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8-K - FORM 8-K - DiamondRock Hospitality Co | c23427e8vk.htm |
Exhibit 99.1
COMPANY CONTACT
Chris King
(240) 744-1150
(240) 744-1150
FOR IMMEDIATE RELEASE
WEDNESDAY, OCTOBER 19, 2011
DIAMONDROCK HOSPITALITY COMPANY REPORTS STRONG THIRD QUARTER RESULTS AND ENTERS AGREEMENT TO SELL
THREE HOTELS FOR $262.5 MILLION
BETHESDA, Maryland, Wednesday October 19, 2011 DiamondRock Hospitality Company (the Company)
(NYSE: DRH) today announced results of operations for its third fiscal quarter ended September 9,
2011 and that it has entered into a purchase and sale agreement to sell a portfolio of three
non-core hotels. The Company is a lodging-focused real estate investment trust that owns a
portfolio of premium hotels in the United States.
Third Quarter 2011 Highlights
| Sale Agreement for Three-Hotel Portfolio: The Company entered into an agreement to sell a portfolio of three non-core hotels, the Griffin Gate Marriott Resort and Spa, Renaissance Waverly and Renaissance Austin, to an affiliate of Inland American for a contractual purchase price of $262.5 million. The sale is expected to close by the end of the year. | ||
| Pro Forma RevPAR: The Companys Pro Forma RevPAR was $126.05, an increase of 7.2% from the comparable period in 2010. Pro Forma RevPAR is calculated assuming the Company owned all of its hotels since January 1, 2010 but excludes the operating results of the Frenchmans Reef & Morning Star Marriott Beach Resort due to the impact of the extensive renovation of the hotel in 2011. | ||
| Pro Forma Hotel Adjusted EBITDA Margin: The Companys Pro Forma Hotel Adjusted EBITDA margin was 27.19%, an increase of 44 basis points from the comparable period in 2010. Pro Forma Hotel Adjusted EBITDA margin is calculated assuming the Company owned all of its hotels since January 1, 2010 but excludes Frenchmans Reef & Morning Star Marriott Beach Resort. | ||
| Adjusted EBITDA: The Companys Adjusted EBITDA was $41.7 million. | ||
| Adjusted FFO: The Companys Adjusted FFO was $26.2 million and Adjusted FFO per diluted share was $0.16. | ||
| Acquisition of the Courtyard Denver: On July 22, 2011, the Company acquired the Courtyard Denver Downtown for approximately $46 million. | ||
| Dividends: The Company declared a quarterly dividend of $0.08 per share during the third quarter. |
Mark W. Brugger, Chief Executive Officer of DiamondRock Hospitality Company, stated, We are
pleased to announce the pending sale of three non-core hotels. The sale improves our portfolio
quality, increases our concentration in key urban gateway locations, and provides DiamondRock with
significant investment capacity to be opportunistic despite the turmoil in the capital markets.
The third quarter results reflect strong lodging fundamentals and our group booking pace for 2012
is excellent, with group revenue on the books up 10 percent.
Sale Agreement for Three-Hotel Portfolio
The Company has entered into a purchase and sale agreement to sell a portfolio of three non-core
hotels to an affiliate of Inland American for a contractual purchase price of $262.5 million. The
1,422-room portfolio consists of the 409-room Griffin Gate Marriott Resort and Spa located in
Lexington, Kentucky, the 521-room Renaissance Waverly located in Atlanta, Georgia, and the 492-room
Renaissance Austin located in the Arboretum submarket of Austin, Texas.
Upon the sale of the hotels, the Company expects to receive net cash proceeds of approximately $80
million and be relieved of $180 million of mortgage debt. The transaction is expected to close
during the fourth quarter and is subject to the satisfaction of closing conditions, including the
receipt of lender consents. The Company expects to record a net gain upon completion of the
transaction of approximately $5.0 million to $6.0 million.
Excluding the three hotels improves the Companys 2011 Pro Forma RevPAR by nearly $5. The
disposition lowers the Companys leverage by reducing its 2011 Pro Forma Net
Debt-to-EBITDA ratio to 4.8 times from 5.6 times.
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 Margin assume the Company owned its 26 hotels 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 third quarter beginning June 18, 2011 and ending September 9, 2011, the Company reported
the following:
| Pro Forma RevPAR growth of 7.2% and Pro Forma Hotel Adjusted EBITDA margin expansion of 44 basis points compared to the comparable period in 2010. | ||
| Revenues of $179.0 million compared to $151.1 million for the comparable period in 2010. | ||
| Adjusted EBITDA of $41.7 million compared to $33.0 million for the comparable period in 2010. | ||
| Adjusted FFO of $26.2 million and Adjusted FFO per diluted share of $0.16 compared to $22.4 million and $0.15, respectively, for the comparable period in 2010. | ||
| Net loss of $1.0 million (or $0.01 per diluted share) compared to a net loss of $3.5 million (or $0.02 per diluted share) for the comparable period in 2010. |
The third quarter Pro Forma RevPAR growth of 7.2% (from $117.63 to $126.05) was driven by a 2.7%
increase in the average daily rate (from $153.32 to $157.41) and a 3.4 percentage point increase in
occupancy (from 76.7 percent to 80.1 percent). The third quarter Pro Forma Hotel Adjusted EBITDA
margin increased 44 basis points (from 26.75% to 27.19%) from the comparable period in 2010.
If the three-hotel portfolio to be sold were excluded, the Companys third quarter Pro Forma RevPAR
growth would improve to 7.3% and Hotel Adjusted EBITDA margin expansion would improve to 170 basis
points.
The Companys third quarter Pro Forma Hotel Adjusted EBITDA margin was negatively impacted by an
increase in property taxes as a result of the expiration of the PILOT program at the Westin Boston
Waterfront Hotel and a difficult comparison from the successful multi-year property tax appeal at
the Renaissance Waverly recorded during the third quarter of 2010. Excluding these property tax
items, the Companys Pro Forma Hotel Adjusted EBIDTA margin growth would increase to 185 basis
points.
- 2 -
The Companys third quarter results reflect $1.2 million of legal expenses incurred related to the
bankruptcy proceedings of the Allerton Hotel and a $1.7 million accrual for the tentative
settlement of litigation at the Los Angeles Airport Marriott, which is discussed further below.
For the period from January 1, 2011 to September 9, 2011, the Company reported the following:
| Pro Forma RevPAR growth of 6.1% and Pro Forma Hotel Adjusted EBITDA margin expansion of 66 basis points compared to the comparable period in 2010. | ||
| Revenues of $470.8 million compared to $415.1 million for the comparable period in 2010. | ||
| Adjusted EBITDA of $101.7 million compared to $87.3 million for the comparable period in 2010. | ||
| Adjusted FFO of $63.6 million and Adjusted FFO per diluted share of $0.38 compared to $56.0 million and $0.40, respectively, for the comparable period in 2010. | ||
| Net loss of $12.6 million (or $0.08 per diluted share) compared to a net loss of $11.0 million (or $0.08 per diluted share) for the comparable period in 2010. |
The year-to-date Pro Forma RevPAR growth of 6.1% (from $109.03 to $115.68) was driven by a 3.7%
increase in the average daily rate (from $149.95 to $155.55) and a 1.7 percentage point increase in
occupancy (from 72.7 percent to 74.4 percent). Year-to-date Pro Forma Hotel Adjusted EBITDA margin
increased 66 basis points (from 24.35% to 25.01%) from the comparable period in 2010.
If the three-hotel portfolio to be sold were excluded, the Companys year-to-date Pro Forma RevPAR
growth would improve to 6.3% and Hotel Adjusted EBITDA margin expansion would improve to 108 basis
points.
Dividends
The Companys Board of Directors declared a quarterly dividend of $0.08 per share to stockholders
of record as of September 9, 2011. The dividend was paid on September 20, 2011.
Conrad Chicago-New Performance Guarantee
The Company has furthered its positive relationship with Hilton. In October 2011, the Company and
Hilton amended the management agreement for the Conrad Chicago to include a performance guarantee
for the remaining term of the agreement, which ends in 2015. Additionally, the Company believes that there are
compelling investment opportunities at the hotel and expects to invest $3.5 million in the hotel to
add 4,100 square feet of new meeting space, reposition the food and beverage outlets and re-concept
the hotel lobby.
The Conrad Chicago had failed the performance test under the management agreement. During the
second quarter, the Company accrued approximately $1.0 million for repayment of key money to Hilton
due upon termination. After discussions, the Company and Hilton agreed to restructure the
management agreement and retain the Conrad brand. Under the terms of the amended management
agreement the key money repayment is no longer due. Accordingly, the Company reversed the $1.0
million key money repayment accrual during the third quarter, which is deducted in calculating the
Companys Adjusted EBITDA and Adjusted FFO.
Courtyard Denver Downtown Acquisition
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 (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.
- 3 -
Allerton Hotel Mortgage Loan Update
The Company owns the senior mortgage loan secured by the Allerton Hotel, located in
downtown Chicago, Illinois. The loan matured in January 2010 and is in default. During the second
quarter of 2011, the borrower filed for bankruptcy protection in the Northern District of Illinois.
The senior mortgage loan is secured by substantially all of the assets of the borrower, including
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. The Company continues to vigorously pursue its rights in the bankruptcy case and expects
resolution by next summer.
The Company has incurred approximately $1.2 million in legal fees as of September 9, 2011 and
expects to incur an additional $1.0 million of legal fees during the remainder of the year. These
legal costs were not fully reflected in the Companys prior earnings guidance.
