Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - Sunstone Hotel Investors, Inc. | ex-99d1.htm |
| 8-K - 8-K - Sunstone Hotel Investors, Inc. | f8-k.htm |
Exhibit 99.2
|
|
Supplemental Financial Information |
|
|
|
|||||||
|
|
|
|||||||
|
Supplemental Financial Information For the quarter ended March 31, 2017 May 2, 2017
|
|
|||||||
|
|
Supplemental Financial Information |
Table of Contents
|
3 |
||||||||||||
|
4 |
||||||||||||
|
5 |
||||||||||||
|
6 |
||||||||||||
|
9 |
||||||||||||
|
10 |
||||||||||||
|
12 |
||||||||||||
|
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Q1 2017/2016 |
13 |
|||||||||||
|
14 |
||||||||||||
|
Pro Forma Consolidated Statements of Operations Q1 2017 – Q2 2016, FY 2016 |
15 |
|||||||||||
|
Pro Forma Reconciliation of Net Income to EBITDA and Adjusted EBITDA FY 2016 |
16 |
|||||||||||
|
17 |
||||||||||||
|
18 |
||||||||||||
|
19 |
||||||||||||
|
20 |
||||||||||||
|
22 |
||||||||||||
|
23 |
||||||||||||
|
24 |
||||||||||||
|
25 |
||||||||||||
|
26 |
||||||||||||
|
27 |
||||||||||||
|
28 |
||||||||||||
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
Supplemental Financial Information |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
CORPORATE PROFILE, FINANCIAL DISCLOSURES,
AND SAFE HARBOR
|
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR |
|
|
Page 3 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Sunstone Hotel Investors, Inc. (NYSE:SHO) is a lodging real estate investment trust (“REIT”) that, as of May 2, 2017, has interests in 27 hotels held for investment comprised of 13,226 rooms. Sunstone’s hotels are primarily in the urban and resort upper upscale segment and are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt.
Sunstone’s mission is to create meaningful value for our stockholders by producing superior long-term returns through the ownership of long-term relevant lodging real estate. Our values include transparency, trust, ethical conduct, honest communication and discipline. As demand for lodging generally fluctuates with the overall economy, we seek to own hotels that will maintain a high appeal with travelers over long periods of time and will generate economic earnings materially in excess of recurring capital requirements.
Corporate Headquarters
120 Vantis, Suite 350
Aliso Viejo, CA 92656
(949) 330-4000
Company Contacts
John Arabia
President and Chief Executive Officer
(949) 382-3008
Bryan Giglia
Executive Vice President and Chief Financial Officer
(949) 382-3036
|
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR |
|
|
Page 4 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
This presentation 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 “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including opinions, 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 that 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: volatility in the debt or equity markets affecting our ability to acquire or sell hotel assets; international, national and local economic and business conditions, including the likelihood of a U.S. recession, changes in the European Union or global economic slowdown, as well as any type of flu or disease-related pandemic, affecting the lodging and travel industry; the ability to maintain sufficient liquidity and our access to capital markets; terrorist attacks or civil unrest, which would affect occupancy rates at our hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of our indebtedness and our ability to meet covenants in our debt and equity agreements; relationships with property managers and franchisors; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; our 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; our ability to identify, successfully compete for and complete acquisitions; the performance of hotels after they are acquired; necessary capital expenditures and our ability to fund them and complete them with minimum disruption; our ability to continue to satisfy complex rules in order for us to qualify as a REIT for federal income tax purposes; and other risks and uncertainties associated with our business described in the Company’s 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 forward-looking information in this presentation is as of May 2, 2017, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
This presentation contains unaudited information, and should be read together with the consolidated financial statements and notes thereto included in our most recent reports on Form 10-K and Form 10-Q. Copies of these reports are available on our website at www.sunstonehotels.com and through the SEC’s Electronic Data Gathering Analysis and Retrieval System (“EDGAR”) at www.sec.gov.
|
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR |
|
|
Page 5 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
We present the following non-GAAP financial measures that we believe are useful to investors as key supplemental measures of our operating performance: earnings before interest expense, taxes, depreciation and amortization, or EBITDA; Adjusted EBITDA (as defined below); funds from operations attributable to common stockholders, or FFO attributable to common stockholders; Adjusted FFO attributable to common stockholders (as defined below); hotel Adjusted EBITDA; and hotel Adjusted EBITDA margin. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. EBITDA, Adjusted EBITDA, FFO attributable to common stockholders, Adjusted FFO attributable to common stockholders, hotel Adjusted EBITDA and hotel Adjusted EBITDA margin as calculated by us, may not be comparable to other companies that do not define such terms exactly the same as the Company does. These non-GAAP measures are used in addition to and in conjunction with results presented in accordance with GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.
EBITDA and Adjusted EBITDA are commonly used measures of performance in many industries. We believe EBITDA and Adjusted EBITDA are useful to investors in evaluating our operating performance because these measures help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization) from our operating results. We also believe the use of EBITDA and Adjusted EBITDA facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital-intensive companies. In addition, certain covenants included in our indebtedness use EBITDA as a measure of financial compliance. We also use EBITDA and Adjusted EBITDA as measures in determining the value of hotel acquisitions and dispositions.
Historically, we have adjusted EBITDA when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful information to investors regarding our operating performance and that the presentation of Adjusted EBITDA, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s complete understanding of our operating performance.
We believe that the presentation of FFO attributable to common stockholders provides useful information to investors regarding our operating performance because it is a measure of our operations without regard to specified noncash items such as real estate depreciation and amortization, amortization of lease intangibles, any real estate impairment loss and any gain or loss on sale of real estate assets, all of which are based on historical cost accounting and may be of lesser significance in evaluating our current performance. Our presentation of FFO attributable to common stockholders conforms to the National Association of Real Estate Investment Trusts’ (“NAREIT”) definition of “FFO applicable to common shares.” This may not be comparable to FFO reported by other REITs that do not define the terms in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently that we do.
We also present Adjusted FFO attributable to common stockholders when evaluating our operating performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance, and may facilitate comparisons of operating performance between periods and our peer companies.
|
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR |
|
|
Page 6 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
We adjust EBITDA and FFO attributable to common stockholders for the following items, which may occur in any period, and refer to these measures as either Adjusted EBITDA or Adjusted FFO attributable to common stockholders:
|
· |
Amortization of favorable and unfavorable contracts: we exclude the noncash amortization of the favorable management contract asset recorded in conjunction with our acquisition of the Hilton Garden Inn Chicago Downtown/Magnificent Mile, along with the favorable and unfavorable tenant lease contracts, as applicable, recorded in conjunction with our acquisitions of the Boston Park Plaza, the Hilton Garden Inn Chicago Downtown/Magnificent Mile, the Hilton New Orleans St. Charles, the Hyatt Regency San Francisco and the Wailea Beach Resort. We exclude the noncash amortization of favorable and unfavorable contracts because it is based on historical cost accounting and is of lesser significance in evaluating our actual performance for the current period. |
|
· |
Ground rent adjustments: we exclude the noncash expense incurred from straight-lining our ground lease obligations as this expense does not reflect the actual rent amounts due to the respective lessors in the current period and is of lesser significance in evaluating our actual performance for the current period. |
|
· |
Gains or losses from debt transactions: we exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of deferred financing costs from the original issuance of the debt being redeemed or retired because, like interest expense, their removal helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure. |
|
· |
Acquisition costs: under GAAP, costs associated with completed acquisitions that meet the Financial Accounting Standards Board’s (“FASB”) definition of a business in accordance with the Business Combinations Topic of the Accounting Standards Codification are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company or our hotels. |
|
· |
Noncontrolling interest: we deduct the noncontrolling partner’s pro rata share of any EBITDA or FFO adjustments related to our consolidated Hilton San Diego Bayfront partnership. |
|
· |
Cumulative effect of a change in accounting principle: from time to time, the FASB promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments, which include the accounting impact from prior periods, because they do not reflect our actual performance for that period. |
|
· |
Impairment losses: we exclude the effect of impairment losses because we believe that including them in Adjusted EBITDA and Adjusted FFO attributable to common stockholders is not consistent with reflecting the ongoing performance of our remaining assets. |
|
· |
Other adjustments: we exclude other adjustments that we believe are outside the ordinary course of business because we do not believe these costs reflect our actual performance for the period and/or the ongoing operations of our hotels. Such items may include: lawsuit settlement costs; prior year property tax assessments or credits; property-level restructuring, severance and management transition costs; lease terminations; and any gains or losses we have recognized on sales or redemptions of assets other than real estate investments. |
|
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR |
|
|
Page 7 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
In addition, to derive Adjusted EBITDA we exclude the noncash expense incurred with the amortization of deferred stock compensation as this expense is based on historical stock prices at the date of grant to our corporate employees and does not reflect the underlying performance of our hotels. We also include an adjustment for the cash ground lease expense recorded on the Hyatt Centric Chicago Magnificent Mile’s building lease. Upon acquisition of this hotel, we determined that the building lease was a capital lease, and, therefore, we include a portion of the capital lease payment each month in interest expense. We include an adjustment for ground lease expense on capital leases in order to more accurately reflect the actual rent due to the hotel’s lessor in the current period, as well as the operating performance of the Hyatt Centric Chicago Magnificent Mile. We also exclude the effect of gains and losses on the disposition of depreciable assets because we believe that including them in Adjusted EBITDA is not consistent with reflecting the ongoing performance of our assets. In addition, material gains or losses from the depreciated value of the disposed assets could be less important to investors given that the depreciated asset value often does not reflect its market value.
To derive Adjusted FFO attributable to common stockholders, we also exclude the noncash gains or losses on our derivatives, as well as any federal and state taxes associated with the application of net operating loss carryforwards, uncertain tax positions or with the sale of assets other than real estate investments. We believe that these items are not reflective of our ongoing finance costs.
Reconciliations of net income to EBITDA and Adjusted EBITDA are set forth on page 13 of this supplemental package. Reconciliations of net income to FFO attributable to common stockholders and Adjusted FFO attributable to common stockholders are set forth on page 14 of this supplemental package.
Our 27 Hotel Portfolio is comprised of all 27 hotels we owned as of March 31, 2017. We believe that providing comparable hotel data is useful to us and to investors in evaluating our operating performance because this measure helps us and investors evaluate and compare the results of our operations from period to period by removing the fluctuations caused by any acquisitions or dispositions, as well as by those hotels that we classify as held for sale, those hotels that are undergoing a material renovation or repositioning and those hotels whose room counts have materially changed during either the current or prior year. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.
|
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR |
|
|
Page 8 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
CORPORATE FINANCIAL INFORMATION
|
CORPORATE FINANCIAL INFORMATION |
|
|
Page 9 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Condensed Consolidated Balance Sheets
Q1 2017 – Q1 2016
|
(In thousands) |
|
March 31, 2017 (1) |
|
December 31, 2016 (2) |
|
September 30, 2016 (3) |
|
June 30, 2016 (4) |
|
March 31, 2016 (5) |
|||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|||||
|
Investment in hotel properties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land |
|
$ |
531,660 |
|
$ |
531,660 |
|
$ |
542,660 |
|
$ |
542,660 |
|
$ |
542,660 |
|
Buildings & improvements |
|
|
3,174,081 |
|
|
3,135,806 |
|
|
3,168,291 |
|
|
3,118,115 |
|
|
3,130,034 |
|
Furniture, fixtures, & equipment |
|
|
522,806 |
|
|
512,372 |
|
|
510,347 |
|
|
492,275 |
|
|
491,464 |
|
Other |
|
|
98,636 |
|
|
115,485 |
|
|
164,893 |
|
|
190,358 |
|
|
168,171 |
|
|
|
|
4,327,183 |
|
|
4,295,323 |
|
|
4,386,191 |
|
|
4,343,408 |
|
|
4,332,329 |
|
Less accumulated depreciation & amortization |
|
|
(1,177,711) |
|
|
(1,137,104) |
|
|
(1,151,377) |
|
|
(1,111,739) |
|
|
(1,088,354) |
|
|
|
|
3,149,472 |
|
|
3,158,219 |
|
|
3,234,814 |
|
|
3,231,669 |
|
|
3,243,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other noncurrent assets, net |
|
|
12,032 |
|
|
13,391 |
|
|
11,684 |
|
|
12,300 |
|
|
12,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
441,830 |
|
|
369,537 |
|
|
367,117 |
|
|
354,682 |
|
|
396,669 |
|
Restricted cash |
|
|
64,414 |
|
|
67,923 |
|
|
67,248 |
|
|
62,335 |
|
|
68,313 |
|
Other current assets, net |
|
|
64,733 |
|
|
51,051 |
|
|
58,598 |
|
|
56,154 |
|
|
60,445 |
|
Assets held for sale, net |
|
|
— |
|
|
79,113 |
|
|
— |
|
|
— |
|
|
— |
|
Total assets |
|
$ |
3,732,481 |
|
$ |
3,739,234 |
|
$ |
3,739,461 |
|
$ |
3,717,140 |
|
$ |
3,781,790 |
*Footnotes on following page.
