EXHIBIT 99.2
HOSPITALITY PROPERTIES TRUST
First Quarter 2006
Supplemental Operating and Financial Data
Unless otherwise noted all amounts in this report are unaudited.
TABLE OF CONTENTS
|
| Page |
|
|
|
CORPORATE INFORMATION |
|
|
|
|
|
Company Profile |
| 5 |
Investor Information |
| 6 |
Research Coverage |
| 7 |
|
|
|
FINANCIAL INFORMATION |
|
|
|
|
|
Key Financial Data |
| 9 |
Consolidated Balance Sheet |
| 10 |
Consolidated Statement of Income |
| 11 |
Consolidated Statement of Cash Flows |
| 12 |
Calculation of EBITDA |
| 13 |
Calculation of Funds from Operations (FFO) |
| 14 |
Debt Summary |
| 15 |
Debt Maturity Schedule |
| 16 |
Leverage Ratios, Coverage Ratios and Public Debt Covenants |
| 17 |
FF&E Reserve Escrows |
| 18 |
2006 Acquisitions and Dispositions Information |
| 19 |
2006 Financing Activities |
| 20 |
|
|
|
OPERATING AGREEMENTS AND PORTFOLIO INFORMATION |
|
|
|
|
|
Summary of Operating Agreements |
| 22 |
Portfolio by Operating Agreement, Manager and Brand |
| 23 |
Operating Statistics by Operating Agreement |
| 24 |
Coverage by Operating Agreement |
| 25 |
Operating Agreement Expiration Schedule |
| 26 |
2
WARNING REGARDING FORWARD LOOKING STATEMENTS
THIS SUPPLEMENTAL OPERATING AND FINANCIAL DATA REPORT CONTAINS STATEMENTS WHICH CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND FEDERAL SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS APPEAR IN A NUMBER OF PLACES IN THIS REPORT AND INCLUDE STATEMENTS REGARDING OUR INTENT, BELIEF OR EXPECTATION WITH RESPECT TO OUR OPERATORS’ OR TENANTS’ ABILITIES TO PAY RETURNS OR RENT TO US, OUR ABILITY TO PURCHASE ADDITIONAL PROPERTIES, OUR INTENT TO REFURBISH CERTAIN OF OUR PROPERTIES, OUR ABILITY TO PAY INTEREST AND DEBT PRINCIPAL AND MAKE DISTRIBUTIONS, OUR POLICIES AND PLANS REGARDING INVESTMENTS AND FINANCINGS, OUR TAX STATUS AS A REAL ESTATE INVESTMENT TRUST, OUR ABILITY TO APPROPRIATELY BALANCE THE USE OF DEBT AND EQUITY AND TO RAISE CAPITAL AND OTHER MATTERS. HOWEVER, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY THESE FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. SUCH FACTORS INCLUDE, WITHOUT LIMITATION, THE IMPACT OF CHANGES IN THE ECONOMY AND THE CAPITAL MARKETS (INCLUDING PREVAILING INTEREST RATES) ON US AND OUR OPERATORS AND TENANTS, COMPLIANCE WITH AND CHANGES TO LAWS AND REGULATIONS AFFECTING THE REAL ESTATE AND HOTEL INDUSTRIES, CHANGES IN FINANCING TERMS AND COMPETITION WITHIN THE REAL ESTATE AND HOTEL INDUSTRIES GENERALLY AND REITS SPECIFICALLY. FOR EXAMPLE: IF HOTEL ROOM DEMAND BECOMES DEPRESSED, THE OPERATING RESULTS OF OUR HOTELS MAY DECLINE, THE FINANCIAL RESULTS OF OUR OPERATORS AND TENANTS MAY DECLINE AND OUR OPERATORS AND TENANTS MAY BE UNABLE TO PAY OUR RETURNS OR RENTS. ALSO, WE MAY BE UNABLE TO IDENTIFY PROPERTIES WHICH WE WANT TO BUY OR TO NEGOTIATE ACCEPTABLE PURCHASE PRICES, MANAGEMENT AGREEMENTS OR LEASE TERMS FOR NEW PROPERTIES. THESE UNEXPECTED RESULTS COULD OCCUR DUE TO MANY DIFFERENT REASONS, SOME OF WHICH, SUCH AS NATURAL DISASTERS, TERRORIST ATTACKS OR CHANGES IN OUR OPERATORS’ OR TENANTS’ COSTS OR REVENUES OR CHANGES IN CAPITAL MARKETS OR THE ECONOMY GENERALLY, ARE BEYOND OUR CONTROL. IN ADDITION, THIS REPORT STATES THAT OUR PURCHASE OF THE HOLIDAY INN SUNSPREE RESORT® IN JAMAICA WAS DELAYED PENDING THIRD PARTY APPROVALS. THE REQUIRED THIRD PARTY APPROVAL IS FROM THE GOVERNMENT OF JAMAICA AND ITS RECEIPT IS NOT ASSURED. THIS APPROVAL REQUIREMENT MAY DELAY THIS PURCHASE FOR AN EXTENDED PERIOD OR PREVENT ITS OCCURRING. OTHER RISKS MAY ADVERSELY IMPACT US, AS DESCRIBED MORE FULLY IN OUR ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2005, UNDER “ITEM 1A. RISK FACTORS.” FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS. EXCEPT AS REQUIRED BY LAW, WE UNDERTAKE NO OBLIGATION TO RELEASE PUBLICLY THE RESULT OF ANY REVISION TO THESE FORWARD LOOKING STATEMENTS THAT MAY BE MADE TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE HEREOF OR TO REFLECT THE OCCURANCE OF UNANTICIPATED EVENTS.
CORPORATE INFORMATION
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
COMPANY PROFILE
The Company:
Hospitality Properties Trust is a real estate investment trust, or REIT, which owns hotels operated by unaffiliated hotel operating companies under long term management agreements and leases. As of March 31, 2006, we owned 307 hotels located in 38 states, Puerto Rico, and Canada, which are operated under eleven combination management or lease agreements. The largest combination agreement based upon investment includes 53 hotels with 7,610 rooms located in 24 states and the smallest combination includes 8 hotels with 2,188 rooms located in three states. We are the only investment grade rated, publicly owned lodging REIT in the Country and we are currently included in a number of financial indices, including the S&P 400 MidCap Index, the Russell 1000, the MSCI U.S. REIT index, the FTSE EPRA/NAREIT United States index and the S&P REIT Composite index.
