Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006
2005
Revenues:
Rooms
$108,577 $56,934 $258,772 $164,657
Food and beverage
63,863 34,536 155,517 100,983
Other hotel operating
revenue 21,062 10,212
46,828 30,689
193,502 101,682 461,117 296,329
Lease revenue
7,938 5,514 15,707
13,493
Total revenues
201,440 107,196 476,824 309,822
Operating Costs and Expenses:
Rooms
27,909 14,306 63,901 38,958
Food and beverage
46,513 25,086 109,604 70,827
Other departmental expenses
51,076 29,559 119,784 80,489
Management fees
7,698 2,888 16,289
10,807
Other hotel expenses
13,071 6,523 30,143
18,203
Lease expense
3,798 2,977 10,417
9,968
Depreciation and amortization
21,892 11,748 49,357 31,740
Corporate expenses
5,764 5,379 18,353
14,786
Total operating
costs and
expenses
177,721 98,466 417,848 275,778
Operating income
23,719 8,730 58,976
34,044
Interest expense
(15,835) (9,384) (30,311) (25,204)
Interest income
843 357 3,264
1,063
Equity in earnings of
joint
ventures
1,201 757
254 2,315
Other income, net
1,010 1,436 3,688
4,346
Income before income taxes,
minority interests
and
discontinued operations
10,938 1,896 35,871
16,564
Income tax benefit (expense)
114 18 (2,757)
(2,362)
Minority interest expense
in
SHR's operating
partnership (154)
(396) (694) (3,305)
Minority interest income
(expense) in consolidated
affiliates
58 -
(731) -
Income from continuing
operations 10,956 1,518
31,689 10,897
Income (loss) from discontinued
operations, net
of tax and
minority interests
87,932 (620) 87,104
3,232
Net income
98,888 898 118,793
14,129
Preferred shareholder
dividends (7,461) (2,125) (17,081)
(4,628)
Net income (loss) available
to
common shareholders
$91,427 $(1,227) $101,712 $9,501
Basic Income (Loss) Per
Share:
Income (loss)
from continuing
operations
available to common
shareholders
per share
$0.05 $(0.01) $0.22
$0.19
Income (loss)
from discontinued
operations
per share
1.16 (0.02) 1.33
0.10
Net income
(loss) available to
common
shareholders per share $1.21 $(0.03)
$1.55 $0.29
Weighted-average
common shares
outstanding
75,570 36,691 65,740 32,420
Diluted Income (Loss) Per
Share:
Income (loss)
from continuing
operations
available to common
shareholders per share
$0.05 $(0.01) $0.22
$0.19
Income (loss)
from discontinued
operations
per share
1.16 (0.02) 1.32
0.10
Net income
(loss) available to
common
shareholders per share $1.21 $(0.03)
$1.54 $0.29
Weighted-average
common shares
outstanding
75,780 36,691 66,008 32,605
Consolidated Balance Sheets
(in thousands, except share data)
September 30, December 31,
2006
2005
Assets
Property and equipment
$2,594,674 $1,300,250
Less accumulated
depreciation
(243,494) (217,695)
Net property and equipment
2,351,180 1,082,555
Goodwill
411,624
66,656
Intangible assets (net
of
accumulated amortization
of $2,645
and $1,340, respectively)
44,566
2,129
Investment in joint ventures
73,177
15,533
Cash and cash equivalents
83,960
65,017
Restricted cash and cash
equivalents
53,635
32,115
Accounts receivable (net
of
allowance for doubtful
accounts of
$671 and $427, respectively)
79,825
31,286
Deferred financing costs
(net of
accumulated amortization
of $2,435
and $969, respectively)
10,199
7,544
Deferred tax assets
43,748
35,594
Other assets
56,751
84,093
Insurance recoveries receivable
-
25,588
Total assets
$3,208,665 $1,448,110
Liabilities and Shareholders' Equity
Liabilities:
Mortgages
and other debt payable
$1,425,757 $633,380
Bank credit
facility
106,000
26,000
Accounts payable
and accrued expenses 170,672
85,247
Distributions
payable
17,985
11,531
Deferred tax
liabilities
23,608
5,239
Deferred gain
on sale of hotels
104,334
99,970
Insurance
proceeds received in excess
of insurance
recoveries receivable
5,618
-
Total liabilities
1,853,974 861,367
Minority interests in SHR's
operating partnership
14,039
76,030
Minority interests in
consolidated
affiliates
11,891
11,616
Shareholders' equity:
8.5% Series
A Cumulative
Redeemable
Preferred Stock ($0.01
par
value; 4,000,000 shares issued and
outstanding;
liquidation preference
$25.00
per share)
97,553
97,553
8.25% Series
B Cumulative
Redeemable
Preferred Stock ($0.01
par
value; 4,600,000 shares issued and
outstanding;
liquidation preference
$25.00
per share)
110,775
-
8.25% Series
C Cumulative
Redeemable
Preferred Stock ($0.01
par
value; 5,750,000 shares issued and
outstanding;
liquidation preference
$25.00
per share)
138,943
-
Common shares
($0.01 par value;
150,000,000
common shares authorized;
75,299,448
and 43,878,273 common shares
issued
and outstanding, respectively)
753
439
Additional
paid-in capital
1,221,610 688,250
Deferred compensation
-
(1,916)
Accumulated
deficit
(122,820) (241,613)
Accumulated
distributions
(118,946) (53,142)
Accumulated
other comprehensive
income
893
9,526
Total shareholders' equity
1,328,761 499,097
Total liabilities and
shareholders' equity
$3,208,665 $1,448,110
Non-GAAP Financial Measures
In addition to REIT hotel income, six
other non-GAAP financial measures
are presented for the Company that
we believe are useful to investors as
key measures of our operating performance:
Funds from Operations (FFO);
FFO - Fully Converted; and Comparable
FFO; Earnings Before Interest
Expense, Taxes, Depreciation and Amortization
(EBITDA); and Adjusted
EBITDA; and Comparable EBITDA. A reconciliation
of these measures to net
income available to common shareholders,
the most directly comparable GAAP
measure, is set forth in the following
tables.
We compute FFO in accordance with standards
established by the National
Association of Real Estate Investment
Trusts, or NAREIT, which adopted a
definition of FFO in order to promote
an industry-wide standard measure of
REIT operating performance that would
not have certain drawbacks
associated with net income under GAAP.
