Exhibit 99.2
Supplemental Financial Information For the quarter ended March 31, 2014 May 5, 2014 | 
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| Supplemental Financial Information – Unaudited May 5, 2014 |
Table of Contents
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | 3 |
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About Sunstone | 4 |
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Forward-Looking Statement | 5 |
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Non-GAAP Financial Measures | 6 |
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CORPORATE FINANCIAL INFORMATION | 9 |
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Condensed Consolidated Balance Sheets Q1 2014 – Q1 2013 | 10 |
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Consolidated Statements of Operations Q1 2014/2013 | 12 |
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Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA Q1 2014/2013 | 13 |
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Reconciliation of Net Income (Loss) to FFO and Adjusted FFO Q1 2014/2013 | 14 |
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Pro Forma Consolidated Statements of Operations Q1 2014 - Q1 2013 | 15 |
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EARNINGS GUIDANCE | 16 |
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Earnings Guidance for Q2 and FY 2014 | 17 |
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Reconciliation of Net Income to Adjusted EBITDA and Adjusted FFO Q2 and FY 2014 | 19 |
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CAPITALIZATION | 20 |
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Comparative Capitalization Q1 2014 - Q1 2013 | 21 |
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Consolidated Debt Summary Schedule | 22 |
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Consolidated Amortization and Debt Maturity Schedule | 23 |
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PROPERTY-LEVEL DATA | 24 |
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PROPERTY-LEVEL OPERATING STATISTICS | 26 |
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Q1 2014/2013 | 27 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
OPERATING STATISTICS BY BRAND & GEOGRAPHY | 28 |
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Comparable Portfolio Operating Statistics by Brand Q1 2014/2013 | 29 |
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Comparable Portfolio Property-Level Trailing 12 Month EBITDA Contribution by Brand | 30 |
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Comparable Portfolio Operating Statistics by Region Q1 2014/2013 | 31 |
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PROPERTY-LEVEL EBITDA & EBITDA MARGINS | 32 |
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Property-Level EBITDA Q1 2014/2013 | 33 |
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Property-Level EBITDA Margins Q1 2014/2013 | 34 |
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Property-Level EBITDA Reconciliation Q1 2014 | 35 |
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Property-Level EBITDA Reconciliation Q1 2013 | 36 |
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Property-Level EBITDA Reconciliation Q1 2014/2013 Footnotes | 37 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
CORPORATE PROFILE, FINANCIAL DISCLOSURES,
AND SAFE HARBOR
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | Page 3 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
About Sunstone
Sunstone Hotel Investors, Inc. (NYSE:SHO) is a lodging real estate investment trust (REIT) that, as of May 5, 2014, has interests in 29 hotels held for investment comprised of 13,757 rooms. Sunstone’s hotels are primarily in the upper upscale segment and are operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Sheraton.
Sunstone’s mission is to create meaningful value for our stockholders by becoming the premier hotel owner. Our values include transparency, trust, ethical conduct, communication and discipline. As demand for lodging generally fluctuates with the overall economy (we refer to these changes in demand as the lodging cycle), we seek to employ a balanced, cycle-appropriate corporate strategy that encompasses the following:
· Proactive portfolio management;
· Intensive asset management;
· Disciplined external growth; and
· Continued balance sheet strength.
Corporate Headquarters
120 Vantis, Suite 350
Aliso Viejo, CA 92656
(949) 330-4000
Company Contacts
Ken Cruse
Chief Executive Officer
(949) 382-3012
John Arabia
President
(949) 382-3008
Bryan Giglia
Chief Financial Officer
(949) 382-3036
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | Page 4 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
Forward-Looking Statement
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: volatility in the debt or equity markets affecting our ability to acquire or sell hotel assets; international, national and local economic and business conditions, including the likelihood of a U.S. recession; the ability to maintain sufficient liquidity and our access to capital markets; potential terrorist attacks, which would affect occupancy rates at our hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of our indebtedness and our ability to meet covenants in our debt and equity agreements; relationships with property managers and franchisors; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations, which influence or determine wages, prices, construction procedures and costs; our ability to identify, successfully compete for and complete acquisitions; the performance of hotels after they are acquired; necessary capital expenditures and our ability to fund them and complete them with minimum disruption; our ability to continue to satisfy complex rules in order for us to qualify as a REIT for federal income tax purposes; and other risks and uncertainties associated with our business described in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All forward-looking information in this presentation is as of May 5, 2014, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
This presentation should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent reports on Form 10-K and Form 10-Q. Copies of these reports are available on our website at www.sunstonehotels.com and through the SEC’s Electronic Data Gathering Analysis and Retrieval System (“EDGAR”) at www.sec.gov.
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | Page 5 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
Non-GAAP Financial Measures
We present the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: Earnings Before Interest Expense, Taxes, Depreciation and Amortization, or EBITDA; Adjusted EBITDA (as defined below); Funds From Operations, or FFO; Adjusted FFO (as defined below); and comparable hotel EBITDA and comparable hotel EBITDA margin. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, comparable hotel EBITDA and comparable hotel EBITDA margin as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company. These non-GAAP measures are used in addition to and in conjunction with results presented in accordance with GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.
EBITDA is a commonly used measure of performance in many industries. We believe EBITDA is useful to investors in evaluating our operating performance because this measure helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization) from our operating results. We also believe the use of EBITDA facilitates comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital-intensive companies. In addition, certain covenants included in our indebtedness use EBITDA as a measure of financial compliance. We also use EBITDA as a measure in determining the value of hotel acquisitions and dispositions.
Historically, we have adjusted EBITDA when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful information to investors regarding our operating performance and that the presentation of Adjusted EBITDA, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s complete understanding of our operating performance.
We believe that the presentation of FFO provides useful information to investors regarding our operating performance because it is a measure of our operations without regard to specified non-cash items such as real estate depreciation and amortization, amortization of lease intangibles, any real estate impairment loss and any gain or loss on sale of real estate assets, all of which are based on historical cost accounting and may be of lesser significance in evaluating our current performance. We believe the use of FFO facilitates comparisons between us and other lodging REITs.
We also present Adjusted FFO when evaluating our operating performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance, and may facilitate comparisons of operating performance between periods and our peer companies.
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | Page 6 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
We adjust EBITDA and FFO for the following items, which may occur in any period, and refer to these measures as either Adjusted EBITDA or Adjusted FFO:
· Amortization of favorable and unfavorable contracts: we exclude the non-cash amortization of the favorable management contract asset recorded in conjunction with our acquisition of the Hilton Garden Inn Chicago Downtown/Magnificent Mile, along with the favorable tenant lease assets recorded in conjunction with our acquisitions of the Hilton New Orleans St. Charles and the Hyatt Regency San Francisco, and the unfavorable tenant lease liabilities recorded in conjunction with our acquisitions of the Boston Park Plaza, the Hilton Garden Inn Chicago Downtown/Magnificent Mile and the Hyatt Regency San Francisco. The amortization of favorable and unfavorable contracts does not reflect the underlying performance of our hotels.
· Ground rent adjustments: we exclude the non-cash expense incurred from straightlining our ground lease obligations as this expense does not reflect the underlying performance of our hotels.
· Gains or losses from debt transactions: we exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of deferred financing costs from the original issuance of the debt being redeemed or retired because, like interest expense, their removal helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure.
· Acquisition costs: under GAAP, costs associated with completed acquisitions are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company.
· Consolidated partnership adjustments: we deduct the non-controlling partner’s pro rata share of any EBITDA or FFO adjustments related to our consolidated Hilton San Diego Bayfront partnership.
· Cumulative effect of a change in accounting principle: from time to time, the FASB promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments because they do not reflect our actual performance for that period.
· Impairment losses: we exclude the effect of impairment losses because we believe that including them in Adjusted EBITDA and Adjusted FFO is not consistent with reflecting the ongoing performance of our remaining assets.
· Other adjustments: we exclude other adjustments such as lawsuit settlement costs, prior year property tax assessments and/or credits, management company transition costs, and departmental closing costs, including severance, because we do not believe these costs reflect our actual performance for that period and/or the ongoing operations of our hotels.
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | Page 7 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
In addition, to derive Adjusted EBITDA we exclude the non-cash expense incurred with the amortization of deferred stock compensation as this expense does not reflect the underlying performance of our hotels. We also include an adjustment for the cash ground lease expense recorded on the Hyatt Chicago Magnificent Mile’s building lease. Upon acquisition of this hotel, we determined that the building lease was a capital lease, and, therefore, we include a portion of the capital lease payment each month in interest expense. We include an adjustment for ground lease expense on capital leases in order to more accurately reflect the operating performance of the Hyatt Chicago Magnificent Mile. We also exclude the effect of gains and losses on the disposition of depreciable assets because we believe that including them in Adjusted EBITDA is not consistent with reflecting the ongoing performance of our assets. In addition, material gains or losses from the depreciated value of the disposed assets could be less important to investors given that the depreciated asset value often does not reflect its market value.
To derive Adjusted FFO, we also exclude the non-cash gains or losses on our derivatives, as well as the original issuance costs associated with the redemption of preferred stock and any federal and state taxes associated with the application of net operating loss carryforwards. We believe that these items are not reflective of our ongoing finance costs.
Reconciliations of net income (loss) to EBITDA and Adjusted EBITDA are set forth on page 13 of this supplemental package. Reconciliations of net income (loss) to FFO and Adjusted FFO are set forth on page 14 of this supplemental package.
Our 29 comparable hotels include all hotels held for investment by the Company as of March 31, 2014, and also include prior ownership results as applicable in 2013 for the Hilton New Orleans St. Charles acquired in May 2013, the Boston Park Plaza acquired in July 2013, and the Hyatt Regency San Francisco acquired in December 2013.
CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR | Page 8 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
CORPORATE FINANCIAL INFORMATION
CORPORATE FINANCIAL INFORMATION | Page 9 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
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Condensed Consolidated Balance Sheets
Q1 2014 – Q1 2013
(In thousands) | | March 31, 2014 (1) | | December 31, 2013 (2) | | September 30, 2013 (3) | | June 30, 2013 (4) | | March 31, 2013 (5) | |
Assets | | | | | | | | | | | �� |
Investment in hotel properties: | | | | | | | | | | | |
Land | | $ | 439,304 | | $ | 439,304 | | $ | 323,164 | | $ | 264,637 | | $ | 260,939 | |
Buildings & improvements | | 2,986,687 | | 2,977,458 | | 2,835,056 | | 2,655,644 | | 2,554,898 | |
Furniture, fixtures, & equipment | | 422,676 | | 414,192 | | 387,680 | | 366,536 | | 341,252 | |
Other | | 224,863 | | 207,878 | | 201,676 | | 188,891 | | 233,980 | |
| | 4,073,530 | | 4,038,832 | | 3,747,576 | | 3,475,708 | | 3,391,069 | |
Less accumulated depreciation & amortization | | (845,751) | | (807,450) | | (770,527) | | (734,759) | | (701,786) | |
| | 3,227,779 | | 3,231,382 | | 2,977,049 | | 2,740,949 | | 2,689,283 | |
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Other assets, net | | 38,871 | | 39,730 | | 40,947 | | 62,049 | | 52,287 | |
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Current assets: | | | | | | | | | | | |
Cash and cash equivalents | | 94,792 | | 104,363 | | 100,225 | | 123,217 | | 208,313 | |
Cash proceeds held by accommodator | | - | | - | | - | | 72,287 | | 139,434 | |
Restricted cash | | 82,748 | | 89,306 | | 84,139 | | 76,711 | | 69,423 | |
Other current assets, net | | 52,852 | | 44,017 | | 53,326 | | 41,943 | | 44,908 | |
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Total assets | | $ | 3,497,042 | | $ | 3,508,798 | | $ | 3,255,686 | | $ | 3,117,156 | | $ | 3,203,648 | |
*Footnotes on following page
CORPORATE FINANCIAL INFORMATION | Page 10 |
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| Supplemental Financial Information – Unaudited May 5, 2014 |
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Condensed Consolidated Balance Sheets
Q1 2014 – Q1 2013 (cont.)
(In thousands) | | March 31, 2014 (1) | | December 31, 2013 (2) | | September 30, 2013 (3) | | June 30, 2013 (4) | | March 31, 2013 (5) | |
Liabilities | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | |
Current portion of notes payable | | $ | 24,008 | | $ | 23,289 | | $ | 23,351 | | $ | 20,571 | | $ | 19,757 | |
Other current liabilities | | 102,320 | | 96,780 | | 100,997 | | 82,229 | | 87,933 | |
Total current liabilities | | 126,328 | | 120,069 | | 124,348 | | 102,800 | | 107,690 | |
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Notes payable, less current portion | | 1,374,394 | | 1,380,786 | | 1,387,006 | | 1,275,626 | | 1,281,112 | |
Capital lease obligations, less current portion | | 15,577 | | 15,586 | | 15,594 | | 15,603 | | 15,615 | |
Other liabilities | | 40,610 | | 39,958 | | 39,901 | | 38,955 | | 32,583 | |
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Total liabilities | | 1,556,909 | | 1,556,399 | | 1,566,849 | | 1,432,984 | | 1,437,000 | |
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Series C cumulative convertible redeemable preferred stock | | - | | - | | - | | - | | 100,000 | |
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Equity | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | |
8% Series D cumulative redeemable preferred stock | | 115,000 | | 115,000 | | 115,000 | | 115,000 | | 115,000 | |
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Common stock, $0.01 par value, 500,000,000 shares authorized | | 1,814 | | 1,809 | | 1,609 | | 1,609 | | 1,608 | |
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Additional paid in capital | | 2,071,421 | | 2,068,721 | | 1,796,656 | | 1,795,295 | | 1,793,825 | |
Retained earnings | | 218,642 | | 224,364 | | 219,837 | | 205,788 | | 187,005 | |
Cumulative dividends | | (522,911) | | (511,444) | | (500,001) | | (489,558) | | (486,047) | |
Total stockholders’ equity | | 1,883,966 | | 1,898,450 | | 1,633,101 | | 1,628,134 | | 1,611,391 | |
Non-controlling interest in consolidated joint ventures | | 56,167 | | 53,949 | | 55,736 | | 56,038 | | 55,257 | |
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Total equity | | 1,940,133 | | 1,952,399 | | 1,688,837 | | 1,684,172 | | 1,666,648 | |
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Total liabilities and equity | | $ | 3,497,042 | | $ | 3,508,798 | | $ | 3,255,686 | | $ | 3,117,156 | | $ | 3,203,648 | |
(1) As presented on Form 10-Q to be filed in May 2014.
(2) As presented on Form 10-K filed February 25, 2014.
(3) As presented on Form 10-Q filed November 12, 2013.
(4) As presented on Form 10-Q filed August 7, 2013.
(5) As presented on Form 10-Q filed May 8, 2013.
CORPORATE FINANCIAL INFORMATION | Page 11 |
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| Supplemental Financial Information – Unaudited May 5, 2014 |
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Consolidated Statements of Operations
Q1 2014/2013
| | Three Months Ended March 31, | |
(In thousands, except per share data) | | 2014 | | 2013 | |
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Revenues | | | | | |
Room | | $ | 168,127 | | $ | 132,623 | |
Food and beverage | | 59,911 | | 49,628 | |
Other operating | | 15,445 | | 12,670 | |
Total revenues | | 243,483 | | 194,921 | |
Operating expenses | | | | | |
Room | | 48,919 | | 37,454 | |
Food and beverage | | 42,908 | | 35,096 | |
Other operating | | 4,995 | | 4,242 | |
Advertising and promotion | | 12,971 | | 11,265 | |
Repairs and maintenance | | 10,881 | | 8,374 | |
Utilities | | 8,289 | | 6,183 | |
Franchise costs | | 8,077 | | 6,478 | |
Property tax, ground lease and insurance | | 19,052 | | 18,468 | |
Property general and administrative | | 28,922 | | 23,606 | |
Corporate overhead | | 6,559 | | 6,171 | |
Depreciation and amortization | | 37,615 | | 34,016 | |
Total operating expenses | | 229,188 | | 191,353 | |
Operating income | | 14,295 | | 3,568 | |
Interest and other income | | 716 | | 563 | |
Interest expense | | (18,283) | | (17,414) | |
Loss on extinguishment of debt | | - | | (44) | |
Loss before income taxes and discontinued operations | | (3,272) | | (13,327) | |
Income tax provision | | (224) | | (6,157) | |
Loss from continuing operations | | (3,496) | | (19,484) | |
Income from discontinued operations | | - | | 48,410 | |
Net income (loss) | | (3,496) | | 28,926 | |
Income from consolidated joint venture attributable to non-controlling interest | | (2,226) | | (297) | |
Distributions to non-controlling interest | | (8) | | (8) | |
Dividends paid on unvested restricted stock compensation | | (100) | | - | |
Preferred stock dividends and redemption charge | | (2,300) | | (10,903) | |
Undistributed income allocated to unvested restricted stock compensation | | - | | (218) | |
Income available (loss attributable) to common stockholders | | $ | (8,130) | | $ | 17,500 | |
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Basic and diluted per share amounts: | | | | | |
Loss from continuing operations attributable to common stockholders | | $ | (0.04) | | $ | (0.20) | |
Income from discontinued operations | | - | | 0.32 | |
Basic and diluted income available (loss attributable) to common stockholders per common share | | $ | (0.04) | | $ | 0.12 | |
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Basic and diluted weighted average common shares outstanding | | 181,061 | | 151,076 | |
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Dividends declared per common share | | $ | 0.05 | | $ | - | |
CORPORATE FINANCIAL INFORMATION | Page 12 |
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| Supplemental Financial Information – Unaudited May 5, 2014 |
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Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Q1 2014/2013
| | Three Months Ended | |
| | March 31, | |
(In thousands) | | 2014 | | 2013 | |
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Net income (loss) | | $ | (3,496) | | $ | 28,926 | |
Operations held for investment: | | | | | |
Depreciation and amortization | | 37,615 | | 34,016 | |
Amortization of lease intangibles | | 1,028 | | 1,028 | |
Interest expense | | 18,283 | | 17,414 | |
Income tax provision | | 224 | | 6,157 | |
Non-controlling interests: | | | | | |
Income from consolidated joint venture attributable to non-controlling interest | | (2,226) | | (297) | |
Depreciation and amortization | | (821) | | (1,435) | |
Interest expense | | (567) | | (577) | |
Discontinued operations: | | | | | |
Interest expense | | - | | 99 | |
EBITDA | | 50,040 | | 85,331 | |
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Operations held for investment: | | | | | |
Amortization of deferred stock compensation | | 1,372 | | 1,075 | |
Amortization of favorable and unfavorable contracts, net | | 46 | | 114 | |
