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8-K - FORM 8-K - DiamondRock Hospitality Co | c16435e8vk.htm |
Exhibit 99.1
COMPANY CONTACT
Chris King
(240) 744-1150
(240) 744-1150
FOR IMMEDIATE RELEASE
TUESDAY, MAY 3, 2011
DIAMONDROCK HOSPITALITY COMPANY REPORTS FIRST QUARTER RESULTS
BETHESDA, Maryland, Tuesday May 3, 2011 DiamondRock Hospitality Company (the Company) (NYSE:
DRH) today announced results of operations for its first fiscal quarter ending March 25, 2011. The
Company is a lodging focused real estate investment trust that owns twenty-three premium hotels in
North America and holds a senior mortgage loan secured by another premium hotel.
First Quarter 2011 Highlights
| Pro Forma RevPAR: The Companys Pro Forma RevPAR was $92.71, an increase of 4.7
percent from the comparable period in 2010. Pro Forma RevPAR is calculated assuming the
Company owned all of its 23 hotels beginning January 1, 2010 but excludes the operating
results of the Frenchmans Reef & Morning Star Marriott Beach Resort due to the impact of
the extensive renovation of the hotel in 2011, which will include partial closure of the
hotel. |
| Pro Forma Hotel Adjusted EBITDA Margins: The Companys Pro Forma Hotel Adjusted
EBITDA margin was 17.58%, an increase of 48 basis points from the comparable period in 2010.
Pro Forma Hotel Adjusted EBITDA margin is calculated assuming the Company owned all of its
23 hotels beginning January 1, 2010 but excludes the operating results of the Frenchmans
Reef & Morning Star Marriott Beach Resort. |
| Adjusted EBITDA: The Companys Adjusted EBITDA was $18.9 million. |
| Adjusted FFO: The Companys Adjusted FFO was $11.8 million and Adjusted FFO per
diluted share was $0.07. |
| Successful Equity Raise: The Company raised $149.8 million during the quarter
through an offering of its common stock. |
| Times Square Development Acquisition: The Company entered into a purchase and
sale agreement to acquire, upon completion, a hotel property under development on West
42nd Street in Times Square, New York City. |
| Minneapolis Mortgage Loan: On April 15, 2011, the Company closed a $100 million
non-recourse loan secured by the Hilton Minneapolis. |
| Dividends: The Company declared a quarterly dividend of $0.08 per share during
the first quarter. |
Mark W. Brugger, Chief Executive Officer of DiamondRock Hospitality Company, stated, Our results
for the first quarter, which represent approximately 12% of our annual Adjusted EBITDA, reflect the
continued recovery of lodging fundamentals. If March results were included for all of our hotels,
the portfolios Pro Forma RevPAR grew 5.5%. We completed several well-executed capital market
transactions to position the Company for growth, including our successful $150 million equity
offering in January and $100 million financing of the previously unencumbered Minneapolis Hilton in
April. Our low leveraged balance sheet positions DiamondRock to actively pursue acquisition
opportunities in our attractive pipeline.
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 Margins, FFO
and Adjusted FFO. Moreover, the discussions of Pro Forma RevPAR and Pro Forma Hotel Adjusted
EBITDA Margins assume the Company owned all of its 23 hotels since January 1, 2010 but exclude the
operating results of the Frenchmans Reef & Morning Star Marriott Beach Resort (Frenchmans Reef)
due to the impact of the extensive renovation of the hotel in 2011, which will include partial
closure of the hotel.
For the first quarter beginning January 1, 2011 and ended March 25, 2011, the Company reported the
following:
| Pro Forma RevPAR increase of 4.7% and Pro Forma Hotel Adjusted EBITDA margin increase of
48 basis points compared to the comparable period in 2010. |
| Revenues of $122.3 million compared to $112.8 million for the comparable period in 2010. |
| Adjusted EBITDA of $18.9 million compared to $18.5 million for the comparable period in
2010. |
| Adjusted FFO of $11.8 million and Adjusted FFO per diluted share of $0.07 compared to
$12.0 million and $0.09, respectively, for the comparable period in 2010. |
| Net loss of $11.0 million (or $0.07 per diluted share) compared to $8.3 million (or
$0.07 per diluted share) for the comparable period in 2010. |
The first quarter Pro Forma RevPAR increase of 4.7 percent (from $88.58 to $92.71) was driven by a
4.5 percent increase in the average daily rate (from $136.39 to $142.55) and a 0.1 percentage point
increase in occupancy (from 64.9 percent to 65.0 percent). First quarter Pro Forma Hotel Adjusted
EBITDA margin increased 48 basis points (from 17.10% to 17.58%) from the comparable period in 2010.
If Frenchmans Reef was included in our operating results, the Companys first quarter RevPAR
would have increased 3.3 percent and Hotel Adjusted EBITDA margins would have decreased 60 basis
points from the comparable period in 2010.
The Companys first fiscal quarter results exclude March operations of its seven hotels that report
on a calendar month basis. For industry comparability purposes, including the preliminary March
operating results from these hotels would have resulted in Pro Forma RevPAR growth of 5.5% and Pro
Forma Hotel Adjusted EBITDA margin expansion of 73 basis points from the comparable period in 2010.
The Companys portfolio benefitted from the shift away from discounted leisure and other revenue to
higher-rated business transient revenue. Revenue from the business transient segment,
traditionally the most profitable segment for hotels, increased 11.4% from the prior year. Group
revenue was relatively flat compared to the prior year. Although the group room nights declined
from the prior year, this was offset by an increase in the group ADR. As of the end of the first
quarter, the Companys group booking pace was 3% higher than at the same time last year and is
showing growth in both ADR and occupancy.
Hotel Acquisition
On January 18, 2011, the Company entered into a purchase and sale agreement to acquire, upon
completion (expected in 2013), a hotel under development on West 42nd Street in Times Square, New
York City. Upon completion by the third-party developer, the hotel is expected to contain
approximately 285 guestrooms and the contractual purchase price is approximately $128 million, or
approximately $450,000 per guestroom. The number of guestrooms could be increased to approximately
400 guestrooms if certain required permits, approvals and consents are obtained, which would result
in the contractual purchase price increasing to approximately $178 million, or $445,000 per
guestroom. The contract is for a fixed-price (which varies only by total guestrooms built and the
completion date for the hotel) and the Company is not assuming any construction risk, including not
assuming the risk of construction cost overruns. The Company currently expects that the
development of the hotel will take approximately 24 to 30 months with an anticipated opening date
in 2013.