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. During
the period from January 1, 2011 to September 9, 2011, the Company received $1.7 million of cash
interest payments from the borrower. Subsequent to September 9, 2011, the Company received
additional cash interest payments of $0.5 million. The Companys 2011 Adjusted EBITDA and Adjusted
FFO guidance assumes $1.3 million of cash interest payments will be received in the fourth quarter
of 2011 on the Allerton loan. Subsequent to the end of the third fiscal quarter, the borrower
agreed to continue to pay interest at the default rate through December 2011. The Company agreed
to fund cash flow shortfalls, if any, during the first quarter of 2012 up to $800,000, which will
be treated as additional principal.
Los Angeles Airport Marriott Litigation
During the third quarter, the Company accrued $1.7 million for its contribution to the settlement
of litigation involving its Los Angeles Airport Marriott. The settlement was recorded in
corporate expenses and is added back in calculating the Companys Adjusted EBITDA and Adjusted FFO
due to the unusual and one-time nature of the charge. The Company and certain other defendants
reached a tentative settlement of the matter, which involved claims by certain employees at the Los
Angeles Airport Marriott. The settlement is pending approval by the Superior Court of California,
Los Angeles County.
Capital Expenditures
During 2011, the Company continued to invest in its portfolio. The Company commenced or plans to
commence approximately $65 million of capital improvements at its hotels. Of that amount,
approximately $40 million will be funded from corporate cash, $20 million from restricted cash
reserves held by hotel managers and $5 million from Marriott International as a contribution
towards the capital investment program at Frenchmans Reef. In total, the Company has invested approximately
$35 million in capital improvements at its hotels through September 9, 2011.
The Companys 2011 capital expenditures budget includes approximately $37 million for the 2011
portion of the Frenchmans Reef capital investment program, which includes the $5 million
contribution from Marriott International. The Company has substantially completed the work
scheduled for 2011 in its 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 closed, representing approximately 300 guestrooms. In October 2011,
the hotel reopened substantially all of its guestrooms, restaurants, three new resort pools,
fitness center and state-of-the-art spa. The Company currently expects $6.5 million of displaced
profits from renovation disruption in 2011 related to this project.
- 4 -
Balance Sheet
The Company continues to maintain its straightforward capital structure. The Company has no
preferred equity outstanding and continues to own 100% of its properties.
As of September 9, 2011, the Company had $28.8 million of unrestricted cash on hand and $1.1
billion of debt outstanding, which consists of $945.9 million of fixed rate, property-specific
mortgage debt with limited near-term maturities and $130 million outstanding on the Companys $200
million corporate credit facility. Twelve of the Companys 26 hotels are unencumbered by mortgage
debt. The unencumbered hotels have a cost basis of approximately $1.0 billion.
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 hotels were owned since January 1, 2010 but excludes Frenchmans Reef for all
of 2011 because it was partially closed for the renovation.
The Company is revising its full year 2011 guidance to include its assessment of the current
hotel operator forecasts and incremental legal fees related to the Allerton Hotel bankruptcy
proceedings. In addition, the Company continues to expect to receive $3 million in cash interest
payments from the Allerton Hotel mortgage loan during 2011.
The Company expects full year results as follows:
| RevPAR to increase 6 percent to 7 percent; | ||
| Adjusted EBITDA of $166 million to $170 million; | ||
| Adjusted FFO of $105 million to $109 million, which assumes income tax expense to range from $4.4 million to $5.4 million; and | ||
| Adjusted FFO per share of $0.63 to $0.65 based on 167 million diluted weighted average shares. |
Earnings Call
The Company will host a conference call to discuss its third quarter results on Wednesday, October
19, 2011, at 10:00 a.m. Eastern Time (ET). To participate in the live call, investors are invited
to dial 888-680-0894 (for domestic callers) or 617-213-4860 (for international callers). The
participant passcode is 38397476. 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.
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 currently owns 26 premium hotels with approximately
12,000 rooms and holds one senior mortgage loan. 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.
- 5 -
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; risks associated with completing the pending
sale of the three-hotel portfolio 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.
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.
- 6 -
DIAMONDROCK HOSPITALITY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
As of September 9, 2011 and December 31, 2010
(in thousands, except share amounts)
As of September 9, 2011 and December 31, 2010
(in thousands, except share amounts)
September 9, 2011 | December 31, 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Property and equipment, at cost |
$ | 2,962,709 | $ | 2,468,289 | ||||
Less: accumulated depreciation |
(462,986 | ) | (396,686 | ) | ||||
2,499,723 | 2,071,603 | |||||||
Deferred financing costs, net |
6,720 | 5,492 | ||||||
Restricted cash |
65,645 | 51,936 | ||||||
Due from hotel managers |
65,454 | 50,715 | ||||||
Note receivable |
56,247 | 57,951 | ||||||
Favorable lease assets, net |
43,594 | 42,622 | ||||||
Prepaid and other assets |
71,445 | 50,089 | ||||||
Cash and cash equivalents |
28,777 | 84,201 | ||||||
Total assets |
$ | 2,837,605 | $ | 2,414,609 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Liabilities: |
||||||||
Mortgage debt |
$ | 945,888 | $ | 780,880 | ||||
Senior unsecured credit facility |
130,000 | | ||||||
Total debt |
1,075,888 | 780,880 | ||||||
Deferred income related to key money, net |
22,216 | 19,199 | ||||||
Unfavorable contract liabilities, net |
82,490 | 83,613 | ||||||
Due to hotel managers |
42,487 | 36,168 | ||||||
Dividends declared and unpaid |
13,569 | | ||||||
Accounts payable and accrued expenses |
91,397 | 81,232 | ||||||
Total other liabilities |
252,159 | 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;
167,502,359 and 154,570,543 shares issued
and outstanding at September 9, 2011 and
December 31, 2010, respectively |
1,675 | 1,546 | ||||||
Additional paid-in capital |
1,707,240 | 1,558,047 | ||||||
Accumulated deficit |
(199,357 | ) | (146,076 | ) | ||||
Total stockholders equity |
1,509,558 | 1,413,517 | ||||||
Total liabilities and stockholders equity |
$ | 2,837,605 | $ | 2,414,609 | ||||
- 7 -
DIAMONDROCK HOSPITALITY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Fiscal Quarters Ended September 9, 2011 and September 10, 2010 and
the Periods from January 1, 2011 to September 9, 2011 and January 1, 2010 to September 10, 2010
(in thousands, except per share amounts)
For the Fiscal Quarters Ended September 9, 2011 and September 10, 2010 and
the Periods from January 1, 2011 to September 9, 2011 and January 1, 2010 to September 10, 2010
(in thousands, except per share amounts)
Fiscal Quarter Ended | Period From | |||||||||||||||
January 1, 2011 to | January 1, 2010 to | |||||||||||||||
September 9, 2011 | September 10, 2010 | September 9, 2011 | September 10, 2010 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Revenues: |
||||||||||||||||
Rooms |
$ | 125,100 | $ | 99,703 | $ | 316,284 | $ | 267,081 | ||||||||
Food and beverage |
44,671 | 43,370 | 131,137 | 126,620 | ||||||||||||
Other |
9,224 | 8,040 | 23,347 | 21,364 | ||||||||||||
Total revenues |
178,995 | 151,113 | 470,768 | 415,065 | ||||||||||||
Operating Expenses: |
||||||||||||||||
Rooms |
33,398 | 26,979 | 84,642 | 71,510 | ||||||||||||
Food and beverage |
31,024 | 30,534 | 91,276 | 86,748 | ||||||||||||
Management fees |
5,214 | 5,080 | 15,603 | 13,634 | ||||||||||||
Other hotel expenses |
64,296 | 55,613 | 170,227 | 152,232 | ||||||||||||
Depreciation and amortization |
23,801 | 21,297 | 66,835 | 59,278 | ||||||||||||
Hotel acquisition costs |
445 | 899 | 2,604 | 1,236 | ||||||||||||
Corporate expenses |
6,453 | 3,948 | 14,901 | 10,859 | ||||||||||||
Total operating expenses |
164,631 | 144,350 | 446,088 | 395,497 | ||||||||||||
Operating profit |
14,364 | 6,763 | 24,680 | 19,568 | ||||||||||||
Other Expenses (Income): |
||||||||||||||||
Interest income |
(24 | ) | (283 | ) | (590 | ) | (650 | ) | ||||||||
Interest expense |
13,605 | 11,240 | 37,088 | 30,455 | ||||||||||||
Total other expenses |
13,581 | 10,957 | 36,498 | 29,805 | ||||||||||||
Income (loss) before income
taxes |
783 | (4,194 | ) | (11,818 | ) | (10,237 | ) | |||||||||
Income tax (expense) benefit |
(1,798 | ) | 660 | (795 | ) | (803 | ) | |||||||||
Net loss |
$ | (1,015 | ) | $ | (3,534 | ) | $ | (12,613 | ) | $ | (11,040 | ) | ||||
Loss per share: |
||||||||||||||||
Basic and diluted loss per share |
$ | (0.01 | ) | $ | (0.02 | ) | $ | (0.08 | ) | $ | (0.08 | ) | ||||
- 8 -