Non-cash straightline lease expense | | 512 | | 693 | |
Capital lease obligation interest - cash ground rent | | (351) | | (351) | |
Gain on sale of assets | | (6) | | - | |
Loss on extinguishment of debt | | - | | 44 | |
Closing costs - completed acquisitions | | 56 | | 147 | |
Prior year property tax adjustments, net | | (2,878) | | - | |
Non-controlling interests: | | | | | |
Non-cash straightline lease expense | | (113) | | (113) | |
Prior year property tax adjustments, net | | 696 | | - | |
Discontinued operations: | | | | | |
Gain on sale of assets | | - | | (51,620) | |
Loss on extinguishment of debt | | - | | 3,115 | |
| | (666) | | (46,896) | |
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Adjusted EBITDA | | $ | 49,374 | | $ | 38,435 | |
CORPORATE FINANCIAL INFORMATION | Page 13 |
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| Supplemental Financial Information – Unaudited May 5, 2014 |
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Reconciliation of Net Income (Loss) to FFO and Adjusted FFO
Q1 2014/2013
| | Three Months Ended | |
| | March 31, | |
(In thousands, except per share data) | | 2014 | | 2013 | |
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Net income (loss) | | $ | (3,496) | | $ | 28,926 | |
Preferred stock dividends and redemption charge | | (2,300) | | (10,903) | |
Operations held for investment: | | | | | |
Real estate depreciation and amortization | | 37,226 | | 33,672 | |
Amortization of lease intangibles | | 1,028 | | 1,028 | |
Gain on sale of assets | | (6) | | - | |
Non-controlling interests: | | | | | |
Income from consolidated joint venture attributable to non-controlling interest | | (2,226) | | (297) | |
Real estate depreciation and amortization | | (821) | | (1,435) | |
Discontinued operations: | | | | | |
Gain on sale of assets | | - | | (51,620) | |
FFO | | 29,405 | | (629) | |
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Operations held for investment: | | | | | |
Amortization of favorable and unfavorable contracts, net | | 46 | | 114 | |
Non-cash straightline lease expense | | 512 | | 693 | |
Non-cash interest related to gain on derivatives, net | | (109) | | (157) | |
Loss on extinguishment of debt | | - | | 44 | |
Closing costs - completed acquisitions | | 56 | | 147 | |
Prior year property tax adjustments, net | | (2,878) | | - | |
Income tax provision related to prior years | | - | | 6,157 | |
Preferred stock redemption charge | | - | | 4,641 | |
Non-controlling interests: | | | | | |
Non-cash straightline lease expense | | (113) | | (113) | |
Prior year property tax adjustments, net | | 696 | | - | |
Discontinued operations: | | | | | |
Loss on extinguishment of debt | | - | | 3,115 | |
| | (1,790) | | 14,641 | |
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Adjusted FFO | | $ | 27,615 | | $ | 14,012 | |
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FFO per diluted share | | $ | 0.16 | | $ | - | |
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Adjusted FFO per diluted share | | $ | 0.15 | | $ | 0.09 | |
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Basic weighted average shares outstanding | | 181,061 | | 151,076 | |
Shares associated with unvested restricted stock awards | | 469 | | 305 | |
Diluted weighted average shares outstanding | | 181,530 | | 151,381 | |
CORPORATE FINANCIAL INFORMATION | Page 14 |
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| Supplemental Financial Information – Unaudited May 5, 2014 |
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Pro Forma Consolidated Statements of Operations
Q1 2014 - Q1 2013
| | Three Months Ended (1) | |
(Unaudited and in thousands) | | March 31, | | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | |
| | 2014 | | 2013 | | 2013 | | 2013 | | 2013 | |
Revenues | | | | | | | | | | | |
Room | | $ | 168,127 | | $ | 183,108 | | $ | 199,057 | | $ | 202,435 | | $ | 156,381 | |
Food and beverage | | 59,911 | | 62,340 | | 57,254 | | 63,645 | | 57,033 | |
Other operating | | 15,445 | | 15,439 | | 16,686 | | 15,313 | | 14,512 | |
Total revenues | | 243,483 | | 260,887 | | 272,997 | | 281,393 | | 227,926 | |
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Operating Expenses | | | | | | | | | | | |
Room | | 48,919 | | 50,078 | | 51,833 | | 50,230 | | 46,133 | |
Food and beverage | | 42,908 | | 43,309 | | 42,545 | | 43,205 | | 42,204 | |
Other expenses | | 93,187 | | 96,205 | | 97,552 | | 97,172 | | 92,889 | |
Corporate overhead | | 6,559 | | 6,555 | | 6,586 | | 7,359 | | 6,171 | |
Depreciation and amortization | | 37,615 | | 38,059 | | 37,786 | | 36,939 | | 39,136 | |
Total operating expenses | | 229,188 | | 234,206 | | 236,302 | | 234,905 | | 226,533 | |
| | | | | | | | | | | |
Operating Income | | 14,295 | | 26,681 | | 36,695 | | 46,488 | | 1,393 | |
| | | | | | | | | | | |
Interest income and other income | | 716 | | 743 | | 727 | | 788 | | 746 | |
Interest expense | | (18,283) | | (18,699) | | (18,854) | | (18,600) | | (18,568) | |
| | | | | | | | | | | |
Income (loss) before income taxes and discontinued operations | | (3,272) | | 8,725 | | 18,568 | | 28,676 | | (16,429) | |
Income tax provision | | (224) | | (1,435) | | (424) | | (129) | | (6,157) | |
| | | | | | | | | | | |
Income (loss) from continuing operations | | (3,496) | | 7,290 | | 18,144 | | 28,547 | | (22,586) | |
Income from discontinued operations | | - | | - | | - | | - | | 48,410 | |
| | | | | | | | | | | |
Net Income (Loss) | | $ | (3,496) | | $ | 7,290 | | $ | 18,144 | | $ | 28,547 | | $ | 25,824 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Adjusted EBITDA (2) | | $ | 49,374 | | $ | 66,157 | | $ | 74,870 | | $ | 84,906 | | $ | 41,559 | |
(1) | Includes the Company’s ownership results and prior ownership results for the 29 hotel portfolio held for investment by the Company as of March 31, 2014. Excludes interest expense and loss on extinguishment of debt on the Senior Notes due to their repayment in January 2013. Includes the 11% dividend on the $25.0 million preferred equity investment that the Company retained on the disposition of the four-hotel portfolio (Kahler Grand, Kahler Inn & Suites, Marriott Rochester and Residence Inn by Marriott Rochester) sold in January 2013. |
(2) | Pro Forma Adjusted EBITDA reconciliations by quarter for 2013 can be found in the Appendix of the supplemental package furnished on Form 8-K to the SEC on February 20, 2014. |
CORPORATE FINANCIAL INFORMATION | Page 15 |
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| Supplemental Financial Information – Unaudited May 5 , 2014 |
EARNINGS GUIDANCE
| Supplemental Financial Information – Unaudited May 5, 2014 |
|
Earnings Guidance for Q2 and FY 2014
The Company is providing guidance at this time, but does not undertake to make updates for any unanticipated developments in its business or changes in the operating environment. Achievement of the anticipated results is subject to risks and uncertainties, including those disclosed in the Company’s filings with the Securities and Exchange Commission. The Company’s guidance does not take into account the impact of any unannounced hotel acquisitions, dispositions, re-brandings, management changes, transition costs, prior-year property tax assessments and/or credits, debt repurchases or unannounced financings during 2014.
For the second quarter of 2014, the Company expects:
Metric | Quarter Ended
June 30, 2014
Guidance | | |
Comparable Hotel RevPAR Growth | +4.0% - 6.0% | | |
Net Income ($ millions) | $33 - $36 | | |
Adjusted EBITDA ($ millions) | $89 - $92 | | |
Adjusted FFO ($ millions) | $67 - $70 | | |
Adjusted FFO per diluted share | $0.37 - $0.39 | | |
Diluted Weighted Average Shares Outstanding | 181,900,000 | | |
For the full year 2014, the Company expects:
Metric | Prior 2014 FY Guidance (1) | Revised 2014 FY Guidance | Change to Prior
2014 FY Guidance
Midpoint |
Comparable Hotel RevPAR Growth | +4.0% - 6.5% | +4.5% - 6.5% | +0.25% |
Net Income ($ millions) | $57 - $77 | $66 - $81 | +$6.5 |
Adjusted EBITDA ($ millions) | $275 - $295 | $281 - $296 | +$3.5 |
Adjusted FFO ($ millions) | $190 - $210 | $196 - $211 | +$3.5 |
Adjusted FFO per diluted share | $1.04 - $1.15 | $1.07 - $1.16 | +$0.02 |
Diluted Weighted Average Shares Outstanding | 182,100,000 | 182,100,000 | - |
(1) Reflects guidance presented on February 20, 2014.
| | Supplemental Financial Information – Unaudited May 5, 2014 |
Earnings Guidance for Q2 and FY 2014
Second quarter and full year 2014 guidance are based in part on the following assumptions:
· Full year comparable hotel EBITDA margin expansion of approximately 25 to 125 basis points.
· Full year corporate overhead expense (excluding stock amortization and one-time expenses related to future acquisition closing costs) of approximately $21 million to $22 million.
· Full year interest expense of approximately $69 million, including $3 million in amortization of deferred financing fees.
· Full year preferred dividends of $9.2 million for the Series D cumulative redeemable preferred stock.
