Exhibit 99.2
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Supplemental Financial Information For the quarter ended March 31, 2022 May 4, 2022 | ||||
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Supplemental Financial Information |
Table of Contents
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Corporate Profile And Disclosures Regarding Non-GAAP Financial Measures | 2 | |||||||
7 | ||||||||
20 | ||||||||
23 | ||||||||
Property-Level Adjusted EBITDAre & Adjusted EBITDAre Margins | 28 |
Supplemental Financial Information |
CORPORATE PROFILE AND DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES
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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | | Page 2 | ||||||
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Supplemental Financial Information |
Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of May 4, 2022 has interests in 14 hotels comprised of 7,396 rooms, the majority of which are operated under nationally recognized brands. Sunstone’s strategy is to create long-term stakeholder value through the acquisition, active ownership and disposition of hotels considered to be Long-Term Relevant Real Estate®.
This presentation contains unaudited information, and should be read together 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 Headquarters
200 Spectrum Center Drive, 21st Floor
Irvine, CA 92618
(949) 330-4000
Company Contacts
Bryan Giglia
Chief Executive Officer
(949) 382-3036
Aaron Reyes
Chief Financial Officer
(949) 382-3018
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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | | Page 3 | ||||||
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Supplemental Financial Information |
We present the following non-GAAP financial measures that we believe are useful to investors as key supplemental measures of our operating performance: earnings before interest expense, taxes, depreciation and amortization for real estate, or EBITDAre; Adjusted EBITDAre, excluding noncontrolling interest (as defined below); funds from operations attributable to common stockholders, or FFO attributable to common stockholders; Adjusted FFO attributable to common stockholders (as defined below); hotel Adjusted EBITDAre; and hotel Adjusted EBITDAre margins. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. In addition, our calculation of these measures may not be comparable to other companies that do not define such terms exactly the same 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 net income (loss), 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.
We present EBITDAre in accordance with guidelines established by the National Association of Real Estate Investment Trusts (“NAREIT”), as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate.” We believe EBITDAre is a useful performance measure to help investors evaluate and compare the results of our operations from period to period in comparison to our peers. NAREIT defines EBITDAre as net income (calculated in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, gains or losses on the disposition of depreciated property (including gains or losses on change in control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property in the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates.
We make additional adjustments to EBITDAre 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 EBITDAre, excluding noncontrolling interest, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s complete understanding of our operating performance. In addition, we use both EBITDAre and Adjusted EBITDAre, excluding noncontrolling interest as measures in determining the value of hotel acquisitions and dispositions.
We believe that the presentation of FFO attributable to common stockholders provides useful information to investors regarding our operating performance because it is a measure of our operations without regard to specified noncash items such as real estate depreciation and amortization, 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. Our presentation of FFO attributable to common stockholders conforms to NAREIT’s definition of “FFO applicable to common shares.” Our presentation may not be comparable to FFO reported by other REITs that do not define the terms in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently that we do.
We also present Adjusted FFO attributable to common stockholders 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.
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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | | Page 4 | ||||||
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Supplemental Financial Information |
We adjust EBITDAre and FFO attributable to common stockholders for the following items, which may occur in any period, and refer to these measures as either Adjusted EBITDAre, excluding noncontrolling interest or Adjusted FFO attributable to common stockholders:
● | Amortization of deferred stock compensation: we exclude the noncash expense incurred with the amortization of deferred stock compensation as this expense is based on historical stock prices at the date of grant to our corporate employees and does not reflect the underlying performance of our hotels. |
● | Amortization of contract intangibles: we exclude the noncash amortization of any favorable or unfavorable contract intangibles recorded in conjunction with our hotel acquisitions. We exclude the noncash amortization of contract intangibles because it is based on historical cost accounting and is of lesser significance in evaluating our actual performance for the current period. |
● | 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 acquisitions that meet the definition of a business 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 or our hotels. |
● | 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, which include the accounting impact from prior periods, because they do not reflect our actual performance for that period. |
● | Other adjustments: we exclude other adjustments that we believe are outside the ordinary course of business because we do not believe these costs reflect our actual performance for the period and/or the ongoing operations of our hotels. Such items may include: lawsuit settlement costs; prior year property tax assessments or credits; the write-off of development costs associated with abandoned projects; property-level restructuring, severance and management transition costs; debt resolution costs; lease terminations; property insurance proceeds or uninsured losses; and other nonrecurring identified adjustments. |
In addition, to derive Adjusted EBITDAre, excluding noncontrolling interest we exclude the noncontrolling partner’s pro rata share of the net (income) loss allocated to the Hilton San Diego Bayfront partnership, as well as the noncontrolling partner’s pro rata share of any EBITDAre and Adjusted EBITDAre components. We also exclude the amortization of our right-of-use assets and related lease obligations as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. Additionally, we include an adjustment for the cash finance lease expense recorded on the building lease at the Hyatt Centric Chicago Magnificent Mile (prior to the hotel’s sale in February 2022). We determined that the building lease is a finance lease, and, therefore, we include a portion of the lease payment each month in interest expense. We adjust EBITDAre for the finance lease in order to more accurately reflect the actual rent due to the hotel’s lessor in the current period, as well as the operating performance of the hotel. We also exclude the effect of gains and losses on the disposition of undepreciated assets because we believe that including them in Adjusted EBITDAre, excluding noncontrolling interest is not consistent with reflecting the ongoing performance of our assets.
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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | | Page 5 | ||||||
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Supplemental Financial Information |
To derive Adjusted FFO attributable to common stockholders, we also exclude the noncash interest on our derivatives and finance lease obligation as we believe that these items are not reflective of our ongoing finance costs. Additionally, we exclude the noncontrolling partner’s pro rata share of any FFO adjustments related to our consolidated Hilton San Diego Bayfront partnership. We also exclude the real estate amortization of our right-of-use assets and related lease obligations, which includes the amortization of both our finance and operating lease intangibles (with the exception of our corporate operating lease), as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. In addition, we exclude preferred stock redemption charges, changes to deferred tax assets, liabilities or valuation allowances, and income tax benefits or provisions associated with the application of net operating loss carryforwards, uncertain tax positions or with the sale of assets other than real estate investments.
In presenting hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins, miscellaneous non-hotel items have been excluded. We believe the calculation of hotel Adjusted EBITDAre results in a more accurate presentation of the hotel Adjusted EBITDAre margins for our hotels, and that these non-GAAP financial measures are useful to investors in evaluating our property-level operating performance.
Reconciliations of net income (loss) to EBITDAre, Adjusted EBITDAre, excluding noncontrolling interest, FFO attributable to common stockholders, Adjusted FFO attributable to common stockholders, hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins are set forth in the following pages of this supplemental package. Beginning with the quarter ended March 31, 2022, the Company’s calculation of Adjusted FFO attributable to common stockholders excludes the noncash amortization expense associated with deferred stock compensation. Adjusted FFO attributable to common stockholders for the prior periods presented in this supplemental package have also been adjusted to exclude this expense.
The 14 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2022. The 12 Hotel Portfolio includes the 14 Hotel Portfolio less the Montage Healdsburg and the Four Seasons Resort Napa Valley, acquired by the Company in April 2021 and December 2021, respectively.