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 | |||||||||||||||
September 9, | September 10, | January 1, 2011 to | January 1, 2010 to | |||||||||||||
2011 | 2010 | September 9, 2011 | September 10, 2010 | |||||||||||||
Net loss |
$ | (1,015 | ) | $ | (3,534 | ) | $ | (12,613 | ) | $ | (11,040 | ) | ||||
Interest expense |
13,605 | 11,240 | 37,088 | 30,455 | ||||||||||||
Income tax expense (benefit) |
1,798 | (660 | ) | 795 | 803 | |||||||||||
Depreciation and amortization |
23,801 | 21,297 | 66,835 | 59,278 | ||||||||||||
EBITDA |
$ | 38,189 | $ | 28,343 | $ | 92,105 | $ | 79,496 | ||||||||
Full Year 2011 Forecast (in 000s) | ||||||||
Low End | High End | |||||||
Net loss |
$ | (6,800 | ) | $ | (1,800 | ) | ||
Interest expense |
56,000 | 55,000 | ||||||
Income tax expense |
4,400 | 5,400 | ||||||
Depreciation and amortization |
100,000 | 99,000 | ||||||
EBITDA |
$ | 153,600 | $ | 157,600 | ||||
The Company also evaluates its performance by reviewing Adjusted EBITDA 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, 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 for the following items, which may occur in any period, and refers to
this measure as Adjusted EBITDA:
| 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 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 is not consistent with reflecting the ongoing performance of its hotels. In addition, the Company believes that impairment charges are similar to depreciation expense, which is also excluded from EBITDA. |
| 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 hotels. |
| Acquisition Costs: The Company excludes acquisition transaction costs expensed during the period because it believes that including these costs in EBITDA is not consistent with the underlying performance of the Company. |
- 9 -
| Mortgage Loan Interest Payments Received: The Company includes cash payments received on its senior loan secured by the Allerton Hotel in Adjusted EBITDA. 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 as they relate to the ongoing 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 is not consistent with the underlying performance of the Company. During the third fiscal quarter ended September 9, 2011 the Company reversed the accrual made in the second fiscal quarter 2011 for the repayment of key money to Hilton based on the execution of an amended management agreement for the Conrad Chicago. In addition, the Company recorded an accrual for the tentative settlement of litigation at the Los Angeles Airport Marriott. The Company excluded these unusual items from EBITDA because it believes that including them would not be consistent with reflecting the ongoing performance of its hotels. |
Fiscal Quarter Ended | Period From | |||||||||||||||
September 9, | September 10, | January 1, 2011 to | January 1, 2010 to | |||||||||||||
2011 | 2010 | September 9, 2011 | September 10, 2010 | |||||||||||||
EBITDA |
$ | 38,189 | $ | 28,343 | $ | 92,105 | $ | 79,496 | ||||||||
Non-cash ground rent |
1,658 | 1,538 | 4,878 | 5,104 | ||||||||||||
Non-cash amortization of
unfavorable contract liabilities |
(432 | ) | (409 | ) | (1,284 | ) | (1,203 | ) | ||||||||
Accrual for net key money repayment |
(864 | ) | | | | |||||||||||
Mortgage loan cash payments |
1,099 | 1,250 | 1,704 | 1,250 | ||||||||||||
Hurricane remediation expense |
| 1,391 | | 1,391 | ||||||||||||
Litigation settlement |
1,650 | | 1,650 | | ||||||||||||
Acquisition costs |
445 | 899 | 2,604 | 1,236 | ||||||||||||
Adjusted EBITDA |
$ | 41,745 | $ | 33,012 | $ | 101,657 | $ | 87,274 | ||||||||
Full Year 2011 Forecast (in 000s) | ||||||||
Low End | High End | |||||||
EBITDA |
$ | 153,600 | $ | 157,600 | ||||
Non-cash ground rent |
7,000 | 7,000 | ||||||
Non-cash amortization of
unfavorable contract liabilities |
(1,850 | ) | (1,850 | ) | ||||
Litigation settlement |
1,650 | 1,650 | ||||||
Mortgage loan cash payments |
3,000 | 3,000 | ||||||
Acquisition costs |
2,600 | 2,600 | ||||||
Adjusted EBITDA |
$ | 166,000 | $ | 170,000 | ||||
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 | |||||||||||||||
September 9, | September 10, | January 1, 2011 to | January 1, 2010 to | |||||||||||||
2011 | 2010 | September 9, 2011 | September 10, 2010 | |||||||||||||
Net loss |
$ | (1,015 | ) | $ | (3,534 | ) | $ | (12,613 | ) | $ | (11,040 | ) | ||||
Real estate related depreciation
amortization |
23,801 | 21,297 | 66,835 | 59,278 | ||||||||||||
FFO |
22,786 | 17,763 | 54,222 | 48,238 | ||||||||||||
FFO per share (basic and diluted) |
$ | 0.14 | $ | 0.11 | $ | 0.33 | $ | 0.34 | ||||||||
- 10 -
Full Year 2011 Forecast (in 000s) | ||||||||
Low End | High End | |||||||
Net loss |
$ | (6,800 | ) | $ | (1,800 | ) | ||
Depreciation and amortization |
100,000 | 99,000 | ||||||
FFO |
$ | 93,200 | $ | 97,200 | ||||
FFO per share (basic and diluted) |
$ | 0.56 | $ | 0.58 | ||||
The Company also evaluates its performance by reviewing 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 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 FFO for the following items, which may occur in any period, and refers to this
measure as 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. |
| The impact of the non-cash amortization of the debt premiums recorded in conjunction with the acquisitions of the JW Marriott Denver at Cherry Creek and Courtyard Denver Downtown. |
| 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 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 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 and gains or losses on dispositions, both of which are excluded from FFO. |
| Acquisition Costs: The Company excludes acquisition transaction costs expensed during the period because it believes that including these costs in 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 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 FFO as they relate to the ongoing 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 is not consistent with the underlying performance of the Company. During the third fiscal quarter ended September 9, 2011 the Company reversed the accrual made in the second fiscal quarter 2011 for the repayment of key money to Hilton based on the execution of an amended management agreement for the Conrad Chicago. In addition, the Company recorded an accrual for the tentative settlement of litigation at the Los Angeles Airport Marriott. The Company excluded these unusual items from EBITDA because it believes that including them would not be consistent with reflecting the ongoing performance of its hotels |
- 11 -
Historical (in 000s) | ||||||||||||||||
Fiscal Quarter Ended | Period From | |||||||||||||||
January 1, 2011 | January 1, 2010 | |||||||||||||||
September 9, | September 10, | to September 9, | to September 10, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
FFO |
$ | 22,786 | $ | 17,763 | $ | 54,222 | $ | 48,238 | ||||||||
Non-cash ground rent |
1,658 | 1,538 | 4,878 | 5,104 | ||||||||||||
Non-cash amortization of
unfavorable contract
liabilities |
(432 | ) | (409 | ) | (1,284 | ) | (1,203 | ) | ||||||||
Accrual for key money repayment |
(864 | ) | | | | |||||||||||
Hurricane remediation expense |
| 1,391 | | 1,391 | ||||||||||||
Mortgage loan cash payments |
1,099 | 1,250 | 1,704 | 1,250 | ||||||||||||
Litigation settlement |
1,650 | | 1,650 | | ||||||||||||
Amortization of debt premium |
(134 | ) | | (161 | ) | | ||||||||||
Acquisition costs |
445 | 899 | 2,604 | 1,236 | ||||||||||||
Adjusted FFO |
$ | 26,208 | $ | 22,432 | $ | 63,613 | $ | 56,016 | ||||||||
Adjusted FFO per share (basic
and diluted) |
$ | 0.16 | $ | 0.15 | $ | 0.38 | $ | 0.40 | ||||||||
Full Year 2011 Forecast (in 000s) | ||||||||
Low End | High End | |||||||
FFO |
$ | 93,200 | $ | 97,200 | ||||
Non-cash ground rent |
7,000 | 7,000 | ||||||
Non-cash amortization of
unfavorable contract liabilities |
(1,850 | ) | (1,850 | ) | ||||
Acquisition costs |
2,600 | 2,600 | ||||||
Litigation settlement |
1,650 | 1,650 | ||||||
Debt premium amortization |
(600 | ) | (600 | ) | ||||
Mortgage loan cash payments |
3,000 | 3,000 | ||||||
Adjusted FFO |
$ | 105,000 | $ | 109,000 | ||||
Adjusted FFO per share (diluted) |
$ | 0.63 | $ | 0.65 | ||||
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 the Companys hotels as if they were owned since
January 1, 2010 but exclude Frenchmans Reef due to the impact of its extensive renovation.
Quarter 3, 2010 | Quarter 4, 2010 | Full Year 2010 | Quarter 1, 2011 | Quarter 2, 2011 | ||||||||||||||||
RevPAR |
$ | 117.63 | $ | 118.76 | $ | 112.11 | $ | 94.36 | $ | 123.85 | ||||||||||
Revenues (in thousands) |
$ | 166,670 | $ | 227,497 | $ | 685,324 | $ | 121,541 | $ | 177,825 | ||||||||||
Hotel Adjusted EBITDA (in
thousands) |
$ | 44,592 | $ | 67,109 | $ | 178,680 | $ | 21,020 | $ | 49,977 | ||||||||||
% of Full Year |
25.0 | % | 37.6 | % | 100.0 | % | 11.1 | % | 26.3 | % | ||||||||||
Hotel Adjusted EBITDA Margin |
26.75 | % | 29.50 | % | 26.07 | % | 17.29 | % | 28.10 | % | ||||||||||
Available Rooms |
982,360 | 1,307,402 | 4,133,444 | 854,009 | 982,544 |
The following table is presented to provide investors with selected historical quarterly
operating information to include the operating results for the Companys hotels as if they were
owned since January 1, 2010 but exclude Frenchmans Reef and the three hotels that are under
agreement to be sold.