| | Supplemental Financial Information – Unaudited May 5, 2014 |
Reconciliation of Net Income to Adjusted EBITDA and Adjusted FFO
Q2 and FY 2014
Reconciliation of Net Income to Adjusted EBITDA
| | Quarter Ended | | | Year Ended | |
| | June 30, 2014 | | | December 31, 2014 | |
(In thousands, except per share data) | | Low | | High | | | Low | | High | |
Net income | | $ | 32,950 | | $ | 35,950 | | | $ | 66,000 | | $ | 81,000 | |
Depreciation and amortization | | 38,000 | | 38,000 | | | 148,000 | | 148,000 | |
Amortization of lease intangibles | | 1,000 | | 1,000 | | | 4,000 | | 4,000 | |
Interest expense | | 17,700 | | 17,700 | | | 69,500 | | 69,500 | |
Income tax provision | | 300 | | 300 | | | 1,000 | | 1,000 | |
Non-controlling interests | | (3,000 | ) | (3,000 | ) | | (12,000 | ) | (12,000 | ) |
Amortization of deferred stock compensation | | 1,800 | | 1,800 | | | 6,000 | | 6,000 | |
Non-cash straightline lease expense | | 600 | | 600 | | | 2,800 | | 2,800 | |
Capital lease obligation interest - cash ground rent | | (350 | ) | (350 | ) | | (1,400 | ) | (1,400 | ) |
Prior year property tax adjustments, net | | — | | — | | | (2,900 | ) | (2,900 | ) |
Adjusted EBITDA | | $ | 89,000 | | $ | 92,000 | | | $ | 281,000 | | $ | 296,000 | |
Reconciliation of Net Income to Adjusted FFO
Net income | | $ | 32,950 | | $ | 35,950 | | | $ | 66,000 | | $ | 81,000 | |
Preferred stock dividends | | (2,300 | ) | (2,300 | ) | | (9,200 | ) | (9,200 | ) |
Real estate depreciation and amortization | | 37,600 | | 37,600 | | | 146,000 | | 146,000 | |
Non-controlling interests | | (2,500 | ) | (2,500 | ) | | (11,000 | ) | (11,000 | ) |
Amortization of lease intangibles | | 1,000 | | 1,000 | | | 4,000 | | 4,000 | |
Non-cash straightline lease expense | | 600 | | 600 | | | 2,800 | | 2,800 | |
Prior year property tax adjustments, net | | — | | — | | | (2,900 | ) | (2,900 | ) |
Adjusted FFO | | $ | 67,350 | | $ | 70,350 | | | $ | 195,700 | | $ | 210,700 | |
| | | | | | | | | | |
Adjusted FFO per diluted share | | $ | 0.37 | | $ | 0.39 | | | $ | 1.07 | | $ | 1.16 | |
| | | | | | | | | | |
Diluted weighted average shares outstanding | | 181,900 | | 181,900 | | | 182,100 | | 182,100 | |
| | Supplemental Financial Information – Unaudited May 5, 2014 |
CAPITALIZATION
| Supplemental Financial Information – Unaudited May 5, 2014 |
|
Comparative Capitalization
Q1 2014 - Q1 2013
| | March 31, | | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | |
(In thousands, except per share data) | | 2014 | | 2013 | | 2013 | | 2013 | | 2013 | |
| | | | | | | | | | | |
Common Share Price & Dividends | | | | | | | | | | | |
At the end of the quarter | | $ | 13.73 | | $ | 13.40 | | $ | 12.74 | | $ | 12.08 | | $ | 12.31 | |
High during quarter ended | | $ | 14.00 | | $ | 14.06 | | $ | 13.49 | | $ | 13.09 | | $ | 12.31 | |
Low during quarter ended | | $ | 12.46 | | $ | 12.50 | | $ | 11.87 | | $ | 11.14 | | $ | 11.02 | |
Common dividends per share | | $ | 0.05 | | $ | 0.05 | | $ | 0.05 | | $ | - | | $ | - | |
| | | | | | | | | | | |
Common Shares & Units | | | | | | | | | | | |
Common shares outstanding (1) | | 183,349 | | 182,868 | | 182,871 | | 162,871 | | 162,823 | |
Units outstanding | | - | | - | | - | | - | | - | |
Total common shares and units outstanding | | 183,349 | | 182,868 | | 182,871 | | 162,871 | | 162,823 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Capitalization | | | | | | | | | | | |
Market value of common equity | | $ | 2,517,379 | | $ | 2,450,431 | | $ | 2,329,777 | | $ | 1,967,482 | | $ | 2,004,351 | |
Liquidation value of preferred equity - Series C (2) | | - | | - | | - | | - | | - | |
Liquidation value of preferred equity - Series D | | 115,000 | | 115,000 | | 115,000 | | 115,000 | | 115,000 | |
Consolidated debt (3) | | 1,398,402 | | 1,404,075 | | 1,410,357 | | 1,415,387 | | 1,300,869 | |
Consolidated total capitalization | | 4,030,781 | | 3,969,506 | | 3,855,134 | | 3,497,869 | | 3,420,220 | |
| | | | | | | | | | | |
Non-controlling interest in consolidated debt | | (57,650) | | (57,863) | | (58,072) | | (58,278) | | (58,481) | |
Pro rata total capitalization | | $ | 3,973,131 | | $ | 3,911,643 | | $ | 3,797,062 | | $ | 3,439,591 | | $ | 3,361,739 | |
| | | | | | | | | | | |
Consolidated debt to total capitalization | | 34.7% | | 35.4% | | 36.6% | | 40.5% | | 38.0% | |
Pro rata debt to pro rata total capitalization | | 33.7% | | 34.4% | | 35.6% | | 39.5% | | 37.0% | |
Consolidated debt and preferred equity to total capitalization | | 37.5% | | 38.3% | | 39.6% | | 43.8% | | 41.4% | |
Pro rata debt and preferred equity to total capitalization | | 36.6% | | 37.4% | | 38.6% | | 42.8% | | 40.4% | |
| | | | | | | | | | | | | | | | | |
(1) | Reflects shares outstanding at respective dates. Common shares outstanding at September 30, 2013 includes the effects of the Company’s issuance of 20,000,000 shares in November 2013. |
(2) | Liquidation value of preferred equity - Series C at March 31, 2013 includes the effects of the Company’s redemption of all 4,102,564 shares of its Series C preferred stock on May 31, 2013. |
(3) | Consolidated debt at June 30, 2013 includes $119.2 million of debt assumed in connection with the acquisition of the Boston Park Plaza in July 2013. |
| Supplemental Financial Information – Unaudited May 5, 2014 |
|
Consolidated Debt Summary Schedule
(In thousands) | | | | Interest Rate / | | Maturity | | March 31, 2014 | | Balance At | |
Debt | | Collateral | | Spread | | Date | | Balance | | Maturity | |
| | | | | | | | | | | |
Fixed Rate Debt | | | | | | | | | | | |
Secured Mortgage Debt | | Marriott Houston | | 5.34% | | 5/1/2015 | | $ | 21,452 | | $ | 20,706 | |
Secured Mortgage Debt | | Marriott Park City | | 5.34% | | 5/1/2015 | | 13,985 | | 13,498 | |
Secured Mortgage Debt | | Marriott Philadelphia | | 5.34% | | 5/1/2015 | | 25,339 | | 24,457 | |
Secured Mortgage Debt | | Marriott Tysons Corner | | 5.34% | | 5/1/2015 | | 41,861 | | 40,404 | |
Secured Mortgage Debt | | JW Marriott New Orleans | | 5.45% | | 9/1/2015 | | 39,464 | | 38,174 | |
Secured Mortgage Debt | | Renaissance Harborplace | | 5.13% | | 1/1/2016 | | 91,517 | | 85,227 | |
Secured Mortgage Debt | | Hilton North Houston | | 5.66% | | 3/11/2016 | | 31,660 | | 30,579 | |
Secured Mortgage Debt | | Renaissance Orlando at SeaWorld® | | 5.52% | | 7/1/2016 | | 77,556 | | 72,418 | |
Secured Mortgage Debt | | Embassy Suites Chicago | | 5.58% | | 3/1/2017 | | 70,687 | | 65,756 | |
Secured Mortgage Debt | | Marriott Boston Long Wharf | | 5.58% | | 4/11/2017 | | 176,000 | | 176,000 | |
Secured Mortgage Debt | | Boston Park Plaza | | 4.40% | | 2/1/2018 | | 117,907 | | 109,813 | |
Secured Mortgage Debt | | Embassy Suites La Jolla | | 6.60% | | 6/1/2019 | | 67,687 | | 62,284 | |
Secured Mortgage Debt | | Hilton Times Square | | 4.97% | | 11/1/2020 | | 87,866 | | 76,145 | |
Secured Mortgage Debt | | Renaissance Washington DC | | 5.95% | | 5/1/2021 | | 125,908 | | 106,855 | |
Total Fixed Rate Debt | | | | | | | | 988,889 | | 922,316 | |
Secured Mortgage Debt | | Hilton San Diego Bayfront | | L + 3.25% | | 4/15/2016 | | 230,602 | | 223,330 | |
Secured Mortgage Debt | | Doubletree Guest Suites Times Square | | L + 3.25% | | 10/10/2018 | | 178,911 | | 167,738 | |
Credit Facility | | Unsecured | | L + 1.75% - 3.50% | | 11/1/2015 | | - | | - | |
Total Variable Rate Debt | | | | | | | | 409,513 | | 391,068 | |
| | | | | | | | | | | |
TOTAL CONSOLIDATED DEBT | | | | | | | | $ | 1,398,402 | | $ | 1,313,384 | |
| | | | | | | | | | | |
Preferred Stock | | | | | | | | | | | |
Series D cumulative redeemable preferred | | | | 8.00% | | perpetual | | $ | 115,000 | | | |
| | | | | | | | | | | |
Debt Statistics | | | | | | | | | | | |
% Fixed Rate Debt | | | | | | | | 70.7% | | | |
% Floating Rate Debt | | | | | | | | 29.3% | | | |
Average Interest Rate (1) | | | | | | | | 4.86% | | | |
Weighted Average Maturity of Debt | | | | | | | | 3.5 years | | | |
(1) Average Interest Rate on variable-rate debt obligations is calculated based on the variable rates at March 31, 2014 and includes the effect of the Company’s interest rate derivative agreements.
| Supplemental Financial Information – Unaudited May 5, 2014 |
|
Consolidated Amortization and Debt Maturity Schedule
(1) Percent of Current Total Capitalization is calculated by dividing the sum of scheduled principal amortization and maturity payments by the March 31, 2014 pro rata total capitalization as presented on page 21.
