BETHESDA, Md., Oct. 19, 2011 -- DiamondRock Hospitality
Company (the "Company") (NYSE: DRH) today announced results of operations for
its third fiscal quarter ended September 9, 2011
and that it has entered into a purchase and sale agreement to sell a
portfolio of three non-core hotels. The Company is a lodging-focused
real estate investment trust that owns a portfolio of premium hotels in
the United States.
Third Quarter 2011 Highlights
- Sale Agreement for Three-Hotel Portfolio:
The Company entered into an agreement to sell a portfolio of three
non-core hotels, the Griffin Gate Marriott Resort and Spa, Renaissance
Waverly and Renaissance Austin, to an affiliate of Inland American for
a contractual purchase price of $262.5 million.
The sale is expected to close by the end of the year.
- Pro Forma RevPAR: The
Company's Pro Forma RevPAR was $126.05,
an increase of 7.2% from the comparable period in 2010. Pro Forma
RevPAR is calculated assuming the Company owned all of its hotels 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 extensive renovation of
the hotel in 2011.
- Pro Forma Hotel Adjusted EBITDA Margin: The
Company's Pro Forma Hotel Adjusted EBITDA margin was 27.19%, an
increase of 44 basis points from the comparable period in 2010. Pro
Forma Hotel Adjusted EBITDA margin is calculated assuming the Company
owned all of its hotels since January 1, 2010
but excludes Frenchman's Reef & Morning Star Marriott Beach Resort.
- Adjusted EBITDA: The Company's
Adjusted EBITDA was $41.7 million.
- Adjusted FFO: The Company's Adjusted FFO was $26.2 million and Adjusted FFO per diluted
share was $0.16.
- Acquisition of the Courtyard Denver: On
July 22, 2011, the Company
acquired the Courtyard Denver Downtown for approximately $46 million.
- Dividends: The Company declared a quarterly
dividend of $0.08 per share during the
third quarter.
Mark W. Brugger, Chief
Executive Officer of DiamondRock Hospitality Company, stated, "We are
pleased to announce the pending sale of three non-core hotels. The sale
improves our portfolio quality, increases our concentration in key
urban gateway locations, and provides DiamondRock with significant
investment capacity to be opportunistic despite the turmoil in the
capital markets. The third quarter results reflect strong lodging
fundamentals and our group booking pace for 2012 is excellent, with
group revenue on the books up 10 percent."
Sale Agreement for Three-Hotel Portfolio
The Company has entered into a purchase and sale agreement to
sell a portfolio of three non-core hotels to an affiliate of Inland
American for a contractual purchase price of $262.5
million. The 1,422-room portfolio consists of the 409-room
Griffin Gate Marriott Resort and Spa located in Lexington, Kentucky, the 521-room
Renaissance Waverly located in Atlanta,
Georgia, and the 492-room Renaissance Austin located in the
Arboretum submarket of Austin, Texas.
Upon the sale of the hotels, the Company expects to receive
net cash proceeds of approximately $80 million
and be relieved of $180 million of
mortgage debt. The transaction is expected to close during the fourth
quarter and is subject to the satisfaction of closing conditions,
including the receipt of lender consents. The Company expects to record
a net gain upon completion of the transaction of approximately $5.0 million to $6.0 million.
Excluding the three hotels improves the Company's 2011 Pro
Forma RevPAR by nearly $5. The
disposition lowers the Company's leverage by reducing 2011 Pro Forma
Net Debt-to-EBITDA ratio to 4.8 times from 5.6 times.
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 Margin" assume the
Company owned its 26 hotels 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 third quarter beginning June
18, 2011 and ending September 9, 2011,
the Company reported the following:
- Pro Forma RevPAR growth of 7.2% and Pro Forma Hotel
Adjusted EBITDA margin expansion of 44 basis points compared to the
comparable period in 2010.
- Revenues of $179.0 million
compared to $151.1 million for the
comparable period in 2010.
- Adjusted EBITDA of $41.7 million
compared to $33.0 million for the
comparable period in 2010.
- Adjusted FFO of $26.2 million
and Adjusted FFO per diluted share of $0.16
compared to $22.4 million and $0.15, respectively, for the comparable period
in 2010.
- Net loss of $1.0 million (or
$0.01 per diluted share)
compared to a net loss of $3.5 million
(or $0.02 per diluted share) for the
comparable period in 2010.
The third quarter Pro Forma RevPAR growth of 7.2% (from $117.63 to $126.05) was driven by a 2.7%
increase in the average daily rate (from $153.32
to $157.41) and a 3.4 percentage point
increase in occupancy (from 76.7 percent to 80.1 percent). The third
quarter Pro Forma Hotel Adjusted EBITDA margin increased 44 basis
points (from 26.75% to 27.19%) from the comparable period in 2010.
If the three-hotel portfolio to be sold were excluded, the
Company's third quarter Pro Forma RevPAR growth would improve to 7.3%
and Hotel Adjusted EBITDA margin expansion would improve to 170 basis
points.
The Company's third quarter Pro Forma Hotel Adjusted EBITDA
margin was negatively impacted by an increase in property taxes as a
result of the expiration of the PILOT program at the Westin Boston
Waterfront Hotel and a difficult comparison from the successful
multi-year property tax appeal at the Renaissance Waverly recorded
during the third quarter of 2010. Excluding these property tax items,
the Company's Pro Forma Hotel Adjusted EBITDA margin growth would
increase to 185 basis points.
The Company's third quarter results reflect $1.2 million of legal expenses incurred
related to the bankruptcy proceedings of the Allerton Hotel and a $1.7 million accrual for the tentative
settlement of litigation at the Los Angeles Airport Marriott, which is
discussed further below.
For the period from January 1, 2011
to September 9, 2011, the Company
reported the following:
- Pro Forma RevPAR growth of 6.1% and Pro Forma Hotel
Adjusted EBITDA margin expansion of 66 basis points compared to the
comparable period in 2010.
- Revenues of $470.8 million
compared to $415.1 million for the
comparable period in 2010.
- Adjusted EBITDA of $101.7 million
compared to $87.3 million for the
comparable period in 2010.
- Adjusted FFO of $63.6 million
and Adjusted FFO per diluted share of $0.38
compared to $56.0 million and $0.40, respectively, for the comparable period
in 2010.
- Net loss of $12.6 million
(or $0.08 per diluted share) compared to
a net loss of $11.0 million (or $0.08 per diluted share) for the comparable
period in 2010.
The year-to-date Pro Forma RevPAR growth of 6.1% (from $109.03 to $115.68) was driven by a 3.7%
increase in the average daily rate (from $149.95
to $155.55) and a 1.7 percentage point
increase in occupancy (from 72.7 percent to 74.4 percent). Year-to-date
Pro Forma Hotel Adjusted EBITDA margin increased 66 basis points (from
24.35% to 25.01%) from the comparable period in 2010.
If the three-hotel portfolio to be sold were excluded, the
Company's year-to-date Pro Forma RevPAR growth would improve to 6.3%
and Hotel Adjusted EBITDA margin expansion would improve to 108 basis
points.
Dividends
The Company's Board of Directors declared a quarterly dividend
of $0.08 per share to stockholders of
record as of September 9, 2011. The
dividend was paid on September 20, 2011.
Conrad Chicago-New Performance Guarantee
The Company has furthered its positive relationship with
Hilton. In October 2011, the Company and
Hilton amended the management agreement for the Conrad Chicago to
include a performance guarantee for the remaining term of the
agreement, which ends in 2015. Additionally, the Company believes that
there are compelling investment opportunities at the hotel and expects
to invest $3.5 million in the hotel to
add 4,100 square feet of new meeting space, reposition the food and
beverage outlets and re-concept the hotel lobby.
The Conrad Chicago had failed the performance test under the
management agreement. During the second quarter, the Company accrued
approximately $1.0 million for repayment
of key money to Hilton due upon termination. After discussions, the
Company and Hilton agreed to restructure the management agreement and
retain the Conrad brand. Under the terms of the amended management
agreement the key money repayment is no longer due. Accordingly, the
Company reversed the $1.0 million key
money repayment accrual during the third quarter, which is deducted in
calculating the Company's Adjusted EBITDA and Adjusted FFO.
Courtyard Denver Downtown Acquisition
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 (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.
Allerton Hotel Mortgage Loan Update
The Company owns the senior mortgage loan secured by the
Allerton Hotel, located in downtown Chicago,
Illinois. The loan matured in January
2010 and is in default. During the second quarter of 2011, the
borrower filed for bankruptcy protection in the Northern District of
Illinois. The senior mortgage loan is secured by substantially all of
the assets of the borrower, including 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. The Company continues to
vigorously pursue its rights in the bankruptcy case and expects
resolution by next summer.
The Company has incurred approximately $1.2
million in legal fees as of September 9,
2011 and expects to incur an additional $1.0
million of legal fees during the remainder of the year. These
legal costs were not fully reflected in the Company's prior earnings
guidance.
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. During the period
from January 1, 2011 to September 9, 2011, the Company received $1.7 million of cash interest payments from
the borrower. Subsequent to September 9, 2011,
the Company received additional cash interest payments of $0.5 million. The Company's 2011 Adjusted
EBITDA and Adjusted FFO guidance assumes $1.3
million of cash interest payments will be received in the fourth
quarter of 2011 on the Allerton loan.
Subsequent to the end of the third fiscal quarter, the borrower agreed
to continue to pay interest at the default rate through December 2011. The Company agreed to fund cash
flow shortfalls, if any, during the first quarter of 2012 up to $800,000, which will be treated as additional
principal.
