NEW YORK--- August 10, 2009 - --Morgans Hotel Group Co. (NASDAQ: MHGC) (“MHG”) today reported financial results for the second quarter ended June 30, 2009.
- Revenue per available room (“RevPAR”) for System-Wide Comparable Hotels decreased 36.8% in constant dollars in the second quarter from the comparable period in 2008. Adjusted EBITDA for the second quarter was $11.3 million, a decrease of 59% from the comparable period in 2008.
- On August 5th, MHG announced the successful amendment of its revolving credit facility. This includes, among other things, the elimination of the leverage test, a reduction of the debt service coverage ratio to 0.90x from 1.75x, and an adjustment to the borrowing base test that is expected to allow MHG to access substantial liquidity for the life of the credit facility.
- As a result of the cost reduction plans, EBITDA at System-Wide Comparable Hotels during the second quarter declined at a rate of 1.8 times the related RevPAR percentage change, beating industry norms.
- MHG achieved a 19.8% reduction in operating expenses at System-Wide Comparable Hotels and a 37% reduction in corporate expenses in the second quarter of 2009 from the comparable period in 2008. Through our multi-phase contingency plans implemented beginning in early 2008, we estimate that we have reduced hotel operating expenses and corporate expenses by approximately $20 million and $10 million, respectively, on an annualized basis.
- With the completion of the redesigned Mondrian Los Angeles and Morgans properties in September 2008, MHG has no significant deferred capital expenditure requirements at its owned hotels.
- In April, Hard Rock opened a new and expanded Joint Music Venue and added approximately 65,000 square feet of meeting and convention space. The new north tower, consisting of 490 rooms, opened in July and the casino expansion and south tower, consisting of 374 rooms, are projected to open in late 2009 or early 2010.
- Boston Ames and Mondrian SoHo are currently targeted to open in the fourth quarter of 2009 and the middle of 2010, respectively.
Fred Kleisner, President and CEO of Morgans Hotel Group, said: “While the economic and operating environment remains difficult, we are beginning to see trends stabilize. We saw some returns in occupancy in the second quarter and modest, but nevertheless meaningful, pockets of promise across the business. As we move forward through this pressured economic and industry environment we remain focused on maintaining cost controls, strengthening our financial position and preserving, and ultimately growing, shareholder value. The amendment to our credit facility we reached with our lenders is a very positive step for the Company and signifies our strong lender support and their confidence in us and our business. We are confident that we are taking all the right steps to get us through this challenging period while at the same time positioning the company for long-term growth.”
Second Quarter 2009 Operating Results
RevPAR at System-Wide Comparable Hotels decreased by 39.5% (36.8% in constant dollars) in the second quarter of 2009 compared to the second quarter of 2008. Occupancy declined by 12.5% and average daily rate (“ADR”) declined by 30.9% (27.9% in constant dollars) compared to the same period in the prior year.
MHG recorded a net loss of $10.1 million in the second quarter of 2009 compared to a net loss of $1.1 million in the second quarter of 2008.
Balance Sheet and Liquidity
As of June 30, 2009, consolidated debt excluding the Clift lease obligation was $776.5 million and cash and cash equivalents were $165.2 million, which includes approximately $139.3 million MHG had borrowed under its revolving credit facility.
On August 5, 2009, MHG announced that it had successfully completed an amendment to its existing line of credit. Among other things the amendment:
- Eliminates the corporate leverage test;
- Reduces the corporate fixed charge coverage test to 0.90x from 1.75x;
- Amends the borrowing base tests so that, among other changes, a minimum of 35% of appraised value on the New York properties securing the facilities will be available; and
- Cleans up a variety of other provisions at the subsidiary level that could have triggered technical defaults.
The facility’s size was reduced from $220 million to $125 million and the full $125 million is currently available to be borrowed. The Company believes that, without the amendment, it would have had limited availability, if any, under the facility for the remainder of the term. Upon closing, the Company reduced its outstanding borrowings under the facility to $23.9 million and has approximately $11.1 million of outstanding letters of credit associated with the facility. The facility is secured by three of the Company’s hotels: Delano, Royalton and Morgans. The interest rate is LIBOR plus 3.75% with a LIBOR floor of 1.0% and the maturity is October 5, 2011.
