Exhibit 99.1
|
| | |
| | 545 E. JOHN CARPENTER FREEWAY, SUITE 1300 IRVING, TX 75062 PH: 972-444-4900 WWW.FELCOR.COM NYSE: FCH |
For Immediate Release:
FELCOR REPORTS FOURTH QUARTER 2015 EARNINGS
• Industry-leading full-year RevPAR growth of 8.1%
• Implemented stock repurchase program
• Increased common stock dividend by 50%
• Began sale process for five hotels
IRVING, Texas, February 25, 2016 - FelCor Lodging Trust Incorporated (NYSE: FCH) today reported results for the fourth quarter ended December 31, 2015.
Fourth Quarter Highlights
| |
| • | Same-store RevPAR increased 5.4% over the same period in 2014. |
| |
| • | Adjusted EBITDA was $50.0 million, and Same-store Adjusted EBITDA increased by $5.7 million, or 12.8%, to $50.4 million compared to the same period in 2014. |
| |
| • | Hotel EBITDA increased 10.5% to $55.1 million over the same period in 2014. |
| |
| • | Increased quarterly common dividend by 50% to $0.06 per share. |
| |
| • | Repurchased 4.3 million shares of common stock for $29 million from December 2015 to date. |
| |
| • | Began marketing five hotels, and entered into a letter of intent for Morgans and Royalton. |
| |
| • | Adjusted FFO per share was $0.15. |
| |
| • | Net loss per share was $0.07. |
“We are pleased to have delivered industry-leading RevPAR growth in 2015 and for the last eight years. We have created a high-quality and diverse portfolio that we fully expect will continue to outperform the industry,” said Richard A. Smith, President and Chief Executive Officer of FelCor.
Mr. Smith added, “We are committed to maximizing long-term stockholder value, which includes eliminating the disparity between asset value and our stock price. As such, we recently began marketing five hotels for sale. The sale of these hotels will reduce leverage significantly, mitigate operational risk and provide substantial capacity to repurchase our stock at a significant discount to intrinsic value. We are making excellent progress executing our strategy, which will further benefit our long-term stockholders.”
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 2
Fourth Quarter Hotel Results
|
| | | | | | | | | | |
| | Fourth Quarter |
| | 2015 | | 2014 | | Change |
| Same-store hotels (39) | | | | | |
| RevPAR | $ | 133.36 |
| | $ | 126.57 |
| | 5.4 | % |
| Total hotel revenue, in millions | $ | 198.7 |
| | $ | 185.0 |
| | 7.4 | % |
| Hotel EBITDA, in millions | $ | 55.1 |
| | $ | 49.9 |
| | 10.5 | % |
| Hotel EBITDA margin | 27.7 | % | | 26.9 | % | | 77 bps |
| | | | | | |
RevPAR for our 39 same-store hotels increased 5.4% (to $133.36) from the same period in 2014. The change reflects a 2.0% increase in ADR (to $179.39) and a 3.3% increase in occupancy (to 74.3%). Hotel EBITDA for our 39 same-store hotels increased by 10.5% to $55.1 million and Hotel EBITDA margin was 27.7% during the quarter, a 77 basis point increase.
RevPAR for the eight Wyndham hotels (which we converted from Holiday Inn on March 1, 2013) increased 9.1% (to $119.23) from the same period in 2014. Wyndham Worldwide Corporation has guaranteed the minimum annual NOI for these hotels through 2023.
See pages 13-14 and 20-22 for more detailed hotel portfolio operating data.
Fourth Quarter Operating Results
|
| | | | | | | | | | | |
| | Fourth Quarter |
| $ in millions, except for per share information | 2015 | | 2014 | | Change |
| Same-store Adjusted EBITDA | $ | 50.4 |
| | $ | 44.6 |
| | 12.8 | % |
| Adjusted EBITDA | $ | 50.0 |
| | $ | 49.4 |
| | 1.2 | % |
| Adjusted FFO per share | $ | 0.15 |
| | $ | 0.15 |
| | $ | — |
|
| Net income (loss) per share | $ | (0.07 | ) | | $ | — |
| | $ | (0.07 | ) |
Same-store Adjusted EBITDA increased 12.8% to $50.4 million from the same period in 2014. Adjusted EBITDA was $50.0 million.
Adjusted FFO was $21.8 million ($0.15 per share), compared to $18.5 million ($0.15 per share) for the same period in 2014. Net loss attributable to common stockholders was $10.4 million ($0.07 per share) in 2015, compared to net income of $567,000 ($0.00 per share) for the same period in 2014. Net income in 2014 included $15.6 million of net gain on the sale of consolidated hotels.
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 3
Year-to-Date Operating Results
RevPAR for our 39 same-store hotels increased 8.1% (to $144.35) from the same period in 2014. The change reflects a 5.3% increase in ADR (to $185.62) and a 2.7% increase in occupancy (to 77.8%). Hotel EBITDA for our 39 same-store hotels increased 15.8% to $246.2 million, and Hotel EBITDA margin for these properties increased 188 basis points to 29.8%.
Same-store Adjusted EBITDA increased 18.0% to $228.2 million from the same period in 2014. Adjusted EBITDA (which includes Adjusted EBITDA from sold hotels) increased 6.3% to $234.7 million from the same period in 2014.
Adjusted FFO was $115.2 million ($0.83 per share), compared to $82.2 million ($0.65 per share) for the same period in 2014. Net loss attributable to common stockholders was $45.1 million ($0.33 per share) in 2015, compared to net income of $53.4 million ($0.43 per share) for the same period in 2014. Net loss in 2015 included $30.9 million in debt extinguishment charges and a $20.9 million impairment charge offset by a $20.1 million net gain on the sale of consolidated hotels (including discontinued operations) and a $7.1 million gain on sale of an unconsolidated joint venture. Net income in 2014 included $66.7 million of net gain on the sale of consolidated hotels, a $30.2 million gain on the sale of our interest in unconsolidated hotels, and a $20.7 million gain on the fair value remeasurement of previously unconsolidated hotels.
EBITDA, Adjusted EBITDA, Same-store Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA margin, FFO, Adjusted FFO and Adjusted FFO per share are all non-GAAP financial measures. See our discussion of “Non-GAAP Financial Measures” beginning on page 15 for a reconciliation of each of these measures to the most comparable GAAP financial measure and for information regarding the use, limitations and importance of these non-GAAP financial measures.
Capital Allocation
We continually strive to increase long-term stockholder value through prudent capital allocation. As part of this on-going pursuit, we look for opportunities to recycle capital that can be redeployed to strengthen our balance sheet and achieve higher returns.
Asset Sales
In 2015, we announced the next phase of our long-term strategic plan. As part of this plan, we are selling five of our hotels, including our three New York City properties. Given these hotels’ locations and quality, we expect to sell them for prices per key that reflect very attractive EBITDA multiples. We have agreed to sell the Holiday Inn Nashville Airport and received a letter of intent to sell two other hotels (Morgans and Royalton) at compelling prices. We are in discussions with potential buyers for the two remaining properties - The Knickerbocker and the Renaissance Esmeralda Indian Wells Resort & Spa.
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 4
Balance Sheet
As of December 31, 2015, we had $1.4 billion of consolidated debt bearing a 5.2% weighted-average interest rate and an eight-year weighted-average maturity. We had $59.8 million of cash and cash equivalents and $17.7 million of restricted cash.
“We continue creating a strong balance sheet that will enable us to thrive throughout lodging cycles. After completing planned asset sales, we expect our pro forma leverage will be below 4.0 times, down from 8.2 times in 2010. We have successfully extended our already best-in-class debt maturity profile. Excluding our line of credit, we have no significant maturities until 2022, and more than 90% of our debt is fixed, insulating us from rising rates,” said Michael C. Hughes, Executive Vice President and Chief Financial Officer of FelCor.
Stock Repurchase Program
In 2015, our Board approved a $100 million stock repurchase program, which we implemented in December. To-date, we have purchased 4.3 million shares for $29.0 million (at an average price of $6.68 per share). We intend to continue repurchasing our common stock while it trades at a significant discount to NAV and expect the $100 million program to increase in conjunction with the contemplated asset sales.
Common Dividend
During the fourth quarter, we increased our common stock dividend by 50% to $0.06 per share. Our Board of Directors will determine future quarterly common stock dividends based on funds available for distribution, reinvestment opportunities within our portfolio and taxable income, among other things.
Capital Expenditures
During the fourth quarter, we invested $15.6 million in capital improvements at our hotels. During 2015, we invested $85.7 million at our hotels, including $33.5 million at The Knickerbocker. During 2016, we plan to invest approximately $60 million in capital improvements and renovations as part of our long-term capital plan. In addition, we expect to invest approximately $15 million in redevelopment projects this year.
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 5
Outlook
We continue to expect that our RevPAR growth will exceed the industry average because of our high-quality and diverse portfolio, which is over-weighted to supply constrained markets with favorable demand trends.
Our outlook assumes that we sell the five hotels in 2016 that we are currently marketing. The low-end of our guidance assumes that we sell three hotels in the second quarter and the remaining two in the third quarter. The high-end of our guidance assumes that we sell all five hotels during the fourth quarter. Our outlook assumes Hotel EBITDA for the Wyndham hotels equals the amount guaranteed by Wyndham for 2016 (which corresponds to approximately $59 million of Hotel EBITDA).
For the year, we expect:
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| • | RevPAR for same-store hotels will increase 3.5-5.5%; |
| |
| • | Adjusted EBITDA will be $238.0 million - $256.0 million; |
| |
| • | Adjusted FFO per share will be $0.90 - $0.99; |
| |
| • | Net income attributable to FelCor will be $35.6 million - $49.0 million; and |
| |
| • | Interest expense, including our pro rata share from joint ventures, will be $77.0 million - $81.6 million. |
The following table reconciles our Adjusted EBITDA outlook (in millions): |
| | | | | | | | | | | |
| | Low | | Middle | | High |
| 2015 Same-store Adjusted EBITDA (39 hotels) | $ | 228.2 |
| | $ | 228.2 |
| | $ | 228.2 |
|
Growth(a) | 20.8 |
| | 24.8 |
| | 28.8 |
|
| Current Adjusted EBITDA (40 hotels) | $ | 249.0 |
| | $ | 253.0 |
| | $ | 257.0 |
|
2016 EBITDA lost from hotels to be sold(b) | (11.0 | ) | | (6.0 | ) | | (1.0 | ) |
| 2016 Adjusted EBITDA | $ | 238.0 |
| | $ | 247.0 |
| | $ | 256.0 |
|
| |
| (a) | Includes The Knickerbocker. |
| |
| (b) | Adjusted EBITDA for the five hotels currently being marketed from their respective sale dates to December 31, 2016. |
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 6
About FelCor
FelCor Lodging Trust Incorporated, a real estate investment trust (REIT), owns a diversified portfolio of primarily upper-upscale and luxury hotels that are located in major urban and resort markets throughout the U.S. FelCor partners with top hotel companies that operate its properties under globally renowned names and as premier independent hotels. Additional information can be found on the Company’s website at www.felcor.com.
