Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - STRATEGIC HOTELS & RESORTS, INC | d8k.htm |
| EX-99.1 - PRESS RELEASE - STRATEGIC HOTELS & RESORTS, INC | dex991.htm |
Exhibit 99.2
Strategic Hotels & Resorts
Supplemental Financial Information
September 30, 2010
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | September 30, 2010 |
TABLE OF CONTENTS
| PAGE | ||||
| CORPORATE INFORMATION |
||||
| The Company |
1 | |||
| Board of Directors |
2 | |||
| Officers |
3 | |||
| Equity Research Coverage |
4 | |||
| FINANCIAL HIGHLIGHTS |
||||
| Supplemental Financial Data |
5 | |||
| Consolidated Statements of Operations |
6 | |||
| Consolidated Balance Sheets |
7 | |||
| Discontinued Operations |
8 | |||
| Investment in the Hotel del Coronado |
9 | |||
| Summary of Residential Activity |
10 | |||
| Leasehold Information |
11 | |||
| Non-GAAP Financial Measures |
12 | |||
| Reconciliation of Net Loss Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA |
13 | |||
| Reconciliation of Net Loss Attributable to SHR Common Shareholders to Funds From Operations (FFO), FFO - Fully Diluted and Comparable FFO |
14 | |||
| Debt Summary |
15 | |||
| PORTFOLIO DATA |
||||
| Portfolio at September 30, 2010 |
16 | |||
| Seasonality by Geographic Region |
17 | |||
| Operating Statistics by Geographic Region |
18 | |||
| Selected Financial and Operating Information by Property |
19-23 | |||
| Reconciliation of Property EBITDA to EBITDA |
24 | |||
| Reconciliation of Property EBITDA to Comparable EBITDA |
25 | |||
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | September 30, 2010 |
CORPORATE INFORMATION
The Company
Strategic Hotels & Resorts Inc. (SHR) is an industry-leading owner and asset manager of high-end hotels and resorts. We own a quality portfolio of upper upscale and luxury hotels and resorts in desirable North American and European locations. Our portfolio is currently made up of 17 properties totaling 8,002 rooms. We own unique hotels with complex operations, sophisticated customers and multiple revenue streams. Our properties include large convention hotels, business hotels and resorts, which are managed by internationally recognized hotel management companies.
We believe our asset management expertise is what truly distinguishes us. Asset management is our focus, our core competency, and our competitive advantage. Our business is driven by our team’s depth of knowledge and hands-on expertise in every aspect of the lodging industry. While our focus is to drive top line revenues, we importantly focus on every component of bottom line profitability. We use our experience to make selective, value added acquisitions and recycle capital through thoughtful and planned dispositions. Simply put, we are utilizing our expert management skills in building a great hotel company which we believe will provide attractive returns for our shareholders.
Strategic Hotels & Resorts is a real estate investment trust (REIT) and is traded on the New York Stock Exchange under the symbol BEE.
Fiscal Year End:
December 31
Number of Full-Time Equivalent Employees:
43
Corporate Headquarters:
200 West Madison Street, Suite 1700
Chicago, IL 60606
(312) 658-5000
Company Contacts:
Diane Morefield
Chief Financial Officer
(312) 658-5000
Jonathan Stanner
Vice President, Corporate Finance
(312) 658-5000
1
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | September 30, 2010 |
Board of Directors
Raymond L. Gellein, Jr.
Chairman of the Board and Executive Committee
Laurence S. Geller
Director, President and Chief Executive Officer
Robert P. Bowen
Director and Chairman of the Audit Committee
James A. Jeffs
Director and Chairman of the Compensation Committee
William A. Prezant
Director and Chairman of the Corporate Governance and Nominating Committee
Kenneth Fisher
Director
Richard D. Kincaid
Director
Sir David M.C. Michels
Director
Eugene F. Reilly
Director
2
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | September 30, 2010 |
Officers
Laurence S. Geller
President and Chief Executive Officer
Diane M. Morefield
Executive Vice President, Chief Financial Officer (Principal Financial Officer)
Richard J. Moreau
Executive Vice President, Asset Management
Stephen M. Briggs
Senior Vice President, Chief Accounting Officer (Principal Accounting Officer) & Treasurer
Jayson C. Cyr
Senior Vice President, Internal Audit
Paula C. Maggio
Senior Vice President, Secretary & General Counsel
Robert T. McAllister
Senior Vice President, Tax
Patricia A. Needham
Senior Vice President, Assistant Secretary
John K.T. Barrett
Vice President, Asset Management
Gregory A. Brenner
Vice President, Controller
D. Robert Britt
Vice President, Asset Management
Michael A. Dalton
Vice President, Design
Thomas G. Healy
Vice President, Asset Management
David R. Hogin, Jr.
Vice President, Asset Management
Gregory P. Kennealey
Vice President, Asset Management
Jonathan P. Stanner
Vice President, Corporate Finance
Cory P. Warning
Vice President, Development
3
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | September 30, 2010 |
Equity Research Coverage
| Firm |
Analyst |
Telephone | ||
| Deutsche Bank North America | Chris Woronka | (212) 250-5815 | ||
| Green Street Advisors, Inc. | John Arabia | (949) 640-8780 | ||
| JMP Securities | Will Marks | (415) 835-8944 | ||
| Keefe, Bruyette & Woods | Smedes Rose | (212) 887-3696 | ||
| Raymond James & Associates | William Crow | (727) 567-2594 | ||
| Robert W. Baird & Co. | David Loeb | (414) 765-7063 | ||
| Wells Fargo Securities, LLC | Jeffrey Donnelly | (617) 603-4262 | ||
Strategic Hotels & Resorts is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Strategic Hotels & Resorts’ performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Strategic Hotels & Resorts or its management. Strategic Hotels & Resorts does not by its reference here imply its endorsement of, or concurrence with, such information, conclusions or recommendations.
4
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | September 30, 2010 |
FINANCIAL HIGHLIGHTS
Supplemental Financial Data
(in thousands, except per share information)
| September 30, 2010 | ||||||||
| Pro Rata Share | Consolidated | |||||||
| Capitalization |
||||||||
| Common shares outstanding |
151,302 | 151,302 | ||||||
| Operating partnership units outstanding |
955 | 955 | ||||||
| Restricted stock units outstanding |
1,071 | 1,071 | ||||||
| Combined shares, options and units outstanding |
153,328 | 153,328 | ||||||
| Common stock price at end of period |
$ | 4.24 | $ | 4.24 | ||||
| Common equity capitalization |
$ | 650,111 | $ | 650,111 | ||||
| Preferred equity capitalization (at $25.00 face value) |
370,236 | 370,236 | ||||||
| Consolidated debt |
1,293,642 | 1,293,642 | ||||||
| Pro rata share of unconsolidated debt |
282,825 | — | ||||||
| Pro rata share of consolidated debt |
(107,065 | ) | — | |||||
| Cash and cash equivalents |
(65,841 | ) | (65,841 | ) | ||||
| Total enterprise value |
$ | 2,423,908 | $ | 2,248,148 | ||||
| Net Debt / Total Enterprise Value |
57.9 | % | 54.6 | % | ||||
| Preferred Equity / Total Enterprise Value |
15.3 | % | 16.5 | % | ||||
| Common Equity / Total Enterprise Value |
26.8 | % | 28.9 | % | ||||
5
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
Consolidated Statements of Operations
(in thousands, except per share data)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenues: |
||||||||||||||||
| Rooms |
$ | 105,771 | $ | 97,895 | $ | 295,647 | $ | 281,776 | ||||||||
| Food and beverage |
55,987 | 52,489 | 177,830 | 162,017 | ||||||||||||
| Other hotel operating revenue |
19,065 | 19,233 | 58,049 | 67,736 | ||||||||||||
| 180,823 | 169,617 | 531,526 | 511,529 | |||||||||||||
| Lease revenue |
1,108 | 1,224 | 3,383 | 3,513 | ||||||||||||
| Total revenues |
181,931 | 170,841 | 534,909 | 515,042 | ||||||||||||
| Operating Costs and Expenses: |
||||||||||||||||
| Rooms |
29,191 | 28,070 | 83,003 | 80,057 | ||||||||||||
| Food and beverage |
42,481 | 40,505 | 128,273 | 121,145 | ||||||||||||
| Other departmental expenses |
51,602 | 49,017 | 151,340 | 148,652 | ||||||||||||
| Management fees |
5,866 | 6,030 | 18,583 | 19,553 | ||||||||||||
| Other hotel expenses |
12,971 | 12,926 | 40,798 | 39,168 | ||||||||||||
| Lease expense |
4,182 | 4,355 | 12,311 | 12,480 | ||||||||||||
| Depreciation and amortization |
32,779 | 34,421 | 99,906 | 98,047 | ||||||||||||
| Impairment losses and other charges |
— | — | — | 50,214 | ||||||||||||
| Corporate expenses |
8,904 | 5,020 | 22,484 | 19,996 | ||||||||||||
| Total operating costs and expenses |
187,976 | 180,344 | 556,698 | 589,312 | ||||||||||||
| Operating loss |
(6,045 | ) | (9,503 | ) | (21,789 | ) | (74,270 | ) | ||||||||
| Interest expense |
(22,118 | ) | (24,635 | ) | (68,488 | ) | (70,674 | ) | ||||||||
| Interest income |
68 | 176 | 373 | 628 | ||||||||||||
| Loss on early extinguishment of debt |
(39 | ) | — | (925 | ) | (883 | ) | |||||||||
| Loss on early termination of derivative financial instruments |
— | — | (18,263 | ) | — | |||||||||||
| Equity in earnings of joint ventures |
3,001 | 1,573 | 2,900 | 2,144 | ||||||||||||
| Foreign currency exchange loss |
(134 | ) | (379 | ) | (1,399 | ) | (1,233 | ) | ||||||||
| Other income, net |
1,605 | 125 | 2,299 | 168 | ||||||||||||
| Loss before income taxes and discontinued operations |
(23,662 | ) | (32,643 | ) | (105,292 | ) | (144,120 | ) | ||||||||
| Income tax (expense) benefit |
(407 | ) | 236 | (1,359 | ) | (2,515 | ) | |||||||||
| Loss from continuing operations |
(24,069 | ) | (32,407 | ) | (106,651 | ) | (146,635 | ) | ||||||||
| (Loss) income from discontinued operations, net of tax |
(6,717 | ) | (33,481 | ) | 2,692 | (34,087 | ) | |||||||||
| Net loss |
