Exhibit 99.1
NEWS RELEASE
| | | | | |
| Contact: | | David Kimichik | | Tripp Sullivan |
| | | Chief Financial Officer | | Corporate Communications, Inc. |
| | | (972) 490-9600 | | (615) 254-3376 |
ASHFORD HOSPITALITY TRUST REPORTS THIRD QUARTER RESULTS
DALLAS ? (November 1, 2006) ? Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the third quarter ended September 30, 2006. The proforma performance measurements for Occupancy, ADR, RevPAR, and Hotel Operating Profit include the Company’s 73 hotels. Unless otherwise stated, all reported results compare the third quarter ended September 30, 2006, to the third quarter ended September 30, 2005. The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.
FINANCIAL HIGHLIGHTS
| | • | | Total revenue increased 25.4% to $126.3 million from $100.7 million |
| | • | | Net income available to common shareholders increased 76.9% to $5.9 million from $3.4 million |
| | • | | Net income available to common shareholders per share increased 12.5% to $0.09 from $0.08 |
| | • | | Adjusted funds from operations (AFFO) increased 46.8% to $22.3 million from $15.2 million |
| | • | | Cash available for distribution (CAD) increased 35.2% to $19.3 million from $14.3 million |
| | • | | Declared quarterly common dividend of $0.20 per share |
| | • | | Dividend coverage YTD reaches 127% of CAD |
STRONG INTERNAL GROWTH
| | • | | Proforma revenue per available room (RevPAR) increased 9.5% for hotels not under renovation on a 6.4% increase in ADR to $115.4 and a 293-basis point improvement in occupancy |
| | • | | Proforma RevPAR increased 8.1% for all hotels on a 6.3% increase in ADR to $115.0 and 172-basis point improvement in occupancy |
| | • | | Proforma same-property hotel operating profit for hotels not under renovation improved 11.6% |
| | • | | Proforma same-property hotel operating profit margins for hotels not under renovation improved 124 basis points |
CAPITAL RECYCLING AND ASSET ALLOCATION
| | • | | Capex invested in third quarter and year-to-date totaled $10.7 million and $29.7 million, respectively |
| | • | | Capex estimated for the fourth quarter of 2006 totals $10 to $20 million |
EXTERNAL GROWTH CONTINUES TO ENHANCE RETURNS
| | • | | Total enterprise value improved to $1.8 billion at September 30, 2006 |
| | • | | Mezzanine and first mortgage loan portfolio totaled $97.6 million at September 30, 2006, with an average annual unleveraged yield of 13.5% |
| | • | | Acquired Marriott Crystal City Gateway in Arlington, Virginia, for $107.2 million and planned capital improvements of $13.0 million |
| | • | | Announced acquisition of Westin O’Hare in Chicago for $125 million and planned capital improvements of $6.1 million |
| | • | | Announced acquisition of seven-hotel, upper-upscale, full-service portfolio for $267.2 million, and planned capital improvements of $35.0 to $40.0 million. |
-MORE-
| | |
| | | |
| 14185 Dallas Parkway, Suite 1100, Dallas, TX 75254 | | Phone: (972) 490-9600 |
AHT Announces Second Quarter Results
Page 2
November 1, 2006
PORTFOLIO REVPAR AND EBITDA MARGIN GROWTH REFLECT BENEFIT OF VALUE-ADDED RENOVATIONS
As of September 30, 2006, the Company had a portfolio of direct hotel investments consisting of 73 properties, all of which were classified in continuing operations. During the third quarter, 67 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 73 hotels) and proforma not-under-renovation basis (67 hotels) is a measure that reflects a meaningful and more focused comparison of the operating results in its direct hotel portfolio. The Company’s reporting by region and brand includes the results of all 73 hotels. Details of each category are provided in the tables attached to this release.
| | • | | RevPAR growth by region was led by: West South Central (6 hotels) with a 33.4% increase; East North Central (11) with 13.2%; Mountain (5) with 12.4%; New England (4) with 11.5%; Middle Atlantic (4) with 9.3%; West North Central (2) with 5.2%; Pacific (8) with 5.1%; East South Central (4) with 3.2%; and South Atlantic (29) with 2.6%. |
| | • | | RevPAR growth by brand was led by: Radisson (6 hotels) with a 16.6% increase; Hilton (22) with 16.4%; InterContinental (2) with 10.3%; Starwood (2) with 5.1%; Marriott (37) with 3.6 %; Hyatt (2) with 0.1%; and independents (2) with a -0.6%. |
Ashford believes year-over-year Hotel EBITDA margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential comparisons. The range of published estimates on the Company Hotel EBITDA margin growth averaged 340bp as compared to the Company’s actual performance of a 90bp improvement. Given the substantial seasonality in the Company’s portfolio, to help investors better understand this seasonality the Company has begun providing quarterly detail on its Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and prior-year periods. Details of the quarterly calculations for the past two years are provided in tables attached to this release.
For all 73 hotels as of September 30, 2006, Proforma Hotel EBITDA (adjusted as if all hotels were included in both periods) increased 9.2% to $34.7 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) improved 90 basis points to 27.5%.
Monty J. Bennett, President and CEO, commented, “The performance of our portfolio and the timing and level of investment activity in the third quarter matched our stated goals. We produced yet another quarter of significant RevPAR growth and continued to improve our hotel operating profit margins. After completing a $162 million offering in late July, we made commitments to invest the capital in assets consistent with our strategy, while retaining capacity for additional transactions. Our asset management and investment teams have positioned our portfolio in strong, growing markets with high quality hotels.
FINANCING ACTIVITY LOWERS BORROWING COSTS
At September 30, 2006, the Company’s net debt, defined as total debt less cash, to total enterprise value, defined as net debt plus the market value of all common shares, preferred shares and operating partnership units outstanding, was 35.3% based upon the Company’s closing stock price of $11.93. As of September 30, 2006, the Company’s $754 million debt balance consisted of 100% of fixed-rate debt, with a total weighted average interest rate of 5.6%. The Company’s weighted average fixed-rate debt maturity is 9.1 years.
On July 25, 2006, in an underwritten follow-on public offering, the Company issued 14,950,000 shares of its common stock at $11.40 per share, which generated net proceeds of approximately $162 million. The net proceeds were used to pay-down the outstanding balance of $129 million on the Company’s credit facilities.
On September 8, 2006, the Company increased the maximum amount of its primary secured revolving credit facility to $150 million and reduced the interest rate to a range of 160 to 185 basis points over
-MORE-
AHT Announces Second Quarter Results
Page 3
November 1, 2006
LIBOR. The facility matures in August 2008 with two one-year extension options. Subject to certain conditions, the credit facility can be increased to $200 million.