|
CORPORATE FINANCIAL INFORMATION |
|
|
Page 10 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Condensed Consolidated Balance Sheets
Q1 2017– Q1 2016 (cont.)
|
(In thousands) |
|
March 31, 2017 (1) |
|
December 31, 2016 (2) |
|
September 30, 2016 (3) |
|
June 30, 2016 (4) |
|
March 31, 2016 (5) |
||||||
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
||||||
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of notes payable, net |
|
$ |
8,898 |
|
$ |
184,929 |
|
$ |
251,276 |
|
$ |
251,719 |
|
$ |
149,021 |
|
|
Other current liabilities |
|
|
111,419 |
|
|
220,722 |
|
|
117,911 |
|
|
114,258 |
|
|
117,442 |
|
|
Liabilities of assets held for sale |
|
|
— |
|
|
3,153 |
|
|
— |
|
|
— |
|
|
— |
|
|
Total current liabilities |
|
|
120,317 |
|
|
408,804 |
|
|
369,187 |
|
|
365,977 |
|
|
266,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable, less current portion, net |
|
|
982,460 |
|
|
746,374 |
|
|
748,767 |
|
|
751,096 |
|
|
929,390 |
|
|
Capital lease obligations, less current portion |
|
|
15,574 |
|
|
15,574 |
|
|
15,574 |
|
|
15,575 |
|
|
15,575 |
|
|
Other liabilities |
|
|
36,917 |
|
|
36,650 |
|
|
42,677 |
|
|
44,945 |
|
|
41,052 |
|
|
Total liabilities |
|
|
1,155,268 |
|
|
1,207,402 |
|
|
1,176,205 |
|
|
1,177,593 |
|
|
1,252,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.0% Series D cumulative redeemable preferred stock |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
115,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.95% Series E cumulative redeemable preferred stock |
|
|
115,000 |
|
|
115,000 |
|
|
115,000 |
|
|
115,000 |
|
|
115,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.45% Series F cumulative redeemable preferred stock |
|
|
75,000 |
|
|
75,000 |
|
|
75,000 |
|
|
75,000 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 500,000,000 shares authorized |
|
|
2,204 |
|
|
2,201 |
|
|
2,165 |
|
|
2,166 |
|
|
2,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid in capital |
|
|
2,594,724 |
|
|
2,596,620 |
|
|
2,540,782 |
|
|
2,539,278 |
|
|
2,535,141 |
|
|
Retained earnings |
|
|
848,736 |
|
|
786,901 |
|
|
753,725 |
|
|
716,351 |
|
|
652,270 |
|
|
Cumulative dividends and distributions |
|
|
(1,107,180) |
|
|
(1,092,952) |
|
|
(973,105) |
|
|
(959,072) |
|
|
(941,460) |
|
|
Total stockholders' equity |
|
|
2,528,484 |
|
|
2,482,770 |
|
|
2,513,567 |
|
|
2,488,723 |
|
|
2,478,116 |
|
|
Noncontrolling interest in consolidated joint venture |
|
|
48,729 |
|
|
49,062 |
|
|
49,689 |
|
|
50,824 |
|
|
51,194 |
|
|
Total equity |
|
|
2,577,213 |
|
|
2,531,832 |
|
|
2,563,256 |
|
|
2,539,547 |
|
|
2,529,310 |
|
|
Total liabilities and equity |
|
$ |
3,732,481 |
|
$ |
3,739,234 |
|
$ |
3,739,461 |
|
$ |
3,717,140 |
|
$ |
3,781,790 |
|
|
(1) |
As presented on Form 10-Q to be filed in May 2017. |
|
(2) |
As presented on Form 10-K filed on February 23, 2017. |
|
(3) |
As presented on Form 10-Q filed November 2, 2016. |
|
(4) |
As presented on Form 10-Q filed August 8, 2016. |
|
(5) |
As presented on Form 10-Q filed May 3, 2016. |
|
CORPORATE FINANCIAL INFORMATION |
|
|
Page 11 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Consolidated Statements of Operations
Q1 2017/2016
|
|
|
|
Three Months Ended March 31, |
|||
|
(In thousands, except per share data) |
|
|
2017 |
|
|
2016 |
|
Revenues |
|
|
|
|
|
|
|
Room |
|
$ |
190,367 |
|
$ |
187,297 |
|
Food and beverage |
|
|
75,501 |
|
|
71,234 |
|
Other operating |
|
|
14,875 |
|
|
15,761 |
|
Total revenues |
|
|
280,743 |
|
|
274,292 |
|
Operating expenses |
|
|
|
|
|
|
|
Room |
|
|
51,292 |
|
|
51,044 |
|
Food and beverage |
|
|
50,537 |
|
|
51,929 |
|
Other operating |
|
|
3,831 |
|
|
4,056 |
|
Advertising and promotion |
|
|
14,946 |
|
|
14,993 |
|
Repairs and maintenance |
|
|
10,967 |
|
|
11,264 |
|
Utilities |
|
|
7,222 |
|
|
7,514 |
|
Franchise costs |
|
|
8,055 |
|
|
8,096 |
|
Property tax, ground lease and insurance |
|
|
21,287 |
|
|
22,840 |
|
Other property-level expenses |
|
|
34,738 |
|
|
34,713 |
|
Corporate overhead |
|
|
6,779 |
|
|
6,717 |
|
Depreciation and amortization |
|
|
40,807 |
|
|
40,047 |
|
Total operating expenses |
|
|
250,461 |
|
|
253,213 |
|
Operating income |
|
|
30,282 |
|
|
21,079 |
|
Interest and other income |
|
|
721 |
|
|
489 |
|
Interest expense |
|
|
(11,249) |
|
|
(20,010) |
|
Loss on extinguishment of debt |
|
|
(4) |
|
|
(105) |
|
Gain on sale of assets |
|
|
44,285 |
|
|
— |
|
Income before income taxes |
|
|
64,035 |
|
|
1,453 |
|
Income tax provision |
|
|
(208) |
|
|
(237) |
|
Net income |
|
|
63,827 |
|
|
1,216 |
|
Income from consolidated joint venture attributable to noncontrolling interest |
|
|
(1,992) |
|
|
(1,650) |
|
Preferred stock dividends |
|
|
(3,207) |
|
|
(2,766) |
|
Income (loss) attributable to common stockholders |
|
$ |
58,628 |
|
$ |
(3,200) |
|
|
|
|
|
|
|
|
|
Basic and diluted per share amounts: |
|
|
|
|
|
|
|
Basic and diluted income (loss) attributable to common stockholders per common share |
|
$ |
0.27 |
|
$ |
(0.02) |
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average common shares outstanding |
|
|
219,093 |
|
|
212,887 |
|
|
|
|
|
|
|
|
|
Distributions declared per common share |
|
$ |
0.05 |
|
$ |
0.05 |
|
CORPORATE FINANCIAL INFORMATION |
|
|
Page 12 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Q1 2017/2016
|
|
|
Three Months Ended March 31, |
||||
|
(In thousands) |
|
|
2017 |
|
|
2016 |
|
Net income |
|
$ |
63,827 |
|
$ |
1,216 |
|
Operations held for investment: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
40,807 |
|
|
40,047 |
|
Amortization of lease intangibles |
|
|
63 |
|
|
63 |
|
Interest expense |
|
|
11,249 |
|
|
20,010 |
|
Income tax provision |
|
|
208 |
|
|
237 |
|
Noncontrolling interest: |
|
|
|
|
|
|
|
Income from consolidated joint venture attributable to noncontrolling interest |
|
|
(1,992) |
|
|
(1,650) |
|
Depreciation and amortization |
|
|
(875) |
|
|
(865) |
|
Interest expense |
|
|
(457) |
|
|
(413) |
|
EBITDA |
|
|
112,830 |
|
|
58,645 |
|
|
|
|
|
|
|
|
|
Operations held for investment: |
|
|
|
|
|
|
|
Amortization of deferred stock compensation |
|
|
1,749 |
|
|
1,614 |
|
Amortization of favorable and unfavorable contracts, net |
|
|
99 |
|
|
(4) |
|
Noncash ground rent |
|
|
(275) |
|
|
488 |
|
Capital lease obligation interest - cash ground rent |
|
|
(351) |
|
|
(351) |
|
Gain on sale of assets, net |
|
|
(44,570) |
|
|
(7) |
|
Loss on extinguishment of debt |
|
|
4 |
|
|
105 |
|
Prior year property tax adjustments, net |
|
|
— |
|
|
(97) |
|
Property-level restructuring, severance and management transition costs |
|
|
— |
|
|
1,560 |
|
Noncontrolling interest: |
|
|
|
|
|
|
|
Noncash ground rent |
|
|
72 |
|
|
(113) |
|
|
|
|
(43,272) |
|
|
3,195 |
|
Adjusted EBITDA |
|
$ |
69,558 |
|
$ |
61,840 |
|
CORPORATE FINANCIAL INFORMATION |
|
|
Page 13 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders
Q1 2017/2016
|
|
|
Three Months Ended March 31, |
||||
|
(In thousands, except per share data) |
|
|
2017 |
|
|
2016 |
|
Net income |
|
$ |
63,827 |
|
$ |
1,216 |
|
Preferred stock dividends |
|
|
(3,207) |
|
|
(2,766) |
|
Operations held for investment: |
|
|
|
|
|
|
|
Real estate depreciation and amortization |
|
|
40,678 |
|
|
39,893 |
|
Amortization of lease intangibles |
|
|
63 |
|
|
63 |
|
Gain on sale of assets, net |
|
|
(44,570) |
|
|
(7) |
|
Noncontrolling interest: |
|
|
|
|
|
|
|
Income from consolidated joint venture attributable to noncontrolling interest |
|
|
(1,992) |
|
|
(1,650) |
|
Real estate depreciation and amortization |
|
|
(875) |
|
|
(865) |
|
FFO attributable to common stockholders |
|
|
53,924 |
|
|
35,884 |
|
|
|
|
|
|
|
|
|
Operations held for investment: |
|
|
|
|
|
|
|
Amortization of favorable and unfavorable contracts, net |
|
|
99 |
|
|
(4) |
|
Noncash ground rent |
|
|
(275) |
|
|
488 |
|
Noncash interest related to (gain) loss on derivatives, net |
|
|
(657) |
|
|
6,402 |
|
Loss on extinguishment of debt |
|
|
4 |
|
|
105 |
|
Prior year property tax adjustments, net |
|
|
— |
|
|
(97) |
|
Property-level restructuring, severance and management transition costs |
|
|
— |
|
|
1,560 |
|
Noncontrolling interest: |
|
|
|
|
|
|
|
Noncash ground rent |
|
|
72 |
|
|
(113) |
|
Noncash interest related to loss on derivative |
|
|
(4) |
|
|
— |
|
|
|
|
(761) |
|
|
8,341 |
|
Adjusted FFO attributable to common stockholders |
|
$ |
53,163 |
|
$ |
44,225 |
|
FFO attributable to common stockholders per diluted share |
|
$ |
0.25 |
|
$ |
0.17 |
|
Adjusted FFO attributable to common stockholders per diluted share |
|
$ |
0.24 |
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
|
|
219,093 |
|
|
212,887 |
|
Shares associated with unvested restricted stock awards |
|
|
262 |
|
|
84 |
|
Diluted weighted average shares outstanding |
|
|
219,355 |
|
|
212,971 |
|
CORPORATE FINANCIAL INFORMATION |
|
|
Page 14 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Pro Forma Consolidated Statements of Operations
Q1 2017 – Q2 2016, FY 2016
|
|
Three Months Ended (1) |
|
Year Ended (1) |
|
||||||||||||||||||||||
|
(Unaudited and in thousands) |
|
Mar. 31, |
|
|
Dec. 31, |
|
|
Sept. 30, |
|
|
June 30, |
|
|
Dec. 31, |
|
|||||||||||
|
