CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Quarter Ended
Year Ended
December 31,
December 31,
2005 2004
2005 2004
____ ____
____ ____
Revenue:
Hotel operations:
Rooms
$114,702 $96,808
$471,700 $445,269
Food and beverage
57,305 52,474
203,250 189,177
Other hotel operations
10,458 9,163
43,812 50,818
Office rental, parking and
other revenue
962 946
5,860 4,922
________ ________
________ ________
Total revenue
183,427 159,391
724,622 690,186
________ ________
________ ________
Hotel operating expenses:
Rooms
29,055 25,860
116,037 112,067
Food and beverage
38,776 35,028
142,175 135,424
Other hotel operating
expenses
6,689 6,230
27,652 32,344
Office rental, parking and
other expenses
521 457
2,903 2,395
Other operating expenses:
General and administrative,
hotel
29,903 26,388
114,797 106,905
General and administrative,
corporate
4,003 5,160
14,364 14,832
Property operating costs
28,294 23,631
109,715 101,803
Depreciation and
amortization
21,440 20,604
85,369 85,922
Property taxes, insurance
and other
8,500 8,135
39,807 49,177
Loss on asset impairments
64,996 -
89,373 -
Contract termination costs
134 -
1,215 -
________ ________
________ ________
Operating expenses
232,311 151,493
743,407 640,869
________ ________
________ ________
Equity in income (loss) of
and interest earned from
unconsolidated affiliates
2,937 8,347
10,193 13,147
Hurricane business interruption
insurance gain
2,772 -
7,062 -
________ ________
________ ________
Operating (loss) income
(43,175) 16,245
(1,530) 62,464
Minority interest income
2,888 488
6,208 2,880
Interest expense, net
(28,017) (31,341) (119,580)
(126,927)
Loss on early
extinguishments of debt
(301) (49)
(58,004) (9,672)
________ ________
________ ________
Loss before income taxes and
discontinued operations
(68,605) (14,657) (172,906)
(71,255)
Income tax (expense) benefit
(162) 240
(1,029) 1,040
________ ________
________ ________
Loss from continuing
operations
(68,767) (14,417) (173,935)
(70,215)
________ ________
________ ________
Discontinued operations:
Loss from discontinued
operations before income
tax
(44,970) (3,323)
(67,683) (26,251)
Income tax benefit
- 12
- 167
________ ________
________ ________
Loss from discontinued
operations
(44,970) (3,311)
(67,683) (26,084)
________ ________
________ ________
Net loss
$(113,737) (17,728) $(241,618)
(96,299)
======== ========
======== ========
Basic loss per share:
Loss from continuing
operations
$(0.79) (0.16)
$(1.99) (0.86)
Loss from discontinued
operations
(0.51) (0.04)
(0.77) (0.32)
________ ________
________ ________
Loss per basic share
$(1.30) (0.20)
$(2.76) (1.18)
======== ========
======== ========
Diluted loss per share:
Loss from continuing
operations
$(0.80) (0.16)
$(2.01) (0.87)
Loss from discontinued
operations
(0.50) (0.04)
(0.75) (0.31)
________ ________
________ ________
Loss per diluted share
$(1.30) (0.20)
$(2.76) (1.18)
======== ========
======== ========
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
December 31, December 31,
2005
2004
____________ ____________
ASSETS
Property and equipment
$2,342,832 $2,581,720