THIRD QUARTER INVESTMENT ACTIVITY
On July 13, 2006, the Company acquired the 697-room Marriott Crystal City Gateway in Arlington, Virginia, for total consideration of $107.2 million. The consideration includes the assumption of approximately $53.3 million of existing debt at a fixed interest rate of 7.24% maturing in 2017, reimbursement of approximately $7.2 million of capital expenditure costs by the seller, and the issuance of approximately $42.7 million of limited partnership units in our operating partnership. The limited partnership units issued were priced at $11.20 per unit and are considered Class B units. They have a fixed dividend rate on the $11.20 per unit price of 6.82% in years one through three and 7.2% thereafter, and have priority in payment of cash dividends over holders of common units and common stock. The units do not have a priority in liquidation, and after ten years either party may convert the units to common units. In addition, the Company paid approximately $2.5 million in cash in lieu of units and approximately $1.5 million in other net closing costs and adjustments.
On September 6, 2006, the Company signed a definitive agreement to acquire the 525-room Westin O’Hare in Rosemont, Illinois, for $125 million in cash. Ashford intends to invest an additional $6.1 million in renovations over the first 24 months. On a trailing 12-month basis, the purchase price represents a cap rate of 6.5% on net operating income, an EBITDA yield of 7.8% and a 12.9x EBITDA multiple. Ashford will fund the acquisition with proceeds from its July 2006 follow-on offering and property-level debt. The acquisition is expected to close on or before November 9, 2006.
On September 15, 2006, the Company signed a definitive agreement to acquire seven full-service, upper-upscale hotels in six states totaling 2,004 rooms for $267.2 million in cash. Ashford intends to invest approximately $35.0 to $40.0 million in revenue-generating brand improvements during the first 12 months. The purchase price represents a trailing 12-month cap rate of 6.0% on net operating income, an EBITDA yield of 7.5% and a 13.4x EBITDA multiple. Ashford will fund the acquisition with proceeds from its July 2006 follow-on offering along with property level financing. Ashford will change management of the hotels from an affiliate of Interstate Hotels and Resorts to an affiliate of Remington Lodging and Hospitality. The acquisition is expected to close on or before December 7, 2006.
INVESTMENT OUTLOOK
Mr. Bennett concluded, “The outlook for the lodging industry and for Ashford remains very optimistic. Looking ahead to the fourth quarter and to 2007, we believe we are in the best financial shape in three years. Combined with our proven internal growth strategies of renovations, repositioning and capital recycling, this favorable environment positions us well for a strong finish to 2006.”
INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Trust, Inc. will conduct a conference call at 11:00 a.m. ET on November 2, 2006, to discuss the third quarter results. The number to call for this interactive teleconference is 913-981-5520. A seven-day replay of the conference call will be available by dialing 719-457-0820 and entering the confirmation number, 7598564.
The Company will also provide an online simulcast and rebroadcast of its third quarter 2006 earnings release conference call. The live broadcast of Ashford’s quarterly conference call will be available online at the Company’s website atwww.ahtreit.com as well as onhttp://www.videonewswire.com/event.asp?id=35709 on November 2, 2006, beginning at 11:00 a.m. eastern time. The online replay will follow shortly after the call and continue for approximately one year.
Substantially all of our non-current assets consist of real estate investments and debt investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real
-MORE-
AHT Announces Second Quarter Results
Page 4
November 1, 2006
estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to be helpful in evaluating a real estate company’s operations. These supplemental measures include FFO, AFFO, EBITDA, Hotel Operating Profit, and CAD. FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us. Neither FFO, AFFO, EBITDA, Hotel Operating Profit, nor CAD represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to fund our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, Hotel Operating Profit, and CAD to be meaningful measures of a REIT’s performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.
* * * * *
Ashford Hospitality Trust is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, first mortgages, mezzanine loans and sale-leaseback transactions. Additional information can be found on the Company’s web site atwww.ahtreit.com.
Certain statements and assumptions in this press release contain or are based upon “forward-looking” information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. When we use the words “will likely result,” “may,” “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” or similar expressions, we intend to identify forward-looking statements. Such forward-looking statements include, but are not limited to, our business and investment strategy, timing for closings, our understanding of our competition, current market trends and opportunities, and projected capital expenditures. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford’s control.
These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in the section entitled “Risk Factors” in Ashford’s Registration Statement onForm S-3, (File Number 333-131878), and from time to time, in Ashford’s other filings with the Securities and Exchange Commission.
The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.
-MORE-
ASHFORD HOSPITALITY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
| | | | | | | | | |
| | | September 30, | | | December 31, | |
| | | 2006 | | | 2005 | |
ASSETS | | | | | | | | |
| Investment in hotel properties, net | | $ | 1,351,950 | | | $ | 1,106,668 | |
| Cash and cash equivalents | | | 111,690 | | | | 57,995 | |
| Restricted cash | | | 15,387 | | | | 27,842 | |
| Accounts receivable, net of allowance of $355 and $366, respectively | | | 21,819 | | | | 21,355 | |
| Inventories | | | 1,387 | | | | 1,186 | |
| Assets held for sale | | | 2,451 | | | | 117,873 | |
| Notes receivable | | | 97,357 | | | | 107,985 | |
| Deferred costs, net | | | 12,822 | | | | 13,975 | |
| Prepaid expenses | | | 4,451 | | | | 9,662 | |
| Other assets | | | 33,228 | | | | 4,014 | |
| Intangible assets, net | | | 1,057 | | | | 1,181 | |
| Due from third-party hotel managers | | | 19,997 | | | | 12,274 | |
