EXHIBIT 99.1
NEWS RELEASE |
Contact: | Doug Kessler | Tripp Sullivan | ||
President | Corporate Communications, Inc. | |||
(972) 490-9600 | (615) 254-3376 |
ASHFORD HOSPITALITY TRUST REPORTS FOURTH QUARTER RESULTS
DALLAS — (February 25, 2009) — Ashford Hospitality Trust, Inc. (NYSE:AHT) today reported the following results and performance measures for the fourth quarter ended December 31, 2008. The proforma performance measurements for Occupancy, Average Daily Rate (ADR), revenue per available room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) include the Company’s 103 hotels owned and included in continuing operations as of December 31, 2008. Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2008, with the fourth quarter ended December 31, 2007. The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.
FINANCIAL HIGHLIGHTS AND LIQUIDITY
• | Corporate unrestricted available cash at the end of the quarter was $242 million | ||
• | Total revenue decreased 4.9% to $295.1 million from $310.4 million | ||
• | Net income available to common shareholders was $135.1 million, or $1.35 per diluted share, compared with a net loss of $9.9 million, or $0.08 loss per diluted share, in the prior-year quarter | ||
• | Adjusted funds from operations (AFFO) per diluted share increased 20.0% to $0.36 per diluted share | ||
• | AFFO per diluted share for the year was $1.31 as compared to a previous estimate of $1.29 — $1.33 | ||
• | Cash available for distribution (CAD) per diluted share increased 21.7% to $0.28 per diluted share | ||
• | CAD per diluted share for the year was $1.02 as compared to a previous estimate of $1.00 — $1.04 | ||
• | Fixed charge ratios were 1.72x and 1.77x under the senior credit facility covenants and the Series B convertible preferred covenants, relatively unchanged from the previous quarters results of 1.72x and 1.75x, versus required minimums of 1.25x each |
PORTFOLIO HIGHLIGHTS
• | Proforma RevPAR was down 7.4% for hotels not under renovation on a 2.0% decrease in ADR to $138.84 and a 388-basis point decline in occupancy | ||
• | Proforma RevPAR was down 8.8% for all hotels on a 2.3% decrease in ADR to $138.10 and a 459-basis point decline in occupancy | ||
• | Proforma Hotel Operating Profit for hotels not under renovation declined by 8.7% | ||
• | Proforma Hotel Operating Profit margin for hotels not under renovation declined by 110 basis points |
CAPITAL ALLOCATION
• | 2008 asset sales reach $437 million on a 6.6% trailing 12-month NOI cap rate and 12.0x trailing 12-month EBITDA multiple | ||
• | Repurchased 23.4 million common shares in the quarter for a total of $51.0 million, and repurchased 1.7 million shares of Series A and Series D preferred stock combined for a total of $9.9 million | ||
• | Capex invested in the quarter totaled $24.6 million | ||
• | Capex for 2009 is estimated at $37.8 million |
NOTE RECEIVABLE IMPAIRMENT
At December 31, 2008 a loss reserve was established for a note receivable held by our unconsolidated joint venture in which we have a 25% interest. A loan is impaired when, based on current information and events, it
14185 Dallas Parkway, Suite 1100, Dallas, TX 75254 | Phone: (972) 490-9600 |
-MORE-
AHT Announces Fourth Quarter Results
Page 2
February 25, 2009
Page 2
February 25, 2009
is probable that we will be unable to collect all amounts recorded as assets on the balance sheet according to the contractual of the loan agreement. Our assessment of impairment was based on considerable judgment and estimates. Based on our assessment a reserve was established for $5.5 million, the full amount of the loan.
CAPITAL STRUCTURE
On February 20, 2009, the Company closed on refinancing of the Gateway Marriott hotel in Washington D.C. for an amount of $60.8 million. The three year loan bears interest at a rate of 400 over LIBOR and has two one year extension options. The loan was used to retire a $47.0 million loan that was secured by the same asset.
At December 31, 2008, the Company’s net debt to total gross assets (defined by the corporate credit facility) was 57%. As of December 31, 2008, the Company had $2.8 billion of debt with a blended average interest rate of 3.35%. Including its $1.8 billion interest rate swap, 95% of the Company’s debt is variable-rate debt. The Company’s weighted average debt maturity including extension options is 6.0 years.
PORTFOLIO REVPAR
As of December 31, 2008, the Company had a portfolio of direct hotel investments consisting of 103 properties classified in continuing operations. During the fourth quarter, 96 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 103 hotels) and proforma not-under-renovation basis (96 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its direct hotel portfolio. The Company’s reporting by region and brand includes the results of all 103 hotels in continuing operations. Details of each category are provided in the tables attached to this release.
• | Proforma RevPAR decreased 7.4% for hotels not under renovation on a 2.0% decrease in ADR to $138.84 and a 388-basis point decline in occupancy | ||
• | Proforma RevPAR decreased 8.8% for all hotels on a 2.3% decrease in ADR to $138.10 and a 459-basis point decline in occupancy |
HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
For the 96 hotels as of December 31, 2008 that were not under renovation, Proforma Hotel EBITDA decreased 8.7% to $74.2 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) declined 110 basis points to 26.8%. For all 103 hotels included in continuing operations as of December 31, 2008, Proforma Hotel EBITDA decreased 13.0% to $75.1 million and Hotel EBITDA margin decreased 185 basis points to 25.7%.
Ashford believes year-over-year Hotel EBITDA and Hotel EBITDA margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company’s portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and certain prior-year periods based upon the number of core hotels in the portfolio as of the end of the current period. As Ashford’s portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the current portfolio of 103 hotels included in continuing operations are provided in the tables attached to this release.
Monty J. Bennett, Chief Executive Officer, commented, “Our strong year-over-year growth in AFFO and CAD per share confirm our investment, asset management and capital markets strategies are offsetting some of the significant headwinds our industry faces. The diversity of our high quality branded portfolio across price segment and region provides some cushion against localized economic downturn and new supply. Our asset management efforts have mitigated the decline in operating margin. The capital market strategies to improve financial covenants, reduce interest expense and extend loan maturities enhance our sustainability. Going forward, we will remain proactive addressing weakening lodging industry fundamentals. Visibility will remain challenging in 2009, but we have a solid liquidity position and will continue to aggressively manage all areas of our business.”
-MORE-
AHT Announces Fourth Quarter Results
Page 3
February 25, 2009
Page 3
February 25, 2009
INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, February 26, 2009, at 1:00 p.m. ET. The number to call for this interactive teleconference is (303) 262-2175. A replay of the conference call will be available through March 5, 2009, by dialing (303) 590-3000 and entering the confirmation number, 11124956#.
