Attached files
| file | filename |
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| 8-K - 8-K - RLJ Lodging Trust | rljq22018earningsrelease8-k.htm |
Press Release
RLJ Lodging Trust Reports Second Quarter 2018 Results
- Sold Embassy Suites Napa Valley for $102 million (post quarter-end); valued at nearly 15x trailing EBITDA
- RevPAR growth of 1.3%
- Pro forma Hotel EBITDA Margin of 35.0%
Bethesda, MD, August 7, 2018 – RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three and six months ended June 30, 2018.
Highlights
• | Sold Embassy Suites Napa Valley for $102 million, representing a valuation of nearly 15x trailing EBITDA, subsequent to quarter-end |
• | Pro forma RevPAR increased 1.3%, Pro forma ADR increased 1.0%, and Pro forma Occupancy increased 0.3% |
• | Pro forma Hotel EBITDA Margin of 35.0% |
• | Net income increased 51.6% to $64.4 million |
• | Adjusted EBITDA increased 54.1% to $159.8 million |
• | Adjusted FFO per diluted common share and unit increased 2.8% to $0.73 |
“We continued the successful execution of our asset disposition strategy with our recent sale of the Embassy Suites Napa Valley,” commented Ross H. Bierkan, President and Chief Executive Officer. “With an unwavering focus, we have made meaningful progress in accomplishing our strategic objectives. Over the past year, we have generated $400 million from assets sales at an average EBITDA multiple of approximately 15x. With a healthy disposition pipeline, we are on pace to meet our incremental asset sales objective for 2018. Our leverage continues to be at our target and we have nearly realized our G&A synergies. With solid momentum and a talented team in place, I am confident that RLJ is well positioned to unlock meaningful value for shareholders in the years to come.”
Financial and Operating Results
Performance metrics such as Occupancy, Average Daily Rate (“ADR”), Revenue Per Available Room (“RevPAR”), Hotel EBITDA, and Hotel EBITDA Margin are Pro forma. The prefix “Pro forma” as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. Pro forma RevPAR and Pro forma Hotel EBITDA Margin are reported on a comparable basis and therefore exclude any hotels sold during the period and non-comparable hotels that were not open for operation or were closed for renovation for comparable periods. Explanations of EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included within this release.
Net income for the three months ended June 30, 2018, increased $21.9 million to $64.4 million, representing a 51.6% increase over the comparable period in 2017. For the six months ended June 30, 2018, net income increased $24.0 million to $88.3 million, representing a 37.4% increase over the comparable period in 2017.
Pro forma RevPAR for the three months ended June 30, 2018, increased 1.3% over the comparable period in 2017, driven by a Pro forma ADR increase of 1.0%, and by a Pro forma Occupancy increase of
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0.3%. Excluding Louisville, Austin, and Denver, which experienced softness in the quarter, Pro forma RevPAR growth was 2.6%. For the six months ended June 30, 2018, Pro forma RevPAR increased 0.4% over the comparable period in 2017, driven by a Pro forma ADR increase of 0.1% and by a Pro forma Occupancy increase of 0.2%.
Pro forma Hotel EBITDA Margin for the three months ended June 30, 2018, was 35.0%, a decrease of 79 basis points over the comparable period in 2017. Increases in real estate taxes and insurance expense impacted Pro forma Hotel EBITDA Margin by approximately 45 basis points. For the six months ended June 30, 2018, Pro forma Hotel EBITDA Margin decreased 122 basis points over the comparable period in 2017 to 32.3%.
Pro forma Hotel EBITDA for the three months ended June 30, 2018, was $169.3 million, largely flat with the comparable period in 2017. For the three months ended June 30, 2017, Pro forma Hotel EBITDA includes results from prior ownership of $60.0 million from the hotel properties acquired pursuant to the FelCor merger.
For the six months ended June 30, 2018, Pro forma Hotel EBITDA decreased $9.3 million to $293.3 million, representing a 3.1% decrease over the comparable period in 2017. For the six months ended June 30, 2018, Pro forma Hotel EBITDA includes results from prior ownership of $106.7 million from the hotel properties acquired pursuant to the FelCor merger.
Adjusted FFO for the three months ended June 30, 2018, increased $39.2 million to $127.9 million, representing a 44.1% increase over the comparable period in 2017. For the six months ended June 30, 2018, Adjusted FFO increased $56.2 million to $209.4 million, representing a 36.7% increase over the comparable period in 2017.
Adjusted FFO per diluted common share and unit for the three months ended June 30, 2018, increased $0.02 to $0.73, representing a 2.8% increase over the comparable period in 2017. For the six months ended June 30, 2018, Adjusted FFO per diluted common share and unit decreased $0.03 to $1.20, representing a 2.4% decrease over the comparable period in 2017.
Adjusted EBITDA for the three months ended June 30, 2018, increased $56.1 million to $159.8 million, representing a 54.1% increase over the comparable period in 2017. For the six months ended June 30, 2018, Adjusted EBITDA increased $93.0 million to $275.6 million, representing a 50.9% increase over the comparable period in 2017.
Non-recurring items and other adjustments which were noteworthy for the three months ended June 30, 2018, include $3.5 million of other expenses outside of the normal course of operations, including certain costs associated with shareholder activism. For the six months ended June 30, 2018, non-recurring items and other adjustments which were noteworthy also include a gain on extinguishment of indebtedness of $7.7 million.
Non-recurring items are included in net income but are excluded from Adjusted EBITDA and Adjusted FFO, as applicable. A complete listing of non-recurring items is provided in the Non-GAAP reconciliation tables located in this press release.
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Net cash flow from operating activities totaled $195.8 million for the six months ended June 30, 2018, representing a 38.3% increase over the comparable period in 2017.
Balance Sheet
As of June 30, 2018, the Company had $382.5 million of unrestricted cash on its balance sheet, $350.0 million available on its revolving credit facility, and $2.5 billion of debt outstanding.
The Company’s ratio of net debt to Adjusted EBITDA for the trailing twelve-month period ended June 30, 2018, was 3.9x.
Dividends
The Company’s Board of Trustees declared a cash dividend of $0.33 per common share of beneficial interest in the second quarter. The dividend was paid on July 13, 2018, to shareholders of record as of June 29, 2018.
The Company's Board of Trustees declared a preferred dividend of $0.4875 on its Series A cumulative convertible preferred shares. The dividend was paid on July 31, 2018, to shareholders of record as of June 29, 2018.
Subsequent Events
On July 13, 2018, the Company sold the Embassy Suites Napa Valley for $102.0 million and paid off $25.9 million in outstanding first mortgage associated with the asset.
On July 20, 2018, the Company paid down its revolving credit facility by $75.0 million. Following the payment, the remaining outstanding balance on the revolving credit facility was $175.0 million.
2018 Outlook
The Company’s outlook includes all hotels owned as of August 7, 2018. Potential future acquisitions or dispositions could result in a material change to the Company’s outlook. The 2018 outlook is also based on a number of other assumptions, many of which are outside the Company’s control and all of which are subject to change.
The Company's 2018 outlook revisions only reflect the sale of the Embassy Suites Napa Valley. No other adjustments have been made.