NAREIT defines FFO as net income
(or loss) (computed in accordance
with GAAP) excluding (losses) or gains
from sales of depreciable property
plus real estate-related depreciation
and amortization, and after adjustments
for our portion of these items
related to unconsolidated partnerships
and joint ventures. We also present
FFO - Fully Converted, which is FFO
plus minority interest expense on
convertible minority interests. We
also present Comparable FFO, which is
FFO- Fully Converted excluding the
impact of any gains or losses on early
extinguishment of debt, impairment
losses and other non-recurring charges.
We believe that the presentation of
FFO, FFO - Fully Converted and
Comparable FFO provides useful information
to investors regarding our
results of operations because they
are measures of our ability to fund
capital expenditures and expand our
business. In addition, FFO is widely
used in the real estate industry to
measure operating performance without
regard to items such as depreciation
and amortization.
EBITDA represents net income available
to common shareholders excluding:
(i) interest expense, (ii) income
tax expense, including deferred income
tax benefits and expenses applicable
to our foreign subsidiaries and
income taxes applicable to sale of
assets; and (iii) depreciation and
amortization. EBITDA also excludes
interest expense, income tax expense
and depreciation and amortization
of our equity method investments. EBITDA
is presented on a full participation
basis, which means we have assumed
conversion of all convertible minority
interests of our operating
partnership into our common stock
and includes preferred dividends. We
believe this treatment of minority
interest provides more useful
information for management and our
investors and appropriately considers
our current capital structure.
We also present Adjusted EBITDA, which
eliminates the effect of realizing
deferred gains on our sale leasebacks.
We also present Comparable EBITDA,
which eliminates the effect of gains or
losses on sales of assets, early extinguishment
of debt, impairment losses
and other non-recurring charges. We
believe EBITDA, Adjusted EBITDA and
Comparable EBITDA are useful to management
and investors in evaluating our
operating performance because they
provide management and investors with
an indication of our ability to incur
and service debt, to satisfy general
operating expenses, to make capital
expenditures and to fund other cash
needs or reinvest cash into our business.
We also believe they help
management and investors meaningfully
evaluate and compare the results of
our operations from period to period
by removing the impact of our asset
base (primarily depreciation and amortization)
from our operating results.
Our management also uses EBITDA, Adjusted
EBITDA and Comparable EBITDA as
measures in determining the value
of acquisitions and dispositions.
We caution investors that amounts presented
in accordance with our
definitions of FFO, FFO - Fully Converted,
Comparable FFO, EBITDA,
Adjusted EBITDA and Comparable EBITDA
may not be comparable to similar
measures disclosed by other companies,
since not all companies calculate
these non-GAAP measures in the same
manner. FFO, Fully Converted FFO,
Comparable FFO, EBITDA, Adjusted EBITDA
and Comparable EBITDA should not
be considered as an alternative measure
of our net income or operating
performance. FFO, FFO - Fully Converted,
Comparable FFO, EBITDA, Adjusted
EBITDA and Comparable EBITDA may include
funds that may not be available
for our discretionary use due to functional
requirements to conserve funds
for capital expenditures and property
acquisitions and other commitments
and uncertainties. Although we believe
that FFO, FFO - Fully Converted,
Comparable FFO, EBITDA, Adjusted EBITDA
and Comparable EBITDA can enhance
your understanding of our financial
condition and results of operations,
these non-GAAP financial measures,
when viewed individually, are not
necessarily a better indicator of
any trend as compared to comparable GAAP
measures such as net income available
to common shareholders. In addition,
you should be aware that adverse economic
and market conditions might
negatively impact our cash flow. Below,
we have provided a quantitative
reconciliation of FFO, FFO - Fully
Converted, Comparable FFO, EBITDA,
Adjusted EBITDA and Comparable EBITDA
to the most directly comparable GAAP
financial performance measure, which
is net income available to common
shareholders, and provide an explanatory
description by footnote of the
items excluded from FFO, FFO - Fully
Converted, EBITDA and Adjusted
EBITDA. Prior year amounts have
been adjusted to conform to the current
year presentation on a fully converted
basis.
Reconciliation of Net Income (Loss) Available
to Common Shareholders to
EBITDA, Adjusted EBITDA and Comparable EBITDA
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006
2005
Net income (loss) available to
common shareholders
$91,427 $(1,227) $101,712 $9,501
Depreciation and amortization -
continuing operations
21,892 11,748 49,357 31,740
Depreciation and amortization -
discontinued operations
- 2,478 2,535
7,298
Interest expense - continuing
operations
15,835 9,384 30,311 25,204
Interest expense - discontinued
operations
618 1,324 1,918
3,703
Income taxes - continuing operations
(114) (18) 2,757
2,362
Income taxes - discontinued
operations
(281) - (3,981)
-
Minority interests
1,416 235 1,824
4,339
Adjustments from consolidated joint
ventures
(1,126) - (3,296)
-
Adjustments from unconsolidated
affiliates
7,655 1,113 21,519
3,135
Preferred shareholder dividends
7,461 2,125 17,081
4,628
EBITDA (a)
144,783 27,162 221,737 91,910
Realized portion of deferred gain
on
sale leasebacks
(1,059) (1,048) (3,216) (3,294)
Adjusted EBITDA (a)
143,724 26,114 218,521 88,616
Gain on sale of assets -
discontinued operations
(89,300) - (89,278)
-
Gain on sale of assets - continuing
operations
- -
(48) (42)
Termination costs - discontinued
operations
22 -
9,717 -
Planning costs - New Orleans Jazz
District
603 -
2,124 -
Loss on early extinguishment of debt
- discontinued operations
937 -
937 -
Comparable EBITDA
$55,986 $26,114 $141,973 $88,574
(a) EBITDA and Adjusted EBITDA have
not been adjusted for the following
amounts included
in net income available to common shareholders
because these
(losses) gains have either occurred during the prior two
years or are
reasonably likely to occur within two years (in
thousands):
-- Gain on sale of assets
from discontinued operations amounted to
$89,300
and $89,278 for the three and nine months ended September 30,
2006,
respectively.
