SIOUX FALLS, S.D.--August 15, 2011-- Summit Hotel
Properties, Inc. (NYSE:INN), a publicly traded real estate investment
trust specializing in acquiring and owning premium-branded upscale and
upper-midscale hotels, today announced results for the company and
Summit Hotel OP, LP, the company’s operating partnership, for the three
months ended June 30, 2011.
Second Quarter Highlights
- Increased revenue to $38.6
million, up 7.6 percent over the same period last year.
- Achieved FFO of $0.20 per
share.
- Generated EBITDA of $10.8
million.
- Increased revenue per
available room (“RevPAR”) 6.4 percent for the initial portfolio at the
time of IPO (“initial portfolio”) compared to the same quarter in 2010.
The initial portfolio excludes four hotels acquired during the quarter
and 11 former Choice Hotel-branded properties that recently were
rebranded (“the rebranded hotels”).
- Achieved RevPAR growth for 15
of our unseasoned hotels (excluding four of the rebranded hotels
categorized as unseasoned at the time of the IPO) of 15.1 percent over
the same 2010 period.
- Acquired four hotels during
the second quarter plus one additional hotel following the close of the
quarter.
- Expanded the company’s line
of credit from $100 million to $125 million.
- Declared first full-quarter
dividend of $0.1125 per share.
“We are proud of how we have executed our strategy since
our IPO in February,” said Dan Hansen, Summit president and chief
executive officer. “We believe the positive trends we are seeing at our
hotels are indications that our simple and disciplined strategy is
moving us in the right direction. While the rebranding of the former
Choice hotels has impacted our FFO for the second quarter by
approximately $0.04 per share we believe the rebranded hotels are
quickly regaining their visibility and footing within their respective
markets.
“The impact from the change in the hotel management
company at the time of the IPO appears to be largely concentrated in
the second quarter, and we are excited about our potential for growth
going forward,” he said.
Financial Results
For the 2011 second quarter, the company had $38.6
million in revenues, compared to $35.8 million for the company’s
predecessor during the same 2010 period. RevPAR for the second quarter
rose 2.3 percent, led by a 0.5 percent increase in occupancy to 68.5
percent and a 1.8 percent increase in average daily rate (“ADR”) to
$88.63. Earnings before interest, taxes, depreciation and amortization
(EBITDA) was $10.8 million. Funds from operations (FFO) was $7.4
million, or $0.20 per fully diluted common share. FFO and EBITDA are
non-GAAP financial measures and a reconciliation of FFO and EBITDA
appears at the end of this release.
Operating Performance
The company segregates its hotel operating results for
its 69 currently owned hotels into the following components:
- Same-store Hotels –
Fifty-four hotels with an aggregate of 5,537 rooms operated for longer
than one year under its current franchise. These hotels exclude the
rebranded hotels (11 hotels) and the hotels acquired during the second
quarter of 2011 (four hotels).
- Rebranded Hotels – On March
23, 2011, Choice Hotels terminated franchise agreements for all 11
hotels that the company owned under various Choice brands. The company
has entered into arbitration with Choice to settle outstanding claims
regarding steps taken by Choice. The completion of the rebranding
process will result in an increase of one property as the company’s two
building, 111-room property located in Twin Falls, ID was converted to
an AmericInn & Suites on April 15, 2011. The Twin Falls AmericInn
& Suites will operate under its current franchise until the company
completes a conversion, which is anticipated to occur in the second
quarter of 2012. Upon completion of the conversion, the hotel will
operate as a 58-room Fairfield Inn & Suites by Marriott and a
52-room AmericInn & Suites.*
The 12 re-branded hotels are:
New Brand
|
|
Former Choice Brand
|
|
Location
|
|
Rooms
|
|
|
Completion
|
Holiday Inn
|
|
Cambria
Suites |
|
Boise, ID |
|
119 |
|
|
Q2 2011 |
SpringHill
Suites by Marriott |
|
Cambria
Suites |
|
Bloomington,
MN |
|
113 |
|
|
Q2 2011 |
DoubleTree
by Hilton |
|
Cambria
Suites |
|
Baton
Rouge, LA |
|
127 |
|
|
Q4
2011(est) |
Country Inn
and Suites |
|
Cambria
Suites |
|
San
Antonio, TX |
|
126 |
|
|
Q2 2011 |
Fairfield
Inn & Suites by Marriott |
|
Comfort
Suites |
|
Fort Worth,
TX |
|
70 |
|
|
Q2
2012(est) |
Holiday Inn
Express |
|
Comfort
Suites |
|
Charleston,
WV |
|
67 |
|
|
Q4
2011(est) |
AmericInn
& Suites* |
|
Comfort Inn
& Suites |
|
Twin Falls,
ID |
|
52 |
|
|
Q2 2011 |
Fairfield
Inn &Suites by Marriott* |
|
Comfort Inn
& Suites |
|
Twin Falls,
ID |
|
58 |
|
|
Q2
2012(est) |
AmericInn
& Suites |
|
Comfort
Suites |
|
Lakewood,
CO |
|
62 |
|
|
Q2 2011 |
AmericInn
& Suites |
|
Comfort Inn
|
|
Salina, KS |
|
60 |
|
|
Q2 2011 |
AmericInn
& Suites |
|
Comfort Inn
|
|
Missoula,
MT |
|
52 |
|
|
Q2 2011 |
AmericInn
|
|
Comfort
Inn |
|
Fort
Smith, AR |
|
89
|
|
|
Q2
2011 |
|
|
|
|
|
|
995
|
|
|
|
*Currently operated as a two building, 111-room
AmericInn & Suites until a conversion is completed sometime in the
second quarter of 2012 (estimated) at which time the hotel will operate
as a 58-room Fairfield Inn & Suites by Marriott and a 52-room
AmericInn & Suites.
- Recently Acquired Hotels –
Four hotels acquired during the second quarter, and the El Paso, TX
Courtyard by Marriott which was acquired following the close of the
second quarter:
Hotel Brand
|
|
Location
|
|
Rooms
|
|
Acquisition Date
|
|
Aggregate Purchase Price
|
Homewood
Suites |
|
Ridgeland,
MS |
|
91 |
|
04/15/2011 |
|
$ |
7,350,000 |
Staybridge
Suites |
|
Glendale,
CO |
|
121 |
|
04/27/2011 |
|
$ |
10,000,000 |
Holiday Inn
|
|
Duluth, GA |
|
143 |
|
04/27/2011 |
|
$ |
7,000,000 |
Hilton
Garden Inn |
|
Duluth, GA |
|
122 |
|
05/25/2011 |
|
$ |
13,350,000 |
Courtyard
by Marriott |
|
El
Paso, TX |
|
90
|
|
07/28/2011
|
|
$
|
12,350,000
|
|
|
|
|
567
|
|
|
|
$
|
50,050,000
|
Second quarter revenues rose to $38.6 million, a 7.6
percent increase over the $35.8 million for the company’s predecessor
in the 2010 period. Income from hotel operations was $12.5 million,
compared to $11.8 million for the 2010 period. Hotel operating margins
were 32.3 percent for the period, compared to 32.9 percent in the 2010
period.
