Attached files
| file | filename |
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| 8-K - 8-K - Braemar Hotels & Resorts Inc. | ahp2017q4earningsrelease8-k.htm |
EXHIBIT 99.1
NEWS RELEASE
Contact: | Deric Eubanks | Jordan Jennings | Joe Calabrese |
Chief Financial Officer | Investor Relations | Financial Relations Board | |
(972) 490-9600 | (972) 778-9487 | (212) 827-3772 | |
ASHFORD PRIME REPORTS FOURTH QUARTER AND
YEAR END 2017 RESULTS
Insurance Recoveries Well Ahead of Previously Communicated Expectations
$4.1 Million in Business Interruption Income Booked in Fourth Quarter
Announced Agreement to Acquire the Ritz-Carlton Sarasota
DALLAS, February 28, 2018 -- Ashford Hospitality Prime, Inc. (NYSE: AHP) (“Ashford Prime” or the “Company”) today reported the following results and performance measures for the fourth quarter ended December 31, 2017. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA are comparable assuming each of the hotel properties in the Company’s hotel portfolio as of December 31, 2017 were owned as of the beginning of each of the periods presented. Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2017, with the fourth quarter ended December 31, 2016 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.
STRATEGIC OVERVIEW
• | Focused strategy of investing in luxury hotels and resorts |
• | Targets conservative leverage levels of 45% Net Debt to Gross Assets |
• | Highly-aligned management team and advisory structure |
• | Dividend yield of approximately 7.4% |
FINANCIAL AND OPERATING HIGHLIGHTS
• | Net income attributable to common stockholders for the quarter was $23.2 million or $0.65 per diluted share. For the full year of 2017, net income attributable to common stockholders was $16.2 million or $0.51 per diluted share. |
• | Comparable RevPAR for all hotels that did not incur business interruption claims decreased 1.1% to $174.39 during the fourth quarter |
• | Comparable RevPAR for all hotels not under renovation decreased 2.7% to $181.23 during the fourth quarter |
• | Comparable Hotel EBITDA Margin for all hotels increased 299 basis points to 30.3% for the quarter |
• | Comparable Hotel EBITDA flow-through for all hotels was 101% for the quarter |
• | Adjusted funds from operations (AFFO) was $0.31 per diluted share for the quarter as compared with $0.34 per diluted share from the prior-year quarter |
• | Adjusted EBITDA was $22.0 million for the quarter, compared with $21.6 million for the prior year quarter |
• | During the quarter, the Company booked $4.1 million of business interruption income related to lost profits at the Ritz-Carlton St. Thomas and the Pier House Resort during September, October and November 2017 |
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February 28, 2018
• | During the quarter, the Company announced that it entered into an agreement with Marriott to convert its Courtyard San Francisco Downtown hotel to an Autograph Collection property |
• | During the quarter, the Company announced that it had completed the sale of its Marriott Plano Legacy hotel in Plano, Texas for $104 million |
• | Subsequent to the end of the quarter, the Company announced it has entered into a definitive agreement to acquire the 266-room Ritz-Carlton Sarasota in Sarasota, FL for $171 million ($643,000 per key) |
• | Capex invested during the quarter was $10.3 million |
UPDATE ON IMPACT FROM HURRICANES AND CALIFORNIA WILDFIRES
As previously announced, the Company’s Ritz-Carlton St. Thomas resort received physical damage from Hurricane Irma and the Company continues to work with its insurers to assess the damage and impact to operations. Three of the six guestroom buildings on the property were damaged, and the Company, along with Ritz-Carlton, continues to work on a comprehensive capital investment plan to rebuild the resort. The resort, which represents 8.3% of Ashford Prime's Hotel EBITDA on a trailing twelve-month basis through the fourth quarter, remains functioning and currently has 83 of its 180 guest rooms available for those taking part in the recovery effort. The resort has suspended online reservations until October 2018.
The Company's Pier House Resort & Spa sustained minor physical damage from Hurricane Irma, and the hotel is currently accepting reservations and has resumed operations with all of its 142 guest rooms available and in service.
In the fourth quarter, the Company recognized $4.1 million of business interruption income for these two properties related to lost profits for the period of September through November. The Company will continue to work with its insurers on the business interruption claim at these properties.
During the quarter, the Company’s two properties in Yountville, California - the Bardessono Hotel & Spa and the Hotel Yountville - were negatively impacted by the wildfires that affected Northern California. While neither property incurred any physical damage to their structures, the fires had a significant impact on the business operations of the hotels and the Company is in the process of working with its insurers on business interruption claims. As part of that effort, the Company expects to record $2.3 million in business interruption income in the first quarter for lost profits from the fourth quarter at these two hotels. The Company has a deductible of $500,000 associated with this claim.
RITZ-CARLTON SARASOTA ACQUISITION
On February 16, 2018, the Company announced it had entered into a definitive agreement to acquire the 266-room Ritz-Carlton Sarasota in Sarasota, FL for $171 million ($643,000 per key). The purchase price represents a trailing twelve month cap rate, as of December 31, 2017, of 6.0% and the Company expects to realize a stabilized unleveraged yield of approximately 8% on its investment. To fund the acquisition, the Company plans to use cash on its balance sheet as well as either drawing on its revolving credit line or securing a non-recourse mortgage loan on the property. The acquisition is expected to close in April 2018, subject to customary closing conditions. Because the acquisition is subject to customary closing conditions, the Company can give no assurance that the transaction will be consummated by such date or at all.
UPDATE ON NON-CORE HOTELS STRATEGY
During the fourth quarter, the Company announced the finalization of its strategy for its non-core hotels. On November 1, 2017, the Company announced plans to convert its Courtyard San Francisco Downtown hotel to an Autograph Collection hotel by December 2019 pursuant to a conversion PIP currently estimated to be approximately $30 million incremental to capital projects already underway - including updates to the guestrooms, guest bathrooms, corridors, lobby, restaurant, facade, and meeting space - which will create a distinctive theme and style for the property that is commensurate with the Autograph Collection product. Marriott will continue to manage the property after the conversion.
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February 28, 2018
Additionally, on November 1, 2017, the Company announced that it had completed the sale of its Marriott Plano Legacy hotel in Plano, Texas for $104 million. The Company also announced that it is in the process of marketing for sale its other non-core hotel, the Renaissance Tampa in Tampa, FL.
CAPITAL STRUCTURE
At December 31, 2017, the Company had total assets of $1.4 billion. As of December 31, 2017, the Company had $826 million of mortgage debt of which $48 million related to its joint venture partner’s share of debt on the Capital Hilton and Hilton La Jolla Torrey Pines. The Company’s total combined debt had a blended average interest rate of 4.3%.
PORTFOLIO REVPAR
As of December 31, 2017, the portfolio consisted of twelve properties. During the fourth quarter of 2017, seven of the Company’s hotels were not under renovation. The Company believes reporting its operating metrics for its hotels on a comparable total basis (all 12 hotels) and comparable not under renovation basis (7 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio. Details of each category are provided in the tables attached to this release.
• | Comparable RevPAR decreased 9.2% to $188.15 for all hotels on a 5.3% decrease in ADR and a 4.2% decrease in occupancy |
• | Comparable RevPAR decreased 2.7% to $181.23 for hotels not under renovation on a 0.8% decrease in ADR and a 1.9% decrease in occupancy |
• | Comparable RevPAR decreased 1.1% for all hotels that did not incur business interruption claims on a 2.2% increase in ADR and a 3.2% decrease in occupancy |
HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
The Company believes year-over-year Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company’s portfolio, to help investors better understand this seasonality, the Company provides quarterly detail on its Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company’s portfolio as of the end of the current period. As the Company’s portfolio mix changes from time to time so will the seasonality for Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin. The details of the quarterly calculations for the previous four quarters for the twelve hotels are provided in the table attached to this release.
COMMON STOCK DIVIDEND
On December 11, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.16 per diluted share for the Company's common stock for the fourth quarter ending December 31, 2017. The dividend, which equates to an annual rate of $0.64 per share, was paid on January 16, 2018, to shareholders of record as of December 29, 2017.
The Board also approved the Company's dividend policy for 2018. The Company expects to pay a quarterly cash dividend of $0.16 per share for 2018, or $0.64 per share on an annualized basis. The Board will continue to review its dividend policy on a quarter-to-quarter basis. The adoption of a dividend policy does not commit the Board of Directors to declare future dividends or the amount thereof.
“Hurricanes Irma and Maria as well as the wildfires in Northern California had a significant impact on the operations of four of our properties and on our overall results for the quarter,” said Richard J. Stockton, Ashford Prime's President and Chief Executive Officer. “However, on a positive note, we continue to work with our insurers on business interruption claims at the affected properties and during the quarter we were able to realize approximately $4.1 million in business interruption recoveries. We remain focused on the execution of our strategies within the luxury chain scale
AHP Reports Fourth Quarter Results
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February 28, 2018
segment and are excited about our pending acquisition of the Ritz-Carlton Sarasota. With the upbranding of the Courtyard San Francisco, the sale of the Marriott Plano and the announced listing for sale of the Tampa Renaissance, we are pleased to have made significant progress on our strategy for our non-core hotels and refining our portfolio. We will continue to look for ways to accretively grow our luxury hotel portfolio and maximize returns for our shareholders.”
INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Prime, Inc. will conduct a conference call on Thursday, March 1, 2018, at 11:00 a.m. ET. The number to call for this interactive teleconference is (719) 325-4821. A replay of the conference call will be available through Thursday, March 8, 2018, by dialing (719) 457-0820 and entering the confirmation number, 5950335.
The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2017 earnings release conference call. The live broadcast of Ashford Prime's quarterly conference call will be available online at the Company's web site, www.ahpreit.com on Thursday, March 1, 2018, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year.
Substantially all of our non-current assets consist of real estate investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel EBITDA. FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us. None of FFO, AFFO, EBITDA or Hotel EBITDA represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, and Hotel EBITDA to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.
* * * * *
Ashford Hospitality Prime is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.
Ashford has created an Ashford App for the hospitality REIT investor community. The Ashford App is available for free download at Apple’s App Store and the Google Play Store by searching “Ashford.”
Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release may include, among others, statements about the implied share price for the Company's common stock. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Prime's control.
These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; our ability to successfully complete and integrate acquisitions, and manage our planned growth, and the degree and nature of our competition. These and other risk factors are more fully discussed in Ashford Prime's filings with the Securities and Exchange Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's funds from operations minus
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February 28, 2018
a capital expense reserve of either 4% or 5% of gross revenues. Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues. Hotel EBITDA Margin is Hotel EBITDA divided by total revenues. Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.