-- Gain on sale of assets
from continuing operations amounted to $48 and
$42
for the nine months ended September 30, 2006 and 2005,
respectively.
-- Termination costs included
in discontinued operations related to the
termination
of the management agreement at the Marriott Rancho Las
Palmas
property amounted to $22 and $9,717 for the three and nine
months
ended September 30, 2006, respectively.
-- Planning costs related
to the New Orleans Jazz District surrounding
the
Hyatt Regency New Orleans hotel amounted to $603 and $2,124 for
the
three and nine months ended September 30, 2006, respectively.
-- Loss on early extinguishment
of debt from discontinued operations
amounted
to $937 for the three and nine months ended September 30,
2006.
Reconciliation of Net Income
(Loss) Available to Common Shareholders to
Funds From Operations
(FFO), FFO - Fully Converted and Comparable FFO
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006
2005
Net income (loss) available to common
shareholders
$91,427 $(1,227) $101,712 $9,501
Depreciation and amortization -
continuing operations
21,892 11,748 49,357 31,740
Depreciation and amortization -
discontinued operations
- 2,478 2,535
7,298
Gain on sale of assets - continuing
operations
- -
(48) (42)
Gain on sale of assets - discontinued
operations
(89,300) - (89,278)
-
Realized portion of deferred gain
on
sale leasebacks
(1,059) (1,048) (3,216) (3,294)
Deferred tax expense on realized
portion of deferred gain
on sale leasebacks
335 320
981 995
Minority interests adjustments
(331) (3,055) (1,408) (8,302)
Adjustments from consolidated joint
ventures
(566) - (1,702)
-
Adjustments from unconsolidated
affiliates
1,444 529 4,910
1,574
FFO (a)
23,842 9,745 63,843 39,470
Convertible minority interests
1,747 3,290 3,232
12,641
FFO - Fully Converted (a)
25,589 13,035 67,075 52,111
Termination costs - discontinued
operations
22 -
9,717 -
Deferred tax benefit on termination
costs - discontinued operations
(9) - (3,790)
-
Planning costs - New Orleans Jazz
District
603 -
2,124 -
Deferred tax benefit on planning
costs - New Orleans Jazz District
(168) -
(680) -
Loss on early extinguishment of debt
- discontinued operations
937 -
937 -
Comparable FFO
$26,974 $13,035 $75,383 $52,111
Comparable FFO per weighted-average
fully converted shares and units
outstanding
$0.35 $0.28 $1.11
$1.24
Weighted-average fully converted
shares and units outstanding
77,264 46,216 67,718 42,080
(a) FFO and FFO - Fully Converted have
not been adjusted for the following
amounts included
in net income available to common shareholders
because these
(losses) gains have either occurred during the prior two
years or are
reasonably likely to occur within two years (in
thousands):
-- Termination costs included
in discontinued operations related to the
termination
of the management agreement at the Marriott Rancho Las
Palmas
property amounted to $22 and $9,717 for the three and nine
months
ended September 30, 2006, respectively.
-- Deferred tax benefit
on termination costs included in discontinued
operations
amounted to $9 and $3,790 for the three and
nine
months ended September 30, 2006, respectively.
-- Planning costs related
to the New Orleans Jazz District surrounding
the
Hyatt Regency New Orleans hotel amounted to $603 and $2,124
for
the three and nine months ended September 30, 2006, respectively.
-- Deferred tax benefit
on planning costs related to the New Orleans
Jazz
District surrounding the Hyatt Regency New Orleans hotel
amounted
to $168 and $680 for the three and nine months ended
September
30, 2006, respectively.
-- Loss on early extinguishment
of debt from discontinued operations
amounted
to $937 for the three and nine months ended September 30,
2006.
Seasonality by Geographic Region
Same store revenues have been adjusted
to show hotel performance on a
comparable quarter-over-quarter basis.
Adjustments include (i) exclusion
of Hyatt Regency New Orleans due to
a hurricane that ceased significant
operations in August 2005; (ii) exclusion
of Hilton Burbank Airport and
Convention Center, Marriott Rancho
Las Palmas, Marriott Schaumburg and
Embassy Suites Lake Buena Vista Resort
as their results of operations were
reclassified to discontinued operations;
and (iii) presentation of the
hotels without regard to either ownership
structure or leaseholds.
Acquisition properties and the related
dates of purchase are as follows:
Hotel del Coronado (January 9, 2006),
Four Seasons Washington, D.C. (March
1, 2006), Westin St. Francis (June
1, 2006) Ritz-Carlton Laguna Niguel
(July 7, 2006), Marriott London Grosvenor
Square (August 31, 2006) and
Fairmont Scottsdale Princess (September
1, 2006).
United States Hotels (as of September
30, 2006)
Acquisition property revenues - 5
Properties and 3,129 Rooms
Same store property revenues - 8 Properties
and 4,225 Rooms
Three Months Ended
December March June
September
31, 2005 31, 2006 30, 2006 30, 2006
Total
Acquisition property
revenues
$- $31,667 $59,198 $111,663
$202,528
Same store property
revenues
98,504 94,247 105,914 99,736
398,401
Total revenues
$98,504 $125,914 $165,112 $211,399 $600,929
Same store seasonality %
24.7% 23.7% 26.6%
25.0% 100.0%
Mexican Hotels (as of September 30,
2006)
Same store property revenues - 2 Properties
and 385 Rooms
Three Months Ended
December March June
September
31, 2005 31, 2006 30, 2006 30, 2006
Total
Same store property
revenues
$15,891 $20,119 $17,338 $12,233
$65,581
Same store seasonality %
24.2% 30.7% 26.4%
18.7% 100.0%
Total North American Hotels (as of
September 30, 2006)
Acquisition property revenues - 5
Properties and 3,129 Rooms
Same store property revenues - 10
Properties and 4,610 Rooms
Three Months Ended
December March June
September
31, 2005 31, 2006 30, 2006 30, 2006
Total
Acquisition property
revenues
$- $31,667 $59,198 $111,663
$202,528
Same store property
revenues
114,395 114,366 123,252 111,969
463,982
Total revenues
$114,395 $146,033 $182,450 $223,632 $666,510
Same store seasonality %
24.7% 24.6% 26.6%
24.1% 100.0%
European Hotels (as of September 30,
2006)
Acquisition property revenues - 1
Property and 236 Rooms
Same store property revenues - 3 Properties
and 841 Rooms
Three Months Ended
December March June
September
31, 2005 31, 2006 30, 2006 30, 2006
Total
Acquisition property
revenues
$- $-
$- $3,705 $3,705
Same store property
revenues
18,923 17,303 25,814
27,433 89,473
Total revenues
$18,923 $17,303 $25,814 $31,138
$93,178
Same store seasonality %
21.1% 19.3% 28.9%
30.7% 100.0%
Operating Statistics by Geographic Region
Operating results have been adjusted
to show hotel performance on a
comparable period basis. Adjustments
include (i) exclusion of Fairmont
Chicago, Hotel del Coronado, Four
Seasons Washington, D.C., Westin St.