The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2008 earnings release conference call. The live broadcast of Ashford’s quarterly conference call will be available online at the Company’s website at www.ahtreit.com on Thursday, February 26, 2009, beginning at 1:00 p.m. ET. The online replay will follow shortly after the call and continue for approximately one year. A direct link to the live broadcast can be found at: http://www.videonewswire.com/event.asp?id=54809.
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 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 assist 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 satisfy 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, second mortgages, mezzanine loans and sale-leaseback transactions. Additional information can be found on the Company’s web site at www.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, the timing for closing, the impact of the transaction on our business and future financial condition, our business and investment strategy, our understanding of our competition and 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 Ashford’s filings with the Securities and Exchange Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A capitalization rate is determined by dividing the property’s annual net operating income by the purchase price. Net operating income is the property’s funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues. Funds from operations (“FFO”), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains (or losses) from sales or properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.
-MORE-
AHT Announces Fourth Quarter Results
Page 4
February 25, 2009
Page 4
February 25, 2009
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. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
December 31, | ||||||||
2008 | 2007 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Investment in hotel properties, net | $ | 3,568,215 | $ | 3,885,737 | ||||
Cash and cash equivalents | 241,597 | 92,271 | ||||||
Restricted cash | 69,806 | 52,872 | ||||||
Accounts receivable, net | 41,110 | 51,314 | ||||||
Inventories | 3,341 | 4,100 | ||||||
Assets held for sale | — | 75,739 | ||||||
Notes receivable | 212,815 | 94,225 | ||||||
Investment in unconsolidated joint venture | 19,122 | — | ||||||
Deferred costs, net | 24,211 | 25,714 | ||||||
Prepaid expenses | 12,903 | 20,223 | ||||||
Interest rate derivatives | 88,603 | 21 | ||||||
Other assets | 6,766 | 6,006 | ||||||
Intangible assets, net | 3,077 | 13,889 | ||||||
Due from third-party hotel managers | 48,116 | 58,300 | ||||||
Total assets | $ | 4,339,682 | $ | 4,380,411 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities | ||||||||
Indebtedness — continuing operations | $ | 2,790,364 | $ | 2,639,546 | ||||
Indebtedness — discontinued operations | — | 61,229 | ||||||
Capital leases payable | 207 | 498 | ||||||
Accounts payable and accrued expenses | 93,476 | 124,696 | ||||||
Dividends payable | 6,285 | 35,031 | ||||||
Unfavorable management contract liabilities | 20,950 | 23,396 | ||||||
Due to related parties | 2,378 | 2,732 | ||||||
Due to third-party hotel managers | 3,855 | 4,699 | ||||||
Other liabilities | 8,124 | 8,514 | ||||||
Total liabilities | 2,925,639 | 2,900,341 | ||||||
Minority interests in consolidated joint ventures | 19,355 | 19,036 | ||||||
Minority interests in operating partnership | 107,469 | 101,031 | ||||||
Series B Cumulative Convertible Redeemable Preferred stock, 7,447,865 issued and outstanding | 75,000 | 75,000 | ||||||
Stockholders’ Equity: | ||||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized: | ||||||||
Series A Cumulative Preferred Stock | ||||||||
2,185,500 and 2,300,000 shares issued and outstanding at | ||||||||
December 31, 2008 and 2007 | 22 | 23 | ||||||
Series D Cumulative Preferred Stock, | ||||||||
6,394,347 and 8,000,000 shares issued and outstanding at | ||||||||
December 31, 2008 and 2007 | 64 | 80 | ||||||
Common stock, $0.01 par value, 200,000,000 shares authorized, | ||||||||
122,748,859 shares issued and 86,555,149 shares outstanding | ||||||||
at December 31, 2008 and 122,765,691 shares issued and 120,376,055 | ||||||||
shares outstanding at December 31, 2007 | 1,227 | 1,228 | ||||||
Additional paid-in capital | 1,450,146 | 1,455,917 | ||||||
Accumulated other comprehensive loss | (860 | ) | (115 | ) | ||||
Accumulated deficit | (124,782 | ) | (153,664 | ) | ||||
Treasury stock, at cost (36,193,710 shares and 2,389,636 shares at | ||||||||
December 31, 2008 and 2007) | (113,598 | ) | (18,466 | ) | ||||
Total shareholders’ equity | 1,212,219 | 1,285,003 | ||||||
Total liabilities and shareholders’ equity | $ | 4,339,682 | $ | 4,380,411 | ||||
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(Unaudited) | ||||||||||||||||
REVENUE | ||||||||||||||||
Rooms | $ | 208,347 | $ | 222,655 | $ | 850,611 | $ | 740,237 | ||||||||
Food and beverage | 62,427 | 69,958 | 237,579 | 208,289 | ||||||||||||
Rental income from operating leases | 1,979 | 1,915 | 6,218 | 4,548 | ||||||||||||
Other | 13,461 | 13,109 | 52,385 | 42,388 | ||||||||||||
Total hotel revenue | 286,214 | 307,637 | 1,146,793 | 995,462 | ||||||||||||
Interest income from notes receivable | 8,777 | 2,411 | 24,050 | 11,005 | ||||||||||||
Asset management fees and other | 60 | 338 | 2,013 | 1,334 | ||||||||||||
Total Revenue | 295,051 | 310,386 | 1,172,856 | 1,007,801 | ||||||||||||
EXPENSES | ||||||||||||||||
Hotel operating expenses | ||||||||||||||||