- 2 -
Upon entering into the purchase and sale agreement, the Company made a $20.0 million deposit with a
third-party escrow agent. Upon the completion of certain construction milestones, the Company will
be required to make an additional deposit of $5.0 million. If certain permits, approvals and
consents necessary for the hotel to contain more than 250 guestrooms are obtained, the Company will
be required to make an additional deposit equal to $45,000 per guestroom for each guestroom in
excess of 250. All deposits will be interest bearing. Deposits will be forfeited if the Company
does not close on the acquisition of the hotel upon substantial completion of construction, unless
the Company does not close as a result of the seller failing to meet certain conditions, including
substantial completion of the hotel within a specified time frame and construction of the hotel
within the contractual scope.
Follow-on Equity Offering
The Company completed a follow-on public offering of its common stock during January 2011. The
Company sold 12,418,662 shares of its common stock, including exercise of the underwriters option
to purchase 1,418,662 additional shares, at an offering price of $12.07 per share. The net
proceeds, after deduction of offering costs, were approximately $149.8 million.
Hilton Minneapolis Financing
On April 15, 2011, the Company closed on a new $100 million non-recourse loan secured by the Hilton
Minneapolis. The loan has a 10-year term, bears interest at an annual fixed rate of 5.464% and
amortizes on a 25-year schedule. The Company acquired the Hilton Minneapolis in June 2010 for
approximately $157 million and the hotel was previously unencumbered by debt.
Dividends
The Companys Board of Directors declared a quarterly dividend of $0.08 per share to stockholders
of record as of March 25, 2011. The dividend was paid on April 7, 2011.
Conrad Chicago Performance Termination
In January 2011, the Company notified Hilton that the Conrad Chicago failed its performance
termination test in 2010 under the Companys management agreement with Hilton. Hilton has the
option to provide the Company with a cure payment to continue to manage the hotel. If Hilton does
not make the cure payment, the management agreement will terminate. If the management agreement is
terminated, the Company is obligated to repay Hilton $1.0 million of the key money provided by
Hilton when it entered into the management agreement for the hotel.
Capital Expenditures
During 2011, the Company plans to commence or complete approximately $65 million of capital
improvements, approximately $40 million of which will be funded from corporate cash and the
remainder from existing reserves held by hotel managers. The Companys estimated 2011 capital
expenditures include approximately $37 million for the 2011 portion of the Frenchmans Reef capital
investment program ($31.7 million from corporate cash and existing property reserves and $5.3
million from Marriott). The Company spent approximately $7.9 million on capital improvements
during the fiscal quarter ended March 25, 2011, of which approximately $4.8 million was funded from
corporate cash.
- 3 -
The Companys most significant 2011 capital projects are as follows:
| Frenchmans Reef Repositioning: The Company is continuing to execute on the
comprehensive $45 million capital investment program at Frenchmans Reef, spending
approximately $4.0 million during
the first quarter. The majority of the renovation and repositioning program is expected to
occur during the summer of 2011 when two of the resorts four buildings (representing
approximately 300 guestrooms) will close during the seasonally slow period from May to
September. During this time, the Company expects renovation disruption to operations
resulting from the partial closure, decreasing revenues by approximately $14 million and
EBITDA by approximately $5.5 million compared to the comparable period in 2010. |
The Company will fund the majority of the renovation and repositioning program from
available corporate cash and, if necessary, borrowings under its credit facility. Marriott
has agreed to contribute $5.3 million to the program, demonstrating its commitment to
Frenchmans Reef. In addition to funding from Marriott and existing escrow reserves, the
Company expects its total cash expenditure to be approximately $35 million over the next two
years. During the first quarter, the Company deposited $29.8 million into a renovation
escrow account, of which $5.3 million was contributed by Marriott, and is classified as
restricted cash. |
| Rooms Renovations: The Company plans to complete soft-goods renovations at the
Renaissance Waverly and the Courtyard Manhattan/Fifth Avenue. |
| Lobby Renovation: The Company plans to complete a renovation of the lobby at
the Lodge at Sonoma. The renovation will consist of a redesign of the current lobby and
pool patio, as well as the addition of a retail wine market. |
Allerton Hotel Mortgage Loan Update
The Company holds the senior mortgage loan secured by the Allerton Hotel, located in downtown
Chicago, Illinois. The loan matured in January 2010 and is in default. The Company continues to
prosecute the foreclosure initially filed in April 2010, which would result in DiamondRock owning
the Allerton Hotel. However, no assurance can be given that the foreclosure proceedings will be
successful. The matter may be resolved without foreclosure if the borrower repays the senior loan
in full, including any default interest.
Recognition of interest income on the Allerton loan is dependent upon having a reasonable
expectation about the timing and amount of cash payments expected to be collected from the
borrower. Due to the uncertainty of the timing and amount of cash payments expected, the Company
is not accruing any interest income on the Allerton loan. However, the Company includes all cash
received from the borrower in its calculations of Adjusted EBITDA and Adjusted FFO. As of March
25, 2011, the Company had received cash interest payments from the borrower totaling $2.8 million,
of which $0.1 million was received in the first quarter of 2011. The Companys 2011 Adjusted
EBITDA and Adjusted FFO guidance assumes $3.0 million of cash interest payments received in 2011 on
the Allerton loan.
Balance Sheet
Following the closing of the Hilton Minneapolis mortgage loan, the Company has over $250 million of
unrestricted cash on hand and $875.6 million of debt outstanding, which consists solely of fixed
rate, property-specific mortgage debt with no near-term maturities. Twelve of the Companys 23
hotels are unencumbered by mortgage debt and the Companys $200 million senior unsecured credit
facility remains untapped. The Companys ratio of net debt to 2011 Adjusted EBITDA, using the
midpoint of the Companys guidance, is approximately 3.6 times.
The Company continues to maintain its straightforward capital structure. As of March 25, 2011, the
Company had no preferred equity outstanding and continued to own 100% of its properties directly.
- 4 -
Outlook and Guidance
The Company is providing guidance, 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
Companys filings with the Securities and Exchange Commission. The RevPAR guidance assumes that
the acquired hotels were owned by the Company for all of 2010 and excludes Frenchmans Reef for all
of 2011 because it will be partially closed for the planned renovation. In addition, no
acquisitions are included in the Companys guidance until the acquisition closes.
The Company is reaffirming its full year 2011 operating guidance, but has updated financial
guidance to incorporate the closing of the Hilton Minneapolis mortgage loan. The Company expects:
| RevPAR to increase 6 percent to 8 percent. |
| Adjusted EBITDA of $156 million to $160 million. |
| Adjusted FFO of $98 million to $101 million, which assumes income tax expense to range
from $7 million to $9 million. |
| Adjusted FFO per share of $0.59 to $0.61 based on 166.7 million diluted weighted
average shares. |
Earnings Call
The Company will host a conference call to discuss its fourth quarter results on Tuesday, May 3,
2011, at 10:00 a.m. Eastern Time (ET). To participate in the live call, investors are invited to
dial 888-679-8040 (for domestic callers) or 617-213-4851 (for international callers).