Accumulated depreciation
(478,315) (506,632)
____________ ____________
1,864,517 2,075,088
Assets held for sale
80,885
-
Investment in and advances to
unconsolidated affiliates
72,427
84,796
Prepaid expenses and other assets
35,570
34,533
Insurance claim receivable
40,972
76,056
Accounts receivable, net of allowance
for
doubtful accounts of $545 and
$691
36,363
32,979
Restricted cash
19,856
58,413
Cash and cash equivalents
25,441
60,540
____________ ____________
$2,176,031 $2,422,405
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Long-term debt
$1,585,075 $1,573,276
Accounts payable and accrued expenses
81,188
75,527
Accrued interest
33,933
41,165
Due to Interstate Hotels and Resorts
14,456
21,799
Other liabilities
8,509
11,553
___________ ____________
Total liabilities
1,723,161 1,723,320
___________ ____________
Minority interests
6,816
14,053
Stockholders' equity:
Preferred stock, par value $0.01
per share
Authorized - 100,000 shares
Issued - none
-
-
Common stock, par value $0.01
per share
Authorized - 100,000 shares
Issued -90,050 and 89,739
shares
900
897
Additional paid-in capital
1,469,151 1,465,658
Accumulated deficit
(980,011) (738,393)
Common stock held in treasury
-
2,492 and 2,372 shares
(43,986)
(43,130)
____________ ____________
Total stockholders' equity
446,054
685,032
____________ ____________
$2,176,031 $2,422,405
============ ============
RECONCILIATION OF NET LOSS TO FUNDS FROM OPERATIONS (a)
(In thousands, except per share amounts)
Quarter Ended
Year Ended
December 31,
December 31,
2005 2004
2005 2004
____ ____
____ ____
Funds From Operations:
Net loss
$(113,737) $(17,728) $(241,618) $(96,299)
Depreciation and amortization
of real estate assets
20,906 22,841
89,052 95,575
Loss on disposal of assets
2,870 303
5,397 14,065
Unconsolidated affiliate
adjustments
1,325 1,065
4,732 1,065
Minority interest to common
OP unit holders
(625) (473)
(2,507) (2,943)
________ ________ ________
________
Funds from operations
$(89,261) $6,008 $(144,944)
$11,463
======== ======== ========
========
Weighted average number of
shares of common stock
outstanding
87,533 89,735
87,472 83,978
======== ======== ========
========
Funds from operations per
diluted share
$(1.02) $0.07
$(1.66) $0.14
======== ======== ========
========
Funds From Operations, as adjusted:
Funds from operations
$(89,261) $6,008 $(144,944)
$11,463
Loss on asset impairments
106,568 2,315
153,558 12,337
Loss on early extinguishments
of debt
301 49
58,004 9,672
Contract termination costs
134 -
1,215 -
Minority interest to common
OP unit holders
(2,662) -
(5,377) -
________ ________ ________
________
Funds from operations, as
adjusted
$15,080 $8,372 $62,456
$33,472
======== ======== ========
========
Weighted average number of
shares of common stock and
common stock equivalents
outstanding
87,669 89,735
87,601 83,978
======== ======== ========
========
Funds from operations per
diluted share, as adjusted
$0.17 $0.09
$0.71 $0.40
======== ======== ========
========
(a) See the notes to the financial
information for discussion of non-GAAP
measures.
