| Consolidated Statements of Operations (in thousands,
except per share data)
Three Months Ended
March 31,
2008
2007
Revenues:
Rooms
$139,777 $126,637
Food and beverage
83,545
80,813
Other hotel operating revenue
27,459
26,068
250,781
233,518
Lease revenue
1,287
4,412
Total revenues
252,068
237,930
Operating Costs and Expenses:
Rooms
34,773
31,495
Food and beverage
59,465
55,288
Other departmental expenses
65,319
60,713
Management fees
10,232
8,722
Other hotel expenses
16,770
16,455
Lease expense
4,327
3,780
Depreciation and amortization
28,293
25,549
Corporate expenses
7,430
7,117
Total operating costs and expenses
226,609
209,119
Operating income
25,459
28,811
Interest expense
(21,927) (20,963)
Interest income
595
489
Loss on early extinguishment of debt
-
(4,319)
Equity in losses of joint ventures
(779)
(2,883)
Foreign currency exchange loss
(3,209)
(1,655)
Other expenses, net
(443)
(157)
Loss before income taxes, minority
interests, loss on sale of
minority interests in hotel
properties and discontinued
operations
(304)
(677)
Income tax expense
(302)
(1,353)
Minority interest in SHR's
operating partnership
7
30
Minority interest in consolidated
affiliates
897
(422)
Income (loss) before loss on sale
of minority interests in hotel
properties and discontinued
operations
298
(2,422)
Loss on sale of minority interests
in hotel properties
(5)
-
Income (loss) from continuing
operations
293
(2,422)
Income from discontinued
operations, net of tax and
minority interests
411
325
Net income (loss)
704
(2,097)
Preferred shareholder dividends
(7,721)
(7,462)
Net loss available
to common
shareholders
$(7,017) $(9,559)
Basic and Diluted Loss Per Share:
Loss from continuing operations
available to common
shareholders per share
$(0.10)
$(0.13)
Income from discontinued
operations per share
0.01
-
Net loss available to common
shareholders per share
$(0.09)
$(0.13)
Weighted average common shares
outstanding
74,950
75,836
Consolidated Balance Sheets
(in thousands, except share data)
March 31, December 31,
2008
2007
Assets
Investment in hotel properties, net
$2,481,269 $2,427,273
Goodwill
477,529 462,536
Intangible assets, net of
accumulated amortization of $3,818
and $3,271
44,822
45,420
Investment in joint ventures
78,958
78,801
Cash and cash equivalents
107,323 111,494
Restricted cash and cash equivalents
41,872
39,161
Accounts receivable, net of
allowance for doubtful accounts of
$2,108 and $1,965
89,934
82,217
Deferred financing costs, net of
accumulated amortization of $4,212
and $4,809
13,602
14,868
Deferred tax assets
46,763
41,790
Other assets
54,551
62,736
Total assets
$3,436,623 $3,366,296
Liabilities and Shareholders' Equity
Liabilities:
Mortgages and other debt payable
$1,376,654 $1,363,855
Exchangeable senior notes, net of
discount
179,280 179,235
Bank credit facility
155,000 109,000
Accounts payable and accrued
expenses
306,861 266,324
Distributions payable
18,258
18,179
Deferred tax liabilities
39,798
36,407
Deferred gain on sale of hotels
122,508 114,292
Total liabilities
2,198,359 2,087,292
Minority interests in SHR's
operating partnership
10,891
11,512
Minority interests in consolidated
affiliates
30,205
30,653
Shareholders' equity:
8.50% Series A Cumulative
Redeemable Preferred Stock ($0.01
par value; 4,488,750 shares
issued and outstanding;
liquidation preference $25.00
per share)
108,206 108,206
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)
110,775 110,775
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)
138,940 138,940
Common shares ($0.01 par value;
150,000,000 common shares
authorized; 74,407,452 and
74,371,230 common shares issued
and outstanding)
744
742
Additional paid-in capital
1,203,061 1,201,503
Accumulated deficit
(329,943) (304,922)
Accumulated other comprehensive
loss