Los Angeles Airport Marriott Litigation
During the third quarter, the Company accrued $1.7 million for its contribution to the
settlement of litigation involving its Los Angeles Airport Marriott.
The settlement was recorded in corporate expenses and is added back in
calculating the Company's Adjusted EBITDA and Adjusted FFO due to the
unusual and one-time nature of the charge. The Company and certain
other defendants reached a tentative settlement of the matter, which
involved claims by certain employees at the Los Angeles Airport
Marriott. The settlement is pending approval by the Superior Court of California, Los
Angeles County.
Capital Expenditures
During 2011, the Company continued to invest in its portfolio.
The Company commenced or plans to commence approximately $65 million of capital improvements at its
hotels. Of that amount, approximately $40
million will be funded from corporate cash, $20 million from restricted cash reserves held
by hotel managers and $5 million from
Marriott International as a contribution towards the capital investment
program at Frenchman's Reef. In total, the Company has invested
approximately $35 million in capital
improvements at its hotels through September 9,
2011.
The Company's 2011 capital expenditures budget includes
approximately $37 million for the 2011
portion of the Frenchman's Reef capital investment program, which
includes the $5 million contribution
from Marriott International. The Company has substantially completed
the work scheduled for 2011 in its 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 closed, representing approximately 300 guestrooms. In October 2011, the hotel reopened substantially
all of its guestrooms, restaurants, three new resort pools, fitness
center and state-of-the-art spa. The Company currently expects $6.5 million of displaced profits from
renovation disruption in 2011 related to this project.
Balance Sheet
The Company continues to maintain its straightforward capital
structure. The Company has no preferred equity outstanding and
continues to own 100% of its properties.
As of September 9, 2011, the
Company had $28.8 million of
unrestricted cash on hand and $1.1 billion
of debt outstanding, which consists of $945.9
million of fixed rate, property-specific mortgage debt with
limited near-term maturities and $130 million
outstanding on the Company's $200 million
corporate credit facility. Twelve of the Company's 26 hotels are
unencumbered by mortgage debt. The unencumbered hotels have a cost
basis of approximately $1.0 billion.
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 hotels were owned since January 1, 2010 but excludes Frenchman's Reef
for all of 2011 because it was partially closed for the renovation.
The Company is revising its full year 2011 guidance to include
its assessment of the current hotel operator forecasts and incremental
legal fees related to the Allerton Hotel bankruptcy proceedings. In
addition, the Company continues to expect to receive $3 million in cash interest payments from the
Allerton Hotel mortgage loan during 2011.
The Company expects full year results as follows:
- RevPAR to increase 6 percent to 7 percent;
- Adjusted EBITDA of $166 million to
$170 million;
- Adjusted FFO of $105 million to
$109 million, which assumes income tax expense to range from $4.4 million to $5.4 million; and
- Adjusted FFO per share of $0.63 to
$0.65 based on 167 million diluted weighted average shares.
Earnings Call
The Company will host a conference call to discuss its third
quarter results on Wednesday, October 19, 2011,
at 10:00 a.m. Eastern Time (ET). To
participate in the live call, investors are invited to dial
888-680-0894 (for domestic callers) or 617-213-4860 (for international
callers). The participant passcode is 38397476. 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 currently owns 26 premium hotels with approximately 12,000
rooms and holds one senior mortgage loan. 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; risks associated with
completing the pending sale of the three-hotel portfolio 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.
DIAMONDROCK
HOSPITALITY COMPANY
CONDENSED
CONSOLIDATED BALANCE SHEETS
As of September 9, 2011 and December 31, 2010
(in thousands, except share amounts)
|
|
|
September
9, 2011
|
|
December
31, 2010
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Property
and equipment, at cost
|
$
|
2,962,709
|
|
|
$
|
2,468,289
|
|
|
Less:
accumulated depreciation
|
(462,986)
|
|
|
(396,686)
|
|
|
|
2,499,723
|
|
|
2,071,603
|
|
|
Deferred
financing costs, net
|
6,720
|
|
|
5,492
|
|
|
Restricted
cash
|
65,645
|
|
|
51,936
|
|
|
Due
from hotel managers
|
65,454
|
|
|
50,715
|
|
|
Note
receivable
|
56,247
|
|
|
57,951
|
|
|
Favorable
lease assets, net
|
43,594
|
|
|
42,622
|
|
|
Prepaid
and other assets
|
71,445
|
|
|
50,089
|
|
|
Cash
and cash equivalents
|
28,777
|
|
|
84,201
|
|
|
Total
assets
|
$
|
2,837,605
|
|
|
$
|
2,414,609
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Mortgage
debt
|
$
|
945,888
|
|
|
$
|
780,880
|
|
|
Senior
unsecured credit facility
|
130,000
|
|
|
—
|
|
|
Total
debt
|
1,075,888
|
|
|
780,880
|
|
|
Deferred
income related to key money, net
|
22,216
|
|
|
19,199
|
|
|
Unfavorable
contract liabilities, net
|
82,490
|
|
|
83,613
|
|
|
Due to
hotel managers
|
42,487
|
|
|
36,168
|
|
|
Dividends
declared and unpaid
|
13,569
|
|
|
—
|
|
|
Accounts
payable and accrued expenses
|
91,397
|
|
|
81,232
|
|
|
Total
other liabilities
|
252,159
|
|
|
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; 167,502,359 and
154,570,543 shares issued and outstanding at September 9, 2011 and
December 31, 2010, respectively
|
1,675
|
|
|
1,546
|
|
|
Additional
paid-in capital
|
1,707,240
|
|
|
1,558,047
|
|
|
Accumulated
deficit
|
(199,357)
|
|
|
(146,076)
|
|
|
Total
stockholders' equity
|
1,509,558
|
|
|
1,413,517
|
|
|
Total
liabilities and stockholders' equity
|
$
|
2,837,605
|
|
|
$
|
2,414,609
|
|
|
|
|
|
|
|
|
|
|
|
|
DIAMONDROCK
HOSPITALITY COMPANY
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Fiscal Quarters Ended September 9, 2011
and September 10, 2010 and
the Periods from January 1, 2011 to September 9,
2011 and January 1, 2010 to September 10, 2010
(in thousands, except per share amounts)
|
|
|
Fiscal
Quarter Ended
|
|
Period
From
|
|
|
|
|
|
|
January
1, 2011 to September 9, 2011
|
|
January
1, 2010 to September 10, 2010
|
|
|
September
9, 2011
|
|
September
10, 2010
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Rooms
|
$
|
125,100
|
|
|
$
|
99,703
|
|
|
$
|
316,284
|
|
|
$
|
267,081
|
|
|
Food
and beverage
|
44,671
|
|
|
43,370
|
|
|
131,137
|
|
|
126,620
|
|
|
Other
|
9,224
|
|
|
8,040
|
|
|
23,347
|
|
|
21,364
|
|
|
Total
revenues
|
178,995
|
|
|
151,113
|
|
|
470,768
|
|
|
415,065
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Rooms
|
33,398
|
|
|
26,979
|
|
|
84,642
|
|
|
71,510
|
|
|
Food
and beverage
|
31,024
|
|
|
30,534
|
|
|
91,276
|
|
|
86,748
|
|
|
Management
fees
|
5,214
|
|
|
5,080
|
|
|
15,603
|
|
|
13,634
|
|
|
Other
hotel expenses
|
64,296
|
|
|
55,613
|
|
|
170,227
|
|
|
152,232
|
|
|
Depreciation
and amortization
|
23,801
|
|
|
21,297
|
|
|
66,835
|
|
|
59,278
|
|
|
Hotel
acquisition costs
|
445
|
|
|
899
|
|
|
2,604
|
|
|
1,236
|
|
|
Corporate
expenses
|
6,453
|
|
|
3,948
|
|
|
14,901
|
|
|
10,859
|
|
|
Total
operating expenses
|
164,631
|
|
|
144,350
|
|
|
446,088
|
|
|
395,497
|
|
|
Operating
profit
|
14,364
|
|
|
6,763
|
|
|
24,680
|
|
|
19,568
|
|
|
Other
Expenses (Income):
|
|
|
|
|
|
|
|
|
Interest
income
|
(24)
|
|
|
(283)
|
|
|
(590)
|
|
|
(650)
|
|
|
Interest
expense
|
13,605
|
|
|
11,240
|
|
|
37,088
|
|
|
30,455
|
|
|
Total
other expenses
|
13,581
|
|
|
10,957
|
|
|
36,498
|
|
|
29,805
|
|
|
Income
(loss) before income taxes
|
783
|
|
|
(4,194)
|
|
|
(11,818)
|
|
|
(10,237)
|
|
|
Income
tax (expense) benefit
|
(1,798)
|
|
|
660
|
|
|
(795)
|
|
|
(803)
|
|
|
Net
loss
|
$
|
(1,015)
|
|
|
$
|
(3,534)
|
|
|
$
|
(12,613)
|
|
|
$
|
(11,040)
|
|
|
Loss
per share:
|
|
|
|
|
|
|
|
|
Basic
and diluted loss per share
|
$
|
(0.01)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
September
9, 2011
|
|
September
10, 2010
|
|
January
1, 2011 to September 9, 2011
|
|
January
1, 2010 to September 10, 2010
|
|
Net
loss
|
$
(1,015)
|
|
$
(3,534)
|
|
$
(12,613)
|
|
$
(11,040)
|
|
Interest
expense
|
13,605
|
|
11,240
|
|
37,088
|
|
30,455
|
|
Income
tax expense (benefit)
|
1,798
|
|
(660)
|
|
795
|
|
803
|
|
Depreciation
and amortization
|
23,801
|
|
21,297
|
|
66,835
|
|
59,278
|
|
EBITDA
|
$
38,189
|
|
$
28,343
|
|
$
92,105
|
|
$
79,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year 2011 Forecast (in 000s)
|
|
|
|
|
|
|
Low End
|
|
High
End
|
|
Net
loss
|
|
|
|
|
$
(6,800)
|
|
$
(1,800)
|
|
Interest
expense
|
|
|
|
|
56,000
|
|
55,000
|
|
Income
tax expense
|
|
|
|
|
4,400
|
|
5,400
|
|
Depreciation
and amortization
|
|
|
|
|
100,000
|
|
99,000
|
|
EBITDA
|
|
|
|
|
$
153,600
|
|
$
157,600
|
|
|
|
|
|
|
|
|
|
|
|
The Company also evaluates its performance by reviewing
Adjusted EBITDA 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,
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 for the following items, which
may occur in any period, and refers to this measure as Adjusted EBITDA:
- 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 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 is not consistent with reflecting the ongoing performance of its
hotels. In addition, the Company believes that impairment charges are
similar to depreciation expense, which is also excluded from EBITDA.