RECONCILIATION OF NET LOSS TO EBITDA (a)
(In thousands)
Quarter Ended
Year Ended
December 31, December
31,
2005 2004
2005 2004
____ ____
____ ____
EBITDA and Adjusted EBITDA:
Net loss
$(113,737) $(17,728) $(241,618) $(96,299)
Loss from discontinued
operations
(44,970) (3,311) (67,683)
(26,084)
________ ________ ________ ________
Loss from continuing operations (68,767)
(14,417) (173,935) (70,215)
Interest expense, net
28,017 31,341 119,580
126,927
Income tax expense (benefit)
162 (240)
1,029 (1,040)
Depreciation and amortization
21,440 20,604 85,369
85,922
________ ________ ________ ________
EBITDA from continuing
operations
(19,148) 37,288 32,043
141,594
Loss on asset impairments
64,996 -
89,373 -
Contract termination costs
134 -
1,215 -
Minority interest income
(2,888) (488) (6,208)
(2,880)
Loss on early extinguishments
of debt
301 49
58,004 9,672
Equity investment adjustments:
Equity in (income) loss of
affiliates
(32) (237)
1,310 (237)
Distributions from equity
investments
252 1,041
1,604 1,041
________ ________ ________ ________
Adjusted EBITDA from continuing
operations
$43,615 $37,653 $177,341
$149,190
======== ======== ======== ========
Loss from discontinued
operations
$(44,970) $(3,311) $(67,683) $(26,084)
Interest expense, net
- -
- (478)
Income tax benefit
- (12)
- (167)
Depreciation and amortization
1,679 3,603
10,351 15,132
________ ________ ________ ________
EBITDA from discontinued
operations
(43,291) 280
(57,332) (11,597)
Loss on asset impairments
41,572 2,315
64,185 12,337
Loss on disposal of assets
2,870 303
5,397 14,065
________ ________ ________ ________
Adjusted EBITDA from discontinued
operations
$1,151 $2,898 $12,250
$14,805
======== ======== ======== ========
Adjusted EBITDA, total
operations
$44,766 $40,551 $189,591
$163,995
======== ======== ======== ========
(a) See the notes to the financial
information for discussion of non-GAAP
measures.
HOTEL OPERATIONAL DATA
SCHEDULE OF COMPARABLE HOTEL RESULTS (a)
(In thousands, except per share amounts)
Quarter Ended
Year Ended
December 31,
December 31,
2005 2004
2005 2004
____ ____
____ ____
Number of hotels
49 49
49 49
Number of rooms
15,337 15,337 15,337
15,337
Comparable hotel revenues:
Rooms
$110,364 94,880 $436,114
393,563
Food and beverage
56,198 51,746 187,869
173,915
Other hotel operations
8,531 7,899
33,036 31,679
________ ________ ________
________
Comparable hotel
revenues (b)
175,093 154,525 657,019
599,157
________ ________ ________
________
Comparable hotel expenses:
Room
28,323 25,336 108,429
100,844
Food and beverage
38,022 34,367 131,190
123,283
Other
4,439 5,615
22,302 21,974
General and administrative
28,533 25,435 105,545
98,084
Property operating costs,
less management fees
22,924 19,218 86,421
78,356
________ ________ ________
________
Comparable hotel
expenses (c)
122,241 109,971 453,887
422,541
________ ________ ________
________
________ ________ ________
________
Comparable Hotel Gross
Operating Profit
52,852 44,554 203,132
176,616
________ ________ ________
________
Margin
30.2% 28.8%
30.9% 29.5%
Management Fees (c)
4,843 3,942
16,969 15,100
Property taxes, insurance
and other (c)
9,552 8,594
35,164 33,495
________ ________ ________
________
Comparable Hotel EBITDA,
excluding BI (d)
$38,457 $32,018 $150,999
$128,021
________ ________ ________
________
Margin
22.0% 20.7%
23.0% 21.4%
Hurricane business
interruption insurance gain
- -
969 -
________ ________ ________
________
Comparable Hotel EBITDA,
including BI (d)
$38,457 $32,018 $151,968
$128,021
======== ======== ========
========
Margin
22.0% 20.7%
23.1% 21.4%
(a) See the notes to the financial
information for discussion of non-GAAP
measures,
and comparable hotel results and statistics.