We invite you to listen to our fourth quarter earnings Conference Call on Thursday, February 25, 2016 at 11:00 a.m. (Central Time). The conference call will be webcast simultaneously on FelCor’s website at www.felcor.com. Interested investors and other parties who wish to access the call can go to FelCor’s website and click on the conference call microphone icon on the “Investor Relations” page. The conference call replay will also be archived on the Company’s website.
With the exception of historical information, the matters discussed in this news release include “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” “continue” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties, and the occurrence of future events, may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Current economic circumstances or an economic slowdown and the impact on the lodging industry, operating risks associated with the hotel business, relationships with our property managers, risks associated with our level of indebtedness and our ability to meet debt covenants in our debt agreements, our ability to complete acquisitions, dispositions and debt refinancing, the availability of capital, the impact on the travel industry from security precautions, our ability to continue to qualify as a Real Estate Investment Trust for federal income tax purposes and numerous other factors may affect future results, performance and achievements. Certain of these risks and uncertainties are described in greater detail in our filings with the Securities and Exchange Commission. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially. We undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.
Contact:
Stephen A. Schafer, Senior Vice President
(972) 444-4912 sschafer@felcor.com
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 7
SUPPLEMENTAL INFORMATION
INTRODUCTION
The following information is presented in order to help our investors understand FelCor’s financial position as of and for the three months and year ended December 31, 2015.
TABLE OF CONTENTS
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| | |
| | | Page |
Consolidated Statements of Operations(a) | | |
Consolidated Balance Sheets(a) | | |
| Consolidated Debt Summary | | |
| Schedule of Encumbered Hotels | | |
| Capital Expenditures | | |
| Total Enterprise Value | | |
| Hotel Operating Statistics | | |
| Historical Quarterly Operating Statistics | | |
| Non-GAAP Financial Measures | | |
| |
| (a) | Our consolidated statements of operations and balance sheets have been prepared without audit. Certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP have been omitted. The consolidated statements of operations and balance sheets should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent Annual Report on Form 10-K. |
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 8
Consolidated Statements of Operations
(in thousands, except per share data) |
| | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended |
| | December 31, | | December 31, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| Revenues: | | | | | | | |
| Hotel operating revenue: | | | | | | | |
| Room | $ | 151,526 |
| | $ | 157,177 |
| | $ | 673,276 |
| | $ | 713,213 |
|
| Food and beverage | 42,166 |
| | 38,064 |
| | 158,531 |
| | 157,607 |
|
| Other operating departments | 11,871 |
| | 10,990 |
| | 46,564 |
| | 47,161 |
|
| Other revenue | 741 |
| | 436 |
| | 7,883 |
| | 3,606 |
|
| Total revenues | 206,304 |
| | 206,667 |
| | 886,254 |
| | 921,587 |
|
| Expenses: | | | | | | | |
| Hotel departmental expenses: | | | | | | | |
| Room | 40,833 |
| | 42,799 |
| | 172,252 |
| | 188,465 |
|
| Food and beverage | 31,953 |
| | 28,281 |
| | 123,384 |
| | 121,201 |
|
| Other operating departments | 4,153 |
| | 4,914 |
| | 17,505 |
| | 22,210 |
|
| Other property related costs | 52,967 |
| | 54,239 |
| | 223,546 |
| | 238,170 |
|
| Management and franchise fees | 8,147 |
| | 7,262 |
| | 35,572 |
| | 36,067 |
|
| Taxes, insurance and lease expense | 15,274 |
| | 14,990 |
| | 59,207 |
| | 84,266 |
|
| Corporate expenses | 7,508 |
| | 7,671 |
| | 27,283 |
| | 29,585 |
|
| Depreciation and amortization | 28,942 |
| | 28,613 |
| | 114,452 |
| | 115,819 |
|
| Impairment loss | — |
| | — |
| | 20,861 |
| | — |
|
| Other expenses | 1,033 |
| | 4,078 |
| | 12,479 |
| | 17,952 |
|
| Total operating expenses | 190,810 |
| | 192,847 |
| | 806,541 |
| | 853,735 |
|
| Operating income | 15,494 |
| | 13,820 |
| | 79,713 |
| | 67,852 |
|
| Interest expense, net | (19,757 | ) | | (19,051 | ) | | (79,118 | ) | | (90,695 | ) |
| Debt extinguishment | — |
| | (7 | ) | | (30,909 | ) | | (4,770 | ) |
| Gain on sale of investment in unconsolidated entities, net | — |
| | (8 | ) | | — |
| | 30,176 |
|
| Gain from remeasurement of unconsolidated entities, net | — |
| | 4 |
| | — |
| | 20,737 |
|
| Other gains, net | — |
| | — |
| | 166 |
| | 100 |
|
| Income (loss) before equity in income (loss) from unconsolidated entities | (4,263 | ) | | (5,242 | ) | | (30,148 | ) | | 23,400 |
|
| Equity in income (loss) from unconsolidated entities | (150 | ) | | 254 |
| | 7,833 |
| | 5,010 |
|
| Income (loss) from continuing operations before income tax expense | (4,413 | ) | | (4,988 | ) | | (22,315 | ) | | 28,410 |
|
| Income tax expense | 147 |
| | (180 | ) | | (1,245 | ) | | (660 | ) |
| Income (loss) from continuing operations | (4,266 | ) | | (5,168 | ) | | (23,560 | ) | | 27,750 |
|
| Income (loss) from discontinued operations | 250 |
| | (492 | ) | | 669 |
| | (360 | ) |
| Income (loss) before gain on sale of property | (4,016 | ) | | (5,660 | ) |
| (22,891 | ) | | 27,390 |
|
| Gain (loss) on sale of property, net | (65 | ) |
| 16,123 |
| | 19,426 |
| | 66,762 |
|
| Net income (loss) | (4,081 | ) | | 10,463 |
| | (3,465 | ) |
| 94,152 |
|
| Net loss (income) attributable to noncontrolling interests in other partnerships | 248 |
| | 133 |
| | (4,157 | ) | | (697 | ) |
| Net loss (income) attributable to redeemable noncontrolling interests in FelCor LP | 44 |
| | (2 | ) | | 194 |
| | (137 | ) |
| Preferred distributions - consolidated joint venture | (367 | ) | | (349 | ) | | (1,437 | ) | | (1,219 | ) |
| Net income (loss) attributable to FelCor | (4,156 | ) | | 10,245 |
| | (8,865 | ) | | 92,099 |
|
| Preferred dividends | (6,278 | ) | | (9,678 | ) | | (30,138 | ) | | (38,712 | ) |
| Redemption of preferred stock | — |
| | — |
| | (6,096 | ) | | — |
|
| Net income (loss) attributable to FelCor common stockholders | $ | (10,434 | ) | | $ | 567 |
| | $ | (45,099 | ) | | $ | 53,387 |
|
| Basic and diluted per common share data: | | | | | | | |
| Income (loss) from continuing operations | $ | (0.07 | ) | | $ | 0.01 |
| | $ | (0.33 | ) | | $ | 0.43 |
|
| Net income (loss) | $ | (0.07 | ) | | $ | — |
| | $ | (0.33 | ) | | $ | 0.43 |
|
| Basic weighted average common shares outstanding | 142,823 |
| | 124,188 |
| | 137,730 |
| | 124,158 |
|
| Diluted weighted average common shares outstanding | 142,823 |
| | 125,146 |
| | 137,730 |
| | 124,892 |
|
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 9
Consolidated Balance Sheets
(in thousands)
|
| | | | | | | |
| | December 31, | | December 31, |
| | 2015 | | 2014 |
| Assets | | | |
| Investment in hotels, net of accumulated depreciation of $899,575 and $850,687 at December 31, 2015 and 2014, respectively | $ | 1,729,531 |
| | $ | 1,599,791 |
|
| Hotel development | — |
| | 297,466 |
|
| Investment in unconsolidated entities | 9,575 |
| | 15,095 |
|
| Hotels held for sale | — |
| | 47,145 |
|
| Cash and cash equivalents | 59,786 |
| | 47,147 |
|
| Restricted cash | 17,702 |
| | 20,496 |
|
| Accounts receivable, net of allowance for doubtful accounts of $204 and $241 at December 31, 2015 and 2014, respectively | 28,136 |
| | 27,805 |
|
| Deferred expenses, net of accumulated amortization of $8,230 and $17,111 at December 31, 2015 and 2014, respectively | 24,455 |
| | 25,827 |
|
| Other assets | 14,792 |
| | 23,886 |
|
| Total assets | $ | 1,883,977 |
| | $ | 2,104,658 |
|
| Liabilities and Equity | | | |
| Debt | $ | 1,427,954 |
| | $ | 1,585,867 |
|
| Distributions payable | 15,140 |
| | 13,827 |
|
| Accrued expenses and other liabilities | 125,274 |
| | 135,481 |
|
| Total liabilities | 1,568,368 |
| | 1,735,175 |
|
