Attached files
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EX-99.1 - EX-99.1 - Park Hotels & Resorts Inc. | pk-ex991_7.htm |
8-K - 8-K - Park Hotels & Resorts Inc. | pk-8k_20200511.htm |
Exhibit 99.2
Fourth Quarter and Year End 2019 Supplemental Data December 31, 2019 Royal Palm South Beach Miami, a Tribute Portfolio Resort Parc 55 San Francisco, a Hilton Hotel Hilton Hawaiian Village Waikiki Beach Resort
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About Park and Safe Harbor Disclosure |
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About Park Hotels & Resorts Inc. Park (NYSE: PK) is the second largest publicly-traded lodging real estate company with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Park’s portfolio consists of 60 premium-branded hotels and resorts with over 33,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com for more information.
Forward-Looking Statements This supplement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements related to Park’s current expectations regarding the performance of its business, financial results, liquidity and capital resources, the effects of competition and the effects of future legislation or regulations, the expected completion of anticipated dispositions, the declaration and payment of future dividends, and other non-historical statements. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as the words “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could materially affect its results of operations, financial condition, cash flows, performance or future achievements or events. Currently, one of the most significant factors is the potential adverse effect of COVID-19, on the Company’s financial condition, results of operations, cash flows and performance, its hotel management companies and the hotel tenants, and the global economy and financial markets. The extent to which COVID-19 impacts the Company, its hotel managers, tenants and guests at the Company’s hotels will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others.
Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in these forward-looking statements. You should not put undue reliance on any forward-looking statements and Park urges investors to carefully review the disclosures Park makes concerning risk and uncertainties in Item 1A: “Risk Factors” in Park’s Annual Report on Form 10-K for the year ended December 31, 2019, as such factors may be updated from time to time in Park’s filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Except as required by law, Park undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Supplemental Financial Information Park refers to certain non-generally accepted accounting principles (“GAAP”) financial measures in this presentation, including Funds from Operations (“FFO”) calculated in accordance with the guidelines of the National Association of Real Estate Investment Trusts (“Nareit”), Adjusted FFO, FFO per share, Adjusted FFO per share, Earnings before interest expense, taxes and depreciation and amortization (“EBITDA”), Adjusted EBITDA, Hotel Adjusted EBITDA, Hotel Adjusted EBITDA margin, Net debt and Net debt to Adjusted EBITDA ratio. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of its operating performance. Please see the schedules included in this presentation including the “Definitions” section for additional information and reconciliations of such non-GAAP financial measures. |
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Table of Contents |
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1. Financial Statements |
4 |
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2. Supplementary Financial Information |
7 |
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3. Portfolio and Operating Metrics |
17 |
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4. Properties Acquired & Sold |
24 |
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5. Liquidity and Capital Structure |
27 |
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6. Definitions |
31 |
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Waldorf Astoria Orlando Hilton midtown
Waldorf Astoria Orlando Le Meridien San Francisco New York Hilton Midtown
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Financial statements Casa Marina, a Waldorf Astoria Resort Hilton Chicago Hyatt Regency Mission Bay Spa and Marina
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Financial Statements |
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Condensed Consolidated Balance Sheets |
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(in millions, except share and per share data)
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March 31, 2020 |
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December 31, 2019 |
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(unaudited) |
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ASSETS |
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Property and equipment, net |
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$ |
9,383 |
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$ |
9,594 |
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Assets held for sale, net |
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— |
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71 |
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Investments in affiliates |
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30 |
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35 |
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Goodwill |
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— |
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607 |
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Intangibles, net |
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46 |
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46 |
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Cash and cash equivalents |
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1,304 |
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346 |
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Restricted cash |
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38 |
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40 |
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Accounts receivable, net of allowance for doubtful accounts of $2 and $2 |
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113 |
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180 |
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Prepaid expenses |
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73 |
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83 |
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Other assets |
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46 |
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40 |
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Operating lease right-of-use assets |
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244 |
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248 |
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TOTAL ASSETS (variable interest entities - $237 and $242) |
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$ |
11,277 |
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$ |
11,290 |
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LIABILITIES AND EQUITY |
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Liabilities |
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Debt |
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$ |
4,870 |
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$ |
3,871 |
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Accounts payable and accrued expenses |
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188 |
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217 |
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Due to hotel managers |
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103 |
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159 |
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Deferred income tax liabilities |
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35 |
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50 |
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Other liabilities |
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241 |
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282 |
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Operating lease liabilities |
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257 |
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260 |
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Total liabilities (variable interest entities - $218 and $219) |
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5,694 |
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4,839 |
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Stockholders' Equity |
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Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, 235,721,204 shares issued and 235,427,598 shares outstanding as of March 31, 2020 and 239,589,639 shares issued and 239,386,877 shares outstanding as of December 31, 2019 |
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2 |
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2 |
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Additional paid-in capital |
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4,504 |
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4,575 |
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Retained earnings |
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1,129 |
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1,922 |
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Accumulated other comprehensive loss |
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(5 |
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(3 |
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Total stockholders' equity |
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5,630 |
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6,496 |
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Noncontrolling interests |
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(47 |
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(45 |
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Total equity |
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5,583 |
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6,451 |
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TOTAL LIABILITIES AND EQUITY |
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$ |
11,277 |
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$ |
11,290 |
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Financial Statements (continued) |
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Condensed Consolidated Statements of Operations |
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y financial information juniper hotel, curio collection hotel adagio, autograph collection the reach, Astoria resort
(unaudited, in millions, except per share data)
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Three Months Ended March 31, |
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2020 |
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2019 |
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Revenues |
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Rooms |
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$ |
362 |
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$ |
403 |
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Food and beverage |
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161 |
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183 |
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Ancillary hotel |
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57 |
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55 |
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Other |
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19 |
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18 |
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Total revenues |
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599 |
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659 |
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Operating expenses |
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Rooms |
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112 |
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107 |
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Food and beverage |
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123 |
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124 |
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Other departmental and support |
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172 |
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149 |
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Other property-level |
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60 |
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49 |
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Management fees |
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25 |
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33 |
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Impairment loss and casualty gain, net |
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694 |
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— |
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Depreciation and amortization |
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75 |
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62 |
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Corporate general and administrative |
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16 |
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17 |
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Other |
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21 |
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20 |
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Total expenses |
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1,298 |
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561 |
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Gain on sales of assets, net |
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62 |
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31 |
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Operating (loss) income |
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(637 |
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129 |
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Interest income |
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1 |
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1 |
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Interest expense |
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(40 |
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(32 |
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Equity in (losses) earnings from investments in affiliates |
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(1 |
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5 |
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Loss on foreign currency transactions |
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(2 |
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— |
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Other gain, net |
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— |
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1 |
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(Loss) income before income taxes |
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(679 |
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104 |
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Income tax expense |
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(10 |
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(7 |
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Net (loss) income (1) |
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(689 |
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97 |
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Net loss (income) attributable to noncontrolling interests |
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1 |
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(1 |
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Net (loss) income attributable to stockholders (1) |
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$ |
(688 |
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$ |
96 |
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(Loss) Earnings per share: |
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(Loss) earnings per share - Basic |
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$ |
(2.89 |
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$ |
0.48 |
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(Loss) earnings per share - Diluted |
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$ |
(2.89 |
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$ |
0.48 |
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Weighted average shares outstanding - Basic |
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238 |
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201 |
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Weighted average shares outstanding - Diluted |
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238 |
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202 |
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_________________________________
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(1) |
The three months ended March 31, 2020 includes $607 million and $88 million of impairment losses related to goodwill and long-lived assets, respectively. |
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7 | |
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Supplementary Financial Information |
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EBITDA and Adjusted EBITDA |
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(unaudited, in millions) |
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Three Months Ended March 31, |
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2020 |
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2019 |
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Net (loss) income |
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$ |
(689 |
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$ |
97 |
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Depreciation and amortization expense |
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75 |
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62 |
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Interest income |
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(1 |
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(1 |
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Interest expense |
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40 |
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32 |
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Income tax expense |
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10 |
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7 |
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Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates |
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5 |
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5 |
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EBITDA |
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(560 |
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202 |
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Gain on sales of assets, net |
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(62 |
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(31 |
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Loss on foreign currency transactions |
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2 |
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— |
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Severance expense |
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2 |
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1 |
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Share-based compensation expense |
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2 |
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4 |
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Impairment loss and casualty gain, net |
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694 |
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— |
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Other items |
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4 |
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— |
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Adjusted EBITDA |
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$ |
82 |
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$ |
176 |
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Supplementary Financial Information (continued) |
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Pro-forma Hotel Adjusted EBITDA and Pro-forma Hotel Adjusted EBITDA Margin(1) |
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(unaudited, dollars in millions) |
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Three Months Ended |
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March 31, |
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2020 |
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2019 |
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Adjusted EBITDA |
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$ |
82 |
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176 |
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Less: Adjusted EBITDA from investments in affiliates |
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(4 |
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(10 |
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Add: All other(2) |
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13 |
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15 |
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Hotel Adjusted EBITDA |
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91 |
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181 |
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Add: Adjusted EBITDA from hotels acquired(1) |
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— |
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37 |
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Less: Adjusted EBITDA from hotels disposed of |
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(1 |
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(12 |
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Pro-forma Hotel Adjusted EBITDA(1) |
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$ |
90 |
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$ |
206 |
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Three Months Ended |
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March 31, |
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2020 |
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2019 |
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Total Revenues |
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$ |
599 |
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$ |
659 |
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Less: Other revenue |
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(19 |
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(18 |
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Add: Revenues from hotels acquired(1) |
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— |
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129 |
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Less: Revenues from hotels disposed of |
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(6 |
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(47 |
) |
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Pro-forma Hotel Revenues(1) |
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$ |
574 |
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$ |
723 |
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Three Months Ended |
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March 31, |
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2020 |
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2019 |
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Change(3) |
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Pro-forma Hotel Revenues(1) |
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$ |
574 |
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$ |
723 |
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(20.5 |
)% |
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Pro-forma Hotel Adjusted EBITDA(1) |
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$ |
90 |
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$ |
206 |
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(56.4 |
)% |
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Pro-forma Hotel Adjusted EBITDA margin(1)(3) |
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15.6 |
% |
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28.4 |
% |
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NM(4) |
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_____________________________________________________________ |
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(1) Assumes hotels were acquired on January 1, 2019. |
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(2) Includes other revenues and other expenses, non-income taxes on TRS leases included in other property-level expenses and corporate general and administrative expenses in the condensed consolidated statements of operations. |
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(3) Percentages are calculated based on unrounded numbers. |
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(4) Percentage change is not meaningful. |
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Supplementary Financial Information (continued) |
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Nareit FFO and Adjusted FFO |
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(unaudited, in millions, except per share data) |
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Three Months Ended March 31, |
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2020 |
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2019 |
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Net (loss) income attributable to stockholders |
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$ |
(688 |
) |
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$ |
96 |
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Depreciation and amortization expense |
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75 |
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62 |
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Depreciation and amortization expense attributable to noncontrolling interests |
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(1 |
) |
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(1 |
) |
Gain on sales of assets, net |
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(62 |
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(31 |
) |
Impairment loss |
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695 |
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— |
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Equity investment adjustments: |
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Equity in losses (earnings) from investments in affiliates |
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1 |
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(5 |
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Pro rata FFO of investments in affiliates |
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1 |
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9 |
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Nareit FFO attributable to stockholders |
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21 |
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130 |
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Loss on foreign currency transactions |
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2 |
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— |
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Severance expense |
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2 |
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1 |
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Share-based compensation expense |
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2 |
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4 |
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Other items(1) |
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30 |
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1 |
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Adjusted FFO attributable to stockholders |
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$ |
57 |
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$ |
136 |
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Nareit FFO per share - Diluted(2) |
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$ |
0.09 |
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$ |
0.65 |
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Adjusted FFO per share - Diluted(2) |
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$ |
0.24 |
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$ |
0.67 |
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Weighted average shares outstanding - Diluted |
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238 |
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202 |
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_________________________________
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(1) |
The three months ended March 31, 2020, includes $26 million of tax expense recognized from hotels sold during the period. |
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(2) |
Per share amounts are calculated based on unrounded numbers. |
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10 | |
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Supplementary Financial Information (continued) |
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Historical Pro-forma Hotel Metrics |
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The financial information below is for the 53 consolidated hotels owned as of March 31, 2020(1).
