorable lease assets, and the non-cash amortization of unfavorable contract liabilities. | |
(3) | The hotel reports results on a monthly basis. The amounts presented are based on the Companys reporting calendar for the second quarter and include the months of March, April, and May. | |
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due to the extensive ongoing renovation. | |
(5) | Does not include the $0.9 million accrual for the net repayment of key money |
- 17 -
Pro Forma Hotel Adjusted EBITDA Reconciliation
Second Quarter 2010 (1) | ||||||||||||||||||||||||
Plus: | Equals: | |||||||||||||||||||||||
Plus: | Plus: | Non-Cash | Hotel Adjusted | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Adjustments (2) | EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 2,979 | $ | 392 | $ | 292 | $ | | $ | | $ | 684 | ||||||||||||
Westin Atlanta North (3) |
$ | 4,152 | $ | 300 | $ | 426 | $ | | $ | | $ | 726 | ||||||||||||
Atlanta Waverly |
$ | 6,141 | $ | (1,272 | ) | $ | 1,050 | $ | 1,251 | $ | | $ | 1,029 | |||||||||||
Renaissance Austin |
$ | 6,867 | $ | 154 | $ | 965 | $ | 1,073 | $ | | $ | 2,192 | ||||||||||||
Bethesda Marriott Suites |
$ | 3,802 | $ | (900 | ) | $ | 511 | $ | | $ | 1,453 | $ | 1,064 | |||||||||||
Boston Westin (3) |
$ | 19,435 | $ | 2,744 | $ | 2,890 | $ | | $ | 117 | $ | 5,751 | ||||||||||||
Renaissance Charleston |
$ | 2,709 | $ | 780 | $ | 384 | $ | | $ | (29 | ) | $ | 1,135 | |||||||||||
Hilton Garden Inn Chelsea (3) |
$ | 2,781 | $ | 709 | $ | 504 | $ | | $ | | $ | 1,213 | ||||||||||||
Chicago Marriott |
$ | 23,403 | $ | 383 | $ | 3,125 | $ | 3,079 | $ | (365 | ) | $ | 6,222 | |||||||||||
Chicago Conrad (3) |
$ | 5,210 | $ | 82 | $ | 1,105 | $ | | $ | | $ | 1,187 | ||||||||||||
Courtyard Fifth Avenue |
$ | 3,660 | $ | (52 | ) | $ | 436 | $ | 799 | $ | 48 | $ | 1,231 | |||||||||||
Courtyard Midtown East |
$ | 6,009 | $ | 826 | $ | 520 | $ | 915 | $ | | $ | 2,261 | ||||||||||||
Frenchmans Reef (3) |
$ | 15,588 | $ | 3,156 | $ | 898 | $ | 799 | $ | | $ | 4,853 | ||||||||||||
Griffin Gate Marriott |
$ | 6,222 | $ | 1,040 | $ | 753 | $ | | $ | (1 | ) | $ | 1,792 | |||||||||||
JW Marriott Denver Cherry Creek (3) |
$ | 4,431 | $ | 102 | $ | 420 | $ | 585 | $ | | $ | 1,107 | ||||||||||||
Los Angeles Airport |
$ | 11,103 | $ | (885 | ) | $ | 1,312 | $ | 1,036 | $ | | $ | 1,463 | |||||||||||
Minneapolis Hilton (3) |
$ | 11,929 | $ | 2,082 | $ | 1,707 | $ | | $ | (263 | ) | $ | 3,526 | |||||||||||
Oak Brook Hills |
$ | 5,423 | $ | (2 | ) | $ | 748 | $ | | $ | 125 | $ | 871 | |||||||||||
Orlando Airport Marriott |
$ | 4,148 | $ | (790 | ) | $ | 740 | $ | 785 | $ | | $ | 735 | |||||||||||
Salt Lake City Marriott |
$ | 4,823 | $ | 142 | $ | 714 | $ | 423 | $ | | $ | 1,279 | ||||||||||||
The Lodge at Sonoma |
$ | 3,484 | $ | 170 | $ | 327 | $ | | $ | | $ | 497 | ||||||||||||
Torrance Marriott South Bay |