Quarter 3, 2010 | Quarter 4, 2010 | Full Year 2010 | Quarter 1, 2011 | Quarter 2, 2011 | ||||||||||||||||
RevPAR |
$ | 122.60 | $ | 121.99 | $ | 115.73 | $ | 96.04 | $ | 128.65 | ||||||||||
Revenues (in thousands) |
$ | 147,980 | $ | 199,049 | $ | 600,275 | $ | 103,028 | $ | 158,488 | ||||||||||
Hotel Adjusted EBITDA (in
thousands) |
$ | 38,353 | $ | 58,156 | $ | 154,275 | $ | 16,446 | $ | 44,822 | ||||||||||
% of Full Year |
24.9 | % | 37.7 | % | 100.0 | % | 9.8 | % | 26.7 | % | ||||||||||
Hotel Adjusted EBITDA Margin |
25.92 | % | 29.22 | % | 25.70 | % | 15.96 | % | 28.28 | % | ||||||||||
Available Rooms |
862,912 | 1,148,138 | 3,614,414 | 734,561 | 863,096 |
- 12 -
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.
- 13 -
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 Ended | Period From | |||||||||||||||||||||||
January 1, | January 1, | |||||||||||||||||||||||
2011 to | 2010 to | |||||||||||||||||||||||
September 9, | September | % | September | September | % | |||||||||||||||||||
2011 | 10, 2010 | Change | 9, 2011 | 10, 2010 | Change | |||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Rooms |
$ | 123,852 | $ | 115,551 | 7.2 | % | $ | 326,123 | $ | 308,126 | 5.8 | % | ||||||||||||
Food and beverage |
43,803 | 42,700 | 2.6 | % | 126,257 | 126,868 | (0.5 | %) | ||||||||||||||||
Other |
9,059 | 8,419 | 7.6 | % | 23,700 | 22,832 | 3.8 | % | ||||||||||||||||
Total revenues |
176,714 | 166,670 | 6.0 | % | 476,080 | 457,826 | 4.0 | % | ||||||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Rooms |
32,734 | 31,089 | 5.3 | % | 88,783 | 84,434 | 5.2 | % | ||||||||||||||||
Food and beverage |
29,926 | 29,124 | 2.8 | % | 86,684 | 85,569 | 1.3 | % | ||||||||||||||||
Other direct departmental |
5,056 | 4,746 | 6.5 | % | 13,617 | 13,257 | 2.7 | % | ||||||||||||||||
General and administrative |
14,545 | 14,306 | 1.7 | % | 41,103 | 40,679 | 1.0 | % | ||||||||||||||||
Utilities |
6,313 | 6,520 | (3.2 | %) | 16,962 | 17,081 | (0.7 | %) | ||||||||||||||||
Repairs and maintenance |
7,665 | 7,309 | 4.9 | % | 21,973 | 20,960 | 4.8 | % | ||||||||||||||||
Sales and marketing |
13,766 | 12,926 | 6.5 | % | 37,819 | 35,383 | 6.9 | % | ||||||||||||||||
Base management fees |
4,699 | 4,406 | 6.7 | % | 12,614 | 12,052 | 4.7 | % | ||||||||||||||||
Incentive management fees |
1,328 | 991 | 34.0 | % | 3,008 | 2,497 | 20.5 | % | ||||||||||||||||
Property taxes |
8,263 | 6,392 | 29.3 | % | 22,097 | 22,253 | (0.7 | %) | ||||||||||||||||
Ground rent |
3,407 | 3,244 | 5.0 | % | 9,763 | 9,377 | 4.1 | % | ||||||||||||||||
Other fixed expenses |
2,187 | 2,144 | 2.0 | % | 6,273 | 6,281 | (0.1 | %) | ||||||||||||||||
Total hotel operating expenses |
129,889 | 123,197 | 5.4 | % | 360,696 | 349,823 | 3.1 | % | ||||||||||||||||
Hotel EBITDA |
46,825 | 43,473 | 7.7 | % | 115,384 | 108,003 | 6.8 | % | ||||||||||||||||
Non-cash ground rent |
1,658 | 1,551 | 6.9 | % | 4,941 | 4,743 | 4.2 | % | ||||||||||||||||
Non-cash amortization of
unfavorable contract
liabilities |
(432 | ) | (432 | ) | | (1,278 | ) | (1,278 | ) | | ||||||||||||||
Hotel Adjusted EBITDA |
$ | 48,051 | $ | 44,592 | 7.8 | % | $ | 119,047 | $ | 111,468 | 6.8 | % | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming 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 2011 renovation. |
- 14 -
Market Capitalization as of September 9, 2011
(in thousands, except per share data)
(in thousands, except per share data)
Enterprise Value |
||||
Common equity capitalization (at September 9, 2011 closing price of $7.05/share) |
$ | 1,188,257 | ||
Consolidated debt |
1,075,888 | |||
Cash and cash equivalents |
(28,777 | ) | ||
Total enterprise value |
$ | 2,235,368 | ||
Share Reconciliation |
||||
Common shares outstanding |
167,502 | |||
Unvested restricted stock held by management and employees |
1,011 | |||
Share grants under deferred compensation plan held by directors |
34 | |||
Combined shares outstanding |
168,547 | |||
Debt Summary as of September 9, 2011
(dollars in thousands)
Interest | Outstanding | |||||||||||
Property | Rate | Term | Principal | Maturity | ||||||||
Courtyard Manhattan / Midtown East |
8.810 | % | Fixed | $ | 42,390 | October 2014 | ||||||
Salt Lake City Marriott Downtown |
5.500 | % | Fixed | 30,591 | January 2015 | |||||||
Courtyard Manhattan / Fifth Avenue |
6.480 | % | Fixed | 50,841 | June 2016 | |||||||
Los Angeles Airport Marriott |
5.300 | % | Fixed | 82,600 | July 2015 | |||||||
Marriott Frenchmans Reef |
5.440 | % | Fixed | 59,880 | August 2015 | |||||||
Renaissance Worthington |
5.400 | % | Fixed | 55,746 | July 2015 | |||||||
Orlando Airport Marriott |
5.680 | % | Fixed | 58,520 | January 2016 | |||||||
Chicago Marriott Downtown |
5.975 | % | Fixed | 215,027 | 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 | 99,415 | May 2021 | |||||||
JW Marriott Denver Cherry Creek |
6.470 | % | Fixed | 42,085 | July 2015 | |||||||
Courtyard Denver Downtown |
6.260 | % | Fixed | 27,140 | August 2012 | |||||||
Debt premiums (1) |
1,653 | |||||||||||
Total mortgage debt |
945,888 | |||||||||||
Senior Unsecured Credit Facility |
LIBOR + 3.00 | Variable | 130,000 | August 2014 | ||||||||
Total Debt |
$ | 1,075,888 | ||||||||||
(1) | The debt premiums are purchase accounting adjustments to record the debt on the JW Marriott Denver Cherry Creek and Courtyard Denver Downtown at their respective acquisition date fair values. The premiums will be amortized over the life of the loans into interest expense. |
- 15 -
Pro Forma Operating Statistics Third Quarter (1)
ADR | Occupancy | RevPAR | Hotel Adjusted EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||||
3Q 2011 | 3Q 2010 | B/(W) | 3Q 2011 | 3Q 2010 | B/(W) | 3Q 2011 | 3Q 2010 | B/(W) | 3Q 2011 | 3Q 2010 | B/(W) | |||||||||||||||||||||||||||||||||||||
Atlanta Alpharetta |
$ | 133.08 | $ | 117.07 | 13.7 | % | 67.2 | % | 69.0 | % | (1.8 | %) | $ | 89.46 | $ | 80.72 | 10.8 | % | 26.65 | % | 22.55 | % | 410 | bps | ||||||||||||||||||||||||
Westin Atlanta North (2) |
$ | 106.95 | $ | 102.37 | 4.5 | % | 76.2 | % | 72.0 | % | 4.2 | % | $ | 81.44 | $ | 73.72 | 10.5 | % | 14.10 | % | 13.43 | % | 67 | bps | ||||||||||||||||||||||||
Atlanta Waverly |
$ | 125.83 | $ | 120.96 | 4.0 | % | 70.7 | % | 63.7 | % | 7.0 | % | $ | 88.96 | $ | 77.04 | 15.5 | % | 24.24 | % | 47.07 | % | -2283 | bps | ||||||||||||||||||||||||
Renaissance Austin |
$ | 132.98 | $ | 137.25 | (3.1 | %) | 60.3 | % | 57.5 | % | 2.8 | % | $ | 80.24 | $ | 78.89 | 1.7 | % | 20.88 | % | 22.79 | % | -191 | bps | ||||||||||||||||||||||||