| Supplemental Financial Information – Unaudited May 5, 2014 |
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PROPERTY-LEVEL DATA
PROPERTY-LEVEL DATA | Page 24 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
|
Property-Level Data
Hotel | | Location | | Brand | | Number of
Rooms (1) | | % of Total
Rooms | | Ownership
Interest | | Interest | | Leasehold
Maturity (2) | | Year Acquired |
| | | | | | | | | | | | | | | | | | |
1 | | Hilton San Diego Bayfront | | California | | Hilton | | 1,190 | | 8.65% | | 75% | | Leasehold | | 2071 | | 2011 |
2 | | Boston Park Plaza | | Massachusetts | | Independent | | 1,054 | | 7.66% | | 100% | | Fee Simple | | | | 2013 |
3 | | Renaissance Washington DC | | Washington DC | | Marriott | | 807 | | 5.87% | | 100% | | Fee Simple | | | | 2005 |
4 | | Hyatt Regency San Francisco | | California | | Hyatt | | 802 | | 5.83% | | 100% | | Fee Simple | | | | 2013 |
5 | | Renaissance Orlando at SeaWorld® (3) | | Florida | | Marriott | | 781 | | 5.68% | | 100% | | Fee Simple | | | | 2005 |
6 | | Renaissance Harborplace | | Maryland | | Marriott | | 622 | | 4.52% | | 100% | | Leasehold | | 2085 | | 2005 |
7 | | Renaissance Los Angeles Airport | | California | | Marriott | | 499 | | 3.63% | | 100% | | Fee Simple | | | | 2007 |
8 | | JW Marriott New Orleans (4) | | Louisiana | | Marriott | | 496 | | 3.61% | | 100% | | Leasehold | | 2081 | | 2011 |
9 | | Hilton North Houston | | Texas | | Hilton | | 480 | | 3.49% | | 100% | | Fee Simple | | | | 2002 |
10 | | Doubletree Guest Suites Times Square | | New York | | Hilton | | 468 | | 3.40% | | 100% | | Leasehold | | 2127 | | 2011 |
11 | | Marriott Quincy | | Massachusetts | | Marriott | | 464 | | 3.37% | | 100% | | Fee Simple | | | | 2007 |
12 | | Hilton Times Square | | New York | | Hilton | | 460 | | 3.34% | | 100% | | Leasehold | | 2091 | | 2006 |
13 | | Fairmont Newport Beach (5) | | California | | Fairmont | | 444 | | 3.23% | | 100% | | Leasehold | | 2082 | | 2005 |
14 | | Hyatt Chicago Magnificent Mile | | Illinois | | Hyatt | | 419 | | 3.05% | | 100% | | Leasehold | | 2097 | | 2012 |
15 | | Marriott Boston Long Wharf | | Massachusetts | | Marriott | | 412 | | 3.00% | | 100% | | Fee Simple | | | | 2007 |
16 | | Hyatt Regency Newport Beach | | California | | Hyatt | | 407 | | 2.96% | | 100% | | Leasehold | | 2048 | | 2002 |
17 | | Marriott Tysons Corner | | Virginia | | Marriott | | 396 | | 2.88% | | 100% | | Fee Simple | | | | 2002 |
18 | | Marriott Houston | | Texas | | Marriott | | 390 | | 2.84% | | 100% | | Fee Simple | | | | 2002 |
19 | | Renaissance Long Beach | | California | | Marriott | | 374 | | 2.72% | | 100% | | Fee Simple | | | | 2005 |
20 | | Embassy Suites Chicago | | Illinois | | Hilton | | 368 | | 2.68% | | 100% | | Fee Simple | | | | 2002 |
21 | | Hilton Garden Inn Chicago Downtown/Magnificent Mile | | Illinois | | Hilton | | 357 | | 2.60% | | 100% | | Fee Simple | | | | 2012 |
22 | | Renaissance Westchester | | New York | | Marriott | | 348 | | 2.53% | | 100% | | Fee Simple | | | | 2010 |
23 | | Embassy Suites La Jolla | | California | | Hilton | | 340 | | 2.47% | | 100% | | Fee Simple | | | | 2006 |
24 | | Marriott Philadelphia | | Pennsylvania | | Marriott | | 289 | | 2.10% | | 100% | | Fee Simple | | | | 2002 |
25 | | Hilton New Orleans St. Charles | | Louisiana | | Hilton | | 250 | | 1.82% | | 100% | | Fee Simple | | | | 2013 |
26 | | Marriott Portland | | Oregon | | Marriott | | 249 | | 1.81% | | 100% | | Fee Simple | | | | 2000 |
27 | | Sheraton Cerritos | | California | | Sheraton | | 203 | | 1.48% | | 100% | | Leasehold | | 2087 | | 2005 |
28 | | Marriott Park City | | Utah | | Marriott | | 199 | | 1.45% | | 100% | | Fee Simple | | | | 1999 |
29 | | Courtyard by Marriott Los Angeles | | California | | Marriott | | 185 | | 1.35% | | 100% | | Leasehold | | 2096 | | 1999 |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Total portfolio | | | | | | 13,753 | | 100% | | | | | | | | |
| | (1) | As of March 31, 2014, the Company’s total room count was 13,753. In April 2014, the Hilton Garden Inn Chicago Downtown/Magnificent Mile added four rooms, bringing the Company’s total room count to 13,757 as of the date of this release. |
| | (2) | Assumes the full exercise of all lease extensions. |
| | (3) | Reflects 100% economic interest in the Renaissance Orlando at SeaWorld®. |
| | (4) | Hotel is subject to a ground lease that expires in 2081. In addition, it is also subject to a municipal air rights lease that matures in 2044 that applies only to certain balcony space and is not integral to the hotel operation. |
| | (5) | The Company has entered into an agreement with the ground lessor of the Fairmont Newport Beach to acquire approximately seven acres of land underlying the Fairmont Newport Beach for $11.0 million. The Company expects to complete the acquisition of the leased-fee interest to the Fairmont Newport Beach during the second quarter of 2014. |
| Supplemental Financial Information – Unaudited
May 5, 2014 |
PROPERTY-LEVEL OPERATING STATISTICS
PROPERTY-LEVEL OPERATING STATISTICS | Page 26 |
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| Supplemental Financial Information – Unaudited
May 5, 2014 |
|
Property-Level Operating Statistics
Q1 2014/2013
| Hotels sorted by number of rooms | | ADR | | Occupancy | | RevPAR | |
| | | For the Three Months Ended March 31, | | For the Three Months Ended March 31, | | For the Three Months Ended March 31, | |
| | | 2014 | | 2013 | | Variance | | 2014 | | 2013 | | Variance | | 2014 | | 2013 | | Variance | |
1 | Hilton San Diego Bayfront | | $ | 215.15 | | $ | 205.53 | | 4.7% | | 88.8% | | 80.6% | | 10.2% | | $ | 191.05 | | $ | 165.66 | | 15.3% | |
2 | Boston Park Plaza (1) | | 120.61 | | 125.16 | | -3.6% | | 73.0% | | 64.3% | | 13.5% | | 88.05 | | 80.48 | | 9.4% | |
3 | Renaissance Washington DC | | 214.03 | | 215.64 | | -0.7% | | 76.6% | | 73.6% | | 4.1% | | 163.95 | | 158.71 | | 3.3% | |
4 | Hyatt Regency San Francisco (1) (2) | | 257.97 | | 233.05 | | 10.7% | | 69.7% | | 75.7% | | -7.9% | | 179.81 | | 176.42 | | 1.9% | |
5 | Renaissance Orlando at SeaWorld ® | | 168.30 | | 159.54 | | 5.5% | | 81.4% | | 82.1% | | -0.9% | | 137.00 | | 130.98 | | 4.6% | |
6 | Renaissance Harborplace | | 149.77 | | 147.33 | | 1.7% | | 59.7% | | 61.7% | | -3.2% | | 89.41 | | 90.90 | | -1.6% | |
7 | Renaissance Los Angeles Airport | | 124.36 | | 113.48 | | 9.6% | | 92.2% | | 88.0% | | 4.8% | | 114.66 | | 99.86 | | 14.8% | |
8 | JW Marriott New Orleans | | 216.10 | | 210.74 | | 2.5% | | 81.5% | | 85.3% | | -4.5% | | 176.12 | | 179.76 | | -2.0% | |
9 | Hilton North Houston | | 118.84 | | 101.16 | | 17.5% | | 85.0% | | 87.9% | | -3.3% | | 101.01 | | 88.92 | | 13.6% | |
10 | Doubletree Guest Suites Times Square | | 258.62 | | 272.47 | | -5.1% | | 94.7% | | 96.2% | | -1.6% | | 244.91 | | 262.12 | | -6.6% | |
11 | Marriott Quincy | | 141.98 | | 143.77 | | -1.2% | | 61.6% | | 59.6% | | 3.4% | | 87.46 | | 85.69 | | 2.1% | |
12 | Hilton Times Square (2) | | 244.51 | | 254.29 | | -3.8% | | 99.2% | | 65.1% | | 52.4% | | 242.55 | | 165.54 | | 46.5% | |
13 | Fairmont Newport Beach | | 148.72 | | 141.77 | | 4.9% | | 79.6% | | 71.5% | | 11.3% | | 118.38 | | 101.37 | | 16.8% | |
14 | Hyatt Chicago Magnificent Mile (2) | | 137.08 | | 109.78 | | 24.9% | | 50.0% | | 49.1% | | 1.8% | | 68.54 | | 53.90 | | 27.2% | |
15 | Marriott Boston Long Wharf | | 221.78 | | 209.51 | | 5.9% | | 80.2% | | 78.8% | | 1.8% | | 177.87 | | 165.09 | | 7.7% | |
16 | Hyatt Regency Newport Beach (2) | | 149.26 | | 128.70 | | 16.0% | | 85.0% | | 57.3% | | 48.3% | | 126.87 | | 73.75 | | 72.0% | |
17 | Marriott Tysons Corner | | 149.89 | | 166.20 | | -9.8% | | 71.0% | | 58.2% | | 22.0% | | 106.42 | | 96.73 | | 10.0% | |
18 | Marriott Houston | | 120.73 | | 104.20 | | 15.9% | | 80.7% | | 83.0% | | -2.8% | | 97.43 | | 86.49 | | 12.7% | |
19 | Renaissance Long Beach (2) | | 149.72 | | 150.36 | | -0.4% | | 67.0% | | 76.5% | | -12.4% | | 100.31 | | 115.03 | | -12.8% | |
20 | Embassy Suites Chicago | | 134.06 | | 143.71 | | -6.7% | | 77.0% | | 72.5% | | 6.2% | | 103.23 | | 104.19 | | -0.9% | |
21 | Hilton Garden Inn Chicago Downtown/Magnificent Mile (2) | | 114.36 | | 124.15 | | -7.9% | | 56.1% | | 71.8% | | -21.9% | | 64.16 | | 89.14 | | -28.0% | |
22 | Renaissance Westchester (2) | | 138.39 | | 131.40 | | 5.3% | | 66.3% | | 47.2% | | 40.5% | | 91.75 | | 62.02 | | 47.9% | |
23 | Embassy Suites La Jolla | | 162.34 | | 161.13 | | 0.8% | | 83.7% | | 80.9% | | 3.5% | | 135.88 | | 130.35 | | 4.2% | |
24 | Marriott Philadelphia | | 159.73 | | 160.57 | | -0.5% | | 66.7% | | 59.6% | | 11.9% | | 106.54 | | 95.70 | | 11.3% | |
