Exhibit 99.2
Strategic Hotels & Resorts
Supplemental Financial Information
December 31, 2007
Supplemental Financial Information
December 31, 2007
TABLE OF CONTENTS
PAGE | ||
CORPORATE INFORMATION | ||
The Company | 1 | |
Board of Directors | 2 | |
Officers | 3 | |
Equity Research Coverage | 4 | |
FINANCIAL HIGHLIGHTS | ||
Supplemental Financial Data | 5 | |
Consolidated Statements of Operations | 6 | |
Consolidated Balance Sheets | 7 | |
Discontinued Operations | 8 | |
Investment in the Hotel del Coronado | 9 | |
Summary of Residential Activity | 10 | |
Non-GAAP Financial Measures | 11 | |
Reconciliation of Net Income (Loss) Available to Common Shareholders to EBITDA, Adjusted EBITDA and Comparable EBITDA | 12 | |
Reconciliation of Net Income (Loss) Available to Common Shareholders to | ||
Funds From Operations (FFO), FFO—Fully Diluted and Comparable FFO | 13 | |
Debt Summary | 14 | |
Summary of 2007 Financing Transactions | 15 | |
PORTFOLIO DATA | ||
Portfolio at December 31, 2007 | 16 | |
Under Construction and Completed Capital Projects | 17 | |
Seasonality by Geographic Region | 18 | |
Operating Statistics by Geographic Region | 19 | |
Selected Financial and Operating Information by Property | 20-24 | |
Reconciliation of Property EBITDA to EBITDA | 25 | |
Reconciliation of Property EBITDA to Comparable EBITDA | 26 | |
2008 GUIDANCE | ||
2008 Guidance | 27 |
Supplemental Financial Information
December 31, 2007
CORPORATE INFORMATION
The Company
Strategic Hotels & Resorts Inc. (SHR) is an industry-leading owner and asset manager of high-end hotels and resorts. We own a quality portfolio of upper upscale and luxury hotels and resorts in desirable North American and European locations. Our portfolio is made up of 20 properties totaling 9,044 rooms. We own 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.
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 will provide attractive returns for our shareholders.
Strategic Hotels & Resorts 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 Employees:
61
Corporate Headquarters:
200 West Madison Street, Suite 1700
Chicago, IL 60606
(312) 658-5000
Company Contacts:
James Mead
Chief Financial Officer
(312) 658-5000
Ryan Bowie
Vice President and Treasurer
(312) 658-5000
1
Supplemental Financial Information
December 31, 2007
Board of Directors
William A. Prezant
Chairman of the Board, Corporate Governance and Nominating Committee and Executive Committee
Laurence S. Geller
Director, President and Chief Executive Officer
Robert P. Bowen
Director and Chairman of the Audit Committee
James A. Jeffs
Director and Chairman of the Compensation Committee
Michael W. Brennan
Director
Edward C. Coppola
Director
Kenneth Fisher
Director
Sir David M.C. Michels
Director
2
Supplemental Financial Information
December 31, 2007
Officers
Laurence S. Geller
President and Chief Executive Officer
James E. Mead
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Richard J. Moreau
Executive Vice President, Asset Management
Jayson C. Cyr
Senior Vice President, Internal Audit
John F. Gray
Senior Vice President, Capital Projects
Paula C. Maggio
Senior Vice President, Secretary and General Counsel
Robert T. McAllister
Senior Vice President, Tax
Patricia A. Needham
Senior Vice President and Assistant Secretary
John K.T. Barrett
Vice President, Asset Management
Ryan M. Bowie
Vice President and Treasurer
Stephen M. Briggs
Vice President, Controller (Principal Accounting Officer)
D. Robert Britt
Vice President, Asset Management
Michael A. Dalton
Vice President, Design
Thomas G. Healy
Vice President, Asset Management
David R. Hogin
Vice President, Asset Management
Michael E. Nelson
Vice President, Asset Management
John C. Nicolls
Vice President, Capital Projects
Janice J. Peterson
Vice President, Human Capital
Cory P. Warning
Vice President, Development
3
Supplemental Financial Information
December 31, 2007
Equity Research Coverage
Firm | Analyst | Telephone | ||
Citigroup Investment Research | Joshua Attie | (212) 816-1533 | ||
Deutsche Bank North America | Chris Woronka | (212) 250-5815 | ||
Goldman, Sachs & Co. | Steven Kent | (212) 902-6752 | ||
Green Street Advisors, Inc. | John Arabia | (949) 640-8780 | ||
JMP Securities | Will Marks | (415) 835-8944 | ||
Keefe, Bruyette & Woods | Smedes Rose | (212) 887-3696 | ||
Raymond James & Associates | William Crow | (727) 567-2594 | ||
RBC Capital Markets Corp. | Mike Salinsky | (216) 378-7627 | ||
Stifel Nicolaus | Rod Petrik | (410) 454-4131 | ||
UBS Securities LLC | William Truelove | (212) 713-8825 | ||
Wachovia Securities | Jeffrey Donnelly | (617) 603-4262 |
Strategic Hotels & Resorts is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Strategic Hotels & Resorts' performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Strategic Hotels & Resorts or its management. Strategic Hotels & Resorts does not by its reference here imply its endorsement of, or concurrence with, such information, conclusions or recommendations.
4
Supplemental Financial Information
December 31, 2007
FINANCIAL HIGHLIGHTS
Supplemental Financial Data
(in millions, except per share information)
Three Months Ended December 31, 2007 | Year Ended December 31, 2007 | |||||||||||||||
Results vs. Previous Guidance | Actual | Guidance | Actual | Guidance | ||||||||||||
North American same store Total RevPAR growth | 7.5 | % | 5.0% - 6.0 | % | 9.9 | % | 8.5% - 9.5 | % | ||||||||
North American same store RevPAR growth | 7.2 | % | 7.0% - 8.0 | % | 9.5 | % | 8.5% - 9.5 | % | ||||||||
Total North American Total RevPAR growth | 7.5 | % | 5.0% - 6.0 | % | 7.4 | % | 6.5% - 7.5 | % | ||||||||
Total North American RevPAR growth | 7.2 | % | 7.0% - 8.0 | % | 7.4 | % | 7.0% - 8.0 | % | ||||||||
Comparable EBITDA | $ | 68.3 | $ | 65.0 - 68.0 | $ | 273.5 | $ | 270.3 - 273.3 | ||||||||
Comparable FFO per diluted share | $ | 0.43 | $ | 0.40 - 0.44 | $ | 1.64 | $ | 1.60 - 1.64 | ||||||||
(in thousands, except per share information) | ||||||||||||||||
December 31, 2007 | ||||||||||||||||
Capitalization | Pro Rata Share | Consolidated | ||||||||||||||
Common shares outstanding | 74,371 | 74,371 | ||||||||||||||
Operating partnership units outstanding | 976 | 976 | ||||||||||||||
Stock options outstanding | 736 | 736 | ||||||||||||||
Restricted stock units outstanding | 1,059 | 1,059 | ||||||||||||||
Combined shares, options and units outstanding | 77,142 | 77,142 | ||||||||||||||
Common stock price at end of period | $ | 16.73 | $ | 16.73 | ||||||||||||
Common equity capitalization | $ | 1,290,586 | $ | 1,290,586 | ||||||||||||
Preferred equity capitalization | 370,236 | 370,236 | ||||||||||||||
Consolidated debt | 1,652,090 | 1,652,090 | ||||||||||||||
Pro rata share of unconsolidated debt | 274,500 | — | ||||||||||||||
Pro rata share of consolidated debt | (107,065 | ) | — | |||||||||||||
Cash and cash equivalents | (111,494 | ) | (111,494 | ) | ||||||||||||
Total enterprise value | $ | 3,368,853 | $ | 3,201,418 | ||||||||||||
Net Debt / Total Enterprise Value | 50.7% | 48.1% | ||||||||||||||
Preferred Equity / Total Enterprise Value | 11.0% | 11.6% | ||||||||||||||
Common Equity / Total Enterprise Value | 38.3% | 40.3% | ||||||||||||||
Dividends Per Share | ||||||||||||||||
Common dividends declared (holders of record on each of March 27, June 26, September 26 and December 27, 2007) |
| $ | 0.24 | |||||||||||||
Preferred Series A dividends declared (holders of record on March 16, June 15, September 14 and December 17, 2007) |
| $ | 0.53125 | |||||||||||||
Preferred Series B dividends declared (holders of record on March 16, June 15, September 14 and December 17, 2007) |
| $ | 0.51563 | |||||||||||||
Preferred Series C dividends declared (holders of record on March 16, June 15, September 14 and December 17, 2007) |
| $ | 0.51563 | |||||||||||||
5
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Revenues: | ||||||||||||||||
Rooms | $ | 135,257 | $ | 122,247 | $ | 532,109 | $ | 381,019 | ||||||||
Food and beverage | 96,941 | 88,505 | 342,468 | 244,007 | ||||||||||||
Other hotel operating revenue | 30,465 | 26,916 | 110,010 | 73,304 | ||||||||||||
262,663 | 237,668 | 984,587 | 698,330 | |||||||||||||
Lease revenue | 6,076 | 4,550 | 23,405 | 20,257 | ||||||||||||
Total revenues | 268,739 | 242,218 | 1,007,992 | 718,587 | ||||||||||||
Operating Costs and Expenses: | ||||||||||||||||
Rooms | 33,310 | 31,173 | 130,784 | 94,764 | ||||||||||||
Food and beverage | 63,390 | 60,516 | 231,407 | 170,054 | ||||||||||||
Other departmental expenses | 66,003 | 61,692 | 248,815 | 181,436 | ||||||||||||
Management fees | 10,133 | 10,485 | 39,264 | 26,774 | ||||||||||||
Other hotel expenses | 17,909 | 16,541 | 67,975 | 44,526 | ||||||||||||
Lease expense | 4,048 | 3,265 | 15,700 | 13,682 | ||||||||||||
Depreciation and amortization | 27,683 | 25,778 | 106,091 | 75,135 | ||||||||||||
Corporate expenses | 9,109 | 7,030 | 30,179 | 25,383 | ||||||||||||
Other charges | 14 | — | 7,372 | — | ||||||||||||
Total operating costs and expenses | 231,599 | 216,480 | 877,587 | 631,754 | ||||||||||||
Operating income | 37,140 | 25,738 | 130,405 | 86,833 | ||||||||||||
Interest expense | (23,889 | ) | (20,766 | ) | (88,906 | ) | (50,973 | ) | ||||||||
Interest income | 885 | 645 | 2,775 | 3,961 | ||||||||||||
Loss on early extinguishment of debt | — | (2,150 | ) | (10,268 | ) | (2,150 | ) | |||||||||
Equity in earnings (losses) of joint ventures | 132 | (1,320 | ) | 8,344 | (1,066 | ) | ||||||||||
Foreign currency exchange (loss) gain | (156 | ) | 627 | (3,701 | ) | 756 | ||||||||||
Other (expenses) income, net | (835 | ) | 85 | (584 | ) | 3,596 | ||||||||||
Income before income taxes, minority interests, gain on sale of minority interests in hotel properties and discontinued operations | 13,277 | 2,859 | 38,065 | 40,957 | ||||||||||||
Income tax expense | (179 | ) | (627 | ) | (9,714 | ) | (3,946 | ) | ||||||||
Minority interest in SHR’s operating partnership | (230 | ) | (14 | ) | (413 | ) | (741 | ) | ||||||||
Minority interest in consolidated affiliates | (535 | ) | (32 | ) | (1,363 | ) | (763 | ) | ||||||||
Income before gain on sale of minority interests in hotel properties and discontinued operations | 12,333 | 2,186 | 26,575 | 35,507 | ||||||||||||
(Loss) gain on sale of minority interests in hotel properties | (134 | ) | — | 84,658 | — | |||||||||||
Income from continuing operations | 12,199 | 2,186 | 111,233 | 35,507 | ||||||||||||
Income (loss) from discontinued operations, net of tax and minority interests | 947 | (850 | ) | (42,075 | ) | 84,622 | ||||||||||
Net income | 13,146 | 1,336 | 69,158 | 120,129 | ||||||||||||
Preferred shareholder dividends | (7,722 | ) | (7,462 | ) | (30,107 | ) | (24,543 | ) | ||||||||
Net income (loss) available to common shareholders | $ | 5,424 | $ | (6,126 | ) | $ | 39,051 | $ | 95,586 | |||||||
Basic Income Per Share: | ||||||||||||||||
Income (loss) from continuing operations available to common shareholders per share | $ | 0.06 | $ | (0.07 | ) | $ | 1.08 | $ | 0.16 | |||||||
Income (loss) from discontinued operations per share | 0.01 | (0.01 | ) | (0.56 | ) | 1.24 | ||||||||||
Net income (loss) available to common shareholders per share | $ | 0.07 | $ | (0.08 | ) | $ | 0.52 | $ | 1.40 | |||||||