$ | 4,967 | $ | 303 | $ | 758 | $ | | $ | | $ | 1,061 | ||||||||||||
Vail Marriott (3) |
$ | 5,573 | $ | 695 | $ | 711 | $ | | $ | | $ | 1,406 | ||||||||||||
Radisson Lexington Hotel New York (3) |
$ | 12,091 | $ | 1,918 | $ | 2,355 | $ | | $ | | $ | 4,273 | ||||||||||||
Renaissance Worthington |
$ | 8,135 | $ | 1,286 | $ | 793 | $ | 724 | $ | 3 | $ | 2,806 | ||||||||||||
Total |
$ | 185,065 | $ | 13,363 | $ | 24,444 | $ | 11,469 | $ | 1,088 | $ | 50,329 | ||||||||||||
Comparable Total (4) |
$ | 169,477 | $ | 10,207 | $ | 23,546 | $ | 10,670 | $ | 1,088 | $ | 45,476 | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys 25 hotels owned as of June 17, 2011 as if they were owned as of January 1, 2010. | |
(2) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of our favorable lease assets and the non-cash amortization of our unfavorable contract liabilities. | |
(3) | The hotel reports results on a monthly basis. The data presented is based upon the Companys reporting calendar for the second quarter and includes the months of March, April, and May. | |
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due to the extensive ongoing renovation. |
- 18 -
Pro Forma Hotel Adjusted EBITDA Reconciliation
Year to Date 2011 (1) | ||||||||||||||||||||||||
Plus: | Equals: | |||||||||||||||||||||||
Plus: | Plus: | Non-Cash | Hotel Adjusted | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Adjustments (2) | EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 7,241 | $ | 1,708 | $ | 573 | $ | | $ | | $ | 2,281 | ||||||||||||
Westin Atlanta North (3) |
$ | 6,720 | $ | 198 | $ | 843 | $ | | $ | | $ | 1,041 | ||||||||||||
Atlanta Waverly |
$ | 14,002 | $ | (1,384 | ) | $ | 2,152 | $ | 2,503 | $ | | $ | 3,271 | |||||||||||
Renaissance Austin |
$ | 14,076 | $ | 294 | $ | 1,910 | $ | 2,148 | $ | | $ | 4,352 | ||||||||||||
Bethesda Marriott Suites |
$ | 7,354 | $ | (1,731 | ) | $ | 970 | $ | | $ | 2,897 | $ | 2,136 | |||||||||||
Boston Westin (3) |
$ | 24,952 | $ | (1,256 | ) | $ | 5,771 | $ | | $ | 234 | $ | 4,749 | |||||||||||
Renaissance Charleston |
$ | 5,052 | $ | 1,186 | $ | 663 | $ | | $ | (58 | ) | $ | 1,791 | |||||||||||
Hilton Garden Inn Chelsea (3) |
$ | 4,469 | $ | 985 | $ | 846 | $ | | $ | | $ | 1,831 | ||||||||||||
Chicago Marriott |
$ | 36,106 | $ | (5,231 | ) | $ | 6,262 | $ | 6,108 | $ | (730 | ) | $ | 6,409 | ||||||||||
Chicago Conrad (3)(5) |
$ | 8,235 | $ | (745 | ) | $ | 2,273 | $ | | $ | | $ | 1,528 | |||||||||||
Courtyard Fifth Avenue |
$ | 6,466 | $ | (988 | ) | $ | 878 | $ | 1,597 | $ | 95 | $ | 1,582 | |||||||||||
Courtyard Midtown East |
$ | 10,660 | $ | 262 | $ | 1,062 | $ | 1,839 | $ | | $ | 3,163 | ||||||||||||
Frenchmans Reef (3) |
$ | 20,406 | $ | 656 | $ | 1,931 | $ | 1,503 | $ | | $ | 4,090 | ||||||||||||
Griffin Gate Marriott |
$ | 9,773 | $ | 579 | $ | 1,536 | $ | | $ | (2 | ) | $ | 2,113 | |||||||||||
JW Marriott Denver Cherry Creek (3) |