25 | Hilton New Orleans St. Charles (1) | | 190.53 | | 177.51 | | 7.3% | | 80.2% | | 84.8% | | -5.4% | | 152.81 | | 150.53 | | 1.5% | |
26 | Marriott Portland | | 150.17 | | 137.59 | | 9.1% | | 81.4% | | 69.2% | | 17.6% | | 122.24 | | 95.21 | | 28.4% | |
27 | Sheraton Cerritos | | 125.39 | | 117.31 | | 6.9% | | 92.7% | | 92.5% | | 0.2% | | 116.24 | | 108.51 | | 7.1% | |
28 | Marriott Park City | | 221.22 | | 215.40 | | 2.7% | | 83.0% | | 82.7% | | 0.4% | | 183.61 | | 178.14 | | 3.1% | |
29 | Courtyard by Marriott Los Angeles | | 151.08 | | 141.88 | | 6.5% | | 97.5% | | 94.5% | | 3.2% | | 147.30 | | 134.08 | | 9.9% | |
| | | | | | | | | | | | | | | | | | | | |
| Comparable Portfolio (1) | | $ | 174.91 | | $ | 169.43 | | 3.2% | | 77.7% | | 73.7% | | 5.4% | | $ | 135.91 | | $ | 124.87 | | 8.8% | |
| | | | | | | | | | | | | | | | | | | | |
| Comparable Portfolio Adjusted for Change in Marriott Calendar (3) | | $ | 174.91 | | $ | 169.83 | | 3.0% | | 77.7% | | 73.7% | | 5.4% | | $ | 135.91 | | $ | 125.16 | | 8.6% | |
| (1) | Comparable Portfolio includes all 29 hotels held for investment by the Company as of March 31, 2014. Includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013. |
| (2) | Operating statistics for the first quarter of 2014 are impacted by major room renovations at the following hotels: the Hilton Garden Inn Chicago Downtown/Magnificent Mile; the Hyatt Regency San Francisco; and the Renaissance Long Beach. Operating statistics for the first quarter of 2013 are impacted by major room renovations at the following hotels: the Hilton Times Square; the Hyatt Chicago Magnificent Mile; the Hyatt Regency Newport Beach; and the Renaissance Westchester. |
| (3) | Comparable Portfolio Adjusted for Change in Marriott Calendar includes the effects of removing three additional days (December 29, 2012 through December 31, 2012) from Marriott’s fiscal 2013 calendar for the Company’s ten Marriott-managed hotels. |
PROPERTY-LEVEL OPERATING STATISTICS | Page 27 |
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| Supplemental Financial Information – Unaudited
May 5, 2014 |
| |
OPERATING STATISTICS BY BRAND & GEOGRAPHY
OPERATING STATISTICS BY BRAND & GEOGRAPHY | Page 28 |
| |
| Supplemental Financial Information – Unaudited
May 5, 2014 |
| |
Comparable Portfolio Operating Statistics by Brand
Q1 2014/2013
| | | | For the Three Months Ended March 31, | |
| | | | 2014 | | 2013 | | | |
| | | | | | | | | |
| | # of Hotels | | Occ | | ADR | | RevPAR | | Occ | | ADR | | RevPAR | | RevPAR Change | |
Marriott | | 15 | | 75.6% | | $ | 168.14 | | $ | 127.11 | | 73.3% | | $ | 164.07 | | $ | 120.26 | | 5.7% | |
Hilton (1) | | 8 | | 85.2% | | $ | 194.15 | | $ | 165.42 | | 80.2% | | $ | 187.89 | | $ | 150.69 | | 9.8% | |
Hyatt (2) | | 3 | | 68.5% | | $ | 201.51 | | $ | 138.03 | | 64.3% | | $ | 185.74 | | $ | 119.43 | | 15.6% | |
Other (3) | | 3 | | 77.1% | | $ | 128.88 | | $ | 99.37 | | 69.6% | | $ | 128.37 | | $ | 89.35 | | 11.2% | |
| | | | | | | | | | | | | | | | | |
Comparable Portfolio (4) | | 29 | | 77.7% | | $ | 174.91 | | $ | 135.91 | | 73.7% | | $ | 169.43 | | $ | 124.87 | | 8.8% | |
| | | | | | | | | | | | | | | | | |
Comparable Portfolio Adjusted for Change in Marriott Calendar (5) | | 29 | | 77.7% | | $ | 174.91 | | $ | 135.91 | | 73.7% | | $ | 169.83 | | $ | 125.16 | | 8.6% | |
| (1) | Hilton includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013. |
| | |
| (2) | Hyatt includes prior ownership results for the Hyatt Regency San Francisco acquired on December 2, 2013. |
| | |
| (3) | Other includes the Fairmont Newport Beach, the Sheraton Cerritos and the Boston Park Plaza. Includes prior ownership results for the Boston Park Plaza acquired on July 2, 2013. |
| | |
| (4) | Comparable Portfolio includes all 29 hotels held for investment by the Company as of March 31, 2014. Includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013. |
| | |
| (5) | Comparable Portfolio Adjusted for Change in Marriott Calendar includes the effects of removing three additional days (December 29, 2012 through December 31, 2012) from Marriott's fiscal 2013 calendar for the Company's ten Marriott-managed hotels. |
OPERATING STATISTICS BY BRAND & GEOGRAPHY | Page 29 |
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| Supplemental Financial Information – Unaudited
May 5, 2014 |
Comparable Portfolio Property-Level Trailing 12 Month EBITDA Contribution
by Brand
Note: Includes 29 hotel Comparable Portfolio.
OPERATING STATISTICS BY BRAND & GEOGRAPHY | Page 30 |
| |
| Supplemental Financial Information – Unaudited May 5, 2014 |
Comparable Portfolio Operating Statistics by Region
Q1 2014/2013
| | | | | For the Three Months Ended March 31, | |
| | | | | 2014 | | 2013 | | | |
| | | # of Hotels | | Occ | | ADR | | RevPAR | | Occ | | ADR | | RevPAR | | RevPAR Change | |
| California (1) | | 9 | | 82.8% | | $ | 181.45 | | $ | 150.24 | | 78.4% | | $ | 171.48 | | $ | 134.44 | | 11.8% | |
| Other West | | 4 | | 82.8% | | $ | 140.71 | | $ | 116.51 | | 82.1% | | $ | 125.23 | | $ | 102.81 | | 13.3% | |
| Midwest | | 3 | | 60.6% | | $ | 129.28 | | $ | 78.34 | | 63.7% | | $ | 127.27 | | $ | 81.07 | | -3.4% | |
| East (2) | | 13 | | 76.2% | | $ | 183.52 | | $ | 139.84 | | 70.8% | | $ | 183.87 | | $ | 130.18 | | 7.4% | |
| | | | | | | | | | | | | | | | | | |
| Comparable Portfolio (3) | | 29 | | 77.7% | | $ | 174.91 | | $ | 135.91 | | 73.7% | | $ | 169.43 | | $ | 124.87 | | 8.8% | |
| | | | | | | | | | | | | | | | | | |
| Comparable Portfolio Adjusted for Change in Marriott Calendar (4) | | 29 | | 77.7% | | $ | 174.91 | | $ | 135.91 | | 73.7% | | $ | 169.83 | | $ | 125.16 | | 8.6% | |
| | | | |
| | | | |
| | | | |
| (1) | | California includes prior ownership results for the Hyatt Regency San Francisco acquired on December 2, 2013. | |
| (2) | | East includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013, and the Boston Park Plaza acquired on July 2, 2013. | |
| (3) | | Comparable Portfolio includes all 29 hotels held for investment by the Company as of March 31, 2014. Includes prior ownership results for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013. | |
| (4) | | Comparable Portfolio Adjusted for Change in Marriott Calendar includes the effects of removing three additional days (December 29, 2012 through December 31, 2012) from Marriott's fiscal 2013 calendar for the Company's ten Marriott-managed hotels. | |
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OPERATING STATISTICS BY BRAND & GEOGRAPHY | Page 31 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
PROPERTY-LEVEL EBITDA & EBITDA MARGINS
PROPERTY-LEVEL EBITDA & EBITDA MARGINS | Page 32 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
Property-Level EBITDA
Q1 2014/2013
| | Hotels sorted by number of rooms | | For the Three Months Ended March 31, | |
| | | | | | | | | |
| | (In thousands) | | 2014 | | 2013 | | | |
| | | | Hotel EBITDA (2) | | Hotel EBITDA (2) | | % Change | |
1 | | Hilton San Diego Bayfront (1) (3) | | $ | 14,903 | | $ | 9,694 | | 54% | |
2 | | Boston Park Plaza (4) | | (836) | | (622) | | -34% | |
3 | | Renaissance Washington DC | | 5,213 | | 5,654 | | -8% | |
4 | | Hyatt Regency San Francisco (3) (4) | | 1,474 | | 2,132 | | -31% | |
5 | | Renaissance Orlando at SeaWorld ® | | 7,011 | | 5,838 | | 20% | |
6 | | Renaissance Harborplace | | 1,312 | | 1,103 | | 19% | |
7 | | Renaissance Los Angeles Airport | | 1,712 | | 1,264 | | 35% | |
8 | | JW Marriott New Orleans | | 4,234 | | 4,519 | | -6% | |
9 | | Hilton North Houston | | 1,905 | | 1,276 | | 49% | |
10 | | Doubletree Guest Suites Times Square (1) | | 1,923 | | 2,466 | | -22% | |
11 | | Marriott Quincy | | 693 | | 852 | | -19% | |
12 | | Hilton Times Square (3) | | 1,784 | | (97) | | 1939% | |
13 | | Fairmont Newport Beach (3) | | 1,758 | | 1,087 | | 62% | |
14 | | Hyatt Chicago Magnificent Mile (3) | | (1,307) | | (1,899) | | 31% | |
15 | | Marriott Boston Long Wharf | | 2,349 | | 2,409 | | -2% | |
16 | | Hyatt Regency Newport Beach (3) | | 1,691 | | (245) | | 790% | |
17 | | Marriott Tysons Corner | | 1,551 | | 1,308 | | 19% | |
18 | | Marriott Houston | | 1,308 | | 876 | | 49% | |
19 | | Renaissance Long Beach (3) | | 893 | | 1,594 | | -44% | |
20 | | Embassy Suites Chicago (3) | | 615 | | 787 | | -22% | |
21 | | Hilton Garden Inn Chicago Downtown/Magnificent Mile (3) | | (341) | | 469 | | -173% | |
22 | | Renaissance Westchester (3) | | 173 | | (978) | | 118% | |
23 | | Embassy Suites La Jolla | | 1,953 | | 1,862 | | 5% | |
24 | | Marriott Philadelphia | | 590 | | 715 | | -17% | |
25 | | Hilton New Orleans St. Charles (4) | | 1,740 | | 1,435 | | 21% | |
26 | | Marriott Portland | | 1,338 | | 860 | | 56% | |
27 | | Sheraton Cerritos | | 837 | | 888 | | -6% | |
