Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - STRATEGIC HOTELS & RESORTS, INC | d418867d8k.htm |
 Investor
Presentation October 2012
Exhibit 99.1 |
 I.
BEE’s Unique Value Proposition
II.
Company Overview
III.
Industry Update
IV.
Operating Trends
V.
Financial Overview
BEE’s Unique Value Proposition
1 |
 o
The only pure play high-end lodging REIT
o
High-end outperforms the industry in a recovery
o
Industry leading asset management expertise
o
Assets are in pristine condition
o
Embedded organic growth through revenue growth and ROI opportunities
o
Historically low supply growth environment, particularly in BEE markets
o
Replacement cost, excluding land, approximately $750,000 per key
o
Balance sheet positioned for growth
The best investment proposition in the lodging space
2
BEE’s Unique Value Proposition |
 BEE’s
Unique Value Proposition Proven
Investment
Track Record
Industry Leading
Asset
Management
High-end, Unique
& Irreplaceable
Hotel & Resort
Portfolio
3 |
 Highlights
o
Best portfolio in public markets
o
Locations in high-barrier-to-entry markets
o
City-center and resort destinations
o
World-class amenities
o
No new supply in BEE’s markets
Westin St. Francis
Ritz-Carlton Laguna Niguel
InterContinental Chicago
BEE’s Unique Value Proposition
4
High-
end, Unique
& Irreplaceable
Hotel & Resort
Portfolio |
 Highlights
o
Execution of complex and accretive restructurings
o
Assessment and development of ROI projects
o
Recent success in acquiring hotels through
off-market transactions
o
Maximized proceeds through well-timed
asset sales
Hotel del Coronado
Michael Jordan’s Steak House
Fairmont Scottsdale Princess
BEE’s Unique Value Proposition
5
Proven
Investment
Track Record |
 EBITDA Per
Available Room Annual RevPAR Index
Highlights
o
Highest EBITDA per room in competitive
set
o
Sustained market share penetration
and revenue growth
o
Implemented cost cutting initiatives
in advance of recession
o
Maintaining fixed cost reductions
in recovery
o
Strong relationships with and rigorous
oversight of brand managers
BEE’s Unique Value Proposition
Note: All metrics represent full-year 2011 results.
BEE
portfolio
reflects
Total
United
States
portfolio
as
of
12/31/2011.
Source: Public filings
Source: Smith Travel Research
6
Industry Leading
Asset
Management
112.0
110.8
109.4
112.1
113.7
114.1
100
104
108
112
116
120
2007
2008
2009
2010
2011
TTM
$60
$40
$20
$0
$68
$65
$49
$46
$46
BEE
LHO
PEB
SHO
HST
DRH
$72
$80 |
 I.
BEE’s Unique Value Proposition
II.
Company Overview
III.
Industry Update
IV.
Operating Trends
V.
Financial Overview
Company Overview
7 |
 Half
Moon
Bay
La
Jolla
New
York
London,
England
Hamburg,
Germany
Washington,
D.C.
Miami
Lincolnshire
Resort
Scottsdale
St.