Bethesda Marriott Suites |
$ | 148.97 | $ | 152.06 | (2.0 | %) | 61.7 | % | 67.6 | % | (5.9 | %) | $ | 91.94 | $ | 102.87 | (10.6 | %) | 16.69 | % | 20.71 | % | -402 | bps | ||||||||||||||||||||||||
Boston Westin (2) |
$ | 198.48 | $ | 184.80 | 7.4 | % | 83.1 | % | 79.9 | % | 3.2 | % | $ | 164.90 | $ | 147.72 | 11.6 | % | 28.75 | % | 25.37 | % | 338 | bps | ||||||||||||||||||||||||
Renaissance Charleston |
$ | 154.80 | $ | 151.90 | 1.9 | % | 86.2 | % | 88.7 | % | (2.5 | %) | $ | 133.36 | $ | 134.71 | (1.0 | %) | 27.41 | % | 30.46 | % | -305 | bps | ||||||||||||||||||||||||
Hilton Garden Inn Chelsea (2) |
$ | 207.11 | $ | 195.82 | 5.8 | % | 95.2 | % | 93.6 | % | 1.6 | % | $ | 197.27 | $ | 183.30 | 7.6 | % | 45.04 | % | 40.51 | % | 453 | bps | ||||||||||||||||||||||||
Chicago Marriott |
$ | 178.04 | $ | 175.41 | 1.5 | % | 85.6 | % | 84.7 | % | 0.9 | % | $ | 152.46 | $ | 148.52 | 2.7 | % | 24.78 | % | 23.71 | % | 107 | bps | ||||||||||||||||||||||||
Chicago Conrad (2) |
$ | 210.88 | $ | 198.78 | 6.1 | % | 93.8 | % | 89.4 | % | 4.4 | % | $ | 197.82 | $ | 177.66 | 11.3 | % | 37.64 | % | 31.85 | % | 579 | bps | ||||||||||||||||||||||||
Courtyard Denver Downtown (2) |
$ | 161.38 | $ | 151.73 | 6.4 | % | 91.1 | % | 87.1 | % | 4.0 | % | $ | 147.02 | $ | 132.15 | 11.3 | % | 47.74 | % | 45.50 | % | 224 | bps | ||||||||||||||||||||||||
Courtyard Fifth Avenue |
$ | 244.40 | $ | 247.56 | (1.3 | %) | 90.1 | % | 84.7 | % | 5.4 | % | $ | 220.19 | $ | 209.72 | 5.0 | % | 25.37 | % | 23.72 | % | 165 | bps | ||||||||||||||||||||||||
Courtyard Midtown East |
$ | 247.58 | $ | 235.92 | 4.9 | % | 88.7 | % | 87.4 | % | 1.3 | % | $ | 219.68 | $ | 206.26 | 6.5 | % | 31.49 | % | 28.91 | % | 258 | bps | ||||||||||||||||||||||||
Frenchmans Reef (2) |
$ | 187.66 | $ | 175.16 | 7.1 | % | 90.7 | % | 85.6 | % | 5.1 | % | $ | 170.19 | $ | 149.90 | 13.5 | % | (53.68 | %) | 5.01 | % | -5869 | bps | ||||||||||||||||||||||||
Griffin Gate Marriott |
$ | 132.95 | $ | 127.74 | 4.1 | % | 68.3 | % | 71.2 | % | (2.9 | %) | $ | 90.80 | $ | 90.99 | (0.2 | %) | 24.84 | % | 28.91 | % | -407 | bps | ||||||||||||||||||||||||
JW Marriott Denver Cherry Creek (2) |
$ | 241.65 | $ | 227.13 | 6.4 | % | 78.1 | % | 79.0 | % | (0.9 | %) | $ | 188.85 | $ | 179.50 | 5.2 | % | 35.24 | % | 31.57 | % | 367 | bps | ||||||||||||||||||||||||
Los Angeles Airport |
$ | 103.61 | $ | 100.33 | 3.3 | % | 90.9 | % | 85.3 | % | 5.6 | % | $ | 94.15 | $ | 85.59 | 10.0 | % | 16.02 | % | 13.81 | % | 221 | bps | ||||||||||||||||||||||||
Hilton Minneapolis (2) |
$ | 150.53 | $ | 143.14 | 5.2 | % | 89.7 | % | 84.8 | % | 4.9 | % | $ | 135.04 | $ | 121.33 | 11.3 | % | 37.15 | % | 35.33 | % | 182 | bps | ||||||||||||||||||||||||
Oak Brook Hills |
$ | 116.53 | $ | 109.28 | 6.6 | % | 64.6 | % | 61.5 | % | 3.1 | % | $ | 75.26 | $ | 67.25 | 11.9 | % | 16.45 | % | 17.55 | % | -110 | bps | ||||||||||||||||||||||||
Orlando Airport Marriott |
$ | 88.73 | $ | 86.92 | 2.1 | % | 68.6 | % | 65.1 | % | 3.5 | % | $ | 60.91 | $ | 56.60 | 7.6 | % | 7.19 | % | 7.35 | % | -16 | bps | ||||||||||||||||||||||||
Salt Lake City Marriott |
$ | 129.37 | $ | 133.49 | (3.1 | %) | 58.2 | % | 53.6 | % | 4.6 | % | $ | 75.34 | $ | 71.58 | 5.3 | % | 25.38 | % | 21.81 | % | 357 | bps | ||||||||||||||||||||||||
The Lodge at Sonoma |
$ | 245.22 | $ | 214.37 | 14.4 | % | 83.3 | % | 86.1 | % | (2.8 | %) | $ | 204.31 | $ | 184.52 | 10.7 | % | 28.13 | % | 27.59 | % | 54 | bps | ||||||||||||||||||||||||
Torrance Marriott South Bay |
$ | 105.14 | $ | 101.60 | 3.5 | % | 86.5 | % | 79.0 | % | 7.5 | % | $ | 90.91 | $ | 80.24 | 13.3 | % | 28.12 | % | 19.55 | % | 857 | bps | ||||||||||||||||||||||||
Vail Marriott (2) |
$ | 150.15 | $ | 183.45 | (18.2 | %) | 71.0 | % | 65.7 | % | 5.3 | % | $ | 106.56 | $ | 120.61 | (11.6 | %) | 21.51 | % | 23.24 | % | -173 | bps | ||||||||||||||||||||||||
Radisson Lexington Hotel New York (2) |
$ | 195.16 | $ | 183.80 | 6.2 | % | 97.6 | % | 97.3 | % | 0.3 | % | $ | 190.53 | $ | 178.76 | 6.6 | % | 35.93 | % | 40.17 | % | -424 | bps | ||||||||||||||||||||||||
Renaissance Worthington |
$ | 144.24 | $ | 156.29 | (7.7 | %) | 70.8 | % | 54.9 | % | 15.9 | % | $ | 102.09 | $ | 85.78 | 19.0 | % | 20.23 | % | 16.52 | % | 371 | bps | ||||||||||||||||||||||||
Total/Weighted Average |
$ | 157.92 | $ | 154.36 | 2.3 | % | 80.2 | % | 77.1 | % | 3.1 | % | $ | 126.72 | $ | 119.01 | 6.5 | % | 25.54 | % | 25.43 | % | 11 | bps | ||||||||||||||||||||||||
Comparable Total/Weighted Avg. (3) |
$ | 157.41 | $ | 153.32 | 2.7 | % | 80.1 | % | 76.7 | % | 3.4 | % | $ | 126.05 | $ | 117.63 | 7.2 | % | 27.19 | % | 26.75 | % | 44 | bps | ||||||||||||||||||||||||
Post-Sale Total/Weighted Average (4) |
$ | 160.46 | $ | 156.14 | 2.8 | % | 82.0 | % | 78.5 | % | 3.5 | % | $ | 131.53 | $ | 122.60 | 7.3 | % | 27.62 | % | 25.92 | % | 170 | bps | ||||||||||||||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming 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 third quarter and includes the months of June, July, and August. | |
(3) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort from all periods presented due to the extensive 2011 renovation. | |
(4) | The post-sale total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort and the three hotels under agreement to be sold from all periods presented. |
- 16 -
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 |
$ | 133.83 | $ | 118.63 | 12.8 | % | 68.0 | % | 67.5 | % | 0.5 | % | $ | 91.00 | $ | 80.07 | 13.7 | % | 29.97 | % | 24.55 | % | 542 | bps | ||||||||||||||||||||||||
Westin Atlanta North (2) |
$ | 107.92 | $ | 102.40 | 5.4 | % | 72.3 | % | 71.4 | % | 0.9 | % | $ | 78.03 | $ | 73.14 | 6.7 | % | 14.97 | % | 15.00 | % | -3 | bps | ||||||||||||||||||||||||
Atlanta Waverly |
$ | 129.01 | $ | 126.66 | 1.9 | % | 68.2 | % | 64.7 | % | 3.5 | % | $ | 88.02 | $ | 81.93 | 7.4 | % | 23.66 | % | 29.65 | % | -599 | bps | ||||||||||||||||||||||||
Renaissance Austin |
$ | 140.88 | $ | 141.71 | (0.6 | %) | 64.6 | % | 61.7 | % | 2.9 | % | $ | 91.01 | $ | 87.46 | 4.1 | % | 28.14 | % | 28.68 | % | -54 | bps | ||||||||||||||||||||||||
Bethesda Marriott Suites |
$ | 167.16 | $ | 162.00 | 3.2 | % | 64.9 | % | 67.2 | % | (2.3 | %) | $ | 108.51 | $ | 108.83 | (0.3 | %) | 25.50 | % | 23.89 | % | 161 | bps | ||||||||||||||||||||||||
Boston Westin (2) |
$ | 191.18 | $ | 186.39 | 2.6 | % | 71.7 | % | 69.6 | % | 2.1 | % | $ | 137.00 | $ | 129.65 | 5.7 | % | 23.21 | % | 23.54 | % | -33 | bps | ||||||||||||||||||||||||
Renaissance Charleston |
