He added that the company continues to make progress
with its plan to remake Supertel and its portfolio. "During the past
three months, we completed two dispositions and signed sales contracts
on five additional properties that we recently classified as held for
sale assets. Our financial and operating performance was in line with
our budget, and the execution of the business plan is being carried out
as it was designed. The primary obstacle to more rapid execution of
this phase of our plan currently, and for the foreseeable future, is
the availability of credit for buyers of our properties. The tight
credit conditions have frustrated our timeline, but we are confident
that market conditions will improve as lenders reenter the hospitality
sector.
"Supertel's capital access has shown improvement as we
have issued a measured amount of equity to strengthen the balance
sheet, and our banks have demonstrated a willingness to extend
maturities on loans while we work through our corporate repositioning."
Operating Results
Second quarter 2010 revenues of $24.7 million from
continuing operations increased $0.7 million, or 3.1 percent, over
second quarter 2009. The portfolio of 94 hotels in continuing
operations in the 2010 second quarter, compared with the same period a
year earlier, reported a 9.8 percent increase in occupancy, and a 6.0
percent decrease in ADR, for a 3.2 percent increase in RevPAR, compared
to a 6.2 percent RevPAR increase for the industry, as reported by Smith
Travel Research.
Second Qtr 2010 vs Second Qtr 2009 (Continuing Operations)
Occupancy ADR RevPar
------------------- -------------------- --------------------
Chg 2010 2009 Chg 2010 2009 Chg 2010 2009
----- ----- ----- ----- ------ ------ ----- ------ ------
Industry -
Total US
Market * 6.1% 60.7% 57.2% 0.0% $97.87 $97.89 6.2% $59.44 $55.96
Supertel -
Continuing
Operations
Portfolio 9.8% 68.2% 62.1% -6.0% 48.35 51.43 3.2% 32.95 31.92
Chain Scale
Industry -
All
Midscale
without
food and
beverage * 5.4% 62.2% 59.0% -1.3% 85.24 86.36 4.1% 53.04 50.97
Supertel -
Midscale
without
food and
beverage 13.4% 68.4% 60.3% -6.2% 65.38 69.71 6.5% 44.72 42.01
Industry -
All Economy
* 5.1% 53.9% 51.3% -4.1% 49.65 51.79 0.7% 26.74 26.55
Supertel -
Economy 6.9% 66.5% 62.2% -6.2% 47.09 50.21 0.3% 31.30 31.22
Supertel -
Extended
Stay 13.8% 74.0% 65.0% -4.2% $24.00 $25.05 9.2% $17.76 $16.27
* Industry Source: STR Quarterly Hotel Review, Volume 10, Issue Q2
Economy
The company's 57 continuing operations economy hotels
reported a 0.3 percent increase in RevPAR to $31.30 in the 2010 second
quarter, resulting from a 6.9 percent rise in occupancy to 66.5 percent
and a 6.2 percent decrease in ADR to $47.09.
Midscale without food and beverage
Second quarter RevPAR for the company's 29 continuing
operations midscale without food and beverage hotels increased 6.5
percent to $44.72. Occupancy for these properties rose 13.4 percent
while ADR decreased 6.2 percent to $65.38.
Extended stay
The company's eight continuing operations extended stay
hotels reported a 9.2 percent increase in RevPAR to $17.76, reflecting
a 13.8 percent rise in occupancy to 74.0 percent, partially offset by a
4.2 percent decline in ADR to $24.00.
"Over the last year, we have worked closely with our
management companies to improve the guest experience at our
properties," Walters commented. "When the downturn hit, many operators,
including Supertel, were forced to cut costs wherever possible, which
we believe had an impact on our guests. We understand how valuable our
guests are, and we have placed renewed emphasis on the 'clean rooms and
friendly service' attitude that has long been our mantra. This renewed
emphasis has marginally increased our operating costs over last year,
but will serve to attract and retain our valued customers.
"During the second quarter our managers were encouraged
to become more aggressive on pricing to increase activity at the
hotels, and the strategy was effective as we outperformed our peers in
the Economy and Midscale without food and beverage sectors of the
industry in both the Occupancy and RevPAR metrics. This plan impacted
our ADR results, which were down 6.0 percent for the period, but we
believe the trade off was worthwhile and that our ADR will begin to
show improvement in the coming quarters."
