BETHESDA, Md., July 25, 2011 -- DiamondRock Hospitality
Company (the "Company") (NYSE: DRH) today announced results of operations for
its second fiscal quarter ending June 17, 2011.
The Company is a lodging focused real estate investment trust that owns
26 premium hotels in North America
and holds a senior mortgage loan secured by another premium hotel.
Second Quarter 2011 Highlights
- Pro Forma RevPAR: The
Company's Pro Forma RevPAR was $124.03,
an increase of 6.4% from the comparable period in 2010. Pro Forma
RevPAR is calculated for the 25 hotels owned by the Company as of June 17, 2011 as if these hotels were owned
since January 1, 2010 but excludes the
operating results of the Frenchman's Reef & Morning Star Marriott
Beach Resort due to the impact of the ongoing extensive renovation of
the hotel in 2011.
- Pro Forma Hotel Adjusted EBITDA Margins: The
Company's Pro Forma Hotel Adjusted EBITDA margin was 27.87%, an
increase of 104 basis points from the comparable period in 2010. Pro
Forma Hotel Adjusted EBITDA margin is calculated for the 25 hotels
owned by the Company as of June 17, 2011
as if these hotels were owned since January 1,
2010 but excludes the operating results of the Frenchman's Reef
& Morning Star Marriott Beach Resort.
- Adjusted EBITDA: The Company's
Adjusted EBITDA was $41.1 million.
- Adjusted FFO: The Company's Adjusted FFO was $25.6 million and Adjusted FFO per diluted
share was $0.15.
- Acquisition of the JW Marriott Denver: On
May 19, 2011, the Company
acquired the JW Marriott Denver at Cherry Creek for approximately $74 million.
- Acquisition of the Lexington Hotel NYC: On
June 1, 2011, the Company
acquired the Lexington Hotel New York for approximately of $337 million.
- Acquisition of the Courtyard Denver: On
July 22, 2011, the Company
acquired the Courtyard Denver Downtown for approximately $46 million.
- Hilton Minneapolis Mortgage Loan: On April 15, 2011, the Company received $100 million of proceeds from a new
non-recourse loan secured by the Hilton Minneapolis.
- Credit Facility Amendment: On June 2, 2011, the Company amended its $200 million corporate credit facility to
reduce the interest rate, lower certain fees, and extend the term for
an additional year.
- Dividends: The Company declared a quarterly
dividend of $0.08 per share during the
second quarter.
Mark W. Brugger, Chief
Executive Officer of DiamondRock Hospitality Company, stated, "The
second quarter represented the continued successful execution of our
strategy and evidenced both strong internal and external growth for
DiamondRock. Our operating results reflect strengthening of lodging
fundamentals, which should continue to be strong against a comparison
to cyclical trough results as well as constrained new hotel supply.
Since last year, we have completed or committed $900
million of high-quality investments with more than half of those
investments in Midtown New York. We continue to see excellent
acquisition opportunities but remain focused on maximizing value from
our existing portfolio."
"We are pleased with our portfolio's room revenue performance,
particularly in light of difficult comparisons and convention calendar
challenges in our two largest group markets, Chicago
and Boston. Group booking pace in
these two key markets is up over 8% for the balance of 2011 and 14% for
2012. Overall margin expansion was strong as our cost containment
efforts maintained profits even as group banquet contribution
moderated," stated John Williams,
President and Chief Operating Officer of DiamondRock Hospitality
Company. "Our $45 million repositioning
of Frenchman's Reef is currently on-time and on-budget, albeit with
estimated operating profit displacement increasing $1 million as we temporarily added costs to
keep our customers happy during the renovation. The group meeting
planner reaction has been better than expected and group pace is up 20%
in the fourth quarter of 2011 and 55% for 2012."
Operating Results
Please see "Certain Definitions" and "Non-GAAP Financial
Measures" attached to this press release for an explanation of the
terms "EBITDA," "Adjusted EBITDA," "Hotel Adjusted EBITDA Margins,"
"FFO" and "Adjusted FFO." Moreover, the discussions of "Pro
Forma RevPAR" and "Pro Forma Hotel Adjusted EBITDA Margins" assume the
25 hotels owned by the Company as of June 17,
2011 were owned since January 1, 2010
but exclude the operating results of the Frenchman's Reef & Morning
Star Marriott Beach Resort ("Frenchman's Reef") due to the impact of
the extensive renovation of the hotel in 2011, which includes partial
closure of the hotel.
For the second quarter beginning March
26, 2011 and ending June 17, 2011,
the Company reported the following:
- Pro Forma RevPAR increase of 6.4% and Pro Forma Hotel
Adjusted EBITDA margin increase of 104 basis points compared to the
comparable period in 2010.
- Revenues of $169.5 million
compared to $151.1 million for the
comparable period in 2010.
- Adjusted EBITDA of $41.1 million
compared to $35.8 million for the
comparable period in 2010.
- Adjusted FFO of $25.6 million
and Adjusted FFO per diluted share of $0.15
based on 167.4 million diluted weighted average shares compared to $21.6 million and $0.16,
respectively, for the comparable period in 2010.
- Net loss of $0.6 million (or
$0.00 per diluted share)
compared to net income of $0.8 million
(or $0.01 per diluted share) for the
comparable period in 2010.
The second quarter Pro Forma RevPAR increase of 6.4% (from $116.60 to $124.03)
was driven by a 4.2% increase in the average daily rate (from $157.14 to $163.78)
and a 1.5 percentage point increase in occupancy (from 74.2 percent to
75.7 percent). Second quarter Pro Forma Hotel Adjusted EBITDA margins
increased 104 basis points (from 26.83% to 27.87%) from the comparable
period in 2010.
For the period from January 1, 2011
to June 17, 2011, the Company reported
the following:
- Pro Forma RevPAR increase of 5.6% and Pro Forma Hotel
Adjusted EBITDA margin increase of 82 basis points compared to the
comparable period in 2010.
- Revenues of $291.8 million
compared to $264.0 million for the
comparable period in 2010.
- Adjusted EBITDA of $59.9 million
compared to $54.3 million for the
comparable period in 2010.
- Adjusted FFO of $37.4 million
and Adjusted FFO per diluted share of $0.23
based on 165.7 million diluted weighted average shares compared to $33.6 million and $0.25,
respectively, for the comparable period in 2010.
- Net loss of $11.6 million
(or $0.07 per diluted share) compared to
$7.5 million (or $0.06 per diluted share) for the comparable
period in 2010.
The year-to-date Pro Forma RevPAR increase of 5.6% (from $104.33 to $110.19)
was driven by a 4.4% increase in the average daily rate (from $148.09 to $154.56)
and a 0.8 percentage point increase in occupancy (from 70.5 percent to
71.3 percent). Year-to-date Pro Forma Hotel Adjusted EBITDA margins
increased 82 basis points (from 22.68% to 23.50%) from the comparable
period in 2010.
Hotel Acquisitions
JW Marriott Denver Cherry Creek. On May 19, 2011, the Company completed the
acquisition of the 196-room JW Marriott Denver Cherry Creek for
approximately $74 million. The
acquisition was funded with corporate cash and the assumption of a $42.4 million mortgage loan. The mortgage loan
bears a fixed interest rate of 6.47% and matures in July 2015. The JW Marriott was acquired at an
11.5 times multiple of 2012 forecasted EBITDA. The hotel is
consistently the market leader among its competitive set and is
well-positioned to continue capturing Denver's
high-end demand. Earlier this year, the JW Marriott completed a $5.0 million renovation of its guestrooms,
which feature four-fixture marble bathrooms, the hotel's 8,400 square
feet of meeting space and new state-of-the-art fitness center. With
luxury finishes and a 2011 RevPAR of $165,
this acquisition enhances the overall quality of the DiamondRock
portfolio. The Company entered into a new management agreement with
Sage Hospitality to continue managing the hotel. The Company is also
investigating a potentially valuable return on investment opportunity
to enhance the meeting space at the hotel.
The Lexington Hotel New York City. On June 1, 2011, the Company completed the
acquisition of the 712-room Lexington Hotel New York for approximately $337 million. The acquisition was funded with
corporate cash and a $115 million draw
on the Company's credit facility. The Lexington Hotel was acquired at a
13.5 times multiple of 2012 forecasted EBITDA. The hotel's forecasted
2011 RevPAR of $198 is over 60% above
the Company's portfolio average and the hotel is expected to generate
Hotel Adjusted EBITDA margins that are over 1200 basis points higher
than the portfolio average. The acquisition provides the Company with
additional exposure to the dynamic Manhattan
market and offers rebranding potential. The Company entered into a new
management agreement with Highgate Hotels to continue managing the
hotel. The Company is currently exploring opportunities to create
significant value by re-branding and/or repositioning the hotel.
Courtyard Denver Downtown. On July
22, 2011, the Company completed the acquisition of the 177-room
Courtyard Denver Downtown for approximately $46
million. The acquisition was funded with corporate cash, a draw
on the Company's credit facility and the assumption of a $27.2 million mortgage loan. The loan bears
interest at 6.26% and is prepayable beginning in February
2012. The hotel is consistently ranked first in its competitive
set of downtown Denver hotels. The
hotel, created from a conversion of a historic department store, enjoys
a superb location in downtown Denver
and is centrally located on the 16th Street Pedestrian Mall in the
heart of Denver's Central Business
District. With its premier location and strong brand, the hotel is able
to charge full-service average daily rates with the lower
limited-service cost structure. The hotel has achieved a RevPAR premium
to the nearest full-service Marriott for seven consecutive years.
Earlier this year, the hotel completed an extensive guest room
renovation and is in excellent physical condition. The Company expects
the hotel to generate 2012 EBITDA of approximately $3.8 million.
Credit Facility Amendment
On June 2, 2011, the Company
amended its $200 million corporate
credit facility. The amendment removed the LIBOR floor from the
interest rate on borrowings, lowered unused fees and reduced the cost
to extend the credit facility. Interest continues to accrue on
borrowings at varying rates, based upon LIBOR plus an applicable
margin. The applicable margin is now based on the Company's ratio of
net indebtedness to EBITDA. In addition, the maturity date of the
credit facility was extended by one year to August
2014. The Company has an additional one year extension option to
August 2015, subject to the
satisfaction of customary conditions and the payment of applicable
fees. At the end of the second fiscal quarter, the Company had $115 million in outstanding borrowings on the
credit facility bearing interest at 2.45%. Subsequent to the end of the
second fiscal quarter, the Company borrowed an additional $15 million on the credit facility to fund a
portion of its acquisition of the Courtyard Denver Downtown. Based on
the Company's current ratio of net indebtedness to EBITDA, future
borrowings under the facility are expected to bear interest at LIBOR
plus 300 basis points.