Weighted-average common shares outstanding | 74,803 | 75,713 | 75,075 | 68,286 | ||||||||||||
Diluted Income Per Share: | ||||||||||||||||
Income (loss) from continuing operations available to common shareholders per share | $ | 0.06 | $ | (0.07 | ) | $ | 1.08 | $ | 0.16 | |||||||
Income (loss) from discontinued operations per share | 0.01 | (0.01 | ) | (0.56 | ) | 1.23 | ||||||||||
Net income (loss) available to common shareholders per share | $ | 0.07 | $ | (0.08 | ) | $ | 0.52 | $ | 1.39 | |||||||
Weighted-average common shares outstanding | 75,001 | 75,713 | 75,324 | 68,569 | ||||||||||||
6
Supplemental Financial Information
December 31, 2007 and 2006
Consolidated Balance Sheets
(in thousands, except share data)
Years Ended December 31, | ||||||||
2007 | 2006 | |||||||
Assets | ||||||||
Investment in hotel properties, net | $ | 2,427,273 | $ | 2,375,129 | ||||
Goodwill | 462,536 | 421,516 | ||||||
Intangible assets, net of accumulated amortization of $3,271 and $3,166 | 45,420 | 45,793 | ||||||
Investment in joint ventures | 78,801 | 71,349 | ||||||
Cash and cash equivalents | 111,494 | 86,462 | ||||||
Restricted cash and cash equivalents | 39,161 | 73,400 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $1,965 and $809 | 82,217 | 70,282 | ||||||
Deferred financing costs, net of accumulated amortization of $4,809 and $2,194 | 14,868 | 10,701 | ||||||
Deferred tax assets | 41,790 | 43,555 | ||||||
Other assets | 62,736 | 57,522 | ||||||
Total assets | $ | 3,366,296 | $ | 3,255,709 | ||||
Liabilities and Shareholders' Equity | ||||||||
Liabilities: | ||||||||
Mortgages and other debt payable | $ | 1,363,855 | $ | 1,442,865 | ||||
Exchangeable senior notes, net of discount | 179,235 | — | ||||||
Bank credit facility | 109,000 | 115,000 | ||||||
Accounts payable and accrued expenses | 266,324 | 186,293 | ||||||
Distributions payable | 18,179 | 18,175 | ||||||
Deferred tax liabilities | 36,407 | 24,390 | ||||||
Deferred gain on sale of hotels | 114,292 | 107,474 | ||||||
Insurance proceeds received in excess of insurance recoveries receivable | — | 20,794 | ||||||
Total liabilities | 2,087,292 | 1,914,991 | ||||||
Minority interests in SHR’s operating partnership | 11,512 | 12,463 | ||||||
Minority interests in consolidated affiliates | 30,653 | 10,965 | ||||||
Shareholders' equity: | ||||||||
8.50% Series A Cumulative Redeemable Preferred Stock ($0.01 par value; 4,488,750 and 4,000,000 shares issued and outstanding; liquidation preference $25.00 per share) | 108,206 | 97,553 | ||||||
8.25% Series B Cumulative Redeemable Preferred Stock ($0.01 par value; 4,600,000 shares issued and outstanding; liquidation preference $25.00 per share) | 110,775 | 110,775 | ||||||
8.25% Series C Cumulative Redeemable Preferred Stock ($0.01 par value; 5,750,000 shares issued and outstanding; liquidation preference $25.00 per share) | 138,940 | 138,940 | ||||||
Common shares ($0.01 par value; 150,000,000 common shares authorized; 74,371,230 and 75,406,727 common shares issued and outstanding) | 742 | 753 | ||||||
Additional paid-in capital | 1,201,503 | 1,224,400 | ||||||
Accumulated deficit | (304,922 | ) | (265,435 | ) | ||||
Accumulated other comprehensive (loss) income | (18,405 | ) | 10,304 | |||||
Total shareholders' equity | 1,236,839 | 1,317,290 | ||||||
Total liabilities and shareholders' equity | $ | 3,366,296 | $ | 3,255,709 | ||||
7
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
Discontinued Operations
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 2006 and 2007 (in thousands):
Hotel | Date Sold | Net Sales Proceeds | |||
Hyatt Regency New Orleans | December 28, 2007 | $ | 28,047 | ||
Hilton Burbank Airport | September 7, 2006 | $ | 123,321 | ||
Marriott Rancho Las Palmas Resort | July 14, 2006 | $ | 54,774 |
The following is a summary of income (loss) from discontinued operations for the three months and years ended December 31, 2007 and 2006 (in thousands):
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Hotel operating revenues | $ | 96 | $ | 331 | $ | 384 | $ | 43,608 | ||||||||
Operating costs and expenses | (1,691 | ) | 1,170 | 307 | 46,331 | |||||||||||
Depreciation and amortization | — | — | — | 2,535 | ||||||||||||
Impairment losses | — | — | 37,716 | — | ||||||||||||
Total operating costs and expenses | (1,691 | ) | 1,170 | 38,023 | 48,866 | |||||||||||
Operating income (loss) | 1,787 | (839 | ) | (37,639 | ) | (5,258 | ) | |||||||||
Interest expense | — | 29 | (823 | ) | (1,993 | ) | ||||||||||
Interest income | — | 354 | 998 | 433 | ||||||||||||
Loss on early extinguishment of debt | — | (63 | ) | (4,871 | ) | (1,000 | ) | |||||||||
Other expenses, net | — | — | — | 48 | ||||||||||||
Income tax (expense) benefit | (828 | ) | 64 | (289 | ) | 4,607 | ||||||||||
(Loss) gain on sale | — | (407 | ) | — | 88,871 | |||||||||||
Minority interest | (12 | ) | 12 | 549 | (1,086 | ) | ||||||||||
Income (loss) from discontinued operations | $ | 947 | $ | (850 | ) | $ | (42,075 | ) | $ | 84,622 | ||||||
8
Supplemental Financial Information
December 31, 2007
Investment in the Hotel del Coronado
(in thousands)
On January 9, 2006, we purchased a 45% interest in the joint venture that owns the Hotel del Coronado. We account for this investment using the equity method of accounting.
Three Months Ended December 31, | Year Ended December 31, | Period from January 9, to December 31, | ||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Total revenues (100%) | $ | 33,409 | $ | 31,221 | $ | 141,404 | $ | 132,480 | ||||||||
Property EBITDA (100%) | $ | 11,226 | $ | 10,595 | $ | 52,926 | $ | 52,073 | ||||||||
Equity in earnings (loss) of joint venture (SHR 45% ownership) | ||||||||||||||||
Property EBITDA | $ | 5,052 | $ | 4,768 | $ | 23,817 | $ | 23,433 | ||||||||
Depreciation and amortization | (1,707 | ) | (1,367 | ) | (6,844 | ) | (5,151 | ) | ||||||||
Loss on sale of assets | 3 | (169 | ) | (239 | ) | (169 | ) | |||||||||
Interest expense | (5,225 | ) | (5,027 | ) | (20,943 | ) | (19,304 | ) | ||||||||
Other (expense) income, net | (99 | ) | 13 | (227 | ) | (115 | ) | |||||||||
Income taxes | 175 | 500 | (545 | ) | (400 | ) | ||||||||||
Equity in losses of joint venture | $ | (1,801 | ) | $ | (1,282 | ) | $ | (4,981 | ) | $ | (1,706 | ) | ||||
EBITDA Contribution from investment in Hotel del Coronado | ||||||||||||||||
Equity in losses of joint venture | $ | (1,801 | ) | $ | (1,282 | ) | $ | (4,981 | ) | $ | (1,706 | ) | ||||
Depreciation and amortization | 1,707 | 1,367 | 6,844 | 5,151 | ||||||||||||
Interest expense | 5,225 | 5,027 | 20,943 | 19,304 | ||||||||||||
Income taxes | (175 | ) | (500 | ) | 545 | 400 | ||||||||||
EBITDA Contribution for investment in Hotel del Coronado | $ | 4,956 | $ | 4,612 | $ | 23,351 | $ | 23,149 | ||||||||
FFO Contribution from investment in Hotel del Coronado | ||||||||||||||||
Equity in losses of joint venture | $ | (1,801 | ) | $ | (1,282 | ) | $ | (4,981 | ) | $ | (1,706 | ) | ||||
Depreciation and amortization | 1,707 | 1,367 | 6,844 | 5,151 | ||||||||||||
FFO Contribution for investment in Hotel del Coronado | $ | (94 | ) | $ | 85 | $ | 1,863 | $ | 3,445 | |||||||
Debt | Interest Rate | Spread over | Loan Amount | Maturity Date | ||||||
CMBS Mortgage and Mezzanine | 6.68 | % | 208 bp | $ | 610,000 | January 2011 (a) | ||||
Revolving Credit Facility | 7.10 | % | 250 bp | — | January 2011 (a) | |||||
610,000 | ||||||||||
Cash and cash equivalents | 12,292 | |||||||||
Net Debt | $ | 597,708 | ||||||||
(a) Includes extension options. |
Cap | Effective Date | LIBOR Cap Rate | Notional Amount | Maturity | |||||
CMBS Mortgage and Mezzanine Loan and Revolving Credit Facility Cap | January 2006 | 5.0% to January 2008 5.5% January 2008 to maturity | $ | 630,000 | January 2009 | ||||
CMBS Mortgage and Mezzanine Loan and Revolving Credit Facility Cap | January 2009 | 5.0% | $ | 630,000 | January 2011 |
9
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
Summary of Residential Activity
(in thousands)
On January 9, 2006, we purchased a 45% interest in a joint venture that owns the North Beach Venture development adjacent to the Hotel del Coronado. We account for this investment using the equity method of accounting. We own a 31% interest in a joint venture that is developing the Four Seasons Residence Club Punta Mita (RCPM) adjacent to the Four Seasons Punta Mita Resort. We account for this investment using the equity method of accounting. In addition, we engage in certain activities related to potential development projects such as condominium-hotel units, fractional ownership units and other for-sale residential units. During the third quarter of 2007, a potential condominium-hotel project at the Fairmont Chicago was delayed indefinitely due to market conditions. We recorded a charge of $1.2 million related to the costs of this project.
Three Months Ended December 31, | Year Ended December 31, | Period from January 9, to December 31, | ||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
North Beach Venture | ||||||||||||||||
Hotel condominium sales (100%) | $ | 15,405 | $ | — | $ | 110,212 | $ | — | ||||||||
Hotel condominium cost of sales (100%) | $ | (11,575 | ) | $ | — | $ | (77,223 | ) | $ | — | ||||||
SHR’s 45% share | ||||||||||||||||
Hotel condominium sales | $ | 6,932 | $ | — | $ | 49,595 | $ | — | ||||||||
Hotel condominium cost of sales | (5,209 | ) | — | (34,750 | ) | — | ||||||||||
Other income (expense), net | 136 | 24 | 186 | (70 | ) | |||||||||||
Income taxes | (775 | ) | — | (6,475 | ) | — | ||||||||||
SHR’s share of net income (loss) | $ | 1,084 | $ | 24 | $ | 8,556 | $ | (70 | ) | |||||||
Net income (loss) | $ | 1,084 | $ | 24 | $ | 8,556 | $ | (70 | ) | |||||||
Income taxes | 775 | — | 6,475 | — | ||||||||||||
EBITDA Contribution for investment in North Beach Venture | $ | 1,859 | $ | 24 | $ | 15,031 | $ | (70 | ) | |||||||
FFO Contribution for investment in North Beach Venture | $ | 1,084 | $ | 24 | $ | 8,556 | $ | (70 | ) | |||||||
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Residence Club Punta Mita (RCPM) | ||||||||||||||||
SHR’s 31% share | ||||||||||||||||
Sales | $ | 1,264 | $ | 1,515 | $ | 3,366 | $ | 4,912 | ||||||||
EBITDA Contribution for investment in RCPM | $ | 455 | $ | (45 | ) | $ | 528 | $ | 641 | |||||||
FFO Contribution for investment in RCPM | $ | 281 | $ | (62 | ) | $ | 232 | $ | 286 | |||||||
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Other Residential Activity | $ | — | $ | — | $ | (1,184 | ) | $ | — | |||||||
SHR’s share of total residential activity: | ||||||||||||||||
Sales | $ | 8,196 | $ | 1,515 | $ | 52,961 | $ | 4,912 | ||||||||
EBITDA | $ | 2,314 | $ | (21 | ) | $ | 14,375 | $ | 571 | |||||||
FFO | $ | 1,365 | $ | (38 | ) | $ | 7,604 | $ | 216 | |||||||
10
Supplemental Financial Information
December 31, 2007
Non-GAAP Financial Measures
In addition to REIT hotel income, six other non-GAAP financial measures are presented for the Company 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); Adjusted EBITDA; and Comparable EBITDA. A reconciliation of these measures to net income (loss) available to common shareholders, the most directly comparable GAAP measure, is set forth in the following tables.