The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
(unaudited)
December 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Investments in hotel properties, gross | $ | 1,403,110 | $ | 1,258,412 | |||
Accumulated depreciation | (257,268 | ) | (243,880 | ) | |||
Investments in hotel properties, net | 1,145,842 | 1,014,532 | |||||
Cash and cash equivalents | 137,522 | 126,790 | |||||
Restricted cash | 47,820 | 37,855 | |||||
Accounts receivable, net of allowance of $94 and $96, respectively | 14,334 | 18,194 | |||||
Insurance receivable | 8,825 | — | |||||
Inventories | 1,425 | 1,479 | |||||
Note receivable | 8,098 | 8,098 | |||||
Deferred costs, net | 656 | 1,020 | |||||
Prepaid expenses | 3,670 | 3,669 | |||||
Investment in Ashford Inc., at fair value | 18,124 | 8,407 | |||||
Derivative assets | 594 | 1,149 | |||||
Other assets | 9,426 | 2,249 | |||||
Intangible assets, net | 22,545 | 22,846 | |||||
Due from Ashford Trust OP, net | — | 488 | |||||
Due from AQUA U.S. Fund | — | 2,289 | |||||
Due from related party, net | 349 | 377 | |||||
Due from third-party hotel managers | 4,589 | 7,555 | |||||
Total assets | $ | 1,423,819 | $ | 1,256,997 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Indebtedness, net | $ | 820,959 | $ | 764,616 | |||
Accounts payable and accrued expenses | 56,803 | 44,791 | |||||
Dividends and distributions payable | 8,146 | 5,038 | |||||
Due to Ashford Inc. | 1,703 | 5,085 | |||||
Due to affiliate | — | 2,500 | |||||
Due to third-party hotel managers | 1,709 | 973 | |||||
Intangible liability, net | 3,569 | 3,625 | |||||
Other liabilities | 1,628 | 1,432 | |||||
Total liabilities | 894,517 | 828,060 | |||||
5.50% Series B cumulative convertible preferred stock, $0.01 par value, 4,965,850 and 2,890,850 shares issued and outstanding at December 31, 2017 and 2016, respectively | 106,123 | 65,960 | |||||
Redeemable noncontrolling interests in operating partnership | 46,627 | 59,544 | |||||
Equity: | |||||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 32,120,210 and 26,021,552 shares issued and outstanding at December 31, 2017 and 2016, respectively | 321 | 260 | |||||
Additional paid-in capital | 469,791 | 401,790 | |||||
Accumulated deficit | (88,807 | ) | (93,254 | ) | |||
Total stockholders' equity of the Company | 381,305 | 308,796 | |||||
Noncontrolling interest in consolidated entities | (4,753 | ) | (5,363 | ) | |||
Total equity | 376,552 | 303,433 | |||||
Total liabilities and equity | $ | 1,423,819 | $ | 1,256,997 | |||
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ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
REVENUE | |||||||||||||||
Rooms | $ | 61,803 | $ | 65,066 | $ | 286,006 | $ | 287,844 | |||||||
Food and beverage | 20,815 | 23,596 | 96,415 | 95,618 | |||||||||||
Other | 9,896 | 5,290 | 31,484 | 22,267 | |||||||||||
Total hotel revenue | 92,514 | 93,952 | 413,905 | 405,729 | |||||||||||
Other | 42 | 25 | 158 | 128 | |||||||||||
Total revenue | 92,556 | 93,977 | 414,063 | 405,857 | |||||||||||
EXPENSES | |||||||||||||||
Hotel operating expenses | |||||||||||||||
Rooms | 14,623 | 15,700 | 65,731 | 65,541 | |||||||||||
Food and beverage | 14,579 | 16,815 | 68,469 | 68,471 | |||||||||||
Other expenses | 27,388 | 26,191 | 122,322 | 113,114 | |||||||||||
Management fees | 3,431 | 3,498 | 15,074 | 15,456 | |||||||||||
Total hotel operating expenses | 60,021 | 62,204 | 271,596 | 262,582 | |||||||||||
Property taxes, insurance and other | 5,696 | 5,862 | 21,337 | 20,539 | |||||||||||
Depreciation and amortization | 12,689 | 11,555 | 52,262 | 45,897 | |||||||||||
Impairment charges | 60 | — | 1,068 | — | |||||||||||
Advisory services fee: | |||||||||||||||
Base advisory fee | 2,221 | 2,009 | 8,800 | 8,343 | |||||||||||
Reimbursable expenses | 476 | 771 | 2,017 | 2,798 | |||||||||||
Incentive fee | — | (772 | ) | — | — | ||||||||||
Non-cash stock/unit-based compensation | 615 | 594 | (1,683 | ) | 3,814 | ||||||||||
Contract modification cost | — | — | 5,000 | — | |||||||||||
Transaction costs | 40 | (44 | ) | 6,678 | 457 | ||||||||||
Corporate, general and administrative: | |||||||||||||||
Non-cash stock/unit-based compensation | 20 | — | 265 | 271 | |||||||||||
Other general and administrative | 1,119 | (2,128 | ) | 7,881 | 14,015 | ||||||||||
Total operating expenses | 82,957 | 80,051 | 375,221 | 358,716 | |||||||||||
OPERATING INCOME (LOSS) | 9,599 | 13,926 | 38,842 | 47,141 | |||||||||||
Equity in earnings (loss) of unconsolidated entity | — | — | — | (2,587 | ) | ||||||||||
Interest income | 215 | 35 | 690 | 167 | |||||||||||
Gain (loss) on sale of hotel property | 23,797 | — | 23,797 | 26,359 | |||||||||||
Other income (expense) | (85 | ) | (77 | ) | (377 | ) | (165 | ) | |||||||
Interest expense | (9,045 | ) | (9,052 | ) | (34,034 | ) | (37,712 | ) | |||||||
Amortization of loan costs | (1,149 | ) | (763 | ) | (4,903 | ) | (3,169 | ) | |||||||
Write-off of loan costs and exit fees | (1,531 | ) | — | (3,874 | ) | (2,595 | ) | ||||||||
Unrealized gain (loss) on investments | 6,314 | (879 | ) | 9,717 | (1,970 | ) | |||||||||
Unrealized gain (loss) on derivatives | (527 | ) | (1,793 | ) | (2,056 | ) | 425 | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 27,588 | 1,397 | 27,802 | 25,894 | |||||||||||
Income tax (expense) benefit | 856 | (552 | ) | 522 | (1,574 | ) | |||||||||
NET INCOME (LOSS) | 28,444 | 845 | 28,324 | 24,320 | |||||||||||
(Income) loss from consolidated entities attributable to noncontrolling interest | (528 | ) | (536 | ) | (3,264 | ) | (3,105 | ) | |||||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | (2,996 | ) | 95 | (2,038 | ) | (1,899 | ) | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | 24,920 | 404 | 23,022 | 19,316 | |||||||||||
Preferred dividends | (1,708 | ) | (994 | ) | (6,795 | ) | (3,860 | ) | |||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 23,212 | $ | (590 | ) | $ | 16,227 | $ | 15,456 | ||||||
INCOME (LOSS) PER SHARE – BASIC AND DILUTED | |||||||||||||||
Basic: | |||||||||||||||
Net income (loss) attributable to common stockholders | $ | 0.73 | $ | (0.03 | ) | $ | 0.52 | $ | 0.57 | ||||||
Weighted average common shares outstanding – basic | 31,610 | 25,532 | 30,473 | 26,648 | |||||||||||
Diluted: | |||||||||||||||
Net income (loss) attributable to common stockholders | $ | 0.65 | $ | (0.03 | ) | $ | 0.51 | $ | 0.55 | ||||||
Weighted average common shares outstanding – diluted | 38,178 | 25,532 | 34,706 | 31,195 | |||||||||||
Dividends declared per common share: | $ | 0.16 | $ | 0.12 | $ | 0.64 | $ | 0.46 | |||||||
7
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(in thousands)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | 28,444 | $ | 845 | $ | 28,324 | $ | 24,320 | |||||||
(Income) loss from consolidated entities attributable to noncontrolling interest | (528 | ) | (536 | ) | (3,264 | ) | (3,105 | ) | |||||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | (2,996 | ) | 95 | (2,038 | ) | (1,899 | ) | ||||||||
Net income (loss) attributable to the Company | 24,920 | 404 | 23,022 | 19,316 | |||||||||||
Interest income | (213 | ) | (35 | ) | (683 | ) | (167 | ) | |||||||
Interest expense and amortization of loan costs | 9,691 | 9,393 | 37,029 | 39,232 | |||||||||||
Depreciation and amortization | 11,952 | 10,838 | 49,361 | 43,054 | |||||||||||
Income tax expense (benefit) | (708 | ) | 552 | (389 | ) | 1,574 | |||||||||
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership | 2,996 | (95 | ) | 2,038 | 1,899 | ||||||||||
EBITDA available to the Company and OP unitholders | 48,638 | 21,057 | 110,378 | 104,908 | |||||||||||
Amortization of favorable (unfavorable) contract assets (liabilities) | 44 | 37 | 180 | 106 | |||||||||||
Transaction and management conversion costs | 74 | (44 | ) | 6,774 | 457 | ||||||||||
Other (income) expense | 85 | 77 | 377 | 165 | |||||||||||
(Gain) loss on sale of hotel property | (23,797 | ) | — | (23,797 | ) | (26,359 | ) | ||||||||
Write-off of loan costs and exit fees | 1,531 | — | 3,874 | 2,595 | |||||||||||
Unrealized (gain) loss on investments | (6,314 | ) | 879 | (9,717 | ) | 1,970 | |||||||||
Unrealized (gain) loss on derivatives | 524 | 1,791 | 2,053 | (427 | ) | ||||||||||
Non-cash stock/unit-based compensation | 665 | 615 | (1,327 | ) | 4,156 | ||||||||||
Legal, advisory and settlement costs | 203 | (2,862 | ) | 3,711 | 11,194 | ||||||||||
Contract modification cost | — | — | 5,000 | — | |||||||||||
Software implementation costs | — | — | 79 | — | |||||||||||
Impairment and uninsured hurricane related costs | 308 | — | 4,889 | — | |||||||||||
Company’s portion of unrealized (gain) loss of investment in securities investment fund | — | — | — | 2,587 | |||||||||||
Adjusted EBITDA available to the Company and OP unitholders | $ | 21,961 | $ | 21,550 | $ | 102,474 | $ | 101,352 | |||||||
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO
(in thousands, except per share amounts)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | 28,444 | $ | 845 | $ | 28,324 | $ | 24,320 | |||||||
(Income) loss from consolidated entities attributable to noncontrolling interest | (528 | ) | (536 | ) | (3,264 | ) | (3,105 | ) | |||||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | (2,996 | ) | 95 | (2,038 | ) | (1,899 | ) | ||||||||
Preferred dividends | (1,708 | ) | (994 | ) | (6,795 | ) | (3,860 | ) | |||||||
Net income (loss) attributable to common stockholders | 23,212 | (590 | ) | 16,227 | 15,456 | ||||||||||
Depreciation and amortization on real estate | 11,952 | 10,838 | 49,361 | 43,054 | |||||||||||
Impairment charges on real estate | 60 | — | 1,068 | — | |||||||||||
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership | 2,996 | (95 | ) | 2,038 | 1,899 | ||||||||||
(Gain) loss on sale of hotel property | (23,797 | ) | — | (23,797 | ) | (26,359 | ) | ||||||||
FFO available to common stockholders and OP unitholders | 14,423 | 10,153 | 44,897 | 34,050 | |||||||||||
Preferred dividends | 1,708 | 994 | 6,795 | 3,860 | |||||||||||
Transaction and management conversion costs | 74 | (44 | ) | 6,774 | 457 | ||||||||||
Other (income) expense | 85 | 77 | 377 | 165 | |||||||||||
Write-off of loan costs and exit fees | 1,531 | — | 3,874 | 2,595 | |||||||||||
Unrealized (gain) loss on investments | (6,314 | ) | 879 | (9,717 | ) | 1,970 | |||||||||
Unrealized (gain) loss on derivatives | 524 | 1,791 | 2,053 | (427 | ) | ||||||||||
Non-cash stock/unit-based compensation | 665 | 615 | (1,327 | ) | 4,156 | ||||||||||
Legal, advisory and settlement costs | 203 | (2,862 | ) | 3,711 | 11,194 | ||||||||||
Contract modification cost | — | — | 5,000 | — | |||||||||||
Software implementation costs | — | — | 79 | — | |||||||||||
Uninsured hurricane related costs | 248 | — | 3,821 | — | |||||||||||
Tax reform | (161 | ) | — | (161 | ) | — | |||||||||
Company’s portion of unrealized (gain) loss of investment in securities investment fund | — | — | — | 2,587 | |||||||||||
Adjusted FFO available to the Company and OP unitholders | $ | 12,986 | $ | 11,603 | $ | 66,176 | $ | 60,607 | |||||||
Adjusted FFO per diluted share available to the Company and OP unitholders | $ | 0.31 | $ | 0.34 | $ | 1.62 | $ | 1.73 | |||||||
Weighted average diluted shares | 42,406 | 33,891 | 40,957 | 34,999 | |||||||||||
8
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
SUMMARY OF INDEBTEDNESS
DECEMBER 31, 2017
(dollars in thousands)
(unaudited)
Indebtedness | Maturity | Interest Rate | Fixed-Rate Debt | Floating-Rate Debt | Total Debt | Comparable TTM Hotel EBITDA (9) | Comparable TTM EBITDA Debt Yield | ||||||||||||||||
GACC Sofitel - 1 hotel | March 2018 | LIBOR + 2.30% | $ | — | $ | 80,000 | (1) | $ | 80,000 | $ | 5,778 | 7.2 | % | ||||||||||
Credit Agricole Pier House - 1 hotel | March 2018 | LIBOR + 2.25% | — | 70,000 | (2) | 70,000 | 10,982 | 15.7 | % | ||||||||||||||
TIF Philly CY - 1 hotel | June 2018 | 12.85% | 8,098 | — | 8,098 | N/A | N/A | ||||||||||||||||
Apollo Ritz-Carlton St. Thomas - 1 hotel | December 2018 | LIBOR + 4.95% | — | 42,000 | (3) | 42,000 | 10,595 | 25.2 | % | ||||||||||||||
Morgan Stanley Pool - 4 hotels | February 2019 | LIBOR + 2.58% | — | 277,628 | (4) | 277,628 | 48,169 | 17.4 | % | ||||||||||||||
JPMorgan Park Hyatt Beaver Creek - 1 hotel | April 2019 | LIBOR + 2.75% | — | 67,500 | (5) | 67,500 | 9,387 | 13.9 | % | ||||||||||||||
Aareal - 2 hotels | November 2019 | LIBOR + 2.65% | — | 190,010 | (6) | 190,010 | 32,412 | 17.1 | % | ||||||||||||||
Secured revolving credit facility - various | November 2019 | Base Rate(8) + 1.25% to 2.50% or LIBOR + 2.25% to 3.50% | — | — | (7) | — | N/A | N/A | |||||||||||||||
BAML Hotel Yountville - 1 hotel | May 2022 | LIBOR + 2.55% | — | 51,000 | 51,000 | 5,157 | 10.1 | % | |||||||||||||||
BAML Bardessono - 1 hotel | August 2022 | LIBOR + 2.55% | — | 40,000 | 40,000 | 4,441 | 11.1 | % | |||||||||||||||
Total | $ | 8,098 | $ | 818,138 | $ | 826,236 | $ | 126,921 | 15.4 | % | |||||||||||||
Percentage | 1.0 | % | 99.0 | % | 100.0 | % | |||||||||||||||||
Weighted average interest rate | 12.85 | % | 4.24 | % | 4.32 | % | |||||||||||||||||
All indebtedness is non-recourse with the exception of the secured revolving credit facility.
(1) This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the second was exercised in March 2017.
(2) This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in March 2017.
(3) This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in December 2017.
(4) This mortgage loan has five one-year extension options subject to satisfaction of certain conditions.
(5) This mortgage loan has three one-year extension options subject to satisfaction of certain conditions.
(6) This mortgage loan has two one-year extension options subject to satisfaction of certain conditions.
(7) This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2019.
(8) Base Rate, as defined in the secured revolving credit facility agreement, is the greater of (i) the prime rate set by Bank of America, or (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%.
