Exhibit 99.2
Strategic Hotels & Resorts, Inc.
Supplemental Financial Information
March 31, 2014
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| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | March 31, 2014 |
TABLE OF CONTENTS
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| PAGE |
| CORPORATE INFORMATION | |
| The Company | |
| Board of Directors | |
| Officers | |
| Equity Research Coverage | |
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| FINANCIAL HIGHLIGHTS | |
| Supplemental Financial Data | |
| Consolidated Statements of Operations | |
| Consolidated Balance Sheets | |
| Discontinued Operations | |
| Investments in Unconsolidated Affiliates | |
| Leasehold Information | |
| Non-GAAP Financial Measures | |
| Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA | |
| Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to Funds From Operations (FFO), FFO—Fully Diluted and Comparable FFO | |
| Debt Summary | |
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| PORTFOLIO DATA | |
| Portfolio at March 31, 2014 | |
| Seasonality by Geographic Region | |
| Operating Statistics by Geographic Region | |
| Selected Financial and Operating Information by Property | |
| Reconciliation of Property EBITDA to EBITDA | |
| Reconciliation of Property EBITDA to Comparable EBITDA | |
| 2014 Guidance | |
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| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | March 31, 2014 |
CORPORATE INFORMATION
The Company
Strategic Hotels & Resorts, Inc. is an industry-leading owner and asset manager of high-end hotels and resorts. We own interests in or lease a quality portfolio of upper upscale and luxury hotels and resorts in desirable United States and European locations. Our portfolio is currently made up of 16 properties totaling 7,862 rooms. We own interests in or lease unique hotels with complex operations, sophisticated customers and multiple revenue streams. Our properties include large convention hotels, business hotels and resorts, which are managed by internationally recognized hotel management companies.
We believe our asset management expertise is what truly distinguishes us. Asset management is our focus, our core competency, and our competitive advantage. Our business is driven by our team’s depth of knowledge and hands-on expertise in every aspect of the lodging industry. While our focus is to drive top line revenues, we importantly focus on every component of bottom line profitability. We use our experience to make selective, value added acquisitions and recycle capital through thoughtful and planned dispositions. Simply put, we are utilizing our expert management skills in building a great hotel company which we believe will provide attractive returns for our shareholders.
Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) and is traded on the New York Stock Exchange under the symbol BEE.
Fiscal Year End:
December 31
Number of Full-Time Equivalent Employees:
37
Corporate Headquarters:
200 West Madison Street, Suite 1700
Chicago, IL 60606
(312) 658-5000
Company Contacts:
Diane M. Morefield
Executive Vice President, Chief Financial Officer
(312) 658-5000
Jonathan P. Stanner
Vice President, Capital Markets, Acquisitions and Treasurer
(312) 658-5000
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| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | March 31, 2014 |
Board of Directors
Raymond L. Gellein, Jr.
Chairman of the Board, Chief Executive Officer and President
Sheli Z. Rosenberg
Lead Independent Director
Robert P. Bowen
Director and Chairman of the Audit Committee
James A. Jeffs
Director and Chairman of the Compensation Committee
William A. Prezant
Director and Chairman of the Corporate Governance and Nominating Committee
Kenneth Fisher
Director
David W. Johnson
Director
Richard D. Kincaid
Director
Sir David M.C. Michels
Director
Eugene F. Reilly
Director
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| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | March 31, 2014 |
Officers
Raymond L. Gellein, Jr.
Chief Executive Officer and President
Diane M. Morefield
Executive Vice President, Chief Financial Officer (Principal Financial Officer)
Richard J. Moreau
Executive Vice President, Chief Operating Officer
Paula C. Maggio
Executive Vice President, Secretary & General Counsel
Stephen M. Briggs
Senior Vice President, Chief Accounting Officer (Principal Accounting Officer)
John K.T. Barrett
Senior Vice President, Asset Management
Thomas G. Healy
Senior Vice President, Asset Management
David R. Hogin, Jr.
Senior Vice President, Asset Management
Robert T. McAllister
Senior Vice President, Tax
Patricia A. Needham
Senior Vice President, Assistant Secretary
Gregory A. Brenner
Vice President, Controller
Eric D. Hassberger
Vice President, Asset Management and Acquisitions
James L. Porter
Vice President, Internal Audit
Jonathan P. Stanner
Vice President, Capital Markets, Acquisitions and Treasurer
George T. Stowers
Vice President, Design and Construction
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| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | March 31, 2014 |
Equity Research Coverage
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| Firm | | Analyst | | Telephone |
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| Bank of America Merrill Lynch | | Andrew Didora | | (646) 855-2924 |
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| Deutsche Bank North America | | Chris Woronka | | (212) 250-4486 |
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| Evercore Partners | | Smedes Rose | | (212) 497-0881 |
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| Green Street Advisors | | Lukas Hartwich | | (949) 640-8780 |
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| JMP Securities | | Robert LaFleur | | (415) 835-8944 |
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| J.P. Morgan Securities | | Jonathan Mohraz | | (212) 622-1111 |
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| MLV & Co | | Ryan Meliker | | (212) 542-5872 |
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| Raymond James & Associates | | William Crow | | (727) 567-2594 |
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| Wells Fargo Securities, LLC | | Jeffrey Donnelly | | (617) 603-4262 |
Strategic Hotels & Resorts, Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Strategic Hotels & Resorts, Inc.'s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Strategic Hotels & Resorts, Inc. or its management. Strategic Hotels & Resorts, Inc. does not by its reference here imply its endorsement of, or concurrence with, such information, conclusions or recommendations.
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| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | March 31, 2014 |
Financial Highlights
Supplemental Financial Data
(in thousands, except per share information)
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| | | | | | | | |
| | | March 31, 2014 |
| | | Pro Rata Share | | Consolidated |
| Capitalization | | | | |
| Shares of common stock outstanding | | 205,793 |
| | 205,793 |
|
| Operating partnership units outstanding | | 797 |
| | 797 |
|
| Restricted stock units outstanding | | 1,619 |
| | 1,619 |
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| Combined shares and units outstanding | | 208,209 |
| | 208,209 |
|
| Common stock price at end of period | | $ | 10.19 |
| | $ | 10.19 |
|
| Common equity capitalization | | $ | 2,121,650 |
| | $ | 2,121,650 |
|
| Preferred equity capitalization (at $25.00 face value) | | 186,078 |
| | 186,078 |
|
| Preferred stock redemption liability | | 103,704 |
| | 103,704 |
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| Consolidated debt | | 1,193,755 |
| | 1,193,755 |
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| Pro rata share of unconsolidated debt | | 172,900 |
| | — |
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| Pro rata share of consolidated debt | | (132,791 | ) | | — |
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| Cash and cash equivalents | | (166,892 | ) | | (166,892 | ) |
| Total enterprise value | | $ | 3,478,404 |
| | $ | 3,438,295 |
|
| Net Debt / Total Enterprise Value | | 33.7 | % | | 32.9 | % |
| Preferred Equity / Total Enterprise Value | | 5.3 | % | | 5.4 | % |
| Common Equity / Total Enterprise Value | | 61.0 | % | | 61.7 | % |
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| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
Consolidated Statements of Operations
(in thousands, except per share data)
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| | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2014 | | 2013 |
| Revenues: | | | | |
| Rooms | | $ | 103,100 |
| | $ | 98,264 |
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| Food and beverage | | 70,017 |
| | 62,057 |
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| Other hotel operating revenue | | 20,239 |
| | 19,659 |
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| Lease revenue | | 1,299 |
| | 1,200 |
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| Total revenues | | 194,655 |
| | 181,180 |
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| Operating Costs and Expenses: | | | | |
| Rooms | | 33,707 |
| | 31,763 |