For the full year 2018, the Company anticipates:
Current Outlook | Prior Outlook | |
Pro forma RevPAR growth | -0.5% to +1.0% | -0.5% to +1.0% |
Pro forma Hotel EBITDA Margin | 31.25% to 32.5% | 31.25% to 32.5% |
Pro forma Consolidated Hotel EBITDA | $555M to $586M | $562M to $593M |
Adjusted EBITDA | $519M to $550M | $524M to $555M |
Corporate Cash General & Administrative | $37M to $39M | $37M to $39M |
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Earnings Call
The Company will conduct its quarterly analyst and investor conference call on August 8, 2018, at 9:00 a.m. (Eastern Time). The conference call can be accessed by dialing (877) 407-3982 or (201)
493-6780 for international participants and requesting RLJ Lodging Trust’s second quarter earnings conference call. Additionally, a live webcast of the conference call will be available through the Company’s website at http://www.rljlodgingtrust.com. A replay of the conference call webcast will be archived and available online through the Investor Relations page of the Company’s website.
About Us
RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio consists of 154 hotels with approximately 30,000 rooms located in 26 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.
Forward Looking Statements
The following information contains certain statements, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the use of the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “will continue,” “intend,” “should,” or similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs, and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and the Company’s actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: the current global economic uncertainty, increased direct competition, changes in government regulations or accounting rules, changes in local, national, and global real estate conditions, declines in the lodging industry, seasonality of the lodging industry, risks related to natural disasters, such as earthquakes and hurricanes, hostilities, including future terrorist attacks or fear of hostilities that affect travel, the Company’s ability to obtain lines of credit or permanent financing on satisfactory terms, changes in interest rates, access to capital through offerings of the Company’s common and preferred shares of beneficial interest, or debt, the Company’s ability to identify suitable acquisitions, the Company’s ability to close on identified acquisitions and integrate those businesses, and inaccuracies of the Company’s accounting estimates. Given these uncertainties, undue reliance should not be placed on such statements. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. The Company cautions investors not to place undue reliance on these forward-looking statements and urges investors to carefully review the disclosures the Company makes concerning risks and uncertainties in the sections entitled “Risk Factors,” “Forward-Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report, as well as risks, uncertainties, and other factors discussed in other documents filed by the Company with the Securities and Exchange Commission.
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Additional Contacts:
Leslie D. Hale, Chief Operating Officer – (301) 280-7774
For additional information or to receive press releases via email, please visit our website:
http://www.rljlodgingtrust.com
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RLJ Lodging Trust
Non-GAAP and Accounting Commentary
Non-Generally Accepted Accounting Principles (“GAAP”) Financial Measures
The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) EBITDAre, (5) Adjusted EBITDA, (6) Hotel EBITDA, and (7) Hotel EBITDA Margin. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as a measure of its operating performance. FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, and Hotel EBITDA Margin as calculated by the Company, may not be comparable to other companies that do not define such terms exactly as the Company.
FFO
The Company calculates Funds from Operations (“FFO”) in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding gains or losses from sales of real estate, impairment, the cumulative effect of changes in accounting principles, plus depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures. 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 real estate industry investors consider FFO to be helpful in evaluating a real estate company’s operations. The Company believes that the presentation of FFO provides useful information to investors regarding the Company’s operating performance and can facilitate comparisons of operating performance between periods and between real estate investment trusts (“REITs”), even though FFO does not represent an amount that accrues directly to common shareholders.
The Company’s calculation of FFO may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. Additionally, FFO may not be helpful when comparing the Company to non-REITs. The Company presents FFO attributable to common shareholders, which includes unitholders of limited partnership interest (“OP units”) in RLJ Lodging Trust, L.P., the Company’s operating partnership, because the OP units are redeemable for common shares of the Company. The Company believes it is meaningful for the investor to understand FFO attributable to all common shares and OP units.
EBITDA and EBITDAre
Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA") is defined as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sales of assets; and (3) depreciation and amortization. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions.
In addition to EBITDA, the Company presents EBITDAre in accordance with NAREIT guidelines, which defines EBITDAre as net income or loss (calculated in accordance with GAAP) excluding interest expense, income tax expense, depreciation and amortization expense, gains or losses from sales
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of real estate, impairment, and adjustments for unconsolidated partnerships and joint ventures. The Company believes that the presentation of EBITDAre provides useful information to investors regarding the Company’s operating performance and can facilitate comparisons of operating performance between periods and between REITs.
Adjustments to FFO and EBITDAre
The Company adjusts FFO and EBITDAre for certain items that the Company considers outside the normal course of operations or extraordinary. The Company believes that Adjusted FFO and Adjusted EBITDA provide useful supplemental information to investors regarding its ongoing operating performance that, when considered with net income or loss, FFO, EBITDA, and EBITDAre, are beneficial to an investor’s understanding of its operating performance. The Company adjusts FFO and EBITDAre for the following items:
• | Transaction Costs: The Company excludes transaction costs expensed during the period. |
• | Non-Cash Expenses: The Company excludes the effect of certain non-cash items such as the amortization of share-based compensation and non-cash income taxes. |
• | Other Non-Operational Expenses: The Company excludes the effect of certain non-operational expenses representing income and expenses outside of the normal course of operations, including debt modification costs, hurricane-related costs that are not reimbursed by insurance, executive transition costs, and activist shareholder costs. |
The Company previously presented Adjusted EBITDA in a similar manner, with the exception of the adjustments for noncontrolling interests in consolidated joint ventures. The rationale for including 100% of Adjusted EBITDA for consolidated joint ventures with noncontrolling interests is that the full amount of any debt of these consolidated joint ventures is reported in our consolidated balance sheet and metrics using debt to EBITDA provide a better understanding of the Company’s leverage. This is also consistent with NAREIT’s definition of EBITDAre.
Hotel EBITDA and Hotel EBITDA Margin
With respect to Consolidated Hotel EBITDA, the Company believes that excluding the effect of corporate-level expenses and certain non-cash items provides a more complete understanding of the operating results over which individual hotels and operators have direct control. The Company believes property-level results provide investors with supplemental information about the ongoing operational performance of the Company’s hotels and the effectiveness of its third-party management companies.
Pro forma Consolidated Hotel EBITDA includes prior ownership information provided by the sellers of the hotels for periods prior to our acquisition of the hotels, which has not been audited and excludes results from sold hotels as applicable. Pro forma Hotel EBITDA and Pro forma Hotel EBITDA Margin exclude the results of any non-comparable hotels that were under renovation or not open for the entirety of the comparable periods. The following is a summary of pro forma hotel adjustments:
Pro forma adjustments: Acquired hotels
For the six months ended June 30, 2018, no hotels were acquired.