Rooms | 48,025 | 50,898 | 188,556 | 165,129 | ||||||||||||
Food and beverage | 44,080 | 47,616 | 168,317 | 147,091 | ||||||||||||
Other direct | 7,497 | 7,651 | 28,714 | 23,874 | ||||||||||||
Indirect | 84,169 | 85,441 | 322,574 | 276,385 | ||||||||||||
Management fees | 11,701 | 12,670 | 45,426 | 38,955 | ||||||||||||
Total hotel expenses | 195,472 | 204,276 | 753,587 | 651,434 | ||||||||||||
Property taxes, insurance, and other | 16,733 | 16,298 | 62,509 | 52,409 | ||||||||||||
Depreciation and amortization | 41,325 | 40,981 | 167,730 | 138,154 | ||||||||||||
Corporate general and administrative: | ||||||||||||||||
Stock-based compensation | 1,646 | 1,556 | 6,834 | 6,225 | ||||||||||||
Other general and administrative | 2,152 | 5,593 | 21,868 | 20,728 | ||||||||||||
Total Operating Expenses | 257,328 | 268,704 | 1,012,528 | 868,950 | ||||||||||||
OPERATING INCOME | 37,723 | 41,682 | 160,328 | 138,851 | ||||||||||||
Equity loss in unconsolidated joint venture | (4,509 | ) | — | (2,205 | ) | — | ||||||||||
Interest income | 468 | 928 | 2,062 | 3,178 | ||||||||||||
Other income | 3,910 | — | 10,153 | — | ||||||||||||
Interest expense | (37,857 | ) | (38,691 | ) | (149,859 | ) | (129,744 | ) | ||||||||
Amortization of loan costs | (1,757 | ) | (1,869 | ) | (6,524 | ) | (6,097 | ) | ||||||||
Write-off of loan costs and exit fees | — | (143 | ) | (1,226 | ) | (3,850 | ) | |||||||||
Unrealized gains/(losses) on derivatives | 118,481 | (67 | ) | 79,620 | (211 | ) | ||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY INTERESTS | 116,459 | 1,840 | 92,349 | 2,127 | ||||||||||||
Income tax benefit/(expense) | 183 | (3,073 | ) | (967 | ) | (3,835 | ) | |||||||||
Minority interests in losses/(earnings) of consolidated joint ventures | 1,463 | (1,660 | ) | (1,444 | ) | (323 | ) | |||||||||
Minority interests in (earnings)/loss of operating partnership | (11,919 | ) | 61 | (9,932 | ) | (876 | ) | |||||||||
INCOME/(LOSS) FROM CONTINUING OPERATIONS | 106,186 | (2,832 | ) | 80,006 | (2,907 | ) | ||||||||||
Income/(loss) from discontinued operations, net | 34,528 | (91 | ) | 49,188 | 33,067 | |||||||||||
NET INCOME/(LOSS) | 140,714 | (2,923 | ) | 129,194 | 30,160 | |||||||||||
Preferred dividends | (5,588 | ) | (7,018 | ) | (26,642 | ) | (23,990 | ) | ||||||||
NET INCOME/(LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $ | 135,126 | $ | (9,941 | ) | $ | 102,552 | $ | 6,170 | |||||||
INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS PER SHARE: | ||||||||||||||||
Basic — | ||||||||||||||||
Income/(loss) from continuing operations | $ | 1.09 | $ | (0.08 | ) | $ | 0.48 | $ | (0.25 | ) | ||||||
Income/(loss) from discontinued operations | 0.38 | (0.00 | ) | 0.44 | 0.31 | |||||||||||
Net income/(loss) | $ | 1.47 | $ | (0.08 | ) | $ | 0.92 | $ | 0.06 | |||||||
Diluted — | ||||||||||||||||
Income/(loss) from continuing operations | $ | 1.01 | $ | (0.08 | ) | $ | 0.48 | $ | (0.25 | ) | ||||||
Income/(loss) from discontinued operations | 0.34 | (0.00 | ) | 0.44 | 0.31 | |||||||||||
Net income/(loss) | $ | 1.35 | $ | (0.08 | ) | $ | 0.92 | $ | 0.06 | |||||||
Weighted Average Common Shares Outstanding: | ||||||||||||||||
Basic | 91,905 | 120,871 | 111,295 | 105,787 | ||||||||||||
Diluted | 112,802 | 120,871 | 111,306 | 105,787 | ||||||||||||
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO EBITDA
(in thousands, except per share amounts and ratios)
RECONCILIATION OF NET INCOME TO EBITDA
(in thousands, except per share amounts and ratios)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(Unaudited) | ||||||||||||||||
Net income/(loss) | $ | 140,714 | $ | (2,923 | ) | $ | 129,194 | $ | 30,160 | |||||||
Interest income | (456 | ) | (814 | ) | (2,020 | ) | (3,064 | ) | ||||||||
Interest expense and amortization of loan costs | 38,885 | 44,483 | 157,274 | 154,338 | ||||||||||||
Depreciation and amortization | 40,545 | 48,516 | 172,262 | 166,161 | ||||||||||||
Minority interest in earnings/(losses) of operating partnership | 15,771 | (69 | ) | 15,033 | 3,957 | |||||||||||
Income tax (benefit)/expense | (267 | ) | 514 | 1,093 | 5,599 | |||||||||||
EBITDA | 235,192 | 89,707 | 472,836 | 357,151 | ||||||||||||
Amortization of unfavorable management contract liabilities | (753 | ) | (753 | ) | (2,446 | ) | (2,254 | ) | ||||||||
Impairment charge in unconsolidated joint venture | 5,461 | — | 5,461 | — | ||||||||||||
Non-recurring severance payments | 582 | — | 582 | — | ||||||||||||
(Gains)/losses on sale of properties | (40,199 | ) | 166 | (48,514 | ) | (35,071 | ) | |||||||||
Write-off of loan costs, premiums and exit fees (1) | 789 | 2,697 | 798 | 8,664 | ||||||||||||
Unrealized (gains)/losses on derivatives | (118,481 | ) | 67 | (79,620 | ) | 211 | ||||||||||
Adjusted EBITDA | $ | 82,591 | $ | 91,884 | $ | 349,097 | $ | 328,701 | ||||||||
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS (“FFO”)
(in thousands)
(in thousands)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(Unaudited) | ||||||||||||||||
Net income/(loss) | $ | 140,714 | $ | (2,923 | ) | $ | 129,194 | $ | 30,160 | |||||||
Preferred dividends | (5,588 | ) | (7,018 | ) | (26,642 | ) | (23,990 | ) | ||||||||
Net income/(loss) available to common shareholders | 135,126 | (9,941 | ) | 102,552 | 6,170 | |||||||||||
Depreciation and amortization on real estate | 40,441 | 48,391 | 171,791 | 165,757 | ||||||||||||
Gains on sales of hotel properties, net of related income taxes | (40,199 | ) | 166 | (48,514 | ) | (28,204 | ) | |||||||||