Hotel and property operations expenses from continuing
operations for the 2010 second quarter increased $1.3 million, or 7.6
percent, over the like 2009 period. The majority of the increase was
hotel payroll-related, with repairs and maintenance, room supplies,
breakfast expenses and franchise fees contributing to the remainder of
the variance. The increase in these types of expenses is directly
related to increased occupancy at the company's hotels. Revenue
increased 3.1 percent over the same time period.
For the 2010 second quarter, property operating income
(POI) from continuing operations decreased $0.5 million to $6.6
million, compared to the year-ago period. POI as a percent of revenue
decreased 3.1 percentage points from 29.9 percent to 26.8 percent from
the second quarter of 2009 to the second quarter of 2010. POI is
calculated as revenue from room rentals and other hotel services less
hotel and property operations expenses. This decrease resulted from the
increased cost of operating expenses mentioned above.
General and administration expense from continuing
operations for the 2010 second quarter dropped $0.2 million compared to
the prior period. The major causes of the decrease include lower salary
expense due to management changes, as well as decreased professional
and legal fees.
"In the second quarter, we were very successful with our
strategy to increase our occupancies," said Connie Scarpello,
Supertel's chief financial officer. "Our next step is to improve room
rates while maintaining higher occupancy levels. This tactic will
increase our costs in the short term, but as the market takes our rates
higher, the increase in ADR will fall to the bottom line. As a result,
we expect our POI percentages to improve."
Dispositions
As of March 31, 2010, 18 properties were held for sale,
and in the second quarter of 2010, two of these properties were sold.
An additional two properties were declared held for sale, resulting in
a total of 18 properties held for sale as of June 30, 2010. By the end
of the second quarter, six of the 18 HFS hotels had signed purchase
contracts.
Impairment of $2.4 million was recorded on 12 of the 18
properties classified in discontinued operations in the second quarter.
This was the result of the continued decline of real estate prices,
resulting in a reduction in the estimated value of these hotels.
"We continue to be encouraged by the interest shown in
our for sale properties; however, certain areas of the country, like
the Southeast, where 12 of our older, non-branded held for sale
properties are located, continue to suffer significantly from the
economic downturn," Scarpello commented. "These particular hotels cater
to the construction industry, and as construction projects return to
these areas, we believe hotel revenues will increase, as will interest
in these properties. We began to see some favorable revenue changes in
certain of these markets in the month of July."
Balance Sheet
The company as of June 30, 2010 has $155.3 million in
outstanding debt on hotels in continuing operations with an average
term of 4.5 years and weighted average annual interest rate of 6.1
percent.
The Wells Fargo mortgage loan maturing August 12, 2010
with a balance at maturity of $8.1 million on six properties was
extended to March 12, 2011. A $1.8 million pay down of the Wells Fargo
note was funded through the company's revolving credit facility with
Great Western, and two properties were released from the loan, leaving
a balance of $6.3 million on four properties. The interest rate on the
Wells Fargo note was increased from LIBOR plus 3.5 percent with a 4
percent floor, to LIBOR plus 5 percent with a 5.5 percent floor. The
two newly unencumbered properties are currently held for sale and are
anticipated to be sold in the August - September 2010 timeframe with
estimated net proceeds of $1.8 million.
During the quarter, the company raised an aggregate
$1.42 million through equity sales. Of that amount, $420,000 was raised
in the sale of common stock under a standby equity distribution
agreement.
"We continued to make steady progress in reducing our
debt levels and strengthening our balance sheet during the quarter,"
Scarpello added. "The credit markets continue to thaw, and banks are
increasingly willing to work with borrowers to find viable solutions."
Dividends
The company did not declare a common stock dividend for
the 2010 second quarter. Preferred dividends have continued
uninterrupted. The company will monitor requirements to maintain its
REIT status and will regularly evaluate the dividend policy.
Outlook
"Given what we observe in the marketplace and hear from
the industry experts, we believe the outlook for the hospitality
business is on a positive path," Walters said. "The silver lining of
the tough capital markets climate is that the supply of new hotels will
continue to be constrained while demand is rising. The result, we
believe, will be higher occupancies at higher ADRs, leading to improved
financial performance within the hotel industry. With the continued
execution of our long-term strategic plan, we believe Supertel is well
positioned to capture more than our fair share during the recovery."