$ | 168.95 | $ | 156.39 | 8.0 | % | 84.8 | % | 84.5 | % | 0.3 | % | $ | 143.30 | $ | 132.07 | 8.5 | % | 33.13 | % | 33.27 | % | -14 | bps | ||||||||||||||||||||||||
Hilton Garden Inn Chelsea (2) |
$ | 195.28 | $ | 182.80 | 6.8 | % | 92.1 | % | 90.0 | % | 2.1 | % | $ | 179.76 | $ | 164.57 | 9.2 | % | 42.65 | % | 39.22 | % | 343 | bps | ||||||||||||||||||||||||
Chicago Marriott |
$ | 184.90 | $ | 176.48 | 4.8 | % | 70.5 | % | 71.7 | % | (1.2 | %) | $ | 130.28 | $ | 126.48 | 3.0 | % | 20.43 | % | 18.63 | % | 180 | bps | ||||||||||||||||||||||||
Chicago Conrad (2) |
$ | 187.61 | $ | 176.17 | 6.5 | % | 84.5 | % | 77.7 | % | 6.8 | % | $ | 158.54 | $ | 136.93 | 15.8 | % | 27.78 | % | 21.88 | % | 590 | bps | ||||||||||||||||||||||||
Courtyard Denver Downtown (2) |
$ | 152.68 | $ | 146.22 | 4.4 | % | 79.9 | % | 82.1 | % | (2.2 | %) | $ | 121.96 | $ | 120.04 | 1.6 | % | 43.20 | % | 42.54 | % | 66 | bps | ||||||||||||||||||||||||
Courtyard Fifth Avenue |
$ | 243.78 | $ | 235.93 | 3.3 | % | 85.8 | % | 86.1 | % | (0.3 | %) | $ | 209.19 | $ | 203.18 | 3.0 | % | 24.78 | % | 24.29 | % | 49 | bps | ||||||||||||||||||||||||
Courtyard Midtown East |
$ | 243.92 | $ | 221.64 | 10.1 | % | 83.2 | % | 85.6 | % | (2.4 | %) | $ | 203.01 | $ | 189.62 | 7.1 | % | 30.34 | % | 28.40 | % | 194 | bps | ||||||||||||||||||||||||
Frenchmans Reef (2) |
$ | 239.39 | $ | 232.26 | 3.1 | % | 83.7 | % | 84.8 | % | (1.1 | %) | $ | 200.46 | $ | 197.00 | 1.8 | % | 8.75 | % | 25.80 | % | -1705 | bps | ||||||||||||||||||||||||
Griffin Gate Marriott |
$ | 130.04 | $ | 124.17 | 4.7 | % | 61.0 | % | 63.7 | % | (2.7 | %) | $ | 79.33 | $ | 79.11 | 0.3 | % | 22.74 | % | 22.62 | % | 12 | bps | ||||||||||||||||||||||||
JW Marriott Denver Cherry Creek (2) |
$ | 231.79 | $ | 215.38 | 7.6 | % | 71.7 | % | 73.9 | % | (2.2 | %) | $ | 166.20 | $ | 159.07 | 4.5 | % | 28.53 | % | 27.21 | % | 132 | bps | ||||||||||||||||||||||||
Los Angeles Airport |
$ | 104.64 | $ | 102.44 | 2.1 | % | 86.3 | % | 82.4 | % | 3.9 | % | $ | 90.29 | $ | 84.45 | 6.9 | % | 17.65 | % | 15.65 | % | 200 | bps | ||||||||||||||||||||||||
Hilton Minneapolis (2) |
$ | 139.47 | $ | 131.83 | 5.8 | % | 76.3 | % | 74.6 | % | 1.7 | % | $ | 106.41 | $ | 98.31 | 8.2 | % | 30.41 | % | 28.85 | % | 156 | bps | ||||||||||||||||||||||||
Oak Brook Hills |
$ | 113.64 | $ | 106.83 | 6.4 | % | 54.5 | % | 52.6 | % | 1.9 | % | $ | 61.87 | $ | 56.22 | 10.0 | % | 8.61 | % | 10.09 | % | -148 | bps | ||||||||||||||||||||||||
Orlando Airport Marriott |
$ | 99.90 | $ | 97.65 | 2.3 | % | 77.2 | % | 71.6 | % | 5.6 | % | $ | 77.12 | $ | 69.90 | 10.3 | % | 22.05 | % | 19.34 | % | 271 | bps | ||||||||||||||||||||||||
Salt Lake City Marriott |
$ | 127.22 | $ | 134.00 | (5.1 | %) | 60.0 | % | 54.0 | % | 6.0 | % | $ | 76.28 | $ | 72.32 | 5.5 | % | 25.45 | % | 26.10 | % | -65 | bps | ||||||||||||||||||||||||
The Lodge at Sonoma |
$ | 211.60 | $ | 192.22 | 10.1 | % | 70.9 | % | 68.1 | % | 2.8 | % | $ | 150.06 | $ | 130.99 | 14.6 | % | 15.29 | % | 14.36 | % | 93 | bps | ||||||||||||||||||||||||
Torrance Marriott South Bay |
$ | 105.61 | $ | 100.73 | 4.8 | % | 81.1 | % | 81.4 | % | (0.3 | %) | $ | 85.64 | $ | 81.96 | 4.5 | % | 24.91 | % | 19.76 | % | 515 | bps | ||||||||||||||||||||||||
Vail Marriott (2) |
$ | 226.25 | $ | 232.48 | (2.7 | %) | 65.8 | % | 65.8 | % | 0.0 | % | $ | 148.94 | $ | 152.94 | (2.6 | %) | 30.21 | % | 32.46 | % | -225 | bps | ||||||||||||||||||||||||
Radisson Lexington Hotel New York (2) |
$ | 180.19 | $ | 170.37 | 5.8 | % | 95.4 | % | 94.4 | % | 1.0 | % | $ | 171.84 | $ | 160.80 | 6.9 | % | 31.65 | % | 33.43 | % | -178 | bps | ||||||||||||||||||||||||
Renaissance Worthington |
$ | 159.30 | $ | 158.77 | 0.3 | % | 71.5 | % | 66.2 | % | 5.3 | % | $ | 113.88 | $ | 105.07 | 8.4 | % | 30.66 | % | 29.87 | % | 79 | bps | ||||||||||||||||||||||||
Total/Weighted Average |
$ | 158.08 | $ | 153.71 | 2.8 | % | 74.6 | % | 73.2 | % | 1.4 | % | $ | 117.96 | $ | 112.50 | 4.9 | % | 24.22 | % | 24.46 | % | -24 | bps | ||||||||||||||||||||||||
Comparable Total/Weighted Avg. (3) |
$ | 155.55 | $ | 149.95 | 3.7 | % | 74.4 | % | 72.7 | % | 1.7 | % | $ | 115.68 | $ | 109.03 | 6.1 | % | 25.01 | % | 24.35 | % | 66 | bps | ||||||||||||||||||||||||
Post-Sale Total/Weighted Average (4) |
$ | 158.32 | $ | 152.31 | 3.9 | % | 75.8 | % | 74.1 | % | 1.7 | % | $ | 119.93 | $ | 112.82 | 6.3 | % | 25.01 | % | 23.93 | % | 108 | bps | ||||||||||||||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming 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 August. | |
(3) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort from all periods presented due to the extensive 2011 renovation. | |
(4) | The post-sale total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort and the three hotels under agreement to be sold from all periods presented. |
- 17 -
Pro Forma Hotel Adjusted EBITDA Reconciliation
Third Quarter 2011 (1) | ||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||
Plus: | Plus: | Non-Cash Adjustments | Equals: | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | (2) | Hotel Adjusted EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 3,347 | $ | 603 | $ | 289 | $ | | $ | | $ | 892 | ||||||||||||
Westin Atlanta North (3) |
$ | 4,149 | $ | 150 | $ | 435 | $ | | $ | | $ | 585 | ||||||||||||
Atlanta Waverly |
$ | 6,946 | $ | (647 | ) | $ | 1,080 | $ | 1,251 | $ | | $ | 1,684 | |||||||||||
Renaissance Austin |
$ | 5,398 | $ | (897 | ) | $ | 951 | $ | 1,073 | $ | | $ | 1,127 | |||||||||||
Bethesda Marriott Suites |
$ | 2,978 | $ | (1,430 | ) | $ | 481 | $ | | $ | 1,446 | $ | 497 | |||||||||||
Boston Westin (3) |
$ | 18,809 | $ | 2,424 | $ | 2,866 | $ | | $ | 117 | $ | 5,407 | ||||||||||||
Renaissance Charleston |
$ | 2,255 | $ | 306 | $ | 341 | $ | | $ | (29 | ) | $ | 618 | |||||||||||
Hilton Garden Inn Chelsea (3) |
$ | 3,146 | $ | 981 | $ | 436 | $ | | $ | | $ | 1,417 | ||||||||||||
Chicago Marriott |
$ | 22,299 | $ | (155 | ) | $ | 2,956 | $ | 3,090 | $ | (365 | ) | $ | 5,526 | ||||||||||
Chicago Conrad (3) |
$ | 7,717 | $ | 1,760 | $ | 1,145 | $ | | $ | | $ | 2,905 | ||||||||||||
Courtyard Denver Downtown (3) |
$ | 2,564 | $ | 625 | $ | 264 | $ | 335 | $ | | $ | 1,224 | ||||||||||||
Courtyard Fifth Avenue |
$ | 3,492 | $ | (418 | ) | $ | 439 | $ | 817 | $ | 48 | $ | 886 | |||||||||||
Courtyard Midtown East |
$ | 6,017 | $ | 447 | $ | 531 | $ | 917 | $ | | $ | 1,895 | ||||||||||||
Frenchmans Reef (3) |
$ | 3,694 | $ | (3,540 | ) | $ | 971 | $ | 586 | $ | | $ | (1,983 | ) | ||||||||||
Griffin Gate Marriott |