(30,786 | ) | (65,888 | ) | (103,959 | ) | (180,722 | ) | ||||||||
| Net loss attributable to the noncontrolling interests in SHR’s operating partnership |
192 | 844 | 879 | 2,297 | ||||||||||||
| Net income attributable to the noncontrolling interests in consolidated affiliates |
(1,086 | ) | (696 | ) | (858 | ) | (1,044 | ) | ||||||||
| Net loss attributable to SHR |
(31,680 | ) | (65,740 | ) | (103,938 | ) | (179,469 | ) | ||||||||
| Preferred shareholder dividends |
(7,721 | ) | (7,721 | ) | (23,164 | ) | (23,164 | ) | ||||||||
| Net loss attributable to SHR common shareholders |
$ | (39,401 | ) | $ | (73,461 | ) | $ | (127,102 | ) | $ | (202,633 | ) | ||||
| Basic and Diluted Loss Per Share: |
||||||||||||||||
| Loss from continuing operations attributable to SHR common shareholders |
$ | (0.22 | ) | $ | (0.53 | ) | $ | (1.14 | ) | $ | (2.24 | ) | ||||
| (Loss) income from discontinued operations attributable to SHR |
(0.04 | ) | (0.44 | ) | 0.02 | (0.45 | ) | |||||||||
| Net loss attributable to SHR common shareholders |
$ | (0.26 | ) | $ | (0.97 | ) | $ | (1.12 | ) | $ | (2.69 | ) | ||||
| Weighted average common shares outstanding |
151,635 | 75,441 | 113,237 | 75,265 | ||||||||||||
6
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | September 30, 2010 and December 31, 2009 |
Consolidated Balance Sheets
(in thousands, except share data)
| September 30, | December 31, | |||||||
| 2010 | 2009 | |||||||
| Assets |
||||||||
| Investment in hotel properties, net |
$ | 1,970,242 | $ | 2,162,584 | ||||
| Goodwill |
40,359 | 75,758 | ||||||
| Intangible assets, net of accumulated amortization of $6,006 and $4,400 |
33,352 | 34,046 | ||||||
| Assets held for sale |
159,902 | — | ||||||
| Investment in joint ventures |
48,754 | 46,745 | ||||||
| Cash and cash equivalents |
65,841 | 116,310 | ||||||
| Restricted cash and cash equivalents |
39,512 | 22,829 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $2,096 and $2,657 |
48,648 | 54,524 | ||||||
| Deferred financing costs, net of accumulated amortization of $14,176 and $12,543 |
4,915 | 11,225 | ||||||
| Deferred tax assets |
32,548 | 34,244 | ||||||
| Other assets |
38,407 | 39,878 | ||||||
| Total assets |
$ | 2,482,480 | $ | 2,598,143 | ||||
| Liabilities and Equity |
||||||||
| Liabilities: |
||||||||
| Mortgages payable |
$ | 1,119,131 | $ | 1,300,745 | ||||
| Exchangeable senior notes, net of discount |
— | 169,452 | ||||||
| Bank credit facility |
36,000 | 178,000 | ||||||
| Liabilities of assets held for sale |
166,668 | — | ||||||
| Accounts payable and accrued expenses |
283,159 | 236,269 | ||||||
| Deferred tax liabilities |
1,722 | 16,940 | ||||||
| Deferred gain on sale of hotels |
93,206 | 101,852 | ||||||
| Total liabilities |
1,699,886 | 2,003,258 | ||||||
| Noncontrolling interests in SHR’s operating partnership |
4,047 | 2,717 | ||||||
| Equity: |
||||||||
| SHR’s shareholders’ equity: |
||||||||
| 8.50% Series A Cumulative Redeemable Preferred Stock ($0.01 par value; 4,488,750 shares issued and outstanding; liquidation preference $25.00 per share and $128,911 in the aggregate) |
108,206 | 108,206 | ||||||
| 8.25% Series B Cumulative Redeemable Preferred Stock ($0.01 par value; 4,600,000 shares issued and outstanding; liquidation preference $25.00 per share and $131,603 in the aggregate) |
110,775 | 110,775 | ||||||
| 8.25% Series C Cumulative Redeemable Preferred Stock ($0.01 par value; 5,750,000 shares issued and outstanding; liquidation preference $25.00 per share and $164,504 in the aggregate) |
138,940 | 138,940 | ||||||
| Common shares ($0.01 par value; 250,000,000 common shares authorized; 151,301,562 and 75,253,252 common shares issued and outstanding) |
1,513 | 752 | ||||||
| Additional paid-in capital |
1,554,677 | 1,233,856 | ||||||
| Accumulated deficit |
(1,058,181 | ) | (954,208 | ) | ||||
| Accumulated other comprehensive loss |
(101,467 | ) | (69,341 | ) | ||||
| Total SHR’s shareholders’ equity |
754,463 | 568,980 | ||||||
| Noncontrolling interests in consolidated affiliates |
24,084 | 23,188 | ||||||
| Total equity |
778,547 | 592,168 | ||||||
| Total liabilities and equity |
$ | 2,482,480 | $ | 2,598,143 | ||||
7
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
Discontinued Operations
The results of operations of hotels sold or held for sale are classified as discontinued operations and segregated in the consolidated statements of operations for all periods presented. On September 22, 2010, we entered into an agreement to sell the InterContinental Prague hotel for estimated consideration of approximately €110.6 million on the signing date. The sale is scheduled to close in the fourth quarter of 2010. The following hotels were sold during 2009 (in thousands):
| Hotel |
Date Sold |
Net Sales Proceeds | ||||
| Renaissance Paris Hotel Le Parc Trocadero |
December 21, 2009 | $ | 50,275 | |||
| Four Seasons Mexico City |
October 29, 2009 | $ | 52,156 | |||
The following is a summary of (loss) income from discontinued operations, net of tax, for the three and nine months ended September 30, 2010 and 2009 (in thousands):
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Hotel operating revenues |
$ | 6,457 | $ | 16,142 | $ | 18,843 | $ | 45,163 | ||||||||
| Operating costs and expenses |
4,427 | 11,951 | 13,807 | 35,493 | ||||||||||||
| Depreciation and amortization |
1,289 | 3,943 | 3,702 | 9,631 | ||||||||||||
| Impairment losses |
— | 30,795 | — | 30,795 | ||||||||||||
| Total operating costs and expenses |
5,716 | 46,689 | 17,509 | 75,919 | ||||||||||||
| Operating income (loss) |
741 | (30,547 | ) | 1,334 | (30,756 | ) | ||||||||||
| Interest expense |
(2,378 | ) | (2,268 | ) | (7,716 | ) | (6,454 | ) | ||||||||
| Interest income |
4 | 26 | 15 | 86 | ||||||||||||
| Foreign currency exchange (loss) gain |
(5,094 | ) | (814 | ) | 7,495 | 946 | ||||||||||
| Income tax benefit |
10 | 122 | 327 | 2,091 | ||||||||||||
| Gain on sale (a) |
— | — | 1,237 | — | ||||||||||||
| (Loss) income from discontinued operations, net of tax |
$ | (6,717 | ) | $ | (33,481 | ) | $ | 2,692 | $ | (34,087 | ) | |||||
| (a) | In the second quarter of 2010, we agreed to accept payment of $1,850,000 to settle the remaining obligation owed to us by the purchaser of the Hyatt Regency New Orleans hotel, which was sold in December 2007. During the nine months ended September 30, 2010, we recognized a $1,850,000 gain on sale of the hotel, which we had previously deferred. |
8
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
Investment in the Hotel del Coronado
(in thousands)
On January 9, 2006, we purchased a 45% interest in the joint venture that owns the Hotel del Coronado. We account for this investment using the equity method of accounting.
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Total revenues (100%) |
$ | 39,683 | $ | 38,424 | $ | 94,167 | $ | 96,620 | ||||||||
| Property EBITDA (100%) |
$ | 15,593 | $ | 14,274 | $ | 30,871 | $ | 32,221 | ||||||||
| Equity in earnings of joint venture (SHR 45% ownership) |
||||||||||||||||
| Property EBITDA |
$ | 7,017 | $ | 6,423 | $ | 13,892 | $ | 14,499 | ||||||||
| Depreciation and amortization |
(2,015 | ) | (1,938 | ) | (6,003 | ) | (5,763 | ) | ||||||||
| Interest expense |
(1,981 | ) | (1,894 | ) | (5,711 | ) | (5,925 | ) | ||||||||
| Other expenses, net |
(15 | ) | (91 | ) | (163 | ) | (233 | ) | ||||||||
| Income taxes |
(272 | ) | (751 | ) | 111 | (551 | ) | |||||||||
| Equity in earnings of joint venture |
$ | 2,734 | $ | 1,749 | $ | 2,126 | $ | 2,027 | ||||||||
| EBITDA Contribution from investment in Hotel del Coronado |
||||||||||||||||
| Equity in earnings of joint venture |
$ | 2,734 | $ | 1,749 | $ | 2,126 | $ | 2,027 | ||||||||
| Depreciation and amortization |
2,015 | 1,938 | 6,003 | 5,763 | ||||||||||||
| Interest expense |
1,981 | 1,894 | 5,711 | 5,925 | ||||||||||||
| Income taxes |
272 | 751 | (111 | ) | 551 | |||||||||||
| EBITDA Contribution from investment in Hotel del Coronado |
$ | 7,002 | $ | 6,332 | $ | 13,729 | $ | 14,266 | ||||||||
| FFO Contribution from investment in Hotel del Coronado |
||||||||||||||||
| Equity in earnings of joint venture |
$ | 2,734 | $ | 1,749 | $ | 2,126 | $ | 2,027 | ||||||||
| Depreciation and amortization |
2,015 | 1,938 | 6,003 | 5,763 | ||||||||||||
| FFO Contribution from investment in Hotel del Coronado |
$ | 4,749 | $ | 3,687 | $ | 8,129 | $ | 7,790 | ||||||||
| Debt |
Interest Rate | Spread over LIBOR |
Loan Amount | Maturity | ||||||||||
| CMBS Mortgage and Mezzanine |
2.34 | % | 208 | bp | $ | 610,000 | January 2011 | |||||||
| Revolving Credit Facility |
2.76 | % | 250 | bp | 18,500 | January 2011 | ||||||||
| 628,500 | ||||||||||||||
| Cash and cash equivalents |
(24,024 | ) | ||||||||||||
| Net Debt |
$ | 604,476 | ||||||||||||
| Cap |
Effective Date | LIBOR Cap Rate | Notional Amount | Maturity | ||||||||||
| CMBS Mortgage and Mezzanine Loan and Revolving Credit Facility Cap |
January 2010 | 2.0 | % | $ | 630,000 | January 2011 | ||||||||
9
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
Summary of Residential Activity
(in thousands)
On January 9, 2006, we purchased a 45% interest in a joint venture that owns the North Beach Venture adjacent to the Hotel del Coronado. We account for this investment using the equity method of accounting. We own a 31% interest in a joint venture that is developing the Four Seasons Residence Club Punta Mita (RCPM) adjacent to the Four Seasons Punta Mita Resort. We account for this investment using the equity method of accounting. In addition, we engage in certain activities related to potential development projects such as condominium-hotel units, fractional ownership units and other for-sale residential units.