The facility is led by Wells Fargo/Wachovia. Other lenders in the facility include Citibank, Aareal, Bank of America, Allied Irish, KBC Bank and Midfirst.
In June 2009, the $40 million non-recourse mortgage and mezzanine loans at Mondrian Scottsdale matured and were not repaid. MHG is continuing to operate Mondrian Scottsdale and accruing interest. MHG is discussing various options with the lenders. MHG does not intend to commit significant monies toward the repayment of the loans or the funding of operating deficits.
The Mondrian South Beach joint venture’s non-recourse mortgage and mezzanine loans matured on August 1, 2009 and were not repaid by the joint venture. MHG is continuing to operate Mondrian South Beach. The joint venture is in discussion with the lender to extend the maturity.
MHG estimates that its total future capital commitments for development projects for the remainder of 2009 will be approximately $13 million, primarily to fund the outstanding letters of credit at Hard Rock. With the re-launch of Mondrian Los Angeles and Morgans in September 2008, all major renovation projects have been completed and there are no significant deferred capital expenditure requirements at our owned hotels.
Additionally, MHG intends to utilize its net operating losses of approximately $100 million to offset future income, including potential gains on the sale of assets or interest therein as part of its long-term strategy to reduce its ownership interests in hotels.
Development Activity
MHG’s projects currently under construction are the Hard Rock expansion, the Boston Ames and the Mondrian SoHo, all of which are expected to be completed between the fourth quarter of 2009 and the middle of 2010.
2009 Outlook
The global economic downturn has had a significant adverse impact on demand, particularly since the middle of September 2008. Given the continuing uncertainty about the depth and duration of the economic crisis, we are not comfortable defining a specific RevPAR target or range for the year. However, we can provide a framework for Adjusted EBITDA given certain RevPAR declines. For example, if RevPAR for the year were to decline on average 25-30%, we would expect 2009 Adjusted EBITDA to be between $40-50 million. This is based on a ratio of EBITDA percentage decline to RevPAR percentage decline between 1.5 and 2.0 times, which is consistent with the ratio we have achieved over the past three quarters.
Conference Call
MHG will host a conference call to discuss the second quarter financial results today at 5:00 PM Eastern time.
The call will be webcast live over the Internet at www.morganshotelgroup.com under the Corporate Info, Investor Overview section. Participants should follow the instructions provided on the website for the download and installation of audio applications necessary to join the webcast.
The call can also be accessed live over the phone by dialing (888) 802-8577 or (973) 935-8754; for international callers, the conference ID is 23399960. A replay of the call will be available two hours after the call and can be accessed by dialing (800) 642-1687 or (706) 645-9291; for international callers, the conference ID is 23399960. The replay will be available from August 10, 2009 through August 17, 2009.
Definitions
“Owned Comparable Hotels” includes all wholly-owned hotels operated by MHG except for hotels under renovation during the current or the prior year and development projects. Owned Comparable Hotels for 2009 excludes Mondrian Los Angeles and Morgans, which were under renovation in 2008.
“System-Wide Comparable Hotels” includes all hotels operated by MHG except for hotels under renovation during the current or the prior year and development projects. System-Wide Comparable Hotels for 2009 excludes Mondrian Los Angeles and Morgans, which were under renovation in 2008, the Hard Rock Hotel & Casino in Las Vegas (“Hard Rock”), which has been under renovation and expansion since 2008, and Mondrian South Beach, which opened in December 2008.
“Adjusted EBITDA” is adjusted earnings before interest, taxes, depreciation and amortization as further defined below.
About Morgans Hotel Group
Morgans Hotel Group Co. (NASDAQ: MHGC) operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and Shore Club in Miami, Mondrian in Los Angeles, Mondrian in Scottsdale and Mondrian in South Beach, Clift in San Francisco, and Sanderson and St Martins Lane in London. MHG and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. MHG has other property transactions in various stages of completion, including projects in SoHo, New York; Las Vegas, Nevada; Palm Springs, California; Boston, Massachusetts; and Dubai, UAE. For more information please visit www.morganshotelgroup.com.
