ALISO
VIEJO, Calif., Sept. 12, 2012 -- Sunstone Hotel Investors, Inc.
(the "Company") (NYSE: SHO) announced today that it has entered into an
agreement to sell the 229-room Doubletree Guest Suites Minneapolis, the
257-room Hilton Del Mar, and the 350-room Marriott Troy ("Three-Hotel
Portfolio") for an adjusted gross sale price of $107.1 million
($128,100/key), including the assumption of approximately $75.6 million
in mortgage debt and $2.1 million of deferred management fees. The
Company also announced that it has completed the previously announced
sale of the 284-room Marriott Del Mar for $66.0 million ($232,400/key),
which included the assumption of $47.1 million in mortgage debt.
Additionally, the Company announced that it has amended its $150.0
million revolving credit facility, resulting in the elimination of the
facility's LIBOR floor, a reduction in the facility's effective
interest rate, and an extension of the facility's term to November 2015.
Ken Cruse, President and CEO, stated, "The Three-Hotel Portfolio sale
we announced today, coupled with our previously announced sale of the
Marriott Del Mar, are solid steps toward our stated corporate goals of
improving our portfolio quality while strengthening our balance sheet.
For the trailing 12 months ended June 30, 2012, the four disposition
hotels generated combined RevPAR of $91.54 and EBITDA per key of
$12,400, both of which are more than 30% below our portfolio average.
By selling these four relatively small, highly-levered, lower RevPAR
hotels we will reduce our overall indebtedness by approximately $122.7
million, increase our cash position by approximately $48.3 million,
improve our asset concentrations in key growth markets and increase our
overall portfolio RevPAR and EBITDA per key. While we may look to
advance our portfolio and credit objectives through additional asset
sales in the future, the transactions announced today mark the
completion of our planned 2012 dispositions program."
Pending Sale of the Three-Hotel
Portfolio
The $107.1 million adjusted gross sale price for the Three-Hotel
Portfolio includes $75.6 million in mortgage debt and approximately
$2.1 million of deferred management fees, which will be assumed by the
buyer. The adjusted gross sale price represents a 10.2x multiple on
2012 forecasted hotel EBITDA of $10.5 million and an 8.2%
capitalization rate on 2012 forecasted hotel net operating income. The
Company expects to receive gross proceeds, before customary transaction
costs and credits, of approximately $29.4 million. The transaction,
subject to customary closing conditions, including the purchaser's
assumption of existing mortgages, is expected to close during the
third-quarter 2012.
Completed Sale of the Marriott
Del Mar
On August 23, 2012, the Company closed on the previously announced sale
of the 284-room Marriott Del Mar located in Del Mar, California. The
gross sale price of $66.0 million ($232,400 per key) included the
assumption of the existing mortgage secured by the hotel which totaled
$47.1 million on the date of the sale. The gross sale price represents
a 13.7x multiple on 2012 forecasted hotel EBITDA of $4.8 million and a
5.9% capitalization rate on 2012 forecasted hotel net operating income.
The Company received gross proceeds, before customary transaction costs
and credits, of approximately $18.9 million from the sale of the
Marriott Del Mar.
Combined Impact of the 2012
Dispositions Program
The $173.1 million ($154,600/key) combined adjusted gross sale price
for the four hotels equates to an 11.3x multiple on 2012 forecasted
hotel EBITDA of $15.3 million and a 7.3% capitalization rate on 2012
forecasted hotel net operating income.
The combined dispositions will have the following effects on the
Company:
- Indebtedness will be reduced by approximately $122.7 million.
- Average interest rate will be reduced by approximately 4
bps to 4.97%.
- Average term to maturity will be increased by approximately
0.3 years to 5.5 years, as the mortgages associated with the four
hotels mature in 2015 and 2016.
- Liquidity will be increased by approximately $48.3 million.
- Average hotel size will increase by 17 keys to 428.
- Q2 2012 trailing twelve month Comparable Hotel RevPAR would
have been $131.25, or approximately $3.00 higher than reported.
- Q2 2012 trailing twelve month portfolio EBITDA per key
would have been $19,400, or approximately $600 higher than reported.