(34,615) (18,405)
Total shareholders' equity
1,197,168 1,236,839
Total liabilities and
shareholders' equity
$3,436,623 $3,366,296
FINANCIAL HIGHLIGHTS
Supplemental Financial Data
(in millions, except per share information)
Three Months Ended
March 31, 2008
Results vs. Previous Guidance
Actual Guidance
North American Total RevPAR growth
0.8% 0.5% - 1.5%
North American RevPAR growth
1.3% 1.5% - 2.5%
Comparable EBITDA
$55.4 $54.4 - 57.4
Comparable FFO per diluted share
$0.31 $0.30 - 0.34
(in thousands, except per share information)
March 31, 2008
Pro Rata Share Consolidated
Capitalization
Common shares outstanding
74,407
74,407
Operating partnership units
outstanding
976
976
Stock options outstanding
885
885
Restricted stock units outstanding
1,289
1,289
Combined shares, options and units
outstanding
77,557
77,557
Common stock price at end of period
$13.13
$13.13
Common equity capitalization
$1,018,323 $1,018,323
Preferred equity capitalization
370,236 370,236
Consolidated debt
1,710,934 1,710,934
Pro rata share of unconsolidated
debt
274,500
-
Pro rata share of consolidated debt
(107,065)
-
Cash and cash equivalents
(107,323) (107,323)
Total enterprise value
$3,159,605 $2,992,170
Net Debt / Total Enterprise Value
56.1%
53.6%
Preferred Equity / Total Enterprise
Value
11.7%
12.4%
Common Equity / Total Enterprise
Value
32.2%
34.0%
Dividends Per Share
Common dividends declared (holders
of record on March 28, 2008)
$0.24
Preferred Series A dividends
declared (holders of record on
March 21, 2008)
$0.53125
Preferred Series B dividends
declared (holders of record on
March 21, 2008)
$0.51563
Preferred Series C dividends
declared (holders of record on
March 21, 2008)
$0.51563
Discontinued Operations
The results of operations of hotels sold are classified
as discontinued
operations and segregated in the consolidated
statements of operations for
all periods presented. On December 28, 2007,
we sold the Hyatt Regency
New Orleans for a net sales price of $28.0 million.
The following is a summary of income from discontinued
operations for the
three months ended March 31, 2008 and 2007 (in
thousands):
Three Months Ended
March 31,
2008
2007
Hotel operating revenues
$-
$98
Operating costs and expenses
-
238
Operating loss
-
(140)
Interest expense
-
(34)
Interest income
-
442
Income tax benefit
-
61
Gain on sale
416
-
Minority interests
(5)
(4)
Income from discontinued operations
$411
$325
Investment in the Hotel del Coronado
(in thousands)
On January 9, 2006, we purchased a 45% interest
in the joint venture that
owns the Hotel del Coronado. We account
for this investment using the
equity method of accounting.
Three Months Ended
March 31,
2008 2007
Total revenues (100%)
$34,858 $30,498
Property EBITDA (100%)
$11,449 $9,872
Equity in losses of joint venture
(SHR 45% ownership)
Property EBITDA
$5,152 $4,442
Depreciation and amortization
(1,900) (1,960)
Interest expense
(4,411) (5,033)
Other expense, net
(28) (50)
Income taxes
340 (95)
Equity in losses of joint venture
$(847) $(2,696)
EBITDA Contribution from investment
in Hotel del Coronado
Equity in losses of joint venture
$(847) $(2,696)
Depreciation and amortization
1,900 1,960
Interest expense
4,411 5,033
Income taxes
(340) 95
EBITDA Contribution for investment in
Hotel del Coronado
$5,124 $4,392
FFO Contribution from investment in
Hotel del Coronado
Equity in losses of joint venture
$(847) $(2,696)
Depreciation and amortization
1,900 1,960
FFO Contribution for investment in
Hotel del Coronado
$1,053 $(736)
Spread
Interest over
Debt
Rate LIBOR Loan Amount Maturity Date
CMBS Mortgage and Mezzanine 4.78%
208 bp $610,000 January 2011 (a)
Revolving Credit Facility
5.20% 250 bp -
January 2011 (a)
610,000
Cash and cash equivalents
11,259
Net Debt
$598,741
(a) Includes extension options.
