Marriott International reports fourth quarter 2014 net income of $197 million, a 30 percent increase over fourth quarter 2013; North American comparable systemwide RevPAR rose 6.7 percent in the fourth quarter and 7.0 for the full year.
Highlights:
- Fourth quarter diluted EPS totaled $0.68, a 39 percent increase over prior year results;
- North American comparable systemwide RevPAR rose 6.7 percent in the fourth quarter and 7.0 percent for the full year;
- On a constant dollar basis, worldwide comparable systemwide RevPAR rose 6.2 percent in the fourth quarter and 6.6 percent for the full year;
- For full year 2014, Marriott repurchased 24.2 million shares of the company’s common stock for $1.5 billion including 7.7 million shares for $544 million in the fourth quarter;
- Comparable company-operated house profit margins increased 150 basis points in North America and 120 basis points worldwide for the full year;
- At year-end, the company’s worldwide development pipeline increased to nearly 240,000 rooms, including approximately 30,000 rooms approved, but not yet subject to signed contracts;
- Over 46,000 rooms were added in 2014 including nearly 9,000 rooms converted from competitor brands and over 10,000 rooms associated with the Protea transaction;
- The company signed a record 100,000 rooms in 2014;
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $384 million in the quarter, a 20 percent increase over fourth quarter 2013 adjusted EBITDA;
- Adjusted for cost reimbursements, the company’s full year 2014 operating income margin increased to 42 percent. Return on invested capital totaled 36 percent in 2014;
- For full year 2015, Marriott expects North American and worldwide comparable systemwide constant dollar RevPAR to increase 5 to 7 percent.
To view full fourth quarter and full year financial results please visit:
Host Hotels & Resorts reports results of operations for the fourth quarter and the year 2014. Fourth quarter net income of $258 million, a 104.8% increase over same year ago period of $126 million. Full year net income rose to $747 million, a 129.8% increase over 2013 net income of $325 million.
4th quarter and full year Highlights:
- Comparable hotel RevPAR on a constant dollar basis improved 3.2% for the quarter driven by rate growth of 4.1%, partially offset by a decrease in occupancy of 0.6 percentage points. For the full year, comparable hotel RevPAR increased 5.7%.
- The Company’s strongest markets during the quarter were San Francisco and Hawaii, where comparable RevPAR increased 11.8% and 14.9% respectively. For the full year, San Francisco was the strongest market in the Company’s domestic portfolio, with a comparable RevPAR growth of 15.2% as the market continues to benefit from strength in demand from both group and transient customers.
- During the fourth quarter, the Company’s New York and Washington D.C. markets continued to lag the portfolio with comparable RevPAR growth of 0.1% and 2.5% respectively, reflecting increased supply in both markets, as well as renovation activity in Washington, D.C.;
- The increase in comparable hotel revenues of 2.1% and 4.9% for the quarter and full year, respectively, reflects the improvements in comparable RevPAR, described above, as well as the Company’s food and beverage (“F&B”) and other revenue results. At the Company’s comparable hotels, F&B revenues increased 0.4% for the quarter and 3.8% year-to-date. For the quarter, F&B revenues were affected by weaker group demand due to difficult year-over-year comparisons related, in part, to changes in the holiday schedule, mid-term elections and renovations at several of our meeting rooms and ballrooms.
- The improvement in the Company’s comparable hotel revenues were offset by the greater level of dispositions than acquisitions, leading to a slight decrease in total revenues for the quarter. The effect of these transactions reduced total revenues, on a net basis, by $35 million for the quarter and $87 million year-to-date.
- Comparable hotel EBITDA margins increased 15 basis points for the fourth quarter and 120 basis points for full year 2014, which drove the increase in comparable hotel EBITDA of 2.6% and 9.8%, respectively. The improvements in comparable hotel EBITDA margin reflect the growth in revenues, described above, as well as overall declines in several expenses at the Company’s comparable hotels, including incentive management fees (which reflect the renegotiation of fee arrangements at three properties) and property insurance;
- Adjusted EBITDA increased $29 million in the quarter and $96 million full year 2014. In the fourth quarter, construction of the 131-unit Hyatt Ka’anapali Beach, A Hyatt Residence Club, in which the Company holds a 67% non-controlling interest, was completed and opened to timeshare owners. As a result, the Company was able to recognize gains of approximately $14 million in the fourth quarter, which includes the Company’s portion of the sale of timeshare units, net of costs, including gains that had been deferred in prior periods. For the full year 2014, the Company has recognized earnings of $7 million related to its ownership interest in the timeshare;
- Adjusted FFO per diluted share increased 21.2% to $0.40 per share for the fourth quarter and 14.5% to $1.50 for full year 2014; and
- Net income improved $132 million to $258 million for the fourth quarter, and $422 million to $747 million for full year 2014.
To view full fourth quarter and full year financial results please visit:
http://ir.hosthotels.com/phoenix.zhtml?c=60734&p=irol-newsArticle&ID=2018053
LaSalle Hotel Properties reports results for the quarter and year ended December 31, 2014. Quarterly net income up 55.1% to $22.8 million compared to $14.7 million in the year ago quarter. Full year net income of $197.6 million a 178.3% increase over $71 million in 2013. Company achieves highest-ever ADR, Occupancy, RevPAR and Hotel EBITDA Margin.