| Due from affiliates | | | 753 | | | | 476 | |
| | | | | | | |
| Total assets | | $ | 1,674,349 | | | $ | 1,482,486 | |
| | | | | | | |
| | | | | | | | | |
LIABILITIES AND OWNERS’ EQUITY | | | | | | | | |
| Indebtedness | | $ | 753,654 | | | $ | 908,623 | |
| Capital leases payable | | | 221 | | | | 453 | |
| Accounts payable | | | 13,322 | | | | 9,984 | |
| Accrued expenses | | | 28,314 | | | | 21,054 | |
| Dividends payable | | | 19,880 | | | | 13,703 | |
| Deferred income | | | 304 | | | | 338 | |
| Deferred incentive managent fees | | | 4,655 | | | | — | |
| Unfavorable contract liability | | | 15,599 | | | | — | |
| Due to third-party hotel managers | | | 1,929 | | | | 1,385 | |
| Due to affiliates | | | 1,829 | | | | 5,654 | |
| | | | | | | |
| Total liabilities | | | 839,707 | | | | 961,194 | |
| | | | | | | | | |
| Commitments and contingencies | | | | | | | | |
| Minority interest | | | 118,832 | | | | 87,969 | |
| Preferred stock, $0.01 par value: | | | | | | | | |
| Series B Cumulative Convertible Redeemable Preferred Stock, 7,447,865 issued and outstanding at September 30, 2006 and December 31, 2005 | | | 75,000 | | | | 75,000 | |
| | | | | | | | | |
| Preferred stock, $0.01 par value, 50,000,000 shares authorized: | | | | | | | | |
| Series A Cumulative Preferred Stock, 2,300,000 issued and outstanding at September 30, 2006 and December 31, 2005 | | | 23 | | | | 23 | |
| Common stock, $0.01 par value, 200,000,000 shares authorized, 72,321,695 and 43,831,394 shares issued and outstanding at September 30, 2006 and December 31, 2005, respectively | | | 723 | | | | 438 | |
| Additional paid-in capital | | | 700,625 | | | | 403,919 | |
| Unearned compensation | | | — | | | | (4,792 | ) |
| Accumulated other comprehensive income | | | 369 | | | | 1,372 | |
| Accumulated deficit | | | (60,930 | ) | | | (42,637 | ) |
| | | | | | | |
| Total owners’ equity | | | 640,810 | | | | 358,323 | |
| | | | | | | | | |
| | | | | | | |
| Total liabilities and owners’ equity | | $ | 1,674,349 | | | $ | 1,482,486 | |
| | | | | | | |
ASHFORD HOSPITALITY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months | | | Three Months | | | Nine Months | | | Nine Months | |
| | | Ended | | | Ended | | | Ended | | | Ended | |
| | | September 30, 2006 | | | September 30, 2005 | | | September 30, 2006 | | | September 30, 2005 | |
REVENUE | | | | | | | | | | | | | | | | |
| Rooms | | $ | 98,585 | | | $ | 79,098 | | | $ | 285,162 | | | $ | 175,274 | |
| Food and beverage | | | 18,796 | | | | 13,371 | | | | 54,079 | | | | 35,597 | |
| Other | | | 4,992 | | | | 4,139 | | | | 14,188 | | | | 9,699 | |
| | | | | | | | | | | | | |
| Total hotel revenue | | | 122,373 | | | | 96,608 | | | | 353,429 | | | | 220,570 | |
| | | | | | | | | | | | | | | | | |
| Interest income from notes receivable | | | 3,652 | | | | 3,825 | | | | 11,518 | | | | 9,488 | |
| Asset management fees from affiliates | | | 299 | | | | 292 | | | | 934 | | | | 940 | |
| | | | | | | | | | | | | |
Total Revenue | | | 126,324 | | | | 100,725 | | | | 365,881 | | | | 230,998 | |
| | | | | | | | | | | | | | | | | |
EXPENSES | | | | | | | | | | | | | | | | |
| Hotel operating expenses | | | | | | | | | | | | | | | | |
| Rooms | | | 22,559 | | | | 17,917 | | | | 62,895 | | | | 39,079 | |
| Food and beverage | | | 14,666 | | | | 10,673 | | | | 41,337 | | | | 26,952 | |
| Other direct | | | 2,279 | | | | 1,623 | | | | 6,033 | | | | 3,843 | |
| Indirect | | | 36,757 | | | | 30,346 | | | | 105,356 | | | | 68,559 | |
| Management fees | | | 4,668 | | | | 3,820 | | | | 13,884 | | | | 7,693 | |
| | | | | | | | | | | | | |
| Total hotel expenses | | | 80,929 | | | | 64,379 | | | | 229,505 | | | | 146,126 | |
| | | | | | | | | | | | | | | | | |
| Property taxes, insurance, and other | | | 7,439 | | | | 5,553 | | | | 19,887 | | | | 12,004 | |
| Depreciation and amortization | | | 13,812 | | | | 9,045 | | | | 37,120 | | | | 19,185 | |
| Loss on reclassification from discontinued to continuing | | | — | | | | — | | | | 863 | | | | — | |
| Corporate general and administrative: | | | | | | | | | | | | | | | | |
| Stock-based compensation | | | 1,411 | | | | 952 | | | | 4,120 | | | | 2,484 | |
| Other corporate and administrative | | | 3,398 | | | | 2,931 | | | | 10,838 | | | | 7,923 | |
| | | | | | | | | | | | | |
Total Operating Expenses | | | 106,989 | | | | 82,860 | | | | 302,333 | | | | 187,722 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
OPERATING INCOME | | | 19,335 | | | | 17,865 | | | | 63,548 | | | | 43,276 | |
| | | | | | | | | | | | | | | | | |
| Interest income | | | 1,005 | | | | 270 | | | | 2,065 | | | | 727 | |
| Interest expense | | | (10,940 | ) | | | (11,443 | ) | | | (33,703 | ) | | | (22,217 | ) |
| Amortization of loan costs | | | (495 | ) | | | (1,136 | ) | | | (1,470 | ) | | | (3,123 | ) |
| Write-off of loan costs and exit fees | | | — | | | | — | | | | (788 | ) | | | (151 | ) |
| Loss on debt extinguishment | | | — | | | | — | | | | — | | | | (2,257 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
INCOME BEFORE INCOME TAXES AND MINORITY INTEREST | | | 8,905 | | | | 5,556 | | | | 29,652 | | | | 16,255 | |
| | | | | | | | | | | | | | | | | |
| Benefit from (provision for) income taxes | | | 929 | | | | (1,235 | ) | | | 661 | | | | (1,213 | ) |
| Minority interest | | | (1,184 | ) | | | (873 | ) | | | (4,565 | ) | | | (3,068 | ) |
| | | | | | | | | | | | | |
INCOME FROM CONTINUING OPERATIONS | | | 8,650 | | | | 3,448 | | | | 25,748 | | | | 11,974 | |
| | | | | | | | | | | | | | | | | |
Income from discontinued operations, net | | | — | | | | 2,474 | | | | 1,387 | | | | 2,463 | |
| | | | | | | | | | | | | |
NET INCOME | | | 8,650 | | | | 5,922 | | | | 27,135 | | | | 14,437 | |
| | | | | | | | | | | | | | | | | |
| Preferred dividends | | | 2,719 | | | | 2,570 | | | | 8,156 | | | | 6,584 | |
| | | | | | | | | | | | | |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | | $ | 5,931 | | | $ | 3,352 | | | $ | 18,979 | | | $ | 7,853 | |
| | | | | | | | | | | | | |
Basic and Diluted: | | | | | | | | | | | | | | | | |
Income From Continuing Operations Per Share Available To Common Shareholders | | $ | 0.09 | | | $ | 0.02 | | | $ | 0.30 | | | $ | 0.14 | |
| | | | | | | | | | | | | |
Income From Discontinued Operations Per Share | | $ | — | | | $ | 0.06 | | | $ | 0.02 | | | $ | 0.06 | |
| | | | | | | | | | | | | |
Net Income Per Share Available To Common Shareholders | | $ | 0.09 | | | $ | 0.08 | | | $ | 0.32 | | | $ | 0.20 | |
| | | | | | | | | | | | | |
Weighted Average Common Shares Outstanding | | | 67,157,286 | | | | 43,145,657 | | | | 58,320,142 | | | | 39,199,479 | |
| | | | | | | | | | | | | |
ASHFORD HOSPITALITY TRUST, INC.