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Room |
$ |
190,367 |
|
$ |
190,739 |
|
$ |
212,099 |
|
$ |
218,123 |
|
$ |
800,894 |
|
|||||||||||
|
Food and beverage |
|
75,501 |
|
|
70,686 |
|
|
66,838 |
|
|
77,906 |
|
|
283,449 |
|
|||||||||||
|
Other operating |
|
14,875 |
|
|
20,786 |
|
|
15,994 |
|
|
15,983 |
|
|
67,855 |
|
|||||||||||
|
Total revenues |
|
280,743 |
|
|
282,211 |
|
|
294,931 |
|
|
312,012 |
|
|
1,152,198 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Room |
|
51,292 |
|
|
50,384 |
|
|
53,050 |
|
|
52,815 |
|
|
205,348 |
|
|||||||||||
|
Food and beverage |
|
50,537 |
|
|
48,302 |
|
|
47,504 |
|
|
50,675 |
|
|
196,121 |
|
|||||||||||
|
Other expenses |
|
101,046 |
|
|
100,106 |
|
|
100,923 |
|
|
100,273 |
|
|
400,539 |
|
|||||||||||
|
Corporate overhead |
|
6,779 |
|
|
6,073 |
|
|
6,392 |
|
|
6,809 |
|
|
25,991 |
|
|||||||||||
|
Depreciation and amortization |
|
40,807 |
|
|
40,788 |
|
|
39,363 |
|
|
39,469 |
|
|
158,239 |
|
|||||||||||
|
Total operating expenses |
|
250,461 |
|
|
245,653 |
|
|
247,232 |
|
|
250,041 |
|
|
986,238 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Operating Income |
|
30,282 |
|
|
36,558 |
|
|
47,699 |
|
|
61,971 |
|
|
165,960 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Interest and other income |
|
721 |
|
|
673 |
|
|
283 |
|
|
355 |
|
|
1,800 |
|
|||||||||||
|
Interest expense |
|
(11,249) |
|
|
(3,265) |
|
|
(11,136) |
|
|
(15,872) |
|
|
(50,283) |
|
|||||||||||
|
Loss on extinguishment of debt |
|
(4) |
|
|
(25) |
|
|
— |
|
|
(154) |
|
|
(284) |
|
|||||||||||
|
Gain on sale of asset |
|
44,285 |
|
|
190 |
|
|
— |
|
|
— |
|
|
190 |
|
|||||||||||
|
Income before income taxes |
|
64,035 |
|
|
34,131 |
|
|
36,846 |
|
|
46,300 |
|
|
117,383 |
|
|||||||||||
|
Income tax (provision) benefit |
|
(208) |
|
|
(343) |
|
|
1,434 |
|
|
(238) |
|
|
616 |
|
|||||||||||
|
Income from continuing operations |
$ |
63,827 |
|
$ |
33,788 |
|
$ |
38,280 |
|
$ |
46,062 |
|
$ |
117,999 |
|
|||||||||||
|
Adjusted EBITDA (2) |
$ |
69,558 |
|
$ |
77,551 |
|
$ |
85,713 |
|
$ |
98,451 |
|
$ |
320,780 |
|
|||||||||||
|
(1) |
Includes the Company's ownership results for all 27 hotels owned by the Company as of March 31, 2017. Excludes the Company's ownership results for the Fairmont Newport Beach and the Sheraton Cerritos sold in February 2017 and May 2016, respectively. |
|
(2) |
The Adjusted EBITDA reconciliation for the year ended December 31, 2016 can be found on page 16 of this supplemental package. |
|
CORPORATE FINANCIAL INFORMATION |
|
|
Page 15 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Pro Forma Reconciliation of Net Income to EBITDA and Adjusted EBITDA
FY 2016
|
|
Year Ended December 31, 2016 |
||||||||
|
|
|
|
Disposition: |
Held for Sale: |
|
|
|||
|
|
|
|
Sheraton |
Fairmont |
Pro |
||||
|
(In thousands, except per share amounts) |
Actual (1) |
Cerritos (2) |
Newport Beach (3) |
Forma (4) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
140,677 |
$ |
(19,099) |
$ |
(3,579) |
$ |
117,999 |
|
|
Operations held for investment: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
163,016 |
|
(528) |
|
(4,249) |
|
158,239 |
|
|
Amortization of lease intangibles |
|
252 |
|
— |
|
— |
|
252 |
|
|
Interest expense |
|
50,283 |
|
— |
|
— |
|
50,283 |
|
|
Income tax benefit |
|
(616) |
|
— |
|
— |
|
(616) |
|
|
Noncontrolling interest: |
|
|
|
|
|
|
|
|
|
|
Income from consolidated joint venture attributable to noncontrolling interest |
|
(6,480) |
|
— |
|
— |
|
(6,480) |
|
|
Depreciation and amortization |
|
(3,480) |
|
— |
|
— |
|
(3,480) |
|
|
Interest expense |
|
(1,684) |
|
— |
|
— |
|
(1,684) |
|
|
EBITDA |
|
341,968 |
|
(19,627) |
|
(7,828) |
|
314,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations held for investment: |
|
|
|
|
|
|
|
|
|
|
Amortization of deferred stock compensation |
|
7,157 |
|
— |
|
— |
|
7,157 |
|
|
Amortization of favorable and unfavorable contracts, net |
|
394 |
|
— |
|
— |
|
394 |
|
|
Noncash ground rent |
|
1,878 |
|
— |
|
— |
|
1,878 |
|
|
Capital lease obligation interest - cash ground rent |
|
(1,404) |
|
— |
|
— |
|
(1,404) |
|
|
Gain on sale of assets, net |
|
(18,422) |
|
18,223 |
|
— |
|
(199) |
|
|
Loss on extinguishment of debt |
|
284 |
|
— |
|
— |
|
284 |
|
|
Prior year property tax adjustments, net |
|
(3,971) |
|
— |
|
— |
|
(3,971) |
|
|
Property-level restructuring, severance and management transition costs |
|
1,578 |
|
— |
|
— |
|
1,578 |
|
|
Lease termination costs |
|
1,000 |
|
— |
|
— |
|
1,000 |
|
|
Noncontrolling interest: |
|
|
|
|
|
|
|
|
|
|
Noncash ground rent |
|
(450) |
|
— |
|
— |
|
(450) |
|
|
|
|
(11,956) |
|
18,223 |
|
— |
|
6,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
330,012 |
$ |
(1,404) |
$ |
(7,828) |
$ |
320,780 |
|
*Footnotes on page 18
|
CORPORATE FINANCIAL INFORMATION |
|
|
Page 16 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders
FY 2016
|
|
Year Ended December 31, 2016 |
|||||||
|
|
|
|
Disposition: |
Held for Sale: |
|
|
||
|
|
|
|
Sheraton |
Fairmont |
Pro |
|||
|
(In thousands, except per share amounts) |
Actual (1) |
Cerritos (2) |
Newport Beach (3) |
Forma (4) |
||||
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
140,677 |
$ |
(19,099) |
$ |
(3,579) |
$ |
117,999 |
|
Preferred stock dividends and redemption charge |
|
(15,964) |
|
— |
|
— |
|
(15,964) |
|
Operations held for investment: |
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization |
|
162,431 |
|
(528) |
|
(4,249) |
|
157,654 |
|
Amortization of lease intangibles |
|
252 |
|
— |
|
— |
|
252 |
|
Gain on sale of assets, net |
|
(18,422) |
|
18,223 |
|
— |
|
(199) |
|
Noncontrolling interest: |
|
|
|
|
|
|
|
|
|
Income from consolidated joint venture attributable to noncontrolling interest |
|
(6,480) |
|
— |
|
— |
|
(6,480) |
|
Real estate depreciation and amortization |
|
(3,480) |
|
— |
|
— |
|
(3,480) |
|
FFO attributable to common stockholders |
|
259,014 |
|
(1,404) |
|
(7,828) |
|
249,782 |
|
|
|
|
|
|
|
|
|
|
|
Operations held for investment: |
|
|
|
|
|
|
|
|
|
Amortization of favorable and unfavorable contracts, net |
|
394 |
|
— |
|
— |
|
394 |
|
Noncash ground rent |
|
1,878 |
|
— |
|
— |
|
1,878 |
|
Noncash interest related to gain on derivatives, net |
|
(1,426) |
|
— |
|
— |
|
(1,426) |
|
Loss on extinguishment of debt |
|
284 |
|
— |
|
— |
|
284 |
|
Prior year property tax adjustments, net |
|
(3,971) |
|
— |
|
— |
|
(3,971) |
|
Property-level restructuring, severance and management transition costs |
|
1,578 |
|
— |
|
— |
|
1,578 |
|
Lease termination costs |
|
1,000 |
|
— |
|
— |
|
1,000 |
|
Income tax benefit related to prior years |
|
(1,596) |
|
— |
|
— |
|
(1,596) |
|
Preferred stock redemption charge |
|
4,052 |
|
— |
|
— |
|
4,052 |
|
Noncontrolling interest: |
|
|
|
|
|
|
|
|
|
Noncash ground rent |
|
(450) |
|
— |
|
— |
|
(450) |
|
|
|
1,743 |
|
— |
|
— |
|
1,743 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted FFO attributable to common stockholders |
$ |
260,757 |
$ |
(1,404) |
$ |
(7,828) |
$ |
251,525 |
|
|
|
|
|
|
|
|
|
|
|
FFO attributable to common stockholders per diluted share |
$ |
1.20 |
|
|
|
|
$ |
1.16 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted FFO attributable to common stockholders per diluted share |
$ |
1.21 |
|
|
|
|
$ |
1.17 |
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
|
214,966 |
|
|
|
|
|
214,966 |
|
Shares associated with unvested restricted stock awards |
|
242 |
|
|
|
|
|
242 |
|
Diluted weighted average shares outstanding |
|
215,208 |
|
|
|
|
|
215,208 |
*Footnotes on page 18
|
CORPORATE FINANCIAL INFORMATION |
|
|
Page 17 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Pro Forma Reconciliation of Net Income to EBITDA, Adjusted EBITDA, FFO and
Adjusted FFO Attributable to Common Stockholders
FY 2016 Footnotes
|
(1) |
Actual represents the Company's ownership results for the 28 hotels owned by the Company as of December 31, 2016. |
|
(2) |
Disposition: Sheraton Cerritos represents the Company's ownership results from the Sheraton Cerritos that was sold in May 2016. |
|
(3) |
Held for Sale: Fairmont Newport Beach represents the Company's ownership results from the Fairmont Newport Beach that was classified as held for sale at December 31, 2016, and subsequently sold in February 2017. |
|
(4) |
Pro Forma represents the Company's ownership results for the pro forma 27 hotel portfolio. |
|
CORPORATE FINANCIAL INFORMATION |
|
|
Page 18 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Earnings Guidance for Q2 and FY 2017
The Company’s achievement of the anticipated results is subject to risks and uncertainties, including those disclosed in the Company’s filings with the Securities and Exchange Commission. The Company’s guidance does not take into account the impact of any unanticipated developments in its business or changes in its operating environment, nor does it take into account any unannounced hotel acquisitions, dispositions, re-brandings, management changes, transition costs, severance costs associated with restructuring hotel services, early lease termination costs, prior year property tax assessments or credits, debt repurchases/repayments, or unannounced financings during 2017.