$ | 7,302 | $ | (342 | ) | $ | 840 | $ | 1,146 | $ | | $ | 1,644 | |||||||||||
Los Angeles Airport |
$ | 24,605 | $ | (350 | ) | $ | 2,825 | $ | 2,071 | $ | | $ | 4,546 | |||||||||||
Minneapolis Hilton (3) |
$ | 18,578 | $ | 577 | $ | 3,376 | $ | 983 | $ | (324 | ) | $ | 4,612 | |||||||||||
Oak Brook Hills |
$ | 8,185 | $ | (1,475 | ) | $ | 1,477 | $ | | $ | 250 | $ | 252 | |||||||||||
Orlando Airport Marriott |
$ | 10,408 | $ | (269 | ) | $ | 1,509 | $ | 1,568 | $ | | $ | 2,808 | |||||||||||
Salt Lake City Marriott |
$ | 9,828 | $ | 437 | $ | 1,256 | $ | 813 | $ | | $ | 2,506 | ||||||||||||
The Lodge at Sonoma |
$ | 6,598 | $ | (260 | ) | $ | 651 | $ | | $ | | $ | 391 | |||||||||||
Torrance Marriott South Bay |
$ | 9,670 | $ | 762 | $ | 1,473 | $ | | $ | | $ | 2,235 | ||||||||||||
Vail Marriott (3) |
$ | 11,740 | $ | 2,998 | $ | 1,016 | $ | | $ | | $ | 4,014 | ||||||||||||
Radisson Lexington Hotel New York (3) |
$ | 18,408 | $ | 439 | $ | 4,710 | $ | | $ | | $ | 5,149 | ||||||||||||
Renaissance Worthington |
$ | 15,898 | $ | 2,800 | $ | 1,251 | $ | 1,431 | $ | 5 | $ | 5,487 | ||||||||||||
Total |
$ | 316,732 | $ | (150 | ) | $ | 48,054 | $ | 23,710 | $ | 2,367 | $ | 73,713 | |||||||||||
Comparable Total (4) |
$ | 296,326 | $ | (806 | ) | $ | 46,123 | $ | 22,207 | $ | 2,367 | $ | 69,623 | |||||||||||
(1) | The pro forma operating data includes the operating results for the Companys 25 hotels owned as of June 17, 2011 as if they were owned as of January 1, 2010. | |
(2) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of our favorable lease assets and the non-cash amortization of our unfavorable contract liabilities. | |
(3) | The hotel reports results on a monthly basis. The data presented is based upon the Companys reporting calendar and includes the months of January through May. | |
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due to the extensive ongoing renovation. | |
(5) | Does not include the $0.9 million accrual for the net repayment of key money. |
- 19 -
Pro Forma Hotel Adjusted EBITDA Reconciliation
Year to Date 2010 (1) | ||||||||||||||||||||||||
Plus: | Equals: | |||||||||||||||||||||||
Plus: | Plus: | Non-Cash | Hotel Adjusted | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Adjustments (2) | EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 6,353 | $ | 1,050 | $ | 572 | $ | | $ | | $ | 1,622 | ||||||||||||
Westin Atlanta North (3) |
$ | 6,580 | $ | 215 | $ | 834 | $ | | $ | | $ | 1,049 | ||||||||||||
Atlanta Waverly |
$ | 13,959 | $ | (1,629 | ) | $ | 2,089 | $ | 2,518 | $ | | $ | 2,978 | |||||||||||
Renaissance Austin |
$ | 13,946 | $ | 285 | $ | 1,911 | $ | 2,158 | $ | | $ | 4,354 | ||||||||||||
Bethesda Marriott Suites |
$ | 6,790 | $ | (2,214 | ) | $ | 1,020 | $ | | $ | 2,917 | $ | 1,723 | |||||||||||
Boston Westin (3) |
$ | 26,366 | $ | (98 | ) | $ | 5,776 | $ | | $ | 234 | $ | 5,912 | |||||||||||