The Company acquired the following hotels in August 2017 in conjunction with the FelCor merger:
• | DoubleTree Suites by Hilton Austin |
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• | DoubleTree Suites by Hilton Orlando - Lake Buena Vista |
• | Embassy Suites Atlanta - Buckhead |
• | Embassy Suites Birmingham |
• | Embassy Suites Boston - Marlborough |
• | Embassy Suites Dallas - Love Field |
• | Embassy Suites Deerfield Beach - Resort & Spa |
• | Embassy Suites Fort Lauderdale 17th Street |
• | Embassy Suites Los Angeles - International Airport/South |
• | Embassy Suites Mandalay Beach - Hotel & Resort |
• | Embassy Suites Miami - International Airport |
• | Embassy Suites Milpitas Silicon Valley |
• | Embassy Suites Minneapolis - Airport |
• | Embassy Suites Myrtle Beach - Oceanfront Resort |
• | Embassy Suites Napa Valley |
• | Embassy Suites Orlando - International Drive South/Convention Center |
• | Embassy Suites Phoenix - Biltmore |
• | Embassy Suites San Francisco Airport - South San Francisco |
• | Embassy Suites San Francisco Airport - Waterfront |
• | Embassy Suites Secaucus - Meadowlands |
• | Hilton Myrtle Beach Resort |
• | Holiday Inn San Francisco - Fisherman's Wharf |
• | San Francisco Marriott Union Square |
• | DoubleTree by Hilton Burlington Vermont, formerly the Sheraton Burlington Hotel & Conference Center |
• | Sheraton Philadelphia Society Hill Hotel |
• | The Fairmont Copley Plaza |
• | The Knickerbocker, New York |
• | The Mills House Wyndham Grand Hotel, Charleston |
• | The Vinoy Renaissance St. Petersburg Resort & Golf Club |
• | Wyndham Boston Beacon Hill |
• | Wyndham Houston - Medical Center Hotel & Suites |
• | Wyndham New Orleans - French Quarter |
• | Wyndham Philadelphia Historic District |
• | Wyndham Pittsburgh University Center |
• | Wyndham San Diego Bayside |
• | Wyndham Santa Monica At the Pier |
Pro forma adjustments: Sold hotels
For the six months ended June 30, 2018, the following hotels were sold:
• | Embassy Suites Boston - Marlborough was sold in February 2018 |
• | Sheraton Philadelphia Society Hill Hotel was sold in March 2018 |
For the year ended December 31, 2017, the following hotel was sold:
•The Fairmont Copley Plaza was sold in December 2017
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RLJ Lodging Trust
Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(unaudited)
June 30, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Investment in hotel properties, net | $ | 5,534,069 | $ | 5,791,925 | |||
Investment in unconsolidated joint ventures | 23,488 | 23,885 | |||||
Cash and cash equivalents | 382,455 | 586,470 | |||||
Restricted cash reserves | 78,222 | 72,606 | |||||
Hotel and other receivables, net of allowance of $649 and $510, respectively | 73,617 | 60,011 | |||||
Deferred income tax asset, net | 55,632 | 56,761 | |||||
Intangible assets, net | 125,453 | 133,211 | |||||
Prepaid expense and other assets | 74,870 | 69,936 | |||||
Assets of hotel properties held for sale, net | 99,415 | — | |||||
Total assets | $ | 6,447,221 | $ | 6,794,805 | |||
Liabilities and Equity | |||||||
Debt, net | $ | 2,569,066 | $ | 2,880,488 | |||
Accounts payable and other liabilities | 208,336 | 225,664 | |||||
Deferred income tax liability | 5,547 | 5,547 | |||||
Advance deposits and deferred revenue | 31,725 | 30,463 | |||||
Accrued interest | 8,126 | 17,081 | |||||
Distributions payable | 65,852 | 65,284 | |||||
Total liabilities | 2,888,652 | 3,224,527 | |||||
Equity | |||||||
Shareholders’ equity: | |||||||
Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized | |||||||
Series A Cumulative Convertible Preferred Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475 shares issued and outstanding, liquidation value of $328,266, at June 30, 2018 and December 31, 2017 | 366,936 | 366,936 | |||||
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 175,278,298 and 174,869,046 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 1,753 | 1,749 | |||||
Additional paid-in capital | 3,213,049 | 3,208,002 | |||||
Accumulated other comprehensive income | 33,639 | 8,846 | |||||
Distributions in excess of net earnings | (123,808 | ) | (82,566 | ) | |||
Total shareholders’ equity | 3,491,569 | 3,502,967 | |||||
Noncontrolling interest: | |||||||
Noncontrolling interest in consolidated joint ventures | 11,595 | 11,700 | |||||
Noncontrolling interest in the Operating Partnership | 10,975 | 11,181 | |||||
Total noncontrolling interest | 22,570 | 22,881 | |||||
Preferred equity in a consolidated joint venture, liquidation value of $45,487 and $45,430 at June 30, 2018 and December 31, 2017, respectively | 44,430 | 44,430 | |||||
Total equity | 3,558,569 | 3,570,278 | |||||
Total liabilities and equity | $ | 6,447,221 | $ | 6,794,805 | |||
Note:
The corresponding notes to the consolidated financial statements can be found in the Company’s Quarterly Report on Form 10-Q.
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RLJ Lodging Trust
Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(unaudited)
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | |||||||||||||||
Operating revenue | |||||||||||||||
Room revenue | $ | 403,232 | $ | 253,739 | $ | 760,877 | $ | 478,704 | |||||||
Food and beverage revenue | 58,444 | 29,121 | 110,639 | 55,812 | |||||||||||
Other revenue | 23,015 | 9,424 | 42,769 | 18,000 | |||||||||||
Total revenue | $ | 484,691 | $ | 292,284 | $ | 914,285 | $ | 552,516 | |||||||
Expense | |||||||||||||||
Operating expense | |||||||||||||||
Room expense | $ | 94,459 | $ | 55,221 | $ | 184,428 | $ | 107,143 | |||||||
Food and beverage expense | 42,406 | 20,101 | 83,669 | 39,398 | |||||||||||
Management and franchise fee expense | 37,252 | 29,626 | 72,928 | 56,539 | |||||||||||
Other operating expense | 108,556 | 59,058 | 214,679 | 116,880 | |||||||||||
Total property operating expense | 282,673 | 164,006 | 555,704 | 319,960 | |||||||||||
Depreciation and amortization | 61,648 | 38,240 | 123,056 | 76,905 | |||||||||||
Property tax, insurance and other | 35,537 | 18,152 | 70,036 | 37,310 | |||||||||||
General and administrative | 15,523 | 10,129 | 26,436 | 19,252 | |||||||||||
Transaction costs | 247 | 3,691 | 1,920 | 4,316 | |||||||||||
Total operating expense | 395,628 | 234,218 | 777,152 | 457,743 | |||||||||||
Operating income | 89,063 | 58,066 | 137,133 | 94,773 | |||||||||||
Other income | 565 | 73 | 1,657 | 214 | |||||||||||
Interest income | 960 | 664 | 2,190 | 1,149 | |||||||||||
Interest expense | (25,443 | ) | (14,548 | ) | (54,144 | ) | (28,877 | ) | |||||||
Gain on extinguishment of indebtedness | 7 | — | 7,666 | — | |||||||||||
Income before equity in income from unconsolidated joint ventures | 65,152 | 44,255 | 94,502 | 67,259 | |||||||||||
Equity in income from unconsolidated joint ventures | 799 | — | 418 | — | |||||||||||
Income before income tax expense | 65,951 | 44,255 | 94,920 | 67,259 | |||||||||||
Income tax expense | (2,354 | ) | (1,821 | ) | (3,696 | ) | (2,987 | ) | |||||||
Income from operations | 63,597 | 42,434 | 91,224 | 64,272 | |||||||||||
Gain (loss) on sale of hotel properties | 796 | 30 | (2,938 | ) | (30 | ) | |||||||||
Net income | 64,393 | 42,464 | 88,286 | 64,242 | |||||||||||
Net (income) loss attributable to noncontrolling interests: | |||||||||||||||
Noncontrolling interest in consolidated joint ventures | (55 | ) | (29 | ) | 179 | 37 | |||||||||
Noncontrolling interest in the Operating Partnership | (254 | ) | (189 | ) | (327 | ) | (275 | ) | |||||||
Preferred distributions - consolidated joint venture | (370 | ) | — | (735 | ) | — | |||||||||
Net income attributable to RLJ | 63,714 | 42,246 | 87,403 | 64,004 | |||||||||||
Preferred dividends | (6,279 | ) | — | (12,557 | ) | — | |||||||||
Net income attributable to common shareholders | $ | 57,435 | $ | 42,246 | $ | 74,846 | $ | 64,004 | |||||||
Basic per common share data: | |||||||||||||||
Net income per share attributable to common shareholders | $ | 0.33 | $ | 0.34 | $ | 0.43 | $ | 0.51 | |||||||
Weighted-average number of common shares | 174,238,854 | 123,785,735 | 174,216,387 | 123,760,096 | |||||||||||
Diluted per common share data: | |||||||||||||||
Net income per share attributable to common shareholders | $ | 0.33 | $ | 0.34 | $ | 0.43 | $ | 0.51 | |||||||
Weighted-average number of common shares | 174,364,547 | 123,871,762 | 174,316,348 | 123,856,388 | |||||||||||
Note:
The Statements of Comprehensive Income and corresponding notes to the consolidated financial statements can be found in the Company’s Quarterly
Report on Form 10-Q.