(9) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.
9
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED
DECEMBER 31, 2017
(dollars in thousands)
(unaudited)
2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | ||||||||||||||||||||||
Secured revolving credit facility - various | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
TIF Philly CY - 1 hotel | 8,098 | — | — | — | — | — | 8,098 | |||||||||||||||||||||
GACC Sofitel - 1 hotel | — | 80,000 | — | — | — | — | 80,000 | |||||||||||||||||||||
Credit Agricole Pier House - 1 hotel | — | — | 70,000 | — | — | — | 70,000 | |||||||||||||||||||||
Apollo Ritz-Carlton St. Thomas - 1 hotel | — | — | 42,000 | — | — | — | 42,000 | |||||||||||||||||||||
Aareal - 2 hotels | — | — | — | 177,486 | — | — | 177,486 | |||||||||||||||||||||
JPMorgan Park Hyatt Beaver Creek - 1 hotel | — | — | — | — | 67,500 | — | 67,500 | |||||||||||||||||||||
BAML Hotel Yountville - 1 hotel | — | — | — | — | 51,000 | — | 51,000 | |||||||||||||||||||||
BAML Bardessono - 1 hotel | — | — | — | — | 40,000 | — | 40,000 | |||||||||||||||||||||
Morgan Stanley Pool - 4 hotels | — | — | — | — | — | 277,628 | 277,628 | |||||||||||||||||||||
Principal due in future periods | $ | 8,098 | $ | 80,000 | $ | 112,000 | $ | 177,486 | $ | 158,500 | $ | 277,628 | $ | 813,712 | ||||||||||||||
Scheduled amortization payments remaining | 3,176 | 3,120 | 3,312 | 2,916 | — | — | 12,524 | |||||||||||||||||||||
Total indebtedness | $ | 11,274 | $ | 83,120 | $ | 115,312 | $ | 180,402 | $ | 158,500 | $ | 277,628 | $ | 826,236 | ||||||||||||||
10
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(unaudited)
ALL HOTELS: | ||||||||||||||||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||||||||||||||||
Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Comparable | |||||||||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | 2016 | % Variance | % Variance | |||||||||||||||||||||||
Rooms revenue (in thousands) | $ | 61,803 | $ | (1,858 | ) | $ | 59,945 | $ | 65,066 | $ | 2,972 | $ | 68,038 | (5.01 | )% | (11.89 | )% | |||||||||||||
RevPAR | $ | 186.65 | $ | (148.30 | ) | $ | 188.15 | $ | 191.04 | $ | (241.07 | ) | $ | 207.27 | (2.30 | )% | (9.22 | )% | ||||||||||||
Occupancy | 77.19 | % | (77.32 | )% | 77.18 | % | 80.70 | % | 84.50 | % | 80.56 | % | (4.35 | )% | (4.20 | )% | ||||||||||||||
ADR | $ | 241.81 | $ | (191.81 | ) | $ | 243.78 | $ | 236.73 | $ | (285.30 | ) | $ | 257.29 | 2.15 | % | (5.25 | )% | ||||||||||||
ALL HOTELS: | ||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||
Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Comparable | |||||||||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | 2016 | % Variance | % Variance | |||||||||||||||||||||||
Rooms revenue (in thousands) | $ | 286,006 | $ | (3,256 | ) | $ | 282,750 | $ | 287,844 | $ | 5,607 | $ | 293,451 | (0.64 | )% | (3.65 | )% | |||||||||||||
RevPAR | $ | 206.42 | $ | (34.16 | ) | $ | 219.15 | $ | 205.54 | $ | (59.31 | ) | $ | 224.71 | 0.43 | % | (2.47 | )% | ||||||||||||
Occupancy | 80.97 | % | (70.49 | )% | 81.75 | % | 82.94 | % | 78.28 | % | 83.27 | % | (2.38 | )% | (1.83 | )% | ||||||||||||||
ADR | $ | 254.92 | $ | (48.46 | ) | $ | 268.07 | $ | 247.83 | $ | (75.76 | ) | $ | 269.85 | 2.86 | % | (0.66 | )% | ||||||||||||
NOTES:
(1) | The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) | All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. |
ALL HOTELS NOT UNDER RENOVATION: | ||||||||||||||||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||||||||||||||||
Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Comparable | |||||||||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | 2016 | % Variance | % Variance | |||||||||||||||||||||||
Rooms revenue (in thousands) | $ | 33,187 | $ | (1,858 | ) | $ | 31,329 | $ | 29,164 | $ | 2,972 | $ | 32,136 | 13.79 | % | (2.51 | )% | |||||||||||||
RevPAR | $ | 179.00 | $ | (148.30 | ) | $ | 181.23 | $ | 157.72 | $ | (241.07 | ) | $ | 186.20 | 13.49 | % | (2.67 | )% | ||||||||||||
Occupancy | 75.81 | % | (77.32 | )% | 75.70 | % | 77.63 | % | 84.50 | % | 77.14 | % | (2.34 | )% | (1.87 | )% | ||||||||||||||
ADR | $ | 236.13 | $ | (191.81 | ) | $ | 239.40 | $ | 203.17 | $ | (285.30 | ) | $ | 241.39 | 16.22 | % | (0.82 | )% | ||||||||||||
ALL HOTELS NOT UNDER RENOVATION: | ||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||
Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Comparable | |||||||||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | 2016 | % Variance | % Variance | |||||||||||||||||||||||
Rooms revenue (in thousands) | $ | 146,358 | $ | (3,256 | ) | $ | 143,102 | $ | 136,871 | $ | 5,607 | $ | 142,478 | 6.93 | % | 0.44 | % | |||||||||||||
RevPAR | $ | 187.51 | $ | (34.16 | ) | $ | 208.84 | $ | 175.22 | $ | (59.31 | ) | $ | 207.51 | 7.01 | % | 0.64 | % | ||||||||||||
Occupancy | 79.54 | % | (70.49 | )% | 80.80 | % | 80.37 | % | 78.28 | % | 80.66 | % | (1.03 | )% | 0.17 | % | ||||||||||||||
ADR | $ | 235.74 | $ | (48.46 | ) | $ | 258.47 | $ | 218.01 | $ | (75.76 | ) | $ | 257.27 | 8.13 | % | 0.47 | % | ||||||||||||
NOTES:
(1) | The above comparable information assumes the seven hotel properties owned and included in the Company's operations at December 31, 2017, and not under renovation during the three months ended December 31, 2017, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) | All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. |
(3) | Excluded Hotels Under Renovation: |
Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton
11
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
HOTEL EBITDA
(dollars in thousands)
(unaudited)
ALL HOTELS: | Three Months Ended | Year Ended | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2017 | 2016 | % Variance | 2017 | 2016 | % Variance | |||||||||||||||||
Total hotel revenue | $ | 92,514 | $ | 93,952 | (1.53 | )% | $ | 413,905 | $ | 405,729 | 2.02 | % | ||||||||||
Non-comparable adjustments | (2,942 | ) | 4,948 | (4,164 | ) | 16,563 | ||||||||||||||||
Comparable total hotel revenue | $ | 89,572 | $ | 98,900 | (9.43 | )% | $ | 409,741 | $ | 422,292 | (2.97 | )% | ||||||||||
Hotel EBITDA | $ | 28,168 | $ | 26,326 | 7.00 | % | $ | 128,300 | $ | 124,239 | 3.27 | % | ||||||||||
Non-comparable adjustments | (1,076 | ) | 635 | (1,379 | ) | 2,475 | ||||||||||||||||
Comparable hotel EBITDA | $ | 27,092 | $ | 26,961 | 0.49 | % | $ | 126,921 | $ | 126,714 | 0.16 | % | ||||||||||
Hotel EBITDA margin | 30.45 | % | 28.02 | % | 2.43 | % | 31.00 | % | 30.62 | % | 0.38 | % | ||||||||||
Comparable hotel EBITDA margin | 30.25 | % | 27.26 | % | 2.99 | % | 30.98 | % | 30.01 | % | 0.97 | % | ||||||||||
Hotel EBITDA adjustments attributable to consolidated noncontrolling interests | $ | 1,620 | $ | 1,722 | (5.91 | )% | $ | 8,103 | $ | 7,586 | 6.82 | % | ||||||||||
Hotel EBITDA attributable to the Company and OP unitholders | $ | 26,548 | $ | 24,604 | 7.90 | % | $ | 120,197 | $ | 116,653 | 3.04 | % | ||||||||||
Comparable hotel EBITDA attributable to the Company and OP unitholders | $ | 25,472 | $ | 25,239 | 0.92 | % | $ | 118,818 | $ | 119,128 | (0.26 | )% | ||||||||||
NOTES:
(1) | The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) | All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. |
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3) | See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA. |
ALL HOTELS NOT UNDER RENOVATION: | Three Months Ended | Year Ended | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2017 | 2016 | % Variance | 2017 | 2016 | % Variance | |||||||||||||||||
Total hotel revenue | $ | 50,206 | $ | 44,215 | 13.55 | % | $ | 217,169 | $ | 195,160 | 11.28 | % | ||||||||||
Non-comparable adjustments | (2,942 | ) | 4,948 | (4,164 | ) | 16,563 | ||||||||||||||||
Comparable total hotel revenue | $ | 47,264 | $ | 49,163 | (3.86 | )% | $ | 213,005 | $ | 211,723 | 0.61 | % | ||||||||||
Hotel EBITDA | $ | 14,568 | $ | 14,398 | 1.18 | % | $ | 70,536 | $ | 66,585 | 5.93 | % | ||||||||||
Non-comparable adjustments | (1,076 | ) | 635 | (1,379 | ) | 2,475 | ||||||||||||||||
Comparable hotel EBITDA | $ | 13,492 | $ | 15,033 | (10.25 | )% | $ | 69,157 | $ | 69,060 | 0.14 | % | ||||||||||
Hotel EBITDA margin | 29.02 | % | 32.56 | % | (3.54 | )% | 32.48 | % | 34.12 | % | (1.64 | )% | ||||||||||
Comparable hotel EBITDA margin | 28.55 | % | 30.58 | % | (2.03 | )% | 32.47 | % | 32.62 | % | (0.15 | )% | ||||||||||
Hotel EBITDA adjustments attributable to consolidated noncontrolling interests | $ | 675 | $ | 698 | (3.24 | )% | $ | 3,685 | $ | 3,231 | 14.07 | % | ||||||||||
Hotel EBITDA attributable to the Company and OP unitholders | $ | 13,893 | $ | 13,700 | 1.41 | % | $ | 66,851 | $ | 63,354 | 5.52 | % | ||||||||||
Comparable hotel EBITDA attributable to the Company and OP unitholders | $ | 12,817 | $ | 14,335 | (10.59 | )% | $ | 65,472 | $ | 65,829 | (0.54 | )% | ||||||||||
NOTES:
(1) | The above comparable information assumes the seven hotel properties owned and included in the Company's operations at December 31, 2017, and not under renovation during the three months ended December 31, 2017, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) | All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. |
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.