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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | | Page 6 | ||||||
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Supplemental Financial Information |
PRO FORMA CORPORATE FINANCIAL INFORMATION
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PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 7 | ||||||
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Supplemental Financial Information |
Pro Forma Consolidated Statements of Operations
Q1 2022 – Q2 2021, Trailing 12 Months
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| Quarter Ended (1) | | Trailing 12 Months | ||||||||||||
(Unaudited and in thousands, except per share data) | March 31, | | December 31, | | September 30, | | June 30, | | Ended | ||||||
| 2022 |
| 2021 |
| 2021 |
| 2021 |
| March 31, 2022(1) | ||||||
Revenues | | | | | | | | | | | | | | | |
Room | $ | 106,272 | | $ | 103,206 | | $ | 101,565 | | $ | 76,110 | | $ | 387,153 | |
Food and beverage | | 39,460 | | | 34,991 | | | 26,123 | | | 14,989 | | | 115,563 | |
Other operating | | 23,349 | | | 19,805 | | | 20,126 | | | 16,191 | | | 79,471 | |
Total revenues | | 169,081 | | | 158,002 | | | 147,814 | | | 107,290 | | | 582,187 | |
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Operating Expenses | | | | | | | | | | | | | | | |
Room | | 28,540 | | | 28,129 | | | 26,575 | | | 20,097 | | | 103,341 | |
Food and beverage | | 32,059 | | | 29,859 | | | 24,343 | | | 15,323 | | | 101,584 | |
Other expenses | | 71,125 | | | 65,887 | | | 61,968 | | | 47,721 | | | 246,701 | |
Corporate overhead | | 10,714 | | | 8,203 | | | 15,422 | | | 9,467 | | | 43,806 | |
Depreciation and amortization | | 30,472 | | | 29,527 | | | 28,957 | | | 29,046 | | | 118,002 | |
Impairment losses | | — | | | 1,671 | | | 1,014 | | | — | | | 2,685 | |
Total operating expenses | | 172,910 | | | 163,276 | | | 158,279 | | | 121,654 | | | 616,119 | |
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Interest and other income | | 4,380 | | | 13 | | | 2 | | | 21 | | | 4,416 | |
Interest expense | | (4,964) | | | (6,440) | | | (7,019) | | | (7,100) | | | (25,523) | |
(Loss) gain on extinguishment of debt, net | | (213) | | | (292) | | | 61 | | | 88 | | | (356) | |
Loss before income taxes | | (4,626) | | | (11,993) | | | (17,421) | | | (21,355) | | | (55,395) | |
Income tax provision, net | | (136) | | | (18) | | | (25) | | | (23) | | | (202) | |
Net loss | $ | (4,762) | | $ | (12,011) | | $ | (17,446) | | $ | (21,378) | | $ | (55,597) | |
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12 Hotel Portfolio Adjusted EBITDAre (2) | $ | 37,453 | | $ | 32,227 | | $ | 31,667 | | $ | 18,044 | | $ | 119,391 | |
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Pro Forma Adjusted EBITDAre, excluding noncontrolling interest (3) | $ | 29,335 | | $ | 29,749 | | $ | 30,620 | | $ | 17,714 | | $ | 107,418 | |
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Pro Forma Adjusted FFO attributable to common stockholders (4) | $ | 18,583 | | $ | 18,697 | | $ | 19,567 | | $ | 6,353 | | $ | 63,200 | |
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Pro Forma Adjusted FFO attributable to common stockholders per diluted share (4) | $ | 0.09 | | $ | 0.09 | | $ | 0.09 | | $ | 0.03 | | $ | 0.29 |
(1) | Excludes operating results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile due to their sales in October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile due to their sale in March 2022. |
(2) | Hotel Adjusted EBITDAre reconciliation for the first quarter of 2022 can be found later in this presentation. Additional details can be found in our earnings release, furnished in Exhibit 99.1 to our 8-K filed on May 4, 2022. |
(3) | Pro Forma Adjusted EBITDAre, excluding noncontrolling interest reconciliations for the first quarter of 2022, the fourth, third and second quarters of 2021, along with Trailing 12 Months can be found later in this presentation. |
(4) | Pro Forma Adjusted FFO attributable to common stockholders and Pro Forma Adjusted FFO attributable to common stockholders per diluted share reconciliations for the first quarter of 2022, the fourth, third and second quarters of 2021, along with the Trailing 12 Months can be found later in this presentation. |
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PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 8 | ||||||
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Supplemental Financial Information |
Pro Forma Consolidated Statements of Operations
Q4 2021 – Q1 2021, FY 2021
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| Quarter Ended (1) | | Year Ended (1) | ||||||||||||
(Unaudited and in thousands, except per share data) | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | ||||||
| 2021 |
| 2021 |
| 2021 |
| 2021 |
| 2021 | ||||||
Revenues | | | | | | | | | | | | | | | |
Room | $ | 103,206 | | $ | 101,565 | | $ | 76,110 | | $ | 31,182 | | $ | 312,063 | |
Food and beverage | | 34,991 | | | 26,123 | | | 14,989 | | | 4,864 | | | 80,967 | |
Other operating | | 19,805 | | | 20,126 | | | 16,191 | | | 10,609 | | | 66,731 | |
Total revenues | | 158,002 | | | 147,814 | | | 107,290 | | | 46,655 | | | 459,761 | |
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Operating Expenses | | | | | | | | | | | | | | | |
Room | | 28,129 | | | 26,575 | | | 20,097 | | | 10,134 | | | 84,935 | |
Food and beverage | | 29,859 | | | 24,343 | | | 15,323 | | | 5,805 | | | 75,330 | |
Other expenses | | 65,887 | | | 61,968 | | | 47,721 | | | 34,802 | | | 210,378 | |
Corporate overhead | | 8,203 | | | 15,422 | | | 9,467 | | | 7,177 | | | 40,269 | |
Depreciation and amortization | | 29,527 | | | 28,957 | | | 29,046 | | | 26,944 | | | 114,474 | |
Impairment losses | | 1,671 | | | 1,014 | | | — | | | — | | | 2,685 | |
Total operating expenses | | 163,276 | | | 158,279 | | | 121,654 | | | 84,862 | | | 528,071 | |
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Interest and other income (loss) | | 13 | | | 2 | | | 21 | | | (379) | | | (343) | |
Interest expense | | (6,440) | | | (7,019) | | | (7,100) | | | (6,693) | | | (27,252) | |
(Loss) gain on extinguishment of debt, net | | (292) | | | 61 | | | 88 | | | 222 | | | 79 | |
Loss before income taxes | | (11,993) | | | (17,421) | | | (21,355) | | | (45,057) | | | (95,826) | |
Income tax provision, net | | (18) | | | (25) | | | (23) | | | (43) | | | (109) | |
Net loss | $ | (12,011) | | $ | (17,446) | | $ | (21,378) | | $ | (45,100) | | $ | (95,935) | |
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Hotel Adjusted EBITDAre (2) | $ | 32,227 | | $ | 31,667 | | $ | 18,044 | | $ | (9,381) | | $ | 72,557 | |
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Pro Forma Adjusted EBITDAre, excluding noncontrolling interest (3) | $ | 29,749 | | $ | 30,620 | | $ | 17,714 | | $ | (8,907) | | $ | 69,176 | |
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Pro Forma Adjusted FFO attributable to common stockholders (4) | $ | 18,697 | | $ | 19,567 | | $ | 6,353 | | $ | (19,748) | | $ | 24,869 | |
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Pro Forma Adjusted FFO attributable to common stockholders per diluted share (4) | $ | 0.09 | | $ | 0.09 | | $ | 0.03 | | $ | (0.09) | | $ | 0.12 |
(1) | Excludes operating results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile due to their sales in October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile due to their sale in March 2022. |
(2) | Hotel Adjusted EBITDAre reconciliation for the first quarter of 2021 can be found later in this presentation. Additional details can be found in our earnings release, furnished in Exhibit 99.1 to our 8-K filed on May 4, 2022. |
(3) | Pro Forma Adjusted EBITDAre, excluding noncontrolling interest reconciliations for the fourth, third, second and first quarters of 2021, along with the year ended December 31, 2021 can be found later in this presentation. |
(4) | Pro Forma Adjusted FFO attributable to common stockholders and Pro Forma Adjusted FFO attributable to common stockholders per diluted share reconciliations for the fourth, third, second and first quarters of 2021, along with the year ended December 31, 2021 can be found later in this presentation. |
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PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 9 | ||||||
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Supplemental Financial Information |
Pro Forma Consolidated Statements of Operations
Q4 2019 – Q1 2019, FY 2019
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| Quarter Ended (1) | | Year Ended (1) | ||||||||||||
(Unaudited and in thousands, except per share data) | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | ||||||
| 2019 |
| 2019 |
| 2019 |
| 2019 |
| 2019 | ||||||
Revenues | | | | | | | | | | | | | | | |
Room | $ | 135,417 | | $ | 142,166 | | $ | 149,355 | | $ | 133,503 | | $ | 560,441 | |
