BETHESDA, Md.,
Feb. 28, 2013- DiamondRock
Hospitality Company (the "Company") (NYSE: DRH) today announced results of operations for
its fourth fiscal quarter and full year ended December
31, 2012. The Company is a lodging-focused real estate
investment trust that owns a portfolio of 27 premium hotels in the United States. The Company also
announced a 6% increase to its quarterly dividend commencing with the
first quarter 2013.
2012 Transactions
- Hotel Acquisitions: The Company successfully
completed the acquisition of five hotels for approximately $525 million during 2012.
- Hotel Dispositions: The Company sold four
non-core hotels during 2012 for total proceeds of over $300 million.
- Equity Raises: The Company raised
approximately $275 million through
offerings of its common stock in July 2012.
- Credit Facility: The Company amended and
restated its $200 million senior
unsecured revolving credit facility to lower its borrowing rate,
increase its financial flexibility and extend the term for one year.
- Hotel Financings: The Company closed on a $170 million loan secured by the Lexington
Hotel New York and a $74 million loan
secured by the Westin Washington D.C. City Center during 2012.
- Dividends: The Company declared four
quarterly dividends totaling $0.32 per
share during 2012 and returned approximately $56
million to shareholders.
2012 Operating Results
- Pro Forma Revenue:
The Company's Pro Forma Revenue was $802.4
million, an increase of 7.2% from the comparable period in 2011.
- Pro Forma RevPAR: The
Company's Pro Forma RevPAR was $134.36,
an increase of 5.3% from the comparable period in 2011.
- Pro Forma Hotel Adjusted EBITDA Margin: The
Company's Pro Forma Hotel Adjusted EBITDA margin was 27.18%, an
increase of 87 basis points from the comparable period in 2011.
- Adjusted EBITDA: The Company's
Adjusted EBITDA was $189.7 million, an
increase of 17.0% over the comparable period in 2011.
- Adjusted FFO: The Company's Adjusted FFO was $140.2 million and Adjusted FFO per diluted
share was $0.78.
Fourth Quarter 2012 Highlights
- Pro Forma Revenue:
The Company's Pro Forma Revenue was $267.8
million, an increase of 6.6% from the comparable period in 2011.
- Pro Forma RevPAR: The
Company's Pro Forma RevPAR was $138.24,
an increase of 3.9% from the comparable period in 2011.
- Pro Forma Hotel Adjusted EBITDA Margin: The
Company's Pro Forma Hotel Adjusted EBITDA margin was 28.90%, an
increase of 105 basis points from the comparable period in 2011.
- Adjusted EBITDA: The Company's
Adjusted EBITDA was $72.3 million.
- Adjusted FFO: The Company's Adjusted FFO was $56.5 million and Adjusted FFO per diluted
share was $0.29.
- Dividends: The Company declared a quarterly
dividend of $0.08 per share during the
fourth quarter.
Mark W. Brugger,
President and Chief Executive Officer of DiamondRock Hospitality
Company, stated, "Our fourth quarter operating results were above our
expectations, and we are pleased with the continued repositioning of
our portfolio in 2012, including our entry into San Francisco with the accretive
acquisition of the Hotel Rex. We also continued to strengthen our
balance sheet through the amendment of our credit facility and by
entering into attractive secured financing. We enter 2013 with
attractive industry fundamentals, a strong balance sheet and numerous
upside opportunities through our repositioning projects. We are also
pleased to increase our quarterly dividend for 2013."
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 Margin," "FFO" and "Adjusted FFO." The discussions of
"Pro Forma" operating results assume all of the Company's 27 hotels
were owned since January 1, 2011.
For the full year 2012, the Company
reported the following:
|
Full
Year 2012
|
Full
Year 2011
|
Change
|
Pro
Forma ADR
|
$175.43
|
$168.61
|
4.0%
|
Pro
Forma Occupancy
|
76.6%
|
75.7%
|
0.9
percentage points
|
Pro
Forma RevPAR
|
$134.36
|
$127.61
|
5.3%
|
Pro
Forma Rooms Revenue
|
$568.8
million
|
$531.6
million
|
7.0%
|
Pro
Forma Revenue
|
$802.4
million
|
$748.6
million
|
7.2%
|
Pro
Forma Hotel Adjusted EBITDA Margins
|
27.18%
|
26.31%
|
87
basis points
|
Adjusted
EBITDA
|
$189.7
million
|
$162.1
million
|
17.0%
|
Adjusted
FFO
|
$140.2
million
|
$103.6
million
|
$36.6
million
|
Adjusted
FFO per diluted share
|
$0.78
|
$0.62
|
$0.16
|
Net
Loss
|
($16.6
million)
|
($7.7
million)
|
($8.9
million)
|
Loss
per diluted share
|
($0.09)
|
($0.05)
|
($0.04)
|
Diluted
Weighted Average Shares
|
180.8
million
|
166.7
million
|
|
For the fourth quarter beginning September 8, 2012 and ending December 31, 2012, the Company reported the
following:
|
Fiscal
Q4 2012
|
Fiscal
Q4 2011
|
Change
|
Pro
Forma ADR
|
$185.02
|
$178.55
|
3.6%
|
Pro
Forma Occupancy
|
74.7%
|
74.5%
|
0.2
percentage points
|
Pro
Forma RevPAR
|
$138.24
|
$133.03
|
3.9%
|
Pro
Forma Rooms Revenue
|
$189.2
million
|
$178.2
million
|
6.2%
|
Pro
Forma Revenue
|
$267.8
million
|
$251.4
million
|
6.6%
|
Pro
Forma Hotel Adjusted EBITDA Margins
|
28.90%
|
27.85%
|
105
basis points
|
Adjusted
EBITDA
|
$72.3
million
|
$60.5
million
|
19.5%
|
Adjusted
FFO
|
$56.5
million
|
$40.0
million
|
$16.5
million
|
Adjusted
FFO per diluted share
|
$0.29
|
$0.24
|
$0.05
|
Net
Income
|
$16.6
million
|
$4.9
million
|
$11.7
million
|
Earnings
per diluted share
|
$0.09
|
$0.03
|
$0.06
|
Diluted
Weighted Average Shares
|
195.6
million
|
168.2
million
|
|
Appointment of Chief Operating
Officer
Robert Tanenbaum
will join the Company on April 1, 2013
and will be appointed as Chief Operating Officer and Executive Vice
President, Asset Management no later than May 1,
2013. Mr. Tanenbaum will lead the Company's asset management efforts
and will report directly to Mark W. Brugger,
President and Chief Executive Officer. Mr. Tanenbaum brings over 20
years of experience in the hospitality industry to the Company. Most
recently he was the Principal of Madison Hotel Advisors, LLC, which he
founded in 2004 and whose clients include Goldman Sachs' Whitehall
Funds and Equity Group Investments. Prior to founding Madison Hotel
Advisors, LLC, he was a Vice President of Asset Management with Host
Hotels & Resorts from 1996 to 2004. His experience prior to that
includes PKF Consulting in San Francisco, CA
and Four Seasons Hotels in Chicago, IL
and Maui, HI. Additionally, Mr.
Tanenbaum is an active member of the Hospitality Asset Managers
Association and is a graduate of the Pennsylvania
State University with a Bachelor of Science degree in Hotel
Restaurant and Institutional Management.
Capital Expenditures
2012 - The Company
continued to invest in its portfolio by spending approximately $49.3 million on capital improvements during
2012. Of that amount, approximately $23.4
million was funded from corporate cash and the balance from
restricted cash reserves held by hotel managers. The most significant
projects for 2012 included the following:
- Conrad Chicago:
The Company added 4,100 square feet of new meeting space
in 2012 and expects to reposition the food and beverage outlets and
re-concept the hotel lobby during the first quarter of 2013.
- Renaissance Worthington:
The Company substantially completed a comprehensive
restoration of the concrete facade of the hotel.
- Marriott Atlanta Alpharetta: The
Company completed a renovation of the guest rooms at the hotel.
- Frenchman's Reef: The Company
renovated the premium Morning Star guest rooms during the fourth
quarter of 2012 and completed a renovation of the boat dock in early
2013.
2013 - The Company
expects to spend approximately $140 million
for capital improvements in 2013 and early 2014. A description of the
most significant planned capital projects are as follows:
- Lexington Hotel New York: In
connection with executing the rebranding strategy at the Lexington
Hotel, the Company has begun a comprehensive renovation of the hotel,
including the lobby, corridors, guest rooms and guest bathrooms. The
current estimated renovation cost is $40
million to $45 million and is expected to be completed during
the third quarter of 2013.
- Manhattan Courtyards: The Company is
currently renovating the guest rooms and guest bathrooms at the
Courtyard Manhattan/Midtown East and
Courtyard Manhattan/Fifth Avenue. The renovation scope at the Courtyard
Midtown East also includes the public space and the addition of five
new guest rooms. The renovations will be substantially complete during
the first half of 2013.
- Westin Washington D.C.: The Company
expects to undertake a comprehensive renovation during 2013 to
reposition the hotel to capture higher-rated business, leisure and
group customers. The renovation scope will touch every aspect of the
guest experience, including the guest rooms, corridors, meeting space
and the lobby.
- Westin San Diego: The Company expects
to undertake a comprehensive renovation beginning in late 2013 of the
guestrooms, corridors, lobby, public areas, and meeting space.
- Hilton Boston Downtown: The Company
expects to undertake a renovation of the guestrooms, corridors, public
areas, and meeting space in 2014.
- Hilton Burlington: The Company expects
to undertake renovations of the corridors and guestrooms in 2014.
The Company expects renovation
disruption of $10 to $12 million of
Hotel Adjusted EBITDA during the year ended December
31, 2013 as a result of these projects. This disruption has been
factored into the Company's outlook for 2013 detailed below.
2013 Reporting Calendar Change
In 2013, the Company will report its
quarterly results of operations on a calendar quarter basis.
Historically, the Company reported its quarterly results of operations
based on the fiscal calendar used by Marriott International. Since the
Company is not changing its fiscal year, its financial information will
not be restated in its quarterly filings with the U.S. Securities and
Exchange Commission. The following table highlights the changes in the
Company's reporting calendar.