About Supertel Hospitality, Inc.
As of June 30, 2010, Supertel Hospitality, Inc. (NASDAQ:
SPPR) owns 112 hotels comprised of 9,772 rooms in 23 states. The
company's hotel portfolio includes Super 8, Comfort Inn/Comfort Suites,
Hampton Inn, Holiday Inn Express, Supertel Inn, Days Inn, Ramada
Limited, Guest House Inn, Sleep Inn, Savannah Suites, Masters Inn, Key
West Inns and Baymont Inn. This diversity enables the company to
participate in the best practices of each of these respected
hospitality partners. The company specializes in limited service
hotels, which do not normally offer food and beverage service. For more
information or to make a hotel reservation, visit www.supertelinc.com.
Certain matters within this press release are discussed
using forward-looking language as specified in the Private Securities
Litigation Reform Act of 1995, and, as such, may involve known and
unknown risks, uncertainties and other factors that may cause the
actual results or performance to differ from those projected in the
forward-looking statement. These risks are discussed in the Company's
filings with the Securities and Exchange Commission.
SELECTED FINANCIAL DATA:
The following table sets forth the Company's balance
sheet as of June 30, 2010 and December 31, 2009. The Company owned 112
hotels (including 18 hotels held for sale) at June 30, 2010 and 115
hotels (including 19 hotels held for sale) as of December 31, 2009
respectively.
(in thousands, except share and per share data).
As of
June 30, December 31,
2010 2009
------------ ------------
(unaudited)
ASSETS
Investments in hotel properties $ 314,196 $ 315,732
Less accumulated depreciation 89,128 83,806
------------ ------------
225,068 231,926
Cash and cash equivalents 564 428
Accounts receivable, net of allowance for
doubtful accounts of $84 and $95 2,246 2,043
Prepaid expenses and other assets 7,898 4,779
Deferred financing costs, net 1,161 1,414
Investment in hotel properties, held for
sale, net 27,250 33,805
------------ ------------
$ 264,187 $ 274,395
============ ============
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable, accrued expenses and other
liabilities $ 14,351 $ 10,340
Debt related to hotel properties held for
sale 26,051 27,797
Long-term debt 155,272 161,716
------------ ------------
195,674 199,853
------------ ------------
Redeemable noncontrolling interest in
consolidated partnership, at redemption
value 511 511
Redeemable preferred stock
Series B, 800,000 shares authorized; $.01
par value, 332,500 shares outstanding,
liquidation preference of $8,312 7,662 7,662
EQUITY
Shareholders' equity
Preferred stock, 40,000,000 shares authorized;
Series A, 2,500,000 shares authorized, $.01
par value, 803,270 shares outstanding,
liquidation preference of $8,033 8 8
Common stock, $.01 par value, 100,000,000
shares authorized; 22,869,485 and 22,002,322
shares outstanding. 229 220
Common stock warrants 252 -
Additional paid-in capital 121,320 120,153
Distributions in excess of retained earnings (61,831) (54,420)
------------ ------------
Total shareholders' equity 59,978 65,961
Noncontrolling interest
Noncontrolling interest in consolidated
partnership, redemption value $221 and $237 362 408
------------ ------------
Total equity 60,340 66,369
------------ ------------
COMMITMENTS AND CONTINGENCIES
$ 264,187 $ 274,395
============ ============
The following table sets forth the Company's unaudited
results of operations for the three and six months ended June 30, 2010
and 2009, respectively.