Fourth Quarter Highlights:
- RevPAR: Room revenue per available room (“RevPAR”) for the quarter ended December 31, 2014 increased 7.7 percent to $181.49, as a result of a 5.7 percent increase in average daily rate (“ADR”) to $235.04 and a 1.8 percent improvement in occupancy to 77.2 percent.
- Hotel EBITDA Margin: The Company’s hotel EBITDA margin for the fourth quarter increased 163 basis points from the comparable prior year period to 32.0 percent.
- Adjusted EBITDA: The Company’s adjusted EBITDA was $80.5 million, an increase of 10.4 percent over the fourth quarter of 2013.
- Adjusted FFO: The Company generated fourth quarter adjusted FFO of $63.0 million, or $0.59 per diluted share/unit, compared to $55.8 million, or $0.55 per diluted share/unit, for the comparable prior year period, a per share/unit increase of 7.3 percent.
- Dividend: On December 15, the Company declared a fourth quarter 2014 dividend of $0.375 per common share of beneficial interest. The dividend represents an annual run rate of $1.50 per share and a 3.6 percent yield based on the closing share price on February 17, 2015.
- Capital Markets: During the fourth quarter 2014, the Company sold 8,740,000 common shares of beneficial interest, including the exercise of the underwriters’ option to purchase additional shares, at a public offering price of $39.90 per share, resulting in net proceeds of $348.5 million. The Company did not sell any shares under its ATM program during the fourth quarter or to date in the first quarter of 2015.
- Capital Investments: The Company invested $40.0 million of capital in its hotels. The Company commenced renovations at Sofitel Washington, DC, The Grafton on Sunset in West Hollywood, Hilton San Diego Gaslamp Quarter, Villa Florence in San Francisco, Hyatt Boston Harbor and Westin Philadelphia.
Full Year 2014 Highlights:
- RevPAR: RevPAR increased 8.8 percent to $188.09, as a result of a 7.4 percent increase in ADR to $231.53 and a 1.3 percent improvement in occupancy to 81.2 percent. In 2014, the Company achieved its highest-ever reported ADR, occupancy and RevPAR.
- Hotel EBITDA Margin: The Company’s hotel EBITDA margin was 33.2 percent, which was its highest-ever reported margin and represents an improvement of 101 basis points compared to 2013.
- Adjusted EBITDA: The Company’s adjusted EBITDA was $343.8 million, an increase of 14.6 percent over 2013.
- Adjusted FFO: The Company generated adjusted FFO of $270.5 million, or $2.58 per diluted share/unit, a per share/unit increase of 12.2 percent.
- Hotel Acquisitions: The Company invested $194.3 million to acquire two assets. The 2014 acquisitions include the following:
- Hotel Vitale in San Francisco, CA for $130.0 million on April 2; and
- The Heathman Hotel in Portland, OR for $64.3 million on December 18.
- Hotel Dispositions: The Company sold two non-core properties, resulting in $170.4 million in proceeds. The 2014 dispositions include the following:
- Hilton Alexandria Old Town in Alexandria, VA for $93.4 million on June 17; and
- Hotel Viking in Newport, RI for $77.0 million on September 10.
- Mezzanine Loan Repayment: On February 10, 2014, the mezzanine loan on Casa del Mar and Shutters on the Beach was repaid by the borrower. The Company received repayment of the principal amount, which was $72.0 million. The Company acquired the mezzanine loan on July 13, 2012 for $67.4 million. Inclusive of interest payments, the Company’s net profit on its investment was $14.7 million over 19 months, which represented a 14.2 percent unleveraged IRR.
- Capital Markets: The Company completed several capital markets initiatives during 2014, including the following:
- During the first quarter 2014, the Company refinanced $1.05 billion of debt, reducing the interest cost on its $750.0 million senior unsecured credit facility and $300.0 million five-year term loan.
- During the second quarter 2014, the Company repaid the $8.7 million outstanding mortgage, secured by Hotel Deca in Seattle, WA.
- During the third quarter 2014, the Company redeemed all of its outstanding 7.25 percent Series G Preferred Shares for $58.7 million plus accrued dividends through the redemption date.
- During the fourth quarter 2014, the Company sold 8,740,000 common shares of beneficial interest, including the exercise of the underwriters’ option to purchase additional shares, at a public offering price of $39.90 per share, resulting in net proceeds of $348.5 million.
- Capital Investments: The Company invested $102.1 million of capital in its hotels throughout the year, completing the renovation of Onyx Hotel in Boston, as well as Hotel George and The Donovan in Washington, DC. The Company’s 2014 capital expenditures also included the commencement of the renovations of the Sofitel Washington, DC, The Grafton on Sunset in West Hollywood, Hilton San Diego Gaslamp Quarter, Villa Florence in San Francisco, Hyatt Boston Harbor and Westin Philadelphia.
To view full fourth quarter and full year financial results please visit:
http://phx.corporate-ir.net/phoenix.zhtml?c=63030&p=irol-news1&nyo=0
Hersha Hospitality Trust reports fourth quarter net income of $5.1 million, down from $32.7 million in the year ago quarter. Full year net income of $52.9 million up from $32.8 million in 2013.
Highlights:
- Full-Year 2014 Comparable Portfolio RevPAR Growth of 6.1%
- Full-Year 2014 Hotel EBITDA Growth of 26.4%
- Full-Year 2014 AFFO per Share Growth of 20.0%
To view full fourth quarter and full year financial results please visit:
http://www.snl.com/irweblinkx/file.aspx?IID=4019891&FID=27793403