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| North Beach Venture | 2010 | 2009 | 2010 | 2009 | ||||||||||||
| Hotel condominium cost of sales (100%) |
$ | — | $ | — | $ | — | $ | (4 | ) | |||||||
| SHR’s 45% share |
||||||||||||||||
| Hotel condominium cost of sales |
$ | — | $ | — | $ | — | $ | (2 | ) | |||||||
| Interest expense |
(8 | ) | — | (30 | ) | — | ||||||||||
| Other income (expenses), net |
47 | (214 | ) | 60 | (201 | ) | ||||||||||
| Income taxes |
— | 81 | — | 81 | ||||||||||||
| SHR’s share of net income (loss) |
$ | 39 | $ | (133 | ) | $ | 30 | $ | (122 | ) | ||||||
| Net income (loss) |
$ | 39 | $ | (133 | ) | $ | 30 | $ | (122 | ) | ||||||
| Interest expense |
8 | — | 30 | — | ||||||||||||
| Income taxes |
— | (81 | ) | — | (81 | ) | ||||||||||
| EBITDA Contribution for investment in North Beach Venture |
$ | 47 | $ | (214 | ) | $ | 60 | $ | (203 | ) | ||||||
| FFO Contribution for investment in North Beach Venture |
$ | 39 | $ | (133 | ) | $ | 30 | $ | (122 | ) | ||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| RCPM | 2010 | 2009 | 2010 | 2009 | ||||||||||||
| SHR’s 31% share |
||||||||||||||||
| Sales |
$ | 357 | $ | 333 | $ | 2,488 | $ | 1,731 | ||||||||
| EBITDA Contribution for investment in RCPM |
$ | 82 | $ | (27 | ) | $ | 511 | $ | 310 | |||||||
| FFO Contribution for investment in RCPM |
$ | 57 | $ | (25 | ) | $ | 349 | $ | 209 | |||||||
| SHR’s share of total residential activity: |
||||||||||||||||
| Sales |
$ | 357 | $ | 333 | $ | 2,488 | $ | 1,731 | ||||||||
| EBITDA |
$ | 129 | $ | (241 | ) | $ | 571 | $ | 107 | |||||||
| FFO |
$ | 96 | $ | (158 | ) | $ | 379 | $ | 87 | |||||||
10
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
Leasehold Information
(in thousands)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Paris Marriott Champs Elysees: |
||||||||||||||||
| Property EBITDA |
$ | 6,784 | $ | 6,119 | $ | 15,858 | $ | 13,371 | ||||||||
| Revenue (a) |
$ | 6,784 | $ | 6,119 | $ | 15,858 | $ | 13,371 | ||||||||
| Lease Expense |
(3,076 | ) | (3,136 | ) | (8,915 | ) | (8,983 | ) | ||||||||
| Less: Deferred Gain on Sale Leaseback |
(1,088 | ) | (1,202 | ) | (3,321 | ) | (3,448 | ) | ||||||||
| Adjusted Lease Expense |
(4,164 | ) | (4,338 | ) | (12,236 | ) | (12,431 | ) | ||||||||
| EBITDA Contribution from Leasehold |
$ | 2,620 | $ | 1,781 | $ | 3,622 | $ | 940 | ||||||||
| Marriott Hamburg: |
||||||||||||||||
| Property EBITDA |
$ | 1,620 | $ | 1,505 | $ | 4,369 | $ | 4,280 | ||||||||
| Revenue (a) |
$ | 1,108 | $ | 1,224 | $ | 3,383 | $ | 3,513 | ||||||||
| Lease Expense |
(1,106 | ) | (1,219 | ) | (3,396 | ) | (3,497 | ) | ||||||||
| Less: Deferred Gain on Sale Leaseback |
(51 | ) | (55 | ) | (154 | ) | (159 | ) | ||||||||
| Adjusted Lease Expense |
(1,157 | ) | (1,274 | ) | (3,550 | ) | (3,656 | ) | ||||||||
| EBITDA Contribution from Leasehold |
$ | (49 | ) | $ | (50 | ) | $ | (167 | ) | $ | (143 | ) | ||||
| Total Leaseholds: |
||||||||||||||||
| Property EBITDA |
$ | 8,404 | $ | 7,624 | $ | 20,227 | $ | 17,651 | ||||||||
| Revenue (a) |
$ | 7,892 | $ | 7,343 | $ | 19,241 | $ | 16,884 | ||||||||
| Lease Expense |
(4,182 | ) | (4,355 | ) | (12,311 | ) | (12,480 | ) | ||||||||
| Less: Deferred Gain on Sale Leaseback |
(1,139 | ) | (1,257 | ) | (3,475 | ) | (3,607 | ) | ||||||||
| Adjusted Lease Expense |
(5,321 | ) | (5,612 | ) | (15,786 | ) | (16,087 | ) | ||||||||
| EBITDA Contribution from Leaseholds |
$ | 2,571 | $ | 1,731 | $ | 3,455 | $ | 797 | ||||||||
| Security Deposits (b): | September 30, 2010 |
December 31, 2009 |
||||||||||||||
| Paris Marriott Champs Elysees |
$ | 14,137 | $ | 10,720 | ||||||||||||
| Marriott Hamburg |
2,590 | 7,158 | ||||||||||||||
| Total |
$ | 16,727 | $ | 17,878 | ||||||||||||
| (a) | For the three and nine months ended September 30, 2010 and 2009, Revenue for the Paris Marriott Champs Elysees represents Property EBITDA. For the three and nine months ended September 30, 2010 and 2009, Revenue for the Marriott Hamburg represents lease revenue. |
| (b) | The security deposits are recorded in other assets on the consolidated balance sheets. |
11
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | September 30, 2010 |
Non-GAAP Financial Measures
In addition to REIT hotel income, five other non-GAAP financial measures are presented for the Company that we believe are useful to management and investors as key measures of our operating performance: Funds from Operations (FFO); FFO - Fully Diluted; Comparable FFO; Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA); and Comparable EBITDA. A reconciliation of these measures to net loss attributable to SHR common shareholders, the most directly comparable GAAP measure, is set forth in the following tables.
We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which adopted a definition of FFO in order to promote an industry-wide standard measure of REIT operating performance. NAREIT defines FFO as net income (or loss) (computed in accordance with GAAP) excluding losses or gains from sales of depreciable property plus real estate-related depreciation and amortization, and after adjustments for our portion of these items related to unconsolidated partnerships and joint ventures. We also present FFO - Fully Diluted, which is FFO plus income or loss on income attributable to convertible noncontrolling interests. We also present Comparable FFO, which is FFO - Fully Diluted excluding the impact of any gains or losses on early extinguishment of debt, impairment losses, foreign currency exchange gains or losses and other non-recurring charges. We believe that the presentation of FFO, FFO - Fully Diluted and Comparable FFO provides useful information to management and investors regarding our results of operations because they are measures of our ability to fund capital expenditures and expand our business. In addition, FFO is widely used in the real estate industry to measure operating performance without regard to items such as depreciation and amortization. We also present Comparable FFO per diluted share as a non-GAAP measure of our performance. We calculate Comparable FFO per diluted share for a given operating period as our Comparable FFO (as defined above) divided by the weighted average of fully diluted shares outstanding. Comparable FFO per diluted share, in accordance with NAREIT, is adjusted for the effects of dilutive securities. Dilutive securities may include shares granted under share-based compensation plans, operating partnership units and exchangeable debt securities. No effect is shown for securities that are anti-dilutive.
EBITDA represents net loss attributable to SHR common shareholders excluding: (i) interest expense, (ii) income taxes, including deferred income tax benefits and expenses applicable to our foreign subsidiaries and income taxes applicable to sale of assets; and (iii) depreciation and amortization. EBITDA also excludes interest expense, income taxes and depreciation and amortization of our equity method investments. EBITDA is presented on a full participation basis, which means we have assumed conversion of all convertible noncontrolling interests of our operating partnership into our common stock and includes preferred dividends. We believe this treatment of noncontrolling interests provides more useful information for management and our investors and appropriately considers our current capital structure. We also present Comparable EBITDA, which eliminates the effect of realizing deferred gains on our sale leasebacks, as well as the effect of gains or losses on sales of assets, early extinguishment of debt, impairment losses, foreign currency exchange gains or losses and other non-recurring charges. We believe EBITDA and Comparable EBITDA are useful to management and investors in evaluating our operating performance because they provide management and investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe they help management and investors meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our asset base (primarily depreciation and amortization) from our operating results. Our management also uses EBITDA and Comparable EBITDA as measures in determining the value of acquisitions and dispositions.
We caution investors that amounts presented in accordance with our definitions of FFO, FFO - Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP measures in the same manner. FFO, FFO - Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA should not be considered as an alternative measure of our net loss or operating performance. FFO, FFO - Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that FFO, FFO - Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA can enhance your understanding of our financial condition and results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily a better indicator of any trend as compared to comparable GAAP measures such as net loss attributable to SHR common shareholders. In addition, you should be aware that adverse economic and market conditions might negatively impact our cash flow. We have provided a quantitative reconciliation of FFO, FFO - Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA to the most directly comparable GAAP financial performance measure, which is net loss attributable to SHR common shareholders.