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| Food and beverage | | 54,603 |
| | 51,550 |
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| Other departmental expenses | | 53,579 |
| | 51,181 |
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| Management fees | | 5,778 |
| | 5,010 |
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| Other hotel expenses | | 15,678 |
| | 14,889 |
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| Lease expense | | 1,258 |
| | 1,176 |
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| Depreciation and amortization | | 22,205 |
| | 24,908 |
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| Corporate expenses | | 7,193 |
| | 5,763 |
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| Total operating costs and expenses | | 194,001 |
| | 186,240 |
|
| Operating income (loss) | | 654 |
| | (5,060 | ) |
| Interest expense | | (18,274 | ) | | (19,663 | ) |
| Interest income | | 27 |
| | 10 |
|
| Equity in earnings of unconsolidated affiliates | | 4,445 |
| | 1,345 |
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| Foreign currency exchange gain (loss) | | 2 |
| | (86 | ) |
| Gain on consolidation of affiliate | | 78,117 |
| | — |
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| Other income, net | | 423 |
| | 132 |
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| Income (loss) before income taxes and discontinued operations | | 65,394 |
| | (23,322 | ) |
| Income tax expense | | (39 | ) | | (13 | ) |
| Income (loss) from continuing operations | | 65,355 |
| | (23,335 | ) |
| Income from discontinued operations, net of tax | | 158,435 |
| | 1,989 |
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| Net Income (Loss) | | 223,790 |
| | (21,346 | ) |
| Net (income) loss attributable to the noncontrolling interests in SHR's operating partnership | | (849 | ) | | 87 |
|
| Net loss attributable to the noncontrolling interests in consolidated affiliates | | 4,041 |
| | 3,852 |
|
| Net Income (Loss) Attributable to SHR | | 226,982 |
| | (17,407 | ) |
| Preferred shareholder dividends | | (9,824 | ) | | (6,041 | ) |
| Net Income (Loss) Attributable to SHR Common Shareholders | | $ | 217,158 |
| | $ | (23,448 | ) |
| Basic Income (Loss) Per Common Share: | | | | |
| Income (loss) from continuing operations attributable to SHR common shareholders | | $ | 0.29 |
| | $ | (0.12 | ) |
| Income from discontinued operations attributable to SHR common shareholders | | 0.76 |
| | 0.01 |
|
| Net income (loss) attributable to SHR common shareholders | | $ | 1.05 |
| | $ | (0.11 | ) |
| Weighted average shares of common stock outstanding | | 206,983 |
| | 206,981 |
|
| Diluted Income (Loss) Per Common Share: | | | | |
| Income (loss) from continuing operations attributable to SHR common shareholders | | $ | 0.25 |
| | $ | (0.13 | ) |
| Income from discontinued operations attributable to SHR common shareholders | | 0.72 |
| | 0.01 |
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| Net income (loss) attributable to SHR common shareholders | | $ | 0.97 |
| | $ | (0.12 | ) |
| Weighted average shares of common stock outstanding | | 219,368 |
| | 218,710 |
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| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | March 31, 2014 and December 31, 2013 |
Consolidated Balance Sheets
(in thousands, except share data)
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| | | | | | | | |
| | | March 31, 2014 | | December 31, 2013 |
| Assets | | | | |
| Investment in hotel properties, net | | $ | 2,033,812 |
| | $ | 1,795,338 |
|
| Goodwill | | 38,128 |
| | 38,128 |
|
| Intangible assets, net of accumulated amortization of $6,158 and $11,753 | | 3,877 |
| | 29,502 |
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| Assets held for sale | | — |
| | 135,901 |
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| Investment in unconsolidated affiliates | | 76,779 |
| | 104,973 |
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| Cash and cash equivalents | | 166,892 |
| | 73,655 |
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| Restricted cash and cash equivalents | | 81,698 |
| | 75,916 |
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| Accounts receivable, net of allowance for doubtful accounts of $486 and $606 | | 52,691 |
| | 39,660 |
|
| Deferred financing costs, net of accumulated amortization of $11,539 and $12,354 | | 6,800 |
| | 8,478 |
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| Prepaid expenses and other assets | | 32,572 |
| | 35,600 |
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| Total assets | | $ | 2,493,249 |
| | $ | 2,337,151 |
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| Liabilities, Noncontrolling Interests and Equity | | | | |
| Liabilities: | | | | |
| Mortgages and other debt payable, net of discount | | $ | 1,161,263 |
| | $ | 1,163,696 |
|
| Bank credit facility | | 30,000 |
| | 110,000 |
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| Liabilities of assets held for sale | | — |
| | 17,027 |
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| Accounts payable and accrued expenses | | 203,699 |
| | 189,889 |
|
| Preferred stock redemption liability | | 103,704 |
| | — |
|
| Distributions payable | | 2,277 |
| | — |
|
| Deferred tax liabilities | | 45,957 |
| | 46,137 |
|
| Total liabilities | | 1,546,900 |
| | 1,526,749 |
|
| Commitments and contingencies | | | | |
| Noncontrolling interests in SHR’s operating partnership | | 8,124 |
| | 7,534 |
|
| Equity: | | | | |
| SHR’s shareholders’ equity: | | | | |
| 8.50% Series A Cumulative Redeemable Preferred Stock ($0.01 par value per share; 4,148,141 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $103,704 in the aggregate) | | — |
| | 99,995 |
|
| 8.25% Series B Cumulative Redeemable Preferred Stock ($0.01 par value per share; 3,615,375 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $90,384 in the aggregate) | | 87,064 |
| | 87,064 |
|
| 8.25% Series C Cumulative Redeemable Preferred Stock ($0.01 par value per share; 3,827,727 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $95,693 in the aggregate) | | 92,489 |
| | 92,489 |
|
| Common stock ($0.01 par value per share; 350,000,000 shares of common stock authorized; 205,792,726 and 205,582,838 shares of common stock issued and outstanding) | | 2,058 |
| | 2,056 |
|
| Additional paid-in capital | | 1,696,148 |
| | 1,705,306 |
|
| Accumulated deficit | | (1,007,970 | ) | | (1,234,952 | ) |
| Accumulated other comprehensive loss | | (22,328 | ) | | (41,445 | ) |
| Total SHR’s shareholders’ equity | | 847,461 |
| | 710,513 |
|
| Noncontrolling interests in consolidated affiliates | | 90,764 |
| | 92,355 |
|
| Total equity | | 938,225 |
| | 802,868 |
|
| Total liabilities, noncontrolling interests and equity | | $ | 2,493,249 |
| | $ | 2,337,151 |
|
Discontinued Operations
(in thousands)
The results of operations of hotels sold are classified as discontinued operations and segregated in the consolidated statements of operations for all periods presented. The following hotels were sold during the three months ended March 31, 2014:
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| | | | | | | | | |
| Hotel | | Location | | Date Sold | | Sales Proceeds | |
| Four Seasons Punta Mita Resort and La Solana land parcel | | Punta Mita, Mexico | | February 28, 2014 | | $ | 203,197,000 |
| |
| Marriott London Grosvenor Square | | London, England | | March 31, 2014 | | $ | 208,306,000 |
| (a) |
| |
| (a) | There was an outstanding balance of £67,301,000 ($112,150,000) on the mortgage loan secured by the Marriott London Grosvenor Square hotel, which was repaid at the time of closing. The net proceeds we received were $96,156,000. |
The following is a summary of income from discontinued operations for the three months ended March 31, 2014 and 2013 (in thousands):
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| | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2014 | | 2013 |
| Hotel operating revenues | | $ | 17,767 |
| | $ | 20,287 |
|
| Operating costs and expenses | | 11,485 |
| | 13,722 |
|
| Depreciation and amortization | | 1,275 |
| | 2,310 |
|
| Total operating costs and expenses | | 12,760 |
| | 16,032 |
|
| Operating income | | 5,007 |
| | 4,255 |
|
| Interest expense | | (1,326 | ) | | (1,823 | ) |
| Interest income | | 2 |
| | 2 |
|
| Loss on early extinguishment of debt | | (272 | ) | | — |
|
| Foreign currency exchange gain | | 32 |
| | 326 |
|
| Income tax expense | | (833 | ) | | (771 | ) |
| Gain on sale, net of tax | | 155,825 |
| | — |
|
| Income from discontinued operations | | $ | 158,435 |
| | $ | 1,989 |
|
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| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
Investments in Unconsolidated Affiliates
(in thousands)
We have a 36.4% ownership interest in the Hotel del Coronado hotel that we account for using the equity method of accounting. We had a 50.0% ownership interest in the Fairmont Scottsdale Princess hotel that we accounted for using the equity method of accounting until we acquired the remaining 50.0% ownership interest on March 31, 2014. For purposes of this analysis, the operating results reflect the 50.0% ownership interest we held in the Fairmont Scottsdale Princess hotel prior to March 31, 2014.