EBITDA
(In Thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months | | | Three Months | | | Nine Months | | | Nine Months | |
| | | Ended | | | Ended | | | Ended | | | Ended | |
| | | September 30, 2006 | | | September 30, 2005 | | | September 30, 2006 | | | September 30, 2005 | |
| Net income | | $ | 8,650 | | | $ | 5,922 | | | $ | 27,135 | | | $ | 14,437 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Add back: | | | | | | | | | | | | | | | | |
| Interest income | | | (1,005 | ) | | | (270 | ) | | | (2,065 | ) | | | (727 | ) |
| Interest expense and amortization of loan costs | | | 11,435 | | | | 12,579 | | | | 35,173 | | | | 25,340 | |
| Minority interest | | | 1,184 | | | | 1,500 | | | | 4,860 | | | | 3,690 | |
| Depreciation and amortization | | | 13,812 | | | | 9,045 | | | | 37,120 | | | | 19,185 | |
| Benefit from (provision for) income taxes | | | (929 | ) | | | 1,069 | | | | (692 | ) | | | 1,047 | |
| | | | | | | | | | | | | |
| | | | 24,497 | | | | 23,923 | | | | 74,396 | | | | 48,535 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| EBITDA | | $ | 33,147 | | | $ | 29,845 | | | $ | 101,531 | | | $ | 62,972 | |
| | | | | | | | | | | | | |
For the nine months ended September 30, 2006, EBITDA has not been adjusted to add back the write-off of loan costs of approximately $788,000 and the loss from reclassification from discontinued to continuing of approximately $863,000.
For the nine months ended September 30, 2005, EBITDA has not been adjusted to add back the loss on debt extinguishment of approximately $2.3 million and the write-off of loan costs and exit fees of approximately $151,000.
ASHFORD HOSPITALITY TRUST, INC.
FFO and Adjusted FFO
(In Thousands, Except Share And Per Share Amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months | | | Three Months | | | Nine Months | | | Nine Months | |
| | | Ended | | | Ended | | | Ended | | | Ended | |
| | | September 30, 2006 | | | September 30, 2005 | | | September 30, 2006 | | | September 30, 2005 | |
| Net income available to common shareholders | | $ | 5,931 | | | $ | 3,352 | | | $ | 18,979 | | | $ | 7,853 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Plus real estate depreciation and amortization | | | 13,734 | | | | 9,023 | | | | 36,887 | | | | 19,126 | |
| Remove minority interest | | | 1,184 | | | | 1,500 | | | | 4,860 | | | | 3,690 | |
| | | | | | | | | | | | | |
| FFO available to common shareholders | | $ | 20,849 | | | $ | 13,875 | | | $ | 60,726 | | | $ | 30,669 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Add back dividends on convertible preferred stock | | | 1,490 | | | | 1,341 | | | | 4,469 | | | | 2,897 | |
| Add back write-off of loan costs and exit fees | | | — | | | | — | | | | 788 | | | | 151 | |
| Add back loss on debt extinguishment | | | — | | | | — | | | | — | | | | 2,257 | |
| Add back loss from reclassification of discontinued to continuing | | | — | | | | — | | | | 863 | | | | — | |
| | | | | | | | | | | | | |
| Adjusted FFO | | $ | 20,849 | | | $ | 15,216 | | | $ | 60,726 | | | $ | 35,974 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Adjusted FFO per diluted share available to common shareholders | | $ | 0.25 | | | $ | 0.25 | | | $ | 0.86 | | | $ | 0.68 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Diluted weighted average shares outstanding | | | 88,343,497 | | | | 61,834,146 | | | | 77,957,660 | | | | 52,813,148 | |
| | | | | | | | | | | | | |
ASHFORD HOSPITALITY TRUST, INC.
CASH AVAILABLE FOR DISTRIBUTION (“CAD”)
(In Thousands, Except Per Share Amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months | | | | | | | Three Months | | | | |
| | | Ended | | | | | | | Ended | | | | |
| | | September 30, 2006 | | | (per diluted share) | | | September 30, 2005 | | | (per diluted share) | |
| Net income available to common shareholders | | $ | 5,931 | | | $ | 0.07 | | | $ | 3,352 | | | $ | 0.05 | |
| Add back dividends on convertible preferred stock | | | 1,490 | | | | 0.02 | | | | 1,341 | | | | 0.02 | |
| | | | | | | | | | | | | |
| Total | | $ | 7,421 | | | $ | 0.08 | | | $ | 4,693 | | | $ | 0.08 | |
| | | | | | | | | | | | | | | | | |
| Plus real estate depreciation and amortization | | | 13,734 | | | $ | 0.16 | | | | 9,023 | | | $ | 0.15 | |
| Remove minority interest | | | 1,184 | | | | 0.01 | | | | 1,500 | | | | 0.02 | |
| Plus stock-based compensation | | | 1,411 | | | | 0.02 | | | | 952 | | | | 0.02 | |
| Plus amortization of loan costs | | | 495 | | | | 0.01 | | | | 1,136 | | | | 0.02 | |
| Plus write-off of loan costs | | | — | | | | 0.00 | | | | — | | | | 0.00 | |
| Plus loss on debt extinguishment | | | — | | | | 0.00 | | | | — | | | | 0.00 | |
| Plus loss from reclassification of discontinued to continuing | | | — | | | | 0.00 | | | | — | | | | 0.00 | |
| Less debt premium amortization to reduce interest expense | | | (76 | ) | | | (0.00 | ) | | | (194 | ) | | | (0.00 | ) |
| Less capital improvements reserve | | | (4,864 | ) | | | (0.06 | ) | | | (2,832 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | |
| CAD | | $ | 19,305 | | | $ | 0.22 | | | $ | 14,278 | | | $ | 0.23 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Nine Months | | | | | | | Nine Months | | | | |
| | | Ended | | | | | | | Ended | | | | |
| | | September 30, 2006 | | | (per diluted share) | | | September 30, 2005 | | | (per diluted share) | |
| Net income available to common shareholders | | $ | 18,979 | | | $ | 0.24 | | | $ | 7,853 | | | $ | 0.15 | |
| Add back dividends on convertible preferred stock | | | 4,469 | | | | 0.06 | | | | 2,897 | | | | 0.05 | |
| | | | | | | | | | | | | |
| Total | | $ | 23,448 | | | $ | 0.30 | | | $ | 10,750 | | | $ | 0.20 | |
| | | | | | | | | | | | | | | | | |
| Plus real estate depreciation and amortization | | | 36,887 | | | $ | 0.47 | | | | 19,126 | | | $ | 0.36 | |
| Remove minority interest | | | 4,860 | | | | 0.06 | | | | 3,690 | | | | 0.07 | |
| Plus stock-based compensation | | | 4,120 | | | | 0.05 | | | | 2,484 | | | | 0.05 | |
| Plus amortization of loan costs | | | 1,470 | | | | 0.02 | | | | 3,123 | | | | 0.06 | |
| Plus write-off of loan costs | | | 788 | | | | 0.01 | | | | 151 | | | | 0.00 | |
| Plus loss on debt extinguishment | | | — | | | | — | | | | 2,257 | | | | 0.04 | |
| Plus loss from reclassification of discontinued to continuing | | | 863 | | | | 0.01 | | | | — | | | | 0.00 | |
| Less debt premium amortization to reduce interest expense | | | (76 | ) | | | (0.00 | ) | | | (463 | ) | | | (0.01 | ) |
| Less capital improvements reserve | | | (12,816 | ) | | | (0.16 | ) | | | (7,230 | ) | | | (0.14 | ) |
| | | | | | | | | | | | | |