28 | | Marriott Park City | | 1,847 | | 1,847 | | 0% | |
29 | | Courtyard by Marriott Los Angeles | | 988 | | 858 | | 15% | |
| | | | | | | | | |
| | Comparable Portfolio (4) | | $ | 59,311 | | $ | 47,952 | | 24% | |
| | |
| | (1) | | Reflects 100% ownership. |
| | (2) | | Reconciliations to Net Income (Loss) provided on pages 35 and 36. |
| | (3) | | Hotel EBITDA for the first quarter of 2014 is impacted by major room and public space renovations at the following hotels: the Hilton Garden Inn Chicago Downtown/Magnificent Mile; the Hyatt Regency San Francisco; and the Renaissance Long Beach. Hotel EBITDA for the first quarter of 2014 is also impacted by a total of $2.9 million in property tax credits net of appeal fees received at the following hotels: the Embassy Suites Chicago $12,000; the Fairmont Newport Beach $83,000; and the Hilton San Diego Bayfront $2.8 million. Hotel EBITDA for the first quarter of 2013 is impacted by major room renovations at the following hotels: the Hilton Times Square; the Hyatt Chicago Magnificent Mile; the Hyatt Regency Newport Beach; and the Renaissance Westchester. |
| | (4) | | Comparable Portfolio for the three months ended March 31, 2014 and 2013 includes all 29 hotels held for investment by the Company as of March 31, 2014. Includes the Company's ownership results, prior ownership results and the Company's pro forma depreciation and interest expense as applicable for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013. Prior ownership for the Boston Park Plaza includes management fees reported at the prior owner's expense of 4.0% of total revenues. Based on the Company's current contract with the hotel's third-party manager which assesses management fees at 2.5%, the hotel's EBITDA would have been $(0.5) million for the three months ended March 31, 2013. |
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PROPERTY-LEVEL EBITDA & EBITDA MARGINS | Page 33 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
Property-Level EBITDA Margins
Q1 2014/2013
| | Hotels sorted by number of rooms | | For the Three Months Ended March 31, | |
| | | | 2014 | | 2013 | | | |
| | | | Hotel EBITDA
Margin | | Hotel EBITDA
Margin | | Change in
bps | |
1 | | Hilton San Diego Bayfront (1) (2) | | 45.8% | | 33.3% | | 1,250 bps | |
2 | | Boston Park Plaza (3) | | -7.5% | | -5.8% | | (170) bps | |
3 | | Renaissance Washington DC | | 27.6% | | 28.9% | | (130) bps | |
4 | | Hyatt Regency San Francisco (2) (3) | | 8.4% | | 11.5% | | (310) bps | |
5 | | Renaissance Orlando at SeaWorld ® | | 36.7% | | 33.8% | | 290 bps | |
6 | | Renaissance Harborplace | | 15.9% | | 13.4% | | 250 bps | |
7 | | Renaissance Los Angeles Airport | | 23.7% | | 20.0% | | 370 bps | |
8 | | JW Marriott New Orleans | | 41.8% | | 42.0% | | (20) bps | |
9 | | Hilton North Houston | | 27.4% | | 21.5% | | 590 bps | |
10 | | Doubletree Guest Suites Times Square (1) | | 15.4% | | 18.8% | | (340) bps | |
11 | | Marriott Quincy | | 12.5% | | 15.4% | | (290) bps | |
12 | | Hilton Times Square (2) | | 15.9% | | -1.3% | | 1,720 bps | |
13 | | Fairmont Newport Beach (2) | | 24.5% | | 17.2% | | 730 bps | |
14 | | Hyatt Chicago Magnificent Mile (2) | | -33.9% | | -69.4% | | 3,550 bps | |
15 | | Marriott Boston Long Wharf | | 23.7% | | 24.4% | | (70) bps | |
16 | | Hyatt Regency Newport Beach (2) | | 21.4% | | -5.2% | | 2,660 bps | |
17 | | Marriott Tysons Corner | | 30.9% | | 27.6% | | 330 bps | |
18 | | Marriott Houston | | 27.9% | | 22.0% | | 590 bps | |
19 | | Renaissance Long Beach (2) | | 18.2% | | 27.9% | | (970) bps | |
20 | | Embassy Suites Chicago (2) | | 14.6% | | 19.2% | | (460) bps | |
21 | | Hilton Garden Inn Chicago Downtown/Magnificent Mile (2) | | -14.4% | | 14.3% | | (2,870) bps | |
22 | | Renaissance Westchester (2) | | 4.1% | | -35.3% | | 3,940 bps | |
23 | | Embassy Suites La Jolla | | 40.3% | | 39.5% | | 80 bps | |
24 | | Marriott Philadelphia | | 14.3% | | 17.3% | | (300) bps | |
25 | | Hilton New Orleans St. Charles (3) | | 44.3% | | 39.0% | | 530 bps | |
26 | | Marriott Portland | | 39.6% | | 32.5% | | 710 bps | |
27 | | Sheraton Cerritos | | 26.8% | | 27.7% | | (90) bps | |
28 | | Marriott Park City | | 43.0% | | 42.9% | | 10 bps | |
29 | | Courtyard by Marriott Los Angeles | | 33.9% | | 32.3% | | 160 bps | |
| | | | | | | | | |
| | Comparable Portfolio (3) | | 24.5% | | 21.2% | | 330 bps | |
| | | | | | | | | |
| | Adjusted Comparable Portfolio (4) | | 23.3% | | 21.2% | | 210 bps | |
| |
| | (1) | | Reflects 100% ownership. |
| | (2) | | Hotel EBITDA for the first quarter of 2014 is impacted by major room and public space renovations at the following hotels: the Hilton Garden Inn Chicago Downtown/Magnificent Mile; the Hyatt Regency San Francisco; and the Renaissance Long Beach. Hotel EBITDA for the first quarter of 2014 is also impacted by a total of $2.9 million in property tax credits net of appeal fees received at the following hotels: the Embassy Suites Chicago $12,000; the Fairmont Newport Beach $83,000; and the Hilton San Diego Bayfront $2.8 million. Hotel EBITDA for the first quarter of 2013 is impacted by major room renovations at the following hotels: the Hilton Times Square; the Hyatt Chicago Magnificent Mile; the Hyatt Regency Newport Beach; and the Renaissance Westchester. |
| | (3) | | Comparable Portfolio for the three months ended March 31, 2014 and 2013 includes all 29 hotels held for investment by the Company as of March 31, 2014. Includes the Company’s ownership results, prior ownership results and the Company’s pro forma depreciation and interest expense as applicable in 2013 for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013. Prior ownership for the Boston Park Plaza includes management fees reported at the prior owner’s expense of 4.0% of total revenues. Based on the Company’s current contract with the hotel’s third-party manager which assesses management fees at 2.5%, the hotel’s EBITDA margin would have been (4.3)% for the three months ended March 31, 2013. |
| | (4) | | Adjusted Comparable Portfolio represents the 29 hotel Comparable Portfolio adjusted to exclude the non-current property tax related items noted in Footnote 2 above. Excluding these non-current year property tax items, Comparable Portfolio EBITDA margin would have been 23.3% for the three months ended March 31, 2014. |
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PROPERTY-LEVEL EBITDA & EBITDA MARGINS | Page 34 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
|
Property-Level EBITDA Reconciliation
Q1 2014
| | Hotels sorted by number of rooms | | For the Three Months Ended March 31, 2014 | |
| | (In thousands) | | | | | | Plus: | | Plus: | | Plus: | | Equals: | | | Hotel | |
| | | | Total | | Net Income / | | Other | | | | | | Hotel | | | EBITDA | |
| | | | Revenues | | (Loss) | | Adjustments (2) | | Depreciation | | Interest Expense | | EBITDA | | | Margins | |
1 | | Hilton San Diego Bayfront (1) (3) | | $ | 32,557 | | $ | 8,902 | | $ | 450 | | $ | 3,285 | | $ | 2,266 | | $ | 14,903 | | | 45.8 | % |
2 | | Boston Park Plaza | | 11,172 | | (5,005 | ) | - | | 2,856 | | 1,313 | | (836 | ) | | -7.5 | % |
3 | | Renaissance Washington DC | | 18,882 | | 909 | | - | | 2,405 | | 1,899 | | 5,213 | | | 27.6 | % |
4 | | Hyatt Regency San Francisco (3) | | 17,480 | | (1,262 | ) | - | | 2,736 | | - | | 1,474 | | | 8.4 | % |
5 | | Renaissance Orlando at SeaWorld ® | | 19,116 | | 3,753 | | - | | 2,180 | | 1,078 | | 7,011 | | | 36.7 | % |
6 | | Renaissance Harborplace | | 8,246 | | (1,584 | ) | - | | 1,697 | | 1,199 | | 1,312 | | | 15.9 | % |
7 | | Renaissance Los Angeles Airport | | 7,224 | | 999 | | - | | 713 | | - | | 1,712 | | | 23.7 | % |
8 | | JW Marriott New Orleans | | 10,136 | | 2,456 | | 1 | | 1,339 | | 438 | | 4,234 | | | 41.8 | % |
9 | | Hilton North Houston | | 6,965 | | 526 | | - | | 920 | | 459 | | 1,905 | | | 27.4 | % |
10 | | Doubletree Guest Suites Times Square (1) | | 12,468 | | (2,170 | ) | 997 | | 1,359 | | 1,737 | | 1,923 | | | 15.4 | % |
11 | | Marriott Quincy | | 5,555 | | (457 | ) | - | | 1,150 | | - | | 693 | | | 12.5 | % |
12 | | Hilton Times Square | | 11,206 | | (2,079 | ) | 92 | | 2,551 | | 1,220 | | 1,784 | | | 15.9 | % |
13 | | Fairmont Newport Beach (3) | | 7,172 | | 597 | | - | | 1,161 | | - | | 1,758 | | | 24.5 | % |
14 | | Hyatt Chicago Magnificent Mile | | 3,856 | | (2,910 | ) | - | | 1,603 | | - | | (1,307 | ) | | -33.9 | % |
15 | | Marriott Boston Long Wharf | | 9,928 | | (2,223 | ) | - | | 2,113 | | 2,459 | | 2,349 | | | 23.7 | % |
16 | | Hyatt Regency Newport Beach | | 7,896 | | 829 | | - | | 862 | | - | | 1,691 | | | 21.4 | % |
17 | | Marriott Tysons Corner | | 5,025 | | 166 | | - | | 818 | | 567 | | 1,551 | | | 30.9 | % |
