Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - STRATEGIC HOTELS & RESORTS, INC | d436193d8k.htm |
 Investor
Presentation November 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 3
Proven
Investment
Track Record
Industry Leading
Asset
Management
High-end, Unique
& Irreplaceable
Hotel & Resort
Portfolio |
 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 |
 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
EBITDA Per Available Room
Annual RevPAR Index
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
112.0
110.8
109.4
112.1
113.7
113.8
100
104
108
112
116
120
2007
2008
2009
2010
2011
TTM
Industry Leading
Asset
Management |
 I.
BEE’s Unique Value Proposition
II.
Company Overview
III.
Industry Update
IV.
Operating Trends
V.
Financial Overview
Company Overview
7 |
 Top-Tier
Market Exposure Jackson Hole
Silicon Valley
8
New York
Punta Mita Resort
Santa Monica Beach Hotel
Halfoon
Bay
La Jolla
St. Francis
Laguna Niguel
Hamburg, Germany
Chicago
Lincolnshire Resort
Chicago
Miami
Washington, D.C.
London, England
Scottsdale
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
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 Partners, LLC
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) |
 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
Notable 2012
capital projects
Rendering of Fairmont Scottsdale
Princess Ballroom
o
Fairmont Scottsdale Princess – New Ballroom
o
InterContinental Miami – Public space revitalization and
restaurant re-concept
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 |
 Four Seasons
Washington, D.C. o
o
Four Seasons Jackson Hole
o
InterContinental Chicago
o
Westin St. Francis
o
Loews Santa Monica Beach Hotel
o
Potential Capital Projects in the Pipeline
12
Ritz-Carlton Laguna Niguel
o
ENO Wine Room
Meeting space upgrade & expansion
Restaurant re-concept
North tower guestroom renovation
Guestroom enhancement
Exterior upgrade
ENO Wine Room
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
Source: Smith Travel Research
Lodging Outlook
14
Demand growth exceeds supply growth by 290 bps which should
result in significant ADR growth as recovery continues
-7%
-5%
-3%
-1%
1%
3%
5%
7%
9%
Supply % Change
Demand % Change
+ 2.9%
Total U.S. Supply & Demand Change (TTM) |
 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
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 –
Q3 2012
Average: 3.9%
15
(4%)
(2%)
0%
2%
4%
6%
8%
10%
12%
14% |
 16
Source: Smith Travel Research and PWC
Source: Smith Travel Research
Luxury
Outperformance:
2.2% CAGR
Luxury
Outperformance:
4.1% CAGR
Annual % Change in RevPAR
Quarterly Luxury Room Night Demand (000s)
o
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
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
22%
16
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Total U.S.
Luxury
10,000
15,000
20,000
25,000
30,000
35,000
o
Overall luxury room nights sold are 22% higher than 2007
Luxury hotels have experienced prolonged RevPAR growth following past industry downturns |
 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 Outperforms Competitors
17
BEE delivers industry leading results |
 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
BEE revenue driven more heavily by non-rooms revenue relative to
peers, maximizing yield per square foot from our hotels
54%
36%
10%
65%
29%
6% |
 19
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
BEE total revenue driven heavily by group business and ancillary
group spend; still significant capacity to grow group business
Transient -
Other
Transient -
Negotiated
Group -
Association
Group -
Corporate
Group -
Other
36%
21%
10%
27%
6%
40%
20%
9%
26%
5% |
 BEE
(1)
Peers
Peer margins
@ BEE
Revenue Mix
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%
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’s margins significantly outperform when adjusted for same 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
Assuming similar production as 2011,
group room nights 14% below peak
*2012 production in the year assumes the same production as in 2011
Group Booking Outlook
22
Group room nights on the books for 2012 are 0.1% lower compared to
same time last year; ADR up approximately 3.5% compared to 2011 rate
Group room nights on the books for 2013 are up approximately 6%
compared to 2012; ADR up approximately 2% compared to 2012 rate 0
200,000
400,000
600,000
800,000
1,000,000
2007
2008
2009
2010
2011
2012*
Definite through September
Production in the year |
 Occupancy
ADR
RevPAR
Property EBITDA (in millions)
Embedded Portfolio Growth
23
Note: North America Same Store 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
$100
$120
$140
$160
$180
$200
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
60%
64%
68%
72%
76%
80%
2007
2008
2009
2010
2011
2012F |
 Financial
Overview I.
BEE’s Unique Value Proposition
II.
Company Overview
III.
Industry Update
IV.
Operating Trends
V.