Effective LIBOR Cap Notional
Cap
Date Rate Amount
Maturity
CMBS Mortgage and Mezzanine Loan
January 5.0% to $630,000 January
and Revolving Credit Facility Cap
2006 January
2009
2008
5.5%
January
2008 to
maturity
CMBS Mortgage and Mezzanine Loan
January 5.0% $630,000 January
and Revolving Credit Facility Cap
2009
2011
Summary of Residential Activity
(in thousands)
On January 9, 2006, we purchased a 45% interest
in a joint venture that
owns the North Beach Venture development adjacent
to the Hotel del
Coronado. We account for this investment
using the equity method of
accounting. We own a 31% interest in a joint
venture that is developing
the Four Seasons Residence Club Punta Mita (RCPM)
adjacent to the Four
Seasons Punta Mita Resort. We account for
this investment using the
equity method of accounting. In addition,
we engage in certain activities
related to potential development projects such
as condominium-hotel units,
fractional ownership units and other for-sale
residential units.
Three Months Ended
March 31,
North Beach Venture
2008
2007
Hotel condominium sales (100%)
$78
$-
Hotel condominium cost of sales (100%)
$99
$-
SHR's 45% share
Hotel condominium sales
$35
$-
Hotel condominium cost of sales
45
-
Other income (expense), net
13
(37)
Income taxes
(36)
-
SHR's share of net income (loss)
$57
$(37)
Net income (loss)
$57
$(37)
Income taxes
36
-
EBITDA Contribution for investment
in North Beach Venture
$93
$(37)
FFO Contribution for investment in
North Beach Venture
$57
$(37)
Three Months Ended
March 31,
Residence Club Punta Mita (RCPM)
2008
2007
SHR's 31% share
Sales
$196
$738
EBITDA Contribution for investment in RCPM
$60
$(159)
FFO Contribution for investment in RCPM
$41
$(150)
SHR's share of total residential activity:
Sales
$231
$738
EBITDA
$153
$(196)
FFO
$98
$(187)
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 management and
investors as key measures of our operating performance:
Funds from
Operations (FFO); FFO - Fully Diluted; Comparable
FFO; Earnings Before
Interest Expense, Taxes, Depreciation and Amortization
(EBITDA); Adjusted
EBITDA; and Comparable EBITDA. A reconciliation
of these measures to net
income (loss) 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. 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 Diluted, which is FFO plus minority interest
expense on convertible
minority interests. We also present Comparable
FFO, which is FFO - Fully
Diluted excluding the impact of any gains or losses
on early
extinguishment of debt, impairment losses, foreign
currency exchange gains
or losses and other non-recurring charges.
We believe that the
presentation of FFO, FFO - Fully Diluted and Comparable
FFO provides
useful information to management and 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.
We also present
Comparable FFO per diluted share as a non-GAAP
measure of our performance.
We calculate Comparable FFO per diluted share
for a given operating period
as our Comparable FFO (as defined above) divided
by the weighted average
of fully diluted shares outstanding. Comparable
FFO per diluted share, in
accordance with NAREIT, is adjusted for the effects
of dilutive
securities. Dilutive securities may include
shares granted under
share-based compensation plans, operating partnership
units and
exchangeable debt securities. No effect
is shown for securities that are
anti-dilutive.
EBITDA represents net income (loss) 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, foreign currency exchange
gains or 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 Diluted, 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,
FFO - Fully Diluted,
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 Diluted, 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 Diluted,
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 (loss) 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
Diluted, Comparable FFO,
EBITDA, Adjusted EBITDA and Comparable EBITDA
to the most directly
comparable GAAP financial performance measure,
which is net income (loss)
available to common shareholders, and provide
an explanatory description
by footnote of the items excluded from FFO, FFO
- Fully Diluted, EBITDA
and Adjusted EBITDA.