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2010 2009 2010 2009
-------- -------- -------- --------
REVENUES
Room rentals and other hotel
services $ 24,682 $ 23,939 $ 43,313 $ 43,566
-------- -------- -------- --------
EXPENSES
Hotel and property operations 18,062 16,779 33,774 32,380
Depreciation and amortization 3,012 3,093 6,026 6,189
General and administrative 800 1,047 1,799 2,018
-------- -------- -------- --------
21,874 20,919 41,599 40,587
-------- -------- -------- --------
EARNINGS BEFORE NET LOSS ON
DISPOSITIONS OF ASSETS, OTHER
INCOME, INTEREST EXPENSE AND
INCOME TAXES 2,808 3,020 1,714 2,979
Net loss on dispositions of assets (24) (26) (42) (53)
Other income 35 34 61 72
Interest expense (2,578) (2,616) (5,144) (5,111)
Impairment (2,147) - (2,147) -
-------- -------- -------- --------
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES (1,906) 412 (5,558) (2,113)
Income tax (expense) benefit (18) (31) 821 742
-------- -------- -------- --------
INCOME (LOSS) FROM CONTINUING
OPERATIONS (1,924) 381 (4,737) (1,371)
Gain (loss) from discontinued
operations, net of tax (1,751) 962 (1,955) 289
-------- -------- -------- --------
NET INCOME (LOSS) (3,675) 1,343 (6,692) (1,082)
Noncontrolling interest 11 (69) 18 17
-------- -------- -------- --------
NET INCOME (LOSS) ATTRIBUTABLE TO
CONTROLLING INTERESTS (3,664) 1,274 (6,674) (1,065)
Preferred stock dividends (369) (369) (737) (737)
-------- -------- -------- --------
NET INCOME (LOSS) ATTRIBUTABLE
TO COMMON SHAREHOLDERS $ (4,033) $ 905 $ (7,411) $ (1,802)
======== ======== ======== ========
NET INCOME (LOSS) PER COMMON SHARE
- BASIC AND DILUTED
EPS from continuing operations $ (0.10) $ - $ (0.24) $ (0.10)
EPS from discontinued operations (0.08) 0.04 (0.09) 0.02
-------- -------- -------- --------
EPS Basic and Diluted $ (0.18) $ 0.04 $ (0.33) $ (0.08)
======== ======== ======== ========
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Unaudited - In thousands, except per share data:
Three months Six Months
ended June 30, ended June 30,
2010 2009 2010 2009
-------- -------- -------- --------
Weighted average shares outstanding
for:
calculation of earnings per share
- basic 22,412 21,812 22,209 21,371
======== ======== ======== ========
calculation of earnings per share
- diluted 22,412 21,812 22,209 21,371
======== ======== ======== ========
Weighted average shares outstanding
for:
calculation of FFO per share -
basic 22,412 21,812 22,209 21,371
======== ======== ======== ========
calculation of FFO per share -
diluted 22,412 21,812 22,209 21,371
======== ======== ======== ========
Reconciliation of net income (loss)
to FFO
Net income (loss) attributable to
common shareholders $ (4,033) $ 905 $ (7,411) $ (1,802)
Depreciation and amortization 3,012 3,594 6,052 7,311
Net gain on disposition of assets (503) (1,024) (467) (964)
-------- -------- -------- --------
FFO available to common
shareholders (1,524) 3,475 (1,826) 4,545
-------- -------- -------- --------
Impairment charges of hotel
properties held for sale or sold 2,449 - 2,569 150
Impairment charges of hotel
properties held for use 2,147 - 2,147 -
-------- -------- -------- --------
FFO without impairment, a non-cash
item $ 3,072 $ 3,475 $ 2,890 $ 4,695
======== ======== ======== ========
FFO per share - basic $ (0.07) $ 0.16 $ (0.08) $ 0.21
======== ======== ======== ========
FFO without impairment, a non-cash
item, per share - basic $ 0.14 $ 0.16 $ 0.13 $ 0.22
======== ======== ======== ========
FFO per share - diluted $ (0.07) $ 0.16 $ (0.08) $ 0.21
======== ======== ======== ========
FFO without impairment, a non-cash
item, per share - diluted $ 0.14 $ 0.16 $ 0.13 $ 0.22
======== ======== ======== ========
FFO is a non-GAAP financial measure. We consider FFO to
be a market accepted measure of an equity REIT's operating performance,
which is necessary, along with net earnings (loss), for an
understanding of our operating results. FFO, as defined under the
National Association of Real Estate Investment Trusts (NAREIT)
standards, consists of net income computed in accordance with GAAP,
excluding gains (or losses) from sales of real estate assets, plus
depreciation and amortization of real estate assets. We believe our
method of calculating FFO complies with the NAREIT definition. FFO does
not represent amounts available for management's discretionary use
because of needed capital replacement or expansion, debt service
obligations, or other commitments and uncertainties. FFO should not be
considered as an alternative to net income (loss) (computed in
accordance with GAAP) as an indicator of our liquidity, nor is it
indicative of funds available to fund our cash needs, including our
ability to pay dividends or make distributions. All REITs do not
calculate FFO in the same manner; therefore, our calculation may not be
the same as the calculation of FFO for similar REITs.