The participant passcode is 17417532. A live webcast of the call will be available via the investor
relations section of DiamondRock Hospitality Companys website
at www.drhc.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 23 premium hotels with over 10,700 rooms and
holds the senior mortgage loan on another premium hotel. The Companys hotels are generally
operated under globally recognized brands such as Hilton, Marriott, and Westin. For further
information, please visit DiamondRock Hospitality Companys
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 Companys hotels and the
demand for hotel products and services; operating risks associated with the hotel business; risks
associated with the level of the Companys 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
foreclosure proceedings on the Allerton Hotel; risks associated
with the development of a hotel by a third-party developer; risks associated with the planned
renovation and repositioning of the Frenchmans Reef & Morning Star Marriott Beach Resort and other
risk factors contained in the Companys 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 Companys expectations.
- 5 -
Reporting Periods for Statement of Operations
The results reported in the Companys consolidated statements of operations are based on results of
its hotels reported by hotel managers. The Companys hotel managers use different reporting
periods. Marriott International, the manager of most of the Companys properties, 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 Frenchmans
Reef), Davidson Hotel Company, manager of the Westin Atlanta North, 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 and Alliance Hospitality
Management, manager of the Hilton Garden Inn Chelsea report results on a monthly basis.
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
Internationals 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 Frenchmans Reef, Westin Atlanta North, Vail
Marriott, Conrad Chicago, Westin Boston Waterfront, Hilton Minneapolis or Hilton Garden Inn Chelsea
for the month of operations that ends after its fiscal quarter-end because none of Vail Resorts,
Davidson Hotel Company, Hilton Hotels Corporation, Westin Hotel Management, L.P., Alliance
Hospitality Management and Marriott International make mid-month results available. As a result,
the quarterly results of operations include results from Frenchmans Reef, Westin Atlanta North,
Vail Marriott, Conrad Chicago, Westin Boston Waterfront, Hilton Minneapolis and Hilton Garden Inn
Chelsea 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.
Ground Leases
Five of the Companys hotels are subject to ground leases: Bethesda Marriott Suites, Courtyard
Manhattan Fifth Avenue, Salt Lake City Downtown Marriott, Westin Boston Waterfront and Hilton
Minneapolis. In addition, part of a parking structure at a sixth hotel and the golf courses at two
additional hotels are also subject to ground leases. In accordance with U.S. generally accepted
accounting principles, the Company records rent expense on a straight-line basis for ground leases
that provide minimal rental payments that increase in pre-established amounts over the remaining
term of the ground lease. For the first quarter 2011, contractual cash rent payable on the ground
leases totaled $1.3 million and the Company recorded approximately $2.9 million in ground rent
expense. The non-cash portion of ground rent expense recorded for the first quarter 2011 was $1.6
million. The
Companys 2011 guidance assumes ground rent expense of approximately $14 million, which consists of
approximately $8 million of contractual ground rent and non-cash ground rent of approximately $6
million.
- 6 -
DIAMONDROCK HOSPITALITY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 25, 2011 and December 31, 2010
(in thousands, except share amounts)
March 25, 2011 | December 31, 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Property and equipment, at cost |
$ | 2,474,573 | $ | 2,468,289 | ||||
Less: accumulated depreciation |
(417,981 | ) | (396,686 | ) | ||||
2,056,592 | 2,071,603 | |||||||
Deferred financing costs, net |
5,099 | 5,492 | ||||||
Restricted cash |
78,621 | 51,936 | ||||||
Due from hotel managers |
51,228 | 50,715 | ||||||
Note receivable |
57,851 | 57,951 | ||||||
Favorable lease assets, net |
42,430 | 42,622 | ||||||
Prepaid and other assets |
70,544 | 50,089 | ||||||
Cash and cash equivalents |
186,422 | 84,201 | ||||||
Total assets |
$ | 2,548,787 | $ | 2,414,609 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Liabilities: |
||||||||
Mortgage debt |
$ | 779,143 | $ | 780,880 | ||||
Senior unsecured credit facility |
| | ||||||
Total debt |
779,143 | 780,880 | ||||||
Deferred income related to key money, net |
19,124 | 19,199 | ||||||
Unfavorable contract liabilities, net |
83,188 | 83,613 | ||||||
Due to hotel managers |
36,626 | 36,168 | ||||||
Dividends declared and unpaid |
13,522 | | ||||||
Accounts payable and accrued expenses |
80,628 | 81,232 | ||||||
Total other liabilities |
233,088 | 220,212 | ||||||
Stockholders Equity: |
||||||||
Preferred stock, $0.01 par value; 10,000,000
shares authorized; no shares issued and
outstanding |
| | ||||||
Common stock, $0.01 par value; 200,000,000
shares authorized; 167,373,785 and 154,570,543
shares issued and outstanding at March 25, 2011
and December 31, 2010, respectively |
1,674 | 1,546 | ||||||
Additional paid-in capital |
1,705,618 | 1,558,047 | ||||||
Accumulated deficit |
(170,736 | ) | (146,076 | ) | ||||
Total stockholders equity |
1,536,556 | 1,413,517 | ||||||
Total liabilities and stockholders equity |
$ | 2,548,787 | $ | 2,414,609 | ||||
- 7 -
DIAMONDROCK HOSPITALITY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Fiscal Quarters Ended March 25, 2011 and March 26, 2010
(in thousands, except per share amounts)
(in thousands, except per share amounts)
Fiscal Quarter Ended | Fiscal Quarter Ended | |||||||
March 25, 2011 | March 26, 2010 | |||||||
(Unaudited) | (Unaudited) | |||||||
Revenues: |
||||||||
Rooms |
$ | 79,318 | $ | 71,648 | ||||
Food and beverage |
37,033 | 35,552 | ||||||
Other |
5,915 | 5,628 | ||||||
Total revenues |
122,266 | 112,828 | ||||||
Operating Expenses: |
||||||||
Rooms |
22,709 | 20,073 | ||||||
Food and beverage |
27,042 | 24,725 | ||||||
Management fees |
3,402 | 3,072 | ||||||
Other hotel expenses |
47,720 | 44,629 | ||||||
Depreciation and amortization |
21,352 | 18,907 | ||||||
Hotel acquisition costs |
256 | | ||||||
Corporate expenses |
4,075 | 3,351 | ||||||
Total operating expenses |
126,556 | 114,757 | ||||||
Operating loss |
(4,290 | ) | (1,929 | ) | ||||
Other Expenses (Income): |
||||||||
Interest income |
(298 | ) | (81 | ) | ||||
Interest expense |
11,143 | 8,126 | ||||||
Total other expenses |
10,845 | 8,045 | ||||||
Loss before income taxes |
(15,135 | ) | (9,974 | ) | ||||
Income tax benefit |
4,091 | 1,628 | ||||||
Net loss |
$ | (11,044 | ) | $ | (8,346 | ) | ||
Loss per share: |
||||||||
Basic and diluted loss per share |
$ | (0.07 | ) | $ | (0.07 | ) | ||
- 8 -
Non-GAAP Financial Measures
The Company uses the following four non-GAAP financial measures that it believes are useful to
investors as key measures of its operating performance: (1) EBITDA, (2) FFO, (3) Adjusted EBITDA
and (4) Adjusted 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.