The impact of the sale of the Marriott Del Mar was included in the
Company's third quarter and full year guidance provided on August 2,
2012. The pending sale of the Three-Hotel Portfolio, assuming a third
quarter 2012 closing date, is expected to reduce third-quarter 2012
Adjusted EBITDA by $0.3 million and Adjusted FFO by $0.2 million. Both
Adjusted FFO per diluted share and net income for the third quarter
2012 are not expected to be affected by the pending sale of the
Three-Hotel Portfolio. The pending sale of the Three-Hotel Portfolio is
expected to decrease full-year 2012 Adjusted EBITDA by $3.0 million,
Adjusted FFO by $1.8 million, Adjusted FFO per diluted share by $0.01
and net income by $0.1 million. Third-quarter and full-year Adjusted
EBITDA, Adjusted FFO, Adjusted FFO per diluted share and net income
impact excludes gain/loss on sale and one-time closing costs resulting
from the transaction.
Amended and Restated Credit
Facility
The Company has amended and restated its $150.0 million
senior unsecured revolving credit facility, which was scheduled to
mature in November 2013. The pricing on the amended revolving credit
facility has been significantly reduced and the 1% LIBOR floor has been
eliminated. The maturity of the credit facility has been extended to
November 2015 with an option to extend to November 2016. The amended
credit facility's interest rate is based on a pricing grid with a range
of 175 to 350 basis points, which represents a reduction from the
previous grid that ranged from 325 to 425 basis points over LIBOR
depending on the Company's leverage ratio. The credit facility also
includes an accordion option that allows the Company to request
additional lender commitments up to a total of $350.0 million. The
credit facility currently has no outstanding borrowings; however, the
Company has $3.8 million in outstanding irrevocable letters of credit
backed by the credit facility.
John V. Arabia, Chief Financial Officer, stated, "We are pleased with
the strength of our lender relationships and our ability to extend
term, lower pricing and establish more borrower-friendly covenants.
While our long-term goal is to further reduce leverage, the amended
facility provides well-priced additional liquidity and the ability to
increase the commitment amount in the future."
About Sunstone Hotel Investors:
Sunstone Hotel Investors, Inc. ("Sunstone") is a lodging
real estate investment trust ("REIT") that, adjusted for the
transactions noted herein, has interests in 30 hotels comprised of
12,854 rooms. Sunstone's hotels are primarily in the upper upscale
segment and are generally operated under nationally recognized brands,
such as Marriott, Hilton, Hyatt, Fairmont, and Sheraton. For further
information, please visit Sunstone's website at www.sunstonehotels.com.
Sunstone's mission is to create meaningful value for our stockholders
by becoming the premier hotel owner. Our values include transparency,
trust, ethical conduct, communication and discipline. We seek to employ
a balanced, cycle-appropriate corporate strategy that encompasses the
following:
- Proactive portfolio management;
- Intensive asset management;
- Disciplined external growth; and
- Measured balance sheet improvement.
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 "anticipate," "believe," "continue," "could,"
"estimate," "expect," "intend," "may," "plan," "predict," "project,"
"should," "will" 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 that
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: volatility in the debt or equity
markets affecting our ability to acquire or sell hotel assets;
international, national, and local economic and business conditions,
including the likelihood of a prolonged U.S. recession; the ability to
maintain sufficient liquidity and our access to capital markets;
potential terrorist attacks, which would affect occupancy rates at our
hotels and the demand for hotel products and services; operating risks
associated with the hotel business; risks associated with the level of
our indebtedness and our ability to meet covenants in our debt and
equity agreements; relationships with property managers and
franchisors; our ability to maintain our properties in a first-class
manner, including meeting capital expenditure requirements; our 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; our ability to identify,
successfully compete for and complete acquisitions; the performance of
hotels after they are acquired; necessary capital expenditures and our
ability to fund them and complete them with minimum disruption; our
ability to continue to satisfy complex rules in order for us to qualify
as a REIT for federal income tax purposes; and other risks and
uncertainties associated with our business described 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 forward-looking information in this release
is as of September 10, 2012, 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.