12
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
Reconciliation of Net Loss Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA
(in thousands)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Net loss attributable to SHR common shareholders |
$ | (39,401 | ) | $ | (73,461 | ) | $ | (127,102 | ) | $ | (202,633 | ) | ||||
| Depreciation and amortization - continuing operations |
32,779 | 34,421 | 99,906 | 98,047 | ||||||||||||
| Depreciation and amortization - discontinued operations |
1,289 | 3,943 | 3,702 | 9,631 | ||||||||||||
| Interest expense - continuing operations |
22,118 | 24,635 | 68,488 | 70,674 | ||||||||||||
| Interest expense - discontinued operations |
2,378 | 2,268 | 7,716 | 6,454 | ||||||||||||
| Income taxes - continuing operations |
407 | (236 | ) | 1,359 | 2,515 | |||||||||||
| Income taxes - discontinued operations |
(10 | ) | (122 | ) | (327 | ) | (2,091 | ) | ||||||||
| Noncontrolling interests |
(192 | ) | (844 | ) | (879 | ) | (2,297 | ) | ||||||||
| Adjustments from consolidated affiliates |
(1,978 | ) | (2,508 | ) | (5,596 | ) | (6,813 | ) | ||||||||
| Adjustments from unconsolidated affiliates |
4,332 | 4,612 | 11,890 | 12,436 | ||||||||||||
| Preferred shareholder dividends |
7,721 | 7,721 | 23,164 | 23,164 | ||||||||||||
| EBITDA |
29,443 | 429 | 82,321 | 9,087 | ||||||||||||
| Realized portion of deferred gain on sale leasebacks |
(1,139 | ) | (1,257 | ) | (3,475 | ) | (3,607 | ) | ||||||||
| Loss on sale of assets - continuing operations |
— | — | — | 5 | ||||||||||||
| Gain on sale of assets - discontinued operations |
— | — | (1,237 | ) | — | |||||||||||
| Impairment losses and other charges - continuing operations |
— | — | — | 50,214 | ||||||||||||
| Impairment losses and other charges - discontinued operations |
— | 30,795 | — | 30,795 | ||||||||||||
| Impairment losses and other charges - adjustments from consolidated affiliates |
— | — | — | (169 | ) | |||||||||||
| Loss on early extinguishment of debt |
39 | — | 925 | 883 | ||||||||||||
| Loss on early termination of derivative financial instruments |
— | — | 18,263 | — | ||||||||||||
| Foreign currency exchange loss - continuing operations (a) |
134 | 379 | 1,399 | 1,233 | ||||||||||||
| Foreign currency exchange loss (gain) - discontinued operations (a) |
5,094 | 814 | (7,495 | ) | (946 | ) | ||||||||||
| Comparable EBITDA |
$ | 33,571 | $ | 31,160 | $ | 90,701 | $ | 87,495 | ||||||||
| (a) | Foreign currency exchange gains or losses applicable to third-party and inter-company debt and certain balance sheet items held by foreign subsidiaries. |
13
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
Reconciliation of Net Loss Attributable to SHR Common Shareholders to
Funds From Operations (FFO), FFO - Fully Diluted and Comparable FFO
(in thousands, except per share data)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Net loss attributable to SHR common shareholders |
$ | (39,401 | ) | $ | (73,461 | ) | $ | (127,102 | ) | $ | (202,633 | ) | ||||
| Depreciation and amortization - continuing operations |
32,779 | 34,421 | 99,906 | 98,047 | ||||||||||||
| Depreciation and amortization - discontinued operations |
1,289 | 3,943 | 3,702 | 9,631 | ||||||||||||
| Corporate depreciation |
(304 | ) | (305 | ) | (914 | ) | (913 | ) | ||||||||
| Loss on sale of assets - continuing operations |
— | — | — | 5 | ||||||||||||
| Gain on sale of assets - discontinued operations |
— | — | (1,237 | ) | — | |||||||||||
| Realized portion of deferred gain on sale leasebacks |
(1,139 | ) | (1,257 | ) | (3,475 | ) | (3,607 | ) | ||||||||
| Deferred tax expense on realized portion of deferred gain on sale leasebacks |
340 | 375 | 1,036 | 1,076 | ||||||||||||
| Noncontrolling interests adjustments |
(230 | ) | (511 | ) | (937 | ) | (1,440 | ) | ||||||||
| Adjustments from consolidated affiliates |
(1,342 | ) | (1,956 | ) | (4,644 | ) | (5,648 | ) | ||||||||
| Adjustments from unconsolidated affiliates |
2,047 | 1,970 | 6,099 | 5,859 | ||||||||||||
| FFO |
(5,961 | ) | (36,781 | ) | (27,566 | ) | (99,623 | ) | ||||||||
| Convertible noncontrolling interests |
38 | (333 | ) | 58 | (857 | ) | ||||||||||
| FFO - Fully Diluted |
(5,923 | ) | (37,114 | ) | (27,508 | ) | (100,480 | ) | ||||||||
| Impairment losses and other charges - continuing operations |
— | — | — | 50,214 | ||||||||||||
| Impairment losses and other charges - discontinued operations |
— | 30,795 | — | 30,795 | ||||||||||||
| Impairment losses and other charges - adjustments from consolidated affiliates |
— | — | — | (169 | ) | |||||||||||
| Non-cash mark to market of interest rate swaps |
5,597 | — | 9,778 | — | ||||||||||||
| Loss on early extinguishment of debt |
39 | — | 925 | 883 | ||||||||||||
| Loss on early termination of derivative financial instruments |
— | — | 18,263 | — | ||||||||||||
| Foreign currency exchange loss (a) - continuing operations |
134 | 379 | 1,399 | 1,233 | ||||||||||||
| Foreign currency exchange loss (gain), net of tax (a) - discontinued operations |
5,083 | 758 | (7,520 | ) | (1,512 | ) | ||||||||||
| Comparable FFO |
$ | 4,930 | $ | (5,182 | ) | $ | (4,663 | ) | $ | (19,036 | ) | |||||
| Comparable FFO per diluted share |
$ | 0.03 | $ | (0.07 | ) | $ | (0.04 | ) | $ | (0.25 | ) | |||||
| Weighted average diluted shares |
153,093 | 75,441 | 113,237 | 75,265 | ||||||||||||
| (a) | Foreign currency exchange gains or losses applicable to third-party and inter-company debt and certain balance sheet items held by foreign subsidiaries. |
14
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | September 30, 2010 |
Debt Summary
(dollars in thousands)
| Debt |
Interest Rate | Spread (a) | Loan Amount |
Maturity (b) |
||||||||||||
| Bank credit facility |
4.01 | % | 375 | bp | $ | 36,000 | March 2011 | |||||||||
| Fairmont Scottsdale |
0.82 | % | 56 | bp | 180,000 | September 2011 | ||||||||||
| InterContinental Chicago |
1.32 | % | 106 | bp | 121,000 | October 2011 | ||||||||||
| InterContinental Miami |
0.99 | % | 73 | bp | 90,000 | October 2011 | ||||||||||
| Loews Santa Monica Beach Hotel |
0.89 | % | 63 | bp | 118,250 | March 2012 | ||||||||||
| Ritz-Carlton Half Moon Bay |
0.93 | % | 67 | bp | 76,500 | March 2012 | ||||||||||
| Hyatt Regency La Jolla |
1.26 | % | 100 | bp | 97,500 | September 2012 | ||||||||||
| Marriott London Grosvenor Square (c) |
1.83 | % | 110 | bp(c) | 118,131 | October 2013 | ||||||||||
| InterContinental Prague (d) |
2.09 | % | 120 | bp(d) | 138,511 | March 2015 | ||||||||||
| Westin St. Francis |
6.09 | % | Fixed | 220,000 | June 2017 | |||||||||||
| Fairmont Chicago |
6.09 | % | Fixed | 97,750 | June 2017 | |||||||||||
| $ | 1,293,642 | |||||||||||||||
| (a) | Spread over LIBOR (0.26% at September 30, 2010). |
| (b) | Includes extension options, excluding the conditional one-year extension option on the bank credit facility. |
| (c) | Principal balance of £75,190,000 at September 30, 2010. Spread over three-month GBP LIBOR (0.73% at September 30, 2010). |
| (d) | Principal balance of €101,600,000 at September 30, 2010. Spread over three-month EURIBOR (0.89% at September 30, 2010). The spread increases to 180 basis points in March 2012 through the maturity date. As of September 30, 2010, the mortgage debt outstanding has been reclassified to liabilities of assets held for sale. |
Domestic and European Interest Rate Swaps
| Fixed Pay Rate Against LIBOR |
Notional | |||||||||||||||
| Swap Effective Date |
Current | Future | Amount | Maturity |
||||||||||||
| March 2009 |
1.22 | % | 1.22 | % | $ | 50,000 | August 2011 | |||||||||
| February 2010 |
0.45 | % | 0.45 | % | 50,000 | December 2010 | ||||||||||
| February 2010 |
0.45 | % | 4.59 | %(e) | 75,000 | April 2012 | ||||||||||
| February 2010 |
0.45 | % | 4.84 | %(e) | 100,000 | July 2012 | ||||||||||
| February 2010 |
0.45 | % | 5.50 | %(e) | 75,000 | June 2013 | ||||||||||
| February 2010 |
0.45 | % | 5.42 | %(e) | 50,000 | August 2013 | ||||||||||
| February 2010 |
0.45 | % | 4.90 | %(e) | 100,000 | September 2014 | ||||||||||
| February 2010 |
0.45 | % | 4.96 | %(e) | 100,000 | December 2014 | ||||||||||
| April 2010 |
5.42 | % | 5.42 | % | 75,000 | April 2015 | ||||||||||
| 1.06 | % | 4.43 | % | $ | 675,000 | |||||||||||
| Fixed Pay Rate Against GBP LIBOR |
Notional | |||||||||||||||
| Swap Effective Date |
Current | Future | Amount | Maturity |