We use FFO as a performance measure to facilitate a
periodic evaluation of our operating results relative to those of our
peers, who, like us, are typically members of NAREIT. We consider FFO a
useful additional measure of performance for an equity REIT because it
facilitates an understanding of the operating performance of our
properties without giving effect to real estate depreciation and
amortization, which assume that the value of real estate assets
diminishes predictably over time. Since real estate values have
historically risen or fallen with market conditions, we believe that
FFO provides a meaningful indication of our performance.
FFO, without impairment, a non-cash item, is a non-GAAP
financial measure. As a result of a significant downturn in hotel and
lodging fundamentals that took place in 2008 and 2009 and the related
decrease in hotel and real estate valuations, we decided that FFO
available to common shareholders did not provide all of the information
that allows us to better evaluate our operating performance in this
unprecedented economic time.
To arrive at FFO without impairment, a non-cash item, we
adjust FFO available to common shareholders, to exclude the following
items:
(i) impairment charges of hotel properties that we have sold or expect to
sell, included in discontinued operations; and
(ii) impairment charges of hotel properties classified as held for use.
We believe that these items are driven by factors
relating to the fundamental disruption in the global financial and real
estate markets, rather than factors specific to the company or the
performance of our properties or investments.
The impairment charges of hotel properties that were
recognized in 2009 and 2010 were primarily based on valuations of
hotels, which had declined due to market conditions, that we no longer
expected to hold for long-term investment, and/or for which we have
reduced our prior expected holding periods. In order to enhance
liquidity, we have declared certain properties as held for sale and may
declare other properties held for sale. To the extent these properties
are expected to be sold at a loss, we record an impairment charge when
the loss is known. We have recognized certain of these impairment
charges over several quarters in 2009 and 2010 and we believe it is
reasonably likely that we will recognize similar charges and gains in
the near future. However, we believe that as the financial markets
stabilize and our liquidity needs change, the potential for impairment
charges of our hotel properties will disappear or become immaterial. We
believe FFO, without impairment, provides investors with an additional
measure to better evaluate our operating performance during this period
of fundamental disruption in the global financial and real estate
markets.
We analyze our operating performance primarily by
revenues from our hotel properties, net of operating, administrative
and financing expenses which are not directly impacted by short term
fluctuations in the market value of our hotel properties. As a result,
although these non-cash impairment charges have had a material impact
on our operations and are reflected in our financial statements, the
removal of the effects of these items allows us to better understand
the core operating performance of our properties over the long term.
Unaudited - In thousands, except
statistical data: Three months Six months
ended June 30, ended June 30,
2010 2009 2010 2009
-------- -------- -------- --------
RECONCILIATION OF NET INCOME (LOSS)
TO ADJUSTED EBITDA
Net income (loss) attributable to
common shareholders $ (4,033) $ 905 $ (7,411) $ (1,802)
Interest expense, including disc
ops 3,075 3,283 6,130 6,406
Income tax benefit, including disc
ops (62) (15) (1,168) (1,058)
Depreciation and amortization,
including disc ops 3,012 3,594 6,052 7,311
-------- -------- -------- --------
EBITDA 1,992 7,767 3,603 10,857
Noncontrolling interest (11) 69 (18) (17)
Preferred stock dividend 369 369 737 737
-------- -------- -------- --------
ADJUSTED EBITDA $ 2,350 $ 8,205 $ 4,322 $ 11,577
======== ======== ======== ========
Adjusted EBITDA is a financial measure that is not
calculated in accordance with accounting principles generally accepted
in the United States of America ("GAAP"). We calculate Adjusted EBITDA
by adding back to net earnings (loss) available to common shareholders
certain non-operating expenses and non-cash charges which are based on
historical cost accounting and we believe may be of limited
significance in evaluating current performance. We believe these
adjustments can help eliminate the accounting effects of depreciation
and amortization and financing decisions and facilitate comparisons of
core operating profitability between periods, even though Adjusted
EBITDA also does not represent an amount that accrues directly to
common shareholders. In calculating Adjusted EBITDA, we also add back
preferred stock dividends and noncontrolling interests, which are cash
charges.