<> Non-GAAP Financial Measures:
We present the following non-GAAP financial measures that
we believe are useful to investors as key measures of our operating
performance: Earnings Before Interest Expense, Taxes, Depreciation and
Amortization, or EBITDA; Adjusted EBITDA (as defined below); Funds From
Operations, or FFO; Adjusted FFO (as defined below); and hotel EBITDA
and hotel EBITDA margin.
>
EBITDA represents net income (loss) excluding: non-controlling
interests; interest expense; provision for income taxes, including
income taxes applicable to sale of assets; and depreciation and
amortization. In addition, we have presented Adjusted EBITDA, which
excludes: amortization of deferred stock compensation; the impact of
any gain or loss from asset sales; impairment charges; and any other
adjustments we have identified in this release. We believe EBITDA and
Adjusted EBITDA are useful to investors in evaluating our operating
performance because these measures help investors evaluate and compare
the results of our operations from period to period by removing the
impact of our capital structure (primarily interest expense) and our
asset base (primarily depreciation and amortization) from our operating
results. We also use EBITDA and Adjusted EBITDA as measures in
determining the value of hotel acquisitions and dispositions. We
believe hotel EBITDA and hotel EBITDA margin are also useful to
investors in evaluating our property-level operating performance.
We compute FFO in accordance with standards established by the National
Association of Real Estate Investment Trusts, or NAREIT, an industry
trade group. The Board of Governors of NAREIT in its March 1995 White
Paper (as clarified in November 1999 and April 2002) defines FFO to
mean net income (loss) (computed in accordance with GAAP), excluding
non-controlling interests, gains and losses from sales of property,
plus real estate-related depreciation and amortization (excluding
amortization of deferred financing costs) and real estate-related
impairment losses, and after adjustment for unconsolidated partnerships
and joint ventures. We also present Adjusted FFO, which excludes
penalties, written-off deferred financing costs, non-real
estate-related impairment losses and any other adjustments we have
identified in this release. We believe that the presentation of FFO and
Adjusted FFO provide useful information to investors regarding our
operating performance because they are measures of our operations
without regard to specified non-cash items such as real estate
depreciation and amortization, gain or loss on sale of assets and
certain other items which we believe are not indicative of the
performance of our underlying hotel properties. We believe that these
items are more representative of our asset base and our acquisition and
disposition activities than our ongoing operations. We also use FFO as
one measure in determining our results after taking into account the
impact of our capital structure.
We caution investors that amounts presented in accordance with our
definitions of EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, hotel EBITDA
and hotel EBITDA margin may not be comparable to similar measures
disclosed by other companies, because not all companies calculate these
non-GAAP measures in the same manner. EBITDA, Adjusted EBITDA, FFO,
Adjusted FFO, hotel EBITDA and hotel EBITDA margin should not be
considered as an alternative measure of our net income (loss),
operating performance, cash flow or liquidity. EBITDA, Adjusted EBITDA,
FFO, Adjusted FFO, hotel EBITDA and hotel EBITDA margin may include
funds that may not be available for our discretionary use due to
functional requirements to conserve funds for capital expenditures and
property acquisitions and other commitments and uncertainties. Although
we believe that EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, hotel
EBITDA and hotel EBITDA margin can enhance an investor's understanding
of our results of operations, these non-GAAP financial measures, when
viewed individually, are not necessarily a better indicator of any
trend as compared to GAAP measures such as net income (loss) or cash
flow from operations. In addition, you should be aware that adverse
economic and market conditions may harm our cash flow.