Food and beverage | | 56,326 | | | 51,825 | | | 63,882 | | | 59,943 | | | 231,976 | |
Other operating | | 15,986 | | | 16,347 | | | 15,059 | | | 13,961 | | | 61,353 | |
Total revenues | | 207,729 | | | 210,338 | | | 228,296 | | | 207,407 | | | 853,770 | |
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Operating Expenses | | | | | | | | | | | | | | | |
Room | | 35,057 | | | 36,419 | | | 36,298 | | | 34,545 | | | 142,319 | |
Food and beverage | | 38,217 | | | 37,053 | | | 39,952 | | | 39,260 | | | 154,482 | |
Other expenses | | 69,456 | | | 68,128 | | | 69,836 | | | 69,437 | | | 276,857 | |
Corporate overhead | | 7,275 | | | 7,395 | | | 8,078 | | | 7,516 | | | 30,264 | |
Depreciation and amortization | | 26,992 | | | 27,076 | | | 26,445 | | | 26,302 | | | 106,815 | |
Total operating expenses | | 176,997 | | | 176,071 | | | 180,609 | | | 177,060 | | | 710,737 | |
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Interest and other income | | 3,060 | | | 3,762 | | | 4,811 | | | 4,924 | | | 16,557 | |
Interest expense | | (6,880) | | | (9,074) | | | (11,634) | | | (10,149) | | | (37,737) | |
Income before income taxes | | 26,912 | | | 28,955 | | | 40,864 | | | 25,122 | | | 121,853 | |
Income tax (provision) benefit, net | | (1,034) | | | 749 | | | (2,676) | | | 3,112 | | | 151 | |
Net income | $ | 25,878 | | $ | 29,704 | | $ | 38,188 | | $ | 28,234 | | $ | 122,004 | |
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Hotel Adjusted EBITDAre (2) | $ | 65,097 | | $ | 68,773 | | $ | 82,274 | | $ | 64,440 | | $ | 280,584 | |
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Pro Forma Adjusted EBITDAre, excluding noncontrolling interest (3) | $ | 60,400 | | $ | 63,170 | | $ | 77,541 | | $ | 61,066 | | $ | 262,177 | |
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Pro Forma Adjusted FFO attributable to common stockholders (4) | $ | 49,620 | | $ | 53,456 | | $ | 66,602 | | $ | 49,736 | | $ | 219,414 | |
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Pro Forma Adjusted FFO attributable to common stockholders per diluted share (4) | $ | 0.23 | | $ | 0.25 | | $ | 0.31 | | $ | 0.23 | | $ | 1.03 |
(1) | Excludes operating results for the Courtyard by Marriott Los Angeles, the Renaissance Harborplace, the Renaissance Los Angeles Airport, the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile due to their sales in October 2019, July 2020, December 2020, October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile due to their sale in March 2022. In addition, excludes the Company's ownership results for the Hilton Times Square due to the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel's mortgage holder, which transferred the Company's leasehold interest in the hotel to the mortgage holder, as well as the elimination of interest expense on the mortgage loan secured by the Renaissance Washington DC due to its repayment in December 2020. |
(2) | Hotel Adjusted EBITDAre reconciliation for the first quarter of 2019 can be found later in this presentation. |
(3) | Pro Forma Adjusted EBITDAre, excluding noncontrolling interest reconciliations for the fourth, third, second and first quarters of 2019, along with the year ended December 31, 2019 can be found later in this presentation. |
(4) | Pro Forma Adjusted FFO attributable to common stockholders and Pro Forma Adjusted FFO attributable to common stockholders per diluted share reconciliations for the fourth, third, second and first quarters of 2019, along with year ended December 31, 2019 can be found later in this presentation. |
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PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 10 | ||||||||
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Supplemental Financial Information |
Pro Forma Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest
Q1 2022 – Q2 2021, Trailing 12 Months
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| Quarter Ended | | Trailing 12 Months | |||||||||||
| March 31, | | December 31, | | September 30, | | June 30, | | Ended | |||||
(In thousands) | 2022 | | 2021 | | 2021 | | 2021 | | March 31, 2022 | |||||
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Net income (loss) | $ | 15,123 | | $ | 138,324 | | $ | (22,124) | | $ | (27,918) | | $ | 103,405 |
Operations held for investment: | | | | | | | | | | | | | | |
Depreciation and amortization | | 31,360 | | | 32,598 | | | 32,585 | | | 32,729 | | | 129,272 |
Interest expense | | 5,081 | | | 7,201 | | | 7,983 | | | 8,065 | | | 28,330 |
Income tax provision, net | | 136 | | | 18 | | | 25 | | | 23 | | | 202 |
(Gain) loss on sale of assets, net | | (22,946) | | | (152,524) | | | 12 | | | — | | | (175,458) |
Impairment losses | | — | | | 1,671 | | | 1,014 | | | — | | | 2,685 |
EBITDAre | | 28,754 | | | 27,288 | | | 19,495 | | | 12,899 | | | 88,436 |
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Operations held for investment: | | | | | | | | | | | | | | |
Amortization of deferred stock compensation | | 3,578 | | | 2,212 | | | 3,165 | | | 4,659 | | | 13,614 |
Amortization of right-of-use assets and obligations | | (346) | | | (340) | | | (335) | | | (338) | | | (1,359) |
Amortization of contract intangibles, net | | (6) | | | — | | | — | | | — | | | (6) |
Finance lease obligation interest - cash ground rent | | (117) | | | (351) | | | (351) | | | (351) | | | (1,170) |
Property-level severance | | — | | | (284) | | | — | | | — | | | (284) |
Property-level severance related to sold hotels | | — | | | — | | | 4,562 | | | — | | | 4,562 |
Loss (gain) on extinguishment of debt, net | | 213 | | | 428 | | | (61) | | | (88) | | | 492 |
Prior year property tax adjustments, net | | — | | | — | | | 605 | | | (1,162) | | | (557) |
Lawsuit settlement cost | | — | | | 21 | | | 691 | | | — | | | 712 |
CEO transition costs | | — | | | 815 | | | 7,976 | | | — | | | 8,791 |
Hurricane-related (insurance proceeds) net of losses | | (2,893) | | | 2,612 | | | 1,621 | | | — | | | 1,340 |
Noncontrolling interest: | | | | | | | | | | | | | | |
(Income) loss from consolidated joint venture attributable to noncontrolling interest | | (1,134) | | | (335) | | | (933) | | | 596 | | | (1,806) |
Depreciation and amortization | | (790) | | | (791) | | | (791) | | | (806) | | | (3,178) |
Interest expense | | (168) | | | (160) | | | (181) | | | (159) | | | (668) |
Amortization of right-of-use asset and obligation | | 72 | | | 73 | | | 72 | | | 73 | | | 290 |
Lawsuit settlement cost | | — | | | (5) | | | (173) | | | — | | | (178) |
Adjustments to EBITDAre, net | | (1,591) | | | 3,895 | | | 15,867 | | | 2,424 | | | 20,595 |
| | | | | | | | | | | | | | |
Adjusted EBITDAre, excluding noncontrolling interest | $ | 27,163 | | $ | 31,183 | | $ | 35,362 | | $ | 15,323 | | $ | 109,031 |
Sold hotel Adjusted EBITDAre (1) | | 2,172 | | | (1,434) | | | (4,742) | | | 2,391 | | | (1,613) |
| | | | | | | | | | | | | | |
Pro Forma Adjusted EBITDAre, excluding noncontrolling interest | $ | 29,335 | | $ | 29,749 | | $ | 30,620 | | $ | 17,714 | | $ | 107,418 |
*Footnotes on page 13
| | |||||||||
PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 11 | ||||||||
| | |
Supplemental Financial Information |
Pro Forma Reconciliation of Net Income (Loss) to FFO and Adjusted FFO Attributable to Common Stockholders
Q1 2022 - Q2 2021, Trailing 12 Months
| | | | | | | | | | | | | | |
| Quarter Ended | | Trailing 12 Months | |||||||||||
| March 31, | | December 31, | | September 30, | | June 30, | | Ended | |||||
(In thousands, except per share data) | 2022 | | 2021 | | 2021 | | 2021 | | March 31, 2022 | |||||
| | | | | | | | | | | | | | |
Net income (loss) | $ | 15,123 | | $ | 138,324 | | $ | (22,124) | | $ | (27,918) | | $ | 103,405 |
Preferred stock dividends and redemption charges | | (3,773) | | | (3,349) | | | (6,287) | | | (7,795) | | | (21,204) |
Operations held for investment: | | | | | | | | | | | | | | |
Real estate depreciation and amortization | | 31,027 | | | 31,976 | | | 31,959 | | | 32,104 | | | 127,066 |
(Gain) loss on sale of assets, net | | (22,946) | | | (152,524) | | | 12 | | | — | | | (175,458) |
Impairment losses | | — | | | 1,671 | | | 1,014 | | | — | | | 2,685 |
Noncontrolling interest: | | | | | | | | | | | | | | |
(Income) loss from consolidated joint venture attributable to noncontrolling interest | | (1,134) | | | (335) | | | (933) | | | 596 | | | (1,806) |
Real estate depreciation and amortization | | (790) | | | (791) | | | (791) | | | (806) | | | (3,178) |
FFO attributable to common stockholders | | 17,507 | | | 14,972 | | | 2,850 | | | (3,819) | | | 31,510 |
| | | | | | | | | | | | | | |
Operations held for investment: | | | | | | | | | | | | | | |
Amortization of deferred stock compensation | | 3,578 | | | 2,212 | | | 3,165 | | | 4,659 | | | 13,614 |
Real estate amortization of right-of-use assets and obligations | | (286) | | | 87 | | | 87 | | | 77 | | | (35) |
Amortization of contract intangibles, net | | 60 | | | — | | | — | | | — | | | 60 |