| Commitments and contingencies | | | |
| Redeemable noncontrolling interests in FelCor LP, 611 units issued and outstanding at December 31, 2015 and 2014 | 4,464 |
| | 6,616 |
|
| Equity: | | | |
| Preferred stock, $0.01 par value, 20,000 shares authorized: | | | |
| Series A Cumulative Convertible Preferred Stock, 12,879 shares, liquidation value of $321,987, issued and outstanding at December 31, 2015 and 2014 | 309,337 |
| | 309,337 |
|
| Series C Cumulative Redeemable Preferred Stock, 68 shares, liquidation value of $169,950, issued and outstanding at December 31, 2014 | — |
| | 169,412 |
|
| Common stock, $0.01 par value, 200,000 shares authorized; 141,808 and 124,605 shares issued and outstanding at December 31, 2015 and 2014, respectively | 1,418 |
| | 1,246 |
|
| Additional paid-in capital | 2,567,515 |
| | 2,353,666 |
|
| Accumulated deficit | (2,618,117 | ) | | (2,530,671 | ) |
| Total FelCor stockholders’ equity | 260,153 |
| | 302,990 |
|
| Noncontrolling interests in other partnerships | 7,806 |
| | 18,435 |
|
| Preferred equity in consolidated joint venture, liquidation value of $43,954 and $42,094 at December 31, 2015 and 2014, respectively | 43,186 |
| | 41,442 |
|
| Total equity | 311,145 |
| | 362,867 |
|
| Total liabilities and equity | $ | 1,883,977 |
| | $ | 2,104,658 |
|
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 10
Consolidated Debt Summary
(dollars in thousands)
|
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | December 31, |
| | Encumbered Hotels | | Interest Rate (%) | | Maturity Date | | 2015 | | 2014 |
| Senior unsecured notes | — |
| | | 6.00 | | June 2025 | | $ | 475,000 |
| | $ | — |
|
| Senior secured notes | 9 |
| | | 5.625 | | March 2023 | | 525,000 |
| | 525,000 |
|
Mortgage debt(a) | 4 |
| | | 4.95 | | October 2022 | | 122,237 |
| | 124,278 |
|
| Mortgage debt | 1 |
| | | 4.94 | | October 2022 | | 30,717 |
| | 31,228 |
|
Line of credit(b) | 7 |
| | | LIBOR + 2.75 | | June 2019 | | 190,000 |
| | — |
|
Knickerbocker loan(c) | 1 |
| | | LIBOR + 3.00 | | November 2017 | | 85,000 |
| | 64,861 |
|
| Retired debt | — |
| | | — |
| | | — | | — |
| | 840,500 |
|
| Total | 22 |
| | | | | | | | $ | 1,427,954 |
| | $ | 1,585,867 |
|
| |
| (a) | This debt is comprised of separate non-cross-collateralized loans, each secured by a mortgage encumbering different hotels. |
| |
| (b) | Our line of credit can be extended for one year, subject to satisfying certain conditions. We may borrow up to $400 million under our line of credit. |
| |
| (c) | This loan can be extended for one year, subject to satisfying certain conditions. At December 31, 2014, $6.3 million of this loan was secured by cash collateral with an interest rate of LIBOR + 1.25%. |
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 11
Schedule of Encumbered Hotels
(dollars in millions)
|
| | | | | | | | |
| Consolidated | | December 31, 2015 | | |
| Debt | | Balance | | Encumbered Hotels |
| Senior secured notes (5.625%) | | | $ | 525 |
| | | Atlanta Buckhead - ES, Boston Marlboro - ES, Burlington - SH, Dallas Love Field - ES, Milpitas - ES, Myrtle Beach Resort - HIL, Orlando South - ES, Philadelphia Society Hill - SH and SF South San Francisco - ES |
| Mortgage debt | | | $ | 27 |
| | | Napa Valley - ES |
| Mortgage debt | | | $ | 35 |
| | | Ft. Lauderdale - ES |
| Mortgage debt | | | $ | 23 |
| | | Birmingham - ES |
| Mortgage debt | | | $ | 37 |
| | | Minneapolis Airport - ES |
| Mortgage debt | | | $ | 31 |
| | | Deerfield Beach - ES |
| Line of credit | | | $ | 190 |
| | | Austin - DTG, Boston Copley - FM, Charleston Mills House - WYN, LA LAX S - ES, Santa Monica at the Pier - WYN, SF Union Square - MAR and St. Petersburg Vinoy - REN |
| Knickerbocker loan | | | $ | 85 |
| | | The Knickerbocker |
Capital Expenditures
(in thousands)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended |
| | December 31, | | December 31, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| Improvements and additions to majority-owned hotels | $ | 12,458 |
| | $ | 18,117 |
| | $ | 48,436 |
| | $ | 83,664 |
|
| Partners’ pro rata share of additions to consolidated joint venture hotels | (17 | ) | | (27 | ) | | (47 | ) | | (308 | ) |
| Pro rata share of additions to unconsolidated hotels | 1,231 |
| | 528 |
| | 3,791 |
| | 2,412 |
|
Total additions to hotels(a) | $ | 13,672 |
| | $ | 18,618 |
| | $ | 52,180 |
| | $ | 85,768 |
|
| |
| (a) | Includes capitalized interest, property taxes, property insurance, ground leases and certain employee costs. |
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 12
Total Enterprise Value
(in thousands, except per share data)
|
| | | | | | | | |
| | December 31, |
| | | 2015 | | 2014 |
| Common shares outstanding | 141,808 |
| | 124,605 |
|
| Units outstanding | 611 |
| | 611 |
|
| Combined shares and units outstanding | 142,419 |
| | 125,216 |
|
| Common stock price | $ | 7.30 |
| | $ | 10.82 |
|
| Market capitalization | $ | 1,039,659 |
| | $ | 1,354,837 |
|
Series A preferred stock(a) | 309,337 |
| | 309,337 |
|
Series C preferred stock(a) | — |
| | 169,412 |
|
| Preferred equity - Knickerbocker joint venture, net | 41,027 |
| | 39,370 |
|
| Consolidated debt | 1,427,954 |
| | 1,585,867 |
|
| Noncontrolling interests of consolidated debt | (4,250 | ) | | (2,928 | ) |
| Pro rata share of unconsolidated debt | 11,433 |
| | 17,096 |
|
Hotel development(b) | — |
| | (297,466 | ) |
Cash, cash equivalents and restricted cash(c) | (77,488 | ) | | (67,643 | ) |
| Total enterprise value (TEV) | $ | 2,747,672 |
| | $ | 3,107,882 |
|
| |
| (a) | Book value based on issue price. |
| |
| (b) | The Knickerbocker investment was placed in service during 2015. |
| |
| (c) | For 2014, restricted cash included $6.3 million of cash fully securing $6.3 million of outstanding debt assumed when we purchased The Knickerbocker. |
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 13
Hotel Operating Statistics |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Occupancy (%) | | ADR ($) | | RevPar ($) |
| | | Three Months Ended December 31, | | Three Months Ended December 31, | | Three Months Ended December 31, |
| Same-store Hotels | | 2015 | | 2014 | | %Change | | 2015 | | 2014 | | %Change | | 2015 | | 2014 | | %Change |
| Embassy Suites Atlanta-Buckhead | 77.9 | | 74.1 | | 5.2 |
| | 141.29 |
| | 137.71 |
| | 2.6 |
| | 110.09 |
| | 102.02 |
| | 7.9 |
|
| DoubleTree Suites by Hilton Austin | 77.3 | | 78.2 | | (1.1 | ) | | 225.85 |
| | 220.76 |
| | 2.3 |
| | 174.67 |
| | 172.72 |
| | 1.1 |
|
| Embassy Suites Birmingham | 77.6 | | 77.7 | | (0.2 | ) | | 134.05 |
| | 132.58 |
| | 1.1 |
| | 103.96 |
| | 103.04 |
| | 0.9 |
|
| The Fairmont Copley Plaza, Boston | 69.4 | | 70.1 | | (1.0 | ) | | 337.29 |
| | 322.99 |
| | 4.4 |
| | 234.04 |
| | 226.48 |
| | 3.3 |
|
| Wyndham Boston Beacon Hill | 71.3 | | 74.2 | | (3.8 | ) | | 225.58 |
| | 220.68 |
| | 2.2 |
| | 160.94 |
| | 163.65 |
| | (1.7 | ) |
| Embassy Suites Boston-Marlborough | 69.6 | | 64.2 | | 8.3 |
| | 172.41 |
| | 164.21 |
| | 5.0 |
| | 119.98 |
| | 105.47 |
| | 13.8 |
|
| Sheraton Burlington Hotel & Conference Center | 79.1 | | 71.6 | | 10.4 |
| | 108.59 |
| | 119.30 |
| | (9.0 | ) | | 85.91 |
| | 85.46 |
| | 0.5 |
|
| The Mills House Wyndham Grand Hotel, Charleston | 74.6 | | 80.2 | | (7.0 | ) | | 214.07 |
| | 200.99 |
| | 6.5 |
| | 159.70 |
| | 161.22 |
| | (0.9 | ) |
| Embassy Suites Dallas-Love Field | 79.3 | | 83.3 | | (4.8 | ) | | 136.25 |
| | 125.53 |
| | 8.5 |
| | 108.10 |
| | 104.57 |
| | 3.4 |
|
| Embassy Suites Deerfield Beach-Resort & Spa | 77.7 | | 74.0 | | 5.0 |
| | 187.41 |
| | 181.15 |
| | 3.5 |
| | 145.67 |
| | 134.11 |
| | 8.6 |
|
Embassy Suites Fort Lauderdale 17th Street | 84.0 | | 83.5 | | 0.6 |
| | 164.25 |
| | 150.61 |
| | 9.1 |
| | 137.97 |
| | 125.70 |
| | 9.8 |
|
| Wyndham Houston-Medical Center Hotel & Suites | 80.9 | | 65.4 | | 23.7 |
| | 146.83 |
| | 149.00 |
| | (1.5 | ) | | 118.81 |
| | 97.47 |
| | 21.9 |
|
| Renaissance Esmeralda Indian Wells Resort & Spa | 51.6 | | 43.3 | | 19.2 |
| | 162.46 |
| | 177.59 |
| | (8.5 | ) | | 83.80 |
| | 76.82 |
| | 9.1 |
|
| Embassy Suites Los Angeles-International Airport/South | 77.5 | | 67.9 | | 14.1 |
| | 150.68 |
| | 143.85 |
| | 4.8 |
| | 116.71 |
| | 97.63 |
| | 19.6 |
|
| Embassy Suites Mandalay Beach-Hotel & Resort | 70.9 | | 67.5 | | 5.2 |