The Company believes EBITDA is useful to an investor in evaluating its operating performance
because it helps investors evaluate and compare the results of its operations from period to period
by removing the impact of the Companys capital structure (primarily interest expense) and its
asset base (primarily depreciation and amortization) from its operating results. The Company also
uses EBITDA as one measure in determining the value of hotel acquisitions and dispositions.
Historical (in 000s) | ||||||||
Fiscal Quarter Ended | ||||||||
March 25, 2011 | March 26, 2010 | |||||||
Net loss |
$ | (11,044 | ) | $ | (8,346 | ) | ||
Interest expense |
11,143 | 8,126 | ||||||
Income tax benefit |
(4,091 | ) | (1,628 | ) | ||||
Depreciation and amortization |
21,352 | 18,907 | ||||||
EBITDA |
$ | 17,360 | $ | 17,059 | ||||
Full Year Forecast 2011 (in 000s) | ||||||||
Low End | High End | |||||||
Net (loss) income |
$ | (2,600 | ) | $ | 1,400 | |||
Interest expense |
51,000 | 50,000 | ||||||
Income tax expense |
7,000 | 9,000 | ||||||
Depreciation and amortization |
93,000 | 92,000 | ||||||
EBITDA |
$ | 148,400 | $ | 152,400 | ||||
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 (losses) from
sales of property, 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 Companys 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.
Historical (in 000s) | ||||||||
Fiscal Quarter Ended | ||||||||
March 25, 2011 | March 26, 2010 | |||||||
Net loss |
$ | (11,044 | ) | $ | (8,346 | ) | ||
Real estate related depreciation and amortization |
21,352 | 18,907 | ||||||
FFO |
$ | 10,308 | $ | 10,561 | ||||
FFO per share (basic and diluted) |
$ | 0.06 | $ | 0.08 | ||||
Full Year Forecast 2011 (in 000s) | ||||||||
Low End | High End | |||||||
Net (loss) income |
$ | (2,600 | ) | $ | 1,400 | |||
Real estate related depreciation and amortization |
93,000 | 92,000 | ||||||
FFO |
$ | 90,400 | $ | 93,400 | ||||
FFO per share (basic and diluted) |
$ | 0.54 | $ | 0.56 | ||||
- 9 -
The Company also evaluates its performance by reviewing Adjusted EBITDA and Adjusted FFO
because it believes that the exclusion of certain additional recurring and non-recurring items
described below provides useful supplemental information regarding the Companys ongoing operating
performance and that the presentation of Adjusted EBITDA and Adjusted FFO, when combined with the
primary GAAP presentation of net income (loss), is beneficial to a
complete understanding of the Companys operating performance. The Company adjusts EBITDA and
FFO for the following items, which may occur in any period, and refers to these measures as
Adjusted EBITDA and Adjusted FFO:
| Non-Cash Ground Rent: The Company excludes the non-cash expense incurred from straight
lining the rent from its ground lease obligations and the non-cash amortization of its
favorable lease assets. |
| The impact of the non-cash amortization of the unfavorable contract liabilities
recorded in conjunction with the Companys acquisitions of the Bethesda Marriott Suites
and the Chicago Marriott Downtown. The amortization of the unfavorable contract
liabilities does not reflect the underlying performance of the Company. |
| 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. The Company excludes these one-time adjustments because they do
not reflect its actual performance for that period. |
| Gains from Early Extinguishment of Debt: The Company excludes the effect of gains
recorded on the early extinguishment of debt because it believes that including them in
EBITDA and FFO is not consistent with reflecting the ongoing performance of its hotels. |
| Impairment Losses: The Company excludes the effect of impairment losses recorded
because it believes that including them in EBITDA and FFO is not consistent with
reflecting the ongoing performance of its assets. In addition, the Company believes that
impairment charges are similar to depreciation expense, which is also excluded from
EBITDA and FFO. |
| Gains or Losses on Dispositions: The Company excludes the effect of gains or losses on
dispositions from EBITDA because it believes that including them is not consistent with
reflecting the ongoing performance of its remaining assets. In addition, gains and
losses on dispositions are excluded from the calculation of FFO in accordance with NAREIT
standards. |
| Acquisition Costs: The Company excludes acquisition transaction costs expensed during
the period because it believes that including these costs in EBITDA and FFO is not
consistent with the underlying performance of the Company. |
| Mortgage Loan Interest Payments Received: The Company includes cash payments received
on its senior loan secured by the Allerton Hotel in Adjusted EBITDA and Adjusted FFO.