Reconciliation of Net Loss Available to Common
Shareholders to EBITDA,
Adjusted EBITDA and Comparable EBITDA
(in thousands)
Three Months Ended
March 31,
2008
2007
Net loss available to common shareholders
$(7,017) $(9,559)
Depreciation and amortization - continuing
operations
28,293 25,549
Interest expense - continuing operations
21,927 20,963
Interest expense - discontinued operations
-
34
Income taxes - continuing operations
302 1,353
Income taxes - discontinued operations
-
(61)
Minority interests
(2)
(26)
Adjustments from consolidated affiliates
(1,671) (1,028)
Adjustments from unconsolidated affiliates
5,989
7,079
Preferred shareholder dividends
7,721
7,462
EBITDA
55,542 51,766
Realized portion of deferred gain on
sale leasebacks
(1,322) (1,137)
Adjusted EBITDA
54,220 50,629
Gain on sale of assets - continuing operations
(117)
-
Gain on sale of assets - discontinued operations
(416)
-
Loss on sale of minority interests in hotel
properties
5
-
Corporate depreciation
(292)
-
Foreign currency exchange loss (a)
3,209
1,339
Hyatt Regency La Jolla minority interest (b)
(1,180)
-
Termination costs - discontinued operations (c)
-
69
Planning costs - New Orleans Jazz District
-
227
Loss on early extinguishment of debt
- continuing operations
-
4,319
Comparable EBITDA
$55,429 $56,583
(a) Foreign currency exchange loss applicable to
third-party and
inter-company debt and
certain balance sheet items held by foreign
subsidiaries.
(b) The minority interest partner's share of the
Hyatt Regency La Jolla's
property EBITDA is not
deducted from net loss available to common
shareholders under GAAP
accounting rules.
(c) Termination costs included in discontinued
operations related to the
termination of the management
agreement at the Marriott Rancho Las
Palmas property.
Reconciliation of Net Loss
Available to Common Shareholders to
Funds From Operations (FFO), FFO - Fully
Diluted and Comparable FFO
(in thousands, except per share data)
Three Months Ended
March 31,
2008
2007
Net loss available to common shareholders
$(7,017) $(9,559)
Depreciation and amortization - continuing
operations
28,293 25,549
Corporate depreciation
(292)
-
Gain on sale of assets - continuing operations
(117)
-
Gain on sale of assets - discontinued operations
(416)
-
Loss on sale of minority interests in hotel
properties
5
-
Realized portion of deferred gain on sale
leasebacks
(1,322) (1,137)
Deferred tax expense on realized portion of
deferred gain on sale leasebacks
394
345
Minority interests adjustments
(387)
(349)
Adjustments from consolidated affiliates
(1,275)
(552)
Adjustments from unconsolidated affiliates
1,900
1,960
FFO
19,766 16,257
Convertible minority interests
386
323
FFO - Fully Diluted
20,152 16,580
Termination costs, net of tax - discontinued
operations (a)
-
42
Planning costs, net of tax - New Orleans Jazz
District
-
166
Hyatt Regency La Jolla minority interest (b)
(589)
-
Foreign currency exchange loss, net of tax (c)
3,916
1,339
Loss on early extinguishment of debt
- continuing operations
-
4,319
Comparable FFO
$23,479 $22,446
Comparable FFO per diluted share
$0.31
$0.29
Weighted average diluted shares (d)
76,086 77,002
(a) Termination costs, net of tax, included in
discontinued operations
related to the termination
of the management agreement at the Marriott
Rancho Las Palmas property.
(b) The minority interest partner's share of the
Hyatt Regency La Jolla's
property FFO is not deducted
from net loss available to common
shareholders under GAAP
accounting rules.
(c) Foreign currency exchange loss applicable to
third-party and
inter-company debt and
certain balance sheet items held by foreign
subsidiaries.
(d) In the second quarter of 2007, we adjusted
our calculation of weighted
average diluted shares
to be consistent with the guidance prescribed
by NAREIT. These
changes had no impact on the Comparable FFO per
share amounts reported
in prior periods.