| | 186.04 |
| | 182.09 |
| | 2.2 |
| | 131.98 |
| | 122.85 |
| | 7.4 |
|
| Embassy Suites Miami-International Airport | 85.7 | | 84.4 | | 1.6 |
| | 151.60 |
| | 148.60 |
| | 2.0 |
| | 129.90 |
| | 125.35 |
| | 3.6 |
|
| Embassy Suites Milpitas-Silicon Valley | 79.1 | | 75.5 | | 4.7 |
| | 191.93 |
| | 176.82 |
| | 8.5 |
| | 151.76 |
| | 133.48 |
| | 13.7 |
|
| Embassy Suites Minneapolis-Airport | 74.5 | | 68.8 | | 8.3 |
| | 144.55 |
| | 142.95 |
| | 1.1 |
| | 107.72 |
| | 98.36 |
| | 9.5 |
|
| Embassy Suites Myrtle Beach-Oceanfront Resort | 66.1 | | 66.4 | | (0.4 | ) | | 116.71 |
| | 120.15 |
| | (2.9 | ) | | 77.16 |
| | 79.72 |
| | (3.2 | ) |
| Hilton Myrtle Beach Resort | 44.7 | | 45.6 | | (2.1 | ) | | 99.74 |
| | 99.17 |
| | 0.6 |
| | 44.56 |
| | 45.24 |
| | (1.5 | ) |
| Embassy Suites Napa Valley | 84.6 | | 80.9 | | 4.6 |
| | 224.13 |
| | 217.17 |
| | 3.2 |
| | 189.52 |
| | 175.62 |
| | 7.9 |
|
| Holiday Inn Nashville Airport | 69.7 | | 66.2 | | 5.3 |
| | 110.03 |
| | 96.74 |
| | 13.7 |
| | 76.65 |
| | 64.03 |
| | 19.7 |
|
| Wyndham New Orleans-French Quarter | 74.0 | | 67.0 | | 10.5 |
| | 147.77 |
| | 157.26 |
| | (6.0 | ) | | 109.34 |
| | 105.35 |
| | 3.8 |
|
| Morgans New York | 86.2 | | 91.1 | | (5.4 | ) | | 318.76 |
| | 315.61 |
| | 1.0 |
| | 274.63 |
| | 287.38 |
| | (4.4 | ) |
| Royalton New York | 89.7 | | 91.3 | | (1.7 | ) | | 343.46 |
| | 357.58 |
| | (3.9 | ) | | 308.22 |
| | 326.33 |
| | (5.5 | ) |
| Embassy Suites Orlando-International Drive South/Convention Center | 81.6 | | 83.4 | | (2.1 | ) | | 141.86 |
| | 143.05 |
| | (0.8 | ) | | 115.80 |
| | 119.24 |
| | (2.9 | ) |
| DoubleTree Suites by Hilton Orlando-Lake Buena Vista | 90.7 | | 86.6 | | 4.7 |
| | 146.75 |
| | 133.89 |
| | 9.6 |
| | 133.04 |
| | 115.97 |
| | 14.7 |
|
| Wyndham Philadelphia Historic District | 63.2 | | 53.6 | | 17.8 |
| | 162.07 |
| | 148.86 |
| | 8.9 |
| | 102.41 |
| | 79.83 |
| | 28.3 |
|
| Sheraton Philadelphia Society Hill Hotel | 69.3 | | 61.6 | | 12.6 |
| | 177.81 |
| | 174.98 |
| | 1.6 |
| | 123.18 |
| | 107.71 |
| | 14.4 |
|
| Embassy Suites Phoenix-Biltmore | 67.5 | | 70.8 | | (4.7 | ) | | 176.23 |
| | 161.23 |
| | 9.3 |
| | 118.92 |
| | 114.13 |
| | 4.2 |
|
| Wyndham Pittsburgh University Center | 62.8 | | 61.2 | | 2.5 |
| | 144.02 |
| | 140.10 |
| | 2.8 |
| | 90.40 |
| | 85.81 |
| | 5.3 |
|
| Wyndham San Diego Bayside | 70.3 | | 71.5 | | (1.7 | ) | | 141.20 |
| | 119.87 |
| | 17.8 |
| | 99.20 |
| | 85.69 |
| | 15.8 |
|
| Embassy Suites San Francisco Airport-South San Francisco | 86.0 | | 84.2 | | 2.2 |
| | 193.41 |
| | 183.77 |
| | 5.2 |
| | 166.35 |
| | 154.67 |
| | 7.5 |
|
| Embassy Suites San Francisco Airport-Waterfront | 85.3 | | 80.2 | | 6.3 |
| | 196.16 |
| | 190.39 |
| | 3.0 |
| | 167.25 |
| | 152.72 |
| | 9.5 |
|
| Holiday Inn San Francisco-Fisherman’s Wharf | 82.0 | | 79.4 | | 3.4 |
| | 191.05 |
| | 199.63 |
| | (4.3 | ) | | 156.72 |
| | 158.42 |
| | (1.1 | ) |
| San Francisco Marriott Union Square | 83.1 | | 85.8 | | (3.2 | ) | | 282.69 |
| | 277.20 |
| | 2.0 |
| | 234.97 |
| | 237.94 |
| | (1.2 | ) |
| Wyndham Santa Monica At the Pier | 75.0 | | 74.6 | | 0.6 |
| | 237.38 |
| | 226.86 |
| | 4.6 |
| | 178.05 |
| | 169.17 |
| | 5.2 |
|
| Embassy Suites Secaucus-Meadowlands | 75.0 | | 81.6 | | (8.0 | ) | | 183.96 |
| | 183.36 |
| | 0.3 |
| | 138.02 |
| | 149.59 |
| | (7.7 | ) |
| The Vinoy Renaissance St. Petersburg Resort & Golf Club | 77.4 | | 80.0 | | (3.2 | ) | | 201.45 |
| | 192.17 |
| | 4.8 |
| | 155.89 |
| | 153.64 |
| | 1.5 |
|
| Same-store Hotels | 74.3 | | 72.0 | | 3.3 |
| | 179.39 |
| | 175.83 |
| | 2.0 |
| | 133.36 |
| | 126.57 |
| | 5.4 |
|
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 14
Hotel Operating Statistics |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Occupancy (%) | | ADR ($) | | RevPar ($) |
| | | Year Ended December 31, | | Year Ended December 31, | | Year Ended December 31, |
| Same-store Hotels | | 2015 | | 2014 | | %Change | | 2015 | | 2014 | | %Change | | 2015 | | 2014 | | %Change |
| Embassy Suites Atlanta-Buckhead | 79.5 | | 77.2 | | 3.1 |
| | 147.51 |
| | 141.85 |
| | 4.0 |
| | 117.30 |
| | 109.44 |
| | 7.2 |
|
| DoubleTree Suites by Hilton Austin | 81.8 | | 79.9 | | 2.4 |
| | 221.63 |
| | 214.22 |
| | 3.5 |
| | 181.35 |
| | 171.17 |
| | 5.9 |
|
| Embassy Suites Birmingham | 79.0 | | 76.6 | | 3.1 |
| | 134.07 |
| | 130.37 |
| | 2.8 |
| | 105.86 |
| | 99.82 |
| | 6.1 |
|
| The Fairmont Copley Plaza, Boston | 75.5 | | 74.4 | | 1.5 |
| | 326.70 |
| | 307.77 |
| | 6.1 |
| | 246.81 |
| | 229.14 |
| | 7.7 |
|
| Wyndham Boston Beacon Hill | 79.2 | | 80.0 | | (1.1 | ) | | 234.42 |
| | 211.48 |
| | 10.8 |
| | 185.60 |
| | 169.24 |
| | 9.7 |
|
| Embassy Suites Boston-Marlborough | 74.9 | | 72.1 | | 3.9 |
| | 171.10 |
| | 160.00 |
| | 6.9 |
| | 128.20 |
| | 115.39 |
| | 11.1 |
|
| Sheraton Burlington Hotel & Conference Center | 75.2 | | 69.0 | | 9.1 |
| | 116.52 |
| | 125.56 |
| | (7.2 | ) | | 87.64 |
| | 86.57 |
| | 1.2 |
|
| The Mills House Wyndham Grand Hotel, Charleston | 81.1 | | 82.3 | | (1.4 | ) | | 222.42 |
| | 195.66 |
| | 13.7 |
| | 180.45 |
| | 161.06 |
| | 12.0 |
|
| Embassy Suites Dallas-Love Field | 87.9 | | 80.8 | | 8.8 |
| | 132.52 |
| | 124.86 |
| | 6.1 |
| | 116.42 |
| | 100.84 |
| | 15.5 |
|
| Embassy Suites Deerfield Beach-Resort & Spa | 80.2 | | 78.0 | | 2.9 |
| | 200.97 |
| | 193.57 |
| | 3.8 |
| | 161.22 |
| | 150.96 |
| | 6.8 |
|
Embassy Suites Fort Lauderdale 17th Street | 84.8 | | 83.8 | | 1.2 |
| | 165.76 |
| | 150.69 |
| | 10.0 |
| | 140.55 |
| | 126.22 |
| | 11.4 |
|
| Wyndham Houston-Medical Center Hotel & Suites | 81.5 | | 72.1 | | 12.9 |
| | 150.80 |
| | 147.18 |
| | 2.5 |
| | 122.87 |
| | 106.19 |
| | 15.7 |
|
| Renaissance Esmeralda Indian Wells Resort & Spa | 55.8 | | 54.9 | | 1.7 |
| | 187.54 |
| | 191.10 |
| | (1.9 | ) | | 104.74 |
| | 104.98 |
| | (0.2 | ) |
| Embassy Suites Los Angeles-International Airport/South | 81.3 | | 80.1 | | 1.5 |
| | 159.93 |
| | 145.73 |
| | 9.7 |
| | 129.98 |
| | 116.68 |
| | 11.4 |
|
| Embassy Suites Mandalay Beach-Hotel & Resort | 78.0 | | 78.8 | | (1.0 | ) | | 212.81 |
| | 195.11 |
| | 9.1 |
| | 165.97 |
| | 153.69 |
| | 8.0 |
|
| Embassy Suites Miami-International Airport | 88.3 | | 87.1 | | 1.4 |
| | 151.72 |
| | 147.80 |
| | 2.7 |
| | 133.98 |
| | 128.77 |
| | 4.0 |
|
| Embassy Suites Milpitas-Silicon Valley | 82.4 | | 79.0 | | 4.3 |
| | 195.17 |
| | 175.18 |
| | 11.4 |
| | 160.88 |
| | 138.40 |
| | 16.2 |
|
| Embassy Suites Minneapolis-Airport | 77.1 | | 78.7 | | (2.0 | ) | | 150.93 |
| | 148.04 |
| | 2.0 |
| | 116.38 |
| | 116.52 |
| | (0.1 | ) |
| Embassy Suites Myrtle Beach-Oceanfront Resort | 74.4 | | 72.3 | | 2.9 |
| | 172.30 |
| | 173.53 |
| | (0.7 | ) | | 128.12 |
| | 125.46 |
| | 2.1 |
|
| Hilton Myrtle Beach Resort | 64.1 | | 62.7 | | 2.4 |
| | 140.45 |
| | 136.67 |
| | 2.8 |
| | 90.09 |
| | 85.65 |
| | 5.2 |
|
| Embassy Suites Napa Valley | 83.8 | | 80.1 | | 4.6 |
| | 232.95 |
| | 219.99 |
| | 5.9 |
| | 195.12 |
| | 176.22 |
| | 10.7 |
|
| Holiday Inn Nashville Airport | 66.7 | | 69.5 | | (4.1 | ) | | 111.10 |
| | 97.82 |
| | 13.6 |
| | 74.07 |
| | 67.98 |
| | 9.0 |
|
| Wyndham New Orleans-French Quarter | 68.9 | | 61.6 | | 11.7 |
| | 150.70 |
| | 149.39 |
| | 0.9 |
| | 103.77 |
| | 92.06 |
| | 12.7 |
|
| Morgans New York | 82.4 | | 89.3 | | (7.8 | ) | | 282.65 |
| | 287.21 |
| | (1.6 | ) | | 232.79 |
| | 256.57 |
| | (9.3 | ) |
| Royalton New York | 86.7 | | 86.9 | | (0.2 | ) | | 303.39 |
| | 322.97 |
| | (6.1 | ) | | 263.02 |
| | 280.52 |
| | (6.2 | ) |
| Embassy Suites Orlando-International Drive South/Convention Center | 83.9 | | 84.3 | | (0.5 | ) | | 146.67 |
| | 144.13 |
| | 1.8 |
| | 122.99 |
| | 121.48 |
| | 1.2 |
|
| DoubleTree Suites by Hilton Orlando-Lake Buena Vista | 89.4 | | 86.6 | | 3.2 |
| | 139.63 |
| | 132.90 |
| | 5.1 |
| | 124.89 |
| | 115.15 |
| | 8.5 |
|
| Wyndham Philadelphia Historic District | 64.3 | | 63.9 | | 0.7 |
| | 160.43 |
| | 129.41 |
| | 24.0 |
| | 103.22 |
| | 82.68 |
| | 24.8 |
|
| Sheraton Philadelphia Society Hill Hotel | 69.0 | | 69.7 | | (1.0 | ) | | 174.72 |
| | 164.54 |
| | 6.2 |
| | 120.54 |
| | 114.69 |
| | 5.1 |
|
| Embassy Suites Phoenix-Biltmore | 71.4 | | 71.3 | | 0.1 |
| | 175.83 |
| | 157.98 |
| | 11.3 |
| | 125.60 |
| | 112.71 |
| | 11.4 |