Francis, Ritz-Carlton Laguna Niguel,
Marriott London Grosvenor Square and
Fairmont Scottsdale Princess partial
year results for the three months
ended September 30, 2006 and 2005;
exclusion of InterContinental Chicago,
InterContinental Miami, Fairmont Chicago,
Hotel del Coronado and Four
Seasons Washington, D.C., Westin St.
Francis, Ritz-Carlton Laguna Niguel,
Marriott London Grosvenor Square and
Fairmont Scottsdale Princess partial
year results for the nine months ended
September 30, 2006 and 2005; (ii)
exclusion of Hyatt Regency New Orleans
due to a hurricane that ceased
significant operations in August 2005;
(iii) exclusion of Embassy Suites
Lake Buena Vista Resort, Marriott
Schaumburg, Marriott Rancho Las Palmas
and Hilton Burbank Airport and Convention
Center as these properties
results of operations were reclassified
to discontinued operations; and
(iv) presentation of the European
hotels without regard to either
ownership structure or leaseholds.
United States
Hotels (as of September 30, 2006)
7 Properties (three month period) and
5 Properties (nine month period)
3,540 Rooms (three month period) and
2,107 (six month period)
Three Months Ended Nine
Months Ended
September 30,
September 30,
2006 2005 Change
2006 2005 Change
Average Daily Rate $198.88 $178.36
11.5% $200.27 $186.73 7.3%
Average Occupancy
72.0% 72.3% (0.3)pts 73.2%
72.7% 0.5 pts
RevPAR
$143.21 $128.99 11.0% $146.63
$135.72 8.0%
Total RevPAR
$254.83 $236.54 7.7% $289.04
$267.94 7.9%
Property EBITDA
Margin
25.4% 24.0% 1.4 pts 25.4%
23.1% 2.3 pts
Mexican Hotels (as of September 30,
2006)
2 Properties
385 Rooms
Three Months Ended Nine
Months Ended
September 30,
September 30,
2006 2005 Change
2006 2005 Change
Average Daily
Rate
$340.91 $305.59 11.6% $429.77
$365.39 17.6%
Average Occupancy
57.5% 66.3% (8.8)pts 66.7%
70.6% (3.9)pts
RevPAR
$196.10 $202.47 -3.1% $286.50
$257.86 11.1%
Total RevPAR
$345.37 $361.73 -4.5% $473.10
$440.73 7.3%
Property EBITDA
Margin
17.3% 21.9% (4.6)pts 33.5%
30.9% 2.6 pts
North American Same Store Hotels (as
of September 30, 2006)
9 Properties (three month period) and
7 Properties (nine month period)
3,925 Rooms (three month period) and
2,492 Rooms (nine month period)
Three Months Ended Nine
Months Ended
September 30,
September 30,
2006 2005 Change
2006 2005 Change
Average Daily
Rate
$210.33 $189.81 10.8% $233.39
$213.67 9.2%
Average Occupancy
70.6% 71.7% (1.1)pts 72.2%
72.4% (0.2)pts
RevPAR
$148.45 $136.15 9.0% $168.49
$154.60 9.0%
Total RevPAR
$263.79 $248.73 6.1% $317.80
$294.65 7.9%
Property EBITDA
Margin
24.3% 23.7% 0.6 pts 27.3%
24.9% 2.4 pts
European Hotels (as of September 30,
2006)
3 Properties
841 Rooms
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006 2005 Change
2006 2005 Change
Average Daily Rate $296.44
$265.23 11.8 % $262.32 $249.41 5.2
%
Average Occupancy
89.9% 86.7% 3.2 pts 84.6%
80.1% 4.5 pts
RevPAR
$266.36 $229.86 15.9 % $221.83 $199.80
11.0 %
Total RevPAR
$354.56 $304.79 16.3 % $307.28 $276.45
11.2 %
Property EBITDA
Margin
44.8% 46.0% (1.2)pts 39.7%
41.3% (1.6)pts
Selected Financial and Operating Information by Property
(In Thousands, Except
Operating Information)
The following tables present selected
financial and operating information
by property for the three and nine months ended September
30, 2006 and 2005.
Property EBITDA reflects property net operating income
plus depreciation and
amortization.
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006 2005 Change
2006 2005 Change
FAIRMONT CHICAGO
Selected Financial Information (This
table includes financial information
only for our period of ownership):
Total revenues $17,537
N/A N/A $48,222
N/A N/A
Property EBITDA $4,459
N/A N/A $10,512
N/A N/A
Selected Operating Information (This
table includes statistical
information only for our period of
ownership. For the three months ended
September 30, 2005, average occupancy
was 81.6%, ADR was $191.42, RevPAR
was $156.15 and Total RevPAR was $258.99.
For the nine months ended
September 30, 2005, average occupancy
was 74.3%, ADR was $183.42, RevPAR
was $136.21 and Total RevPAR was $232.56.):
Rooms
685 N/A N/A
685 N/A N/A
Average
occupancy
83.7% N/A N/A
76.1% N/A N/A
ADR
$208.73 N/A N/A
$203.98 N/A N/A
RevPAR
$174.71 N/A N/A
$155.28 N/A N/A
Total RevPAR
$277.73 N/A N/A
$256.21 N/A N/A
FAIRMONT SCOTTSDALE PRINCESS
No table has been provided since we
did not own the property for the
entire periods presented. For
the three months ended September 30, 2006,
average occupancy was 70.2%, ADR was
$146.33, RevPAR was $102.69 and Total
RevPAR was $248.31. For the
three months ended September 30, 2005,
average occupancy was 74.1%, ADR was
$140.23, RevPAR was $103.94 and Total
RevPAR was $257.76. For the
nine months ended September 30, 2006, average
occupancy was 78.2%, ADR was $226.96,
RevPAR was $177.47 and Total RevPAR
was $402.73. For the nine months
ended September 30, 2005, average
occupancy was 78.0%, ADR was $215.61,
RevPAR was $168.12 and Total RevPAR
was $383.39.
