Exhibit 12.1
RFS Hotel Investors, Inc.
Computation of Ratio of Earnings to Fixed Charges
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2001 Supplemental |
| 2002 |
| 2002 Supplemental |
|
|
| (Note A) |
| (Note A) |
| (Note A) |
| (Note A) |
| (Note B) |
| (Note A) |
| (Note B) |
|
Ratio of Earnings to Fixed Charges: |
|
|
|
|
|
|
|
|
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|
|
|
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Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
| 34,068 |
| 34,990 |
| 30,790 |
| (13,729 | ) | 23,381 |
| (3,788 | ) | 5,490 |
|
Add minority interest in consolidated subsidiaries |
| 3,655 |
| 3,620 |
| 3,218 |
| (1,157 |
| 2,495 |
| (644 | ) | 200 |
|
Add fixed charges |
| 18,935 |
| 21,936 |
| 24,652 |
| 26,042 |
| 26,042 |
| 27,101 |
| 27,101 |
|
Add amortization of capitalized interest |
| 73 |
| 100 |
| 115 |
| 115 |
| 115 |
| 115 |
| 115 |
|
Deduct capitalized interest |
| (1,400 | ) | (1,100 | ) | (600 | ) |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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Total Earnings |
| 55,331 |
| 59,546 |
| 58,175 |
| 11,271 |
| 52,033 |
| 22,784 |
| 32,906 |
|
|
|
|
|
|
|
|
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|
|
|
|
|
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Fixed Charges |
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
Interest expensed, including amortization of debt costs |
| 17,535 |
| 20,836 |
| 24,052 |
| 26,042 |
| 26,042 |
| 27,101 |
| 27,101 |
|
Capitalized interest |
| 1,400 |
| 1,100 |
| 600 |
|
|
|
|
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|
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|
|
|
|
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|
|
|
|
|
|
Total Fixed Charges |
| 18,935 |
| 21,936 |
| 24,652 |
| 26,042 |
| 26,042 |
| 27,101 |
| 27,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of Earnings to Fixed Charges: |
| 2.9x |
| 2.7x |
| 2.4x |
| 0.4x |
| 2.0x |
| 0.8x |
| 1.2x |
|
RFS Partnership, L.P.
Computation of Ratio of Earnings to Fixed Charges
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2001 Supplemental |
| 2002 |
| 2002 Supplemental |
|
|
| (Note A) |
| (Note A) |
| (Note A) |
| (Note A) |
| (Note B) |
| (Note A) |
| (Note B) |
|
Ratio of Earnings to Fixed Charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
| 37,723 |
| 38,610 |
| 34,008 |
| (14,886 | ) | 25,876 |
| (4,432 | ) | 5,690 |
|
Add fixed charges |
| 18,935 |
| 21,936 |
| 24,652 |
| 26,042 |
| 26,042 |
| 27,101 |
| 27,101 |
|
Add amortization of capitalized interest |
| 73 |
| 100 |
| 115 |
| 115 |
| 115 |
| 115 |
| 115 |
|
Deduct capitalized interest |
| (1,400 | ) | (1,100 | ) | (600 | ) |
|
|
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|
|
|
|
|
|
|
|
|
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|
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|
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Total Earnings |
| 55,331 |
| 59,546 |
| 58,175 |
| 11,271 |
| 52,033 |
| 22,784 |
| 32,906 |
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Fixed Charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expensed, including amortization of debt costs |
| 17,535 |
| 20,836 |
| 24,052 |
| 26,042 |
| 26,042 |
| 27,101 |
| 27,101 |
|
Capitalized interest |
| 1,400 |
| 1,100 |
| 600 |
|
|
|
|
|
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Total Fixed Charges |
| 18,935 |
| 21,936 |
| 24,652 |
| 26,042 |
| 26,042 |
| 27,101 |
| 27,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of Earnings to Fixed Charges: |
| 2.9x |
| 2.7x |
| 2.4x |
| 0.4x |
| 2.0x |
| 0.8x |
| 1.2x |
|
A. For the purpose of computing the ratio of earnings to fixed charges, earnings consist of net income (loss) plus fixed charges, plus the amortization of capitalized interest and less capitalized interest. Fixed charges consist of interest, whether expensed or capitalized, and amortization of loan costs. For the years ended December 31, 2002 and 2001, the ratio of earnings to fixed charges was less than 1:1 and earnings were insufficient to cover fixed charges by $4.3 and $14.8 million, respectively.
B. The supplemental ratio of earnings to fixed charges is computed the same as described in footnote (A) except that net income is adjusted to add back the debt extinguishment and swap termination costs of $10.1 million in 2002 and Hilton lease termination expense, net of deferred income taxes, of $40.8 million in 2001.