Renaissance Charleston |
$ | 4,613 | $ | 886 | $ | 768 | $ | | $ | (58 | ) | $ | 1,596 | |||||||||||
Hilton Garden Inn Chelsea (3) |
$ | 4,048 | $ | 542 | $ | 1,008 | $ | | $ | | $ | 1,550 | ||||||||||||
Chicago Marriott |
$ | 35,479 | $ | (6,161 | ) | $ | 6,198 | $ | 6,207 | $ | (730 | ) | $ | 5,514 | ||||||||||
Chicago Conrad (3) |
$ | 7,043 | $ | (1,378 | ) | $ | 2,212 | $ | | $ | | $ | 834 | |||||||||||
Courtyard Fifth Avenue |
$ | 6,341 | $ | (1,017 | ) | $ | 873 | $ | 1,606 | $ | 97 | $ | 1,559 | |||||||||||
Courtyard Midtown East |
$ | 9,994 | $ | (106 | ) | $ | 1,039 | $ | 1,873 | $ | | $ | 2,806 | |||||||||||
Frenchmans Reef (3) |
$ | 26,330 | $ | 8,801 | $ | 1,771 | $ | (1,536 | ) | $ | | $ | 9,036 | |||||||||||
Griffin Gate Marriott |
$ | 10,005 | $ | 355 | $ | 1,531 | $ | | $ | (2 | ) | $ | 1,884 | |||||||||||
JW Marriott Denver Cherry Creek (3) |
$ | 6,886 | $ | (437 | ) | $ | 840 | $ | 1,170 | $ | | $ | 1,573 | |||||||||||
Los Angeles Airport |
$ | 23,371 | $ | (828 | ) | $ | 2,612 | $ | 2,084 | $ | | $ | 3,868 | |||||||||||
Minneapolis Hilton (3) |
$ | 17,507 | $ | 1,169 | $ | 3,414 | $ | | $ | (438 | ) | $ | 4,145 | |||||||||||
Oak Brook Hills |
$ | 8,332 | $ | (1,329 | ) | $ | 1,494 | $ | | $ | 250 | $ | 415 | |||||||||||
Orlando Airport Marriott |
$ | 9,636 | $ | (803 | ) | $ | 1,476 | $ | 1,579 | $ | | $ | 2,252 | |||||||||||
Salt Lake City Marriott |
$ | 9,931 | $ | 496 | $ | 1,431 | $ | 855 | $ | | $ | 2,782 | ||||||||||||
The Lodge at Sonoma |
$ | 5,735 | $ | (423 | ) | $ | 645 | $ | | $ | | $ | 222 | |||||||||||
Torrance Marriott South Bay |
$ | 9,503 | $ | 384 | $ | 1,504 | $ | | $ | | $ | 1,888 | ||||||||||||
Vail Marriott (3) |
$ | 12,218 | $ | 3,081 | $ | 1,423 | $ | | $ | | $ | 4,504 | ||||||||||||
Radisson Lexington Hotel New York (3) |
$ | 17,204 | $ | (47 | ) | $ | 4,710 | $ | | $ | | $ | 4,663 | |||||||||||
Renaissance Worthington |
$ | 16,043 | $ | 2,468 | $ | 1,574 | $ | 1,460 | $ | 5 | $ | 5,507 | ||||||||||||
Total |
$ | 314,213 | $ | 3,262 | $ | 48,725 | $ | 19,974 | $ | 2,275 | $ | 74,314 | ||||||||||||
Comparable Total (4) |
$ | 287,883 | $ | (5,539 | ) | $ | 46,954 | $ | 21,510 | $ | 2,275 | $ | 65,278 | |||||||||||
(1) | The pro forma operating data includes the operating results for the Companys 25 hotels owned as of June 17, 2011 as if they were owned as of January 1, 2010. | |
(2) | The non-cash adjustments include expenses incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of our favorable lease assets and the non-cash amortization of our unfavorable contract liabilities. | |
(3) | The hotel reports results on a monthly basis. The data presented is based upon the Companys reporting calendar and includes the months of January through May. | |
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due to the extensive ongoing renovation. |
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