(b) The reconciliation of total revenues
per the consolidated statements
of operations
to the comparable hotel revenues is as follows (in
thousands):
Quarter Ended Year
Ended
December 31, December
31,
2005 2004
2005 2004
____ ____
____ ____
Revenues per the consolidated
statements of operations
$183,427 $159,391 $724,622 $690,186
Non-comparable hotel revenues
(7,372) (3,920) (61,743) (86,107)
Office rental, parking and other
revenue
(962) (946) (5,860)
(4,922)
________ ________ ________ ________
Comparable hotel revenues
$175,093 $154,525 $657,019 $599,157
======== ======== ======== ========
(c) The reconciliation of operating
costs per the consolidated statements
of operations
to the comparable hotel expenses, management fees,
property taxes,
insurance and other is as follows (in thousands):
Quarter Ended Year
Ended
December 31, December
31,
2005 2004
2005 2004
____ ____
____ ____
Operating expenses per the
consolidated statements of
operations
$232,311 $151,493 $743,407 $640,869
Non-comparable hotel expenses
(5,102) (3,222) (47,066) (68,979)
General and administrative,
corporate
(4,003) (5,160) (14,364) (14,832)
Depreciation and amortization
(21,440) (20,604) (85,369) (85,922)
Loss on asset impairments
(64,996) -
(89,373) -
Contract termination costs
(134) -
(1,215) -
________ ________ ________ ________
Comparable hotel expenses,
management fees,
property taxes,
insurance and other
$136,636 $122,507 $506,020 $471,136
======== ======== ======== ========
(d) The reconciliation of comparable
hotel EBITDA to operating income per
the consolidated
statements of operations is as follows (in
thousands):
Quarter Ended Year
Ended
December 31, December
31,
2005 2004
2005 2004
____ ____
____ ____
Comparable hotel EBITDA,
including BI
$38,457 $32,018 $151,968 $128,021
Non-comparable results, net (e)
2,270 698
14,677 17,128
Office rental, parking and other
revenue
962 946
5,860 4,922
General and administrative,
corporate
(4,003) (5,160) (14,364) (14,832)
Depreciation and amortization
(21,440) (20,604) (85,369) (85,922)
Loss on asset impairments
(64,996) -
(89,373) -
Contract termination costs
(134) -
(1,215) -
Equity in income (loss) of and
interest earned from unconsolidated
affiliates
2,937 8,347
10,193 13,147
Hurricane business interruption
insurance gain at non-comparable
hotels
2,772 -
6,093 -
________ ________ ________ ________
Operating (Loss) Income
$(43,175) $16,245 $(1,530) $62,464
======== ======== ======== ========
(e) Non-comparable results, net represent
all revenues and expenses, other
than those
of our comparable hotels, and specific revenues and
expenses identified
above: office rental, parking and other revenue;
general and
administrative, corporate; depreciation and amortization;
loss on asset
impairments; contract termination costs and equity in
income/loss
of and interest earned from unconsolidated affiliates.
FORECASTED
RECONCILIATION OF NET LOSS TO FUNDS FROM OPERATIONS
(In millions, except per share amounts)
Three Months Ending March 31, 2006
____________________________________
Low-end of range High-end of range
________________ _________________
Forecasted Funds from Operations:
Net loss (a)
$
(8)
(5)
Adjustments to forecasted net loss:
Depreciation and amortization
of real
estate assets
19
19
Unconsolidated affiliate adjustments
1
1
________________ ________________
Funds from operations
$12
15
Weighted average diluted shares of
common stock and common OP units
outstanding
90
90
________________ ________________
Funds from operations per diluted
share
$ 0.13
0.16
================ ================
Year Ending December 31, 2006
____________________________________
Low-end of range High-end of range
________________ _________________
Forecasted Funds from Operations:
Net income (a)
$
7
11
Adjustments to forecasted net income:
Depreciation and amortization
of
real estate assets
67
67
Unconsolidated affiliate adjustments
5
5
________________ ________________
Funds from operations
$
79
83
Weighted average number of shares
of common stock and common
OP units outstanding
90
90
________________ ________________
Funds from operations per
diluted share
$ 0.88
0.92
================ ================
(a) Forecasted net income (loss)
does not include any possible future
losses
on asset impairments, gains or losses on the sale of assets,
gains
or losses on early extinguishment of debt, or gains or losses
on property
damage insurance recoveries; therefore, forecasted funds
from
operations is equivalent to adjusted funds from operations.