(4) | Excluded Hotels Under Renovation: |
Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton
12
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY
(in thousands, except operating information)
(unaudited)
Three Months Ended December 31, | ||||||||||||||||||||||||||||||
Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Comparable | |||||||||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | 2016 | % Variance | % Variance | |||||||||||||||||||||||
CAPITAL HILTON WASHINGTON D.C. | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 9,417 | $ | — | $ | 9,417 | $ | 10,055 | $ | — | $ | 10,055 | (6.35 | )% | (6.35 | )% | ||||||||||||||
Total hotel revenue | $ | 13,535 | $ | — | $ | 13,535 | $ | 14,389 | $ | — | $ | 14,389 | (5.94 | )% | (5.94 | )% | ||||||||||||||
Hotel EBITDA | $ | 3,780 | $ | — | $ | 3,780 | $ | 4,096 | $ | — | $ | 4,096 | (7.71 | )% | (7.71 | )% | ||||||||||||||
Hotel EBITDA margin | 27.93 | % | 27.93 | % | 28.47 | % | 28.47 | % | (0.54 | )% | (0.54 | )% | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 186.11 | $ | — | $ | 186.11 | $ | 198.71 | $ | — | $ | 198.71 | (6.34 | )% | (6.34 | )% | ||||||||||||||
Occupancy | 82.00 | % | — | % | 82.00 | % | 87.00 | % | — | % | 87.00 | % | (5.75 | )% | (5.75 | )% | ||||||||||||||
ADR | $ | 226.96 | $ | — | $ | 226.96 | $ | 228.39 | $ | — | $ | 228.39 | (0.63 | )% | (0.63 | )% | ||||||||||||||
LA JOLLA HILTON TORREY PINES | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 5,155 | $ | — | $ | 5,155 | $ | 5,184 | $ | — | $ | 5,184 | (0.56 | )% | (0.56 | )% | ||||||||||||||
Total hotel revenue | $ | 9,500 | $ | — | $ | 9,500 | $ | 10,062 | $ | — | $ | 10,062 | (5.59 | )% | (5.59 | )% | ||||||||||||||
Hotel EBITDA | $ | 2,700 | $ | — | $ | 2,700 | $ | 2,790 | $ | — | $ | 2,790 | (3.23 | )% | (3.23 | )% | ||||||||||||||
Hotel EBITDA margin | 28.42 | % | 28.42 | % | 27.73 | % | 27.73 | % | 0.69 | % | 0.69 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 142.22 | $ | — | $ | 142.22 | $ | 143.01 | $ | — | $ | 143.01 | (0.55 | )% | (0.55 | )% | ||||||||||||||
Occupancy | 79.05 | % | — | % | 79.05 | % | 82.73 | % | — | % | 82.73 | % | (4.45 | )% | (4.45 | )% | ||||||||||||||
ADR | $ | 179.91 | $ | — | $ | 179.91 | $ | 172.86 | $ | — | $ | 172.86 | 4.08 | % | 4.08 | % | ||||||||||||||
CHICAGO SOFITEL MAGNIFICENT MILE | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 6,400 | $ | — | $ | 6,400 | $ | 7,032 | $ | — | $ | 7,032 | (8.99 | )% | (8.99 | )% | ||||||||||||||
Total hotel revenue | $ | 8,751 | $ | — | $ | 8,751 | $ | 9,577 | $ | — | $ | 9,577 | (8.62 | )% | (8.62 | )% | ||||||||||||||
Hotel EBITDA | $ | 1,575 | $ | — | $ | 1,575 | $ | 2,187 | $ | — | $ | 2,187 | (27.98 | )% | (27.98 | )% | ||||||||||||||
Hotel EBITDA margin | 18.00 | % | 18.00 | % | 22.84 | % | 22.84 | % | (4.84 | )% | (4.84 | )% | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 167.65 | $ | — | $ | 167.65 | $ | 184.17 | $ | — | $ | 184.17 | (8.97 | )% | (8.97 | )% | ||||||||||||||
Occupancy | 80.23 | % | — | % | 80.23 | % | 84.04 | % | — | % | 84.04 | % | (4.53 | )% | (4.53 | )% | ||||||||||||||
ADR | $ | 208.96 | $ | — | $ | 208.96 | $ | 219.15 | $ | — | $ | 219.15 | (4.65 | )% | (4.65 | )% | ||||||||||||||
BARDESSONO HOTEL AND SPA | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 2,557 | $ | — | $ | 2,557 | $ | 3,629 | $ | — | $ | 3,629 | (29.54 | )% | (29.54 | )% | ||||||||||||||
Total hotel revenue | $ | 3,442 | $ | — | $ | 3,442 | $ | 4,868 | $ | — | $ | 4,868 | (29.29 | )% | (29.29 | )% | ||||||||||||||
Hotel EBITDA | $ | 494 | $ | — | $ | 494 | $ | 1,431 | $ | — | $ | 1,431 | (65.48 | )% | (65.48 | )% | ||||||||||||||
Hotel EBITDA margin | 14.35 | % | 14.35 | % | 29.40 | % | 29.40 | % | (15.05 | )% | (15.05 | )% | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 448.27 | $ | — | $ | 448.27 | $ | 636.22 | $ | — | $ | 636.22 | (29.54 | )% | (29.54 | )% | ||||||||||||||
Occupancy | 62.83 | % | — | % | 62.83 | % | 83.59 | % | — | % | 83.59 | % | (24.84 | )% | (24.84 | )% | ||||||||||||||
ADR | $ | 713.43 | $ | — | $ | 713.43 | $ | 761.11 | $ | — | $ | 761.11 | (6.26 | )% | (6.26 | )% | ||||||||||||||
KEY WEST PIER HOUSE RESORT | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 3,949 | $ | — | $ | 3,949 | $ | 4,527 | $ | — | $ | 4,527 | (12.77 | )% | (12.77 | )% | ||||||||||||||
Total hotel revenue | $ | 6,365 | $ | — | $ | 6,365 | $ | 5,679 | $ | — | $ | 5,679 | 12.08 | % | 12.08 | % | ||||||||||||||
Hotel EBITDA | $ | 3,457 | $ | — | $ | 3,457 | $ | 2,469 | $ | — | $ | 2,469 | 40.02 | % | 40.02 | % | ||||||||||||||
Hotel EBITDA margin | 54.31 | % | 54.31 | % | 43.48 | % | 43.48 | % | 10.83 | % | 10.83 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 302.25 | $ | — | $ | 302.25 | $ | 346.56 | $ | — | $ | 346.56 | (12.79 | )% | (12.79 | )% | ||||||||||||||
Occupancy | 70.06 | % | — | % | 70.06 | % | 83.40 | % | — | % | 83.40 | % | (16.00 | )% | (16.00 | )% | ||||||||||||||
ADR | $ | 431.44 | $ | — | $ | 431.44 | $ | 415.56 | $ | — | $ | 415.56 | 3.82 | % | 3.82 | % | ||||||||||||||
13
Three Months Ended December 31, | ||||||||||||||||||||||||||||||
Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Comparable | |||||||||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | 2016 | % Variance | % Variance | |||||||||||||||||||||||
HOTEL YOUNTVILLE | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 2,085 | $ | — | $ | 2,085 | $ | — | $ | 3,382 | $ | 3,382 | — | % | (38.35 | )% | ||||||||||||||
Total hotel revenue | $ | 2,546 | $ | — | $ | 2,546 | $ | — | $ | 4,011 | $ | 4,011 | — | % | (36.52 | )% | ||||||||||||||
Hotel EBITDA | $ | 491 | $ | — | $ | 491 | $ | — | $ | 1,567 | $ | 1,567 | — | % | (68.67 | )% | ||||||||||||||
Hotel EBITDA margin | 19.29 | % | 19.29 | % | — | % | 39.07 | % | 19.29 | % | (19.78 | )% | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 283.36 | $ | — | $ | 283.36 | $ | — | $ | 459.41 | $ | 459.41 | — | % | (38.32 | )% | ||||||||||||||
Occupancy | 56.47 | % | — | % | 56.47 | % | — | % | 82.68 | % | 82.68 | % | — | % | (31.70 | )% | ||||||||||||||
ADR | $ | 501.82 | $ | — | $ | 501.82 | $ | — | $ | 555.67 | $ | 555.67 | — | % | (9.69 | )% | ||||||||||||||
PARK HYATT BEAVER CREEK | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 3,833 | $ | — | $ | 3,833 | $ | — | $ | 4,232 | $ | 4,232 | — | % | (9.43 | )% | ||||||||||||||
Total hotel revenue | $ | 8,309 | $ | — | $ | 8,309 | $ | — | $ | 8,785 | $ | 8,785 | — | % | (5.42 | )% | ||||||||||||||
Hotel EBITDA | $ | 1,181 | $ | — | $ | 1,181 | $ | — | $ | 1,766 | $ | 1,766 | — | % | (33.13 | )% | ||||||||||||||
Hotel EBITDA margin | 14.21 | % | 14.21 | % | — | % | 20.10 | % | 14.21 | % | (5.89 | )% | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 219.25 | $ | — | $ | 219.25 | $ | — | $ | 242.13 | $ | 242.13 | — | % | (9.45 | )% | ||||||||||||||
Occupancy | 46.70 | % | — | % | 46.70 | % | — | % | 50.14 | % | 50.14 | % | — | % | (6.86 | )% | ||||||||||||||
ADR | $ | 469.50 | $ | — | $ | 469.50 | $ | — | $ | 482.89 | $ | 482.89 | — | % | (2.77 | )% | ||||||||||||||
PHILADELPHIA COURTYARD DOWNTOWN | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 7,255 | $ | — | $ | 7,255 | $ | 6,250 | $ | — | $ | 6,250 | 16.08 | % | 16.08 | % | ||||||||||||||
Total hotel revenue | $ | 8,720 | $ | — | $ | 8,720 | $ | 7,580 | $ | — | $ | 7,580 | 15.04 | % | 15.04 | % | ||||||||||||||
Hotel EBITDA | $ | 3,518 | $ | — | $ | 3,518 | $ | 2,794 | $ | — | $ | 2,794 | 25.91 | % | 25.91 | % | ||||||||||||||
Hotel EBITDA margin | 40.34 | % | 40.34 | % | 36.86 | % | 36.86 | % | 3.48 | % | 3.48 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 158.04 | $ | — | $ | 158.04 | $ | 136.15 | $ | — | $ | 136.15 | 16.08 | % | 16.08 | % | ||||||||||||||
Occupancy | 81.69 | % | — | % | 81.69 | % | 79.86 | % | — | % | 79.86 | % | 2.29 | % | 2.29 | % | ||||||||||||||
ADR | $ | 193.47 | $ | — | $ | 193.47 | $ | 170.49 | $ | — | $ | 170.49 | 13.48 | % | 13.48 | % | ||||||||||||||
PLANO MARRIOTT LEGACY TOWN CENTER | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 1,858 | $ | (1,858 | ) | $ | — | $ | 4,642 | $ | (4,642 | ) | $ | — | (59.97 | )% | — | % | ||||||||||||
Total hotel revenue | $ | 2,942 | $ | (2,942 | ) | $ | — | $ | 7,848 | $ | (7,848 | ) | $ | — | (62.51 | )% | — | % | ||||||||||||
Hotel EBITDA | $ | 1,076 | $ | (1,076 | ) | $ | — | $ | 2,698 | $ | (2,698 | ) | $ | — | (60.12 | )% | — | % | ||||||||||||
Hotel EBITDA margin | 36.57 | % | — | % | 34.38 | % | — | % | 2.19 | % | — | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 148.30 | $ | (148.30 | ) | $ | — | $ | 124.89 | $ | (124.89 | ) | $ | — | 18.74 | % | — | % | ||||||||||||
Occupancy | 77.32 | % | (77.32 | )% | — | % | 67.98 | % | (67.98 | )% | — | % | 13.74 | % | — | % | ||||||||||||||
ADR | $ | 191.81 | $ | (191.81 | ) | $ | — | $ | 183.71 | $ | (183.71 | ) | $ | — | 4.41 | % | — | % | ||||||||||||
SAN FRANCISCO COURTYARD DOWNTOWN | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 7,392 | $ | — | $ | 7,392 | $ | 8,147 | $ | — | $ | 8,147 | (9.27 | )% | (9.27 | )% | ||||||||||||||
Total hotel revenue | $ | 8,529 | $ | — | $ | 8,529 | $ | 9,295 | $ | — | $ | 9,295 | (8.24 | )% | (8.24 | )% | ||||||||||||||
Hotel EBITDA | $ | 2,436 | $ | — | $ | 2,436 | $ | 1,987 | $ | — | $ | 1,987 | 22.60 | % | 22.60 | % | ||||||||||||||
Hotel EBITDA margin | 28.56 | % | 28.56 | % | 21.38 | % | 21.38 | % | 7.18 | % | 7.18 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 196.93 | $ | — | $ | 196.93 | $ | 218.63 | $ | — | $ | 218.63 | (9.93 | )% | (9.93 | )% | ||||||||||||||
Occupancy | 77.26 | % | — | % | 77.26 | % | 88.07 | % | — | % | 88.07 | % | (12.27 | )% | (12.27 | )% | ||||||||||||||
ADR | $ | 254.89 | $ | — | $ | 254.89 | $ | 248.26 | $ | — | $ | 248.26 | 2.67 | % | 2.67 | % | ||||||||||||||
14
Three Months Ended December 31, | ||||||||||||||||||||||||||||||
Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Comparable | |||||||||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | 2016 | % Variance | % Variance | |||||||||||||||||||||||
SEATTLE MARRIOTT WATERFRONT | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 6,385 | $ | — | $ | 6,385 | $ | 5,693 | $ | — | $ | 5,693 | 12.16 | % | 12.16 | % | ||||||||||||||
Total hotel revenue | $ | 8,665 | $ | — | $ | 8,665 | $ | 8,212 | $ | — | $ | 8,212 | 5.52 | % | 5.52 | % | ||||||||||||||
Hotel EBITDA | $ | 3,330 | $ | — | $ | 3,330 | $ | 3,048 | $ | — | $ | 3,048 | 9.25 | % | 9.25 | % | ||||||||||||||
Hotel EBITDA margin | 38.43 | % | 38.43 | % | 37.12 | % | 37.12 | % | 1.31 | % | 1.31 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 192.21 | $ | — | $ | 192.21 | $ | 172.85 | $ | — | $ | 172.85 | 11.20 | % | 11.20 | % | ||||||||||||||