Forward-Looking and Cautionary Statements
Statements contained in this press release which are not historical facts are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of words such as "expects," "plans," "estimates," "projects," "intends," "believes," "guidance," and similar expressions that do not relate to historical matters. These forward-looking statements are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated, due to a number of factors which include, but are not limited to, downturns in economic and market conditions, particularly levels of spending in the business, travel and leisure industries; hostilities, including future terrorist attacks, or fear of hostilities that affect travel; risks related to natural disasters, such as earthquakes and hurricanes; risks associated with the acquisition, development and integration of properties; the seasonal nature of the hospitality business; changes in the tastes of our customers; increases in real property tax rates; increases in interest rates and operating costs; the impact of any material litigation; the loss of key members of our senior management; general volatility of the capital markets and our ability to access the capital markets; and changes in the competitive environment in our industry and the markets where we invest, and other risk factors discussed in MHG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, and other documents filed by MHG with the Securities and Exchange Commission from time to time. All forward-looking statements in this press release are made as of the date hereof, based upon information known to management as of the date hereof, and MHG assumes no obligations to update or revise any of its forward-looking statements even if experience or future changes show that indicated results or events will not be realized.
| Income Statement | Three Months | Six Months | ||||||||||||||||||
| (In Thousands, except per share amounts) | Ended June 30, | Ended June 30, | ||||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||||||
|
(as adjusted) |
(as adjusted) | |||||||||||||||||||
| Revenues : | ||||||||||||||||||||
| Rooms | $ | 30,885 | $ | 46,867 | $ | 59,480 | $ | 93,021 | ||||||||||||
| Food & beverage | 19,381 | 26,554 | 38,869 | 53,123 | ||||||||||||||||
| Other hotel | 2,258 | 3,350 | 5,004 | 6,823 | ||||||||||||||||
| Total hotel revenues | 52,524 | 76,771 | 103,353 | 152,967 | ||||||||||||||||
| Management fees | 3,863 | 4,552 | 7,312 | 9,088 | ||||||||||||||||
| Total revenues | 56,387 | 81,323 | 110,665 | 162,055 | ||||||||||||||||
| Operating Costs and Expenses : | ||||||||||||||||||||
| Rooms | 10,328 | 11,896 | 20,542 | 25,065 | ||||||||||||||||
| Food & beverage | 14,539 | 18,355 | 29,114 | 37,722 | ||||||||||||||||
| Other departmental | 1,566 | 1,924 | 3,160 | 4,009 | ||||||||||||||||
| Hotel, selling, general and administrative | 12,095 | 14,599 | 24,105 | 30,372 | ||||||||||||||||
| Property taxes, insurance and other | 4,185 | 3,729 | 8,510 | 7,782 | ||||||||||||||||
| Total hotel operating expenses | 42,713 | 50,503 | 85,431 | 104,950 | ||||||||||||||||
| Corporate expenses : | ||||||||||||||||||||
| Stock based compensation | 2,505 | 4,415 | 5,574 | 7,349 | ||||||||||||||||
| Other | 4,983 | 7,895 | 11,214 | 15,298 | ||||||||||||||||
| Depreciation and amortization | 8,411 | 6,018 | 15,631 | 12,109 | ||||||||||||||||
| Restructuring, development and disposal costs | 653 | 630 | 1,544 | 1,167 | ||||||||||||||||
| Total operating costs and expenses | 59,265 | 69,461 | 119,394 | 140,873 | ||||||||||||||||
| Operating (loss) income | (2,878 | ) | 11,862 | (8,729 | ) | 21,182 | ||||||||||||||
| Interest expense, net | 12,044 | 10,895 | 23,501 | 21,969 | ||||||||||||||||
| Equity in loss of unconsolidated joint ventures | 1,895 | 865 | 2,438 | 8,910 | ||||||||||||||||
| Other non-operating expense | 496 | 776 | 1,065 | 1,301 | ||||||||||||||||
| Pre tax loss | (17,313 | ) | (674 | ) | (35,733 | ) | (10,998 | ) | ||||||||||||
| Income tax benefit | (7,371 | ) | (800 | ) | (15,508 | ) | (4,968 | ) | ||||||||||||
| Net (loss) income | (9,942 | ) | 126 | (20,225 | ) | (6,030 | ) | |||||||||||||
| Net income attributable to noncontrolling interest | (115 | ) | (1,187 | ) | (418 | ) | (2,342 | ) | ||||||||||||