Hilton Minneapolis Financing
On April 15, 2011, the Company
completed a new $100 million
non-recourse loan secured by the Hilton Minneapolis. The loan has a
10-year term, bears interest at an annual fixed rate of 5.46% and
amortizes on a 25-year schedule. The Company acquired the Hilton
Minneapolis in June 2010 for
approximately $157 million and the hotel
was previously unencumbered by debt. The Company used the proceeds from
this loan toward the purchase of the Lexington Hotel New York.
Dividends
The Company's Board of Directors declared a quarterly dividend
of $0.08 per share to stockholders of
record as of June 17, 2011. The dividend
was paid on June 27, 2011.
Conrad Chicago Performance Termination
The Conrad Chicago failed the performance criteria under the
Company's management agreement with Hilton. The Company is currently in
negotiations with Hilton and other global brand companies about the
optimal long-term solution for the branding and management of the
hotel.
Capital Expenditures
During 2011, the Company plans to commence or complete
approximately $65 million of capital
improvements, approximately $40 million
of which will be funded from corporate cash and the remainder from
restricted cash (reserves held by hotel managers). The Company's
estimated 2011 capital expenditures include approximately $37 million for the 2011 portion of the
Frenchman's Reef capital investment program ($32
million from corporate cash and existing property reserves and $5 million from Marriott). The Company has
spent approximately $21.3 million on
capital improvements as of June 17, 2011.
The Company is continuing to execute on the comprehensive $45 million capital investment program at
Frenchman's Reef. The majority of the renovation and repositioning
program commenced in early May 2011 when
two of the resort's four buildings (representing approximately 300
guestrooms) closed. The Company currently expects $6.5 million of renovation disruption from the
project. The renovation disruption estimate is $1.0
million above the Company's estimate at the end of the first
fiscal quarter due to the hotel expecting to incur incremental
operating cost during the renovation which will include costs to
resolve guest satisfaction during the construction period and
additional energy costs.
Allerton Hotel Mortgage Loan Update
The Company holds the senior mortgage loan secured by the
Allerton Hotel, located in downtown Chicago,
Illinois. The loan matured in January
2010 and is in default. On May 5, 2011,
the borrower under the loan filed for bankruptcy protection in the
Northern District of Illinois. The senior mortgage loan held by the
Company is secured by substantially all of the assets of the borrower,
including, without limitation, the Allerton Hotel. The filing of the
bankruptcy case had the effect of, among other things, automatically
staying the foreclosure proceedings that the Company had previously
filed against the borrower. While the Company intends to continue to
vigorously pursue its rights in the bankruptcy case, it is too early in
the process to determine the likelihood of potential outcomes.
Due to the uncertainty of the timing and amount of cash
payments expected, the Company is not currently accruing any interest
income on the Allerton loan. However,
the Company includes all cash received from the borrower in its
calculations of Adjusted EBITDA and Adjusted FFO. As of June 17, 2011, the Company had received cash
interest payments from the borrower of $0.6
million. Subsequent to June 17, 2011,
the Company received cash interest payments of $0.5
million. The Company's 2011 Adjusted EBITDA and Adjusted FFO
guidance assumes $3.0 million of cash
interest payments received in 2011 on the Allerton
loan.
Balance Sheet
As of June 17, 2011, the
Company had $20.9 million of
unrestricted cash on hand and $1.0 billion
of debt outstanding, which consists of $921.1
million of fixed rate, property-specific mortgage debt with no
near-term maturities and $115 million of
outstanding borrowings on the Company's corporate credit facility.
Twelve of the Company's 25 hotels owned at the end of the second fiscal
quarter are unencumbered by mortgage debt.
The Company continues to maintain its straightforward capital
structure. The Company has no preferred equity outstanding and
continues to own 100% of its properties directly.
Outlook and Guidance
The Company is providing guidance, but does not undertake to
update it for any developments in its business. Achievement of the
anticipated results is subject to the risks disclosed in the Company's
filings with the Securities and Exchange Commission. The RevPAR
guidance assumes that all of the Company's 26 hotels were owned since January 1, 2010 but excludes Frenchman's Reef
for all of 2011 because it is partially closed for the renovation.
The Company is revising its full year 2011 guidance to
incorporate the acquisitions of the JW Marriott Denver, Lexington Hotel
New York and Courtyard Denver. In addition, the Company is currently
maintaining its expectation of receiving $3
million in cash interest payments from the Allerton Hotel
mortgage loan. The Company expects full year results as follows:
- RevPAR to increase 6 percent to 8 percent.
- Adjusted EBITDA of $172 million to
$177 million, which assumes $6.5 million
of renovation disruption from the Frenchman's Reef repositioning
project.
- Adjusted FFO of $111 million to
$116 million, which assumes income tax expense to range from $6 million to $7 million.
- Adjusted FFO per share of $0.66 to
$0.69 based on 167.5 million diluted weighted average shares.
Earnings Call
The Company will host a conference call to discuss its second
quarter results on Monday, July 25, 2011,
at 5:00 p.m. Eastern Time (ET). To
participate in the live call, investors are invited to dial
866-788-0542 (for domestic callers) or 857-350-1680 (for international
callers). The participant passcode is 74146995. A live webcast of the
call will be available via the investor relations section of
DiamondRock Hospitality Company's website at www.drhc.com. A replay
of the webcast will also be archived on the website for one year.
About the Company
DiamondRock Hospitality Company is a self-advised real estate
investment trust (REIT) that is an owner of premium hotel properties.
The Company owns 26 premium hotels with approximately 12,000 rooms and
holds the senior mortgage loan on another premium hotel. The Company's
hotels are generally operated under globally recognized brands such as
Hilton, Marriott, and Westin. For further information, please visit
DiamondRock Hospitality Company's website at www.drhc.com.
This press release contains forward-looking statements
within the meaning of federal securities laws and regulations. These
forward-looking statements are identified by their use of terms and
phrases such as "believe," "expect," "intend," "project," "forecast,"
"plan" and other similar terms and phrases, including references to
assumptions and forecasts of future results. Forward-looking statements
are not guarantees of future performance and involve known and unknown
risks, uncertainties and other factors which may cause the actual
results to differ materially from those anticipated at the time the
forward-looking statements are made. These risks include, but are not
limited to: national and local economic and business conditions,
including the potential for additional terrorist attacks, that will
affect occupancy rates at the Company's hotels and the demand for hotel
products and services; operating risks associated with the hotel
business; risks associated with the level of the Company's
indebtedness; relationships with property managers; the ability to
compete effectively in areas such as access, location, quality of
accommodations and room rate structures; changes in travel patterns,
taxes and government regulations which influence or determine wages,
prices, construction procedures and costs; risks associated with the
bankruptcy proceedings on the Allerton Hotel; risks associated with the
development of a hotel by a third-party developer; risks associated
with the ongoing renovation and repositioning of the Frenchman's Reef
& Morning Star Marriott Beach Resort and other risk factors
contained in the Company's filings with the Securities and Exchange
Commission. Although the Company believes the expectations reflected in
such forward-looking statements are based upon reasonable assumptions,
it can give no assurance that the expectations will be attained or that
any deviation will not be material. All information in this release is
as of the date of this release, and the Company undertakes no
obligation to update any forward-looking statement to conform the
statement to actual results or changes in the Company's expectations.
Reporting Periods for Statement of Operations
The results reported in the Company's consolidated statements
of operations are based on results of its hotels reported by hotel
managers. The Company's hotel managers use different reporting periods.
Marriott International, the manager of most of the Company's
properties, uses a fiscal year ending on the Friday closest to December 31 and reports 12 weeks of operations
for the first three quarters and 16 or 17 weeks for the fourth quarter
of the year for its domestic managed hotels. In contrast, Marriott
International for its non-domestic hotels (including Frenchman's Reef),
Davidson Hotel Company, manager of the Westin Atlanta North, Vail
Resorts, manager of the Vail Marriott, Hilton Hotels Corporation,
manager of the Conrad Chicago and the Hilton Minneapolis, Westin Hotel
Management, L.P., manager of the Westin Boston Waterfront, Alliance
Hospitality Management, manager of the Hilton Garden Inn Chelsea, Sage
Hospitality, manager of the JW Marriott Denver Cherry Creek and the
Courtyard Denver, and Highgate Hotels, manager of the Lexington Hotel,
report results on a monthly basis. Additionally, the Company, as a
REIT, is required by U.S. federal tax laws to report results on a
calendar year basis. As a result, the Company has adopted the reporting
periods used by Marriott International for its domestic hotels, except
that the fiscal year always ends on December 31
to comply with REIT rules. The first three fiscal quarters end on the
same day as Marriott International's fiscal quarters but the fourth
quarter ends on December 31 and full
year results, as reported in the statement of operations, always
include the same number of days as the calendar year.
Two consequences of the reporting cycle the Company has
adopted are: (1) quarterly start dates will usually differ between
years, except for the first quarter which always commences on January 1, and (2) the first and fourth
quarters of operations and year-to-date operations may not include the
same number of days as reflected in prior years.
While the reporting calendar the Company adopted is more
closely aligned with the reporting calendar used by the manager of most
of its properties, one final consequence of the calendar is the Company
is unable to report any results for Frenchman's Reef, Westin Atlanta
North, Vail Marriott, Conrad Chicago, Westin Boston Waterfront, Hilton
Minneapolis, Hilton Garden Inn Chelsea, JW Marriott Denver Cherry
Creek, Courtyard Denver or the Lexington Hotel for the month of
operations that ends after its fiscal quarter-end because none of Vail
Resorts, Davidson Hotel Company, Hilton Hotels Corporation, Westin
Hotel Management, L.P., Alliance Hospitality Management, Sage
Hospitality, Highgate Hotels and Marriott International (for
international hotels) make mid-month results available. As a result,
the quarterly results of operations include results from these hotels
as follows: first quarter (January and February), second quarter (March
to May), third quarter (June to August) and fourth quarter (September
to December). While this does not affect full-year results, it does
affect the reporting of quarterly results.
Ground Leases
Five of the Company's hotels are subject to ground leases:
Bethesda Marriott Suites, Courtyard Manhattan Fifth Avenue, Salt Lake
City Downtown Marriott, Westin Boston Waterfront and Hilton
Minneapolis. In addition, part of a parking structure at a sixth hotel
and the golf courses at two additional hotels are also subject to
ground leases. In accordance with U.S. GAAP, the Company records rent
expense on a straight-line basis for ground leases that provide minimal
rental payments that increase in pre-established amounts over the
remaining term of the ground lease. For the second quarter 2011,
contractual cash rent payable on the ground leases totaled $1.8 million and the Company recorded
approximately $3.5 million in ground
rent expense. The non-cash portion of ground rent expense recorded for
the second quarter 2011 was $1.7 million.