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RLJ Lodging Trust
Reconciliation of Non-GAAP Measures
(Amounts in thousands, except per share data)
(unaudited)
FFO Attributable to Common Shareholders and Unitholders
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 64,393 | $ | 42,464 | $ | 88,286 | $ | 64,242 | |||||||
Preferred dividends | (6,279 | ) | — | (12,557 | ) | — | |||||||||
Preferred distributions - consolidated joint venture | (370 | ) | — | (735 | ) | — | |||||||||
Depreciation and amortization | 61,648 | 38,240 | 123,056 | 76,905 | |||||||||||
(Gain) loss on sale of hotel properties | (796 | ) | (30 | ) | 2,938 | 30 | |||||||||
Noncontrolling interest in consolidated joint ventures | (55 | ) | (29 | ) | 179 | 37 | |||||||||
Adjustments related to consolidated joint ventures (1) | (80 | ) | (30 | ) | (155 | ) | (62 | ) | |||||||
Adjustments related to unconsolidated joint ventures (2) | 669 | — | 1,337 | — | |||||||||||
FFO | 119,130 | 80,615 | 202,349 | 141,152 | |||||||||||
Transaction costs | 247 | 3,691 | 1,920 | 4,316 | |||||||||||
Gain on extinguishment of indebtedness | (7 | ) | — | (7,666 | ) | — | |||||||||
Amortization of share-based compensation | 3,172 | 3,134 | 5,686 | 5,469 | |||||||||||
Non-cash income tax expense | 1,826 | 1,323 | 2,929 | 2,261 | |||||||||||
Other expenses (3) | 3,547 | — | 4,168 | — | |||||||||||
Adjusted FFO | $ | 127,915 | $ | 88,763 | $ | 209,386 | $ | 153,198 | |||||||
Adjusted FFO per common share and unit-basic | $ | 0.73 | $ | 0.71 | $ | 1.20 | $ | 1.23 | |||||||
Adjusted FFO per common share and unit-diluted | $ | 0.73 | $ | 0.71 | $ | 1.20 | $ | 1.23 | |||||||
Basic weighted-average common shares and units outstanding (4) | 175,013 | 124,344 | 174,990 | 124,319 | |||||||||||
Diluted weighted-average common shares and units outstanding (4) | 175,138 | 124,431 | 175,090 | 124,415 | |||||||||||
Note:
(1) Includes depreciation and amortization expense allocated to the noncontrolling interest in the consolidated joint ventures.
(2) Includes our ownership interest of the depreciation and amortization expense of the unconsolidated joint ventures.
(3) Represents income and expenses outside of the normal course of operations, including debt modification costs, hurricane-related costs that are not reimbursed by insurance, executive transition costs, and activist shareholder costs.
(4) Includes 0.8 million and 0.6 million weighted-average operating partnership units for the three and six month periods ended June 30, 2018 and 2017, respectively.
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RLJ Lodging Trust
Reconciliation of Non-GAAP Measures
(Amounts in thousands)
(unaudited)
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 64,393 | $ | 42,464 | $ | 88,286 | $ | 64,242 | |||||||
Depreciation and amortization | 61,648 | 38,240 | 123,056 | 76,905 | |||||||||||
Interest expense, net (1) | 24,483 | 14,399 | 51,954 | 28,716 | |||||||||||
Income tax expense | 2,354 | 1,821 | 3,696 | 2,987 | |||||||||||
Adjustments related to unconsolidated joint ventures (2) | 796 | — | 1,591 | — | |||||||||||
EBITDA | 153,674 | 96,924 | 268,583 | 172,850 | |||||||||||
(Gain) loss on sale of hotel properties | (796 | ) | (30 | ) | 2,938 | 30 | |||||||||
EBITDAre | 152,878 | 96,894 | 271,521 | 172,880 | |||||||||||
Transaction costs | 247 | 3,691 | 1,920 | 4,316 | |||||||||||
Gain on extinguishment of indebtedness | (7 | ) | — | (7,666 | ) | — | |||||||||
Amortization of share-based compensation | 3,172 | 3,134 | 5,686 | 5,469 | |||||||||||
Other expenses (3) | 3,547 | — | 4,168 | — | |||||||||||
Adjusted EBITDA | 159,837 | 103,719 | 275,629 | 182,665 | |||||||||||
General and administrative (4) | 12,351 | 6,995 | 20,750 | 13,783 | |||||||||||
Other corporate adjustments | (3,144 | ) | (356 | ) | (2,762 | ) | (356 | ) | |||||||
Consolidated Hotel EBITDA | 169,044 | 110,358 | 293,617 | 196,092 | |||||||||||
Pro forma adjustments - loss (income) from sold hotels | 233 | (76 | ) | (346 | ) | (249 | ) | ||||||||
Pro forma adjustments - income from prior ownership of acquired hotels (5) | — | 59,966 | — | 106,724 | |||||||||||
Pro forma Consolidated Hotel EBITDA | 169,277 | 170,248 | 293,271 | 302,567 | |||||||||||
Pro forma adjustments - income from non-comparable hotels | — | — | — | — | |||||||||||
Pro forma Hotel EBITDA | $ | 169,277 | $ | 170,248 | $ | 293,271 | $ | 302,567 | |||||||
Note:
(1) Excludes amounts attributable to investment in loans of $0.5 million and $1.0 million for the three and six months ended June 30, 2017, respectively.
(2) Includes our ownership interest of the interest, depreciation, and amortization expense of the unconsolidated joint ventures.