FORECASTED RECONCILIATION OF NET LOSS TO EBITDA
(In millions)
Three Months Ending March 31, 2006
____________________________________
Low-end of range High-end of range
________________ _________________
EBITDA and Adjusted EBITDA:
Net loss (a)
$
(8)
(5)
Interest expense, net
30
30
Depreciation and amortization
21
21
________________ _________________
43
46
EBITDA
Equity investment adjustments:
Equity in income of affiliates
2
2
________________ _________________
Adjusted EBITDA
$
45
48
================ ================
Year Ending December 31, 2006
____________________________________
Low-end of range High-end of range
________________ _________________
EBITDA and Adjusted EBITDA:
Net income (a)
$
7
11
Interest expense, net
93
93
Depreciation and amortization
74
74
________________ _________________
174
178
EBITDA
Equity investment adjustments:
Equity in income of affiliates
3
3
________________ _________________
Adjusted EBITDA
$ 177
181
================ ================
(a) Forecasted net income (loss) does
not include any possible future
losses on
asset impairments, gains or losses on the sale of assets,
gains or losses
on early extinguishment of debt, or gains or losses on
property damage
insurance recoveries.
NOTES TO FINANCIAL INFORMATION
Funds From Operations
Substantially all of our non-current assets consist of
real estate, and in accordance with accounting principles generally accepted
in the United States, or GAAP, those assets are subject to straight-line
depreciation, which reflects the assumption that the value of real estate
assets, other than land, will decline ratably over time. That assumption
is often not true with respect to the actual market values of real estate
assets (and, in particular, hotels), which fluctuate based on economic,
market and other conditions. As a result, management and many industry
investors believe the presentation of GAAP operating measures for real
estate companies to be more informative and useful when other measures,
adjusted for depreciation and amortization, are also presented.
In an effort to address these concerns, the National
Association of Real Estate Investment Trusts, or NAREIT, adopted a definition
of Funds From Operations, or FFO. NAREIT defines FFO as net income (computed
in accordance with GAAP) excluding gains or losses from sales of real estate,
real estate- related depreciation and amortization, and after comparable
adjustments for our portion of these items related to unconsolidated partnerships
and joint ventures. Extraordinary items and cumulative effect of changes
in accounting principles as defined by GAAP are also excluded from the
calculation of FFO. As defined by NAREIT, FFO also does not include reductions
from asset impairment charges. The Securities and Exchange Commission,
however, recommends that FFO includes the effect of asset impairment charges,
which is the presentation we have adopted for all historical presentations
of FFO. We believe FFO is an indicative measure of our operating performance
due to the significance of our hotel real estate assets and provides beneficial
information to investors.
Adjusted FFO represents FFO excluding the effects of
gains or losses on early extinguishments of debt, contract termination
costs and, in accordance with the NAREIT definition of FFO, asset impairment
charges. We exclude the effects of gains or losses on early extinguishments
of debt, contract termination costs and asset impairment charges because
we believe that including them in Adjusted FFO does not fully reflect the
operating performance of our remaining assets. We believe Adjusted FFO
is useful for the same reasons we believe that FFO is useful, but we also
believe that Adjusted FFO enables us and the investor to consider our operating
performance without considering the items we exclude from our definition
of Adjusted FFO.
Consolidated Earnings Before Interest, Income Taxes,
Depreciation and Amortization
EBITDA represents consolidated earnings before interest,
income taxes, depreciation and amortization and includes operations from
the assets included in discontinued operations. We further adjust EBITDA
for the effect of capital market transactions that would result in a gain
or loss on early extinguishments of debt, contract termination costs, the
earnings effect and distributions related to equity method investments,
as well as the earnings effect of asset dispositions and any impairment
assessments, resulting in the measure that we refer to as "Adjusted EBITDA."
We exclude the effect of gains or losses on early extinguishments of debt,
contract termination costs, the earnings effect and distributions related
to equity method investments, as well as the earnings effect of asset dispositions
and impairment assessments because we believe that including them in Adjusted
EBITDA does not fully reflect the operating performance of our remaining
assets.