- 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 hotels.
- Acquisition Costs: The Company excludes acquisition
transaction costs expensed during the period because it believes that
including these costs in EBITDA 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. 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 as they relate to the ongoing 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 is not consistent with the
underlying performance of the Company. During the third fiscal quarter
ended September 9, 2011 the Company
reversed the accrual made in the second fiscal quarter 2011 for the
repayment of key money to Hilton based on the execution of an amended
management agreement for the Conrad Chicago. In addition, the Company
recorded an accrual for the tentative settlement of litigation at the
Los Angeles Airport Marriott. The Company excluded these unusual items
from EBITDA because it believes that including them would not be
consistent with reflecting the ongoing performance of its hotels.
|
|
|
|
|
|
|
|
Fiscal
Quarter Ended
|
|
Period
From
|
|
|
September
9, 2011
|
|
September
10, 2010
|
|
January
1, 2011 to September 9, 2011
|
|
January
1, 2010 to September 10, 2010
|
|
EBITDA
|
$
38,189
|
|
$
28,343
|
|
$
92,105
|
|
$
79,496
|
|
Non-cash
ground rent
|
1,658
|
|
1,538
|
|
4,878
|
|
5,104
|
|
Non-cash
amortization of unfavorable contract liabilities
|
(432)
|
|
(409)
|
|
(1,284)
|
|
(1,203)
|
|
Accrual
for net key money repayment
|
(864)
|
|
-
|
|
-
|
|
-
|
|
Mortgage
loan cash payments
|
1,099
|
|
1,250
|
|
1,704
|
|
1,250
|
|
Hurricane
remediation expense
|
-
|
|
1,391
|
|
-
|
|
1,391
|
|
Litigation
settlement
|
1,650
|
|
-
|
|
1,650
|
|
-
|
|
Acquisition
costs
|
445
|
|
899
|
|
2,604
|
|
1,236
|
|
Adjusted
EBITDA
|
$
41,745
|
|
$
33,012
|
|
$
101,657
|
|
$
87,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year 2011 Forecast (in 000s)
|
|
|
|
|
|
|
Low End
|
|
High
End
|
|
EBITDA
|
|
|
|
|
$
153,600
|
|
$
157,600
|
|
Non-cash
ground rent
|
|
|
|
|
7,000
|
|
7,000
|
|
Non-cash
amortization of unfavorable contract liabilities
|
|
|
|
|
(1,850)
|
|
(1,850)
|
|
Litigation
settlement
|
|
|
|
|
1,650
|
|
1,650
|
|
Mortgage
loan cash payments
|
|
|
|
|
3,000
|
|
3,000
|
|
Acquisition
costs
|
|
|
|
|
2,600
|
|
2,600
|
|
Adjusted
EBITDA
|
|
|
|
|
$
166,000
|
|
$
170,000
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
September
9, 2011
|
|
September
10, 2010
|
|
January
1, 2011 to September 9, 2011
|
|
January
1, 2010 to September 10, 2010
|
|
Net
loss
|
$
(1,015)
|
|
$
(3,534)
|
|
$
(12,613)
|
|
$
(11,040)
|
|
Real
estate related depreciation amortization
|
23,801
|
|
21,297
|
|
66,835
|
|
59,278
|
|
FFO
|
22,786
|
|
17,763
|
|
54,222
|
|
48,238
|
|
FFO
per share (basic and diluted)
|
$ 0.14
|
|
$ 0.11
|
|
$ 0.33
|
|
$ 0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year 2011 Forecast (in 000s)
|
|
|
|
|
|
|
Low End
|
|
High
End
|
|
Net
loss
|
|
|
|
|
$
(6,800)
|
|
$
(1,800)
|
|
Depreciation
and amortization
|
|
|
|
|
100,000
|
|
99,000
|
|
FFO
|
|
|
|
|
$
93,200
|
|
$
97,200
|
|
FFO
per share (basic and diluted)
|
|
|
|
|
$ 0.56
|
|
$ 0.58
|
|
|
|
|
|
|
|
|
|
|
|
The Company also evaluates its performance by reviewing
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 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 FFO for the following items, which may
occur in any period, and refers to this measure as 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.
- The impact of the non-cash amortization of the debt
premiums recorded in conjunction with the acquisitions of the JW
Marriott Denver at Cherry Creek and Courtyard Denver Downtown.
- 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 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
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 and gains or losses on dispositions,
both of which are excluded from FFO.
- Acquisition Costs: The Company excludes acquisition
transaction costs expensed during the period because it believes that
including these costs in 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 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 FFO as they relate to the ongoing 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 is not consistent with the
underlying performance of the Company. During the third fiscal quarter
ended September 9, 2011 the Company
reversed the accrual made in the second fiscal quarter 2011 for the
repayment of key money to Hilton based on the execution of an amended
management agreement for the Conrad Chicago. In addition, the Company
recorded an accrual for the tentative settlement of litigation at the
Los Angeles Airport Marriott. The Company excluded these unusual items
from EBITDA because it believes that including them would not be
consistent with reflecting the ongoing performance of its hotels
|
|
|
Historical
(in 000s)
|
|
|
Fiscal
Quarter Ended
|
|
Period
From
|
|
|
September
9, 2011
|
|
September
10, 2010
|
|
January
1, 2011 to September 9, 2011
|
|
January
1, 2010 to September 10, 2010
|
|
FFO
|
$
22,786
|
|
$
17,763
|
|
$
54,222
|
|
$
48,238
|
|
Non-cash
ground rent
|
1,658
|
|
1,538
|
|
4,878
|
|
5,104
|
|
Non-cash
amortization of unfavorable contract liabilities
|
(432)
|
|
(409)
|
|
(1,284)
|
|
(1,203)
|
|
Accrual
for key money repayment
|
(864)
|
|
-
|
|
-
|
|
-
|
|
Hurricane
remediation expense
|
-
|
|
1,391
|
|
-
|
|
1,391
|
|
Mortgage
loan cash payments
|
1,099
|
|
1,250
|
|
1,704
|
|
1,250
|
|
Litigation
settlement
|
1,650
|
|
-
|
|
1,650
|
|
-
|
|
Amortization
of debt premium
|
(134)
|
|
-
|
|
(161)
|
|
-
|
|
Acquisition
costs
|
445
|
|
899
|
|
2,604
|
|
1,236
|
|
Adjusted
FFO
|
$
26,208
|
|
$
22,432
|
|
$
63,613
|
|
$
56,016
|
|
Adjusted
FFO per share (basic and diluted)
|
$ 0.16
|
|
$ 0.15
|
|
$ 0.38
|
|
$ 0.40
|
|
|
|
|
|
|
Full
Year 2011 Forecast (in 000s)
|
|
|
|
|
|
|
Low End
|
|
High
End
|
|
FFO
|
|
|
|
|
$
93,200
|
|
$
97,200
|
|
Non-cash
ground rent
|
|
|
|
|
7,000
|
|
7,000
|
|
Non-cash
amortization of unfavorable contract liabilities
|
|
|
|
|
(1,850)
|
|
(1,850)
|
|
Acquisition
costs
|
|
|
|
|
2,600
|
|
2,600
|
|
Litigation
settlement
|
|
|
|
|
1,650
|
|
1,650
|
|
Debt
premium amortization
|
|
|
|
|
(600)
|
|
(600)
|
|
Mortgage
loan cash payments
|
|
|
|
|
3,000
|
|
3,000
|
|
Adjusted
FFO
|
|
|
|
|
$
105,000
|
|
$
109,000
|
|
Adjusted
FFO per share (diluted)
|
|
|
|
|
$ 0.63
|
|
$ 0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 the Company's hotels as if they were owned since January 1, 2010 but exclude Frenchman's Reef
due to the impact of its extensive renovation.