Occupancy | 82.98 | % | — | % | 82.98 | % | 78.97 | % | — | % | 78.97 | % | 5.08 | % | 5.08 | % | ||||||||||||||
ADR | $ | 231.63 | $ | — | $ | 231.63 | $ | 218.89 | $ | — | $ | 218.89 | 5.82 | % | 5.82 | % | ||||||||||||||
ST. THOMAS RITZ-CARLTON | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 1,458 | $ | — | $ | 1,458 | $ | 6,141 | $ | — | $ | 6,141 | (76.26 | )% | (76.26 | )% | ||||||||||||||
Total hotel revenue | $ | 5,128 | $ | — | $ | 5,128 | $ | 10,797 | $ | — | $ | 10,797 | (52.51 | )% | (52.51 | )% | ||||||||||||||
Hotel EBITDA | $ | 2,352 | $ | — | $ | 2,352 | $ | 1,189 | $ | — | $ | 1,189 | 97.81 | % | 97.81 | % | ||||||||||||||
Hotel EBITDA margin | 45.87 | % | 45.87 | % | 11.01 | % | 11.01 | % | 34.86 | % | 34.86 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 229.69 | $ | — | $ | 229.69 | $ | 370.82 | $ | — | $ | 370.82 | (38.06 | )% | (38.06 | )% | ||||||||||||||
Occupancy | 75.06 | % | — | % | 75.06 | % | 69.38 | % | — | % | 69.38 | % | 8.19 | % | 8.19 | % | ||||||||||||||
ADR | $ | 306.00 | $ | — | $ | 306.00 | $ | 534.49 | $ | — | $ | 534.49 | (42.75 | )% | (42.75 | )% | ||||||||||||||
TAMPA RENAISSANCE | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 4,059 | $ | — | $ | 4,059 | $ | 3,766 | $ | — | $ | 3,766 | 7.78 | % | 7.78 | % | ||||||||||||||
Total hotel revenue | $ | 6,082 | $ | — | $ | 6,082 | $ | 5,645 | $ | — | $ | 5,645 | 7.74 | % | 7.74 | % | ||||||||||||||
Hotel EBITDA | $ | 1,778 | $ | — | $ | 1,778 | $ | 1,637 | $ | — | $ | 1,637 | 8.61 | % | 8.61 | % | ||||||||||||||
Hotel EBITDA margin | 29.23 | % | 29.23 | % | 29.00 | % | 29.00 | % | 0.23 | % | 0.23 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 150.59 | $ | — | $ | 150.59 | $ | 139.77 | $ | — | $ | 139.77 | 7.74 | % | 7.74 | % | ||||||||||||||
Occupancy | 78.80 | % | — | % | 78.80 | % | 77.38 | % | — | % | 77.38 | % | 1.84 | % | 1.84 | % | ||||||||||||||
ADR | $ | 191.10 | $ | — | $ | 191.10 | $ | 180.63 | $ | — | $ | 180.63 | 5.80 | % | 5.80 | % | ||||||||||||||
PRIME PROPERTIES TOTAL | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 61,803 | $ | (1,858 | ) | $ | 59,945 | $ | 65,066 | $ | 2,972 | $ | 68,038 | (5.01 | )% | (11.89 | )% | |||||||||||||
Total hotel revenue | $ | 92,514 | $ | (2,942 | ) | $ | 89,572 | $ | 93,952 | $ | 4,948 | $ | 98,900 | (1.53 | )% | (9.43 | )% | |||||||||||||
Hotel EBITDA | $ | 28,168 | $ | (1,076 | ) | $ | 27,092 | $ | 26,326 | $ | 635 | $ | 26,961 | 7.00 | % | 0.49 | % | |||||||||||||
Hotel EBITDA margin | 30.45 | % | 30.25 | % | 28.02 | % | 27.26 | % | 2.43 | % | 2.99 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 186.65 | $ | (148.30 | ) | $ | 188.15 | $ | 191.04 | $ | (241.07 | ) | $ | 207.27 | (2.30 | )% | (9.22 | )% | ||||||||||||
Occupancy | 77.19 | % | (77.32 | )% | 77.18 | % | 80.70 | % | 84.50 | % | 80.56 | % | (4.35 | )% | (4.20 | )% | ||||||||||||||
ADR | $ | 241.81 | $ | (191.81 | ) | $ | 243.78 | $ | 236.73 | $ | (285.30 | ) | $ | 257.29 | 2.15 | % | (5.25 | )% | ||||||||||||
NOTES:
(1) | The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) | All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. |
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3) | See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA. |
(4) | Table excludes Seattle Courtyard Downtown which was sold on July 1, 2016. |
15
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY
(in thousands, except operating information)
(unaudited)
Year Ended December 31, | ||||||||||||||||||||||||||||||
Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Comparable | |||||||||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | 2016 | % Variance | % Variance | |||||||||||||||||||||||
CAPITAL HILTON WASHINGTON D.C. | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 42,325 | $ | — | $ | 42,325 | $ | 41,137 | $ | — | $ | 41,137 | 2.89 | % | 2.89 | % | ||||||||||||||
Total hotel revenue | $ | 59,316 | $ | — | $ | 59,316 | $ | 58,612 | $ | — | $ | 58,612 | 1.20 | % | 1.20 | % | ||||||||||||||
Hotel EBITDA | $ | 17,672 | $ | — | $ | 17,672 | $ | 17,422 | $ | — | $ | 17,422 | 1.43 | % | 1.43 | % | ||||||||||||||
Hotel EBITDA margin | 29.79 | % | 29.79 | % | 29.72 | % | 29.72 | % | 0.07 | % | 0.07 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 210.83 | $ | — | $ | 210.83 | $ | 204.36 | $ | — | $ | 204.36 | 3.17 | % | 3.17 | % | ||||||||||||||
Occupancy | 88.63 | % | — | % | 88.63 | % | 88.59 | % | — | % | 88.59 | % | 0.05 | % | 0.05 | % | ||||||||||||||
ADR | $ | 237.87 | $ | — | $ | 237.87 | $ | 230.69 | $ | — | $ | 230.69 | 3.11 | % | 3.11 | % | ||||||||||||||
LA JOLLA HILTON TORREY PINES | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 24,683 | $ | — | $ | 24,683 | $ | 23,564 | $ | — | $ | 23,564 | 4.75 | % | 4.75 | % | ||||||||||||||
Total hotel revenue | $ | 43,949 | $ | — | $ | 43,949 | $ | 42,058 | $ | — | $ | 42,058 | 4.50 | % | 4.50 | % | ||||||||||||||
Hotel EBITDA | $ | 14,740 | $ | — | $ | 14,740 | $ | 12,922 | $ | — | $ | 12,922 | 14.07 | % | 14.07 | % | ||||||||||||||
Hotel EBITDA margin | 33.54 | % | 33.54 | % | 30.72 | % | 30.72 | % | 2.82 | % | 2.82 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 171.64 | $ | — | $ | 171.64 | $ | 163.41 | $ | — | $ | 163.41 | 5.04 | % | 5.04 | % | ||||||||||||||
Occupancy | 83.65 | % | — | % | 83.65 | % | 83.83 | % | — | % | 83.83 | % | (0.21 | )% | (0.21 | )% | ||||||||||||||
ADR | $ | 205.19 | $ | — | $ | 205.19 | $ | 194.93 | $ | — | $ | 194.93 | 5.26 | % | 5.26 | % | ||||||||||||||
CHICAGO SOFITEL MAGNIFICENT MILE | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 24,841 | $ | — | $ | 24,841 | $ | 27,026 | $ | — | $ | 27,026 | (8.08 | )% | (8.08 | )% | ||||||||||||||
Total hotel revenue | $ | 33,302 | $ | — | $ | 33,302 | $ | 36,879 | $ | — | $ | 36,879 | (9.70 | )% | (9.70 | )% | ||||||||||||||
Hotel EBITDA | $ | 5,778 | $ | — | $ | 5,778 | $ | 8,400 | $ | — | $ | 8,400 | (31.21 | )% | (31.21 | )% | ||||||||||||||
Hotel EBITDA margin | 17.35 | % | 17.35 | % | 22.78 | % | 22.78 | % | (5.43 | )% | (5.43 | )% | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 164.00 | $ | — | $ | 164.00 | $ | 177.93 | $ | — | $ | 177.93 | (7.83 | )% | (7.83 | )% | ||||||||||||||
Occupancy | 80.92 | % | — | % | 80.92 | % | 82.42 | % | — | % | 82.42 | % | (1.82 | )% | (1.82 | )% | ||||||||||||||
ADR | $ | 202.66 | $ | — | $ | 202.66 | $ | 215.89 | $ | — | $ | 215.89 | (6.13 | )% | (6.13 | )% | ||||||||||||||
BARDESSONO HOTEL AND SPA | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 13,414 | $ | — | $ | 13,414 | $ | 14,047 | $ | — | $ | 14,047 | (4.51 | )% | (4.51 | )% | ||||||||||||||
Total hotel revenue | $ | 17,701 | $ | — | $ | 17,701 | $ | 18,934 | $ | — | $ | 18,934 | (6.51 | )% | (6.51 | )% | ||||||||||||||
Hotel EBITDA | $ | 4,441 | $ | — | $ | 4,441 | $ | 5,029 | $ | — | $ | 5,029 | (11.69 | )% | (11.69 | )% | ||||||||||||||
Hotel EBITDA margin | 25.09 | % | 25.09 | % | 26.56 | % | 26.56 | % | (1.47 | )% | (1.47 | )% | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 592.77 | $ | — | $ | 592.77 | $ | 619.02 | $ | — | $ | 619.02 | (4.24 | )% | (4.24 | )% | ||||||||||||||
Occupancy | 76.96 | % | — | % | 76.96 | % | 84.37 | % | — | % | 84.37 | % | (8.78 | )% | (8.78 | )% | ||||||||||||||
ADR | $ | 770.19 | $ | — | $ | 770.19 | $ | 733.66 | $ | — | $ | 733.66 | 4.98 | % | 4.98 | % | ||||||||||||||
KEY WEST PIER HOUSE RESORT | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 17,202 | $ | — | $ | 17,202 | $ | 18,766 | $ | — | $ | 18,766 | (8.33 | )% | (8.33 | )% | ||||||||||||||
Total hotel revenue | $ | 23,232 | $ | — | $ | 23,232 | $ | 23,435 | $ | — | $ | 23,435 | (0.87 | )% | (0.87 | )% | ||||||||||||||
Hotel EBITDA | $ | 10,982 | $ | — | $ | 10,982 | $ | 10,229 | $ | — | $ | 10,229 | 7.36 | % | 7.36 | % | ||||||||||||||
Hotel EBITDA margin | 47.27 | % | 47.27 | % | 43.65 | % | 43.65 | % | 3.62 | % | 3.62 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 331.87 | $ | — | $ | 331.87 | $ | 361.08 | $ | — | $ | 361.08 | (8.09 | )% | (8.09 | )% | ||||||||||||||
Occupancy | 77.07 | % | — | % | 77.07 | % | 87.90 | % | — | % | 87.90 | % | (12.32 | )% | (12.32 | )% | ||||||||||||||
ADR | $ | 430.59 | $ | — | $ | 430.59 | $ | 410.79 | $ | — | $ | 410.79 | 4.82 | % | 4.82 | % | ||||||||||||||
16
Year Ended December 31, | ||||||||||||||||||||||||||||||
Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Comparable | |||||||||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | 2016 | % Variance | % Variance | |||||||||||||||||||||||
HOTEL YOUNTVILLE | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 8,140 | $ | 3,473 | $ | 11,613 | $ | — | $ | 13,698 | $ | 13,698 | — | % | (15.22 | )% | ||||||||||||||
Total hotel revenue | $ | 9,599 | $ | 4,276 | $ | 13,875 | $ | — | $ | 16,410 | $ | 16,410 | — | % | (15.45 | )% | ||||||||||||||
Hotel EBITDA | $ | 3,924 | $ | 1,233 | $ | 5,157 | $ | — | $ | 6,960 | $ | 6,960 | — | % | (25.91 | )% | ||||||||||||||
Hotel EBITDA margin | 40.88 | % | 37.17 | % | — | % | 42.41 | % | 40.88 | % | (5.24 | )% | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 433.00 | $ | 333.88 | $ | 397.69 | $ | — | $ | 467.82 | $ | 467.82 | — | % | (14.99 | )% | ||||||||||||||
Occupancy | 71.78 | % | 75.52 | % | 73.11 | % | — | % | 86.42 | % | 86.42 | % | — | % | (15.40 | )% | ||||||||||||||
ADR | $ | 603.21 | $ | 442.11 | $ | 543.95 | $ | — | $ | 541.31 | $ | 541.31 | — | % | 0.49 | % | ||||||||||||||
PARK HYATT BEAVER CREEK | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 8,753 | $ | 10,034 | $ | 18,787 | $ | — | $ | 18,777 | $ | 18,777 | — | % | 0.05 | % | ||||||||||||||
Total hotel revenue | $ | 21,969 | $ | 18,810 | $ | 40,779 | $ | — | $ | 40,149 | $ | 40,149 | — | % | 1.57 | % | ||||||||||||||
Hotel EBITDA | $ | 2,419 | $ | 6,968 | $ | 9,387 | $ | — | $ | 9,700 | $ | 9,700 | — | % | (3.23 | )% | ||||||||||||||
Hotel EBITDA margin | 11.01 | % | 23.02 | % | — | % | 24.16 | % | 11.01 | % | (1.14 | )% | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 167.51 | $ | 586.82 | $ | 270.90 | $ | — | $ | 270.02 | $ | 270.02 | — | % | 0.33 | % | ||||||||||||||
Occupancy | 53.94 | % | 83.74 | % | 61.29 | % | — | % | 62.03 | % | 62.03 | % | — | % | (1.19 | )% | ||||||||||||||
ADR | $ | 310.52 | $ | 700.74 | $ | 441.98 | $ | — | $ | 435.33 | $ | 435.33 | — | % | 1.53 | % | ||||||||||||||
PHILADELPHIA COURTYARD DOWNTOWN | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 26,337 | $ | — | $ | 26,337 | $ | 27,260 | $ | — | $ | 27,260 | (3.39 | )% | (3.39 | )% | ||||||||||||||
Total hotel revenue | $ | 31,862 | $ | — | $ | 31,862 | $ | 32,643 | $ | — | $ | 32,643 | (2.39 | )% | (2.39 | )% | ||||||||||||||