||||||||||||
| October 2007 |
3.22 | % | 5.72 | %(e) | £ | 75,190 | October 2013 | |||||||||
| Swap Effective Date |
Fixed Pay Rate Against EURIBOR |
Notional Amount |
Maturity | |||||||||||||
| March 2010 |
3.32 | % | € | 101,600 | March 2015 | |||||||||||
| (e) | The fixed pay rate against LIBOR increases in December 2010 through maturity. The fixed pay rate against GBP LIBOR increases in January 2011 through maturity. |
Forward-Starting Interest Rate Swaps
| Swap Effective Date |
Fixed Pay Rate Against LIBOR |
Notional Amount |
Maturity | |||||||
| December 2010 |
5.23 | % | $ | 100,000 | December 2015 | |||||
| February 2011 |
5.27 | % | 100,000 | February 2016 | ||||||
| $ | 200,000 | |||||||||
At September 30, 2010, future scheduled debt principal payments (including non-conditional extension options and liabilities of assets held for sale) are as follows:
| Years ending December 31, |
Amount | |||
| 2010 (remainder) |
$ | — | ||
| 2011 |
430,237 | |||
| 2012 |
308,138 | |||
| 2013 |
124,834 | |||
| 2014 |
13,736 | |||
| Thereafter |
416,697 | |||
| $ | 1,293,642 | |||
| Percent of fixed rate debt including U.S. and European swaps |
96.6 | % | ||
| Weighted average interest rate including U.S. and European swaps (f) |
3.44 | % | ||
| Weighted average maturity of fixed rate debt (debt with maturity of greater than one year) |
4.11 | |||
| (f) | Excludes the amortization of deferred financing costs and the amortization of the interest rate swap costs. |
15
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | September 30, 2010 |
Portfolio Data
Portfolio at September 30, 2010
(dollars in thousands)
| Hotel |
Location |
Number of Rooms |
% of Total Rooms |
% of QTR September 2010 Property EBITDA |
QTR September 2010 Property EBITDA |
|||||||||||||
| United States: |
||||||||||||||||||
| Westin St. Francis |
San Francisco, CA | 1,195 | 15 | % | 13 | % | $ | 5,981 | ||||||||||
| InterContinental Chicago (a) |
Chicago, IL | 792 | 10 | % | 11 | % | 5,495 | |||||||||||
| Hotel del Coronado (b) |
Coronado, CA | 757 | 10 | % | 15 | % | 7,017 | |||||||||||
| Fairmont Chicago |
Chicago, IL | 687 | 9 | % | 6 | % | 2,870 | |||||||||||
| Fairmont Scottsdale |
Scottsdale, AZ | 649 | 8 | % | -7 | % | (3,143 | ) | ||||||||||
| InterContinental Miami |
Miami, FL | 641 | 8 | % | -1 | % | (579 | ) | ||||||||||
| Hyatt Regency La Jolla (a) |
La Jolla, CA | 419 | 5 | % | 2 | % | 1,071 | |||||||||||
| Ritz-Carlton Laguna Niguel |
Dana Point, CA | 396 | 5 | % | 12 | % | 5,555 | |||||||||||
| Marriott Lincolnshire Resort |
Lincolnshire, IL | 389 | 5 | % | 2 | % | 886 | |||||||||||
| Loews Santa Monica Beach Hotel |
Santa Monica, CA | 342 | 4 | % | 9 | % | 4,249 | |||||||||||
| Ritz-Carlton Half Moon Bay |
Half Moon Bay, CA | 261 | 3 | % | 6 | % | 2,656 | |||||||||||
| Four Seasons Washington, D.C. |
Washington, D.C. | 222 | 3 | % | 5 | % | 2,405 | |||||||||||
| Total United States |
6,750 | 85 | % | 73 | % | 34,463 | ||||||||||||
| Mexican: |
||||||||||||||||||
| Four Seasons Punta Mita Resort |
Punta Mita, Mexico | 173 | 2 | % | 0 | % | 206 | |||||||||||
| Total Mexican |
173 | 2 | % | 0 | % | 206 | ||||||||||||
| Total North American |
6,923 | 87 | % | 73 | % | 34,669 | ||||||||||||
| European: |
||||||||||||||||||
| Marriott Hamburg (c) |
Hamburg, Germany | 278 | 3 | % | N/A | N/A | ||||||||||||
| Marriott London Grosvenor Square |
London, England | 237 | 3 | % | 9 | % | 4,203 | |||||||||||
| Paris Marriott Champs Elysees |
Paris, France | 192 | 2 | % | 14 | % | 6,784 | |||||||||||
| Total European |
707 | 8 | % | 23 | % | 10,987 | ||||||||||||
| Assets Held For Sale: |
||||||||||||||||||
| InterContinental Prague (d) |
Prague, Czech Republic | 372 | 5 | % | 4 | % | 2,122 | |||||||||||
| 8,002 | 100 | % | 100 | % | $ | 47,778 | ||||||||||||
| (a) | We own 51% controlling interests in the entities that own the InterContinental Chicago and Hyatt Regency La Jolla hotels and consolidate these hotels for reporting purposes. |
| (b) | We own a 45% interest in the joint venture that owns the Hotel del Coronado and account for our investment under the equity method of accounting. Our equity in earnings of the hotel joint venture is included in equity in earnings of joint ventures in our consolidated statements of operations. The percentage of Property EBITDA has been calculated based on our 45% ownership. |
| (c) | We have a leasehold interest in this property and have not included it in the percentage of Property EBITDA calculation. |
| (d) | As of September 30, 2010, this property has been classified as held for sale; therefore, the results of operations have been included in (loss) income from discontinued operations for the three and nine months ended September 30, 2010. However, for purposes of this comparison, the percentage of Property EBITDA calculation above reflects operating results before they were reclassified to discontinued operations. |
16
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Four Quarters Ended September 30, 2010 |
Seasonality by Geographic Region
(dollars in thousands)
Same store property revenues have been adjusted to show hotel performance on a comparable quarter-over-quarter basis. Adjustments include (i) exclusion of InterContinental Prague, Four Seasons Mexico City and Renaissance Paris Hotel Le Parc Trocadero as their results of operations were reclassified to discontinued operations, (ii) exclusion of the unconsolidated Hotel del Coronado and (iii) presentation of the hotels without regard to either ownership structure or leaseholds.
United States Hotels (as of September 30, 2010)
Same store property revenues - 11 Properties and 5,993 Rooms
| Three Months Ended | ||||||||||||||||||||
| December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | Total | ||||||||||||||||
| Same store property revenues |
$ | 146,928 | $ | 133,515 | $ | 159,274 | $ | 152,744 | $ | 592,461 | ||||||||||
| Same store seasonality % |
24.8 | % | 22.5 | % | 26.9 | % | 25.8 | % | 100.0 | % | ||||||||||
Mexican Hotel (as of September 30, 2010)
Same store property revenues - 1 Property and 173 Rooms
| Three Months Ended | ||||||||||||||||||||
| December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | Total | ||||||||||||||||
| Same store property revenues |
$ | 12,295 | $ | 14,093 | $ | 8,515 | $ | 5,618 | $ | 40,521 | ||||||||||
| Same store seasonality % |
30.3 | % | 34.8 | % | 21.0 | % | 13.9 | % | 100.0 | % | ||||||||||
North American Hotels (as of September 30, 2010)
Same store property revenues - 12 Properties and 6,166 Rooms
| Three Months Ended | ||||||||||||||||||||
| December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | Total | ||||||||||||||||
| Same store property revenues |
$ | 159,223 | $ | 147,608 | $ | 167,789 | $ | 158,362 | $ | 632,982 | ||||||||||
| Same store seasonality % |
25.2 | % | 23.3 | % | 26.5 | % | 25.0 | % | 100.0 | % | ||||||||||
European Hotels (as of September 30, 2010)
Same store property revenues - 3 Properties and 707 Rooms
| Three Months Ended | ||||||||||||||||||||
| December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | Total | ||||||||||||||||
| Same store property revenues |
$ | 25,802 | $ | 19,556 | $ | 25,122 | $ | 27,996 | $ | 98,476 | ||||||||||
| Same store seasonality % |
26.2 | % | 19.9 | % | 25.5 | % | 28.4 | % | 100.0 | % | ||||||||||
17
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
Operating Statistics by Geographic Region
Operating results have been adjusted to show hotel performance on a comparable period basis. Adjustments are the (i) exclusion of unconsolidated Hotel del Coronado, (ii) exclusion of InterContinental Prague, Four Seasons Mexico City and Renaissance Paris Hotel Le Parc Trocadero as these properties results of operations were reclassified to discontinued operations for the periods presented and (iii) presentation of the hotels without regard to either ownership structure or leaseholds.
United States Hotels (as of September 30, 2010)
11 Properties
5,993 Rooms
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| 2010 | 2009 | Change | 2010 | 2009 | Change | |||||||||||||||||||
| ADR |
$ | 208.75 | $ | 196.79 | 6.1 | % | $ | 209.76 | $ | 207.03 | 1.3 | % | ||||||||||||
| Average Occupancy |
74.1 | % | 72.7 | % | 1.4 | pts | 68.9 | % | 67.0 | % | 1.9 | pts | ||||||||||||
| RevPAR |