(3) Represents income and expenses outside of the normal course of operations, including debt modification costs, hurricane-related costs that are not reimbursed by insurance, executive transition costs, and activist shareholder costs.
(4) General and administrative expenses exclude amortization of share-based compensation reflected in Adjusted EBITDA.
(5) The information above includes results for periods prior to the Company's ownership. The information has not been audited and is presented only for comparison purposes.
12
RLJ Lodging Trust
Reconciliation of Non-GAAP Measures
(Amounts in thousands)
(unaudited)
Pro forma Hotel EBITDA Margin
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Total revenue | $ | 484,691 | $ | 292,284 | $ | 914,285 | $ | 552,516 | |||||||
Pro forma adjustments - net revenue from sold hotels | 142 | (2 | ) | (5,755 | ) | (12 | ) | ||||||||
Pro forma adjustments - revenue from prior ownership of acquired hotels (1) | — | 183,436 | — | 349,215 | |||||||||||
Other corporate adjustments / non-hotel revenue | (1,212 | ) | (15 | ) | (1,626 | ) | (29 | ) | |||||||
Pro forma Hotel Revenue | $ | 483,621 | $ | 475,703 | $ | 906,904 | $ | 901,690 | |||||||
Pro forma Hotel EBITDA | $ | 169,277 | $ | 170,248 | $ | 293,271 | $ | 302,567 | |||||||
Pro forma Hotel EBITDA Margin | 35.0 | % | 35.8 | % | 32.3 | % | 33.6 | % | |||||||
Note:
(1) The information above includes results for periods prior to the Company's ownership. The information has not been audited and is presented only
for comparison purposes.
13
RLJ Lodging Trust
Consolidated Debt Summary
(Amounts in thousands)
(unaudited)
Loan | Base Term (Years) | Maturity (incl. extensions) | Floating / Fixed | Interest Rate (1) | Balance as of June 30, 2018 (2) | ||||
Secured Debt | |||||||||
Scotiabank - 1 hotel | 4 | Nov 2018 | Floating | 4.76 | % | $ | 85,000 | ||
Wells Fargo - 4 hotels | 3 | Oct 2021 | Floating (3) | 4.07 | % | 150,000 | |||
Wells Fargo - 4 hotels | 2 | Mar 2022 | Floating (3) | 4.04 | % | 141,750 | |||
Wells Fargo - 1 hotel | 10 | Jun 2022 | Fixed | 5.25 | % | 31,735 | |||
PNC - 3 hotels | 10 | Oct 2022 | Fixed | 4.95 | % | 83,522 | |||
Wells Fargo - 1 hotel | 10 | Oct 2022 | Fixed | 4.95 | % | 33,137 | |||
Prudential - 1 hotel | 10 | Oct 2022 | Fixed | 4.94 | % | 29,273 | |||
PNC - 5 hotels | 5 | Mar 2023 | Floating | 4.19 | % | 85,000 | |||
Weighted-Average / Secured Total | 4.43 | % | $ | 639,417 | |||||
Unsecured Debt | |||||||||
Revolver (4) | 4 | Apr 2021 | Floating | 3.59 | % | $ | 250,000 | ||
$400 Million Term Loan Maturing 2021 | 5 | Apr 2021 | Floating (3)(5) | 3.06 | % | 400,000 | |||
$150 Million Term Loan Maturing 2022 | 7 | Jan 2022 | Floating (3) | 3.08 | % | 150,000 | |||
$400 Million Term Loan Maturing 2023 | 5 | Jan 2023 | Floating (3)(5) | 3.17 | % | 400,000 | |||
$225 Million Term Loan Maturing 2023 | 5 | Jan 2023 | Floating (3) | 3.44 | % | 225,000 | |||
Senior Unsecured Notes | 10 | Jun 2025 | Fixed | 6.00 | % | 475,000 | |||
Weighted-Average / Unsecured Total | 3.93 | % | $ | 1,900,000 | |||||
Weighted-Average / Gross Debt | 4.06 | % | $ | 2,539,417 | |||||
Note:
(1) Interest rates as of June 30, 2018.
(2) Excludes the impact of fair value adjustments and deferred financing costs.
(3) The floating interest rate is hedged with an interest rate swap.
(4) As of June 30, 2018, there was $350.0 million of borrowing capacity on the revolver, which is charged an unused commitment fee of 0.30%
annually.
(5) Reflects interest rate swap on $350.0 million.
14
RLJ Lodging Trust
Pro forma Operating Statistics - Top 60 Assets
(unaudited)
Property | City/State | # of Rooms | Pro forma Consolidated Hotel EBITDA |
The Knickerbocker New York | New York, NY | 330 | $12,487 |
Marriott Louisville Downtown | Louisville, KY | 616 | 11,623 |
Wyndham San Diego Bayside | San Diego, CA | 600 | 9,954 |
The Vinoy Renaissance St. Petersburg Resort & Golf Club | St Petersburg, FL | 362 | 9,428 |
San Francisco Marriott Union Square | San Francisco, CA | 401 | 9,354 |
The Mills House Wyndham Grand Hotel | Charleston, SC | 216 | 9,172 |
Wyndham Boston Beacon Hill | Boston, MA | 304 | 9,093 |
DoubleTree Metropolitan Hotel New York City | New York, NY | 764 | 9,068 |
Embassy Suites San Francisco Airport - Waterfront | Burlingame, CA | 340 | 8,591 |
Embassy Suites Tampa Downtown Convention Center | Tampa, FL | 360 | 8,471 |
Embassy Suites Los Angeles - International Airport South | El Segundo, CA | 349 | 8,443 |
Courtyard Austin Downtown Convention Center | Austin, TX | 270 | 8,427 |
Embassy Suites Mandalay Beach - Hotel & Resort | Oxnard, CA | 250 | 8,188 |
Courtyard Portland City Center | Portland, OR | 256 | 8,182 |
Embassy Suites Fort Lauderdale 17th Street | Fort Lauderdale, FL | 361 | 8,055 |