| Net loss attributable to common stockholders | $ | (10,057 | ) | $ | (1,061 | ) | $ | (20,643 | ) | $ | (8,372 | ) | ||||||||
| Weighted average shares outstanding - diluted | 29,745 | 32,191 | 29,742 | 32,276 | ||||||||||||||||
| Loss per share attributable to common stockholders | $ | (0.34 | ) | $ | (0.03 | ) | $ | (0.69 | ) | $ | (0.26 | ) | ||||||||
Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
We believe that earnings before interest, income taxes, depreciation and amortization (EBITDA) is a useful financial metric to assess our operating performance before the impact of investing and financing transactions and income taxes. It also facilitates comparison between us and our competitors. Given the significant investments that we have made in the past in property and equipment, depreciation and amortization expense comprises a meaningful portion of our cost structure. We believe that EBITDA will provide investors with a useful tool for assessing the comparability between periods because it eliminates depreciation and amortization expense attributable to capital expenditures.
The Company’s management has historically adjusted EBITDA (Adjusted EBITDA) when evaluating the operating performance for the total Company as well as for individual properties or groups of properties because we believe the Company’s core business model is that of an owner and operator of hotels, and the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide the most accurate measure of on-going core operating results and to evaluate comparative results period over period. As such, Adjusted EBITDA excludes other non-operating (income) expenses that do not relate to the on-going performance of our assets and excludes the operating performance of assets in which we do not have a fee simple ownership interest. We exclude the following items from EBITDA to arrive at Adjusted EBITDA:
- Other non-operating expenses (income), such as executive terminations not related to restructuring initiatives discussed below, costs of financings and litigation and settlement costs and other items that relate to the financing and investing activities of our assets and not to the on-going operating performance of our assets, both consolidated and unconsolidated;
- Restructuring, development and disposal costs: these charges primarily relate to losses on asset disposals as part of major renovation projects and the write-off of abandoned development projects resulting primarily from events generally outside management’s control such as the tightening of the credit markets. We reasonably believe that a substantial portion of these items will not recur in future years and that these charges do not relate to the ongoing operating performance of our assets as measured by Adjusted EBITDA.
- Impairment loss: we reasonably believe that this item will not recur in future years and that these non-cash charges do not relate to the ongoing operating performance of our assets as measured by Adjusted EBITDA.
- The EBITDA related to leased hotels to more accurately reflect the operating performance of assets in which we have a fee simple ownership interest; and
- The stock-based compensation expense recognized, as this is not necessarily an indication of the operating performance of our assets.
We believe Adjusted EBITDA provides management and our investors with a more accurate financial metric by which to evaluate our performance as it eliminates the impact of costs incurred related to investing and financing transactions. Internally, the Company’s management utilizes Adjusted EBITDA to measure the performance of our core on-going hotel operations and is used extensively during our annual budgeting process. Management also uses Adjusted EBITDA as a measure in determining the value of acquisitions, expansion opportunities, and dispositions and borrowing capacity. Adjusted EBITDA is a key metric which management evaluates prior to execution of any strategic investing or financing opportunity.
The Company has historically reported Adjusted EBITDA to its investors and believes that this continued inclusion of Adjusted EBITDA provides consistency in its financial reporting and enables investors to perform more meaningful comparisons of past, present and future operating results and to evaluate the results of its core on-going operations.