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Three Months Ended |
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TTM |
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Full Year |
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(unaudited) |
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June 30, |
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September 30, |
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December 31, |
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March 31, |
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March 31, |
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December 31, |
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2019 |
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2019 |
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2019 |
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2020 |
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2020 |
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2019 |
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Pro-forma RevPAR |
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$ |
192.94 |
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$ |
187.93 |
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$ |
177.84 |
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$ |
136.27 |
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$ |
173.94 |
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$ |
183.69 |
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Pro-forma Occupancy |
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85.9 |
% |
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84.6 |
% |
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80.8 |
% |
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61.7 |
% |
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78.3 |
% |
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82.3 |
% |
Pro-forma ADR |
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$ |
224.59 |
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$ |
222.04 |
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$ |
220.20 |
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$ |
220.90 |
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$ |
222.04 |
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$ |
223.28 |
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Pro-forma Hotel Revenues (in millions) |
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$ |
791 |
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$ |
750 |
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$ |
766 |
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$ |
574 |
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$ |
2,881 |
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$ |
3,030 |
|
Pro-forma Hotel Adjusted EBITDA (in millions) |
|
$ |
248 |
|
|
$ |
217 |
|
|
$ |
223 |
|
|
$ |
90 |
|
|
$ |
778 |
|
|
|
$ |
894 |
|
Pro-forma Hotel Adjusted EBITDA margin(2) |
|
|
31.4 |
% |
|
|
28.9 |
% |
|
|
29.2 |
% |
|
|
15.6 |
% |
|
|
27.0 |
% |
|
|
|
29.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
TTM |
|
|
|
Full Year |
|
|||||||||||||||
(unaudited) |
|
June 30, |
|
|
September 30, |
|
|
December 31, |
|
|
March 31, |
|
|
March 31, |
|
|
|
December 31, |
|
||||||
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2019 |
|
|
2019 |
|
|
|
2018 |
|
||||||
Pro-forma RevPAR |
|
$ |
190.86 |
|
|
$ |
183.27 |
|
|
$ |
173.18 |
|
|
$ |
175.97 |
|
|
$ |
181.18 |
|
|
|
$ |
179.14 |
|
Pro-forma Occupancy |
|
|
84.5 |
% |
|
|
83.1 |
% |
|
|
78.2 |
% |
|
|
77.7 |
% |
|
|
80.9 |
% |
|
|
|
81.0 |
% |
Pro-forma ADR |
|
$ |
225.89 |
|
|
$ |
220.66 |
|
|
$ |
221.59 |
|
|
$ |
226.46 |
|
|
$ |
224.07 |
|
|
|
$ |
221.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro-forma Hotel Revenues (in millions) |
|
$ |
787 |
|
|
$ |
714 |
|
|
$ |
732 |
|
|
$ |
723 |
|
|
$ |
2,956 |
|
|
|
$ |
2,922 |
|
Pro-forma Hotel Adjusted EBITDA (in millions) |
|
$ |
263 |
|
|
$ |
207 |
|
|
$ |
212 |
|
|
$ |
206 |
|
|
$ |
888 |
|
|
|
$ |
870 |
|
Pro-forma Hotel Adjusted EBITDA margin(2) |
|
|
33.4 |
% |
|
|
29.0 |
% |
|
|
29.0 |
% |
|
|
28.4 |
% |
|
|
30.0 |
% |
|
|
|
29.8 |
% |
_________________________________
|
(1) |
Assumes hotels were acquired on January 1, 2018. |
|
|
(2) |
Percentages are calculated based on unrounded numbers. |
|
11 | |
|
|
Supplementary Financial Information (continued) |
|
|
|
|
|
Historical Pro-forma Hotel Adjusted EBITDA – 2020 TTM |
|
|
|
|
The financial information below is for the 53 consolidated hotels owned as of March 31, 2020.
|
|
Three Months Ended |
|
|
TTM |
|
|
|
Full Year |
|
|||||||||||||||
(unaudited, in millions) |
|
June 30, |
|
|
September 30, |
|
|
December 31, |
|
|
March 31, |
|
|
March 31, |
|
|
|
December 31, |
|
||||||
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2020 |
|
|
2020 |
|
|
|
2019 |
|
||||||
Net income (loss) |
|
$ |
84 |
|
|
$ |
9 |
|
|
$ |
126 |
|
|
$ |
(689 |
) |
|
$ |
(470 |
) |
|
|
$ |
316 |
|
Depreciation and amortization expense |
|
|
61 |
|
|
|
61 |
|
|
|
80 |
|
|
|
75 |
|
|
|
277 |
|
|
|
|
264 |
|
Interest income |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
|
(6 |
) |
Interest expense |
|
|
33 |
|
|
|
33 |
|
|
|
42 |
|
|
|
40 |
|
|
|
148 |
|
|
|
|
140 |
|
Income tax expense |
|
|
5 |
|
|
|
— |
|
|
|
23 |
|
|
|
10 |
|
|
|
38 |
|
|
|
|
35 |
|
Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates |
|
|
7 |
|
|
|
7 |
|
|
|
4 |
|
|
|
5 |
|
|
|
23 |
|
|
|
|
23 |
|
EBITDA |
|
|
188 |
|
|
|
108 |
|
|
|
274 |
|
|
|
(560 |
) |
|
|
10 |
|
|
|
|
772 |
|
Loss (gain) on sales of assets, net |
|
|
12 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
(62 |
) |
|
|
(50 |
) |
|
|
|
(19 |
) |
Gain on sale of investments in affiliates(1) |
|
|
— |
|
|
|
— |
|
|
|
(44 |
) |
|
|
— |
|
|
|
(44 |
) |
|
|
|
(44 |
) |
Loss (gain) on foreign currency transactions |
|
|
— |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
2 |
|
|
|
3 |
|
|
|
|
1 |
|
Acquisition costs |
|
|
6 |
|
|
|
59 |
|
|
|
5 |
|
|
|
1 |
|
|
|
71 |
|
|
|
|
70 |
|
Severance expense |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
3 |
|
|
|
|
2 |
|
Share-based compensation expense |
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
2 |
|
|
|
14 |
|
|
|
|
16 |
|
Casualty loss (gain) and impairment loss, net |
|
|
— |
|
|
|
8 |
|
|
|
(26 |
) |
|
|
694 |
|
|
|
676 |
|
|
|
|
(18 |
) |
Other items |
|
|
(4 |
) |
|
|
— |
|
|
|
10 |
|
|
|
3 |
|
|
|
9 |
|
|
|
|
6 |
|
Adjusted EBITDA |
|
|
207 |
|
|
|
180 |
|
|
|
223 |
|
|
|
82 |
|
|
|
692 |
|
|
|
|
786 |
|
Add: Adjusted EBITDA from hotels acquired(2) |
|
|
53 |
|
|
|
39 |
|
|
|
— |
|
|
|
— |
|
|
|
92 |
|
|
|
|
129 |
|
Less: Adjusted EBITDA from hotels disposed of |
|
|
(14 |
) |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(1 |
) |
|
|
(26 |
) |
|
|
|
(37 |
) |
Less: Adjusted EBITDA from investments in affiliates disposed of |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
|
(2 |
) |
Pro-forma Adjusted EBITDA(2) |
|
|
245 |
|
|
|
213 |
|
|
|
217 |
|
|
|
81 |
|
|
|
756 |
|
|
|
|
876 |
|
Less: Adjusted EBITDA from investments in affiliates |
|
|
(11 |
) |
|
|
(8 |
) |
|
|
(6 |
) |
|
|
(4 |
) |
|
|
(29 |
) |
|
|
|
(35 |
) |
Add: All other(3) |
|
|
14 |
|
|
|
12 |
|
|
|
12 |
|
|
|
13 |
|
|
|
51 |
|
|
|
|
53 |
|
Pro-forma Hotel Adjusted EBITDA(2) |
|
$ |
248 |
|
|
$ |
217 |
|
|
$ |
223 |
|
|
$ |
90 |
|
|
$ |
778 |
|
|
|
$ |
894 |
|
__________________________________
|
(1) |
Included in other gain (loss), net in the consolidated statement of operations. |
|
(2) |
Assumes hotels were acquired on January 1, 2018. |
|
(3) |
Includes other revenues and other expenses, non-income taxes on TRS leases included in other property-level expenses and corporate general and administrative expenses in the condensed consolidated statement of operations. |
12 | |
|
|
Supplementary Financial Information (continued) |
|
|
|
|
|
Historical Pro-forma Hotel Adjusted EBITDA – 2019 TTM |
|
|
|
|
The financial information below is for the 53 consolidated hotels owned as of March 31, 2020.
|
|
Three Months Ended |
|
|
|
TTM |
|
|
|
|
|
Full Year |
|
|||||||||||||||
(unaudited, in millions) |
|
June 30, |
|
|
September 30, |
|
|
December 31, |
|
|
March 31, |
|
|
|
March 31, |
|
|
|
|
|
December 31, |
|
||||||
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2019 |
|
|
|
2019 |
|
|
|
|
|
2018 |
|
||||||
Net income |
|
$ |
218 |
|
|
$ |
55 |
|
|
$ |
55 |
|
|
$ |
97 |
|
|
|
$ |
425 |
|
|
|
|
|
$ |
477 |
|
Depreciation and amortization expense |
|
|
69 |
|
|
|
69 |
|
|
|
69 |
|
|
|
62 |
|
|
|
|
269 |
|
|
|
|
|
|
277 |
|
Interest income |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
|
(6 |
) |
|
|
|
|
|
(6 |
) |
Interest expense |
|
|
31 |
|
|
|
32 |
|
|
|
33 |
|
|
|
32 |
|
|
|
|
128 |
|
|
|
|
|
|
127 |
|
Income tax (benefit) expense |
|
|
13 |
|
|
|
— |
|
|
|
10 |
|
|
|
7 |
|
|
|
|
30 |
|
|
|
|
|
|
23 |
|
Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates |
|
|
5 |
|
|
|
8 |
|
|
|
6 |
|
|
|
5 |
|
|
|
|
24 |
|
|
|
|
|
|
26 |
|
EBITDA |
|
|
335 |
|
|
|
162 |
|
|
|
171 |
|
|
|
202 |
|
|
|
|
870 |
|
|
|
|
|
|
924 |
|
(Gain) loss on sales of assets, net |
|
|
(7 |
) |
|
|
(2 |
) |
|
|
2 |
|
|
|
(31 |
) |
|
|
|
(38 |
) |
|
|
|
|
|
(96 |
) |
(Gain) loss on sale of investments in affiliates(1) |
|
|
(108 |
) |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
|
(107 |
) |
|
|
|
|
|
(107 |
) |
Loss (gain) on foreign currency transactions |
|
|
4 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
|
4 |
|
|
|
|
|
|
3 |
|
Transition expense |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
|
1 |
|
|
|
|
|
|
3 |
|
Severance expense |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
|
3 |
|
|
|
|
|
|
2 |
|
Share-based compensation expense |
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
|
16 |
|
|
|
|
|
|
16 |
|
Casualty (gain) loss and impairment loss, net |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
(1 |
) |
|
|
|
|
|
(1 |
) |
Other items |
|
|
(1 |
) |
|
|
1 |
|
|
|
8 |
|
|
|
— |
|
|
|
|
8 |
|
|
|
|
|
|
10 |
|
Adjusted EBITDA |
|
|
228 |
|
|
|
168 |
|
|
|
184 |
|
|
|
176 |
|
|
|
|
756 |
|
|
|
|
|
|
754 |
|
Add: Adjusted EBITDA from hotels acquired(2) |
|
|
55 |
|
|
|
49 |
|
|
|
41 |
|
|
|
37 |
|
|
|
|
182 |
|
|
|
|
|
|
181 |
|
Less: Adjusted EBITDA from hotels disposed of |
|
|
(21 |
) |
|
|
(13 |
) |
|
|
(15 |
) |
|
|
(12 |
) |
|
|
|
(61 |
) |
|
|
|
|
|
(70 |
) |
Less: Adjusted EBITDA from investments in affiliates disposed of |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
(3 |
) |
|
|
|
|
|
(5 |
) |
Pro-forma Adjusted EBITDA(2) |
|
|
260 |
|
|
|
203 |
|
|
|
210 |
|
|
|
201 |
|
|
|
|
874 |
|
|
|
|
|
|
860 |
|
Less: Adjusted EBITDA from investments in affiliates |
|
|
(11 |
) |
|
|
(9 |
) |
|
|
(11 |
) |
|
|
(10 |
) |
|
|
|
(41 |
) |
|
|
|
|
|
(42 |
) |
Add: All other(3) |
|
|
14 |
|
|
|
13 |
|
|
|
13 |
|
|
|
15 |
|
|
|
|
55 |
|
|
|
|
|
|
52 |
|
Pro-forma Hotel Adjusted EBITDA(2) |
|
$ |
263 |
|
|
$ |
207 |
|
|
$ |
212 |
|
|
$ |
206 |
|
|
|
$ |
888 |
|
|
|
|
|
$ |
870 |
|
__________________________________
|
(1) |
Included in other gain (loss), net in the consolidated statement of operations. |
|
(2) |
Assumes hotels were acquired on January 1, 2018. |
|
(3) |
Includes other revenues and other expenses, non-income taxes on TRS leases included in other property-level expenses and corporate general and administrative expenses in the condensed consolidated statement of operations. |
13 | |
|
|
Supplementary Financial Information (continued) |
|
|
|
|
|
Historical Pro-forma Hotel Revenues – 2020 and 2019 TTM |
|
|
|
|
The financial information below is for the 53 consolidated hotels owned as of March 31, 2020.