We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which 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 plus real estate-related depreciation and amortization, and after adjustments for our portion of these items related to unconsolidated partnerships and joint ventures. We also present FFO - Fully Diluted, which is FFO plus minority interest expense on convertible minority interests. 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 other non-recurring charges. 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. Comparable FFO per diluted share, in accordance with NAREIT, is adjusted for the effects of dilutive securities. Dilutive securities may include shares granted under share-based compensation plans, operating partnership units and exchangeable debt securities. No effect is shown for securities that are anti-dilutive.
EBITDA represents net income (loss) available to common shareholders excluding: (i) interest expense, (ii) income tax expense, including deferred income tax benefits and expenses applicable to our foreign subsidiaries and income taxes applicable to sale of assets; and (iii) depreciation and amortization. EBITDA also excludes interest expense, income tax expense and depreciation and amortization of our equity method investments. EBITDA is presented on a full participation basis, which means we have assumed conversion of all convertible minority interests of our operating partnership into our common stock and includes preferred dividends. We believe this treatment of minority interest provides more useful information for management and our investors and appropriately considers our current capital structure. We also present Adjusted EBITDA, which eliminates the effect of realizing deferred gains on our sale leasebacks. We also present Comparable EBITDA, which eliminates the effect of gains or losses on sales of assets, early extinguishment of debt, impairment losses, foreign currency exchange gains or losses and other non-recurring charges. We believe EBITDA, Adjusted 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, Adjusted EBITDA and Comparable EBITDA as measures in determining the value of acquisitions and dispositions.
We caution investors that amounts presented in accordance with our definitions of FFO, FFO - Fully Diluted, Comparable FFO, EBITDA, Adjusted 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, Adjusted EBITDA and Comparable EBITDA should not be considered as an alternative measure of our net income or operating performance. FFO, FFO - Fully Diluted, Comparable FFO, EBITDA, Adjusted 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, Adjusted 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 (loss) available to common shareholders. In addition, you should be aware that adverse economic and market conditions might negatively impact our cash flow. Below, we have provided a quantitative reconciliation of FFO, FFO - Fully Diluted, Comparable FFO, EBITDA, Adjusted EBITDA and Comparable EBITDA to the most directly comparable GAAP financial performance measure, which is net income (loss) available to common shareholders, and provide an explanatory description by footnote of the items excluded from FFO, FFO - Fully Diluted, EBITDA and Adjusted EBITDA.
11
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
Reconciliation of Net Income (Loss) Available to Common Shareholders to EBITDA, Adjusted EBITDA
and Comparable EBITDA
(in thousands)
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Net income (loss) available to common shareholders | $ | 5,424 | $ | (6,126 | ) | $ | 39,051 | $ | 95,586 | |||||||
Depreciation and amortization - continuing operations | 27,683 | 25,778 | 106,091 | 75,135 | ||||||||||||
Depreciation and amortization - discontinued operations | — | — | — | 2,535 | ||||||||||||
Interest expense - continuing operations | 23,889 | 20,766 | 88,906 | 50,973 | ||||||||||||
Interest expense - discontinued operations | — | (29 | ) | 823 | 1,993 | |||||||||||
Income taxes - continuing operations | 179 | 627 | 9,714 | 3,946 | ||||||||||||
Income taxes - discontinued operations | 828 | (64 | ) | 289 | (4,607 | ) | ||||||||||
Minority interests | 243 | 3 | (135 | ) | 1,827 | |||||||||||
Adjustments from consolidated affiliates | (2,367 | ) | (1,014 | ) | (5,063 | ) | (4,310 | ) | ||||||||
Adjustments from unconsolidated affiliates | 7,155 | 5,912 | 30,603 | 27,431 | ||||||||||||
Preferred shareholder dividends | 7,722 | 7,462 | 30,107 | 24,543 | ||||||||||||
EBITDA | 70,756 | 53,315 | 300,386 | 275,052 | ||||||||||||
Realized portion of deferred gain on sale leasebacks | (1,319 | ) | (1,189 | ) | (4,847 | ) | (4,405 | ) | ||||||||
Adjusted EBITDA | 69,437 | 52,126 | 295,539 | 270,647 | ||||||||||||
Gain on sale of assets - continuing operations | (18 | ) | — | (18 | ) | (48 | ) | |||||||||
Loss (gain) on sale of assets - discontinued operations | — | 407 | — | (88,871 | ) | |||||||||||
Loss (gain) on sale of minority interests in hotel properties | 134 | — | (84,658 | ) | — | |||||||||||
(Gain) loss on sale of assets - unconsolidated affiliates | (4 | ) | 169 | 239 | 169 | |||||||||||
Corporate depreciation | (265 | ) | — | (265 | ) | — | ||||||||||
Other charges - continuing operations | 14 | — | 7,372 | — | ||||||||||||
Impairment losses - discontinued operations | — | — | 37,716 | — | ||||||||||||
Foreign currency exchange loss (gain) (a) | 156 | (627 | ) | 3,701 | (756 | ) | ||||||||||
Hyatt Regency La Jolla minority interest (b) | (1,127 | ) | — | (1,127 | ) | — | ||||||||||
Termination costs - discontinued operations (c) | — | 67 | (400 | ) | 9,851 | |||||||||||
Planning costs - New Orleans Jazz District | — | 950 | 227 | 3,005 | ||||||||||||
Loss on early extinguishment of debt - continuing operations | — | 2,150 | 10,268 | 2,150 | ||||||||||||
Loss on early extinguishment of debt - discontinued operations | — | 63 | 4,871 | 1,000 | ||||||||||||
Comparable EBITDA | $ | 68,327 | $ | 55,305 | $ | 273,465 | $ | 197,147 | ||||||||
(a) | Foreign currency exchange loss (gain) applicable to third-party and inter-company debt and certain balance sheet items held by foreign subsidiaries. |
(b) | The minority interest partner’s share of the Hyatt Regency La Jolla's property EBITDA is not deducted from net income (loss) available to common shareholders under GAAP accounting rules. |
(c) | Termination costs (benefits) included in discontinued operations related to the termination of the management agreement at the Marriott Rancho Las Palmas property. |
12
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
Reconciliation of Net Income (Loss) Available to Common Shareholders to
Funds From Operations (FFO), FFO - Fully Diluted and Comparable FFO
(in thousands, except per share data)
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Net income (loss) available to common shareholders | $ | 5,424 | $ | (6,126 | ) | $ | 39,051 | $ | 95,586 | |||||||
Depreciation and amortization - continuing operations | 27,683 | 25,778 | 106,091 | 75,135 | ||||||||||||
Depreciation and amortization - discontinued operations | — | — | — | 2,535 | ||||||||||||
Corporate depreciation | (265 | ) | — | (265 | ) | — | ||||||||||
Gain on sale of assets - continuing operations | (18 | ) | — | (18 | ) | (48 | ) | |||||||||
Loss (gain) on sale of assets - discontinued operations | — | 407 | — | (88,871 | ) | |||||||||||
Loss (gain) on sale of minority interests in hotel properties | 134 | — | (84,658 | ) | — | |||||||||||
Realized portion of deferred gain on sale leasebacks | (1,319 | ) | (1,189 | ) | (4,847 | ) | (4,405 | ) | ||||||||
Deferred tax expense on realized portion of deferred gain on sale leasebacks | 379 | 339 | 1,439 | 1,320 | ||||||||||||
Minority interests adjustments | (379 | ) | (353 | ) | (1,449 | ) | (1,761 | ) | ||||||||
Adjustments from consolidated affiliates | (1,342 | ) | (494 | ) | (2,797 | ) | (2,196 | ) | ||||||||
Adjustments from unconsolidated affiliates | 1,703 | 1,536 | 7,083 | 6,446 | ||||||||||||
FFO | 32,000 | 19,898 | 59,630 | 83,741 | ||||||||||||
Convertible minority interests | 622 | 356 | 1,314 | 3,588 | ||||||||||||
FFO - Fully Diluted | 32,622 | 20,254 | 60,944 | 87,329 | ||||||||||||
Termination costs, net of tax - discontinued operations (a) | — | 41 | (244 | ) | 6,009 | |||||||||||
Planning costs, net of tax - New Orleans Jazz District | — | 818 | 166 | 2,393 | ||||||||||||
Hyatt Regency La Jolla minority interest (b) | (329 | ) | — | (329 | ) | — | ||||||||||
Other charges - continuing operations | 14 | — | 7,372 | — | ||||||||||||
Impairment losses - discontinued operations | — | — | 37,716 | — | ||||||||||||
Foreign currency exchange loss (gain), net of tax (c) | 569 | (627 | ) | 4,062 | (756 | ) | ||||||||||
Loss on early extinguishment of debt - continuing operations | — | 2,150 | 10,268 | 2,150 | ||||||||||||
Loss on early extinguishment of debt - discontinued operations | — | 63 | 4,871 | 1,000 | ||||||||||||
Comparable FFO | $ | 32,876 | $ | 22,699 | $ | 124,826 | $ | 98,125 | ||||||||
Comparable FFO per diluted share | $ | 0.43 | $ | 0.30 | $ | 1.64 | $ | 1.40 | ||||||||
Weighted-average diluted shares (d) | 75,977 | 76,711 | 76,300 | 70,022 | ||||||||||||
(a) | Termination costs (benefits), net of tax, included in discontinued operations related to the termination of the management agreement at the Marriott Rancho Las Palmas property. |
(b) | The minority interest partner’s share of the Hyatt Regency La Jolla's property FFO is not deducted from net income (loss) available to common shareholders under GAAP accounting rules. |
(c) | Foreign currency exchange loss (gain), net of tax, applicable to third-party and inter-company debt and certain balance sheet items held by foreign subsidiaries. |
(d) | In the second quarter of 2007, we adjusted our calculation of weighed-average diluted shares to be consistent with the guidance prescribed by NAREIT. These changes had no impact on the Comparable FFO per share amounts reported in prior periods. |
13
Supplemental Financial Information
December 31, 2007
Debt Summary
(dollars in thousands)
Debt | Interest Rate | Spread (a) | Loan Amount | Maturity Date (b) | |||||||
Bank Credit Facility | 5.40 | % | 80 bp | $ | 109,000 | March 2012 | |||||
Fairmont Chicago | 5.30 | % | 70 bp | 123,750 | April 2012 | ||||||
Loews Santa Monica | 5.23 | % | 63 bp | 118,250 | March 2012 | ||||||
Ritz-Carlton Half Moon Bay | 5.27 | % | 67 bp | 76,500 | March 2012 | ||||||
InterContinental Chicago | 5.66 | % | 106 bp | 121,000 | October 2011 | ||||||
InterContinental Miami | 5.33 | % | 73 bp | 90,000 | October 2011 | ||||||
InterContinental Prague (c) | 5.54 | % | 125 bp | (c) | 151,812 | March 2012 | |||||
Westin St. Francis | 5.30 | % | 70 bp | 220,000 | August 2011 | ||||||
Marriott London Grosvenor Square (d) | 7.09 | % | 110 bp | (d) | 153,496 | October 2013 | |||||
Fairmont Scottsdale | 5.16 | % | 56 bp | 180,000 | September 2011 | ||||||
Hyatt Regency LaJolla | 5.60 | % | 100 bp | 97,500 | September 2012 | ||||||
Punta Mita land parcel promissory notes | N/A | N/A | 31,547 | August 2008 and 2009 | |||||||
Exchangeable senior notes | 3.50 | % | Fixed | 179,235 | April 2012 | ||||||
$ | 1,652,090 | ||||||||||