Minority interest in earnings/(loss) of operating partnership | 15,771 | (69 | ) | 15,033 | 3,957 | |||||||||||
FFO available to common shareholders | 151,139 | 38,547 | 240,862 | 147,680 | ||||||||||||
Impairment charge in unconsolidated joint venture | 5,461 | — | 5,461 | — | ||||||||||||
Non-recurring severance payments | 582 | — | 582 | — | ||||||||||||
Dividends on convertible preferred stock | 1,043 | 1,564 | 5,735 | 6,256 | ||||||||||||
Non-cash dividends on Series C preferred stock | — | — | — | 845 | ||||||||||||
Write-off of loan costs, premiums and exit fees (1) | 789 | 2,697 | 798 | 8,664 | ||||||||||||
Unrealized (gains)/losses on derivatives | (118,481 | ) | 67 | (79,620 | ) | 211 | ||||||||||
Adjusted FFO | $ | 40,533 | $ | 42,875 | $ | 173,818 | $ | 163,656 | ||||||||
Adjusted FFO per diluted share available to common shareholders | $ | 0.36 | $ | 0.30 | $ | 1.31 | $ | 1.29 | ||||||||
Weighted average diluted shares | 112,802 | 141,721 | 132,677 | 127,195 | ||||||||||||
(1) | For the year ended December 31, 2008, the amount includes a write-off of debt premium of $2,086,000 at the sale of a hotel property. |
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CASH AVAILABLE FOR DISTRIBUTION (“CAD”)
(in thousands, except per share amounts)
CASH AVAILABLE FOR DISTRIBUTION (“CAD”)
(in thousands, except per share amounts)
Three Months | Three Months | Year | Year | |||||||||||||||||||||||||||||
Ended | Per | Ended | Per | Ended | Per | Ended | Per | |||||||||||||||||||||||||
December 31, | Diluted | December 31, | Diluted | December 31, | Diluted | December 31, | Diluted | |||||||||||||||||||||||||
2008 | Share | 2007 | Share | 2008 | Share | 2007 | Share | |||||||||||||||||||||||||
Net income/(loss) available to common shareholders | $ | 135,126 | $ | 1.20 | $ | (9,941 | ) | $ | (0.07 | ) | $ | 102,552 | $ | 0.77 | $ | 6,170 | $ | 0.05 | ||||||||||||||
Dividends on convertible preferred stock | 1,043 | 0.01 | 1,564 | 0.01 | 5,735 | 0.05 | 6,256 | 0.05 | ||||||||||||||||||||||||
Total | 136,169 | 1.21 | (8,377 | ) | (0.06 | ) | 108,287 | 0.82 | 12,426 | 0.10 | ||||||||||||||||||||||
Depreciation and amortization on real estate | 40,441 | 0.36 | 48,391 | 0.34 | 171,791 | 1.30 | 165,757 | 1.30 | ||||||||||||||||||||||||
Non-cash dividends on Series C preferred stock | — | — | — | — | — | — | 845 | 0.01 | ||||||||||||||||||||||||
Minority interest in earnings/(loss) of operating partnership | 15,771 | 0.14 | (69 | ) | (0.00 | ) | 15,033 | 0.11 | 3,957 | 0.03 | ||||||||||||||||||||||
Stock-based compensation | 1,646 | 0.02 | 1,556 | 0.01 | 6,834 | 0.05 | 6,225 | 0.05 | ||||||||||||||||||||||||
Amortization of loan costs | 1,686 | 0.01 | 2,335 | 0.02 | 6,610 | 0.05 | 7,781 | 0.06 | ||||||||||||||||||||||||
Write-off of loan costs, premiums and exit fees (1) | 789 | 0.01 | 2,697 | 0.02 | 798 | 0.01 | 8,664 | 0.07 | ||||||||||||||||||||||||
Amortization of unfavorable management contract liabilities | (753 | ) | (0.01 | ) | (753 | ) | (0.01 | ) | (2,446 | ) | (0.02 | ) | (2,254 | ) | (0.02 | ) | ||||||||||||||||
Gains on sales of properties, net of related income taxes | (40,199 | ) | (0.36 | ) | 166 | 0.00 | (48,514 | ) | (0.36 | ) | (28,204 | ) | (0.22 | ) | ||||||||||||||||||
Impairment charge in unconsolidated joint venture | 5,461 | 0.05 | — | — | 5,461 | 0.04 | — | — | ||||||||||||||||||||||||
Unrealized (gains)/losses on derivatives | (118,481 | ) | (1.05 | ) | 67 | 0.00 | (79,620 | ) | (0.60 | ) | 211 | 0.00 | ||||||||||||||||||||
Non-recurring severance payments | 582 | 0.01 | — | — | 582 | 0.00 | — | — | ||||||||||||||||||||||||
Capital improvements reserve | (12,047 | ) | (0.11 | ) | (13,389 | ) | (0.09 | ) | (50,108 | ) | (0.38 | ) | (47,309 | ) | (0.37 | ) | ||||||||||||||||
CAD | $ | 31,065 | 0.28 | $ | 32,624 | $ | 0.23 | $ | 134,708 | 1.02 | $ | 128,099 | $ | 1.01 | ||||||||||||||||||
(1) | For the year ended December 31, 2008, the amount includes a write-off of debt premium of $2,086,000 at the sale of a hotel property. |
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
DEBT SUMMARY
DECEMBER 31, 2008
(dollars in thousands)
DEBT SUMMARY
DECEMBER 31, 2008
(dollars in thousands)
Fixed-Rate | Floating-Rate | Total | ||||||||||
Debt | Debt | Debt | ||||||||||
Mortgage loan secured by 25 hotel properties, matures between July 1, 2015 and February 1, 2016, at an average interest rate of 5.42% | $ | 455,115 | $ | — | $ | 455,115 | ||||||
Mortgage loan secured by 16 hotel properties, matures between December 11, 2014 and December 11, 2015, at an average average interest rate of 5.73% | 211,475 | — | 211,475 | |||||||||
Secured credit facility, matures April 9, 2010, at an interest rate of LIBOR plus a range of 2.75% to 3.5% depending on the loan-to-value ratio, with two one-year extension options | — | 250,000 | 250,000 | |||||||||
Mortgage loan secured by one hotel property, matures December 1, 2017, with an interest rate of 7.39% at December 31, 2008 | 47,412 | — | 47,412 | |||||||||
Mortgage loan secured by one hotel property, matures December 8, 2016, at an interest rate of 5.81% | 101,000 | — | 101,000 | |||||||||
Mortgage loan secured by five hotel properties, matures December 11, 2009, at an interest rate of LIBOR plus 1.72%, with two one-year extension options | — | 203,400 | 203,400 | |||||||||
Mortgage loan secured by 28 hotel properties, matures April 11, 2017, at an average blended interest rate of 5.95% | 928,465 | — | 928,465 | |||||||||
Mortgage loan secured by 10 hotel properties, matures May 9, 2009, at an interest rate of LIBOR plus 1.65%, with three one-year extension options | — | 167,202 | 167,202 | |||||||||