Francis
Silicon
Valley
Santa
Monica
Beach
Hotel
Laguna
Niguel
Punta
Mita
Resort
Chicago
Chicago
Jackson
Hole
Top-Tier Market Exposure
8
18
hotels
located
in
primary
gateway
cities
and
high
barrier
to
entry
markets;
including
8,271
rooms
and
851,600
square
feet
of
meeting
space |
 Essex House
Transaction - Background
9
o
Iconic and irreplaceable location on Central Park South
o
The property currently has 509 hotel guest rooms and
nine unsold condo units
o
11,600 square feet of meeting space
o
F&B outlets include Southgate restaurant and bar
o
An affiliate of the Company previously owned the
property and sold for $440 million in 2005 (605 keys)
o
Between 2005 and 2007, the owners of the property:
o
Invested approximately $90 million in the hotel
lobby and guestrooms |
 Essex House
Transaction - Summary
10
o
Total purchase price of $362.3 million, net of acquired cash
price reflects $685,000 per unit
o
Replacement cost estimate of $1.5 million per key
o
Purchased in a joint-venture with KSL Capital
o
Strategic 51% / KSL Capital 49%
o
$190.0 million first mortgage
o
LIBOR + 400 basis points (75 basis point LIBOR floor)
o
5-year term (including extensions)
o
Signed a 50-year management agreement to rebrand the
hotel as the JW Marriott Essex House New York
o
Includes an 8-year NOI guarantee of $21.5 million
annually (with funding caps; $40 million maximum)
o
$16.7 million PIP (through 2014) |
 o
InterContinental Miami –
Guestroom renovation
o
InterContinental Chicago –
Michael Jordan’s Steak House
o
Four Seasons Washington, D.C. –
Retail outlet renovation
o
Marriott Lincolnshire Resort –
Lobby renovation
o
Westin St. Francis –
Michael Mina Steakhouse conversion
o
Four Seasons Washington, D.C. –
Lobby renovation, 11-room
expansion, new restaurant, 63-room and suite renovation
o
Westin St. Francis –
Clock Bar
Notable 2009
capital projects
Notable 2010
capital projects
Notable 2011
capital projects
Four Seasons Washington, D.C. Lobby
Westin St. Francis Michael Mina
Bourbon Steak
InterContinental Miami Guestroom
Portfolio Well-Positioned to Enhance Cash Flow Growth
11
o
Fairmont Scottsdale Princess –
New Ballroom
o
InterContinental Miami –
Public space revitalization and
restaurant re-concept
Notable 2012
capital projects
Rendering of Fairmont Scottsdale
Princess Ballroom |
 Four Seasons
Washington, D.C. o
ENO Wine Room
o
Retail space optimization
Four Seasons Silicon Valley
o
Qauttro patio renovation
o
Meeting room renovation
InterContinental Chicago
o
North tower guestroom renovation
o
Meeting space expansion
o
Michigan Ave. façade optimization
Ritz-Carlton Laguna Niguel
o
35-room fire pit addition
o
Pool deck upgrades
InterContinental Miami
o
Meeting space expansion
o
Pool deck refurbishment
Fairmont Chicago
o
Meeting space renovation
o
Restaurant re-concept
Westin St. Francis
o
ENO Wine Room
Loews Santa Monica Beach Hotel
o
Exterior / interior upgrade
Potential Capital Projects in the Pipeline
12
Significant
ROI
capital
investment
opportunities
within
existing
portfolio;
rigorous
analysis
and
approval process for each project |
 I.
BEE’s Unique Value Proposition
II.
Company Overview
III.
Industry Update
IV.
Operating Trends
V.
Financial Overview
Industry Update
13 |
 o
Lodging demand historically correlates with GDP (~80%) but potential exists for
near-term disconnect, particularly at the high-end
o
Customer
demographics
for
luxury
/
high-end
very
strong
–
corporate
America
and
college
educated
consumers
o
Supply growth remains historically low and development pipeline indicates muted supply for
the next several years
Total U.S. Supply & Demand Change (TTM)
Demand growth exceeds supply growth by 370 bps which should
result in significant ADR growth as recovery continues
Lodging Outlook
+ 3.7%
14
-7%
-5%
-3%
-1%
1%
3%
5%
7%
9%
Supply % Change
Demand % Change
Source:
Smith Travel Research |
 Source: Smith Travel Research
Note: Data represents trends within the United States
o
Luxury supply growth was historically lower leading into the recent recession
o
Projects in planning or under construction have decreased significantly
o
No new competitive luxury or upper-upscale supply projected in BEE markets
o
1-2 years estimated time to permit; 3 years estimated time to build a luxury hotel
o
Economic proposition of hotel construction challenging with replacement cost estimated
at over $700,000 per key
Favorable Supply Outlook
Year-Over-Year % Supply Growth
1988 –
Q2 2012
Average: 3.9%
Supply Growth in
BEE Markets = 0.0%
15 |
 o
1992 –
2000: 9 consecutive years
of annual luxury RevPAR growth totaling 109% or 8.5%
annually o
2002 –
2007: 5 consecutive years
of annual luxury RevPAR growth totaling 48% or 8.2%
annually 15
Source: Smith Travel Research and PWC
Source: Smith Travel Research
Luxury
Outperformance:
2.2% CAGR
Luxury
Outperformance:
4.1% CAGR
Quarterly Luxury Room Night Demand (000s)
o
Luxury
hotels
have
experienced
prolonged
RevPAR
growth
following
past
industry
downturns
Luxury outperformed Total U.S. hotels
2.0% -
4.0% in previous two downturns
Luxury room night demand
currently at all-time highs
Luxury Hotels Outperform in a Recovery
16
Total U.S.