Management:
Hospitality Properties Trust is managed by Reit Management & Research LLC (RMR). RMR was founded in 1986 to manage public investments in real estate. As of March 31, 2006, RMR managed one of the largest portfolios of publicly owned real estate in the United States, including approximately 980 properties, with approximately 89 million square feet, located in 42 states, Washington, DC, Puerto Rico and Ontario, Canada. RMR has approximately 400 employees in its headquarters and regional offices located throughout the Country. In addition to managing HPT, RMR and its affiliates also manage Senior Housing Properties Trust (SNH), a publicly traded REIT that owns senior living properties, HRPT Properties Trust (HRP), a publicly traded REIT that primarily owns office buildings and industrial properties and four mutual funds which invest in unaffiliated real estate companies. The public companies managed by RMR had combined total market capitalization of approximately $12.0 billion as of March 31, 2006. We believe that being managed by RMR is a competitive advantage for HPT because RMR provides HPT with a depth of management and experience which may be unequaled in the real estate industry. We also believe RMR provides management services to HPT at costs that are lower than HPT would have to pay for similar quality services.
Strategy:
Our business strategy is to maintain and grow an investment portfolio of high quality hotels operated by experienced hotel managers. Our hotels are managed or leased under long term agreements that provide us stable cash flows in the form of minimum returns and rents. We also seek to participate in operating improvements at our hotels by charging rent increases based upon percentages of gross revenue increases at our leased hotels and participating in hotel profits in excess of the minimum returns due to us at our managed hotels. We own hotels which operate in the upscale select service, extended stay and full service sectors. Generally, we prefer to purchase multiple hotels in one transaction because we believe a single operating agreement for multiple hotels in diverse locations enhances the stability of our cash flows. We have a conservative capital structure and limit the amount of debt financing we use. We do not have any investments in joint ventures or partnerships. Also, the majority of our debt is fixed rate and we have no significant debt maturities until 2008.
Stock Exchange Listing: |
| Corporate Headquarters: |
|
|
|
New York Stock Exchange |
| 400 Centre Street |
|
| Newton, MA 02458 |
Trading Symbol: |
| (t) (617) 964-8389 |
|
| (f) (617) 969-5730 |
Common Shares — HPT |
|
|
Preferred Shares Series B — HPT-B |
|
|
|
|
|
Senior Unsecured Debt Ratings: |
|
|
|
|
|
Standard & Poor’s — BBB |
|
|
Moody’s — Baa2 |
|
|
Portfolio Data by Manager (as of 3/31/06):
Manager |
| Number |
| Number |
| Percent of |
| Investment |
| Percent of |
| Annualized |
| Percent |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
InterContinental |
| 128 |
| 19,243 |
| 43% |
| $ | 1,657,158 |
| 44% |
| $ | 141,881 |
| 42% |
|
Marriott International |
| 125 |
| 17,926 |
| 40% |
| 1,486,446 |
| 40% |
| 151,352 |
| 45% |
| ||
Hyatt |
| 24 |
| 2,929 |
| 7% |
| 243,350 |
| 7% |
| 17,000 |
| 5% |
| ||
Carlson |
| 12 |
| 2,262 |
| 5% |
| 205,226 |
| 5% |
| 10,981 |
| 3% |
| ||
Homestead |
| 18 |
| 2,399 |
| 5% |
| 145,000 |
| 4% |
| 15,960 |
| 5% |
| ||
Total |
| 307 |
| 44,759 |
| 100% |
| $ | 3,737,180 |
| 100% |
| $ | 337,174 |
| 100% |
|
Operating Statistics by Operating Agreement (Q1 2006):
|
| Number |
| Number |
| Annualized |
| Percent |
| Coverage (1) |
| RevPAR |
| |||||
Operating Agreement |
| of Hotels |
| / Suites |
| Rent (000s) |
| Rent |
| Q1 |
| LTM |
| Q1 |
| LTM |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Host Marriott (no. 1) |
| 53 |
| 7,610 |
| $ | 56,119 |
| 17% |
| 1.40x |
| 1.45x |
| 9.9% |
| 7.9% |
|
Host Marriott (no. 2) |
| 18 |
| 2,178 |
| 18,739 |
| 6% |
| 1.11x |
| 1.17x |
| 12.8% |
| 10.8% |
| |
Marriott International |
| 35 |
| 5,382 |
| 47,986 |
| 14% |
| 0.93x |
| 1.05x |
| 5.2% |
| 8.1% |
| |
Barcelo Crestline |
| 19 |
| 2,756 |
| 28,508 |
| 8% |
| 1.47x |
| 1.10x |
| 24.3% |
| 13.9% |
| |
InterContinental (no. 1) (3) |
| 30 |
| 3,694 |
| 36,097 |
| 11% |
| 0.96x |
| 0.95x |
| 9.4% |
| 10.9% |
| |
InterContinental (no. 2) |
| 76 |
| 9,220 |
| 50,000 |
| 15% |
| 1.20x |
| 1.33x |
| 13.5% |
| 13.7% |
| |
InterContinental (no. 3) |
| 14 |
| 4,141 |
| 42,488 |
| 12% |
| 1.48x |
| 1.37x |
| 16.5% |
| 14.3% |
| |
InterContinental (no. 4) |
| 8 |
| 2,188 |
| 13,296 |
| 4% |
| 1.84x |
| 1.47x |
| 23.3% |
| 18.7% |
| |
Hyatt |
| 24 |
| 2,929 |
| 17,000 |
| 5% |
| 1.15x |
| 1.06x |
| 12.1% |
| 11.3% |
| |
Carlson |
| 12 |
| 2,262 |
| 10,981 |
| 3% |
| 1.43x |
| 0.96x |
| 31.5% |
| 1.7% |
| |
Homestead |
| 18 |
| 2,399 |
| 15,960 |
| 5% |
| 1.60x |
| 1.50x |
| 4.6% |
| 7.2% |
| |
Total / Average |
| 307 |
| 44,759 |
| $ | 337,174 |
| 100% |
|
|
|
|
| 13.1% |
| 10.7% |
|
(1) We define coverage as combined total hotel sales minus all expenses which are not subordinated to minimum payments to us and the required FF&E reserve contributions (which data is provided to us by our operators or tenants), divided by the minimum return or minimum rent payments due to us. The return coverage amounts for certain of our management agreements have been revised for all periods presented to include only the minimum returns. The calculation in prior periods included additional return amounts for certain of our management agreements. For some combinations, amounts have been calculated using data for periods prior to our ownership of certain hotels and prior to commencement of our operating agreements. We have not independently verified our managers’ and tenants’ operating data.