Quarter
|
2012
Old Calendar
|
2013
Calendar
|
1st
|
Marriott
|
January
1 – March 23
|
All
|
January
1 – March 31
|
|
Non-Marriott
|
January
1 – February 28
|
|
|
2nd
|
Marriott
|
March
24 – June 15
|
All
|
April
1 – June 30
|
|
Non-Marriott
|
March
1 – May 31
|
|
|
3rd
|
Marriott
|
June
16 – September 7
|
All
|
July 1
– September 30
|
|
Non-Marriott
|
June 1
– August 31
|
|
|
4th
|
Marriott
|
September
8 – December 31
|
All
|
October
1 – December 31
|
|
Non-Marriott
|
September
1 – December 31
|
|
|
The Company's 2013 quarterly results
will not be directly comparable to its 2012 results, since Marriott
International will not provide restated 2012 operating statements.
Instead, in comparing 2013 quarterly results to 2012 results, the
Company will (i) use the non-Marriott 2012 results on a calendar
quarter basis and (ii) use Marriott 2012 results as follows:
- The first quarter of 2012 will include Marriott operating
results from January 1 to March 23.
- The second quarter of 2012 will include Marriott operating
results from March 24 to June 15.
- The third quarter of 2012 will include Marriott operating
results from June 16 to October 5.
- The fourth quarter of 2012 will include the Marriott
operating results from October 6 to December 31.
The following table reallocates
selected 2012 quarterly pro forma operating information as described
above into the 2013 reporting calendar.
|
Quarter
1, 2012
|
Quarter
2, 2012
|
Quarter
3, 2012
|
Quarter
4, 2012
|
RevPAR
|
$
117.09
|
$
146.48
|
$
139.56
|
$
133.36
|
Revenues
(in thousands)
|
$
167,026
|
$
210,809
|
$
228,371
|
$
196,005
|
Hotel
Adjusted EBITDA (in thousands)
|
$
35,685
|
$
64,564
|
$
63,776
|
$
54,085
|
%
of Full Year
|
16.4%
|
29.6%
|
29.2%
|
24.8%
|
Hotel
Adjusted EBITDA Margin
|
21.36%
|
30.63%
|
27.93%
|
27.59%
|
Available
Rooms
|
1,004,405
|
1,010,443
|
1,184,252
|
1,034,027
|
Dividends
The Company's Board of Directors
declared a quarterly dividend of $0.08
per share to stockholders of record as of December
31, 2012. The dividend was paid on January
10, 2013. The Company increased its quarterly dividend for 2013
by 6% and its Board of Directors declared a quarterly dividend of $0.085 per share for stockholders of record as
of March 31, 2013. The dividend will be
paid on April 12, 2013.
Outlook and Guidance
The Company is providing annual
guidance for 2013, 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 U.S.
Securities and Exchange Commission. The Company's 2013 RevPAR guidance
assumes all of the Company's 27 hotels were owned since January 1, 2012.
Based on its outlook, the Company
expects the following full year 2013 results:
Metric
|
Pre-Renovation
Guidance
|
Renovation
Disruption
|
2013
Guidance
|
Pro
Forma RevPAR Growth
|
4
percent to 6 percent
|
3
percent
|
1
percent to 3 percent
|
Adjusted
EBITDA
|
$207
million to $215 million
|
$10
million to $12 million
|
$195
million to $205 million
|
Adjusted
FFO
|
$146
million to $152 million
|
$7
million to $8 million
|
$138
million to $145 million
|
Adjusted
FFO per share
(based on 195.9 million shares)
|
$0.75
to $0.78
|
$0.04
to $0.05
|
$0.70
to $0.74
|
Earnings Call
The Company will host a conference call
to discuss its fourth quarter and full year results on Friday, March 1, 2013, at 10:00 a.m. Eastern Time (ET). To participate
in the live call, investors are invited to dial 866-825-3209 (for
domestic callers) or 617-213-8061 (for international callers). The
participant passcode is 85514453. A live webcast of the call will be
available via the investor relations section of DiamondRock Hospitality
Company's website at www.drhc.com or www.earnings.com. A replay of the webcast will
also be archived on the website for one year.
About the Company
DiamondRock Hospitality Company is a
self-advised real estate investment trust (REIT) that is an owner of
premium hotel properties. The Company owns 27 premium hotels with
approximately 11,600 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 development of a hotel by a
third-party developer; risks associated with the rebranding of the
Lexington Hotel New York; 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 hotels, 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 Hilton
Boston, 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, Highgate Hotels, manager of the
Lexington Hotel, Interstate Hotels and Resorts, manager of the Westin
Washington D.C., the Westin San Diego and the Hilton Burlington, and
Joie de Vivre Hospitality, LLC, manager of the Hotel Rex report results
on a monthly basis (collectively, the "monthly-reporting hotels).
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 the
monthly-reporting hotels for the month of operations that ends after
its fiscal quarter-end because none of the managers of these 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.
Beginning in 2013, the Company will
report its quarterly results of operations on a calendar quarter basis.
DIAMONDROCK
HOSPITALITY COMPANY
|
CONSOLIDATED
BALANCE SHEETS
|
As
of December 31, 2012 and 2011
|
(in
thousands, except share and per share amounts)
|
|
|
2012
|
|
2011
|
|
|
|
|
ASSETS
|
|
|
|
Property
and equipment, at cost
|
$
|
3,131,175
|
|
|
$
|
2,667,682
|
|
Less:
accumulated depreciation
|
(519,721)
|
|
|
(433,178)
|
|
|
2,611,454
|
|
|
2,234,504
|
|
Assets
held for sale
|
—
|
|
|
263,399
|
|
Deferred
financing costs, net
|
9,724
|
|
|
5,869
|
|
Restricted
cash
|
76,131
|
|
|
53,871
|
|
Due
from hotel managers
|
68,532
|
|
|
50,728
|
|
Note
receivable
|
53,792
|
|
|
54,788
|
|
Favorable
lease assets, net
|
40,972
|
|
|
43,285
|
|
Prepaid
and other assets
|
73,814
|
|
|
65,900
|
|
Cash
and cash equivalents
|
9,623
|
|
|
26,291
|
|
Total
assets
|
$
|
2,944,042
|
|
|
$
|
2,798,635
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
Liabilities:
|
|
|
|
Mortgage
debt
|
$
|
968,731
|
|
|
$
|
762,933
|
|
Mortgage
debt of assets held for sale
|
—
|
|
|
180,000
|
|
Senior
unsecured credit facility
|
20,000
|
|
|
100,000
|
|
Total
debt
|
988,731
|
|
|
1,042,933
|
|
|
|
|
|
Deferred
income related to key money, net
|
24,362
|
|
|
24,593
|
|
Unfavorable
contract liabilities, net
|
80,043
|
|
|
81,914
|
|
Due to
hotel managers
|
51,003
|
|
|
41,676
|
|
Liabilities
of assets held for sale
|
—
|
|
|
3,805
|
|
Dividends
declared and unpaid
|
15,911
|
|
|
13,594
|
|
Accounts
payable and accrued expenses
|
88,879
|
|
|
87,963
|
|
Total
other liabilities
|
260,198
|
|
|
253,545
|
|
Stockholders'
Equity:
|
|
|
|
Preferred
stock, $0.01 par value; 10,000,000 shares authorized; no shares
issued and outstanding
|
—
|
|
|
—
|
|
Common
stock, $0.01 par value; 400,000,000 shares authorized;
195,145,707 and 167,502,359 shares issued and outstanding at
December 31, 2012 and December 31, 2011, respectively
|
1,951
|
|
|
1,675
|
|
Additional
paid-in capital
|
1,976,200
|
|
|
1,708,427
|
|
Accumulated
deficit
|
(283,038)
|
|
|
(207,945)
|
|
Total
stockholders' equity
|
1,695,113
|
|
|
1,502,157
|
|
Total
liabilities and stockholders' equity
|
$
|
2,944,042
|
|
|
$
|
2,798,635
|
|
DIAMONDROCK
HOSPITALITY COMPANY
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(in
thousands, except share and per share amounts)
|
|
|
Fiscal
Quarter Ended December 31,
|
|
Year
Ended December 31,
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Rooms
|
$
|
188,070
|
|
|
$
|
153,005
|
|
|
$
|
526,113
|
|
|
$
|
431,219
|
|
Food
and beverage
|
62,971
|
|
|
54,364
|
|
|
180,387
|
|
|
159,744
|
|
Other
|
15,360
|
|
|
10,772
|
|
|
43,147
|
|
|
31,213
|
|
Total
revenues
|
266,401
|
|
|
218,141
|
|
|
749,647
|
|
|
622,176
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
Rooms
|
47,643
|
|
|
40,743
|
|
|
140,029
|
|
|
115,786
|
|
Food
and beverage
|
43,207
|
|
|
37,852
|
|
|
128,938
|
|
|
114,029
|
|
Management
fees
|
9,603
|
|
|
8,143
|
|
|
24,915
|
|
|
21,631
|
|
Other
hotel expenses
|
90,815
|
|
|
75,584
|
|
|
261,947
|
|
|
221,471
|
|
Depreciation
and amortization
|
37,350
|
|
|
28,206
|
|
|
100,152
|
|
|
85,376
|
|
Impairment
losses
|
—
|
|
|
—
|
|
|
30,844
|
|
|
—
|
|
Hotel
acquisition costs
|
245
|
|
|
(84)
|
|
|
10,591
|
|
|
2,521
|
|
Corporate
expenses
|
5,383
|
|
|
6,346
|
|
|
21,095
|
|
|
21,247
|
|
Total
operating expenses
|
234,246
|
|
|
196,790
|
|
|
718,511
|
|
|
582,061
|
|
Operating
income
|
32,155
|
|
|
21,351
|
|
|
31,136
|
|
|
40,115
|
|
Other
Expenses (Income):
|
|
|
|
|
|
|
|
Interest
income
|
(29)
|
|
|
(33)
|
|
|
(307)
|
|
|
(614)
|
|
Interest
expense
|
17,061
|
|
|
15,292
|
|
|
53,771
|
|
|
45,406
|
|
Gain
on early extinguishment of debt
|
—
|
|
|
—
|
|
|
(144)
|
|
|
—
|
|
Total
other expenses
|
17,032
|
|
|
15,259
|
|
|
53,320
|
|
|
44,792
|
|
Income
(Loss) from continuing
operations before income taxes
|
15,123
|
|
|
6,092
|
|
|
(22,184)
|
|
|
(4,677)
|
|
Income
tax benefit (expense)
|
1,166
|
|
|
(1,675)
|
|
|
6,158
|
|
|
(3,322)
|
|
Income
(Loss) from continuing operations
|
16,289
|
|
|
4,417
|
|
|
(16,026)
|
|
|
(7,999)
|
|
Income
(Loss) from discontinued operations, net of income taxes
|
339
|
|
|
520
|
|
|
(566)
|
|
|
321
|
|
Net
income (loss)
|
$
|
16,628
|
|
|
$
|
4,937
|
|
|
$
|
(16,592)
|
|
|
$
|
(7,678)
|
|
Earnings
(Loss) per share:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.09
|
|
|
$
|
0.03
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.05)
|
|
Discontinued
operations
|
0.00
|
|
|
0.00
|
|
|
(0.00)
|
|
|
(0.00)
|
|
Basic
and diluted earnings (loss) per share
|
$
|
0.09
|
|
|
$
|
0.03
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.05)
|
|
Non-GAAP Financial Measures
We use the following non-GAAP financial
measures that we believe are useful to investors as key measures of our
operating performance: EBITDA, Adjusted EBITDA, FFO and Adjusted FFO.