Both revenues and income from hotel operations were
negatively impacted as a result of the disruptions at the rebranded
hotels. The company estimates the conversions negatively affected FFO
by $0.04 per fully diluted share of common stock in the aggregate for
the second quarter. Additionally, the transition of hotel management to
Interstate Hotels & Resorts and resultant employee turnover and the
implementation of new systems negatively affected hotel margins and
earnings during the second quarter.
Because of disruption from the management company
change, Summit and Interstate agreed to amend their hotel management
contract to provide for a one-time reduction in the base management fee
for the second quarter of 2011 from 3.0 percent to 1.33 percent of
revenues for the second quarter at 55 of the hotels managed by
Interstate. In return for this 55 percent reduction in management fee,
Summit provided an additional future incentive to Interstate based on
improvement of gross operating profits at the 55 hotels, which is
payable at any time during the term of the agreement if earned. The
aggregate maximum potential incentive is $565,000, the amount of the
one-time reduction in base management fee for the second quarter. In
addition, Summit extended the term of the management agreement on the
Homewood Suites, Ridgeland, Miss. and Staybridge Suites, Glendale, Col.
from three years to ten years. The impact of both the Choice
conversions and new hotel management are reflected in the operating
data provided below, which is segregated by overall company (69
hotels), same-store hotels (54 hotels), rebranded hotels (11 hotels)
and recently acquired hotels (four hotels).
“With the management company changeover complete and in
place, it is anticipated that the hotels will be able to demonstrate
revenue growth in future periods,” Hansen said. “Hotel operating
results for July 2011, which are subject to adjustment based on the
company’s closing process at the end of the third quarter of 2011, show
improvement across the portfolio.”
|
|
For
the month ended |
|
|
July
31, |
|
|
2011
|
|
2010 |
|
|
|
|
|
Same-Store Total (54
Hotels)*
|
|
|
|
|
Occupancy |
|
77.09% |
|
71.67% |
Average
Daily Rate |
|
$89.95 |
|
$89.92 |
RevPAR |
|
$69.34 |
|
$64.45 |
|
|
|
|
|
Same-Store
Seasoned (39 Hotels)* |
|
|
|
|
Occupancy |
|
75.39% |
|
71.94% |
Average
Daily Rate |
|
$86.86 |
|
$88.51 |
RevPAR |
|
$65.48 |
|
$63.67 |
|
|
|
|
|
Same-Store
Unseasoned (15 Hotels)* |
|
|
|
|
Occupancy |
|
80.42% |
|
71.14% |
Average
Daily Rate |
|
$95.61 |
|
$92.71 |
RevPAR |
|
$76.89 |
|
$65.96 |
* At the time of the IPO, we categorized hotels as
“seasoned” based on their construction or acquisition date and we
classified hotels as “unseasoned” if they had been built after January
1, 2007 or experienced a brand conversion since January 1, 2008. At the
time of our IPO, we classified seven of our Choice hotels as seasoned
and four of our Choice hotels as unseasoned. This table excludes these
11 hotels.
Six-Month Summary
For the six-month 2011 period, the company generated a
7.1 percent increase in revenues to $72.0 million, compared to $67.2
million earned by the company’s predecessor during the same 2010
six-month period. RevPAR year-to-date improved 4.4 percent to $58.24
over the like period a year earlier. Income from hotel operations was
$21.4 million for the period and was $22.1 million before taking into
effect pre-IPO expenses incurred by the company’s predecessor, Summit
Hotel Properties, LLC. Hotel operating margins were 29.8 percent for
the period and were 30.8 percent for the period before taking into
account pre-IPO expenses incurred by the company’s predecessor.
Balance Sheet
The company had total outstanding debt of $251.7 million
as of June 30, 2011. Of the debt, $42.7 million was outstanding
borrowings under the company’s $125 million senior secured revolving
credit facility. In May, the company expanded this credit facility from
$100 million to $125 million. The weighted average interest rate for
the company’s total debt was 5.03 percent for the second quarter.
During the second quarter the company spent $7.6 million toward capital
investments. Cash and cash equivalents as of June 30, 2011 was $29.6
million. As of August 15, 2011, the company had $37.2 million available
on its senior secured revolving credit facility. “We intend to maintain
a prudent balance sheet in the range of six times funded debt to
EBITDA,” said Stu Becker, the company’s chief financial officer.
Hotel Acquisitions
The company acquired four hotels in the 2011 second
quarter and one hotel, the Courtyard by Marriott, El Paso, Texas,
following the end of the quarter. The company believes the acquisitions
will allow it to take advantage of operating synergies and achieve
greater economies of scale in four markets. The properties acquired
are:
- Homewood Suites – Jackson
(Ridgeland), Miss.--On April 15, 2011, the company acquired the
91-room Homewood Suites, Ridgeland, Miss. for $7.3 million, or $80,000
per key. This represents a purchase price of 7.7x NTM (next twelve
months) EBITDA and a post-renovation capitalization rate of 12.2
percent and is in line with the Company’s strategy of ‘clustering’
assets. The hotel will be managed by Interstate Hotels & Resorts,
and was funded with available cash and the Company's credit facility.
It is the fourth hotel owned by the Company in this market and allows
Summit to achieve additional management efficiencies and better manage
market rates.
- Staybridge Suites - Denver
(Cherry Creek), Col. On April 27, 2011, the company purchased the
121-room Staybridge Suites for $10.0 million, or $83,000 per key. This
represents a purchase price of 7.7x NTM EBITDA and a 10.3 percent
post-renovation capitalization rate. This acquisition is strategically
located in an in-fill location in the high-end Cherry Creek, Col.
sub-market and is the company’s sixth asset in the Denver metropolitan
market. The acquisition will be managed by Interstate Hotels &
Resorts, and was funded by borrowings under the company's credit
facility.
- Holiday Inn – Atlanta
(Duluth), Ga. On April 27, 2011, the company acquired the 143-room
Holiday Inn for $7.0 million, or $49,000 per key. This represents a
purchase price of 7.9x NTM EBITDA, and a 12.1 percent post-renovation
capitalization rate. The property serves as InterContinental Hotel
Group’s flagship Holiday Inn, and recently underwent the first ‘social
hub’ lobby update, which signifies IHG’s continued commitment to its
Holiday Inn-brand ‘refresh’ program. The company entered into an
agreement with Intercontinental Hotels Groups (IHG) to manage the
hotel. The acquisition was funded by borrowings under the company's
credit facility.