GAAP requires the Company to record the cash received from the borrower as a reduction of
its basis in the mortgage loan due to the uncertainty over the timing and amount of cash
payments on the loan. The Company believes that these cash payments reflect its return
on its investment in the mortgage loan and should be included in Adjusted EBITDA and
Adjusted FFO as they relate to the operating performance of the Company. |
| Other Non-Cash and /or Unusual Items: The Company excludes the effect of certain
non-cash and/or unusual items because it believes that including these costs in EBITDA
and FFO is not consistent with the underlying performance of the Company. |
Historical (in 000s) | ||||||||
Fiscal Quarter Ended | ||||||||
March 25, 2011 | March 26, 2010 | |||||||
EBITDA |
$ | 17,360 | $ | 17,059 | ||||
Non-cash ground rent |
1,566 | 1,789 | ||||||
Non-cash amortization of unfavorable contract liabilities |
(426 | ) | (397 | ) | ||||
Mortgage loan cash payments |
100 | | ||||||
Acquisition costs |
256 | | ||||||
Adjusted EBITDA |
$ | 18,856 | $ | 18,451 | ||||
Full Year Forecast 2011 (in 000s) | ||||||||
Low End | High End | |||||||
EBITDA |
$ | 148,400 | $ | 152,400 | ||||
Non-cash ground rent |
6,100 | 6,100 | ||||||
Non-cash amortization of unfavorable contract liabilities |
(1,800 | ) | (1,800 | ) | ||||
Mortgage loan cash payments |
3,000 | 3,000 | ||||||
Acquisition costs |
300 | 300 | ||||||
Adjusted EBITDA |
$ | 156,000 | $ | 160,000 | ||||
- 10 -
Historical (in 000s) | ||||||||
Fiscal Quarter Ended | ||||||||
March 25, 2011 | March 26, 2010 | |||||||
FFO |
$ | 10,308 | $ | 10,561 | ||||
Non-cash ground rent |
1,566 | 1,789 | ||||||
Non-cash amortization of unfavorable contract liabilities |
(426 | ) | (397 | ) | ||||
Mortgage loan cash payments |
100 | | ||||||
Acquisition costs |
256 | | ||||||
Adjusted FFO |
$ | 11,804 | $ | 11,953 | ||||
Adjusted FFO per share (basic and diluted) |
$ | 0.07 | $ | 0.09 | ||||
Full Year Forecast 2011 (in 000s) | ||||||||
Low End | High End | |||||||
FFO |
$ | 90,400 | $ | 93,400 | ||||
Non-cash ground rent |
6,100 | 6,100 | ||||||
Non-cash amortization of unfavorable contract liabilities |
(1,800 | ) | (1,800 | ) | ||||
Mortgage loan cash payments |
3,000 | 3,000 | ||||||
Acquisition costs |
300 | 300 | ||||||
Adjusted FFO |
$ | 98,000 | $ | 101,000 | ||||
Adjusted FFO per share (basic and diluted) |
$ | 0.59 | $ | 0.61 | ||||
2010 Quarterly Pro Forma Financial Information
The following table is presented to provide investors with selected comparable 2010 quarterly
operating information to include the operating results for all of the Companys hotels as if they
were owned since January 1, 2010 but exclude Frenchmans Reef due to the impact of its extensive
renovation.
Quarter 1, 2010 | Quarter 2, 2010 | Quarter 3, 2010 | Quarter 4, 2010 | Full Year 2010 | ||||||||||||||||
RevPAR |
$ | 88.58 | $ | 111.60 | $ | 111.56 | $ | 110.29 | $ | 106.27 | ||||||||||
Revenues (in thousands) |
$ | 110,837 | $ | 152,956 | $ | 146,717 | $ | 197,747 | $ | 608,257 | ||||||||||
Hotel Adjusted EBITDA (in
thousands) |
$ | 18,957 | $ | 40,105 | $ | 36,938 | $ | 55,334 | $ | 151,333 | ||||||||||
% of Full Year |
12.5 | % | 26.5 | % | 24.4 | % | 36.6 | % | 100.0 | % | ||||||||||
Hotel Adjusted EBITDA Margin |
17.10 | % | 26.22 | % | 25.18 | % | 27.98 | % | 24.88 | % | ||||||||||
Available Rooms |
797,307 | 882,540 | 882,540 | 1,175,032 | 3,737,419 |
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 and the Renaissance Charleston. 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.
- 11 -
DIAMONDROCK HOSPITALITY COMPANY
PRO FORMA HOTEL OPERATING DATA (1)
Schedule of Property Level Results
(in thousands)
(unaudited)
Schedule of Property Level Results
(in thousands)
(unaudited)
Fiscal Quarter Ended | ||||||||||||
March 25, 2011 | March 26, 2010 | % Change | ||||||||||
Revenues: |
||||||||||||
Rooms |
$ | 73,240 | $ | 70,623 | 3.7 | % | ||||||
Food and beverage |
33,988 | 34,825 | (2.4 | )% | ||||||||
Other |
5,404 | 5,389 | 0.3 | % | ||||||||
Total revenues |
112,632 | 110,837 | 1.6 | % | ||||||||
Operating Expenses: |
||||||||||||
Rooms |
21,453 | 20,626 | 4.0 | % | ||||||||
Food and beverage |
24,709 | 24,389 | 1.3 | % | ||||||||
Other direct departmental |
3,652 | 3,594 | 1.6 | % | ||||||||
General and administrative |
11,271 | 11,169 | 0.9 | % | ||||||||
Utilities |
4,638 | 4,640 | 0.0 | % | ||||||||
Repairs and maintenance |
6,138 | 5,987 | 2.5 | % | ||||||||
Sales and marketing |
9,299 | 8,555 | 8.7 | % | ||||||||
Base management fees |
2,943 | 2,883 | 2.1 | % | ||||||||
Incentive management fees |
172 | 109 | 57.8 | % | ||||||||
Property taxes |
5,130 | 6,412 | (20.0 | )% | ||||||||
Ground rent |
2,904 | 2,899 | 0.2 | % | ||||||||
Other fixed expenses |
1,662 | 1,805 | (7.9 | )% | ||||||||
Total operating expenses |
93,971 | 93,068 | 1.0 | % | ||||||||