Noncash interest on derivatives, net | | (1,842) | | | (1,211) | | | (616) | | | (709) | | | (4,378) |
Property-level severance | | — | | | (284) | | | — | | | — | | | (284) |
Property-level severance related to sold hotels | | — | | | — | | | 4,562 | | | — | | | 4,562 |
Loss (gain) on extinguishment of debt, net | | 213 | | | 428 | | | (61) | | | (88) | | | 492 |
Prior year property tax adjustments, net | | — | | | — | | | 605 | | | (1,162) | | | (557) |
Lawsuit settlement cost | | — | | | 21 | | | 691 | | | — | | | 712 |
Preferred stock redemption charges | | — | | | — | | | 2,624 | | | 4,016 | | | 6,640 |
CEO transition costs | | — | | | 815 | | | 7,976 | | | — | | | 8,791 |
Hurricane-related (insurance proceeds) net of losses | | (2,893) | | | 2,612 | | | 1,621 | | | — | | | 1,340 |
Noncontrolling interest: | | | | | | | | | | | | | | |
Real estate amortization of right-of-use asset and obligation | | 72 | | | 73 | | | 72 | | | 73 | | | 290 |
Noncash interest on derivatives, net | | 2 | | | 1 | | | (20) | | | — | | | (17) |
Lawsuit settlement cost | | — | | | (5) | | | (173) | | | — | | | (178) |
Adjustments to FFO attributable to common stockholders, net | | (1,096) | | | 4,749 | | | 20,533 | | | 6,866 | | | 31,052 |
| | | | | | | | | | | | | | |
Adjusted FFO attributable to common stockholders | $ | 16,411 | | $ | 19,721 | | $ | 23,383 | | $ | 3,047 | | $ | 62,562 |
Sold hotel Adjusted FFO (1) | | 2,172 | | | (1,024) | | | (4,129) | | | 3,005 | | | 24 |
Equity transactions (2) | | — | | | — | | | 313 | | | 301 | | | 614 |
| | | | | | | | | | | | | | |
Pro Forma Adjusted FFO attributable to common stockholders | $ | 18,583 | | $ | 18,697 | | $ | 19,567 | | $ | 6,353 | | $ | 63,200 |
| | | | | | | | | | | | | | |
Pro Forma Adjusted FFO attributable to common stockholders per diluted share | $ | 0.09 | | $ | 0.09 | | $ | 0.09 | | $ | 0.03 | | $ | 0.29 |
| | | | | | | | | | | | | | |
Basic weighted average shares outstanding | | 217,271 | | | 217,870 | | | 217,709 | | | 215,113 | | | 216,995 |
Shares associated with unvested restricted stock awards | | 305 | | | 445 | | | 296 | | | 352 | | | 349 |
Diluted weighted average shares outstanding | | 217,576 | | | 218,315 | | | 218,005 | | | 215,465 | | | 217,344 |
Equity transactions (2) | | (3,138) | | | (3,879) | | | (3,879) | | | (1,409) | | | (3,081) |
Pro Forma diluted weighted average shares outstanding | | 214,438 | | | 214,436 | | | 214,126 | | | 214,056 | | | 214,263 |
*Footnotes on page 13
| | |||||||||
PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 12 | ||||||||
| | |
Supplemental Financial Information |
Pro Forma Reconciliation of Net Income (Loss) to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest,
FFO and Adjusted FFO Attributable to Common Stockholders
Q1 2022 - Q2 2021, Trailing 12 Months Footnotes
(1) | Sold Hotel Adjusted EBITDAre and Adjusted FFO include operating results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022. |
(2) | Equity Transactions represent the reduction in preferred stock dividends due to the redemptions of the 6.95% Series E and 6.45% Series F Cumulative Redeemable Preferred Stocks in June 2021 and August 2021, respectively, offset by the issuances of the 6.125% Series H and 5.70% Series I Cumulative Redeemable Preferred Stocks in May 2021 and July 2021, respectively. It also includes the issuance of 2,913,682 shares of common stock in the second quarter of 2021 and the repurchase of 3,879,025 shares of common stock in the first quarter of 2022. |
| | |||||||||
PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 13 | ||||||||
| | |
Supplemental Financial Information |
Pro Forma Reconciliation of Net Income (Loss) to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest
Q4 2021 – Q1 2021, FY 2021
| | | | | | | | | | | | | | |
| Quarter Ended | | Year Ended | |||||||||||
| December 31, | | September 30, | | June 30, | | March 31, | | December 31, | |||||
(In thousands) | 2021 | | 2021 | | 2021 | | 2021 | | 2021 | |||||
| | | | | | | | | | | | | | |
Net income (loss) | $ | 138,324 | | $ | (22,124) | | $ | (27,918) | | $ | (55,287) | | $ | 32,995 |
Operations held for investment: | | | | | | | | | | | | | | |
Depreciation and amortization | | 32,598 | | | 32,585 | | | 32,729 | | | 30,770 | | | 128,682 |
Interest expense | | 7,201 | | | 7,983 | | | 8,065 | | | 7,649 | | | 30,898 |
Income tax provision, net | | 18 | | | 25 | | | 23 | | | 43 | | | 109 |
(Gain) loss on sale of assets, net | | (152,524) | | | 12 | | | — | | | 70 | | | (152,442) |
Impairment losses | | 1,671 | | | 1,014 | | | — | | | — | | | 2,685 |
EBITDAre | | 27,288 | | | 19,495 | | | 12,899 | | | (16,755) | | | 42,927 |
| | | | | | | | | | | | | | |
Operations held for investment: | | | | | | | | | | | | | | |
Amortization of deferred stock compensation | | 2,212 | | | 3,165 | | | 4,659 | | | 2,752 | | | 12,788 |
Amortization of right-of-use assets and obligations | | (340) | | | (335) | | | (338) | | | (331) | | | (1,344) |
Finance lease obligation interest - cash ground rent | | (351) | | | (351) | | | (351) | | | (351) | | | (1,404) |
Property-level severance | | (284) | | | — | | | — | | | — | | | (284) |
Property-level severance related to sold hotels | | — | | | 4,562 | | | — | | | — | | | 4,562 |
Loss (gain) on extinguishment of debt, net | | 428 | | | (61) | | | (88) | | | (222) | | | 57 |
Prior year property tax adjustments, net | | — | | | 605 | | | (1,162) | | | (827) | | | (1,384) |
Lawsuit settlement cost | | 21 | | | 691 | | | — | | | — | | | 712 |
CEO transition costs | | 815 | | | 7,976 | | | — | | | — | | | 8,791 |
Hurricane-related losses | | 2,612 | | | 1,621 | | | — | | | — | | | 4,233 |
Noncontrolling interest: | | | | | | | | | | | | | | |
(Income) loss from consolidated joint venture attributable to noncontrolling interest | | (335) | | | (933) | | | 596 | | | 1,975 | | | 1,303 |
Depreciation and amortization | | (791) | | | (791) | | | (806) | | | (810) | | | (3,198) |
Interest expense | | (160) | | | (181) | | | (159) | | | (161) | | | (661) |
Amortization of right-of-use asset and obligation | | 73 | | | 72 | | | 73 | | | 72 | | | 290 |
Lawsuit settlement cost | | (5) | | | (173) | | | — | | | — | | | (178) |
Adjustments to EBITDAre, net | | 3,895 | | | 15,867 | | | 2,424 | | | 2,097 | | | 24,283 |
| | | | | | | | | | | | | | |
Adjusted EBITDAre, excluding noncontrolling interest | $ | 31,183 | | $ | 35,362 | | $ | 15,323 | | $ | (14,658) | | $ | 67,210 |
Sold hotel Adjusted EBITDAre (1) | | (1,434) | | | (4,742) | | | 2,391 | | | 5,751 | | | 1,966 |
| | | | | | | | | | | | | | |
Pro Forma Adjusted EBITDAre, excluding noncontrolling interest | $ | 29,749 | | $ | 30,620 | | $ | 17,714 | | $ | (8,907) | | $ | 69,176 |
*Footnotes on page 16
| ||||||||
PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 14 | ||||||
| | |
Supplemental Financial Information |
Pro Forma Reconciliation of Net Income (Loss) to FFO and Adjusted FFO Attributable to Common Stockholders
Q4 2021 – Q1 2021, FY 2021
| | | | | | | | | | | | | | |
| Quarter Ended | | Year Ended | |||||||||||
| December 31, | | September 30, | | June 30, | | March 31, | | December 31, | |||||
(In thousands, except per share data) | 2021 | | 2021 | | 2021 | | 2021 | | 2021 | |||||
| | | | | | | | | | | | | | |
Net income (loss) | $ | 138,324 | | $ | (22,124) | | $ | (27,918) | | $ | (55,287) | | $ | 32,995 |
Preferred stock dividends and redemption charges | | (3,349) | | | (6,287) | | | (7,795) | | | (3,207) | | | (20,638) |
Operations held for investment: | | | | | | | | | | | | | | |
Real estate depreciation and amortization | | 31,976 | | | 31,959 | | | 32,104 | | | 30,143 | | | 126,182 |
(Gain) loss on sale of assets, net | | (152,524) | | | 12 | | | — | | | 70 | | | (152,442) |
Impairment losses | | 1,671 | | | 1,014 | | | — | | | — | | | 2,685 |
Noncontrolling interest: | | | | | | | | | | | | | | |
(Income) loss from consolidated joint venture attributable to noncontrolling interest | | (335) | | | (933) | | | 596 | | | 1,975 | | | 1,303 |
Real estate depreciation and amortization | | (791) | | | (791) | | | (806) | | | (810) | | | (3,198) |
FFO attributable to common stockholders | | 14,972 | | | 2,850 | | | (3,819) | | | (27,116) | | | (13,113) |
| | | | | | | | | | | | | | |
Operations held for investment: | | | | | | | | | | | | | | |
Amortization of deferred stock compensation | | 2,212 | | | 3,165 | | | 4,659 | | | 2,752 | | | 12,788 |
Real estate amortization of right-of-use assets and obligations | | 87 | | | 87 | | | 77 | | | 85 | | | 336 |
Noncash interest on derivatives, net | | (1,211) | | | (616) | | | (709) | | | (869) | | | (3,405) |
Property-level severance | | (284) | | | — | | | — | | | — | | | (284) |
Property-level severance related to sold hotels | | — | | | 4,562 | | | — | | | — | | | 4,562 |
Loss (gain) on extinguishment of debt, net | | 428 | | | (61) | | | (88) | | | (222) | | | 57 |
Prior year property tax adjustments, net | | — | | | 605 | | | (1,162) | | | (827) | | | (1,384) |