$ | 5,668 | $ | 650 | $ | 759 | $ | | $ | (1 | ) | $ | 1,408 | |||||||||||
JW Marriott Denver Cherry Creek (3) |
$ | 5,425 | $ | 920 | $ | 418 | $ | 574 | $ | | $ | 1,912 | ||||||||||||
Los Angeles Airport |
$ | 12,394 | $ | (269 | ) | $ | 1,195 | $ | 1,060 | $ | | $ | 1,986 | |||||||||||
Minneapolis Hilton (3) |
$ | 15,402 | $ | 2,885 | $ | 1,698 | $ | 1,290 | $ | (151 | ) | $ | 5,722 | |||||||||||
Oak Brook Hills |
$ | 5,770 | $ | 92 | $ | 732 | $ | | $ | 125 | $ | 949 | ||||||||||||
Orlando Airport Marriott |
$ | 3,449 | $ | (1,302 | ) | $ | 751 | $ | 799 | $ | | $ | 248 | |||||||||||
Salt Lake City Marriott |
$ | 4,744 | $ | 165 | $ | 629 | $ | 410 | $ | | $ | 1,204 | ||||||||||||
The Lodge at Sonoma |
$ | 4,814 | $ | 1,032 | $ | 322 | $ | | $ | | $ | 1,354 | ||||||||||||
Torrance Marriott South Bay |
$ | 5,387 | $ | 784 | $ | 731 | $ | | $ | | $ | 1,515 | ||||||||||||
Vail Marriott (3) |
$ | 5,375 | $ | 644 | $ | 512 | $ | | $ | | $ | 1,156 | ||||||||||||
Radisson Lexington Hotel New York (3) |
$ | 13,149 | $ | 2,334 | $ | 2,354 | $ | 3 | $ | 33 | $ | 4,724 | ||||||||||||
Renaissance Worthington |
$ | 6,020 | $ | (140 | ) | $ | 626 | $ | 729 | $ | 3 | $ | 1,218 | |||||||||||
Total |
$ | 180,408 | $ | 8,004 | $ | 23,912 | $ | 12,934 | $ | 1,226 | $ | 46,068 | ||||||||||||
Comparable Total (4) |
$ | 176,714 | $ | 11,544 | $ | 22,941 | $ | 12,348 | $ | 1,226 | $ | 48,051 | ||||||||||||
Post-Sale Total (5) |
$ | 158,702 | $ | 12,438 | $ | 20,151 | $ | 10,024 | $ | 1,227 | $ | 43,832 | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming 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 third quarter and include the months of June, July, and August. | |
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due to the extensive 2011 renovation. | |
(5) | The post-sale total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort and the three hotels under agreement to be sold. |
- 18 -
Pro Forma Hotel Adjusted EBITDA Reconciliation
Third Quarter 2010 (1) | ||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||
Plus: | Plus: | Non-Cash Adjustments | Equals: | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | (2) | Hotel Adjusted EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 3,060 | $ | 404 | $ | 286 | $ | | $ | | $ | 690 | ||||||||||||
Westin Atlanta North (3) |
$ | 3,931 | $ | 96 | $ | 432 | $ | | $ | | $ | 528 | ||||||||||||
Atlanta Waverly |
$ | 6,662 | $ | 818 | $ | 1,066 | $ | 1,252 | $ | | $ | 3,136 | ||||||||||||
Renaissance Austin |
$ | 5,982 | $ | (666 | ) | $ | 954 | $ | 1,075 | $ | | $ | 1,363 | |||||||||||
Bethesda Marriott Suites |
$ | 3,197 | $ | (1,292 | ) | $ | 503 | $ | | $ | 1,451 | $ | 662 | |||||||||||
Boston Westin (3) |
$ | 16,170 | $ | 1,092 | $ | 2,894 | $ | | $ | 117 | $ | 4,103 | ||||||||||||
Renaissance Charleston |
$ | 2,226 | $ | 346 | $ | 361 | $ | | $ | (29 | ) | $ | 678 | |||||||||||
Hilton Garden Inn Chelsea (3) |
$ | 2,930 | $ | 683 | $ | 504 | $ | | $ | | $ | 1,187 | ||||||||||||
Chicago Marriott |
$ | 21,634 | $ | (1,029 | ) | $ | 3,444 | $ | 3,079 | $ | (365 | ) | $ | 5,129 | ||||||||||
Chicago Conrad (3) |
$ | 7,096 | $ | 1,152 | $ | 1,108 | $ | | $ | | $ | 2,260 | ||||||||||||
Courtyard Denver Downtown (3) |
$ | 2,299 | $ | 425 | $ | 280 | $ | 341 | $ | | $ | 1,046 | ||||||||||||
Courtyard Fifth Avenue |
$ | 3,288 | $ | (504 | ) | $ | 437 | $ | 799 | $ | 48 | $ | 780 | |||||||||||
Courtyard Midtown East |
$ | 5,597 | $ | 183 | $ | 522 | $ | 913 | $ | | $ | 1,618 | ||||||||||||
Frenchmans Reef (3) |
$ | 10,789 | $ | (3,043 | ) | $ | 1,402 | $ | 791 | $ | 1,391 | $ | 541 | |||||||||||
Griffin Gate Marriott |
$ | 6,046 | $ | 998 | $ | 751 | $ | | $ | (1 | ) | $ | 1,748 | |||||||||||
JW Marriott Denver Cherry Creek (3) |
$ | 5,242 | $ | 650 | $ | 420 | $ | 585 | $ | | $ | 1,655 | ||||||||||||
Los Angeles Airport |
$ | 11,329 | $ | (796 | ) | $ | 1,324 | $ | 1,036 | $ | | $ | 1,564 | |||||||||||
Minneapolis Hilton (3) |
$ | 13,965 | $ | 3,535 | $ | 1,662 | $ | | $ | (263 | ) | $ | 4,934 | |||||||||||
Oak Brook Hills |
$ | 5,691 | $ | 128 | $ | 746 | $ | | $ | 125 | $ | 999 | ||||||||||||
Orlando Airport Marriott |
$ | 3,238 | $ | (1,297 | ) | $ | 750 | $ | 785 | $ | | $ | 238 | |||||||||||
Salt Lake City Marriott |
$ | 4,420 | $ | (169 | ) | $ | 714 | $ | 419 | $ | | $ | 964 | |||||||||||
The Lodge at Sonoma |
$ | 4,552 | $ | 932 | $ | 324 | $ | | $ | | $ | 1,256 | ||||||||||||
Torrance Marriott South Bay |
$ | 4,492 | $ | 125 | $ | 753 | $ | | $ | | $ | 878 | ||||||||||||
Vail Marriott (3) |
$ | 5,835 | $ | 861 | $ | 495 | $ | | $ | | $ | 1,356 | ||||||||||||
Radisson Lexington Hotel New York (3) |
$ | 12,414 | $ | 2,595 | $ | 2,355 | $ | 3 | $ | 33 | $ | 4,986 | ||||||||||||
Renaissance Worthington |
$ | 5,374 | $ | (462 | ) | $ | 625 | $ | 722 | $ | 3 | $ | 888 | |||||||||||
Total |
$ | 177,459 | $ | 5,765 | $ | 25,112 | $ | 11,800 | $ | 2,510 | $ | 45,133 | ||||||||||||
Comparable Total (4) |
$ | 166,670 | $ | 8,808 | $ | 23,710 | $ | 11,009 | $ | 1,119 | $ | 44,592 | ||||||||||||
Post-Sale Total (5) |
$ | 147,980 | $ | 7,658 | $ | 20,939 | $ | 8,682 | $ | 1,120 | $ | 38,345 | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming 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 third quarter and includes the months of June, July and August. | |
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due to the extensive 2011 renovation. | |
(5) | The post-sale total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort and the three hotels under agreement to be sold. |
- 19 -
Pro Forma Hotel Adjusted EBITDA Reconciliation
Year to Date 2011 (1) | ||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||
Plus: | Plus: | Non-Cash | Equals: | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Adjustments (2) | Hotel Adjusted EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 10,588 | $ | 2,311 | $ | 862 | $ | | $ | | $ | 3,173 | ||||||||||||
Westin Atlanta North (3) |
$ | 10,869 | $ | 349 | $ | 1,278 | $ | | $ | | $ | 1,627 | ||||||||||||
Atlanta Waverly |
$ | 20,948 | $ | (2,030 | ) | $ | 3,232 | $ | 3,754 | $ | | $ | 4,956 | |||||||||||
Renaissance Austin |
$ | 19,473 | $ | (603 | ) | $ | 2,860 | $ | 3,222 | $ | | $ | 5,479 | |||||||||||
Bethesda Marriott Suites |
$ | 10,332 | $ | (3,160 | ) | $ | 1,452 | $ | | $ | 4,343 | $ | 2,635 | |||||||||||
Boston Westin (3) |
$ | 43,761 | $ | 1,168 | $ | 8,637 | $ | | $ | 351 | $ | 10,156 | ||||||||||||
Renaissance Charleston |
$ | 7,307 | $ | 1,505 | $ | 1,003 | $ | | $ | (87 | ) | $ | 2,421 | |||||||||||