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| | | Three Months Ended March 31, 2014 | | Three Months Ended March 31, 2013 |
| | | Hotel del Coronado | | Fairmont Scottsdale Princess | | Total | | Hotel del Coronado | | Fairmont Scottsdale Princess | | Total |
| Total revenues (100%) | | $ | 34,042 |
| | $ | 35,006 |
| | $ | 69,048 |
| | $ | 30,330 |
| | $ | 30,956 |
| | $ | 61,286 |
|
| Property EBITDA (100%) | | $ | 9,559 |
| | $ | 13,191 |
| | $ | 22,750 |
| | $ | 7,874 |
| | $ | 9,569 |
| | $ | 17,443 |
|
| Equity in (losses) earnings of unconsolidated affiliates (SHR ownership) | | | | | | | | |
| Property EBITDA | | $ | 3,351 |
| | $ | 6,595 |
| | $ | 9,946 |
| | $ | 2,864 |
| | $ | 4,785 |
| | $ | 7,649 |
|
| Depreciation and amortization | | (1,955 | ) | | (1,551 | ) | | (3,506 | ) | | (1,865 | ) | | (1,840 | ) | | (3,705 | ) |
| Interest expense | | (1,900 | ) | | (168 | ) | | (2,068 | ) | | (2,490 | ) | | (194 | ) | | (2,684 | ) |
| Other expenses, net | | (4 | ) | | (30 | ) | | (34 | ) | | (16 | ) | | (8 | ) | | (24 | ) |
| Income taxes | | 230 |
| | — |
| | 230 |
| | 94 |
| | — |
| | 94 |
|
| Equity in (losses) earnings of unconsolidated affiliates | | $ | (278 | ) | | $ | 4,846 |
| | $ | 4,568 |
| | $ | (1,413 | ) | | $ | 2,743 |
| | $ | 1,330 |
|
| EBITDA Contribution: | | | | | | | | | | | | |
| Equity in (losses) earnings of unconsolidated affiliates | | $ | (278 | ) | | $ | 4,846 |
| | $ | 4,568 |
| | $ | (1,413 | ) | | $ | 2,743 |
| | $ | 1,330 |
|
| Depreciation and amortization | | 1,955 |
| | 1,551 |
| | 3,506 |
| | 1,865 |
| | 1,840 |
| | 3,705 |
|
| Interest expense | | 1,900 |
| | 168 |
| | 2,068 |
| | 2,490 |
| | 194 |
| | 2,684 |
|
| Income taxes | | (230 | ) | | — |
| | (230 | ) | | (94 | ) | | — |
| | (94 | ) |
| EBITDA Contribution | | $ | 3,347 |
| | $ | 6,565 |
| | $ | 9,912 |
| | $ | 2,848 |
| | $ | 4,777 |
| | $ | 7,625 |
|
| FFO Contribution: | | | | | | | | | | | | |
| Equity in (losses) earnings of unconsolidated affiliates | | $ | (278 | ) | | $ | 4,846 |
| | $ | 4,568 |
| | $ | (1,413 | ) | | $ | 2,743 |
| | $ | 1,330 |
|
| Depreciation and amortization | | 1,955 |
| | 1,551 |
| | 3,506 |
| | 1,865 |
| | 1,840 |
| | 3,705 |
|
| FFO Contribution | | $ | 1,677 |
| | $ | 6,397 |
| | $ | 8,074 |
| | $ | 452 |
| | $ | 4,583 |
| | $ | 5,035 |
|
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| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
Investments in Unconsolidated Affiliates (Continued)
(in thousands)
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| | | | | | | | | | | | | | | |
| Debt | | Interest Rate | | | | Spread over LIBOR | | | | Loan Amount | | Maturity (a) |
| Hotel del Coronado | | | | | | | | | | | | |
| CMBS Mortgage and Mezzanine | | 3.80 | % | | | | 365 bp | | | | $ | 475,000 |
| | March 2018 |
| Cash and cash equivalents | | | | | | | | | | (9,799 | ) | | |
| Net Debt | | | | | | | | | | $ | 465,201 |
| | |
| |
| (a) | Includes extension options. |
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| | | | | | | | | | | |
| Caps | | Effective Date | | LIBOR Cap Rate | | Notional Amount | | Maturity |
| Hotel del Coronado | | | | | | | | |
| CMBS Mortgage and Mezzanine Loan Caps | | March 2013 | | 3.00 | % | | $ | 475,000 |
| | March 2015 |
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| | | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
Leasehold Information
(in thousands)
|
| | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2014 | | 2013 |
| Marriott Hamburg: | | | | |
| Property EBITDA | | $ | 1,512 |
| | $ | 1,396 |
|
| Revenue (a) | | $ | 1,299 |
| | $ | 1,200 |
|
| | | | | |
| Lease expense | | (1,258 | ) | | (1,176 | ) |
| Less: Deferred gain on sale-leaseback | | (53 | ) | | (51 | ) |
| Adjusted lease expense | | (1,311 | ) | | (1,227 | ) |
| | | | | |
| Comparable EBITDA contribution from leasehold | | $ | (12 | ) | | $ | (27 | ) |
|
| | | | | | | | |
| Security Deposit (b): | | March 31, 2014 | | December 31, 2013 |
| Marriott Hamburg | | $ | 2,616 |
| | $ | 2,611 |
|
| |
| (a) | For the three months ended March 31, 2014 and 2013, Revenue for the Marriott Hamburg hotel represents lease revenue. |
| |
| (b) | The security deposit is recorded in prepaid expenses and other assets on the consolidated balance sheets. |
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| | |
| | | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | March 31, 2014 |
Non-GAAP Financial Measures
We present five non-GAAP financial measures that we believe are useful to management and investors as key measures of our operating performance: Funds from Operations (FFO); FFO—Fully Diluted; Comparable FFO; Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA); and Comparable EBITDA.
EBITDA represents net income (or loss) attributable to SHR common shareholders excluding: (i) interest expense, (ii) income taxes, including deferred income tax benefits and expenses applicable to our foreign subsidiaries and income taxes applicable to sale of assets; (iii) depreciation and amortization; and (iv) preferred stock dividends. EBITDA also excludes interest expense, income taxes and depreciation and amortization of our unconsolidated affiliates. EBITDA is presented on a full participation basis, which means we have assumed conversion of all redeemable noncontrolling interests of our operating partnership into our common stock. We believe this treatment of noncontrolling interests provides useful information for management and our investors and appropriately considers our current capital structure. We also present Comparable EBITDA, which eliminates the effect of realizing deferred gains on our sale leasebacks, as well as the effect of gains or losses on sales of assets, early extinguishment of debt, impairment losses, foreign currency exchange gains or losses and certain other charges that are highly variable from year to year. We believe EBITDA and Comparable EBITDA are useful to management and investors in evaluating our operating performance because they provide management and investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe they help management and investors meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our asset base (primarily depreciation and amortization) from our operating results. Our management also uses EBITDA and Comparable EBITDA as measures in determining the value of acquisitions and dispositions.
We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, with the exception of impairment of depreciable real estate. NAREIT adopted a definition of FFO in order to promote an industry-wide standard measure of REIT operating performance. NAREIT defines FFO as net income (or loss) (computed in accordance with GAAP) excluding losses or gains from sales of depreciable property, impairment of depreciable real estate, real estate-related depreciation and amortization, and our portion of these items related to unconsolidated affiliates. We also present FFO—Fully Diluted, which is FFO plus income or loss on income attributable to redeemable noncontrolling interests in our operating partnership. We also present Comparable FFO, which is FFO—Fully Diluted excluding the impact of any gains or losses on early extinguishment of debt, impairment losses, foreign currency exchange gains or losses and certain other charges that are highly variable from year to year. We believe that the presentation of FFO, FFO—Fully Diluted and Comparable FFO provides useful information to management and investors regarding our results of operations because they are measures of our ability to fund capital expenditures and expand our business. In addition, FFO is widely used in the real estate industry to measure operating performance without regard to items such as depreciation and amortization. We also present Comparable FFO per diluted share as a non-GAAP measure of our performance. We calculate Comparable FFO per diluted share for a given operating period as our Comparable FFO (as defined above) divided by the weighted average of fully diluted shares outstanding, excluding shares related to the JW Marriott Essex House Hotel put option. Dilutive securities may include shares granted under share-based compensation plans and operating partnership units. No effect is shown for securities that are anti-dilutive.
We caution investors that amounts presented in accordance with our definitions of FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP measures in the same manner. FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA should not be considered as an alternative measure of our net income (or loss) or operating performance. FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA can enhance your understanding of our financial condition and results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily a better indicator of any trend as compared to comparable GAAP measures such as net income (or loss) attributable to SHR common shareholders. In addition, you should be aware that adverse economic and market conditions might negatively impact our cash flow. We have provided a quantitative reconciliation of FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA to the most directly comparable GAAP financial performance measure, which is net income (or loss) attributable to SHR common shareholders.