We also believe Adjusted EBITDA provides useful information
to investors regarding our financial condition and results of operations
because Adjusted EBITDA is useful in evaluating our operating performance.
Furthermore, we use Adjusted EBITDA to provide a measure of performance
that can be isolated on an asset-by-asset basis to determine overall property
performance. We believe that the rating agencies and a number of our lenders
also use Adjusted EBITDA for those purposes. We also use Adjusted EBITDA
as one measure in determining the value of acquisitions and dispositions.
Net Debt
Net debt is defined as total debt less cash and cash
equivalents. Management uses net debt to evaluate the Company's capital
structure. Management believes that the presentation of net debt provides
useful information to investors regarding our financial condition because
accumulated cash can be used for debt repayment, if appropriate. Net debt
is not a substitute for any U.S. GAAP financial measure. In addition, the
calculation of net debt contained in this document may not be consistent
with that of other companies.
Comparable Hotel Operating Results and Statistics
We present certain operating statistics (i.e., RevPAR,
ADR and average occupancy) and operating results (revenues, expenses and
operating profit) for the periods included in this report on a comparable
hotel basis as supplemental information for investors. We define our comparable
hotels as properties that (i) are owned by us and the operations of which
are included in our consolidated results for the reporting periods being
compared, (ii) have not sustained substantial property damage during the
reporting periods being compared, and (iii) are not classified as held-for-sale
as of the end of the period. Of the 64 hotels that we owned as of December
31, 2005, 49 have been classified as comparable hotels. The operating results
of six hotels classified as held-for-sale and reflected in discontinued
operations and nine hotels significantly affected by the hurricanes in
2004 and 2005 that we owned as of December 31, 2005, are excluded from
comparable hotel results for these periods. Additionally, changes in estimates
to property tax expense, which are recorded when known, have been allocated
to the period to which they relate, in order to maintain comparability
between periods.
We present these comparable hotel operating results by
eliminating corporate-level revenues and expenses, as well as depreciation
and amortization and loss on asset impairments. We eliminate corporate-level
revenues and expenses to arrive at property-level results because we believe
property-level results provide investors with supplemental information
regarding the ongoing operating performance of our hotels and the effectiveness
of management in running our business on a property-level basis. We eliminate
depreciation and amortization because, even though depreciation and amortization
are property-level expenses, these non-cash expenses, which are based on
historical cost accounting for real estate assets, implicitly assume that
the value of real estate assets diminishes over time. Because real estate
values have historically 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.
We eliminate loss on asset impairments because these non-cash expenses
are primarily related to our non-comparable properties, and do not reflect
the operating performance of our comparable assets.
As a result of the elimination of corporate-level costs
and expenses and depreciation and amortization, the comparable hotel operating
results we present do not represent our total revenues, expenses or operating
profit and should not be used to evaluate our performance as a whole. Management
compensates for these limitations by separately considering the impact
of these excluded items to the extent that they are material to operating
decisions or assessments of our operating performance. Our consolidated
statements of operations include such amounts, all of which should be considered
by investors when evaluating our performance.
We present these hotel operating results on a comparable
hotel basis because we believe that doing so provides investors and management
with useful information for evaluating the period-to-period performance
of our hotels and facilitates comparisons with other hotel REITs and hotel
owners. In particular, these measures assist management and investors in
distinguishing whether increases or decreases in revenues and/or expenses
are due to growth or decline of operations at comparable hotels (which
represent the vast majority of our portfolio) or from other factors, such
as the effect of acquisitions or dispositions. While management believes
that presentation of comparable hotel results is a "same store" supplemental
measure that provides useful information in evaluating the ongoing performance
of the Company, this measure is not used to allocate resources or to assess
the operating performance of each of these hotels, as these decisions are
based on data for individual hotels and are not based on comparable hotel
results. For these reasons, we believe that comparable hotel operating
results, when combined with the presentation of GAAP operating profit,
revenues and expenses, provide useful information to management and investors.