Mortgage loan secured by one hotel property, matures January 1, 2011, at an interest rate of 8.32% | 5,071 | — | 5,071 | |||||||||
Mortgage loan secured by one hotel property, matures January 1, 2023, at an interest rate of 7.78% | 5,620 | — | 5,620 | |||||||||
TIF loan secured by one hotel property, matures June 30, 2018, at an interest rate of 12.85% | 6,927 | — | 6,927 | |||||||||
Mortgage loan secured by one hotel property, matures April 1, 2009, at an interest rate of 5.6% | 29,396 | — | 29,396 | |||||||||
Mortgage loan secured by three hotel property, matures April 5, 2011, at an interest rate of 5.47% | 66,420 | — | 66,420 | |||||||||
Mortgage loan secured by four hotel property, matures March 1, 2010, at an interest rate of 5.95% | 75,000 | — | 75,000 | |||||||||
Mortgage loan secured by one hotel property, matures June 1, 2011, at an interest rate of LIBOR plus 2% | — | 19,740 | 19,740 | |||||||||
Mortgage loan secured by two hotel properties, matures August 8, 2011, at an interest rate of LIBOR plus 2.75%, with two one-year extension options | — | 119,250 | 119,250 | |||||||||
Mortgage loan secured by one hotel properties, matures September 9, 2010, at an interest rate of LIBOR plus 3.75%, with two one-year extension options | — | 55,000 | 55,000 | |||||||||
Total Debt Excluding Premium | 1,931,901 | 814,592 | 2,746,493 | |||||||||
Mark-to-Market Premium | 1,378 | — | 1,378 | |||||||||
Plus Debt Attributable to joint venture partners | 2,743 | 39,750 | 42,493 | |||||||||
Total Debt Including Premium and debt attributable to joint venture partners | $ | 1,936,022 | $ | 854,342 | $ | 2,790,364 | ||||||
Percentage | 69.4 | % | 30.6 | % | 100.0 | % | ||||||
Weighted average interest rate at December 31, 2008 | 5.85 | % | 2.85 | % | 4.93 | % | ||||||
Total with the effect of interest rate swap | $ | 136,022 | $ | 2,654,342 | $ | 2,790,364 | ||||||
Percentage with the effect of interest rate swap | 4.9 | % | 95.1 | % | 100.0 | % | ||||||
Weighted average interest rate with the effect of interest rate swap | 3.57 | % | 2.85 | % | 3.35 | % | ||||||
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
DEBT BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE TESTS ARE EXERCISED
DECEMBER 31, 2008
(in thousands)
DEBT BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE TESTS ARE EXERCISED
DECEMBER 31, 2008
(in thousands)
2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total | ||||||||||||||||||||||
Mortgage loan secured by Dearborn Hyatt Regency | $ | 29,396 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 29,396 | ||||||||||||||
Mortgage loan secured by Rye Town Hilton | — | 75,000 | — | — | — | — | 75,000 | |||||||||||||||||||||
Mortgage loan secured by Manchester Courtyard | — | — | 5,071 | — | — | — | 5,071 | |||||||||||||||||||||
Mortgage loan secured by Auburn Hills Hilton Suites, Costa Mesa Hilton and Portland Embassy Suites | — | — | 66,420 | — | — | — | 66,420 | |||||||||||||||||||||
Mortgage loan secured by El Conquistador Hilton | — | — | 19,740 | — | — | — | 19,740 | |||||||||||||||||||||
Mortgage loan secured by Anchorage Sheraton, Minneapolis Airport Hilton, San Diego Sheraton and Walnut Creek Embassy Suites | — | — | 203,400 | — | — | — | 203,400 | |||||||||||||||||||||
Secured credit facility | — | 250,000 | * | — | — | — | — | 250,000 | ||||||||||||||||||||
Mortgage loan secured by 10 hotel properties, Wachovia Floater 7 | — | — | — | 167,202 | — | — | 167,202 | |||||||||||||||||||||
Mortgage loan secured by JW Marriott San Francisco | — | 55,000 | * | — | — | — | — | 55,000 | ||||||||||||||||||||
Mortgage loan secured by La Jolla Hilton and Capital Hilton | — | — | 119,250 | * | — | — | — | 119,250 | ||||||||||||||||||||
Mortgage loan secured by eight hotel properties, UBS Pool 1 | — | — | — | — | — | 110,899 | 110,899 | |||||||||||||||||||||
Mortgage loan secured by eight hotel properties, UBS Pool 2 | — | — | — | — | — | 100,576 | 100,576 | |||||||||||||||||||||
Mortgage loan secured by 25 hotel properties, Merrill Lynch Pool 1 | — | — | — | — | — | 160,490 | 160,490 | |||||||||||||||||||||
Mortgage loan secured by Westin O’Hare | — | — | — | — | — | 101,000 | 101,000 | |||||||||||||||||||||
Mortgage loan secured by 25 hotel properties, Merrill Lynch Pool 2, 3 and 7 | — | — | — | — | — | 294,625 | 294,625 | |||||||||||||||||||||
Mortgage loan secured by Arlington Marriott | — | — | — | — | — | 47,412 | 47,412 | |||||||||||||||||||||
Mortgage loan secured by 28 hotel properties, Wachovia Floaters 1 to 6 | — | — | — | — | — | 893,465 | 893,465 | |||||||||||||||||||||
Mortgage loan secured by Philly Courtyard, Wachovia Stand-Alone | — | — | — | — | — | 35,000 | 35,000 | |||||||||||||||||||||
TIF loan secured by Philly Courtyard | — | — | — | — | — | 6,927 | 6,927 | |||||||||||||||||||||
Mortgage loan secured by Houston Hampton Inn | — | — | — | — | — | 5,620 | 5,620 | |||||||||||||||||||||
29,396 | 380,000 | 413,881 | 167,202 | — | 1,756,014 | 2,746,493 | ||||||||||||||||||||||
Mark-to-Market premium | 1,378 | 1,378 | ||||||||||||||||||||||||||
Debt attributable to joint venture partners | — | — | 40,645 | — | — | 1,848 | 42,493 | |||||||||||||||||||||
Total | $ | 29,396 | $ | 380,000 | $ | 454,526 | $ | 167,202 | $ | — | $ | 1,759,240 | $ | 2,790,364 | ||||||||||||||
NOTE: | These maturities assume no event of default would occur. | |
* | Extensions available but certain coverage tests have to be met. |
ASHFORD HOSPITALITY TRUST, INC.