- Hilton Garden Inn –
Atlanta (Duluth), Ga. On May 25, 2011, the company purchased the
122-room Hilton Garden Inn for $13.3 million, or $109,000 per key. This
represents a purchase price of 10.6x NTM EBITDA, and a post-renovation
capitalization rate of 9.0 percent. This hotel was strategically
acquired as a clustering tactic in conjunction with the recently
purchased Holiday Inn (Gwinnett Center). Noble Hospitality will operate
the hotel. The acquisition was funded by borrowings under the Company's
credit facility.
- Courtyard by Marriott – El
Paso, Texas. On July 28, 2011, the company purchased the 90-room
Courtyard by Marriott for $12.4 million, or $137,000 per key. This
represents a purchase price of 11.4 x NTM EBITDA, and a post renovation
capitalization rate of 8.3 percent. It is the second hotel owned by the
company in this market and allows Summit to achieve additional
management efficiencies and better manage market rates. The acquisition
will be managed by Interstate Hotels & Resorts, and was funded by
borrowings under the company's credit facility.
“Combined, the five hotels acquired in the past four
months had a weighted average post-renovation NTM capitalization rate
of approximately 10 percent and have been immediately accretive to
earnings,” Hansen said. “We have a sizable pipeline and continue to see
a significant number of hotels that satisfy our acquisition criteria.
We intend to continue to acquire hotels in this phase of the hotel
cycle, subject to the availability of capital and other factors, that
we believe to be accretive and that otherwise meet our strategic
investment criteria and return targets.”
Dividends
On August 12, 2011, the company declared its first
full-quarter dividend of $0.1125 per share of common stock and per
common unit of limited partnership interest in Summit Hotel OP, LP,
payable August 31, 2011 to shareholders and limited partners of record
on August 22, 2011. This represents an annualized dividend rate of
$0.45 per share and unit. The company will continue to review its
dividend policy on a quarterly basis.
Outlook
“With the management company transition issues
addressed, we anticipate that we will be able to concentrate on
building our revenues,” Hansen said. “We already have seen some success
in July 2011. We believe the transition to new hotel brands with
respect to the rebranded hotels has gone well, and we have seen some
immediate benefits as a result. Some of the deeper turn conversions
include significant renovations or upgrades, and we expect to invest an
additional $6.8 million in those projects over the next 18 months. We
expect operations at those properties to continue to improve
significantly over the next few quarters.
“Although we acknowledge there are economic
uncertainties, we don’t anticipate major changes in our markets at this
time. The long-term outlook for our industry is quite positive and we
remain optimistic about the resilience of the hotel industry recovery
and the future of our company.
“We estimate our full year 2011 FFO in the range of
$0.72 to $0.77 per fully diluted share and estimate our RevPAR for the
full portfolio, which includes the 11 rebranded hotels and the five
recently acquired hotels (70 hotels as of August 15, 2011) to grow by 5
to 7 percent compared to the prior year,” Hansen said.
The company has provided the guidance appearing above,
but it does not undertake to update it for any developments in the
company’s business. Achievement of the anticipated results is subject
to the risks disclosed in the company’s filings with the SEC. The
company's full year 2011 RevPAR reflects the ownership of 65 hotels
since January 1, 2011 and the ownership of five hotels acquired between
April and July 2011 from the respective dates of acquisition. In
addition, the company’s guidance reflects management’s view of current
market conditions, which is subject to change. It also excludes
potential future acquisitions and dispositions, which could result in a
change in the company’s guidance.
Hotel operating data for each component of the company’s
portfolio for the three and six months ended June 30, 2011 and 2010
was:
Summit Hotel Properties
|
Hotel
Operating Data |
Schedule
of Property Level Results |
(in thousands)
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For
the three months ended |
For
the six months ended |
|
|
June
30, |
|
June
30, |
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
Room Sales |
|
$37,824.9 |
|
$35,258.8 |
|
$70,539.8 |
|
$65,938.7 |
Other
Hotel Operating Income |
|
763.6
|
|
590.9
|
|
1,456.2
|
|
1,273.8
|
Total
Operating Revenue |
|
38,588.6
|
|
35,849.7
|
|
71,996.0
|
|
67,212.4
|
Room
Expenses |
|
11,727.1 |
|
10,506.0 |
|
21,604.2 |
|
20,048.0 |
Direct
Expenses |
|
5,031.2 |
|
4,158.3 |
|
9,810.2 |
|
8,286.7 |
Property
Taxes |
|
1,821.9 |
|
1,833.3 |
|
3,702.1 |
|
3,693.6 |
Insurance |
|
435.2 |
|
416.0 |
|
816.8 |
|
831.4 |
Management
Expenses |
|
608.2 |
|
856.3 |
|
1,946.0 |
|
1,611.0 |
Other
Expenses |
|
6,514.9
|
|
6,291.3
|
|
12,682.0
|
|
11,847.5
|
Total
Hotel Operating Expenses |
|
26,138.4
|
|
24,061.2
|
|
50,561.3
|
|
46,318.2
|
Income
from Hotel Operations |
|
$12,450.2 |
|
$11,788.5 |
|
$21,434.7 |
|
$20,894.2 |
|
|
|
|
|
|
|
|
|
Occupancy |
|
68.5% |
|
68.1% |
|
64.6% |
|
63.9% |
Average
Daily Rate |
|
$88.63 |
|
$87.07 |
|
$90.16 |
|
$87.26 |
RevPAR |
|
$60.70 |
|
$59.31 |
|
$58.24 |
|
$55.76 |
Summit Hotel Properties
|
Same-Store
Hotels (54 Hotels) |
Hotel
Operating Data |
Schedule