(a) | Spread over LIBOR (4.60% at December 31, 2007). |
(b) | Includes extension options. |
(c) | Principal balance of €104,000,000 at December 31, 2007. Spread over EURIBOR (4.29% at December 31, 2007). |
(d) | Principal balance of £77,250,000 at December 31, 2007. Spread over three-month GBP LIBOR (5.99% at December 31, 2007). |
U.S. Interest Rate Swaps
Swap Effective Date | Fixed Pay Rate Against LIBOR | Notional Amount | Maturity | |||||
April 2005 | 4.42 | % | $ | 75,000 | April 2010 | |||
April 2005 | 4.59 | % | $ | 75,000 | April 2012 | |||
June 2005 | 4.12 | % | $ | 50,000 | June 2012 | |||
June 2006 | 5.50 | % | $ | 75,000 | June 2013 | |||
August 2006 | 5.34 | % | $ | 100,000 | August 2011 | |||
August 2006 | 5.42 | % | $ | 100,000 | August 2013 | |||
September 2006 | 5.08 | % | $ | 100,000 | February 2011 | |||
September 2006 | 5.10 | % | $ | 100,000 | December 2010 | |||
September 2006 | 5.09 | % | $ | 100,000 | September 2009 | |||
March 2007 | 4.81 | % | $ | 100,000 | December 2009 | |||
March 2007 | 4.84 | % | $ | 100,000 | July 2012 | |||
4.99 | % | $ | 975,000 | |||||
European Interest Rate Swap
Swap Effective Date | Fixed Pay Rate Against GBP LIBOR | Notional Amount | Maturity | |||||
October 2007 | 5.72 | % | £ | 77,250 | October 2013 |
Forward-Starting Interest Rate Swaps
Swap Effective Date | Fixed Pay Rate Against LIBOR | Notional Amount | Maturity | |||||
September 2009 | 4.90 | % | $ | 100,000 | September 2014 | |||
December 2009 | 4.96 | % | $ | 100,000 | December 2014 | |||
April 2010 | 5.42 | % | $ | 75,000 | April 2015 | |||
December 2010 | 5.23 | % | $ | 100,000 | December 2015 | |||
February 2011 | 5.27 | % | $ | 100,000 | February 2016 | |||
$ | 475,000 | |||||||
At December 31, 2007, future scheduled debt principal payments (including extension options) are as follows:
Years ended December 31, | Amount (in thousands) | ||
2008 | $ | 16,480 | |
2009 | 15,067 | ||
2010 | 8,648 | ||
2011 | 619,648 | ||
2012 | 851,031 | ||
Thereafter | 141,216 | ||
Total | $ | 1,652,090 | |
Percent of fixed rate debt including U.S. and European swaps | 81.1 | % | |
Weighted average interest rate including U.S. and European swaps | 5.43 | % | |
Weighted average maturity of fixed rate debt | 5.47 |
14
Supplemental Financial Information
December 31, 2007
Summary of 2007 Financing Transactions
On March 7, 2007, we completed a draw of €104.0 million on a new facility secured by the InterContinental Prague hotel. Proceeds from the draw were used to retire the existing mortgage loan principal of €66.0 million and to repay £20.0 million of the £77.3 million loan secured by the Marriott London Grosvenor Square hotel.
On March 9, 2007, we replaced the previous bank credit facility with a new revolving loan up to $415.0 million and amended the agreement in April 2007 to increase the borrowing capacity to $500.0 million.
On March 9, 2007 we repaid the $292.5 million outstanding balance on the CMBS Floating Rate debt.
On March 9, 2007, we entered into $76.5 million, $118.3 million, and $123.8 million mortgage loans secured by the Ritz-Carlton Half Moon Bay, the Loews Santa Monica and the Fairmont Chicago hotels, respectively.
On March 9, 2007, we repaid the $90.0 million mezzanine loan secured by our equity interests in the Fairmont Scottsdale Princess hotel.
On March 9, 2007, we purchased interest rate caps with notional amounts covering the entire $76.5 million and $118.3 million of the mortgages secured by the Ritz-Carlton Half Moon Bay and Loews Santa Monica Beach hotels, respectively with cap rates of 6.50%.
In April 2007, we completed a $180.0 million private placement of 3.50% exchangeable notes. In connection with the issuance of the exchangeable notes, we purchased call options for $9.9 million, which will generally reduce the potential dilution upon exchange of the notes. In addition, we used $25.0 million of the proceeds to acquire approximately 1.1 million common shares.
On May 15, 2007, we repaid the $8.6 million outstanding on the Ritz-Carlton Laguna Niguel assumed loan.
On August 23, 2007, we defeased the $199.5 million outstanding balance of the CMBS Fixed Rate portfolio loan secured by the Hyatt Regency New Orleans, the Hyatt Regency Phoenix and the Hyatt Regency La Jolla hotels.
On August 31, 2007, the consolidated affiliate that owns the Hyatt Regency La Jolla hotel entered into a $97.5 million mortgage loan secured by the hotel.
In October 2007, we issued two $17,500,000 non-interest bearing promissory notes in connection with the purchase of a 60-acre land parcel in Punta Mita, Nayarit, Mexico.
During the year ended December 31, 2007, we executed an aggregate $200.0 million in corporate interest rate swap agreements that convert floating rates to fixed rates.
During the year ended December 31, 2007, we entered into a £77.25 million GBP LIBOR interest rate swap agreement that converts a floating rate to a fixed rate.
During the year ended December 31, 2007, we executed an aggregate $475.0 million in forward-starting interest rate swap agreements.
15
Supplemental Financial Information
December 31, 2007
Portfolio Data
Portfolio at December 31, 2007
Location | Number of Rooms | % of Total Rooms | % of QTD December 2007 Property EBITDA | QTD December 2007 Property EBITDA | |||||||||
Hotel | |||||||||||||
United States: | |||||||||||||
Westin St. Francis | San Francisco, CA | 1,195 | 13 | % | 13 | % | $ | 9,906 | |||||
InterContinental Chicago (a) | Chicago, IL | 792 | 9 | % | 9 | % | 7,250 | ||||||
Hotel del Coronado (b) | Coronado, CA | 757 | 8 | % | 6 | % | 5,052 | ||||||
Hyatt Regency Phoenix | Phoenix, AZ | 696 | 8 | % | 3 | % | 2,692 | ||||||
Fairmont Chicago | Chicago, IL | 687 | 8 | % | 7 | % | 5,288 | ||||||
Fairmont Scottsdale Princess | Scottsdale, AZ | 651 | 7 | % | 7 | % | 5,544 | ||||||
InterContinental Miami | Miami, FL | 641 | 7 | % | 5 | % | 3,592 | ||||||
Hyatt Regency La Jolla (a) | La Jolla, CA | 419 | 5 | % | 3 | % | 2,326 | ||||||
Ritz-Carlton Laguna Niguel | Dana Point, CA | 396 | 4 | % | 5 | % | 3,857 | ||||||
Marriott Lincolnshire Resort | Lincolnshire, IL | 389 | 4 | % | 3 | % | 2,339 | ||||||
Loews Santa Monica Beach Hotel | Santa Monica, CA | 342 | 4 | % | 4 | % | 2,790 | ||||||
Ritz-Carlton Half Moon Bay | Half Moon Bay, CA | 261 | 3 | % | 5 | % | 4,103 | ||||||
Four Seasons Washington, D.C. | Washington, D.C. | 211 | 2 | % | 5 | % | 3,757 | ||||||
Total United States | 7,437 | 82 | % | 75 | % | 58,496 | |||||||
Mexican: | |||||||||||||
Four Seasons Mexico City | Mexico City, Mexico | 240 | 3 | % | 3 | % | 2,594 | ||||||
Four Seasons Punta Mita Resort | Punta Mita, Mexico | 173 | 2 | % | 8 | % | 6,062 | ||||||
Total Mexican | 413 | 5 | % | 11 | % | 8,656 | |||||||
Total North American | 7,850 | 87 | % | 86 | % | 67,152 | |||||||
European: | |||||||||||||
InterContinental Prague | Prague, Czech Republic | 372 | 4 | % | 6 | % | 4,570 | ||||||
Marriott Hamburg (c) | Hamburg, Germany | 278 | 3 | % | N/A | N/A | |||||||
Marriott London Grosvenor Square | London, England | 236 | 3 | % | 7 | % | 5,541 | ||||||
Paris Marriott Champs Elysees (c) | Paris, France | 192 | 2 | % | N/A | N/A | |||||||
Hotel Le Parc | Paris, France | 116 | 1 | % | 1 | % | 1,069 | ||||||
Total European | 1,194 | 13 | % | 14 | % | 11,180 | |||||||
9,044 | 100 | % | 100 | % | $ | 78,332 | |||||||
(a) | On August 31, 2007, we sold 49% interests in the entities that own the InterContinental Chicago and Hyatt Regency La Jolla hotels. We consolidate these hotels for reporting purposes. |
(b) | On January 9, 2006, we purchased a 45% interest in the joint venture that owns the Hotel del Coronado and account for our investment under the equity method of accounting. Our equity in losses of the hotel joint venture is included in equity in earnings (losses) of joint ventures in our consolidated statements of operations. The percentage of Property EBITDA above has been calculated based on our 45% ownership. |
(c) | We have leasehold interests in these properties and have not included them in the percentage of Property EBITDA calculation. |
16
Supplemental Financial Information
December 31, 2007
Under Construction and Completed Capital Projects
(images of completed projects available on the company’s website)
Hotel | Project Description | Completed | ||
Fairmont Chicago | Spa and fitness center | Q1 08 | ||
Gold lounge | Q4 06 | |||
Sushi bar | Q4 06 | |||
ENO, wine tasting room * | In Construction | |||
Lobby renovation | In Construction | |||
Room renovation | In Construction | |||
Fairmont Scottsdale Princess | Michael Mina operated Bourbon Steak Restaurant | Q1 08 | ||
Midnight Oil operated Stone Rose Bar | Q1 08 | |||
Gold room renovation | Q1 08 | |||
GM house conversion - 1 room addition | Q1 08 | |||
Four Seasons Mexico City | Guest room renovation | Q1 06 | ||
Four Seasons Punta Mita | Lobby bar | Q1 08 | ||
Oasis room and river pool - 23 room addition | Q2 07 | |||
Fitness center expansion | Q1 07 | |||
Coral suite - 5 room addition | Q1 07 | |||
Retail expansion | Q4 06 | |||
Tamai pool | Q4 06 | |||
Tamai garden | Q4 06 | |||
Beachfront restaurant addition | Q4 06 | |||
Arena suite - 5 room addition | Q1 06 | |||
Four Seasons Washington, D.C. | Presidential suite renovation | In Construction | ||
11 room expansion | In Construction | |||
Hotel del Coronado | ENO, wine tasting room * | Q1 08 | ||
Guest room renovation | Q2 07 | |||
Restaurant renovation | Q2 07 | |||
Beach Village - 78 room addition | Q2 07 | |||
Spa & fitness center / beach club | Q1 07 | |||
Retail reconfiguration / renovation | In Construction | |||
InterContinental Chicago | Starbucks | Q3 07 | ||
Meeting space addition | Q3 07 | |||
ENO, wine tasting room * | Q4 06 | |||
InterContinental Miami | Starbucks | Q3 06 | ||
Spa | In Construction | |||
InterContinental Prague | Partial guest room renovation | Q2 07 | ||
Loews Santa Monica | Restaurant renovation | Q4 04 | ||
Marriott London Grosvenor Square | Restaurant reconfiguration | In Construction | ||
Concierge lounge | In Construction | |||
Guestroom renovation | In Construction | |||
Ritz-Carlton Half Moon Bay | Outdoor patios | Q3 06 | ||
Guestroom fireplaces | Q2 06 | |||
Ocean terrace | Q2 06 | |||
Restaurant expansion | Q4 05 | |||
Wine tasting room | Q3 05 | |||
Retail expansion | Q3 05 | |||
Suite renovation | In Construction | |||
Ritz-Carlton Laguna Niguel | Meeting space renovation | Q4 07 | ||
Suite conversion - 3 room addition | Q2 07 | |||
Suite renovation | Q2 07 | |||
ENO, wine tasting room * | Q1 07 | |||
Westin St. Francis | Lobby bar | In Construction | ||
Room and corridor renovation | In Construction |
* | Strategic’s branded wine room concept |
17
Supplemental Financial Information
Four Quarters Ended December 31, 2007
Seasonality by Geographic Region
Same store revenues have been adjusted to show hotel performance on a comparable quarter-over-quarter basis. Adjustments include (i) exclusion of Hyatt Regency New Orleans as its results of operations were reclassified to discontinued operations; (ii) exclusion of the unconsolidated Hotel del Coronado; and (iii) presentation of the hotels without regard to either ownership structure or leaseholds. The acquisition property is Hotel Le Parc purchased on July 31, 2007.