|
|
Three Months Ended |
|
|
TTM |
|
|
|
Full Year |
|
|||||||||||||||
(unaudited, in millions) |
|
June 30, |
|
|
September 30, |
|
|
December 31, |
|
|
March 31, |
|
|
March 31, |
|
|
|
December 31, |
|
||||||
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2020 |
|
|
2020 |
|
|
|
2019 |
|
||||||
Total Revenues |
|
$ |
703 |
|
|
$ |
672 |
|
|
$ |
810 |
|
|
$ |
599 |
|
|
$ |
2,784 |
|
|
|
$ |
2,844 |
|
Less: Other revenue |
|
|
(19 |
) |
|
|
(22 |
) |
|
|
(18 |
) |
|
|
(19 |
) |
|
|
(78 |
) |
|
|
|
(77 |
) |
Add: Revenues from hotels acquired(1) |
|
|
151 |
|
|
|
125 |
|
|
|
— |
|
|
|
— |
|
|
|
276 |
|
|
|
|
406 |
|
Less: Revenues from hotels disposed of |
|
|
(44 |
) |
|
|
(25 |
) |
|
|
(26 |
) |
|
|
(6 |
) |
|
|
(101 |
) |
|
|
|
(143 |
) |
Pro-forma Hotel Revenues(1) |
|
$ |
791 |
|
|
$ |
750 |
|
|
$ |
766 |
|
|
$ |
574 |
|
|
$ |
2,881 |
|
|
|
$ |
3,030 |
|
|
|
Three Months Ended |
|
|
TTM |
|
|
|
Full Year |
|
|||||||||||||||
(unaudited, dollars in millions) |
|
June 30, |
|
|
September 30, |
|
|
December 31, |
|
|
March 31, |
|
|
March 31, |
|
|
|
December 31, |
|
||||||
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2019 |
|
|
2019 |
|
|
|
2018 |
|
||||||
Total Revenues |
|
$ |
731 |
|
|
$ |
652 |
|
|
$ |
686 |
|
|
$ |
659 |
|
|
$ |
2,728 |
|
|
|
$ |
2,737 |
|
Less: Other revenue |
|
|
(17 |
) |
|
|
(19 |
) |
|
|
(19 |
) |
|
|
(18 |
) |
|
|
(73 |
) |
|
|
|
(72 |
) |
Add: Revenues from hotels acquired(1) |
|
|
152 |
|
|
|
148 |
|
|
|
134 |
|
|
|
130 |
|
|
|
564 |
|
|
|
|
561 |
|
Less: Revenues from hotels disposed of |
|
|
(79 |
) |
|
|
(67 |
) |
|
|
(69 |
) |
|
|
(48 |
) |
|
|
(263 |
) |
|
|
|
(304 |
) |
Pro-forma Hotel Revenues(1) |
|
$ |
787 |
|
|
$ |
714 |
|
|
$ |
732 |
|
|
$ |
723 |
|
|
$ |
2,956 |
|
|
|
$ |
2,922 |
|
__________________________________
|
(1) |
Assumes hotels were acquired on January 1, 2018. |
14 | |
|
|
Supplementary Financial Information (continued) |
|
|
|
|
|
General and Administrative Expenses |
|
|
|
|
(unaudited, in millions) |
|
Three Months Ended |
|
|
|||||
|
|
March 31, |
|
|
|||||
|
|
2020 |
|
|
2019 |
|
|
||
Corporate general and administrative expenses |
|
$ |
16 |
|
|
$ |
17 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
Share-based compensation expense |
|
|
2 |
|
|
|
4 |
|
|
Severance expense |
|
|
2 |
|
|
|
1 |
|
|
G&A, excluding expenses not included in Adjusted EBITDA |
|
$ |
12 |
|
|
$ |
12 |
|
|
15 | |
|
|
Supplementary Financial Information (continued) |
|
|
|
|
|
Net Debt and Net Debt to Pro-forma Adjusted EBITDA Ratio |
|
|
|
|
(unaudited, in millions) |
|
March 31, 2020 |
|
|
December 31, 2019 |
|
||
Debt |
|
$ |
4,870 |
|
|
$ |
3,871 |
|
Add: unamortized deferred financing costs and discount |
|
|
17 |
|
|
|
18 |
|
Less: unamortized premium |
|
|
(3 |
) |
|
|
(3 |
) |
Long-term debt, including current maturities and excluding unamortized deferred financing cost, premiums and discounts |
|
|
4,884 |
|
|
|
3,886 |
|
Add: Park's share of unconsolidated affiliates debt, excluding unamortized deferred financing costs |
|
|
225 |
|
|
|
225 |
|
Less: cash and cash equivalents |
|
|
(1,304 |
) |
|
|
(346 |
) |
Less: restricted cash |
|
|
(38 |
) |
|
|
(40 |
) |
Net debt |
|
$ |
3,767 |
|
|
$ |
3,725 |
|
Pro-forma Adjusted EBITDA(1) |
|
$ |
756 |
|
|
$ |
876 |
|
Net debt to Pro-forma Adjusted EBITDA ratio |
|
5.0x |
|
|
4.3x |
|
________________________________
|
(1) |
See slide 12 for Pro-forma Adjusted EBITDA at March 31, 2020 and December 31, 2019. Pro-forma Adjusted EBITDA excludes results from disposed hotels. |
16 | |
|
Portfolio and Operating Metrics Hilton Santa Barbara Beachfront Resort Hilton New Orleans Riverside Waldorf Astoria Orlando GolfClub
17 | |
|
|
Portfolio and Operating Metrics |
|
|
|
|
|
Hotel Portfolio as of May 11, 2020 |
|
|
|
|
Hotel Name |
Total Rooms |
|
Rooms Available |
|
Operating Status |
Market |
Meeting Space (square feet) |
|
Ownership |
Equity Ownership |
|
Debt (in millions) |
|
|
|||||
Consolidated Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hilton Hawaiian Village Waikiki Beach Resort |
|
2,860 |
|
|
— |
|
Suspended |
Hawaii |
|
150,000 |
|
Fee Simple |
100% |
|
$ |
1,275 |
|
|
|
Hilton San Francisco Union Square |
|
1,921 |
|
|
— |
|
Suspended |
San Francisco |
|
130,000 |
|
Fee Simple |
100% |
|
$ |
725 |
|
(1) |
|
New York Hilton Midtown |
|
1,878 |
|
|
— |
|
Suspended |
New York |
|
151,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hilton New Orleans Riverside |
|
1,622 |
|
|
— |
|
Suspended |
New Orleans |
|
130,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hilton Chicago |
|
1,544 |
|
|
— |
|
Suspended |
Chicago |
|
234,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Parc 55 San Francisco - a Hilton Hotel |
|
1,024 |
|
|
— |
|
Suspended |
San Francisco |
|
30,000 |
|
Fee Simple |
100% |
|
|
— |
|
(1) |
|
Hilton Orlando Bonnet Creek |
|
1,009 |
|
|
— |
|
Suspended |
Orlando |
|
122,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
DoubleTree Hotel Seattle Airport |
|
850 |
|
|
— |
|
Suspended |
Seattle |
|
34,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
Hilton Orlando Lake Buena Vista |
|
814 |
|
|
— |
|
Suspended |
Orlando |
|
78,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
Caribe Hilton |
|
652 |
|
|
— |
|
Suspended |
Other U.S. |
|
65,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hilton Waikoloa Village |
|
647 |
|
|
— |
|
Suspended |
Hawaii |
|
235,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
DoubleTree Hotel Washington DC – Crystal City |
|
627 |
|
|
252 |
|
Open |
Washington, D.C. |
|
31,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hilton Denver City Center |
|
613 |
|
|
— |
|
Suspended |
Denver |
|
50,000 |
|
Fee Simple |
100% |
|
$ |
60 |
|
|
|
Hilton Boston Logan Airport |
|
604 |
|
|
604 |
|
Open |
Boston |
|
30,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
W Chicago - Lakeshore |
|
520 |
|
|
240 |
|
Open |
Chicago |
|
21,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hilton Miami Airport |
|
508 |
|
|
— |
|
Suspended |
Miami |
|
32,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
DoubleTree Hotel San Jose |
|
505 |
|
|
90 |
|
Open |
Other U.S. |
|
48,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hyatt Regency Boston |
|
502 |
|
|
— |
|
Suspended |
Boston |
|
30,000 |
|
Fee Simple |
100% |
|
$ |
140 |
|
|
|
Waldorf Astoria Orlando |
|
502 |
|
|
— |
|
Suspended |
Orlando |
|
52,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hilton Salt Lake City Center |
|
499 |
|
|
499 |
|
Open |
Other U.S. |
|
24,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
DoubleTree Hotel Ontario Airport |
|
482 |
|
|
181 |
|
Open |
Southern California |
|
27,000 |
|
Fee Simple |
67% |
|
$ |
30 |
|
|
|
Hilton McLean Tysons Corner |
|
458 |
|
|
332 |
|
Open |
Washington, D.C. |
|
27,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hyatt Regency Mission Bay Spa and Marina |
|
438 |
|
|
— |
|
Suspended |
Southern California |
|
24,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
Boston Marriott Newton |
|
430 |
|
|
420 |
|
Open |
Boston |
|
34,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
W Chicago - City Center |
|
403 |
|
|
— |
|
Suspended |
Chicago |
|
13,000 |
|
Fee Simple |
100% |
|
$ |
78 |
|
|
|
Hilton Seattle Airport & Conference Center |
|
396 |
|
|
305 |
|
Open |
Seattle |
|
40,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
Royal Palm South Beach Miami, a Tribute Portfolio Resort |
|
393 |
|
|
— |
|
Suspended |
Miami |
|
11,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
DoubleTree Hotel Spokane City Center |
|
375 |
|
|
375 |
|
Open |
Other U.S. |
|
21,000 |
|
Fee Simple |
10% |
|
$ |
12 |
|
|
|
Hilton Santa Barbara Beachfront Resort |
|
360 |
|
|
63 |
|
Open |
Southern California |
|
40,000 |
|
Fee Simple |
50% |
|
$ |
165 |
|
|
|
Hilton Oakland Airport |
|
360 |
|
|
186 |
|
Open |
Other U.S. |
|
16,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
Le Meridien San Francisco |
|
360 |
|
|
— |
|
Suspended |
San Francisco |
|
13,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
JW Marriott San Francisco Union Square |
|
344 |
|
|
136 |
|
Open |
San Francisco |
|
12,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
Hyatt Centric Fisherman's Wharf |
|
316 |
|
|
143 |
|
Open |
San Francisco |
|
19,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hilton Short Hills |
|
314 |
|
|
— |
|
Suspended |
Other U.S. |
|
14,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Casa Marina, A Waldorf Astoria Resort |
|
311 |
|
|
— |
|
Suspended |
Key West |
|
23,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
DoubleTree Hotel San Diego – Mission Valley |
|
300 |
|
|
— |
|
Suspended |
Southern California |
|
24,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
(1) |
Single $725 million CMBS loan secured by Hilton San Francisco Union Square and Parc 55 San Francisco – a Hilton Hotel. |
18 | |
|
Hotel Name |
Total Rooms |
|
Rooms Available |
|
Operating Status |
Market |
Meeting Space (square feet) |
|