Hotel EBITDA | $ | 12,221 | $ | — | $ | 12,221 | $ | 12,557 | $ | — | $ | 12,557 | (2.68 | )% | (2.68 | )% | ||||||||||||||
Hotel EBITDA margin | 38.36 | % | 38.36 | % | 38.47 | % | 38.47 | % | (0.11 | )% | (0.11 | )% | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 144.60 | $ | — | $ | 144.60 | $ | 149.26 | $ | — | $ | 149.26 | (3.12 | )% | (3.12 | )% | ||||||||||||||
Occupancy | 81.83 | % | — | % | 81.83 | % | 81.80 | % | — | % | 81.80 | % | 0.04 | % | 0.04 | % | ||||||||||||||
ADR | $ | 176.71 | $ | — | $ | 176.71 | $ | 182.46 | $ | — | $ | 182.46 | (3.15 | )% | (3.15 | )% | ||||||||||||||
PLANO MARRIOTT LEGACY TOWN CENTER | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 16,763 | $ | (16,763 | ) | $ | — | $ | 19,899 | $ | (19,899 | ) | $ | — | (15.76 | )% | — | % | ||||||||||||
Total hotel revenue | $ | 27,250 | $ | (27,250 | ) | $ | — | $ | 32,001 | $ | (32,001 | ) | $ | — | (14.85 | )% | — | % | ||||||||||||
Hotel EBITDA | $ | 9,570 | $ | (9,570 | ) | $ | — | $ | 11,021 | $ | (11,021 | ) | $ | — | (13.17 | )% | — | % | ||||||||||||
Hotel EBITDA margin | 35.12 | % | — | % | 34.44 | % | — | % | 0.68 | % | — | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 136.49 | $ | (136.49 | ) | $ | — | $ | 134.58 | $ | (134.58 | ) | $ | — | 1.42 | % | — | % | ||||||||||||
Occupancy | 72.76 | % | (72.76 | )% | — | % | 70.57 | % | (70.57 | )% | — | % | 3.10 | % | — | % | ||||||||||||||
ADR | $ | 187.59 | $ | (187.59 | ) | $ | — | $ | 190.70 | $ | (190.70 | ) | $ | — | (1.63 | )% | — | % | ||||||||||||
SAN FRANCISCO COURTYARD DOWNTOWN | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 32,109 | $ | — | $ | 32,109 | $ | 36,249 | $ | — | $ | 36,249 | (11.42 | )% | (11.42 | )% | ||||||||||||||
Total hotel revenue | $ | 36,929 | $ | — | $ | 36,929 | $ | 41,365 | $ | — | $ | 41,365 | (10.72 | )% | (10.72 | )% | ||||||||||||||
Hotel EBITDA | $ | 12,737 | $ | — | $ | 12,737 | $ | 12,790 | $ | — | $ | 12,790 | (0.41 | )% | (0.41 | )% | ||||||||||||||
Hotel EBITDA margin | 34.49 | % | 34.49 | % | 30.92 | % | 30.92 | % | 3.57 | % | 3.57 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 216.12 | $ | — | $ | 216.12 | $ | 244.54 | $ | — | $ | 244.54 | (11.62 | )% | (11.62 | )% | ||||||||||||||
Occupancy | 79.93 | % | — | % | 79.93 | % | 89.55 | % | — | % | 89.55 | % | (10.74 | )% | (10.74 | )% | ||||||||||||||
ADR | $ | 270.38 | $ | — | $ | 270.38 | $ | 273.07 | $ | — | $ | 273.07 | (0.99 | )% | (0.99 | )% | ||||||||||||||
17
Year Ended December 31, | ||||||||||||||||||||||||||||||
Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Comparable | |||||||||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | 2016 | % Variance | % Variance | |||||||||||||||||||||||
SEATTLE MARRIOTT WATERFRONT | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 31,409 | $ | — | $ | 31,409 | $ | 28,748 | $ | — | $ | 28,748 | 9.26 | % | 9.26 | % | ||||||||||||||
Total hotel revenue | $ | 40,714 | $ | — | $ | 40,714 | $ | 37,648 | $ | — | $ | 37,648 | 8.14 | % | 8.14 | % | ||||||||||||||
Hotel EBITDA | $ | 16,209 | $ | — | $ | 16,209 | $ | 15,115 | $ | — | $ | 15,115 | 7.24 | % | 7.24 | % | ||||||||||||||
Hotel EBITDA margin | 39.81 | % | 39.81 | % | 40.15 | % | 40.15 | % | (0.34 | )% | (0.34 | )% | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 239.50 | $ | — | $ | 239.50 | $ | 219.40 | $ | — | $ | 219.40 | 9.16 | % | 9.16 | % | ||||||||||||||
Occupancy | 87.99 | % | — | % | 87.99 | % | 83.07 | % | — | % | 83.07 | % | 5.92 | % | 5.92 | % | ||||||||||||||
ADR | $ | 272.19 | $ | — | $ | 272.19 | $ | 264.10 | $ | — | $ | 264.10 | 3.06 | % | 3.06 | % | ||||||||||||||
ST. THOMAS RITZ-CARLTON | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 23,171 | $ | — | $ | 23,171 | $ | 27,795 | $ | — | $ | 27,795 | (16.64 | )% | (16.64 | )% | ||||||||||||||
Total hotel revenue | $ | 43,957 | $ | — | $ | 43,957 | $ | 50,278 | $ | — | $ | 50,278 | (12.57 | )% | (12.57 | )% | ||||||||||||||
Hotel EBITDA | $ | 10,595 | $ | — | $ | 10,595 | $ | 8,813 | $ | — | $ | 8,813 | 20.22 | % | 20.22 | % | ||||||||||||||
Hotel EBITDA margin | 24.10 | % | 24.10 | % | 17.53 | % | 17.53 | % | 6.57 | % | 6.57 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 442.26 | $ | — | $ | 442.26 | $ | 421.90 | $ | — | $ | 421.90 | 4.83 | % | 4.83 | % | ||||||||||||||
Occupancy | 79.94 | % | — | % | 79.94 | % | 78.46 | % | — | % | 78.46 | % | 1.89 | % | 1.89 | % | ||||||||||||||
ADR | $ | 553.27 | $ | — | $ | 553.27 | $ | 537.75 | $ | — | $ | 537.75 | 2.89 | % | 2.89 | % | ||||||||||||||
TAMPA RENAISSANCE | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 16,859 | $ | — | $ | 16,859 | $ | 16,384 | $ | — | $ | 16,384 | 2.90 | % | 2.90 | % | ||||||||||||||
Total hotel revenue | $ | 24,125 | $ | — | $ | 24,125 | $ | 23,881 | $ | — | $ | 23,881 | 1.02 | % | 1.02 | % | ||||||||||||||
Hotel EBITDA | $ | 7,002 | $ | — | $ | 7,002 | $ | 6,777 | $ | — | $ | 6,777 | 3.32 | % | 3.32 | % | ||||||||||||||
Hotel EBITDA margin | 29.02 | % | 29.02 | % | 28.38 | % | 28.38 | % | 0.64 | % | 0.64 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 157.65 | $ | — | $ | 157.65 | $ | 152.79 | $ | — | $ | 152.79 | 3.18 | % | 3.18 | % | ||||||||||||||
Occupancy | 81.96 | % | — | % | 81.96 | % | 81.22 | % | — | % | 81.22 | % | 0.91 | % | 0.91 | % | ||||||||||||||
ADR | $ | 192.34 | $ | — | $ | 192.34 | $ | 188.12 | $ | — | $ | 188.12 | 2.24 | % | 2.24 | % | ||||||||||||||
PRIME PROPERTIES TOTAL | ||||||||||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||||||||||
Rooms revenue | $ | 286,006 | $ | (3,256 | ) | $ | 282,750 | $ | 287,844 | $ | 5,607 | $ | 293,451 | (0.64 | )% | (3.65 | )% | |||||||||||||
Total hotel revenue | $ | 413,905 | $ | (4,164 | ) | $ | 409,741 | $ | 405,729 | $ | 16,563 | $ | 422,292 | 2.02 | % | (2.97 | )% | |||||||||||||
Hotel EBITDA | $ | 128,300 | $ | (1,379 | ) | $ | 126,921 | $ | 124,239 | $ | 2,475 | $ | 126,714 | 3.27 | % | 0.16 | % | |||||||||||||
Hotel EBITDA margin | 31.00 | % | 30.98 | % | 30.62 | % | 30.01 | % | 0.38 | % | 0.97 | % | ||||||||||||||||||
Selected Operating Information: | ||||||||||||||||||||||||||||||
RevPAR | $ | 206.42 | $ | (34.16 | ) | $ | 219.15 | $ | 205.54 | $ | (59.31 | ) | $ | 224.71 | 0.43 | % | (2.47 | )% | ||||||||||||
Occupancy | 80.97 | % | (70.49 | )% | 81.75 | % | 82.94 | % | 78.28 | % | 83.27 | % | (2.38 | )% | (1.83 | )% | ||||||||||||||
ADR | $ | 254.92 | $ | (48.46 | ) | $ | 268.07 | $ | 247.83 | $ | (75.76 | ) | $ | 269.85 | 2.86 | % | (0.66 | )% | ||||||||||||
NOTES:
(1) | The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) | All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. |
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3) | See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA. |
(4) | Table excludes Seattle Courtyard Downtown which was sold on July 1, 2016. |
18
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS
(dollars in thousands)
(unaudited)
Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | Actual | Non-comparable Adjustments | Comparable | ||||||||||||||||||||||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2017 | 2017 | 2017 | 2017 | 2017 | 2017 | 2017 | 2017 | ||||||||||||||||||||||||||||||||||||
4th Quarter | 4th Quarter | 4th Quarter | 3rd Quarter | 3rd Quarter | 3rd Quarter | 2nd Quarter | 2nd Quarter | 2nd Quarter | 1st Quarter | 1st Quarter | 1st Quarter | ||||||||||||||||||||||||||||||||||||
Total Hotel Revenue | $ | 92,514 | $ | (2,942 | ) | $ | 89,572 | $ | 108,080 | $ | (6,871 | ) | $ | 101,209 | $ | 116,055 | $ | (7,307 | ) | $ | 108,748 | $ | 97,256 | $ | 12,956 | $ | 110,212 | ||||||||||||||||||||
Hotel EBITDA | $ | 28,168 | $ | (1,076 | ) | $ | 27,092 | $ | 33,030 | $ | (2,402 | ) | $ | 30,628 | $ | 38,371 | $ | (2,474 | ) | $ | 35,897 | $ | 28,731 | $ | 4,573 | $ | 33,304 | ||||||||||||||||||||
Hotel EBITDA Margin | 30.45 | % | 30.25 | % | 30.56 | % | 30.26 | % | 33.06 | % | 33.01 | % | 29.54 | % | 30.22 | % | |||||||||||||||||||||||||||||||
EBITDA % of Total TTM | 22.0 | % | 21.4 | % | 25.7 | % | 24.1 | % | 29.9 | % | 28.3 | % | 22.4 | % | 26.2 | % | |||||||||||||||||||||||||||||||
JV Interests in EBITDA | $ | 1,620 | $ | — | $ | 1,620 | $ | 1,618 | $ | — | $ | 1,618 | $ | 2,642 | $ | — | $ | 2,642 | $ | 2,223 | $ | — | $ | 2,223 | |||||||||||||||||||||||
Actual | Non-comparable Adjustments | Comparable | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 2017 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
TTM | TTM | TTM | |||||||||||||||||||||||||||||||||||||||||||||
Total Hotel Revenue | $ | 413,905 | $ | (4,164 | ) | $ | 409,741 | ||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA | $ | 128,300 | $ | (1,379 | ) | $ | 126,921 | ||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA Margin | 31.00 | % | 30.98 | % | |||||||||||||||||||||||||||||||||||||||||||
EBITDA % of Total TTM | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||
JV Interests in EBITDA | $ | 8,103 | $ | — | $ | 8,103 | |||||||||||||||||||||||||||||||||||||||||
NOTES:
(1) | The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.
19
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
TOTAL ENTERPRISE VALUE
DECEMBER 31, 2017
(in thousands, except share price)
(unaudited)
December 31, 2017 | |||
End of quarter common shares outstanding | 32,120 | ||
Partnership units outstanding (common stock equivalents) | 4,790 | ||
Combined common shares and partnership units outstanding | 36,910 | ||
Common stock price at quarter end | $ | 9.73 | |
Market capitalization at quarter end | $ | 359,134 | |
Series B convertible preferred stock | $ | 124,146 | |
Debt on balance sheet date | $ | 826,236 | |
Joint venture partner's share of consolidated debt | $ | (47,503 | ) |
Net working capital (see below) | $ | (161,359 | ) |
Total enterprise value (TEV) | $ | 1,100,654 | |
Ashford Inc. Investment: | |||
Common stock owned at end of quarter | 195 | ||
Common stock price at quarter end | $ | 93.00 | |
Market value of Ashford Inc. investment | $ | 18,124 | |
Cash and cash equivalents | $ | 131,827 | |
Restricted cash | $ | 46,142 | |
Accounts receivable, net | $ | 13,545 | |
Insurance receivable | $ | 8,825 | |
Prepaid expenses | $ | 3,525 | |
Due from third-party hotel managers, net | $ | 3,015 | |
Market value of Ashford Inc. investment | $ | 18,124 | |
Total current assets | $ | 225,003 | |
Accounts payable, net & accrued expenses | $ | 54,143 | |
Dividends payable | $ | 8,146 | |
Due to affiliates, net | $ | 1,355 | |
Total current liabilities | $ | 63,644 | |
Net working capital* | $ | 161,359 | |
* Includes the Company's pro rata share of net working capital in joint ventures.