|
|
|
Quarter
3, 2010
|
|
Quarter
4, 2010
|
|
Full
Year 2010
|
|
Quarter
1, 2011
|
|
Quarter
2, 2011
|
|
RevPAR
|
$
117.63
|
|
$
118.76
|
|
$
112.11
|
|
$ 94.36
|
|
$
123.85
|
|
Revenues
(in thousands)
|
$
166,670
|
|
$
227,497
|
|
$
685,324
|
|
$
121,541
|
|
$
177,825
|
|
Hotel
Adjusted EBITDA (in thousands)
|
$
44,592
|
|
$
67,109
|
|
$
178,680
|
|
$
21,020
|
|
$
49,977
|
|
% of
Full Year
|
25.0%
|
|
37.6%
|
|
100.0%
|
|
11.1%
|
|
26.3%
|
|
Hotel
Adjusted EBITDA Margin
|
26.75%
|
|
29.50%
|
|
26.07%
|
|
17.29%
|
|
28.10%
|
|
Available
Rooms
|
982,360
|
|
1,307,402
|
|
4,133,444
|
|
854,009
|
|
982,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table is presented to provide investors with
selected historical quarterly operating information to include the
operating results for the Company's hotels as if they were owned since January 1, 2010 but exclude Frenchman's Reef
and the three hotels that are under agreement to be sold.
|
|
|
Quarter
3, 2010
|
|
Quarter
4, 2010
|
|
Full
Year 2010
|
|
Quarter
1, 2011
|
|
Quarter
2, 2011
|
|
RevPAR
|
$
122.60
|
|
$
121.99
|
|
$
115.73
|
|
$ 96.04
|
|
$
128.65
|
|
Revenues
(in thousands)
|
$
147,980
|
|
$
199,049
|
|
$
600,275
|
|
$
103,028
|
|
$
158,488
|
|
Hotel
Adjusted EBITDA (in thousands)
|
$
38,353
|
|
$
58,156
|
|
$
154,275
|
|
$
16,446
|
|
$
44,822
|
|
% of
Full Year
|
24.9%
|
|
37.7%
|
|
100.0%
|
|
9.8%
|
|
26.7%
|
|
Hotel
Adjusted EBITDA Margin
|
25.92%
|
|
29.22%
|
|
25.70%
|
|
15.96%
|
|
28.28%
|
|
Available
Rooms
|
862,912
|
|
1,148,138
|
|
3,614,414
|
|
734,561
|
|
863,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
Period
From
|
|
|
|
|
September
9, 2011
|
|
September
10, 2010
|
|
%
Change
|
|
January
1, 2011 to September 9, 2011
|
|
January
1, 2010 to September 10, 2010
|
|
%
Change
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms
|
$
123,852
|
|
$
115,551
|
|
7.2%
|
|
$
326,123
|
|
$
308,126
|
|
5.8%
|
|
Food
and beverage
|
43,803
|
|
42,700
|
|
2.6%
|
|
126,257
|
|
126,868
|
|
(0.5%)
|
|
Other
|
9,059
|
|
8,419
|
|
7.6%
|
|
23,700
|
|
22,832
|
|
3.8%
|
|
Total
revenues
|
176,714
|
|
166,670
|
|
6.0%
|
|
476,080
|
|
457,826
|
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms
|
32,734
|
|
31,089
|
|
5.3%
|
|
88,783
|
|
84,434
|
|
5.2%
|
|
Food
and beverage
|
29,926
|
|
29,124
|
|
2.8%
|
|
86,684
|
|
85,569
|
|
1.3%
|
|
Other
direct departmental
|
5,056
|
|
4,746
|
|
6.5%
|
|
13,617
|
|
13,257
|
|
2.7%
|
|
General
and administrative
|
14,545
|
|
14,306
|
|
1.7%
|
|
41,103
|
|
40,679
|
|
1.0%
|
|
Utilities
|
6,313
|
|
6,520
|
|
(3.2%)
|
|
16,962
|
|
17,081
|
|
(0.7%)
|
|
Repairs
and maintenance
|
7,665
|
|
7,309
|
|
4.9%
|
|
21,973
|
|
20,960
|
|
4.8%
|
|
Sales
and marketing
|
13,766
|
|
12,926
|
|
6.5%
|
|
37,819
|
|
35,383
|
|
6.9%
|
|
Base
management fees
|
4,699
|
|
4,406
|
|
6.7%
|
|
12,614
|
|
12,052
|
|
4.7%
|
|
Incentive
management fees
|
1,328
|
|
991
|
|
34.0%
|
|
3,008
|
|
2,497
|
|
20.5%
|
|
Property
taxes
|
8,263
|
|
6,392
|
|
29.3%
|
|
22,097
|
|
22,253
|
|
(0.7%)
|
|
Ground
rent
|
3,407
|
|
3,244
|
|
5.0%
|
|
9,763
|
|
9,377
|
|
4.1%
|
|
Other
fixed expenses
|
2,187
|
|
2,144
|
|
2.0%
|
|
6,273
|
|
6,281
|
|
(0.1%)
|
|
Total
hotel operating expenses
|
129,889
|
|
123,197
|
|
5.4%
|
|
360,696
|
|
349,823
|
|
3.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
EBITDA
|
46,825
|
|
43,473
|
|
7.7%
|
|
115,384
|
|
108,003
|
|
6.8%
|
|
Non-cash
ground rent
|
1,658
|
|
1,551
|
|
6.9%
|
|
4,941
|
|
4,743
|
|
4.2%
|
|
Non-cash
amortization of unfavorable contract liabilities
|
(432)
|
|
(432)
|
|
-
|
|
(1,278)
|
|
(1,278)
|
|
-
|
|
Hotel
Adjusted EBITDA
|
$
48,051
|
|
$
44,592
|
|
7.8%
|
|
$
119,047
|
|
$
111,468
|
|
6.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
The pro forma operating data includes the
operating results for the Company's hotels assuming 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 2011 renovation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market
Capitalization
as of September 9, 2011
(in thousands, except per share data)
|
|
|
|
|
|
Enterprise
Value
|
|
|
|
|
|
|
|
Common
equity capitalization (at September 9, 2011 closing price of
$7.05/share)
|
|
$
1,188,257
|
|
Consolidated
debt
|
|
1,075,888
|
|
Cash
and cash equivalents
|
|
(28,777)
|
|
|
|
|
|
Total
enterprise value
|
|
$
2,235,368
|
|
|
|
|
|
|
|
|
|
Share
Reconciliation
|
|
|
|
|
|
|
|
Common
shares outstanding
|
|
167,502
|
|
|
|
|
|
Unvested
restricted stock held by management and employees
|
|
1,011
|
|
Share
grants under deferred compensation plan held by directors
|
34
|
|
|
|
|
|
Combined
shares outstanding
|
|
168,547
|
|
|
|
|
|
|
|
|
Debt
Summary as of September 9, 2011
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Property
|
|
Interest
Rate
|
|
Term
|
|
Outstanding
Principal
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
|
Courtyard
Manhattan / Midtown East
|
|
8.810%
|
|
Fixed
|
|
$
42,390
|
|
October
2014
|
|
Salt
Lake City Marriott Downtown
|
|
5.500%
|
|
Fixed
|
|
30,591
|
|
January
2015
|
|
Courtyard
Manhattan / Fifth Avenue
|
|
6.480%
|
|
Fixed
|
|
50,841
|
|
June
2016
|
|
Los
Angeles Airport Marriott
|
|
5.300%
|
|
Fixed
|
|
82,600
|
|
July
2015
|
|
Marriott
Frenchman's Reef
|
5.440%
|
|
Fixed
|
|
59,880
|
|
August
2015
|
|
Renaissance
Worthington
|
|
5.400%
|
|
Fixed
|
|
55,746
|
|
July
2015
|
|
Orlando
Airport Marriott
|
|
5.680%
|
|
Fixed
|
|
58,520
|
|
January
2016
|
|
Chicago
Marriott Downtown
|
|
5.975%
|
|
Fixed
|
|
215,027
|
|
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
|
|
99,415
|
|
May
2021
|
|
JW
Marriott Denver Cherry Creek
|
|
6.470%
|
|
Fixed
|
|
42,085
|
|