Ownership |
Equity Ownership |
|
Debt(1) (in millions) |
|
|
|||||
Consolidated Portfolio (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Embassy Suites Kansas City Plaza |
|
266 |
|
|
— |
|
Suspended |
Other U.S. |
|
11,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
Embassy Suites Austin Downtown South Congress |
|
262 |
|
|
— |
|
Suspended |
Other U.S. |
|
2,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
DoubleTree Hotel Sonoma Wine Country |
|
245 |
|
|
— |
|
Suspended |
Other U.S. |
|
50,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
Juniper Hotel Cupertino, Curio Collection |
|
224 |
|
|
— |
|
Suspended |
Other U.S. |
|
5,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hilton Chicago/Oak Brook Suites |
|
211 |
|
|
211 |
|
Open |
Chicago |
|
3,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hotel Indigo San Diego Gaslamp Quarter |
|
210 |
|
|
— |
|
Suspended |
Southern California |
|
6,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Courtyard Washington Capitol Hill/Navy Yard |
|
204 |
|
|
201 |
|
Open |
Washington, D.C. |
|
2,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Homewood Suites by Hilton Seattle Convention Center Pike Street |
|
195 |
|
|
70 |
|
Open |
Seattle |
|
1,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hilton Checkers Los Angeles |
|
193 |
|
|
— |
|
Suspended |
Southern California |
|
3,000 |
|
Fee Simple |
100% |
|
$ |
28 |
|
|
|
Embassy Suites Phoenix Airport |
|
182 |
|
|
— |
|
Suspended |
Other U.S. |
|
5,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
Hotel Adagio, Autograph Collection |
|
171 |
|
|
— |
|
Suspended |
San Francisco |
|
4,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hilton Garden Inn LAX/El Segundo |
|
162 |
|
|
— |
|
Suspended |
Southern California |
|
3,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
DoubleTree Hotel Durango |
|
159 |
|
|
— |
|
Suspended |
Other U.S. |
|
6,000 |
|
Leasehold |
100% |
|
|
— |
|
|
|
The Reach Key West, Curio Collection |
|
150 |
|
|
— |
|
Suspended |
Key West |
|
22,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hampton Inn & Suites Memphis – Shady Grove |
|
131 |
|
|
45 |
|
Open |
Other U.S. |
|
1,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Hilton Garden Inn Chicago/Oak Brook Terrace |
|
128 |
|
|
— |
|
Suspended |
Chicago |
|
2,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
W New Orleans - French Quarter |
|
97 |
|
|
— |
|
Suspended |
New Orleans |
|
1,000 |
|
Fee Simple |
100% |
|
|
— |
|
|
|
Total Consolidated Portfolio (53 Hotels) |
|
28,931 |
|
|
4,353 |
|
|
|
|
2,162,000 |
|
|
|
|
|
$ |
2,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unconsolidated Joint Venture Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hilton Orlando |
|
1,424 |
|
|
253 |
|
Open |
Orlando |
|
236,000 |
|
Fee Simple |
20% |
|
$ |
95 |
|
|
|
Hilton San Diego Bayfront |
|
1,190 |
|
|
— |
|
Suspended |
San Diego |
|
165,000 |
|
Leasehold |
25% |
|
$ |
55 |
|
|
|
Capital Hilton |
|
550 |
|
|
— |
|
Suspended |
Washington, D.C. |
|
30,000 |
|
Fee Simple |
25% |
|
$ |
25 |
|
|
|
Hilton La Jolla Torrey Pines |
|
394 |
|
|
53 |
|
Open |
Other U.S. |
|
41,000 |
|
Leasehold |
25% |
|
$ |
24 |
|
|
|
Embassy Suites Alexandria Old Town |
|
288 |
|
|
— |
|
Suspended |
Washington, D.C. |
|
7,000 |
|
Fee Simple |
50% |
|
$ |
26 |
|
|
|
Embassy Suites Secaucus Meadowlands |
|
261 |
|
|
261 |
|
Open |
Other U.S. |
|
1,000 |
|
Leasehold |
50% |
|
|
— |
|
|
|
DoubleTree Hotel Las Vegas Airport |
|
190 |
|
|
115 |
|
Open |
Other U.S. |
|
3,000 |
|
Fee Simple |
50% |
|
|
— |
|
|
|
Total Unconsolidated Joint Venture Portfolio |
|
4,297 |
|
|
682 |
|
|
|
|
483,000 |
|
|
|
|
|
$ |
225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL PARK HOTELS & RESORTS PORTFOLIO (60 Hotels) |
|
33,228 |
|
|
5,035 |
|
|
|
|
2,645,000 |
|
|
|
|
|
$ |
2,738 |
|
|
(1)Debt related to unconsolidated joint ventures is presented on a pro-rata basis.
19 | |
|
Portfolio and Operating Metrics (continued) |
||
|
||
Pro-forma Hotels by Market: Q1 2020 vs. Q1 2019 |
||
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Pro-forma ADR(1) |
|
|
Pro-forma Occupancy(1) |
|
Pro-forma RevPAR(1) |
|
|
Pro-forma Total RevPAR(1) |
|
||||||||||||||||||||||||||||||
|
|
Hotels |
|
|
Rooms |
|
|
1Q20 |
|
1Q19 |
|
Change(2) |
|
|
1Q20 |
|
1Q19 |
|
Change |
|
1Q20 |
|
1Q19 |
|
Change(2) |
|
|
1Q20 |
|
1Q19 |
|
Change(2) |
|
||||||||||||||||
Hawaii |
|
|
2 |
|
|
|
3,507 |
|
|
$ |
261.58 |
|
$ |
255.24 |
|
|
2.5 |
% |
|
|
77.1 |
% |
|
90.1 |
% |
|
(13.0 |
)% |
pts |
|
$ |
201.75 |
|
$ |
229.88 |
|
|
(12.2 |
)% |
|
$ |
351.30 |
|
$ |
389.68 |
|
|
(9.8 |
)% |
San Francisco |
|
|
6 |
|
|
|
4,136 |
|
|
|
313.97 |
|
|
325.68 |
|
|
(3.6 |
) |
|
|
61.8 |
|
|
88.1 |
|
|
(26.3 |
) |
|
|
|
194.10 |
|
|
287.09 |
|
|
(32.4 |
) |
|
|
265.08 |
|
|
371.20 |
|
|
(28.6 |
) |
Orlando |
|
|
3 |
|
|
|
2,325 |
|
|
|
243.63 |
|
|
230.25 |
|
|
5.8 |
|
|
|
64.1 |
|
|
86.1 |
|
|
(22.0 |
) |
|
|
|
156.23 |
|
|
198.33 |
|
|
(21.2 |
) |
|
|
332.19 |
|
|
414.25 |
|
|
(19.8 |
) |
New Orleans |
|
|
2 |
|
|
|
1,719 |
|
|
|
217.74 |
|
|
218.14 |
|
|
(0.2 |
) |
|
|
54.5 |
|
|
76.5 |
|
|
(22.0 |
) |
|
|
|
118.75 |
|
|
166.99 |
|
|
(28.9 |
) |
|
|
209.42 |
|
|
287.35 |
|
|
(27.1 |
) |
Boston |
|
|
3 |
|
|
|
1,536 |
|
|
|
164.25 |
|
|
180.14 |
|
|
(8.8 |
) |
|
|
61.4 |
|
|
76.6 |
|
|
(15.2 |
) |
|
|
|
100.81 |
|
|
138.01 |
|
|
(27.0 |
) |
|
|
146.87 |
|
|
198.10 |
|
|
(25.9 |
) |
New York |
|
|
1 |
|
|
|
1,878 |
|
|
|
207.00 |
|
|
227.91 |
|
|
(9.2 |
) |
|
|
61.1 |
|
|
79.1 |
|
|
(18.0 |
) |
|
|
|
126.53 |
|
|
180.26 |
|
|
(29.8 |
) |
|
|
228.72 |
|
|
308.07 |
|
|
(25.8 |
) |
Southern California |
|
|
7 |
|
|
|
2,145 |
|
|
|
175.65 |
|
|
176.65 |
|
|
(0.6 |
) |
|
|
67.6 |
|
|
82.2 |
|
|
(14.6 |
) |
|
|
|
118.69 |
|
|
145.19 |
|
|
(18.3 |
) |
|
|
183.96 |
|
|
225.14 |
|
|
(18.3 |
) |
Chicago |
|
|
5 |
|
|
|
2,806 |
|
|
|
140.73 |
|
|
139.81 |
|
|
0.7 |
|
|
|
39.3 |
|
|
55.3 |
|
|
(16.0 |
) |
|
|
|
55.31 |
|
|
77.26 |
|
|
(28.4 |
) |
|
|
95.72 |
|
|
134.03 |
|
|
(28.6 |
) |
Key West |
|
|
2 |
|
|
|
461 |
|
|
|
476.09 |
|
|
464.03 |
|
|
2.6 |
|
|
|
74.8 |
|
|
90.7 |
|
|
(15.9 |
) |
|
|
|
355.88 |
|
|
420.58 |
|
|
(15.4 |
) |
|
|
519.95 |
|
|
597.85 |
|
|
(13.0 |
) |
Denver |
|
|
1 |
|
|
|
613 |
|
|
|
156.59 |
|
|
163.18 |
|
|
(4.0 |
) |
|
|
61.2 |
|
|
74.6 |
|
|
(13.4 |
) |
|
|
|
95.87 |
|
|
121.82 |
|
|
(21.3 |
) |
|
|
147.97 |
|
|
187.77 |
|
|
(21.2 |
) |
Miami |
|
|
2 |
|
|
|
901 |
|
|
|
243.45 |
|
|
237.08 |
|
|
2.7 |
|
|
|
75.2 |
|
|
90.9 |
|
|
(15.7 |
) |
|
|
|
183.13 |
|
|
215.47 |
|
|
(15.0 |
) |
|
|
246.05 |
|
|
292.73 |
|
|
(15.9 |
) |
Washington, D.C. |
|
|
3 |
|
|
|
1,289 |
|
|
|
159.14 |
|
|
162.85 |
|
|
(2.3 |
) |
|
|
54.5 |
|
|
69.0 |
|
|
(14.5 |
) |
|
|
|
86.71 |
|
|
112.41 |
|
|
(22.9 |
) |
|
|
126.83 |
|
|
161.22 |
|
|
(21.3 |
) |
Seattle |
|
|
3 |
|
|
|
1,441 |
|
|
|
129.96 |
|
|
140.79 |
|
|
(7.7 |
) |
|
|
62.2 |
|
|
76.5 |
|
|
(14.3 |
) |
|
|
|
80.81 |
|
|
107.63 |
|
|
(24.9 |
) |
|
|
119.05 |
|
|
155.36 |
|
|
(23.4 |
) |
Other |
|
|
13 |
|
|
|
4,174 |
|
|
|
177.28 |
|
|
182.83 |
|
|
(3.0 |
) |
|
|
60.3 |
|
|
63.2 |
|
|
(2.9 |
) |
|
|
|
106.95 |
|
|
115.56 |
|
|
(7.5 |
) |
|
|
154.68 |
|
|
169.32 |
|
|
(8.6 |
) |
All Markets |
|
|
53 |
|
|
|
28,931 |
|
|
$ |
220.90 |
|
$ |
226.46 |
|
|
(2.5 |
)% |
|
|
61.7 |
% |
|
77.7 |
% |
|
(16.0 |
)% |
pts |
|
$ |
136.27 |
|
$ |
175.97 |
|
|
(22.6 |
)% |
|
$ |
218.17 |
|
$ |
273.27 |
|
|
(20.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Assumes hotels were acquired on January 1, 2019. |
|
(2) |
Calculated based on unrounded numbers. |
20 | |
|
|
Portfolio and Operating Metrics (continued) |
|
|
|
|
|
Pro-forma Hotels by Market: Q1 2020 vs. Q1 2019 |
|
|
|
|
(unaudited, dollars in millions) |
|
|
|
|
|
|
Pro-forma Hotel Adjusted EBITDA(1) |
|
|
Pro-forma Hotel Revenue(1) |
|
|
Pro-forma Hotel Adjusted EBITDA Margin(1) |
||||||||||||||||||||||||||
|
|
Hotels |
|
|
Rooms |
|
|
1Q20 |
|
1Q19 |
|
Change(2) |
|
|
1Q20 |
|
1Q19 |
|
Change(2) |
|
|
1Q20 |
|
1Q19 |
|
Change |
|||||||||||||
Hawaii |
|
|
2 |
|
|
|
3,507 |
|
|
$ |
34 |
|
$ |
51 |
|
|
(33.1 |
)% |
|
$ |
112 |
|
$ |
139 |
|
|
(19.5 |
)% |
|
|
30.3 |
% |
|
36.5 |
% |
|
(620 |
) |
bps |
San Francisco |
|
|
6 |
|
|
|
4,136 |
|
|
|
21 |
|
|
48 |
|
|
(56.7 |
) |
|
|
100 |
|
$ |
138 |
|
|
(27.8 |
) |
|
|
21.0 |
|
|
35.0 |
|
|
(1,400 |
) |
|
Orlando |
|
|
3 |
|
|
|
2,325 |
|
|
|
22 |
|
|
35 |
|
|
(37.8 |
) |
|
|
70 |
|
$ |
87 |
|
|
(18.9 |
) |
|
|
30.7 |
|
|
40.0 |
|
|
(930 |
) |
|
New Orleans |
|
|
2 |
|
|
|
1,719 |
|
|
|
10 |
|
|
18 |
|
|
(46.4 |
) |
|
|
33 |
|
$ |
44 |
|
|
(26.3 |
) |
|
|
29.8 |
|
|
41.0 |
|
|
(1,120 |
) |
|
Boston |
|
|
3 |
|
|
|
1,536 |
|
|
|
1 |
|
|
5 |
|
|
(83.9 |
) |
|
|
21 |
|
$ |
27 |
|
|
(24.8 |
) |
|
|
4.2 |
|
|
19.7 |
|
|
(1,550 |
) |
|
New York |
|
|
1 |
|
|
|
1,878 |
|
|
|
(16 |
) |
|
(2 |
) |
|
(639.8 |
) |
|
|
39 |
|
$ |
52 |
|
|
(24.9 |
) |
|
|
(40.2 |
) |
|
(4.1 |
) |
|
(3,610 |
) |
|
Southern California |
|
|
7 |
|
|
|
2,145 |
|
|
|
7 |
|
|
12 |