These measures should not be considered in isolation or as a substitute
for measures of performance in accordance with GAAP. EBITDA, Adjusted
EBITDA, FFO and Adjusted FFO, as calculated by us, may not be
comparable to other companies that do not define such terms exactly as
the Company.
EBITDA and 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. We believe EBITDA is useful to an
investor in evaluating our operating performance because it helps
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. In addition, covenants
included in our indebtedness use EBITDA as a measure of financial
compliance. We also use EBITDA as one measure in determining the value
of hotel acquisitions and dispositions.
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 or losses
from sales of properties and impairment losses, 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.
Adjustments to EBITDA and FFO
We adjust FFO and EBITDA when
evaluating our performance because we believe that the exclusion of
certain additional recurring and non-recurring items described below
provides useful supplemental information to investors regarding our
ongoing operating performance and that the presentation of Adjusted
EBITDA and Adjusted FFO, when combined with GAAP net income, EBITDA and
FFO, is beneficial to an investor's complete understanding of our
operating performance. We adjust EBITDA and FFO for the following items:
- Non-Cash Ground Rent: We exclude the non-cash
expense incurred from straight lining the rent from our ground lease
obligations and the non-cash amortization of our favorable lease
assets.
- Non-Cash Amortization of Favorable and Unfavorable
Contracts: We exclude the non-cash amortization of the favorable
management contract assets recorded in conjunction with our
acquisitions of the Westin Washington D.C. City Center, Westin San
Diego, and Hilton Burlington and the unfavorable contract liabilities
recorded in conjunction with our acquisitions of the Bethesda Marriott
Suites, the Chicago Marriott Downtown, the Renaissance Charleston and
the Lexington Hotel New York. The amortization of the favorable and
unfavorable contracts does not reflect the underlying operating
performance of our hotels.
- 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. We exclude the effect of these one-time
adjustments because they do not reflect its actual performance for that
period.
- Gains from Early Extinguishment of Debt: We exclude
the effect of gains recorded on the early extinguishment of debt
because we believe they do not accurately reflect the underlying
performance of the Company.
- Acquisition Costs: We exclude acquisition
transaction costs expensed during the period because we believe they do
not reflect the underlying performance of the Company.
- Allerton Loan: In
2010 and 2011, we included cash payments received on the senior loan
secured by the Allerton Hotel in Adjusted EBITDA and Adjusted FFO. GAAP
requires us to record the cash received from the borrower as a
reduction of our basis in the mortgage loan due to the uncertainty over
the timing and amount of cash payments on the loan. In 2012, due to the
uncertainty of the timing of the bankruptcy resolution, we excluded
both cash interest payments received from the borrower and the legal
costs incurred as a result of the bankruptcy proceedings from our
calculation of Adjusted EBITDA and Adjusted FFO. We have not adjusted
our 2011 Adjusted EBITDA and Adjusted FFO calculations to reflect this
change in presentation. Beginning in 2013, we will begin to record
interest income on the loan as a result of the settlement of the
bankruptcy proceedings, which will be included in the calculation of
EBITDA and FFO. We will reduce Adjusted EBITDA and Adjusted FFO for the
cash payments previously recognized in 2010 and 2011, which will be
amortized over the term of the new loan.
- Other Non-Cash and/or Unusual Items: We exclude the
effect of certain non-cash and/or unusual items because we believe they
do not reflect the underlying performance of the Company. In 2012, we
excluded the franchise termination fee paid to Radisson because we
believe that including it does not reflect the ongoing performance of
the hotel. In 2013, we will exclude the severance costs related to the
retirement of our President and Chief Operating Officer.
In addition, to derive Adjusted EBITDA
we exclude gains or losses on dispositions and impairment losses
because we believe that including them in EBITDA is not consistent with
reflecting the ongoing performance of our hotels. Additionally, the
gain or loss on dispositions and impairment losses represent either
accelerated depreciation or excess depreciation in previous periods,
and depreciation is excluded from EBITDA.
In addition, to derive Adjusted FFO we
exclude any fair value adjustments to debt instruments. Specifically,
we exclude the impact of the non-cash amortization of the debt premium
recorded in conjunction with the acquisition of the JW Marriott Denver
at Cherry Creek and fair market value adjustments to the Company's
interest rate cap agreement.
The following tables are
reconciliations of our U.S. GAAP net income (loss) to EBITDA and
Adjusted EBITDA (in thousands):
|
Fiscal
Quarter Ended December 31,
|
|
Year
Ended December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
Net
income (loss)
|
$
|
16,628
|
|
|
$
|
4,937
|
|
|
$
|
(16,592)
|
|
|
$
|
(7,678)
|
|
|
Interest
expense (1)
|
17,061
|
|
|
18,419
|
|
|
56,068
|
|
|
55,507
|
|
|
Income
tax (benefit) expense (2)
|
(1,242)
|
|
|
1,829
|
|
|
(6,046)
|
|
|
2,623
|
|
|
Real
estate deprectiation and amortization (3)
|
37,350
|
|
|
32,389
|
|
|
101,498
|
|
|
99,224
|
|
|
EBITDA
|
69,797
|
|
|
57,574
|
|
|
134,928
|
|
|
149,676
|
|
|
Non-cash
ground rent
|
2,074
|
|
|
2,118
|
|
|
6,694
|
|
|
6,996
|
|
|
Non-cash
amortization of favorable and unfavorable
contracts, net
|
(357)
|
|
|
(576)
|
|
|
(1,653)
|
|
|
(1,860)
|
|
|
Gain
(Loss) on sale of hotel properties
|
61
|
|
|
—
|
|
|
(9,479)
|
|
|
—
|
|
|
Gain
on early extinguishment of debt
|
—
|
|
|
—
|
|
|
(144)
|
|
|
—
|
|
|
Acquisition
costs
|
246
|
|
|
(84)
|
|
|
10,591
|
|
|
2,521
|
|
|
Allerton
loan interest payments
|
—
|
|
|
1,459
|
|
|
—
|
|
|
3,163
|
|
|
Allerton
loan legal fees
|
476
|
|
|
—
|
|
|
2,493
|
|
|
—
|
|
|
Franchise
termination fee
|
—
|
|
|
—
|
|
|
750
|
|
|
—
|
|
|
Litigation
settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
1,650
|
|
|
Impairment
losses (4)
|
—
|
|
|
—
|
|
45,534
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
72,297
|
|
|
$
|
60,491
|
|
|
$
|
189,714
|
|
|
$
|
162,146
|
|
|
|
(1)
Amounts include interest expense included in discontinued operations as
follows: $3.1 million in the fiscal quarter ended December 31, 2011;
$2.3 million in the year ended December 31, 2012; and $10.1 million in
the year ended December 31, 2011.
|
(2)
Amounts include income tax (expense) benefit included in discontinued
operations as follows $0.1 million in the fiscal quarter ended December
31, 2012; ($0.2) million in the fiscal quarter ended December 31, 2011;
($0.1) million in the year ended December 31, 2012; and $0.7 million in
the year ended December 31, 2011.
|
(3)
Amounts include depreciation expense included in discontinued
operations as follows: $4.2 million in the fiscal quarter ended
December 31, 2011; $1.3 million in the year ended December 31, 2012;
and $13.8 million in the year ended December 31, 2011.
|
(4)
Amount includes a $14.7 million impairment loss included in
discontinued operations.
|
|
Guidance
|
|
Pre
Renovation 2013
|
|
Full
Year 2013
|
|
Low
End
|
|
High
End
|
|
Low
End
|
|
High
End
|
Net
income (1)
|
$
|
33,558
|
|
|
$
|
40,558
|
|
|
$
|
25,558
|
|
|
$
|
33,558
|
|
Interest
expense
|
59,000
|
|
|
58,400
|
|
|
59,000
|
|
|
58,400
|
|
Income
tax expense (benefit)
|
1,600
|
|
|
4,200
|
|
|
(2,400)
|
|
|
1,200
|
|
Real
estate related depreciation and amortization
|
107,000
|
|
|
106,000
|
|
|
107,000
|
|
|
106,000
|
|
EBITDA
|
201,158
|
|
|
209,158
|
|
|
189,158
|
|
|
199,158
|
|
Non-cash
ground rent
|
6,400
|
|
|
6,400
|
|
|
6,400
|
|
|
6,400
|
|
Non-cash
amortization of favorable and unfavorable
contracts, net
|
(1,400)
|
|
|
(1,400)
|
|
|
(1,400)
|
|
|
(1,400)
|
|
Key
money write-off
|
(860)
|
|
|
(860)
|
|
|
(860)
|
|
|
(860)
|
|
Allerton
interest income
|
(1,163)
|
|
|
(1,163)
|
|
|
(1,163)
|
|
|
(1,163)
|
|
Severence
costs
|
2,865
|
|
|
2,865
|
|
|
2,865
|
|
|
2,865
|
|
Adjusted
EBITDA
|
$
|
207,000
|
|
|
$
|
215,000
|
|
|
$
|
195,000
|
|
|
$
|
205,000
|
|
(1)
Net income includes approximately $6.1 million of interest income
related to the Allerton loan.