July
2015
|
|
Courtyard
Denver Downtown
|
|
6.260%
|
|
Fixed
|
|
27,140
|
|
August
2012
|
|
Debt
premiums (1)
|
|
|
|
|
|
1,653
|
|
|
|
Total
mortgage debt
|
|
|
|
|
|
945,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior
Unsecured Credit Facility
|
|
LIBOR
+ 3.00
|
|
Variable
|
|
130,000
|
|
August
2014
|
|
Total
Debt
|
|
|
|
$
1,075,888
|
|
|
|
(1)
The debt premiums are purchase accounting adjustments to record the
debt on the JW Marriott Denver Cherry Creek and Courtyard Denver
Downtown at their respective acquisition date fair values. The premiums
will be amortized over the life of the loans into interest expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma Operating Statistics – Third Quarter (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
Occupancy
|
|
RevPAR
|
|
Hotel
Adjusted EBITDA Margin
|
|
|
|
3Q 2011
|
3Q
2010
|
B/(W)
|
|
3Q 2011
|
3Q
2010
|
B/(W)
|
|
3Q 2011
|
3Q
2010
|
B/(W)
|
|
3Q 2011
|
3Q
2010
|
B/(W)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta
Alpharetta
|
|
$
133.08
|
$
117.07
|
13.7%
|
|
67.2%
|
69.0%
|
(1.8%)
|
|
$ 89.46
|
$ 80.72
|
10.8%
|
|
26.65%
|
22.55%
|
410 bps
|
|
Westin
Atlanta North (2)
|
|
$
106.95
|
$
102.37
|
4.5%
|
|
76.2%
|
72.0%
|
4.2%
|
|
$ 81.44
|
$ 73.72
|
10.5%
|
|
14.10%
|
13.43%
|
67 bps
|
|
Atlanta
Waverly
|
|
$
125.83
|
$
120.96
|
4.0%
|
|
70.7%
|
63.7%
|
7.0%
|
|
$ 88.96
|
$ 77.04
|
15.5%
|
|
24.24%
|
47.07%
|
-2283
bps
|
|
Renaissance
Austin
|
|
$
132.98
|
$
137.25
|
(3.1%)
|
|
60.3%
|
57.5%
|
2.8%
|
|
$ 80.24
|
$ 78.89
|
1.7%
|
|
20.88%
|
22.79%
|
-191
bps
|
|
Bethesda
Marriott Suites
|
|
$
148.97
|
$
152.06
|
(2.0%)
|
|
61.7%
|
67.6%
|
(5.9%)
|
|
$ 91.94
|
$
102.87
|
(10.6%)
|
|
16.69%
|
20.71%
|
-402
bps
|
|
Boston
Westin (2)
|
|
$
198.48
|
$
184.80
|
7.4%
|
|
83.1%
|
79.9%
|
3.2%
|
|
$
164.90
|
$
147.72
|
11.6%
|
|
28.75%
|
25.37%
|
338 bps
|
|
Renaissance
Charleston
|
|
$
154.80
|
$
151.90
|
1.9%
|
|
86.2%
|
88.7%
|
(2.5%)
|
|
$
133.36
|
$
134.71
|
(1.0%)
|
|
27.41%
|
30.46%
|
-305
bps
|
|
Hilton
Garden Inn Chelsea (2)
|
|
$
207.11
|
$
195.82
|
5.8%
|
|
95.2%
|
93.6%
|
1.6%
|
|
$
197.27
|
$
183.30
|
7.6%
|
|
45.04%
|
40.51%
|
453 bps
|
|
Chicago
Marriott
|
|
$
178.04
|
$
175.41
|
1.5%
|
|
85.6%
|
84.7%
|
0.9%
|
|
$
152.46
|
$
148.52
|
2.7%
|
|
24.78%
|
23.71%
|
107 bps
|
|
Chicago
Conrad (2)
|
|
$
210.88
|
$
198.78
|
6.1%
|
|
93.8%
|
89.4%
|
4.4%
|
|
$
197.82
|
$
177.66
|
11.3%
|
|
37.64%
|
31.85%
|
579 bps
|
|
Courtyard
Denver Downtown (2)
|
|
$
161.38
|
$
151.73
|
6.4%
|
|
91.1%
|
87.1%
|
4.0%
|
|
$
147.02
|
$
132.15
|
11.3%
|
|
47.74%
|
45.50%
|
224 bps
|
|
Courtyard
Fifth Avenue
|
|
$
244.40
|
$
247.56
|
(1.3%)
|
|
90.1%
|
84.7%
|
5.4%
|
|
$
220.19
|
$
209.72
|
5.0%
|
|
25.37%
|
23.72%
|
165 bps
|
|
Courtyard
Midtown East
|
|
$
247.58
|
$
235.92
|
4.9%
|
|
88.7%
|
87.4%
|
1.3%
|
|
$
219.68
|
$
206.26
|
6.5%
|
|
31.49%
|
28.91%
|
258 bps
|
|
Frenchman's
Reef (2)
|
|
$
187.66
|
$
175.16
|
7.1%
|
|
90.7%
|
85.6%
|
5.1%
|
|
$
170.19
|
$
149.90
|
13.5%
|
|
(53.68%)
|
5.01%
|
-5869
bps
|
|
Griffin
Gate Marriott
|
|
$
132.95
|
$
127.74
|
4.1%
|
|
68.3%
|
71.2%
|
(2.9%)
|
|
$ 90.80
|
$ 90.99
|
(0.2%)
|
|
24.84%
|
28.91%
|
-407
bps
|
|
JW
Marriott Denver Cherry Creek (2)
|
|
$
241.65
|
$
227.13
|
6.4%
|
|
78.1%
|
79.0%
|
(0.9%)
|
|
$
188.85
|
$
179.50
|
5.2%
|
|
35.24%
|
31.57%
|
367 bps
|
|
Los
Angeles Airport
|
|
$
103.61
|
$
100.33
|
3.3%
|
|
90.9%
|
85.3%
|
5.6%
|
|
$ 94.15
|
$ 85.59
|
10.0%
|
|
16.02%
|
13.81%
|
221 bps
|
|
Hilton
Minneapolis (2)
|
|
$
150.53
|
$
143.14
|
5.2%
|
|
89.7%
|
84.8%
|
4.9%
|
|
$
135.04
|
$
121.33
|
11.3%
|
|
37.15%
|
35.33%
|
182 bps
|
|
Oak
Brook Hills
|
|
$
116.53
|
$
109.28
|
6.6%
|
|
64.6%
|
61.5%
|
3.1%
|
|
$ 75.26
|
$ 67.25
|
11.9%
|
|
16.45%
|
17.55%
|
-110
bps
|
|
Orlando
Airport Marriott
|
|
$ 88.73
|
$ 86.92
|
2.1%
|
|
68.6%
|
65.1%
|
3.5%
|
|
$ 60.91
|
$ 56.60
|
7.6%
|
|
7.19%
|
7.35%
|
-16 bps
|
|
Salt
Lake City Marriott
|
|
$
129.37
|
$
133.49
|
(3.1%)
|
|
58.2%
|
53.6%
|
4.6%
|
|
$ 75.34
|
$ 71.58
|
5.3%
|
|
25.38%
|
21.81%
|
357 bps
|
|
The
Lodge at Sonoma
|
|
$
245.22
|
$
214.37
|
14.4%
|
|
83.3%
|
86.1%
|
(2.8%)
|
|
$
204.31
|
$
184.52
|
10.7%
|
|
28.13%
|
27.59%
|
54 bps
|
|
Torrance
Marriott South Bay
|
|
$
105.14
|
$
101.60
|
3.5%
|
|
86.5%
|
79.0%
|
7.5%
|
|
$ 90.91
|
$ 80.24
|
13.3%
|
|
28.12%
|
19.55%
|
857 bps
|
|
Vail
Marriott (2)
|
|
$
150.15
|
$
183.45
|
(18.2%)
|
|
71.0%
|
65.7%
|
5.3%
|
|
$
106.56
|
$
120.61
|
(11.6%)
|
|
21.51%
|
23.24%
|
-173
bps
|
|
Radisson
Lexington Hotel New York (2)
|
|
$
195.16
|
$
183.80
|
6.2%
|
|
97.6%
|
97.3%
|
0.3%
|
|
$
190.53
|
$
178.76
|
6.6%
|
|
35.93%
|
40.17%
|
-424
bps
|
|
Renaissance
Worthington
|
|
$
144.24
|
$
156.29
|
(7.7%)
|
|
70.8%
|
54.9%
|
15.9%
|
|
$
102.09
|
$ 85.78
|
19.0%
|
|
20.23%
|
16.52%
|
371 bps
|
|
Total/Weighted
Average
|
|
$
157.92
|
$
154.36
|
2.3%
|
|
80.2%
|
77.1%
|
3.1%
|
|
$
126.72
|
$
119.01
|
6.5%
|
|
25.54%
|
25.43%
|
11 bps
|
|
Comparable
Total/Weighted Avg. (3)
|
|
$
157.41
|
$
153.32
|
2.7%
|
|
80.1%
|
76.7%
|
3.4%
|
|
$
126.05
|
$
117.63
|
7.2%
|
|
27.19%
|
26.75%
|
44 bps
|
|
Post-Sale
Total/Weighted Average (4)
|
|
$
160.46
|
$
156.14
|
2.8%
|
|
82.0%
|
78.5%
|
3.5%
|
|
$
131.53
|
$
122.60
|
7.3%
|
|
27.62%
|
25.92%
|
170 bps
|
|
(1)
The pro forma operating data includes the
operating results for the Company's hotels assuming 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 third quarter and
includes the months of June, July, and August.
(3)
The comparable total excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort from all periods presented due to the extensive
2011 renovation.