| CAD | | $ | 59,544 | | | $ | 0.76 | | | $ | 33,888 | | | $ | 0.64 | |
| | | | | | | | | | | | | |
ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT
(In Thousands)
(Unaudited)
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, 2006 | | | September 30, 2005 | | | % Variance | | | September 30, 2006 | | | September 30, 2005 | | | % Variance | |
REVENUE | | | | | | | | | | | | | | | | | | | | | | | | |
| Rooms (1) | | $ | 101,193 | | | $ | 95,127 | | | | 6.38 | % | | $ | 311,763 | | | $ | 284,998 | | | | 9.39 | % |
| Food and beverage | | | 20,204 | | | | 19,491 | | | | 3.66 | % | | | 66,294 | | | | 62,988 | | | | 5.25 | % |
| Other | | | 4,535 | | | | 4,613 | | | | -1.69 | % | | | 13,702 | | | | 13,279 | | | | 3.19 | % |
| | | | | | | | | | | | | | | | | | | |
| Total hotel revenue | | | 125,932 | | | | 119,231 | | | | 5.62 | % | | | 391,759 | | | | 361,265 | | | | 8.44 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | |
| Hotel operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
| Rooms | | | 21,930 | | | | 20,925 | | | | 4.80 | % | | | 65,917 | | | | 61,363 | | | | 7.42 | % |
| Food and beverage | | | 15,679 | | | | 15,598 | | | | 0.52 | % | | | 50,103 | | | | 47,556 | | | | 5.36 | % |
| Other direct | | | 2,348 | | | | 2,298 | | | | 2.18 | % | | | 6,888 | | | | 6,553 | | | | 5.11 | % |
| Indirect | | | 38,334 | | | | 36,603 | | | | 4.73 | % | | | 114,932 | | | | 106,717 | | | | 7.70 | % |
| Management fees, includes base and incentive fees | | | 5,276 | | | | 5,488 | | | | -3.86 | % | | | 20,513 | | | | 17,542 | | | | 16.94 | % |
| | | | | | | | | | | | | | | | | | | |
| Total hotel operating expenses | | | 83,567 | | | | 80,912 | | | | 3.28 | % | | | 258,353 | | | | 239,731 | | | | 7.77 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Property taxes, insurance, and other | | | 7,690 | | | | 6,558 | | | | 17.26 | % | | | 21,476 | | | | 19,028 | | | | 12.87 | % |
| | | | | | | | | | | | | | | | | | | |
HOTEL OPERATING PROFIT (Hotel EBITDA) | | $ | 34,675 | | | $ | 31,761 | | | | 9.17 | % | | $ | 111,930 | | | $ | 102,506 | | | | 9.19 | % |
| | | | | | | | | | | | | | | | | | | |
NOTE: The above pro forma table assumes the 73 hotel properties owned at September 30, 2006 were owned as of the beginning of the periods presented.
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, 2006 | | | September 30, 2005 | | | % Variance | | | September 30, 2006 | | | September 30, 2005 | | | % Variance | |
REVENUE | | | | | | | | | | | | | | | | | | | | | | | | |
| Rooms (1) | | $ | 95,669 | | | $ | 88,920 | | | | 7.59 | % | | $ | 290,589 | | | $ | 264,132 | | | | 10.02 | % |
| Food and beverage | | | 19,080 | | | | 18,473 | | | | 3.29 | % | | | 62,227 | | | | 59,489 | | | | 4.60 | % |
| Other | | | 4,334 | | | | 4,307 | | | | 0.63 | % | | | 12,958 | | | | 12,453 | | | | 4.06 | % |
| | | | | | | | | | | | | | | | | | | |
| Total hotel revenue | | | 119,083 | | | | 111,700 | | | | 6.61 | % | | | 365,774 | | | | 336,074 | | | | 8.84 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | |
| Hotel operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
| Rooms | | | 20,557 | | | | 19,534 | | | | 5.24 | % | | | 61,439 | | | | 57,114 | | | | 7.57 | % |
| Food and beverage | | | 14,783 | | | | 14,694 | | | | 0.61 | % | | | 46,998 | | | | 44,764 | | | | 4.99 | % |
| Other direct | | | 2,268 | | | | 2,225 | | | | 1.93 | % | | | 6,649 | | | | 6,351 | | | | 4.69 | % |
| Indirect | | | 36,178 | | | | 34,535 | | | | 4.76 | % | | | 108,436 | | | | 100,567 | | | | 7.82 | % |
| Management fees, includes base and incentive fees | | | 5,150 | | | | 5,077 | | | | 1.44 | % | | | 19,101 | | | | 16,184 | | | | 18.02 | % |
| | | | | | | | | | | | | | | | | | | |
| Total hotel operating expenses | | | 78,936 | | | | 76,065 | | | | 3.77 | % | | | 242,623 | | | | 224,980 | | | | 7.84 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Property taxes, insurance, and other | | | 7,211 | | | | 6,122 | | | | 17.79 | % | | | 19,934 | | | | 17,609 | | | | 13.20 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
HOTEL OPERATING PROFIT (Hotel EBITDA) | | $ | 32,936 | | | $ | 29,513 | | | | 11.60 | % | | $ | 103,217 | | | $ | 93,485 | | | | 10.41 | % |
| | | | | | | | | | | | | | | | | | | |
NOTE: The above pro forma table assumes the 67 hotel properties owned at September 30, 2006 but not under renovation for the three and nine months ended September 30, 2006 were owned as of the beginning of the periods presented.
| | |
| (1) | | On March 26, 2006, the Company converted its Radisson hotel in Ft. Worth, Texas, to a Hilton hotel, which resulted in a room count reduction from 517 to 294. Consequently, the increase in pro forma RevPAR exceeded the increase in pro forma room revenues for the three and nine months ended September 30, 2006 compared to the same 2005 periods. |
ASHFORD HOSPITALITY TRUST, INC.
KEY PERFORMANCE INDICATORS — PRO FORMA
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30, | | September 30, |
| | | 2006 | | 2005 | | % Variance | | 2006 | | 2005 | | % Variance |
| ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Room revenues (1) | | $ | 101,192,627 | | | $ | 95,127,144 | | | | 6.38 | % | | $ | 311,763,010 | | | $ | 284,997,523 | | | | 9.39 | % |
| RevPAR (1) | | $ | 87.43 | | | $ | 80.86 | | | | 8.13 | % | | $ | 89.96 | | | $ | 81.35 | | | | 10.58 | % |
| Occupancy | | | 76.03 | % | | | 74.74 | % | | | 1.72 | % | | | 75.65 | % | | | 73.84 | % | | | 2.45 | % |
| ADR | | $ | 114.99 | | | $ | 108.18 | | | | 6.30 | % | | $ | 118.91 | | | $ | 110.17 | | | | 7.93 | % |
NOTE: The above pro forma table assumes the 73 hotel properties owned at September 30, 2006 were owned as of the beginning of the periods presented.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30, | | September 30, |
| | | 2006 | | 2005 | | % Variance | | 2006 | | 2005 | | % Variance |
| ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Room revenues (1) | | $ | 95,669,278 | | | $ | 88,919,636 | | | | 7.59 | % | | $ | 290,588,824 | | | $ | 264,132,297 | | | | 10.02 | % |
| RevPAR (1) | | $ | 89.11 | | | $ | 81.38 | | | | 9.50 | % | | $ | 90.38 | | | $ | 81.20 | | | | 11.30 | % |
| Occupancy | | | 77.20 | % | | | 75.00 | % | | | 2.93 | % | | | 76.08 | % | | | 73.83 | % | | | 3.05 | % |
| ADR | | $ | 115.43 | | | $ | 108.51 | | | | 6.38 | % | | $ | 118.80 | | | $ | 109.99 | | | | 8.01 | % |
NOTE: The above pro forma table assumes the 67 hotel properties owned at September 30, 2006 but not under renovation for the three and nine months ended September 30, 2006 were owned as of the beginning of the periods presented.