Lawsuit settlement cost | | 21 | | | 691 | | | — | | | — | | | 712 |
Preferred stock redemption charges | | — | | | 2,624 | | | 4,016 | | | — | | | 6,640 |
CEO transition costs | | 815 | | | 7,976 | | | — | | | — | | | 8,791 |
Hurricane-related losses | | 2,612 | | | 1,621 | | | — | | | — | | | 4,233 |
Noncontrolling interest: | | | | | | | | | | | | | | |
Real estate amortization of right-of-use asset and obligation | | 73 | | | 72 | | | 73 | | | 72 | | | 290 |
Noncash interest on derivatives, net | | 1 | | | (20) | | | — | | | — | | | (19) |
Lawsuit settlement cost | | (5) | | | (173) | | | — | | | — | | | (178) |
Adjustments to FFO attributable to common stockholders, net | | 4,749 | | | 20,533 | | | 6,866 | | | 991 | | | 33,139 |
| | | | | | | | | | | | | | |
Adjusted FFO attributable to common stockholders | $ | 19,721 | | $ | 23,383 | | $ | 3,047 | | $ | (26,125) | | $ | 20,026 |
Sold hotel Adjusted FFO (1) | | (1,024) | | | (4,129) | | | 3,005 | | | 6,356 | | | 4,208 |
Equity transactions (2) | | — | | | 313 | | | 301 | | | 21 | | | 635 |
| | | | | | | | | | | | | | |
Pro Forma Adjusted FFO attributable to common stockholders | $ | 18,697 | | $ | 19,567 | | $ | 6,353 | | $ | (19,748) | | $ | 24,869 |
| | | | | | | | | | | | | | |
Pro Forma Adjusted FFO attributable to common stockholders per diluted share | $ | 0.09 | | $ | 0.09 | | $ | 0.03 | | $ | (0.09) | | $ | 0.12 |
| | | | | | | | | | | | | | |
Basic weighted average shares outstanding | | 217,870 | | | 217,709 | | | 215,113 | | | 214,438 | | | 216,296 |
Shares associated with unvested restricted stock awards | | 445 | | | 296 | | | 352 | | | 210 | | | 326 |
Diluted weighted average shares outstanding | | 218,315 | | | 218,005 | | | 215,465 | | | 214,648 | | | 216,622 |
Equity transactions (2) | | (3,879) | | | (3,879) | | | (1,409) | | | (965) | | | (2,545) |
Pro Forma diluted weighted average shares outstanding | | 214,436 | | | 214,126 | | | 214,056 | | | 213,683 | | | 214,077 |
*Footnotes on page 16
| |||||||||
PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 15 | |||||||
| | |
Supplemental Financial Information |
Pro Forma Reconciliation of Net Income (Loss) to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest,
FFO and Adjusted FFO Attributable to Common Stockholders
Q4 2021 – Q1 2021, FY 2021 Footnotes
(1) | Sold hotel Adjusted EBITDAre and Adjusted FFO include operating results for the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022. |
(2) | Equity Transactions represent the reduction in preferred stock dividends due to the redemptions of the 6.95% Series E and 6.45% Series F Cumulative Redeemable Preferred Stocks in June 2021 and August 2021, respectively, offset by the issuances of the 6.125% Series H and 5.70% Series I Cumulative Redeemable Preferred Stocks in May 2021 and July 2021, respectively. It also includes the issuance of 2,913,682 shares of common stock in the second quarter of 2021 and the repurchase of 3,879,025 shares of common stock in the first quarter of 2022. |
| ||||||||
PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 16 | ||||||
| | |
Supplemental Financial Information |
Pro Forma Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest
Q4 2019 – Q1 2019, FY 2019
| | | | | | | | | | | | | | |
| Quarter Ended | | Year Ended | |||||||||||
| December 31, | | September 30, | | June 30, | | March 31, | | December 31, | |||||
(In thousands) | 2019 | | 2019 | | 2019 | | 2019 | | 2019 | |||||
| | | | | | | | | | | | | | |
Net income | $ | 45,414 | | $ | 33,545 | | $ | 45,918 | | $ | 17,916 | | $ | 142,793 |
Operations held for investment: | | | | | | | | | | | | | | |
Depreciation and amortization | | 37,264 | | | 37,573 | | | 36,524 | | | 36,387 | | | 147,748 |
Interest expense | | 10,822 | | | 13,259 | | | 15,816 | | | 14,326 | | | 54,223 |
Income tax provision (benefit), net | | 1,034 | | | (749) | | | 2,676 | | | (3,112) | | | (151) |
Gain on sale of assets | | (42,935) | | | — | | | — | | | — | | | (42,935) |
Impairment loss | | 24,713 | | | — | | | — | | | — | | | 24,713 |
EBITDAre | | 76,312 | | | 83,628 | | | 100,934 | | | 65,517 | | | 326,391 |
| | | | | | | | | | | | | | |
Operations held for investment: | | | | | | | | | | | | | | |
Amortization of deferred stock compensation | | 2,145 | | | 2,146 | | | 2,900 | | | 2,122 | | | 9,313 |
Amortization of right-of-use assets and obligations | | (259) | | | (253) | | | (251) | | | (19) | | | (782) |
Finance lease obligation interest - cash ground rent | | (407) | | | (589) | | | (590) | | | (589) | | | (2,175) |
Prior year property tax adjustments, net | | (121) | | | (9) | | | 109 | | | 189 | | | 168 |
Prior owner contingency funding | | — | | | — | | | (900) | | | — | | | (900) |
Noncontrolling interest: | | | | | | | | | | | | | | |
Income from consolidated joint venture attributable to noncontrolling interest | | (998) | | | (2,508) | | | (1,955) | | | (1,599) | | | (7,060) |
Depreciation and amortization | | (803) | | | (793) | | | (640) | | | (639) | | | (2,875) |
Interest expense | | (476) | | | (532) | | | (558) | | | (560) | | | (2,126) |
Amortization of right-of-use asset and obligation | | 73 | | | 72 | | | 73 | | | 72 | | | 290 |
Adjustments to EBITDAre, net | | (846) | | | (2,466) | | | (1,812) | | | (1,023) | | | (6,147) |
| | | | | | | | | | | | | | |
Adjusted EBITDAre, excluding noncontrolling interest | $ | 75,466 | | $ | 81,162 | | $ | 99,122 | | $ | 64,494 | | $ | 320,244 |
Sold/Disposed hotel Adjusted EBITDAre (1) | | (15,066) | | | (17,992) | | | (21,581) | | | (3,428) | | | (58,067) |
| | | | | | | | | | | | | | |
Pro Forma Adjusted EBITDAre, excluding noncontrolling interest | $ | 60,400 | | $ | 63,170 | | $ | 77,541 | | $ | 61,066 | | $ | 262,177 |
*Footnotes on Page 19
| ||||||||
PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 17 | ||||||
| | |
Supplemental Financial Information |
Pro Forma Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders
Q4 2019 – Q1 2019, FY 2019
| | | | | | | | | | | | | | |
| Quarter Ended | | Year Ended | |||||||||||
| December 31, | | September 30, | | June 30, | | March 31, | | December 31, | |||||
(In thousands, except per share data) | 2019 | | 2019 | | 2019 | | 2019 | | 2019 | |||||
| | | | | | | | | | | | | | |
Net income | $ | 45,414 | | $ | 33,545 | | $ | 45,918 | | $ | 17,916 | | $ | 142,793 |
Preferred stock dividends | | (3,208) | | | (3,208) | | | (3,207) | | | (3,207) | | | (12,830) |
Operations held for investment: | | | | | | | | | | | | | | |
Real estate depreciation and amortization | | 36,639 | | | 36,951 | | | 35,900 | | | 35,770 | | | 145,260 |
Gain on sale of assets | | (42,935) | | | — | | | — | | | — | | | (42,935) |
Impairment loss | | 24,713 | | | — | | | — | | | — | | | 24,713 |
Noncontrolling interest: | | | | | | | | | | | | | | |
Income from consolidated joint venture attributable to noncontrolling interest | | (998) | | | (2,508) | | | (1,955) | | | (1,599) | | | (7,060) |
Real estate depreciation and amortization | | (803) | | | (793) | | | (640) | | | (639) | | | (2,875) |
FFO attributable to common stockholders | | 58,822 | | | 63,987 | | | 76,016 | | | 48,241 | | | 247,066 |
| | | | | | | | | | | | | | |
Operations held for investment: | | | | | | | | | | | | | | |
Amortization of deferred stock compensation | | 2,145 | | | 2,146 | | | 2,900 | | | 2,122 | | | 9,313 |
Real estate amortization of right-of-use assets and obligations | | 147 | | | 146 | | | 146 | | | 151 | | | 590 |
Noncash interest on derivatives and finance lease obligations, net | | (857) | | | 1,155 | | | 3,634 | | | 2,119 | | | 6,051 |
Prior year property tax adjustments, net | | (121) | | | (9) | | | 109 | | | 189 | | | 168 |
Prior owner contingency funding | | — | | | — | | | (900) | | | — | | | (900) |
Noncash income tax provision (benefit), net | | 934 | | | 390 | | | 2,648 | | | (3,284) | | | 688 |
Noncontrolling interest: | | | | | | | | | | | | | | |
Real estate amortization of right-of-use asset and obligation | | 73 | | | 72 | | | 73 | | | 72 | | | 290 |
Adjustments to FFO attributable to common stockholders, net | | 2,321 | | | 3,900 | | | 8,610 | | | 1,369 | | | 16,200 |
| | | | | | | | | | | | | | |
Adjusted FFO attributable to common stockholders | $ | 61,143 | | $ | 67,887 | | $ | 84,626 | | $ | 49,610 | | $ | 263,266 |
Sold/Disposed hotel Adjusted FFO (1) | | (13,225) | | | (16,144) | | | (19,747) | | | (1,608) | | | (50,724) |
Debt and equity transactions (2) | | 1,702 | | | 1,713 | | | 1,723 | | | 1,734 | | | 6,872 |
| | | | | | | | | | | | | | |
Pro Forma Adjusted FFO attributable to common stockholders | $ | 49,620 | | $ | 53,456 | | $ | 66,602 | | $ | 49,736 | | $ | 219,414 |
| | | | | | | | | | | | | | |
Pro Forma Adjusted FFO attributable to common stockholders per diluted share | $ | 0.23 | | $ | 0.25 | | $ | 0.31 | | $ | 0.23 | | $ | 1.03 |
| | | | | | | | | | | | | | |
Basic weighted average shares outstanding | | 223,638 | | | 224,530 | | | 227,389 | | | 227,219 | | | 225,681 |