20
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
ANTICIPATED CAPITAL EXPENDITURES CALENDAR (a)
2017 | 2018 | |||||||||
Rooms | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||
Actual | Actual | Actual | Actual | Estimated | Estimated | Estimated | Estimated | |||
Capital Hilton Washington D.C. | 550 | x | x | x | x | |||||
Chicago Sofitel Magnificent Mile | 415 | x | x | x | x | |||||
Key West Pier House Resort | 142 | x | x | |||||||
Philadelphia Courtyard Downtown | 499 | x | x | |||||||
San Francisco Courtyard Downtown | 405 | x | x | x | x | x | x | x | x | |
St. Thomas Ritz-Carlton | 180 | x | x | x | x | x | x | |||
Total | 3 | 1 | 3 | 5 | 4 | 3 | 3 | 4 | ||
(a) | Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2017-2018 are included in this table. |
21
Exhibit 1
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)
2017 | 2017 | 2017 | 2017 | December 31, 2017 | |||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | TTM | |||||||||||||||
Net income (loss) | $ | 35,206 | $ | 10,705 | $ | 21,607 | $ | 14,951 | $ | 82,469 | |||||||||
(Income) loss from consolidated entities attributable to noncontrolling interest | (1,035 | ) | (872 | ) | (1,825 | ) | (1,444 | ) | (5,176 | ) | |||||||||
Net income (loss) attributable to the Company | 34,171 | 9,833 | 19,782 | 13,507 | 77,293 | ||||||||||||||
Non-property adjustments | (23,720 | ) | 1,008 | — | — | (22,712 | ) | ||||||||||||
Interest income | (13 | ) | (18 | ) | (10 | ) | (10 | ) | (51 | ) | |||||||||
Interest expense | 2,986 | 2,744 | 2,204 | 1,280 | 9,214 | ||||||||||||||
Amortization of loan costs | 310 | 307 | 271 | 130 | 1,018 | ||||||||||||||
Depreciation and amortization | 12,705 | 14,134 | 13,468 | 11,851 | 52,158 | ||||||||||||||
Income tax expense (benefit) | (607 | ) | (404 | ) | 366 | 133 | (512 | ) | |||||||||||
Non-hotel EBITDA ownership expense | 1,301 | 4,554 | 465 | 396 | 6,716 | ||||||||||||||
Income (loss) from consolidated entities attributable to noncontrolling interest | 1,035 | 872 | 1,825 | 1,444 | 5,176 | ||||||||||||||
Hotel EBITDA including amounts attributable to noncontrolling interest | 28,168 | 33,030 | 38,371 | 28,731 | 128,300 | ||||||||||||||
Non-comparable adjustments | (1,076 | ) | (2,402 | ) | (2,474 | ) | 4,573 | (1,379 | ) | ||||||||||
Comparable hotel EBITDA | $ | 27,092 | $ | 30,628 | $ | 35,897 | $ | 33,304 | $ | 126,921 | |||||||||
22
Exhibit 1
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)
Three Months Ended December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Hilton Washington D.C. | La Jolla Hilton Torrey Pines | Chicago Sofitel Magnificent Mile | Bardessono Hotel & Spa | Key West Pier House Resort | Hotel Yountville | Park Hyatt Beaver Creek | Philadelphia Courtyard Downtown | Plano Marriott Legacy Town Center | San Francisco Courtyard Downtown | Seattle Courtyard Downtown | Seattle Marriott Waterfront | St. Thomas Ritz-Carlton | Tampa Renaissance | Hotel Total | Corporate / Allocated | Ashford Hospitality Prime, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 2,003 | $ | 1,921 | $ | (502 | ) | $ | (745 | ) | $ | 2,416 | $ | (744 | ) | $ | (484 | ) | $ | 1,927 | $ | 24,587 | $ | 512 | $ | — | $ | 2,240 | $ | 1,226 | $ | 849 | $ | 35,206 | $ | (6,762 | ) | $ | 28,444 | ||||||||||||||||||||||||||||
(Income) loss from consolidated entities attributable to noncontrolling interest | (534 | ) | (501 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (1,035 | ) | 507 | (528 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (2,996 | ) | (2,996 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to the Company | 1,469 | 1,420 | (502 | ) | (745 | ) | 2,416 | (744 | ) | (484 | ) | 1,927 | 24,587 | 512 | — | 2,240 | 1,226 | 849 | 34,171 | (9,251 | ) | 24,920 | |||||||||||||||||||||||||||||||||||||||||||||
Non-property adjustments | — | — | — | — | 505 | — | — | — | (23,797 | ) | — | — | — | (428 | ) | — | (23,720 | ) | 23,720 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Interest income | (2 | ) | (6 | ) | — | — | — | — | — | — | — | — | — | (3 | ) | (1 | ) | (1 | ) | (13 | ) | (202 | ) | (215 | ) | ||||||||||||||||||||||||||||||||||||||||||
Interest expense | — | — | 733 | 388 | — | 499 | 697 | — | — | — | — | — | 669 | — | 2,986 | 6,059 | 9,045 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of loan cost | — | — | — | 35 | — | 34 | 131 | — | — | — | — | — | 110 | — | 310 | 839 | 1,149 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,696 | 1,468 | 1,290 | 647 | 712 | 655 | 824 | 1,540 | 135 | 1,486 | — | 1,047 | 265 | 940 | 12,705 | (16 | ) | 12,689 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | — | (593 | ) | — | — | — | — | — | 11 | — | — | — | — | (25 | ) | — | (607 | ) | (249 | ) | (856 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Non-hotel EBITDA ownership expense | 83 | (90 | ) | 54 | 169 | (176 | ) | 47 | 13 | 40 | 151 | 438 | — | 46 | 536 | (10 | ) | 1,301 | (1,301 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from consolidated entities attributable to noncontrolling interest | 534 | 501 | — | — | — | — | — | — | — | — | — | — | — | — | 1,035 | (1,035 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA including amounts attributable to noncontrolling interest | 3,780 | 2,700 | 1,575 | 494 | 3,457 | 491 | 1,181 | 3,518 | 1,076 | 2,436 | — | 3,330 | 2,352 | 1,778 | 28,168 | 18,564 | 46,732 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Less: EBITDA adjustments attributable to noncontrolling interest | (411 | ) | (174 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (585 | ) | (505 | ) | (1,090 | ) | |||||||||||||||||||||||||||||||||||||||||||||
(Income) loss from consolidated entities attributable to noncontrolling interest | (534 | ) | (501 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (1,035 | ) | 1,035 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 2,996 | 2,996 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA attributable to the Company and OP unitholders | $ | 2,835 | $ | 2,025 | $ | 1,575 | $ | 494 | $ | 3,457 | $ | 491 | $ | 1,181 | $ | 3,518 | $ | 1,076 | $ | 2,436 | $ | — | $ | 3,330 | $ | 2,352 | $ | 1,778 | $ | 26,548 | $ | 22,090 | $ | 48,638 | |||||||||||||||||||||||||||||||||
Non-comparable adjustments | — | — | — | — | — | — | — | — | (1,076 | ) | — | — | — | — | — | (1,076 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable hotel EBITDA | $ | 3,780 | $ | 2,700 | $ | 1,575 | $ | 494 | $ | 3,457 | $ | 491 | $ | 1,181 | $ | 3,518 | $ | — | $ | 2,436 | $ | — | $ | 3,330 | $ | 2,352 | $ | 1,778 | $ | 27,092 | |||||||||||||||||||||||||||||||||||||
ALL HOTELS NOT UNDER RENOVATION: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA including amounts attributable to noncontrolling interest | $ | — | $ | 2,700 | $ | — | $ | 494 | $ | — | $ | 491 | $ | 1,181 | $ | 3,518 | $ | 1,076 | $ | — | $ | — | $ | 3,330 | $ | — | $ | 1,778 | $ | 14,568 | |||||||||||||||||||||||||||||||||||||
Non-comparable adjustments | — | — | — | — | — | — | — | — | (1,076 | ) | — | — | — | — | — | (1,076 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable hotel EBITDA | $ | — | $ | 2,700 | $ | — | $ | 494 | $ | — | $ | 491 | $ | 1,181 | $ | 3,518 | $ | — | $ | — | $ | — | $ | 3,330 | $ | — | $ | 1,778 | $ | 13,492 | |||||||||||||||||||||||||||||||||||||
NOTES:
(1) | The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3) | Excluded Hotels Under Renovation: |
Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton
23
Exhibit 1
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)
Three Months Ended December 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Hilton Washington D.C. | La Jolla Hilton Torrey Pines | Chicago Sofitel Magnificent Mile | Bardessono Hotel & Spa | Key West Pier House Resort | Hotel Yountville | Park Hyatt Beaver Creek | Philadelphia Courtyard Downtown | Plano Marriott Legacy Town Center | San Francisco Courtyard Downtown | Seattle Courtyard Downtown | Seattle Marriott Waterfront | St. Thomas Ritz-Carlton | Tampa Renaissance | Hotel Total | Corporate / Allocated | Ashford Hospitality Prime, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 2,448 | $ | 1,204 | $ | 586 | $ | 663 | $ | 1,781 | $ | — | $ | — | $ | 818 | $ | 1,533 | $ | 1,160 | $ | — | $ | 2,078 | $ | (353 | ) | $ | 697 | $ | 12,615 | $ | (11,770 | ) | $ | 845 | |||||||||||||||||||||||||||||||
(Income) loss from consolidated entities attributable to noncontrolling interest | (645 | ) | (326 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (971 | ) | 435 | (536 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 95 | 95 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to the Company | 1,803 | 878 | 586 | 663 | 1,781 | — | — | 818 | 1,533 | 1,160 | — | 2,078 | (353 | ) | 697 | 11,644 | (11,240 | ) | 404 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-property adjustments | — | — | — | — | — | — | — | — | — | — | — | — | 1 | — | 1 | (1 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | — | (1 | ) | (1 | ) | (4 | ) | — | (3 | ) | (1 | ) | — | (10 | ) | (25 | ) | (35 | ) | ||||||||||||||||||||||||||||||||||||||||||
Interest expense | — | — | 586 | — | — | — | — | 496 | — | — | — | — | 590 | — | 1,672 | 7,380 | 9,052 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of loan cost | — | — | — | — | — | — | — | 8 | — | — | — | — | 127 | — | 135 | 628 | 763 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,582 | 1,512 | 951 | 610 | 687 | — | — | 1,470 | 1,174 | 825 | — | 964 | 831 | 949 | 11,555 | — | 11,555 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 29 | (32 | ) | — | — | — | — | — | (2 | ) | — | — | — | — | (16 | ) | — | (21 | ) | 573 | 552 | ||||||||||||||||||||||||||||||||||||||||||||||
Non-hotel EBITDA ownership expense | 37 | 106 | 64 | 158 | 1 | — | — | 5 | (8 | ) | 6 | — | 9 | 10 | (9 | ) | 379 | (379 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from consolidated entities attributable to noncontrolling interest | 645 | 326 | — | — | — | — | — | — | — | — | — | — | — | — | 971 | (971 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA including amounts attributable to noncontrolling interest | 4,096 | 2,790 | 2,187 | 1,431 | 2,469 | — | — | 2,794 | 2,698 | 1,987 | — | 3,048 | 1,189 | 1,637 | 26,326 | (4,035 | ) | 22,291 | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: EBITDA adjustments attributable to noncontrolling interest | (379 | ) | (372 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (751 | ) | (388 | ) | (1,139 | ) | |||||||||||||||||||||||||||||||||||||||||||||
(Income) loss from consolidated entities attributable to noncontrolling interest | (645 | ) | (326 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (971 | ) | 971 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (95 | ) | (95 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA attributable to the Company and OP unitholders | $ | 3,072 | $ | 2,092 | $ | 2,187 | $ | 1,431 | $ | 2,469 | $ | — | $ | — | $ | 2,794 | $ | 2,698 | $ | 1,987 | $ | — | $ | 3,048 | $ | 1,189 | $ | 1,637 | $ | 24,604 | $ | (3,547 | ) | $ | 21,057 | ||||||||||||||||||||||||||||||||
Non-comparable adjustments | — | — | — | — | — | 1,567 | 1,766 | — | (2,698 | ) | — | — | — | — | — | 635 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable hotel EBITDA | $ | 4,096 | $ | 2,790 | $ | 2,187 | $ | 1,431 | $ | 2,469 | $ | 1,567 | $ | 1,766 | $ | 2,794 | $ | — | $ | 1,987 | $ | — | $ | 3,048 | $ | 1,189 | $ | 1,637 | $ | 26,961 | |||||||||||||||||||||||||||||||||||||
ALL HOTELS NOT UNDER RENOVATION: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA including amounts attributable to noncontrolling interest | $ | — | $ | 2,790 | $ | — | $ | 1,431 | $ | — | $ | — | $ | — | $ | 2,794 | $ | 2,698 | $ | — | $ | — | $ | 3,048 | $ | — | $ | 1,637 | $ | 14,398 | |||||||||||||||||||||||||||||||||||||
Non-comparable adjustments | — | — | — | — | — | 1,567 | 1,766 | — | (2,698 | ) | — | — | — | — | — | 635 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable hotel EBITDA | $ | — | $ | 2,790 | $ | — | $ | 1,431 | $ | — | $ | 1,567 | $ | 1,766 | $ | 2,794 | $ | — | $ | — | $ | — | $ | 3,048 | $ | — | $ | 1,637 | $ | 15,033 | |||||||||||||||||||||||||||||||||||||