Luxury
o
Overall luxury room nights sold is at an
all-time high; 26% higher than 2007
Annual % Change in RevPAR
26%
Most luxury room
nights ever sold |
 ADR
RevPAR
EBITDA Per Available Room
Non –
Rooms Revenue Per Available Room
Note: All metrics represent full-year 2011 results
BEE
portfolio
reflects
Total
United
States
portfolio
as
of
12/31/2011
Source: Public filings
BEE delivers industry leading results
BEE Outperforms Competitors
17 |
 o
Total RevPAR is key top-line performance metric
o
Focus on maximizing RevPAR, non-rooms revenue, and yield per square foot
BEE Total Revenue Mix
Peers Total Revenue Mix
Note: All metrics represent the full-year 2011. BEE portfolio reflects the
North America Same Store portfolio Peers include: DRH, HST, LHO, PEB,
SHO Source: Public filings
BEE Revenue Mix Compared to Peers
Rooms
Other
Food &
Beverage
Rooms
Other
Food &
Beverage
18
54%
36%
10%
65%
29%
6%
BEE
revenue
driven
more
heavily
by
non-rooms
revenue
relative
to peers, maximizing yield per square foot from our hotels |
 18
Note: Statistics represent the full year 2011. Portfolio reflects the North America
Same Store portfolio BEE Occupied Room Nights Mix
BEE Room Revenue Mix
o
Targeted mix of business ~50% / 50% group / transient
o
Group business typically yields higher non-rooms revenue than transient business
43% Group
40% Group
57% Transient
60% Transient
BEE Revenue Mix
19
36%
21%
10%
27%
6%
40%
20%
9%
26%
5%
Transient -
Negotiated
Group -
Association
Group -
Corporate
Group -
Other
Transient -
Other
BEE total revenue driven heavily by group business and ancillary
group spend; still significant capacity to grow group business |
 3% better
than peers (1) Portfolio includes all North American hotels owned for the
full year 2011 Peers include: DRH, HST, LHO, PEB, & SHO
Source: Public filings
Industry Leading Operating Margins
20
BEE
(1)
Peers
Peer margins
Revenue
Rooms
54%
65%
54%
Food & Beverage
36%
29%
36%
Other
10%
6%
10%
Total
100%
100%
100%
Departmental Profit Margin
Rooms
71%
73%
73%
Food & Beverage
26%
27%
27%
EBITDA
21%
24%
18%
BEE’s
margins
significantly
outperform
when
adjusted
for
same
revenue
mix
@
BEE
Revenue Mix |
 I.
BEE’s Unique Value Proposition
II.
Company Overview
III.
Industry Update
IV.
Operating Trends
V.