Adjusted EBITDA doesn't represent cash generated from
operating activities determined by GAAP and should not be considered as
an alternative to net income, cash flow from operations or any other
operating performance measure prescribed by GAAP. Adjusted EBITDA is
not a measure of our liquidity, nor is Adjusted EBITDA indicative of
funds available to fund our cash needs, including our ability to make
cash distributions. Neither does the measurement reflect cash
expenditures for long-term assets and other items that have been and
will be incurred. Adjusted EBITDA may include funds that may not be
available for management's discretionary use due to functional
requirements to conserve funds for capital expenditures, property
acquisitions, and other commitments and uncertainties. To compensate
for this, management considers the impact of these excluded items to
the extent they are material to operating decisions or the evaluation
of our operating performance. Adjusted EBITDA, as presented, may not be
comparable to similarly titled measures of other companies.
The following table sets forth the operations of the
Company's same store hotel properties for the three months ended June
30, 2010 and 2009, respectively.
Unaudited - In thousands, except
statistical data: Three months Six months
ended June 30, ended June 30,
2010 2009 2010 2009
------- ------- ------- -------
Same Store:
Revenue per available room
(RevPAR):
Midscale w/o F&B $ 44.72 $ 42.01 $ 38.81 $ 38.26
Economy $ 31.30 $ 31.22 $ 27.34 $ 28.37
Extended Stay $ 17.76 $ 16.27 $ 17.51 $ 15.64
------- ------- ------- -------
Total $ 32.95 $ 31.92 $ 29.02 $ 29.17
======= ======= ======= =======
Average daily room rate (ADR):
Midscale w/o F&B $ 65.38 $ 69.71 $ 63.80 $ 68.04
Economy $ 47.09 $ 50.21 $ 46.33 $ 49.40
Extended Stay $ 24.00 $ 25.05 $ 23.82 $ 24.94
------- ------- ------- -------
Total $ 48.35 $ 51.43 $ 47.00 $ 50.37
======= ======= ======= =======
Occupancy percentage:
Midscale w/o F&B 68.4% 60.3% 60.8% 56.2%
Economy 66.5% 62.2% 59.0% 57.4%
Extended Stay 74.0% 65.0% 73.5% 62.7%
------- ------- ------- -------
Total 68.2% 62.1% 61.7% 57.9%
======= ======= ======= =======
"w/o F & B" indicates without food and beverage.
This presentation includes non-GAAP financial measures.
The Company believes that the presentation of hotel property operating
income (POI) is helpful to investors, and represents a more useful
description of its operations, as it better communicates the
comparability of its hotels' operating results.
Unaudited - In thousands, except Three months Six months
statistical data: ended June 30, ended June 30,
2010 2009 2010 2009
--------- --------- --------- ---------
Total Hotels:
Revenue per available room
(RevPAR): $ 32.95 $ 31.92 $ 29.02 $ 29.17
Average daily room rate
(ADR): $ 48.35 $ 51.43 $ 47.00 $ 50.37
Occupancy percentage: 68.2% 62.1% 61.7% 57.9%
Revenue from room rentals and
other hotel services consists
of:
Room rental revenue $ 23,967 $ 23,218 $ 41,982 $ 42,202
Telephone revenue 76 78 155 148
Other hotel service revenues 639 643 1,176 1,216
--------- --------- --------- ---------
Total revenue from room
rentals and other hotel
services $ 24,682 $ 23,939 $ 43,313 $ 43,566
========= ========= ========= =========
Hotel and property operations
expense
Total hotel and property
operations expense $ 18,062 $ 16,779 $ 33,774 $ 32,380
========= ========= ========= =========
Property Operating Income
("POI")
Total property operating
income $ 6,620 $ 7,160 $ 9,539 $ 11,186
========= ========= ========= =========
Total POI as a percentage of
revenue 26.8% 29.9% 22.0% 25.7%
========= ========= ========= =========
RECONCILIATION OF NET (INCOME)
LOSS FROM CONTINUING
OPERATIONS TO POI
Net (income) loss $ (1,924) $ 381 $ (4,737) $ (1,371)
Depreciation and amortization 3,012 3,093 6,026 6,189
Net loss on disposition of
assets. 24 26 42 53
Other income (35) (34) (61) (72)
Interest expense 2,578 2,616 5,144 5,111
General and administrative
expense 800 1,047 1,799 2,018
Income tax expense (benefit) 18 31 (821) (742)
Impairment 2,147 - 2,147 -
--------- --------- --------- ---------
POI $ 6,620 $ 7,160 $ 9,539 $ 11,186
========= ========= ========= =========
Net income (loss) as a
percentage of continuing
operations revenue from
room rentals and other
hotel services -7.8% 1.6% -10.9% -3.1%
========= ========= ========= =========
Same Store reflects 94 hotels in continuing operations
for the three months and year to date ended June 30, 2010 and 2009.