The Company's 2011 guidance assumes ground rent expense of
approximately $14 million, which
consists of approximately $7 million of
contractual ground rent and non-cash ground rent of approximately $7 million.
|
|
DIAMONDROCK
HOSPITALITY COMPANY
CONDENSED
CONSOLIDATED BALANCE
SHEETS
As of
June 17, 2011 and December 31, 2010
(in
thousands, except share amounts)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
June
17, 2011
|
|
December
31, 2010
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Property
and equipment, at cost
|
$
|
2,901,026
|
$
|
2,468,289
|
|
Less:
accumulated depreciation
|
|
(439,324)
|
|
(396,686)
|
|
|
|
|
|
|
|
|
|
2,461,702
|
|
2,071,603
|
|
|
|
|
|
|
|
Deferred
financing costs, net
|
|
6,935
|
|
5,492
|
|
Restricted
cash
|
|
75,812
|
|
51,936
|
|
Due
from hotel managers
|
|
60,340
|
|
50,715
|
|
Note
receivable
|
|
57,346
|
|
57,951
|
|
Favorable
lease assets, net
|
|
43,825
|
|
42,622
|
|
Prepaid
and other assets
|
|
75,232
|
|
50,089
|
|
Cash
and cash equivalents
|
|
20,918
|
|
84,201
|
|
|
|
|
|
|
|
Total
assets
|
$
|
2,802,110
|
$
|
2,414,609
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Mortgage
debt
|
$
|
921,094
|
$
|
780,880
|
|
Senior
unsecured credit facility
|
|
115,000
|
|
-
|
|
Total
debt
|
|
1,036,094
|
|
780,880
|
|
|
|
|
|
|
|
Deferred
income related to key money, net
|
|
20,564
|
|
19,199
|
|
Unfavorable
contract liabilities, net
|
|
82,923
|
|
83,613
|
|
Due to
hotel managers
|
|
37,408
|
|
36,168
|
|
Dividends
declared and unpaid
|
|
13,549
|
|
-
|
|
Accounts
payable and accrued expenses
|
|
87,827
|
|
81,232
|
|
|
|
|
|
|
|
Total
other liabilities
|
|
242,271
|
|
220,212
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
Preferred
stock, $0.01 par value; 10,000,000 shares authorized; no shares issued
and outstanding
|
|
-
|
|
-
|
|
Common
stock, $0.01 par value; 200,000,000 shares authorized; 167,385,657 and
154,570,543 shares issued and outstanding at June 17, 2011 and December
31, 2010, respectively
|
|
1,674
|
|
1,546
|
|
Additional
paid-in capital
|
|
1,706,887
|
|
1,558,047
|
|
Accumulated
deficit
|
|
(184,816)
|
|
(146,076)
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
1,523,745
|
|
1,413,517
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
2,802,110
|
$
|
2,414,609
|
|
|
|
|
|
|
|
|
DIAMONDROCK
HOSPITALITY COMPANY
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Fiscal Quarters Ended June 17, 2011 and
June 18, 2010 and
the Periods from January 1, 2011 to June 17, 2011
and January 1, 2010 to
June 18, 2010
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Quarter Ended June 17, 2011
|
Fiscal
Quarter Ended June 18, 2010
|
Period
from January 1, 2011 to June 17, 2011
|
Period
from January 1, 2010 to June 18, 2010
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Rooms
|
$
111,866
|
$
95,730
|
$
191,184
|
$
167,378
|
|
Food
and beverage
|
49,432
|
47,699
|
86,466
|
83,250
|
|
Other
|
8,207
|
7,696
|
14,122
|
13,324
|
|
|
|
|
|
|
|
Total
revenues
|
169,505
|
151,125
|
291,772
|
263,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Rooms
|
28,534
|
24,458
|
51,243
|
44,530
|
|
Food
and beverage
|
33,210
|
31,490
|
60,252
|
56,215
|
|
Management
fees
|
6,987
|
5,482
|
10,389
|
8,554
|
|
Other
hotel expenses
|
58,211
|
51,990
|
105,931
|
96,619
|
|
Depreciation
and amortization
|
21,682
|
19,074
|
43,034
|
37,981
|
|
Hotel
acquisition costs
|
1,904
|
337
|
2,159
|
337
|
|
Corporate
expenses
|
4,373
|
3,560
|
8,448
|
6,911
|
|
|
|
|
|
|
|
Total
operating expenses
|
154,901
|
136,391
|
281,456
|
251,147
|
|
|
|
|
|
|
|
Operating
income
|
14,604
|
14,734
|
10,316
|
12,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Expenses (Income):
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
(268)
|
(286)
|
(565)
|
(367)
|
|
Interest
expense
|
12,340
|
11,089
|
23,483
|
19,215
|
|
|
|
|
|
|
|
Total
other expenses
|
12,072
|
10,803
|
22,918
|
18,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
2,532
|
3,931
|
(12,602)
|
(6,043)
|
|
|
|
|
|
|
|
Income
tax (expense) benefit
|
(3,088)
|
(3,092)
|
1,003
|
(1,462)
|
|
|
|
|
|
|
|
Net
(loss) income
|
$ (556)
|
$ 839
|
$
(11,599)
|
$
(7,505)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted earnings (loss) per share
|
$ -
|
$ 0.01
|
$
(0.07)
|
$
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
The Company uses the following four non-GAAP financial
measures that it believes are useful to investors as key measures of
its operating performance: (1) EBITDA, (2) FFO, (3) Adjusted EBITDA and
(4) Adjusted FFO.
EBITDA represents net (loss) income excluding: (1) interest
expense; (2) provision for income taxes, including income taxes
applicable to sale of assets; and (3) depreciation and amortization.
The Company believes EBITDA is useful to an investor in evaluating its
operating performance because it helps investors evaluate and compare
the results of its operations from period to period by removing the
impact of the Company's capital structure (primarily interest expense)
and its asset base (primarily depreciation and amortization) from its
operating results. The Company also uses EBITDA as one measure in
determining the value of hotel acquisitions and dispositions.
|
|
|
Historical
(in 000s)
|
|
|
Fiscal
Quarter Ended
|
|
Period
From
|
|
|
June
17, 2011
|
|
June
18, 2010
|
|
January
1, 2011 to
January 17, 2011
|
|
January
1, 2010 to
January 18, 2010
|
|
Net
(loss) income
|
$ (556)
|
|
$ 839
|
|
$
(11,599)
|
|
$
(7,505)
|
|
Interest
expense
|
12,340
|
|
11,089
|
|
23,483
|
|
19,215
|
|
Income
tax expense (benefit)
|
3,088
|
|
3,092
|
|
(1,003)
|
|
1,462
|
|
Depreciation
and amortization
|
21,682
|
|
19,074
|
|
43,034
|
|
37,981
|
|
EBITDA
|
$
36,554
|
|
$
34,094
|
|
$
53,915
|
|
$
51,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year Forecast 2011 (in 000s)
|
|
|
Low End
|
|
High
End
|
|
Net
(loss) income
|
$
(1,164)
|
|
$ 4,836
|
|
Interest
expense
|
55,000
|
|
54,000
|
|
Income
tax expense
|
6,000
|
|
7,000
|
|
Depreciation
and amortization
|
101,000
|
|
100,000
|
|
EBITDA
|
$
160,836
|
|
$
165,836
|
|
|
|
|
|
|
|
The Company computes FFO in accordance with standards
established by NAREIT, which defines FFO as net (loss) income
determined in accordance with GAAP, excluding gains (losses) from sales
of property, plus depreciation and amortization. The Company believes
that the presentation of FFO provides useful information to investors
regarding its operating performance because it is a measure of the
Company's operations without regard to specified non-cash items, such
as real estate depreciation and amortization and gain or loss on sale
of assets. The Company also uses FFO as one measure in assessing its
results.
|
|
|
Historical
(in 000s)
|
|
|
Fiscal
Quarter Ended
|
|
Period
From
|
|
|
June
17, 2011
|
|
June
18, 2010
|
|
January
1, 2011
to January 17, 2011
|
|
January
1, 2010 to
January 18, 2010
|
|
Net
(loss) income
|
$ (556)
|
|
$ 839
|
|
$
(11,599)
|
|
$
(7,505)
|
|
Real
estate related depreciation amortization
|
21,682
|
|
19,074
|
|
43,034
|
|
37,981
|
|
FFO
|
21,126
|
|
19,913
|
|
31,435
|
|
30,476
|
|
FFO
per share (basic and diluted)
|
$ 0.13
|
|
$ 0.14
|
|
$ 0.19
|
|
$ 0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year Forecast 2011 (in 000s)
|
|
|
Low End
|
|
High
End
|
|
Net
income
|
$
(1,164)
|
|
$ 4,836
|
|
Depreciation
and amortization
|
101,000
|
|
100,000
|
|
FFO
|
$
99,836
|
|
$
104,836
|
|
FFO
per share (basic and diluted)
|
$ 0.60
|
|
$ 0.63
|
|
|
|
|
|
|
|
The Company also evaluates its performance by reviewing
Adjusted EBITDA and Adjusted FFO because it believes that the exclusion
of certain additional recurring and non-recurring items described below
provides useful supplemental information regarding the Company's
ongoing operating performance and that the presentation of Adjusted
EBITDA and Adjusted FFO, when combined with the primary GAAP
presentation of net income (loss), is beneficial to a complete
understanding of the Company's operating performance. The Company
adjusts EBITDA and FFO for the following items, which may occur in any
period, and refers to these measures as Adjusted EBITDA and Adjusted
FFO:
- Non-Cash Ground Rent: The Company excludes the non-cash
expense incurred from straight lining the rent from its ground lease
obligations and the non-cash amortization of its favorable lease assets.
- The impact of the non-cash amortization of the unfavorable
contract liabilities recorded in conjunction with the Company's
acquisitions of the Bethesda Marriott Suites, the Chicago Marriott
Downtown, the Renaissance Charleston and the Radisson Lexington. The
amortization of the unfavorable contract liabilities does not reflect
the underlying performance of the Company.
- Cumulative effect of a change in accounting principle:
Infrequently, the Financial Accounting Standards Board (FASB)
promulgates new accounting standards that require the consolidated
statement of operations to reflect the cumulative effect of a change in
accounting principle. The Company excludes these one-time adjustments
because they do not reflect its actual performance for that period.
- Gains from Early Extinguishment of Debt: The Company
excludes the effect of gains recorded on the early extinguishment of
debt because it believes that including them in EBITDA and FFO is not
consistent with reflecting the ongoing performance of its hotels.
- Impairment Losses: The Company excludes the effect of
impairment losses recorded because it believes that including them in
EBITDA and FFO is not consistent with reflecting the ongoing
performance of its assets. In addition, the Company believes that
impairment charges are similar to depreciation expense, which is also
excluded from EBITDA and FFO.