|
| Wyndham Pittsburgh University Center | 71.1 | | 68.9 | | 3.3 |
| | 145.55 |
| | 138.17 |
| | 5.3 |
| | 103.53 |
| | 95.18 |
| | 8.8 |
|
| Wyndham San Diego Bayside | 78.1 | | 73.4 | | 6.4 |
| | 147.63 |
| | 126.05 |
| | 17.1 |
| | 115.33 |
| | 92.55 |
| | 24.6 |
|
| Embassy Suites San Francisco Airport-South San Francisco | 88.4 | | 83.6 | | 5.8 |
| | 200.69 |
| | 189.29 |
| | 6.0 |
| | 177.46 |
| | 158.26 |
| | 12.1 |
|
| Embassy Suites San Francisco Airport-Waterfront | 86.4 | | 75.9 | | 13.9 |
| | 207.60 |
| | 191.67 |
| | 8.3 |
| | 179.35 |
| | 145.44 |
| | 23.3 |
|
| Holiday Inn San Francisco-Fisherman’s Wharf | 86.2 | | 82.9 | | 4.0 |
| | 208.90 |
| | 200.65 |
| | 4.1 |
| | 180.10 |
| | 166.32 |
| | 8.3 |
|
| San Francisco Marriott Union Square | 86.8 | | 87.6 | | (0.8 | ) | | 288.45 |
| | 275.03 |
| | 4.9 |
| | 250.49 |
| | 240.80 |
| | 4.0 |
|
| Wyndham Santa Monica At the Pier | 83.9 | | 83.0 | | 1.1 |
| | 255.40 |
| | 242.91 |
| | 5.1 |
| | 214.26 |
| | 201.64 |
| | 6.3 |
|
| Embassy Suites Secaucus-Meadowlands | 76.0 | | 78.4 | | (3.0 | ) | | 184.97 |
| | 185.36 |
| | (0.2 | ) | | 140.57 |
| | 145.24 |
| | (3.2 | ) |
| The Vinoy Renaissance St. Petersburg Resort & Golf Club | 81.9 | | 81.2 | | 0.8 |
| | 210.49 |
| | 195.98 |
| | 7.4 |
| | 172.39 |
| | 159.21 |
| | 8.3 |
|
| Same-store Hotels | 77.8 | | 75.8 | | 2.7 |
| | 185.62 |
| | 176.24 |
| | 5.3 |
| | 144.35 |
| | 133.51 |
| | 8.1 |
|
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 15
Historical Quarterly Operating Statistics
|
| | | | | | | | | | | | | | | |
| | | Occupancy (%) |
| | | Q4 2014 | | Q1 2015 | | Q2 2015 | | Q3 2015 | | Q4 2015 |
Same-store hotels(a) | | 72.0 |
| | 74.7 |
| | 81.1 |
| | 80.8 |
| | 74.3 |
|
| | | | | | | | | | | |
| | | ADR ($) |
| | | Q4 2014 | | Q1 2015 | | Q2 2015 | | Q3 2015 | | Q4 2015 |
Same-store hotels(a) | | 175.83 |
| | 181.65 |
| | 190.42 |
| | 190.19 |
| | 179.39 |
|
| | | | | | | | | | | |
| | | RevPAR ($) |
| | | Q4 2014 | | Q1 2015 | | Q2 2015 | | Q3 2015 | | Q4 2015 |
Same-store hotels(a) | | 126.57 |
| | 135.78 |
| | 154.48 |
| | 153.70 |
| | 133.36 |
|
| |
| (a) | Includes 39 consolidated hotels, excluding The Knickerbocker, which opened in February 2015. |
Non-GAAP Financial Measures
We refer in this release to certain “non-GAAP financial measures.” These measures, including FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-store Adjusted EBITDA, Hotel EBITDA and Hotel EBITDA margin, are measures of our financial performance that are not calculated and presented in accordance with generally accepted accounting principles (“GAAP”). The following tables reconcile each of these non-GAAP measures to the most comparable GAAP financial measure. Immediately following the reconciliations, we include a discussion of why we believe these measures are useful supplemental measures of our performance and the limitations of such measures.
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 16
Reconciliation of Net Income (Loss) to FFO and Adjusted FFO
(in thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, |
| | 2015 | | 2014 |
| | Dollars | | Shares | | Per Share Amount | | Dollars | | Shares | | Per Share Amount |
| Net income (loss) | $ | (4,081 | ) | | | | | | $ | 10,463 |
| | | | |
| Noncontrolling interests | 292 |
| | | | | | 131 |
| | | | |
| Preferred dividends | (6,278 | ) | | | | | | (9,678 | ) | | | | |
| Preferred distributions - consolidated joint venture | (367 | ) | | | | | | (349 | ) | | | | |
| Net income (loss) attributable to FelCor common stockholders | (10,434 | ) | | | | | | 567 |
| | | | |
| Less: Dividends declared on unvested restricted stock | (16 | ) | | | | | | (3 | ) | | | | |
| Basic earnings per share data | (10,450 | ) | | 142,823 |
| | $ | (0.07 | ) | | 564 |
| | 124,188 |
| | $ | — |
|
| Restricted stock units | — |
| | — |
| | — |
| | — |
| | 958 |
| | — |
|
| Diluted earnings per share data | (10,450 | ) | | 142,823 |
| | (0.07 | ) | | 564 |
| | 125,146 |
| | — |
|
| Depreciation and amortization | 28,942 |
| | — |
| | 0.20 |
| | 28,613 |
| | — |
| | 0.23 |
|
| Depreciation, unconsolidated entities and other partnerships | 480 |
| | — |
| | — |
| | 496 |
| | — |
| | — |
|
| Gain on sale of hotel in unconsolidated entity | (14 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Gain on sale of hotels, net of noncontrolling interests in other partnerships | (165 | ) | | — |
| | — |
| | (15,682 | ) | | — |
| | (0.13 | ) |
| Gain on sale of investment in unconsolidated entities, net | — |
| | — |
| | — |
| | 8 |
| | — |
| | — |
|
| Gain from remeasurement of unconsolidated entities | — |
| | — |
| | — |
| | (4 | ) | | — |
| | — |
|
| Noncontrolling interests in FelCor LP | (44 | ) | | 611 |
| | — |
| | 2 |
| | 611 |
| | 0.01 |
|
| Dividends declared on unvested restricted stock | 16 |
| | — |
| | — |
| | 3 |
| | — |
| | — |
|
| Conversion of unvested restricted stock and units | — |
| | 613 |
| | — |
| | — |
| | 7 |
| | — |
|
| FFO | 18,765 |
| | 144,047 |
| | 0.13 |
| | 14,000 |
| | 125,764 |
| | 0.11 |
|
| Hurricane and earthquake loss | — |
| | — |
| | — |
| | 348 |
| | — |
| | — |
|
| Debt extinguishment | — |
| | — |
| | — |
| | 7 |
| | — |
| | — |
|
| Debt extinguishment, unconsolidated entities | — |
| | — |
| | — |
| | 13 |
| | — |
| | — |
|
| Severance costs | 43 |
| | — |
| | — |
| | 99 |
| | — |
| | — |
|
| Lease adjustment | 1,628 |
| | — |
| | 0.01 |
| | — |
| | — |
| | — |
|
| Abandoned projects | 320 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Variable stock compensation | 959 |
| | — |
| | 0.01 |
| | 1,103 |
| | — |
| | 0.01 |
|
| Pre-opening costs, net of noncontrolling interests | 110 |
| | — |
| | — |
| | 2,925 |
| | — |
| | 0.03 |
|
| Adjusted FFO | $ | 21,825 |
| | 144,047 |
| | $ | 0.15 |
| | $ | 18,495 |
| | 125,764 |
| | $ | 0.15 |
|
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 17
Reconciliation of Net Income (Loss) to FFO and Adjusted FFO
(in thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2015 | 2014 |
| | Dollars | | Shares | | Per Share Amount | | Dollars | | Shares | | Per Share Amount |
| Net income (loss) | $ | (3,465 | ) | | | | | | $ | 94,152 |
| | | | |
| Noncontrolling interests | (3,963 | ) | | | | | | (834 | ) | | | | |
| Preferred distributions - consolidated joint venture | (1,437 | ) | | | | | | (1,219 | ) | | | | |
| Redemption of preferred stock | (6,096 | ) | | | | | | — |
| | | | |
| Preferred dividends | (30,138 | ) | | | | | | (38,712 | ) | | | | |
| Net income (loss) attributable to FelCor common stockholders | (45,099 | ) | | | | | | 53,387 |
| | | | |
| Less: Dividends declared on unvested restricted stock | (56 | ) | | | | | | (8 | ) | | | | |
| Less: Undistributed earnings allocated to unvested restricted stock | — |
| | | | | | (20 | ) | | | | |
| Basic earnings per share data | (45,155 | ) | | 137,730 |
| | $ | (0.33 | ) | | 53,359 |
| | 124,158 |
| | $ | 0.43 |
|
| Restricted stock units | — |
| | — |
| | — |
| | — |
| | 734 |
| | — |
|
| Diluted earnings per share data | (45,155 | ) | | 137,730 |
| | (0.33 | ) | | 53,359 |
| | 124,892 |
| | 0.43 |
|
| Depreciation and amortization | 114,452 |
| | — |
| | 0.83 |
| | 115,819 |
| | — |
| | 0.93 |
|
| Depreciation, unconsolidated entities and other partnerships | 2,211 |
| | — |
| | 0.02 |
| | 6,891 |
| | — |
| | 0.06 |
|
| Gain on sale of investment in unconsolidated entities, net | — |
| | — |
| | — |
| | (30,176 | ) | | — |
| | (0.24 | ) |
| Gain from remeasurement of unconsolidated entities | — |
| | — |
| | — |
| | (20,737 | ) | | — |
| | (0.17 | ) |
| Other gains, net | (100 | ) | | — |
| | — |
| | (100 | ) | | — |
| | — |
|
| Impairment loss | 20,861 |
| | — |
| | 0.15 |
| | — |
| | — |
| | — |
|
| Gain on sale of hotel in unconsolidated entity | (7,126 | ) | | — |
| | (0.05 | ) | | — |
| | — |
| | — |
|
| Gain on sale of hotels, net of noncontrolling interests in other partnerships | (15,096 | ) | | — |
| | (0.12 | ) | | (65,453 | ) | | — |
| | (0.52 | ) |
| Noncontrolling interests in FelCor LP | (194 | ) | | 611 |
| | — |
| | 137 |
| | 614 |
| | (0.01 | ) |
| Dividends declared on unvested restricted stock | 56 |
| | — |
| | — |
| | 8 |
| | — |
| | — |
|
| Conversion of unvested restricted stock and units | — |
| | 492 |
| | — |
| | 20 |
| | 5 |
| | — |