|
The following tables are
reconciliations of our U.S. GAAP net income (loss) to FFO and Adjusted
FFO (in thousands):
|
Fiscal
Quarter Ended December 31,
|
|
Year
Ended December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
Net
income (loss)
|
$
|
16,628
|
|
|
$
|
4,937
|
|
|
$
|
(16,592)
|
|
|
$
|
(7,678)
|
|
|
Real
estate related depreciation and amortization(1)
|
37,350
|
|
|
32,389
|
|
|
101,498
|
|
|
99,224
|
|
|
Impairment
losses (2)
|
—
|
|
|
—
|
|
|
45,534
|
|
|
—
|
|
|
Loss
(gain) on sale of hotel properties
|
61
|
|
|
—
|
|
|
(9,479)
|
|
|
—
|
|
|
FFO
|
54,039
|
|
|
37,326
|
|
|
120,961
|
|
|
91,546
|
|
|
Non-cash
ground rent
|
2,074
|
|
|
2,118
|
|
|
6,694
|
|
|
6,996
|
|
|
Non-cash
amortization of favorable and unfavorable
contracts, net
|
(357)
|
|
|
(576)
|
|
|
(1,653)
|
|
|
(1,860)
|
|
|
Gain
on early extinguishment of debt
|
—
|
|
|
—
|
|
|
(144)
|
|
|
—
|
|
|
Acquisition
costs
|
246
|
|
|
(84)
|
|
|
10,591
|
|
|
2,521
|
|
|
Allerton
loan interest payments
|
—
|
|
|
1,459
|
|
|
—
|
|
|
3,163
|
|
|
Allerton
loan legal fees
|
476
|
|
|
—
|
|
|
2,493
|
|
|
—
|
|
|
Franchise
termination fee
|
—
|
|
|
—
|
|
|
750
|
|
|
—
|
|
|
Litigation
settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
1,650
|
|
|
Fair
value adjustments to debt instruments
|
(28)
|
|
|
(212)
|
|
|
471
|
|
|
(373)
|
|
|
Adjusted
FFO
|
$
|
56,450
|
|
|
$
|
40,031
|
|
|
$
|
140,163
|
|
|
$
|
103,643
|
|
|
Adjusted
FFO per share
|
$
|
0.29
|
|
|
$
|
0.24
|
|
|
$
|
0.78
|
|
|
$
|
0.62
|
|
|
|
(1)
Amounts include depreciation expense included in discontinued
operations as follows: $4.2 million in the fiscal quarter ended
December 31, 2011; $1.3 million in the year ended December 31, 2012;
and $13.8 million in the year ended December 31, 2011.
|
(2)
Amount includes a $14.7 million impairment loss included in
discontinued operations.
|
|
Guidance
|
|
Pre
Renovation
|
|
Full
Year 2013
|
|
Low
End
|
|
High
End
|
|
Low
End
|
|
High
End
|
Net
income (1)
|
$
|
33,558
|
|
|
$
|
40,558
|
|
|
$
|
25,558
|
|
|
$
|
33,558
|
|
Real
estate related depreciation and amortization
|
107,000
|
|
|
106,000
|
|
|
107,000
|
|
|
106,000
|
|
FFO
|
140,558
|
|
|
146,558
|
|
|
132,558
|
|
|
139,558
|
|
Non-cash
ground rent
|
6,400
|
|
|
6,400
|
|
|
6,400
|
|
|
6,400
|
|
Non-cash
amortization of favorable and unfavorable
contracts, net
|
(1,400)
|
|
|
(1,400)
|
|
|
(1,400)
|
|
|
(1,400)
|
|
Key
money write-off
|
(860)
|
|
|
(860)
|
|
|
(860)
|
|
|
(860)
|
|
Allerton
interest income
|
(1,163)
|
|
|
(1,163)
|
|
|
(1,163)
|
|
|
(1,163)
|
|
Severence
costs
|
2,865
|
|
|
2,865
|
|
|
2,865
|
|
|
2,865
|
|
Debt
premium amortization
|
(400)
|
|
|
(400)
|
|
|
(400)
|
|
|
(400)
|
|
Adjusted
FFO
|
$
|
146,000
|
|
|
$
|
152,000
|
|
|
$
|
138,000
|
|
|
$
|
145,000
|
|
Adjusted
FFO per share
|
$
|
0.75
|
|
|
$
|
0.78
|
|
|
$
|
0.70
|
|
|
$
|
0.74
|
|
(1)
Net income includes approximately $6.1 million of interest income
related to the Allerton loan.
|
Use and Limitations of Non-GAAP
Financial Measures
Our management and Board of Directors
use EBITDA, Adjusted EBITDA, FFO and Adjusted FFO to evaluate the
performance of our hotels and to facilitate comparisons between us and
other lodging REITs, hotel owners who are not REITs and other capital
intensive companies. The use of these non-GAAP financial measures has
certain limitations. These non-GAAP financial measures as presented by
us, may not be comparable to non-GAAP financial measures as calculated
by other real estate companies. These measures do not reflect certain
expenses or expenditures that we incurred and will incur, such as
depreciation, interest and capital expenditures. We compensate for
these limitations by separately considering the impact of these
excluded items to the extent they are material to operating decisions
or assessments of our operating performance. Our reconciliations to the
most comparable GAAP financial measures, and our consolidated
statements of operations and cash flows, include interest expense,
capital expenditures, and other excluded items, all of which should be
considered when evaluating our performance, as well as the usefulness
of our non-GAAP financial measures.
These non-GAAP financial measures are
used in addition to and in conjunction with results presented in
accordance with GAAP. They should not be considered as alternatives to
operating profit, cash flow from operations, or any other operating
performance measure prescribed by GAAP. These non-GAAP financial
measures reflect additional ways of viewing our operations that we
believe, when viewed with our GAAP results and the reconciliations to
the corresponding GAAP financial measures, provide a more complete
understanding of factors and trends affecting our business than could
be obtained absent this disclosure. We strongly encourage investors to
review our financial information in its entirety and not to rely on a
single financial measure.
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 Lexington Hotel New York. 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
|
Schedule
of Property Level Results
|
(in
thousands)
|
(unaudited)
|
|
|
Fiscal
Quarter Ended
December 31,
|
|
|
Year
Ended December 31,
|
|
|
|
2012
|
|
2011
|
|
%
Change
|
|
2012
|
|
2011
|
|
%
Change
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Rooms
|
$
189,245
|
|
$
178,210
|
|
6.2%
|
|
$
568,778
|
|
$
531,641
|
|
7.0%
|
Food
and beverage
|
63,045
|
|
60,459
|
|
4.3%
|
|
187,315
|
|
178,421
|
|
5.0%
|
Other
|
15,546
|
|
12,686
|
|
22.5%
|
|
46,290
|
|
38,492
|
|
20.3%
|
Total
revenues
|
267,836
|
|
251,355
|
|
6.6%
|
|
802,383
|
|
748,554
|
|
7.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Rooms
departmental expenses
|
47,912
|
|
45,774
|
|
4.7%
|
|
148,703
|
|
137,654
|
|
8.0%
|
Food
and beverage departmental expenses
|
43,276
|
|
41,433
|
|
4.4%
|
|
133,409
|
|
126,178
|
|
5.7%
|
Other
direct departmental
|
6,858
|
|
6,521
|
|
5.2%
|
|
21,893
|
|
20,651
|
|
6.0%
|
General
and administrative
|
21,192
|
|
21,001
|
|
0.9%
|
|
65,168
|
|
62,719
|
|
3.9%
|
Utilities
|
9,132
|
|
9,055
|
|
0.9%
|
|
28,461
|
|
28,375
|
|
0.3%
|
Repairs
and maintenance
|
11,518
|
|
11,632
|
|
(1.0%)
|
|
35,749
|
|
35,125
|
|
1.8%
|
Sales
and marketing
|
21,840
|
|
20,668
|
|
5.7%
|
|
67,050
|
|
62,820
|
|
6.7%
|
Base
management fees
|
6,914
|
|
6,326
|
|
9.3%
|
|
20,352
|
|
18,858
|
|
7.9%
|
Incentive
management fees
|
2,663
|
|
2,340
|
|
13.8%
|
|
5,556
|
|
5,205
|
|
6.7%
|
Property
taxes
|
12,073
|
|
10,071
|
|
19.9%
|
|
37,211
|
|
34,658
|
|
7.4%
|
Ground
rent
|
4,600
|
|
4,503
|
|
2.2%
|
|
14,603
|
|
14,199
|
|
2.8%
|
Other
fixed expenses
|
3,963
|
|
3,681
|
|
7.7%
|
|
11,180
|
|
10,656
|
|
4.9%
|
Total
hotel operating expenses
|
191,941
|
|
183,005
|
|
4.9%
|
|
589,335
|
|
557,098
|
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
EBITDA
|
75,895
|
|
68,350
|
|
11.0%
|
|
213,048
|
|
191,456
|
|
11.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
ground rent
|
1,941
|
|
2,067
|
|
(6.1%)
|
|
6,445
|
|
6,908
|
|
(6.7%)
|
Non-cash
amortization of
unfavorable contract liabilities
|
(426)
|
|
(426)
|
|
0.0%
|
|
(1,383)
|
|
(1,383)
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Adjusted EBITDA
|
$
77,410
|
|
$
69,991
|
|
10.6%
|
|
$
218,110
|
|
$
196,981
|
|
10.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE:
The
pro forma operating data above includes the operating results for the
Company's portfolio of 27 hotels owned as of December 31, 2012 assuming
they were owned since January 1, 2011 and excludes the operating
results of the four hotels sold during 2012.