The use of EBITDA and Adjusted EBITDA has certain limitations. Our presentation of EBITDA and Adjusted EBITDA may be different from the presentation used by other companies and therefore comparability may be limited. Depreciation expense for various long-term assets, interest expense, income taxes and other items have been and will be incurred and are not reflected in the presentation of EBITDA or Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, EBITDA and Adjusted EBITDA do not reflect capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation, interest and income tax expense, capital expenditures and other items both in our reconciliations to our GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance. The term EBITDA is not defined under accounting principles generally accepted in the United States, or U.S. GAAP, and EBITDA is not a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. In addition, EBITDA is impacted by reorganization of businesses and other restructuring-related charges. When assessing our operating performance, you should not consider this data in isolation, or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA in the same manner as we do
A reconciliation of net income (loss), the most directly comparable U.S. GAAP measures, to EBITDA and Adjusted EBITDA for each of the respective periods indicated is as follows:
| EBITDA Reconciliation | ||||||||||||||||||||||
| (In Thousands) | Three Months | Six Months | ||||||||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
| Net loss | $ | (10,057 | ) | $ | (1,061 | ) | $ | (20,643 | ) | $ | (8,372 | ) | ||||||||||
| Interest expense, net | 12,044 | 10,895 | 23,501 | 21,969 | ||||||||||||||||||
| Income tax benefit | (7,371 | ) | (800 | ) | (15,508 | ) | (4,968 | ) | ||||||||||||||
| Depreciation and amortization expense | 8,411 | 6,018 | 15,631 | 12,109 | ||||||||||||||||||
| Proportionate share of interest expense | ||||||||||||||||||||||
| from unconsolidated joint ventures | 6,205 | 3,824 | 12,607 | 12,312 | ||||||||||||||||||
| Proportionate share of depreciation expense | ||||||||||||||||||||||
| from unconsolidated joint ventures | 1,966 | 3,188 | 4,004 | 6,133 | ||||||||||||||||||
| Proportionate share of depreciation expense | ||||||||||||||||||||||
| of minority interests in consolidated joint ventures | (75 | ) | (86 | ) | (166 | ) | (186 | ) | ||||||||||||||
| Net income attributable to noncontrolling interest | (314 | ) | (22 | ) | (668 | ) | (257 | ) | ||||||||||||||
|
Proportionate share of loss from unconsolidated |
||||||||||||||||||||||
|
joint ventures not recorded due to negative investment balances |
(4,252 | ) | - | (9,658 | ) | - | ||||||||||||||||
| EBITDA | 6,557 | 21,956 | 9,100 | 38,740 | ||||||||||||||||||
| Add : Other non operating expense | 496 | 776 | 1,065 | 1,301 | ||||||||||||||||||
|
Add : Other non operating expense from unconsolidated joint ventures |
848 | 1,899 | 560 | 4,233 | ||||||||||||||||||
| Add: Restructuring, development and disposal costs | 653 | 630 | 1,544 | 1,167 | ||||||||||||||||||
| Less : EBITDA from Clift, a leased hotel | 260 | (1,922 | ) | 536 | (3,454 | ) | ||||||||||||||||
| Add : Stock based compensation | 2,505 | 4,415 | 5,574 | 7,349 | ||||||||||||||||||