Shares associated with unvested restricted stock awards | | 448 | | | 253 | | | 145 | | | 260 | | | 276 |
Diluted weighted average shares outstanding | | 224,086 | | | 224,783 | | | 227,534 | | | 227,479 | | | 225,957 |
Debt and equity transactions (2) | | (10,736) | | | (11,628) | | | (14,505) | | | (14,519) | | | (12,833) |
Pro Forma diluted weighted average shares outstanding | | 213,350 | | | 213,155 | | | 213,029 | | | 212,960 | | | 213,124 |
*Footnotes on Page 19
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PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 18 | ||||||
| | |
Supplemental Financial Information |
Pro Forma Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest,
FFO and Adjusted FFO Attributable to Common Stockholders
Q4 2019 – Q1 2019, FY 2019 Footnotes
(1) | Sold/Disposed hotel Adjusted EBITDAre and Adjusted FFO include operating results for the Courtyard by Marriott Los Angeles, the Renaissance Harborplace, the Renaissance Los Angeles Airport, the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in October 2019, July 2020, December 2020, October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022. In addition, includes operating results for the Hilton Times Square due to the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel's mortgage holder, which transferred the Company's leasehold interest in the hotel to the mortgage holder. |
(2) | Debt and Equity Transactions represent the reduction in interest expense on the mortgage loan secured by the Renaissance Washington DC due to its repayment in December 2020, along with the reduction in preferred stock dividends due to the redemptions of the 6.95% Series E and 6.45% Series F Cumulative Redeemable Preferred Stocks in June 2021 and August 2021, respectively, offset by the issuances of the 6.125% Series H and 5.70% Series I Cumulative Redeemable Preferred Stocks in May 2021 and July 2021, respectively. It also includes the reduction of 3,783,936 shares of common stock repurchased in the second, third and fourth quarters of 2019, the 9,770,081 shares repurchased in the first quarter of 2020 and the 3,879,025 shares repurchased in the first quarter of 2022 offset by the issuance of 2,913,682 shares of common stock in the second quarter of 2021. |
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PRO FORMA CORPORATE FINANCIAL INFORMATION | | Page 19 | ||||||
| | |
| |
Supplemental Financial Information |
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CAPITALIZATION | | Page 20 | ||||||
| | |
Supplemental Financial Information |
Comparative Capitalization
Q1 2022 – Q1 2021
| | | | | | | | | | | | | | | | |
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, | | |||||
(In thousands, except per share data) |
| 2022 |
| 2021 |
| 2021 |
| 2021 |
| 2021 | | |||||
| | | | | | | | | | | | | | | | |
Common Share Price & Dividends | | | | | | | | | | | | | | | | |
At the end of the quarter | | $ | 11.78 | | $ | 11.73 | | $ | 11.94 | | $ | 12.42 | | $ | 12.46 | |
High during quarter ended | | $ | 12.07 | | $ | 13.23 | | $ | 12.48 | | $ | 13.55 | | $ | 13.57 | |
Low during quarter ended | | $ | 10.15 | | $ | 10.48 | | $ | 10.68 | | $ | 11.90 | | $ | 10.25 | |
Common dividends per share | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| | | | | | | | | | | | | | | | |
Common Shares & Units | | | | | | | | | | | | | | | | |
Common shares outstanding | | | 215,668 | | | 219,334 | | | 219,334 | | | 219,043 | | | 216,175 | |
Units outstanding | | | — | | | — | | | — | | | — | | | — | |
Total common shares and units outstanding | | | 215,668 | | | 219,334 | | | 219,334 | | | 219,043 | | | 216,175 | |
| | | | | | | | | | | | | | | | |
Capitalization | | | | | | | | | | | | | | | | |
Market value of common equity | | $ | 2,540,568 | | $ | 2,572,785 | | $ | 2,618,845 | | $ | 2,720,515 | | $ | 2,693,542 | |
Liquidation value of preferred equity - Series E | | | — | | | — | | | — | | | — | | | 115,000 | |
Liquidation value of preferred equity - Series F | | | — | | | — | | | — | | | 75,000 | | | 75,000 | |
Liquidation value of preferred equity - Series G | | | 66,250 | | | 66,250 | | | 66,250 | | | 66,250 | | | — | |
Liquidation value of preferred equity - Series H | | | 115,000 | | | 115,000 | | | 115,000 | | | 115,000 | | | — | |
Liquidation value of preferred equity - Series I | | | 100,000 | | | 100,000 | | | 100,000 | | | — | | | — | |
Consolidated debt | | | 575,934 | | | 611,437 | | | 745,484 | | | 746,303 | | | 747,113 | |
Consolidated total capitalization | | | 3,397,752 | | | 3,465,472 | | | 3,645,579 | | | 3,723,068 | | | 3,630,655 | |
| | | | | | | | | | | | | | | | |
Noncontrolling interest in consolidated debt | | | (55,000) | | | (55,000) | | | (55,000) | | | (55,000) | | | (55,000) | |
Pro rata total capitalization | | $ | 3,342,752 | | $ | 3,410,472 | | $ | 3,590,579 | | $ | 3,668,068 | | $ | 3,575,655 | |
| | | | | | | | | | | | | | | | |
Consolidated debt to consolidated total capitalization | | | 17.0 | % | | 17.6 | % | | 20.4 | % | | 20.0 | % | | 20.6 | % |
Pro rata debt to pro rata total capitalization | | | 15.6 | % | | 16.3 | % | | 19.2 | % | | 18.8 | % | | 19.4 | % |
Consolidated debt and preferred equity to consolidated total capitalization | | | 25.2 | % | | 25.8 | % | | 28.2 | % | | 26.9 | % | | 25.8 | % |
Pro rata debt and preferred equity to pro rata total capitalization | | | 24.0 | % | | 24.6 | % | | 27.1 | % | | 25.8 | % | | 24.7 | % |
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CAPITALIZATION | | Page 21 | ||||||
| | |
Supplemental Financial Information |
Consolidated Debt Summary Schedule
| | | | | | | | | | | | |
(In thousands) | | | | Interest Rate / | | Maturity | | | March 31, 2022 | | | Balance At |
Debt |
| Collateral |
| Spread |
| Date (5) |
| | Balance |
| | Maturity |
| | | | | | | | | | | | |
Fixed Rate Debt | | | | | | | | | | | | |
Term Loan Facility (1) | | Unsecured | | 3.94% | | 09/03/2023 | | $ | 19,400 | | $ | 19,400 |
Term Loan Facility (1) | | Unsecured | | 4.20% | | 01/31/2024 | | | 88,900 | | | 88,900 |
Secured Mortgage Debt | | JW Marriott New Orleans | | 4.15% | | 12/11/2024 | | | 77,634 | | | 72,071 |
Series A Senior Notes (2) | | Unsecured | | 5.94% | | 01/10/2026 | | | 65,000 | | | 65,000 |
Series B Senior Notes (2) | | Unsecured | | 6.04% | | 01/10/2028 | | | 105,000 | | | 105,000 |
Total Fixed Rate Debt | | | | | | | | | 355,934 | | | 350,371 |
Variable Rate Debt | | | | | | | | | | | | |
Secured Mortgage Debt | | Hilton San Diego Bayfront | | 1.17% | | 12/09/2023 | | | 220,000 | | | 220,000 |
Credit Facility (1) | | Unsecured | | L + 2.40% | | 04/14/2024 | | | — | | | — |
Total Variable Rate Debt | | | | | | | | | 220,000 | | | 220,000 |
| | | | | | | | | | | | |
TOTAL CONSOLIDATED DEBT | | | | | | | | $ | 575,934 | | $ | 570,371 |
| | | | | | | | | | | | |
Preferred Stock | | | | | | | | | | | | |
Series G cumulative redeemable preferred (3) | | | | Variable | | perpetual | | $ | 66,250 | | | |
Series H cumulative redeemable preferred | | | | 6.125% | | perpetual | | | 115,000 | | | |
Series I cumulative redeemable preferred | | | | 5.70% | | perpetual | | | 100,000 | | | |
Total Preferred Stock | | | | | | | | $ | 281,250 | | | |
| | | | | | | | | | | | |
Debt Statistics | | | | | | | | | | | | |
% Fixed Rate Debt | | | | | | | | | 61.8 | % | | |
% Floating Rate Debt | | | | | | | | | 38.2 | % | | |
Average Interest Rate (4) | | | | | | | | | 3.56 | % | | |
Weighted Average Maturity of Debt (5) | | | | | | | | | 2.8 years | | | |
(1) | As of March 31, 2022, the applicable LIBOR margin was fixed at 240 basis points for the revolving credit facility and 235 basis points for the term loan facilities. Upon the termination of the Covenant Threshold Adjustment Period as described in the Company’s unsecured debt amendments, the applicable margin will return to a variable rate of 140 to 225 basis points for the revolving credit facility and 135 to 220 for the term loan facilities as determined by the Company’s leverage ratios. The interest rates presented reflect the terms of the unsecured debt amendments and the effects of the Company’s interest rate derivative agreements. |
(2) | The 2020 and 2021 amendments to the Company's unsecured debt agreements increased the annual interest rates on the Senior Notes by 1.25% through September 30, 2022. Thereafter, the increased interest rates will step down on a quarterly basis to their original stated rates based on the achievement of certain leverage ratios. The interest rates presented reflect the terms of the unsecured debt amendments as of March 31, 2022. |
(3) | The Series G cumulative redeemable preferred stock has an initial dividend rate equal to the Montage Healdsburg's annual net operating income yield on the Company's investment in the resort. During the first quarter of 2022, this equated to a cash dividend of $0.221475 per share. The annual dividend rate is expected to increase in 2023 to the greater of 3.0% or the rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort. |