Wyndham New Orleans - French Quarter | New Orleans, LA | 374 | 7,856 |
Hilton Myrtle Beach Resort | Myrtle Beach, SC | 385 | 7,758 |
DoubleTree Grand Key Resort | Key West, FL | 216 | 7,506 |
Embassy Suites Myrtle Beach - Oceanfront Resort | Myrtle Beach, SC | 255 | 7,088 |
Residence Inn Palo Alto Los Altos | Los Altos, CA | 156 | 6,873 |
Courtyard San Francisco | San Francisco, CA | 166 | 6,829 |
Wyndham Santa Monica At the Pier | Santa Monica, CA | 132 | 6,722 |
Wyndham Philadelphia Historic District | Philadelphia, PA | 364 | 6,669 |
Courtyard Chicago Downtown Magnificent Mile | Chicago, IL | 306 | 6,431 |
Embassy Suites Deerfield Beach - Resort & Spa | Deerfield Beach, FL | 244 | 6,411 |
Embassy Suites San Francisco Airport - South San Francisco | South San Francisco, CA | 312 | 6,242 |
Hilton Garden Inn San Francisco Oakland Bay Brg | Emeryville, CA | 278 | 6,213 |
Hyatt House Emeryville San Francisco Bay Area | Emeryville, CA | 234 | 6,183 |
Renaissance Pittsburgh Hotel | Pittsburgh, PA | 300 | 6,143 |
Fairfield Inn & Suites Washington DC Downtown | Washington, DC | 198 | 6,058 |
Hyatt House Santa Clara | Santa Clara, CA | 150 | 5,995 |
Wyndham Houston - Medical Center Hotel & Suites | Houston, TX | 287 | 5,877 |
Hyatt House San Jose Silicon Valley | San Jose, CA | 164 | 5,861 |
Hilton Cabana Miami Beach | Miami Beach, FL | 231 | 5,729 |
Marriott Denver South @ Park Meadows | Lone Tree, CO | 279 | 5,470 |
Courtyard Waikiki Beach | Honolulu, HI | 403 | 5,460 |
Embassy Suites Boston Waltham | Waltham, MA | 275 | 5,375 |
Embassy Suites Atlanta - Buckhead | Atlanta, GA | 316 | 5,355 |
Renaissance Fort Lauderdale Plantation Hotel | Plantation, FL | 250 | 5,316 |
Residence Inn Bethesda Downtown | Bethesda, MD | 188 | 5,249 |
DoubleTree Suites by Hilton Austin | Austin, TX | 188 | 5,235 |
Embassy Suites Irvine Orange County | Irvine, CA | 293 | 5,030 |
Embassy Suites Los Angeles Downey | Downey, CA | 220 | 5,019 |
Hyatt House San Diego Sorrento Mesa | San Diego, CA | 193 | 4,833 |
Residence Inn Austin Downtown Convention Center | Austin, TX | 179 | 4,776 |
Embassy Suites Milpitas Silicon Valley | Milpitas, CA | 266 | 4,746 |
Hilton Garden Inn Los Angeles Hollywood | Los Angeles, CA | 160 | 4,716 |
Courtyard Charleston Historic District | Charleston, SC | 176 | 4,680 |
Marriott Denver Airport @ Gateway Park | Aurora, CO | 238 | 4,645 |
Homewood Suites Washington DC Downtown | Washington, DC | 175 | 4,636 |
Renaissance Boulder Flatiron Hotel | Broomfield, CO | 232 | 4,635 |
Embassy Suites Orlando - International Drive South/Convention Center | Orlando, FL | 244 | 4,606 |
Hyatt Place Washington DC Downtown K Street | Washington, DC | 164 | 4,293 |
Embassy Suites Dallas - Love Field | Dallas, TX | 248 | 4,288 |
Embassy Suites Minneapolis - Airport | Bloomington, MN | 310 | 4,190 |
Hyatt Place Fremont Silicon Valley | Fremont, CA | 151 | 4,057 |
Hilton Garden Inn New Orleans Convention Center | New Orleans, LA | 286 | 4,019 |
Residence Inn National Harbor Washington DC | Oxon Hill, MD | 162 | 3,881 |
Wyndham Pittsburgh University Center | Pittsburgh, PA | 251 | 3,765 |
Embassy Suites Phoenix - Biltmore | Phoenix, AZ | 232 | 3,684 |
Top 60 Assets | 16,610 | 384,939 | |
Other (94 Assets) | 13,395 | 195,357 | |
Total Portfolio | 30,005 | $580,296 | |
Note: For the trailing twelve months ended June 30, 2018. Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an unconsolidated hotel, and the Embassy Suites Napa Valley, which was sold subsequent to June 30, 2018. Amounts in thousands, except rooms. The information above includes results for periods prior to the Company's ownership. The information has not been audited and is presented only for comparison purposes.
15
RLJ Lodging Trust
Pro forma Operating Statistics
For the three months ended June 30, 2018 and June 30, 2017
Top Markets | # of Hotels | Occupancy | ADR | RevPAR | |||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | |||||||||||||||||||
Northern California | 14 | 85.0 | % | 87.8 | % | (3.2 | )% | $ | 228.31 | $ | 214.95 | 6.2 | % | $ | 193.96 | $ | 188.71 | 2.8 | % | ||||||||
South Florida | 13 | 86.5 | % | 83.1 | % | 4.1 | % | 158.72 | 154.55 | 2.7 | % | 137.23 | 128.42 | 6.9 | % | ||||||||||||
Southern California | 9 | 86.5 | % | 86.4 | % | 0.1 | % | 182.54 | 181.26 | 0.7 | % | 157.88 | 156.68 | 0.8 | % | ||||||||||||
Austin | 14 | 80.3 | % | 79.3 | % | 1.2 | % | 162.73 | 171.56 | (5.1 | )% | 130.63 | 136.05 | (4.0 | )% | ||||||||||||
Houston | 11 | 74.3 | % | 69.3 | % | 7.2 | % | 143.43 | 138.68 | 3.4 | % | 106.58 | 96.09 | 10.9 | % | ||||||||||||
Washington, DC | 8 | 87.7 | % | 85.3 | % | 2.7 | % | 208.11 | 208.74 | (0.3 | )% | 182.42 | 178.15 | 2.4 | % | ||||||||||||