- Gains or Losses on Dispositions: The Company excludes the
effect of gains or losses on dispositions from EBITDA because it
believes that including them is not consistent with reflecting the
ongoing performance of its remaining assets. In addition, gains and
losses on dispositions are excluded from the calculation of FFO in
accordance with NAREIT standards.
- Acquisition Costs: The Company excludes acquisition
transaction costs expensed during the period because it believes that
including these costs in EBITDA and FFO is not consistent with the
underlying performance of the Company.
- Mortgage Loan Interest Payments Received: The Company
includes cash payments received on its senior loan secured by the
Allerton Hotel in Adjusted EBITDA and Adjusted FFO. GAAP requires the
Company to record the cash received from the borrower as a reduction of
its basis in the mortgage loan due to the uncertainty over the timing
and amount of cash payments on the loan. The Company believes that
these cash payments reflect its return on its investment in the
mortgage loan and should be included in Adjusted EBITDA and Adjusted
FFO as they relate to the operating performance of the Company.
- Other Non-Cash and /or Unusual Items: The Company excludes
the effect of certain non-cash and/or unusual items because it believes
that including these costs in EBITDA and FFO is not consistent with the
underlying performance of the Company. During the second fiscal quarter
ended June 17, 2011 the Company accrued
for the net repayment of key money to Hilton in conjunction with
entering into a termination agreement for the Conrad Chicago. The
Company excluded this unusual cost from EBITDA and FFO because it
believes that including it would not be consistent with reflecting the
ongoing performance of its asset.
|
|
|
Historical
(in 000s)
|
|
|
Fiscal
Quarter Ended
|
|
Period
From
|
|
|
June
17, 2011
|
|
June
18, 2010
|
|
January
1, 2011 to
June 17, 2011
|
|
January
1, 2010 to
June 18, 2010
|
|
EBITDA
|
$
36,554
|
|
$
34,094
|
|
$
53,915
|
|
$
51,153
|
|
Non-cash
ground rent
|
1,655
|
|
1,777
|
|
3,221
|
|
3,566
|
|
Non-cash
amortization of unfavorable contract liabilities
|
(426)
|
|
(397)
|
|
(852)
|
|
(794)
|
|
Accrual
for net key money repayment
|
864
|
|
-
|
|
864
|
|
-
|
|
Mortgage
loan cash payments
|
505
|
|
-
|
|
605
|
|
-
|
|
Acquisition
costs
|
1,904
|
|
337
|
|
2,159
|
|
337
|
|
Adjusted
EBITDA
|
$
41,056
|
|
$
35,811
|
|
$
59,912
|
|
$
54,262
|
|
|
|
|
|
|
|
|
|
|
Forecast
Full Year 2011 (in 000s)
|
|
|
Low End
|
|
High
End
|
|
EBITDA
|
$
160,836
|
|
$
165,836
|
|
Non-cash
ground rent
|
6,600
|
|
6,600
|
|
Non-cash
amortization of unfavorable contract liabilities
|
(1,800)
|
|
(1,800)
|
|
Accrual
for net key money repayment
|
864
|
|
864
|
|
Mortgage
loan cash payments
|
3,000
|
|
3,000
|
|
Acquisition
costs
|
2,500
|
|
2,500
|
|
Adjusted
EBITDA
|
$
172,000
|
|
$
177,000
|
|
|
|
|
|
|
|
|
|
|
Historical
(in 000s)
|
|
|
Fiscal
Quarter Ended
|
|
Period
From
|
|
|
June
17, 2011
|
|
June
18, 2010
|
|
January
1, 2011 to
June 17, 2011
|
|
January
1, 2010 to
June 18, 2010
|
|
FFO
|
$
21,126
|
|
$
19,913
|
|
$
31,435
|
|
$
30,476
|
|
Non-cash
ground rent
|
1,655
|
|
1,777
|
|
3,221
|
|
3,566
|
|
Non-cash
amortization of unfavorable contract liabilities
|
(426)
|
|
(397)
|
|
(852)
|
|
(794)
|
|
Accrual
for net key money repayment
|
864
|
|
-
|
|
864
|
|
-
|
|
Mortgage
loan cash payments
|
505
|
|
-
|
|
605
|
|
-
|
|
Acquisition
costs
|
1,904
|
|
337
|
|
2,159
|
|
337
|
|
Adjusted
FFO
|
$
25,628
|
|
$
21,630
|
|
$
37,432
|
|
$
33,585
|
|
Adjusted
FFO per share (basic and diluted)
|
$ 0.15
|
|
$ 0.16
|
|
$ 0.23
|
|
$ 0.25
|
|
|
|
|
|
|
|
|
|
|
Forecast
Full Year 2011 (in 000s)
|
|
|
Low End
|
|
High
End
|
|
FFO
|
$
99,836
|
|
$
104,836
|
|
Non-cash
ground rent
|
6,600
|
|
6,600
|
|
Non-cash
amortization of unfavorable contract liabilities
|
(1,800)
|
|
(1,800)
|
|
Accrual
for net key money repayment
|
864
|
|
864
|
|
Acquisition
costs
|
3,000
|
|
3,000
|
|
Mortgage
loan cash payments
|
2,500
|
|
2,500
|
|
Adjusted
FFO
|
$
111,000
|
|
$
116,000
|
|
Adjusted
FFO per share (diluted)
|
$ 0.66
|
|
$ 0.69
|
|
|
|
|
|
|
|
Reconciliation of Estimated Net Income to Estimated EBITDA
for the Courtyard Denver Downtown (000s)
|
|
|
|
2012
Full
Year
|
|
|
|
|
|
Estimated
Net Income (Loss)
|
|
$1,400
|
|
Income
Tax Expense
|
|
100
|
|
Depreciation
Expense
|
|
1,300
|
|
Interest
Expense
|
|
1,000
|
|
Estimated
EBITDA
|
|
$3,800
|
|
|
|
|
|
|
Quarterly Pro Forma Financial Information
The following table is presented to provide investors with
selected historical quarterly operating information to include the
operating results for all of the Company's 26 hotels as if they were
owned since January 1, 2010 but exclude
Frenchman's Reef due to the impact of its extensive renovation.
|
|
|
Quarter
2, 2010
|
|
Quarter
3, 2010
|
|
Quarter
4, 2010
|
|
Full
Year 2010
|
|
Quarter
1, 2011
|
|
RevPAR
|
$
116.71
|
|
$
117.63
|
|
$
118.76
|
|
$
112.11
|
|
$ 94.36
|
|
Revenues
(in thousands)
|
$
171,623
|
|
$
166,670
|
|
$
227,497
|
|
$
685,324
|
|
$
121,574
|
|
Hotel
Adjusted EBITDA (in thousands)
|
$
46,378
|
|
$
44,326
|
|
$
66,712
|
|
$
177,626
|
|
$
20,960
|
|
% of
Full Year
|
26.1%
|
|
25.0%
|
|
37.6%
|
|
100.0%
|
|
10.8%
|
|
Hotel
Adjusted EBITDA Margin
|
27.02%
|
|
26.60%
|
|
29.32%
|
|
25.92%
|
|
17.24%
|
|
Available
Rooms
|
982,360
|
|
982,360
|
|
1,307,402
|
|
4,133,444
|
|
854,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain Definitions
In this release, when we discuss "Hotel Adjusted EBITDA," we
exclude from Hotel EBITDA the non-cash expense incurred by the hotels
due to the straight lining of the rent from our ground lease
obligations, the non-cash amortization of our favorable lease assets,
the non-cash amortization of the unfavorable contract liabilities
recorded in conjunction with the acquisitions of the Bethesda Marriott
Suites, the Chicago Marriott Downtown, the Renaissance Charleston and
the Radisson Lexington. Hotel EBITDA represents hotel net income
excluding: (1) interest expense; (2) income taxes; and (3) depreciation
and amortization. Hotel Adjusted EBITDA margins are calculated as Hotel
Adjusted EBITDA divided by total hotel revenues. Net debt is calculated
as total debt outstanding less unrestricted cash.
DIAMONDROCK
HOSPITALITY COMPANY
PRO
FORMA HOTEL OPERATING DATA (1)
Schedule of Property Level Results
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Quarter Ended
June 17, 2011
|
Fiscal
Quarter Ended
June 18, 2010
|
%
Change
|
Period
from
January 1, 2011 to June 17, 2011
|
Period
from
January 1, 2010 to June 18, 2010
|
%
Change
|
|
Revenues:
|
|
|
|
|
|
|
|
Rooms
|
$
119,841
|
$
112,649
|
6.4%
|
$
199,419
|
$
189,564
|
5.2%
|
|
Food
and beverage
|
47,459
|
48,525
|
(2.2)%
|
82,454
|
84,168
|
(2.0)%
|
|
Other
|
8,549
|
8,303
|
3.0%
|
14,453
|
14,151
|
2.1%
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
175,849
|
169,477
|
3.8%
|
296,326
|
287,883
|
2.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
Rooms
|
31,291
|
29,493
|
6.1%
|
55,437
|
52,637
|
5.3%
|
|
Food
and beverage
|
31,344
|
31,420
|
(0.2)%
|
56,758
|
56,446
|
0.6%
|
|
Other
direct departmental
|
4,672
|
4,669
|
0.1%
|
8,491
|
8,432
|
0.7%
|
|
General
and administrative
|
14,293
|
14,266
|
0.2%
|
26,270
|
26,077
|
0.7%
|
|
Utilities
|
5,515
|
5,364
|
2.8%
|
10,527
|
10,419
|
1.0%
|
|
Repairs
and maintenance
|
7,653
|
7,201
|
6.3%
|
14,163
|
13,530
|
4.7%
|
|
Sales
and marketing
|
13,583
|
12,862
|
5.6%
|
23,646
|
22,080
|
7.1%
|
|
Base
management fees
|
4,720
|
4,515
|
4.5%
|
7,853
|
7,581
|
3.6%
|
|
Incentive
management fees
|
1,508
|
1,397
|
7.9%
|
1,680
|
1,506
|
11.6%
|
|
Property
taxes
|
7,710
|
8,348
|
(7.6)%
|
13,762
|
15,791
|
(12.8)%
|
|
Ground
rent
|
3,452
|
3,234
|
6.7%
|
6,356
|
6,132
|
3.7%
|
|
Other
fixed expenses
|
2,330
|
2,320
|
0.4%
|
4,128
|
4,250
|
(2.9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses
|
128,071
|
125,089
|
2.4%
|
229,071
|
224,881
|
1.9%
|
|
|
|
|
|
|
|
|
|
Hotel
EBITDA
|
$
47,778
|
$
44,388
|
7.6%
|
$
67,255
|
$
63,002
|
6.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
ground rent
|
1,654
|
1,514
|
9.2%
|
3,220
|
3,128
|
2.9%
|
|
Non-cash
amortization of unfavorable contract liabilities
|
(426)
|
(426)
|
0.0%
|
(852)
|
(852)
|
0.0%
|
|
|
|
|
|
|
|
|
|
Hotel
Adjusted EBITDA
|
$
49,006
|
$
45,476
|
7.8%
|
$
69,623
|
$
65,278
|
6.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The pro forma operating data includes the operating
results for the Company's 25 hotels owned as of June
17, 2011 as if they were owned since January
1, 2010 but excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort from all periods presented due to the extensive
ongoing renovation.