(4) | Average Interest Rate is calculated based on rates at March 31, 2022, and includes the effect of the Company's interest rate derivative agreements. |
(5) | Maturity Date assumes the exercise of all available extensions of the revolving credit facility, term loans and the loan secured by the Hilton San Diego Bayfront. By extending these loans, the Company's weighted average maturity of debt increases from 2.3 years to 2.8 years. |
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CAPITALIZATION | | Page 22 | ||||||
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Supplemental Financial Information |
PROPERTY-LEVEL DATA AND OPERATING STATISTICS
| ||||||||
PROPERTY-LEVEL DATA AND OPERATING STATISTICS | | Page 23 | ||||||
| | |
Supplemental Financial Information |
Hotel Information as of May 4, 2022
| | | | | | | | | | | | | | |
Hotel |
| Location |
| Brand |
| Number of |
| % of Total |
| Interest |
| Year Acquired | ||
| | | | | | | | | | | | | | |
1 |
| Hilton San Diego Bayfront (1) (2) | | California | | Hilton | | 1,190 | | 16.09% | | Leasehold | | 2011 |
2 | | Boston Park Plaza | | Massachusetts | | Independent | | 1,060 | | 14.33% | | Fee Simple | | 2013 |
3 | | Hyatt Regency San Francisco | | California | | Hyatt | | 821 | | 11.10% | | Fee Simple | | 2013 |
4 | | Renaissance Washington DC | | Washington DC | | Marriott | | 807 | | 10.91% | | Fee Simple | | 2005 |
5 | | Renaissance Orlando at SeaWorld® | | Florida | | Marriott | | 781 | | 10.56% | | Fee Simple | | 2005 |
6 | | Wailea Beach Resort | | Hawaii | | Marriott | | 547 | | 7.40% | | Fee Simple | | 2014 |
7 | | JW Marriott New Orleans (3) | | Louisiana | | Marriott | | 501 | | 6.77% | | Fee Simple | | 2011 |
8 | | Marriott Boston Long Wharf | | Massachusetts | | Marriott | | 415 | | 5.61% | | Fee Simple | | 2007 |
9 | | Renaissance Long Beach | | California | | Marriott | | 374 | | 5.06% | | Fee Simple | | 2005 |
10 | | The Bidwell Marriott Portland | | Oregon | | Marriott | | 258 | | 3.49% | | Fee Simple | | 2000 |
11 | | Hilton New Orleans St. Charles | | Louisiana | | Hilton | | 252 | | 3.41% | | Fee Simple | | 2013 |
12 | | Oceans Edge Resort & Marina | | Florida | | Independent | | 175 | | 2.37% | | Fee Simple | | 2017 |
13 | | Montage Healdsburg | | California | | Montage | | 130 | | 1.76% | | Fee Simple | | 2021 |
14 | | Four Seasons Resort Napa Valley (4) | | California | | Four Seasons | | 85 | | 1.15% | | Fee Simple | | 2021 |
| | | | | | | | | | | | | | |
| | Total 14 Hotel Portfolio | | | | | | 7,396 | | 100% | | | | |
(1) | The Company owns 75% of the joint venture that owns the Hilton San Diego Bayfront. |
(2) | The ground lease at the Hilton San Diego Bayfront matures in 2071. |
(3) | Hotel is subject to a municipal airspace lease that matures in 2044 and applies only to certain balcony space fronting Canal Street that is not integral to the hotel’s operations. |
(4) | The number of rooms at the Four Seasons Resort Napa Valley excludes four additional rooms provided by owners of the separately owned Four Seasons Private Residences Napa Valley who elected to participate in the residential rental program during the first quarter of 2022. |
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PROPERTY-LEVEL DATA AND OPERATING STATISTICS | | Page 24 | ||||||
| | |
Supplemental Financial Information |
Property-Level Operating Statistics
ADR, Occupancy and RevPAR
Q1 2022/2021/2019
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | ADR | | Occupancy | | | RevPAR | |||||||||||||||||||||||
| | Hotels sorted by number of rooms | | For the Quarter Ended March 31, | | For the Quarter Ended March 31, | | For the Quarter Ended March 31, | ||||||||||||||||||||||||
| | |
| 2022 | |
| 2021 | | | 2019 |
| 2022 vs. 2019 |
| 2022 |
| 2021 | | 2019 |
| 2022 vs. 2019 |
| 2022 |
| 2021 | | | 2019 |
| 2022 vs. 2019 | |||
1 | | Hilton San Diego Bayfront (3) | | $ | 249.03 | | $ | 141.47 | | $ | 257.17 | | (3.2)% | | 58.4% | | 16.1% | | 75.4% | | (22.5)% | | $ | 145.43 | | $ | 22.78 | | $ | 193.91 | | (25.0)% |
2 | | Boston Park Plaza | | $ | 160.35 | | $ | 140.65 | | $ | 155.36 | | 3.2% | | 48.3% | | 15.3% | | 80.8% | | (40.2)% | | $ | 77.45 | | $ | 21.52 | | $ | 125.53 | | (38.3)% |
3 | | Hyatt Regency San Francisco | | $ | 221.87 | | $ | 193.28 | | $ | 353.37 | | (37.2)% | | 44.0% | | 8.9% | | 84.2% | | (47.7)% | | $ | 97.62 | | $ | 17.20 | | $ | 297.54 | | (67.2)% |
4 | | Renaissance Washington DC | | $ | 230.36 | | $ | 142.23 | | $ | 242.86 | | (5.1)% | | 38.7% | | 53.2% | | 73.5% | | (47.3)% | | $ | 89.15 | | $ | 75.67 | | $ | 178.50 | | (50.1)% |
5 | | Renaissance Orlando at SeaWorld® | | $ | 211.24 | | $ | 124.87 | | $ | 197.30 | | 7.1% | | 60.5% | | 19.3% | | 83.8% | | (27.8)% | | $ | 127.80 | | $ | 24.10 | | $ | 165.34 | | (22.7)% |
6 | | Wailea Beach Resort | | $ | 663.49 | | $ | 531.17 | | $ | 496.33 | | 33.7% | | 79.3% | | 34.7% | | 92.8% | | (14.5)% | | $ | 526.15 | | $ | 184.32 | | $ | 460.59 | | 14.2% |
7 | | JW Marriott New Orleans | | $ | 239.61 | | $ | 145.40 | | $ | 226.85 | | 5.6% | | 49.9% | | 23.5% | | 86.4% | | (42.2)% | | $ | 119.57 | | $ | 34.17 | | $ | 196.00 | | (39.0)% |
8 | | Marriott Boston Long Wharf | | $ | 271.14 | | $ | 231.39 | | $ | 231.95 | | 16.9% | | 38.6% | | 9.9% | | 78.5% | | (50.8)% | | $ | 104.66 | | $ | 22.91 | | $ | 182.08 | | (42.5)% |
9 | | Renaissance Long Beach | | $ | 201.92 | | $ | 134.05 | | $ | 192.79 | | 4.7% | | 70.4% | | 27.5% | | 82.7% | | (14.9)% | | $ | 142.15 | | $ | 36.86 | | $ | 159.44 | | (10.8)% |
10 | | The Bidwell Marriott Portland | | $ | 146.26 | | $ | 139.65 | | $ | 162.13 | | (9.8)% | | 37.1% | | 9.9% | | 79.0% | | (53.0)% | | $ | 54.26 | | $ | 13.83 | | $ | 128.08 | | (57.6)% |
11 |
| Hilton New Orleans St. Charles | | $ | 187.72 | | $ | 107.89 | | $ | 189.41 | | (0.9)% | | 42.8% | | 23.6% | | 79.6% | | (46.2)% | | $ | 80.34 | | $ | 25.46 | | $ | 150.77 | | (46.7)% |
12 | | Oceans Edge Resort & Marina | | $ | 546.87 | | $ | 380.69 | | $ | 313.20 | | 74.6% | | 85.9% | | 77.2% | | 95.0% | | (9.6)% | | $ | 469.76 | | $ | 293.89 | | $ | 297.54 | | 57.9% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 12 Hotel Portfolio (1) | | $ | 279.95 | | $ | 206.44 | | $ | 255.01 | | 9.8% | | 53.1% | | 23.4% | | 81.3% | | (34.7)% | | $ | 148.65 | | $ | 48.31 | | $ | 207.32 | | (28.3)% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
13 | | Montage Healdsburg | | $ | 897.96 | | $ | 875.29 | | | N/A | | N/A | | 49.5% | | 20.4% | | N/A | | N/A | | $ | 444.49 | | $ | 178.56 | | | N/A | | N/A |
14 | | Four Seasons Resort Napa Valley | | $ | 1,440.70 | | | N/A | | | N/A | | N/A | | 44.3% | | N/A | | N/A | | N/A | | $ | 638.23 | | | N/A | | | N/A | | N/A |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 14 Hotel Portfolio (2) | | $ | 301.44 | | | | | | | | | | 53.0% | | | | | | | | $ | 159.76 | | | | | | | | |
*Footnotes on page 27
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PROPERTY-LEVEL DATA AND OPERATING STATISTICS | | Page 25 | ||||||
| | |
Supplemental Financial Information |
Property-Level Operating Statistics
Total RevPAR (TRevPAR)
Q1 2022/2021/2019
| | | | | | | | | | | | | |
| | Hotels sorted by number of rooms | | For the Quarter Ended March 31, | |||||||||
| | |
| 2022 | | 2021 | |
| 2019 |
| 2022 vs. 2019 | ||
1 | | Hilton San Diego Bayfront (3) | | $ | 260.54 | | $ | 36.92 | | $ | 342.52 | | (23.9)% |
2 | | Boston Park Plaza | | $ | 108.79 | | $ | 28.47 | | $ | 187.22 | | (41.9)% |
3 | | Hyatt Regency San Francisco | | $ | 148.33 | | $ | 22.31 | | $ | 431.11 | | (65.6)% |
4 | | Renaissance Washington DC | | $ | 134.53 | | $ | 80.46 | | $ | 287.71 | | (53.2)% |
5 | | Renaissance Orlando at SeaWorld® | | $ | 277.95 | | $ | 51.08 | | $ | 365.82 | | (24.0)% |
6 | | Wailea Beach Resort | | $ | 755.26 | | $ | 249.00 | | $ | 643.28 | | 17.4% |
7 | | JW Marriott New Orleans | | $ | 153.99 | | $ | 42.86 | | $ | 260.19 | | (40.8)% |
8 | | Marriott Boston Long Wharf | | $ | 156.76 | | $ | 32.94 | | $ | 270.27 | | (42.0)% |
9 | | Renaissance Long Beach | | $ | 185.61 | | $ | 47.53 | | $ | 225.53 | | (17.7)% |
10 | | The Bidwell Marriott Portland | | $ | 76.79 | | $ | 18.19 | | $ | 148.89 | | (48.4)% |
11 |
| Hilton New Orleans St. Charles | | $ | 137.51 | | $ | 32.89 | | $ | 170.95 | | (19.6)% |
12 | | Oceans Edge Resort & Marina | | $ | 636.70 | | $ | 422.14 | | $ | 427.43 | | 49.0% |
| | | | | | | | | | | | | |
| | 12 Hotel Portfolio (1) | | $ | 231.64 | | $ | 65.90 | | $ | 322.05 | | (28.1)% |
| | | | | | | | | | | | | |
13 | | Montage Healdsburg | | $ | 785.67 | | $ | 307.47 | | | N/A | | N/A |
14 | | Four Seasons Resort Napa Valley | | $ | 1,098.81 | | | N/A | | | N/A | | N/A |
| | | | | | | | | | | | | |
| | 14 Hotel Portfolio (2) | | $ | 251.50 | | | | | | | | |
*Footnotes on page 27
| ||||||||
PROPERTY-LEVEL DATA AND OPERATING STATISTICS | | Page 26 | ||||||
| | |