NOTES:
(1) | The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3) | Excluded Hotels Under Renovation: |
Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton
24
Exhibit 1
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)
Year Ended December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Hilton Washington D.C. | La Jolla Hilton Torrey Pines | Chicago Sofitel Magnificent Mile | Bardessono Hotel & Spa | Key West Pier House Resort | Hotel Yountville | Park Hyatt Beaver Creek | Philadelphia Courtyard Downtown | Plano Marriott Legacy Town Center | San Francisco Courtyard Downtown | Seattle Courtyard Downtown | Seattle Marriott Waterfront | St. Thomas Ritz-Carlton | Tampa Renaissance | Hotel Total | Corporate / Allocated | Ashford Hospitality Prime, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 10,489 | $ | 9,333 | $ | (1,613 | ) | $ | 640 | $ | 6,235 | $ | 803 | $ | (2,546 | ) | $ | 5,884 | $ | 29,398 | $ | 7,275 | $ | 10 | $ | 11,999 | $ | 1,329 | $ | 3,233 | $ | 82,469 | $ | (54,145 | ) | $ | 28,324 | ||||||||||||||||||||||||||||||
(Income) loss from consolidated entities attributable to noncontrolling interest | (2,754 | ) | (2,422 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (5,176 | ) | 1,912 | (3,264 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (2,038 | ) | (2,038 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to the Company | 7,735 | 6,911 | (1,613 | ) | 640 | 6,235 | 803 | (2,546 | ) | 5,884 | 29,398 | 7,275 | 10 | 11,999 | 1,329 | 3,233 | 77,293 | (54,271 | ) | 23,022 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-property adjustments | — | — | — | — | 823 | — | — | — | (23,797 | ) | — | — | — | 252 | 10 | (22,712 | ) | 22,712 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | (17 | ) | (12 | ) | — | — | — | — | — | (1 | ) | — | (4 | ) | — | (12 | ) | (4 | ) | (1 | ) | (51 | ) | (639 | ) | (690 | ) | ||||||||||||||||||||||||||||||||||||||||
Interest expense | — | — | 2,738 | 573 | — | 1,249 | 2,032 | 54 | — | — | — | — | 2,568 | — | 9,214 | 24,820 | 34,034 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of loan cost | — | — | — | 46 | — | 78 | 388 | — | — | — | — | — | 506 | — | 1,018 | 3,885 | 4,903 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 6,510 | 5,976 | 4,578 | 2,533 | 2,850 | 1,674 | 2,456 | 6,082 | 3,796 | 4,918 | — | 4,081 | 2,949 | 3,755 | 52,158 | 104 | 52,262 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | — | (532 | ) | (1 | ) | — | — | — | — | 22 | (1 | ) | — | — | — | — | — | (512 | ) | (10 | ) | (522 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Non-hotel EBITDA ownership expense | 690 | (25 | ) | 76 | 649 | 1,074 | 120 | 89 | 180 | 174 | 548 | — | 141 | 2,995 | 5 | 6,716 | (6,716 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from consolidated entities attributable to noncontrolling interest | 2,754 | 2,422 | — | — | — | — | — | — | — | — | — | — | — | — | 5,176 | (5,176 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA including amounts attributable to noncontrolling interest | 17,672 | 14,740 | 5,778 | 4,441 | 10,982 | 3,924 | 2,419 | 12,221 | 9,570 | 12,737 | 10 | 16,209 | 10,595 | 7,002 | 128,300 | (15,291 | ) | 113,009 | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: EBITDA adjustments attributable to noncontrolling interest | (1,664 | ) | (1,263 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (2,927 | ) | (1,742 | ) | (4,669 | ) | |||||||||||||||||||||||||||||||||||||||||||||
(Income) loss from consolidated entities attributable to noncontrolling interest | (2,754 | ) | (2,422 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (5,176 | ) | 5,176 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 2,038 | 2,038 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA attributable to the Company and OP unitholders | $ | 13,254 | $ | 11,055 | $ | 5,778 | $ | 4,441 | $ | 10,982 | $ | 3,924 | $ | 2,419 | $ | 12,221 | $ | 9,570 | $ | 12,737 | $ | 10 | $ | 16,209 | $ | 10,595 | $ | 7,002 | $ | 120,197 | $ | (9,819 | ) | $ | 110,378 | ||||||||||||||||||||||||||||||||
Non-comparable adjustments | — | — | — | — | — | 1,233 | 6,968 | — | (9,570 | ) | — | (10 | ) | — | — | — | (1,379 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Comparable hotel EBITDA | $ | 17,672 | $ | 14,740 | $ | 5,778 | $ | 4,441 | $ | 10,982 | $ | 5,157 | $ | 9,387 | $ | 12,221 | $ | — | $ | 12,737 | $ | — | $ | 16,209 | $ | 10,595 | $ | 7,002 | $ | 126,921 | |||||||||||||||||||||||||||||||||||||
ALL HOTELS NOT UNDER RENOVATION: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA including amounts attributable to noncontrolling interest | $ | — | $ | 14,740 | $ | — | $ | 4,441 | $ | — | $ | 3,924 | $ | 2,419 | $ | 12,221 | $ | 9,570 | $ | — | $ | 10 | $ | 16,209 | $ | — | $ | 7,002 | $ | 70,536 | |||||||||||||||||||||||||||||||||||||
Non-comparable adjustments | — | — | — | — | — | 1,233 | 6,968 | — | (9,570 | ) | — | (10 | ) | — | — | — | (1,379 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Comparable hotel EBITDA | $ | — | $ | 14,740 | $ | — | $ | 4,441 | $ | — | $ | 5,157 | $ | 9,387 | $ | 12,221 | $ | — | $ | — | $ | — | $ | 16,209 | $ | — | $ | 7,002 | $ | 69,157 | |||||||||||||||||||||||||||||||||||||
HOTEL EBITDA BY LOAN POOL
(in thousands)
(unaudited)
GACC Sofitel - 1 hotel | $ | — | $ | — | $ | 5,778 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 5,778 | |||||||||||||||||||||||||||||
Credit Agricole Pier House - 1 hotel | — | — | — | — | 10,982 | — | — | — | — | — | — | — | — | — | 10,982 | ||||||||||||||||||||||||||||||||||||||||||||
BAML Bardessono - 1 hotel | — | — | — | 4,441 | — | — | — | — | — | — | — | — | — | — | 4,441 | ||||||||||||||||||||||||||||||||||||||||||||
BAML Hotel Yountville - 1 hotel | — | — | — | — | — | 5,157 | — | — | — | — | — | — | — | — | 5,157 | ||||||||||||||||||||||||||||||||||||||||||||
Apollo Ritz-Carlton St Thomas - 1 hotel | — | — | — | — | — | — | — | — | — | — | — | — | 10,595 | — | 10,595 | ||||||||||||||||||||||||||||||||||||||||||||
Aareal - 2 hotels | 17,672 | 14,740 | — | — | — | — | — | — | — | — | — | — | — | — | 32,412 | ||||||||||||||||||||||||||||||||||||||||||||
Morgan Stanley Pool -4 hotels | — | — | — | — | — | — | — | 12,221 | — | 12,737 | — | 16,209 | — | 7,002 | 48,169 | ||||||||||||||||||||||||||||||||||||||||||||
JP Morgan Park Hyatt Beaver Creek -1 hotel | — | — | — | — | — | — | 9,387 | — | — | — | — | — | — | — | 9,387 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 17,672 | $ | 14,740 | $ | 5,778 | $ | 4,441 | $ | 10,982 | $ | 5,157 | $ | 9,387 | $ | 12,221 | $ | — | $ | 12,737 | $ | — | $ | 16,209 | $ | 10,595 | $ | 7,002 | $ | 126,921 | |||||||||||||||||||||||||||||
NOTES:
(1) | The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3) | Excluded Hotels Under Renovation: |
Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton
25
Exhibit 1
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)
Year Ended December 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Hilton Washington D.C. | La Jolla Hilton Torrey Pines | Chicago Sofitel Magnificent Mile | Bardessono Hotel & Spa | Key West Pier House Resort | Hotel Yountville | Park Hyatt Beaver Creek | Philadelphia Courtyard Downtown | Plano Marriott Legacy Town Center | San Francisco Courtyard Downtown | Seattle Courtyard Downtown | Seattle Marriott Waterfront | St. Thomas Ritz-Carlton | Tampa Renaissance | Hotel Total | Corporate / Allocated | Ashford Hospitality Prime, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 11,234 | $ | 6,883 | $ | 1,766 | $ | 1,942 | $ | 7,511 | $ | — | $ | — | $ | 4,434 | $ | 6,649 | $ | 10,091 | $ | 28,725 | $ | 11,288 | $ | 2,661 | $ | 3,019 | $ | 96,203 | $ | (71,883 | ) | $ | 24,320 | ||||||||||||||||||||||||||||||||
(Income) loss from consolidated entities attributable to noncontrolling interest | (2,940 | ) | (1,816 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (4,756 | ) | 1,651 | (3,105 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (1,899 | ) | (1,899 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to the Company | 8,294 | 5,067 | 1,766 | 1,942 | 7,511 | — | — | 4,434 | 6,649 | 10,091 | 28,725 | 11,288 | 2,661 | 3,019 | 91,447 | (72,131 | ) | 19,316 | |||||||||||||||||||||||||||||||||||||||||||||||||
Non-property adjustments | — | — | — | — | — | — | — | — | — | — | (26,359 | ) | — | 43 | — | (26,316 | ) | 26,316 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | (1 | ) | (1 | ) | — | — | — | — | — | (3 | ) | (2 | ) | (15 | ) | — | (10 | ) | (3 | ) | — | (35 | ) | (132 | ) | (167 | ) | ||||||||||||||||||||||||||||||||||||||||
Interest expense | — | — | 2,261 | — | — | — | — | 1,977 | — | — | — | — | 2,319 | — | 6,557 | 31,155 | 37,712 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of loan cost | — | — | 119 | — | — | — | — | 31 | — | — | — | — | 504 | — | 654 | 2,515 | 3,169 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 6,269 | 6,008 | 4,152 | 2,398 | 2,703 | — | — | 5,853 | 4,324 | 2,676 | 834 | 3,803 | 3,147 | 3,730 | 45,897 | — | 45,897 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 29 | (121 | ) | — | — | — | — | — | 18 | — | — | — | — | (16 | ) | — | (90 | ) | 1,664 | 1,574 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-hotel EBITDA ownership expense | (109 | ) | 153 | 102 | 689 | 15 | — | — | 247 | 50 | 38 | (36 | ) | 34 | 158 | 28 | 1,369 | (1,369 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from consolidated entities attributable to noncontrolling interest | 2,940 | 1,816 | — | — | — | — | — | — | — | — | — | — | — | — | 4,756 | (4,756 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA including amounts attributable to noncontrolling interest | 17,422 | 12,922 | 8,400 | 5,029 | 10,229 | — | — | 12,557 | 11,021 | 12,790 | 3,164 | 15,115 | 8,813 | 6,777 | 124,239 | (16,738 | ) | 107,501 | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: EBITDA adjustments attributable to noncontrolling interest | (1,415 | ) | (1,415 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (2,830 | ) | (1,662 | ) | (4,492 | ) | |||||||||||||||||||||||||||||||||||||||||||||
(Income) loss from consolidated entities attributable to noncontrolling interest | (2,940 | ) | (1,816 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (4,756 | ) | 4,756 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,899 | 1,899 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA attributable to the Company and OP unitholders | $ | 13,067 | $ | 9,691 | $ | 8,400 | $ | 5,029 | $ | 10,229 | $ | — | $ | — | $ | 12,557 | $ | 11,021 | $ | 12,790 | $ | 3,164 | $ | 15,115 | $ | 8,813 | $ | 6,777 | $ | 116,653 | $ | (11,745 | ) | $ | 104,908 | ||||||||||||||||||||||||||||||||
Non-comparable adjustments | — | — | — | — | — | 6,960 | 9,700 | — | (11,021 | ) | — | (3,164 | ) | — | — | — | 2,475 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable hotel EBITDA | $ | 17,422 | $ | 12,922 | $ | 8,400 | $ | 5,029 | $ | 10,229 | $ | 6,960 | $ | 9,700 | $ | 12,557 | $ | — | $ | 12,790 | $ | — | $ | 15,115 | $ | 8,813 | $ | 6,777 | $ | 126,714 | |||||||||||||||||||||||||||||||||||||
ALL HOTELS NOT UNDER RENOVATION: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hotel EBITDA including amounts attributable to noncontrolling interest | $ | — | $ | 12,922 | $ | — | $ | 5,029 | $ | — | $ | — | $ | — | $ | 12,557 | $ | 11,021 | $ | — | $ | 3,164 | $ | 15,115 | $ | — | $ | 6,777 | $ | 66,585 | |||||||||||||||||||||||||||||||||||||
Non-comparable adjustments | — | — | — | — | — | 6,960 | 9,700 | — | (11,021 | ) | — | (3,164 | ) | — | — | — | 2,475 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable hotel EBITDA | $ | — | $ | 12,922 | $ | — | $ | 5,029 | $ | — | $ | 6,960 | $ | 9,700 | $ | 12,557 | $ | — | $ | — | $ | — | $ | 15,115 | $ | — | $ | 6,777 | $ | 69,060 | |||||||||||||||||||||||||||||||||||||
NOTES:
(1) | The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period. |
(2) All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3) | Excluded Hotels Under Renovation: |
Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton
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