KEY PERFORMANCE INDICATORS — PRO FORMA
(Unaudited)
KEY PERFORMANCE INDICATORS — PRO FORMA
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2008 | 2007 | % Variance | 2008 | 2007 | % Variance | |||||||||||||||||||
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: | ||||||||||||||||||||||||
Room revenues (in thousands) | $ | 215,574 | $ | 229,596 | -6.11 | % | $ | 873,477 | $ | 884,500 | -1.25 | % | ||||||||||||
RevPAR | $ | 89.65 | $ | 98.28 | -8.78 | % | $ | 102.03 | $ | 104.32 | -2.20 | % | ||||||||||||
Occupancy | 64.92 | % | 69.51 | % | -4.59 | % | 71.35 | % | 73.92 | % | -2.57 | % | ||||||||||||
ADR | $ | 138.10 | $ | 141.38 | -2.32 | % | $ | 142.99 | $ | 141.13 | 1.32 | % |
Three Months Ended | Year Ended | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2008 | 2007 | % Variance | 2008 | 2007 | % Variance | |||||||||||||||||||
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: | ||||||||||||||||||||||||
Room revenues (in thousands) | $ | 205,059 | $ | 214,915 | -4.59 | % | $ | 818,090 | $ | 821,567 | -0.42 | % | ||||||||||||
RevPAR | $ | 91.02 | $ | 98.34 | -7.44 | % | $ | 102.58 | $ | 104.07 | -1.43 | % | ||||||||||||
Occupancy | 65.56 | % | 69.44 | % | -3.88 | % | 71.84 | % | 73.94 | % | -2.10 | % | ||||||||||||
ADR | $ | 138.84 | $ | 141.61 | -1.96 | % | $ | 142.78 | $ | 140.74 | 1.45 | % |
Excluded Hotels Under Renovation:
Sheraton Anchorage, Hampton Inn Jacksonville, Embassy Suites West Palm Beach, Hyatt Regency Coral Gables, Hampton Inn Lawrenceville, Courtyard Ft. Lauderdale Weston, Hilton Rye Town
OTHER NOTE:
As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma tables, all room revenues related to this hotel are reflected, which is consistent with the Company’s other hotels.
ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT
(dollars in thousands)
(Unaudited)
PRO FORMA HOTEL OPERATING PROFIT
(dollars in thousands)
(Unaudited)
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:
Three Months Ended | Year Ended | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2008 | 2007 | % Variance | 2008 | 2007 | % Variance | |||||||||||||||||||
REVENUE | ||||||||||||||||||||||||
Rooms | $ | 215,574 | $ | 229,596 | -6.1 | % | $ | 873,477 | $ | 884,500 | -1.2 | % | ||||||||||||
Food and beverage | 63,766 | 70,494 | -9.5 | % | 241,256 | 246,554 | -2.1 | % | ||||||||||||||||
Other | 13,226 | 13,645 | -3.1 | % | 50,601 | 54,365 | -6.9 | % | ||||||||||||||||
Total hotel revenue | 292,566 | 313,735 | -6.7 | % | 1,165,334 | 1,185,419 | -1.7 | % | ||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Rooms | 49,422 | 52,473 | -5.8 | % | 193,239 | 196,803 | -1.8 | % | ||||||||||||||||
Food and beverage | 44,894 | 48,422 | -7.3 | % | 170,837 | 176,195 | -3.0 | % | ||||||||||||||||
Other direct | 7,565 | 7,724 | -2.1 | % | 28,974 | 29,901 | -3.1 | % | ||||||||||||||||
Indirect | 84,814 | 85,877 | -1.2 | % | 322,868 | 317,164 | 1.8 | % | ||||||||||||||||
Management fees, includes base and incentive fees | 13,760 | 16,335 | -15.8 | % | 54,556 | 58,202 | -6.3 | % | ||||||||||||||||
Total hotel operating expenses | 200,455 | 210,831 | -4.9 | % | 770,474 | 778,265 | -1.0 | % | ||||||||||||||||
Property taxes, insurance, and other | 17,042 | 16,579 | 2.8 | % | 63,111 | 62,771 | 0.5 | % | ||||||||||||||||
HOTEL OPERATING PROFIT (Hotel EBITDA) | 75,069 | 86,325 | -13.0 | % | 331,749 | 344,383 | -3.7 | % | ||||||||||||||||
Hotel EBITDA Margin | 25.66 | % | 27.51 | % | -1.85 | % | 28.47 | % | 29.05 | % | -0.58 | % | ||||||||||||
Minority interest in earnings of consolidated joint ventures | 1,732 | 1,567 | 10.5 | % | 7,999 | 7,130 | 12.2 | % | ||||||||||||||||
HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures | $ | 73,337 | $ | 84,758 | -13.5 | % | $ | 323,750 | $ | 337,253 | -4.0 | % | ||||||||||||
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:
Three Months Ended | Year Ended | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2008 | 2007 | % Variance | 2008 | 2007 | % Variance | |||||||||||||||||||
REVENUE | ||||||||||||||||||||||||
Rooms (1) | $ | 205,059 | $ | 214,915 | -4.6 | % | $ | 818,090 | $ | 821,567 | -0.4 | % | ||||||||||||
Food and beverage | 58,917 | 63,400 | -7.1 | % | 221,279 | 223,490 | -1.0 | % | ||||||||||||||||
Other | 12,685 | 12,847 | -1.3 | % | 48,333 | 51,241 | -5.7 | % | ||||||||||||||||
Total hotel revenue | 276,661 | 291,162 | -5.0 | % | 1,087,702 | 1,096,298 | -0.8 | % | ||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Rooms (1) | 46,436 | 48,725 | -4.7 | % | 179,662 | 181,738 | -1.1 | % | ||||||||||||||||
Food and beverage | 40,779 | 43,343 | -5.9 | % | 154,305 | 157,769 | -2.2 | % | ||||||||||||||||
Other direct | 7,170 | 7,427 | -3.5 | % | 27,710 | 28,767 | -3.7 | % | ||||||||||||||||
Indirect | 78,987 | 79,426 | -0.6 | % | 298,988 | 292,415 | 2.2 | % | ||||||||||||||||
Management fees, includes base and incentive fees | 13,139 | 15,443 | -14.9 | % | 51,530 | 54,721 | -5.8 | % | ||||||||||||||||
Total hotel operating expenses | 186,511 | 194,364 | -4.0 | % | 712,195 | 715,410 | -0.4 | % | ||||||||||||||||
Property taxes, insurance, and other | 15,912 | 15,481 | 2.8 | % | 58,092 | 57,401 | 1.2 | % | ||||||||||||||||
HOTEL OPERATING PROFIT (Hotel EBITDA) | 74,238 | 81,317 | -8.7 | % | 317,415 | 323,487 | -1.9 | % | ||||||||||||||||
Hotel EBITDA Margin | 26.83 | % | 27.93 | % | -1.10 | % | 29.18 | % | 29.51 | % | -0.33 | % | ||||||||||||
Minority interest in earnings of consolidated joint ventures | 1,732 | 1,567 | 10.5 | % | 7,999 | 7,130 | 12.2 | % | ||||||||||||||||
HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures | $ | 72,506 | $ | 79,750 | -9.1 | % | $ | 309,416 | $ | 316,357 | -2.2 | % | ||||||||||||
NOTES:
(1) | Excluded hotels under renovation: Sheraton Anchorage, Hampton Inn Jacksonville, Embassy Suites West Palm Beach, Hyatt Regency Coral Gables, Hampton Inn Lawrenceville, Courtyard Ft. Lauderdale Weston, Hilton Rye Town | |
(2) | As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro form tables, all operating results related to this hotel are reflected, which is consistent with the Company’s other hotels. |
ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL REVPAR BY REGION
(Unaudited)
PRO FORMA HOTEL REVPAR BY REGION
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
Number of | Number of | December 31, | December 31, | |||||||||||||||||||||||||||||
Region | Hotels | Rooms | 2008 | 2007 | % Change | 2008 | 2007 | % Change | ||||||||||||||||||||||||
Pacific (1) | 21 | 5,205 | $ | 99.83 | $ | 110.62 | -9.8 | % | $ | 115.52 | $ | 117.98 | -2.1 | % | ||||||||||||||||||
Mountain (2) | 8 | 1,704 | $ | 77.17 | $ | 94.54 | -18.4 | % | $ | 96.63 | $ | 102.09 | -5.3 | % | ||||||||||||||||||
West North Central (3) | 3 | 690 | $ | 73.97 | $ | 84.66 | -12.6 | % | $ | 86.48 | $ | 89.48 | -3.4 | % | ||||||||||||||||||
West South Central (4) | 10 | 2,086 | $ | 98.66 | $ | 99.32 | -0.7 | % | $ | 103.50 | $ | 101.20 | 2.3 | % | ||||||||||||||||||
East North Central (5) | 10 | 2,624 | $ | 64.87 | $ | 76.31 | -15.0 | % | $ | 77.91 | $ | 80.82 | -3.6 | % | ||||||||||||||||||
East South Central (6) | 2 | 236 | $ | 70.61 | $ | 77.61 | -9.0 | % | $ | 88.22 | $ | 85.78 | 2.8 | % | ||||||||||||||||||
Middle Atlantic (7) | 9 | 2,481 | $ | 94.50 | $ | 106.04 | -10.9 | % | $ | 101.32 | $ | 107.15 | -5.4 | % | ||||||||||||||||||
South Atlantic (8) | 38 | 7,728 | $ | 90.71 | $ | 96.54 | -6.0 | % | $ | 104.10 | $ | 105.72 | -1.5 | % | ||||||||||||||||||
New England (9) | 2 | 159 | $ | 79.25 | $ | 85.79 | -7.6 | % | $ | 85.76 | $ | 84.39 | 1.6 | % | ||||||||||||||||||
Total Portfolio | 103 | 22,913 | $ | 89.65 | $ | 98.28 | -8.8 | % | $ | 102.03 | $ | 104.32 | -2.2 | % | ||||||||||||||||||
(1) | Includes Alaska, California, Oregon, and Washington | |
(2) | Includes Nevada, Arizona, New Mexico, and Utah | |
(3) | Includes Minnesota and Kansas | |
(4) | Includes Texas | |
(5) | Includes Ohio, Michigan, Illinois, and Indiana | |
(6) | Includes Kentucky and Alabama | |
(7) | Includes New York, New Jersey, and Pennsylvania | |
(8) | Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina | |
(9) | Includes Massachusetts and Connecticut |
NOTE: | As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company’s other hotels. |
ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL REVPAR BY BRAND
(Unaudited)
PRO FORMA HOTEL REVPAR BY BRAND
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
Number of | Number of | December 31, | December 31, | |||||||||||||||||||||||||||||
Brand | Hotels | Rooms | 2008 | 2007 | % Change | 2008 | 2007 | % Change | ||||||||||||||||||||||||
Hilton | 34 | 7,513 | $ | 94.09 | $ | 102.93 | -8.6 | % | $ | 109.09 | $ | 111.64 | -2.3 | % | ||||||||||||||||||
Hyatt | 2 | 1,014 | $ | 63.85 | $ | 84.46 | -24.4 | % | $ | 84.45 | $ | 90.69 | -6.9 | % | ||||||||||||||||||
InterContinental | 2 | 420 | $ | 123.26 | $ | 136.86 | -9.9 | % | $ | 145.12 | $ | 148.35 | -2.2 | % | ||||||||||||||||||
Independent | 2 | 317 | $ | 55.87 | $ | 42.99 | 30.0 | % | $ | 55.66 | $ | 63.59 | -12.5 | % | ||||||||||||||||||
Marriott | 57 | 11,714 | $ | 91.74 | $ | 99.24 | -7.6 | % | $ | 100.93 | $ | 102.35 | -1.4 | % | ||||||||||||||||||
Starwood | 6 | 1,935 | $ | 67.83 | $ | 80.75 | -16.0 | % | $ | 88.01 | $ | 91.27 | -3.6 | % | ||||||||||||||||||
Total Portfolio | 103 | 22,913 | $ | 89.65 | $ | 98.28 | -8.8 | % | $ | 102.03 | $ | 104.32 | -2.2 | % | ||||||||||||||||||
NOTE: | As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all room revenues related to this hotel are reflected, which is consistent with the Company’s other hotels. |
ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT BY REGION
(dollars in thousands)
(Unaudited)
PRO FORMA HOTEL OPERATING PROFIT BY REGION
(dollars in thousands)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Number of | Number of | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||
Region | Hotels | Rooms | 2008 | % Total | 2007 | % Total | % Change | 2008 | % Total | 2007 | % Total | % Change | ||||||||||||||||||||||||||||||||||||
Pacific (1) | 21 | 5,205 | $ | 20,688 | 27.5 | % | $ | 23,021 | 26.7 | % | -10.1 | % | $ | 91,489 | 27.6 | % | $ | 92,766 | 26.9 | % | -1.4 | % | ||||||||||||||||||||||||||
Mountain (2) | 8 | 1,704 | 3,652 | 4.9 | % | 6,195 | 7.2 | % | -41.0 | % | 22,238 | 6.7 | % | 25,780 | 7.5 | % | -13.7 | % | ||||||||||||||||||||||||||||||
West North Central (3) | 3 | 690 | 1,995 | 2.7 | % | 2,371 | 2.7 | % | -15.9 | % | 9,498 | 2.9 | % | 9,866 | 2.9 | % | -3.7 | % | ||||||||||||||||||||||||||||||
West South Central (4) | 10 | 2,086 | 8,372 | 11.1 | % | 8,202 | 9.5 | % | 2.1 | % | �� | 31,633 | 9.5 | % | 30,873 | 9.0 | % | 2.5 | % | |||||||||||||||||||||||||||||
East North Central (5) | 10 | 2,624 | 4,103 | 5.5 | % | 6,185 | 7.2 | % | -33.7 | % | 26,581 | 8.0 | % | 26,723 | 7.7 | % | -0.5 | % | ||||||||||||||||||||||||||||||
East South Central (6) | 2 | 236 | 552 | 0.7 | % | 510 | 0.6 | % | 8.2 | % | 3,154 | 1.0 | % | 2,976 | 0.9 | % | 6.0 | % | ||||||||||||||||||||||||||||||