|
|
Market
Capitalization
as of June 17, 2011
(in thousands, except per share data)
|
|
|
|
|
|
Enterprise
Value
|
|
|
|
|
|
|
|
Common
equity capitalization (at June 17, 2011 closing price of $10.01/share)
|
|
$
1,688,066
|
|
Consolidated
debt
|
|
1,036,094
|
|
Cash
and cash equivalents
|
|
(20,918)
|
|
|
|
|
|
Total
enterprise value
|
|
$
2,703,242
|
|
|
|
|
|
|
|
|
|
Share
Reconciliation
|
|
|
|
|
|
|
|
Common
shares outstanding
|
|
167,386
|
|
|
|
|
|
Unvested
restricted stock held by management and employees
|
|
1,219
|
|
Share
grants under deferred compensation plan held by directors
|
33
|
|
|
|
|
|
Combined
shares outstanding
|
|
168,638
|
|
|
|
|
|
|
|
|
Debt
Summary as of June 17, 2011
|
|
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Property
|
|
Interest
Rate
|
|
Term
|
|
Outstanding
Principal
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
|
Courtyard
Manhattan / Midtown East
|
|
8.810%
|
|
Fixed
|
|
$
42,476
|
|
October
2014
|
|
Salt
Lake City Marriott Downtown
|
|
5.500%
|
|
Fixed
|
|
30,962
|
|
January
2015
|
|
Courtyard
Manhattan / Fifth Avenue
|
|
6.480%
|
|
Fixed
|
|
51,000
|
|
June
2016
|
|
Los
Angeles Airport Marriott
|
|
5.300%
|
|
Fixed
|
|
82,600
|
|
July
2015
|
|
Marriott
Frenchman's Reef
|
5.440%
|
|
Fixed
|
|
60,103
|
|
August
2015
|
|
Renaissance
Worthington
|
|
5.400%
|
|
Fixed
|
|
55,942
|
|
July
2015
|
|
Orlando
Airport Marriott
|
|
5.680%
|
|
Fixed
|
|
58,694
|
|
January
2016
|
|
Chicago
Marriott Downtown
|
|
5.975%
|
|
Fixed
|
|
215,684
|
|
April
2016
|
|
Austin
Renaissance Hotel
|
|
5.507%
|
|
Fixed
|
|
83,000
|
|
December
2016
|
|
Waverly
Renaissance Hotel
|
|
5.503%
|
|
Fixed
|
|
97,000
|
|
December
2016
|
|
Hilton
Minneapolis
|
|
5.464%
|
|
Fixed
|
|
99,859
|
|
May
2021
|
|
JW
Marriott Denver Cherry Creek
|
|
6.470%
|
|
Fixed
|
|
42,321
|
|
July
2015
|
|
Debt
premium (1)
|
|
|
|
|
|
1,453
|
|
|
|
Total
mortgage debt
|
|
|
|
|
|
921,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior
Unsecured Credit Facility
|
|
LIBOR
+ 2.25
|
|
Variable
|
|
115,000
|
|
August
2014
|
|
Total
Debt
|
|
|
|
$
1,036,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The debt premium is a purchase accounting adjustment to
record the debt on the JW Marriott Denver Cherry Creek at its
acquisition date fair value. The premium will be amortized over the
life of the loan into interest expense.
|
|
|
|
Pro Forma Operating Statistics - Second
Quarter (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
Occupancy
|
|
RevPAR
|
|
Hotel
Adjusted EBITDA Margin
|
|
|
|
2Q 2011
|
2Q
2010
|
B/(W)
|
|
2Q 2011
|
2Q
2010
|
B/(W)
|
|
2Q 2011
|
2Q
2010
|
B/(W)
|
|
2Q 2011
|
2Q
2010
|
B/(W)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta
Alpharetta
|
|
$
131.89
|
$
118.12
|
11.7%
|
|
69.7%
|
64.9%
|
4.8%
|
|
$ 91.95
|
$ 76.61
|
20.0%
|
|
29.41%
|
22.96%
|
645 bps
|
|
Westin
Atlanta North (2)
|
|
$
107.68
|
$
102.68
|
4.9%
|
|
73.8%
|
73.5%
|
0.3%
|
|
$ 79.51
|
$ 75.47
|
5.4%
|
|
16.66%
|
17.49%
|
-83 bps
|
|
Atlanta
Waverly
|
|
$
127.94
|
$
128.22
|
(0.2%)
|
|
66.4%
|
60.6%
|
5.8%
|
|
$ 84.96
|
$ 77.70
|
9.3%
|
|
22.76%
|
16.76%
|
600 bps
|
|
Renaissance
Austin
|
|
$
140.12
|
$
142.09
|
(1.4%)
|
|
62.0%
|
63.9%
|
(1.9%)
|
|
$ 86.93
|
$ 90.82
|
(4.3%)
|
|
25.36%
|
31.92%
|
-656
bps
|
|
Bethesda
Marriott Suites
|
|
$
175.36
|
$
168.63
|
4.0%
|
|
78.3%
|
76.8%
|
1.5%
|
|
$
137.38
|
$
129.43
|
6.1%
|
|
35.00%
|
27.99%
|
701 bps
|
|
Boston
Westin (2)
|
|
$
196.99
|
$
202.26
|
(2.6%)
|
|
75.9%
|
72.2%
|
3.7%
|
|
$
149.59
|
$
145.95
|
2.5%
|
|
28.87%
|
29.59%
|
-72 bps
|
|
Renaissance
Charleston
|
|
$
190.81
|
$
171.06
|
11.5%
|
|
92.7%
|
91.3%
|
1.4%
|
|
$
176.81
|
$
156.10
|
13.3%
|
|
42.12%
|
41.90%
|
22 bps
|
|
Hilton
Garden Inn Chelsea (2)
|
|
$
208.56
|
$
188.76
|
10.5%
|
|
94.3%
|
91.6%
|
2.7%
|
|
$
196.64
|
$
172.99
|
13.7%
|
|
47.50%
|
43.62%
|
388 bps
|
|
Chicago
Marriott
|
|
$
212.30
|
$
197.80
|
7.3%
|
|
74.8%
|
78.5%
|
(3.7%)
|
|
$
158.89
|
$
155.31
|
2.3%
|
|
27.58%
|
26.59%
|
99 bps
|
|
Chicago
Conrad (2)
|
|
$
183.19
|
$
164.48
|
11.4%
|
|
90.4%
|
83.0%
|
7.4%
|
|
$
165.68
|
$
136.55
|
21.3%
|
|
29.32%
|
22.78%
|
654 bps
|
|
Courtyard
Fifth Avenue
|
|
$
273.59
|
$
254.26
|
7.6%
|
|
88.7%
|
91.3%
|
(2.6%)
|
|
$
242.65
|
$
232.11
|
4.5%
|
|
35.00%
|
33.63%
|
137 bps
|
|
Courtyard
Midtown East
|
|
$
274.79
|
$
239.91
|
14.5%
|
|
86.5%
|
92.0%
|
(5.5%)
|
|
$
237.81
|
$
220.72
|
7.7%
|
|
40.67%
|
37.63%
|
304 bps
|
|
Frenchman's
Reef (2)
|
|
$
236.65
|
$
251.22
|
(5.8%)
|
|
85.1%
|
85.6%
|
(0.5%)
|
|
$
201.37
|
$
215.08
|
(6.4%)
|
|
12.57%
|
31.13%
|
-1856
bps
|
|
Griffin
Gate Marriott
|
|
$
137.69
|
$
133.75
|
2.9%
|
|
70.7%
|
70.6%
|
0.1%
|
|
$ 97.29
|
$ 94.45
|
3.0%
|
|
31.76%
|
28.80%
|
296 bps
|
|
JW
Marriott Denver Cherry Creek (2)
|
|
$
227.82
|
$
213.66
|
6.6%
|
|
71.4%
|
71.4%
|
0.0%
|
|
$
162.77
|
$
152.60
|
6.7%
|
|
24.76%
|
24.98%
|
-22 bps
|
|
Los
Angeles Airport
|
|
$
102.00
|
$
100.48
|
1.5%
|
|
84.6%
|
79.1%
|
5.5%
|
|
$ 86.34
|
$ 79.48
|
8.6%
|
|
18.66%
|
13.18%
|
548 bps
|
|
Hilton
Minneapolis (2)
|
|
$
139.44
|
$
133.10
|
4.8%
|
|
73.3%
|
73.1%
|
0.2%
|
|
$
102.28
|
$ 97.34
|
5.1%
|
|
29.44%
|
29.56%
|
-12 bps
|
|
Oak
Brook Hills
|
|
$
114.85
|
$
106.17
|
8.2%
|
|
62.1%
|
59.9%
|
2.2%
|
|
$ 71.32
|
$ 63.58
|
12.2%
|
|
18.22%
|
16.06%
|
216 bps
|
|
Orlando
Airport Marriott
|
|
$ 99.93
|
$ 97.14
|
2.9%
|
|
73.6%
|
69.0%
|
4.6%
|
|
$ 73.50
|
$ 66.99
|
9.7%
|
|
17.80%
|
17.72%
|
8 bps
|
|
Salt
Lake City Marriott
|
|
$
125.83
|
$
130.64
|
(3.7%)
|
|
63.9%
|
54.8%
|
9.1%
|
|
$ 80.47
|
$ 71.57
|
12.4%
|
|
27.65%
|
26.52%
|
113 bps
|
|
The
Lodge at Sonoma
|
|
$
205.20
|
$
192.05
|
6.8%
|
|
76.5%
|
71.2%
|
5.3%
|
|
$
157.07
|
$
136.80
|
14.8%
|
|
18.02%
|
14.27%
|
375 bps
|
|
Torrance
Marriott South Bay
|
|
$
105.69
|
$
101.44
|
4.2%
|
|
79.0%
|
83.4%
|
(4.4%)
|
|
$ 83.46
|
$ 84.65
|
(1.4%)
|
|
25.18%
|
21.36%
|
382 bps
|
|
Vail
Marriott (2)
|
|
$
245.67
|
$
223.84
|
9.8%
|
|
51.4%
|
55.4%
|
(4.0%)
|
|
$
126.17
|
$
124.04
|
1.7%
|
|
21.48%
|
25.23%
|
-375
bps
|
|
Radisson
Lexington Hotel New York (2)
|
|
$
196.69
|
$
183.43
|
7.2%
|
|
96.9%
|
94.9%
|
2.0%
|
|
$
190.65
|
$
174.16
|
9.5%
|
|
36.58%
|
35.34%
|
124 bps
|
|
Renaissance
Worthington
|
|
$
160.33
|
$
164.74
|
(2.7%)
|
|
69.4%
|
67.3%
|
2.1%
|
|
$
111.26
|
$
110.87
|
0.4%
|
|
28.65%
|
34.49%
|
-584
bps
|
|
Total/Weighted
Average
|
|
$
166.60
|
$
161.84
|
2.9%
|
|
76.0%
|
74.7%
|
1.3%
|
|
$
126.70
|
$
120.89
|
4.8%
|
|
26.99%
|
27.20%
|
-21 bps
|
|
Comparable
Total/Weighted Avg. (3)
|
|
$
163.78
|
$
157.14
|
4.2%
|
|
75.7%
|
74.2%
|
1.5%
|
|
$
124.03
|
$
116.60
|
6.4%
|
|
27.87%
|
26.83%
|
104 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The pro forma operating data includes the operating
results for the Company's 25 hotels owned as of June
17, 2011 as if they were owned since January
1, 2010.