See reconciliations of net loss to FFO per diluted share
and Adjusted FFO per diluted share and net loss to Adjusted EBITDA included
in the tables of this press release. FFO, Adjusted FFO, and Adjusted EBITDA
(earnings before interest, income taxes, depreciation, amortization and
other items) are non- GAAP financial measures and should not be considered
as alternatives to any measures of operating results under GAAP. See the
notes to financial information for further discussion of these non-GAAP
financial measures.
Bethesda, Md.-based MeriStar Hospitality Corporation owns
58 principally upscale, full-service hotels in major markets and resort
locations with 17,003 rooms in 19 states and the District of Columbia.
The company owns hotels under such internationally known brands as Hilton,
Sheraton, Marriott, Ritz- Carlton, Westin, Doubletree and Radisson. For
more information about MeriStar Hospitality, visit the company's website:
www.meristar.com.
(1) FFO, Adjusted FFO, Adjusted EBITDA,
and comparable hotel EBITDA
margins are
non-GAAP financial measures. See the notes to financial
information
for further discussion of these non-GAAP financial
measures.
(2) Net loss for the group of 25 properties
was $(54.7) million, which
consisted
of $30.5 million of EBITDA less $(19.7) million of
depreciation
and amortization, $(1.3) million of interest expense, and
$(64.2) of
loss on asset impairment.
Information both included and incorporated by reference
in this press release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Forward-looking statements, which
are based on various assumptions and describe our future plans, strategies,
and expectations, are generally identified by our use of words such as
"intend," "plan," "may," "should," "will," "project," "estimate," "anticipate,"
"believe," "expect," "continue," "potential," "opportunity," and similar
expressions, whether in the negative or affirmative. We cannot guarantee
that we actually will achieve these plans, intentions or expectations.
All statements regarding our expected financial position, business and
financing plans are forward-looking statements.
Except for historical information, matters discussed
in this press release are subject to known and unknown risks, uncertainties
and other factors which may cause our actual results, performance or achievements
to be materially different from future results, performance or achievements
expressed or implied by such forward-looking statements.
Factors which could have a material adverse effect on
our operations and future prospects include, but are not limited to: economic
conditions generally and the real estate market specifically; supply and
demand for hotel rooms in our current and proposed market areas; other
factors that may influence the travel industry, including health, safety
and economic factors; competition; the level of proceeds from asset sales;
our ability to realize anticipated benefits of acquisitions; cash flow
generally, including the availability of capital generally, cash available
for capital expenditures, and our ability to refinance debt; the effects
of threats of terrorism and increased security precautions on travel patterns
and demand for hotels; the threatened or actual outbreak of hostilities
and international political instability; governmental actions, including
new laws and regulations and particularly changes to laws governing the
taxation of real estate investment trusts; availability of labor and union
contract requirements; the expanding scope of brand standards and the costs
associated with maintaining compliance with those standards; weather conditions
generally and natural disasters and our ability to obtain cost-effective
insurance coverage and to recover for resulting property damage; rising
interest rates; reliance on third-party operators to provide timely and
accurate financial reporting; and changes in U.S. generally accepted accounting
principles, policies and guidelines applicable to real estate investment
trusts.
These risks and uncertainties should be considered in
evaluating any forward-looking statements contained in this press release
or incorporated by reference herein. All forward-looking statements speak
only as of the date of this press release or, in the case of any document
incorporated by reference, the date of that document. All subsequent written
and oral forward-looking statements attributable to us or any person acting
on our behalf are qualified by the cautionary statements in this section.
We undertake no obligation to update or publicly release any revisions
to forward-looking statements to reflect events, circumstances or changes
in expectations after the date of this press release. |