Property-Level
EBITDA Reconciliation
|
2011 -
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Sold Hotels (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
Hotel
|
Less:
|
Equals:
|
|
(In
thousands)
|
Total
|
Net
Income /
|
Other
|
|
|
Hotel
|
EBITDA
|
|
Hotel
Net
|
FFO
|
|
|
Revenues
|
(Loss)
|
Adjustments
(4)
|
Depreciation
|
Interest
Expense
|
EBITDA
|
Margin
|
FF&E
Reserve
|
Operating
Income
|
Contribution
(7)
|
FY 2011
|
$
36,593
|
$ (417)
|
$ -
|
$ 5,019
|
$ 4,273
|
$8,875
|
24.3%
|
$
(1,626)
|
$ 7,249
|
$ 4,602
|
2011
EBITDA Multiple / Cap Rate
|
|
|
|
|
|
12.1x
|
|
|
6.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunstone
2012 Ownership Period (5)
|
$
27,400
|
$ 649
|
$ -
|
$ 3,862
|
$ 2,969
|
$7,480
|
27.3%
|
$
(1,087)
|
$ 6,393
|
$ 4,511
|
|
|
|
|
|
|
|
|
|
|
|
|
FY
2012 (6)
|
$
38,545
|
$ 792
|
$ -
|
$ 5,517
|
$ 4,176
|
$10,485
|
27.2%
|
$
(1,716)
|
$ 8,769
|
$ 6,309
|
2012
EBITDA Multiple / Cap Rate
|
|
|
|
|
|
10.2x
|
|
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marriott
Del Mar (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
Hotel
|
Less:
|
Equals:
|
|
(In
thousands)
|
Total
|
Net
Income /
|
Other
|
|
|
Hotel
|
EBITDA
|
|
Hotel
Net
|
FFO
|
|
|
Revenues
|
(Loss)
|
Adjustments
(4)
|
Depreciation
|
Interest
Expense
|
EBITDA
|
Margin
|
FF&E
Reserve
|
Operating
Income
|
Contribution
(7)
|
FY 2011
|
$
16,896
|
$ (867)
|
$ 30
|
$ 1,477
|
$ 2,768
|
$ 3,408
|
20.2%
|
$ (845)
|
$ 2,563
|
$ 640
|
2011
EBITDA Multiple / Cap Rate
|
|
|
|
|
|
19.4x
|
|
|
3.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunstone
2012 Ownership Period (5)
|
$
12,158
|
$ 628
|
$ 19
|
$ 965
|
$ 1,765
|
$ 3,377
|
27.8%
|
$ (608)
|
$ 2,769
|
$ 1,612
|
|
|
|
|
|
|
|
|
|
|
|
|
FY
2012 (6)
|
$
18,751
|
$ 64
|
$ 28
|
$ 1,978
|
$ 2,744
|
$ 4,814
|
25.7%
|
$ (938)
|
$ 3,876
|
$ 2,070
|
2012
EBITDA Multiple / Cap Rate
|
|
|
|
|
|
13.7x
|
|
|
5.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Four
Sold Hotels (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
Hotel
|
Less:
|
Equals:
|
|
(In
thousands)
|
Total
|
Net
Income /
|
Other
|
|
|
Hotel
|
EBITDA
|
|
Hotel
Net
|
FFO
|
|
|
Revenues
|
(Loss)
|
Adjustments
(4)
|
Depreciation
|
Interest
Expense
|
EBITDA
|
Margin
|
FF&E
Reserve
|
Operating
Income
|
Contribution
(7)
|
FY 2011
|
$
53,489
|
$(1,284)
|
$ 30
|
$ 6,496
|
$ 7,041
|
$
12,283
|
23.0%
|
$
(2,471)
|
$ 9,812
|
$ 5,242
|
2011
EBITDA Multiple / Cap Rate
|
|
|
|
|
|
14.1x
|
|
|
5.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunstone
2012 Ownership Period (5)
|
$
39,558
|
$ 1,277
|
$ 19
|
$ 4,827
|
$ 4,734
|
$
10,857
|
27.4%
|
$
(1,695)
|
$ 9,162
|
$ 6,123
|
|
|
|
|
|
|
|
|
|
|
|
|
FY
2012 (6)
|
$
57,296
|
$ 856
|
$ 28
|
$ 7,495
|
$ 6,920
|
$
15,299
|
26.7%
|
$
(2,654)
|
$
12,645
|
$ 8,379
|
2012
EBITDA Multiple / Cap Rate
|
|
|
|
|
|
11.3x
|
|
|
7.3%
|
|
(1)
|
Three
Sold Hotels include the Doubletree Guest Suites Minneapolis, the Hilton
Del Mar and the Marriott Troy, which are expected to be sold by the
Company in September 2012.