|
| FFO | 69,909 |
| | 138,833 |
| | 0.50 |
| | 59,768 |
| | 125,511 |
| | 0.48 |
|
| Hurricane and earthquake loss | — |
| | — |
| | — |
| | 348 |
| | — |
| | — |
|
| Debt extinguishment, including discontinued operations, net of noncontrolling interests | 30,909 |
| | — |
| | 0.22 |
| | 4,850 |
| | — |
| | 0.03 |
|
| Debt extinguishment, unconsolidated entities | 330 |
| | — |
| | — |
| | 168 |
| | — |
| | — |
|
| Severance costs | 3,667 |
| | — |
| | 0.03 |
| | 928 |
| | — |
| | 0.01 |
|
| Abandoned projects | 320 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Variable stock compensation | 798 |
| | — |
| | 0.01 |
| | 2,723 |
| | — |
| | 0.02 |
|
| Redemption of preferred stock | 6,096 |
| | — |
| | 0.05 |
| | — |
| | — |
| | — |
|
| Contract dispute contingency | — |
| | — |
| | — |
| | 5,850 |
| | — |
| | 0.05 |
|
| Contract dispute recovery | (3,717 | ) | | — |
| | (0.03 | ) | | — |
| | — |
| | — |
|
| Pre-opening costs, net of noncontrolling interests | 5,235 |
| | — |
| | 0.04 |
| | 7,530 |
| | — |
| | 0.06 |
|
| Lease adjustment | 1,628 |
| | — |
| | 0.01 |
| | — |
| | — |
| | — |
|
| Adjusted FFO | $ | 115,175 |
| | 138,833 |
|
| $ | 0.83 |
|
| $ | 82,165 |
|
| 125,511 |
|
| $ | 0.65 |
|
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 18
Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA and Same-store Adjusted EBITDA
(in thousands)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended |
| | December 31, | | December 31, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| Net income (loss) | $ | (4,081 | ) | | $ | 10,463 |
| | $ | (3,465 | ) | | $ | 94,152 |
|
| Depreciation and amortization | 28,942 |
| | 28,613 |
| | 114,452 |
| | 115,819 |
|
| Depreciation, unconsolidated entities and other partnerships | 480 |
| | 496 |
| | 2,211 |
| | 6,891 |
|
| Interest expense | 19,764 |
| | 19,058 |
| | 79,142 |
| | 90,743 |
|
| Interest expense, discontinued operations and unconsolidated entities | 82 |
| | 216 |
| | 521 |
| | 1,896 |
|
| Income taxes | (147 | ) | | — |
| | 1,245 |
| | — |
|
| Noncontrolling interests in preferred distributions, consolidated joint venture | (71 | ) | | — |
| | (71 | ) | | — |
|
| Noncontrolling interests in other partnerships | 248 |
| | 133 |
| | (4,157 | ) | | (697 | ) |
| EBITDA | 45,217 |
| | 58,979 |
| | 189,878 |
| | 308,804 |
|
| Impairment loss | — |
| | — |
| | 20,861 |
| | — |
|
| Hurricane and earthquake loss | — |
| | 348 |
| | — |
| | 348 |
|
| Debt extinguishment, including discontinued operations, net of noncontrolling interests | — |
| | 7 |
| | 30,909 |
| | 4,850 |
|
| Debt extinguishment, unconsolidated entities | — |
| | 13 |
| | 330 |
| | 168 |
|
| Gain on sale of hotel in unconsolidated entity | (14 | ) | | — |
| | (7,126 | ) | | — |
|
| Gain on sale of hotels, net of noncontrolling interests in other partnerships | (165 | ) | | (15,682 | ) | | (15,096 | ) | | (65,453 | ) |
| Gain on sale of investment in unconsolidated entities, net | — |
| | 8 |
| | — |
| | (30,176 | ) |
| Gain from remeasurement of unconsolidated entities | — |
| | (4 | ) | | — |
| | (20,737 | ) |
| Other gains, net | — |
| | — |
| | (100 | ) | | (100 | ) |
| Amortization of fixed stock and directors’ compensation | 1,907 |
| | 1,631 |
| | 7,121 |
| | 6,122 |
|
| Severance costs | 43 |
| | 99 |
| | 3,667 |
| | 928 |
|
| Lease adjustment | 1,628 |
| | — |
| | 1,628 |
| | — |
|
| Abandoned projects | 320 |
| | — |
| | 320 |
| | — |
|
| Variable stock compensation | 959 |
| | 1,103 |
| | 798 |
| | 2,723 |
|
| Contract dispute contingency | — |
| | — |
| | — |
| | 5,850 |
|
| Contract dispute recovery | — |
| | — |
| | (3,717 | ) | | — |
|
| Pre-opening costs, net of noncontrolling interests | 110 |
| | 2,925 |
| | 5,235 |
| | 7,530 |
|
| Adjusted EBITDA | 50,005 |
| | 49,427 |
| | 234,708 |
| | 220,857 |
|
| Adjusted EBITDA from hotels disposed, held for sale and recently opened | 359 |
| | (4,778 | ) | | (6,488 | ) | | (27,509 | ) |
| Same-store Adjusted EBITDA | $ | 50,364 |
| | $ | 44,649 |
| | $ | 228,220 |
| | $ | 193,348 |
|
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 19
Hotel EBITDA and Hotel EBITDA Margin
(dollars in thousands)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended |
| | December 31, | | December 31, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| Same-store operating revenue: | | | | | | | |
| Room | $ | 146,516 |
| | $ | 139,061 |
| | $ | 629,186 |
| | $ | 581,932 |
|
| Food and beverage | 40,415 |
| | 35,622 |
| | 150,950 |
| | 136,588 |
|
| Other operating departments | 11,808 |
| | 10,357 |
| | 45,655 |
| | 42,352 |
|
Same-store operating revenue(a) | 198,739 |
| | 185,040 |
| | 825,791 |
| | 760,872 |
|
| Same-store operating expense: | | | | | | | |
| Room | 39,064 |
| | 37,863 |
| | 159,095 |
| | 152,782 |
|
| Food and beverage | 29,598 |
| | 26,562 |
| | 114,673 |
| | 105,565 |
|
| Other operating departments | 4,135 |
| | 4,558 |
| | 17,140 |
| | 19,678 |
|
| Other property related costs | 50,478 |
| | 47,726 |
| | 205,846 |
| | 191,107 |
|
| Management and franchise fees | 8,003 |
| | 6,233 |
| | 33,341 |
| | 28,726 |
|
| Taxes, insurance and lease expense | 12,383 |
| | 12,242 |
| | 49,539 |
| | 50,474 |
|
Same-store operating expense(a) | 143,661 |
| | 135,184 |
| | 579,634 |
| | 548,332 |
|
| Hotel EBITDA | $ | 55,078 |
| | $ | 49,856 |
| | $ | 246,157 |
| | $ | 212,540 |
|
| Hotel EBITDA Margin | 27.7 | % | | 26.9 | % | | 29.8 | % | | 27.9 | % |
| |
| (a) | Excludes The Knickerbocker, which opened in February 2015. |
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 20
The following tables set forth the components of our Hotel EBITDA for our same-store hotels (in thousands): |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, 2015 |
| Same-store Hotels | | 2015 Hotel Operating Revenue | | Net Income (Loss) | | Other Adjustments | | Depreciation | | Interest Expense | | 2015 Hotel EBITDA | | Hotel EBITDA Margin |
| Embassy Suites Atlanta-Buckhead | | $ | 14,923 |
| | $ | 3,534 |
| | $ | — |
| | | $ | 2,573 |
| | $ | — |
| | $ | 6,107 |
| | 40.9 | % |
| DoubleTree Suites by Hilton Austin | | 14,739 |
| | 3,855 |
| | — |
| | | 1,953 |
| | 424 |
| | 6,232 |
| | 42.3 | % |
| Embassy Suites Birmingham | | 10,019 |
| | 932 |
| | 2 |
| | | 1,567 |
| | 1,208 |
| | 3,709 |
| | 37.0 | % |
| The Fairmont Copley Plaza, Boston | | 58,136 |
| | 2,894 |
| | — |
| | | 8,677 |
| | 1,084 |
| | 12,655 |
| | 21.8 | % |
| Wyndham Boston Beacon Hill | | 23,463 |
| | 5,295 |
| | (4 | ) | | | 4,028 |
| | — |
| | 9,319 |
| | 39.7 | % |
| Embassy Suites Boston-Marlborough | | 12,086 |
| | 2,837 |
| | — |
| | | 1,163 |
| | — |
| | 4,000 |
| | 33.1 | % |
| Sheraton Burlington Hotel & Conference Center | | 14,486 |
| | 1,792 |
| | — |
| | | 2,416 |
| | — |
| | 4,208 |
| | 29.0 | % |
| The Mills House Wyndham Grand Hotel, Charleston | | 19,548 |
| | 4,395 |
| | 22 |
| | | 2,496 |
| | 900 |
| | 7,813 |
| | 40.0 | % |
| Embassy Suites Dallas-Love Field | | 12,122 |
| | 2,510 |
| | — |
| | | 1,354 |
| | — |
| | 3,864 |
| | 31.9 | % |
| Embassy Suites Deerfield Beach-Resort & Spa | | 18,377 |
| | 3,047 |
| | — |
| | | 2,055 |
| | 1,615 |
| | 6,717 |
| | 36.6 | % |
Embassy Suites Fort Lauderdale 17th Street | | 22,332 |
| | 2,532 |
| | 2 |
| | | 2,939 |
| | 1,817 |
| | 7,290 |
| | 32.6 | % |
| Wyndham Houston-Medical Center Hotel & Suites | | 14,401 |
| | 3,941 |
| | (70 | ) | | | 2,164 |
| | 214 |
| | 6,249 |
| | 43.4 | % |
| Renaissance Esmeralda Indian Wells Resort & Spa | | 41,003 |
| | (18,554 | ) | | 20,863 |
| (1) | | 3,569 |
| | — |
| | 5,878 |
| | 14.3 | % |
| Embassy Suites Los Angeles-International Airport/South | | 19,925 |
| | 4,896 |
| | — |
| | | 2,610 |
| | 636 |
| | 8,142 |
| | 40.9 | % |
| Embassy Suites Mandalay Beach-Hotel & Resort | | 19,897 |
| | 4,048 |
| | 24 |
| | | 3,176 |
| | 380 |
| | 7,628 |
| | 38.3 | % |
| Embassy Suites Miami-International Airport | | 18,725 |
| | 2,804 |
| | 20 |
| | | 1,945 |
| | 315 |
| | 5,084 |
| | 27.2 | % |
| Embassy Suites Milpitas-Silicon Valley | | 18,295 |
| | 5,845 |
| | — |
| | | 1,230 |
| | — |
| | 7,075 |
| | 38.7 | % |
| Embassy Suites Minneapolis-Airport | | 13,809 |
| | 1,316 |
| | 1 |
| | | 1,832 |
| | 1,920 |
| | 5,069 |
| | 36.7 | % |
| Embassy Suites Myrtle Beach-Oceanfront Resort | | 22,277 |