|
|
|
Market Capitalization as of December 31, 2012
(in
thousands, except per share data)
|
|
|
|
Enterprise
Value
|
|
|
|
|
|
Common
equity capitalization (at December 31, 2012 closing price of
$9.00/share)
|
|
$
1,762,877
|
Consolidated
debt
|
|
988,731
|
Cash
and cash equivalents
|
|
(9,623)
|
|
|
|
Total
enterprise value
|
|
$
2,741,985
|
|
|
|
|
|
|
Share
Reconciliation
|
|
|
|
|
|
Common
shares outstanding
|
|
195,146
|
|
|
|
Unvested
restricted stock held by management and employees
|
|
676
|
Share
grants under deferred compensation plan held by directors
|
53
|
|
|
|
Combined
shares outstanding
|
|
195,875
|
Debt
Summary as of December 31, 2012
|
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
Property
|
|
Interest
Rate
|
|
Term
|
|
Outstanding
Principal
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
Courtyard
Manhattan / Midtown East
|
|
8.810%
|
|
Fixed
|
|
$
41,933
|
|
October
2014
|
Salt
Lake City Marriott Downtown
|
|
5.500%
|
|
Fixed
|
|
28,640
|
|
January
2015
|
Courtyard
Manhattan / Fifth Avenue
|
|
6.480%
|
|
Fixed
|
|
50,173
|
|
June
2016
|
Los
Angeles Airport Marriott
|
|
5.300%
|
|
Fixed
|
|
82,600
|
|
July
2015
|
Frenchman's
Reef Marriott
|
5.440%
|
|
Fixed
|
|
58,690
|
|
August
2015
|
Renaissance
Worthington
|
|
5.400%
|
|
Fixed
|
|
54,700
|
|
July
2015
|
Orlando
Airport Marriott
|
|
5.680%
|
|
Fixed
|
|
57,583
|
|
January
2016
|
Chicago
Marriott Downtown
|
|
5.975%
|
|
Fixed
|
|
211,477
|
|
April
2016
|
Hilton
Minneapolis
|
|
5.464%
|
|
Fixed
|
|
96,901
|
|
April
2021
|
JW
Marriott Denver Cherry Creek
|
|
6.470%
|
|
Fixed
|
|
40,761
|
|
July
2015
|
Lexington
Hotel New York
|
|
LIBOR
+ 3.00
|
|
Variable
|
|
170,368
|
|
March
2015
|
Westin
Washington D.C. City Center
|
|
3.990%
|
|
Fixed
|
|
74,000
|
|
January
2023
|
Debt
premium (1)
|
|
|
|
|
|
905
|
|
|
Total
mortgage debt
|
|
|
|
|
|
968,731
|
|
|
|
|
|
|
|
|
|
|
|
Senior
unsecured credit facility
|
|
LIBOR
+ 1.90
|
|
Variable
|
|
20,000
|
|
January
2017
|
Total
debt
|
|
|
|
$
988,731
|
|
|
(1)
Non-cash GAAP adjustment recorded upon the assumption of the JW
Marriott Denver at Cherry Creek mortgage debt in 2011.
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma Operating Statistics – Fourth Quarter (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
Occupancy
|
|
RevPAR
|
|
Hotel
Adjusted EBITDA Margin
|
|
|
4Q
2012
|
4Q
2011
|
B/(W)
|
|
4Q
2012
|
4Q
2011
|
B/(W)
|
|
4Q
2012
|
4Q
2011
|
B/(W)
|
|
4Q
2012
|
4Q
2011
|
B/(W)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta
Alpharetta
|
|
$
140.21
|
$
128.67
|
9.0%
|
|
63.6%
|
67.4%
|
(3.8%)
|
|
$ 89.15
|
$ 86.78
|
2.7%
|
|
27.29%
|
27.33%
|
-4 bps
|
Bethesda
Marriott Suites
|
|
$
171.49
|
$
174.97
|
(2.0%)
|
|
63.2%
|
63.3%
|
(0.1%)
|
|
$
108.32
|
$
110.72
|
(2.2%)
|
|
26.05%
|
26.68%
|
-63 bps
|
Boston
Westin (2)
|
|
$
223.12
|
$
211.66
|
5.4%
|
|
67.4%
|
65.7%
|
1.7%
|
|
$
150.49
|
$
139.05
|
8.2%
|
|
26.88%
|
24.76%
|
212 bps
|
Hilton
Boston Downtown (2)
|
|
$
231.45
|
$
220.66
|
4.9%
|
|
68.5%
|
75.0%
|
(6.5%)
|
|
$
158.56
|
$
165.55
|
(4.2%)
|
|
30.17%
|
37.39%
|
-722
bps
|
Hilton
Burlington (2)
|
|
$
156.25
|
$
145.61
|
7.3%
|
|
74.2%
|
74.5%
|
(0.3%)
|
|
$
115.94
|
$
108.51
|
6.8%
|
|
36.51%
|
50.17%
|
-1366
bps
|
Renaissance
Charleston
|
|
$
173.50
|
$
164.23
|
5.6%
|
|
85.4%
|
84.2%
|
1.2%
|
|
$
148.12
|
$
138.28
|
7.1%
|
|
33.36%
|
29.76%
|
360 bps
|
Hilton
Garden Inn Chelsea (2)
|
|
$
261.27
|
$
248.59
|
5.1%
|
|
98.5%
|
93.6%
|
4.9%
|
|
$
257.33
|
$
232.61
|
10.6%
|
|
50.73%
|
51.44%
|
-71 bps
|
Chicago
Marriott
|
|
$
214.94
|
$
204.72
|
5.0%
|
|
78.2%
|
78.1%
|
0.1%
|
|
$
168.01
|
$
159.83
|
5.1%
|
|
28.65%
|
30.10%
|
-145
bps
|
Chicago
Conrad (2)
|
|
$
236.47
|
$
219.55
|
7.7%
|
|
82.4%
|
82.8%
|
(0.4%)
|
|
$
194.75
|
$
181.86
|
7.1%
|
|
34.47%
|
36.24%
|
-177
bps
|
Courtyard
Denver Downtown (2)
|
|
$
161.28
|
$
148.15
|
8.9%
|
|
83.3%
|
84.1%
|
(0.8%)
|
|
$
134.28
|
$
124.60
|
7.8%
|
|
44.28%
|
42.92%
|
136 bps
|
Courtyard
Fifth Avenue
|
|
$
315.53
|
$
295.00
|
7.0%
|
|
96.8%
|
89.4%
|
7.4%
|
|
$
305.55
|
$
263.70
|
15.9%
|
|
39.70%
|
33.64%
|
606 bps
|
Courtyard
Midtown East
|
|
$
312.37
|
$
305.03
|
2.4%
|
|
88.8%
|
84.2%
|
4.6%
|
|
$
277.54
|
$
256.85
|
8.1%
|
|
41.08%
|
41.44%
|
-36 bps
|
Frenchman's
Reef (2)
|
|
$
200.04
|
$
208.56
|
(4.1%)
|
|
68.8%
|
78.1%
|
(9.3%)
|
|
$
137.68
|
$
162.94
|
(15.5%)
|
|
8.39%
|
(24.47%)
|
3286
bps
|
JW
Marriott Denver Cherry Creek (2)
|
|
$
229.58
|
$
226.27
|
1.5%
|
|
79.3%
|
75.3%
|
4.0%
|
|
$
182.04
|
$
170.35
|
6.9%
|
|
30.70%
|
30.80%
|
-10 bps
|
Los
Angeles Airport
|
|
$
107.22
|
$
102.98
|
4.1%
|
|
83.9%
|
80.9%
|
3.0%
|
|
$ 90.00
|
$ 83.27
|
8.1%
|
|
15.83%
|
11.18%
|
465 bps
|
Hilton
Minneapolis (2)
|
|
$
149.81
|
$
148.32
|
1.0%
|
|
70.0%
|
68.6%
|
1.4%
|
|
$
104.83
|
$
101.79
|
3.0%
|
|
28.46%
|
27.00%
|
146 bps
|
Oak
Brook Hills
|
|
$
132.72
|
$
119.05
|
11.5%
|
|
52.9%
|
54.0%
|
(1.1%)
|
|
$ 70.19
|
$ 64.34
|
9.1%
|
|
12.58%
|
9.96%
|
262 bps
|
Orlando
Airport Marriott
|
|
$ 99.35
|
$ 96.94
|
2.5%
|
|
68.0%
|
69.8%
|
(1.8%)
|
|
$ 67.52
|
$ 67.66
|
(0.2%)
|
|
20.06%
|
17.94%
|
212 bps
|
Hotel
Rex (2)
|
|
$
189.15
|
$
168.21
|
12.4%
|
|
81.4%
|
79.4%
|
2.0%
|
|
$
153.89
|
$
133.47
|
15.3%
|
|
37.52%
|
32.61%
|
491 bps
|
Salt
Lake City Marriott
|
|
$
129.47
|
$
127.82
|
1.3%
|
|
67.5%
|
58.1%
|
9.4%
|
|
$ 87.40
|
$ 74.23
|
17.7%
|
|
31.22%
|
24.37%
|
685 bps
|
The
Lodge at Sonoma
|
|
$
242.15
|
$
231.82
|
4.5%
|
|
75.0%
|
69.3%
|
5.7%
|
|
$
181.68
|
$
160.61
|
13.1%
|
|
26.45%
|
25.89%
|
56 bps
|
Torrance
Marriott South Bay
|
|
$
110.41
|
$
104.63
|
5.5%
|
|
78.5%
|
81.3%
|
(2.8%)
|
|
$ 86.69
|
$ 85.05
|
1.9%
|
|
25.72%
|
23.82%
|
190 bps
|
Vail
Marriott (2)
|
|
$
211.51
|
$
197.87
|
6.9%
|
|
55.8%
|
51.7%
|
4.1%
|
|
$
118.06
|
$
102.23
|
15.5%
|
|
18.07%
|
11.96%
|
611 bps
|
Lexington
Hotel New York (2)
|
|
$
237.45
|
$
241.34
|
(1.6%)
|
|
95.2%
|
95.8%
|
(0.6%)
|
|
$
225.97
|
$
231.32
|
(2.3%)
|
|
45.28%
|
44.72%
|
56 bps
|
Westin
San Diego (2)
|
|
$
144.03
|
$
146.21
|
(1.5%)
|
|
76.4%
|
72.0%
|
4.4%
|
|
$
110.08
|
$
105.29
|
4.5%
|
|
27.45%
|
31.93%
|
-448
bps
|
Westin
Washington D.C. City Center (2)
|
|
$
193.93
|
$
198.61
|
(2.4%)
|
|
70.3%
|
74.7%
|
(4.4%)
|
|
$
136.27
|
$
148.33
|
(8.1%)
|
|
31.51%
|
41.04%
|
-953
bps
|
Renaissance
Worthington
|
|
$
173.21
|
$
151.96
|
14.0%
|
|
64.4%
|
72.7%
|
(8.3%)
|
|
$
111.56
|
$
110.48
|
1.0%
|
|
31.12%
|
28.23%
|
289 bps
|
Total/Weighted
Average
|
|
$
185.02
|
$
178.55
|
3.6%
|
|
74.7%
|
74.5%
|
0.2%
|
|
$
138.24
|
$
133.03
|
3.9%
|
|
28.90%
|
27.85%
|
105 bps
|
|
(1)
The pro forma operating data includes the operating results for the
Company's 27 hotels assuming they were owned since January 1, 2011.