|
(2)
|
Marriott
Del Mar was sold by the Company on August 23, 2012.
|
(3)
|
Four
Sold Hotels include the Doubletree Guest Suites Minneapolis, the Hilton
Del Mar and the Marriott Troy, which are expected to be sold by the
Company in September 2012, and the Marriott Del Mar, which was sold by
the Company on August 23, 2012.
|
(4)
|
Other
Adjustments include the expense recognized related to the amortization
of lease intangibles.
|
(5)
|
Sunstone
2012 Ownership Period for the Doubletree Guest Suites Minneapolis and
the Hilton Del Mar is from January 1, 2012 through September 15, 2012,
and includes actual amounts through July 2012 plus forecast amounts for
August 1, 2012 through September 15, 2012. Sunstone 2012 Ownership
Period for the Marriott Troy includes actual amounts through the end of
Marriott's Period 8 (August 10, 2012), plus forecast amounts for August
11, 2012 through September 15, 2012. Sunstone 2012 Ownership Period for
the Marriott Del Mar includes actual amounts through the end of
Marriott's Period 8 (August 10, 2012), plus forecast amounts up to the
sale date of August 23, 2012.
|
(6)
|
FY
2012 for the Three Sold Hotels includes the Sunstone 2012 Ownership
Periods as noted in Footnote 5, plus forecast amounts for the remainder
of the year. FY 2012 for the Marriott Del Mar includes actual and
forecast results as reported by the Company in its press release dated
June 6, 2012.
|
(7)
|
FFO
Contribution calculated as Hotel EBITDA less Interest Expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33
Hotels (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
Occupancy
|
|
RevPAR
|
|
|
2012
|
2011
|
Variance
|
|
2012
|
2011
|
Variance
|
|
2012
|
2011
|
Variance
|
FY 2011
|
|
$
166.61
|
|
|
|
74.4%
|
|
|
|
$
123.96
|
|
Trailing
12 Months Ended June 30, 2012
|
$
167.99
|
|
|
|
76.2%
|
|
|
|
$
128.01
|
|
|
Six
Months Ended June 30
|
$
167.68
|
$
164.77
|
1.8%
|
|
77.3%
|
73.6%
|
5.0%
|
|
$
129.62
|
$
121.27
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Four
Hotels (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
Occupancy
|
|
RevPAR
|
|
|
2012
|
2011
|
Variance
|
|
2012
|
2011
|
Variance
|
|
2012
|
2011
|
Variance
|
FY 2011
|
|
$
127.20
|
|
|
|
69.3%
|
|
|
|
$ 88.15
|
|
Trailing
12 Months Ended June 30, 2012
|
$
130.03
|
|
|
|
70.4%
|
|
|
|
$ 91.54
|
|
|
Six
Months Ended June 30
|
$
128.84
|
$
122.56
|
5.1%
|
|
68.5%
|
66.1%
|
3.6%
|
|
$ 88.26
|
$ 81.01
|
8.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29
Hotels (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
Occupancy
|
|
RevPAR
|
|
|
2012
|
2011
|
Variance
|
|
2012
|
2011
|
Variance
|
|
2012
|
2011
|
Variance
|
FY 2011
|
|
$
169.89
|
|
|
|
74.8%
|
|
|
|
$
127.08
|
|
Trailing
12 Months Ended June 30, 2012
|
$
171.12
|
|
|
|
76.7%
|
|
|
|
$
131.25
|
|
|
Six
Months Ended June 30
|
$
170.71
|
$
168.12
|
1.5%
|
|
78.1%
|
74.3%
|
5.1%
|
|
$
133.32
|
$
124.91
|
6.7%
|
(1)
|
33
Hotels include the Company's ownership results and prior ownership
results as applicable for the 33 hotels in which the Company has
interests as of August 31, 2012, minus the Hyatt Chicago Magnificent
Mile which is currently experiencing material and prolonged business
interruption due to rebranding and renovation, and plus the Marriott
Del Mar which was sold by the Company on August 23, 2012.