|
| | |
| | | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA
(in thousands)
|
| | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2014 | | 2013 |
| Net income (loss) attributable to SHR common shareholders | | $ | 217,158 |
| | $ | (23,448 | ) |
| Depreciation and amortization—continuing operations | | 22,205 |
| | 24,908 |
|
| Depreciation and amortization—discontinued operations | | 1,275 |
| | 2,310 |
|
| Interest expense—continuing operations | | 18,274 |
| | 19,663 |
|
| Interest expense—discontinued operations | | 1,326 |
| | 1,823 |
|
| Income taxes—continuing operations | | 39 |
| | 13 |
|
| Income taxes—discontinued operations | | 833 |
| | 771 |
|
| Income taxes—sale of assets | | 20,451 |
| | — |
|
| Noncontrolling interests | | 849 |
| | (87 | ) |
| Adjustments from consolidated affiliates | | (3,675 | ) | | (3,554 | ) |
| Adjustments from unconsolidated affiliates | | 5,290 |
| | 6,316 |
|
| Preferred shareholder dividends | | 9,824 |
| | 6,041 |
|
| EBITDA | | 293,849 |
| | 34,756 |
|
| Realized portion of deferred gain on sale-leaseback | | (53 | ) | | (51 | ) |
| Gain on consolidation of affiliate | | (78,117 | ) | | — |
|
| Gain on sale of assets—discontinued operations | | (176,276 | ) | | — |
|
| Loss on early extinguishment of debt—discontinued operations | | 272 |
| | — |
|
| Foreign currency exchange (gain) loss—continuing operations (a) | | (2 | ) | | 86 |
|
| Foreign currency exchange gain—discontinued operations (a) | | (32 | ) | | (326 | ) |
| Activist shareholder costs | | 1,533 |
| | — |
|
| Comparable EBITDA | | $ | 41,174 |
| | $ | 34,465 |
|
| |
| (a) | Foreign currency exchange gains or losses applicable to third-party and inter-company debt and certain balance sheet items held by foreign subsidiaries. |
|
| | |
| | | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to
Funds From Operations (FFO), FFO—Fully Diluted and Comparable FFO
(in thousands, except per share data)
|
| | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2014 | | 2013 |
| Net income (loss) attributable to SHR common shareholders | | $ | 217,158 |
| | $ | (23,448 | ) |
| Depreciation and amortization—continuing operations | | 22,205 |
| | 24,908 |
|
| Depreciation and amortization—discontinued operations | | 1,275 |
| | 2,310 |
|
| Corporate depreciation | | (123 | ) | | (131 | ) |
| Gain on consolidation of affiliate | | (78,117 | ) | | — |
|
| Gain on sale of assets, net of tax—discontinued operations | | (155,825 | ) | | — |
|
| Realized portion of deferred gain on sale-leaseback | | (53 | ) | | (51 | ) |
| Noncontrolling interests adjustments | | (98 | ) | | (127 | ) |
| Adjustments from consolidated affiliates | | (1,835 | ) | | (1,641 | ) |
| Adjustments from unconsolidated affiliates | | 3,506 |
| | 3,706 |
|
| FFO | | 8,093 |
| | 5,526 |
|
| Redeemable noncontrolling interests | | 947 |
| | 40 |
|
| FFO—Fully Diluted | | 9,040 |
| | 5,566 |
|
| Non-cash mark to market of interest rate swaps—continuing operations | | (2,294 | ) | | (2,298 | ) |
| Non-cash mark to market of interest rate swaps—discontinued operations | | — |
| | (746 | ) |
| Loss on early extinguishment of debt—discontinued operations | | 272 |
| | — |
|
| Foreign currency exchange (gain) loss—continuing operations (a) | | (2 | ) | | 86 |
|
| Foreign currency exchange gain—discontinued operations (a) | | (32 | ) | | (326 | ) |
| Activist shareholder costs | | 1,533 |
| | — |
|
| Excess of redemption liability over carrying amount of Series A Preferred Stock | | 3,709 |
| | — |
|
| Comparable FFO | | $ | 12,226 |
| | $ | 2,282 |
|
| Comparable FFO per fully diluted share | | $ | 0.06 |
| | $ | 0.01 |
|
| Weighted average diluted shares (b) | | 209,583 |
| | 209,895 |
|
| |
| (a) | Foreign currency exchange gains or losses applicable to third-party and inter-company debt and certain balance sheet items held by foreign subsidiaries. |
| |
| (b) | Excludes shares related to the JW Marriott Essex House Hotel put option. |
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | March 31, 2014 |
Debt Summary
(dollars in thousands)
|
| | | | | | | | | | | |
| Debt | | Interest Rate | | Spread (a) | | Loan Amount | | Maturity (b) |
| North Beach Venture | | 5.00 | % | | Fixed | | $ | 1,469 |
| | January 2015 |
| Bank credit facility (c) | | 3.15 | % | | 300 bp | | 30,000 |
| | June 2015 |
| Fairmont Scottsdale Princess (d) | | 0.51 | % | | 36 bp | | 117,000 |
| | April 2015 |
| Four Seasons Washington, D.C. | | 3.30 | % | | 315 bp | | 130,000 |
| | July 2016 |
| Westin St. Francis | | 6.09 | % | | Fixed | | 209,588 |
| | June 2017 |
| Fairmont Chicago | | 6.09 | % | | Fixed | | 93,124 |
| | June 2017 |
| JW Marriott Essex House Hotel | | 4.75 | % | | 400 bp | | 185,826 |
| | September 2017 |
| Hyatt Regency La Jolla (e) | | 4.50% / 10.00% |
| | 400 bp / Fixed | | 89,306 |
| | December 2017 |
| InterContinental Miami | | 3.65 | % | | 350 bp | | 85,000 |
| | July 2018 |
| Loews Santa Monica Beach Hotel | | 4.00 | % | | 385 bp | | 108,500 |
| | July 2018 |
| InterContinental Chicago | | 5.61 | % | | Fixed | | 143,943 |
| | August 2021 |
| | | | | | | 1,193,756 |
| | |
| Unamortized discount (d) | | | | | | (2,493 | ) | | |
| | | | | | | $ | 1,191,263 |
| | |
| |
| (a) | Spread over LIBOR (0.15% at March 31, 2014). Interest on the JW Marriott Essex House Hotel loan is subject to a 0.75% LIBOR floor. Interest on the Hyatt Regency La Jolla loan is subject to a 0.50% LIBOR floor. |
| |
| (b) | Includes extension options. |
| |
| (c) | On April 25, 2014, the Company entered into a new $300,000,000 secured bank credit facility, which replaced the previous secured bank credit facility. |
| |
| (d) | On March 31, 2014, the Company acquired the remaining 50.0% equity interest in the Fairmont Scottsdale Princess hotel, increasing its equity ownership to 100.0%. In connection with the acquisition, the Company consolidated the hotel and assumed the mortgage loan secured by the Fairmont Scottsdale Princess hotel. The Company recorded the mortgage loan at its fair value, which included a debt discount of $2,493,000. The discount will be amortized on a straight-line basis through the loan's maturity date of April 2015 and will be included in interest expense in the consolidated statements of operations. |
| |
| (e) | Interest on $72,000,000 is payable at LIBOR plus 4.00%, subject to a 0.50% LIBOR floor, and interest on $17,306,000 is payable at a fixed rate of 10.00%. |
Interest Rate Swaps (f)
|
| | | | | | | | | |
| Swap Effective Date | | Fixed Pay Rate Against LIBOR | | Notional Amount | | Maturity |
| February 2010 | | 4.90 | % | | $ | 100,000 |
| | September 2014 |
| February 2010 | | 4.96 | % | | 100,000 |
| | December 2014 |
| December 2010 | | 5.23 | % | | 100,000 |
| | December 2015 |
| February 2011 | | 5.27 | % | | 100,000 |
| | February 2016 |
| | | 5.09 | % | | $ | 400,000 |
| | |
(f) All interest rate swaps were terminated in April 2014 for $22,700,000.
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
Debt Summary (Continued)
(in thousands)
Future scheduled debt principal payments (including extension options) are as follows:
|
| | | | |
| Years ending December 31, | | Amount |
| 2014 (remainder) | | $ | 3,279 |
|
| 2015 | | 154,498 |
|
| 2016 | | 139,783 |
|
| 2017 | | 577,037 |
|
| 2018 | | 185,015 |
|
| Thereafter | | 134,144 |
|
| | | 1,193,756 |
|
| Unamortized discount | | (2,493 | ) |
| | | $ | 1,191,263 |
|
| | | |
| Percent of fixed rate debt including swaps | | 72.5 | % |
| Weighted average interest rate including swaps (g) | | 6.16 | % |
| Weighted average maturity of fixed rate debt (debt with maturity of greater than one year) | | 3.67 |
|
(g) Excludes the amortization of deferred financing costs and the amortization of the interest rate swap costs.