(4)
The post-sale total excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort and the three hotels under agreement to be sold
from all periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
133.83
|
$
118.63
|
12.8%
|
|
68.0%
|
67.5%
|
0.5%
|
|
$ 91.00
|
$ 80.07
|
13.7%
|
|
29.97%
|
24.55%
|
542 bps
|
|
Westin
Atlanta North (2)
|
|
$
107.92
|
$
102.40
|
5.4%
|
|
72.3%
|
71.4%
|
0.9%
|
|
$ 78.03
|
$ 73.14
|
6.7%
|
|
14.97%
|
15.00%
|
-3 bps
|
|
Atlanta
Waverly
|
|
$
129.01
|
$
126.66
|
1.9%
|
|
68.2%
|
64.7%
|
3.5%
|
|
$ 88.02
|
$ 81.93
|
7.4%
|
|
23.66%
|
29.65%
|
-599
bps
|
|
Renaissance
Austin
|
|
$
140.88
|
$
141.71
|
(0.6%)
|
|
64.6%
|
61.7%
|
2.9%
|
|
$ 91.01
|
$ 87.46
|
4.1%
|
|
28.14%
|
28.68%
|
-54 bps
|
|
Bethesda
Marriott Suites
|
|
$
167.16
|
$
162.00
|
3.2%
|
|
64.9%
|
67.2%
|
(2.3%)
|
|
$
108.51
|
$
108.83
|
(0.3%)
|
|
25.50%
|
23.89%
|
161 bps
|
|
Boston
Westin (2)
|
|
$
191.18
|
$
186.39
|
2.6%
|
|
71.7%
|
69.6%
|
2.1%
|
|
$
137.00
|
$
129.65
|
5.7%
|
|
23.21%
|
23.54%
|
-33 bps
|
|
Renaissance
Charleston
|
|
$
168.95
|
$
156.39
|
8.0%
|
|
84.8%
|
84.5%
|
0.3%
|
|
$
143.30
|
$
132.07
|
8.5%
|
|
33.13%
|
33.27%
|
-14 bps
|
|
Hilton
Garden Inn Chelsea (2)
|
|
$
195.28
|
$
182.80
|
6.8%
|
|
92.1%
|
90.0%
|
2.1%
|
|
$
179.76
|
$
164.57
|
9.2%
|
|
42.65%
|
39.22%
|
343 bps
|
|
Chicago
Marriott
|
|
$
184.90
|
$
176.48
|
4.8%
|
|
70.5%
|
71.7%
|
(1.2%)
|
|
$
130.28
|
$
126.48
|
3.0%
|
|
20.43%
|
18.63%
|
180 bps
|
|
Chicago
Conrad (2)
|
|
$
187.61
|
$
176.17
|
6.5%
|
|
84.5%
|
77.7%
|
6.8%
|
|
$
158.54
|
$
136.93
|
15.8%
|
|
27.78%
|
21.88%
|
590 bps
|
|
Courtyard
Denver Downtown (2)
|
|
$
152.68
|
$
146.22
|
4.4%
|
|
79.9%
|
82.1%
|
(2.2%)
|
|
$
121.96
|
$
120.04
|
1.6%
|
|
43.20%
|
42.54%
|
66 bps
|
|
Courtyard
Fifth Avenue
|
|
$
243.78
|
$
235.93
|
3.3%
|
|
85.8%
|
86.1%
|
(0.3%)
|
|
$
209.19
|
$
203.18
|
3.0%
|
|
24.78%
|
24.29%
|
49 bps
|
|
Courtyard
Midtown East
|
|
$
243.92
|
$
221.64
|
10.1%
|
|
83.2%
|
85.6%
|
(2.4%)
|
|
$
203.01
|
$
189.62
|
7.1%
|
|
30.34%
|
28.40%
|
194 bps
|
|
Frenchman's
Reef (2)
|
|
$
239.39
|
$
232.26
|
3.1%
|
|
83.7%
|
84.8%
|
(1.1%)
|
|
$
200.46
|
$
197.00
|
1.8%
|
|
8.75%
|
25.80%
|
-1705
bps
|
|
Griffin
Gate Marriott
|
|
$
130.04
|
$
124.17
|
4.7%
|
|
61.0%
|
63.7%
|
(2.7%)
|
|
$ 79.33
|
$ 79.11
|
0.3%
|
|
22.74%
|
22.62%
|
12 bps
|
|
JW
Marriott Denver Cherry Creek (2)
|
|
$
231.79
|
$
215.38
|
7.6%
|
|
71.7%
|
73.9%
|
(2.2%)
|
|
$
166.20
|
$
159.07
|
4.5%
|
|
28.53%
|
27.21%
|
132 bps
|
|
Los
Angeles Airport
|
|
$
104.64
|
$
102.44
|
2.1%
|
|
86.3%
|
82.4%
|
3.9%
|
|
$ 90.29
|
$ 84.45
|
6.9%
|
|
17.65%
|
15.65%
|
200 bps
|
|
Hilton
Minneapolis (2)
|
|
$
139.47
|
$
131.83
|
5.8%
|
|
76.3%
|
74.6%
|
1.7%
|
|
$
106.41
|
$ 98.31
|
8.2%
|
|
30.41%
|
28.85%
|
156 bps
|
|
Oak
Brook Hills
|
|
$
113.64
|
$
106.83
|
6.4%
|
|
54.5%
|
52.6%
|
1.9%
|
|
$ 61.87
|
$ 56.22
|
10.0%
|
|
8.61%
|
10.09%
|
-148
bps
|
|
Orlando
Airport Marriott
|
|
$ 99.90
|
$ 97.65
|
2.3%
|
|
77.2%
|
71.6%
|
5.6%
|
|
$ 77.12
|
$ 69.90
|
10.3%
|
|
22.05%
|
19.34%
|
271 bps
|
|
Salt
Lake City Marriott
|
|
$
127.22
|
$
134.00
|
(5.1%)
|
|
60.0%
|
54.0%
|
6.0%
|
|
$ 76.28
|
$ 72.32
|
5.5%
|
|
25.45%
|
26.10%
|
-65 bps
|
|
The
Lodge at Sonoma
|
|
$
211.60
|
$
192.22
|
10.1%
|
|
70.9%
|
68.1%
|
2.8%
|
|
$
150.06
|
$
130.99
|
14.6%
|
|
15.29%
|
14.36%
|
93 bps
|
|
Torrance
Marriott South Bay
|
|
$
105.61
|
$
100.73
|
4.8%
|
|
81.1%
|
81.4%
|
(0.3%)
|
|
$ 85.64
|
$ 81.96
|
4.5%
|
|
24.91%
|
19.76%
|
515 bps
|
|
Vail
Marriott (2)
|
|
$
226.25
|
$
232.48
|
(2.7%)
|
|
65.8%
|
65.8%
|
0.0%
|
|
$
148.94
|
$
152.94
|
(2.6%)
|
|
30.21%
|
32.46%
|
-225
bps
|
|
Radisson
Lexington Hotel New York (2)
|
|
$
180.19
|
$
170.37
|
5.8%
|
|
95.4%
|
94.4%
|
1.0%
|
|
$
171.84
|
$
160.80
|
6.9%
|
|
31.65%
|
33.43%
|
-178
bps
|
|
Renaissance
Worthington
|
|
$
159.30
|
$
158.77
|
0.3%
|
|
71.5%
|
66.2%
|
5.3%
|
|
$
113.88
|
$
105.07
|
8.4%
|
|
30.66%
|
29.87%
|
79 bps
|
|
Total/Weighted
Average
|
|
$
158.08
|
$
153.71
|
2.8%
|
|
74.6%
|
73.2%
|
1.4%
|
|
$
117.96
|
$
112.50
|
4.9%
|
|
24.22%
|
24.46%
|
-24 bps
|
|
Comparable
Total/Weighted Avg. (3)
|
|
$
155.55
|
$
149.95
|
3.7%
|
|
74.4%
|
72.7%
|
1.7%
|
|
$
115.68
|
$
109.03
|
6.1%
|
|
25.01%
|
24.35%
|
66 bps
|
|
Post-Sale
Total/Weighted Average (4)
|
|
$
158.32
|
$
152.31
|
3.9%
|
|
75.8%
|
74.1%
|
1.7%
|
|
$
119.93
|
$
112.82
|
6.3%
|
|
25.01%
|
23.93%
|
108 bps
|
|
(1)
The pro forma operating data includes the operating results for the
Company's hotels assuming 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 August.
(3)
The comparable total excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort from all periods presented due to the extensive
2011 renovation.