Financial Overview
Operating Trends
21 |
 o
Group pace remains the most reliable forward looking indicator
o
Booking window has shortened forcing more reliance on room nights booked ITYFTY
(“in-the-year-for-the-year”)
Year-Over-Year Group Pace
Group room nights on the books for 2012 are approximately flat compared to
same time last year; ADR up approximately 4.0% compared to 2011 rate
Group room nights on the books for 2013 are up approximately 6.2% compared
to 2012; ADR up approximately 2.7% compared to 2012 rate
Group Booking Outlook
22
*2012 production in the year assumes the same production as in 2011
0
200,000
400,000
600,000
800,000
1,000,000
2007
2008
2009
2010
2011
2012*
Definite through August
Production in the year
Assuming similar production as 2011,
group room nights 14% below peak |
 Note:
Same
store
North
America
portfolio,
excludes:
Hotel
del
Coronado,
Fairmont
Scottsdale
Princess,
Four
Seasons
Jackson
Hole,
Four
Seasons
Silicon
Valley
2012
forecast
assumes
midpoint
of
guidance
range
Operating
performance
improving;
still
below
peak
Embedded Portfolio Growth
23
Occupancy
ADR
RevPAR
Property EBITDA (in millions)
60%
64%
68%
72%
76%
80%
2007
2008
2009
2010
2011
2012F
$140
$160
$180
$200
$220
2007
2008
2009
2010
2011
2012F
$120
$160
$200
$240
$280
2007
2008
2009
2010
2011
2012F
$100
$120
$140
$160
$180
$200
2007
2008
2009
2010
2011
2012F |
 I.
BEE’s Unique Value Proposition
II.
Company Overview
III.
Industry Update
IV.
Operating Trends
V.
Financial Overview
Financial Overview
24 |
 Raised $665
million in equity: o
$335 mm secondary offering (May 2010)
o
$145 mm Woodbridge transaction acquiring two Four
Seasons hotels plus PIPE (February 2011)
o
$70 mm equity placement to GIC for share in
InterContinental Chicago (June 2011)
o
$115 mm overnight equity offering (April 2012)
Asset sales:
o
Sold InterContinental Prague for
€110.6mm (December
2010)
o
Sold
leasehold
position
at
Marriott
Paris
Champs-Elysees
for
approximately
$60
million
(April
2011)
o
Sold
stake
in
BuyEfficient
for
$9mm
(January
2011)
Debt repayments:
o
Tendered and fully retired $180mm unsecured convertible
recourse notes (May
2010)
Hotel del Coronado complex restructuring (February 2011):
o
Negotiated
new
joint-venture
with
Blackstone
and
KSL
o
Closed
new
CMBS
mortgage
financing
totaling
$425mm
Accomplishments Since January 1
st
, 2010
25
Fairmont Scottsdale Princess complex restructuring (June
2011):
o
Negotiated new joint venture structure with Walton Street
Capital
o
Negotiated amendment and extension to CMBS debt for four
years at below market terms
New line of credit (June 2011):
o
Reduced lenders in bank syndicate from 21 banks to 10
banks
o
Achieved three year term with one year extension
Debt refinancings:
o
Six property loans refinanced totaling nearly $800 million
Preferred equity tender (December 2011):
o
Successfully tendered for approximately 22% of outstanding
preferred equity at a 15% discount to par plus accrued
preferred dividends
Reinstatement of preferred equity dividends (June 2012):
o
Paid 14 quarters of preferred equity dividends
Acquired the Essex House in New York City (September 2012):
o
Acquired a 51% interest in the property
o
Closed new mortgage financing totaling $190.0 million |
 BEE’s
balance sheet is structured for growth Strong Recapitalized Balance Sheet ($ in
millions) 26
Note: Assumes full extension periods for all loans.
(a)
Reflects the recent acquisition of the JW Marriott Essex House New York City.
(b)
EBITDA reflects mid-point of 2012 guidance range.
Key Stats
Net Debt/EBITDA
14.3x
Net Debt+Pref /EBITDA
17.4x
Net Debt/TEV
76.9%
Avg. Maturity (yrs)
3.4
Unencumbered assets
0
Corporate liquidity (MM)
$105.0
Mix of Debt
Bank Debt
18.5%
Life Insurance Co.
26.6%
CMBS
54.8%
January 1, 2010
June 30, 2012
(a)
$115.5
$130.0
$96.9
$195.0
$52.2
$315.7
$66.5
$145.8
$145.0
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Bank
Life Co.