Hotel EBITDA |
18,661 | 17,769 | 5.0 | % | ||||||||
Non-cash ground rent |
1,566 | 1,614 | (3.0 | )% | ||||||||
Non-cash amortization of
unfavorable contract
liabilities |
(426 | ) | (426 | ) | (0.0 | )% | ||||||
Hotel Adjusted EBITDA |
$ | 19,801 | $ | 18,957 | 4.5 | % | ||||||
Hotel Adjusted EBITDA Margin |
17.58 | % | 17.10 | % | 48 bps | |||||||
(1) | Assumes the Company owned all of its hotels as of January 1, 2010 and excludes the operating
results of the Frenchmans Reef & Morning Star Marriott Beach Resort due to its extensive
ongoing renovation. |
- 12 -
Market Capitalization as of March 25, 2011
(in thousands, except per share data)
(in thousands, except per share data)
Enterprise Value | ||||
Common equity capitalization (at March 25, 2011 closing price of $11.34/share) |
$ | 1,911,959 | ||
Consolidated debt |
779,143 | |||
Cash and cash equivalents |
(186,422 | ) | ||
Total enterprise value |
$ | 2,504,680 | ||
Share Reconciliation | ||||
Common shares outstanding |
167,374 | |||
Unvested restricted stock held by management and employees |
1,214 | |||
Share grants under deferred compensation plan held by directors |
15 | |||
Combined shares outstanding |
168,603 | |||
Debt Summary as of March 25, 2011
(dollars in thousands)
(dollars in thousands)
Interest | Outstanding | |||||||||||||||
Property | Rate | Term | Principal | Maturity | ||||||||||||
Courtyard Manhattan / Midtown East |
8.810 | % | Fixed | $ | 42,559 | October 2014 | ||||||||||
Salt Lake City Marriott Downtown |
5.500 | % | Fixed | 31,328 | January 2015 | |||||||||||
Courtyard Manhattan / Fifth Avenue |
6.480 | % | Fixed | 51,000 | June 2016 | |||||||||||
Los Angeles Airport Marriott |
5.300 | % | Fixed | 82,600 | July 2015 | |||||||||||
Marriott Frenchmans Reef |
5.440 | % | Fixed | 60,323 | August 2015 | |||||||||||
Renaissance Worthington |
5.400 | % | Fixed | 56,136 | July 2015 | |||||||||||
Orlando Airport Marriott |
5.680 | % | Fixed | 58,866 | January 2016 | |||||||||||
Chicago Marriott Downtown |
5.975 | % | Fixed | 216,331 | April 2016 | |||||||||||
Austin Renaissance Hotel |
5.507 | % | Fixed | 83,000 | December 2016 | |||||||||||
Waverly Renaissance Hotel |
5.503 | % | Fixed | 97,000 | December 2016 | |||||||||||
Senior Unsecured Credit Facility |
LIBOR + 3.00 | Variable | | August 2013 | ||||||||||||
Total Debt |
$ | 779,143 |
- 13 -
Pro Forma Operating Statistics First Quarter (1)
ADR | Occupancy | RevPAR | Hotel Adjusted EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||||
1Q 2011 | 1Q 2010 | B/(W) | 1Q 2011 | 1Q 2010 | B/(W) | 1Q 2011 | 1Q 2010 | B/(W) | 1Q 2011 | 1Q 2010 | B/(W) | |||||||||||||||||||||||||||||||||||||
Atlanta Alpharetta |
$ | 136.59 | $ | 120.67 | 13.2 | % | 67.1 | % | 68.7 | % | (1.6 | %) | $ | 91.60 | $ | 82.86 | 10.5 | % | 33.54 | % | 27.81 | % | 573 | bps | ||||||||||||||||||||||||
Westin Atlanta North (2) |
$ | 110.15 | $ | 101.97 | 8.0 | % | 63.9 | % | 67.3 | % | (3.4 | %) | $ | 70.40 | $ | 68.62 | 2.6 | % | 13.52 | % | 13.26 | % | 26 | bps | ||||||||||||||||||||||||
Atlanta Waverly |
$ | 133.39 | $ | 130.48 | 2.2 | % | 67.6 | % | 69.7 | % | (2.1 | %) | $ | 90.14 | $ | 90.93 | (0.9 | %) | 23.89 | % | 24.92 | % | -103 | bps | ||||||||||||||||||||||||
Renaissance Austin |
$ | 148.21 | $ | 145.30 | 2.0 | % | 71.4 | % | 63.7 | % | 7.7 | % | $ | 105.86 | $ | 92.61 | 14.3 | % | 35.44 | % | 30.54 | % | 490 | bps | ||||||||||||||||||||||||
Bethesda Marriott Suites |
$ | 175.96 | $ | 164.83 | 6.8 | % | 54.7 | % | 57.3 | % | (2.6 | %) | $ | 96.22 | $ | 94.38 | 1.9 | % | 20.78 | % | 22.01 | % | -123 | bps | ||||||||||||||||||||||||
Boston Westin (2) |
$ | 156.57 | $ | 154.19 | 1.5 | % | 47.2 | % | 49.3 | % | (2.1 | %) | $ | 73.87 | $ | 76.04 | (2.9 | %) | (10.59 | %) | 2.32 | % | -1291 | bps | ||||||||||||||||||||||||
Renaissance Charleston |
$ | 158.29 | $ | 143.75 | 10.1 | % | 75.6 | % | 73.5 | % | 2.1 | % | $ | 119.72 | $ | 105.72 | 13.2 | % | 25.63 | % | 24.21 | % | 142 | bps | ||||||||||||||||||||||||
Hilton Garden Inn Chelsea (2) |
$ | 150.89 | $ | 149.20 | 1.1 | % | 83.6 | % | 81.9 | % | 1.7 | % | $ | 126.13 | $ | 122.22 | 3.2 | % | 25.25 | % | 26.60 | % | -135 | bps | ||||||||||||||||||||||||
Chicago Marriott |
$ | 156.15 | $ | 146.43 | 6.6 | % | 50.9 | % | 52.0 | % | (1.1 | %) | $ | 79.48 | $ | 76.21 | 4.3 | % | (1.02 | %) | (5.86 | %) | 484 | bps | ||||||||||||||||||||||||
Chicago Conrad (2) |
$ | 141.83 | $ | 144.27 | (1.7 | %) | 60.7 | % | 51.3 | % | 9.4 | % | $ | 86.16 | $ | 74.03 | 16.4 | % | (12.89 | %) | (19.31 | %) | 642 | bps | ||||||||||||||||||||||||
Courtyard Fifth Avenue |
$ | 209.46 | $ | 204.03 | 2.7 | % | 78.6 | % | 82.4 | % | (3.8 | %) | $ | 164.72 | $ | 168.11 | (2.0 | %) | 8.88 | % | 12.23 | % | -335 | bps | ||||||||||||||||||||||||
Courtyard Midtown East |
$ | 203.66 | $ | 184.21 | 10.6 | % | 74.4 | % | 77.3 | % | (2.9 | %) | $ | 151.55 | $ | 142.44 | 6.4 | % | 12.77 | % | 13.70 | % | -93 | bps | ||||||||||||||||||||||||