| | 3,077 |
| | 25 |
| | | 2,854 |
| | 376 |
| | 6,332 |
| | 28.4 | % |
| Hilton Myrtle Beach Resort | | 21,434 |
| | 3,940 |
| | — |
| | | 3,373 |
| | — |
| | 7,313 |
| | 34.1 | % |
| Embassy Suites Napa Valley | | 17,145 |
| | 3,608 |
| | (25 | ) | | | 2,075 |
| | 1,403 |
| | 7,061 |
| | 41.2 | % |
| Holiday Inn Nashville Airport | | 12,686 |
| | 321 |
| | 12 |
| | | 2,492 |
| | — |
| | 2,825 |
| | 22.3 | % |
| Wyndham New Orleans-French Quarter | | 16,627 |
| | 3,586 |
| | 537 |
| | | 2,852 |
| | 529 |
| | 7,504 |
| | 45.1 | % |
| Morgans New York | | 10,345 |
| | (2,281 | ) | | — |
| | | 2,482 |
| | — |
| | 201 |
| | 1.9 | % |
| Royalton New York | | 20,874 |
| | (1,388 | ) | | — |
| | | 2,270 |
| | — |
| | 882 |
| | 4.2 | % |
| Embassy Suites Orlando-International Drive South/Convention Center | | 11,229 |
| | 2,521 |
| | — |
| | | 1,100 |
| | — |
| | 3,621 |
| | 32.2 | % |
| DoubleTree Suites by Hilton Orlando-Lake Buena Vista | | 12,683 |
| | 295 |
| | — |
| | | 3,166 |
| | — |
| | 3,461 |
| | 27.3 | % |
| Wyndham Philadelphia Historic District | | 17,571 |
| | 2,131 |
| | 17 |
| | | 3,087 |
| | 293 |
| | 5,528 |
| | 31.5 | % |
| Sheraton Philadelphia Society Hill Hotel | | 25,204 |
| | 2,697 |
| | — |
| | | 3,979 |
| | — |
| | 6,676 |
| | 26.5 | % |
| Embassy Suites Phoenix-Biltmore | | 11,155 |
| | 1,590 |
| | 276 |
| | | 1,825 |
| | 279 |
| | 3,970 |
| | 35.6 | % |
| Wyndham Pittsburgh University Center | | 12,004 |
| | (220 | ) | | 1,644 |
| (2) | | 2,119 |
| | 256 |
| | 3,799 |
| | 31.6 | % |
| Wyndham San Diego Bayside | | 31,717 |
| | 2,087 |
| | — |
| | | 6,400 |
| | — |
| | 8,487 |
| | 26.8 | % |
| Embassy Suites San Francisco Airport-South San Francisco | | 24,471 |
| | 7,476 |
| | — |
| | | 1,625 |
| | — |
| | 9,101 |
| | 37.2 | % |
| Embassy Suites San Francisco Airport-Waterfront | | 26,572 |
| | 10,047 |
| | (3,717 | ) | (3) | | 2,979 |
| | — |
| | 9,309 |
| | 35.0 | % |
| Holiday Inn San Francisco-Fisherman’s Wharf | | 43,067 |
| | 5,972 |
| | — |
| | | 1,678 |
| | — |
| | 7,650 |
| | 17.8 | % |
| San Francisco Marriott Union Square | | 42,321 |
| | 5,698 |
| | 1,061 |
| (4) | | 5,655 |
| | 2,472 |
| | 14,886 |
| | 35.2 | % |
| Wyndham Santa Monica At the Pier | | 11,293 |
| | 3,962 |
| | 24 |
| | | 1,137 |
| | 812 |
| | 5,935 |
| | 52.6 | % |
Embassy Suites Secaucus-Meadowlands(a) | | 14,127 |
| | 2,508 |
| | 6 |
| | | 722 |
| | — |
| | 3,236 |
| | 22.9 | % |
| The Vinoy Renaissance St. Petersburg Resort & Golf Club | | 54,703 |
| | 4,622 |
| | 2 |
| | | 5,790 |
| | 927 |
| | 11,341 |
| | 20.7 | % |
| | | $ | 825,791 |
| | $ | 100,168 |
| | $ | 20,722 |
| | | $ | 107,407 |
| | $ | 17,860 |
| | $ | 246,157 |
| | 29.8 | % |
*Footnotes on Page 22 -more-
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 21
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, 2014 |
| Same-store Hotels | | 2014 Hotel Operating Revenue | | Net Income (Loss) | | Other Adjustments | | Depreciation | | Interest Expense | | 2014 Hotel EBITDA | | Hotel EBITDA Margin |
| Embassy Suites Atlanta-Buckhead | | $ | 13,898 |
| | $ | 2,972 |
| | $ | — |
| | | $ | 2,727 |
| | $ | — |
| | $ | 5,699 |
| | 41.0 | % |
| DoubleTree Suites by Hilton Austin | | 13,934 |
| | 4,077 |
| | 9 |
| | | 1,949 |
| | 139 |
| | 6,174 |
| | 44.3 | % |
| Embassy Suites Birmingham | | 9,493 |
| | 554 |
| | 1 |
| | | 1,682 |
| | 1,227 |
| | 3,464 |
| | 36.5 | % |
| The Fairmont Copley Plaza, Boston | | 53,447 |
| | 1,431 |
| | — |
| | | 8,577 |
| | — |
| | 10,008 |
| | 18.7 | % |
| Wyndham Boston Beacon Hill | | 21,236 |
| | 4,251 |
| | — |
| | | 4,084 |
| | — |
| | 8,335 |
| | 39.2 | % |
| Embassy Suites Boston-Marlborough | | 10,982 |
| | 2,173 |
| | — |
| | | 1,311 |
| | — |
| | 3,484 |
| | 31.7 | % |
| Sheraton Burlington Hotel & Conference Center | | 14,840 |
| | 2,227 |
| | — |
| | | 1,972 |
| | — |
| | 4,199 |
| | 28.3 | % |
| The Mills House Wyndham Grand Hotel, Charleston | | 17,252 |
| | 3,739 |
| | — |
| | | 2,247 |
| | 866 |
| | 6,852 |
| | 39.7 | % |
| Embassy Suites Dallas-Love Field | | 10,501 |
| | 1,772 |
| | — |
| | | 1,278 |
| | — |
| | 3,050 |
| | 29.0 | % |
| Embassy Suites Deerfield Beach-Resort & Spa | | 17,249 |
| | 1,672 |
| | (1 | ) | | | 2,722 |
| | 1,640 |
| | 6,033 |
| | 35.0 | % |
Embassy Suites Fort Lauderdale 17th Street | | 20,124 |
| | 1,133 |
| | 1 |
| | | 3,129 |
| | 1,846 |
| | 6,109 |
| | 30.4 | % |
| Wyndham Houston-Medical Center Hotel & Suites | | 12,394 |
| | 2,849 |
| | (88 | ) | | | 2,169 |
| | 540 |
| | 5,470 |
| | 44.1 | % |
| Renaissance Esmeralda Indian Wells Resort & Spa | | 38,881 |
| | 1,326 |
| | 2 |
| | | 3,327 |
| | — |
| | 4,655 |
| | 12.0 | % |
| Embassy Suites Los Angeles-International Airport/South | | 18,091 |
| | 4,429 |
| | — |
| | | 2,507 |
| | — |
| | 6,936 |
| | 38.3 | % |
| Embassy Suites Mandalay Beach-Hotel & Resort | | 18,645 |
| | 2,515 |
| | — |
| | | 3,273 |
| | 956 |
| | 6,744 |
| | 36.2 | % |
| Embassy Suites Miami-International Airport | | 18,186 |
| | 1,904 |
| | — |
| | | 2,161 |
| | 796 |
| | 4,861 |
| | 26.7 | % |
| Embassy Suites Milpitas-Silicon Valley | | 15,825 |
| | 4,181 |
| | — |
| | | 1,513 |
| | — |
| | 5,694 |
| | 36.0 | % |
| Embassy Suites Minneapolis-Airport | | 13,864 |
| | 1,305 |
| | 1 |
| | | 1,908 |
| | 1,950 |
| | 5,164 |
| | 37.2 | % |
| Embassy Suites Myrtle Beach-Oceanfront Resort | | 21,425 |
| | 2,343 |
| | (1 | ) | | | 3,095 |
| | 424 |
| | 5,861 |
| | 27.4 | % |
| Hilton Myrtle Beach Resort | | 19,721 |
| | 2,852 |
| | — |
| | | 3,503 |
| | — |
| | 6,355 |
| | 32.2 | % |
| Embassy Suites Napa Valley | | 15,434 |
| | 2,255 |
| | 349 |
| | | 2,071 |
| | 1,426 |
| | 6,101 |
| | 39.5 | % |
| Holiday Inn Nashville Airport | | 11,772 |
| | 196 |
| | — |
| | | 2,004 |
| | — |
| | 2,200 |
| | 18.7 | % |
| Wyndham New Orleans-French Quarter | | 13,795 |
| | 2,965 |
| | — |
| | | 2,092 |
| | 477 |
| | 5,534 |
| | 40.1 | % |
| Morgans New York | | 11,351 |
| | (1,716 | ) | | 243 |
| | | 2,367 |
| | — |
| | 894 |
| | 7.9 | % |
| Royalton New York | | 22,542 |
| | (134 | ) | | 371 |
| | | 2,182 |
| | — |
| | 2,419 |
| | 10.7 | % |
| Embassy Suites Orlando-International Drive South/Convention Center | | 10,923 |
| | 2,379 |
| | — |
| | | 1,291 |
| | — |
| | 3,670 |
| | 33.6 | % |
| DoubleTree Suites by Hilton Orlando-Lake Buena Vista | | 11,725 |
| | (367 | ) | | — |
| | | 3,316 |
| | — |
| | 2,949 |
| | 25.2 | % |
| Wyndham Philadelphia Historic District | | 13,863 |
| | (606 | ) | | — |
| | | 3,077 |
| | 737 |
| | 3,208 |
| | 23.1 | % |
| Sheraton Philadelphia Society Hill Hotel | | 24,846 |
| | 2,171 |
| | — |
| | | 4,249 |
| | — |
| | 6,420 |
| | 25.8 | % |
| Embassy Suites Phoenix-Biltmore | | 10,053 |
| | 557 |
| | 6 |
| | | 2,153 |
| | 563 |
| | 3,279 |
| | 32.6 | % |
| Wyndham Pittsburgh University Center | | 10,912 |
| | 201 |
| | — |
| | | 2,127 |
| | 644 |
| | 2,972 |
| | 27.2 | % |
| Wyndham San Diego Bayside | | 25,291 |
| | (403 | ) | | — |
| | | 5,680 |
| | — |
| | 5,277 |
| | 20.9 | % |
| Embassy Suites San Francisco Airport-South San Francisco | | 21,661 |
| | 5,996 |
| | — |
| | | 1,726 |
| | — |
| | 7,722 |
| | 35.6 | % |
| Embassy Suites San Francisco Airport-Waterfront | | 21,936 |
| | (1,283 | ) | | 5,850 |
| (5) | | 2,585 |
| | — |
| | 7,152 |
| | 32.6 | % |
| Holiday Inn San Francisco-Fisherman’s Wharf | | 39,736 |
| | 5,544 |
| | — |
| | | 1,220 |
| | — |
| | 6,764 |
| | 17.0 | % |
| San Francisco Marriott Union Square | | 40,526 |
| | 5,435 |
| | (102 | ) | | | 5,739 |
| | 1,054 |
| | 12,126 |
| | 29.9 | % |
| Wyndham Santa Monica At the Pier | | 10,603 |
| | 3,473 |
| | — |
| | | 1,056 |
| | 936 |
| | 5,465 |
| | 51.5 | % |
Embassy Suites Secaucus-Meadowlands(a) | | 14,560 |
| | 3,212 |
| | (11 | ) | | | 742 |
| | — |
| | 3,943 |
| | 27.1 | % |
| The Vinoy Renaissance St. Petersburg Resort & Golf Club | | 49,355 |
| | 2,790 |
| | 1 |
| | | 6,507 |
| | — |
| | 9,298 |
| | 18.8 | % |
| | | $ | 760,872 |
| | $ | 82,370 |
| | $ | 6,631 |
| | | $ | 107,318 |
| | $ | 16,221 |
| | $ | 212,540 |
| | 27.9 | % |
*Footnotes on Page 22
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 22
The following are footnotes to the Hotel EBITDA tables on page 20 and 21:
(1) Amount primarily represents an impairment resulting from a reduced estimated hold period for this hotel.