CMBS
Corporate
$300.0
Capacity
$275.8
$412.6
$148.9
$124.9
$220.0
$173.5
$614.5
$194.8
$358.0
$0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Bank
Life Co.
CMBS
Corporate
$834.5
$875.2
Key Stats
(a)(b)
Net Debt/EBITDA
7.6x
Net Debt+Pref /EBITDA
9.3x
Net Debt/TEV
44.5%
Avg. Maturity (yrs)
4.6
Unencumbered assets
2
Corporate liquidity (MM)
$200.0
Mix of Debt
Bank Debt
42.6%
Life Insurance Co.
29.1%
CMBS
28.3% |
 (a)
Excludes
Fairmont
Scottsdale
Princess,
Four
Seasons
Jackson
Hole,
Four
Seasons
Silicon
Valley,
and
Hotel
del
Coronado
2
Quarter 2012 Results (EBITDA in millions)
27
2011 Actual
2012 Actual
Operations
(Same Store N.A. Portfolio)
(a)
ADR
$240
5.8%
$254
RevPAR
$177
9.5%
$194
Total RevPAR
$333
8.1%
$360
EBITDA Margins
23.4%
180 bps
25.2%
Corporate Results
Comparable EBITDA
$42.5
19.8%
$50.9
Comparable FFO / share
$0.05
112.6%
$0.11
nd |
 Portfolio excludes Fairmont Scottsdale Princess, Four Seasons Jackson Hole, Four
Seasons Silicon Valley, and Hotel del Coronado 2011 Comparable FFO / share
excludes one-time gain associated with preferred equity tender 2012 Guidance (EBITDA
in millions) (b)
28
(a)
(b)
2011 Actual
2012 Guidance
Operations
(Same Store N.A. Portfolio)
(a)
RevPAR
$170
6%-8%
$180-$183
Total RevPAR
$314
5%-7%
$330-$336
EBITDA Margins
21.1%
100 -
175bps
22.1%-22.9%
Corporate Results
Comparable EBITDA
$155
7%-16%
$165-$180
Comparable FFO / share
$0.14
50%-107%
$0.21-$0.29 |
 o
The only pure play high-end lodging REIT
o
High-end outperforms the industry in a recovery
o
Industry leading asset management expertise
o
Assets are in pristine condition
o
Embedded organic growth through revenue growth and ROI opportunities
o
Historically low supply growth environment, particularly in BEE markets
o
Replacement cost, excluding land, approximately $750,000 per key
o
Balance sheet positioned for growth
The best investment proposition in the lodging space
BEE’s Unique Value Proposition
29 |
 Except
for
historical
information,
the
matters
discussed
in
this
presentation
are
forward-looking
statements
subject
to
certain
risks
and
uncertainties.
Forward-looking
statements
relate
to
expectations,
beliefs,
projections,
future
plans
and
strategies,
anticipated
events
or
trends,
and
similar
expressions
concerning
matters
that
are
not
historical
facts.
These
forward-looking
statements
are
identified
by
their
use
of
such
terms
and
phrases
such
as
“anticipate,”
“believe,”
“could,”
“estimate,”
“expect,”
“intend,”
“may,”
“plan,”
“predict,”
“project,”
“should,”
“will,”
“continue”
and
other
similar
terms
and
phrases,
including
references
to
assumptions
and
forecasts
of
future
results.
Forward-looking
statements
are
not
guarantees
of
future
performance.
Actual
results
could
differ
materially
from
the
Company’s
projections.