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | March 31, 2014 |
Portfolio Data
Portfolio at March 31, 2014
(dollars in thousands)
|
| | | | | | | | | | | | | | | |
| Hotel | | Location | | Number of Rooms | | % of Total Rooms | | 1st QTR 2014 Property EBITDA | | % of 1st QTR 2014 Property EBITDA |
| United States: | | | | | | | | | | |
| Westin St. Francis | | San Francisco, CA | | 1,195 |
| | 15 | % | | $ | 5,997 |
| | 13 | % |
| InterContinental Chicago | | Chicago, IL | | 792 |
| | 10 | % | | (688 | ) | | (2 | )% |
| Hotel del Coronado (a) | | Coronado, CA | | 757 |
| | 10 | % | | 3,477 |
| | 7 | % |
| Fairmont Chicago | | Chicago, IL | | 687 |
| | 9 | % | | (2,140 | ) | | (5 | )% |
| Fairmont Scottsdale Princess (b) | | Scottsdale, AZ | | 649 |
| | 8 | % | | 6,595 |
| | 14 | % |
| InterContinental Miami | | Miami, FL | | 641 |
| | 8 | % | | 9,350 |
| | 20 | % |
| JW Marriott Essex House Hotel (c) | | New York, NY | | 510 |
| | 6 | % | | (479 | ) | | (1 | )% |
| Hyatt Regency La Jolla (d) | | La Jolla, CA | | 419 |
| | 5 | % | | 191 |
| | — | % |
| Ritz-Carlton Laguna Niguel | | Dana Point, CA | | 396 |
| | 5 | % | | 5,520 |
| | 12 | % |
| Marriott Lincolnshire Resort | | Lincolnshire, IL | | 389 |
| | 5 | % | | (638 | ) | | (1 | )% |
| Loews Santa Monica Beach Hotel | | Santa Monica, CA | | 342 |
| | 5 | % | | 3,660 |
| | 8 | % |
| Ritz-Carlton Half Moon Bay | | Half Moon Bay, CA | | 261 |
| | 3 | % | | 1,192 |
| | 3 | % |
| Four Seasons Washington, D.C. | | Washington, D.C. | | 222 |
| | 3 | % | | 1,904 |
| | 4 | % |
| Four Seasons Silicon Valley | | East Palo Alto, CA | | 200 |
| | 3 | % | | 1,795 |
| | 4 | % |
| Four Seasons Jackson Hole | | Teton Village, WY | | 124 |
| | 2 | % | | 4,508 |
| | 10 | % |
| Total United States | | | | 7,584 |
| | 97 | % | | 40,244 |
| | 86 | % |
| European: | | | |
| |
| | | |
|
| Marriott Hamburg (e) | | Hamburg, Germany | | 278 |
| | 3 | % | | N/A |
| | N/A |
|
| Assets Sold: | | | | | | | | | | |
| Marriott London Grosvenor Square (f) | | London, England | | — |
| | — | % | | 2,891 |
| | 6 | % |
| Four Seasons Punta Mita Resort (g) | | Punta Mita Mexico | | — |
| | — | % | | 3,642 |
| | 8 | % |
| Total Assets Sold | | | | — |
| | — | % | | 6,533 |
| | 14 | % |
| | | | | 7,862 |
| | 100 | % | | 46,777 |
| | 100 | % |
| |
| (a) | We account for this investment under the equity method of accounting and record equity in earnings of the unconsolidated affiliate in our consolidated statements of operations. Property EBITDA has been calculated based on our 36.4% ownership interest. |
| |
| (b) | Prior to March 31, 2014, we accounted for this investment under the equity method of accounting and recorded equity in earnings of the unconsolidated affiliate in our consolidated statements of operations. Property EBITDA was calculated based on our 50.0% ownership interest. On March 31, 2014 we acquired the remaining 50.0% ownership interest in this investment; we now own 100.0% of this hotel. We have consolidated this hotel and no longer account for this investment using the equity method of accounting. For purposes of this analysis, Property EBITDA and the percentage of Property EBITDA calculations above reflect the 50.0% ownership interest we held in the Fairmont Scottsdale Princess hotel prior to March 31, 2014. |
| |
| (c) | On September 14, 2012, we purchased a 51.0% controlling interest in the entity that owns the JW Marriott Essex House Hotel and consolidate this hotel for reporting purposes. |
| |
| (d) | We own a 53.5% controlling interest in the entity that owns the Hyatt Regency La Jolla hotel and consolidate this hotel for reporting purposes. |
| |
| (e) | We sublease this property and have not included it in the percentage of Property EBITDA calculation. |
| |
| (f) | On March 31, 2014, we sold this hotel; therefore, the results of operations have been included in income from discontinued operations, net of tax for the three months ended March 31, 2014 and 2013. However, for purposes of this comparison, Property EBITDA and the percentage of Property EBITDA calculation above reflects operating results before they were reclassified to discontinued operations. |
| |
| (g) | On February 28, 2014, we sold our interest in this property; therefore, the results of operations have been included in income from discontinued operations, net of tax for the three months ended March 31, 2014 and 2013. However, for purposes of this comparison, Property EBITDA and the percentage of Property EBITDA calculation above reflects operating results before they were reclassified to discontinued operations. |
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Four Quarters Ended September 30, 2013 |
Seasonality by Geographic Region
(dollars in thousands)
The Total United States portfolio is derived from our hotel portfolio at March 31, 2014, consisting of all properties located in the United States, and 100% of the operations of the Hotel del Coronado and the Fairmont Scottsdale Princess hotel. The Total European portfolio is derived from our hotel portfolio at March 31, 2014, consisting of all properties located in Europe. The operating results of the Marriott London Grosvenor Square hotel are included in income from discontinued operations for the three months ended March 31, 2014. However, for purposes of this analysis, we have included the operating results of the Marriott London Grosvenor Square hotel in the total European portfolio in the table below. We have not included the operating results of the Four Seasons Punta Mita Resort in a North American or Mexican portfolio below since we did not own this property for the full three months ended March 31, 2014 and the results of the periods of ownership are not comparative.
|
| | | | | | | | | | | | | | | | | | | | |
| United States Hotels (as of March 31, 2014) | | | | | | | | |
| Total property revenues - 15 Properties and 7,584 Rooms | | | | | | |
| | | | | | | | | | | |
| | | Three Months Ended | | |
| | | June 30, 2013 | | September 30, 2013 | | December 31, 2013 | | March 31, 2014 | | Total |
| Total property revenues | | 287,897 |
| | 283,848 |
| | 287,176 |
| | $ | 262,402 |
| | 1,121,323 |
|
| Total property seasonality % | | 25.7 | % | | 25.3 | % | | 25.6 | % | | 23.4 | % | | 100.0 | % |
| | | | | | | | | | | |
| | | | | | | | | | | |
| European Hotels (as of March 31, 2014) | | | | | | | | |
| Total property revenues - 2 Properties and 515 Rooms | | | | | | |
| | | | | |
| | | Three Months Ended | | |
| | | June 30, 2013 | | September 30, 2013 | | December 31, 2013 | | March 31, 2014 | | Total |
| Total property revenues | | $ | 15,424 |
| | $ | 14,749 |
| | $ | 16,640 |
| | $ | 12,891 |
| | $ | 59,704 |
|
| Total property seasonality % | | 25.8 | % | | 24.7 | % | | 27.9 | % | | 21.6 | % | | 100.0 | % |
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
Operating Statistics by Geographic Region
The Total United States portfolio is derived from our hotel portfolio at March 31, 2014, consisting of all properties located in the United States, and 100% of the operations of the Hotel del Coronado and the Fairmont Scottsdale Princess hotel. The Total European portfolio is derived from our hotel portfolio at March 31, 2014, consisting of all properties located in Europe. For purposes of this analysis, we have included the operating results of the Marriott London Grosvenor Square hotel, which is included in income from discontinued operations, in the Total European portfolio because we owned the property for the full three months ended March 31, 2014. We have not included the operating results of the Four Seasons Punta Mita Resort because we did not own this property for the full three months ended March 31, 2014 and the results of the periods of ownership are not comparative.