| Adjusted EBITDA | $ | 11,319 | $ | 27,754 | $ | 18,379 | $ | 49,336 | ||||||||||||||
| Room Revenue Analysis | Three Months | Six Months | |||||||||||||||||||
| (In Thousands, except percentages) | Ended June 30, | % | Ended June 30, |
% |
|||||||||||||||||
| 2009 | 2008 | Change | 2009 | 2008 | Change | ||||||||||||||||
| Royalton | $ | 3,383 | $ | 5,490 | -38 | % | $ | 6,370 | $ | 10,045 | -37 | % | |||||||||
| Hudson | 11,715 |
20,288 |
-42 | % | 20,336 | 35,697 | -43 | % | |||||||||||||
| Delano | 5,190 | 7,516 | -31 | % | 12,048 | 17,985 | -33 | % | |||||||||||||
| Clift | 4,000 | 6,574 | -39 | % | 7,748 | 12,736 | -39 | % | |||||||||||||
| Mondrian Scottsdale | 747 | 1,817 | -59 | % | 2,473 | 4,877 | -49 | % | |||||||||||||
| Total Owned - Comparable | 25,035 |
41,685 |
-40 | % | 48,975 | 81,340 | -40 | % | |||||||||||||
| Morgans | 2,058 | 1,635 | 26 | % | 3,723 | 4,192 | -11 | % | |||||||||||||
| Mondrian LA | 3,792 | 3,547 | 7 | % | 6,782 | 7,489 | -9 | % | |||||||||||||
| Total Owned | $ | 30,885 | $ |
46,867 |
-34 | % | $ | 59,480 | $ | 93,021 | -36 | % | |||||||||
| Hotel Revenue Analysis | Three Months | Six Months | |||||||||||||||||||
| (In Thousands, except percentages) | Ended June 30, | % | Ended June 30, | % | |||||||||||||||||
| 2009 | 2008 | Change | 2009 | 2008 | Change | ||||||||||||||||
| Royalton | $ | 4,690 | $ | 7,228 | -35 | % | $ | 9,137 | $ | 13,733 | -33 | % | |||||||||
| Hudson | 15,894 |
26,434 |
-40 | % |
27,921 |
46,773 |
-40 | % | |||||||||||||
| Delano | 10,854 | 16,074 | -32 | % | 25,045 | 36,073 | -31 | % | |||||||||||||
| Clift | 6,854 | 10,702 | -36 | % | 13,720 | 21,056 | -35 | % | |||||||||||||
| Mondrian Scottsdale | 1,835 | 4,015 | -54 | % | 4,884 | 9,564 | -49 | % | |||||||||||||
|
Total Owned - Comparable |
40,127 |
64,453 |
-38 | % |
80,707 |
127,199 |
-37 | % | |||||||||||||
| Morgans | 3,973 | 4,249 | -6 | % | 7,814 | 9,630 | -19 | % | |||||||||||||
| Mondrian LA | 8,424 | 8,069 | 4 | % | 14,832 | 16,138 | -8 | % | |||||||||||||
| Total Owned | $ | 52,524 | $ |
76,771 |
-32 | % | $ |
103,353 |
$ |
152,967 |
-32 | % | |||||||||
| Hotel EBITDA Analysis | Three Months | Six Months | |||||||||||||||||||||
| (In Thousands, except percentages) | Ended June 30, | % | Ended June 30, |
% |
|||||||||||||||||||
| 2009 | 2008 | Change | 2009 | 2008 | Change | ||||||||||||||||||
| Royalton | $ | 297 | $ | 1,970 | -85 | % | $ | 57 | $ | 2,850 | -98 | % | |||||||||||
| Hudson | 3,604 | 12,573 | -71 | % | 4,331 | 18,339 | -76 | % | |||||||||||||||
| Delano | 3,243 | 5,799 | -44 | % | 8,620 | 14,276 | -40 | % | |||||||||||||||
| Clift | (260 | ) | 1,922 | -114 | % | (536 | ) | 3,454 | -116 | % | |||||||||||||
| Mondrian Scottsdale | (473 | ) | 262 | -281 | % | 94 | 1,525 | -94 | % | ||||||||||||||
| Owned Comparable Hotels | 6,411 | 22,526 | -72 | % | 12,566 | 40,444 | -69 | % | |||||||||||||||
| St Martins Lane | 1,050 | 2,144 | -51 | % | 2,064 | 4,126 | -50 | % | |||||||||||||||
| Sanderson | 663 | 1,397 | -53 | % | 1,203 | 2,397 | -50 | % | |||||||||||||||
| Shore Club | 76 | 236 | -68 | % | 262 | 603 | -57 | % | |||||||||||||||
| Joint Venture Comparable Hotels | 1,789 | 3,777 | -53 | % | 3,529 | 7,126 | -50 | % | |||||||||||||||