The following unaudited table presents our RevPAR, ADR
and Occupancy, by region, for the three months ended June 30, 2010 and
2009, respectively. The comparisons of same store operations are for 94
hotels in continuing operations as of April 1, 2009.
Three months ended Three months ended
June 30, 2010 June 30, 2009
------------------------- -------------------------
Same Store Room Room
Region Count RevPAR Occupancy ADR Count RevPAR Occupancy ADR
----- ------- ---------- ----- ----- ------- ---------- -----
Mountain 214 35.79 72.7% 49.26 214 35.28 65.8% 53.62
West North
Central 2,506 30.49 64.2% 47.52 2,506 31.68 64.4% 49.16
East North
Central 1,081 39.07 65.9% 59.32 1,081 36.84 60.7% 60.66
Middle
Atlantic 142 46.44 81.3% 57.12 142 42.65 61.9% 68.89
South
Atlantic 2,772 30.87 71.4% 43.22 2,772 29.51 62.6% 47.14
East South
Central 822 36.92 65.2% 56.68 822 34.84 57.5% 60.58
West South
Central 456 31.92 74.8% 42.67 456 26.12 55.5% 47.09
----- ------- ---------- ----- ----- ------- ---------- -----
Total Same
Store 7,993 32.95 68.2% 48.35 7,993 31.92 62.1% 51.43
===== ======= ========== ===== ===== ======= ========== =====
States included
in the Regions
Mountain Idaho and Montana
West North
Central Iowa, Kansas, Missouri, Nebraska and South Dakota
East North
Central Indiana and Wisconsin
Middle
Atlantic Pennsylvania
South
Atlantic Delaware, Florida, Georgia, Maryland, North Carolina,
South Carolina, Virginia and West Virginia
East South
Central Kentucky and Tennessee
West South
Central Arkansas and Louisiana
The following table presents our RevPAR, ADR and
Occupancy, by region, for the six months ended June 30, 2010 and 2009,
respectively. The comparisons of same store operations are for 94
hotels in continuing operations owned as of January 1, 2009.
Six months ended Six months ended
June 30, 2010 June 30, 2009
------------------------- -------------------------
Same Store Room Room
Region Count RevPAR Occupancy ADR Count RevPAR Occupancy ADR
----- ------- ---------- ----- ----- ------- ---------- -----
Mountain 214 30.71 64.6% 47.54 214 31.03 60.8% 51.00
West North
Central 2,506 26.67 57.2% 46.61 2,506 28.26 58.8% 48.08
East North
Central 1,081 33.58 57.6% 58.32 1,081 33.71 56.1% 60.07
Middle
Atlantic 142 37.10 64.2% 57.81 142 37.06 56.3% 65.78
South
Atlantic 2,772 27.64 66.7% 41.45 2,772 27.27 59.1% 46.11
East South
Central 822 31.97 56.6% 56.49 822 32.28 54.3% 59.39
West South
Central 456 30.85 73.4% 42.01 456 25.99 55.4% 46.91
----- ------- ---------- ----- ----- ------- ---------- -----
Total Same
Store 7,993 29.02 61.7% 47.00 7,993 29.17 57.9% 50.37
===== ======= ========== ===== ===== ======= ========== =====
States included
in the Regions
Mountain Idaho and Montana
West North
Central Iowa, Kansas, Missouri, Nebraska and South Dakota
East North
Central Indiana and Wisconsin
Middle
Atlantic Pennsylvania
South
Atlantic Delaware, Florida, Georgia, Maryland, North Carolina, South
Carolina, Virginia and West Virginia
East South
Central Kentucky and Tennessee
West South
Central Arkansas and Louisiana