of Property Level Results |
(in
thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the three months ended |
|
For
the six months ended |
|
June
30, |
|
June
30, |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
|
|
|
|
Room Sales |
$32,188.1 |
|
$30,246.4 |
|
$60,850.9 |
|
$56,891.0 |
Other
Hotel Operating Income |
538.7
|
|
471.8
|
|
1,100.2
|
|
1,012.7
|
Total
Operating Revenue |
32,726.8
|
|
30,718.1
|
|
61,951.1
|
|
57,903.8
|
Room
Expenses |
9,410.7 |
|
8,838.4 |
|
17,811.3 |
|
16,893.0 |
Direct
Expenses |
4,069.1 |
|
3,487.0 |
|
8,144.7 |
|
6,977.4 |
Property
Taxes |
1,475.7 |
|
1,506.0 |
|
3,022.2 |
|
3,038.4 |
Insurance |
359.0 |
|
355.6 |
|
680.0 |
|
710.5 |
Management
Expenses |
443.7 |
|
734.1 |
|
1,635.1 |
|
1,389.5 |
Other
Expenses |
5,844.9
|
|
5,509.5
|
|
11,290.3
|
|
10,373.4
|
Total
Hotel Operating Expenses |
$21,603.1
|
|
$20,430.6
|
|
$42,583.6
|
|
$39,382.2
|
|
|
|
|
|
|
|
|
Income
from Hotel Operations |
$11,123.8 |
|
$10,287.5 |
|
$19,367.5 |
|
$18,521.6 |
|
|
|
|
|
|
|
|
Occupancy |
71.41% |
|
67.39% |
|
66.28% |
|
63.60% |
Average
Daily Rate |
$89.46 |
|
$89.08 |
|
$91.61 |
|
$89.25 |
RevPAR |
$63.88 |
|
$60.03 |
|
$60.72 |
|
$56.77 |
|
|
|
|
|
|
|
|
Same-Store Seasoned (39
Hotels)
|
|
|
|
|
|
|
|
Occupancy |
70.9% |
|
69.1% |
|
65.6% |
|
65.4% |
Average
Daily Rate |
$88.26 |
|
$88.58 |
|
$91.40 |
|
$89.27 |
RevPAR |
$62.59 |
|
$61.22 |
|
$60.04 |
|
$58.36 |
|
|
|
|
|
|
|
|
Same-Store Unseasoned (15
Hotels)
|
|
|
|
|
|
|
|
Occupancy |
72.4% |
|
64.0% |
|
67.4% |
|
60.2% |
Average
Daily Rate |
$91.76 |
|
$90.12 |
|
$92.00 |
|
$89.20 |
RevPAR |
$66.41 |
|
$57.69 |
|
$62.03 |
|
$53.66 |
Summit
Hotel Properties |
Rebranded
Hotels (11 Hotels) |
Hotel
Operating Data |
Schedule
of Property Level Results |
(in
thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For
the three months ended |
|
For
the six months ended |
|
|
June
30, |
|
June
30, |
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
Room Sales |
|
$3,536.3 |
|
$5,012.4 |
|
$7,588.2 |
|
$9,047.6 |
Other
Hotel Operating Income |
|
108.7
|
|
119.2
|
|
239.8
|
|
261.1
|
Total
Operating Revenue |
|
3,645.0
|
|
5,131.6
|
|
7,828.1
|
|
9,308.7
|
Room
Expenses |
|
1,649.8 |
|
1,667.5 |
|
3,126.3 |
|
3,155.0 |
Direct
Expenses |
|
719.2 |
|
671.4 |
|
1,422.5 |
|
1,309.2 |
Property
Taxes |
|
288.4 |
|
327.2 |
|
622.1 |
|
655.2 |
Insurance |
|
60.2 |
|
60.5 |
|
120.9 |
|
121.0 |
Management
Expenses |
|
93.7 |
|
122.3 |
|
240.1 |
|
221.5 |
Other
expenses |
|
287.3
|
|
781.8
|
|
986.2
|
|
1,474.0
|
Total
Hotel Operating Expenses |
|
3,098.6
|
|
3,630.6
|
|
6,518.1
|
|
6,936.0
|
Income
from Hotel Operations |
|
$546.4 |
|
$1,501.0 |
|
$1,310.0 |
|
$2,372.7 |
|
|
|
|
|
|
|
|
|
Occupancy |
|
50.5% |
|
72.2% |
|
53.8% |
|
65.6% |
Average
Daily Rate |
|
$77.26 |
|
$76.64 |
|
$78.23 |
|
$76.55 |
RevPAR |
|
$39.02 |
|
$55.30 |
|
$42.09 |
|
$50.19 |
Summit
Hotel Properties |
Acquisitions
(4 Hotels) |
Hotel
Operating Data |
Schedule
of Property Level Results |
(in
thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the three months ended |
|
For
the six months ended |
|
June
30, |
|
June
30, |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room Sales |
$2,100.7 |
|
$.0 |
|
$2,100.7 |
|
$.0 |
Other
Hotel Operating Income |
116.2
|
|
.0
|
|
116.2
|
|
.0
|
Total
Operating Revenue |
2,216.8
|
|
.0
|
|
2,216.8
|
|
.0 |
Room
Expenses |
666.6 |
|
.0 |
|
666.6 |
|
.0 |
Direct
Expenses |
243.0 |
|
.0 |
|
243.0 |
|
.0 |
Property
Taxes |
57.7 |
|
.0 |
|
57.7 |
|
.0 |
Insurance |
15.9 |
|
.0 |
|
15.9 |
|
.0 |
Management
Expenses |
70.8 |
|
.0 |
|
70.8 |
|
.0 |
Other
Expenses |
382.7
|
|
.0
|
|
405.5
|
|
.0 |
Total
Hotel Operating Expenses |
$1,436.7
|
|
|
|
$1,459.5
|
|
|
Income
from Hotel Operations |
$780.1 |
|
$.0 |
|
$757.3 |
|
$.0 |
|
|
|
|
|
|
|
|
Occupancy |
73.8% |
|
.0% |
|
73.8% |
|
.0% |
Average
Daily Rate |
$99.20 |
|
0.00 |
|
$99.20 |
|
0.00 |
RevPAR |
$73.24 |
|
0.00 |
|
$73.24 |
|
0.00 |
Earnings Conference Call
Summit will hold a conference call to discuss the
company's Quarterly Report on Form 10-Q and the information
accompanying this press release on August 16, 2011 at 9:00 a.m. ET.
Stockholders and other interested parties may join the call by dialing
800-901-5226, reference number 73524857, or may join a simultaneous
webcast of the conference call on the Internet by logging on through
the Investor Relations page of Summit’s website, www.shpreit.com.
A recording of the conference call will be available by telephone until
midnight on August 30, 2011, by dialing 888-286-8010, reference number
75777480. A replay of the conference call webcast will be posted on
Summit’s website through November 16, 2011.
Non-GAAP Financial Measures
FFO
As defined by the National Association of Real Estate
Investment Trusts, or NAREIT, funds from operations, or FFO, represents
net income or loss (computed in accordance with GAAP), excluding gains
(or losses) from sales of property, plus real estate depreciation and
amortization (excluding amortization of deferred financing costs). We
present FFO because we consider it an important supplemental measure of
our operational performance and believe it is frequently used by
securities analysts, investors and other interested parties in the
evaluation of REITs, many of which present FFO when reporting their
results. FFO is intended to exclude GAAP historical cost depreciation
and amortization of real estate and related assets, which assumes that
the value of real estate assets diminishes ratably over time.