Middle Atlantic (7) | 9 | 2,481 | 8,562 | 11.4 | % | 10,568 | 12.2 | % | -19.0 | % | 31,467 | 9.5 | % | 36,062 | 10.5 | % | -12.7 | % | ||||||||||||||||||||||||||||||
South Atlantic (8) | 38 | 7,728 | 26,705 | 35.6 | % | 28,836 | 33.4 | % | -7.4 | % | 113,894 | 34.3 | % | 117,698 | 34.2 | % | -3.2 | % | ||||||||||||||||||||||||||||||
New England (9) | 2 | 159 | 440 | 0.6 | % | 437 | 0.5 | % | 0.7 | % | 1,795 | 0.5 | % | 1,639 | 0.4 | % | 9.5 | % | ||||||||||||||||||||||||||||||
Total Portfolio | 103 | 22,913 | $ | 75,069 | 100.0 | % | $ | 86,325 | 100.0 | % | -13.0 | % | $ | 331,749 | 100.0 | % | $ | 344,383 | 100.0 | % | -3.7 | % | ||||||||||||||||||||||||||
(1) | Includes Alaska, California, Oregon, and Washington | |
(2) | Includes Nevada, Arizona, New Mexico, and Utah | |
(3) | Includes Minnesota and Kansas | |
(4) | Includes Texas | |
(5) | Includes Ohio, Michigan, Illinois, and Indiana | |
(6) | Includes Kentucky and Alabama | |
(7) | Includes New York, New Jersey, and Pennsylvania | |
(8) | Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina | |
(9) | Includes Massachusetts and Connecticut |
NOTE: | As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all operating results related to this hotel are reflected, which is consistent with the Company’s other hotels. |
ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT MARGIN
(Unaudited)
PRO FORMA HOTEL OPERATING PROFIT MARGIN
(Unaudited)
96 HOTELS NOT UNDER RENOVATION AND INCLUDED IN CONTINUING OPERATIONS AT DECEMBER 31, 2008 AS IF SUCH HOTELS WERE OWNED AS OF THE BEGINNING OF THE PERIODS PRESENTED:
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN: | ||||
4th Quarter 2008 | 26.83 | % | ||
4th Quarter 2007 | 27.93 | % | ||
Variance | -1.10 | % | ||
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN: | ||||
Rooms | -0.05 | % | ||
Food & Beverage and Other Departmental | 0.11 | % | ||
Administrative & General | -0.37 | % | ||
Sales & Marketing | -0.74 | % | ||
Hospitality | 0.00 | % | ||
Repair & Maintenance | -0.21 | % | ||
Energy | -0.24 | % | ||
Franchise Fee | -0.08 | % | ||
Management Fee | 0.06 | % | ||
Incentive Management Fee | 0.49 | % | ||
Insurance | 0.19 | % | ||
Property Taxes | -0.63 | % | ||
Leases/Other | 0.37 | % | ||
Total | -1.10 | % | ||
NOTE: | As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma table, all operating results related to this hotel are reflected, which is consistent with the Company’s other hotels. |
PRO FORMA SEASONALITY TABLE
(dollars in thousands)
(Unaudited)
(dollars in thousands)
(Unaudited)
ALL 103 HOTELS OWNED AND INCLUDED IN CONTINUING OPERATIONS AS OF DECEMBER 31, 2008:
2008 | 2008 | 2008 | 2008 | |||||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | TTM | ||||||||||||||||
Total Hotel Revenue | $ | 292,566 | $ | 278,523 | $ | 307,691 | $ | 286,555 | $ | 1,165,335 | ||||||||||
Hotel EBITDA | $ | 75,069 | $ | 75,373 | $ | 97,530 | $ | 83,777 | $ | 331,749 | ||||||||||
Hotel EBITDA Margin | 25.7 | % | 27.1 | % | 31.7 | % | 29.2 | % | 28.5 | % | ||||||||||
EBITDA % of Total TTM | 22.6 | % | 22.7 | % | 29.4 | % | 25.3 | % | 100.0 | % | ||||||||||
JV Interests in EBITDA | $ | 1,732 | $ | 1,644 | $ | 2,868 | $ | 1,754 | $ | 7,998 |
NOTE: | As the Company’s Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro-forma table, all operating results related to this hotel are reflected, which is consistent with the Company’s other hotels. |
ASHFORD HOSPITALITY TRUST, INC.
Capital Expenditures Calendar
103 Core Hotels
Capital Expenditures Calendar
103 Core Hotels
2008 | ||||||||||||||||||||
Actual | Actual | Actual | Actual | |||||||||||||||||
Rooms | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||||
JW Marriott San Francisco | 338 | x | ||||||||||||||||||
Sheraton San Diego Mission Valley | 260 | x | ||||||||||||||||||
Hilton Minneapolis Airport | 300 | x | ||||||||||||||||||
Courtyard Basking Ridge | 235 | x | ||||||||||||||||||
TownePlace Suites Manhattan Beach | 144 | x | ||||||||||||||||||
Embassy Suites Walnut Creek | 249 | x | ||||||||||||||||||
Marriott at Research Triangle Park | 225 | x | x | |||||||||||||||||
Marriott Crystal Gateway | 697 | x | x | |||||||||||||||||
One Ocean | 193 | x | x | |||||||||||||||||
Courtyard San Francisco Downtown | 405 | x | x | |||||||||||||||||
Embassy Suites Santa Clara — Silicon Valley | 257 | x | x | |||||||||||||||||
Sheraton Anchorage | 370 | x | x | x | ||||||||||||||||
Embassy Suites Philadelphia Airport | 263 | x | x | x | ||||||||||||||||
Hampton Inn Houston Galleria | 150 | x | x | |||||||||||||||||
Hilton Tucson El Conquistador Golf Resort | 428 | x | ||||||||||||||||||
Hampton Inn Jacksonville | 118 | x | x | |||||||||||||||||
Embassy Suites West Palm Beach | 160 | x | x | |||||||||||||||||
Hyatt Regency Coral Gables | 242 | x | x | |||||||||||||||||
Hampton Inn Lawrenceville | 86 | x | ||||||||||||||||||
Courtyard Ft. Lauderdale Weston | 174 | x | ||||||||||||||||||
Hilton Rye Town | 446 | x | ||||||||||||||||||
Hilton Nassau Bay — Clear Lake | 243 | |||||||||||||||||||
Marriott Legacy Center | 404 | |||||||||||||||||||
Embassy Suites Portland — Downtown | 276 | |||||||||||||||||||
Capital Hilton | 408 | |||||||||||||||||||
Residence Inn Orlando Sea World | 350 | |||||||||||||||||||
Marriott Bridgewater | 347 |
NOTE: Only hotels which have had or are expected to have significant capital expenditures during 2008 or 2009 are included in this table.