|
(2)
|
Four
Hotels include the Doubletree Guest Suites Minneapolis, the Hilton Del
Mar and the Marriott Troy, which are expected to be sold by the Company
in September 2012, and the Marriott Del Mar, which was sold by the
Company on August 23, 2012.
|
(3)
|
29
Hotels include the Company's ownership results and prior ownership
results as applicable for the 33 hotels in which the Company has
interests as of August 31, 2012, minus the Hyatt Chicago Magnificent
Mile which is currently experiencing material and prolonged business
interruption due to rebranding and renovation, and minus the Doubletree
Guest Suites Minneapolis, the Hilton Del Mar and the Marriott Troy,
which are expected to be sold by the Company in September 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
Debt
Summary
|
(Unaudited
- dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Rate /
|
|
Maturity
|
|
June
30, 2012
|
|
Subsequent
|
|
Post
Sale
|
|
Debt
|
|
Collateral
|
|
Spread
|
|
Date
|
|
Balance
|
|
Events
(1)
|
|
Balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
Rate Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
Mortgage Debt
|
|
Rochester
commercial laundry facility
|
|
9.88%
|
|
6/1/2013
|
|
$ 1,019
|
|
$ -
|
|
$ 1,019
|
|
Secured
Mortgage Debt
|
|
Doubletree
Guest Suites Minneapolis
|
|
5.34%
|
|
5/1/2015
|
|
16,958
|
|
(16,882)
|
|
76
|
|
Secured
Mortgage Debt
|
|
Hilton
Del Mar
|
|
5.34%
|
|
5/1/2015
|
|
24,593
|
|
(24,482)
|
|
111
|
|
Secured
Mortgage Debt
|
|
Marriott
Houston
|
|
5.34%
|
|
5/1/2015
|
|
22,575
|
|
-
|
|
22,575
|
|
Secured
Mortgage Debt
|
|
Marriott
Park City
|
|
5.34%
|
|
5/1/2015
|
|
14,717
|
|
-
|
|
14,717
|
|
Secured
Mortgage Debt
|
|
Marriott
Philadelphia
|
|
5.34%
|
|
5/1/2015
|
|
26,665
|
|
-
|
|
26,665
|
|
Secured
Mortgage Debt
|
|
Marriott
Troy
|
|
5.34%
|
|
5/1/2015
|
|
34,523
|
|
(34,368)
|
|
155
|
|
Secured
Mortgage Debt
|
|
Marriott
Tysons Corner
|
|
5.34%
|
|
5/1/2015
|
|
44,051
|
|
-
|
|
44,051
|
|
Secured
Mortgage Debt
|
|
Kahler
Grand
|
|
5.34%
|
|
5/1/2015
|
|
27,156
|
|
-
|
|
27,156
|
|
Secured
Mortgage Debt
|
|
JW
Marriott New Orleans
|
|
5.45%
|
|
9/1/2015
|
|
41,020
|
|
-
|
|
41,020
|
|
Secured
Mortgage Debt
|
|
Renaissance
Harborplace
|
|
5.13%
|
|
1/1/2016
|
|
97,017
|
|
-
|
|
97,017
|
|
Secured
Mortgage Debt
|
|
Marriott
Del Mar
|
|
5.69%
|
|
1/11/2016
|
|
47,159
|
|
(47,159)
|
|
-
|
|
Secured
Mortgage Debt
|
|
Hilton
North Houston
|
|
5.66%
|
|
3/11/2016
|
|
32,562
|
|
-
|
|
32,562
|
|
Secured
Mortgage Debt
|
|
Renaissance
Orlando at SeaWorld®
|
|
5.52%
|
|
7/1/2016
|
|
81,152
|
|
-
|
|
81,152
|
|
Secured
Mortgage Debt
|
|
Embassy
Suites Chicago
|
|
5.58%
|
|
3/1/2017
|
|
73,183
|
|
-
|
|
73,183
|
|
Secured
Mortgage Debt
|
|
Marriott
Boston Long Wharf
|
|
5.58%
|
|
4/11/2017
|
|
176,000
|
|
-
|
|
176,000
|
|
Secured
Mortgage Debt
|
|
Embassy
Suites La Jolla