$ | 154.65 | $ | 143.05 | 8.1 | % | $ | 144.46 | $ | 138.79 | 4.1 | % | ||||||||||||
| Total RevPAR |
$ | 278.61 | $ | 262.21 | 6.3 | % | $ | 273.68 | $ | 266.25 | 2.8 | % | ||||||||||||
| Property EBITDA Margin |
18.0 | % | 16.1 | % | 1.9 | pts | 17.0 | % | 16.7 | % | 0.3 | pts | ||||||||||||
Mexican Hotel (as of September 30, 2010)
1 Property
173 Rooms
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| 2010 | 2009 | Change | 2010 | 2009 | Change | |||||||||||||||||||
| ADR |
$ | 407.53 | $ | 444.79 | -8.4 | % | $ | 635.92 | $ | 704.55 | -9.7 | % | ||||||||||||
| Average Occupancy |
41.2 | % | 43.7 | % | (2.5 | )pts | 50.5 | % | 48.0 | % | 2.5 | pts | ||||||||||||
| RevPAR |
$ | 167.94 | $ | 194.23 | -13.5 | % | $ | 321.28 | $ | 337.86 | -4.9 | % | ||||||||||||
| Total RevPAR |
$ | 352.97 | $ | 352.11 | 0.2 | % | $ | 597.63 | $ | 583.60 | 2.4 | % | ||||||||||||
| Property EBITDA Margin |
3.7 | % | 11.5 | % | (7.8 | )pts | 30.0 | % | 33.5 | % | (3.5 | )pts | ||||||||||||
North American Hotels (as of September 30, 2010)
12 Properties
6,166 Rooms
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| 2010 | 2009 | Change | 2010 | 2009 | Change | |||||||||||||||||||
| ADR |
$ | 211.91 | $ | 201.04 | 5.4 | % | $ | 218.64 | $ | 217.15 | 0.7 | % | ||||||||||||
| Average Occupancy |
73.2 | % | 71.9 | % | 1.3 | pts | 68.4 | % | 66.5 | % | 1.9 | pts | ||||||||||||
| RevPAR |
$ | 155.02 | $ | 144.49 | 7.3 | % | $ | 149.45 | $ | 144.41 | 3.5 | % | ||||||||||||
| Total RevPAR |
$ | 280.70 | $ | 264.74 | 6.0 | % | $ | 282.82 | $ | 275.19 | 2.8 | % | ||||||||||||
| Property EBITDA Margin |
17.5 | % | 16.0 | % | 1.5 | pts | 17.8 | % | 17.7 | % | 0.1 | pts | ||||||||||||
European Hotels (as of September 30, 2010)
3 Properties
707 Rooms
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| 2010 | 2009 | Change | 2010 | 2009 | Change | |||||||||||||||||||
| ADR |
$ | 386.74 | $ | 364.72 | 6.0 | % | $ | 356.11 | $ | 330.23 | 7.8 | % | ||||||||||||
| Average Occupancy |
88.9 | % | 85.3 | % | 3.6 | pts | 81.6 | % | 78.9 | % | 2.7 | pts | ||||||||||||
| RevPAR |
$ | 343.63 | $ | 310.97 | 10.5 | % | $ | 290.72 | $ | 260.70 | 11.5 | % | ||||||||||||
| Total RevPAR |
$ | 430.42 | $ | 396.81 | 8.5 | % | $ | 376.53 | $ | 340.71 | 10.5 | % | ||||||||||||
| Property EBITDA Margin |
45.0 | % | 41.6 | % | 3.4 | pts | 41.7 | % | 38.8 | % | 2.9 | pts | ||||||||||||
18
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
Selected Financial and Operating Information by Property
(in thousands, except operating information)
The following tables present selected financial and operating information by property for the three and nine months ended September 30, 2010 and 2009. Property EBITDA reflects property net operating income plus depreciation and amortization.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| UNITED STATES HOTELS: | 2010 | 2009 | Change | 2010 | 2009 | Change | ||||||||||||||||||
| FAIRMONT CHICAGO | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 15,766 | $ | 13,870 | 13.7 | % | $ | 37,942 | $ | 37,725 | 0.6 | % | ||||||||||||
| Property EBITDA |
$ | 2,870 | $ | 2,227 | 28.9 | % | $ | 3,783 | $ | 4,219 | (10.3 | )% | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
687 | 687 | — | 687 | 687 | — | ||||||||||||||||||
| Average occupancy |
77.5 | % | 69.6 | % | 7.9 | pts | 59.9 | % | 60.2 | % | (0.3 | )pts | ||||||||||||
| ADR |
$ | 192.62 | $ | 194.97 | (1.2 | )% | $ | 196.57 | $ | 194.40 | 1.1 | % | ||||||||||||
| RevPAR |
$ | 149.36 | $ | 135.62 | 10.1 | % | $ | 117.74 | $ | 116.95 | 0.7 | % | ||||||||||||
| Total RevPAR |
$ | 249.45 | $ | 219.45 | 13.7 | % | $ | 202.30 | $ | 201.14 | 0.6 | % | ||||||||||||
| FAIRMONT SCOTTSDALE | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 8,830 | $ | 9,771 | (9.6 | )% | $ | 51,466 | $ | 49,223 | 4.6 | % | ||||||||||||
| Property EBITDA |
$ | (3,143 | ) | $ | (2,486 | ) | (26.4 | )% | $ | 5,496 | $ | 4,649 | 18.2 | % | ||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
649 | 649 | — | 649 | 649 | — | ||||||||||||||||||
| Average occupancy |
44.5 | % | 50.8 | % | (6.3 | )pts | 65.6 | % | 61.3 | % | 4.3 | pts | ||||||||||||
| ADR |
$ | 133.18 | $ | 131.67 | 1.1 | % | $ | 195.08 | $ | 196.15 | (0.5 | )% | ||||||||||||
| RevPAR |
$ | 59.25 | $ | 66.92 | (11.5 | )% | $ | 128.05 | $ | 120.20 | 6.5 | % | ||||||||||||
| Total RevPAR |
$ | 147.89 | $ | 163.64 | (9.6 | )% | $ | 290.48 | $ | 277.82 | 4.6 | % | ||||||||||||
| FOUR SEASONS WASHINGTON, D.C. | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 13,351 | $ | 11,821 | 12.9 | % | $ | 41,727 | $ | 41,794 | (0.2 | )% | ||||||||||||
| Property EBITDA |
$ | 2,405 | $ | 1,322 | 81.9 | % | $ | 8,159 | $ | 8,349 | (2.3 | )% | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
222 | 222 | — | 222 | 222 | — | ||||||||||||||||||
| Average occupancy |
69.4 | % | 65.4 | % | 4.0 | pts | 70.8 | % | 67.6 | % | 3.2 | pts | ||||||||||||
| ADR |
$ | 481.60 | $ | 425.99 | 13.1 | % | $ | 496.89 | $ | 508.43 | (2.3 | )% | ||||||||||||
| RevPAR |
$ | 334.04 | $ | 278.68 | 19.9 | % | $ | 351.63 | $ | 343.63 | 2.3 | % | ||||||||||||
| Total RevPAR |
$ | 653.70 | $ | 578.76 | 12.9 | % | $ | 688.50 | $ | 689.59 | (0.2 | )% | ||||||||||||
| HOTEL DEL CORONADO | ||||||||||||||||||||||||
| Selected Financial Information (Amounts below are 100% of operations, of which SHR owns 45%): |
| |||||||||||||||||||||||
| Total revenues |
$ | 39,683 | $ | 38,424 | 3.3 | % | $ | 94,167 | $ | 96,620 | (2.5 | )% | ||||||||||||
| Property EBITDA |
$ | 15,593 | $ | 14,274 | 9.2 | % | $ | 30,871 | $ | 32,221 | (4.2 | )% | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
757 | 757 | — | 757 | 757 | — | ||||||||||||||||||
| Average occupancy |
79.9 | % | 74.5 | % | 5.4 | pts | 66.8 | % | 64.5 | % | 2.3 | pts | ||||||||||||
| ADR |
$ | 358.30 | $ | 360.90 | (0.7 | )% | $ | 325.14 | $ | 339.13 | (4.1 | )% | ||||||||||||
| RevPAR |
$ | 286.18 | $ | 268.83 | 6.5 | % | $ | 217.11 | $ | 218.76 | (0.8 | )% | ||||||||||||
| Total RevPAR |
$ | 569.80 | $ | 551.70 | 3.3 | % | $ | 455.66 | $ | 467.53 | (2.5 | )% | ||||||||||||
19
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| 2010 | 2009 | Change | 2010 | 2009 | Change | |||||||||||||||||||
| HYATT REGENCY LA JOLLA | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 7,943 | $ | 8,087 | (1.8 | )% | $ | 22,924 | $ | 25,200 | (9.0 | )% | ||||||||||||
| Property EBITDA |
$ | 1,071 | $ | 1,782 | (39.9 | )% | $ | 3,063 | $ | 4,991 | (38.6 | )% | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
419 | 419 | — | 419 | 419 | — | ||||||||||||||||||
| Average occupancy |
77.1 | % | 78.0 | % | (0.9 | )pts | 72.9 | % | 75.2 | % | (2.3 | )pts | ||||||||||||
| ADR |
$ | 153.79 | $ | 154.78 | (0.6 | )% | $ | 149.96 | $ | 154.90 | (3.2 | )% | ||||||||||||
| RevPAR |
$ | 118.51 | $ | 120.74 | (1.8 | )% | $ | 109.37 | $ | 116.42 | (6.1 | )% | ||||||||||||
| Total RevPAR |
$ | 206.05 | $ | 209.78 | (1.8 | )% | $ | 200.41 | $ | 220.30 | (9.0 | )% | ||||||||||||
| INTERCONTINENTAL CHICAGO | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 18,512 | $ | 17,314 | 6.9 | % | $ | 45,148 | $ | 46,933 | (3.8 | )% | ||||||||||||
| Property EBITDA |
$ | 5,495 | $ | 5,018 | 9.5 | % | $ | 10,895 | $ | 12,436 | (12.4 | )% | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
792 | 792 | — | 792 | 792 | — | ||||||||||||||||||
| Average occupancy |
85.9 | % | 85.2 | % | 0.7 | pts | 72.1 | % | 77.3 | % | (5.2 | )pts | ||||||||||||
| ADR |
$ | 173.40 | $ | 168.74 | 2.8 | % | $ | 173.10 | $ | 169.20 | 2.3 | % | ||||||||||||
| RevPAR |
$ | 148.98 | $ | 143.69 | 3.7 | % | $ | 124.77 | $ | 130.86 | (4.7 | )% | ||||||||||||
| Total RevPAR |
$ | 254.06 | $ | 237.63 | 6.9 | % | $ | 208.81 | $ | 217.06 | (3.8 | )% | ||||||||||||
| INTERCONTINENTAL MIAMI | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 6,754 | $ | 6,630 | 1.9 | % | $ | 34,558 | $ | 31,793 | 8.7 | % | ||||||||||||
| Property EBITDA |
$ | (579 | ) | $ | (1,261 | ) | 54.1 | % | $ | 7,528 | $ | 5,874 | 28.2 | % | ||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
641 | 641 | — | 641 | 641 | — | ||||||||||||||||||
| Average occupancy |
55.9 | % | 50.9 | % | 5.0 | pts | 66.6 | % | 58.6 | % | 8.0 | pts | ||||||||||||
| ADR |
$ | 115.21 | $ | 121.15 | (4.9 | )% | $ | 165.22 | $ | 176.74 | (6.5 | )% | ||||||||||||
| RevPAR |
$ | 64.39 | $ | 61.65 | 4.5 | % | $ | 109.96 | $ | 103.63 | 6.1 | % | ||||||||||||