(2) The hotel reports results on a monthly basis. The data
presented is based upon the Company's reporting calendar for the second
quarter and includes the months of March, April, and May.
(3) The comparable total excludes the Frenchman's Reef &
Morning Star Marriott Beach Resort from all periods presented due to
the extensive ongoing renovation.
|
|
Pro
Forma Operating Statistics - Year to Date (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
Occupancy
|
|
RevPAR
|
|
Hotel
Adjusted EBITDA Margin
|
|
|
|
YTD
2011
|
YTD
2010
|
B/(W)
|
|
YTD
2011
|
YTD
2010
|
B/(W)
|
|
YTD
2011
|
YTD
2010
|
B/(W)
|
|
YTD
2011
|
YTD
2010
|
B/(W)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta
Alpharetta
|
|
$
134.19
|
$
119.44
|
12.3%
|
|
68.4%
|
66.8%
|
1.6%
|
|
$ 91.77
|
$ 79.75
|
15.1%
|
|
31.50%
|
25.53%
|
597 bps
|
|
Westin
Atlanta North (2)
|
|
$
108.56
|
$
102.42
|
6.0%
|
|
70.0%
|
71.1%
|
(1.1%)
|
|
$ 75.95
|
$ 72.79
|
4.3%
|
|
15.49%
|
15.94%
|
-45 bps
|
|
Atlanta
Waverly
|
|
$
130.69
|
$
129.43
|
1.0%
|
|
67.0%
|
65.2%
|
1.8%
|
|
$ 87.55
|
$ 84.36
|
3.8%
|
|
23.36%
|
21.33%
|
203 bps
|
|
Renaissance
Austin
|
|
$
144.45
|
$
143.70
|
0.5%
|
|
66.7%
|
63.8%
|
2.9%
|
|
$ 96.39
|
$ 91.72
|
5.1%
|
|
30.92%
|
31.22%
|
-30 bps
|
|
Bethesda
Marriott Suites
|
|
$
175.60
|
$
166.99
|
5.2%
|
|
66.5%
|
66.9%
|
(0.4%)
|
|
$
116.80
|
$
111.80
|
4.5%
|
|
29.05%
|
25.38%
|
367 bps
|
|
Boston
Westin (2)
|
|
$
185.47
|
$
187.61
|
(1.1%)
|
|
64.7%
|
63.2%
|
1.5%
|
|
$
120.00
|
$
118.63
|
1.2%
|
|
19.03%
|
22.42%
|
-339
bps
|
|
Renaissance
Charleston
|
|
$
176.19
|
$
158.79
|
11.0%
|
|
84.1%
|
82.3%
|
1.8%
|
|
$
148.26
|
$
130.76
|
13.4%
|
|
35.45%
|
34.60%
|
85 bps
|
|
Hilton
Garden Inn Chelsea (2)
|
|
$
187.66
|
$
174.35
|
7.6%
|
|
90.1%
|
87.8%
|
2.3%
|
|
$
169.09
|
$
153.15
|
10.4%
|
|
40.97%
|
38.29%
|
268 bps
|
|
Chicago
Marriott
|
|
$
189.57
|
$
177.18
|
7.0%
|
|
62.9%
|
65.2%
|
(2.3%)
|
|
$
119.19
|
$
115.53
|
3.2%
|
|
17.75%
|
15.54%
|
221 bps
|
|
Chicago
Conrad (2)
|
|
$
170.74
|
$
158.74
|
7.6%
|
|
78.8%
|
70.6%
|
8.2%
|
|
$
134.60
|
$
112.12
|
20.0%
|
|
18.55%
|
11.84%
|
671 bps
|
|
Courtyard
Fifth Avenue
|
|
$
243.45
|
$
230.28
|
5.7%
|
|
83.7%
|
86.8%
|
(3.1%)
|
|
$
203.69
|
$
199.92
|
1.9%
|
|
24.47%
|
24.59%
|
-12 bps
|
|
Courtyard
Midtown East
|
|
$
241.91
|
$
214.31
|
12.9%
|
|
80.5%
|
84.6%
|
(4.1%)
|
|
$
194.68
|
$
181.35
|
7.4%
|
|
29.67%
|
28.08%
|
159 bps
|
|
Frenchman's
Reef (2)
|
|
$
253.11
|
$
267.55
|
(5.4%)
|
|
82.1%
|
84.4%
|
(2.3%)
|
|
$
207.72
|
$
225.70
|
(8.0%)
|
|
20.04%
|
34.32%
|
-1428
bps
|
|
Griffin
Gate Marriott
|
|
$
128.31
|
$
122.07
|
5.1%
|
|
57.4%
|
60.0%
|
(2.6%)
|
|
$ 73.60
|
$ 73.20
|
0.5%
|
|
21.62%
|
18.83%
|
279 bps
|
|
JW
Marriott Denver Cherry Creek (2)
|
|
$
224.86
|
$
207.38
|
8.4%
|
|
67.8%
|
70.7%
|
(2.9%)
|
|
$
152.39
|
$
146.63
|
3.9%
|
|
22.51%
|
22.84%
|
-33 bps
|
|
Los
Angeles Airport
|
|
$
105.19
|
$
103.54
|
1.6%
|
|
84.0%
|
81.0%
|
3.0%
|
|
$ 88.36
|
$ 83.89
|
5.3%
|
|
18.48%
|
16.55%
|
193 bps
|
|
Hilton
Minneapolis (2)
|
|
$
130.59
|
$
123.29
|
5.9%
|
|
68.1%
|
68.4%
|
(0.3%)
|
|
$ 88.97
|
$ 84.29
|
5.6%
|
|
24.83%
|
23.68%
|
115 bps
|
|
Oak
Brook Hills
|
|
$
111.74
|
$
105.28
|
6.1%
|
|
49.4%
|
48.2%
|
1.2%
|
|
$ 55.18
|
$ 50.74
|
8.8%
|
|
3.08%
|
4.98%
|
-190
bps
|
|
Orlando
Airport Marriott
|
|
$
104.61
|
$
102.29
|
2.3%
|
|
81.5%
|
74.8%
|
6.7%
|
|
$ 85.23
|
$ 76.51
|
11.4%
|
|
26.98%
|
23.37%
|
361 bps
|
|
Salt
Lake City Marriott
|
|
$
126.18
|
$
134.25
|
(6.0%)
|
|
60.8%
|
54.1%
|
6.7%
|
|
$ 76.75
|
$ 72.68
|
5.6%
|
|
25.50%
|
28.01%
|
-251
bps
|
|
The
Lodge at Sonoma
|
|
$
189.95
|
$
176.23
|
7.8%
|
|
64.7%
|
59.2%
|
5.5%
|
|
$
122.93
|
$
104.39
|
17.8%
|
|
5.93%
|
3.87%
|
206 bps
|
|
Torrance
Marriott South Bay
|
|
$
105.87
|
$
100.32
|
5.5%
|
|
78.4%
|
82.5%
|
(4.1%)
|
|
$ 83.01
|
$ 82.81
|
0.2%
|
|
23.11%
|
19.87%
|
324 bps
|
|
Vail
Marriott (2)
|
|
$
278.73
|
$
262.31
|
6.3%
|
|
62.7%
|
65.8%
|
(3.1%)
|
|
$
174.76
|
$
172.64
|
1.2%
|
|
34.19%
|
36.86%
|
-267
bps
|
|
Radisson
Lexington Hotel New York (2)
|
|
$
170.71
|
$
161.79
|
5.5%
|
|
94.0%
|
92.6%
|
1.4%
|
|
$
160.45
|
$
149.86
|
7.1%
|
|
27.97%
|
27.10%
|
87 bps
|
|
Renaissance
Worthington
|
|
$
166.72
|
$
159.72
|
4.4%
|
|
71.8%
|
71.8%
|
0.0%
|
|
$
119.78
|
$
114.65
|
4.5%
|
|
34.51%
|
34.33%
|
18 bps
|
|
Total/Weighted
Average
|
|
$
158.35
|
$
153.51
|
3.2%
|
|
71.7%
|
71.0%
|
0.7%
|
|
$
113.46
|
$
108.97
|
4.1%
|
|
23.27%
|
23.65%
|
-38 bps
|
|
Comparable
Total/Weighted Avg. (3)
|
|
$
154.56
|
$
148.09
|
4.4%
|
|
71.3%
|
70.5%
|
0.8%
|
|
$
110.19
|
$
104.33
|
5.6%
|
|
23.50%
|
22.68%
|
82 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The pro forma operating data includes the operating
results for the Company's 25 hotels owned as of June
17, 2011 as if they were owned since January
1, 2010
(2) The hotel reports results on a monthly basis. The data
presented is based upon the Company's reporting calendar and includes
the months of January through May.