Total United States Hotels (as of March 31, 2014)
15 Properties
7,584 Rooms
|
| | | | | | | | | | | | |
| | | Three Months Ended March 31, | | |
| | | 2014 | | 2013 | | Change | | |
| ADR | | $ | 284.66 |
| | $ | 270.76 |
| | 5.1 | | % |
| Average Occupancy | | 68.8 | % | | 68.1 | % | | 0.7 | | pts |
| RevPAR | | $ | 195.96 |
| | $ | 184.41 |
| | 6.3 | | % |
| Total RevPAR | | $ | 384.39 |
| | $ | 352.05 |
| | 9.2 | | % |
| Property EBITDA Margin | | 20.2 | % | | 18.0 | % | | 2.2 | | pts |
Total European Hotels (as of March 31, 2014)
2 Properties
515 Rooms
|
| | | | | | | | | | | | |
| | | Three Months Ended March 31, | | |
| | | 2014 | | 2013 | | Change | | |
| ADR | | $ | 246.35 |
| | $ | 240.82 |
| | 2.3 | | % |
| Average Occupancy | | 77.0 | % | | 74.1 | % | | 2.9 | | pts |
| RevPAR | | $ | 189.62 |
| | $ | 178.44 |
| | 6.3 | | % |
| Total RevPAR | | $ | 278.12 |
| | $ | 251.29 |
| | 10.7 | | % |
| Property EBITDA Margin | | 34.2 | % | | 33.5 | % | | 0.7 | | pts |
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
Selected Financial and Operating Information by Property
(in thousands, except operating information)
The following tables present selected financial and operating information by property for the three months ended March 31, 2014 and 2013. Property EBITDA reflects property net operating income or loss plus depreciation and amortization. |
| | | | | | | | | | | | | |
| | | Three Months Ended March 31, | | |
| UNITED STATES HOTELS: | | 2014 | | 2013 | | Change | | |
| FAIRMONT CHICAGO | | | | | | | | |
| Selected Financial Information: | | | | | | | | |
| Total revenues | | $ | 8,498 |
| | $ | 9,340 |
| | (9.0 | ) | | % |
| Property EBITDA | | $ | (2,140 | ) | | $ | (969 | ) | | (120.8 | ) | | % |
| Selected Operating Information: | | | | | | | | |
| Rooms | | 687 |
| | 687 |
| | — |
| | |
| Average occupancy | | 45.9 | % | | 52.6 | % | | (6.7 | ) | | pts |
| ADR | | $ | 160.55 |
| | $ | 166.24 |
| | (3.4 | ) | | % |
| RevPAR | | $ | 73.73 |
| | $ | 87.41 |
| | (15.7 | ) | | % |
| Total RevPAR | | $ | 137.43 |
| | $ | 151.06 |
| | (9.0 | ) | | % |
| | | | | | | | | |
| FAIRMONT SCOTTSDALE PRINCESS | | | | | | |
| Selected Financial Information (Amounts below are 100% of operations, of which SHR owns 100% and 50% as of March 31, 2014 and 2013, respectively): |
| Total revenues | | $ | 35,006 |
| | $ | 30,956 |
| | 13.1 |
| | % |
| Property EBITDA | | $ | 13,191 |
| | $ | 9,569 |
| | 37.9 |
| | % |
| Selected Operating Information: | | | | | | | | |
| Rooms | | 649 |
| | 649 |
| | — |
| | |
| Average occupancy | | 82.4 | % | | 84.9 | % | | (2.5 | ) | | pts |
| ADR | | $ | 323.33 |
| | $ | 292.79 |
| | 10.4 |
| | % |
| RevPAR | | $ | 266.44 |
| | $ | 248.52 |
| | 7.2 |
| | % |
| Total RevPAR | | $ | 599.31 |
| | $ | 529.98 |
| | 13.1 |
| | % |
| | | | | | | | | |
| FOUR SEASONS JACKSON HOLE | | | | | | |
| Selected Financial Information: |
| Total revenues | | $ | 15,870 |
| | $ | 14,068 |
| | 12.8 |
| | % |
| Property EBITDA | | $ | 4,508 |
| | $ | 3,797 |
| | 18.7 |
| | % |
| Selected Operating Information: | | | | | | | | |
| Rooms | | 124 |
| | 124 |
| | — |
| | |
| Average occupancy | | 75.6 | % | | 74.5 | % | | 1.1 |
| | pts |
| ADR | | $ | 701.46 |
| | $ | 654.92 |
| | 7.1 |
| | % |
| RevPAR | | $ | 530.43 |
| | $ | 487.73 |
| | 8.8 |
| | % |
| Total RevPAR | | $ | 1,422.07 |
| | $ | 1,260.61 |
| | 12.8 |
| | % |
| | | | | | | | | |
| FOUR SEASONS SILICON VALLEY | | | | | | |
| Selected Financial Information: |
| Total revenues | | $ | 8,770 |
| | $ | 8,164 |
| | 7.4 |
| | % |
| Property EBITDA | | $ | 1,795 |
| | $ | 1,498 |
| | 19.8 |
| | % |
| Selected Operating Information: | | | | | | | | |
| Rooms | | 200 |
| | 200 |
| | — |
| | |
| Average occupancy | | 70.6 | % | | 76.3 | % | | (5.7 | ) | | pts |
| ADR | | $ | 380.03 |
| | $ | 317.01 |
| | 19.9 |
| | % |
| RevPAR | | $ | 268.30 |
| | $ | 241.78 |
| | 11.0 |
| | % |
| Total RevPAR | | $ | 487.20 |
| | $ | 453.53 |
| | 7.4 |
| | % |
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
|
| | | | | | | | | | | | | |
| | | Three Months Ended March 31, | | |
| | | 2014 | | 2013 | | Change | | |
| FOUR SEASONS WASHINGTON, D.C. | | | | | | |
| Selected Financial Information: | | | | | | |
| Total revenues | | $ | 14,392 |
| | $ | 14,444 |
| | (0.4 | ) | | % |
| Property EBITDA | | $ | 1,904 |
| | $ | 2,749 |
| | (30.7 | ) | | % |
| Selected Operating Information: | | | | | | |
| Rooms | | 222 |
| | 222 |
| | — |
| | |
| Average occupancy | | 63.8 | % | | 64.4 | % | | (0.6 | ) | | pts |
| ADR | | $ | 510.91 |
| | $ | 573.94 |
| | (11.0 | ) | | % |
| RevPAR | | $ | 326.13 |
| | $ | 369.67 |
| | (11.8 | ) | | % |
| Total RevPAR | | $ | 720.33 |
| | $ | 722.90 |
| | (0.4 | ) | | % |
| | | | | | | | | |
| HOTEL DEL CORONADO | | | | | | | | |
| Selected Financial Information (Amounts below are 100% of operations, of which SHR owns 36.4% as of March 31, 2014 and 2013, respectively): |
| Total revenues | | $ | 34,042 |
| | $ | 30,330 |
| | 12.2 |
| | % |
| Property EBITDA | | $ | 9,559 |
| | $ | 7,874 |
| | 21.4 |
| | % |
| Selected Operating Information: | | | | | | |
| Rooms | | 757 |
| | 757 |
| | — |
| | |
| Average occupancy | | 62.6 | % | | 59.8 | % | | 2.8 |
| | pts |
| ADR | | $ | 354.25 |
| | $ | 333.74 |
| | 6.1 |
| | % |
| RevPAR | | $ | 221.73 |
| | $ | 199.61 |
| | 11.1 |
| | % |
| Total RevPAR | | $ | 499.66 |
| | $ | 445.17 |
| | 12.2 |
| | % |
| | | | | | | | | |
| HYATT REGENCY LA JOLLA | | | | | | |
| Selected Financial Information: | | | | | | |
| Total revenues | | $ | 6,970 |
| | $ | 8,546 |
| | (18.4 | ) | | % |
| Property EBITDA | | $ | 191 |
| | $ | 1,486 |
| | (87.1 | ) | | % |
| Selected Operating Information: | | | | | | |
| Rooms | | 419 |
| | 419 |
| | — |
| | |
| Average occupancy | | 50.0 | % | | 70.2 | % | | (20.2 | ) | | pts |
| ADR | | $ | 179.97 |
| | $ | 171.18 |
| | 5.1 |
| | % |
| RevPAR | | $ | 89.94 |
| | $ | 120.13 |
| | (25.1 | ) | | % |
| Total RevPAR | | $ | 184.83 |
| | $ | 226.61 |
| | (18.4 | ) | | % |
| | | | | | | | | |
| INTERCONTINENTAL CHICAGO | | | | | | |
| Selected Financial Information: | | | | | | |
| Total revenues | | $ | 12,094 |
| | $ | 10,806 |
| | 11.9 |
| | % |
| Property EBITDA | | $ | (688 | ) | | $ | (1,540 | ) | | 55.3 |
| | % |
| Selected Operating Information: | | | | | | |
| Rooms | | 792 |
| | 792 |
| | — |
| | |
| Average occupancy | | 63.1 | % | | 53.6 | % | | 9.5 |
| | pts |
| ADR | | $ | 140.70 |
| | $ | 146.95 |
| | (4.3 | ) | | % |
| RevPAR | | $ | 88.79 |
| | $ | 78.83 |
| | 12.6 |
| | % |
| Total RevPAR | | $ | 169.67 |
| | $ | 151.59 |
| | 11.9 |
| | % |
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
|
| | | | | | | | | | | | | |
| | | Three Months Ended March 31, | | |
| | | 2014 | | 2013 | | Change | | |
| INTERCONTINENTAL MIAMI | | | | | | |
| Selected Financial Information: | | | | | | |
| Total revenues | | $ | 23,241 |
| | $ | 20,716 |
| | 12.2 |
| | % |
| Property EBITDA | | $ | 9,350 |
| | $ | 8,181 |
| | 14.3 |
| | % |