FOUR SEASONS WASHINGTON, D.C.
Selected Financial Information (This
table includes financial information
only for our period of ownership):
Total revenues $10,393
N/A N/A
N/A N/A N/A
Property EBITDA
$937 N/A N/A
N/A N/A N/A
Selected Operating Information (This
table includes statistical
information only for our period of
ownership. For the three months ended
September 30, 2005, average occupancy
was 36.0%, ADR was $489.90, RevPAR
was $176.56 and Total RevPAR was $348.43.
For the nine months ended
September 30, 2006, average occupancy
was 69.4%, ADR was $493.04, RevPAR
was $342.22 and Total RevPAR was $610.63.
For the nine months ended
September 30, 2005, average occupancy
was 28.0%, ADR was $532.97, RevPAR
was $149.00 and Total RevPAR was $321.33.):
Rooms
211 N/A N/A
N/A N/A N/A
Average
occupancy
62.9% N/A N/A
N/A N/A N/A
ADR
$465.54 N/A N/A
N/A N/A N/A
RevPAR
$293.04 N/A N/A
N/A N/A N/A
Total RevPAR
$535.39 N/A N/A
N/A N/A N/A
HOTEL DEL CORONADO
Selected Financial Information (This
table includes financial information
only for our period of ownership.
Amounts below are 100% of operations,
of which SHR owns 45%.):
Total revenues $40,154
N/A N/A
N/A N/A N/A
Property
EBITDA
$18,405 N/A N/A
N/A N/A N/A
Selected Operating Information (This
table includes statistical
information only for our period of
ownership. For the three months ended
September 30, 2005, average occupancy
was 92.7%, ADR was $358.33, RevPAR
was $332.01 and Total RevPAR was $604.26.
For the nine months ended
September 30, 2006, average occupancy
was 83.4%, ADR was $345.12, RevPAR
was $287.73 and Total RevPAR was $559.32.
For the nine months ended
September 30, 2005, average occupancy
was 84.7%, ADR was $316.98, RevPAR
was $268.52 and Total RevPAR was $524.40.):
Rooms
679 N/A N/A
N/A N/A N/A
Average
occupancy
90.1% N/A N/A
N/A N/A N/A
ADR
$387.70 N/A N/A
N/A N/A N/A
RevPAR
$349.21 N/A N/A
N/A N/A N/A
Total RevPAR
$642.79 N/A N/A
N/A N/A N/A
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006 2005 Change
2006 2005 Change
HYATT REGENCY LA JOLLA AT AVENTINE
Selected Financial Information:
Total revenues $9,756
$9,908 (1.5)% $30,672 $28,859
6.3%
Property EBITDA $2,461
$2,509 (1.9)% $8,080 $6,934
16.5%
Selected Operating Information:
Rooms
419 419
- 419
419 -
Average
occupancy
77.3% 84.5% (7.2)pts
77.4% 79.7% (2.3)pts
ADR
$187.15 $165.45 13.1% $184.03
$164.39 11.9%
RevPAR
$144.69 $139.77 3.5%
$142.38 $131.04 8.7%
Total RevPAR
$253.09 $257.03 (1.5)% $268.14
$252.29 6.3%
HYATT REGENCY PHOENIX
Selected Financial Information:
Total revenues $6,193
$5,135 20.6% $28,437 $26,836
6.0%
Property EBITDA
$311 $(124) 350.8%
$7,793 $6,809 14.5%
Selected Operating Information:
Rooms
696 696
- 696
696 -
Average
occupancy
55.0% 47.2% 7.8 pts
69.3% 66.0% 3.3 pts
ADR
$108.20 $100.59 7.6%
$134.09 $132.60 1.1%
RevPAR
$59.47 $47.52 25.1%
$92.86 $87.51 6.1%
Total RevPAR
$96.72 $80.19 20.6%
$149.66 $141.24 6.0%
INTERCONTINENTAL CHICAGO
Selected Financial Information (This
table includes financial information
only for our period of ownership):
Total revenues $20,757
$17,621 17.8% $52,699
N/A N/A
Property
EBITDA
$7,391 $6,164 19.9%
$17,187 N/A N/A
Selected Operating Information (This
table includes statistical
information only for our period of
ownership. For the nine months ended
September 30, 2005, average occupancy
was 73.2%, ADR was $177.94, RevPAR
was $130.16 and Total RevPAR was $200.97.):
Rooms
792 807 (15)
792 N/A N/A
Average
occupancy
89.3% 83.0% 6.3 pts
80.0% N/A N/A
ADR
$210.91 $182.46 15.6% $199.66
N/A N/A
RevPAR
$188.25 $151.47 24.3% $159.78
N/A N/A
Total RevPAR
$284.87 $237.34 20.0% $243.73
N/A N/A
INTERCONTINENTAL MIAMI
Selected Financial Information (This
table includes financial information
only for our period of ownership):
Total revenues $6,669
$7,977 (16.4)% $35,078
N/A N/A
Property EBITDA
$(183) $474 (138.6)% $9,747
N/A N/A
Selected Operating Information (This