Hilton Garden Inn Chelsea (3) |
$ | 7,615 | $ | 1,966 | $ | 1,282 | $ | | $ | | $ | 3,248 | ||||||||||||
Chicago Marriott |
$ | 58,405 | $ | (5,386 | ) | $ | 9,218 | $ | 9,198 | $ | (1,095 | ) | $ | 11,935 | ||||||||||
Chicago Conrad (3) |
$ | 15,952 | $ | 1,015 | $ | 3,417 | $ | | $ | | $ | 4,432 | ||||||||||||
Courtyard Denver Downtown (3) |
$ | 5,673 | $ | 622 | $ | 824 | $ | 1,005 | $ | | $ | 2,451 | ||||||||||||
Courtyard Fifth Avenue |
$ | 9,958 | $ | (1,405 | ) | $ | 1,316 | $ | 2,414 | $ | 143 | $ | 2,468 | |||||||||||
Courtyard Midtown East |
$ | 16,677 | $ | 709 | $ | 1,593 | $ | 2,757 | $ | | $ | 5,059 | ||||||||||||
Frenchmans Reef (3) |
$ | 24,100 | $ | (2,883 | ) | $ | 2,902 | $ | 2,089 | $ | | $ | 2,108 | |||||||||||
Griffin Gate Marriott |
$ | 15,441 | $ | 1,220 | $ | 2,295 | $ | | $ | (3 | ) | $ | 3,512 | |||||||||||
JW Marriott Denver Cherry Creek (3) |
$ | 12,727 | $ | 652 | $ | 1,258 | $ | 1,721 | $ | | $ | 3,631 | ||||||||||||
Los Angeles Airport |
$ | 36,999 | $ | (620 | ) | $ | 4,020 | $ | 3,131 | $ | | $ | 6,531 | |||||||||||
Minneapolis Hilton (3) |
$ | 33,980 | $ | 3,463 | $ | 5,074 | $ | 2,273 | $ | (475 | ) | $ | 10,335 | |||||||||||
Oak Brook Hills |
$ | 13,955 | $ | (1,382 | ) | $ | 2,209 | $ | | $ | 375 | $ | 1,202 | |||||||||||
Orlando Airport Marriott |
$ | 13,857 | $ | (1,571 | ) | $ | 2,260 | $ | 2,367 | $ | | $ | 3,056 | |||||||||||
Salt Lake City Marriott |
$ | 14,572 | $ | 601 | $ | 1,885 | $ | 1,223 | $ | | $ | 3,709 | ||||||||||||
The Lodge at Sonoma |
$ | 11,411 | $ | 772 | $ | 973 | $ | | $ | | $ | 1,745 | ||||||||||||
Torrance Marriott South Bay |
$ | 15,057 | $ | 1,547 | $ | 2,204 | $ | | $ | | $ | 3,751 | ||||||||||||
Vail Marriott (3) |
$ | 17,115 | $ | 3,642 | $ | 1,529 | $ | | $ | | $ | 5,171 | ||||||||||||
Radisson Lexington Hotel New York (3) |
$ | 31,490 | $ | 2,792 | $ | 7,064 | $ | 9 | $ | 103 | $ | 9,968 | ||||||||||||
Renaissance Worthington |
$ | 21,918 | $ | 2,673 | $ | 1,877 | $ | 2,161 | $ | 8 | $ | 6,719 | ||||||||||||
Total |
$ | 500,180 | $ | 7,967 | $ | 72,524 | $ | 37,324 | $ | 3,663 | $ | 121,155 | ||||||||||||
Comparable Total (4) |
$ | 476,080 | $ | 10,850 | $ | 69,622 | $ | 35,235 | $ | 3,663 | $ | 119,047 | ||||||||||||
Post-Sale Total (5) |
$ | 420,218 | $ | 12,263 | $ | 61,235 | $ | 28,259 | $ | 3,666 | $ | 105,100 | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming 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 August. | |
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due to the extensive 2011 renovation. | |
(5) | The post-sale total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort and the three hotels under agreement to be sold. |
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Pro Forma Hotel Adjusted EBITDA Reconciliation
Year to Date 2010 (1) | ||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||
Plus: | Plus: | Non-Cash Adjustments | Equals: | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | (2) | Hotel Adjusted EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 9,413 | $ | 1,453 | $ | 858 | $ | | $ | | $ | 2,311 | ||||||||||||
Westin Atlanta North (3) |
$ | 10,511 | $ | 311 | $ | 1,266 | $ | | $ | | $ | 1,577 | ||||||||||||
Atlanta Waverly |
$ | 20,622 | $ | (810 | ) | $ | 3,155 | $ | 3,770 | $ | | $ | 6,115 | |||||||||||
Renaissance Austin |
$ | 19,928 | $ | (381 | ) | $ | 2,865 | $ | 3,232 | $ | | $ | 5,716 | |||||||||||
Bethesda Marriott Suites |
$ | 9,988 | $ | (3,505 | ) | $ | 1,523 | $ | | $ | 4,368 | $ | 2,386 | |||||||||||
Boston Westin (3) |
$ | 42,536 | $ | 994 | $ | 8,670 | $ | | $ | 351 | $ | 10,015 | ||||||||||||
Renaissance Charleston |
$ | 6,839 | $ | 1,233 | $ | 1,129 | $ | | $ | (87 | ) | $ | 2,275 | |||||||||||
Hilton Garden Inn Chelsea (3) |
$ | 6,978 | $ | 1,225 | $ | 1,512 | $ | | $ | | $ | 2,737 | ||||||||||||
Chicago Marriott |
$ | 57,113 | $ | (7,190 | ) | $ | 9,641 | $ | 9,285 | $ | (1,095 | ) | $ | 10,641 | ||||||||||
Chicago Conrad (3) |
$ | 14,139 | $ | (225 | ) | $ | 3,319 | $ | | $ | | $ | 3,094 | |||||||||||
Courtyard Denver Downtown (3) |
$ | 5,573 | $ | 510 | $ | 839 | $ | 1,022 | $ | | $ | 2,371 | ||||||||||||
Courtyard Fifth Avenue |
$ | 9,630 | $ | (1,521 | ) | $ | 1,310 | $ | 2,405 | $ | 145 | $ | 2,339 | |||||||||||
Courtyard Midtown East |
$ | 15,590 | $ | 79 | $ | 1,561 | $ | 2,787 | $ | | $ | 4,427 | ||||||||||||
Frenchmans Reef (3) |
$ | 37,119 | $ | 5,758 | $ | 3,173 | $ | (745 | ) | $ | 1,391 | $ | 9,577 | |||||||||||
Griffin Gate Marriott |
$ | 16,051 | $ | 1,352 | $ | 2,282 | $ | | $ | (3 | ) | $ | 3,631 | |||||||||||
JW Marriott Denver Cherry Creek (3) |
$ | 12,128 | $ | 285 | $ | 1,260 | $ | 1,755 | $ | | $ | 3,300 | ||||||||||||
Los Angeles Airport |
$ | 34,699 | $ | (1,624 | ) | $ | 3,936 | $ | 3,120 | $ | | $ | 5,432 | |||||||||||
Minneapolis Hilton (3) |
$ | 31,472 | $ | 4,704 | $ | 5,076 | $ | | $ | (700 | ) | $ | 9,080 | |||||||||||
Oak Brook Hills |
$ | 14,023 | $ | (1,200 | ) | $ | 2,240 | $ | | $ | 375 | $ | 1,415 | |||||||||||
Orlando Airport Marriott |
$ | 12,874 | $ | (2,100 | ) | $ | 2,226 | $ | 2,364 | $ | | $ | 2,490 | |||||||||||
Salt Lake City Marriott |
$ | 14,350 | $ | 327 | $ | 2,145 | $ | 1,274 | $ | | $ | 3,746 | ||||||||||||
The Lodge at Sonoma |
$ | 10,287 | $ | 509 | $ | 968 | $ | | $ | | $ | 1,477 | ||||||||||||
Torrance Marriott South Bay |
$ | 13,995 | $ | 509 | $ | 2,257 | $ | | $ | | $ | 2,766 | ||||||||||||
Vail Marriott (3) |
$ | 18,053 | $ | 3,943 | $ | 1,917 | $ | | $ | | $ | 5,860 | ||||||||||||
Radisson Lexington Hotel New York
(3) |
$ | 29,617 | $ | 2,723 | $ | 7,065 | $ | 9 | $ | 103 | $ | 9,900 | ||||||||||||
Renaissance Worthington |
$ | 21,417 | $ | 2,008 | $ | 2,199 | $ | 2,182 | $ | 8 | $ | 6,397 | ||||||||||||
Total |
$ | 494,945 | $ | 9,367 | $ | 74,392 | $ | 32,460 | $ | 4,856 | $ | 121,045 | ||||||||||||
Comparable Total (4) |
$ | 457,826 | $ | 3,609 | $ | 71,219 | $ | 33,205 | $ | 3,465 | $ | 111,468 | ||||||||||||
Post-Sale Total (5) |
$ | 401,225 | $ | 3,448 | $ | 62,917 | $ | 26,203 | $ | 3,468 | $ | 96,006 | ||||||||||||
(1) | The pro forma operating data includes the operating results for the Companys hotels assuming 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 August. | |
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due to the extensive 2011 renovation. | |
(5) | The post-sale total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort and the three hotels under agreement to be sold. |
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