United States Hotels (as of December 31, 2007)
Same store property revenues - 12 Properties and 6,680 Rooms
Three Months Ended | ||||||||||||||||||||
March 31, 2007 | June 30, 2007 | September 30, 2007 | December 31, 2007 | Total | ||||||||||||||||
Same store property revenues | $ | 193,193 | $ | 209,181 | $ | 194,333 | $ | 209,487 | $ | 806,194 | ||||||||||
Pro forma seasonality % | 24.0 | % | 25.9 | % | 24.1 | % | 26.0 | % | 100.0 | % |
Mexican Hotels (as of December 31, 2007)
Same store property revenues - 2 Properties and 413 Rooms
Three Months Ended | ||||||||||||||||||||
March 31, 2007 | June 30, 2007 | September 30, 2007 | December 31, 2007 | Total | ||||||||||||||||
Same store property revenues | $ | 23,760 | $ | 20,794 | $ | 16,990 | $ | 24,246 | $ | 85,790 | ||||||||||
Same store seasonality % | 27.7 | % | 24.2 | % | 19.8 | % | 28.3 | % | 100.0 | % |
North American Hotels (as of December 31, 2007)
Same store property revenues - 14 Properties and 7,093 Rooms
Three Months Ended | ||||||||||||||||||||
March 31, 2007 | June 30, 2007 | September 30, 2007 | December 31, 2007 | Total | ||||||||||||||||
Same store property revenues | $ | 216,953 | $ | 229,975 | $ | 211,323 | $ | 233,733 | $ | 891,984 | ||||||||||
Pro forma seasonality % | 24.3 | % | 25.8 | % | 23.7 | % | 26.2 | % | 100.0 | % |
European Hotels (as of December 31, 2007)
Acquisition property revenues - 1 Property and 116 Rooms
Same store property revenues - 4 Properties and 1,078 Rooms
Three Months Ended | ||||||||||||||||||||
March 31, 2007 | June 30, 2007 | September 30, 2007 | December 31, 2007 | Total | ||||||||||||||||
Acquisition property revenues (a) | $ | — | $ | — | $ | 2,687 | $ | 4,877 | $ | 7,564 | ||||||||||
Acquisition property revenues (b) | 3,419 | 4,587 | 1,320 | — | 9,326 | |||||||||||||||
Same store property revenues | 29,620 | 40,254 | 39,567 | 41,556 | 150,997 | |||||||||||||||
Total pro forma revenues | $ | 33,039 | $ | 44,841 | $ | 43,574 | $ | 46,433 | $ | 167,887 | ||||||||||
Pro forma seasonality % | 19.7 | % | 26.7 | % | 25.9 | % | 27.7 | % | 100.0 | % |
(a) | Acquisition property revenues for our period of ownership |
(b) | Acquisition property revenues prior to our period of ownership |
18
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
Operating Statistics by Geographic Region
Operating results have been adjusted to show hotel performance on a comparable period basis. Adjustments are the (i) exclusion of unconsolidated Hotel del Coronado, (ii) exclusion of Hotel Le Parc partial year results for the three months and years ended December 31, 2007 and 2006 and the additional exclusion of Four Seasons Washington, D.C., Westin St. Francis, Ritz-Carlton Laguna Niguel, Marriott London Grosvenor Square and Fairmont Scottsdale Princess partial year results for the years ended December 31, 2007 and 2006; (iii) exclusion of Marriott Rancho Las Palmas, Hilton Burbank Airport and Convention Center and Hyatt Regency New Orleans as these properties’ results of operations were reclassified to discontinued operations; and (iv) presentation of the European hotels without regard to either ownership structure or leaseholds.
United States Hotels (as of December 31, 2007)
12 Properties (three month period) and 8 Properties (year end period)
6,680 Rooms (three month period) and 4,227 Rooms (year end period)
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||
Average Daily Rate | $ | 233.07 | $ | 223.94 | 4.1 | % | $ | 207.96 | $ | 198.26 | 4.9 | % | ||||||||||
Average Occupancy | 72.6 | % | 71.1 | % | 1.5 | pts | 75.3 | % | 73.0 | % | 2.3 | pts | ||||||||||
RevPAR | $ | 169.12 | $ | 159.29 | 6.2 | % | $ | 156.51 | $ | 144.73 | 8.1 | % | ||||||||||
Total RevPAR | $ | 336.73 | $ | 315.89 | 6.6 | % | $ | 284.07 | $ | 262.41 | 8.3 | % | ||||||||||
Property EBITDA Margin | 25.5 | % | 21.5 | % | 4.0 | pts | 26.1 | % | 25.1 | % | 1.0 | pts |
Mexican Hotels (as of December 31, 2007)
2 Properties
413 Rooms
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||
Average Daily Rate | $ | 485.68 | $ | 433.09 | 12.1 | % | $ | 466.85 | $ | 430.67 | 8.4 | % | ||||||||||
Average Occupancy | 72.6 | % | 72.6 | % | - | pts | 71.5 | % | 68.2 | % | 3.3 | pts | ||||||||||
RevPAR | $ | 352.55 | $ | 314.40 | 12.1 | % | $ | 333.64 | $ | 293.54 | 13.7 | % | ||||||||||
Total RevPAR | $ | 638.11 | $ | 564.02 | 13.1 | % | $ | 578.20 | $ | 496.03 | 16.6 | % | ||||||||||
Property EBITDA Margin | 35.7 | % | 32.1 | % | 3.6 | pts | 35.5 | % | 33.1 | % | 2.4 | pts |
North American Same Store Hotels (as of December 31, 2007)
14 Properties (three month period) and 10 Properties (year end period)
7,093 Rooms (three month period) and 4,640 Rooms (year end period)
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||
Average Daily Rate | $ | 247.62 | $ | 235.43 | 5.2 | % | $ | 229.63 | $ | 216.47 | 6.1 | % | ||||||||||
Average Occupancy | 72.6 | % | 71.2 | % | 1.4 | pts | 74.9 | % | 72.6 | % | 2.3 | pts | ||||||||||
RevPAR | $ | 179.68 | $ | 167.65 | 7.2 | % | $ | 172.05 | $ | 157.15 | 9.5 | % | ||||||||||
Total RevPAR | $ | 354.07 | $ | 329.26 | 7.5 | % | $ | 309.88 | $ | 281.90 | 9.9 | % | ||||||||||
Property EBITDA Margin | 26.6 | % | 22.4 | % | 4.2 | pts | 27.7 | % | 26.3 | % | 1.4 | pts |
European Same Store Hotels (as of December 31, 2007)
4 Properties (three month period) and 3 Properties (year end period)
1,078 Rooms (three month period) and 842 Rooms (year end period)
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||
Average Daily Rate | $ | 345.56 | $ | 281.81 | 22.6 | % | $ | 302.16 | $ | 260.25 | 16.1 | % | ||||||||||
Average Occupancy | 79.9 | % | 80.7 | % | (0.8 | ) pts | 81.8 | % | 83.6 | % | (1.8 | ) pts | ||||||||||
RevPAR | $ | 276.25 | $ | 227.48 | 21.4 | % | $ | 247.12 | $ | 217.60 | 13.6 | % | ||||||||||
Total RevPAR | $ | 419.01 | $ | 357.50 | 17.2 | % | $ | 344.33 | $ | 305.91 | 12.6 | % | ||||||||||
Property EBITDA Margin | 38.3 | % | 36.1 | % | 2.2 | pts | 39.6 | % | 38.1 | % | 1.5 | pts |
19
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
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 and years ended December 31, 2007 and 2006. Property EBITDA reflects property net operating income plus depreciation and amortization.