(2) We define RevPAR as hotel room revenue per day per available room. Operating data presented are based upon the operating results provided by our managers and tenants; we have not independently verified our managers’ and tenants’ operating data.
(3) The calculation of RevPAR excludes one hotel which has been closed temporarily due to fire damage sustained in May 2005.
5
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
INVESTOR INFORMATION
Board of Trustees
Barry M. Portnoy
Managing Trustee
Frank J. Bailey
Independent Trustee
John L. Harrington
Independent Trustee
Gerard M. Martin
Managing Trustee
Arthur G. Koumantzelis
Independent Trustee
Senior Management
John G. Murray
President, Chief Operating Officer and Secretary
Ethan S. Bornstein
Vice President
Mark L. Kleifges
Treasurer and Chief Financial Officer
Contact Information
Investor Relations
Hospitality Properties Trust
400 Centre Street
Newton, MA 02458
(t) (617) 964-8389
(f) (617) 969-5730
(email) info@hptreit.com
(website) www.hptreit.com
Inquiries
Financial inquiries should be directed to Mark L. Kleifges, Treasurer and Chief Financial Officer, at (617) 964-8389 or mkleifges@reitmr.com.
Investor and media inquiries should be directed to Timothy A. Bonang, Manager of Investor Relations, at (617) 796-8149 or tbonang@hptreit.com.
6
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
RESEARCH COVERAGE
Equity Research Coverage
BB&T Capital Markets
Stephanie Krewson
(804) 782-8784
Stifel, Nicolaus
Rod Petrik
(410) 454-4131
Calyon Securities
Smedes Rose
(212) 408-5649
UBS
William Truelove
(212) 713-8825
Merrill Lynch
William Acheson
(212) 449-1920
Wachovia Securities
Jeffrey Donnelly
(617) 603-4262
Debt Research Coverage
Credit Suisse
Matthew Lynch
(212) 325-6456
Wachovia Securities
Dan Sullivan
(704) 383-6441
Rating Agencies
Moody’s Investors Service
Maria Maslovsky
(212) 553-4831
Standard and Poor’s
Sherry Cai
(212) 438-1807
HPT is followed by the analysts and its publicly held debt is rated by the rating agencies listed above. Please note that any opinions, estimates or forecasts regarding HPT’s performance made by these analysts or agencies do not represent opinions, forecasts or predictions of HPT or its management. HPT does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations provided by any of these analysts or agencies.
7
FINANCIAL INFORMATION
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
KEY FINANCIAL DATA
(amounts in thousands, except per share data)
|
| As of and For the Three Months Ended |
| |||||||||||||
|
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
| |||||
Common shares outstanding (at end of period) |
| 71,921 |
| 71,921 |
| 71,921 |
| 71,905 |
| 67,203 |
| |||||
Weighted average common shares outstanding - basic and diluted (1) |
| 71,921 |
| 71,921 |
| 71,908 |
| 68,357 |
| 67,203 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Common Share Data: |
|
|
|
|
|
|
|
|
|
|
| |||||
Price at end of period |
| $ | 43.67 |
| $ | 40.10 |
| $ | 42.86 |
| $ | 44.07 |
| $ | 40.38 |
|
High during period |
| $ | 46.47 |
| $ | 43.30 |
| $ | 45.04 |
| $ | 44.72 |
| $ | 46.28 |
|
Low during period |
| $ | 39.32 |
| $ | 38.42 |
| $ | 40.51 |
| $ | 39.67 |
| $ | 38.00 |
|
Annualized dividends paid per share |
| $ | 2.92 |
| $ | 2.92 |
| $ | 2.92 |
| $ | 2.88 |
| $ | 2.88 |
|
Annualized dividend yield (at end of period) |
| 6.7% |
| 7.3% |
| 6.8% |
| 6.5% |
| 7.1% |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Market Capitalization: |
|
|
|
|
|
|
|
|
|
|
| |||||
Total debt (book value) |
| $ | 1,207,478 |
| $ | 960,372 |
| $ | 933,265 |
| $ | 925,157 |
| $ | 1,100,049 |
|
Plus: market value of preferred shares (at end of period) |
| 91,425 |
| 88,769 |
| 93,150 |
| 93,392 |
| 92,219 |
| |||||
Plus: market value of common shares (at end of period) |
| 3,140,790 |
| 2,884,032 |
| 3,082,534 |
| 3,168,853 |
| 2,713,657 |
| |||||
Total market capitalization |
| $ | 4,439,693 |
| $ | 3,933,173 |
| $ | 4,108,949 |
| $ | 4,187,402 |
| $ | 3,905,925 |
|
Total debt / total market capitalization |
| 27.2% |
| 24.4% |
| 22.7% |
| 22.1% |
| 28.2% |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Book Capitalization: |
|
|
|
|
|
|
|
|
|
|
| |||||
Total debt |
| $ | 1,207,478 |
| $ | 960,372 |
| $ | 933,265 |
| $ | 925,157 |
| $ | 1,100,049 |
|
Plus: total shareholders’ equity |
| 1,836,272 |
| 1,855,455 |
| 1,861,670 |
| 1,884,073 |
| 1,712,665 |
| |||||
Total book capitalization |
| $ | 3,043,750 |
| $ | 2,815,827 |
| $ | 2,794,935 |
| $ | 2,809,230 |
| $ | 2,812,714 |
|
Total debt / total book capitalization |
| 39.7% |
| 34.1% |
| 33.4% |
| 32.9% |
| 39.1% |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
| |||||
Total assets |
| $ | 3,339,158 |
| $ | 3,114,607 |
| $ | 3,080,422 |
| $ | 3,092,959 |
| $ | 3,074,510 |
|
Total liabilities |
| $ | 1,502,886 |
| $ | 1,259,152 |
| $ | 1,218,752 |
| $ | 1,208,886 |
| $ | 1,361,845 |
|
Real estate, at cost |
| $ | 3,878,838 |
| $ | 3,626,693 |
| $ | 3,604,181 |
| $ | 3,593,498 |
| $ | 3,569,977 |
|
Total debt / real estate, at cost |
| 31.1% |
| 26.5% |
| 25.9% |
| 25.7% |
| 30.8% |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Selected Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
| |||||
Total revenues |
| $ | 239,716 |
| $ | 213,897 |
| $ | 221,687 |
| $ | 218,081 |
| $ | 180,747 |
|
EBITDA (2) |
| $ | 93,171 |
| $ | 83,169 |
| $ | 87,152 |
| $ | 86,210 |
| $ | 77,727 |
|
Net income available for common shareholders (3) |
| $ | 33,319 |
| $ | 46,287 |
| $ | 28,671 |
| $ | 20,497 |
| $ | 26,792 |
|
Funds from operations (FFO) available for common shareholders (4) |
| $ | 72,781 |
| $ | 65,522 |
| $ | 69,672 |
| $ | 67,203 |
| $ | 60,883 |
|
Common distributions declared |
| $ | 52,502 |
| $ | 52,502 |
| $ | 52,502 |
| $ | 51,772 |
| $ | 48,386 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net income available for common shareholders (3) |
| $ | 0.46 |
| $ | 0.64 |
| $ | 0.40 |
| $ | 0.30 |
| $ | 0.40 |
|
FFO available for common shareholders (4) |
| $ | 1.01 |
| $ | 0.91 |
| $ | 0.97 |
| $ | 0.98 |
| $ | 0.91 |
|
Common distributions paid |
| $ | 0.73 |
| $ | 0.73 |
| $ | 0.73 |
| $ | 0.72 |
| $ | 0.72 |
|
FFO payout ratio |
| 72.1% |
| 80.1% |
| 75.3% |
| 73.2% |
| 79.5% |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Coverage Ratios: |
|
|
|
|
|
|
|
|
|
|
| |||||
EBITDA (2) / interest expense |
| 4.9x |
| 5.1x |
| 5.4x |
| 4.9x |
| 5.0x |
| |||||
EBITDA (2) / interest expense and preferred distributions |
| 4.5x |
| 4.6x |
| 4.8x |
| 4.4x |
| 4.5x |
| |||||
(1) HPT has no outstanding common share equivalents, such as units, convertible debt or stock options.