table includes statistical
information only for our period of
ownership. For the nine months ended
September 30, 2005, average occupancy
was 73.9%, ADR was $150.76, RevPAR
was $111.35 and Total RevPAR was $193.24.):
Rooms
641 641
- 641
N/A N/A
Average
occupancy
52.2% 65.0% (12.8)pts 68.0%
N/A N/A
ADR
$132.29 $119.30 10.9% $174.99
N/A N/A
RevPAR
$69.11 $77.57 (10.9)% $118.96
N/A N/A
Total RevPAR
$113.09 $135.27 (16.4)% $200.45
N/A N/A
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006 2005 Change
2006 2005 Change
LOEWS SANTA MONICA BEACH HOTEL
Selected Financial Information:
Total revenues $12,423
$12,044 3.1% $35,291 $33,305
6.0%
Property
EBITDA
$4,373 $4,298 1.7%
$11,599 $11,137 4.1%
Selected Operating Information:
Rooms
342 342
- 342
342 -
Average
occupancy
89.0% 90.8% (1.8)pts
87.3% 87.5% (0.2)pts
ADR
$302.84 $281.16 7.7%
$283.57 $263.92 7.4%
RevPAR
$269.49 $255.36 5.5%
$247.54 $231.00 7.2%
Total RevPAR
$394.83 $382.79 3.1%
$377.99 $356.71 6.0%
MARRIOTT LINCOLNSHIRE RESORT
Selected Financial Information:
Total revenues $10,161
$9,297 9.3% $27,496 $25,514
7.8%
Property
EBITDA
$2,327 $1,816 28.1%
$5,134 $3,811 34.7%
Selected Operating Information:
Rooms
389 390 (1)
389 390 (1)
Average
occupancy
74.6% 75.5% (0.9)pts
63.7% 66.3% (2.6)pts
ADR
$139.30 $121.89 14.3% $135.76
$120.44 12.7%
RevPAR
$103.88 $91.99 12.9%
$86.42 $79.85 8.2%
Total RevPAR
$310.96 $283.79 9.6%
$280.49 $259.61 8.0%
RITZ-CARLTON HALF MOON BAY
Selected Financial Information:
Total revenues $16,240
$14,663 10.8% $41,999 $37,486
12.0%
Property
EBITDA
$4,174 $3,257 28.2%
$8,961 $6,451 38.9%
Selected Operating Information:
Rooms
261 261
- 261
261 -
Average
occupancy
79.4% 76.0% 3.4 pts
71.8% 68.6% 3.2 pts
ADR
$374.61 $356.22 5.2%
$344.50 $326.57 5.5%
RevPAR
$297.56 $270.61 10.0% $247.45
$224.01 10.5%
Total RevPAR
$676.33 $610.65 10.8% $589.43
$526.10 12.0%
RITZ-CARLTON LAGUNA NIGUEL
No table has been provided since we
did not own the property for the
entire periods presented. For
the three months ended September 30, 2006,
average occupancy was 78.0%, ADR was
$421.13, RevPAR was $328.60 and Total
RevPAR was $643.97. For the
three months ended September 30, 2005,
average occupancy was 66.7%, ADR was
$397.26, RevPAR was $265.15 and Total
RevPAR was $524.59. For the
nine months ended September 30, 2006, average
occupancy was 70.4%, ADR was $381.97,
RevPAR was $269.05 and Total RevPAR
was $549.47. For the nine months
ended September 30, 2005, average
occupancy was 50.5%, ADR was $343.97,
RevPAR was $173.55 and Total RevPAR
was $364.25.
WESTIN ST. FRANCIS
Selected Financial Information (This
table includes financial information
only for our period of ownership):
Total revenues $32,791
N/A N/A
N/A N/A N/A
Property
EBITDA
$7,072 N/A N/A
N/A N/A N/A
Selected Operating Information (This
table includes statistical
information only for our period of
ownership. For the three months ended
September 30, 2005, average occupancy
was 89.0%, ADR was $171.92, RevPAR
was $152.92 and Total RevPAR was $261.38.
For the nine months ended
September 30, 2006, average occupancy
was 79.7%, ADR was $197.28, RevPAR
was $157.27 and Total RevPAR was $294.47.
For the nine months ended
September 30, 2005, average occupancy
was 83.1%, ADR was $175.56, RevPAR
was $145.90 and Total RevPAR was $265.02.):
Rooms
1,195 N/A N/A
N/A N/A N/A
Average
occupancy
86.7% N/A N/A
N/A N/A N/A
ADR
$193.73 N/A N/A
N/A N/A N/A
RevPAR
$167.89 N/A N/A
N/A N/A N/A
Total RevPAR
$298.26 N/A N/A
N/A N/A N/A
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006 2005 Change
2006 2005 Change
HYATT REGENCY NEW ORLEANS
Selected Financial Information (For
2006, no financial information is
provided as the hotel is under redevelopment):
Total revenues
N/A $6,024 N/A
N/A $37,981 N/A
Property EBITDA
N/A $126 N/A
N/A $9,962 N/A
Selected Operating Information (For
2006, no statistics are provided as
the hotel is under redevelopment.