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||
UNITED STATES HOTELS: | ||||||||||||||||||||||
FAIRMONT CHICAGO | ||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||
Total revenues | $ | 18,517 | $ | 17,748 | 4.3 | % | $ | 69,695 | $ | 65,970 | 5.6 | % | ||||||||||
Property EBITDA (a) | $ | 5,288 | $ | 3,988 | 32.6 | % | $ | 16,883 | $ | 14,501 | 16.4 | % | ||||||||||
Selected Operating Information: | ||||||||||||||||||||||
Rooms | 687 | 685 | 2 | 687 | 685 | 2 | ||||||||||||||||
Average occupancy | 74.9 | % | 71.3 | % | 3.6 | pts | 75.3 | % | 74.9 | % | 0.4 | pts | ||||||||||
ADR | $ | 233.03 | $ | 225.95 | 3.1 | % | $ | 221.82 | $ | 209.23 | 6.0 | % | ||||||||||
RevPAR | $ | 174.45 | $ | 161.11 | 8.3 | % | $ | 167.02 | $ | 156.74 | 6.6 | % | ||||||||||
Total RevPAR | $ | 292.98 | $ | 281.63 | 4.0 | % | $ | 278.14 | $ | 262.58 | 5.9 | % | ||||||||||
FAIRMONT SCOTTSDALE PRINCESS | ||||||||||||||||||||||
Selected Financial Information (This table includes financial information only for our period of ownership): |
| |||||||||||||||||||||
Total revenues | $ | 21,012 | $ | 23,908 | (12.1 | )% | $ | 94,536 | N/A | N/A | ||||||||||||
Property EBITDA | $ | 5,544 | $ | 6,741 | (17.8 | )% | $ | 25,918 | N/A | N/A | ||||||||||||
Selected Operating Information (This table includes statistical information only for our period of ownership. For the year ended December 31, 2006, average occupancy was 76.4%, ADR was $229.62, RevPAR was $175.50 and Total RevPAR was $401.83.): |
| |||||||||||||||||||||
Rooms | 651 | 651 | — | 651 | N/A | N/A | ||||||||||||||||
Average occupancy | 61.6 | % | 71.2 | % | (9.6 | ) pts | 73.7 | % | N/A | N/A | ||||||||||||
ADR | $ | 240.21 | $ | 238.31 | 0.8 | % | $ | 239.44 | N/A | N/A | ||||||||||||
RevPAR | $ | 147.97 | $ | 169.68 | (12.8 | )% | $ | 176.54 | N/A | N/A | ||||||||||||
Total RevPAR | $ | 350.83 | $ | 399.19 | (12.1 | )% | $ | 397.85 | N/A | N/A | ||||||||||||
FOUR SEASONS WASHINGTON, D.C. | ||||||||||||||||||||||
Selected Financial Information (This table includes financial information only for our period of ownership): |
| |||||||||||||||||||||
Total revenues | $ | 15,286 | $ | 13,785 | 10.9 | % | $ | 53,670 | N/A | N/A | ||||||||||||
Property EBITDA (a) | $ | 3,757 | $ | 2,905 | 29.3 | % | $ | 10,917 | N/A | N/A | ||||||||||||
Selected Operating Information (This table includes statistical information only for our period of ownership. For the year ended December 31, 2006, average occupancy was 70.0%, ADR was $495.72, RevPAR was $347.07 and Total RevPAR was $635.57.): |
| |||||||||||||||||||||
Rooms | 211 | 211 | — | 211 | N/A | N/A | ||||||||||||||||
Average occupancy | 72.8 | % | 71.8 | % | 1.0 | pts | 71.5 | % | N/A | N/A | ||||||||||||
ADR | $ | 576.49 | $ | 503.40 | 14.5 | % | $ | 542.58 | N/A | N/A | ||||||||||||
RevPAR | $ | 419.54 | $ | 361.47 | 16.1 | % | $ | 388.00 | N/A | N/A | ||||||||||||
Total RevPAR | $ | 787.45 | $ | 710.14 | 10.9 | % | $ | 696.88 | N/A | N/A | ||||||||||||
HOTEL DEL CORONADO | ||||||||||||||||||||||
Selected Financial Information (This table includes financial information only for our period of ownership. Amounts below are 100% of operations, of which SHR owns 45%.): |
| |||||||||||||||||||||
Total revenues | $ | 33,409 | $ | 31,221 | 7.0 | % | $ | 141,404 | N/A | N/A | ||||||||||||
Property EBITDA | $ | 11,226 | $ | 10,595 | 6.0 | % | $ | 52,926 | N/A | N/A | ||||||||||||
Selected Operating Information (This table includes statistical information only for our period of ownership. For the year ended December 31, 2006, average occupancy was 80.0%, ADR was $337.56, RevPAR was $270.18 and Total RevPAR was $544.31.): |
| |||||||||||||||||||||
Rooms | 757 | 679 | 78 | 757 | N/A | N/A | ||||||||||||||||
Average occupancy | 63.7 | % | 70.1 | % | (6.4 | ) pts | 74.4 | % | N/A | N/A | ||||||||||||
ADR | $ | 313.27 | $ | 310.91 | 0.8 | % | $ | 354.52 | N/A | N/A | ||||||||||||
RevPAR | $ | 199.41 | $ | 218.09 | (8.6 | )% | $ | 263.92 | N/A | N/A | ||||||||||||
Total RevPAR | $ | 479.92 | $ | 499.77 | (4.0 | )% | $ | 545.56 | N/A | N/A |
20
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||
HYATT REGENCY LA JOLLA | ||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||
Total revenues | $ | 10,280 | $ | 10,389 | (1.0 | )% | $ | 42,797 | $ | 41,062 | 4.2 | % | ||||||||||
Property EBITDA | $ | 2,326 | $ | 2,774 | (16.1 | )% | $ | 11,304 | $ | 10,854 | 4.1 | % | ||||||||||
Selected Operating Information: | ||||||||||||||||||||||
Rooms | 419 | 419 | — | 419 | 419 | — | ||||||||||||||||
Average occupancy | 70.5 | % | 77.2 | % | (6.7 | ) pts | 79.7 | % | 77.3 | % | 2.4 | pts | ||||||||||
ADR | $ | 176.49 | $ | 169.55 | 4.1 | % | $ | 184.96 | $ | 180.39 | 2.5 | % | ||||||||||
RevPAR | $ | 124.46 | $ | 130.95 | (5.0 | )% | $ | 147.49 | $ | 139.50 | 5.7 | % | ||||||||||
Total RevPAR | $ | 266.69 | $ | 269.52 | (1.1 | )% | $ | 279.84 | $ | 268.49 | 4.2 | % | ||||||||||
HYATT REGENCY PHOENIX | ||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||
Total revenues | $ | 10,259 | $ | 9,206 | 11.4 | % | $ | 40,441 | $ | 37,643 | 7.4 | % | ||||||||||
Property EBITDA | $ | 2,692 | $ | 2,170 | 24.1 | % | $ | 10,770 | $ | 9,963 | 8.1 | % | ||||||||||
Selected Operating Information: | ||||||||||||||||||||||
Rooms | 696 | 696 | — | 696 | 696 | — | ||||||||||||||||
Average occupancy | 66.9 | % | 58.0 | % | 8.9 | pts | 69.2 | % | 66.4 | % | 2.8 | pts | ||||||||||
ADR | $ | 143.52 | $ | 142.92 | 0.4 | % | $ | 139.01 | $ | 136.03 | 2.2 | % | ||||||||||
RevPAR | $ | 96.00 | $ | 82.91 | 15.8 | % | $ | 96.14 | $ | 90.35 | 6.4 | % | ||||||||||
Total RevPAR | $ | 160.22 | $ | 143.78 | 11.4 | % | $ | 159.19 | $ | 148.18 | 7.4 | % | ||||||||||
INTERCONTINENTAL CHICAGO | ||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||
Total revenues | $ | 21,765 | $ | 19,550 | 11.3 | % | $ | 81,197 | $ | 72,249 | 12.4 | % | ||||||||||
Property EBITDA | $ | 7,250 | $ | 6,336 | 14.4 | % | $ | 25,807 | $ | 23,523 | 9.7 | % | ||||||||||
Selected Operating Information : | ||||||||||||||||||||||
Rooms | 792 | 792 | — | 792 | 792 | — | ||||||||||||||||
Average occupancy | 83.9 | % | 79.6 | % | 4.3 | pts | 83.1 | % | 79.9 | % | 3.2 | pts | ||||||||||
ADR | $ | 225.56 | $ | 222.55 | 1.4 | % | $ | 212.56 | $ | 205.40 | 3.5 | % | ||||||||||
RevPAR | $ | 189.20 | $ | 177.17 | 6.8 | % | $ | 176.61 | $ | 164.16 | 7.6 | % | ||||||||||
Total RevPAR | $ | 298.71 | $ | 268.31 | 11.3 | % | $ | 280.88 | $ | 249.93 | 12.4 | % | ||||||||||
INTERCONTINENTAL MIAMI | ||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||
Total revenues | $ | 14,405 | $ | 11,502 | 25.2 | % | $ | 54,635 | $ | 46,579 | 17.3 | % | ||||||||||
Property EBITDA (a) | $ | 3,592 | $ | 2,842 | 26.4 | % | $ | 14,733 | $ | 12,589 | 17.0 | % | ||||||||||
Selected Operating Information: | ||||||||||||||||||||||
Rooms | 641 | 641 | — | 641 | 641 | — | ||||||||||||||||
Average occupancy | 69.1 | % | 65.3 | % | 3.8 | pts | 71.1 | % | 67.3 | % | 3.8 | pts | ||||||||||
ADR | $ | 193.23 | $ | 171.07 | 13.0 | % | $ | 190.80 | $ | 174.03 | 9.6 | % | ||||||||||
RevPAR | $ | 133.57 | $ | 111.74 | 19.5 | % | $ | 135.70 | $ | 117.14 | 15.8 | % | ||||||||||
Total RevPAR | $ | 244.27 | $ | 195.03 | 25.2 | % | $ | 233.52 | $ | 199.09 | 17.3 | % | ||||||||||
LOEWS SANTA MONICA BEACH HOTEL | ||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||
Total revenues | $ | 10,695 | $ | 10,100 | 5.9 | % | $ | 48,548 | $ | 45,390 | 7.0 | % | ||||||||||
Property EBITDA (a) | $ | 2,790 | $ | 2,668 | 4.6 | % | $ | 15,450 | $ | 14,267 | 8.3 | % | ||||||||||
Selected Operating Information: | ||||||||||||||||||||||
Rooms | 342 | 342 | — | 342 | 342 | — | ||||||||||||||||
Average occupancy | 76.0 | % | 74.5 | % | 1.5 | pts | 85.6 | % | 84.1 | % | 1.5 | pts | ||||||||||
ADR | $ | 280.65 | $ | 266.40 | 5.3 | % | $ | 300.22 | $ | 279.74 | 7.3 | % | ||||||||||
RevPAR | $ | 213.38 | $ | 198.41 | 7.5 | % | $ | 256.89 | $ | 235.15 | 9.2 | % | ||||||||||
Total RevPAR | $ | 339.92 | $ | 320.99 | 5.9 | % | $ | 388.91 | $ | 363.62 | 7.0 | % |
21
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||
MARRIOTT LINCOLNSHIRE RESORT | ||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||
Total revenues | $ | 12,585 | $ | 12,642 | (0.5 | )% | $ | 40,644 | $ | 40,138 | 1.3 | % | ||||||||||
Property EBITDA | $ | 2,339 | $ | 2,344 | (0.2 | )% | $ | 7,482 | $ | 7,478 | 0.1 | % | ||||||||||
Selected Operating Information: | ||||||||||||||||||||||
Rooms | 389 | 389 | — | 389 | 389 | — | ||||||||||||||||
Average occupancy | 63.9 | % | 64.9 | % | (1.0 | ) pts | 65.6 | % | 64.1 | % | 1.5 | pts | ||||||||||
ADR | $ | 134.40 | $ | 138.62 | (3.0 | )% | $ | 135.42 | $ | 136.65 | (0.9 | )% | ||||||||||
RevPAR | $ | 85.91 | $ | 90.03 | (4.6 | )% | $ | 88.83 | $ | 87.53 | 1.5 | % | ||||||||||
Total RevPAR | $ | 288.86 | $ | 290.18 | (0.5 | )% | $ | 287.04 | $ | 283.47 | 1.3 | % | ||||||||||
RITZ-CARLTON HALF MOON BAY | ||||||||||||||||||||||
Selected Financial Information : | ||||||||||||||||||||||
Total revenues | $ | 16,589 | $ | 13,853 | 19.8 | % | $ | 60,158 | $ | 55,852 | 7.7 | % | ||||||||||
Property EBITDA (a) | $ | 4,103 | $ | (383 | ) | 1,171.3 | % | $ | 12,073 | $ | 8,578 | 40.7 | % | |||||||||
Selected Operating Information: | ||||||||||||||||||||||
Rooms | 261 | 261 | — | 261 | 261 | — | ||||||||||||||||
Average occupancy | 75.1 | % | 65.9 | % | 9.2 | pts | 71.5 | % | 70.3 | % | 1.2 | pts | ||||||||||
ADR | $ | 369.33 | $ | 341.78 | 8.1 | % | $ | 368.51 | $ | 343.86 | 7.2 | % | ||||||||||
RevPAR | $ | 277.27 | $ | 225.08 | 23.2 | % | $ | 263.46 | $ | 241.81 | 9.0 | % | ||||||||||
Total RevPAR | $ | 690.87 | $ | 576.91 | 19.8 | % | $ | 631.48 | $ | 586.28 | 7.7 | % | ||||||||||
RITZ-CARLTON LAGUNA NIGUEL | ||||||||||||||||||||||
Selected Financial Information (This table includes financial information only for our period of ownership): |
| |||||||||||||||||||||
Total revenues | $ | 19,020 | $ | 17,936 | 6.0 | % | $ | 81,252 | N/A | N/A | ||||||||||||
Property EBITDA | $ | 3,857 | $ | 3,445 | 12.0 | % | $ | 22,242 | N/A | N/A | ||||||||||||