(2) See page 13 for calculation of EBITDA.
(3) Net income available for common shareholders for the three months ended 6/30/2005 includes a loss on asset impairment of $7,300, or $0.11 per share.
(4) See page 14 for calculation of FFO.
9
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
CONSOLIDATED BALANCE SHEET
(amounts in thousands, except share data)
|
| As of |
| As of |
| ||
|
|
|
| (audited) |
| ||
ASSETS |
|
|
|
|
| ||
|
|
|
|
|
| ||
Real estate properties, at cost: |
|
|
|
|
| ||
Land |
| $ | 572,599 |
| $ | 537,389 |
|
Buildings, improvements and equipment |
| 3,306,239 |
| 3,089,304 |
| ||
|
| 3,878,838 |
| 3,626,693 |
| ||
Accumulated depreciation |
| (627,966 | ) | (613,007 | ) | ||
|
| 3,250,872 |
| 3,013,686 |
| ||
Cash and cash equivalents |
| 13,255 |
| 18,568 |
| ||
Restricted cash (FF&E reserve escrow) |
| 26,491 |
| 29,063 |
| ||
Other assets, net |
| 48,540 |
| 53,290 |
| ||
|
| $ | 3,339,158 |
| $ | 3,114,607 |
|
|
|
|
|
|
| ||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
| ||
|
|
|
|
|
| ||
Revolving credit facility |
| $ | 282,000 |
| $ | 35,000 |
|
Senior notes, net of discounts |
| 921,729 |
| 921,606 |
| ||
Mortgage payable |
| 3,749 |
| 3,766 |
| ||
Security deposits |
| 185,364 |
| 185,304 |
| ||
Accounts payable and other liabilities |
| 104,345 |
| 108,595 |
| ||
Due to affiliates |
| 3,785 |
| 2,967 |
| ||
Dividends payable |
| 1,914 |
| 1,914 |
| ||
Total liabilities |
| 1,502,886 |
| 1,259,152 |
| ||
|
|
|
|
|
| ||
Commitments and contingencies |
|
|
|
|
| ||
|
|
|
|
|
| ||
Shareholders’ equity: |
|
|
|
|
| ||
Preferred shares of beneficial interest; no par value; |
|
|
|
|
| ||
Series B preferred shares; 8 7/8 cumulative redeemable; 3,450,000 shares issued and outstanding, aggregate liquidation preference $86,250 |
| 83,306 |
| 83,306 |
| ||
Common shares of beneficial interest; $0.01 par value; 100,000,000 shares authorized; 71,920,578 shares issued and outstanding, respectively |
| 719 |
| 719 |
| ||
Additional paid-in capital |
| 2,059,883 |
| 2,059,883 |
| ||
Cumulative net income |
| 1,246,305 |
| 1,211,072 |
| ||
Cumulative preferred distributions |
| (61,250 | ) | (59,336 | ) | ||
Cumulative common distributions |
| (1,492,691 | ) | (1,440,189 | ) | ||
Total shareholders’ equity |
| 1,836,272 |
| 1,855,455 |
| ||
|
| $ | 3,339,158 |
| $ | 3,114,607 |
|
10
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
CONSOLIDATED STATEMENT OF INCOME
(amounts in thousands, except per share data)
|
| For the Three Months Ended |
| ||||
|
| 3/31/2006 |
| 3/31/2005 |
| ||
|
|
|
|
|
| ||
Revenues: |
|
|
|
|
| ||
Hotel operating revenues |
| $ | 201,828 |
| $ | 145,047 |
|
Rental income |
| 32,476 |
| 31,065 |
| ||
FF&E reserve income |
| 4,990 |
| 4,399 |
| ||
Interest income |
| 422 |
| 236 |
| ||
Total revenues |
| 239,716 |
| 180,747 |
| ||
|
| �� |
|
|
| ||
Expenses: |
|
|
|
|
| ||
Hotel operating expenses |
| 144,189 |
| 100,425 |
| ||
Interest (including amortization of deferred financing costs of $610 and $734, respectively) |
| 18,988 |
| 15,429 |
| ||
Depreciation and amortization |
| 34,952 |
| 30,823 |
| ||
General and administrative |
| 6,354 |
| 5,364 |
| ||
Total expenses |
| 204,483 |
| 152,041 |
| ||
|
|
|
|
|
| ||
Net income |
| 35,233 |
| 28,706 |
| ||
|
|
|
|
|
| ||
Preferred distributions |
| (1,914 | ) | (1,914 | ) | ||
Net income available for common shareholders |
| $ | 33,319 |
| $ | 26,792 |
|
|
|
|
|
|
| ||
Weighted average common shares outstanding |
| 71,921 |
| 67,203 |
| ||
|
|
|
|
|
| ||
Basic and diluted net income per share |
| $ | 0.46 |
| $ | 0.40 |
|
11
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
CONSOLIDATED STATEMENT OF CASH FLOWS
(dollars in thousands)
|
| For the Three Months Ended |
| ||||
|
| 3/31/2006 |
| 3/31/2005 |
| ||
|
|
|
|
|
| ||
Cash flows from operating activities: |
|
|
|
|
| ||
Net income |
| $ | 35,233 |
| $ | 28,706 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
| ||
Depreciation and amortization |
| 34,952 |
| 30,823 |
| ||
Amortization of deferred financing costs as interest |
| 610 |
| 734 |
| ||
Non-cash income |
| (753 | ) | (738 | ) | ||
FF&E reserve income and deposits |
| (10,699 | ) | (7,140 | ) | ||
Change in assets and liabilities: |
|
|
|
|
| ||
Increase in other assets |
| (2,658 | ) | (2,020 | ) | ||
Decrease in accounts payable and other |
| (6,256 | ) | (11,413 | ) | ||
Increase (decrease) in due to affiliate |
| 818 |
| (894 | ) | ||
Cash provided by operating activities |
| 51,247 |
| 38,058 |
| ||
|
|
|
|
|
| ||
Cash flows from investing activities: |
|
|
|
|
| ||
Real estate acquisitions |
| (237,756 | ) | (398,237 | ) | ||
FF&E reserve fundings |
| (11,388 | ) | (12,713 | ) | ||
Increase in security and other deposits |
| — |
| 10,000 |
| ||
Cash used in investing activities |
| (249,144 | ) | (400,950 | ) | ||
|
|
|
|
|
| ||
Cash flows from financing activities: |
|
|
|
|
| ||
Proceeds from issuance of senior notes |
| — |
| 299,442 |
| ||
Draws on revolving credit facility |
| 306,000 |
| 163,000 |
| ||
Repayments of revolving credit facility |
| (59,000 | ) | (60,000 | ) | ||
Distributions to common shareholders |
| (52,502 | ) | (48,386 | ) | ||