Excluded Hotels Under Renovation:
Courtyard Crystal City Reagan Airport, SpringHill Suites Kennesaw, SpringHill Suites Jacksonville, Sea Turtle Inn Jacksonville,
Courtyard Palm Desert, Courtyard Atlanta Alpharetta
| | |
| (1) | | On March 26, 2006, the Company converted its Radisson hotel in Ft. Worth, Texas, to a Hilton hotel, which resulted in a room count reduction from 517 to 294. Consequently, the increase in pro forma RevPAR exceeded the increase in pro forma room revenues for the three and nine months ended September 30, 2006 compared to the same 2005 periods. |
ASHFORD HOSPITALITY TRUST, INC.
Pro Forma Hotel RevPAR by Region
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Three Months Ended | | | Nine Months Ended | | | Percent | |
| | | | | | | | | | | September 30, | | | September 30, | | | Change in RevPAR | |
| Region | | Number of Hotels | | | Number of Rooms | | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | Quarter | | | YTD | |
| Pacific (1) | | | 8 | | | | 1,966 | | | $ | 99.64 | | | $ | 94.80 | | | $ | 102.38 | | | $ | 94.62 | | | | 5.1 | % | | | 8.2 | % |
| Mountain (2) | | | 5 | | | | 869 | | | $ | 100.11 | | | $ | 89.03 | | | $ | 99.34 | | | $ | 90.82 | | | | 12.4 | % | | | 9.4 | % |
| West North Central (3) | | | 2 | | | | 390 | | | $ | 82.18 | | | $ | 78.13 | | | $ | 76.13 | | | $ | 71.61 | | | | 5.2 | % | | | 6.3 | % |
| West South Central (4) | | | 6 | | | | 1,082 | | | $ | 92.48 | | | $ | 69.34 | | | $ | 89.01 | | | $ | 69.10 | | | | 33.4 | % | | | 28.8 | % |
| East North Central (5) | | | 11 | | | | 1,682 | | | $ | 69.95 | | | $ | 61.79 | | | $ | 66.02 | | | $ | 58.18 | | | | 13.2 | % | | | 13.5 | % |
| East South Central (6) | | | 4 | | | | 573 | | | $ | 67.37 | | | $ | 65.29 | | | $ | 64.48 | | | $ | 60.87 | | | | 3.2 | % | | | 5.9 | % |
| Middle Atlantic (7) | | | 4 | | | | 685 | | | $ | 97.08 | | | $ | 88.84 | | | $ | 80.15 | | | $ | 71.16 | | | | 9.3 | % | | | 12.6 | % |
| South Atlantic (8) | | | 29 | | | | 5,226 | | | $ | 89.04 | | | $ | 86.75 | | | $ | 100.82 | | | $ | 93.45 | | | | 2.6 | % | | | 7.9 | % |
| New England (9) | | | 4 | | | | 490 | | | $ | 64.36 | | | $ | 57.73 | | | $ | 51.56 | | | $ | 46.65 | | | | 11.5 | % | | | 10.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Portfolio | | | 73 | | | | 12,963 | | | $ | 87.43 | | | $ | 80.86 | | | $ | 89.96 | | | $ | 81.35 | | | | 8.1 | % | | | 10.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Includes California |
| |
| (2) | | Includes Nevada, Arizona, New Mexico and Utah |
| |
| (3) | | Includes Minnesota and Kansas |
| |
| (4) | | Includes Texas |
| |
| (5) | | Includes Ohio and Indiana |
| |
| (6) | | Includes Kentucky and Alabama |
| |
| (7) | | Includes New York, New Jersey and Pennsylvania |
| |
| (8) | | Includes Virginia, Florida, Georgia, Maryland, and North Carolina |
| |
| (9) | | Includes Massachusetts and Maine |
NOTE: The above pro forma table assumes the 73 hotel properties owned as of September 30, 2006 were owned as of the beginning of the periods presented.
ASHFORD HOSPITALITY TRUST, INC.
Pro Forma Hotel RevPAR by Brand
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Three Months Ended | | | Nine Months Ended | | | Percent | |
| | | | | | | | | | | September 30, | | | September 30, | | | Change in RevPAR | |
| Brand | | Number of Hotels | | | Number of Rooms | | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | Quarter | | | YTD | |
| Hilton | | | 22 | | | | 3,638 | | | $ | 88.15 | | | $ | 75.74 | | | $ | 88.87 | | | $ | 77.28 | | | | 16.4 | % | | | 15.0 | % |
| Hyatt | | | 2 | | | | 970 | | | $ | 96.10 | | | $ | 95.97 | | | $ | 99.00 | | | $ | 93.86 | | | | 0.1 | % | | | 5.5 | % |
| InterContinental | | | 2 | | | | 420 | | | $ | 118.83 | | | $ | 107.70 | | | $ | 136.27 | | | $ | 120.02 | | | | 10.3 | % | | | 13.5 | % |
| Independent | | | 2 | | | | 317 | | | $ | 79.87 | | | $ | 80.34 | | | $ | 82.41 | | | $ | 85.54 | | | | -0.6 | % | | | -3.7 | % |
| Marriott | | | 37 | | | | 5,855 | | | $ | 87.08 | | | $ | 84.06 | | | $ | 93.88 | | | $ | 86.13 | | | | 3.6 | % | | | 9.0 | % |
| Radisson | | | 6 | | | | 1,354 | | | $ | 68.50 | | | $ | 58.74 | | | $ | 60.10 | | | $ | 54.62 | | | | 16.6 | % | | | 10.0 | % |
| Starwood | | | 2 | | | | 409 | | | $ | 101.64 | | | $ | 96.71 | | | $ | 82.77 | | | $ | 71.58 | | | | 5.1 | % | | | 15.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Portfolio | | | 73 | | | | 12,963 | | | $ | 87.43 | | | $ | 80.86 | | | $ | 89.96 | | | $ | 81.35 | | | | 8.1 | % | | | 10.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NOTE: The above pro forma table assumes the 73 hotel properties owned as of September 30, 2006 were owned as of the beginning of the periods presented.
ASHFORD HOSPITALITY TRUST, INC.