(4)
The post-sale total excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort and the three hotels under agreement to be sold
from all periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma Hotel Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2011 (1)
|
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
|
|
|
Total
Revenues
|
|
Net
Income / (Loss)
|
Depreciation
|
Interest
Expense
|
Non-Cash
Adjustments (2)
|
Hotel
Adjusted EBITDA
|
|
Atlanta
Alpharetta
|
|
$ 3,347
|
|
$ 603
|
$ 289
|
$ -
|
$ -
|
$ 892
|
|
Westin
Atlanta North (3)
|
|
$ 4,149
|
|
$ 150
|
$ 435
|
$ -
|
$ -
|
$ 585
|
|
Atlanta
Waverly
|
|
$ 6,946
|
|
$ (647)
|
$ 1,080
|
$ 1,251
|
$ -
|
$ 1,684
|
|
Renaissance
Austin
|
|
$ 5,398
|
|
$ (897)
|
$ 951
|
$ 1,073
|
$ -
|
$ 1,127
|
|
Bethesda
Marriott Suites
|
|
$ 2,978
|
|
$
(1,430)
|
$ 481
|
$ -
|
$ 1,446
|
$ 497
|
|
Boston
Westin (3)
|
|
$
18,809
|
|
$ 2,424
|
$ 2,866
|
$ -
|
$ 117
|
$ 5,407
|
|
Renaissance
Charleston
|
|
$ 2,255
|
|
$ 306
|
$ 341
|
$ -
|
$ (29)
|
$ 618
|
|
Hilton
Garden Inn Chelsea (3)
|
|
$ 3,146
|
|
$ 981
|
$ 436
|
$ -
|
$ -
|
$ 1,417
|
|
Chicago
Marriott
|
|
$
22,299
|
|
$ (155)
|
$ 2,956
|
$ 3,090
|
$ (365)
|
$ 5,526
|
|
Chicago
Conrad (3)
|
|
$ 7,717
|
|
$ 1,760
|
$ 1,145
|
$ -
|
$ -
|
$ 2,905
|
|
Courtyard
Denver Downtown (3)
|
|
$ 2,564
|
|
$ 625
|
$ 264
|
$ 335
|
$ -
|
$ 1,224
|
|
Courtyard
Fifth Avenue
|
|
$ 3,492
|
|
$ (418)
|
$ 439
|
$ 817
|
$ 48
|
$ 886
|
|
Courtyard
Midtown East
|
|
$ 6,017
|
|
$ 447
|
$ 531
|
$ 917
|
$ -
|
$ 1,895
|
|
Frenchman's
Reef (3)
|
|
$ 3,694
|
|
$
(3,540)
|
$ 971
|
$ 586
|
$ -
|
$
(1,983)
|
|
Griffin
Gate Marriott
|
|
$ 5,668
|
|
$ 650
|
$ 759
|
$ -
|
$ (1)
|
$ 1,408
|
|
JW
Marriott Denver Cherry Creek (3)
|
|
$ 5,425
|
|
$ 920
|
$ 418
|
$ 574
|
$ -
|
$ 1,912
|
|
Los
Angeles Airport
|
|
$
12,394
|
|
$ (269)
|
$ 1,195
|
$ 1,060
|
$ -
|
$ 1,986
|
|
Minneapolis
Hilton (3)
|
|
$
15,402
|
|
$ 2,885
|
$ 1,698
|
$ 1,290
|
$ (151)
|
$ 5,722
|
|
Oak
Brook Hills
|
|
$ 5,770
|
|
$ 92
|
$ 732
|
$ -
|
$ 125
|
$ 949
|
|
Orlando
Airport Marriott
|
|
$ 3,449
|
|
$
(1,302)
|
$ 751
|
$ 799
|
$ -
|
$ 248
|
|
Salt
Lake City Marriott
|
|
$ 4,744
|
|
$ 165
|
$ 629
|
$ 410
|
$ -
|
$ 1,204
|
|
The
Lodge at Sonoma
|
|
$ 4,814
|
|
$ 1,032
|
$ 322
|
$ -
|
$ -
|
$ 1,354
|
|
Torrance
Marriott South Bay
|
|
$ 5,387
|
|
$ 784
|
$ 731
|
$ -
|
$ -
|
$ 1,515
|
|
Vail
Marriott (3)
|
|
$ 5,375
|
|
$ 644
|
$ 512
|
$ -
|
$ -
|
$ 1,156
|
|
Radisson
Lexington Hotel New York (3)
|
|
$
13,149
|
|
$ 2,334
|
$ 2,354
|
$ 3
|
$ 33
|
$ 4,724
|
|
Renaissance
Worthington
|
|
$ 6,020
|
|
$ (140)
|
$ 626
|
$ 729
|
$ 3
|
$ 1,218
|
|
Total
|
|
$
180,408
|
|
$ 8,004
|
$
23,912
|
$
12,934
|
$ 1,226
|
$
46,068
|
|
Comparable
Total (4)
|
|
$
176,714
|
|
$
11,544
|
$
22,941
|
$
12,348
|
$ 1,226
|
$
48,051
|
|
Post-Sale
Total (5)
|
|
$
158,702
|
|
$
12,438
|
$
20,151
|
$
10,024
|
$ 1,227
|
$
43,832
|
|
(1)
The pro forma operating data includes the
operating results for the Company's hotels assuming 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 third quarter
and include the months of June, July, and August.
(4)
The comparable total excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort due to the extensive 2011 renovation.
(5)
The post-sale total excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort and the three hotels under agreement to be sold.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma Hotel Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2010 (1)
|
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
|
|
|
Total
Revenues
|
|
Net
Income / (Loss)
|
Depreciation
|
Interest
Expense
|
Non-Cash
Adjustments (2)
|
Hotel
Adjusted EBITDA
|
|
Atlanta
Alpharetta
|
|
$ 3,060
|
|
$ 404
|
$ 286
|
$ -
|
$ -
|
$ 690
|
|
Westin
Atlanta North (3)
|
|
$ 3,931
|
|
$ 96
|
$ 432
|
$ -
|
$ -
|
$ 528
|
|
Atlanta
Waverly
|
|
$ 6,662
|
|
$ 818
|
$ 1,066
|
$ 1,252
|
$ -
|
$ 3,136
|
|
Renaissance
Austin
|
|
$ 5,982
|
|
$ (666)
|
$ 954
|
$ 1,075
|
$ -
|
$ 1,363
|
|
Bethesda
Marriott Suites
|
|
$ 3,197
|
|
$
(1,292)
|
$ 503
|
$ -
|
$ 1,451
|
$ 662
|
|
Boston
Westin (3)
|
|
$
16,170
|
|
$ 1,092
|
$ 2,894
|
$ -
|
$ 117
|
$ 4,103
|
|
Renaissance
Charleston
|
|
$ 2,226
|
|
$ 346
|
$ 361
|
$ -
|
$ (29)
|
$ 678
|
|
Hilton
Garden Inn Chelsea (3)
|
|
$ 2,930
|
|
$ 683
|
$ 504
|
$ -
|
$ -
|
$ 1,187
|
|
Chicago
Marriott
|
|
$
21,634
|
|
$
(1,029)
|
$ 3,444
|
$ 3,079
|
$ (365)
|
$ 5,129
|
|
Chicago
Conrad (3)
|
|
$ 7,096
|
|
$ 1,152
|
$ 1,108
|
$ -
|
$ -
|
$ 2,260
|
|
Courtyard
Denver Downtown (3)
|
|
$ 2,299
|
|
$ 425
|
$ 280
|
$ 341
|
$ -
|
$ 1,046
|
|
Courtyard
Fifth Avenue
|
|
$ 3,288
|
|
$ (504)
|
$ 437
|
$ 799
|
$ 48
|
$ 780
|
|
Courtyard
Midtown East
|
|
$ 5,597
|
|
$ 183
|
$ 522
|
$ 913
|
$ -
|
$ 1,618
|
|
Frenchman's
Reef (3)
|
|
$
10,789
|
|
$
(3,043)
|
$ 1,402
|
$ 791
|
$ 1,391
|
$ 541
|
|
Griffin
Gate Marriott
|
|
$ 6,046
|
|
$ 998
|
$ 751
|
$ -
|
$ (1)
|
$ 1,748
|
|
JW
Marriott Denver Cherry Creek (3)
|
|
$ 5,242
|
|
$ 650
|
$ 420
|
$ 585
|
$ -
|
$ 1,655
|
|
Los
Angeles Airport
|
|
$
11,329
|
|
$ (796)
|
$ 1,324
|
$ 1,036
|
$ -
|
$ 1,564
|
|
Minneapolis
Hilton (3)
|
|
$
13,965
|
|
$ 3,535
|
$ 1,662
|
$ -
|
$ (263)
|
$ 4,934
|
|
Oak
Brook Hills
|
|
$ 5,691
|
|
$ 128
|
$ 746
|
$ -
|
$ 125
|
$ 999
|
|
Orlando
Airport Marriott
|
|
$ 3,238
|
|
$
(1,297)
|
$ 750
|
$ 785
|
$ -
|
$ 238
|
|
Salt
Lake City Marriott
|
|
$ 4,420
|
|
$ (169)
|
$ 714
|
$ 419
|
$ -
|
$ 964
|
|
The
Lodge at Sonoma
|
|
$ 4,552
|
|
$ 932
|
$ 324
|
$ -
|
$ -
|
$ 1,256
|
|
Torrance
Marriott South Bay
|
|
$ 4,492
|
|
$ 125
|
$ 753
|
$ -
|
$ -
|
$ 878
|
|
Vail
Marriott (3)
|
|
$ 5,835
|
|
$ 861
|
$ 495
|
$ -
|
$ -
|
$ 1,356
|
|
Radisson
Lexington Hotel New York (3)
|
|
$
12,414
|
|
$ 2,595
|
$ 2,355
|
$ 3
|
$ 33
|
$ 4,986
|
|
Renaissance
Worthington
|
|
$ 5,374
|
|
$ (462)
|
$ 625
|
$ 722
|
$ 3
|
$ 888
|
|
Total
|
|
$
177,459
|
|
$ 5,765
|
$
25,112
|
$
11,800
|
$ 2,510
|
$
45,133
|
|
Comparable
Total (4)
|
|
$
166,670
|
|
$ 8,808
|
$
23,710
|
$
11,009
|
$ 1,119
|
$
44,592
|
|
Post-Sale
Total (5)
|
|
$
147,980
|
|
$ 7,658
|
$
20,939
|
$ 8,682
|
$ 1,120
|
$
38,345
|
|
(1)
The pro forma operating data includes the operating results for the
Company's hotels assuming 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 third quarter
and includes the months of June, July and August.
(4)
The comparable total excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort due to the extensive 2011 renovation.