| Total RevPAR |
$ | 114.53 | $ | 112.42 | 1.9 | % | $ | 197.48 | $ | 181.68 | 8.7 | % | ||||||||||||
| LOEWS SANTA MONICA BEACH HOTEL | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 12,922 | $ | 11,208 | 15.3 | % | $ | 33,994 | $ | 29,670 | 14.6 | % | ||||||||||||
| Property EBITDA |
$ | 4,249 | $ | 3,283 | 29.4 | % | $ | 9,245 | $ | 6,790 | 36.2 | % | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
342 | 342 | — | 342 | 342 | — | ||||||||||||||||||
| Average occupancy |
93.3 | % | 87.8 | % | 5.5 | pts | 88.0 | % | 80.1 | % | 7.9 | pts | ||||||||||||
| ADR |
$ | 312.58 | $ | 279.97 | 11.6 | % | $ | 276.28 | $ | 263.90 | 4.7 | % | ||||||||||||
| RevPAR |
$ | 291.76 | $ | 245.83 | 18.7 | % | $ | 243.07 | $ | 211.28 | 15.0 | % | ||||||||||||
| Total RevPAR |
$ | 410.69 | $ | 356.20 | 15.3 | % | $ | 364.09 | $ | 317.78 | 14.6 | % | ||||||||||||
| MARRIOTT LINCOLNSHIRE RESORT | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 7,491 | $ | 7,141 | 4.9 | % | $ | 19,400 | $ | 20,887 | (7.1 | )% | ||||||||||||
| Property EBITDA |
$ | 886 | $ | 592 | 49.7 | % | $ | (432 | ) | $ | 1,547 | (127.9 | )% | |||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
389 | 389 | — | 389 | 389 | — | ||||||||||||||||||
| Average occupancy |
56.8 | % | 56.2 | % | 0.6 | pts | 47.8 | % | 48.0 | % | (0.2 | )pts | ||||||||||||
| ADR |
$ | 116.07 | $ | 113.91 | 1.9 | % | $ | 112.46 | $ | 117.26 | (4.1 | )% | ||||||||||||
| RevPAR |
$ | 65.91 | $ | 64.07 | 2.9 | % | $ | 53.74 | $ | 56.24 | (4.5 | )% | ||||||||||||
| Total RevPAR |
$ | 229.24 | $ | 218.54 | 4.9 | % | $ | 197.91 | $ | 213.07 | (7.1 | )% | ||||||||||||
20
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| 2010 | 2009 | Change | 2010 | 2009 | Change | |||||||||||||||||||
| RITZ-CARLTON HALF MOON BAY | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 15,184 | $ | 13,433 | 13.0 | % | $ | 38,953 | $ | 33,789 | 15.3 | % | ||||||||||||
| Property EBITDA |
$ | 2,656 | $ | 2,471 | 7.5 | % | $ | 5,654 | $ | 3,598 | 57.1 | % | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
261 | 261 | — | 261 | 261 | — | ||||||||||||||||||
| Average occupancy |
76.3 | % | 72.5 | % | 3.8 | pts | 69.2 | % | 57.6 | % | 11.6 | pts | ||||||||||||
| ADR |
$ | 349.44 | $ | 319.37 | 9.4 | % | $ | 319.41 | $ | 306.45 | 4.2 | % | ||||||||||||
| RevPAR |
$ | 266.50 | $ | 231.66 | 15.0 | % | $ | 220.90 | $ | 176.50 | 25.2 | % | ||||||||||||
| Total RevPAR |
$ | 632.36 | $ | 559.43 | 13.0 | % | $ | 546.69 | $ | 474.21 | 15.3 | % | ||||||||||||
| RITZ-CARLTON LAGUNA NIGUEL | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 18,540 | $ | 17,173 | 8.0 | % | $ | 42,976 | $ | 42,148 | 2.0 | % | ||||||||||||
| Property EBITDA |
$ | 5,555 | $ | 5,028 | 10.5 | % | $ | 9,048 | $ | 8,862 | 2.1 | % | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
396 | 396 | — | 396 | 396 | — | ||||||||||||||||||
| Average occupancy |
70.7 | % | 65.7 | % | 5.0 | pts | 55.6 | % | 52.3 | % | 3.3 | pts | ||||||||||||
| ADR |
$ | 376.64 | $ | 369.12 | 2.0 | % | $ | 345.82 | $ | 354.72 | (2.5 | )% | ||||||||||||
| RevPAR |
$ | 266.32 | $ | 242.69 | 9.7 | % | $ | 192.27 | $ | 185.42 | 3.7 | % | ||||||||||||
| Total RevPAR |
$ | 508.90 | $ | 471.38 | 8.0 | % | $ | 397.53 | $ | 389.87 | 2.0 | % | ||||||||||||
| WESTIN ST. FRANCIS | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 27,451 | $ | 27,307 | 0.5 | % | $ | 76,444 | $ | 74,265 | 2.9 | % | ||||||||||||
| Property EBITDA |
$ | 5,981 | $ | 5,204 | 14.9 | % | $ | 13,455 | $ | 11,044 | 21.8 | % | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
1,195 | 1,195 | — | 1,195 | 1,195 | — | ||||||||||||||||||
| Average occupancy |
90.2 | % | 92.2 | % | (2.0 | )pts | 78.3 | % | 77.8 | % | 0.5 | pts | ||||||||||||
| ADR |
$ | 184.86 | $ | 169.45 | 9.1 | % | $ | 179.53 | $ | 174.43 | 2.9 | % | ||||||||||||
| RevPAR |
$ | 166.71 | $ | 156.22 | 6.7 | % | $ | 140.61 | $ | 135.74 | 3.6 | % | ||||||||||||
| Total RevPAR |
$ | 249.70 | $ | 248.38 | 0.5 | % | $ | 234.32 | $ | 227.64 | 2.9 | % | ||||||||||||
21
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| MEXICAN HOTEL: | 2010 | 2009 | Change | 2010 | 2009 | Change | ||||||||||||||||||
| FOUR SEASONS PUNTA MITA RESORT | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 5,618 | $ | 5,604 | 0.2 | % | $ | 28,225 | $ | 27,563 | 2.4 | % | ||||||||||||
| Property EBITDA |
$ | 206 | $ | 646 | (68.1 | )% | $ | 8,471 | $ | 9,242 | (8.3 | )% | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
173 | 173 | — | 173 | 173 | — | ||||||||||||||||||
| Average occupancy |
41.2 | % | 43.7 | % | (2.5 | )pts | 50.5 | % | 48.0 | % | 2.5 | pts | ||||||||||||
| ADR |
$ | 407.53 | $ | 444.79 | (8.4 | )% | $ | 635.92 | $ | 704.55 | (9.7 | )% | ||||||||||||
| RevPAR |
$ | 167.94 | $ | 194.23 | (13.5 | )% | $ | 321.28 | $ | 337.86 | (4.9 | )% | ||||||||||||
| Total RevPAR |
$ | 352.97 | $ | 352.11 | 0.2 | % | $ | 597.63 | $ | 583.60 | 2.4 | % | ||||||||||||
22
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| EUROPEAN HOTELS: | 2010 | 2009 | Change | 2010 | 2009 | Change | ||||||||||||||||||
| INTERCONTINENTAL PRAGUE | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 6,457 | $ | 7,676 | (15.9 | )% | $ | 18,843 | $ | 20,914 | (9.9 | )% | ||||||||||||
| Property EBITDA |
$ | 2,122 | $ | 2,668 | (20.5 | )% | $ | 5,483 | $ | 6,806 | (19.4 | )% | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
372 | 372 | — | 372 | 372 | — | ||||||||||||||||||
| Average Occupancy |
68.7 | % | 67.1 | % | 1.6 | pts | 61.3 | % | 56.9 | % | 4.4 | pts | ||||||||||||
| ADR |
$ | 168.33 | $ | 196.64 | (14.4 | )% | $ | 170.84 | $ | 201.96 | (15.4 | )% | ||||||||||||
| RevPAR |
$ | 115.65 | $ | 132.01 | (12.4 | )% | $ | 104.64 | $ | 114.92 | (8.9 | )% | ||||||||||||
| Total RevPAR |
$ | 188.67 | $ | 224.29 | (15.9 | )% | $ | 185.54 | $ | 205.94 | (9.9 | )% | ||||||||||||
| MARRIOTT HAMBURG | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 5,536 | $ | 5,551 | (0.3 | )% | $ | 14,906 | $ | 15,222 | (2.1 | )% | ||||||||||||
| Property EBITDA |
$ | 1,620 | $ | 1,505 | 7.6 | % | $ | 4,369 | $ | 4,280 | 2.1 | % | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
278 | 278 | — | 278 | 278 | — | ||||||||||||||||||
| Average occupancy |
85.2 | % | 86.4 | % | (1.2 | )pts | 78.0 | % | 83.0 | % | (5.0 | )pts | ||||||||||||
| ADR |
$ | 185.26 | $ | 174.18 | 6.4 | % | $ | 182.65 | $ | 165.90 | 10.1 | % | ||||||||||||
| RevPAR |
$ | 157.91 | $ | 150.55 | 4.9 | % | $ | 142.45 | $ | 137.64 | 3.5 | % | ||||||||||||
| Total RevPAR |
$ | 216.46 | $ | 217.05 | (0.3 | )% | $ | 196.40 | $ | 200.57 | (2.1 | )% | ||||||||||||
| MARRIOTT LONDON GROSVENOR SQUARE | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 9,422 | $ | 7,728 | 21.9 | % | $ | 24,624 | $ | 20,480 | 20.2 | % | ||||||||||||
| Property EBITDA |
$ | 4,203 | $ | 3,124 | 34.5 | % | $ | 10,081 | $ | 7,887 | 27.8 | % | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
237 | 237 | — | 237 | 237 | — | ||||||||||||||||||
| Average occupancy |
89.8 | % | 81.8 | % | 8.0 | pts | 82.5 | % | 74.7 | % | 7.8 | pts | ||||||||||||
| ADR |
$ | 384.96 | $ | 342.53 | 12.4 | % | $ | 343.52 | $ | 308.51 | 11.3 | % | ||||||||||||
| RevPAR |
$ | 345.67 | $ | 280.04 | 23.4 | % | $ | 283.29 | $ | 230.45 | 22.9 | % | ||||||||||||
| Total RevPAR |
$ | 432.11 | $ | 354.44 | 21.9 | % | $ | 380.58 | $ | 316.54 | 20.2 | % | ||||||||||||
| PARIS MARRIOTT CHAMPS ELYSEES | ||||||||||||||||||||||||
| Selected Financial Information: |
||||||||||||||||||||||||
| Total revenues |
$ | 13,038 | $ | 12,531 | 4.0 | % | $ | 33,144 | $ | 30,059 | 10.3 | % | ||||||||||||
| Property EBITDA |
$ | 6,784 | $ | 6,119 | 10.9 | % | $ | 15,858 | $ | 13,371 | 18.6 | % | ||||||||||||
| Selected Operating Information: |
||||||||||||||||||||||||
| Rooms |
192 | 192 | — | 192 | 192 | — | ||||||||||||||||||
| Average occupancy |
92.9 | % | 87.9 | % | 5.0 | pts | 85.9 | % | 78.4 | % | 7.5 | pts | ||||||||||||
| ADR |
$ | 656.44 | $ | 661.50 | (0.8 | )% | $ | 599.07 | $ | 607.69 | (1.4 | )% | ||||||||||||
| RevPAR |
$ | 610.03 | $ | 581.44 | 4.9 | % | $ | 514.59 | $ | 476.22 | 8.1 | % | ||||||||||||
| Total RevPAR |
$ | 738.13 | $ | 709.39 | 4.1 | % | $ | 632.32 | $ | 573.46 | 10.3 | % | ||||||||||||
23
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 and 2009 |
| Reconciliation of Property EBITDA to EBITDA | ||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||||||