Selected Operating Information (This table includes statistical information only for our period of ownership. For the year ended December 31, 2006, average occupancy was 69.0%, ADR was $371.41, RevPAR was $256.21 and Total RevPAR was $536.01.): |
| |||||||||||||||||||||
Rooms | 396 | 393 | 3 | 396 | N/A | N/A | ||||||||||||||||
Average occupancy | 62.9 | % | 64.7 | % | (1.8 | ) pts | 66.9 | % | N/A | N/A | ||||||||||||
ADR | $ | 338.12 | $ | 337.30 | 0.2 | % | $ | 382.64 | N/A | N/A | ||||||||||||
RevPAR | $ | 212.52 | $ | 218.10 | (2.6 | )% | $ | 255.92 | N/A | N/A | ||||||||||||
Total RevPAR | $ | 525.05 | $ | 496.07 | 5.8 | % | $ | 564.35 | N/A | N/A | ||||||||||||
WESTIN ST. FRANCIS | ||||||||||||||||||||||
Selected Financial Information (This table includes financial information only for our period of ownership): |
| |||||||||||||||||||||
Total revenues | $ | 39,074 | $ | 35,826 | 9.1 | % | $ | 138,622 | N/A | N/A | ||||||||||||
Property EBITDA | $ | 9,906 | $ | 6,337 | 56.3 | % | $ | 29,987 | N/A | N/A | ||||||||||||
Selected Operating Information (This table includes statistical information only for our period of ownership. For the year ended December 31, 2006, average occupancy was 79.5%, ADR was $201.20, RevPAR was $159.85 and Total RevPAR was $302.38.): |
| |||||||||||||||||||||
Rooms | 1,195 | 1,195 | — | 1,195 | N/A | N/A | ||||||||||||||||
Average occupancy | 80.6 | % | 78.7 | % | 1.9 | pts | 80.0 | % | N/A | N/A | ||||||||||||
ADR | $ | 223.00 | $ | 212.98 | 4.7 | % | $ | 211.64 | N/A | N/A | ||||||||||||
RevPAR | $ | 179.76 | $ | 167.52 | 7.3 | % | $ | 169.39 | N/A | N/A | ||||||||||||
Total RevPAR | $ | 355.42 | $ | 325.87 | 9.1 | % | $ | 317.81 | N/A | N/A |
(a) | For the three months and year ended December 31, 2007, Property EBITDA excludes the write-off of capitalized costs related to abandoned capital projects. The total costs excluded for individual properties amounted to $757,000 for the three months ended December 31, 2007 and $2,000,000 for the year ended December 31, 2007. |
22
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||
MEXICAN HOTELS: | ||||||||||||||||||||||
FOUR SEASONS MEXICO CITY | ||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||
Total revenues | $ | 7,952 | $ | 7,357 | 8.1 | % | $ | 28,049 | $ | 23,239 | 20.7 | % | ||||||||||
Property EBITDA | $ | 2,594 | $ | 2,138 | 21.3 | % | $ | 7,937 | $ | 5,297 | 49.8 | % | ||||||||||
Selected Operating Information: | ||||||||||||||||||||||
Rooms | 240 | 240 | — | 240 | 240 | — | ||||||||||||||||
Average occupancy | 72.2 | % | 68.6 | % | 3.6 | pts | 68.3 | % | 60.8 | % | 7.5 | pts | ||||||||||
ADR | $ | 266.73 | $ | 242.75 | 9.9 | % | $ | 260.08 | $ | 239.15 | 8.8 | % | ||||||||||
RevPAR | $ | 192.65 | $ | 166.45 | 15.7 | % | $ | 177.67 | $ | 145.42 | 22.2 | % | ||||||||||
Total RevPAR | $ | 360.13 | $ | 333.19 | 8.1 | % | $ | 320.19 | $ | 265.29 | 20.7 | % | ||||||||||
FOUR SEASONS PUNTA MITA RESORT | ||||||||||||||||||||||
Selected Financial Information: | ||||||||||||||||||||||
Total revenues | $ | 16,294 | $ | 12,621 | 29.1 | % | $ | 57,742 | $ | 46,429 | 24.4 | % | ||||||||||
Property EBITDA | $ | 6,062 | $ | 4,281 | 41.6 | % | $ | 22,477 | $ | 17,776 | 26.4 | % | ||||||||||
Selected Operating Information: | ||||||||||||||||||||||
Rooms | 173 | 145 | 28 | 173 | 145 | 28 | ||||||||||||||||
Average occupancy | 73.1 | % | 79.3 | % | (6.2 | ) pts | 76.0 | % | 80.3 | % | (4.3 | ) pts | ||||||||||
ADR | $ | 785.85 | $ | 705.66 | 11.4 | % | $ | 734.73 | $ | 670.90 | 9.5 | % | ||||||||||
RevPAR | $ | 574.38 | $ | 559.29 | 2.7 | % | $ | 558.45 | $ | 539.05 | 3.6 | % | ||||||||||
Total RevPAR | $ | 1,023.74 | $ | 946.09 | 8.2 | % | $ | 950.09 | $ | 878.50 | 8.1 | % |
23
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||
EUROPEAN HOTELS: | ||||||||||||||||||||||
INTERCONTINENTAL PRAGUE | ||||||||||||||||||||||
Selected Financial Information (Amounts below are 100% of operations, of which SHR owned 35% prior to August 3, 2006): |
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Total revenues | $ | 10,459 | $ | 9,240 | 13.2 | % | $ | 39,773 | $ | 35,698 | 11.4 | % | ||||||||||
Property EBITDA | $ | 4,570 | $ | 3,872 | 18.0 | % | $ | 17,418 | $ | 14,891 | 17.0 | % | ||||||||||
Selected Operating Information: |
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Rooms | 372 | 372 | — | 372 | 372 | — | ||||||||||||||||
Average Occupancy | 76.5 | % | 77.5 | % | (1.0 | ) pts | 76.6 | % | 81.0 | % | (4.4 | ) pts | ||||||||||
ADR | $ | 242.42 | $ | 204.28 | 18.7 | % | $ | 240.31 | $ | 205.56 | 16.9 | % | ||||||||||
RevPAR | $ | 185.34 | $ | 158.22 | 17.1 | % | $ | 183.97 | $ | 166.49 | 10.5 | % | ||||||||||
Total RevPAR | $ | 305.60 | $ | 269.99 | 13.2 | % | $ | 292.92 | $ | 262.91 | 11.4 | % | ||||||||||
MARRIOTT HAMBURG | ||||||||||||||||||||||
Selected Financial Information: |
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Total revenues | $ | 6,238 | $ | 5,205 | 19.8 | % | $ | 22,645 | $ | 20,805 | 8.8 | % | ||||||||||
Property EBITDA | $ | 1,556 | $ | 1,335 | 16.6 | % | $ | 5,806 | $ | 5,225 | 11.1 | % | ||||||||||
Selected Operating Information: |
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Rooms | 278 | 277 | 1 | 278 | 277 | 1 | ||||||||||||||||
Average occupancy | 80.8 | % | 80.6 | % | 0.2 | pts | 84.2 | % | 84.4 | % | (0.2 | ) pts | ||||||||||
ADR | $ | 205.15 | $ | 173.56 | 18.2 | % | $ | 185.03 | $ | 169.83 | 9.0 | % | ||||||||||
RevPAR | $ | 165.73 | $ | 139.96 | 18.4 | % | $ | 155.74 | $ | 143.29 | 8.7 | % | ||||||||||
Total RevPAR | $ | 243.90 | $ | 204.25 | 19.4 | % | $ | 223.74 | $ | 205.77 | 8.7 | % | ||||||||||
MARRIOTT LONDON GROSVENOR SQUARE | ||||||||||||||||||||||
Selected Financial Information (This table includes financial information only for our period of ownership): |
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Total revenues | $ | 13,591 | $ | 12,005 | 13.2 | % | $ | 45,266 | N/A | N/A | ||||||||||||
Property EBITDA | $ | 5,541 | $ | 4,688 | 18.2 | % | $ | 17,579 | N/A | N/A | ||||||||||||
Selected Operating Information (This table includes statistical information only for our period of ownership. For the year ended December 31, 2006, average occupancy was 80.9%, ADR was $350.79, RevPAR was $283.94 and Total RevPAR was $442.00.): |
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Rooms | 236 | 236 | — | 236 | N/A | N/A | ||||||||||||||||
Average occupancy | 76.4 | % | 80.5 | % | (4.1 | ) pts | 81.2 | % | N/A | N/A | ||||||||||||
ADR | $ | 467.39 | $ | 379.74 | 23.1 | % | $ | 417.97 | N/A | N/A | ||||||||||||
RevPAR | $ | 357.13 | $ | 305.60 | 16.9 | % | $ | 339.57 | N/A | N/A | ||||||||||||
Total RevPAR | $ | 625.95 | $ | 552.94 | 13.2 | % | $ | 525.49 | N/A | N/A | ||||||||||||
PARIS MARRIOTT CHAMPS ELYSEES | ||||||||||||||||||||||
Selected Financial Information: |
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Total revenues | $ | 11,268 | $ | 8,972 | 25.6 | % | $ | 43,314 | $ | 37,400 | 15.8 | % | ||||||||||
Property EBITDA | $ | 4,250 | $ | 2,903 | 46.4 | % | $ | 18,679 | $ | 15,699 | 19.0 | % | ||||||||||
Selected Operating Information: |
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Rooms | 192 | 192 | — | 192 | 192 | — | ||||||||||||||||
Average occupancy | 89.8 | % | 87.5 | % | 2.3 | pts | 88.5 | % | 87.6 | % | 0.9 | pts | ||||||||||
ADR | $ | 571.04 | $ | 448.08 | 27.4 | % | $ | 566.73 | $ | 483.91 | 17.1 | % | ||||||||||
RevPAR | $ | 513.01 | $ | 391.91 | 30.9 | % | $ | 501.45 | $ | 423.82 | 18.3 | % | ||||||||||
Total RevPAR | $ | 637.93 | $ | 507.93 | 25.6 | % | $ | 618.07 | $ | 533.67 | 15.8 | % | ||||||||||
HOTEL LE PARC | ||||||||||||||||||||||
Selected Financial Information (This table includes financial information only for our period of ownership): |
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Total revenues | $ | 4,877 | N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Property EBITDA | $ | 1,069 | N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Selected Operating Information (This table includes statistical information only for our period of ownership. For the three months ended December 31, 2006, average occupancy was 80.0%, ADR was $290.79, RevPAR was $232.70 and Total RevPAR was $368.66. For the year ended December 31, 2007, average occupancy was 75.9%, ADR was $321.87, RevPAR was $244.22 and Total RevPAR was $378.16. For the year ended December 31, 2006, average occupancy was 71.5%, ADR was $283.17, RevPAR was $202.32 and Total RevPAR was $336.69.): |
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Rooms | 116 | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
Average occupancy | 71.4 | % | N/A | N/A | N/A | N/A | N/A | |||||||||||||||
ADR | $ | 334.66 | N/A | N/A | N/A | N/A | N/A | |||||||||||||||
RevPAR | $ | 238.79 | N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Total RevPAR | $ | 457.01 | N/A | N/A | N/A | N/A | N/A |
24
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
Reconciliation of Property EBITDA to EBITDA
(in thousands)
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | ||||||||||||||||||||||||||
Property EBITDA | EBITDA | Property EBITDA | EBITDA | Property EBITDA | EBITDA | Property EBITDA | EBITDA | ||||||||||||||||||||||
Hotel | |||||||||||||||||||||||||||||
Fairmont Chicago | $ | 5,288 | $ | 5,288 | $ | 3,988 | $ | 3,988 | $ | 16,883 | $ | 16,883 | $ | 14,501 | $ | 14,501 | |||||||||||||
Fairmont Scottsdale Princess (a) | 5,544 | 5,544 | 6,741 | 6,741 | 25,918 | 25,918 | — | 7,995 | |||||||||||||||||||||
Four Seasons Washington, D.C. (a) | 3,757 | 3,757 | 2,905 | 2,905 | 10,917 | 10,917 | — | 9,156 | |||||||||||||||||||||
Hotel del Coronado (b) | 11,226 | — | 10,595 | — | 52,926 | — | — | — | |||||||||||||||||||||
Hyatt Regency La Jolla | 2,326 | 2,326 | 2,774 | 2,774 | 11,304 | 11,304 | 10,854 | 10,854 | |||||||||||||||||||||
Hyatt Regency Phoenix | 2,692 | 2,692 | 2,170 | 2,170 | 10,770 | 10,770 | 9,963 | 9,963 | |||||||||||||||||||||
InterContinental Chicago | 7,250 | 7,250 | 6,336 | 6,336 | 25,807 | 25,807 | 23,523 | 23,523 | |||||||||||||||||||||