Frenchmans Reef (2) |
$ | 275.05 | $ | 294.01 | (6.4 | %) | 78.4 | % | 82.4 | % | (4.0 | %) | $ | 215.51 | $ | 242.25 | (11.0 | %) | 28.41 | % | 38.94 | % | -1053 | bps | ||||||||||||||||||||||||
Griffin Gate Marriott |
$ | 113.27 | $ | 105.58 | 7.3 | % | 44.1 | % | 49.4 | % | (5.3 | %) | $ | 49.91 | $ | 52.20 | (4.4 | %) | 2.04 | % | 2.41 | % | -37 | bps | ||||||||||||||||||||||||
Los Angeles Airport |
$ | 108.43 | $ | 106.43 | 1.9 | % | 83.3 | % | 82.9 | % | 0.4 | % | $ | 90.38 | $ | 88.24 | 2.4 | % | 18.28 | % | 19.60 | % | -132 | bps | ||||||||||||||||||||||||
Hilton Minneapolis (2) |
$ | 113.72 | $ | 104.94 | 8.4 | % | 60.0 | % | 60.9 | % | (0.9 | %) | $ | 68.21 | $ | 63.94 | 6.7 | % | 15.45 | % | 11.10 | % | 435 | bps | ||||||||||||||||||||||||
Oak Brook Hills |
$ | 106.48 | $ | 103.85 | 2.5 | % | 36.7 | % | 36.6 | % | 0.1 | % | $ | 39.04 | $ | 38.06 | 2.6 | % | (29.26 | %) | (15.68 | %) | -1358 | bps | ||||||||||||||||||||||||
Orlando Airport Marriott |
$ | 108.46 | $ | 106.65 | 1.7 | % | 89.4 | % | 80.6 | % | 8.8 | % | $ | 96.96 | $ | 85.92 | 12.8 | % | 33.67 | % | 27.64 | % | 603 | bps | ||||||||||||||||||||||||
Salt Lake City Marriott |
$ | 126.57 | $ | 137.90 | (8.2 | %) | 57.7 | % | 53.5 | % | 4.2 | % | $ | 73.04 | $ | 73.78 | (1.0 | %) | 23.20 | % | 29.43 | % | -623 | bps | ||||||||||||||||||||||||
The Lodge at Sonoma |
$ | 167.88 | $ | 152.71 | 9.9 | % | 52.9 | % | 47.4 | % | 5.5 | % | $ | 88.78 | $ | 72.35 | 22.7 | % | (12.64 | %) | (12.31 | %) | -33 | bps | ||||||||||||||||||||||||
Torrance Marriott South Bay |
$ | 106.05 | $ | 99.19 | 6.9 | % | 77.8 | % | 81.7 | % | (3.9 | %) | $ | 82.55 | $ | 81.00 | 1.9 | % | 20.87 | % | 18.23 | % | 264 | bps | ||||||||||||||||||||||||
Vail Marriott (2) |
$ | 311.68 | $ | 302.83 | 2.9 | % | 80.4 | % | 82.0 | % | (1.6 | %) | $ | 250.53 | $ | 248.44 | 0.8 | % | 44.46 | % | 46.62 | % | -216 | bps | ||||||||||||||||||||||||
Renaissance Worthington |
$ | 172.68 | $ | 155.34 | 11.2 | % | 74.3 | % | 76.2 | % | (1.9 | %) | $ | 128.29 | $ | 118.38 | 8.4 | % | 39.72 | % | 34.16 | % | 556 | bps | ||||||||||||||||||||||||
Total/Weighted Average |
$148.01 | $ | 143.16 | 3.4 | % | 65.5 | % | 65.5 | % | 0.0 | % | $ | 96.94 | $ | 93.83 | 3.3 | % | 18.43 | % | 19.03 | % | -60 | bps | |||||||||||||||||||||||||
Comparable Total/Weighted
Avg. (3) |
$142.55 | $ | 136.39 | 4.5 | % | 65.0 | % | 64.9 | % | 0.1 | % | $ | 92.71 | $ | 88.58 | 4.7 | % | 17.58 | % | 17.10 | % | 48 | bps | |||||||||||||||||||||||||
(1) | The pro forma operating statistics assume the Company owned all of its 23 hotels beginning
January 1, 2010. |
|
(2) | The hotel reports results on a monthly basis. The data presented is based upon the Companys
reporting calendar for the first quarter and includes the months of January and February. |
|
(3) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort from
all periods presented due to the extensive ongoing renovation. |
- 14 -
Pro Forma Hotel Adjusted EBITDA Reconciliation
First Quarter 2011 | ||||||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Non-Cash Adjustments (1) | Hotel Adjusted EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 3,670 | $ | 946 | $ | 285 | $ | | $ | | $ | 1,231 | ||||||||||||
Westin Atlanta North (2) |
$ | 2,500 | $ | (90 | ) | $ | 428 | $ | | $ | | $ | 338 | |||||||||||
Atlanta Waverly |
$ | 7,421 | $ | (551 | ) | $ | 1,073 | $ | 1,251 | $ | | $ | 1,773 | |||||||||||
Renaissance Austin |
$ | 7,762 | $ | 720 | $ | 957 | $ | 1,074 | $ | | $ | 2,751 | ||||||||||||
Bethesda Marriott Suites |
$ | 3,084 | $ | (1,296 | ) | $ | 486 | $ | | $ | 1,451 | $ | 641 | |||||||||||
Boston Westin (2) |
$ | 6,221 | $ | (3,684 | ) | $ | 2,908 | $ | | $ | 117 | $ | (659 | ) | ||||||||||
Renaissance Charleston |
$ | 2,052 | $ | 224 | $ | 331 | $ | | $ | (29 | ) | $ | 526 | |||||||||||
Hilton Garden Inn Chelsea
(2) |
$ | 1,311 | $ | (91 | ) | $ | 422 | $ | | $ | | $ | 331 | |||||||||||
Chicago Marriott |
$ | 12,407 | $ | (6,124 | ) | $ | 3,313 | $ | 3,049 | $ | (365 | ) | $ | (127 | ) | |||||||||
Chicago Conrad (2) |
$ | 2,102 | $ | (1,408 | ) | $ | 1,137 | $ | | $ | | $ | (271 | ) | ||||||||||
Courtyard Fifth Avenue |
$ | 2,602 | $ | (1,055 | ) | $ | 439 | $ | 799 | $ | 48 | $ | 231 | |||||||||||
Courtyard Midtown East |
$ | 4,197 | $ | (927 | ) | $ | 532 | $ | 931 | $ | | $ | 536 | |||||||||||
Frenchmans Reef (2) |
$ | 9,634 | $ | 986 | $ | 953 | $ | 798 | $ | | $ | 2,737 | ||||||||||||
Griffin Gate Marriott |
$ | 3,331 | $ | (705 | ) | $ | 774 | $ | | $ | (1 | ) | $ | 68 | ||||||||||
Los Angeles Airport |
$ | 12,256 | $ | (104 | ) | $ | 1,308 | $ | 1,036 | $ | | $ | 2,240 | |||||||||||
Hilton Minneapolis (2) |
$ | 6,129 | $ | (527 | ) | $ | 1,682 | $ | | $ | (208 | ) | $ | 947 | ||||||||||
Oak Brook Hills |