|
(2)
The hotel reports results on a monthly basis. The data presented is
based upon the Company's reporting calendar for the fourth quarter and
includes the months of September through December.
|
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma Operating Statistics – Full Year (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
Occupancy
|
|
RevPAR
|
|
Hotel
Adjusted EBITDA Margin
|
|
|
YTD
2012
|
YTD
2011
|
B/(W)
|
|
YTD
2012
|
YTD
2011
|
B/(W)
|
|
YTD
2012
|
YTD
2011
|
B/(W)
|
|
YTD
2012
|
YTD
2011
|
B/(W)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta
Alpharetta
|
|
$
139.59
|
$
132.24
|
5.6%
|
|
66.0%
|
67.8%
|
(1.8%)
|
|
$ 92.11
|
$ 89.70
|
2.7%
|
|
29.90%
|
29.21%
|
69 bps
|
Bethesda
Marriott Suites
|
|
$
166.08
|
$
169.54
|
(2.0%)
|
|
64.8%
|
64.4%
|
0.4%
|
|
$
107.69
|
$
109.20
|
(1.4%)
|
|
26.08%
|
25.88%
|
20 bps
|
Boston
Westin
|
|
$
203.85
|
$
197.64
|
3.1%
|
|
73.3%
|
69.7%
|
3.6%
|
|
$
149.46
|
$
137.69
|
8.5%
|
|
23.39%
|
23.74%
|
-35 bps
|
Hilton
Boston Downtown
|
|
$
220.59
|
$
205.82
|
7.2%
|
|
76.0%
|
77.6%
|
(1.6%)
|
|
$
167.68
|
$
159.63
|
5.0%
|
|
35.67%
|
37.01%
|
-134
bps
|
Hilton
Burlington
|
|
$
156.57
|
$
144.23
|
8.6%
|
|
73.8%
|
69.7%
|
4.1%
|
|
$
115.55
|
$
100.51
|
15.0%
|
|
37.13%
|
35.79%
|
134 bps
|
Renaissance
Charleston
|
|
$
180.50
|
$
167.50
|
7.8%
|
|
85.1%
|
84.6%
|
0.5%
|
|
$
153.58
|
$
141.74
|
8.4%
|
|
34.36%
|
32.28%
|
208 bps
|
Hilton
Garden Inn Chelsea
|
|
$
217.77
|
$
213.29
|
2.1%
|
|
96.1%
|
92.6%
|
3.5%
|
|
$
209.30
|
$
197.42
|
6.0%
|
|
44.02%
|
46.10%
|
-208
bps
|
Chicago
Marriott
|
|
$
200.80
|
$
191.48
|
4.9%
|
|
74.1%
|
72.8%
|
1.3%
|
|
$
148.78
|
$
139.43
|
6.7%
|
|
23.50%
|
23.89%
|
-39 bps
|
Chicago
Conrad
|
|
$
213.51
|
$
198.14
|
7.8%
|
|
80.2%
|
83.9%
|
(3.7%)
|
|
$
171.18
|
$
166.33
|
2.9%
|
|
29.52%
|
30.82%
|
-130
bps
|
Courtyard
Denver Downtown
|
|
$
159.29
|
$
152.56
|
4.4%
|
|
84.6%
|
80.5%
|
4.1%
|
|
$
134.83
|
$
122.84
|
9.8%
|
|
45.46%
|
43.11%
|
235 bps
|
Courtyard
Fifth Avenue
|
|
$
274.04
|
$
260.09
|
5.4%
|
|
91.7%
|
86.9%
|
4.8%
|
|
$
251.29
|
$
226.07
|
11.2%
|
|
30.96%
|
27.97%
|
299 bps
|
Courtyard
Midtown East
|
|
$
269.79
|
$
262.99
|
2.6%
|
|
86.7%
|
83.5%
|
3.2%
|
|
$
233.91
|
$
219.68
|
6.5%
|
|
34.59%
|
34.34%
|
25 bps
|
Frenchman's
Reef
|
|
$
228.17
|
$
229.24
|
(0.5%)
|
|
78.7%
|
81.8%
|
(3.1%)
|
|
$
179.48
|
$
187.53
|
(4.3%)
|
|
19.51%
|
(1.20%)
|
2071
bps
|
JW
Marriott Denver Cherry Creek
|
|
$
227.24
|
$
230.21
|
(1.3%)
|
|
76.4%
|
72.8%
|
3.6%
|
|
$
173.69
|
$
167.59
|
3.6%
|
|
29.72%
|
29.33%
|
39 bps
|
Los
Angeles Airport
|
|
$
109.11
|
$
104.15
|
4.8%
|
|
86.7%
|
84.6%
|
2.1%
|
|
$ 94.64
|
$ 88.12
|
7.4%
|
|
18.49%
|
15.72%
|
277 bps
|
Hilton
Minneapolis
|
|
$
143.19
|
$
142.22
|
0.7%
|
|
72.6%
|
73.7%
|
(1.1%)
|
|
$
103.99
|
$
104.87
|
(0.8%)
|
|
27.12%
|
29.24%
|
-212
bps
|
Oak
Brook Hills
|
|
$
120.39
|
$
115.30
|
4.4%
|
|
56.6%
|
54.3%
|
2.3%
|
|
$ 68.12
|
$ 62.64
|
8.7%
|
|
9.69%
|
9.04%
|
65 bps
|
Orlando
Airport Marriott
|
|
$
103.82
|
$ 99.05
|
4.8%
|
|
72.2%
|
74.9%
|
(2.7%)
|
|
$ 74.97
|
$ 74.19
|
1.1%
|
|
23.53%
|
20.83%
|
270 bps
|
Hotel
Rex
|
|
$
178.93
|
$
155.20
|
15.3%
|
|
84.8%
|
81.3%
|
3.5%
|
|
$
151.72
|
$
126.24
|
20.2%
|
|
36.58%
|
30.45%
|
613 bps
|
Salt
Lake City Marriott
|
|
$
134.07
|
$
127.40
|
5.2%
|
|
66.4%
|
59.4%
|
7.0%
|
|
$ 89.07
|
$ 75.64
|
17.8%
|
|
29.64%
|
25.10%
|
454 bps
|
The
Lodge at Sonoma
|
|
$
235.86
|
$
217.76
|
8.3%
|
|
72.1%
|
70.4%
|
1.7%
|
|
$
170.05
|
$
153.32
|
10.9%
|
|
21.81%
|
18.75%
|
306 bps
|
Torrance
Marriott South Bay
|
|
$
110.15
|
$
105.31
|
4.6%
|
|
82.6%
|
81.2%
|
1.4%
|
|
$ 90.95
|
$ 85.46
|
6.4%
|
|
25.62%
|
24.56%
|
106 bps
|
Vail
Marriott
|
|
$
225.47
|
$
218.23
|
3.3%
|
|
63.7%
|
61.1%
|
2.6%
|
|
$
143.72
|
$
133.33
|
7.8%
|
|
27.82%
|
25.41%
|
241 bps
|
Lexington
Hotel New York
|
|
$
205.70
|
$
200.70
|
2.5%
|
|
94.8%
|
95.5%
|
(0.7%)
|
|
$
195.01
|
$
191.72
|
1.7%
|
|
35.99%
|
36.90%
|
-91 bps
|
Westin
San Diego
|
|
$
149.32
|
$
144.54
|
3.3%
|
|
79.3%
|
77.6%
|
1.7%
|
|
$
118.40
|
$
112.19
|
5.5%
|
|
30.04%
|
32.63%
|
-259
bps
|
Westin
Washington D.C. City Center
|
|
$
193.77
|
$
196.49
|
(1.4%)
|
|
73.2%
|
76.3%
|
(3.1%)
|
|
$
141.93
|
$
149.99
|
(5.4%)
|
|
34.43%
|
38.13%
|
-370
bps
|
Renaissance
Worthington
|
|
$
161.04
|
$
157.00
|
2.6%
|
|
68.3%
|
71.9%
|
(3.6%)
|
|
$
109.93
|
$
112.83
|
(2.6%)
|
|
29.26%
|
29.79%
|
-53 bps
|
Total/Weighted
Average
|
|
$
175.43
|
$
168.61
|
4.0%
|
|
76.6%
|
75.7%
|
0.9%
|
|
$
134.36
|
$
127.61
|
5.3%
|
|
27.18%
|
26.31%
|
87 bps
|
|
(1)
The pro forma operating data includes the operating results for the
Company's 27 hotels assuming they were owned since January 1, 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma Hotel Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2012 (1)
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
|
|
Total
Revenues
|
|
Net
Income / (Loss)
|
Depreciation
|
Interest
Expense
|
Non-Cash
Adjustments
(2)
|
Hotel
Adjusted EBITDA
|
Atlanta
Alpharetta
|
|
$ 4,680
|
|
$ 806
|
$ 471
|
$ -
|
$ -
|
$ 1,277
|
Bethesda
Marriott Suites
|
|
$ 4,753
|
|
$
(1,343)
|
$ 637
|
$ -
|
$ 1,944
|
$ 1,238
|
Boston
Westin (3)
|
|
$
24,786
|
|
$ 4,043
|
$ 2,618
|
$ -
|
$ 2
|
$ 6,663
|
Hilton
Boston Downtown (3)
|
|
$ 7,696
|
|
$ 577
|
$ 1,745
|
$ -
|
$ -
|
$ 2,322
|
Hilton
Burlington (3)