Denver | 13 | 78.5 | % | 80.5 | % | (2.5 | )% | 143.95 | 145.28 | (0.9 | )% | 112.97 | 116.96 | (3.4 | )% | ||||||||||||
Chicago | 14 | 78.4 | % | 76.0 | % | 3.2 | % | 152.40 | 154.88 | (1.6 | )% | 119.49 | 117.64 | 1.6 | % | ||||||||||||
Louisville | 5 | 67.1 | % | 75.4 | % | (11.0 | )% | 181.37 | 187.27 | (3.2 | )% | 121.72 | 141.28 | (13.8 | )% | ||||||||||||
New York City | 5 | 91.7 | % | 91.1 | % | 0.7 | % | 250.44 | 243.91 | 2.7 | % | 229.71 | 222.21 | 3.4 | % | ||||||||||||
Other | 49 | 80.9 | % | 80.6 | % | 0.4 | % | 167.60 | 166.52 | 0.6 | % | 135.60 | 134.18 | 1.1 | % | ||||||||||||
Total | 155 | 81.9 | % | 81.7 | % | 0.3 | % | $ | 179.06 | $ | 177.28 | 1.0 | % | $ | 146.72 | $ | 144.78 | 1.3 | % | ||||||||
Service Level | # of Hotels | Occupancy | ADR | RevPAR | |||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | |||||||||||||||||||
Focused-Service | 102 | 82.0 | % | 80.3 | % | 2.1 | % | $ | 165.60 | $ | 165.65 | 0.0 | % | $ | 135.71 | $ | 132.95 | 2.1 | % | ||||||||
Compact Full-Service | 48 | 83.5 | % | 83.9 | % | (0.5 | )% | 190.82 | 187.15 | 2.0 | % | 159.37 | 157.05 | 1.5 | % | ||||||||||||
Full-Service | 5 | 70.7 | % | 76.5 | % | (7.6 | )% | 200.08 | 194.06 | 3.1 | % | 141.37 | 148.43 | (4.8 | )% | ||||||||||||
Total | 155 | 81.9 | % | 81.7 | % | 0.3 | % | $ | 179.06 | $ | 177.28 | 1.0 | % | $ | 146.72 | $ | 144.78 | 1.3 | % | ||||||||
Chain Scale | # of Hotels | Occupancy | ADR | RevPAR | |||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | |||||||||||||||||||
Upper Upscale | 39 | 80.3 | % | 81.5 | % | (1.4 | )% | $ | 186.14 | $ | 182.82 | 1.8 | % | $ | 149.53 | $ | 148.96 | 0.4 | % | ||||||||
Upscale | 98 | 82.9 | % | 81.9 | % | 1.2 | % | 173.11 | 172.33 | 0.5 | % | 143.49 | 141.10 | 1.7 | % | ||||||||||||
Upper Midscale | 16 | 82.4 | % | 80.6 | % | 2.2 | % | 167.95 | 166.70 | 0.7 | % | 138.39 | 134.36 | 3.0 | % | ||||||||||||
Other | 2 | 81.8 | % | 83.9 | % | (2.6 | )% | 300.88 | 286.11 | 5.2 | % | 245.99 | 240.08 | 2.5 | % | ||||||||||||
Total | 155 | 81.9 | % | 81.7 | % | 0.3 | % | $ | 179.06 | $ | 177.28 | 1.0 | % | $ | 146.72 | $ | 144.78 | 1.3 | % | ||||||||
Flags | # of Hotels | Occupancy | ADR | RevPAR | |||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | |||||||||||||||||||
Residence Inn | 29 | 83.2 | % | 80.8 | % | 2.9 | % | $ | 155.78 | $ | 158.25 | (1.6 | )% | $ | 129.54 | $ | 127.82 | 1.3 | % | ||||||||
Courtyard | 24 | 81.8 | % | 81.9 | % | (0.1 | )% | 175.78 | 173.95 | 1.1 | % | 143.77 | 142.38 | 1.0 | % | ||||||||||||
Embassy Suites | 23 | 82.7 | % | 83.2 | % | (0.7 | )% | 178.26 | 174.67 | 2.1 | % | 147.35 | 145.39 | 1.3 | % | ||||||||||||
Hyatt House | 11 | 85.9 | % | 83.4 | % | 3.0 | % | 178.41 | 174.83 | 2.0 | % | 153.33 | 145.88 | 5.1 | % | ||||||||||||
Hilton Garden Inn | 8 | 81.0 | % | 77.7 | % | 4.3 | % | 164.74 | 162.27 | 1.5 | % | 133.52 | 126.04 | 5.9 | % | ||||||||||||
SpringHill Suites | 8 | 74.1 | % | 73.4 | % | 1.0 | % | 132.45 | 135.15 | (2.0 | )% | 98.17 | 99.21 | (1.0 | )% | ||||||||||||
Wyndham | 8 | 83.5 | % | 82.5 | % | 1.1 | % | 185.71 | 185.67 | 0.0 | % | 154.99 | 153.21 | 1.2 | % | ||||||||||||
Fairfield Inn & Suites | 7 | 82.7 | % | 79.7 | % | 3.9 | % | 166.33 | 175.83 | (5.4 | )% | 137.64 | 140.08 | (1.7 | )% | ||||||||||||
Hampton Inn | 7 | 81.4 | % | 76.5 | % | 6.3 | % | 142.36 | 143.02 | (0.5 | )% | 115.84 | 109.43 | 5.9 | % | ||||||||||||
Marriott | 6 | 73.4 | % | 78.1 | % | (6.1 | )% | 202.65 | 202.27 | 0.2 | % | 148.76 | 158.05 | (5.9 | )% | ||||||||||||
DoubleTree | 6 | 87.5 | % | 88.8 | % | (1.5 | )% | 202.55 | 198.61 | 2.0 | % | 177.17 | 176.40 | 0.4 | % | ||||||||||||
Renaissance | 4 | 80.5 | % | 80.5 | % | 0.0 | % | 188.56 | 182.97 | 3.1 | % | 151.82 | 147.37 | 3.0 | % | ||||||||||||
Hyatt Place | 3 | 84.7 | % | 86.3 | % | (1.9 | )% | 203.11 | 194.99 | 4.2 | % | 171.95 | 168.35 | 2.1 | % | ||||||||||||
Homewood Suites | 2 | 84.9 | % | 85.4 | % | (0.6 | )% | 203.33 | 201.82 | 0.7 | % | 172.55 | 172.29 | 0.2 | % | ||||||||||||
Hilton | 2 | 76.4 | % | 76.8 | % | (0.5 | )% | 178.08 | 176.08 | 1.1 | % | 136.05 | 135.21 | 0.6 | % | ||||||||||||
Hyatt | 2 | 80.6 | % | 78.8 | % | 2.4 | % | 196.85 | 185.80 | 5.9 | % | 158.71 | 146.32 | 8.5 | % | ||||||||||||
Other | 5 | 81.9 | % | 84.5 | % | (3.1 | )% | 234.14 | 218.76 | 7.0 | % | 191.67 | 184.81 | 3.7 | % | ||||||||||||
Total | 155 | 81.9 | % | 81.7 | % | 0.3 | % | $ | 179.06 | $ | 177.28 | 1.0 | % | $ | 146.72 | $ | 144.78 | 1.3 | % | ||||||||
Note: Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an
unconsolidated hotel. The information above includes results for periods prior to the Company's ownership. The information has not been audited and is presented
only for comparison purposes.