For the second quarter of 2017, the Company expects:
|
Metric |
Quarter Ended June 30, 2017 Guidance (1) |
|
Net Income ($ millions) |
$43 to $47 |
|
27 Hotel Portfolio RevPAR Growth |
+ 0.75% to + 2.75% |
|
Adjusted EBITDA ($ millions) |
$96 to $99 |
|
Adjusted FFO Attributable to Common Stockholders ($ millions) |
$78 to $81 |
|
Adjusted FFO Attributable to Common Stockholders per Diluted Share |
$0.35 to $0.37 |
|
Diluted Weighted Average Shares Outstanding |
219,500,000 |
For the full year of 2017, the Company expects:
|
Metric |
Prior Full Year 2017 Guidance (2) |
Current Full Year 2017 Guidance (1) |
Change in Full Year 2017 Guidance Midpoint |
|
Net Income ($ millions) |
$150 to $174 |
$156 to $174 |
+ $2 |
|
27 Hotel Portfolio RevPAR Growth |
+ 0.5% to + 3.5% |
+ 1.5% to + 3.5% |
+ 1% |
|
Adjusted EBITDA ($ millions) |
$306 to $330 |
$316 to $334 |
+ $7 |
|
Adjusted FFO Attributable to Common Stockholders ($ millions) |
$239 to $263 |
$250 to $268 |
+ $8 |
|
Adjusted FFO Attributable to Common Stockholders per Diluted Share |
$1.09 to $1.19 |
$1.14 to $1.22 |
+ $0.04 |
|
Diluted Weighted Average Shares Outstanding |
219,800,000 |
219,800,000 |
― |
|
(1) |
See page 22 for a detailed reconciliation. |
|
(2) |
Represents guidance presented on February 21, 2017. |
|
EARNINGS GUIDANCE |
|
|
Page 20 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Earnings Guidance for Q2 and FY 2017
Second quarter and full year 2017 guidance are based in part on the following assumptions:
|
· |
Full year 27 Hotel Portfolio RevPAR guidance is benefiting 150 to 200 basis points from the completed repositioning at the Wailea Beach Resort. |
|
· |
Full year 27 Hotel Portfolio Adjusted EBITDA Margin change of approximately flat to +75 basis points. |
|
· |
Full year corporate overhead expense (excluding deferred stock amortization and one-time expenses related to any acquisition closing costs) of approximately $19.5 million to $20.5 million. |
|
· |
Full year amortization of deferred stock compensation expense of approximately $8.1 million. |
|
· |
Full year interest expense of approximately $47.2 million to $47.4 million, including approximately $2.3 million in amortization of deferred financing fees and excluding approximately $1.4 million of capital lease obligation interest. |
|
· |
Full year total preferred dividends of $12.8 million, which includes the Series E and Series F cumulative redeemable preferred stock. |
|
EARNINGS GUIDANCE |
|
|
Page 21 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Reconciliation of Net Income to Adjusted EBITDA and Adjusted FFO Attributable to Common Stockholders
Q2 and FY 2017
Reconciliation of Net Income to Adjusted EBITDA
|
|
|
|
Quarter Ended |
|
|
Year Ended |
||||||
|
|
|
|
June 30, 2017 |
|
|
December 31, 2017 |
||||||
|
(In thousands, except per share data) |
|
|
Low |
|
|
High |
|
|
Low |
|
|
High |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
43,400 |
|
$ |
46,600 |
|
$ |
155,600 |
|
$ |
173,600 |
|
Depreciation and amortization |
|
|
40,500 |
|
|
40,700 |
|
|
162,400 |
|
|
162,800 |
|
Amortization of lease intangibles |
|
|
100 |
|
|
100 |
|
|
300 |
|
|
300 |
|
Interest expense |
|
|
12,800 |
|
|
12,500 |
|
|
47,400 |
|
|
47,200 |
|
Income tax provision |
|
|
200 |
|
|
200 |
|
|
800 |
|
|
800 |
|
Noncontrolling interest |
|
|
(3,000) |
|
|
(3,100) |
|
|
(11,700) |
|
|
(11,900) |
|
Amortization of deferred stock compensation |
|
|
2,600 |
|
|
2,600 |
|
|
8,100 |
|
|
8,100 |
|
Amortization of favorable and unfavorable contracts, net |
|
|
100 |
|
|
100 |
|
|
200 |
|
|
200 |
|
Noncash ground rent |
|
|
(300) |
|
|
(300) |
|
|
(1,100) |
|
|
(1,100) |
|
Capital lease obligation interest - cash ground rent |
|
|
(400) |
|
|
(400) |
|
|
(1,400) |
|
|
(1,400) |
|
Gain on sale of assets, net |
|
|
— |
|
|
— |
|
|
(44,600) |
|
|
(44,600) |
|
Adjusted EBITDA |
|
$ |
96,000 |
|
$ |
99,000 |
|
$ |
316,000 |
|
$ |
334,000 |
Reconciliation of Net Income to Adjusted FFO Attributable to Common Stockholders
|
Net income |
|
$ |
43,400 |
|
$ |
46,600 |
|
$ |
155,600 |
|
$ |
173,600 |
|
Preferred stock dividends |
|
|
(3,200) |
|
|
(3,200) |
|
|
(12,800) |
|
|
(12,800) |
|
Real estate depreciation and amortization |
|
|
40,400 |
|
|
40,600 |
|
|
162,100 |
|
|
162,500 |
|
Amortization of lease intangibles |
|
|
100 |
|
|
100 |
|
|
300 |
|
|
300 |
|
Noncontrolling interest |
|
|
(2,600) |
|
|
(2,700) |
|
|
(9,600) |
|
|
(9,800) |
|
Amortization of favorable and unfavorable contracts, net |
|
|
100 |
|
|
100 |
|
|
200 |
|
|
200 |
|
Noncash ground rent |
|
|
(300) |
|
|
(300) |
|
|
(1,100) |
|
|
(1,100) |
|
Noncash interest related to gain on derivatives, net |
|
|
— |
|
|
— |
|
|
(600) |
|
|
(600) |
|
Gain on sale of assets, net |
|
|
— |
|
|
— |
|
|
(44,600) |
|
|
(44,600) |
|
Adjusted FFO attributable to common stockholders |
|
$ |
77,900 |
|
$ |
81,200 |
|
$ |
249,500 |
|
$ |
267,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted FFO attributable to common stockholders per diluted share |
|
$ |
0.35 |
|
$ |
0.37 |
|
$ |
1.14 |
|
$ |
1.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding |
|
|
219,500 |
|
|
219,500 |
|
|
219,800 |
|
|
219,800 |
|
EARNINGS GUIDANCE |
|
|
Page 22 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Comparative Capitalization
Q1 2017 – Q1 2016
|
|
|
|
March 31, |
|
|
Dec. 31, |
|
|
Sept. 30, |
|
|
June 30, |
|
|
March 31, |
|
|
(In thousands, except per share data) |
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Price & Dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At the end of the quarter |
|
$ |
15.33 |
|
$ |
15.25 |
|
$ |
12.79 |
|
$ |
12.07 |
|
$ |
14.00 |
|
|
High during quarter ended |
|
$ |
15.65 |
|
$ |
15.91 |
|
$ |
13.89 |
|
$ |
13.85 |
|
$ |
14.00 |
|
|
Low during quarter ended |
|
$ |
14.24 |
|
$ |
12.20 |
|
$ |
12.03 |
|
$ |
11.37 |
|
$ |
10.13 |
|
|
Common dividends per share |
|
$ |
0.05 |
|
$ |
0.53 |
|
$ |
0.05 |
|
$ |
0.05 |
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares & Units |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
|
220,417 |
|
|
220,073 |
|
|
216,509 |
|
|
216,576 |
|
|
216,517 |
|
|
Units outstanding |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Total common shares and units outstanding |
|
|
220,417 |
|
|
220,073 |
|
|
216,509 |
|
|
216,576 |
|
|
216,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value of common equity |
|
$ |
3,378,999 |
|
$ |
3,356,115 |
|
$ |
2,769,151 |
|
$ |
2,614,067 |
|
$ |
3,031,238 |
|
|
Liquidation value of preferred equity - Series D (1) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
115,000 |
|
|
Liquidation value of preferred equity - Series E |
|
|
115,000 |
|
|
115,000 |
|
|
115,000 |
|
|
115,000 |
|
|
115,000 |
|
|
Liquidation value of preferred equity - Series F |
|
|
75,000 |
|
|
75,000 |
|
|
75,000 |
|
|
75,000 |
|
|
— |
|
|
Consolidated debt (2) (3) |
|
|
997,346 |
|
|
999,944 |
|
|
1,004,975 |
|
|
1,008,034 |
|
|
1,083,922 |
|
|
Consolidated total capitalization |
|
|
4,566,345 |
|
|
4,546,059 |
|
|
3,964,126 |
|
|
3,812,101 |
|
|
4,345,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interest in consolidated debt (3) |
|
|
(55,386) |
|
|
(55,585) |
|
|
(55,781) |
|
|
(55,974) |
|
|
(56,164) |
|
|
Pro rata total capitalization |
|
$ |
4,510,959 |
|
$ |
4,490,474 |
|
$ |
3,908,345 |
|
$ |
3,756,127 |
|
$ |
4,288,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated debt to total capitalization |
|
|
21.8 |
% |
|
22.0 |
% |
|
25.4 |
% |
|
26.4 |
% |
|
24.9 |
% |
|
Pro rata debt to pro rata total capitalization |
|
|
20.9 |
% |
|
21.0 |
% |
|
24.3 |
% |
|
25.3 |
% |
|
24.0 |
% |
|
Consolidated debt and preferred equity to total capitalization |
|
|
26.0 |
% |
|
26.2 |
% |
|
30.1 |
% |
|
31.4 |
% |
|
30.2 |
% |
|
Pro rata debt and preferred equity to total capitalization |
|
|
25.1 |
% |
|
25.3 |
% |
|
29.1 |
% |
|
30.4 |
% |
|
29.3 |
% |
|
(1) |
In April 2016, the Company redeemed all 4,600,000 shares of its Series D preferred stock at a price equal to the liquidation value of $115.0 million. |
|
(2) |
Fourth quarter 2016 includes the effects of the Company's $240.0 million private placement of two series of senior unsecured corporate-level notes funded on January 10, 2017, as well as the partial use of these funds, on January 11, 2017 to repay the $176.0 million loan secured by the Marriott Boston Long Wharf. |
|
(3) |
Represents the outstanding debt principal balance and excludes the effects of Accounting Standards Update No. 2015-03 to present debt issuance costs as a deduction from the corresponding debt liability. |
|
CAPITALIZATION |
|
|