(3) The comparable total excludes the Frenchman's Reef &
Morning Star Marriott Beach Resort from all periods presented due to
the extensive ongoing renovation.
|
|
Pro
Forma Hotel Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter 2011 (1)
|
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
|
|
|
Total
Revenues
|
|
Net
Income / (Loss)
|
Depreciation
|
Interest
Expense
|
Non-Cash
Adjustments (2)
|
Hotel
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta
Alpharetta
|
|
$ 3,570
|
|
$ 762
|
$ 288
|
$ -
|
$ -
|
$ 1,050
|
|
Westin
Atlanta North (3)
|
|
$ 4,220
|
|
$ 288
|
$ 415
|
$ -
|
$ -
|
$ 703
|
|
Atlanta
Waverly
|
|
$ 6,581
|
|
$ (833)
|
$ 1,080
|
$ 1,251
|
$ -
|
$ 1,498
|
|
Renaissance
Austin
|
|
$ 6,314
|
|
$ (426)
|
$ 952
|
$ 1,075
|
$ -
|
$ 1,601
|
|
Bethesda
Marriott Suites
|
|
$ 4,271
|
|
$ (434)
|
$ 483
|
$ -
|
$ 1,446
|
$ 1,495
|
|
Boston
Westin (3)
|
|
$
18,731
|
|
$ 2,428
|
$ 2,863
|
$ -
|
$ 117
|
$ 5,408
|
|
Renaissance
Charleston
|
|
$ 3,001
|
|
$ 961
|
$ 332
|
$ -
|
$ (29)
|
$ 1,264
|
|
Hilton
Garden Inn Chelsea (3)
|
|
$ 3,158
|
|
$ 1,076
|
$ 424
|
$ -
|
$ -
|
$ 1,500
|
|
Chicago
Marriott
|
|
$
23,699
|
|
$ 893
|
$ 2,949
|
$ 3,059
|
$ (365)
|
$ 6,536
|
|
Chicago
Conrad (3) (5)
|
|
$ 6,133
|
|
$ 662
|
$ 1,136
|
$ -
|
$ -
|
$ 1,798
|
|
Courtyard
Fifth Avenue
|
|
$ 3,863
|
|
$ 67
|
$ 439
|
$ 798
|
$ 48
|
$ 1,352
|
|
Courtyard
Midtown East
|
|
$ 6,462
|
|
$ 1,189
|
$ 530
|
$ 909
|
$ -
|
$ 2,628
|
|
Frenchman's
Reef (3)
|
|
$
10,771
|
|
$ (329)
|
$ 978
|
$ 705
|
$ -
|
$ 1,354
|
|
Griffin
Gate Marriott
|
|
$ 6,442
|
|
$ 1,284
|
$ 763
|
$ -
|
$ (1)
|
$ 2,046
|
|
JW
Marriott Denver Cherry Creek (3)
|
|
$ 4,676
|
|
$ 165
|
$ 420
|
$ 573
|
$ -
|
$ 1,158
|
|
Los
Angeles Airport
|
|
$
12,349
|
|
$ (247)
|
$ 1,516
|
$ 1,035
|
$ -
|
$ 2,304
|
|
Minneapolis
Hilton (3)
|
|
$
12,450
|
|
$ 1,104
|
$ 1,694
|
$ 983
|
$ (116)
|
$ 3,665
|
|
Oak
Brook Hills
|
|
$ 5,577
|
|
$ 156
|
$ 735
|
$ -
|
$ 125
|
$ 1,016
|
|
Orlando
Airport Marriott
|
|
$ 4,394
|
|
$ (755)
|
$ 754
|
$ 783
|
$ -
|
$ 782
|
|
Salt
Lake City Marriott
|
|
$ 5,056
|
|
$ 366
|
$ 628
|
$ 404
|
$ -
|
$ 1,398
|
|
The
Lodge at Sonoma
|
|
$ 3,996
|
|
$ 398
|
$ 322
|
$ -
|
$ -
|
$ 720
|
|
Torrance
Marriott South Bay
|
|
$ 5,004
|
|
$ 523
|
$ 737
|
$ -
|
$ -
|
$ 1,260
|
|
Vail
Marriott (3)
|
|
$ 5,246
|
|
$ 620
|
$ 507
|
$ -
|
$ -
|
$ 1,127
|
|
Radisson
Lexington Hotel New York (3)
|
|
$
13,189
|
|
$ 2,470
|
$ 2,355
|
$ -
|
$ -
|
$ 4,825
|
|
Renaissance
Worthington
|
|
$ 7,467
|
|
$ 797
|
$ 625
|
$ 714
|
$ 3
|
$ 2,139
|
|
Total
|
|
$
186,620
|
|
$
13,185
|
$
23,925
|
$
12,289
|
$ 1,228
|
$
50,360
|
|
Comparable
Total (4)
|
|
$
175,849
|
|
$
13,514
|
$
22,947
|
$
11,584
|
$ 1,228
|
$
49,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The pro forma operating data includes the operating
results for the Company's 25 hotels owned as of June
17, 2011 as if they were owned since January
1, 2010.
(2) The non-cash adjustments include expenses incurred by the
hotels due to the straight lining of the rent from our ground lease
obligations, the non-cash amortization of favorable lease assets, and
the non-cash amortization of unfavorable contract liabilities.
(3) The hotel reports results on a monthly basis. The amounts
presented are based on the Company's reporting calendar for the second
quarter and include the months of March, April, and May.
(4) The comparable total excludes the Frenchman's Reef &
Morning Star Marriott Beach Resort due to the extensive ongoing
renovation.
(5) Does not include the $0.9 million
accrual for the net repayment of key money
|
|
Pro
Forma Hotel Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter 2010 (1)
|
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
|
|
|
Total
Revenues
|
|
Net
Income / (Loss)
|
Depreciation
|
Interest
Expense
|
Non-Cash
Adjustments (2)
|
Hotel
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta
Alpharetta
|
|
$ 2,979
|
|
$ 392
|
$ 292
|
$ -
|
$ -
|
$ 684
|
|
Westin
Atlanta North (3)
|
|
$ 4,152
|
|
$ 300
|
$ 426
|
$ -
|
$ -
|
$ 726
|
|
Atlanta
Waverly
|
|
$ 6,141
|
|
$
(1,272)
|
$ 1,050
|
$ 1,251
|
$ -
|
$ 1,029
|
|
Renaissance
Austin
|
|
$ 6,867
|
|
$ 154
|
$ 965
|
$ 1,073
|
$ -
|
$ 2,192
|
|
Bethesda
Marriott Suites
|
|
$ 3,802
|
|
$ (900)
|
$ 511
|
$ -
|
$ 1,453
|
$ 1,064
|
|
Boston
Westin (3)
|
|
$
19,435
|
|
$ 2,744
|
$ 2,890
|
$ -
|
$ 117
|
$ 5,751
|
|
Renaissance
Charleston
|
|
$ 2,709
|
|
$ 780
|
$ 384
|
$ -
|
$ (29)
|
$ 1,135
|
|
Hilton
Garden Inn Chelsea (3)
|
|
$ 2,781
|
|
$ 709
|
$ 504
|
$ -
|
$ -
|
$ 1,213
|
|
Chicago
Marriott
|
|
$
23,403
|
|
$ 383
|
$ 3,125
|
$ 3,079
|
$ (365)
|
$ 6,222
|
|
Chicago
Conrad (3)
|
|
$ 5,210
|
|
$ 82
|
$ 1,105
|
$ -
|
$ -
|
$ 1,187
|
|
Courtyard
Fifth Avenue
|
|
$ 3,660
|
|
$ (52)
|
$ 436
|
$ 799
|
$ 48
|
$ 1,231
|
|
Courtyard
Midtown East
|
|
$ 6,009
|
|
$ 826
|
$ 520
|
$ 915
|
$ -
|
$ 2,261
|
|
Frenchman's
Reef (3)
|
|
$
15,588
|
|
$ 3,156
|
$ 898
|
$ 799
|
$ -
|
$ 4,853
|
|
Griffin
Gate Marriott
|
|
$ 6,222
|
|
$ 1,040
|
$ 753
|
$ -
|
$ (1)
|
$ 1,792
|
|
JW
Marriott Denver Cherry Creek (3)
|
|
$ 4,431
|
|
$ 102
|
$ 420
|
$ 585
|
$ -
|
$ 1,107
|
|
Los
Angeles Airport
|
|
$
11,103
|
|
$ (885)
|
$ 1,312
|
$ 1,036
|
$ -
|
$ 1,463
|
|
Minneapolis
Hilton (3)
|
|
$
11,929
|
|
$ 2,082
|
$ 1,707
|
$ -
|
$ (263)
|
$ 3,526
|
|
Oak
Brook Hills
|
|
$ 5,423
|
|
$ (2)
|
$ 748
|
$ -
|
$ 125
|
$ 871
|
|
Orlando
Airport Marriott
|
|
$ 4,148
|
|
$ (790)
|
$ 740
|
$ 785
|
$ -
|
$ 735
|
|
Salt
Lake City Marriott
|
|
$ 4,823
|
|
$ 142
|
$ 714
|
$ 423
|
$ -
|
$ 1,279
|
|
The
Lodge at Sonoma
|
|
$ 3,484
|
|
$ 170
|
$ 327
|
$ -
|
$ -
|
$ 497
|
|
Torrance
Marriott South Bay
|
|
$ 4,967
|
|
$ 303
|
$ 758
|
$ -
|
$ -
|
$ 1,061
|
|
Vail
Marriott (3)
|
|
$ 5,573
|
|
$ 695
|
$ 711
|
$ -
|
$ -
|
$ 1,406
|
|
Radisson
Lexington Hotel New York (3)
|
|
$
12,091
|
|
$ 1,918
|
$ 2,355
|
$ -
|
$ -
|
$ 4,273
|
|
Renaissance
Worthington
|
|
$ 8,135
|
|
$ 1,286
|
$ 793
|
$ 724
|
$ 3
|
$ 2,806
|
|
Total
|
|
$
185,065
|
|
$
13,363
|
$
24,444
|
$
11,469
|
$ 1,088
|
$
50,329
|
|
Comparable
Total (4)
|
|
$
169,477
|
|
$
10,207
|
$
23,546
|
$
10,670
|
$ 1,088
|
$
45,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The pro forma operating data includes the operating
results for the Company's 25 hotels owned as of June
17, 2011 as if they were owned as of January
1, 2010.
(2) The non-cash adjustments include expenses incurred by the
hotels due to the straight lining of the rent from our ground lease
obligations, the non-cash amortization of our favorable lease assets
and the non-cash amortization of our unfavorable contract liabilities.
(3) The hotel reports results on a monthly basis. The data
presented is based upon the Company's reporting calendar for the second
quarter and includes the months of March, April, and May.