Historically, however, real estate values have risen or fallen with
market conditions. Because FFO excludes depreciation and amortization
unique to real estate, gains and losses from property dispositions and
extraordinary items, it provides a performance measure that, when
compared year over year, reflects the impact to operations from trends
in occupancy, room rates, operating costs, development activities and
interest costs, providing perspective not immediately apparent from net
income. We compute FFO in accordance with standards established by the
Board of Governors of NAREIT in its March 1995 White Paper (as amended
in November 1999 and April 2002), which may differ from the methodology
for calculating FFO utilized by other equity REITs and, accordingly,
may not be comparable to such other REITs. Further, FFO does not
represent amounts available for management’s discretionary use because
of needed capital replacement or expansion, debt service obligations,
or other commitments and uncertainties. FFO should not be considered as
an alternative to net income (loss) (computed in accordance with GAAP)
as an indicator of our liquidity, nor is it indicative of funds
available to fund our cash needs, including our ability to pay
dividends or make distributions.
We caution investors that amounts presented in
accordance with our definitions of FFO may not be comparable to similar
measures disclosed by other companies, since not all companies
calculate this non-GAAP measure in the same manner. FFO should not be
considered as an alternative measure of our net income (loss) or
operating performance. FFO 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 can enhance
your understanding of our financial condition and results of
operations, this non-GAAP financial measure is not necessarily a better
indicator of any trend as compared to a comparable GAAP measure such as
net income (loss). Abovewe have included a quantitative reconciliation
of FFO to the most directly comparable GAAP financial performance
measure, which is net income (loss). Dollar amounts in such
reconciliation are in thousands.
EBITDA
EBITDA represents net income or loss, excluding: (i)
interest, (ii) income tax expense and (iii) depreciation and
amortization. We believe EBITDA is useful to an investor in evaluating
our operating performance because it provides 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 it helps
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 as one measure in determining
the value of acquisitions and dispositions.
We caution investors that amounts presented in
accordance with our definitions of EBITDA may not be comparable to
similar measures disclosed by other companies, since not all companies
calculate this non-GAAP measure in the same manner. EBITDA should not
be considered as an alternative measure of our net income (loss) or
operating performance. 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 EBITDA
can enhance your understanding of our financial condition and results
of operations, this non-GAAP financial measure is not necessarily a
better indicator of any trend as compared to a comparable GAAP measure
such as net income (loss). Above we include a quantitative
reconciliation of EBITDA to the most directly comparable GAAP financial
performance measure, which is net income (loss). Dollar amounts in such
reconciliation are in thousands.
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly traded real
estate investment trust focused exclusively on acquiring and owning
premium-branded limited-service and select-service hotels in the
upscale and upper midscale segments of the lodging industry. As of
August 15, 2011, our portfolio consisted of 70 hotels with a total of
7,100 guestrooms located in 19 states. Additional information about
Summit may be found at our website, www.shpreit.com.
Forward-Looking Statements
This press release contains statements that are
“forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Act of 1934, as amended, pursuant to the safe harbor provisions of the
Private Securities Reform Act of 1995. Forward-looking statements are
generally identifiable by use of forward-looking terminology such as
“may,” “will,” “should,” “potential,” “intend,” “expect,” “seek,”
“anticipate,” “estimate,” “approximately,” “believe,” “could,”
“project,” “predict,” “forecast,” “continue,” “plan” or other similar
words or expressions. Forward-looking statements are based on certain
assumptions and can include future expectations, future plans and
strategies, financial and operating projections or other
forward-looking information. Examples of forward-looking statements
include the following: projections of the company’s revenues and
expenses, or other financial items; descriptions of the company’s plans
or objectives for future operations, acquisitions or services;
forecasts of the company’s future economic performance and potential
increases in average daily rate, occupancy, RevPAR and room supply and
demand; and descriptions of assumptions underlying or relating to any
of the foregoing expectations regarding the timing of their occurrence.
These forward-looking statements are subject to various risks and
uncertainties, not all of which are known to the company and many of
which are beyond the company’s control, which could cause actual
results to differ materially from such statements. These risks and
uncertainties include, but are not limited to, the state of the U.S.
economy, supply and demand in the hotel industry and other factors as
are described in greater detail in the company’s filings with the
Securities and Exchange Commission (“SEC”), including, without
limitation, the company’s Annual Report on Form 10-K for the year ended
December 31, 2010. Unless legally required, the company disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise.
For information about the company’s business and
financial results, please refer to the “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and “Risk
Factors” sections of the company’s Annual Report on Form 10-K for the
year ended December 31, 2010.
All information in this release is as of August 15,
2011. The company undertakes no duty to update the statements in this
release to conform the statements to actual results or changes in the
company’s expectations.
Summit
Hotel Properties, Inc. and Summit Hotel Properties, LLC (Predecessor) |
Condensed
Consolidated Balance Sheets (unaudited) |
June
30, 2011 and December 31, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Summit
Hotel Properties, Inc. |
|
Summit Hotel
Properties, LLC
(Predecessor)
|
|
2011 |
|
2010 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
29,589,139 |
|
|
$ |
7,977,418 |
|
Restricted
cash |
|
1,024,109 |
|
|
|
1,933,268 |
|
Trade
receivables |
|
4,484,399 |
|
|
|
2,665,076 |
|
Receivable
due from affiliate |
|
- |
|
|
|
4,620,059 |
|
Prepaid
expenses and other |
|
3,118,765 |
|
|
|
1,738,645 |
|
Land held
for development |
|
20,294,973 |
|
|
|
20,294,973 |
|
Property
and equipment, net |
|
478,633,469 |
|
|
|
445,715,804 |
|
Deferred
charges and other assets, net |
|
9,944,564 |
|
|
|
4,051,295 |
|
Other
assets |
|
3,594,787 |
|
|
|
4,011,992
|
|
TOTAL
ASSETS |
$ |
550,684,205 |
|
|
$
|
493,008,530
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY |
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
Accounts
payable |
$ |
940,827 |
|
|
$ |
864,560 |
|
Related
party accounts payable |
|
- |
|
|
|
771,066 |
|
Accrued
expenses |
|
14,623,459 |
|
|
|
11,092,131 |
|
Mortgages
and notes payable |
|
251,720,675 |
|
|
|
420,437,207
|
|
TOTAL
LIABILITIES |
|
267,284,961 |
|
|
|
433,164,964
|
|
|
|
|
|
COMMITMENTS
AND CONTINGENCIES |
|
|
|
|
|
|
|
EQUITY |
|
|
|
Members'
equity |
|
- |
|
|
|
61,468,029 |
|
Common stock, $.01 par value
per share, 450,000,000 shares authorized, 27,278,000 issued and
outstanding as of June 30, 2011
|
|
272,780 |
|
|
|
- |
|
Additional
paid-in capital |
|
240,885,162 |
|
|
|
- |
|
Accumulated
deficit and distributions |
|
(2,272,324 |
) |
|
|
-
|
|
Total
stockholders' equity |
|
238,885,618 |
|
|
|
61,468,029 |
|
Noncontrolling
interest |
|
44,513,626 |
|
|
|
(1,624,463
|
)
|
TOTAL
EQUITY |
|
283,399,244 |
|
|
|
59,843,566
|
|
|
|
|
|
TOTAL
LIABILITIES AND EQUITY |
$ |
550,684,205 |
|
|
$
|
493,008,530
|
|
Summit
Hotel Properties, Inc. and Summit Hotel Properties, LLC (Predecessor) |
Condensed
Consolidated Statements of Operations (unaudited) |
For
the six months ended June 30, 2011 and 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Summit Hotel
Properties, Inc.