|
|
(42.2 |
) |
|
|
36 |
|
$ |
44 |
|
|
(17.2 |
) |
|
|
19.3 |
|
|
27.6 |
|
|
(830 |
) |
|
Chicago |
|
|
5 |
|
|
|
2,806 |
|
|
|
(11 |
) |
|
(5 |
) |
|
(109.3 |
) |
|
|
24 |
|
$ |
34 |
|
|
(27.8 |
) |
|
|
(46.9 |
) |
|
(16.2 |
) |
|
(3,070 |
) |
|
Key West |
|
|
2 |
|
|
|
461 |
|
|
|
8 |
|
|
11 |
|
|
(27.6 |
) |
|
|
22 |
|
$ |
25 |
|
|
(12.1 |
) |
|
|
37.6 |
|
|
45.7 |
|
|
(810 |
) |
|
Denver |
|
|
1 |
|
|
|
613 |
|
|
|
2 |
|
|
4 |
|
|
(54.7 |
) |
|
|
8 |
|
$ |
10 |
|
|
(20.3 |
) |
|
|
19.4 |
|
|
34.1 |
|
|
(1,470 |
) |
|
Miami |
|
|
2 |
|
|
|
901 |
|
|
|
8 |
|
|
11 |
|
|
(24.1 |
) |
|
|
20 |
|
$ |
24 |
|
|
(15.0 |
) |
|
|
41.5 |
|
|
46.5 |
|
|
(500 |
) |
|
Washington, D.C. |
|
|
3 |
|
|
|
1,289 |
|
|
|
— |
|
|
3 |
|
|
(88.6 |
) |
|
|
15 |
|
$ |
19 |
|
|
(20.5 |
) |
|
|
2.3 |
|
|
16.2 |
|
|
(1,390 |
) |
|
Seattle |
|
|
3 |
|
|
|
1,441 |
|
|
|
— |
|
|
3 |
|
|
(98.8 |
) |
|
|
16 |
|
$ |
20 |
|
|
(22.5 |
) |
|
|
0.2 |
|
|
15.4 |
|
|
(1,520 |
) |
|
Other |
|
|
13 |
|
|
|
4,174 |
|
|
|
4 |
|
|
12 |
|
|
(53.2 |
) |
|
|
58 |
|
$ |
60 |
|
|
(1.7 |
) |
|
|
7.0 |
|
|
19.3 |
|
|
(1,230 |
) |
|
All Markets |
|
|
53 |
|
|
|
28,931 |
|
|
$ |
90 |
|
$ |
206 |
|
|
(56.4 |
)% |
|
$ |
574 |
|
$ |
723 |
|
|
(20.5 |
)% |
|
|
15.6 |
% |
|
28.4 |
% |
|
(1,280 |
) |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Assumes hotels were acquired on January 1, 2019. |
|
(2) |
Calculated based on unrounded numbers. |
21 | |
|
|
Portfolio and Operating Metrics (continued) |
|
|
|
|
|
Core Hotels: Q1 2020 vs. Q1 2019 |
|
|
|
|
|
(unaudited) |
|
ADR |
|
|
Occupancy |
|
RevPAR |
|
|
|
Total RevPAR |
|
||||||||||||||||||||||||||||||
|
|
|
1Q20 |
|
1Q19 |
|
Change(1) |
|
|
1Q20 |
|
1Q19 |
|
Change |
|
1Q20 |
|
1Q19 |
|
Change(1) |
|
1Q20 |
|
1Q19 |
|
Change(1) |
|
||||||||||||||||
|
Core Hotels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Hilton Hawaiian Village Waikiki Beach Resort |
|
$ |
260.12 |
|
$ |
260.34 |
|
|
(0.1 |
)% |
|
|
76.4 |
% |
|
92.5 |
% |
|
(16.1 |
)% |
pts |
|
$ |
198.86 |
|
$ |
240.99 |
|
|
(17.5 |
)% |
|
|
$ |
323.38 |
|
$ |
386.99 |
|
|
(16.4 |
)% |
2 |
Hilton Waikoloa Village |
|
|
267.75 |
|
|
240.69 |
|
|
11.2 |
|
|
|
80.1 |
|
|
83.6 |
|
|
(3.5 |
) |
|
|
|
214.52 |
|
|
201.24 |
|
|
6.6 |
|
|
|
|
474.69 |
|
|
396.59 |
|
|
19.7 |
|
3 |
Hilton San Francisco Union Square |
|
|
307.84 |
|
|
320.01 |
|
|
(3.8 |
) |
|
|
59.1 |
|
|
85.0 |
|
|
(25.9 |
) |
|
|
|
181.85 |
|
|
271.96 |
|
|
(33.1 |
) |
|
|
|
277.93 |
|
|
383.65 |
|
|
(27.6 |
) |
4 |
Parc 55 San Francisco - a Hilton Hotel |
|
|
290.78 |
|
|
309.13 |
|
|
(5.9 |
) |
|
|
60.7 |
|
|
87.7 |
|
|
(27.0 |
) |
|
|
|
176.36 |
|
|
270.94 |
|
|
(34.9 |
) |
|
|
|
209.06 |
|
|
308.89 |
|
|
(32.3 |
) |
5 |
Le Meridien San Francisco |
|
|
349.46 |
|
|
357.60 |
|
|
(2.3 |
) |
|
|
67.6 |
|
|
93.0 |
|
|
(25.4 |
) |
|
|
|
236.34 |
|
|
332.61 |
|
|
(28.9 |
) |
|
|
|
292.12 |
|
|
398.36 |
|
|
(26.7 |
) |
6 |
JW Marriott San Francisco Union Square |
|
|
441.71 |
|
|
424.88 |
|
|
4.0 |
|
|
|
67.1 |
|
|
92.4 |
|
|
(25.3 |
) |
|
|
|
296.34 |
|
|
392.35 |
|
|
(24.5 |
) |
|
|
|
399.05 |
|
|
522.54 |
|
|
(23.6 |
) |
7 |
Hyatt Centric Fisherman's Wharf |
|
|
231.67 |
|
|
256.98 |
|
|
(9.9 |
) |
|
|
68.2 |
|
|
97.4 |
|
|
(29.2 |
) |
|
|
|
158.03 |
|
|
250.28 |
|
|
(36.9 |
) |
|
|
|
205.26 |
|
|
316.31 |
|
|
(35.1 |
) |
8 |
Hotel Adagio, Autograph Collection |
|
|
322.84 |
|
|
345.32 |
|
|
(6.5 |
) |
|
|
65.0 |
|
|
90.9 |
|
|
(25.9 |
) |
|
|
|
210.00 |
|
|
314.17 |
|
|
(33.2 |
) |
|
|
|
240.45 |
|
|
344.40 |
|
|
(30.2 |
) |
9 |
Hilton Orlando Bonnet Creek |
|
|
232.21 |
|
|
223.66 |
|
|
3.8 |
|
|
|
62.7 |
|
|
85.4 |
|
|
(22.7 |
) |
|
|
|
145.64 |
|
|
191.00 |
|
|
(23.7 |
) |
|
|
|
355.59 |
|
|
457.91 |
|
|
(22.3 |
) |
10 |
Waldorf Astoria Orlando |
|
|
366.88 |
|
|
334.46 |
|
|
9.7 |
|
|
|
59.3 |
|
|
78.3 |
|
|
(19.0 |
) |
|
|
|
217.42 |
|
|
261.81 |
|
|
(17.0 |
) |
|
|
|
425.08 |
|
|
514.18 |
|
|
(17.3 |
) |
11 |
Hilton Orlando Lake Buena Vista |
|
|
191.10 |
|
|
183.10 |
|
|
4.4 |
|
|
|
68.9 |
|
|
91.9 |
|
|
(23.0 |
) |
|
|
|
131.61 |
|
|
168.26 |
|
|
(21.8 |
) |
|
|
|
245.88 |
|
|
298.51 |
|
|
(17.6 |
) |
12 |
Hilton New Orleans Riverside |
|
|
214.19 |
|
|
215.74 |
|
|
(0.7 |
) |
|
|
54.1 |
|
|
76.1 |
|
|
(22.0 |
) |
|
|
|
115.80 |
|
|
164.10 |
|
|
(29.4 |
) |
|
|
|
206.79 |
|
|
285.74 |
|
|
(27.6 |
) |
13 |
Hyatt Regency Boston |
|
|
158.02 |
|
|
175.14 |
|
|
(9.8 |
) |
|
|
70.3 |
|
|
91.3 |
|
|
(21.0 |
) |
|
|
|
111.14 |
|
|
159.91 |
|
|
(30.5 |
) |
|
|
|
152.26 |
|
|
212.83 |
|
|
(28.5 |
) |
14 |
Hilton Boston Logan Airport |
|
|
169.07 |
|
|
194.42 |
|
|
(13.0 |
) |
|
|
66.1 |
|
|
77.5 |
|
|
(11.4 |
) |
|
|
|
111.78 |
|
|
150.65 |
|
|
(25.8 |
) |
|
|
|
155.05 |
|
|
208.12 |
|
|
(25.5 |
) |
15 |
Boston Marriott Newton |
|
|
165.71 |
|
|
162.79 |
|
|
1.8 |
|
|
|
44.3 |
|
|
58.3 |
|
|
(14.0 |
) |
|
|
|
73.34 |
|
|
94.79 |
|
|
(22.6 |
) |
|
|
|
129.09 |
|
|
166.94 |
|
|
(22.7 |
) |
16 |
New York Hilton Midtown |
|
|
207.00 |
|
|
227.91 |
|
|
(9.2 |
) |
|
|
61.1 |
|
|
79.1 |
|
|
(18.0 |
) |
|
|
|
126.53 |
|
|
180.26 |
|
|
(29.8 |
) |
|
|
|
228.72 |
|
|
308.07 |
|
|
(25.8 |
) |
17 |
Hilton Santa Barbara Beachfront Resort |
|
|
237.70 |
|
|
233.48 |
|
|
1.8 |
|
|
|
60.6 |
|
|
75.8 |
|
|
(15.2 |
) |
|
|
|
144.16 |
|
|
177.14 |
|
|
(18.6 |
) |
|
|
|
245.92 |
|
|
294.11 |
|
|
(16.4 |
) |
18 |
Hyatt Regency Mission Bay Spa and Marina |
|
|
168.64 |
|
|
164.08 |
|
|
2.8 |
|
|
|
57.4 |
|
|
73.5 |
|
|
(16.1 |
) |
|
|
|
96.72 |
|
|
120.45 |
|
|
(19.7 |
) |
|
|
|
191.98 |
|
|
239.05 |
|
|
(19.7 |
) |
19 |
Hotel Indigo San Diego Gaslamp Quarter |
|
|
194.57 |
|
|
199.27 |
|
|
(2.4 |
) |
|
|
73.5 |
|
|
85.9 |
|
|
(12.4 |
) |
|
|
|
142.92 |
|
|
171.01 |
|
|
(16.4 |
) |
|
|
|
173.02 |
|
|
202.07 |
|
|
(14.4 |
) |
20 |
Hilton Checkers Los Angeles |
|
|
230.85 |
|
|
231.69 |
|
|
(0.4 |
) |
|
|
65.6 |
|
|
76.2 |
|
|
(10.6 |
) |
|
|
|
151.44 |
|
|
176.49 |
|
|
(14.2 |
) |
|
|
|
176.55 |
|
|
202.45 |
|
|
(12.8 |
) |
21 |
Hilton Chicago |
|
|
129.22 |
|
|
138.29 |
|
|
(6.6 |
) |
|
|
37.2 |
|
|
54.8 |
|
|
(17.6 |
) |
|
|
|
48.03 |
|
|
75.72 |
|
|
(36.6 |
) |
|
|
|
107.92 |
|
|
158.86 |
|
|
(32.1 |
) |
22 |
W Chicago - City Center |
|
|
211.19 |
|
|
190.17 |
|
|
11.1 |
|
|
|
45.5 |
|
|
58.4 |
|
|
(12.9 |
) |
|
|
|
96.20 |
|
|
111.19 |
|
|
(13.5 |
) |
|
|
|
119.94 |
|
|
147.51 |
|
|
(18.7 |
) |
23 |
W Chicago - Lakeshore |
|
|
137.36 |
|
|
124.84 |
|
|
10.0 |
|
|
|
34.6 |
|
|
45.8 |
|
|
(11.2 |
) |
|
|
|
47.55 |
|
|
57.15 |
|
|
(16.8 |
) |
|
|
|
60.67 |
|
|
76.89 |
|
|
(21.1 |
) |
24 |
Casa Marina, A Waldorf Astoria Resort |
|
|
499.01 |
|
|
476.63 |
|
|
4.7 |
|
|
|
74.9 |
|
|
91.5 |
|
|
(16.6 |
) |
|
|
|
373.54 |
|
|
436.07 |
|
|
(14.3 |
) |
|
|
|
550.34 |
|
|
625.86 |
|
|
(12.1 |
) |
25 |
The Reach Key West, Curio Collection |
|
|
428.35 |
|
|
437.15 |
|
|
(2.0 |
) |
|
|
74.5 |
|
|
88.8 |
|
|
(14.3 |
) |
|
|
|
319.27 |
|
|
388.48 |
|
|
(17.8 |
) |
|
|
|
456.93 |
|
|
539.76 |
|
|
(15.3 |
) |
26 |
Hilton Denver City Center |
|
|
156.59 |
|
|
163.18 |
|
|
(4.0 |
) |
|
|
61.2 |
|
|
74.6 |
|
|
(13.4 |
) |
|
|
|
95.87 |
|
|
121.82 |
|
|
(21.3 |
) |
|
|
|
147.97 |
|
|
187.77 |
|
|
(21.2 |
) |
27 |
Royal Palm South Beach Miami |
|
|
295.51 |
|
|
276.66 |
|
|
6.8 |
|
|
|
78.4 |
|
|
96.9 |
|
|
(18.5 |
) |
|
|
|
231.58 |
|
|
268.03 |
|
|
(13.6 |
) |
|
|
|
308.60 |
|
|
356.46 |
|
|
(13.4 |
) |
28 |
DoubleTree Hotel Washington DC – Crystal City |
|
|
143.86 |
|
|
150.08 |
|
|
(4.1 |
) |
|
|
48.6 |
|
|
62.4 |
|
|
(13.8 |
) |
|
|
|
69.86 |
|
|
93.66 |
|
|
(25.4 |
) |
|
|
|
90.55 |
|
|
127.73 |
|
|
(29.1 |
) |
29 |
DoubleTree Hotel San Jose |
|
|
206.85 |
|
|
231.69 |
|
|
(10.7 |
) |
|
|
63.6 |
|
|
83.4 |
|
|
(19.8 |
) |
|
|
|
131.50 |
|
|
193.12 |
|
|
(31.9 |
) |
|
|
|
203.38 |
|
|
274.48 |
|
|
(25.9 |
) |
30 |
Juniper Hotel Cupertino, Curio Collection |
|
|
248.07 |
|
|
272.68 |
|
|
(9.0 |
) |
|
|
57.8 |
|
|
79.9 |
|
|
(22.1 |
) |
|
|
|
143.40 |
|
|
217.82 |
|
|
(34.2 |
) |
|
|
|
175.92 |
|
|
257.62 |
|
|
(31.7 |
) |
|
Sub-total Core Hotels |
|
$ |
242.68 |
|
$ |
246.20 |
|
|
(1.4 |
)% |
|
|
61.4 |
% |
|
80.2 |
% |
|
(18.8 |
)% |
pts |
|
$ |
148.93 |
|
$ |
197.43 |
|
|
(24.6 |
)% |
|
|
$ |
243.38 |
|
$ |
311.35 |
|
|
(21.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other Hotels |
|
$ |
159.19 |
|
$ |
160.04 |
|
|
(0.5 |
)% |
|
|
62.6 |
% |
|
70.3 |
% |
|
(7.7 |
)% |
pts |
|
$ |
99.68 |
|
$ |
112.58 |
|
|
(11.5 |
)% |
|
|
$ |
145.30 |
|
$ |
160.84 |
|
|
(9.7 |
)% |
|
Total Consolidated Portfolio(2) |
|
$ |
220.90 |
|
$ |
226.46 |
|
|
(2.5 |
)% |
|
|
61.7 |
% |
|
77.7 |
% |
|
(16.0 |
)% |
pts |
|
$ |
136.27 |
|
$ |
175.97 |
|
|
(22.6 |
)% |
|
|
$ |
218.17 |
|
$ |
273.27 |
|
|
(20.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Calculated based on unrounded numbers. |
|
(2) |
Assumes hotels were acquired on January 1, 2019. |
22 | |
|
|
Portfolio and Operating Metrics (continued) |
|
|
|
|
|
Core Hotels: Q1 2020 vs. Q1 2019 |
|
|
|
|
|
(unaudited, dollars in millions) |
|
Hotel Adjusted EBITDA |
|
|
Hotel Revenue |
|
|
Hotel Adjusted EBITDA Margin |