Distributions to preferred shareholders |
| (1,914 | ) | (1,914 | ) | ||
Deferred finance costs paid |
| — |
| (2,394 | ) | ||
Cash provided by financing activities |
| 192,584 |
| 349,748 |
| ||
|
|
|
|
|
| ||
Decrease in cash and cash equivalents |
| (5,313 | ) | (13,144 | ) | ||
Cash and cash equivalents at beginning of period |
| 18,568 |
| 15,894 |
| ||
Cash and cash equivalents at end of period |
| $ | 13,255 |
| $ | 2,750 |
|
|
|
|
|
|
| ||
Supplemental cash flow information: |
|
|
|
|
| ||
Cash paid for interest |
| $ | 32,820 |
| $ | 23,551 |
|
|
|
|
|
|
| ||
Non cash investing activities: |
|
|
|
|
| ||
Property managers’ deposits in FF&E reserve |
| $ | 8,378 |
| $ | 6,010 |
|
Purchases of fixed assets with FF&E reserve |
| (26,964 | ) | (12,930 | ) | ||
12
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
CALCULATION OF EBITDA
(dollars in thousands)
|
| For the Three Months Ended |
| ||||
|
| 3/31/2006 |
| 3/31/2005 |
| ||
|
|
|
|
|
| ||
Net income |
| $ | 35,233 |
| $ | 28,706 |
|
Plus: Interest expense |
| 18,988 |
| 15,429 |
| ||
Depreciation expense |
| 34,952 |
| 30,823 |
| ||
Less: Deferred percentage rent (1) |
| 1,648 |
| 920 |
| ||
Deferred hotel operating profit (2) |
| 2,350 |
| 1,849 |
| ||
EBITDA |
| $ | 93,171 |
| $ | 77,727 |
|
(1) In calculating net income, we recognize percentage rental income received for the first, second and third quarters in the fourth quarter, which is when all contingencies are met and the income is earned. Although we defer recognition of this revenue until the fourth quarter for purposes of calculating net income, we include the estimated amount in the calculation of EBITDA for each quarter of the year. The fourth quarter EBITDA calculation excludes the amounts recognized during the first three quarters.
(2) Our share of the operating results of our managed hotels in excess of the minimum returns due to us is generally determined based upon annual calculations. Typically the net operating results of our hotels are strongest during the second and third quarters of the year, which are the most active periods for business and leisure travel. We recognize our share of income in excess of our minimum returns in the fourth quarter, which is when all contingencies are met and the income is earned. Although we defer recognition of this income until the fourth quarter for purposes of calculating net income, we include the estimated amount in the calculation of EBITDA for each quarter of the year. The fourth quarter EBITDA calculation excludes the amounts recognized during the first three quarters.
We compute EBITDA, or earnings before interest, taxes, depreciation and amortization, as net income plus interest expense, depreciation and amortization expense, deferred percentage rent and deferred hotel operating profit. We consider EBITDA to be an appropriate measure of our performance, along with net income and cash flow from operating, investing and financing activities. We believe EBITDA provides useful information to investors because by excluding the effects of certain historical costs, such as interest, depreciation and amortization expense, EBITDA can facilitate a comparison of our current operating performance with our past operating performance and of operating performance among REITs. EBITDA does not represent cash generated by operating activities in accordance with generally accepted accounting principals, or GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity.
13
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
CALCULATION OF FUNDS FROM OPERATIONS (FFO)
(amounts in thousands, except per share data)
|
| For the Three Months Ended |
| ||||
|
| 3/31/2006 |
| 3/31/2005 |
| ||
|
|
|
|
|
| ||
Net income available for common shareholders |
| $ | 33,319 |
| $ | 26,792 |
|
Plus: FF&E deposits not in net income (1) |
| 512 |
| 499 |
| ||
Depreciation and amortization |
| 34,952 |
| 30,823 |
| ||
Deferred percentage rent (2) |
| 1,648 |
| 920 |
| ||
Deferred hotel operating income (3) |
| 2,350 |
| 1,849 |
| ||
FFO |
| $ | 72,781 |
| $ | 60,883 |
|
|
|
|
|
|
| ||
Weighted average shares outstanding |
| 71,921 |
| 67,203 |
| ||
|
|
|
|
|
| ||
Net income available for common shareholders per share |
| $ | 0.46 |
| $ | 0.40 |
|
FFO available for common shareholders per share |
| $ | 1.01 |
| $ | 0.91 |
|
(1) Various percentages of total sales at most of our hotels are escrowed as reserves for future renovations or refurbishment, or FF&E Reserve escrows. We own the FF&E Reserve escrows for all the hotels leased to our taxable REIT subsidiaries and for most of the hotels leased to third parties. We have a security and remainder interest in the FF&E Reserve escrows for the remaining hotels leased to third parties. When we own the FF&E Reserve escrows at hotels leased to third parties we report payments into the escrow as additional rent. When we have a security and remainder interest in the FF&E Reserve escrows, deposits are not included in revenue but are included in FFO. We do not report the amounts which are escrowed as FF&E reserves for our managed hotels as FF&E reserve income in our consolidated statement of income.