Financial Overview
24 |
 Raised $665
million in equity: o
$335 mm follow-on public 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
Seven property loans refinanced totaling nearly $900 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 |
 Key Stats
(a)
Net Debt/EBITDA
7.5x
Net Debt+Pref /EBITDA
9.2x
Net Debt/TEV
45.8%
Avg. Maturity (yrs)
4.5
Unencumbered assets
2
Corporate liquidity (MM)
$200.0
Mix of Debt
Bank Debt
42.8%
Life Insurance Co.
28.7%
CMBS
28.5%
$114.9
$130.0
$96.9
$195.0
$359.7
$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
$456.6
$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
$875.2
January 1, 2010
September 30, 2012
BEE’s balance sheet is structured for growth
Strong Recapitalized Balance Sheet ($ in millions)
Note: Assumes full extension periods for all loans.
(a)
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%
26 |
 3
rd
Quarter 2012 Results (EBITDA in millions)
27
(a)
Portfolio excludes the JW Marriott Essex House
(b)
Margins exclude a $2.7 million real estate tax charge at the Hotel del
Coronado (a)
(b)
2011 Actual
2012 Actual
Operations
(Total United States Portfolio)
ADR
$258
5.2%
$272
RevPAR
$198
5.8%
$209
Total RevPAR
$352
5.7%
$372
EBITDA Margins
24.1%
110 bps
25.2%
Corporate Results
Comparable EBITDA
$43.6
6.7%
$46.6
Comparable FFO / share
$0.06
36.0%
$0.08 |
 Year to Date
2012 Results (EBITDA in millions) 28
(a) Portfolio excludes the JW Marriott Essex House
(a)
2011 Actual
2012 Actual
Operations
(Total United States Portfolio)
ADR
$247
5.5%
$260
RevPAR
$178
7.7%
$192
Total RevPAR
$337
6.7%
$360
EBITDA Margins
22.1%
130 bps
23.4%
Corporate Results
Comparable EBITDA
$114.8
13.8%
$130.7
Comparable FFO / share
$0.09
123.6%
$0.21 |
 (a)
Portfolio excludes Fairmont Scottsdale Princess, Four Seasons Jackson Hole, Four
Seasons Silicon Valley, and Hotel del Coronado (b)
2011 Comparable FFO / share excludes one-time gain associated with preferred
equity tender 2012 Guidance (EBITDA in millions)
(b)
29
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
30 |
 Disclaimer
31
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 presentation, 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. |
 Non-GAAP
to GAAP Reconciliations 32
Reconciliation of Net Debt / TEV
($ in 000s)
YE 2009
(a)
3Q 2012
Consolidated Debt
$1,658,745
$1,309,347
Pro rata share of unconsolidated debt
282,825
212,275
Pro rata share of consolidated debt
(107,065)
(138,648)
Cash and cash equivalents
(116,310)
(82,048)
Net Debt
$1,718,195
$1,300,926
Market Capitalization
$144,966
$1,248,704
Total Debt
1,834,505
1,382,974
Preferred Equity
370,236
289,102
Cash and cash equivalents
(116,310)
(82,048)
Total Enterprise Value
$2,233,397
$2,838,732
Net Debt / Enterprise Value
76.9%
45.8%
(a) All figures taken from year-end 2009 financial statements.
Reconciliation of Net Debt / EBITDA
($ in 000s)
YE 2009
(a)
3Q 2012
(b)
Consolidated debt
$1,658,745
$1,309,347
Pro rata share of unconsolidated debt
282,825
212,275
Pro rata share of consolidated debt
(107,065)
(138,648)
Cash and cash equivalents
(116,310)
(82,048)
Net Debt
$1,718,195
$1,300,926
Comparable EBITDA
$119,953
$172,500
Net Debt / EBITDA
14.3x
7.5x
(a) All figures taken from year-end 2009 financial statements.
(b) Comparable EBITDA reflects mid-point of guidance range.
Reconciliation of Net Debt + Preferred Equity / EBITDA
($ in 000s)
YE 2009
(a)
3Q 2012
(b)
Preferred equity capitalization
$370,236
$289,102
Consolidated debt
1,658,745
1,309,347
Pro rata share of unconsolidated debt
282,825
212,275
Pro rata share of consolidated debt
(107,065)
(138,648)
Cash and cash equivalents
(116,310)
(82,048)
Net Debt + Preferreds
$2,088,431
$1,590,028
Comparable EBITDA
$119,953
$172,500
Net Debt + Preferreds / EBITDA
17.4x
9.2x
(a) All figures taken from year-end 2009 financial statements.