|
|
|||||||||||||||||||||
|
|
|
1Q20 |
|
1Q19 |
|
Change(1) |
|
|
1Q20 |
|
1Q19 |
|
Change(1) |
|
|
1Q20 |
|
1Q19 |
|
Change |
|||||||||||
|
Core Hotels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Hilton Hawaiian Village Waikiki Beach Resort |
|
$ |
28 |
|
$ |
39 |
|
|
(29.1 |
)% |
|
$ |
84 |
|
$ |
100 |
|
|
(15.5 |
)% |
|
|
32.5 |
% |
|
38.7 |
% |
|
(620 |
) |
bps |
2 |
Hilton Waikoloa Village |
|
|
7 |
|
|
12 |
|
|
(45.9 |
) |
|
|
28 |
|
|
40 |
|
|
(29.5 |
) |
|
|
23.7 |
|
|
30.9 |
|
|
(720 |
) |
|
3 |
Hilton San Francisco Union Square |
|
|
10 |
|
|
22 |
|
|
(57.9 |
) |
|
|
49 |
|
|
66 |
|
|
(26.8 |
) |
|
|
19.8 |
|
|
34.5 |
|
|
(1,470 |
) |
|
4 |
Parc 55 San Francisco - a Hilton Hotel |
|
|
3 |
|
|
10 |
|
|
(66.7 |
) |
|
|
19 |
|
|
28 |
|
|
(31.6 |
) |
|
|
17.1 |
|
|
35.1 |
|
|
(1,800 |
) |
|
5 |
Le Meridien San Francisco |
|
|
3 |
|
|
5 |
|
|
(42.3 |
) |
|
|
10 |
|
|
13 |
|
|
(25.9 |
) |
|
|
30.4 |
|
|
39.1 |
|
|
(870 |
) |
|
6 |
JW Marriott San Francisco Union Square |
|
|
4 |
|
|
5 |
|
|
(36.0 |
) |
|
|
12 |
|
|
16 |
|
|
(22.8 |
) |
|
|
28.0 |
|
|
33.8 |
|
|
(580 |
) |
|
7 |
Hyatt Centric Fisherman's Wharf |
|
|
— |
|
|
3 |
|
|
(81.7 |
) |
|
|
6 |
|
|
9 |
|
|
(34.4 |
) |
|
|
8.3 |
|
|
29.7 |
|
|
(2,140 |
) |
|
8 |
Hotel Adagio, Autograph Collection |
|
|
1 |
|
|
2 |
|
|
(53.7 |
) |
|
|
4 |
|
|
5 |
|
|
(29.4 |
) |
|
|
29.4 |
|
|
44.9 |
|
|
(1,550 |
) |
|
9 |
Hilton Orlando Bonnet Creek |
|
|
11 |
|
|
17 |
|
|
(37.1 |
) |
|
|
33 |
|
|
42 |
|
|
(21.5 |
) |
|
|
34.2 |
|
|
42.7 |
|
|
(850 |
) |
|
10 |
Waldorf Astoria Orlando |
|
|
5 |
|
|
9 |
|
|
(39.8 |
) |
|
|
19 |
|
|
23 |
|
|
(16.4 |
) |
|
|
26.6 |
|
|
36.9 |
|
|
(1,030 |
) |
|
11 |
Hilton Orlando Lake Buena Vista |
|
|
5 |
|
|
8 |
|
|
(37.1 |
) |
|
|
18 |
|
|
22 |
|
|
(16.7 |
) |
|
|
28.5 |
|
|
37.8 |
|
|
(930 |
) |
|
12 |
Hilton New Orleans Riverside |
|
|
10 |
|
|
17 |
|
|
(45.7 |
) |
|
|
31 |
|
|
42 |
|
|
(26.8 |
) |
|
|
31.3 |
|
|
42.2 |
|
|
(1,090 |
) |
|
13 |
Hyatt Regency Boston |
|
|
1 |
|
|
3 |
|
|
(78.6 |
) |
|
|
7 |
|
|
10 |
|
|
(27.7 |
) |
|
|
8.2 |
|
|
27.8 |
|
|
(1,960 |
) |
|
14 |
Hilton Boston Logan Airport |
|
|
— |
|
|
2 |
|
|
(97.0 |
) |
|
|
9 |
|
|
11 |
|
|
(24.2 |
) |
|
|
0.6 |
|
|
15.2 |
|
|
(1,460 |
) |
|
15 |
Boston Marriott Newton |
|
|
— |
|
|
1 |
|
|
(75.8 |
) |
|
|
5 |
|
|
6 |
|
|
(21.8 |
) |
|
|
4.8 |
|
|
15.5 |
|
|
(1,070 |
) |
|
16 |
New York Hilton Midtown |
|
|
(16 |
) |
|
(2 |
) |
|
(639.8 |
) |
|
|
39 |
|
|
52 |
|
|
(24.9 |
) |
|
|
(40.2 |
) |
|
(4.1 |
) |
|
(3,610 |
) |
|
17 |
Hilton Santa Barbara Beachfront Resort |
|
|
2 |
|
|
3 |
|
|
(28.7 |
) |
|
|
8 |
|
|
10 |
|
|
(15.5 |
) |
|
|
28.1 |
|
|
33.3 |
|
|
(520 |
) |
|
18 |
Hyatt Regency Mission Bay Spa and Marina |
|
|
— |
|
|
1 |
|
|
(68.8 |
) |
|
|
8 |
|
|
9 |
|
|
(18.0 |
) |
|
|
5.6 |
|
|
14.8 |
|
|
(920 |
) |
|
19 |
Hotel Indigo San Diego Gaslamp Quarter |
|
|
1 |
|
|
2 |
|
|
(23.5 |
) |
|
|
3 |
|
|
4 |
|
|
(13.4 |
) |
|
|
36.2 |
|
|
41.0 |
|
|
(480 |
) |
|
20 |
Hilton Checkers Los Angeles |
|
|
1 |
|
|
1 |
|
|
(29.6 |
) |
|
|
3 |
|
|
4 |
|
|
(11.8 |
) |
|
|
21.9 |
|
|
27.5 |
|
|
(560 |
) |
|
21 |
Hilton Chicago |
|
|
(8 |
) |
|
(3 |
) |
|
(143.4 |
) |
|
|
15 |
|
|
22 |
|
|
(31.3 |
) |
|
|
(51.2 |
) |
|
(14.4 |
) |
|
(3,680 |
) |
|
22 |
W Chicago - City Center |
|
|
(1 |
) |
|
— |
|
|
(74.6 |
) |
|
|
4 |
|
|
5 |
|
|
(17.8 |
) |
|
|
(17.6 |
) |
|
(8.3 |
) |
|
(930 |
) |
|
23 |
W Chicago - Lakeshore |
|
|
(3 |
) |
|
(2 |
) |
|
(18.3 |
) |
|
|
3 |
|
|
4 |
|
|
(20.2 |
) |
|
|
(94.8 |
) |
|
(63.9 |
) |
|
(3,090 |
) |
|
24 |
Casa Marina, A Waldorf Astoria Resort |
|
|
6 |
|
|
8 |
|
|
(21.5 |
) |
|
|
16 |
|
|
18 |
|
|
(11.1 |
) |
|
|
40.2 |
|
|
45.5 |
|
|
(530 |
) |
|
25 |
The Reach Key West, Curio Collection |
|
|
2 |
|
|
3 |
|
|
(42.3 |
) |
|
|
6 |
|
|
7 |
|
|
(14.4 |
) |
|
|
30.9 |
|
|
45.8 |
|
|
(1,490 |
) |
|
26 |
Hilton Denver City Center |
|
|
2 |
|
|
4 |
|
|
(54.7 |
) |
|
|
8 |
|
|
10 |
|
|
(20.3 |
) |
|
|
19.4 |
|
|
34.1 |
|
|
(1,470 |
) |
|
27 |
Royal Palm South Beach Miami |
|
|
5 |
|
|
6 |
|
|
(17.2 |
) |
|
|
11 |
|
|
13 |
|
|
(12.5 |
) |
|
|
46.7 |
|
|
49.4 |
|
|
(270 |
) |
|
28 |
DoubleTree Hotel Washington DC – Crystal City |
|
|
(1 |
) |
|
1 |
|
|
(234.6 |
) |
|
|
5 |
|
|
7 |
|
|
(28.3 |
) |
|
|
(14.0 |
) |
|
7.4 |
|
|
(2,140 |
) |
|
29 |
DoubleTree Hotel San Jose |
|
|
2 |
|
|
4 |
|
|
(52.6 |
) |
|
|
9 |
|
|
12 |
|
|
(25.1 |
) |
|
|
18.9 |
|
|
29.9 |
|
|
(1,100 |
) |
|
30 |
Juniper Hotel Cupertino, Curio Collection |
|
|
1 |
|
|
2 |
|
|
(62.1 |
) |
|
|
4 |
|
|
5 |
|
|
(31.0 |
) |
|
|
20.7 |
|
|
37.8 |
|
|
(1,710 |
) |
|
|
Sub-total Core Hotels |
|
$ |
81 |
|
$ |
183 |
|
|
(55.6 |
)% |
|
$ |
476 |
|
$ |
615 |
|
|
(22.6 |
)% |
|
|
17.1 |
% |
|
29.8 |
% |
|
(1,270 |
) |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other Hotels |
|
$ |
9 |
|
$ |
23 |
|
|
(62.6 |
)% |
|
$ |
98 |
|
$ |
108 |
|
|
(8.6 |
)% |
|
|
8.5 |
% |
|
20.7 |
% |
|
(1,220 |
) |
bps |
|
Total Consolidated Portfolio(2) |
|
$ |
90 |
|
$ |
206 |
|
|
(56.4 |
)% |
|
$ |
574 |
|
$ |
723 |
|
|
(20.5 |
)% |
|
|
15.6 |
% |
|
28.4 |
% |
|
(1,280 |
) |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Calculated based on unrounded numbers. |
|
(2) |
Assumes hotels were acquired on January 1, 2019. |
23 | |
|
Acquisitions & W New Orleans French Quarter
24 | |
|
|
Properties Acquired and Sold |
|
|
|
|
|
Properties Acquired |
|
|
|
|
|
|
|
|
|
|
|
Hotel |
|
Location |
|
Room Count |
|
|
|
|
|
|
|
|
|
Chesapeake Lodging Trust Acquisition (1) |
|
|
|
|
|
|
Hilton Denver City Center |
|
Denver, CO |
|
613 |
|
|
W Chicago – Lakeshore |
|
Chicago, IL |
|
520 |
|
|
Hyatt Regency Boston |
|
Boston, MA |
|
502 |
|
|
Hyatt Regency Mission Bay Spa and Marina |
|
San Diego, CA |
|
438 |
|
|
Boston Marriott Newton |
|
Newton, MA |
|
430 |
|
|
Le Meridien New Orleans(2) |
|
New Orleans, LA |
|
410 |
|
|
W Chicago – City Center |
|
Chicago, IL |
|
403 |
|
|
Royal Palm South Beach Miami, a Tribute Portfolio Resort |
|
Miami Beach, FL |
|
393 |
|
|
Le Meridien San Francisco |
|
San Francisco, CA |
|
360 |
|
|
JW Marriott San Francisco Union Square |
|
San Francisco, CA |
|
344 |
|
|
Hyatt Centric Fisherman’s Wharf |
|
San Francisco, CA |
|
316 |
|
|
Hotel Indigo San Diego Gaslamp Quarter |
|
San Diego, CA |
|
210 |
|
|
Courtyard Washington Capitol Hill/Navy Yard |
|
Washington, DC |
|
204 |
|
|
Homewood Suites by Hilton Seattle Convention Center Pike Street |
|
Seattle, WA |
|
195 |
|
|
Hilton Checkers Los Angeles |
|
Los Angeles, CA |
|
193 |
|
|
Ace Hotel Downtown Los Angeles(2) |
|
Los Angeles, CA |
|
182 |
|
|
Hotel Adagio, Autograph Collection |
|
San Francisco, CA |
|
171 |
|
|
W New Orleans – French Quarter |
|
New Orleans, LA |
|
97 |
|
|
|
|
|
|
|
5,981 |
|
|
(1) |
Chesapeake acquisition closed in September 2019 for total consideration of approximately $2.5 billion, including acquisition costs. |
|
(2) |
Sold in December 2019. |
25 | |
|
|
Properties Acquired and Sold (continued) |
|
|
|
|
|
Properties Sold |
|
|
|
|
Hotel |
|
Location |
|
Month Sold |
|
Room Count |
|
|
Gross Proceeds |
|
||
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
|
2018 Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hilton Rotterdam |
|
Rotterdam, Netherlands |
|
January 2018 |
|
|
254 |
|
|
$ |
62.2 |
|
Embassy Suites Portfolio - 3 Hotels |
|
Domestic US |
|
February 2018 |
|
|
676 |
|
|
|
95.8 |
|
UK Portfolio - 7 Hotels |
|
United Kingdom |
|
February 2018 |
|
|
1,334 |
|
|
|
188.5 |
|
Hilton Durban |
|
Durban, South Africa |
|
February 2018 |
|
|
328 |
|
|
|
32.5 |
|
Hilton Berlin(1) |
|
Berlin, Germany |
|
May 2018 |
|
|
601 |
|
|
|
140.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Total |
|
|
|
|
|
|
3,193 |
|
|
$ |
519.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pointe Hilton Squaw Peak Resort |
|
Phoenix, Arizona |
|
February 2019 |
|
|
563 |
|
|
$ |
51.4 |
|
Hilton Nuremberg |
|
Nuremberg, Germany |
|
March 2019 |
|
|
152 |
|
|
|
17.5 |
|
Hilton Atlanta Airport |
|
Atlanta, Georgia |
|
June 2019 |
|
|
507 |
|
|
|
101.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hilton New Orleans Airport(2) |
|
New Orleans, Louisiana |
|
June 2019 |
|
|
317 |
|
|
|
48.0 |
|
Embassy Suites Parsippany(2) |
|
Parsippany, New Jersey |
|
June 2019 |
|
|
274 |
|
|
|
17.0 |
|
|
|
|
|
|
|
|
591 |
|
|
|
65.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conrad Dublin(3) |
|
Dublin, Ireland |
|
November 2019 |
|
|
192 |
|
|
|
61.0 |
|
Ace Hotel Downtown Los Angeles |
|
Los Angeles, California |
|
December 2019 |
|
|
182 |
|
|
|
117.0 |
|
Le Meridien New Orleans |
|
New Orleans, Louisiana |
|
December 2019 |
|
|
410 |
|
|
|
84.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Total |
|
|
|
|
|
|
2,597 |
|
|
$ |
496.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hilton São Paulo Morumbi |
|
São Paulo, Brazil |
|
February 2020 |
|
|
503 |
|
|
$ |
117.5 |
|
Embassy Suites Washington DC Georgetown |
|
Washington, D.C. |
|
February 2020 |
|
|
197 |
|
|
|
90.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 Total |