The number of rooms for the three and
nine months ended September 30, 2005
was calculated using an average rate
assuming no rooms were in use for
the month of September due to the
hurricane.):
Rooms
N/A 759 N/A
N/A 1,041 N/A
Average
occupancy
N/A 52.5% N/A
N/A 59.6% N/A
ADR
N/A $113.10 N/A
N/A $137.32 N/A
RevPAR
N/A $59.39 N/A
N/A $81.86 N/A
Total RevPAR
N/A $86.27 N/A
N/A $133.65 N/A
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006 2005 Change
2006 2005 Change
FOUR SEASONS MEXICO CITY
Selected Financial Information:
Total revenues $4,077
$5,173 (21.2)% $15,882 $16,496 (3.7)%
Property
EBITDA
$267 $872 (69.4)%
$3,160 $3,476 (9.1)%
Selected Operating Information:
Rooms
240 240
- 240
240 -
Average
occupancy
46.8% 59.9% (13.1)pts 58.2%
64.0% (5.8)pts
ADR
$228.16 $213.36 6.9%
$237.72 $219.47 8.3%
RevPAR
$106.69 $127.73 (16.5)% $138.33
$140.37 (1.5)%
Total RevPAR
$184.65 $234.28 (21.2)% $242.40
$251.77 (3.7)%
FOUR SEASONS PUNTA MITA RESORT
Selected Financial Information:
Total revenues $8,156
$7,473 9.1% $33,808 $29,225
15.7%
Property
EBITDA
$1,845 $1,896 (2.7)% $13,495
$10,667 26.5%
Selected Operating Information:
Rooms
145 140
5 145
140 5
Average
occupancy
75.3% 77.2% (1.9)pts
80.7% 81.9% (1.2)pts
ADR
$456.73 $428.16 6.7%
$659.38 $560.75 17.6%
RevPAR
$344.09 $330.59 4.1%
$532.21 $459.27 15.9%
Total RevPAR
$611.39 $580.20 5.4%
$855.68 $764.65 11.9%
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006 2005 Change
2006 2005 Change
INTERCONTINENTAL PRAGUE
Selected Financial Information (Amounts
below are 100% of operations, of
which SHR owned 35% prior to August
3, 2006):
Total revenues $9,371
$9,068 3.3% $26,522 $25,743
3.0%
Property
EBITDA
$4,090 $4,268 (4.2)% $11,310
$11,746 (3.7)%
Selected Operating Information:
Rooms
372 372
- 372
372 -
Average
Occupancy
88.0% 86.6% 1.4 pts
82.2% 79.7% 2.5 pts
ADR
$209.23 $205.35 1.9%
$206.43 $208.00 (0.8)%
RevPAR
$184.15 $177.93 3.5%
$169.66 $165.77 2.3%
Total RevPAR
$273.81 $264.96 3.3%
$261.16 $253.49 3.0%
MARRIOTT HAMBURG
Selected Financial Information:
Total revenues $5,258
$4,165 26.2% $15,599 $12,619
23.6%
Property
EBITDA
$1,324 $1,224 8.2%
$3,890 $3,786 2.7%
Selected Operating Information:
Rooms
277 277
- 277
277 -
Average
occupancy
88.5% 84.7% 3.8 pts
85.6% 78.3% 7.3 pts
ADR
$167.22 $136.72 22.3% $168.64
$146.20 15.3%
RevPAR
$148.04 $115.82 27.8% $144.42
$114.46 26.2%
Total RevPAR
$206.33 $163.44 26.2% $206.28
$166.87 23.6%
MARRIOTT LONDON GROSVENOR SQUARE
No table has been provided since we
did not own the property for the
entire periods presented. For
the three months ended September 30, 2006,
average occupancy was 90.1%, ADR was
$366.31, RevPAR was $330.02 and Total
RevPAR was $453.60. For the
three months ended September 30, 2005,
average occupancy was 81.6%, ADR was
$289.91, RevPAR was $236.60 and Total
RevPAR was $317.91. For the
nine months ended September 30, 2006, average
occupancy was 81.1%, ADR was $341.17,
RevPAR was $276.69 and Total RevPAR
was $404.64. For the nine months
ended September 30, 2005, average
occupancy was 78.0%, ADR was $297.88,
RevPAR was $232.35 and Total RevPAR
was $325.48.
PARIS MARRIOTT CHAMPS ELYSEES
Selected Financial Information:
Total revenues $12,804
$10,349 23.7% $28,428 $25,108
13.2%
Property
EBITDA
$6,864 $5,360 28.1%
$12,797 $10,686 19.8%
Selected Operating Information:
Rooms
192 192
- 192
192 -
Average
occupancy
95.3% 89.5% 5.8 pts
87.6% 83.5% 4.1 pts
ADR
$625.66 $553.01 13.1% $495.96
$465.46 6.6%
RevPAR
$596.33 $494.99 20.5% $434.57
$388.86 11.8%
Total RevPAR
$724.86 $585.88 23.7% $542.35
$479.01 13.2%
Reconciliation of Property EBITDA to EBITDA
(in thousands)
Three Months Ended September 30,
2006
2005
Property Property
Hotel
EBITDA EBITDA EBITDA EBITDA
Fairmont Chicago (a)
$4,459 $4,459 $-
$2,367
Fairmont Scottsdale Princess
(b) -
1,254 -
-
Four Seasons Washington, D.C.
(c) 937
937 -
-
Hotel del Coronado (d)
18,405 -
- -
Hyatt Regency La Jolla at Aventine
2,461 2,461 2,509
2,509
Hyatt Regency Phoenix
311 311 (124)
(124)
InterContinental Chicago (e)
7,391 7,391 6,164
6,164
InterContinental Miami (e)
(183) (183) 474
474
Loews Santa Monica Beach Hotel
4,373 4,373 4,298
4,298
Marriott Lincolnshire Resort
2,327 2,327 1,816
1,816
Ritz-Carlton Half Moon Bay
4,174 4,174 3,257
3,257
Ritz-Carlton Laguna Niguel (f)
- 7,329
- -
Westin St. Francis (g)
7,072 7,072 -
-
Hyatt Regency New Orleans
- (637)
126 126
Four Seasons Mexico City
267 267
872 872
Four Seasons Punta Mita Resort
1,845 1,845 1,896
1,896
InterContinental Prague (h)
4,090 2,752 4,268
-
Marriott Hamburg (i)
1,324 459 1,224
17
Marriott London Grosvenor Square
(j) - 1,344
- -
Paris Marriott Champs Elysees
(i) 6,864 3,439
5,360 2,185
$66,117 $51,374 $32,140 $25,857
Adjustments:
Corporate expenses
$(5,764) $(5,379)
Interest income
843
357
Equity in earnings of joint
ventures
1,201
757
Other income, net
1,010
1,436
Income (loss) from discontinued
operations (excluding
minority
interest)
89,194
(781)
Depreciation and amortization
-
discontinued operations
-
2,478
Interest expense - discontinued
operations
618
1,324
Income taxes - discontinued
operations
(281)
-
Minority interest income (expense)
in
consolidated affiliates
58
-
Adjustments from consolidated
joint
ventures
(1,126)
-
Adjustments from unconsolidated
affiliates
7,655
1,113
Other adjustments
1
-
EBITDA
$144,783 $27,162
(a) On September 1, 2005, we purchased
the Fairmont Chicago. We have
included the
results of this hotel in Property EBITDA and EBITDA above
for our period
of ownership.
(b) On September 1, 2006, we purchased
the Fairmont Scottsdale Princess.
We have included
the results of this hotel in Property EBITDA and
EBITDA above
for our period of ownership.
(c) On March 1, 2006, we purchased
the Four Seasons Washington, D.C. We
have included
the results of this hotel in Property EBITDA and EBITDA
above for
our period of ownership.
(d) On January 9, 2006 we closed the
acquisition of a 45% joint venture
ownership
interest in SHC KSL Partners, LP, the existing owner of the
Hotel del
Coronado in Coronado, California (San Diego). We account
for our investment
under the equity method of accounting. Our equity
in earnings
of the hotel joint venture is included in equity in
earnings of
joint ventures in our consolidated statements of
operations.