(4) The comparable total excludes the Frenchman's Reef &
Morning Star Marriott Beach Resort due to the extensive ongoing
renovation.
|
|
Pro
Forma Hotel Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
to Date 2011 (1)
|
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
|
|
|
Total
Revenues
|
|
Net
Income / (Loss)
|
Depreciation
|
Interest
Expense
|
Non-Cash
Adjustments (2)
|
Hotel
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta
Alpharetta
|
|
$ 7,241
|
|
$ 1,708
|
$ 573
|
$ -
|
$ -
|
$ 2,281
|
|
Westin
Atlanta North (3)
|
|
$ 6,720
|
|
$ 198
|
$ 843
|
$ -
|
$ -
|
$ 1,041
|
|
Atlanta
Waverly
|
|
$
14,002
|
|
$
(1,384)
|
$ 2,152
|
$ 2,503
|
$ -
|
$ 3,271
|
|
Renaissance
Austin
|
|
$
14,076
|
|
$ 294
|
$ 1,910
|
$ 2,148
|
$ -
|
$ 4,352
|
|
Bethesda
Marriott Suites
|
|
$ 7,354
|
|
$
(1,731)
|
$ 970
|
$ -
|
$ 2,897
|
$ 2,136
|
|
Boston
Westin (3)
|
|
$
24,952
|
|
$
(1,256)
|
$ 5,771
|
$ -
|
$ 234
|
$ 4,749
|
|
Renaissance
Charleston
|
|
$ 5,052
|
|
$ 1,186
|
$ 663
|
$ -
|
$ (58)
|
$ 1,791
|
|
Hilton
Garden Inn Chelsea (3)
|
|
$ 4,469
|
|
$ 985
|
$ 846
|
$ -
|
$ -
|
$ 1,831
|
|
Chicago
Marriott
|
|
$
36,106
|
|
$
(5,231)
|
$ 6,262
|
$ 6,108
|
$ (730)
|
$ 6,409
|
|
Chicago
Conrad (3)(5)
|
|
$ 8,235
|
|
$ (745)
|
$ 2,273
|
$ -
|
$ -
|
$ 1,528
|
|
Courtyard
Fifth Avenue
|
|
$ 6,466
|
|
$ (988)
|
$ 878
|
$ 1,597
|
$ 95
|
$ 1,582
|
|
Courtyard
Midtown East
|
|
$
10,660
|
|
$ 262
|
$ 1,062
|
$ 1,839
|
$ -
|
$ 3,163
|
|
Frenchman's
Reef (3)
|
|
$
20,406
|
|
$ 656
|
$ 1,931
|
$ 1,503
|
$ -
|
$ 4,090
|
|
Griffin
Gate Marriott
|
|
$ 9,773
|
|
$ 579
|
$ 1,536
|
$ -
|
$ (2)
|
$ 2,113
|
|
JW
Marriott Denver Cherry Creek (3)
|
|
$ 7,302
|
|
$ (342)
|
$ 840
|
$ 1,146
|
$ -
|
$ 1,644
|
|
Los
Angeles Airport
|
|
$
24,605
|
|
$ (350)
|
$ 2,825
|
$ 2,071
|
$ -
|
$ 4,546
|
|
Minneapolis
Hilton (3)
|
|
$
18,578
|
|
$ 577
|
$ 3,376
|
$ 983
|
$ (324)
|
$ 4,612
|
|
Oak
Brook Hills
|
|
$ 8,185
|
|
$
(1,475)
|
$ 1,477
|
$ -
|
$ 250
|
$ 252
|
|
Orlando
Airport Marriott
|
|
$
10,408
|
|
$ (269)
|
$ 1,509
|
$ 1,568
|
$ -
|
$ 2,808
|
|
Salt
Lake City Marriott
|
|
$ 9,828
|
|
$ 437
|
$ 1,256
|
$ 813
|
$ -
|
$ 2,506
|
|
The
Lodge at Sonoma
|
|
$ 6,598
|
|
$ (260)
|
$ 651
|
$ -
|
$ -
|
$ 391
|
|
Torrance
Marriott South Bay
|
|
$ 9,670
|
|
$ 762
|
$ 1,473
|
$ -
|
$ -
|
$ 2,235
|
|
Vail
Marriott (3)
|
|
$
11,740
|
|
$ 2,998
|
$ 1,016
|
$ -
|
$ -
|
$ 4,014
|
|
Radisson
Lexington Hotel New York (3)
|
|
$
18,408
|
|
$ 439
|
$ 4,710
|
$ -
|
$ -
|
$ 5,149
|
|
Renaissance
Worthington
|
|
$
15,898
|
|
$ 2,800
|
$ 1,251
|
$ 1,431
|
$ 5
|
$ 5,487
|
|
Total
|
|
$
316,732
|
|
$ (150)
|
$
48,054
|
$
23,710
|
$ 2,367
|
$
73,713
|
|
Comparable
Total (4)
|
|
$
296,326
|
|
$ (806)
|
$
46,123
|
$
22,207
|
$ 2,367
|
$
69,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The pro forma operating data includes the operating
results for the Company's 25 hotels owned as of June
17, 2011 as if they were owned as of January
1, 2010.
(2) The non-cash adjustments include expenses incurred by the
hotels due to the straight lining of the rent from our ground lease
obligations, the non-cash amortization of our favorable lease assets
and the non-cash amortization of our unfavorable contract liabilities.
(3) The hotel reports results on a monthly basis. The data
presented is based upon the Company's reporting calendar and includes
the months of January through May.
(4) The comparable total excludes the Frenchman's Reef &
Morning Star Marriott Beach Resort due to the extensive ongoing
renovation.
(5) Does not include the $0.9 million
accrual for the net repayment of key money.
|
|
Pro
Forma Hotel Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
to Date 2010 (1)
|
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
|
|
|
Total
Revenues
|
|
Net
Income / (Loss)
|
Depreciation
|
Interest
Expense
|
Non-Cash
Adjustments (2)
|
Hotel
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta
Alpharetta
|
|
$ 6,353
|
|
$ 1,050
|
$ 572
|
$ -
|
$ -
|
$ 1,622
|
|
Westin
Atlanta North (3)
|
|
$ 6,580
|
|
$ 215
|
$ 834
|
$ -
|
$ -
|
$ 1,049
|
|
Atlanta
Waverly
|
|
$
13,959
|
|
$
(1,629)
|
$ 2,089
|
$ 2,518
|
$ -
|
$ 2,978
|
|
Renaissance
Austin
|
|
$
13,946
|
|
$ 285
|
$ 1,911
|
$ 2,158
|
$ -
|
$ 4,354
|
|
Bethesda
Marriott Suites
|
|
$ 6,790
|
|
$
(2,214)
|
$ 1,020
|
$ -
|
$ 2,917
|
$ 1,723
|
|
Boston
Westin (3)
|
|
$
26,366
|
|
$ (98)
|
$ 5,776
|
$ -
|
$ 234
|
$ 5,912
|
|
Renaissance
Charleston
|
|
$ 4,613
|
|
$ 886
|
$ 768
|
$ -
|
$ (58)
|
$ 1,596
|
|
Hilton
Garden Inn Chelsea (3)
|
|
$ 4,048
|
|
$ 542
|
$ 1,008
|
$ -
|
$ -
|
$ 1,550
|
|
Chicago
Marriott
|
|
$
35,479
|
|
$
(6,161)
|
$ 6,198
|
$ 6,207
|
$ (730)
|
$ 5,514
|
|
Chicago
Conrad (3)
|
|
$ 7,043
|
|
$
(1,378)
|
$ 2,212
|
$ -
|
$ -
|
$ 834
|
|
Courtyard
Fifth Avenue
|
|
$ 6,341
|
|
$
(1,017)
|
$ 873
|
$ 1,606
|
$ 97
|
$ 1,559
|
|
Courtyard
Midtown East
|
|
$ 9,994
|
|
$ (106)
|
$ 1,039
|
$ 1,873
|
$ -
|
$ 2,806
|
|
Frenchman's
Reef (3)
|
|
$
26,330
|
|
$ 8,801
|
$ 1,771
|
$
(1,536)
|
$ -
|
$ 9,036
|
|
Griffin
Gate Marriott
|
|
$
10,005
|
|
$ 355
|
$ 1,531
|
$ -
|
$ (2)
|
$ 1,884
|
|
JW
Marriott Denver Cherry Creek (3)
|
|
$ 6,886
|
|
$ (437)
|
$ 840
|
$ 1,170
|
$ -
|
$ 1,573
|
|
Los
Angeles Airport
|
|
$
23,371
|
|
$ (828)
|
$ 2,612
|
$ 2,084
|
$ -
|
$ 3,868
|
|
Minneapolis
Hilton (3)
|
|
$
17,507
|
|
$ 1,169
|
$ 3,414
|
$ -
|
$ (438)
|
$ 4,145
|
|
Oak
Brook Hills
|
|
$ 8,332
|
|
$
(1,329)
|
$ 1,494
|
$ -
|
$ 250
|
$ 415
|
|
Orlando
Airport Marriott
|
|
$ 9,636
|
|
$ (803)
|
$ 1,476
|
$ 1,579
|
$ -
|
$ 2,252
|
|
Salt
Lake City Marriott
|
|
$ 9,931
|
|
$ 496
|
$ 1,431
|
$ 855
|
$ -
|
$ 2,782
|
|
The
Lodge at Sonoma
|
|
$ 5,735
|
|
$ (423)
|
$ 645
|
$ -
|
$ -
|
$ 222
|
|
Torrance
Marriott South Bay
|
|
$ 9,503
|
|
$ 384
|
$ 1,504
|
$ -
|
$ -
|
$ 1,888
|
|
Vail
Marriott (3)
|
|
$
12,218
|
|
$ 3,081
|
$ 1,423
|
$ -
|
$ -
|
$ 4,504
|
|
Radisson
Lexington Hotel New York (3)
|
|
$
17,204
|
|
$ (47)
|
$ 4,710
|
$ -
|
$ -
|
$ 4,663
|
|
Renaissance
Worthington
|
|
$
16,043
|
|
$ 2,468
|
$ 1,574
|
$ 1,460
|
$ 5
|
$ 5,507
|
|
Total
|
|
$
314,213
|
|
$ 3,262
|
$
48,725
|
$
19,974
|
$ 2,275
|
$
74,314
|
|
Comparable
Total (4)
|
|
$
287,883
|
|
$
(5,539)
|
$
46,954
|
$
21,510
|
$ 2,275
|
$
65,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The pro forma operating data includes the operating
results for the Company's 25 hotels owned as of June
17, 2011 as if they were owned as of January
1, 2010.
(2) The non-cash adjustments include expenses incurred by the
hotels due to the straight lining of the rent from our ground lease
obligations, the non-cash amortization of our favorable lease assets
and the non-cash amortization of our unfavorable contract liabilities.
(3) The hotel reports results on a monthly basis. The data
presented is based upon the Company's reporting calendar and includes
the months of January through May.
(4) The comparable total excludes the Frenchman's Reef &
Morning Star Marriott Beach Resort due to the extensive ongoing
renovation.
|