18 | | Marriott Houston | | 4,686 | | 455 | | - | | 562 | | 291 | | 1,308 | | | 27.9 | % |
19 | | Renaissance Long Beach (3) | | 4,898 | | 188 | | - | | 705 | | - | | 893 | | | 18.2 | % |
20 | | Embassy Suites Chicago (3) | | 4,202 | | (1,314 | ) | - | | 934 | | 995 | | 615 | | | 14.6 | % |
21 | | Hilton Garden Inn Chicago Downtown/Magnificent Mile (3) | | 2,376 | | (1,353 | ) | - | | 1,012 | | - | | (341 | ) | | -14.4 | % |
22 | | Renaissance Westchester | | 4,202 | | (586 | ) | - | | 759 | | - | | 173 | | | 4.1 | % |
23 | | Embassy Suites La Jolla | | 4,851 | | (78 | ) | - | | 909 | | 1,122 | | 1,953 | | | 40.3 | % |
24 | | Marriott Philadelphia | | 4,122 | | (230 | ) | - | | 475 | | 345 | | 590 | | | 14.3 | % |
25 | | Hilton New Orleans St. Charles | | 3,926 | | 1,194 | | - | | 546 | | - | | 1,740 | | | 44.3 | % |
26 | | Marriott Portland | | 3,379 | | 923 | | - | | 415 | | - | | 1,338 | | | 39.6 | % |
27 | | Sheraton Cerritos | | 3,127 | | 422 | | - | | 415 | | - | | 837 | | | 26.8 | % |
28 | | Marriott Park City | | 4,298 | | 1,216 | | - | | 440 | | 191 | | 1,847 | | | 43.0 | % |
29 | | Courtyard by Marriott Los Angeles | | 2,911 | | 682 | | - | | 306 | | - | | 988 | | | 33.9 | % |
| | | | | | | | | | | | | | | | | | |
| | Comparable Portfolio (4) | | 241,862 | | 2,966 | | 1,540 | | 37,226 | | 17,579 | | 59,311 | | | 24.5 | % |
| | | | | | | | | | | | | | | | | | |
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| | *Footnotes on page 37 | | | | | | | | | | | | | | | | |
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PROPERTY-LEVEL EBITDA & EBITDA MARGINS | Page 35 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
|
Property-Level EBITDA Reconciliation
Q1 2013
| | Hotels sorted by number of rooms | | For the Three Months Ended March 31, 2013 | |
| | (in thousands) | | | | | | Plus: | | Plus: | | Plus: | | Equals: | | | Hotel | |
| | | | Total | | Net Income / | | Other | | | | | | Hotel | | | EBITDA | |
| | | | Revenues | | (Loss) | | Adjustments (5) | | Depreciation | | Interest Expense | | EBITDA | | | Margins | |
1 | | Hilton San Diego Bayfront (1) | | $ | 29,068 | | $ | 1,195 | | $ | 450 | | $ | 5,742 | | $ | 2,307 | | $ | 9,694 | | | 33.3 | % |
2 | | Boston Park Plaza (4) | | 10,778 | | (3,790 | ) | - | | 1,849 | | 1,319 | | (622 | ) | | -5.8 | % |
3 | | Renaissance Washington DC | | 19,544 | | 1,253 | | - | | 2,471 | | 1,930 | | 5,654 | | | 28.9 | % |
4 | | Hyatt Regency San Francisco (4) | | 18,548 | | (604 | ) | - | | 2,736 | | - | | 2,132 | | | 11.5 | % |
5 | | Renaissance Orlando at SeaWorld ® | | 17,263 | | 2,883 | | - | | 1,848 | | 1,107 | | 5,838 | | | 33.8 | % |
6 | | Renaissance Harborplace | | 8,252 | | (1,926 | ) | - | | 1,788 | | 1,241 | | 1,103 | | | 13.4 | % |
7 | | Renaissance Los Angeles Airport | | 6,334 | | 515 | | - | | 749 | | - | | 1,264 | | | 20.0 | % |
8 | | JW Marriott New Orleans | | 10,755 | | 2,501 | | 1 | | 1,601 | | 416 | | 4,519 | | | 42.0 | % |
9 | | Hilton North Houston | | 5,932 | | (132 | ) | - | | 932 | | 476 | | 1,276 | | | 21.5 | % |
10 | | Doubletree Guest Suites Times Square (1) | | 13,106 | | (2,579 | ) | 1,000 | | 2,288 | | 1,757 | | 2,466 | | | 18.8 | % |
11 | | Marriott Quincy | | 5,519 | | (289 | ) | - | | 1,141 | | - | | 852 | | | 15.4 | % |
12 | | Hilton Times Square (3) | | 7,743 | | (3,867 | ) | 270 | | 2,270 | | 1,230 | | (97 | ) | | -1.3 | % |
13 | | Fairmont Newport Beach | | 6,302 | | (187 | ) | - | | 1,274 | | - | | 1,087 | | | 17.2 | % |
14 | | Hyatt Chicago Magnificent Mile (3) | | 2,736 | | (3,427 | ) | - | | 1,528 | | - | | (1,899 | ) | | -69.4 | % |
15 | | Marriott Boston Long Wharf | | 9,891 | | (2,146 | ) | - | | 2,096 | | 2,459 | | 2,409 | | | 24.4 | % |
16 | | Hyatt Regency Newport Beach (3) | | 4,724 | | (867 | ) | - | | 622 | | - | | (245 | ) | | -5.2 | % |
17 | | Marriott Tysons Corner | | 4,746 | | (220 | ) | - | | 944 | | 584 | | 1,308 | | | 27.6 | % |
18 | | Marriott Houston | | 3,981 | | 2 | | - | | 575 | | 299 | | 876 | | | 22.0 | % |
19 | | Renaissance Long Beach | | 5,715 | | 993 | | - | | 601 | | - | | 1,594 | | | 27.9 | % |
20 | | Embassy Suites Chicago | | 4,103 | | (1,084 | ) | - | | 855 | | 1,016 | | 787 | | | 19.2 | % |
21 | | Hilton Garden Inn Chicago Downtown/Magnificent Mile | | 3,272 | | (683 | ) | - | | 1,152 | | - | | 469 | | | 14.3 | % |
22 | | Renaissance Westchester (3) | | 2,770 | | (1,382 | ) | - | | 404 | | - | | (978 | ) | | -35.3 | % |
23 | | Embassy Suites La Jolla | | 4,719 | | (181 | ) | - | | 907 | | 1,136 | | 1,862 | | | 39.5 | % |
24 | | Marriott Philadelphia | | 4,142 | | (108 | ) | - | | 468 | | 355 | | 715 | | | 17.3 | % |
25 | | Hilton New Orleans St. Charles (4) | | 3,679 | | 900 | | - | | 535 | | - | | 1,435 | | | 39.0 | % |
26 | | Marriott Portland | | 2,643 | | 534 | | - | | 326 | | - | | 860 | | | 32.5 | % |
27 | | Sheraton Cerritos | | 3,211 | | 472 | | - | | 416 | | - | | 888 | | | 27.7 | % |
28 | | Marriott Park City | | 4,307 | | 1,282 | | - | | 368 | | 197 | | 1,847 | | | 42.9 | % |
29 | | Courtyard by Marriott Los Angeles | | 2,655 | | 550 | | - | | 308 | | - | | 858 | | | 32.3 | % |
| | | | | | | | | | | | | | | | | | |
| | Comparable Portfolio (4) | | 226,438 | | (10,392 | ) | 1,721 | | 38,794 | | 17,829 | | 47,952 | | | 21.2 | % |
| | | | | | | | | | | | | | | | | | |
| | Less: Prior Ownership (6) | | | | | | | | | | | | | | | | |
| | Hilton New Orleans St. Charles | | 3,679 | | 900 | | - | | 535 | | - | | 1,435 | | | 39.0 | % |
| | Boston Park Plaza | | 10,778 | | (3,790 | ) | - | | 1,849 | | 1,319 | | (622 | ) | | -5.8 | % |
| | Hyatt Regency San Francisco | | 18,548 | | (604 | ) | - | | 2,736 | | - | | 2,132 | | | 11.5 | % |
| | | | | | | | | | | | | | | | | | |
| | Actual Portfolio (7) | | $ | 193,433 | | $ | (6,898 | ) | $ | 1,721 | | $ | 33,674 | | $ | 16,510 | | $ | 45,007 | | | 23.3 | % |
| | | | | | | | | | | | | | | | | | |
| | *Footnotes on page 37 | | | | | | | | | | | | | | | | |
PROPERTY-LEVEL EBITDA & EBITDA MARGINS | Page 36 |
| Supplemental Financial Information – Unaudited May 5, 2014 |
|
Property-Level EBITDA Reconciliation
Q1 2014/2013 Footnotes
(1) | Includes 100% of the operating results for both the Doubletree Guest Suites Times Square and the Hilton San Diego Bayfront. |
(2) | Other Adjustments for the three months ended March 31, 2014 include: a total of $1.0 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and JW Marriott New Orleans; and a total of $0.5 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans. |
(3) | Hotel EBITDA for the first quarter of 2014 is impacted by major room and public space renovations at the following hotels: the Hilton Garden Inn Chicago Downtown/Magnificent Mile; the Hyatt Regency San Francisco; and the Renaissance Long Beach. Hotel EBITDA for the first quarter of 2014 is also impacted by a total of $2.9 million in property tax credits net of appeal fees received at the following hotels: the Embassy Suites Chicago $12,000; the Fairmont Newport Beach $83,000; and the Hilton San Diego Bayfront $2.8 million. Hotel EBITDA for the first quarter of 2013 is impacted by major room renovations at the following hotels: the Hilton Times Square; the Hyatt Chicago Magnificent Mile; the Hyatt Regency Newport Beach; and the Renaissance Westchester. |
(4) | Comparable Portfolio for the three months ended March 31, 2014 and 2013 includes all 29 hotels held for investment by the Company as of March 31, 2014. Includes the Company’s ownership results, prior ownership results and the Company’s pro forma depreciation and interest expense as applicable in 2013 for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013. |
(5) | Other Adjustments for the three months ended March 31, 2013 include: a total of $1.0 million in amortization of lease intangibles at the Doubletree Guest Suites Times Square, Hilton Times Square and JW Marriott New Orleans; and a total of $0.7 million in non-cash straightline lease expense at the Doubletree Guest Suites Times Square, Hilton San Diego Bayfront, Hilton Times Square and JW Marriott New Orleans. |
(6) | Prior Ownership for the three months ended March 31, 2013 includes prior ownership results and the Company’s pro forma depreciation and interest expense as applicable for the Hilton New Orleans St. Charles acquired on May 1, 2013, the Boston Park Plaza acquired on July 2, 2013, and the Hyatt Regency San Francisco acquired on December 2, 2013. |
(7) | Actual Portfolio for the three months ended March 31, 2013 includes the Company’s ownership results for all 26 hotels held for investment by the Company as of March 31, 2013. |
PROPERTY-LEVEL EBITDA & EBITDA MARGINS | Page 37 |