|
|
6.60%
|
|
6/1/2019
|
|
69,166
|
|
-
|
|
69,166
|
|
Secured
Mortgage Debt
|
|
Hilton
Times Square
|
|
4.97%
|
|
11/1/2020
|
|
90,279
|
|
-
|
|
90,279
|
|
Secured
Mortgage Debt
|
|
Renaissance
Washington DC
|
|
5.95%
|
|
5/1/2021
|
|
129,504
|
|
-
|
|
129,504
|
|
Exchangeable
Senior Notes
|
|
Guaranty
|
|
4.60%
|
|
7/15/2027
|
|
58,000
|
|
-
|
|
58,000
|
|
Total
Fixed Rate Debt
|
|
|
|
|
|
|
|
1,107,299
|
|
(122,891)
|
|
984,408
|
|
Secured
Mortgage Debt
|
|
Hilton
San Diego Bayfront
|
|
L +
3.25%
|
|
4/15/2016
|
|
236,288
|
|
-
|
|
236,288
|
|
Secured
Mortgage Debt
|
|
Doubletree
Guest Suites Times Square
|
|
L +
3.25%
|
|
10/10/2018
|
|
180,000
|
|
-
|
|
180,000
|
|
Credit
Facility
|
|
Unsecured
|
|
L +
1.75% - 3.50%
|
(2)
|
11/1/2013
|
|
-
|
|
-
|
|
-
|
|
Total
Variable Rate Debt
|
|
|
|
|
|
|
|
416,288
|
|
-
|
|
416,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
CONSOLIDATED DEBT
|
|
|
|
|
|
|
|
$
1,523,587
|
|
$
(122,891)
|
|
$
1,400,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A cumulative redeemable preferred
|
|
|
|
8.00%
|
|
perpetual
|
|
$
176,250
|
|
$ -
|
|
$
176,250
|
|
Series C cumulative convertible redeemable preferred
|
|
|
|
6.45%
|
|
perpetual
|
|
$
100,000
|
|
$ -
|
|
$
100,000
|
|
Series D cumulative redeemable preferred
|
|
|
|
8.00%
|
|
perpetual
|
|
$
115,000
|
|
$ -
|
|
$
115,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Fixed Rate Debt
|
|
|
|
|
|
|
|
72.7%
|
|
|
|
70.3%
|
|
%
Floating Rate Debt
|
|
|
|
|
|
|
|
27.3%
|
|
|
|
29.7%
|
|
Average
Interest Rate(3)
|
|
|
|
|
|
|
|
5.01%
|
|
|
|
4.97%
|
|
Weighted
Average Maturity of Debt
|
|
|
|
|
|
|
|
5.2
years
|
|
|
|
5.5
years
|
(4)
|
(1)
|
Subsequent
Events include the following: $0.1 million in scheduled amortization
payments on loans secured by the Three-Hotel Portfolio; $75.6 million
in debt assumed by the buyer of the Three-Hotel Portfolio; $0.1 million
in scheduled amortization payments on the loan secured by the Marriott
Del Mar; and $47.1 million in debt assumed by the buyer of the Marriott
Del Mar. Subsequent Events exclude scheduled loan amortization payments
on the Company's remaining debt.
|
(2)
|
Reflects
the amended credit facility's interest rate based on a pricing grid
with a range of 175 to 350 basis points over LIBOR, which represents a
reduction from the previous grid that ranged from 325 to 425 basis
points over LIBOR.
|
(3)
|
Average
Interest Rate on variable-rate debt obligations is calculated based on
the variable rates at June 30, 2012 and includes the effect of the
Company's interest rate derivative agreements.
|
(4)
|
Assumes
the $58.0 million in outstanding exchangeable senior notes remain
outstanding to maturity. If the exchangeable senior notes were redeemed
upon the first put date of January 15, 2013, the weighted average
maturity would be approximately 4.9 years.
|
|