Factors
that
may
contribute
to
these
differences
include,
but
are
not
limited
to
the
following:
the
effects
of
the
recent
global
economic
recession
upon
business
and
leisure
travel
and
the
hotel
markets
in
which
the
Company
invests;
the
Company’s
liquidity
and
refinancing
demands;
the
Company’s
ability
to
obtain
or
refinance
maturing
debt;
the
Company’s
ability
to
maintain
compliance
with
covenants
contained
in
the
Company’s
debt
facilities;
stagnation
or
further
deterioration
in
economic
and
market
conditions,
particularly
impacting
business
and
leisure
travel
spending
in
the
markets
where
the
Company’s
hotels
operate
and
in
which
the
Company
invests,
including
luxury
and
upper
upscale
product;
general
volatility
of
the
capital
markets
and
the
market
price
of
the
Company’s
shares
of
common
stock;
availability
of
capital;
the
Company’s
ability
to
dispose
of
properties
in
a
manner
consistent
with
the
Company’s
investment
strategy
and liquidity
needs;
hostilities
and
security
concerns,
including
future
terrorist
attacks,
or
the
apprehension
of
hostilities,
in
each
case
that
affect
travel
within
or
to
the
United
States,
Mexico,
Germany,
England
or
other
countries
where
the
Company
invests;
difficulties
in
identifying
properties
to
acquire
and
completing
acquisitions;
the
Company’s
failure
to
maintain
effective
internal
control
over
financial
reporting
and
disclosure
controls
and
procedures;
risks
related
to
natural
disasters;
increases
in
interest
rates
and
operating
costs,
including
insurance
premiums
and
real
property
taxes;
contagious
disease
outbreaks,
such as the H1N1
virus
outbreak;
delays
and
cost-overruns
in
construction
and
development;
marketing
challenges
associated
with
entering
new
lines
of
business
or
pursuing
new
business
strategies;
the
Company’s
failure
to
maintain
the
Company’s
status
as
a
REIT;
changes
in
the
competitive
environment
in
the
Company’s
industry
and
the
markets
where
the
Company
invests;
changes
in
real
estate
and
zoning
laws
or
regulations;
legislative
or
regulatory
changes,
including
changes
to
laws
governing
the
taxation
of
REITS;
changes
in
generally
accepted
accounting
principles,
policies
and
guidelines;
and
litigation,
judgments
or
settlements.
Additional
risks
are
discussed
in
the
Company’s
filings
with
the
Securities
and
Exchange
Commission,
including
those
appearing
under
the
heading
“Item
1A.
Risk
Factors”
in
the
Company’s
most
recent
Form
10-K
and
subsequent
Form
10-Qs.
Although
the
Company
believes
the
expectations
reflected
in
such
forward-looking
statements
are
based
on
reasonable
assumptions,
it
can
give
no
assurance
that
its
expectations
will
be
attained.
The
forward-looking
statements
are
made
as
of
the
date
of
this
press
release,
and
the
Company
undertakes
no
obligation
to
publicly
update
or
revise
any
forward-looking
statement,
whether
as
a
result
of
new
information,
future
events
or
otherwise,
except
as
required
by
law.
Disclaimer
30 |
 Non-GAAP
to GAAP Reconciliations 31
Reconciliation of Net Debt / EBITDA
($ in 000s)
YE 2009
(a)
2Q 2012
(b)(c)
Consolidated debt
$1,658,745
$1,119,817
Pro rata share of unconsolidated debt
282,825
309,175
Pro rata share of consolidated debt
(107,065)
(45,548)
Cash and cash equivalents
(116,310)
(76,180)
Net Debt
$1,718,195
$1,307,264
Comparable EBITDA
$119,953
$172,500
Net Debt / EBITDA
14.3x
7.6x
(a) All figures taken from year-end 2009 financial statements.
(b) Comparable EBITDA reflects mid-point of guidance range.
(c) All figures taken from 2nd quarter 2012 financial statements and updated
to reflect the JW Marriott Essex House transaction.
Reconciliation of Net Debt + Preferred Equity / EBITDA
($ in 000s)
YE 2009
(a)
2Q 2012
(b)(c)
Preferred equity capitalization
$370,236
$289,102
Consolidated debt
1,658,745
1,119,817
Pro rata share of unconsolidated debt
282,825
309,175
Pro rata share of consolidated debt
(107,065)
(45,548)
Cash and cash equivalents
(116,310)
(76,180)
Net Debt + Preferreds
$2,088,431
$1,596,366
Comparable EBITDA
$119,953
$172,500
Net Debt + Preferreds / EBITDA
17.4x
9.3x
(a) All figures taken from year-end 2009 financial statements.