| Selected Operating Information: | | | | | | |
| Rooms | | 641 |
| | 641 |
| | — |
| | |
| Average occupancy | | 92.2 | % | | 90.0 | % | | 2.2 |
| | pts |
| ADR | | $ | 257.51 |
| | $ | 239.82 |
| | 7.4 |
| | % |
| RevPAR | | $ | 237.47 |
| | $ | 215.93 |
| | 10.0 |
| | % |
| Total RevPAR | | $ | 402.85 |
| | $ | 359.10 |
| | 12.2 |
| | % |
| | | | | | | | | |
| JW MARRIOTT ESSEX HOUSE HOTEL | | | | |
| Selected Financial Information: |
| Total revenues | | $ | 16,887 |
| | $ | 16,084 |
| | 5.0 |
| | % |
| Property EBITDA | | $ | (479 | ) | | $ | (1,348 | ) | | 64.5 |
| | % |
| Selected Operating Information: |
| Rooms | | 510 |
| | 510 |
| | — |
| | |
| Average occupancy | | 75.3 | % | | 77.1 | % | | (1.8 | ) | | pts |
| ADR | | $ | 353.83 |
| | $ | 343.55 |
| | 3.0 |
| | % |
| RevPAR | | $ | 266.50 |
| | $ | 264.78 |
| | 0.6 |
| | % |
| Total RevPAR | | $ | 367.19 |
| | $ | 338.79 |
| | 8.4 |
| | % |
| | | | | | |
| | |
| LOEWS SANTA MONICA BEACH HOTEL | | | | |
| Selected Financial Information: | | | | | | |
| Total revenues | | $ | 13,621 |
| | $ | 11,746 |
| | 16.0 |
| | % |
| Property EBITDA | | $ | 3,660 |
| | $ | 2,545 |
| | 43.8 |
| | % |
| Selected Operating Information: | | | | | | |
| Rooms | | 342 |
| | 342 |
| | — |
| | |
| Average occupancy | | 88.4 | % | | 81.2 | % | | 7.2 |
| | pts |
| ADR | | $ | 341.16 |
| | $ | 307.53 |
| | 10.9 |
| | % |
| RevPAR | | $ | 301.54 |
| | $ | 249.63 |
| | 20.8 |
| | % |
| Total RevPAR | | $ | 442.54 |
| | $ | 381.62 |
| | 16.0 |
| | % |
| | | | | | | | | |
| MARRIOTT LINCOLNSHIRE RESORT | | | | | | |
| Selected Financial Information: | | | | | | | | |
| Total revenues | | $ | 6,318 |
| | $ | 6,827 |
| | (7.5 | ) | | % |
| Property EBITDA | | $ | (638 | ) | | $ | (245 | ) | | (160.4 | ) | | % |
Selected Operating Information: | | | | | | | | |
| Rooms | | 389 |
| | 389 |
| | — |
| | |
| Average occupancy | | 50.2 | % | | 44.8 | % | | 5.4 |
| | pts |
| ADR | | $ | 132.74 |
| | $ | 126.50 |
| | 4.9 |
| | % |
| RevPAR | | $ | 66.65 |
| | $ | 56.62 |
| | 17.7 |
| | % |
| Total RevPAR | | $ | 180.47 |
| | $ | 188.71 |
| | (4.4 | ) | | % |
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
|
| | | | | | | | | | | | | |
| | | Three Months Ended March 31, | | |
| | | 2014 | | 2013 | | Change | | |
| RITZ-CARLTON HALF MOON BAY | | | | | | |
| Selected Financial Information: | | | | | | | | |
| Total revenues | | $ | 12,833 |
| | $ | 11,534 |
| | 11.3 |
| | % |
| Property EBITDA | | $ | 1,192 |
| | $ | 666 |
| | 79.0 |
| | % |
| Selected Operating Information: | | | | | | | | |
| Rooms | | 261 |
| | 261 |
| | — |
| | |
| Average occupancy | | 60.8 | % | | 55.4 | % | | 5.4 |
| | pts |
| ADR | | $ | 364.79 |
| | $ | 352.31 |
| | 3.5 |
| | % |
| RevPAR | | $ | 221.62 |
| | $ | 195.31 |
| | 13.5 |
| | % |
| Total RevPAR | | $ | 546.30 |
| | $ | 491.00 |
| | 11.3 |
| | % |
| | | | | | | | | |
| RITZ-CARLTON LAGUNA NIGUEL | | | | | | |
| Selected Financial Information: | | | | | | | | |
| Total revenues | | $ | 19,624 |
| | $ | 17,753 |
| | 10.5 |
| | % |
| Property EBITDA | | $ | 5,520 |
| | $ | 4,473 |
| | 23.4 |
| | % |
| Selected Operating Information: | | | | | | | | |
| Rooms | | 396 |
| | 396 |
| | — |
| | |
| Average occupancy | | 67.4 | % | | 61.0 | % | | 6.4 |
| | pts |
| ADR | | $ | 360.62 |
| | $ | 367.66 |
| | (1.9 | ) | | % |
| RevPAR | | $ | 242.88 |
| | $ | 224.19 |
| | 8.3 |
| | % |
| Total RevPAR | | $ | 550.62 |
| | $ | 498.11 |
| | 10.5 |
| | % |
| | | | | | | | | |
| WESTIN ST. FRANCIS | | | | | | | | |
| Selected Financial Information: | | | | | | | | |
| Total revenues | | $ | 34,237 |
| | $ | 29,950 |
| | 14.3 |
| | % |
| Property EBITDA | | $ | 5,997 |
| | $ | 4,625 |
| | 29.7 |
| | % |
| Selected Operating Information: | | | | | | | | |
| Rooms | | 1,195 |
| | 1,195 |
| | — |
| | |
| Average occupancy | | 76.4 | % | | 74.2 | % | | 2.2 |
| | pts |
| ADR | | $ | 245.01 |
| | $ | 227.83 |
| | 7.5 |
| | % |
| RevPAR | | $ | 187.10 |
| | $ | 169.15 |
| | 10.6 |
| | % |
| Total RevPAR | | $ | 318.34 |
| | $ | 278.47 |
| | 14.3 |
| | % |
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
|
| | | | | | | | | | | | | |
| | | Three Months Ended March 31, | | |
| EUROPEAN HOTELS: | | 2014 | | 2013 | | Change | | |
| MARRIOTT HAMBURG | | | | | | | | |
| Selected Financial Information: | | | | | | |
| Total revenues | | $ | 5,150 |
| | $ | 4,467 |
| | 15.3 |
| | % |
| Property EBITDA | | $ | 1,512 |
| | $ | 1,396 |
| | 8.3 |
| | % |
| Selected Operating Information: | | | | | | |
| Rooms | | 278 |
| | 278 |
| | — |
| | |
| Average occupancy | | 83.7 | % | | 73.9 | % | | 9.8 |
| | pts |
| ADR | | $ | 176.79 |
| | $ | 170.28 |
| | 3.8 |
| | % |
| RevPAR | | $ | 147.99 |
| | $ | 125.89 |
| | 17.6 |
| | % |
| Total RevPAR | | $ | 205.82 |
| | $ | 178.52 |
| | 15.3 |
| | % |
| | | | | | | | | |
| MARRIOTT LONDON GROSVENOR SQUARE | | | | |
| Selected Financial Information: | | | | | | |
| Total revenues | | $ | 7,741 |
| | $ | 7,181 |
| | 7.8 |
| | % |
| Property EBITDA | | $ | 2,891 |
| | $ | 2,503 |
| | 15.5 |
| | % |
| Selected Operating Information: | | | | | | |
| Rooms | | — |
| | — |
| | — |
| | |
| Average occupancy | | 69.1 | % | | 74.3 | % | | (5.2 | ) | | pts |
| ADR | | $ | 345.26 |
| | $ | 323.17 |
| | 6.8 |
| | % |
| RevPAR | | $ | 238.46 |
| | $ | 240.09 |
| | (0.7 | ) | | % |
| Total RevPAR | | $ | 362.92 |
| | $ | 336.65 |
| | 7.8 |
| | % |
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
Reconciliation of Property EBITDA to EBITDA
(in thousands)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2014 | | 2013 |
| Hotel | | Property EBITDA | | EBITDA | | Property EBITDA | | EBITDA |
| Fairmont Chicago | | $ | (2,140 | ) | | $ | (2,140 | ) | | $ | (969 | ) | | $ | (969 | ) |
| Fairmont Scottsdale Princess (a) | | 13,191 |
| | — |
| | 9,569 |
| | — |
|
| Four Seasons Jackson Hole | | 4,508 |
| | 4,508 |
| | 3,797 |
| | 3,797 |
|
| Four Seasons Silicon Valley | | 1,795 |
| | 1,795 |
| | 1,498 |
| | 1,498 |
|
| Four Seasons Washington, D.C. | | 1,904 |
| | 1,904 |
| | 2,749 |
| | 2,749 |
|
| Hotel del Coronado (a) | | 9,559 |
| | — |
| | 7,874 |
| | — |
|
| Hyatt Regency La Jolla | | 191 |
| | 191 |
| | 1,486 |
| | 1,486 |
|
| InterContinental Chicago | | (688 | ) | | (688 | ) | | (1,540 | ) | | (1,540 | ) |
| InterContinental Miami | | 9,350 |
| | 9,350 |
| | 8,181 |
| | 8,181 |
|
| JW Marriott Essex House Hotel | | (479 | ) | | (479 | ) | | (1,348 | ) | | (1,348 | ) |
| Loews Santa Monica Beach Hotel | | 3,660 |
| | 3,660 |
| | 2,545 |
| | 2,545 |
|
| Marriott Lincolnshire Resort | | (638 | ) | | (638 | ) | | (245 | ) | | (245 | ) |
| Ritz-Carlton Half Moon Bay | | 1,192 |
| | 1,192 |
| | 666 |
| | 666 |
|
| Ritz-Carlton Laguna Niguel | | 5,520 |
| | 5,520 |
| | 4,473 |
| | 4,473 |
|
| Westin St. Francis | | 5,997 |
| | 5,997 |
| | 4,625 |
| | 4,625 |
|
| Four Seasons Punta Mita Resort (b) | | 3,642 |
| | — |
| | 4,626 |
| | — |
|
| Marriott Hamburg (c) | | 1,512 |
| | 41 |
| | 1,396 |
| | 24 |
|
| Marriott London Grosvenor Square (d) | | 2,891 |
| | — |
| | 2,503 |
| | — |
|
| | | $ | 60,967 |
| | $ | 30,213 |
| | $ | 51,886 |
| | $ | 25,942 |
|
| Adjustments: | | | | | | | | |
| Corporate expenses | | | | (7,193 | ) | | | | (5,763 | ) |
| Interest income | | | | 27 |
| | | | 10 |
|
| Equity in earnings of unconsolidated affiliates | | 4,445 |
| | | | 1,345 |
|
| Foreign currency exchange gain (loss) | | | | 2 |
| | | | (86 | ) |