Page 24 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Consolidated Debt Summary Schedule
|
(In thousands) |
|
|
|
Interest Rate / |
|
Maturity |
|
|
March 31, 2017 |
|
|
Balance At |
|
Debt |
|
Collateral |
|
Spread |
|
Date |
|
|
Balance |
|
|
Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Rate Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured Mortgage Debt |
|
Hilton Times Square |
|
4.97% |
|
11/01/2020 |
|
$ |
82,860 |
|
$ |
76,145 |
|
Secured Mortgage Debt |
|
Renaissance Washington DC |
|
5.95% |
|
05/01/2021 |
|
|
118,802 |
|
|
106,855 |
|
Term Loan Facility |
|
Unsecured |
|
3.39% |
|
09/03/2022 |
|
|
85,000 |
|
|
85,000 |
|
Term Loan Facility |
|
Unsecured |
|
3.65% |
|
01/31/2023 |
|
|
100,000 |
|
|
100,000 |
|
Secured Mortgage Debt |
|
JW Marriott New Orleans |
|
4.15% |
|
12/11/2024 |
|
|
86,552 |
|
|
72,071 |
|
Secured Mortgage Debt |
|
Embassy Suites La Jolla |
|
4.12% |
|
01/06/2025 |
|
|
62,588 |
|
|
51,987 |
|
Series A Senior Notes |
|
Unsecured |
|
4.69% |
|
01/10/2026 |
|
|
120,000 |
|
|
120,000 |
|
Series B Senior Notes |
|
Unsecured |
|
4.79% |
|
01/10/2028 |
|
|
120,000 |
|
|
120,000 |
|
Total Fixed Rate Debt |
|
|
|
|
|
|
|
|
775,802 |
|
|
732,058 |
|
Secured Mortgage Debt |
|
Hilton San Diego Bayfront |
|
L + 2.25% |
|
08/08/2019 |
|
|
221,544 |
|
|
213,513 |
|
Credit Facility |
|
Unsecured |
|
L + 1.55% - 2.30% |
|
04/02/2019 |
|
|
— |
|
|
— |
|
Total Variable Rate Debt |
|
|
|
|
|
|
|
|
221,544 |
|
|
213,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CONSOLIDATED DEBT |
|
|
|
|
|
|
|
$ |
997,346 |
|
$ |
945,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
Series E cumulative redeemable preferred |
|
|
|
6.95% |
|
perpetual |
|
$ |
115,000 |
|
|
|
|
Series F cumulative redeemable preferred |
|
|
|
6.45% |
|
perpetual |
|
|
75,000 |
|
|
|
|
Total Preferred Stock |
|
|
|
|
|
|
|
$ |
190,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
% Fixed Rate Debt |
|
|
|
|
|
|
|
|
77.8 |
% |
|
|
|
% Floating Rate Debt |
|
|
|
|
|
|
|
|
22.2 |
% |
|
|
|
Average Interest Rate (1) |
|
|
|
|
|
|
|
|
4.21 |
% |
|
|
|
Weighted Average Maturity of Debt |
|
|
|
|
|
|
|
|
5.9 years |
|
|
|
|
(1) |
Average Interest Rate on the variable-rate debt obligation is calculated based on the variable rate at March 31, 2017, and includes the effect of the Company's interest rate derivative agreement. |
|
CAPITALIZATION |
|
|
Page 25 |
|||||||
|
|
|
|
|
|
|
|
|
|
||
|
|
Supplemental Financial Information |
Consolidated Amortization and Debt Maturity Schedule
|
(1) |
Percent of Current Total Capitalization is calculated by dividing the sum of scheduled principal amortization and maturity payments by the March 31, 2017 consolidated total capitalization as presented on page 24. |
|
CAPITALIZATION |
|
|
Page 26 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Hotel Information as of March 31, 2017
|
Hotel |
|
Location |
|
Brand |
|
Number of |
|
% of Total |
|
Ownership |
|
Interest |
|
Leasehold |
|
Year Acquired |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| 1 |
|
Hilton San Diego Bayfront |
|
California |
|
Hilton |
|
1,190 |
|
9.00% |
|
75% |
|
Leasehold |
|
2071 |
|
2011 |
||
| 2 |
|
Boston Park Plaza |
|
Massachusetts |
|
Independent |
|
1,060 |
|
8.02% |
|
100% |
|
Fee Simple |
|
|
|
2013 |
||
| 3 |
|
Renaissance Washington DC |
|
Washington DC |
|
Marriott |
|
807 |
|
6.10% |
|
100% |
|
Fee Simple |
|
|
|
2005 |
||
| 4 |
|
Hyatt Regency San Francisco |
|
California |
|
Hyatt |
|
804 |
|
6.08% |
|
100% |
|
Fee Simple |
|
|
|
2013 |
||
| 5 |
|
Renaissance Orlando at SeaWorld® (2) |
|
Florida |
|
Marriott |
|
781 |
|
5.91% |
|
85% |
|
Fee Simple |
|
|
|
2005 |
||
| 6 |
|
Renaissance Harborplace |
|
Maryland |
|
Marriott |
|
622 |
|
4.70% |
|
100% |
|
Fee Simple |
|
|
|
2005 |
||
| 7 |
|
Wailea Beach Resort |
|
Hawaii |
|
Marriott |
|
546 |
|
4.13% |
|
100% |
|
Fee Simple |
|
|
|
2014 |
||
| 8 |
|
Renaissance Los Angeles Airport |
|
California |
|
Marriott |
|
501 |
|
3.79% |
|
100% |
|
Fee Simple |
|
|
|
2007 |
||
| 9 |
|
JW Marriott New Orleans (3) |
|
Louisiana |
|
Marriott |
|
501 |
|
3.79% |
|
100% |
|
Leasehold |
|
2081 |
|
2011 |
||
| 10 |
|
Hilton North Houston |
|
Texas |
|
Hilton |
|
480 |
|
3.63% |
|
100% |
|
Fee Simple |
|
|
|
2002 |
||
| 11 |
|
Hilton Times Square |
|
New York |
|
Hilton |
|
478 |
|
3.61% |
|
100% |
|
Leasehold |
|
2091 |
|
2006 |
||
| 12 |
|
Marriott Quincy |
|
Massachusetts |
|
Marriott |
|
464 |
|
3.51% |
|
100% |
|
Fee Simple |
|
|
|
2007 |
||
| 13 |
|
Hyatt Centric Magnificent Mile |
|
Illinois |
|
Hyatt |
|
419 |
|
3.17% |
|
100% |
|
Leasehold |
|
2097 |
|
2012 |
||
| 14 |
|
Marriott Boston Long Wharf |
|
Massachusetts |
|
Marriott |
|
412 |
|
3.12% |
|
100% |
|
Fee Simple |
|
|
|
2007 |
||
| 15 |
|
Hyatt Regency Newport Beach |
|
California |
|
Hyatt |
|
407 |
|
3.08% |
|
100% |
|
Leasehold |
|
2048 |
|
2002 |
||
| 16 |
|
Marriott Tysons Corner |
|
Virginia |
|
Marriott |
|
396 |
|
2.99% |
|
100% |
|
Fee Simple |
|
|
|
2002 |
||
| 17 |
|
Marriott Houston |
|
Texas |
|
Marriott |
|
390 |
|
2.95% |
|
100% |
|
Fee Simple |
|
|
|
2002 |
||
| 18 |
|
Renaissance Long Beach |
|
California |
|
Marriott |
|
374 |
|
2.83% |
|
100% |
|
Fee Simple |
|
|
|
2005 |
||
| 19 |
|
Embassy Suites Chicago |
|
Illinois |
|
Hilton |
|
368 |
|
2.78% |
|
100% |
|
Fee Simple |
|
|
|
2002 |
||
| 20 |
|
Hilton Garden Inn Chicago Downtown/Magnificent Mile |
|
|
Illinois |
|
Hilton |
|
361 |
|
2.73% |
|
100% |
|
Fee Simple |
|
|
|
2012 |
|
| 21 |
|
Renaissance Westchester |
|
|
New York |
|
Marriott |
|
348 |
|
2.63% |
|
100% |
|
Fee Simple |
|
|
|
2010 |
|
| 22 |
|
Embassy Suites La Jolla |
|
California |
|
Hilton |
|
340 |
|
2.57% |
|
100% |
|
Fee Simple |
|
|
|
2006 |
||
| 23 |
|
Marriott Philadelphia |
|
Pennsylvania |
|
Marriott |
|
289 |
|
2.19% |
|
100% |
|
Fee Simple |
|
|
|
2002 |
||
| 24 |
|
Hilton New Orleans St. Charles |
|
Louisiana |
|
Hilton |
|
252 |
|
1.91% |
|
100% |
|
Fee Simple |
|
|
|
2013 |
||
| 25 |
|
Marriott Portland |
|
|
Oregon |
|
Marriott |
|
249 |
|
1.88% |
|
100% |
|
Fee Simple |
|
|
|
2000 |
|
| 26 |
|
Marriott Park City |
|
|
Utah |
|
Marriott |
|
199 |
|
1.50% |
|
100% |
|
Fee Simple |
|
|
|
1999 |
|
| 27 |
|
Courtyard by Marriott Los Angeles |
|
California |
|
Marriott |
|
187 |
|
1.41% |
|
100% |
|
Leasehold |
|
2096 |
|
1999 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Total portfolio |
|
|
|
|
|
13,225 |
|
100% |
|
|
|
|
|
|
|
|
||
|
(1) |
Assumes the full exercise of all lease extensions. |
|
(2) |
Financial statements reflect a 100% economic interest in the Renaissance Orlando at SeaWorld®, of which the Company owns 85% of a joint venture that owns the leasehold interest in the hotel. Pursuant to certain partnership loans, the Company recognizes, and expects to continue to recognize, 100% of all economics from the property for the foreseeable future. In addition, the Company owns 100% of the fee interest in a wholly owned entity held outside the partnership. |
|
(3) |
Hotel is subject to a ground lease that expires in 2081. In addition, it is also subject to a municipal air rights lease that matures in 2044 that applies only to certain balcony space and is not integral to the hotel operation. |
|
PROPERTY-LEVEL DATA |
|
|
Page 28 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
PROPERTY-LEVEL OPERATING STATISTICS
|
PROPERTY-LEVEL OPERATING STATISTICS |
|
|
Page 29 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Property-Level Operating Statistics
|
|
|
Hotels sorted by number of rooms |
|
ADR |
|
Occupancy |
|
RevPAR |
|||||||||||||||||
|
|
|
|
|
For the Three Months Ended March 31, |
|
For the Three Months Ended March 31, |
|
For the Three Months Ended March 31, |
|||||||||||||||||
|
|
|
|
|
2017 |
|
2016 |
|
Variance |
|
2017 |
|
2016 |
|
Variance |
|
2017 |
|
2016 |
|
Variance |
|||||
| 1 |
|
Hilton San Diego Bayfront |
|
|
$ |
248.23 |
|
$ |
231.36 |
|
7.3% |
|
82.2% |
|
86.7% |
|
-5.2% |
|
$ |
204.05 |
|
$ |
200.59 |
|
1.7% |
| 2 |
|
Boston Park Plaza (1) |
|
|
$ |
161.50 |
|
$ |
143.11 |
|
12.9% |
|
62.7% |
|
56.0% |
|
12.0% |
|
$ |
101.26 |
|
$ |
80.14 |
|
26.4% |
| 3 |
|
Renaissance Washington DC |
|
|
$ |
255.14 |
|
$ |
221.79 |
|
15.0% |
|
81.3% |
|
75.8% |
|
7.3% |
|
$ |
207.43 |
|
$ |
168.12 |
|
23.4% |
| 4 |
|
Hyatt Regency San Francisco |
|
|
$ |
322.01 |
|
$ |
317.78 |
|
1.3% |
|
85.9% |
|
87.0% |
|
-1.3% |
|
$ |
276.61 |
|
$ |
276.47 |
|
0.0% |
| 5 |
|
Renaissance Orlando at SeaWorld ® |
|
|
$ |
197.24 |
|
$ |
186.38 |
|
5.8% |
|
80.7% |
|
80.0% |
|
0.9% |
|
$ |
159.17 |
|
$ |
149.10 |
|
6.8% |
| 6 |
|
Renaissance Harborplace |
|
|
$ |
155.89 |
|
$ |
147.89 |
|
5.4% |
|
73.0% |
|
67.0% |
|
9.0% |
|
$ |