(b) Comparable EBITDA reflects mid-point of guidance range. |
 Non-GAAP
to GAAP Reconciliations 33
2012
2011
2012
2011
Net loss attributable to SHR common shareholders
(8,557)
$
(11,902)
$
(43,071)
$
(7,771)
$
Depreciation and amortization
25,649
25,526
76,416
86,222
Interest expense
19,942
21,838
58,627
67,148
Income taxes - continuing operations
(600)
867
215
279
Income taxes - discontinued
operations -
-
-
379
Noncontrolling interests
(17)
(16)
(126)
70
Adjustments from
consolidated affiliates (1,879)
(1,248)
(4,382)
(5,431)
Adjustments from unconsolidated affiliates
7,036
7,162
20,606
16,293
Preferred shareholder dividends
6,042
7,721
18,125
23,164
EBITDA
47,616
49,948
126,410
180,353
Realized portion of deferred gain on sale-leaseback -
continuing operations (49)
(42)
(150)
(151)
Realized portion of deferred gain on
sale-leaseback - discontinued operations -
-
-
(1,214)
Gain on sale of assets - continuing operations
-
-
-
(2,640)
Loss (gain) on sale of assets - discontinued
operations -
35
-
(100,930)
Loss on early extinguishment of debt
-
399
-
1,237
Loss on early termination of derivative financial
instruments -
-
-
29,242
Foreign currency exchange loss (gain) - continuing
operations (a) 996
209
1,169
(77)
Foreign currency exchange
loss (gain) - discontinued operations (a) -
-
535
(51)
Adjustment for Value
Creation Plan (2,013)
(6,921)
2,759
9,078
Comparable EBITDA
46,550
$
43,628
$
130,723
$
114,847
$
(a)
Foreign currency exchange gains or losses applicable to
third-party and inter-company debt and certain balance sheet items held by
foreign subsidiaries.
September 30,
September 30,
Reconciliation of Net Loss Attributable to SHR Common Shareholders to
EBITDA and Comparable EBITDA (in thousands)
Three Months Ended
Nine Months Ended |
 Non-GAAP
to GAAP Reconciliations 34
2012
2011
2012
2011
Net loss attributable to SHR common shareholders
(8,557)
$
(11,902)
$
(43,071)
$
(7,771)
$
Depreciation and amortization
25,649
25,526
76,416
86,222
Corporate depreciation
(260)
(279)
(789)
(868)
Gain on sale of assets
- continuing operations -
-
-
(2,640)
Loss (gain) on sale of assets -
discontinued operations -
35
-
(100,930)
Realized portion of deferred gain on sale-leaseback -
continuing operations (49)
(42)
(150)
(151)
Realized portion of
deferred gain on sale-leaseback - discontinued operations
-
-
-
(1,214)
Deferred tax expense on realized portion of
deferred gain on sale-leasebacks -
-
-
379
Noncontrolling
interests adjustments (121)
(134)
(374)
(440)
Adjustments from
consolidated affiliates (859)
(663)
(2,185)
(3,822)
Adjustments from unconsolidated
affiliates 3,792
3,770
11,335
8,023
FFO
19,595
16,311
41,182
(23,212)
Redeemable noncontrolling interests
104
118
248
510
FFO - Fully
Diluted 19,699
16,429
41,430
(22,702)
Non-cash mark to market of interest rate swaps
(1,688)
1,146
(4,405)
(487)
Loss on early
extinguishment of debt -
399
-
1,237
Loss on early termination of
derivative financial instruments -
-
-
29,242
Foreign currency exchange loss (gain) -
continuing operations (a) 996
209
1,169
(77)
Foreign
currency exchange loss (gain) - discontinued operations (a)
-
-
535
(51)
Adjustment for
Value Creation Plan (2,013)
(6,921)
2,759
9,078
Comparable FFO
16,994
$
11,262
$
41,488
$
16,240
$
Comparable FFO per diluted share
0.08
$
0.06
$
0.21
$
0.09
$
Weighted average diluted shares
(b) 208,696
188,097
201,050
175,974
(a)
Foreign currency exchange gains or losses applicable to
third-party and inter-company debt and certain balance sheet items held by foreign
subsidiaries.
(b)
Excludes shares related to the JW Marriott Essex House Hotel put
option. Reconciliation of Loss Attributable to SHR Common
Shareholders to (in thousands, except per share data)
September 30,
September 30,
Three Months Ended
Nine Months Ended
Funds From Operations (FFO), FFO - Fully Diluted and Comparable
FFO |
 Non-GAAP
to GAAP Reconciliations 35
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 |