InterContinental Miami | 3,592 | 3,592 | 2,842 | 2,842 | 14,733 | 14,733 | 12,589 | 12,589 | |||||||||||||||||||||
Loews Santa Monica Beach Hotel | 2,790 | 2,790 | 2,668 | 2,668 | 15,450 | 15,450 | 14,267 | 14,267 | |||||||||||||||||||||
Marriott Lincolnshire Resort | 2,339 | 2,339 | 2,344 | 2,344 | 7,482 | 7,482 | 7,478 | 7,478 | |||||||||||||||||||||
Ritz-Carlton Half Moon Bay | 4,103 | 4,103 | (383 | ) | (383 | ) | 12,073 | 12,073 | 8,578 | 8,578 | |||||||||||||||||||
Ritz-Carlton Laguna Niguel (a) | 3,857 | 3,857 | 3,445 | 3,445 | 22,242 | 22,242 | — | 10,774 | |||||||||||||||||||||
Westin St. Francis (a) | 9,906 | 9,906 | 6,337 | 6,337 | 29,987 | 29,987 | — | 16,026 | |||||||||||||||||||||
Four Seasons Mexico City | 2,594 | 2,594 | 2,138 | 2,138 | 7,937 | 7,937 | 5,297 | 5,297 | |||||||||||||||||||||
Four Seasons Punta Mita Resort | 6,062 | 6,062 | 4,281 | 4,281 | 22,477 | 22,477 | 17,776 | 17,776 | |||||||||||||||||||||
InterContinental Prague (c) | 4,570 | 4,570 | 3,872 | 3,872 | 17,418 | 17,418 | 14,891 | 6,624 | |||||||||||||||||||||
Marriott Hamburg (d) | 1,556 | 226 | 1,335 | 257 | 5,806 | 569 | 5,225 | 733 | |||||||||||||||||||||
Marriott London Grosvenor Square (a) | 5,541 | 5,541 | 4,688 | 4,688 | 17,579 | 17,579 | — | 6,032 | |||||||||||||||||||||
Paris Marriott Champs Elysees (d) | 4,250 | 1,177 | 2,903 | 1,143 | 18,679 | 4,752 | 15,699 | 5,384 | |||||||||||||||||||||
Hotel Le Parc (a) | 1,069 | 1,069 | — | — | — | 1,748 | — | — | |||||||||||||||||||||
$ | 90,312 | $ | 74,683 | $ | 71,979 | $ | 58,546 | $ | 346,388 | $ | 276,046 | $ | 160,641 | $ | 187,550 | ||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Other charges | $ | (14 | ) | $ | — | $ | (7,372 | ) | $ | — | |||||||||||||||||||
Corporate expenses | (9,109 | ) | (7,030 | ) | (30,179 | ) | (25,383 | ) | |||||||||||||||||||||
Interest income | 885 | 645 | 2,775 | 3,961 | |||||||||||||||||||||||||
Loss on early extinguishment of debt | — | (2,150 | ) | (10,268 | ) | (2,150 | ) | ||||||||||||||||||||||
(Loss) gain on sale of minority interests in hotel properties | (134 | ) | — | 84,658 | — | ||||||||||||||||||||||||
Equity in earnings (losses) of joint ventures | 132 | (1,320 | ) | 8,344 | (1,066 | ) | |||||||||||||||||||||||
Foreign currency exchange (loss) gain | (156 | ) | 627 | (3,701 | ) | 756 | |||||||||||||||||||||||
Other (expenses) income, net | (835 | ) | 85 | (584 | ) | 3,596 | |||||||||||||||||||||||
Income (loss) from discontinued operations | |||||||||||||||||||||||||||||
(excluding minority interest) | 959 | (862 | ) | (42,624 | ) | 85,708 | |||||||||||||||||||||||
Depreciation and amortization - discontinued operations | — | — | — | 2,535 | |||||||||||||||||||||||||
Interest expense - discontinued operations | — | (29 | ) | 823 | 1,993 | ||||||||||||||||||||||||
Income taxes - discontinued operations | 828 | (64 | ) | 289 | (4,607 | ) | |||||||||||||||||||||||
Minority interest in consolidated affiliates | (535 | ) | (32 | ) | (1,363 | ) | (763 | ) | |||||||||||||||||||||
Adjustments from consolidated affiliates | (2,367 | ) | (1,014 | ) | (5,063 | ) | (4,310 | ) | |||||||||||||||||||||
Adjustments from unconsolidated affiliates | 7,155 | 5,912 | 30,603 | 27,431 | |||||||||||||||||||||||||
Adjustments for abandoned capital projects | (757 | ) | — | (1,999 | ) | — | |||||||||||||||||||||||
Other adjustments | 21 | 1 | 1 | (199 | ) | ||||||||||||||||||||||||
EBITDA | $ | 70,756 | $ | 53,315 | $ | 300,386 | $ | 275,052 | |||||||||||||||||||||
(a) | We have included the results of hotels acquired in Property EBITDA above for our period of ownership. |
(b) | On January 9, 2006 we closed the acquisition of a 45% joint venture ownership interest in SHC KSL Partners, LP, the existing owner of the Hotel del Coronado in Coronado, California. We account for our investment under the equity method of accounting. Our equity in losses of the hotel joint venture is included in equity in earnings (losses) of joint ventures in our consolidated statements of operations. We have included the results of this hotel in Property EBITDA above for our period of ownership. |
(c) | On August 3, 2006, we purchased our joint venture partner’s 65% interest in the entity that owns the InterContinental Prague. Prior to August 3, 2006 our equity in earnings of the hotel joint venture is included in equity in earnings of joint ventures in our consolidated statements of operations. |
(d) | We have leasehold interests in these properties. 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. |
25
Supplemental Financial Information
Three Months and Years Ended December 31, 2007 and 2006
Reconciliation of Property EBITDA to Comparable EBITDA
(in thousands)
Three Months Ended December 31, 2007 | Year Ended December 31, 2007 | ||||||||||||||||||||
Property EBITDA | Adjustments | Comparable EBITDA | Property EBITDA | Adjustments | Comparable EBITDA | ||||||||||||||||
Meetings & Business Hotels: | |||||||||||||||||||||
Fairmont Chicago | $ | 5,288 | $ | — | $ | 5,288 | $ | 16,883 | $ | — | $ | 16,883 | |||||||||
Fairmont Scottsdale Princess | 5,544 | — | 5,544 | 25,918 | — | 25,918 | |||||||||||||||
Four Seasons Mexico City | 2,594 | — | 2,594 | 7,937 | — | 7,937 | |||||||||||||||
Four Seasons Washington, D.C. | 3,757 | — | 3,757 | 10,917 | — | 10,917 | |||||||||||||||
Hyatt Regency La Jolla | 2,326 | (1,166 | ) | 1,160 | 11,304 | (1,166 | ) | 10,138 | |||||||||||||
InterContinental Chicago | 7,250 | (2,367 | ) | 4,883 | 25,807 | (3,934 | ) | 21,873 | |||||||||||||
InterContinental Miami | 3,592 | — | 3,592 | 14,733 | (1,129 | ) | 13,604 | ||||||||||||||
Westin St. Francis | 9,906 | — | 9,906 | 29,987 | — | 29,987 | |||||||||||||||
Total Meetings & Business Hotels | 40,257 | (3,533 | ) | 36,724 | 143,486 | (6,229 | ) | 137,257 | |||||||||||||
Ocean Front Resorts: | |||||||||||||||||||||
Four Seasons Punta Mita Resort | 6,062 | — | 6,062 | 22,477 | — | 22,477 | |||||||||||||||
Hotel del Coronado | 11,226 | (6,270 | ) | 4,956 | 52,926 | (29,575 | ) | 23,351 | |||||||||||||
Loews Santa Monica Beach Hotel | 2,790 | — | 2,790 | 15,450 | — | 15,450 | |||||||||||||||
Ritz-Carlton Half Moon Bay | 4,103 | — | 4,103 | 12,073 | — | 12,073 | |||||||||||||||
Ritz-Carlton Laguna Niguel | 3,857 | — | 3,857 | 22,242 | — | 22,242 | |||||||||||||||
Total Ocean Front Resorts | 28,038 | (6,270 | ) | 21,768 | 125,168 | (29,575 | ) | 95,593 | |||||||||||||
European Hotels: | |||||||||||||||||||||
InterContinental Prague | 4,570 | — | 4,570 | 17,418 | — | 17,418 | |||||||||||||||
Marriott Hamburg | 1,556 | (1,434 | ) | 122 | 5,806 | (5,471 | ) | 335 | |||||||||||||
Marriott London Grosvenor Square | 5,541 | — | 5,541 | 17,579 | — | 17,579 | |||||||||||||||
Paris Marriott Champs Elysees | 4,250 | (4,288 | ) | (38 | ) | 18,679 | (18,541 | ) | 138 | ||||||||||||
Hotel Le Parc | 1,069 | — | 1,069 | — | 1,748 | 1,748 | |||||||||||||||
Total European Hotels | 16,986 | (5,722 | ) | 11,264 | 59,482 | (22,264 | ) | 37,218 | |||||||||||||
Non-Core Assets: | |||||||||||||||||||||
Hyatt Regency Phoenix | 2,692 | — | 2,692 | 10,770 | — | 10,770 | |||||||||||||||
Marriott Lincolnshire Resort | 2,339 | — | 2,339 | 7,482 | — | 7,482 | |||||||||||||||
Total Non-Core Assets | 5,031 | — | 5,031 | 18,252 | — | 18,252 | |||||||||||||||
$ | 90,312 | $ | (15,525 | ) | $ | 74,787 | $ | 346,388 | $ | (58,068 | ) | $ | 288,320 | ||||||||
% of QTD Comparable EBITDA | % of YTD Comparable EBITDA | |||||
Meetings & Business Hotels | 49 | % | 48 | % | ||
Ocean Front Resorts | 29 | % | 33 | % | ||
European Hotels | 15 | % | 13 | % | ||
Non-Core Assets | 7 | % | 6 | % | ||
Total | 100 | % | 100 | % | ||
26
Supplemental Financial Information
December 31, 2007
2008 Guidance
(in millions, except per share data)
Three Months Ended March 31, 2008 | Year Ended December 31, 2008 | |||||||||||||||
Low Range | High Range | Low Range | High Range | |||||||||||||
Operational Guidance | ||||||||||||||||
North American Total RevPAR growth | 0.5 | % | 1.5 | % | 2.0 | % | 5.0 | % | ||||||||
North American RevPAR growth | 1.5 | % | 2.5 | % | 2.0 | % | 5.0 | % | ||||||||
| Three Months Ended March 31, 2008 | | | Year Ended December 31, 2008 | | |||||||||||
Low Range | High Range | Low Range | High Range | |||||||||||||
Comparable FFO Guidance | ||||||||||||||||
Net (loss) income available to common shareholders | $ | (3.0 | ) | $ | — | $ | 4.0 | $ | 14.8 | |||||||
Depreciation and amortization | 26.4 | 26.4 | 120.8 | 120.8 | ||||||||||||
Realized portion of deferred gain on sale leasebacks | (1.1 | ) | (1.1 | ) | (4.6 | ) | (4.6 | ) | ||||||||
Deferred tax expense on realized portion of deferred gain on sale leasebacks | 0.4 | 0.4 | 1.4 | 1.4 | ||||||||||||
Minority interests | 0.1 | 0.1 | 0.5 | 0.7 | ||||||||||||
Adjustments from consolidated affiliates | (1.6 | ) | (1.6 | ) | (6.3 | ) | (6.3 | ) | ||||||||
Adjustments from unconsolidated affiliates | 1.5 | 1.5 | 6.0 | 6.0 | ||||||||||||
Comparable FFO | $ | 22.7 | $ | 25.7 | $ | 121.8 | $ | 132.8 | ||||||||
Comparable FFO per diluted share | $ | 0.30 | $ | 0.34 | $ | 1.60 | $ | 1.75 | ||||||||
| Three Months Ended March 31, 2008 |
| | Year Ended December 31, 2008 | | |||||||||||
Low Range | High Range | Low Range | High Range | |||||||||||||
Comparable EBITDA Guidance | ||||||||||||||||
Net (loss) income available to common shareholders | $ | (3.0 | ) | $ | — | $ | 4.0 | $ | 14.8 | |||||||
Depreciation and amortization | 26.4 | 26.4 | 120.8 | 120.8 | ||||||||||||
Interest expense | 21.7 | 21.7 | 91.9 | 91.9 | ||||||||||||
Income taxes | (0.1 | ) | (0.1 | ) | 10.9 | 10.9 | ||||||||||
Minority interests | 0.1 | 0.1 | 0.5 | 0.7 | ||||||||||||
Adjustments from consolidated affiliates | (2.6 | ) | (2.6 | ) | (14.5 | ) | (14.5 | ) | ||||||||
Adjustments from unconsolidated affiliates | 5.3 | 5.3 | 24.0 | 24.0 | ||||||||||||
Preferred shareholder dividends | 7.7 | 7.7 | 30.9 | 30.9 | ||||||||||||
Realized portion of deferred gain on sale leasebacks | (1.1 | ) | (1.1 | ) | (4.6 | ) | (4.6 | ) | ||||||||
Comparable EBITDA | $ | 54.4 | $ | 57.4 | $ | 263.9 | $ | 274.9 | ||||||||
27