Wyndham Worldwide Reports First Quarter 2015 Earnings with Net Income of $122 million compared to $90 million in the year-ago quarter.
First Quarter Adjusted Diluted EPS Growth of 32%; Increases Full Year EPS Guidance
First Quarter Highlights:
• First quarter adjusted diluted earnings per share (EPS) was $1.03, an increase of 32% from adjusted diluted EPS of $0.78 in the first quarter of 2014. Reported diluted EPS was $1.00 in the first quarter of 2015, an increase of 45% from reported diluted EPS of $0.69 from the same period in 2014. • Revenues increased 6% compared with the first quarter of 2014. In constant currency, revenues increased 9%. • Adjusted EBITDA increased 14% compared with the first quarter of 2014. In constant currency, adjusted EBITDA increased 18%. • During the quarter, the Company repurchased 1.7 million shares of its common stock for $150 million.
To view full first quarter financial results please visit:
http://investor.wyndhamworldwide.com/phoenix.zhtml?c=200690&p=irol-newsarticle&ID=2040657
Hersha Hospitality Trust Announces First Quarter 2015 Results: Net loss of $7.5 million down from net loss of $9.6 million in first quarter 2014.
– Q1 2015 Comparable Portfolio RevPAR Growth of 6.9% –
– Q1 2015 Hotel EBITDA Growth of 22.4% –
– Repurchased Two Million Common Shares –
First Quarter 2015 Financial Results
Adjusted Funds from Operations (“AFFO”) in first quarter 2015 increased $2.1 million to $13.7 million, compared to $11.6 million in first quarter 2014. The Company’s weighted average diluted common shares and units of limited partnership interest in Hersha Hospitality Limited Partnership (“OP Units”) outstanding were approximately 207.6 million as of March 31, 2015, compared to approximately 209.0 million as of March 31, 2014. AFFO per diluted common share and OP Unit was $0.07 in first quarter 2015, compared to $0.06 per diluted common share and OP Unit reported in first quarter 2014. An explanation of certain non-GAAP financial measures used in this press release, including, among others, AFFO and Adjusted EBITDA, as well as reconciliations of those non-GAAP financial measures, is included at the end of this press release.
Mr. Jay H. Shah, Hersha’s Chief Executive Officer, stated, “Our first quarter 2015 results demonstrate the earnings power of a geographically diversified urban transient portfolio concentrated in gateway markets. Our first quarter results are indicative of healthy lodging fundamentals and an improving macroeconomic backdrop fueled by consumer spending and a strong labor market. Hotel EBITDA increased 22.4% to $29.5 million driven by market strength in our core markets, continued stabilization of our young assets, and returns from capital investments and ROI initiatives undertaken earlier this cycle. In addition to strong same store performance, our consolidated portfolio’s 10.9% RevPAR growth benefitted from 2014 acquisitions and new development projects. While our Manhattan portfolio faced headwinds from new supply and reduced citywide activity during the quarter, we were pleased that we outperformed the broader Manhattan market by a strong margin. Our long-term conviction on New York City is firm. Our portfolio is uniquely tailored for today’s corporate and leisure transient travelers, and the city’s preeminence as a financial, cultural, and technological hub continues to grow as evidenced by the rapidly increasing real estate values that continue to surpass record levels.”
Mr. Shah continued, “During the first quarter, we took advantage of the dislocation in our stock price and repurchased approximately two million common shares for $12.6 million. Repurchasing our shares is a prudent use of capital, especially when our shares trade at a material discount to net asset value. As we move forward, we will consider additional repurchases during periods of price volatility, or when the market price does not appropriately reflect their inherent value. With the year’s most challenging quarter behind us, our confidence in industry fundamentals is unchanged. Our young, diversified portfolio of urban transient hotels is well-positioned to deliver EBITDA growth as we proceed through the remainder of 2015.”
First Quarter 2015 Operating Results
During first quarter 2015, revenue per available room (“RevPAR”) at the Company’s 46 consolidated hotels as of March 31, 2015, compared to 44 hotels as of March 31, 2014, increased 10.9% to $138.59. The Company’s average daily rate (“ADR”) for the consolidated hotel portfolio increased 6.6% to $175.60, while occupancy increased 301 basis points to 78.9%. Hotel EBITDA margins for the consolidated hotel portfolio increased 70 basis points to 30.9%, with Hotel EBITDA increasing 22.4%, or $5.4 million, to $29.5 million.
During first quarter 2015, RevPAR at the Company’s 44 comparable hotels as of March 31, 2015 increased 6.9% to $138.54. The Company’s average daily rate for the comparable hotel portfolio increased 3.9% to $176.33, while occupancy increased 222 basis points to 78.6%. Hotel EBITDA margins for the comparable hotel portfolio declined 60 basis points to 31.0%. Excluding renovations at the Hilton Garden Inn Tribeca, Hotel Milo, Sheraton JFK Hotel and the Residence Inn Coconut Grove, EBITDA margins were unchanged at 31.8%.
The Company’s best performing market during the first quarter was Boston, which reported 25.3% RevPAR growth. The Company’s West Coast portfolio reported 18.4% RevPAR growth despite renovations at Hotel Milo, while the Washington, DC portfolio delivered 14.8% RevPAR growth. The Company’s South Florida portfolio reported 7.9% RevPAR growth despite renovations at the Residence Inn Coconut Grove, which concluded in early March.
To view full first quarter financial results please visit:
http://www.snl.com/irweblinkx/file.aspx?IID=4019891&FID=29178802