|
|
Summit Hotel
Properties, LLC
(Predecessor)
|
|
Summit Hotel
Properties, Inc.
|
|
Summit Hotel Properties,
LLC (Predecessor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended 6/30/11
|
|
Three Months
Ended 6/30/10
|
|
Period 2/14/11
through 6/30/11
|
|
Period 1/1/11
through 2/13/11
|
|
Six Months Ended
6/30/10
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
|
|
|
|
|
|
|
|
|
Room
revenues |
|
$ |
37,824,945 |
|
|
$ |
35,258,817 |
|
|
$ |
56,271,795 |
|
|
$ |
14,268,042 |
|
|
$ |
65,938,663 |
|
Other
hotel operations revenues |
|
|
763,619 |
|
|
|
590,909
|
|
|
|
1,125,918 |
|
|
|
330,251 |
|
|
|
1,273,783
|
|
Total
Revenue |
|
|
38,588,564 |
|
|
|
35,849,726
|
|
|
|
57,397,713 |
|
|
|
14,598,293 |
|
|
|
67,212,446
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
Hotel
operating expenses |
|
|
|
|
|
|
|
|
|
|
Rooms |
|
|
11,727,100 |
|
|
|
10,505,996 |
|
|
|
16,643,700 |
|
|
|
4,960,450 |
|
|
|
20,048,040 |
|
Other
direct |
|
|
5,031,210 |
|
|
|
4,158,337 |
|
|
|
7,152,417 |
|
|
|
2,657,760 |
|
|
|
8,286,682 |
|
Other
indirect |
|
|
9,179,041 |
|
|
|
9,244,765 |
|
|
|
14,113,569 |
|
|
|
4,686,274 |
|
|
|
17,681,096 |
|
Other
|
|
|
201,047 |
|
|
|
152,108
|
|
|
|
274,085 |
|
|
|
73,038 |
|
|
|
302,361
|
|
Total hotel
operating expenses |
|
|
26,138,398 |
|
|
|
24,061,206 |
|
|
|
38,183,771 |
|
|
|
12,377,522 |
|
|
|
46,318,179 |
|
Depreciation
and amortization |
|
|
6,819,608 |
|
|
|
6,671,258 |
|
|
|
10,248,823 |
|
|
|
3,429,216 |
|
|
|
13,521,822 |
|
Corporate
general and administrative: |
|
|
|
|
|
|
|
|
|
|
Salaries
and other compensation |
|
|
699,014 |
|
|
|
- |
|
|
|
1,066,032 |
|
|
|
- |
|
|
|
- |
|
Other |
|
|
774,459 |
|
|
|
- |
|
|
|
1,549,811 |
|
|
|
- |
|
|
|
- |
|
Equity
based compensation |
|
|
175,656 |
|
|
|
- |
|
|
|
302,484 |
|
|
|
- |
|
|
|
- |
|
Hotel
property acquisition costs |
|
|
- |
|
|
|
(9,173
|
)
|
|
|
- |
|
|
|
- |
|
|
|
56,519
|
|
Total
Expenses |
|
|
34,607,135 |
|
|
|
30,723,291
|
|
|
|
51,350,921 |
|
|
|
15,806,738 |
|
|
|
59,896,520
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) FROM OPERATIONS |
|
|
3,981,429 |
|
|
|
5,126,435
|
|
|
|
6,046,792 |
|
|
|
(1,208,445 |
) |
|
|
7,315,926
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
10,280 |
|
|
|
11,474 |
|
|
|
14,227 |
|
|
|
7,139 |
|
|
|
23,559 |
|
Interest
expense |
|
|
(3,007,640 |
) |
|
|
(7,133,904 |
) |
|
|
(6,518,769 |
) |
|
|
(4,666,216 |
) |
|
|
(12,701,101 |
) |
Gain
(loss) on disposal of assets |
|
|
(36,031 |
) |
|
|
(1,938
|
)
|
|
|
(36,031 |
) |
|
|
- |
|
|
|
(39,389
|
)
|
Total
Other Income (Expense) |
|
|
(3,033,391 |
) |
|
|
(7,124,368
|
)
|
|
|
(6,540,573 |
) |
|
|
(4,659,077 |
) |
|
|
(12,716,931
|
)
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) FROM CONTINUING OPERATIONS |
|
|
948,038 |
|
|
|
(1,997,933 |
) |
|
|
(493,781 |
) |
|
|
(5,867,522 |
) |
|
|
(5,401,005 |
) |
|
|
|
|
|
|
|
|
|
|
|
INCOME
TAX EXPENSE |
|
|
(344,177 |
) |
|
|
(75,702
|
)
|
|
|
(516,479 |
) |
|
|
(339,034 |
) |
|
|
(228,185
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) |
|
|
603,861 |
|
|
|
(2,073,635
|
)
|
|
|
(1,010,260 |
) |
|
|
(6,206,556 |
) |
|
|
(5,629,190
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) ALLOCATED
TO NONCONTROLLING INTEREST
|
|
|
163,042 |
|
|
|
- |
|
|
|
(272,770 |
) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) ALLOCATED
TO COMMON STOCKHOLDERS
|
|
$ |
440,819 |
|
|
$
|
(2,073,635
|
)
|
|
$ |
(737,490 |
) |
|
$ |
(6,206,556 |
) |
|
$
|
(5,629,190
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share: |
|
|
|
|
|
|
|
|
|
|
Basic
and diluted |
|
$ |
0.02 |
|
|
|
|
$ |
(0.03 |
) |
|
|
|
|
Weighted-average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic
and diluted |
|
|
27,278,000 |
|
|
|
|
|
27,278,000 |
|
|
|
|
|
Summit
Hotel Properties, Inc. |
Combined
Statement of Operations (unaudited) |
For
the three and six months ended June 30, 2011 and 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summit Hotel
Properties, Inc.