Debt Summary
(dollars in thousands)
Interest
Loan Maturity
Debt
Rate Spread (a) Amount
Date (b)
Bank Credit Facility 3.50%
80 bp $155,000 March 2012
Fairmont Chicago
3.40% 70 bp
123,750 April 2012
Loews Santa Monica
Beach Hotel
3.33% 63 bp
118,250 March 2012
Ritz-Carlton
Half Moon Bay
3.37% 67 bp
76,500 March 2012
InterContinental
Chicago
3.76% 106 bp
121,000 October 2011
InterContinental
Miami
3.43% 73 bp
90,000 October 2011
InterContinental
Prague (c)
5.61% 125 bp (c) 164,177
March 2012
Westin St. Francis
3.40% 70 bp
220,000 August 2011
Marriott London
Grosvenor Square (d) 7.11%
110 bp (d) 153,310 October 2013
Fairmont Scottsdale
Princess
3.26% 56 bp
180,000 September 2011
Hyatt Regency LaJolla 3.70%
100 bp 97,500 September
2012
Punta Mita land parcel
promissory notes
N/A N/A
32,167 August 2008
and 2009
Exchangeable
senior notes
3.50% Fixed
179,280 April 2012
$1,710,934
(a) Spread over LIBOR (2.70% at March 31, 2008).
(b) Includes extension options.
(c) Principal balance of euro 104,000,000 at March
31, 2008. Spread over
EURIBOR (4.36% at March
31, 2008).
(d) Principal balance of 77,250,000 pounds Sterling
at March 31, 2008.
Spread over three-month
GBP LIBOR (6.01% at March 31, 2008).
U.S. Interest Rate Swaps
Fixed Pay
Swap
Rate Notional
Effective Date
Against LIBOR Amount Maturity
April 2005
4.42% $75,000 April 2010
April 2005
4.59% 75,000 April 2012
June 2005
4.12% 50,000 June 2012
June 2006
5.50% 75,000 June 2013
August 2006
5.34% 100,000 August 2011
August 2006
5.42% 100,000 August 2013
September 2006
5.08% 100,000 February 2011
September 2006
5.10% 100,000 December 2010
September 2006
5.09% 100,000 September 2009
March 2007
4.81% 100,000 December 2009
March 2007
4.84% 100,000 July 2012
4.99% $975,000
European Interest Rate Swap
Fixed Pay
Swap
Rate Against Notional
Effective Date
GBP LIBOR Amount Maturity
October 2007
5.72% GBP 77,250 October 2013
Forward-Starting Interest Rate Swaps
Fixed Pay
Swap
Rate Notional
Effective Date
Against LIBOR Amount Maturity
September 2009
4.90% $100,000 September 2014
December 2009
4.96% 100,000 December 2014
April 2010
5.42% 75,000 April 2015
December 2010
5.23% 100,000 December 2015
February 2011
5.27% 100,000 February 2016
$475,000
At March 31, 2008, future scheduled debt principal
payments (including
extension options) are as follows:
Years ended
Amount
December 31,
(in thousands)
2008 (remainder)
$16,735
2009
15,432
2010
9,014
2011
620,014
2012
908,694
Thereafter
141,045
Total
$1,710,934
Percent of fixed rate debt including U.S. and European
swaps 78.3%
Weighted average interest rate including U.S.