|
|
|
|
|
|
700 |
|
|
$ |
207.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total(4) |
|
|
|
|
|
|
6,490 |
|
|
$ |
1,223.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The unconsolidated hotel was sold for total gross proceeds of approximately $350 million, of which $140 million represents Park’s pro rata share. |
|
(2) |
Hotels were sold as a portfolio in the same transaction. |
|
(3) |
The unconsolidated hotel was sold for total gross proceeds of approximately $128 million, of which $61 million represents Park’s pro rata share. |
|
(4) |
To date, Park has sold a total of 23 hotels. In addition, in December 2019, Park terminated the ground lease on the Hilton Sheffield Hotel. |
26 | |
|
|
|
|
|
|
|
Liquidity and Capital Structure |
Debt Summary Casa Marina, a Waldorf Astoria Resort Hilton Orlando Bonnet Creek New York Hilton Midtown
27 | |
|
|
Liquidity and Capital Structure |
|
|
|
|
|
Fixed and Variable Rate Debt |
|
|
|
|
(unaudited, dollars in millions) |
|
|
|
|
|
|
|
|||||
Debt |
|
Collateral |
|
Interest Rate |
|
|
Maturity Date |
|
As of March 31, 2020 |
|
||
Fixed Rate Debt |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan |
|
DoubleTree Hotel Spokane City Center |
|
3.55% |
|
|
October 2020 |
|
$ |
12 |
|
|
Mortgage loan |
|
Hilton Denver City Center |
|
4.90% |
|
|
August 2022(1) |
|
|
60 |
|
|
Mortgage loan |
|
Hilton Checkers Los Angeles |
|
4.11% |
|
|
March 2023 |
|
|
28 |
|
|
Mortgage loan |
|
W Chicago - City Center |
|
4.25% |
|
|
August 2023 |
|
|
78 |
|
|
Commercial mortgage-backed securities loan |
|
Hilton San Francisco Union Square, Parc 55 San Francisco - a Hilton Hotel |
|
4.11% |
|
|
November 2023 |
|
|
725 |
|
|
Mortgage loan |
|
Hyatt Regency Boston |
|
4.25% |
|
|
July 2026 |
|
|
140 |
|
|
Commercial mortgage-backed securities loan |
|
Hilton Hawaiian Village Beach Resort |
|
4.20% |
|
|
November 2026 |
|
|
1,275 |
|
|
Mortgage loan |
|
Hilton Santa Barbara Beachfront Resort |
|
4.17% |
|
|
December 2026 |
|
|
165 |
|
|
Finance lease obligations |
|
|
|
3.07% |
|
|
2021 to 2022 |
|
|
1 |
|
|
Total Fixed Rate Debt |
|
|
|
4.19%(2) |
|
|
|
|
|
2,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable Rate Debt |
|
|
|
|
|
|
|
|
|
|
|
|
Revolving credit facility |
|
Unsecured |
|
L + 1.60% |
|
|
December 2021(3) |
|
|
1,000 |
|
|
2016 Term Loan(4) |
|
Unsecured |
|
L + 1.55% |
|
|
December 2021 |
|
|
700 |
|
|
Mortgage loan |
|
DoubleTree Hotel Ontario Airport |
|
L + 2.25% |
|
|
May 2022(5) |
|
|
30 |
|
|
2019 Term Facility(6) |
|
Unsecured |
|
L + 1.50% |
|
|
September 2024 |
|
|
670 |
|
|
Total Variable Rate Debt |
|
|
|
2.49%(2) |
|
|
|
|
|
2,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: unamortized premium |
|
|
|
|
|
|
|
|
|
|
3 |
|
Less: unamortized deferred financing costs and discount |
|
|
|
|
|
|
|
|
(17 |
) |
||
Total Debt(7) |
|
|
|
3.39%(2) |
|
|
|
|
$ |
4,870 |
|
|
(1) |
The loan matures in August 2042 but is callable by the lender in August 2022. |
|
(2) |
Calculated on a weighted average basis. |
|
(3) |
Park exercised both six-month extension options in May 2020 to extend the maturity date to December 2021. |
|
(4) |
The 2016Term Loan was entered into in December 2016, with a maturity date of December 2021. |
|
(5) |
Assumes the exercise of all extensions that are exercisable solely at Park’s option. |
|
(6) |
In August 2019, the Company, Park Intermediate Holdings LLC and PK Domestic entered into a credit agreement with Bank of America, N.A. and certain other lenders, providing a $950 million unsecured delayed draw term loan facility (the “2019 Term Facility”), with the $850 million, five-year delayed draw term loan tranche fully drawn on September 18, 2019 to fund the Merger. The $100 million, two-year delayed draw term loan tranche was unfunded and the commitments thereunder terminated on September 18, 2019. On December 31, 2019, we prepaid $180 million of the 2019 Term Facility. |
|
(7) |
Excludes $225 million of Park’s share of debt of its unconsolidated joint ventures. |
28 | |
|
|
Liquidity and Capital Structure |
|
|
|
|
|
Credit Facility Amendments |
|
|
|
|
|
• |
Park amended its credit and term loan facilities to: |
|
|
▪ |
suspend compliance with all existing financial covenants tested through and including March 31, 2021 |
|
|
▪ |
adjust levels of particular financial covenants after such period |
|
•Additional agreements:
|
▪ |
Comply with a monthly minimum liquidity covenant |
|
|
▪ |
Pledge equity in certain subsidiaries to secure the facilities (8 assets) |
|
|
▪ |
For certain subsidiaries to become guarantors under the facilities |
|
•Exercised its two six-month extension options on its Revolver to extend its maturity to December 31, 2021
•Subject to various exceptions, additional debt covenants restrict:
|
▪ |
Dividend and distribution payments (except to the extent required to maintain REIT status) |
|
|
▪ |
stock repurchases |
|
|
▪ |
prepayments of other indebtedness |
|
|
▪ |
capital expenditures |
|
|
▪ |
asset dispositions and transfers |
|
|
▪ |
investments, including acquisitions or mergers |
|
|
▪ |
incurrence of other indebtedness |
|
29 | |
|
|
Liquidity and Capital Structure |
|
|
|
|
|
Cash Preservation: Estimated Cash Burn Rate |
|
|
|
|
|
• |
In conjunction with the hotel operators, Park developed low occupancy and suspension estimates to avoid marginal losses and establish trigger points for suspension decisions |
|
|
• |
Based on this work, Park developed hotel working capital needs assuming suspensions for all hotels resulting in an average aggregate hotel funding burn rate of approximately $50 million per month across the portfolio |
|
|
• |
Park’s corporate burn rate will average roughly $20 million per month for the remainder of the year. This includes: |
|
|
▪ |
Debt service |
|
|
▪ |
Corporate and other non-hotel expenses |
|
|
• |
Based on its current liquidity of $1.2 billion and assuming a total burn rate of roughly $70 million per month, Park currently has approximately 17 months of liquidity under extreme conditions (i.e. all hotels have suspended operations) |
|
|
• |
Park continues to take proactive measures to reduce the near-term burn rate, including deferral of payments, hiring freezes and other cost reduction methods |
|
|
• |
This estimate does not take into account any possible alternative sources of revenue that may arise or payment of cash dividends or other distributions not already declared and paid in 2020, if any. The estimated cash burn amount has not been reduced by any amount available to Park under existing or future debt facilities, or proceeds from issuance of any additional debt, equity or equity-linked securities |
|
Expense |
|
Average/Month (in millions) |
|
|
Hotel operations |
|
$ |
50 |
|
Debt service |
|
|
16 |
|
Corporate & other non-hotel expenditures |
|
|
4 |
|
Total |
|
$ |
70 |
|
|
|
|
|
|
30 | |
|
Definitions Hilton Orlando Bonnet Creek Hilton Denver City Center W Chicago –City Center
31 | |
|
|
Definitions |
|
|
|
|
|
|
|
|
Pro-forma
The Company presents certain data for its consolidated hotels on a pro-forma hotel basis as supplemental information for investors: Pro-forma Hotel Revenues, Pro-forma RevPAR, Pro-forma Total RevPAR, Pro-forma Occupancy, Pro-forma ADR, Pro-forma Adjusted EBITDA, Pro-forma Hotel Adjusted EBITDA and Pro-forma Hotel Adjusted EBITDA Margin and Net debt to Pro-forma Adjusted EBITDA ratio. The Company presents pro-forma hotel results to help the Company and its investors evaluate the ongoing operating performance of its hotels. The Company’s pro-forma metrics exclude results from property dispositions and include results from property acquisitions as though such acquisitions occurred on the earliest period presented.
EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin Earnings before interest expense, taxes and depreciation and amortization (“EBITDA”), presented herein, reflects net income excluding depreciation and amortization, interest income, interest expense, income taxes and interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates. Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude: • Gains or losses on sales of assets for both consolidated and unconsolidated investments; • Gains or losses on foreign currency transactions; • Transition expense related to the Company’s establishment as an independent, publicly-traded company; • Costs associated with hotel acquisitions or dispositions expensed during the period; • Severance expense; • Share-based compensation expense; • Casualty gains or losses; • Impairment losses; and • Other items that management believes are not representative of the Company’s current or future operating performance. Hotel Adjusted EBITDA measures hotel-level results before debt service, depreciation and corporate expenses of the Company’s consolidated hotels but excluding hotels owned by unconsolidated affiliates and is a key measure of the Company’s profitability. The Company presents Hotel Adjusted EBITDA to help the Company and its investors evaluate the ongoing operating performance of the Company’s consolidated hotels. Hotel Adjusted EBITDA margin is calculated as Hotel Adjusted EBITDA divided by total hotel revenue. |