|
|
Summit Hotel
Properties, LLC
(Predecessor)
|
|
Summit Hotel
Properties, Inc.
|
|
Summit Hotel
Properties, LLC
(Predecessor)
|
|
Company &
Predecessor
|
|
Adjustments
(Normalization)
|
|
|
Normalized
Company &
Predecessor
|
|
Summit Hotel
Properties, LLC
(Predecessor)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended 6/30/11
|
|
Three Months
Ended 6/30/10
|
|
Period 2/14/11
through 6/30/11
|
|
Period 1/1/11
through 2/13/11
|
|
Six Months
Ended 6/30/11
|
|
Six Months
Ended 6/30/11
|
|
|
Six Months
Ended 6/30/11
|
|
Six Months
Ended 6/30/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
revenues |
|
$ |
37,824,945 |
|
|
$ |
35,258,817 |
|
|
$ |
56,271,795 |
|
|
$ |
14,268,042 |
|
|
$ |
70,539,837 |
|
|
|
|
|
$ |
70,539,837 |
|
|
$ |
65,938,663 |
|
Other
hotel operations revenues |
|
|
763,619 |
|
|
|
590,909
|
|
|
|
1,125,918
|
|
|
|
330,251
|
|
|
|
1,456,169 |
|
|
|
|
|
|
1,456,169 |
|
|
|
1,273,783
|
|
Total
Revenue |
|
|
38,588,564 |
|
|
|
35,849,726
|
|
|
|
57,397,713
|
|
|
|
14,598,293
|
|
|
|
71,996,006 |
|
|
|
|
|
|
71,996,006 |
|
|
|
67,212,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms |
|
|
11,727,100 |
|
|
|
10,505,996 |
|
|
|
16,643,700 |
|
|
|
4,960,450 |
|
|
|
21,604,150 |
|
|
|
|
|
|
21,604,150 |
|
|
|
20,048,040 |
|
Other
direct |
|
|
5,031,210 |
|
|
|
4,158,337 |
|
|
|
7,152,417 |
|
|
|
2,657,760 |
|
|
|
9,810,177 |
|
|
(270,000 |
) |
|
(1 |
) |
|
9,540,177 |
|
|
|
8,286,682 |
|
Other
indirect |
|
|
9,179,041 |
|
|
|
9,244,765 |
|
|
|
14,113,569 |
|
|
|
4,686,274 |
|
|
|
18,799,843 |
|
|
(440,000 |
) |
|
(2 |
) |
|
18,359,843 |
|
|
|
17,681,096 |
|
Other
|
|
|
201,047 |
|
|
|
152,108
|
|
|
|
274,085
|
|
|
|
73,038
|
|
|
|
347,123 |
|
|
|
|
|
|
347,123 |
|
|
|
302,361
|
|
Total hotel
operating expenses |
|
|
26,138,398 |
|
|
|
24,061,206 |
|
|
|
38,183,771 |
|
|
|
12,377,522 |
|
|
|
50,561,293 |
|
|
(710,000 |
) |
|
|
|
49,851,293 |
|
|
|
46,318,179 |
|
Depreciation
and amortization |
|
|
6,819,608 |
|
|
|
6,671,258 |
|
|
|
10,248,823 |
|
|
|
3,429,216 |
|
|
|
13,678,039 |
|
|
|
|
|
|
13,678,039 |
|
|
|
13,521,822 |
|
Corporate
general and administrative: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and other compensation |
|
|
699,014 |
|
|
|
- |
|
|
|
1,066,032 |
|
|
|
- |
|
|
|
1,066,032 |
|
|
|
|
|
|
1,066,032 |
|
|
|
- |
|
Other |
|
|
774,459 |
|
|
|
- |
|
|
|
1,549,811 |
|
|
|
- |
|
|
|
1,549,811 |
|
|
(476,000 |
) |
|
(3 |
) |
|
1,073,811 |
|
|
|
- |
|
Equity
based compensation |
|
|
175,656 |
|
|
|
- |
|
|
|
302,484 |
|
|
|
- |
|
|
|
302,484 |
|
|
|
|
|
|
302,484 |
|
|
|
- |
|
Hotel
property acquisition costs |
|
|
- |
|
|
|
(9,173
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
56,519
|
|
Total
Expenses |
|
|
34,607,135 |
|
|
|
30,723,291
|
|
|
|
51,350,921
|
|
|
|
15,806,738
|
|
|
|
67,157,659 |
|
|
(1,186,000
|
)
|
|
|
|
65,971,659 |
|
|
|
59,896,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) FROM OPERATIONS |
|
|
3,981,429 |
|
|
|
5,126,435
|
|
|
|
6,046,792
|
|
|
|
(1,208,445
|
)
|
|
|
4,838,347 |
|
|
1,186,000
|
|
|
|
|
6,024,347 |
|
|
|
7,315,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
10,280 |
|
|
|
11,474 |
|
|
|
14,227 |
|
|
|
7,139 |
|
|
|
21,366 |
|
|
|
|
|
|
21,366 |
|
|
|
23,559 |
|
Interest
expense |
|
|
(3,007,640 |
) |
|
|
(7,133,904 |
) |
|
|
(6,518,769 |
) |
|
|
(4,666,216 |
) |
|
|
(11,184,985 |
) |
|
5,600,000 |
|
|
(4 |
) |
|
(5,584,985 |
) |
|
|
(12,701,101 |
) |
Gain
(loss) on disposal of assets |
|
|
(36,031 |
) |
|
|
(1,938
|
)
|
|
|
(36,031
|
)
|
|
|
-
|
|
|
|
(36,031 |
) |
|
|
|
|
|
(36,031 |
) |
|
|
(39,389
|
)
|
Total
Other Income (Expense) |
|
|
(3,033,391 |
) |
|
|
(7,124,368
|
)
|
|
|
(6,540,573
|
)
|
|
|
(4,659,077
|
)
|
|
|
(11,199,650 |
) |
|
5,600,000
|
|
|
|
|
(5,599,650 |
) |
|
|
(12,716,931
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) FROM CONTINUING OPERATIONS |
|
|
948,038 |
|
|
|
(1,997,933 |
) |
|
|
(493,781 |
) |
|
|
(5,867,522 |
) |
|
|
(6,361,303 |
) |
|
6,786,000 |
|
|
|
|
424,697 |
|
|
|
(5,401,005 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
TAX EXPENSE |
|
|
(344,177 |
) |
|
|
(75,702
|
)
|
|
|
(516,479
|
)
|
|
|
(339,034
|
)
|
|
|
(855,513 |
) |
|
339,000
|
|
|
(5 |