(2) In calculating net income, we recognize percentage rental income received for the first, second and third quarters in the fourth quarter, which is when all contingencies are met and the income is earned. Although we defer recognition of this revenue until the fourth quarter for purposes of calculating net income, we include the estimated amount in the calculation of FFO for each quarter of the year. The fourth quarter FFO calculation excludes the amounts recognized during the first three quarters.
(3) Our share of the operating results of our managed hotels in excess of the minimum returns due to us is generally determined based upon annual calculations. Typically the net operating results of our hotels are strongest during the second and third quarters of the year, which are the most active periods for business and leisure travel. We recognize our share of income in excess of our minimum returns in the fourth quarter, which is when all contingencies are met and the income is earned. Although we defer recognition of this income until the fourth quarter for purposes of calculating net income, we include the estimated amount in the calculation of FFO for each quarter of the year. The fourth quarter FFO calculation excludes the amounts recognized during the first three quarters.
We compute FFO as shown in the calculation above. Our calculation of FFO differs from the National Association of Real Estate Investment Trusts, or NAREIT, definition of FFO because we include FF&E deposits not included in net income (see note 1), deferred percentage rent (see note 2) and deferred hotel operating income (see note 3). We consider FFO to be an appropriate measure of performance for a real estate investment trust, or REIT, along with net income and cash flow from operating, investing and financing activities. We believe that FFO provides useful information to investors because by excluding the effects of certain historical costs, such as depreciation expense and gain or loss on sale of properties, FFO can facilitate comparison of current operating performance among REITs. FFO does not represent cash generated by operating activities in accordance with generally accepted accounting principles, or GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity. FFO is one important factor considered by our board of trustees in determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving bank credit facility and public debt covenants, the availability of debt and equity capital to us and our expectation of our future capital needs and operating performance.
14
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
DEBT SUMMARY
(dollars in thousands)
|
| Interest |
| Principal |
| Maturity |
| Due at |
| Years to |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Secured Fixed Rate Debt: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Mortgage — secured by one hotel in Wichita, KS (1) |
| 8.300% |
| $ | 3,749 |
| 7/1/11 |
| $ | 3,326 |
| 5.3 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Unsecured Debt: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Unsecured Floating Rate Debt: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Revolving credit facility (LIBOR + 65 bps) |
| 5.440% |
| $ | 282,000 |
| 6/30/09 |
| $ | 282,000 |
| 3.3 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Unsecured Fixed Rate Debt: |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Senior notes due 2008 |
| 7.000% |
| $ | 150,000 |
| 3/1/08 |
| $ | 150,000 |
| 1.9 |
| ||||||
Senior notes due 2010 |
| 9.125% |
| 50,000 |
| 7/15/10 |
| 50,000 |
| 4.3 |
| ||||||||
Senior notes due 2012 |
| 6.850% |
| 125,000 |
| 7/15/12 |
| 125,000 |
| 6.3 |
| ||||||||
Senior notes due 2013 |
| 6.750% |
| 300,000 |
| 2/15/13 |
| 300,000 |
| 6.9 |
| ||||||||
Senior notes due 2015 |
| 5.125% |
| 300,000 |
| 2/15/15 |
| 300,000 |
| 8.9 |
| ||||||||
Total / weighted average unsecured fixed rate debt |
| 6.405% |
| $ | 925,000 |
|
|
| $ | 925,000 |
| 6.5 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Weighted average secured fixed rate debt / total |
| 8.300% |
| $ | 3,749 |
|
|
| $ | 3,326 |
| 5.3 |
| ||||||
Weighted average unsecured floating rate debt / total |
| 5.440% |
| 282,000 |
|
|
| 282,000 |
| 3.3 |
| ||||||||
Weighted average unsecured fixed rate debt / total |
| 6.405% |
| 925,000 |
|
|
| 925,000 |
| 6.5 |
| ||||||||
Weighted average debt / total |
| 6.186% |
| $ | 1,210,749 |
|
|
| $ | 1,210,326 |
| 5.7 |
| ||||||
(1) This mortgage became prepayable at a premium to face value on September 1, 2005.
15
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
DEBT MATURITY SCHEDULE
(dollars in thousands)
|
| Scheduled Principal Payments During Period |
| ||||||||||
Year |
| Secured |
| Unsecured |
| Unsecured |
| Total |
| ||||
2006 |
| $ | 49 |
| $ | — |
| $ | — |
| $ | 49 |
|
2007 |
| 71 |
| — |
| — |
| 71 |
| ||||
2008 |
| 77 |
| — |
| 150,000 |
| 150,077 |
| ||||
2009 |
| 84 |
| 282,000 |
| — |
| 282,084 |
| ||||
2010 |
| 92 |
| — |
| 50,000 |
| 50,092 |
| ||||
2011 |
| 3,376 |
| — |
| — |
| 3,376 |
| ||||
2012 |
| — |
| — |
| 125,000 |
| 125,000 |
| ||||
2013 |
| — |
| — |
| 300,000 |
| 300,000 |
| ||||
2014 |
| — |
| — |
| — |
| — |
| ||||
2015 |
| — |
| — |
| 300,000 |
| 300,000 |
| ||||
|
| $ | 3,749 |
| $ | 282,000 |
| $ | 925,000 |
| $ | 1,210,749 |
|
16
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS
|
| As of and For the Three Months Ended |
| ||||||||
|
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
|
Leverage Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt / total assets |
| 36.2% |
| 30.8% |
| 30.3% |
| 29.9% |
| 35.8% |
|
Total debt / real estate assets, at cost |
| 31.1% |
| 26.5% |
| 25.9% |
| 25.7% |
| 30.8% |
|
Total debt / total market capitalization |
| 27.2% |
| 24.4% |
| 22.7% |
| 22.1% |
| 28.2% |
|
Total debt / total book capitalization |
| 39.7% |
| 34.1% |
| 33.4% |
| 32.9% |
| 39.1% |
|
Secured debt / total assets |
| 0.1% |
| 0.1% |
| 0.1% |
| 0.1% |
| 0.1% |
|
Variable rate debt / total debt |
| 23.4% |
| 3.6% |
| 0.9% |
| 0.0% |
| 15.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Coverage Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (1) / interest expense |
| 4.9x |
| 5.1x |
| 5.4x |
| 4.9x |
| 5.0x |
|
EBITDA (1) / interest expense and preferred distributions |
| 4.5x |
| 4.6x |
| 4.8x |
| 4.4x |
| 4.5x |
|
|
|
|
|
|
|
|
|
|
|
|
|
Public Debt Covenants: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt / adjusted total assets - allowable maximum 60.0% |
| 30.6% |
| 25.9% |
| 25.5% |
| 25.4% |
| 30.5% |
|
Secured debt / adjusted total assets - allowable maximum 40.0% |
| 0.1% |
| 0.1% |
| 0.1% |
| 0.1% |
| 0.1% |
|
Consolidated income available for debt service / debt service - required minimum 1.50x |
| 4.25x |
| 5.82x |
| 4.52x |
| 4.26x |
| 4.41x |
|
Total unencumbered assets to unsecured debt - required minimum 200% |
| 327.5% |
| 387.4% |
| 392.9% |
| 394.7% |
| 329.0% |
|
(1) We compute EBITDA as net income plus interest expense, depreciation and amortization expense, deferred percentage rent and deferred hotel operating profit.