113.80 |
|
$ |
99.09 |
|
14.8% |
| 7 |
|
Wailea Beach Resort |
|
|
$ |
369.64 |
|
$ |
294.90 |
|
25.3% |
|
86.8% |
|
91.9% |
|
-5.5% |
|
$ |
320.85 |
|
$ |
271.01 |
|
18.4% |
| 8 |
|
Renaissance Los Angeles Airport |
|
|
$ |
161.51 |
|
$ |
157.03 |
|
2.9% |
|
89.7% |
|
90.4% |
|
-0.8% |
|
$ |
144.87 |
|
$ |
141.96 |
|
2.1% |
| 9 |
|
JW Marriott New Orleans |
|
|
$ |
217.29 |
|
$ |
208.81 |
|
4.1% |
|
85.4% |
|
82.6% |
|
3.4% |
|
$ |
185.57 |
|
$ |
172.48 |
|
7.6% |
| 10 |
|
Hilton North Houston |
|
|
$ |
112.45 |
|
$ |
110.99 |
|
1.3% |
|
67.8% |
|
81.6% |
|
-16.9% |
|
$ |
76.24 |
|
$ |
90.57 |
|
-15.8% |
| 11 |
|
Hilton Times Square |
|
|
$ |
209.60 |
|
$ |
218.99 |
|
-4.3% |
|
99.2% |
|
98.7% |
|
0.5% |
|
$ |
207.92 |
|
$ |
216.14 |
|
-3.8% |
| 12 |
|
Marriott Quincy |
|
|
$ |
151.08 |
|
$ |
148.04 |
|
2.1% |
|
60.9% |
|
66.9% |
|
-9.0% |
|
$ |
92.01 |
|
$ |
99.04 |
|
-7.1% |
| 13 |
|
Hyatt Centric Magnificent Mile |
|
|
$ |
133.50 |
|
$ |
133.75 |
|
-0.2% |
|
61.9% |
|
60.5% |
|
2.3% |
|
$ |
82.64 |
|
$ |
80.92 |
|
2.1% |
| 14 |
|
Marriott Boston Long Wharf |
|
|
$ |
235.92 |
|
$ |
246.04 |
|
-4.1% |
|
80.7% |
|
77.3% |
|
4.4% |
|
$ |
190.39 |
|
$ |
190.19 |
|
0.1% |
| 15 |
|
Hyatt Regency Newport Beach |
|
|
$ |
172.00 |
|
$ |
168.61 |
|
2.0% |
|
81.1% |
|
79.5% |
|
2.0% |
|
$ |
139.49 |
|
$ |
134.04 |
|
4.1% |
| 16 |
|
Marriott Tysons Corner |
|
|
$ |
161.80 |
|
$ |
145.51 |
|
11.2% |
|
72.7% |
|
71.3% |
|
2.0% |
|
$ |
117.63 |
|
$ |
103.75 |
|
13.4% |
| 17 |
|
Marriott Houston |
|
|
$ |
104.34 |
|
$ |
109.68 |
|
-4.9% |
|
76.8% |
|
84.5% |
|
-9.1% |
|
$ |
80.13 |
|
$ |
92.68 |
|
-13.5% |
| 18 |
|
Renaissance Long Beach |
|
|
$ |
192.44 |
|
$ |
185.67 |
|
3.6% |
|
82.0% |
|
77.9% |
|
5.3% |
|
$ |
157.80 |
|
$ |
144.64 |
|
9.1% |
| 19 |
|
Embassy Suites Chicago |
|
|
$ |
134.33 |
|
$ |
138.10 |
|
-2.7% |
|
76.9% |
|
77.6% |
|
-0.9% |
|
$ |
103.30 |
|
$ |
107.17 |
|
-3.6% |
| 20 |
|
Hilton Garden Inn Chicago Downtown/Magnificent Mile |
|
|
$ |
115.73 |
|
$ |
121.12 |
|
-4.5% |
|
66.1% |
|
60.7% |
|
8.9% |
|
$ |
76.50 |
|
$ |
73.52 |
|
4.1% |
| 21 |
|
Renaissance Westchester |
|
|
$ |
148.18 |
|
$ |
138.66 |
|
6.9% |
|
61.7% |
|
69.3% |
|
-11.0% |
|
$ |
91.43 |
|
$ |
96.09 |
|
-4.9% |
| 22 |
|
Embassy Suites La Jolla |
|
|
$ |
191.84 |
|
$ |
183.71 |
|
4.4% |
|
79.8% |
|
81.7% |
|
-2.3% |
|
$ |
153.09 |
|
$ |
150.09 |
|
2.0% |
| 23 |
|
Marriott Philadelphia |
|
|
$ |
160.29 |
|
$ |
159.19 |
|
0.7% |
|
66.8% |
|
59.3% |
|
12.6% |
|
$ |
107.07 |
|
$ |
94.40 |
|
13.4% |
| 24 |
|
Hilton New Orleans St. Charles |
|
|
$ |
186.27 |
|
$ |
184.52 |
|
0.9% |
|
87.1% |
|
86.9% |
|
0.2% |
|
$ |
162.24 |
|
$ |
160.35 |
|
1.2% |
| 25 |
|
Marriott Portland |
|
|
$ |
173.90 |
|
$ |
171.29 |
|
1.5% |
|
80.1% |
|
83.7% |
|
-4.3% |
|
$ |
139.29 |
|
$ |
143.37 |
|
-2.8% |
| 26 |
|
Marriott Park City |
|
|
$ |
272.52 |
|
$ |
239.81 |
|
13.6% |
|
81.1% |
|
83.0% |
|
-2.3% |
|
$ |
221.01 |
|
$ |
199.04 |
|
11.0% |
| 27 |
|
Courtyard by Marriott Los Angeles |
|
|
$ |
175.22 |
|
$ |
176.64 |
|
-0.8% |
|
95.3% |
|
98.1% |
|
-2.9% |
|
$ |
166.98 |
|
$ |
173.28 |
|
-3.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 Hotel Portfolio (2) |
|
$ |
203.48 |
|
$ |
192.54 |
|
5.7% |
|
77.7% |
|
77.8% |
|
-0.1% |
|
$ |
158.10 |
|
$ |
149.80 |
|
5.5% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Operating statistics for the first quarter of 2016 are impacted by a major repositioning at the Boston Park Plaza. |
|
(2) |
27 Hotel Portfolio includes all 27 hotels owned by the Company as of March 31, 2017. |
|
PROPERTY-LEVEL OPERATING STATISTICS |
|
|
Page 30 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
OPERATING STATISTICS BY BRAND & GEOGRAPHY
|
OPERATING STATISTICS BY BRAND & GEOGRAPHY |
|
|
Page 31 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Operating Statistics by Brand
Q1 2017/2016
|
|
|
|
|
For the Three Months Ended March 31, |
|
||||||||||||||||
|
|
|
|
|
2017 |
|
2016 |
|
|
|
||||||||||||
|
|
|
# of Hotels |
|
Occ |
|
ADR |
|
RevPAR |
|
Occ |
|
ADR |
|
RevPAR |
|
RevPAR Change |
|
||||
|
Marriott |
|
16 |
|
78.5% |
|
$ |
204.39 |
|
$ |
160.45 |
|
78.2% |
|
$ |
188.84 |
|
$ |
147.67 |
|
8.6% |
|
|
Hilton |
|
7 |
|
80.4% |
|
$ |
192.58 |
|
$ |
154.83 |
|
83.4% |
|
$ |
187.23 |
|
$ |
156.15 |
|
-0.8% |
|
|
Hyatt |
|
3 |
|
78.5% |
|
$ |
245.13 |
|
$ |
192.43 |
|
78.3% |
|
$ |
243.45 |
|
$ |
190.62 |
|
0.9% |
|
|
Other (1) |
|
1 |
|
62.7% |
|
$ |
161.50 |
|
$ |
101.26 |
|
56.0% |
|
$ |
143.11 |
|
$ |
80.14 |
|
26.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 Hotel Portfolio (2) |
|
27 |
|
77.7% |
|
$ |
203.48 |
|
$ |
158.10 |
|
77.8% |
|
$ |
192.54 |
|
$ |
149.80 |
|
5.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Other includes the Boston Park Plaza. Other excludes the Fairmont Newport Beach sold in February 2017, and the Sheraton Cerritos sold in May 2016. |
|
(2) |
27 Hotel Portfolio includes all 27 hotels owned by the Company as of March 31, 2017. |
|
OPERATING STATISTICS BY BRAND & GEOGRAPHY |
|
|
Page 32 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
27 Hotel Portfolio Property-Level Trailing 12 Month Adjusted EBITDA Contribution by Brand
|
OPERATING STATISTICS BY BRAND & GEOGRAPHY |
|
|
Page 33 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Operating Statistics by Region
Q1 2017/2016
|
|
|
|
|
For the Three Months Ended March 31, |
|
||||||||||||||||
|
|
|
|
|
2017 |
|
2016 |
|
|
|
||||||||||||
|
|
|
# of Hotels |
|
Occ |
|
|
ADR |
|
|
RevPAR |
|
Occ |
|
|
ADR |
|
|
RevPAR |
|
RevPAR Change |
|
|
California (1) |
|
7 |
|
84.2% |
|
$ |
229.94 |
|
$ |
193.61 |
|
85.7% |
|
$ |
222.13 |
|
$ |
190.37 |
|
1.7% |
|
|
Other West |
|
5 |
|
78.3% |
|
$ |
220.36 |
|
$ |
172.54 |
|
85.7% |
|
$ |
189.54 |
|
$ |
162.44 |
|
6.2% |
|
|
Midwest |
|
3 |
|
68.0% |
|
$ |
128.37 |
|
$ |
87.29 |
|
66.0% |
|
$ |
131.74 |
|
$ |
86.95 |
|
0.4% |
|
|
East |
|
12 |
|
75.5% |
|
$ |
192.99 |
|
$ |
145.71 |
|
72.9% |
|
$ |
182.75 |
|
$ |
133.22 |
|
9.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 Hotel Portfolio (2) |
|
27 |
|
77.7% |
|
$ |
203.48 |
|
$ |
158.10 |
|
77.8% |
|
$ |
192.54 |
|
$ |
149.80 |
|
5.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
California excludes the Fairmont Newport Beach sold in February 2017, and the Sheraton Cerritos sold in May 2016. |
|
(2) |
27 Hotel Portfolio includes all 27 hotels owned by the Company as of March 31, 2017. |
|
OPERATING STATISTICS BY BRAND & GEOGRAPHY |
|
|
Page 34 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS
|
PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS |
|
|
Page 35 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Property-Level Adjusted EBITDA
Q1 2017/2016
|
|
|
Hotels sorted by number of rooms |
|
|
For the Three Months Ended March 31, |
|||||
|
|
|
(In thousands) |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
Hotel Adjusted EBITDA (2) |
|
|
Hotel Adjusted EBITDA (2) |
% Change |
|
|
1 |
|
Hilton San Diego Bayfront (1) |
|
$ |
13,049 |
|
$ |
12,176 |
7% | |
|
2 |
|
Boston Park Plaza (3) |
|
|
(106) |
|
|
(1,692) |
94% | |
|
3 |
|
Renaissance Washington DC |
|
|
7,356 |
|
|
5,164 |
42% | |
|
4 |
|
Hyatt Regency San Francisco |
|
|
7,775 |
|
|
7,617 |
2% | |
|
5 |
|
Renaissance Orlando at SeaWorld ® (1) |
|
|
8,850 |
|
|
8,149 |
9% | |
|
6 |
|
Renaissance Harborplace |
|
|
2,315 |
|
|
1,235 |
87% | |
|
7 |
|
Wailea Beach Resort |
|
|
8,655 |
|
|
6,426 |
35% | |
|
8 |
|
Renaissance Los Angeles Airport |
|
|
2,110 |
|
|
2,501 |
-16% |
|
|
9 |
|
JW Marriott New Orleans |
|
|
4,996 |
|
|
3,895 |
28% | |
|
10 |
|
Hilton North Houston |
|
|
945 |
|
|
1,520 |
-38% |
|
|
11 |
|
Hilton Times Square |
|
|
186 |
|
|
267 |
-30% |
|
|
12 |
|
Marriott Quincy |
|
|
571 |
|
|
1,295 |
-56% |
|
|
13 |
|
Hyatt Centric Magnificent Mile |
|
|
(949) |
|
|
(1,464) |
35% | |
|
14 |
|
Marriott Boston Long Wharf |
|
|
2,561 |
|
|
2,676 |
-4% |
|
|
15 |
|
Hyatt Regency Newport Beach |
|
|
2,400 |
|
|
2,275 |
5% | |
|
16 |
|
Marriott Tysons Corner |
|
|
1,717 |
|
|
1,368 |
26% | |
|
17 |
|
Marriott Houston |
|
|
841 |
|
|
1,140 |
-26% |
|
|
18 |
|
Renaissance Long Beach |
|
|
2,400 |
|
|
2,186 |
10% | |
|
19 |
|
Embassy Suites Chicago (3) |
|
|
762 |
|
|
824 |
-8% |
|
|
20 |
|
Hilton Garden Inn Chicago Downtown/Magnificent Mile (3) |
|
|
(32) |
|
|
(187) |
83% | |
|
21 |
|
Renaissance Westchester |
|
|
(17) |
|
|
68 |
-125% |
|
|
22 |
|
Embassy Suites La Jolla |
|
|
2,255 |
|
|
2,232 |
1% | |
|
23 |
|
Marriott Philadelphia |
|
|
839 |
|
|
540 |
55% | |
|
24 |
|
Hilton New Orleans St. Charles |
|
|
1,808 |
|
|
1,638 |
10% | |
|
25 |
|
Marriott Portland |
|
|
1,456 |
|
|
1,719 |
-15% |
|
|
26 |
|
Marriott Park City |