|
32 | |
|
|
Definitions (continued) |
|
|
|
|
|
|
|
|
EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are not recognized terms under United States (“U.S.”) GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, the Company’s definitions of EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. The Company believes that EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin provide useful information to investors about the Company and its financial condition and results of operations for the following reasons: (i) EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are among the measures used by the Company’s management team to make day-to-day operating decisions and evaluate its operating performance between periods and between REITs by removing the effect of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results; and (ii) EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in the industry. EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income (loss) or other methods of analyzing the Company’s operating performance and results as reported under U.S. GAAP.
Nareit FFO attributable to stockholders, Adjusted FFO attributable to stockholders, Nareit FFO per share – Diluted and Adjusted FFO per share – Diluted
Nareit FFO attributable to stockholders and Nareit FFO per diluted share (defined as set forth below) are presented herein as non-GAAP measures of the Company’s performance. The Company calculates funds from operations (“FFO”) attributable to stockholders for a given operating period in accordance with standards established by the National Association of Real Estate Investment Trusts (“Nareit”), as net income (loss) attributable to stockholders (calculated in accordance with U.S. GAAP), excluding depreciation and amortization, gains or losses on sales of assets, impairment, and the cumulative effect of changes in accounting principles, plus adjustments for unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are calculated to reflect the Company’s pro rata share of the FFO of those entities on the same basis. As noted by Nareit in its December 2018 “Nareit Funds from Operations White Paper – 2018 Restatement,” since real estate values historically have risen or fallen with market conditions, many industry investors have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For these reasons, Nareit adopted the FFO metric in order to promote an industry-wide measure of REIT operating performance. The Company believes Nareit FFO provides useful information to investors regarding its operating performance and can facilitate comparisons of operating performance between periods and between REITS. The Company’s presentation 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. The Company calculates Nareit FFO per diluted share as Nareit FFO divided by the number of fully diluted shares outstanding during a given operating period. |
|
|
|
|
|
The Company also presents Adjusted FFO attributable to stockholders and Adjusted FFO per diluted share when evaluating its performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding the Company’s ongoing operating performance. Management historically has made the adjustments detailed below in evaluating its performance and in its annual budget process. Management believes that the presentation of Adjusted FFO provides useful supplemental information that is beneficial to an investor’s complete understanding of operating performance. The Company adjusts Nareit FFO attributable to stockholders for the following items, which may occur in any period, and refers to this measure as Adjusted FFO attributable to stockholders: • Gains or losses on foreign currency transactions; • Transition expense related to the Company’s establishment as an independent, publicly-traded company; • Costs associated with hotel acquisitions or dispositions expensed during the period; • Severance expense; • Share-based compensation expense; and • Other items that management believes are not representative of the Company’s current or future operating performance.
Net Debt Net debt, presented herein, is a non-GAAP financial measure that the Company uses to evaluate its financial leverage. Net debt is calculated as (i) long-term debt, including current maturities and excluding unamortized deferred financing costs; and (ii) the Company’s share of investments in affiliate debt, excluding unamortized deferred financing costs; reduced by (a) cash and cash equivalents; and (b) restricted cash and cash equivalents. The Company believes Net debt provides useful information about its indebtedness to investors as it is frequently used by securities analysts, investors and other interested parties to compare the indebtedness of companies. Net debt should not be considered as a substitute to debt presented in accordance with U.S. GAAP. Net debt may not be comparable to a similarly titled measure of other companies. Net Debt to Adjusted EBITDA Ratio Net debt to Adjusted EBITDA ratio, presented herein, is a non-GAAP financial measure and is included as it is frequently used by securities analysts, investors and other interested parties to compare the financial condition of companies. Net debt to Adjusted EBITDA ratio should not be considered as an alternative to measures of financial condition derived in accordance with U.S. GAAP and it may not be comparable to a similarly titled measure of other companies. Occupancy Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels. Occupancy measures the utilization of the Company’s hotels’ available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help management determine achievable Average Daily Rate (“ADR”) levels as demand for hotel rooms increases or decreases. |
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Definitions (continued) |
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Average Daily Rate ADR represents rooms revenue divided by total number of room nights sold in a given period. ADR measures average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the hotel industry, and management uses ADR to assess pricing levels that the Company is able to generate by type of customer, as changes in rates have a more pronounced effect on overall revenues and incremental profitability than changes in occupancy, as described above. Revenue per Available Room Revenue per Available Room (“RevPAR”) represents rooms revenue divided by total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of the Company’s performance as it provides a metric correlated to two primary and key factors of operations at a hotel or group of hotels: occupancy and ADR. RevPAR is also a useful indicator in measuring performance over comparable periods. Total RevPAR Total RevPAR represents rooms, food and beverage and other hotel revenues divided by the total number of room nights available to guests for a given period. Management considers Total RevPAR to be a meaningful indicator of the Company’s performance as approximately one-third of revenues are earned from food and beverage and other hotel revenues. Total RevPAR is also a useful indicator in measuring performance over comparable periods. References to RevPAR, Total RevPAR and ADR are presented on a currency neutral basis (prior periods are reflected using current period exchange rates), unless otherwise noted. |
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Analyst Coverage |
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Analyst |
Company |
Phone |
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Shaun Kelley |
Bank of America |
(646) 855-1005 |
shaun.kelley@baml.com |
Anthony Powell |
Barclays |
(212) 526-8768 |
anthony.powell@barclays.com |
Ari Klein |
BMO Capital Markets |
(212) 885-4103 |
ari.klein@bmo.com |
Neil Malkin |
Capital One Securities |
(571) 633-8191 |
neil.malkin@capitalone.com |
Smedes Rose |
Citi Research |
(212) 816-6243 |
smedes.rose@citi.com |
Chris Woronka |
Deutsche Bank |
(212) 250-9376 |
chris.woronka@db.com |
Richard Hightower |
Evercore ISI |
(212) 752-0886 |
rich.hightower@evercoreisi.com |
Stephen Grambling |
Goldman Sachs |
(212) 902-7832 |
stephen.grambling@gs.com |
Lukas Hartwich |
Green Street |
(949) 640-8780 |
lhartwich@greenst.com |
David Katz |
Jefferies |
(212) 323-3355 |
dkatz@jefferies.com |
Brandt Montour |
JP Morgan |
(212) 622-1111 |
brandt.a.montour@jpmorgan.com |
Brian Dobson |
Nomura/Instinet |
(212) 310-5416 |
brian.dobson@instinet.com |
Bill Crow |
Raymond James |
(727) 567-2594 |
bill.crow@raymondjames.com |
Patrick Scholes |
SunTrust |
(212) 319-3915 |
patrick.scholes@suntrust.com |
Robin Farley |
UBS |
(212) 713-2060 |
robin.farley@ubs.com |
Dori Kesten |
Wells Fargo |
(617) 603-4262 |
dori.kesten@wellsfargo.com |
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