|
|
$ 4,779
|
|
$ 686
|
$ 1,031
|
$ -
|
$ 28
|
$ 1,745
|
Renaissance
Charleston
|
|
$ 3,504
|
|
$ 735
|
$ 473
|
$ -
|
$ (39)
|
$ 1,169
|
Hilton
Garden Inn Chelsea (3)
|
|
$ 5,468
|
|
$ 2,191
|
$ 583
|
$ -
|
$ -
|
$ 2,774
|
Chicago
Marriott
|
|
$
34,882
|
|
$ 2,361
|
$ 4,087
|
$ 4,033
|
$ (487)
|
$ 9,994
|
Chicago
Conrad (3)
|
|
$ 9,599
|
|
$ 2,161
|
$ 1,148
|
$ -
|
$ -
|
$ 3,309
|
Courtyard
Denver Downtown (3)
|
|
$ 3,112
|
|
$ 1,058
|
$ 320
|
$ -
|
$ -
|
$ 1,378
|
Courtyard
Fifth Avenue
|
|
$ 6,559
|
|
$ 1,067
|
$ 405
|
$ 1,068
|
$ 64
|
$ 2,604
|
Courtyard
Midtown East
|
|
$
10,302
|
|
$ 2,263
|
$ 724
|
$ 1,245
|
$ -
|
$ 4,232
|
Frenchman's
Reef (3)
|
|
$
15,591
|
|
$
(1,758)
|
$ 2,027
|
$ 1,039
|
$ -
|
$ 1,308
|
JW
Marriott Denver Cherry Creek (3)
|
|
$ 7,062
|
|
$ 812
|
$ 602
|
$ 754
|
$ -
|
$ 2,168
|
Los
Angeles Airport
|
|
$
16,942
|
|
$ (489)
|
$ 1,765
|
$ 1,406
|
$ -
|
$ 2,682
|
Minneapolis
Hilton (3)
|
|
$
16,537
|
|
$ 845
|
$ 2,363
|
$ 1,724
|
$ (226)
|
$ 4,706
|
Oak
Brook Hills
|
|
$ 7,051
|
|
$ 466
|
$ 310
|
$ -
|
$ 111
|
$ 887
|
Orlando
Airport Marriott
|
|
$ 5,913
|
|
$ (801)
|
$ 945
|
$ 1,042
|
$ -
|
$ 1,186
|
Hotel
Rex
|
|
$ 2,036
|
|
$ 490
|
$ 274
|
$ -
|
$ -
|
$ 764
|
Salt
Lake City Marriott
|
|
$ 7,783
|
|
$ 992
|
$ 929
|
$ 509
|
$ -
|
$ 2,430
|
The
Lodge at Sonoma
|
|
$ 6,392
|
|
$ 1,229
|
$ 462
|
$ -
|
$ -
|
$ 1,691
|
Torrance
Marriott South Bay
|
|
$ 7,169
|
|
$ 903
|
$ 941
|
$ -
|
$ -
|
$ 1,844
|
Vail
Marriott (3)
|
|
$ 7,060
|
|
$ 538
|
$ 738
|
$ -
|
$ -
|
$ 1,276
|
Lexington Hotel New York (3)
|
|
$
20,757
|
|
$ 321
|
$ 6,682
|
$ 2,351
|
$ 44
|
$ 9,398
|
Westin
San Diego (3)
|
|
$ 8,336
|
|
$ 934
|
$ 1,298
|
$ -
|
$ 56
|
$ 2,288
|
Westin
Washington D.C. City Center (3)
|
|
$ 8,474
|
|
$ 1,089
|
$ 1,523
|
$ -
|
$ 58
|
$ 2,670
|
Renaissance
Worthington
|
|
$
10,613
|
|
$ 1,463
|
$ 888
|
$ 949
|
$ 3
|
$ 3,303
|
Total
|
|
$
267,836
|
|
$
23,639
|
$
35,989
|
$
16,120
|
$ 1,558
|
$
77,410
|
|
(1)
The pro forma operating data includes the operating results for the
Company's 27 hotels assuming they were owned since January 1, 2011.
|
(2)
The non-cash adjustments include expenses incurred by the hotels due to
the straight lining of the rent from 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 fourth quarter and
include the months of September through December.
|
|
|
Pro
Forma Hotel Adjusted EBITDA Reconciliation
|
|
|
Fourth
Quarter 2011 (1)
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
|
|
Total
Revenues
|
|
Net
Income / (Loss)
|
Depreciation
|
Interest
Expense
|
Non-Cash
Adjustments
(2)
|
Hotel
Adjusted EBITDA
|
Atlanta
Alpharetta
|
|
$ 4,632
|
|
$ 876
|
$ 390
|
$ -
|
$ -
|
$ 1,266
|
Bethesda
Marriott Suites
|
|
$ 4,760
|
|
$
(1,301)
|
$ 643
|
$ -
|
$ 1,928
|
$ 1,270
|
Boston
Westin (3)
|
|
$
22,803
|
|
$ 1,640
|
$ 3,849
|
$ -
|
$ 156
|
$ 5,645
|
Hilton
Boston Downtown (3)
|
|
$ 9,003
|
|
$ 1,950
|
$ 1,416
|
$ -
|
$ -
|
$ 3,366
|
Hilton
Burlington (3)
|
|
$ 4,618
|
|
$ 1,726
|
$ 563
|
$ -
|
$ 28
|
$ 2,317
|
Renaissance
Charleston
|
|
$ 3,233
|
|
$ 537
|
$ 464
|
$ -
|
$ (39)
|
$ 962
|
Hilton
Garden Inn Chelsea (3)
|
|
$ 4,930
|
|
$ 1,953
|
$ 583
|
$ -
|
$ -
|
$ 2,536
|
Chicago
Marriott
|
|
$
32,508
|
|
$ 2,304
|
$ 3,982
|
$ 3,984
|
$ (486)
|
$ 9,784
|
Chicago
Conrad (3)
|
|
$ 8,952
|
|
$ 1,964
|
$ 1,280
|
$ -
|
$ -
|
$ 3,244
|
Courtyard
Denver Downtown (3)
|
|
$ 2,922
|
|
$ 500
|
$ 311
|
$ 443
|
$ -
|
$ 1,254
|
Courtyard
Fifth Avenue
|
|
$ 5,589
|
|
$ 172
|
$ 593
|
$ 1,051
|
$ 64
|
$ 1,880
|
Courtyard
Midtown East
|
|
$ 9,391
|
|
$ 1,949
|
$ 709
|
$ 1,234
|
$ -
|
$ 3,892
|
Frenchman's
Reef (3)
|
|
$
10,268
|
|
$
(5,203)
|
$ 1,803
|
$ 887
|
$ -
|
$
(2,513)
|
JW
Marriott Denver Cherry Creek (3)
|
|
$ 6,902
|
|
$ 801
|
$ 559
|
$ 766
|
$ -
|
$ 2,126
|
Los
Angeles Airport
|
|
$
15,727
|
|
$
(1,406)
|
$ 1,796
|
$ 1,369
|
$ -
|
$ 1,759
|
Minneapolis
Hilton (3)
|
|
$
16,788
|
|
$ 828
|
$ 2,274
|
$ 1,725
|
$ (294)
|
$ 4,533
|
Oak
Brook Hills
|
|
$ 6,516
|
|
$ (500)
|
$ 982
|
$ -
|
$ 167
|
$ 649
|
Orlando
Airport Marriott
|
|
$ 5,842
|
|
$ (977)
|
$ 997
|
$ 1,028
|
$ -
|
$ 1,048
|
Hotel
Rex
|
|
$ 1,748
|
|
$ 296
|
$ 274
|
$ -
|
$ -
|
$ 570
|
Salt
Lake City Marriott
|
|
$ 6,418
|
|
$ 209
|
$ 833
|
$ 522
|
$ -
|
$ 1,564
|
The
Lodge at Sonoma
|
|
$ 5,512
|
|
$ 977
|
$ 450
|
$ -
|
$ -
|
$ 1,427
|
Torrance
Marriott South Bay
|
|
$ 7,036
|
|
$ 692
|
$ 984
|
$ -
|
$ -
|
$ 1,676
|
Vail
Marriott (3)
|
|
$ 6,110
|
|
$ 5
|
$ 726
|
$ -
|
$ -
|
$ 731
|
Lexington
Hotel New York (3)
|
|
$
21,275
|
|
$ 6,326
|
$ 3,140
|
$ 4
|
$ 44
|
$ 9,514
|
Westin
San Diego (3)
|
|
$ 8,437
|
|
$ 1,529
|
$ 1,109
|
$ -
|
$ 56
|
$ 2,694
|
Westin
Washington D.C. City Center (3)
|
|
$ 9,409
|
|
$ 2,477
|
$ 1,326
|
$ -
|
$ 58
|
$ 3,861
|
Renaissance
Worthington
|
|
$
10,026
|
|
$ 1,034
|
$ 855
|
$ 937
|
$ 4
|
$ 2,830
|
Total
|
|
$
251,355
|
|
$
21,358
|
$
32,891
|
$
13,950
|
$ 1,686
|
$
69,991
|
|
(1)
The pro forma operating data includes the operating results for the
Company's 27 hotels assuming they were owned as of January 1, 2011.
|
(2)
The non-cash adjustments include expenses incurred by the hotels due to
the straight lining of the rent from 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 amounts presented are
based on the Company's reporting calendar for the fourth quarter and
include the months of September through December.