Supplemental Financial Information |
Property-Level Operating Statistics
(1) | 12 Hotel Portfolio includes the same hotels owned during first quarters of 2022, 2021 and 2019. |
(2) | 14 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2022. The Company acquired the Montage Healdsburg and the Four Seasons Resort Napa Valley in April 2021 and December 2021, respectively. The newly-developed hotels opened on limited bases in December 2020 and October 2021, respectively. Operating statistics for the first quarter of 2021 include prior ownership results obtained by the Company from the prior owner of the Montage Healdsburg during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition. |
(3) | Operating statistics for the first quarter of 2019 are impacted by a room renovation at the Hilton San Diego Bayfront. |
| ||||||||
PROPERTY-LEVEL DATA AND OPERATING STATISTICS | | Page 27 | ||||||
| | |
Supplemental Financial Information |
PROPERTY-LEVEL ADJUSTED EBITDAre &
ADJUSTED EBITDAre MARGINS
| ||||||||
PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | | Page 28 | ||||||
| | |
Supplemental Financial Information |
Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins
Q1 2022/2021
| | | | | | | | | | | | | | | | | | | | |
| | Hotels sorted by number of rooms | | For the Quarter Ended March 31, | ||||||||||||||||
| | | | 2022 | | 2021 | | | ||||||||||||
| | (In thousands) | | | | | | Hotel Adjusted | | | | | | Hotel Adjusted | | Hotel Adjusted | ||||
| | | | Total | | Hotel Adjusted | | EBITDAre | | Total | | Hotel Adjusted | | EBITDAre | | EBITDAre | ||||
| | |
| Revenues |
| EBITDAre |
| Margins |
| Revenues |
| EBITDAre |
| Margins |
| Margin Change | ||||
1 | | Hilton San Diego Bayfront | | $ | 27,904 | | $ | 8,079 | | 29.0% | | $ | 3,955 | | $ | (4,304) | | (108.8)% | | 126.7% |
2 | | Boston Park Plaza | | | 10,378 | | | (2,220) | | (21.4)% | | | 2,716 | | | (3,817) | | (140.5)% | | 84.8% |
3 | | Hyatt Regency San Francisco | | | 10,960 | | | (1,175) | | (10.7)% | | | 1,649 | | | (4,098) | | (248.5)% | | 95.7% |
4 | | Renaissance Washington DC | | | 9,771 | | | 120 | | 1.2% | | | 5,843 | | | 1,614 | | 27.6% | | (95.7)% |
5 | | Renaissance Orlando at SeaWorld® | | | 19,537 | | | 6,803 | | 34.8% | | | 3,590 | | | (1,284) | | (35.8)% | | 197.2% |
6 | | Wailea Beach Resort | | | 37,183 | | | 16,005 | | 43.0% | | | 12,259 | | | 3,601 | | 29.4% | | 46.3% |
7 | | JW Marriott New Orleans | | | 6,943 | | | 2,248 | | 32.4% | | | 1,933 | | | (542) | | (28.0)% | | 215.7% |
8 | | Marriott Boston Long Wharf | | | 5,855 | | | (608) | | (10.4)% | | | 1,230 | | | (2,066) | | (168.0)% | | 93.8% |
9 | | Renaissance Long Beach | | | 6,248 | | | 1,870 | | 29.9% | | | 1,600 | | | (368) | | (23.0)% | | 230.0% |
10 | | The Bidwell Marriott Portland | | | 1,783 | | | (10) | | (0.6)% | | | 422 | | | (755) | | (178.9)% | | 99.7% |
11 |
| Hilton New Orleans St. Charles | | | 3,119 | | | 1,415 | | 45.4% | | | 746 | | | (307) | | (41.2)% | | 210.2% |
12 | | Oceans Edge Resort & Marina | | | 10,028 | | | 4,926 | | 49.1% | | | 6,649 | | | 2,945 | | 44.3% | | 10.8% |
| | | | | | | | | | | | | | | | | | | | |
| | 12 Hotel Portfolio (1) | | | 149,709 | | | 37,453 | | 25.0% | | | 42,592 | | | (9,381) | | (22.0)% | | 213.6% |
| | | | | | | | | | | | | | | | | | | | |
13 | | Montage Healdsburg | | | 9,192 | | | (822) | | (8.9)% | | | — | | | — | | — | | — |
14 | | Four Seasons Resort Napa Valley | | | 8,542 | | | 308 | | 3.6% | | | — | | | — | | — | | — |
| | | | | | | | | | | | | | | | | | | | |
| | 14 Hotel Portfolio (2) | | | 167,443 | | | 36,939 | | 22.1% | | | 42,592 | | | (9,381) | | (22.0)% | | 200.5% |
| | | | | | | | | | | | | | | | | | | | |
| | Add: Sold Hotels (3) | | | 3,234 | | | (2,172) | | (67.2)% | | | 3,978 | | | (5,751) | | (144.6)% | | 53.5% |
| | | | | | | | | | | | | | | | | | | | |
| | Actual Portfolio (4) | | $ | 170,677 | | $ | 34,767 | | 20.4% | | $ | 46,570 | | $ | (15,132) | | (32.5)% | | 162.8% |
*Footnotes on page 31
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PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | | Page 29 | ||||||
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Supplemental Financial Information |
Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins
Q1 2022/2019
| | | | | | | | | | | | | | | | | | | | |
| | Hotels sorted by number of rooms | | For the Quarter Ended March 31, | ||||||||||||||||
| | | | 2022 | | 2019 | | | ||||||||||||
| | (In thousands) | | | | | | Hotel Adjusted | | | | | | Hotel Adjusted | | Hotel Adjusted | ||||
| | | | Total | | Hotel Adjusted | | EBITDAre | | Total | | Hotel Adjusted | | EBITDAre | | EBITDAre | ||||
| | |
| Revenues |
| EBITDAre |
| Margins |
| Revenues |
| EBITDAre |
| Margins |
| Margin Change | ||||
1 | | Hilton San Diego Bayfront (5) | | $ | 27,904 | | $ | 8,079 | | 29.0% | | $ | 36,686 | | $ | 10,911 | | 29.7% | | (2.4)% |
2 | | Boston Park Plaza | | | 10,378 | | | (2,220) | | (21.4)% | | | 17,860 | | | 1,269 | | 7.1% | | (401.4)% |
3 | | Hyatt Regency San Francisco | | | 10,960 | | | (1,175) | | (10.7)% | | | 31,197 | | | 8,854 | | 28.4% | | (137.7)% |
4 | | Renaissance Washington DC | | | 9,771 | | | 120 | | 1.2% | | | 20,896 | | | 5,587 | | 26.7% | | (95.5)% |
5 | | Renaissance Orlando at SeaWorld® | | | 19,537 | | | 6,803 | | 34.8% | | | 25,713 | | | 10,224 | | 39.8% | | (12.6)% |
6 | | Wailea Beach Resort | | | 37,183 | | | 16,005 | | 43.0% | | | 31,669 | | | 13,219 | | 41.7% | | 3.1% |
7 | | JW Marriott New Orleans | | | 6,943 | | | 2,248 | | 32.4% | | | 11,732 | | | 5,423 | | 46.2% | | (29.9)% |
8 | | Marriott Boston Long Wharf | | | 5,855 | | | (608) | | (10.4)% | | | 10,094 | | | 1,589 | | 15.7% | | (166.2)% |
9 | | Renaissance Long Beach | | | 6,248 | | | 1,870 | | 29.9% | | | 7,591 | | | 2,415 | | 31.8% | | (6.0)% |
10 | | The Bidwell Marriott Portland | | | 1,783 | | | (10) | | (0.6)% | | | 3,337 | | | 1,040 | | 31.2% | | (101.9)% |
11 |
| Hilton New Orleans St. Charles | | | 3,119 | | | 1,415 | | 45.4% | | | 3,877 | | | 1,166 | | 30.1% | | 50.8% |
12 | | Oceans Edge Resort & Marina | | | 10,028 | | | 4,926 | | 49.1% | | | 6,732 | | | 2,743 | | 40.7% | | 20.6% |
| | | | | | | | | | | | | | | | | | | | |
| | 12 Hotel Portfolio (1) | | | 149,709 | | | 37,453 | | 25.0% | | | 207,384 | | | 64,440 | | 31.1% | | (19.6)% |
| | | | | | | | | | | | | | | | | | | | |
13 | | Montage Healdsburg | | | 9,192 | | | (822) | | (8.9)% | | | — | | | — | | — | | — |
14 | | Four Seasons Resort Napa Valley | | | 8,542 | | | 308 | | 3.6% | | | — | | | — | | — | | — |
| | | | | | | | | | | | | | | | | | | | |
| | 14 Hotel Portfolio (2) | | | 167,443 | | | 36,939 | | 22.1% | | | 207,384 | | | 64,440 | | 31.1% | | (28.9)% |
| | | | | | | | | | | | | | | | | | | | |
| | Add: Sold/Disposed Hotels (3) | | | 3,234 | | | (2,172) | | (67.2)% | | | 50,273 | | | 3,428 | | 6.8% | | (1,088.2)% |
| | | | | | | | | | | | | | | | | | | | |
| | Actual Portfolio (4) | | $ | 170,677 | | $ | 34,767 | | 20.4% | | $ | 257,657 | | $ | 67,868 | | 26.3% | | (22.4)% |
*Footnotes on page 31
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PROPERTY-LEVEL ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | | Page 30 | ||||||
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Supplemental Financial Information |
Property-Level Adjusted EBITDAre and Adjusted EBITDAre Margins
Q1 2022/2021/2019 Footnotes
(1) | 12 Hotel Portfolio includes the same hotels owned during the first quarters of 2022, 2021 and 2019. |
(2) | 14 Hotel Portfolio includes all hotels owned by the Company as of March 31, 2022. The Company acquired the Montage Healdsburg and the Four Seasons Resort Napa Valley in April 2021 and December 2021, respectively. The newly-developed hotels opened on limited bases in December 2020 and October 2021, respectively, therefore there is no comparative prior year information. |
(3) | Sold Hotels for the first quarter of 2022 includes results for the Hyatt Centric Chicago Magnicent Mile, sold in February 2022, and the Embassy Suites Chicago and Hilton Garden Inn Chicago Downtown/Magnificent Mile, sold in March 2022. Sold Hotels for the first quarter of 2021 also includes results for the Embassy Suites La Jolla and the Renaissance Westchester, sold in December 2021 and October 2021, respectively. Sold/Disposed Hotels for the first quarter of 2019 also includes results for the the Renaissance Los Angeles Airport sold in December 2020, the Hilton Times Square, assigned to its mortgage holder in December 2020, the Renaissance Harborplace sold in July 2020, and the Courtyard by Marriott Los Angeles sold in October 2019. |
(4) | Actual Portfolio includes results for 17 hotels, 17 hotels and 21 hotels owned by the Company during the quarters ended March 31, 2022, 2021 and 2019, respectively. |
(5) | Hotel Adjusted EBITDAre for the first quarter of 2019 is impacted by a room renovation at the Hilton San Diego Bayfront. |
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