| Gain on consolidation of affiliate | | | | 78,117 |
| | | | — |
|
| Other income, net | | | | 423 |
| | | | 132 |
|
| Income from discontinued operations | | | | 158,435 |
| | | | 1,989 |
|
| Depreciation expense—discontinued operations | | | | 1,275 |
| | | | 2,310 |
|
| Interest expense—discontinued operations | | | | 1,326 |
| | | | 1,823 |
|
| Income taxes—discontinued operations | | | | 833 |
| | | | 771 |
|
| Income taxes—sale of assets | | | | 20,451 |
| | | | — |
|
| Noncontrolling interest in consolidated affiliates | | 4,041 |
| | | | 3,852 |
|
| Adjustments from consolidated affiliates | | | | (3,675 | ) | | | | (3,554 | ) |
| Adjustments from unconsolidated affiliates | | 5,290 |
| | | | 6,316 |
|
| Other adjustments | | | | (161 | ) | | | | (331 | ) |
| EBITDA | | | | $ | 293,849 |
| | | | $ | 34,756 |
|
| |
| (a) | We accounted for these properties under the equity method of accounting for the three months ended March 31, 2014 and 2013. Therefore, EBITDA related to our interest in these properties is reflected in adjustments from unconsolidated affiliates. Property EBITDA represents 100% of revenue and expenses generated by these properties. On March 31, 2014, we acquired the remaining ownership interest in the Fairmont Scottsdale Princess hotel and consolidated the property. |
| |
| (b) | On February 28, 2014, we sold our interest in this hotel. Therefore, its results of operations have been included in income from discontinued operations for the three months ended March 31, 2014 and 2013. |
| |
| (c) | We have a leasehold interest in and sublease this property. Therefore, EBITDA represents the lease revenue less the lease expense recorded in our statements. Property EBITDA represents the revenue less expenses generated by the property. |
| |
| (d) | On March 31, 2014, we sold this hotel. Therefore, its results of operations have been included in income from discontinued operations for the three months ended March 31, 2014 and 2013. |
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three Months Ended March 31, 2014 and 2013 |
Reconciliation of Property EBITDA to Comparable EBITDA
(in thousands)
|
| | | | | | | | | | | | |
| | | Three Months Ended March 31, 2014 |
| | | Property EBITDA | | Adjustments | | Comparable EBITDA |
| Urban Hotels: | | | | | | |
| Fairmont Chicago | | $ | (2,140 | ) | | $ | — |
| | $ | (2,140 | ) |
| Four Seasons Silicon Valley | | 1,795 |
| | — |
| | 1,795 |
|
| Four Seasons Washington, D.C. | | 1,904 |
| | — |
| | 1,904 |
|
| Hyatt Regency La Jolla | | 191 |
| | (89 | ) | | 102 |
|
| InterContinental Chicago | | (688 | ) | | — |
| | (688 | ) |
| InterContinental Miami | | 9,350 |
| | — |
| | 9,350 |
|
| JW Marriott Essex House Hotel | | (479 | ) | | 235 |
| | (244 | ) |
| Westin St. Francis | | 5,997 |
| | — |
| | 5,997 |
|
| Total Urban Hotels | | 15,930 |
| | 146 |
| | 16,076 |
|
| Resorts: | | | | | | |
| Fairmont Scottsdale Princess | | 13,191 |
| | (6,626 | ) | | 6,565 |
|
| Four Seasons Jackson Hole | | 4,508 |
| | — |
| | 4,508 |
|
| Four Seasons Punta Mita Resort | | 3,642 |
| | — |
| | 3,642 |
|
| Hotel del Coronado | | 9,559 |
| | (6,212 | ) | | 3,347 |
|
| Loews Santa Monica Beach Hotel | | 3,660 |
| | — |
| | 3,660 |
|
| Marriott Lincolnshire Resort | | (638 | ) | | — |
| | (638 | ) |
| Ritz-Carlton Half Moon Bay | | 1,192 |
| | — |
| | 1,192 |
|
| Ritz-Carlton Laguna Niguel | | 5,520 |
| | — |
| | 5,520 |
|
| Total Resorts | | 40,634 |
| | (12,838 | ) | | 27,796 |
|
| European Hotels: | | | | | | |
| Marriott Hamburg | | 1,512 |
| | (1,524 | ) | | (12 | ) |
| Marriott London Grosvenor Square | | 2,891 |
| | — |
| | 2,891 |
|
| Total European Hotels | | 4,403 |
| | (1,524 | ) | | 2,879 |
|
| | | $ | 60,967 |
| | $ | (14,216 | ) | | $ | 46,751 |
|
| | | | | | | |
| | | % of QTR Comparable EBITDA | | |
| Urban Hotels | | 34 | % | |
|
| Resorts | | 60 | % | |
|
| European Hotels | | 6 | % | |
|
| Total | | 100 | % | | |
|
| | | | | | | | | | | | | |
| Total United States Urban Hotels (as of March 31, 2014) |
| 8 Properties | | | | | | | | |
| 4,666 Rooms | | | | | | | | |
| | | Three Months Ended March 31, | | |
| | | 2014 | | 2013 | | Change | | |
| ADR | | $ | 249.27 |
| | $ | 241.32 |
| | 3.3 |
| | % |
| Average Occupancy | | 68.5 | % | | 69.3 | % | | (0.8 | ) | | pts |
| RevPAR | | $ | 170.71 |
| | $ | 167.28 |
| | 2.1 |
| | % |
| Total RevPAR | | $ | 297.81 |
| | $ | 280.06 |
| | 6.3 |
| | % |
| Property EBITDA Margin | | 12.7 | % | | 12.4 | % | | 0.3 |
| | pts |
| | | | | | | | | |
| Total United States Resorts (as of March 31, 2014) |
| 7 Properties | | | | | | | | |
| 2,918 Rooms | | | | | | | | |
| | | Three Months Ended March 31, | | |
| | | 2014 | | 2013 | | Change | | |
| ADR | | $ | 340.51 |
| | $ | 320.04 |
| | 6.4 |
| | % |
| Average Occupancy | | 69.4 | % | | 66.2 | % | | 3.2 |
| | pts |
| RevPAR | | $ | 236.33 |
| | $ | 211.79 |
| | 11.6 |
| | % |
| Total RevPAR | | $ | 522.86 |
| | $ | 467.10 |
| | 11.9 |
| | % |
| Property EBITDA Margin | | 26.9 | % | | 23.3 | % | | 3.6 |
| | pts |
|
| | |
| | | Supplemental Financial Information |
| Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | March 31, 2014 |
2014 Guidance
(in millions, except per share data)
|
| | | | | | |
| | | Year Ended December 31, 2014 |
| Operational Guidance | | Low Range | | High Range |
| Total United States Portfolio Total RevPAR growth | | 5.0 | % | | 7.0 | % |
| Total United States Portfolio RevPAR growth | | 5.0 | % | | 7.0 | % |
|
| | | | | | | | |
| | | Year Ended December 31, 2014 |
| Comparable EBITDA Guidance | | Low Range | | High Range |
| Net income attributable to common shareholders | | $ | 221.4 |
| | $ | 241.4 |
|
| Depreciation and amortization | | 118.4 |
| | 118.4 |
|
| Interest expense | | 76.8 |
| | 76.8 |
|
| Income taxes | | 2.0 |
| | 2.0 |
|
| Noncontrolling interests | | 1.1 |
| | 1.1 |
|
| Adjustments from consolidated affiliates | | (16.1 | ) | | (16.1 | ) |
| Adjustments from unconsolidated affiliates | | 17.2 |
| | 17.2 |
|
| Preferred shareholder dividends | | 17.6 |
| | 17.6 |
|
| Preferred stock redemption liability | | 3.7 |
| | 3.7 |
|
| Realized portion of deferred gain on sale-leasebacks | | (0.2 | ) | | (0.2 | ) |
| Gain on sale of asset | | (155.8 | ) | | (155.8 | ) |
| Gain on consolidation of affiliate | | (78.1 | ) | | (78.1 | ) |
| Other adjustments | | 2.0 |
| | 2.0 |
|
| Comparable EBITDA | | $ | 210.0 |
| | $ | 230.0 |
|
|
| | | | | | | | |
| | | Year Ended December 31, 2014 |
| Comparable FFO Guidance | | Low Range | | High Range |
| Net income attributable to common shareholders | | $ | 221.4 |
| | $ | 241.4 |
|
| Depreciation and amortization | | 117.5 |
| | 117.5 |
|
| Realized portion of deferred gain on sale-leasebacks | | (0.2 | ) | | (0.2 | ) |
| Gain on sale of asset | | (155.8 | ) | | (155.8 | ) |
| Gain on consolidation of affiliate | | (78.1 | ) | | (78.1 | ) |
| Noncontrolling interests | | 0.9 |
| | 0.9 |
|
| Adjustments from consolidated affiliates | | (8.6 | ) | | (8.6 | ) |
| Adjustments from unconsolidated affiliates | | 9.2 |
| | 9.2 |
|
| Interest rate swap OCI amortization | | 8.9 |
| | 8.9 |
|
| Preferred stock redemption liability | | 3.7 |
| | 3.7 |
|
| Impairment losses and other charges | |
|
| |
|
|
| Other adjustments | | 1.6 |
| | 1.6 |
|
| Comparable FFO | | $ | 120.5 |
| | $ | 140.5 |
|
| Comparable FFO per diluted share | | $ | 0.57 |
| | $ | 0.67 |
|