(b) Comparable EBITDA reflects mid-point of guidance range.
(c) All figures taken from 2nd quarter 2012 financial statements and updated
to reflect the JW Marriott Essex House transaction.
Reconciliation of Net Debt / TEV
($ in 000s)
YE 2009
(a)
2Q 2012
(b)
Consolidated Debt
$1,658,745
$1,119,817
Pro rata share of unconsolidated debt
282,825
309,175
Pro rata share of consolidated debt
(107,065)
(45,548)
Cash and cash equivalents
(116,310)
(76,180)
Net Debt
$1,718,195
$1,307,264
Market Capitalization
$144,966
$1,342,117
Total Debt
1,834,505
1,383,444
Preferred Equity
370,236
289,102
Cash and cash equivalents
(116,310)
(76,180)
Total Enterprise Value
$2,233,397
$2,938,483
Net Debt / Enterprise Value
76.9%
44.5%
(a) All figures taken from year-end 2009 financial statements.
(b) All figures taken from 2nd quarter 2012 financial statements and updated
to reflect the JW Marriott Essex House transaction.
|
 Non-GAAP
to GAAP Reconciliations 32
2012
2011
2012
2011
Net (loss) income attributable to SHR common shareholders
(2,998)
$
39,538
$
(34,514)
$
4,131
$
Depreciation and amortization
25,277
30,091
50,767
60,696
Interest expense
19,080
25,762
38,685
45,310
Income taxes -
continuing operations
350
1,060
815
(588)
Income taxes -
discontinued operations
-
20
-
379
Noncontrolling interests
8
224
(109)
86
Adjustments from consolidated affiliates
(1,246)
(2,854)
(2,503)
(4,183)
Adjustments from unconsolidated affiliates
6,888
5,241
13,570
9,131
Preferred shareholder dividends
6,042
7,722
12,083
15,443
EBITDA
53,401
106,804
78,794
130,405
Realized
portion
of
deferred
gain
on
sale-leaseback
-
continuing
operations
(50)
(56)
(101)
(109)
Realized
portion
of
deferred
gain
on
sale-leaseback
-
discontinued
operations
-
(62)
-
(1,214)
Gain on sale of assets -
continuing operations
-
-
-
(2,640)
Gain on sale of assets -
discontinued operations
-
(100,951)
-
(100,965)
Loss on early extinguishment of debt
-
838
-
838
Loss on early termination of derivative financial instruments
-
29,242
-
29,242
Foreign
currency
exchange
loss
(gain)
-
continuing
operations
(a)
168
(147)
173
(286)
Foreign
currency
exchange
loss
(gain)
-
discontinued
operations
(a)
535
7
535
(51)
Adjustment for Value Creation Plan
(3,167)
6,818
4,772
15,999
Comparable EBITDA
50,887
$
42,493
$
84,173
$
71,219
$
(a)
Foreign currency exchange gains or losses applicable to
third-party and inter-company debt and certain balance sheet items held by
foreign subsidiaries.