) |
|
(516,513 |
) |
|
|
(228,185
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) |
|
|
603,861 |
|
|
|
(2,073,635
|
)
|
|
|
(1,010,260
|
)
|
|
|
(6,206,556
|
)
|
|
|
(7,216,816 |
) |
|
7,125,000
|
|
|
|
|
(91,816 |
) |
|
|
(5,629,190
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) ALLOCATED
TO NONCONTROLLING INTEREST
|
|
|
163,042 |
|
|
|
- |
|
|
|
(272,770 |
) |
|
|
- |
|
|
|
(272,770 |
) |
|
1,923,750 |
|
|
|
|
1,650,980 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) ALLOCATED
TO COMMON STOCKHOLDERS
|
|
$ |
440,819 |
|
|
$
|
(2,073,635
|
)
|
|
$
|
(737,490
|
)
|
|
$
|
(6,206,556
|
)
|
|
$ |
(6,944,046 |
) |
|
5,201,250
|
|
|
|
$ |
(1,742,796 |
) |
|
$
|
(5,629,190
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss) after Taxes |
|
|
603,861 |
|
|
|
(2,073,635 |
) |
|
|
(1,010,260 |
) |
|
|
(6,206,556 |
) |
|
|
(7,216,816 |
) |
|
|
|
|
|
(91,816 |
) |
|
|
(5,629,190 |
) |
Depreciation/Amortization
|
|
|
6,819,608 |
|
|
|
6,671,258
|
|
|
|
10,248,823
|
|
|
|
3,429,216
|
|
|
|
13,678,039 |
|
|
|
|
|
|
13,678,039 |
|
|
|
13,521,822
|
|
FUNDS
FROM OPERATIONS |
|
|
7,423,469 |
|
|
|
4,597,623 |
|
|
|
9,238,563 |
|
|
|
(2,777,340 |
) |
|
|
6,461,223 |
|
|
|
|
|
|
13,586,223 |
|
|
|
7,892,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss) after Taxes |
|
|
603,861 |
|
|
|
(2,073,635 |
) |
|
|
(1,010,260 |
) |
|
|
(6,206,556 |
) |
|
|
(7,216,816 |
) |
|
|
|
|
|
(91,816 |
) |
|
|
(5,629,190 |
) |
Depreciation/Amortization
|
|
|
6,819,608 |
|
|
|
6,671,258 |
|
|
|
10,248,823 |
|
|
|
3,429,216 |
|
|
|
13,678,039 |
|
|
|
|
|
|
13,678,039 |
|
|
|
13,521,822 |
|
Interest
Expense |
|
|
3,007,640 |
|
|
|
7,133,904 |
|
|
|
6,518,769 |
|
|
|
4,666,216 |
|
|
|
11,184,985 |
|
|
|
|
|
|
5,584,985 |
|
|
|
12,701,101 |
|
Interest
Income |
|
|
(10,280 |
) |
|
|
(11,474 |
) |
|
|
(14,227 |
) |
|
|
(7,139 |
) |
|
|
(21,366 |
) |
|
|
|
|
|
(21,366 |
) |
|
|
(23,559 |
) |
Income
Taxes |
|
|
344,177 |
|
|
|
75,702
|
|
|
|
516,479
|
|
|
|
339,034
|
|
|
|
855,513 |
|
|
|
|
|
|
516,513 |
|
|
|
228,185
|
|
EBITDA |
|
|
10,765,006 |
|
|
|
11,795,755 |
|
|
|
16,259,584 |
|
|
|
2,220,771 |
|
|
|
18,480,355 |
|
|
|
|
|
|
19,666,355 |
|
|
|
20,798,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss) after Taxes |
|
|
603,861 |
|
|
|
(2,073,635 |
) |
|
|
(1,010,260 |
) |
|
|
(6,206,556 |
) |
|
|
(7,216,816 |
) |
|
|
|
|
|
(91,816 |
) |
|
|
(5,629,190
|
)
|
Depreciation/Amortization
|
|
|
6,819,608 |
|
|
|
6,671,258 |
|
|
|
10,248,823 |
|
|
|
3,429,216 |
|
|
|
13,678,039 |
|
|
|
|
|
|
13,678,039 |
|
|
|
13,521,822 |
|
Interest
Expense |
|
|
3,007,640 |
|
|
|
7,133,904 |
|
|
|
6,518,769 |
|
|
|
4,666,216 |
|
|
|
11,184,985 |
|
|
|
|
|
|
5,584,985 |
|
|
|
12,701,101 |
|
Interest
Income |
|
|
(10,280 |
) |
|
|
(11,474 |
) |
|
|
(14,227 |
) |
|
|
(7,139 |
) |
|
|
(21,366 |
) |
|
|
|
|
|
(21,366 |
) |
|
|
(23,559 |
) |
Income
Taxes |
|
|
344,177 |
|
|
|
75,702 |
|
|
|
516,479 |
|
|
|
339,034 |
|
|
|
855,513 |
|
|
|
|
|
|
516,513 |
|
|
|
228,185 |
|
Corporate
general and administrative |
|
|
1,649,129 |
|
|
|
- |
|
|
|
2,918,327 |
|
|
|
- |
|
|
|
2,918,327 |
|
|
|
|
|
|
2,442,327 |
|
|
|
- |
|
Hotel
property acquisition costs |
|
|
- |
|
|
|
(9,173 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
56,519 |
|
Gain
(loss) on disposal of assets |
|
|
36,031 |
|
|
|
1,938
|
|
|
|
36,031
|
|
|
|
-
|
|
|
|
36,031 |
|
|
|
|
|
|
36,031 |
|
|
|
39,389
|
|
HOTEL
EBITDA |
|
|
12,450,166 |
|
|
|
11,788,520 |
|
|
|
19,213,942 |
|
|
|
2,220,771 |
|
|
|
21,434,713 |
|
|
|
|
|
|
22,144,713 |
|
|
|
20,894,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Additional accrual of Utilities due to the transition to Interstate
Hotels & Resorts as property manager |
(2)
Additional accrual of Travel Agent Commissions and Management Expenses
due to the transition to Interstate Hotels & Resorts as property
manager |
(3) $476,000 are related to
one-time or predecessor expenses, such as bonuses and audit expenses
related to 2010 operations and directors' stock expense
|
(4)
Additional interest expense due to the timing of debt paydowns and fees
associated with debt distinguishment |
(5) State income tax expense
related to Predecessor
|
|
|