(2) Adjusted total assets and unencumbered assets include original cost of real estate assets less impairment write downs and exclude depreciation and amortization, accounts receivable and intangible assets. Consolidated income available for debt service is earnings from operations excluding interest expense, depreciation and amortization, loss on asset impairment, gains and losses on sales of property and amortization of deferred charges.
17
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
FF&E RESERVE ESCROWS (1)
(dollars in thousands)
HPT Owned:
|
| As of and For the Three Months Ended |
| |||||||||||||
|
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
FF&E reserves (beginning of period) |
| $ | 29,063 |
| $ | 32,369 |
| $ | 37,421 |
| $ | 39,810 |
| $ | 38,511 |
|
Manager deposits |
| 9,095 |
| 9,235 |
| 10,017 |
| 7,632 |
| 6,215 |
| |||||
HPT fundings: |
|
|
|
|
|
|
|
|
|
|
| |||||
InterContinental (2) (3) |
| 6,264 |
| — |
| — |
| — |
| 10,000 |
| |||||
Carlson (4) |
| 9,367 |
| 15,063 |
| 6,601 |
| — |
| — |
| |||||
Other (5) |
| 2,021 |
| 8,371 |
| 1,244 |
| 1,398 |
| 2,713 |
| |||||
Hotel improvements |
| (29,319 | ) | (35,975 | ) | (22,914 | ) | (11,419 | ) | (17,629 | ) | |||||
FF&E reserves (end of period) |
| $ | 26,491 |
| $ | 29,063 |
| $ | 32,369 |
| $ | 37,421 |
| $ | 39,810 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Tenant Owned: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
| As of and For the Three Months Ended |
| |||||||||||||
|
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
FF&E reserves (beginning of period) |
| $ | 1,052 |
| $ | 1,508 |
| $ | 1,003 |
| $ | 689 |
| $ | 434 |
|
Manager deposits |
| 448 |
| 510 |
| 505 |
| 502 |
| 499 |
| |||||
Hotel improvements |
| (621 | ) | (966 | ) | — |
| (188 | ) | (244 | ) | |||||
FF&E reserves (end of period) |
| $ | 879 |
| $ | 1,052 |
| $ | 1,508 |
| $ | 1,003 |
| $ | 689 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
| As of and For the Three Months Ended |
| |||||||||||||
|
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
FF&E reserves (beginning of period) |
| $ | 30,115 |
| $ | 33,877 |
| $ | 38,424 |
| $ | 40,499 |
| $ | 38,945 |
|
Manager deposits |
| 9,543 |
| 9,745 |
| 10,522 |
| 8,134 |
| 6,714 |
| |||||
HPT fundings: |
|
|
|
|
|
|
|
|
|
|
| |||||
InterContinental (2) (3) |
| 6,264 |
| — |
| — |
| — |
| 10,000 |
| |||||
Carlson (4) |
| 9,367 |
| 15,063 |
| 6,601 |
| — |
| — |
| |||||
Other (5) |
| 2,021 |
| 8,371 |
| 1,244 |
| 1,398 |
| 2,713 |
| |||||
Hotel improvements |
| (29,940 | ) | (36,941 | ) | (22,914 | ) | (11,607 | ) | (17,873 | ) | |||||
FF&E reserves (end of period) |
| $ | 27,370 |
| $ | 30,115 |
| $ | 33,877 |
| $ | 38,424 |
| $ | 40,499 |
|
(1) Generally, each of our operating agreements require the deposit of a percentage of gross hotel revenues into escrows to fund periodic hotel renovations, or FF&E reserves. For recently built or renovated hotels, this requirement may be deferred for a period. We own all the FF&E reserve escrows for our hotels except for escrows pursuant to one third party lease, which provides that the FF&E reserve escrow is owned by the tenant and we have a security and remainder interest in that escrow account.
(2) Represents FF&E reserve escrows purchased in connection with first quarter 2006 hotel acquisitions.
(3) Pursuant to our agreement with InterContinental for the management of 15 Staybridge Suites® (part of the InterContinental No. 1 agreement) we agreed to fund $20,000 for rebranding costs and other capital improvements. During the first quarter of 2005 the final $10,000 of these fundings occurred.
(4) Pursuant to our agreement with Carlson for the management of 12 hotels, we agreed to fund $12,000 for rebranding costs and other capital improvements. To the extent our fundings exceed $12,000, the minimum return payable by Carlson to us will increase as these funds are advanced. We expect to make additional fundings of approximately $6,000 in 2006.
(5) Represents FF&E reserve deposits not funded by hotel operations but separately funded by us. Our operating agreements generally provide that, if necessary, we will provide our managers or tenants FF&E funding in excess of escrowed reserves. To the extent we make such fundings, our annual minimum returns or rent increases by a percentage of the amounts we fund.