|
|
Pro
Forma Hotel Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year 2012 (1)
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
|
|
Total
Revenues
|
|
Net
Income / (Loss)
|
Depreciation
|
Interest
Expense
|
Non-Cash
Adjustments
(2)
|
Hotel
Adjusted EBITDA
|
Atlanta
Alpharetta
|
|
$
15,340
|
|
$ 3,237
|
$ 1,350
|
$ -
|
$ -
|
$ 4,587
|
Bethesda
Marriott Suites
|
|
$
14,928
|
|
$
(4,447)
|
$ 2,073
|
$ -
|
$ 6,267
|
$ 3,893
|
Boston
Westin
|
|
$
72,755
|
|
$ 8,312
|
$ 8,700
|
$ -
|
$ 7
|
$
17,019
|
Hilton
Boston Downtown
|
|
$
24,393
|
|
$ 3,031
|
$ 5,671
|
$ -
|
$ -
|
$ 8,702
|
Hilton
Burlington
|
|
$
14,000
|
|
$ 1,758
|
$ 3,349
|
$ -
|
$ 91
|
$ 5,198
|
Renaissance
Charleston
|
|
$
11,379
|
|
$ 2,512
|
$ 1,524
|
$ -
|
$ (126)
|
$ 3,910
|
Hilton
Garden Inn Chelsea
|
|
$
13,387
|
|
$ 3,999
|
$ 1,894
|
$ -
|
$ -
|
$ 5,893
|
Chicago
Marriott
|
|
$
96,735
|
|
$
(1,663)
|
$
12,978
|
$
13,003
|
$
(1,581)
|
$
22,737
|
Chicago
Conrad
|
|
$
25,580
|
|
$ 4,083
|
$ 3,469
|
$ -
|
$ -
|
$ 7,552
|
Courtyard
Denver Downtown
|
|
$ 9,393
|
|
$ 3,067
|
$ 1,028
|
$ 175
|
$ -
|
$ 4,270
|
Courtyard
Fifth Avenue
|
|
$
17,202
|
|
$ (17)
|
$ 1,693
|
$ 3,443
|
$ 207
|
$ 5,326
|
Courtyard
Midtown East
|
|
$
27,787
|
|
$ 3,291
|
$ 2,372
|
$ 3,949
|
$ -
|
$ 9,612
|
Frenchman's
Reef
|
|
$
55,752
|
|
$ 1,086
|
$ 6,421
|
$ 3,372
|
$ -
|
$
10,879
|
JW
Marriott Denver Cherry Creek
|
|
$
20,076
|
|
$ 1,686
|
$ 1,867
|
$ 2,414
|
$ -
|
$ 5,967
|
Los
Angeles Airport
|
|
$
56,728
|
|
$ 173
|
$ 5,800
|
$ 4,514
|
$ -
|
$
10,487
|
Minneapolis
Hilton
|
|
$
49,075
|
|
$ 835
|
$ 7,622
|
$ 5,524
|
$ (671)
|
$
13,310
|
Oak
Brook Hills
|
|
$
21,946
|
|
$ (863)
|
$ 2,504
|
$ -
|
$ 486
|
$ 2,127
|
Orlando
Airport Marriott
|
|
$
20,047
|
|
$
(1,665)
|
$ 3,024
|
$ 3,359
|
$ -
|
$ 4,718
|
Hotel
Rex
|
|
$ 5,960
|
|
$ 1,288
|
$ 892
|
$ -
|
$ -
|
$ 2,180
|
Salt
Lake City Marriott
|
|
$
24,136
|
|
$ 2,613
|
$ 2,876
|
$ 1,664
|
$ -
|
$ 7,153
|
The
Lodge at Sonoma
|
|
$
18,994
|
|
$ 2,637
|
$ 1,506
|
$ -
|
$ -
|
$ 4,143
|
Torrance
Marriott South Bay
|
|
$
22,759
|
|
$ 2,682
|
$ 3,148
|
$ -
|
$ -
|
$ 5,830
|
Vail
Marriott
|
|
$
25,503
|
|
$ 4,731
|
$ 2,363
|
$ -
|
$ -
|
$ 7,094
|
Lexington Hotel New York
|
|
$
53,904
|
|
$
(1,238)
|
$
13,798
|
$ 6,695
|
$ 145
|
$
19,400
|
Westin
San Diego
|
|
$
26,288
|
|
$ 3,499
|
$ 4,217
|
$ -
|
$ 182
|
$ 7,898
|
Westin
Washington D.C. City Center
|
|
$
26,196
|
|
$ 3,879
|
$ 4,950
|
$ -
|
$ 189
|
$ 9,018
|
Renaissance
Worthington
|
|
$
32,140
|
|
$ 3,460
|
$ 2,871
|
$ 3,061
|
$ 11
|
$ 9,403
|
Total
|
|
$
802,383
|
|
$
51,966
|
$
109,960
|
$
51,173
|
$ 5,207
|
$
218,110
|
|
(1)
The pro forma operating data includes the operating results for the
Company's 27 hotels assuming they were owned since January 1, 2011.
|
(2)
The non-cash adjustments include expenses incurred by the hotels due to
the straight lining of the rent from ground lease obligations, the
non-cash amortization of favorable lease assets, and the non-cash
amortization of unfavorable contract liabilities.
|
|
Pro
Forma Hotel Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year 2011 (1)
|
|
|
|
|
|
Plus:
|
Plus:
|
Plus:
|
Equals:
|
|
|
Total
Revenues
|
|
Net
Income / (Loss)
|
Depreciation
|
Interest
Expense
|
Non-Cash
Adjustments
(2)
|
Hotel
Adjusted EBITDA
|
Atlanta
Alpharetta
|
|
$
15,219
|
|
$ 3,195
|
$ 1,251
|
$ -
|
$ -
|
$ 4,446
|
Bethesda
Marriott Suites
|
|
$
15,092
|
|
$
(4,459)
|
$ 2,094
|
$ -
|
$ 6,271
|
$ 3,906
|
Boston
Westin
|
|
$
66,564
|
|
$ 2,808
|
$
12,486
|
$ -
|
$ 507
|
$
15,801
|
Hilton
Boston Downtown
|
|
$
25,826
|
|
$ 4,955
|
$ 4,603
|
$ -
|
$ -
|
$ 9,558
|
Hilton
Burlington
|
|
$
12,505
|
|
$ 2,555
|
$ 1,829
|
$ -
|
$ 91
|
$ 4,475
|
Renaissance
Charleston
|
|
$
10,540
|
|
$ 2,060
|
$ 1,468
|
$ -
|
$ (126)
|
$ 3,402
|
Hilton
Garden Inn Chelsea
|
|
$
12,544
|
|
$ 3,918
|
$ 1,865
|
$ -
|
$ -
|
$ 5,783
|
Chicago
Marriott
|
|
$
90,912
|
|
$
(3,081)
|
$
13,200
|
$
13,182
|
$
(1,581)
|
$
21,720
|
Chicago
Conrad
|
|
$
24,904
|
|
$ 2,979
|
$ 4,697
|
$ -
|
$ -
|
$ 7,676
|
Courtyard
Denver Downtown
|
|
$ 8,595
|
|
$ 1,122
|
$ 1,135
|
$ 1,448
|
$ -
|
$ 3,705
|
Courtyard
Fifth Avenue
|
|
$
15,547
|
|
$
(1,233)
|
$ 1,909
|
$ 3,465
|
$ 207
|
$ 4,348
|
Courtyard
Midtown East
|
|
$
26,068
|
|
$ 2,658
|
$ 2,302
|
$ 3,991
|
$ -
|
$ 8,951
|
Frenchman's
Reef
|
|
$
34,367
|
|
$
(8,092)
|
$ 4,705
|
$ 2,976
|
$ -
|
$ (411)
|
JW
Marriott Denver Cherry Creek
|
|
$
19,628
|
|
$ 1,464
|
$ 1,817
|
$ 2,476
|
$ -
|
$ 5,757
|
Los
Angeles Airport
|
|
$
52,726
|
|
$
(2,026)
|
$ 5,816
|
$ 4,500
|
$ -
|
$ 8,290
|
Minneapolis
Hilton
|
|
$
50,769
|
|
$ 4,266
|
$ 7,348
|
$ 3,998
|
$ (768)
|
$
14,844
|
Oak
Brook Hills
|
|
$
20,471
|
|
$
(1,882)
|
$ 3,191
|
$ -
|
$ 542
|
$ 1,851
|
Orlando
Airport Marriott
|
|
$
19,699
|
|
$
(2,549)
|
$ 3,257
|
$ 3,395
|
$ -
|
$ 4,103
|
Hotel
Rex
|
|
$ 4,963
|
|
$ 619
|
$ 892
|
$ -
|
$ -
|
$ 1,511
|
Salt
Lake City Marriott
|
|
$
20,990
|
|
$ 806
|
$ 2,718
|
$ 1,744
|
$ -
|
$ 5,268
|
The
Lodge at Sonoma
|
|
$
16,924
|
|
$ 1,750
|
$ 1,423
|
$ -
|
$ -
|
$ 3,173
|
Torrance
Marriott South Bay
|
|
$
22,093
|
|
$ 2,239
|
$ 3,188
|
$ -
|
$ -
|
$ 5,427
|
Vail
Marriott
|
|
$
23,225
|
|
$ 3,647
|
$ 2,254
|
$ -
|
$ -
|
$ 5,901
|
Lexington
Hotel New York
|
|
$
52,767
|
|
$ 9,119
|
$
10,189
|
$ 13
|
$ 148
|
$
19,469
|
Westin
San Diego
|
|
$
25,356
|
|
$ 4,487
|
$ 3,604
|
$ -
|
$ 182
|
$ 8,273
|
Westin
Washington D.C. City Center
|
|
$
28,316
|
|
$ 6,298
|
$ 4,311
|
$ -
|
$ 189
|
$
10,798
|
Renaissance
Worthington
|
|
$
31,944
|
|
$ 3,674
|
$ 2,732
|
$ 3,098
|
$ 11
|
$ 9,515
|
Total
|
|
$
748,554
|
|
$
41,297
|
$
106,284
|
$
44,286
|
$ 5,673
|
$
196,981
|
|
(1)
The pro forma operating data includes the operating results for the
Company's 27 hotels assuming they were owned since January 1, 2011.
|
(2)
The non-cash adjustments include expenses incurred by the hotels due to
the straight lining of the rent from ground lease obligations, the
non-cash amortization of favorable lease assets, and the non-cash
amortization of unfavorable contract liabilities.
|
|