|
|
2,470 |
|
|
1,996 |
24% | |
|
27 |
|
Courtyard by Marriott Los Angeles |
|
|
1,183 |
|
|
1,273 |
-7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 Hotel Portfolio (4) |
|
|
76,396 |
|
|
66,837 |
14% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Sold Hotels (5) |
|
|
|
|
|
|
|
|
|
|
|
Sheraton Cerritos |
|
|
— |
|
|
960 |
-100% |
|
|
|
|
Fairmont Newport Beach (3) |
|
|
1,019 |
|
|
1,815 |
-44% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual Portfolio (6) |
|
$ |
77,415 |
|
$ |
69,612 |
11% | |
|
|
|
|
|
|
|
|
|
|
|
|
*Footnotes on page 37
|
PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS |
|
|
Page 36 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Property-Level Adjusted EBITDA
Q1 2017/2016 Footnotes
|
(1) |
Reflects 100% of the operating results for the Hilton San Diego Bayfront and Renaissance Orlando at SeaWorld®. |
|
(2) |
Reconciliations to Net Income (Loss) provided on pages 40 and 41. |
|
(3) |
Hotel Adjusted EBITDA for the first quarter of 2016 is impacted by a major repositioning at the Boston Park Plaza, as well as by a total of $0.1 million in non-current year property tax credits, net of appeal fees, received at the following hotels: Embassy Suites Chicago $0.1 million; Hilton Garden Inn Chicago Downtown/Magnificent Mile $15,000; and Fairmont Newport Beach $27,000. |
|
(4) |
27 Hotel Portfolio includes all 27 hotels owned by the Company as of March 31, 2017. |
|
(5) |
Sold Hotels for both the three months ended March 31, 2017 and 2016 include the results generated by the Fairmont Newport Beach, sold in February 2017. Sold Hotels for the three months ended March 31, 2016 also include the results generated by the Sheraton Cerritos, sold in May 2016. |
|
(6) |
Actual Portfolio for the three months ended March 31, 2017 includes all 27 hotels owned by the Company as of March 31, 2017, as well as results from the Fairmont Newport Beach before its sale in February 2017. Actual Portfolio for the three months ended March 31, 2016 includes all 29 hotels owned by the Company as of March 31, 2016. |
|
PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS |
|
|
Page 37 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Property-Level Adjusted EBITDA Margins
Q1 2017/2016
|
|
|
Hotels sorted by number of rooms |
|
|
For the Three Months Ended March 31, |
||||
|
|
|
|
|
|
2017 |
|
|
2016 |
Change in |
|
|
|
|
|
|
Hotel Adjusted EBITDA Margin |
|
|
Hotel Adjusted EBITDA Margin |
bps |
|
1 |
|
Hilton San Diego Bayfront (1) |
|
|
34.5% |
|
|
33.4% |
110 bps |
|
2 |
|
Boston Park Plaza (2) |
|
|
-0.8% |
|
|
-14.8% |
1,400 bps |
|
3 |
|
Renaissance Washington DC |
|
|
32.7% |
|
|
26.0% |
670 bps |
|
4 |
|
Hyatt Regency San Francisco |
|
|
27.4% |
|
|
28.1% |
(70) bps |
|
5 |
|
Renaissance Orlando at SeaWorld ® (1) |
|
|
38.4% |
|
|
37.1% |
130 bps |
|
6 |
|
Renaissance Harborplace |
|
|
22.0% |
|
|
14.0% |
800 bps |
|
7 |
|
Wailea Beach Resort |
|
|
38.1% |
|
|
34.3% |
380 bps |
|
8 |
|
Renaissance Los Angeles Airport |
|
|
26.2% |
|
|
28.7% |
(250) bps |
|
9 |
|
JW Marriott New Orleans |
|
|
44.2% |
|
|
37.2% |
700 bps |
|
10 |
|
Hilton North Houston |
|
|
18.5% |
|
|
24.5% |
(600) bps |
|
11 |
|
Hilton Times Square |
|
|
1.9% |
|
|
2.7% |
(80) bps |
|
12 |
|
Marriott Quincy |
|
|
10.4% |
|
|
20.7% |
(1,030) bps |
|
13 |
|
Hyatt Centric Magnificent Mile |
|
|
-20.1% |
|
|
-33.1% |
1,300 bps |
|
14 |
|
Marriott Boston Long Wharf |
|
|
23.9% |
|
|
25.4% |
(150) bps |
|
15 |
|
Hyatt Regency Newport Beach |
|
|
25.8% |
|
|
25.3% |
50 bps |
|
16 |
|
Marriott Tysons Corner |
|
|
31.5% |
|
|
27.9% |
360 bps |
|
17 |
|
Marriott Houston |
|
|
22.9% |
|
|
27.1% |
(420) bps |
|
18 |
|
Renaissance Long Beach |
|
|
32.7% |
|
|
31.2% |
150 bps |
|
19 |
|
Embassy Suites Chicago (2) |
|
|
17.9% |
|
|
18.9% |
(100) bps |
|
20 |
|
Hilton Garden Inn Chicago Downtown/Magnificent Mile (2) |
|
|
-1.1% |
|
|
-6.6% |
550 bps |
|
21 |
|
Renaissance Westchester |
|
|
-0.4% |
|
|
1.5% |
(190) bps |
|
22 |
|
Embassy Suites La Jolla |
|
|
41.0% |
|
|
40.8% |
20 bps |
|
23 |
|
Marriott Philadelphia |
|
|
20.4% |
|
|
14.7% |
570 bps |
|
24 |
|
Hilton New Orleans St. Charles |
|
|
44.1% |
|
|
39.6% |
450 bps |
|
25 |
|
Marriott Portland |
|
|
39.0% |
|
|
43.7% |
(470) bps |
|
26 |
|
Marriott Park City |
|
|
47.5% |
|
|
44.1% |
340 bps |
|
27 |
|
Courtyard by Marriott Los Angeles |
|
|
35.8% |
|
|
36.9% |
(110) bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 Hotel Portfolio (3) |
|
|
27.6% |
|
|
25.4% |
220 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 Hotel Portfolio, excluding prior year property tax adjustments, net (4) |
|
|
27.6% |
|
|
25.4% |
220 bps |
|
|
|
|
|
|
|
|
|
|
|
*Footnotes on page 39
|
PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS |
|
|
Page 38 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Property-Level Adjusted EBITDA Margins
Q1 2017/2016 Footnotes
|
(1) |
Reflects 100% of the operating results for the Hilton San Diego Bayfront and Renaissance Orlando at SeaWorld®. |
|
(2) |
Hotel Adjusted EBITDA for the first quarter of 2016 is impacted by a major repositioning at the Boston Park Plaza, as well as by a total of $0.1 million in non-current year property tax credits, net of appeal fees, received at the following hotels: Embassy Suites Chicago $0.1 million; and Hilton Garden Inn Chicago Downtown/Magnificent Mile $15,000. |
|
(3) |
27 Hotel Portfolio includes all 27 hotels owned by the Company as of March 31, 2017. |
|
(4) |
27 Hotel Portfolio, excluding prior year property tax adjustments, net represents the 27 Hotel Portfolio adjusted to exclude the prior year property tax related items noted in Footnote 2. |
|
PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS |
|
|
Page 39 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Property-Level Adjusted EBITDA Reconciliation Q1 2017
|
|
|
Hotels sorted by number of rooms |
|
|
For the Three Months Ended March 31, 2017 |
|
||||||||||||||||||||||||||||||||||
|
|
|
(In thousands) |
|
|
|
|
|
Plus: |
|
Plus: |
|
Plus: |
|
Equals: |
|
Hotel |
|
|||||||||||||||||||||||
|
|
|
|
|
Total |
|
Net Income / |
|
Other |
|
|
|
|
|
Hotel |
|
Adjusted EBITDA |
|
|||||||||||||||||||||||
|
|
|
|
|
Revenues |
|
(Loss) |
|
Adjustments (2) |
|
Depreciation |
|
Interest Expense |
|
Adjusted EBITDA |
|
Margins |
|
|||||||||||||||||||||||
|
1 |
|
Hilton San Diego Bayfront (1) |
|
$ |
37,815 |
|
$ |
8,010 |
|
$ |
(290) |
|
$ |
3,499 |
|
$ |
1,830 |
|
$ |
13,049 |
|
34.5% |
|
|||||||||||||||||
|
2 |
|
Boston Park Plaza |
|
|
14,040 |
|
|
(5,216) |
|
|
— |
|
|
5,110 |
|
|
— |
|
|
(106) |
|
-0.8% |
|
|||||||||||||||||
|
3 |
|
Renaissance Washington DC |
|
|
22,467 |
|
|
3,071 |
|
|
— |
|
|
2,491 |
|
|
1,794 |
|
|
7,356 |
|
32.7% |
|
|||||||||||||||||
|
4 |
|
Hyatt Regency San Francisco |
|
|
28,426 |
|
|
4,753 |
|
|
— |
|
|
3,022 |
|
|
— |
|
|
7,775 |
|
27.4% |
|
|||||||||||||||||
|
5 |
|
Renaissance Orlando at SeaWorld ® (1) |
|
|
23,039 |
|
|
6,630 |
|
|
— |
|
|
2,220 |
|
|
— |
|
|
8,850 |
|
38.4% |
|
|||||||||||||||||
|
6 |
|
Renaissance Harborplace |
|
|
10,531 |
|
|
784 |
|
|
— |
|
|
1,531 |
|
|
— |
|
|
2,315 |
|
22.0% |
|
|||||||||||||||||
|
7 |
|
Wailea Beach Resort |
|
|
22,720 |
|
|
4,629 |
|
|
— |
|
|
4,026 |
|
|
— |
|
|
8,655 |
|
38.1% |
|
|||||||||||||||||
|
8 |
|
Renaissance Los Angeles Airport |
|
|
8,050 |
|
|
1,421 |
|
|
— |
|
|
689 |
|
|
— |
|
|
2,110 |
|
26.2% |
|
|||||||||||||||||
|
9 |
|
JW Marriott New Orleans |
|
|
11,312 |
|
|
2,920 |
|
|
1 |
|
|
1,161 |
|
|
914 |
|
|
4,996 |
|
44.2% |
|
|||||||||||||||||
|
10 |
|
Hilton North Houston |
|
|
5,119 |
|
|
127 |
|
|
— |
|
|
818 |
|
|
— |
|
|
945 |
|
18.5% |
|
|||||||||||||||||
|
11 |
|
Hilton Times Square |
|
|
9,680 |
|
|
(3,653) |
|
|
77 |
|
|
2,561 |
|
|
1,201 |
|
|
186 |
|
1.9% |
|
|||||||||||||||||
|
12 |
|
Marriott Quincy |
|
|
5,487 |
|
|
(556) |
|
|
— |
|
|
1,127 |
|
|
— |
|
|
571 |
|
10.4% |
|
|||||||||||||||||
|
13 |
|
Hyatt Centric Magnificent Mile |
|
|
4,711 |
|
|
(2,386) |
|
|
— |
|
|
1,437 |
|
|
— |
|
|
(949) |
|
-20.1% |
|
|||||||||||||||||
|
14 |
|
Marriott Boston Long Wharf |
|
|
10,704 |
|
|
275 |
|
|
— |
|
|
2,013 |
|
|
273 |
|
|
2,561 |
|
23.9% |
|
|||||||||||||||||
|
15 |
|
Hyatt Regency Newport Beach |
|
|
9,291 |
|
|
1,525 |
|
|
— |
|
|
875 |
|
|
— |
|
|
2,400 |
|
25.8% |
|
|||||||||||||||||
|
16 |
|
Marriott Tysons Corner |
|
|
5,458 |
|
|
967 |
|
|
— |
|
|
750 |
|
|
— |
|
|
1,717 |
|
31.5% |
|
|||||||||||||||||
|
17 |
|
Marriott Houston |
|
|
3,669 |
|
|
270 |
|
|
— |
|
|
571 |
|
|
— |
|
|
841 |
|
22.9% |
|
|||||||||||||||||
|
18 |
|
Renaissance Long Beach |
|
|
7,342 |
|
|
1,600 |
|
|
— |
|
|
800 |
|