$ | 2,608 | $ | (1,630 | ) | $ | 742 | $ | | $ | 125 | $ | (763 | ) | ||||||||||
Orlando Airport Marriott |
$ | 6,014 | $ | 486 | $ | 755 | $ | 784 | $ | | $ | 2,025 | ||||||||||||
Salt Lake City Marriott |
$ | 4,772 | $ | 70 | $ | 628 | $ | 409 | $ | | $ | 1,107 | ||||||||||||
The Lodge at Sonoma |
$ | 2,602 | $ | (658 | ) | $ | 329 | $ | | $ | | $ | (329 | ) | ||||||||||
Torrance Marriott South Bay |
$ | 4,666 | $ | 239 | $ | 735 | $ | | $ | | $ | 974 | ||||||||||||
Vail Marriott (2) |
$ | 6,494 | $ | 2,378 | $ | 509 | $ | | $ | | $ | 2,887 | ||||||||||||
Renaissance Worthington |
$ | 8,431 | $ | 2,003 | $ | 626 | $ | 717 | $ | 3 | $ | 3,349 | ||||||||||||
Total |
$ | 122,266 | $ | (10,798 | ) | $ | 21,352 | $ | 10,848 | $ | 1,141 | $ | 22,537 | |||||||||||
Comparable Total (3) |
$ | 112,632 | $ | (11,784 | ) | $ | 20,399 | $ | 10,050 | $ | 1,141 | $ | 19,801 | |||||||||||
(1) | The non-cash adjustments include expenses incurred by the hotels due to the straight
lining of the rent from our ground lease obligations, the non-cash amortization of favorable
lease assets, and the non-cash amortization of unfavorable contract liabilities. |
|
(2) | The hotel reports results on a monthly basis. The amounts presented are based on the
Companys reporting calendar for the first quarter and include the months of January and
February. |
|
(3) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort
due to the extensive ongoing renovation. |
- 15 -
Pro Forma Hotel Adjusted EBITDA Reconciliation
First Quarter 2010 (1) | ||||||||||||||||||||||||
Plus: | Plus: | Plus: | Equals: | |||||||||||||||||||||
Total Revenues | Net Income / (Loss) | Depreciation | Interest Expense | Non-Cash Adjustments (2) | Hotel Adjusted EBITDA | |||||||||||||||||||
Atlanta Alpharetta |
$ | 3,373 | $ | 658 | $ | 280 | $ | | $ | | $ | 938 | ||||||||||||
Westin Atlanta North (3) |
$ | 2,428 | $ | (86 | ) | $ | 408 | $ | | $ | | $ | 322 | |||||||||||
Atlanta Waverly |
$ | 7,818 | $ | (357 | ) | $ | 1,039 | $ | 1,266 | $ | | $ | 1,948 | |||||||||||
Renaissance Austin |
$ | 7,079 | $ | 131 | $ | 946 | $ | 1,085 | $ | | $ | 2,162 | ||||||||||||
Bethesda Marriott Suites |
$ | 2,989 | $ | (1,314 | ) | $ | 509 | $ | | $ | 1,463 | $ | 658 | |||||||||||
Boston Westin (3) |
$ | 6,930 | $ | (2,842 | ) | $ | 2,886 | $ | | $ | 117 | $ | 161 | |||||||||||
Renaissance Charleston |
$ | 1,904 | $ | 106 | $ | 384 | $ | | $ | (29 | ) | $ | 461 | |||||||||||
Hilton Garden Inn Chelsea
(3) |
$ | 1,267 | $ | (167 | ) | $ | 504 | $ | | $ | | $ | 337 | |||||||||||
Chicago Marriott |
$ | 12,076 | $ | (6,544 | ) | $ | 3,073 | $ | 3,128 | $ | (365 | ) | $ | (708 | ) | |||||||||
Chicago Conrad (3) |
$ | 1,833 | $ | (1,460 | ) | $ | 1,106 | $ | | $ | | $ | (354 | ) | ||||||||||
Courtyard Fifth Avenue |
$ | 2,681 | $ | (965 | ) | $ | 436 | $ | 807 | $ | 50 | $ | 328 | |||||||||||
Courtyard Midtown East |
$ | 3,985 | $ | (932 | ) | $ | 520 | $ | 958 | $ | | $ | 546 | |||||||||||
Frenchmans Reef (3) |
$ | 10,742 | $ | 5,645 | $ | 873 | $ | (2,335 | ) | $ | | $ | 4,183 | |||||||||||
Griffin Gate Marriott |
$ | 3,783 | $ | (686 | ) | $ | 778 | $ | | $ | (1 | ) | $ | 91 | ||||||||||
Los Angeles Airport |
$ | 12,268 | $ | 57 | $ | 1,299 | $ | 1,048 | $ | | $ | 2,404 | ||||||||||||
Minneapolis Hilton (3) |
$ | 5,578 | $ | (913 | ) | $ | 1,707 | $ | | $ | (175 | ) | $ | 619 | ||||||||||
Oak Brook Hills |
$ | 2,909 | $ | (1,327 | ) | $ | 746 | $ | | $ | 125 | $ | (456 | ) | ||||||||||
Orlando Airport Marriott |
$ | 5,488 | $ | (13 | ) | $ | 736 | $ | 794 | $ | | $ | 1,517 | |||||||||||
Salt Lake City Marriott |
$ | 5,107 | $ | 354 | $ | 717 | $ | 432 | $ | | $ | 1,503 | ||||||||||||
The Lodge at Sonoma |
$ | 2,251 | $ | (594 | ) | $ | 317 | $ | | $ | | $ | (277 | ) | ||||||||||
Torrance Marriott South Bay |
$ | 4,537 | $ | 81 | $ | 746 | $ | | $ | | $ | 827 | ||||||||||||
Vail Marriott (3) |
$ | 6,645 | $ | 2,386 | $ | 712 | $ | | $ | | $ | 3,098 | ||||||||||||
Renaissance Worthington |
$ | 7,908 | $ | 1,182 | $ | 781 | $ | 735 | $ | 3 | $ | 2,701 | ||||||||||||
Total |
$ | 121,579 | $ | (7,600 | ) | $ | 21,503 | $ | 7,918 | $ | 1,188 | $ | 23,139 | |||||||||||
Comparable Total (4) |
$ | 110,837 | $ | (13,245 | ) | $ | 20,630 | $ | 10,253 | $ | 1,188 | $ | 18,957 | |||||||||||
(1) | Assumes the Company owned all of its 23 hotels beginning January 1, 2010. |
|
(2) | The non-cash adjustments include expenses 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 and the non-cash amortization of our unfavorable contract liabilities. |
|
(3) | The hotel reports results on a monthly basis. The data presented is based upon the Companys
reporting calendar and includes the months of January and February. |
|
(4) | The comparable total excludes the Frenchmans Reef & Morning Star Marriott Beach Resort due
to the extensive ongoing renovation. |
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