| Total Comparable Hotels | 8,200 | 26,303 | -69 | % | 16,095 | 47,570 | -66 | % | |||||||||||||||
| Morgans - Owned | (40 | ) | 861 | -105 | % | (280 | ) | 1,726 | -116 | % | |||||||||||||
| Mondrian LA - Owned | 2,973 | 1,920 | 55 | % | 4,487 | 3,737 | 20 | % | |||||||||||||||
| Hard Rock - Joint Venture | 1,423 | 3,927 | -64 | % | 1,827 | 5,958 | -69 | % | |||||||||||||||
| Mondrian South Beach - Joint Venture | (356 | ) | 0 | (330 | ) | 0 | |||||||||||||||||
| Total Hotels | $ | 12,200 | $ | 33,011 | -63 | % | $ | 21,799 | $ | 58,991 | -63 | % | |||||||||||
| Adjusted EBITDA and Debt Analysis | ||||||||
| (In Thousands) | ||||||||
| Adjusted | ||||||||
| EBITDA | ||||||||
| Twelve Months | ||||||||
| Ended | Debt at | |||||||
|
Consolidated Operations |
June 30, 2009 | June 30, 2009 | ||||||
| Morgans (1) | 962 | |||||||
| Royalton | 3,766 | |||||||
| Delano | 16,495 | |||||||
| Revolving Credit Facility | - | 139,289 | ||||||
| Sub - total | 21,223 | 139,289 | ||||||
| Hudson | 25,277 | 255,660 | ||||||
| Mondrian LA (1) | 8,761 | 120,500 | ||||||
| Mondrian Scottsdale | (1,213 | ) | 40,000 | |||||
| Other (2) | (5,349 | ) | 221,053 | |||||
| Total | 48,699 | 776,502 | ||||||
| Less: Cash | (165,209 | ) | ||||||
| Net Debt | 611,293 | |||||||
| (1) | Hotel was under renovation in the past twelve months and had rooms out of service | |||||||
| (2) |
Includes outstanding debt on convertible notes, trust preferred securities, the Gale promissory note and excludes capital lease obligations at the Clift |
|||||||
| Proportionate | |||||||||
| Share of | |||||||||
| Adjusted EBITDA | Proportionate | ||||||||
| Twelve Months | Share of | ||||||||
| System-Wide Comparable | Ownership | Ended | Debt | ||||||
|
Joint Venture Hotels (1) |
Percentage | June 30, 2009 | June 30, 2009 | ||||||
| Sanderson and St. Martins Lane | 50 | % | 9,017 | 83,756 | |||||
| Shore Club | 7 | % | 533 | 8,388 | |||||
| (1) | Includes information only for System-Wide Comparable Hotels | ||||||||
| Balance Sheet | ||||||||||
| (In Thousands) | ||||||||||
| June 30, |
Dec. 31, |
|||||||||
| 2009 | 2008 | |||||||||
| (as adjusted) | ||||||||||
| Cash | $ | 165,209 | $ | 49,150 | ||||||
| Restricted cash | 16,628 | 21,484 | ||||||||
| Property and equipment, net | 546,879 | 555,645 | ||||||||
| Goodwill | 73,698 | 73,698 | ||||||||
| Accounts receivable, net | 17,640 | 14,573 | ||||||||
| Prepaid expenses and other assets | 11,218 | 9,192 | ||||||||
| Investments in joint ventures | 59,582 | 56,754 | ||||||||
| Other assets | 87,976 | 74,968 | ||||||||
| Total assets | 978,830 | 855,464 | ||||||||
| Long-term debt | 776,502 | 635,601 | ||||||||
| Capital lease obligations - Clift | 82,392 | 81,578 | ||||||||
| Accounts payable and accrued expenses | 26,622 | 26,711 | ||||||||
| Other liabilities | 29,494 | 35,655 | ||||||||
| Distributions and losses in excess of investment in | ||||||||||
| unconsolidated joint ventures | 16,190 | 14,563 | ||||||||
| Total liabilities | 931,200 | 794,108 | ||||||||
| Noncontrolling interest | 17,014 | 17,933 | ||||||||
| Stockholders' equity | 30,616 | 43,423 | ||||||||
| Total liabilities and equity (deficit) | $ | 978,830 | $ | 855,464 | ||||||