(2) Amount represents an adjustment to straight-line lease expense from prior years for a ground lease associated with this hotel.
(3) Amount represents net revenue attributable to a favorable settlement of a commercial contract dispute.
(4) Amount primarily represents debt extinguishment charges.
(5) Amount represents charges incurred for a commercial contract dispute contingency, a portion of which was recovered in 2015.
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 23
Reconciliation of Same-store Operating Revenue and Same-store Operating Expense to Total Revenue, Total Operating Expense and Operating Income
(in thousands)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended |
| | December 31, | | December 31, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| Same-store operating revenue | $ | 198,739 |
| | $ | 185,040 |
| | $ | 825,791 |
| | $ | 760,872 |
|
| Other revenue | 741 |
| | 436 |
| | 7,883 |
| | 3,606 |
|
Revenue from hotels disposed, held for sale and recently opened(a) | 6,824 |
| | 21,191 |
| | 52,580 |
| | 157,109 |
|
| Total revenue | 206,304 |
| | 206,667 |
| | 886,254 |
| | 921,587 |
|
| Same-store operating expense | 143,661 |
| | 135,184 |
| | 579,634 |
| | 548,332 |
|
Consolidated hotel lease expense(b) | 1,345 |
| | 2,412 |
| | 7,107 |
| | 31,635 |
|
| Unconsolidated taxes, insurance and lease expense | (512 | ) | | (817 | ) | | (2,194 | ) | | (6,163 | ) |
| Lease adjustment | 1,628 |
| | — |
| | 1,628 |
| | — |
|
| Corporate expenses | 7,508 |
| | 7,671 |
| | 27,283 |
| | 29,585 |
|
| Depreciation and amortization | 28,942 |
| | 28,613 |
| | 114,452 |
| | 115,819 |
|
| Impairment loss | — |
| | — |
| | 20,861 |
| | — |
|
Expenses from hotels disposed, held for sale and recently opened(a) | 7,205 |
| | 15,706 |
| | 45,291 |
| | 116,575 |
|
| Other expenses | 1,033 |
| | 4,078 |
| | 12,479 |
| | 17,952 |
|
| Total operating expense | 190,810 |
| | 192,847 |
|
| 806,541 |
|
| 853,735 |
|
| Operating income | $ | 15,494 |
| | $ | 13,820 |
| | $ | 79,713 |
| | $ | 67,852 |
|
| |
| (a) | Under GAAP accounting guidance adopted in 2014, we include the operating performance for hotels in continuing operations in our Consolidated Statements of Operations. However, for purposes of our Non-GAAP reporting metrics, we have excluded the results of these hotels to provide a meaningful same-store comparison. |
| |
| (b) | Consolidated hotel lease expense represents the percentage lease expense of our 51% owned operating lessees. The offsetting percentage lease revenue is included in equity in income from unconsolidated entities. |
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 24
Reconciliation of Forecasted Net Income Attributable to FelCor to Forecasted Adjusted FFO
and Adjusted EBITDA
(in millions, except per share data)
|
| | | | | | | | | | | | | | | |
| | Full Year 2016 Guidance |
| | Low | | High |
| | Dollars | | Per Share Amount(a) | | Dollars | | Per Share Amount(a) |
Net income attributable to FelCor(b) | $ | 35.6 |
| | | | $ | 49.0 |
| | |
| Preferred dividends | (25.1 | ) | | | | (25.1 | ) | | |
| Net income attributable to FelCor common stockholders | 10.5 |
| | $ | 0.07 |
| | 23.9 |
| | $ | 0.17 |
|
Depreciation(c) | 115.2 |
| | | | 115.2 |
| | |
| Noncontrolling interests in FelCor LP | 0.7 |
| | | | 0.7 |
| | |
| FFO and Adjusted FFO | $ | 126.4 |
| | $ | 0.90 |
| | $ | 139.8 |
| | $ | 0.99 |
|
| | | | | | | | |
Net income attributable to FelCor(b) | $ | 35.6 |
| | | | $ | 49.0 |
| | |
Depreciation(c) | 115.2 |
| | | | 115.2 |
| | |
Interest expense(c) | 77.0 |
| | | | 81.6 |
| | |
| Income taxes | 1.2 |
| | | | 1.2 |
| | |
| Preferred distributions - consolidated joint venture | 1.1 |
| | | | 1.1 |
| | |
| Noncontrolling interests in FelCor LP | 0.7 |
| | | | 0.7 |
| | |
| EBITDA | $ | 230.8 |
| | | | $ | 248.8 |
| | |
| Amortization of stock compensation | 7.2 |
| | | | 7.2 |
| | |
| Adjusted EBITDA | $ | 238.0 |
| | | | $ | 256.0 |
| | |
| |
| (a) | Weighted average shares are 141.0 million. |
| |
| (b) | Excludes any gains or losses on future asset or capital transactions. |
| |
| (c) | Includes pro rata portion of unconsolidated entities. |
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 25
Substantially all of our non-current assets consist of real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to be helpful in evaluating a real estate company’s operations. These supplemental measures are not measures of operating performance under GAAP. However, we consider these non-GAAP measures to be supplemental measures of a hotel REIT’s performance and should be considered along with, but not as an alternative to, net income (loss) attributable to FelCor as a measure of our operating performance.
FFO and EBITDA
The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”) as net income or loss attributable to parent (computed in accordance with GAAP), excluding gains or losses from sales of property, plus depreciation, amortization and impairment losses. FFO for unconsolidated partnerships and joint ventures are calculated on the same basis. We compute FFO in accordance with standards established by NAREIT. This may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) is a commonly used measure of performance in many industries. We define EBITDA as net income or loss attributable to parent (computed in accordance with GAAP) plus interest expenses, income taxes, depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect EBITDA on the same basis.
Adjustments to FFO and EBITDA
We adjust FFO and EBITDA when evaluating our performance because management believes that the exclusion of certain additional items provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted FFO, and Adjusted EBITDA when combined with GAAP net income attributable to FelCor, EBITDA and FFO, is beneficial to an investor’s better understanding of our operating performance.
| |
| • | Gains and losses related to extinguishment of debt and interest rate swaps - We exclude gains and losses related to extinguishment of debt and interest rate swaps from FFO and EBITDA because we believe that it is not indicative of ongoing operating performance of our hotel assets. This also represents an acceleration of interest expense or a reduction of interest expense, and interest expense is excluded from EBITDA. |
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 26
| |
| • | Cumulative effect of a change in accounting principle - Infrequently, the Financial Accounting Standards Board promulgates new accounting standards that require the consolidated statements of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments in computing Adjusted FFO and Adjusted EBITDA because they do not reflect our actual performance for that period. |
| |
| • | Other expenses and costs - From time to time, we periodically incur expenses or transaction costs that are not indicative of ongoing operating performance. Such costs include, but are not limited to, conversion costs, acquisition costs, pre-opening costs, severance costs and certain non-cash adjustments. We exclude these costs from the calculation of Adjusted FFO and Adjusted EBITDA. |
| |
| • | Variable stock compensation - We exclude the cost associated with our variable stock compensation. This cost is subject to volatility related to the price and dividends of our common stock that does not necessarily correspond to our operating performance. |
In addition, to derive Adjusted EBITDA, we exclude gains or losses on the sale of depreciable assets and impairment losses because including them in EBITDA is inconsistent with reporting the ongoing performance of our remaining assets. Additionally, the gain or loss on sale of depreciable assets and impairment losses represents either accelerated depreciation or excess depreciation in previous periods, and depreciation is excluded from EBITDA. We also exclude the amortization of our fixed stock and directors’ compensation, which is included in corporate expenses and is not separately stated on our statements of operations. Excluding amortization of our fixed stock and directors’ compensation maintains consistency with the EBITDA definition.
Hotel EBITDA and Hotel EBITDA Margin
Hotel EBITDA and Hotel EBITDA margin are commonly used measures of performance in the hotel industry and give investors a more complete understanding of the operating results over which our individual hotels and brand/managers have direct control. We believe that Hotel EBITDA and Hotel EBITDA margin are useful to investors by providing greater transparency with respect to two significant measures that we use in our financial and operational decision-making. Additionally, using these measures facilitates comparisons with other hotel REITs and hotel owners. We present Hotel EBITDA and Hotel EBITDA margin in a manner consistent with Adjusted EBITDA, however, we also eliminate all revenues and expenses from continuing operations not directly associated with hotel operations, including other income and corporate-level expenses. We eliminate these additional items because we believe property-level results provide investors with supplemental information into the ongoing operational performance of our hotels and the effectiveness of management on a property-level basis. We also eliminate consolidated percentage rent paid to unconsolidated entities, which is effectively eliminated by noncontrolling interests and equity in income from unconsolidated subsidiaries, and include the cost of unconsolidated taxes, insurance and lease expense, to reflect the entire operating costs applicable to our consolidated hotels. Hotel EBITDA and Hotel EBITDA margins are presented on a same-store basis.
FelCor Lodging Trust Incorporated Fourth Quarter 2015 Operating Results
February 25, 2016
Page 27
Use and Limitations of Non-GAAP Measures
We use FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-store Adjusted EBITDA, Hotel EBITDA and Hotel EBITDA margin to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. We use Hotel EBITDA and Hotel EBITDA margin in evaluating hotel-level performance and the operating efficiency of our hotel managers.
The use of these non-GAAP financial measures has certain limitations. As we present them, these non-GAAP financial measures may not be comparable to similar non-GAAP financial measures as presented by other real estate companies. These measures do not reflect certain expenses or expenditures that we incurred and will incur, such as depreciation, interest and capital expenditures. We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable GAAP financial measures, and our consolidated statements of operations and cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures.
These non-GAAP financial 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.