Pro Forma Hotel Operating Profit by Region
(In Thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Three Months Ended | | | | | | | | | | | Nine Months Ended | | | | | | | Percent Change in | |
| | | | | | | | | | | September 30, | | | September 30, | | | Hotel Operating Profit | |
| Region | | Number of Hotels | | | Number of Rooms | | | 2006 | | | % Total | | | 2005 | | | % Total | | | 2006 | | | % Total | | | 2005 | | | % Total | | | Quarter | | | YTD | |
| Pacific (1) | | | 8 | | | | 1,966 | | | $ | 5,404 | | | | 15.6 | % | | $ | 5,932 | | | | 18.7 | % | | $ | 18,604 | | | | 16.6 | % | | $ | 19,190 | | | | 18.7 | % | | | -8.9 | % | | | -3.1 | % |
| Mountain (2) | | | 5 | | | | 869 | | | $ | 3,059 | | | | 8.8 | % | | $ | 2,475 | | | | 7.8 | % | | $ | 8,893 | | | | 7.9 | % | | $ | 7,638 | | | | 7.5 | % | | | 23.6 | % | | | 16.4 | % |
| West North Central (3) | | | 2 | | | | 390 | | | $ | 1,227 | | | | 3.5 | % | | $ | 1,131 | | | | 3.6 | % | | $ | 3,170 | | | | 2.8 | % | | $ | 2,928 | | | | 2.9 | % | | | 8.5 | % | | | 8.3 | % |
| West South Central (4) | | | 6 | | | | 1,082 | | | $ | 2,934 | | | | 8.5 | % | | $ | 2,279 | | | | 7.2 | % | | $ | 8,086 | | | | 7.2 | % | | $ | 7,058 | | | | 6.9 | % | | | 28.7 | % | | | 14.6 | % |
| East North Central (5) | | | 11 | | | | 1,682 | | | $ | 4,117 | | | | 11.9 | % | | $ | 2,817 | | | | 8.9 | % | | $ | 10,730 | | | | 9.6 | % | | $ | 8,394 | | | | 8.2 | % | | | 46.1 | % | | | 27.8 | % |
| East South Central (6) | | | 4 | | | | 573 | | | $ | 1,157 | | | | 3.3 | % | | $ | 1,154 | | | | 3.6 | % | | $ | 3,259 | | | | 2.9 | % | | $ | 3,105 | | | | 3.0 | % | | | 0.3 | % | | | 5.0 | % |
| Middle Atlantic (7) | | | 4 | | | | 685 | | | $ | 2,256 | | | | 6.5 | % | | $ | 1,600 | | | | 5.0 | % | | $ | 4,419 | | | | 3.9 | % | | $ | 2,807 | | | | 2.7 | % | | | 41.0 | % | | | 57.4 | % |
| South Atlantic (8) | | | 29 | | | | 5,226 | | | $ | 13,640 | | | | 39.3 | % | | $ | 13,535 | | | | 42.6 | % | | $ | 53,481 | | | | 47.8 | % | | $ | 50,092 | | | | 48.9 | % | | | 0.8 | % | | | 6.8 | % |
| New England (9) | | | 4 | | | | 490 | | | $ | 881 | | | | 2.5 | % | | $ | 838 | | | | 2.6 | % | | $ | 1,288 | | | | 1.2 | % | | $ | 1,294 | | | | 1.3 | % | | | 5.1 | % | | | -0.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Portfolio | | | 73 | | | | 12,963 | | | $ | 34,675 | | | | 100.0 | % | | $ | 31,761 | | | | 100.0 | % | | $ | 111,930 | | | | 100.0 | % | | $ | 102,506 | | | | 100.0 | % | | | 9.2 | % | | | 9.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Includes California |
| |
| (2) | | Includes Nevada, Arizona, New Mexico and Utah |
| |
| (3) | | Includes Minnesota and Kansas |
| |
| (4) | | Includes Texas |
| |
| (5) | | Includes Ohio and Indiana |
| |
| (6) | | Includes Kentucky and Alabama |
| |
| (7) | | Includes New York, New Jersey and Pennsylvania |
| |
| (8) | | Includes Virginia, Florida, Georgia, Maryland, and North Carolina |
| |
| (9) | | Includes Massachusetts and Maine |
NOTE: The above pro forma table assumes the 73 hotel properties owned as of September 30, 2006 were owned as of the beginning of the periods presented.
ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT MARGIN
(Unaudited)
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:
HOTEL OPERATING PROFIT (EBITDA) MARGIN:
| | | | | |
| 3rd Quarter 2006 | | | 27.66 | % |
| 3rd Quarter 2005 | | | 26.42 | % |
| |
| Variance | | | 1.24 | % |
| |
HOTEL OPERATING PROFIT (EBITDA) MARGIN VARIANCE BREAKDOWN:
| | | | | |
| Rooms | | | 0.23 | % |
| Food & Beverage and Other Departmental | | | 0.83 | % |
| Administrative & General | | | 0.11 | % |
| Sales & Marketing | | | 0.30 | % |
| Hospitality | | | -0.02 | % |
| Repair & Maintenance | | | 0.26 | % |
| Energy | | | 0.05 | % |
| Franchise Fee | | | -0.39 | % |
| Management Fee | | | 0.02 | % |
| Incentive Management Fee | | | 0.20 | % |
| Insurance | | | -0.10 | % |
| Property Taxes | | | -0.47 | % |
| Leases/Other | | | 0.23 | % |
| |
| Total | | | 1.24 | % |
| |
ASHFORD HOSPITALITY TRUST, INC.
SEASONALITY TABLE
(In Thousands)
(Unaudited)
PRO FORMA RESULTS
ALL 73 HOTELS OWNED AS OF SEPTEMBER 30, 2006:
| | | | | | | | | | | | | | | | | | | | | |
| | | 1st Quarter | | 2nd Quarter | | 3rd Quarter | | 4th Quarter | | Year End |
2005 | | | | | | | | | | | | | | | | | | | | |
| Total Hotel Revenue | | | 115,511 | | | | 126,523 | | | | 119,231 | | | | 133,670 | | | | 494,935 | |
| Hotel EBITDA | | | 32,826 | | | | 37,914 | | | | 31,761 | | | | 33,267 | | | | 135,768 | |
| Hotel EBITDA Margin | | | 28.4 | % | | | 30.0 | % | | | 26.6 | % | | | 24.9 | % | | | 27.4 | % |
| | | | | | | | | | | | | | | | | | | | | |
2006 | | | | | | | | | | | | | | | | | | | | |
| Total Hotel Revenue | | | 126,190 | | | | 139,637 | | | | 125,932 | | | | | | | | | |
| Hotel EBITDA | | | 34,305 | | | | 42,950 | | | | 34,675 | | | | | | | | | |
| Hotel EBITDA Margin | | | 27.2 | % | | | 30.8 | % | | | 27.5 | % | | | | | | | | |
NOTE: The above pro forma table assumes that the 73 hotel properties owned at September 30, 2006 were owned as of the beginning of the periods presented.
ASHFORD HOSPITALITY TRUST, INC.