(5)
The post-sale total excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort and the three hotels under agreement to be sold.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
10,588
|
|
$ 2,311
|
$ 862
|
$ -
|
$ -
|
$ 3,173
|
|
Westin
Atlanta North (3)
|
|
$
10,869
|
|
$ 349
|
$ 1,278
|
$ -
|
$ -
|
$ 1,627
|
|
Atlanta
Waverly
|
|
$
20,948
|
|
$
(2,030)
|
$ 3,232
|
$ 3,754
|
$ -
|
$ 4,956
|
|
Renaissance
Austin
|
|
$
19,473
|
|
$ (603)
|
$ 2,860
|
$ 3,222
|
$ -
|
$ 5,479
|
|
Bethesda
Marriott Suites
|
|
$
10,332
|
|
$
(3,160)
|
$ 1,452
|
$ -
|
$ 4,343
|
$ 2,635
|
|
Boston
Westin (3)
|
|
$
43,761
|
|
$ 1,168
|
$ 8,637
|
$ -
|
$ 351
|
$
10,156
|
|
Renaissance
Charleston
|
|
$ 7,307
|
|
$ 1,505
|
$ 1,003
|
$ -
|
$ (87)
|
$ 2,421
|
|
Hilton
Garden Inn Chelsea (3)
|
|
$ 7,615
|
|
$ 1,966
|
$ 1,282
|
$ -
|
$ -
|
$ 3,248
|
|
Chicago
Marriott
|
|
$
58,405
|
|
$
(5,386)
|
$ 9,218
|
$ 9,198
|
$
(1,095)
|
$
11,935
|
|
Chicago
Conrad (3)
|
|
$
15,952
|
|
$ 1,015
|
$ 3,417
|
$ -
|
$ -
|
$ 4,432
|
|
Courtyard
Denver Downtown (3)
|
|
$ 5,673
|
|
$ 622
|
$ 824
|
$ 1,005
|
$ -
|
$ 2,451
|
|
Courtyard
Fifth Avenue
|
|
$ 9,958
|
|
$
(1,405)
|
$ 1,316
|
$ 2,414
|
$ 143
|
$ 2,468
|
|
Courtyard
Midtown East
|
|
$
16,677
|
|
$ 709
|
$ 1,593
|
$ 2,757
|
$ -
|
$ 5,059
|
|
Frenchman's
Reef (3)
|
|
$
24,100
|
|
$
(2,883)
|
$ 2,902
|
$ 2,089
|
$ -
|
$ 2,108
|
|
Griffin
Gate Marriott
|
|
$
15,441
|
|
$ 1,220
|
$ 2,295
|
$ -
|
$ (3)
|
$ 3,512
|
|
JW
Marriott Denver Cherry Creek (3)
|
|
$
12,727
|
|
$ 652
|
$ 1,258
|
$ 1,721
|
$ -
|
$ 3,631
|
|
Los
Angeles Airport
|
|
$
36,999
|
|
$ (620)
|
$ 4,020
|
$ 3,131
|
$ -
|
$ 6,531
|
|
Minneapolis
Hilton (3)
|
|
$
33,980
|
|
$ 3,463
|
$ 5,074
|
$ 2,273
|
$ (475)
|
$
10,335
|
|
Oak
Brook Hills
|
|
$
13,955
|
|
$
(1,382)
|
$ 2,209
|
$ -
|
$ 375
|
$ 1,202
|
|
Orlando
Airport Marriott
|
|
$
13,857
|
|
$
(1,571)
|
$ 2,260
|
$ 2,367
|
$ -
|
$ 3,056
|
|
Salt
Lake City Marriott
|
|
$
14,572
|
|
$ 601
|
$ 1,885
|
$ 1,223
|
$ -
|
$ 3,709
|
|
The
Lodge at Sonoma
|
|
$
11,411
|
|
$ 772
|
$ 973
|
$ -
|
$ -
|
$ 1,745
|
|
Torrance
Marriott South Bay
|
|
$
15,057
|
|
$ 1,547
|
$ 2,204
|
$ -
|
$ -
|
$ 3,751
|
|
Vail
Marriott (3)
|
|
$
17,115
|
|
$ 3,642
|
$ 1,529
|
$ -
|
$ -
|
$ 5,171
|
|
Radisson
Lexington Hotel New York (3)
|
|
$
31,490
|
|
$ 2,792
|
$ 7,064
|
$ 9
|
$ 103
|
$ 9,968
|
|
Renaissance
Worthington
|
|
$
21,918
|
|
$ 2,673
|
$ 1,877
|
$ 2,161
|
$ 8
|
$ 6,719
|
|
Total
|
|
$
500,180
|
|
$ 7,967
|
$
72,524
|
$
37,324
|
$ 3,663
|
$
121,155
|
|
Comparable
Total (4)
|
|
$
476,080
|
|
$
10,850
|
$
69,622
|
$
35,235
|
$ 3,663
|
$
119,047
|
|
Post-Sale
Total (5)
|
|
$
420,218
|
|
$
12,263
|
$
61,235
|
$
28,259
|
$ 3,666
|
$
105,100
|
|
(1)
The pro forma operating data includes the operating results for the
Company's hotels assuming 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 August.
(4)
The comparable total excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort due to the extensive 2011 renovation.
(5)
The post-sale total excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort and the three hotels under agreement to be sold.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$ 9,413
|
|
$ 1,453
|
$ 858
|
$ -
|
$ -
|
$ 2,311
|
|
Westin
Atlanta North (3)
|
|
$
10,511
|
|
$ 311
|
$ 1,266
|
$ -
|
$ -
|
$ 1,577
|
|
Atlanta
Waverly
|
|
$
20,622
|
|
$ (810)
|
$ 3,155
|
$ 3,770
|
$ -
|
$ 6,115
|
|
Renaissance
Austin
|
|
$
19,928
|
|
$ (381)
|
$ 2,865
|
$ 3,232
|
$ -
|
$ 5,716
|
|
Bethesda
Marriott Suites
|
|
$ 9,988
|
|
$
(3,505)
|
$ 1,523
|
$ -
|
$ 4,368
|
$ 2,386
|
|
Boston
Westin (3)
|
|
$
42,536
|
|
$ 994
|
$ 8,670
|
$ -
|
$ 351
|
$
10,015
|
|
Renaissance
Charleston
|
|
$ 6,839
|
|
$ 1,233
|
$ 1,129
|
$ -
|
$ (87)
|
$ 2,275
|
|
Hilton
Garden Inn Chelsea (3)
|
|
$ 6,978
|
|
$ 1,225
|
$ 1,512
|
$ -
|
$ -
|
$ 2,737
|
|
Chicago
Marriott
|
|
$
57,113
|
|
$
(7,190)
|
$ 9,641
|
$ 9,285
|
$
(1,095)
|
$
10,641
|
|
Chicago
Conrad (3)
|
|
$
14,139
|
|
$ (225)
|
$ 3,319
|
$ -
|
$ -
|
$ 3,094
|
|
Courtyard
Denver Downtown (3)
|
|
$ 5,573
|
|
$ 510
|
$ 839
|
$ 1,022
|
$ -
|
$ 2,371
|
|
Courtyard
Fifth Avenue
|
|
$ 9,630
|
|
$
(1,521)
|
$ 1,310
|
$ 2,405
|
$ 145
|
$ 2,339
|
|
Courtyard
Midtown East
|
|
$
15,590
|
|
$ 79
|
$ 1,561
|
$ 2,787
|
$ -
|
$ 4,427
|
|
Frenchman's
Reef (3)
|
|
$
37,119
|
|
$ 5,758
|
$ 3,173
|
$ (745)
|
$ 1,391
|
$ 9,577
|
|
Griffin
Gate Marriott
|
|
$
16,051
|
|
$ 1,352
|
$ 2,282
|
$ -
|
$ (3)
|
$ 3,631
|
|
JW
Marriott Denver Cherry Creek (3)
|
|
$
12,128
|
|
$ 285
|
$ 1,260
|
$ 1,755
|
$ -
|
$ 3,300
|
|
Los
Angeles Airport
|
|
$
34,699
|
|
$
(1,624)
|
$ 3,936
|
$ 3,120
|
$ -
|
$ 5,432
|
|
Minneapolis
Hilton (3)
|
|
$
31,472
|
|
$ 4,704
|
$ 5,076
|
$ -
|
$ (700)
|
$ 9,080
|
|
Oak
Brook Hills
|
|
$
14,023
|
|
$
(1,200)
|
$ 2,240
|
$ -
|
$ 375
|
$ 1,415
|
|
Orlando
Airport Marriott
|
|
$
12,874
|
|
$
(2,100)
|
$ 2,226
|
$ 2,364
|
$ -
|
$ 2,490
|
|
Salt
Lake City Marriott
|
|
$
14,350
|
|
$ 327
|
$ 2,145
|
$ 1,274
|
$ -
|
$ 3,746
|
|
The
Lodge at Sonoma
|
|
$
10,287
|
|
$ 509
|
$ 968
|
$ -
|
$ -
|
$ 1,477
|
|
Torrance
Marriott South Bay
|
|
$
13,995
|
|
$ 509
|
$ 2,257
|
$ -
|
$ -
|
$ 2,766
|
|
Vail
Marriott (3)
|
|
$
18,053
|
|
$ 3,943
|
$ 1,917
|
$ -
|
$ -
|
$ 5,860
|
|
Radisson
Lexington Hotel New York (3)
|
|
$
29,617
|
|
$ 2,723
|
$ 7,065
|
$ 9
|
$ 103
|
$ 9,900
|
|
Renaissance
Worthington
|
|
$
21,417
|
|
$ 2,008
|
$ 2,199
|
$ 2,182
|
$ 8
|
$ 6,397
|
|
Total
|
|
$
494,945
|
|
$ 9,367
|
$
74,392
|
$
32,460
|
$ 4,856
|
$
121,045
|
|
Comparable
Total (4)
|
|
$
457,826
|
|
$ 3,609
|
$
71,219
|
$
33,205
|
$ 3,465
|
$
111,468
|
|
Post-Sale
Total (5)
|
|
$
401,225
|
|
$ 3,448
|
$
62,917
|
$
26,203
|
$ 3,468
|
$
96,006
|
|
(1)
The pro forma operating data includes the operating results for the
Company's hotels assuming 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 August.
(4)
The comparable total excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort due to the extensive 2011 renovation.
(5)
The post-sale total excludes the Frenchman's Reef & Morning Star
Marriott Beach Resort and the three hotels under agreement to be sold.
|
|