and European swaps 5.20%
Weighted average maturity of fixed rate debt
5.41
Under Construction and Completed Capital Projects
(images of completed projects available
on the company's website)
Hotel
Project Description Completed
Fairmont Chicago
ENO, wine tasting room * Q2 08
Lobby renovation
Q2 08
Room renovation
Q2 08
Spa and fitness center
Q1 08
Gold lounge
Q4 06
Sushi bar
Q4 06
Fairmont Scottsdale Princess Michael
Mina operated Bourbon
Steak Restaurant
Q1 08
Midnight Oil operated
Stone Rose Bar
Q1 08
Gold room renovation
Q1 08
GM house conversion
- 1 room addition
Q1 08
Four Seasons Mexico City
Guest room renovation
Q1 06
Four Seasons Punta Mita
Lobby bar
Q1 08
Oasis room and river pool
- 23 room addition
Q2 07
Fitness center expansion Q1 07
Coral suite - 5 room
addition
Q1 07
Retail expansion
Q4 06
Tamai pool
Q4 06
Tamai garden
Q4 06
Beachfront restaurant
addition
Q4 06
Arena suite
- 5 room addition
Q1 06
Four Seasons Washington, D.C. Presidential
suite
renovation In Construction
11 room expansion In Construction
Hotel del Coronado
Retail reconfiguration
/ renovation
Q2 08
ENO, wine tasting room * Q1 08
Guest room renovation
Q2 07
Restaurant renovation
Q2 07
Beach Village
- 78 room addition
Q2 07
Spa & fitness center
/ beach club
Q1 07
InterContinental Chicago
Starbucks
Q3 07
Meeting space addition
Q3 07
ENO, wine tasting room * Q4 06
InterContinental Miami
Starbucks
Q3 06
Spa
In Construction
InterContinental Prague
Partial guest room
renovation
Q2 07
Loews Santa Monica
Beach Hotel
Restaurant renovation
Q4 04
Marriott London
Grosvenor Square
Gordon Ramsay operated
Maze Grill Restaurant Q2
08
Concierge lounge
Q1 08
Guestroom
renovation In Construction
Renaissance Paris Hotel
Le Parc Trocadero
Renaissance brand conversion Q1 08
Ritz-Carlton Half Moon Bay
Suite renovation
Q1 08
Outdoor patios
Q3 06
Guestroom fireplaces
Q2 06
Ocean terrace
Q2 06
Restaurant expansion
Q4 05
ENO, wine tasting room* Q3 05
Retail expansion
Q3 05
Wine tasting room
expansion In
Construction
Restaurant and
lounge renovation In Construction
Ritz-Carlton Laguna Niguel
Meeting space renovation Q4 07
Suite conversion
- 3 room addition
Q2 07
Suite renovation
Q2 07
ENO, wine tasting room * Q1 07
Westin St. Francis
Lobby bar
In Construction
Room and corridor
renovation In Construction
* Strategic's branded wine room concept
Operating
Statistics by Geographic Region
Operating results have been adjusted to show hotel
performance on a
comparable period basis. Adjustments are
the (i) exclusion of
unconsolidated Hotel del Coronado, (ii) exclusion
of Renaissance Paris
Hotel Le Parc Trocadero results for the three
months ended March 31,
2008, (iii) exclusion of Hyatt Regency New Orleans
as this property's
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 March 31, 2008)
12 Properties
6,678 Rooms
Three Months Ended
March 31,
2008 2007 Change
Average Daily Rate
$240.84 $231.21 4.2%
Average Occupancy
70.5% 73.5% (3.0)pts
RevPAR
$169.90 $170.05 -0.1%
Total RevPAR
$320.32 $322.84 -0.8%
Property EBITDA Margin
22.3% 23.7% (1.4)pts
Mexican Hotels (as of March 31, 2008)
2 Properties
413 Rooms
Three Months Ended
March 31,
2008 2007 Change
Average Daily Rate
$605.56 $554.28 9.3%
Average Occupancy
74.2% 76.1% (1.9)pts
RevPAR
$449.12 $421.80 6.5%
Total RevPAR
$750.56 $682.77 9.9%
Property EBITDA Margin
44.0% 40.9% 3.1 pts
North American Hotels (as of March 31, 2008)
14 Properties
7,091 Rooms
Three Months Ended
March 31,
2008 2007 Change
Average Daily Rate
$263.20 $249.55 5.5%
Average Occupancy
70.8% 73.7% (2.9)pts
RevPAR
$186.23 $183.88 1.3%
Total RevPAR
$345.49 $342.62 0.8%
Property EBITDA Margin
25.1% 25.6% (0.5)pts
European Same Store Hotels (as of March 31, 2008)
4 Properties
1,078 Rooms
Three Months Ended
March 31,
2008 2007 Change
Average Daily Rate
$317.94 $270.77 17.4%
Average Occupancy
72.0% 75.4% (3.4)pts
RevPAR
$228.98 $204.23 12.1%
Total RevPAR
$327.32 $305.58 7.1%
Property EBITDA Margin
32.5% 32.6% (0.1)pts |