| Hotel |
Property EBITDA |
EBITDA | Property EBITDA |
EBITDA | Property EBITDA |
EBITDA | Property EBITDA |
EBITDA | ||||||||||||||||||||||||
| Fairmont Chicago |
$ | 2,870 | $ | 2,870 | $ | 2,227 | $ | 2,227 | $ | 3,783 | $ | 3,783 | $ | 4,219 | $ | 4,219 | ||||||||||||||||
| Fairmont Scottsdale |
(3,143 | ) | (3,143 | ) | (2,486 | ) | (2,486 | ) | 5,496 | 5,496 | 4,649 | 4,649 | ||||||||||||||||||||
| Four Seasons Washington, D.C. |
2,405 | 2,405 | 1,322 | 1,322 | 8,159 | 8,159 | 8,349 | 8,349 | ||||||||||||||||||||||||
| Hotel del Coronado (a) |
15,593 | — | 14,274 | — | 30,871 | — | 32,221 | — | ||||||||||||||||||||||||
| Hyatt Regency La Jolla |
1,071 | 1,071 | 1,782 | 1,782 | 3,063 | 3,063 | 4,991 | 4,991 | ||||||||||||||||||||||||
| InterContinental Chicago |
5,495 | 5,495 | 5,018 | 5,018 | 10,895 | 10,895 | 12,436 | 12,436 | ||||||||||||||||||||||||
| InterContinental Miami |
(579 | ) | (579 | ) | (1,261 | ) | (1,261 | ) | 7,528 | 7,528 | 5,874 | 5,874 | ||||||||||||||||||||
| Loews Santa Monica Beach Hotel |
4,249 | 4,249 | 3,283 | 3,283 | 9,245 | 9,245 | 6,790 | 6,790 | ||||||||||||||||||||||||
| Marriott Lincolnshire Resort |
886 | 886 | 592 | 592 | (432 | ) | (432 | ) | 1,547 | 1,547 | ||||||||||||||||||||||
| Ritz-Carlton Half Moon Bay |
2,656 | 2,656 | 2,471 | 2,471 | 5,654 | 5,654 | 3,598 | 3,598 | ||||||||||||||||||||||||
| Ritz-Carlton Laguna Niguel |
5,555 | 5,555 | 5,028 | 5,028 | 9,048 | 9,048 | 8,862 | 8,862 | ||||||||||||||||||||||||
| Westin St. Francis |
5,981 | 5,981 | 5,204 | 5,204 | 13,455 | 13,455 | 11,044 | 11,044 | ||||||||||||||||||||||||
| Four Seasons Punta Mita Resort |
206 | 206 | 646 | 646 | 8,471 | 8,471 | 9,242 | 9,242 | ||||||||||||||||||||||||
| InterContinental Prague (b) |
2,122 | — | 2,668 | — | 5,483 | — | 6,806 | — | ||||||||||||||||||||||||
| Marriott Hamburg (c) |
1,620 | 2 | 1,505 | 7 | 4,369 | (13 | ) | 4,280 | 20 | |||||||||||||||||||||||
| Marriott London Grosvenor Square |
4,203 | 4,203 | 3,124 | 3,124 | 10,081 | 10,081 | 7,887 | 7,887 | ||||||||||||||||||||||||
| Paris Marriott Champs Elysees (d) |
6,784 | 3,707 | 6,119 | 2,982 | 15,858 | 6,943 | 13,371 | 4,387 | ||||||||||||||||||||||||
| $ | 57,974 | $ | 35,564 | $ | 51,516 | $ | 29,939 | $ | 151,027 | $ | 101,376 | $ | 146,166 | $ | 93,895 | |||||||||||||||||
| Adjustments: |
||||||||||||||||||||||||||||||||
| Impairment losses and other charges |
|
$ | — | $ | — | $ | — | $ | (50,214 | ) | ||||||||||||||||||||||
| Corporate expenses |
|
(8,904 | ) | (5,020 | ) | (22,484 | ) | (19,996 | ) | |||||||||||||||||||||||
| Interest income |
|
68 | 176 | 373 | 628 | |||||||||||||||||||||||||||
| Loss on early extinguishment of debt |
|
(39 | ) | — | (925 | ) | (883 | ) | ||||||||||||||||||||||||
| Loss on early termination of derivative financial instruments |
|
— | — | (18,263 | ) | — | ||||||||||||||||||||||||||
| Equity in earnings of joint ventures |
|
3,001 | 1,573 | 2,900 | 2,144 | |||||||||||||||||||||||||||
| Foreign currency exchange loss |
|
(134 | ) | (379 | ) | (1,399 | ) | (1,233 | ) | |||||||||||||||||||||||
| Other income, net |
|
1,605 | 125 | 2,299 | 168 | |||||||||||||||||||||||||||
| (Loss) income from discontinued operations |
|
(6,717 | ) | (33,481 | ) | 2,692 | (34,087 | ) | ||||||||||||||||||||||||
| Depreciation expense - discontinued operations |
|
1,289 | 3,943 | 3,702 | 9,631 | |||||||||||||||||||||||||||
| Interest expense - discontinued operations |
|
2,378 | 2,268 | 7,716 | 6,454 | |||||||||||||||||||||||||||
| Income taxes - discontinued operations |
|
(10 | ) | (122 | ) | (327 | ) | (2,091 | ) | |||||||||||||||||||||||
| Noncontrolling interest in consolidated affiliates |
|
(1,086 | ) | (696 | ) | (858 | ) | (1,044 | ) | |||||||||||||||||||||||
| Adjustments from consolidated affiliates |
|
(1,978 | ) | (2,508 | ) | (5,596 | ) | (6,813 | ) | |||||||||||||||||||||||
| Adjustments from unconsolidated affiliates |
|
4,332 | 4,612 | 11,890 | 12,436 | |||||||||||||||||||||||||||
| Other adjustments |
|
74 | (1 | ) | (775 | ) | 92 | |||||||||||||||||||||||||
| EBITDA |
|
$ | 29,443 | $ | 429 | $ | 82,321 | $ | 9,087 | |||||||||||||||||||||||
| (a) | We account for this property under the equity method of accounting. Therefore, EBITDA related to our 45% interest in this property is reflected in adjustments from unconsolidated affiliates. Property EBITDA represents 100% of revenue and expenses generated by the property. |
| (b) | As of September 30, 2010, this property has been classified as held for sale. Therefore, its results of operations have been included in (loss) income from discontinued operations for the three and nine months ended September 30, 2010 and 2009. |
| (c) | We have a leasehold interest in this property. Therefore, EBITDA represents the lease revenue less the lease expense recorded in our statements. Property EBITDA represents the revenue less expenses generated by the property. |
| (d) | We have a leasehold interest in this property. Therefore, EBITDA represents revenue less lease expense and expenses generated by the property. Property EBITDA represents the revenue less expenses generated by the property. |
24
| Supplemental Financial Information | ||
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | Three and Nine Months Ended September 30, 2010 |
Reconciliation of Property EBITDA to Comparable EBITDA
(in thousands)
| Three Months Ended September 30, 2010 | Nine Months Ended September 30, 2010 | |||||||||||||||||||||||
| Property EBITDA |
Adjustments | Comparable EBITDA |
Property EBITDA |
Adjustments | Comparable EBITDA |
|||||||||||||||||||
| Meetings & Business Hotels: |
||||||||||||||||||||||||
| Fairmont Chicago |
$ | 2,870 | $ | — | $ | 2,870 | $ | 3,783 | $ | — | $ | 3,783 | ||||||||||||
| Fairmont Scottsdale |
(3,143 | ) | — | (3,143 | ) | 5,496 | — | 5,496 | ||||||||||||||||
| Four Seasons Washington, D.C. |
2,405 | — | 2,405 | 8,159 | — | 8,159 | ||||||||||||||||||
| Hyatt Regency La Jolla |
1,071 | (525 | ) | 546 | 3,063 | (1,501 | ) | 1,562 | ||||||||||||||||
| InterContinental Chicago |
5,495 | (2,693 | ) | 2,802 | 10,895 | (5,339 | ) | 5,556 | ||||||||||||||||
| InterContinental Miami |
(579 | ) | — | (579 | ) | 7,528 | — | 7,528 | ||||||||||||||||
| Westin St. Francis |
5,981 | — | 5,981 | 13,455 | — | 13,455 | ||||||||||||||||||
| Total Meetings & Business Hotels |
14,100 | (3,218 | ) | 10,882 | 52,379 | (6,840 | ) | 45,539 | ||||||||||||||||
| Ocean Front Resorts: |
||||||||||||||||||||||||
| Four Seasons Punta Mita Resort |
206 | — | 206 | 8,471 | — | 8,471 | ||||||||||||||||||
| Hotel del Coronado |
15,593 | (8,591 | ) | 7,002 | 30,871 | (17,142 | ) | 13,729 | ||||||||||||||||
| Loews Santa Monica Beach Hotel |
4,249 | — | 4,249 | 9,245 | — | 9,245 | ||||||||||||||||||
| Ritz-Carlton Half Moon Bay |
2,656 | — | 2,656 | 5,654 | — | 5,654 | ||||||||||||||||||
| Ritz-Carlton Laguna Niguel |
5,555 | — | 5,555 | 9,048 | — | 9,048 | ||||||||||||||||||
| Total Ocean Front Resorts |
28,259 | (8,591 | ) | 19,668 | 63,289 | (17,142 | ) | 46,147 | ||||||||||||||||
| European Hotels: |
||||||||||||||||||||||||
| Marriott Hamburg |
1,620 | (1,669 | ) | (49 | ) | 4,369 | (4,536 | ) | (167 | ) | ||||||||||||||
| Marriott London Grosvenor Square |
4,203 | — | 4,203 | 10,081 | — | 10,081 | ||||||||||||||||||
| Paris Marriott Champs Elysees |
6,784 | (4,164 | ) | 2,620 | 15,858 | (12,236 | ) | 3,622 | ||||||||||||||||
| Total European Hotels |
12,607 | (5,833 | ) | 6,774 | 30,308 | (16,772 | ) | 13,536 | ||||||||||||||||
| Non-Core Assets: |
||||||||||||||||||||||||
| InterContinental Prague |
2,122 | — | 2,122 | 5,483 | — | 5,483 | ||||||||||||||||||
| Marriott Lincolnshire Resort |
886 | — | 886 | (432 | ) | — | (432 | ) | ||||||||||||||||
| Total Non-Core Assets |
3,008 | — | 3,008 | 5,051 | — | 5,051 | ||||||||||||||||||
| $ | 57,974 | $ | (17,642 | ) | $ | 40,332 | $ | 151,027 | $ | (40,754 | ) | $ | 110,273 | |||||||||||
| % of QTR Comparable EBITDA |
% of YTD Comparable EBITDA |
|||||||||||||||||||||||
| Meetings & Business Hotels |
27 | % | 41 | % | ||||||||||||||||||||
| Ocean Front Resorts |
49 | % | 42 | % | ||||||||||||||||||||
| European Hotels |
17 | % | 12 | % | ||||||||||||||||||||
| Non-Core Assets |
7 | % | 5 | % | ||||||||||||||||||||
| Total |
100 | % | 100 | % | ||||||||||||||||||||
25