June 30,
June 30,
Reconciliation of Net (Loss) Income Attributable to SHR Common
Shareholders to EBITDA and Comparable EBITDA (in thousands)
Three Months Ended
Six Months Ended |
 Non-GAAP
to GAAP Reconciliations 33
2012
2011
2012
2011
Net (loss) income attributable to SHR common shareholders
(2,998)
$
39,538
(34,514)
$
4,131
$
Depreciation and amortization
25,277
30,091
50,767
60,696
Corporate depreciation
(264)
(290)
(529)
(589)
Gain on sale of assets -
continuing operations
-
-
-
(2,640)
Gain on sale of assets -
discontinued operations
-
(100,951)
-
(100,965)
Realized
portion
of
deferred
gain
on
sale-leaseback
-
continuing
operations
(50)
(56)
(101)
(109)
Realized
portion
of
deferred
gain
on
sale-leaseback
-
discontinued
operations
-
(62)
-
(1,214)
Deferred tax expense on realized portion of deferred gain on
sale-leasebacks -
20
-
379
Noncontrolling interests adjustments
(120)
(149)
(253)
(306)
Adjustments from consolidated affiliates
(659)
(1,598)
(1,326)
(3,159)
Adjustments from unconsolidated affiliates
3,779
2,414
7,543
4,253
FFO
24,965
(31,043)
21,587
(39,523)
Redeemable noncontrolling interests
128
373
144
392
FFO -
Fully Diluted
25,093
(30,670)
21,731
(39,131)
Non-cash mark to market of interest rate swaps
(1,187)
2,733
(2,717)
(1,633)
Loss on early extinguishment of debt
$
-
838
-
838
Loss on early termination of derivative financial instruments
-
29,242
-
29,242
Foreign
currency
exchange
loss
(gain)
-
continuing
operations
(a)
168
(147)
173
(286)
Foreign
currency
exchange
loss
(gain)
-
discontinued
operations
(a)
535
7
535
(51)
Adjustment for Value Creation Plan
(3,167)
6,818
4,772
15,999
Comparable FFO
21,442
$
8,821
24,494
$
4,978
$
Comparable FFO per diluted share
0.11
$
0.05
$
0.12
$
0.03
$
Weighted average diluted shares
204,099
178,488
197,133
169,379
(a)
Foreign currency exchange gains or losses applicable to
third-party and inter-company debt and certain balance sheet items held by foreign
subsidiaries.
Reconciliation of Net (Loss) Income Attributable to SHR Common
Shareholders to (in thousands, except per share data)
June 30,
June 30,
Three Months Ended
Six Months Ended
Funds From Operations (FFO), FFO -
Fully Diluted and Comparable FFO
$
|
 Non-GAAP
to GAAP Reconciliations 34
Operational Guidance
Low Range
High Range
North American same store Total RevPAR growth (a)
5.0%
7.0%
North American same store RevPAR growth (a)
6.0%
8.0%
(a)
Includes
North
American
hotels
which
are
consolidated
in
our
financial
results,
but
excludes
the
Four
Seasons
Jackson
Hole
and
Four
Seasons Silicon Valley hotels, which were acquired in 2011.
Comparable EBITDA Guidance
Low Range
High Range
Net loss attributable to common shareholders
(81.4)
$
(66.4)
$
Depreciation and amortization
112.0
112.0
Interest expense
82.6
82.6
Income taxes
0.9
0.9
Noncontrolling interests
(0.3)
(0.3)
Adjustments from consolidated affiliates
(5.8)
(5.8)
Adjustments from unconsolidated affiliates
28.0
28.0
Preferred shareholder dividends
24.2
24.2
Realized portion of deferred gain on sale-leasebacks
(0.2)
(0.2)
Adjustment for Value Creation Plan
4.8
4.8
Other adjustments
0.2
0.2
Comparable EBITDA
165.0
$
180.0
$
Comparable FFO Guidance
Low Range
High Range
Net loss attributable to common shareholders
(81.4)
$
(66.4)
$
Depreciation and amortization
110.8
110.8
Realized portion of deferred gain on sale-leasebacks
(0.2)
(0.2)
Noncontrolling interests
(0.3)
(0.2)
Adjustments from consolidated affiliates
(2.8)
(2.8)
Adjustments from unconsolidated affiliates
15.4
15.4
Adjustment for Value Creation Plan
4.8
4.8
Other adjustments
(2.5)
(2.5)
Comparable FFO
43.8
$
58.9
$
Comparable FFO per diluted share
0.21
$
0.29
$
December 31, 2012
Year Ended
December 31, 2012
Year Ended
2012 Guidance
(in millions, except per share data)
Year Ended
December 31, 2012 |
 Thank
You |