16
RLJ Lodging Trust
Pro forma Operating Statistics
For the six months ended June 30, 2018 and June 30, 2017
Top Markets | # of Hotels | Occupancy | ADR | RevPAR | |||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | |||||||||||||||||||
Northern California | 14 | 81.9 | % | 84.3 | % | (2.9 | )% | $ | 222.21 | $ | 217.34 | 2.2 | % | $ | 181.97 | $ | 183.28 | (0.7 | )% | ||||||||
South Florida | 13 | 89.0 | % | 85.6 | % | 4.1 | % | 192.63 | 186.44 | 3.3 | % | 171.52 | 159.54 | 7.5 | % | ||||||||||||
Southern California | 9 | 85.2 | % | 84.9 | % | 0.4 | % | 177.39 | 177.19 | 0.1 | % | 151.22 | 150.45 | 0.5 | % | ||||||||||||
Austin | 14 | 78.5 | % | 79.4 | % | (1.2 | )% | 170.26 | 177.31 | (4.0 | )% | 133.59 | 140.82 | (5.1 | )% | ||||||||||||
Houston | 11 | 73.8 | % | 70.8 | % | 4.1 | % | 144.15 | 151.90 | (5.1 | )% | 106.32 | 107.61 | (1.2 | )% | ||||||||||||
Washington, DC | 8 | 81.2 | % | 77.8 | % | 4.3 | % | 191.91 | 201.07 | (4.6 | )% | 155.78 | 156.42 | (0.4 | )% | ||||||||||||
Denver | 13 | 73.1 | % | 74.9 | % | (2.5 | )% | 137.17 | 137.02 | 0.1 | % | 100.26 | 102.68 | (2.4 | )% | ||||||||||||
Chicago | 14 | 69.0 | % | 65.1 | % | 6.0 | % | 139.31 | 140.80 | (1.1 | )% | 96.12 | 91.61 | 4.9 | % | ||||||||||||
Louisville | 5 | 62.9 | % | 68.1 | % | (7.6 | )% | 162.38 | 170.25 | (4.6 | )% | 102.15 | 115.89 | (11.9 | )% | ||||||||||||
New York City | 5 | 87.7 | % | 85.5 | % | 2.5 | % | 214.50 | 210.65 | 1.8 | % | 188.04 | 180.12 | 4.4 | % | ||||||||||||
Other | 49 | 76.9 | % | 77.4 | % | (0.7 | )% | 165.25 | 163.90 | 0.8 | % | 127.06 | 126.87 | 0.1 | % | ||||||||||||
Total | 155 | 78.6 | % | 78.4 | % | 0.2 | % | $ | 176.12 | $ | 175.90 | 0.1 | % | $ | 138.41 | $ | 137.91 | 0.4 | % | ||||||||
Service Level | # of Hotels | Occupancy | ADR | RevPAR | |||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | |||||||||||||||||||
Focused-Service | 102 | 78.0 | % | 76.8 | % | 1.6 | % | $ | 161.48 | $ | 163.64 | (1.3 | )% | $ | 126.01 | $ | 125.71 | 0.2 | % | ||||||||
Compact Full-Service | 48 | 81.1 | % | 81.4 | % | (0.3 | )% | 190.12 | 187.65 | 1.3 | % | 154.23 | 152.74 | 1.0 | % | ||||||||||||
Full-Service | 5 | 64.9 | % | 69.4 | % | (6.4 | )% | 186.99 | 182.10 | 2.7 | % | 121.37 | 126.34 | (3.9 | )% | ||||||||||||
Total | 155 | 78.6 | % | 78.4 | % | 0.2 | % | $ | 176.12 | $ | 175.90 | 0.1 | % | $ | 138.41 | $ | 137.91 | 0.4 | % | ||||||||
Chain Scale | # of Hotels | Occupancy | ADR | RevPAR | |||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | |||||||||||||||||||
Upper Upscale | 39 | 78.1 | % | 78.8 | % | (0.9 | )% | $ | 190.14 | $ | 187.53 | 1.4 | % | $ | 148.46 | $ | 147.70 | 0.5 | % | ||||||||
Upscale | 98 | 79.1 | % | 78.5 | % | 0.7 | % | 166.79 | 167.70 | (0.5 | )% | 131.93 | 131.67 | 0.2 | % | ||||||||||||
Upper Midscale | 16 | 77.7 | % | 77.0 | % | 0.9 | % | 163.75 | 166.21 | (1.5 | )% | 127.26 | 127.99 | (0.6 | )% | ||||||||||||
Other | 2 | 76.1 | % | 73.7 | % | 3.3 | % | 268.06 | 263.76 | 1.6 | % | 204.04 | 194.36 | 5.0 | % | ||||||||||||
Total | 155 | 78.6 | % | 78.4 | % | 0.2 | % | $ | 176.12 | $ | 175.90 | 0.1 | % | $ | 138.41 | $ | 137.91 | 0.4 | % | ||||||||
Flags | # of Hotels | Occupancy | ADR | RevPAR | |||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | |||||||||||||||||||
Residence Inn | 29 | 79.6 | % | 78.1 | % | 1.9 | % | $ | 155.20 | $ | 157.93 | (1.7 | )% | $ | 123.48 | $ | 123.28 | 0.2 | % | ||||||||
Courtyard | 24 | 78.2 | % | 78.1 | % | 0.1 | % | 166.94 | 168.68 | (1.0 | )% | 130.60 | 131.79 | (0.9 | )% | ||||||||||||
Embassy Suites | 23 | 81.3 | % | 81.7 | % | (0.4 | )% | 184.63 | 181.67 | 1.6 | % | 150.12 | 148.37 | 1.2 | % | ||||||||||||
Hyatt House | 11 | 83.7 | % | 80.8 | % | 3.6 | % | 176.10 | 174.40 | 1.0 | % | 147.43 | 140.92 | 4.6 | % | ||||||||||||
Hilton Garden Inn | 8 | 77.3 | % | 74.2 | % | 4.2 | % | 163.49 | 163.23 | 0.2 | % | 126.45 | 121.19 | 4.3 | % | ||||||||||||
SpringHill Suites | 8 | 68.9 | % | 70.5 | % | (2.3 | )% | 129.31 | 134.94 | (4.2 | )% | 89.10 | 95.19 | (6.4 | )% | ||||||||||||
Wyndham | 8 | 78.9 | % | 78.1 | % | 1.0 | % | 173.99 | 175.11 | (0.6 | )% | 137.22 | 136.72 | 0.4 | % | ||||||||||||
Fairfield Inn & Suites | 7 | 77.7 | % | 76.0 | % | 2.1 | % | 163.27 | 174.76 | (6.6 | )% | 126.78 | 132.88 | (4.6 | )% | ||||||||||||
Hampton Inn | 7 | 77.7 | % | 73.7 | % | 5.4 | % | 143.18 | 144.01 | (0.6 | )% | 111.24 | 106.11 | 4.8 | % | ||||||||||||
Marriott | 6 | 69.1 | % | 73.0 | % | (5.3 | )% | 199.67 | 201.73 | (1.0 | )% | 137.98 | 147.26 | (6.3 | )% | ||||||||||||
DoubleTree | 6 | 83.8 | % | 86.3 | % | (2.8 | )% | 190.64 | 185.30 | 2.9 | % | 159.84 | 159.86 | 0.0 | % | ||||||||||||
Renaissance | 4 | 79.2 | % | 77.9 | % | 1.6 | % | 197.40 | 193.08 | 2.2 | % | 156.28 | 150.44 | 3.9 | % | ||||||||||||
Hyatt Place | 3 | 80.1 | % | 82.0 | % | (2.4 | )% | 187.37 | 186.88 | 0.3 | % | 150.01 | 153.24 | (2.1 | )% | ||||||||||||
Homewood Suites | 2 | 75.9 | % | 78.5 | % | (3.2 | )% | 185.27 | 191.61 | (3.3 | )% | 140.70 | 150.32 | (6.4 | )% | ||||||||||||
Hilton | 2 | 70.4 | % | 69.2 | % | 1.8 | % | 181.73 | 173.44 | 4.8 | % | 127.99 | 119.94 | 6.7 | % | ||||||||||||
Hyatt | 2 | 81.2 | % | 79.4 | % | 2.3 | % | 198.61 | 193.49 | 2.6 | % | 161.27 | 153.60 | 5.0 | % | ||||||||||||
Other | 5 | 76.6 | % | 78.2 | % | (2.0 | )% | 217.02 | 209.74 | 3.5 | % | 166.32 | 164.02 | 1.4 | % | ||||||||||||
Total | 155 | 78.6 | % | 78.4 | % | 0.2 | % | $ | 176.12 | $ | 175.90 | 0.1 | % | $ | 138.41 | $ | 137.91 | 0.4 | % | ||||||||
Note: Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an
unconsolidated hotel. The information above includes results for periods prior to the Company's ownership. Wyndham hotels reclassified to Upscale to conform with
Smith Travel Research chain scale definitions. The information has not been audited and is presented only for comparison purposes.
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