|
— |
|
|
2,400 |
|
32.7% |
|
|||||||||||||||||
|
19 |
|
Embassy Suites Chicago |
|
|
4,246 |
|
|
(136) |
|
|
— |
|
|
898 |
|
|
— |
|
|
762 |
|
17.9% |
|
|||||||||||||||||
|
20 |
|
Hilton Garden Inn Chicago Downtown/Magnificent Mile |
|
|
2,851 |
|
|
(803) |
|
|
— |
|
|
771 |
|
|
— |
|
|
(32) |
|
-1.1% |
|
|||||||||||||||||
|
21 |
|
Renaissance Westchester |
|
|
4,279 |
|
|
(874) |
|
|
— |
|
|
857 |
|
|
— |
|
|
(17) |
|
-0.4% |
|
|||||||||||||||||
|
22 |
|
Embassy Suites La Jolla |
|
|
5,499 |
|
|
579 |
|
|
— |
|
|
1,019 |
|
|
657 |
|
|
2,255 |
|
41.0% |
|
|||||||||||||||||
|
23 |
|
Marriott Philadelphia |
|
|
4,120 |
|
|
211 |
|
|
— |
|
|
628 |
|
|
— |
|
|
839 |
|
20.4% |
|
|||||||||||||||||
|
24 |
|
Hilton New Orleans St. Charles |
|
|
4,098 |
|
|
1,205 |
|
|
— |
|
|
603 |
|
|
— |
|
|
1,808 |
|
44.1% |
|
|||||||||||||||||
|
25 |
|
Marriott Portland |
|
|
3,729 |
|
|
1,067 |
|
|
— |
|
|
389 |
|
|
— |
|
|
1,456 |
|
39.0% |
|
|||||||||||||||||
|
26 |
|
Marriott Park City |
|
|
5,196 |
|
|
1,947 |
|
|
— |
|
|
523 |
|
|
— |
|
|
2,470 |
|
47.5% |
|
|||||||||||||||||
|
27 |
|
Courtyard by Marriott Los Angeles |
|
|
3,305 |
|
|
893 |
|
|
— |
|
|
290 |
|
|
— |
|
|
1,183 |
|
35.8% |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
27 Hotel Portfolio (3) |
|
|
277,184 |
|
|
29,260 |
|
|
(212) |
|
|
40,679 |
|
|
6,669 |
|
|
76,396 |
|
27.6% |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
Add: Sold Hotel (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
Fairmont Newport Beach |
|
|
3,541 |
|
|
1,019 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,019 |
|
28.8% |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
Actual Portfolio (5) |
|
$ |
280,725 |
|
$ |
30,279 |
|
$ |
(212) |
|
$ |
40,679 |
|
$ |
6,669 |
|
$ |
77,415 |
|
27.6% |
|
|||||||||||||||||
*Footnotes on page 42
|
PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS |
|
|
Page 40 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Property-Level Adjusted EBITDA Reconciliation Q1 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotels sorted by number of rooms |
|
|
For the Three Months Ended March 31, 2016 |
|
|||||||||||||||||
|
|
|
(In thousands) |
|
|
|
|
|
Plus: |
|
Plus: |
|
Plus: |
|
Equals: |
|
Hotel |
|
||||||
|
|
|
|
|
Total |
|
Net Income / |
|
Other |
|
|
|
|
|
Hotel |
|
Adjusted EBITDA |
|
||||||
|
|
|
|
|
Revenues |
|
(Loss) |
|
Adjustments (7) |
|
Depreciation |
|
Interest Expense |
|
Adjusted EBITDA |
|
Margins |
|
||||||
|
1 |
|
Hilton San Diego Bayfront (1) |
|
$ |
36,492 |
|
$ |
6,612 |
|
$ |
450 |
|
$ |
3,462 |
|
$ |
1,652 |
|
$ |
12,176 |
|
33.4% |
|
|
2 |
|
Boston Park Plaza (6) |
|
|
11,430 |
|
|
(6,073) |
|
|
— |
|
|
3,944 |
|
|
437 |
|
|
(1,692) |
|
-14.8% |
|
|
3 |
|
Renaissance Washington DC |
|
|
19,840 |
|
|
841 |
|
|
— |
|
|
2,492 |
|
|
1,831 |
|
|
5,164 |
|
26.0% |
|
|
4 |
|
Hyatt Regency San Francisco |
|
|
27,145 |
|
|
3,408 |
|
|
914 |
|
|
3,295 |
|
|
— |
|
|
7,617 |
|
28.1% |
|
|
5 |
|
Renaissance Orlando at SeaWorld ® (1) |
|
|
21,992 |
|
|
4,926 |
|
|
— |
|
|
2,196 |
|
|
1,027 |
|
|
8,149 |
|
37.1% |
|
|
6 |
|
Renaissance Harborplace |
|
|
8,852 |
|
|
(384) |
|
|
— |
|
|
1,619 |
|
|
— |
|
|
1,235 |
|
14.0% |
|
|
7 |
|
Wailea Beach Resort |
|
|
18,745 |
|
|
3,837 |
|
|
118 |
|
|
2,471 |
|
|
— |
|
|
6,426 |
|
34.3% |
|
|
8 |
|
Renaissance Los Angeles Airport |
|
|
8,711 |
|
|
1,800 |
|
|
— |
|
|
701 |
|
|
— |
|
|
2,501 |
|
28.7% |
|
|
9 |
|
JW Marriott New Orleans |
|
|
10,461 |
|
|
1,430 |
|
|
1 |
|
|
1,523 |
|
|
941 |
|
|
3,895 |
|
37.2% |
|
|
10 |
|
Hilton North Houston |
|
|
6,195 |
|
|
670 |
|
|
— |
|
|
850 |
|
|
— |
|
|
1,520 |
|
24.5% |
|
|
11 |
|
Hilton Times Square |
|
|
9,989 |
|
|
(4,083) |
|
|
628 |
|
|
2,539 |
|
|
1,183 |
|
|
267 |
|
2.7% |
|
|
12 |
|
Marriott Quincy |
|
|
6,250 |
|
|
170 |
|
|
— |
|
|
1,125 |
|
|
— |
|
|
1,295 |
|
20.7% |
|
|
13 |
|
Hyatt Centric Magnificent Mile |
|
|
4,429 |
|
|
(2,894) |
|
|
— |
|
|
1,430 |
|
|
— |
|
|
(1,464) |
|
-33.1% |
|
|
14 |
|
Marriott Boston Long Wharf |
|
|
10,527 |
|
|
(1,885) |
|
|
— |
|
|
2,075 |
|
|
2,486 |
|
|
2,676 |
|
25.4% |
|
|
15 |
|
Hyatt Regency Newport Beach |
|
|
8,983 |
|
|
1,421 |
|
|
— |
|
|
854 |
|
|
— |
|
|
2,275 |
|
25.3% |
|
|
16 |
|
Marriott Tysons Corner |
|
|
4,895 |
|
|
580 |
|
|
— |
|
|
788 |
|
|
— |
|
|
1,368 |
|
27.9% |
|
|
17 |
|
Marriott Houston |
|
|
4,202 |
|
|
542 |
|
|
— |
|
|
598 |
|
|
— |
|
|
1,140 |
|
27.1% |
|
|
18 |
|
Renaissance Long Beach |
|
|
7,001 |
|
|
1,425 |
|
|
— |
|
|
761 |
|
|
— |
|
|
2,186 |
|
31.2% |
|
|
19 |
|
Embassy Suites Chicago (6) |
|
|
4,355 |
|
|
(1,043) |
|
|
— |
|
|
908 |
|
|
959 |
|
|
824 |
|
18.9% |
|
|
20 |
|
Hilton Garden Inn Chicago Downtown/Magnificent Mile (6) |
|
|
2,827 |
|
|
(937) |
|
|
— |
|
|
750 |
|
|
— |
|
|
(187) |
|
-6.6% |
|
|
21 |
|
Renaissance Westchester |
|
|
4,410 |
|
|
(781) |
|
|
— |
|
|
849 |
|
|
— |
|
|
68 |
|
1.5% |
|
|
22 |
|
Embassy Suites La Jolla |
|
|
5,470 |
|
|
652 |
|
|
— |
|
|
904 |
|
|
676 |
|
|
2,232 |
|
40.8% |
|
|
23 |
|
Marriott Philadelphia |
|
|
3,672 |
|
|
17 |
|
|
— |
|
|
523 |
|
|
— |
|
|
540 |
|
14.7% |
|
|
24 |
|
Hilton New Orleans St. Charles |
|
|
4,141 |
|
|
997 |
|
|
— |
|
|
641 |
|
|
— |
|
|
1,638 |
|
39.6% |
|
|
25 |
|
Marriott Portland |
|
|
3,933 |
|
|
1,329 |
|
|
— |
|
|
390 |
|
|
— |
|
|
1,719 |
|
43.7% |
|
|
26 |
|
Marriott Park City |
|
|
4,525 |
|
|
1,511 |
|
|
— |
|
|
485 |
|
|
— |
|
|
1,996 |
|
44.1% |
|
|
27 |
|
Courtyard by Marriott Los Angeles |
|
|
3,451 |
|
|
976 |
|
|
— |
|
|
297 |
|
|
— |
|
|
1,273 |
|
36.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 Hotel Portfolio (3) |
|
|
262,923 |
|
|
15,064 |
|
|
2,111 |
|
|
38,470 |
|
|
11,192 |
|
|
66,837 |
|
25.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Sold Hotels (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheraton Cerritos |
|
|
3,355 |
|
|
563 |
|
|
— |
|
|
397 |
|
|
— |
|
|
960 |
|
28.6% |
|
|
|
|
Fairmont Newport Beach (6) |
|
|
7,893 |
|
|
784 |
|
|
— |
|
|
1,031 |
|
|
— |
|
|
1,815 |
|
23.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual Portfolio (5) |
|
$ |
274,171 |
|
$ |
16,411 |
|
$ |
2,111 |
|
$ |
39,898 |
|
$ |
11,192 |
|
$ |
69,612 |
|
25.4% |
|
*Footnotes on page 42
|
PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS |
|
|
Page 41 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Information |
Property-Level Adjusted EBITDA Reconciliation
Q1 2017/2016 Footnotes
|
(1) |
Includes 100% of the operating results for the Hilton San Diego Bayfront and Renaissance Orlando at SeaWorld®. |
|
(2) |
Other Adjustments for the three months ended March 31, 2017 include: a total of $0.1 million in amortization of lease intangibles at the Hilton Times Square and JW Marriott New Orleans; and a total of $(0.3) million in noncash ground rent at the Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans. |
|
(3) |
27 Hotel Portfolio includes all 27 hotels owned by the Company as of March 31, 2017. |
|
(4) |
Sold Hotels for both the three months ended March 31, 2017 and 2016 include the results generated by the Fairmont Newport Beach, sold in February 2017. Sold Hotels for the three months ended March 31, 2016 also include the results generated by the Sheraton Cerritos, sold in May 2016. |
|
(5) |
Actual Portfolio for the three months ended March 31, 2017 includes all 27 hotels owned by the Company as of March 31, 2017, as well as results from the Fairmont Newport Beach before its sale in February 2017. Actual Portfolio for the three months ended March 31, 2016 includes all 29 hotels owned by the Company as of March 31, 2016. |
|
(6) |
Hotel EBITDA for the first quarter of 2016 is impacted by a major repositioning at the Boston Park Plaza, and by a total of $0.1 million in non-current property tax credits, net of appeal fees, received at the following hotels: Embassy Suites Chicago $0.1 million; Hilton Garden Inn Chicago Downtown/Magnificent Mile $15,000; and Fairmont Newport Beach $27,000. |
|
(7) |
Other Adjustments for the three months ended March 31, 2016 include property-level restructuring, severance and management transition costs at the following hotels: Hilton Times Square $0.5 million; Hyatt Regency San Francisco $0.9 million; and Wailea Beach Resort $0.1 million. In addition, Other Adjustments for the three months ended March 31, 2016 include: a total of $0.1 million in amortization of lease intangibles at the Hilton Times Square and JW Marriott New Orleans; and a total of $0.5 million in noncash ground rent at the Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans. |
|
PROPERTY-LEVEL ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS |
|
|
Page 42 |
|||||
|
|
|
|
|
|
|
|
|
|