Capital Expenditures Calendar
73 Core Hotels
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | 2004 | | 2005 | | 2006 | | 2007 |
| | | | | | | Actual | | Actual | | Actual | | Actual | | Actual | | Actual | | Actual | | Actual | | Actual | | Actual | | Actual | | Estimated | | Estimated | | Estimated | | Estimated | | Estimated |
| | | Rooms | | 1st Quarter | | 2nd Quarter | | 3rd Quarter | | 4th Quarter | | 1st Quarter | | 2nd Quarter | | 3rd Quarter | | 4th Quarter | | 1st Quarter | | 2nd Quarter | | 3rd Quarter | | 4th Quarter | | 1st Quarter | | 2nd Quarter | | 3rd Quarter | | 4th Quarter |
Doubletree Suites Columbus | | | 194 | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Doubletree Suites Dayton | | | 137 | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Embassy Suites East Syracuse | | | 215 | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Embassy Suites Phoenix Airport | | | 229 | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sheraton Bucks County | | | 187 | | | | | | | | | | | | x | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hyatt Regency Orange County | | | 654 | | | | | | | | | | | | | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hampton Inn Mall of Georgia | | | 92 | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hampton Inn Terre Haute | | | 112 | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hampton Inn Horse Cave | | | 101 | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hampton Inn Evansville | | | 141 | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hilton St. Petersburg Bayfront | | | 333 | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fairfield Inn Evansville West | | | 110 | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fairfield Inn Princeton | | | 73 | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Courtyard Bloomington | | | 117 | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residence Inn Evansville | | | 78 | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | | | | | | |
Courtyard Columbus Tipton Lakes | | | 90 | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | | | | | | |
Radisson Milford | | | 173 | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residence Inn Salt Lake City | | | 144 | | | | | | | | | | | | | | | | | | | | | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hilton Fort Worth | | | 294 | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residence Inn Palm Desert | | | 130 | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Historic Inns of Annapolis | | | 124 | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | |
Embassy Suites Houston | | | 150 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Radisson Rockland | | | 127 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residence Inn San Diego Sorrento Mesa | | | 150 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Radisson Hotel Airport — Indianapolis | | | 259 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hilton Nassau Bay — Clear Lake | | | 243 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sheraton Minneapolis West | | | 222 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | |
Embassy Suites West Palm Beach | | | 160 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | |
Radisson City Center — Indianapolis | | | 371 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Crowne Plaza Beverly Hills | | | 260 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residence Inn Fairfax Merrifield | | | 159 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | | | | | | | | | | | | | | | | | | | | | | |
Courtyard Crystal City Reagan Airport | | | 272 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | | | | | | | | | | | | | | |
Courtyard Palm Desert | | | 151 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | | | | | | | | | | | | | | | | | | |
SpringHill Suites Kennesaw | | | 90 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | |
SpringHill Suites Jacksonville | | | 102 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | |
Sea Turtle Inn Jacksonville | | | 193 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | x | | | | x | | | | x | |
Courtyard Atlanta Alpharetta | | | 154 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | | | | | |
Marriott Crystal Gateway | | | 697 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | x | |
Hilton Santa Fe | | | 157 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | x | |
SpringHill Suites BWI Airport | | | 133 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | |
SpringHill Suites Centreville | | | 136 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | |
SpringHill Suites Gaithersburg | | | 162 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | |
Courtyard Overland Park | | | 168 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | | | | | |
Hilton Garden Inn Jacksonville | | | 119 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | | | | | |
Hyatt Dulles | | | 316 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | | | | | x | |
TownePlace Suites Miami Lakes | | | 95 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | |
TownePlace Suites Ft. Worth | | | 95 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | |
TownePlace Suites Miami Airport | | | 95 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | |
TownePlace Suites Portland Scarborough | | | 95 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | |
Hampton Inn Lawrenceville | | | 86 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | |
Homewood Suites Mobile | | | 86 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | |
SpringHill Suites Mall of Georgia | | | 96 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | |
JW Marriott San Francisco | | | 338 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | | | | x | |
Embassy Suites Las Vegas Airport | | | 220 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | |
Residence Inn Lake Buena Vista | | | 210 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | | | | x | |
Marriott at Research Triangle Park | | | 225 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | |
Courtyard Louisville Airport | | | 150 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | |
TownePlace Suites Boston Tewksbury | | | 95 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | |
TownePlace Suites Newark Silicon Valley | | | 127 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | |
TownePlace Suites Mt. Laurel | | | 95 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | |
SpringHill Suites Charlotte | | | 136 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | |
SpringHill Suites Raleigh Airport | | | 120 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | x | |
Courtyard Ft. Lauderdale Weston | | | 174 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Courtyard Foothill Ranch Irvine | | | 156 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Embassy Suites Austin Arboretum | | | 150 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Embassy Suites Dallas Galleria | | | 150 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Embassy Suites Dulles Int’l | | | 150 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Embassy Suites Flagstaff | | | 119 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fairfield Inn and Suites Kennesaw | | | 87 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Crowne Plaza La Concha — Key West | | | 160 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Radisson Cincinnati Riverfront | | | 236 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Radisson Hotel MacArthur Airport | | | 188 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residence Inn Orlando Sea World | | | 350 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ashford Hospitality Trust, Inc.
Debt Summary
As of September 30, 2006
(in millions)
| | | | | | | | | | | | | |
| | | Fixed-Rate | | | Floating-Rate | | | Total | |
| | | Debt | | | Debt | | | Debt | |
| $487.1 million mortgage note payable secured by 32 hotel properties, matures between July 1, 2015 and February 1, 2016, at an average interest rate of 5.41% | | $ | 487.1 | | | $ | — | | | $ | 487.1 | |
| $211.5 million term loan secured by 16 hotel properties, matures between December 11, 2014 and December 11, 2015, at an average interest rate of 5.73% | | | 211.5 | | | | — | | | | 211.5 | |
| $150.0 million secured credit facility secured by 9 hotel properties, matures August 16, 2008, at an interest rate of LIBOR plus a range of 1.6% to 1.85% depending on the loan-to-value ratio | | | — | | | | — | | | | — | |
| $100.0 million secured credit facility secured by 8 mezzanine notes receivable, matures December 23, 2008, at an interest rate of LIBOR plus a range of 1.5% to 2.75% depending on the loan-to-value ratio and collateral pledged | | | — | | | | — | | | | — | |
| $47.5 million secured credit facility secured by 1 hotel property, matures October 10, 2008, at an interest rate of LIBOR plus 1.0% to 1.5% depending on the outstanding balance | | | — | | | | — | | | | — | |
| Mortgage note payable secured by one hotel property, matures December 1, 2017, at an interest rate of 7.24% through December 31, 2007 and 7.39% thereafter | | | 53.0 | | | | — | | | | 53.0 | |
| | | | | | | | | | |
| Total Debt Excluding Premium | | $ | 751.6 | | | $ | — | | | $ | 751.6 | |
| | | | | | | | | | | |
| Mark-to-Market Premium | | | | | | | | | | | 2.0 | |
| | | | | | | | | | | | |
| Total Debt Including Premium | | | | | | | | | | $ | 753.6 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Percentage of Total | | | 100.00 | % | | | 0.00 | % | | | 100.00 | % |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Weighted Average Interest Rate at September 30, 2006 | | | | | | | | | | | 5.59 | % |
| | | | | | | | | | | | |