We have included the results of this hotel in Property
EBITDA above
for our period of ownership.
(e) On April 1, 2005, we purchased
an 85% controlling interest in the
joint ventures
that own the InterContinental Chicago and Miami hotels.
We consolidate
these hotels for reporting purposes. We have not
included the
results of these hotels in Property EBITDA above for the
nine months
ended September 30, 2005 since we did not own the
properties
for the entire period.
(f) On July 7, 2006, we purchased the
Ritz-Carlton Laguna Niguel. We have
included the
results of this hotel in Property EBITDA and EBITDA above
for our period
of ownership.
(g) On June 1, 2006, we purchased the
Westin St. Francis. We have not
included the
results of this hotel in Property EBITDA above since we
did not own
the property for the entire periods.
(h) On August 3, 2006, we purchased
our joint venture partner's 65%
interest in
the entity that owns the InterContinental Prague. Prior
to August
3, 2006 our equity in earnings of the hotel joint venture is
included in
equity in earnings of joint ventures in our consolidated
statements
of operations.
(i) We have leasehold interests in
these properties. Therefore, EBITDA
represents
the lease revenue less the lease expense recorded in our
statements.
Property EBITDA represents the revenue less expenses
generated
by the property.
(j) On August 31, 2006, we purchased
the Marriott London Grosvenor Square.
We have included
the results of this hotel in Property EBITDA and
EBITDA above
for our period of ownership.
Reconciliation of Property EBITDA to EBITDA
(in thousands)
Nine Months Ended September 30,
2006
2005
Property Property
Hotel
EBITDA EBITDA EBITDA EBITDA
Fairmont Chicago (a)
$10,512 $10,512 $-
$2,367
Fairmont Scottsdale Princess
(b) -
1,254 -
-
Four Seasons Washington, D.C.
(c) -
6,251 -
-
Hotel del Coronado (d)
- -
- -
Hyatt Regency La Jolla at Aventine
8,080 8,080 6,934
6,934
Hyatt Regency Phoenix
7,793 7,793 6,809
6,809
InterContinental Chicago (e)
17,187 17,187 -
12,523
InterContinental Miami (e)
9,747 9,747 -
3,693
Loews Santa Monica Beach Hotel
11,599 11,599 11,137 11,137
Marriott Lincolnshire Resort
5,134 5,134 3,811
3,811
Ritz-Carlton Half Moon Bay
8,961 8,961 6,451
6,451
Ritz-Carlton Laguna Niguel (f)
- 7,329
- -
Westin St. Francis (g)
- 9,689
- -
Hyatt Regency New Orleans
- (2,120) 9,962
9,962
Four Seasons Mexico City
3,160 3,160 3,476
3,476
Four Seasons Punta Mita Resort
13,495 13,495 10,667 10,667
InterContinental Prague (h)
11,310 2,752 11,746
-
Marriott Hamburg (i)
3,890 476 3,786
87
Marriott London Grosvenor Square
(j)
- 1,344
- -
Paris Marriott Champs Elysees
(i) 12,797 4,241
10,686 2,653
$123,665 $126,884 $85,465 $80,570
Adjustments:
Corporate expenses
$(18,353) $(14,786)
Interest income
3,264
1,063
Equity in earnings of joint
ventures
254
2,315
Other income, net
3,688
4,346
Income (loss) from discontinued
operations (excluding
minority
interest)
88,235
4,266
Depreciation and amortization
-
discontinued operations
2,535
7,298
Interest expense - discontinued
operations
1,918
3,703
Income taxes - discontinued
operations
(3,981)
-
Minority interest income (expense)
in
consolidated affiliates
(731)
-
Adjustments from consolidated
joint ventures
(3,296)
-
Adjustments from unconsolidated
affiliates
21,519
3,135
Other adjustments
(199)
-
EBITDA
$221,737
$91,910
(a) On September 1, 2005, we purchased
the Fairmont Chicago. We have
included the
results of this hotel in Property EBITDA and EBITDA above
for our period
of ownership.
(b) On September 1, 2006, we purchased
the Fairmont Scottsdale Princess.
We have included
the results of this hotel in Property EBITDA and
EBITDA above
for our period of ownership.
(c) On March 1, 2006, we purchased
the Four Seasons Washington, D.C. We
have included
the results of this hotel in Property EBITDA and EBITDA
above for
our period of ownership.
(d) On January 9, 2006 we closed the
acquisition of a 45% joint venture
ownership
interest in SHC KSL Partners, LP, the existing owner of the
Hotel del
Coronado in Coronado, California (San Diego). We account
for our investment
under the equity method of accounting. Our equity
in earnings
of the hotel joint venture is included in equity in
earnings of
joint ventures in our consolidated statements of
operations.
We have included the results of this hotel in Property
EBITDA above
for our period of ownership.
(e) On April 1, 2005, we purchased
an 85% controlling interest in the
joint ventures
that own the InterContinental Chicago and Miami hotels.
We consolidate
these hotels for reporting purposes. We have not
included the
results of these hotels in Property EBITDA above for the
nine months
ended September 30, 2005 since we did not own the
properties
for the entire period.
(f) On July 7, 2006, we purchased the
Ritz-Carlton Laguna Niguel. We have
included the
results of this hotel in Property EBITDA and EBITDA above
for our period
of ownership.
(g) On June 1, 2006, we purchased the
Westin St. Francis. We have not
included the
results of this hotel in Property EBITDA above since we
did not own
the property for the entire periods.
(h) On August 3, 2006, we purchased
our joint venture partner's 65%
interest in
the entity that owns the InterContinental Prague. Prior
to August
3, 2006 our equity in earnings of the hotel joint venture is
included in
equity in earnings of joint ventures in our consolidated
statements
of operations.
(i) We have leasehold interests in
these properties. Therefore, EBITDA
represents
the lease revenue less the lease expense recorded in our
statements.
Property EBITDA represents the revenue less expenses
generated
by the property.
(j) On August 31, 2006, we purchased
the Marriott London Grosvenor Square.
We have included
the results of this hotel in Property EBITDA and
EBITDA above
for our period of ownership.
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