18
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
2006 ACQUISITIONS AND DISPOSITIONS INFORMATION
(dollars in thousands)
2006 ACQUISITIONS (through 3/31/2006):
|
|
|
|
|
|
|
| Number |
|
|
|
|
| Purchase |
| ||||
Date |
|
|
|
|
|
|
| of Rooms |
| Operating |
| Purchase |
| Price per |
| ||||
Acquired |
| Hotels |
| Brand |
| Location |
| / Suites |
| Agreement |
| Price (1) |
| Room / Suite |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
1/6/06 |
| 1 |
| Harbor Court Complex |
| Baltimore, MD |
| 195 |
| InterContinental |
| $ | 78,000 | (2) | $ | 308 | (3) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
1/25/06 |
| 8 |
| 5 Crowne Plaza®, 1 Holiday Inn Select®, and 2 Staybridge Suites® |
| Atlanta, GA (2), Irvine, CA, San Jose, CA, Dallas, TX (2), Houston, TX and Las Colinas, TX |
| 2,188 |
| InterContinental |
| 166,200 |
| 76 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total 2006 |
| 9 |
|
|
|
|
| 2,383 |
|
|
| $ | 244,200 |
| $ | 95 | (3) | ||
(1) Represents the gross purchase price and excludes closing costs.
(2) Includes $18,000 allocated purchase price of the office building and parking garage components of the Harbor Court Complex.
(3) Calculated based on allocated hotel purchase price of $60,000. The Harbor Court Hotel has been rebranded as the Harbor Court InterContinental® Hotel.
2006 DISPOSITIONS (through 3/31/06):
|
|
|
|
|
|
|
| Number |
|
|
|
|
| Purchase |
|
Date |
|
|
|
|
|
|
| of Rooms |
| Operating |
| Purchase |
| Price per |
|
Disposed |
| Hotels |
| Brand |
| Location |
| / Suites |
| Agreement |
| Price (1) |
| Room / Suite |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
None. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
2006 FINANCING ACTIVITIES
(share amounts and dollars in thousands)
|
| For the Three Months Ended |
| ||||||||||
|
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Debt Transactions: (1) |
|
|
|
|
|
|
|
|
| ||||
New debt raised |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|
New debt assumed as part of acquisitions |
| — |
| — |
| — |
| — |
| ||||
Total new debt |
| — |
| — |
| — |
| — |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Debt retired |
| — |
| — |
| — |
| — |
| ||||
Net debt |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|
|
|
|
|
|
|
|
|
|
| ||||
Equity Transactions: |
|
|
|
|
|
|
|
|
| ||||
New common shares issued |
| — |
| — |
| — |
| 4,700 |
| ||||
New common equity raised, net |
| $ | — |
| $ | — |
| $ | — |
| $ | 199,233 |
|
|
|
|
|
|
|
|
|
|
| ||||
New preferred shares issued |
| — |
| — |
| — |
| — |
| ||||
New preferred equity raised, net |
| — |
| — |
| — |
| — |
| ||||
Total new equity |
| $ | — |
| $ | — |
| $ | — |
| $ | 199,233 |
|
(1) Excludes drawings and repayments under our revolving credit facility.
20
OPERATING AGREEMENTS
AND PORTFOLIO INFORMATION
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
SUMMARY OF OPERATING AGREEMENTS
(dollars in thousands)
Operating Agreement |
| Host (no. 1) |
| Host (no. 2) |
| Marriott |
| Barcelo Crestline |
| Homestead |
| InterContinental (no. 1) |
| InterContinental (no. 2) |
| InterContinental (no. 3) |
| InterContinental (no. 4) |
| Hyatt |
| Carlson |
| Total / Range / Average (all investments) |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Number of Hotels |
| 53 |
| 18 |
| 35 |
| 19 |
| 18 |
| 30 |
| 76 |
| 14 |
| 8 |
| 24 |
| 12 |
| 307 |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Number of Rooms / Suites |
| 7,610 |
| 2,178 |
| 5,382 |
| 2,756 |
| 2,399 |
| 3,694 |
| 9,220 |
| 4,141 |
| 2,188 |
| 2,929 |
| 2,262 |
| 44,759 |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Hotel Brands |
| Courtyard by Marriott® |
| Residence Inn by Marriott® |
| Marriott® / Residence Inn by Marriott® / Courtyard by Marriott® / TownePlace Suites by Marriott® / SpringHill Suites by Marriott® |
| Residence Inn by Marriott® / Courtyard by Marriott® / TownePlace Suites by Marriott® / SpringHill Suites by Marriott® |
| Homestead Studio Suites® |
| Staybridge Suites® |
| Candlewood Suites® |
| InterContinental® / Crowne Plaza® / Holiday Inn® / Staybridge Suites® |
| Crowne Plaza® / Holiday Inn® / Staybridge Suites® |
| AmeriSuites® |
| Radisson Hotels & Resorts® / Park Plaza® Hotels & Resorts / Country Inn & Suites by CarlsonSM |
| 15 Brands |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Number of States |
| 24 |
| 14 |
| 15 |
| 14 |
| 5 |
| 16 |
| 29 |
| 7 plus Ontario and Puerto Rico |
| 3 |
| 14 |
| 7 |
| 38 plus Ontario and Puerto Rico |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Manager |
| Subsidiary of Marriott International |
| Subsidiary of Marriott International |
| Subsidiary of Marriott International |
| Subsidiary of Marriott International |
| Subsidiary of BRE / Homestead Village LLC |
| Subsidiary of InterContinental |
| Subsidiary of InterContinental |
| Subsidiary of InterContinental |
| Subsidiary of InterContinental |
| Subsidiary of Hyatt |
| Subsidiary of Carlson |
| 5 Managers |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Tenant |
| Subsidiary of Host Marriott Subleased to Subsidiary of Barcelo Crestline |
| Subsidiary of Host Marriott Subleased to Subsidiary of Barcelo Crestline |
| Our TRS |
| Subsidiary of Barcelo Crestline |
| Subsidiary of BRE / Homestead Village LLC |
| Our TRS |
| Our TRS |
| Our TRS and a subsidiary of InterContinental |
| Our TRS |
| Our TRS |
| Our TRS |
| 4 Tenants |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Investment at December 31, 2005 (1) |
| $ | 562,317 |
| $ | 187,575 |
| $ | 462,332 |
| $ | 274,222 |
| $ | 145,000 |
| $ | 415,708 |
| $ | 590,250 |
| $ | 485,000 |
| $ | 166,200 |
| $ | 243,350 |
| $ | 205,226 |
| $ | 3,737,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
End of Current Term |
| 2012 |
| 2010 |
| 2019 |
| 2015 |
| 2015 |
| 2023 |
| 2028 |
| 2029 |
| 2030 |
| 2030 |
| 2030 |
| 2010-2030 |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Renewal Options (2) |
| 3 for 12 years each |
| 1 for 10 years, 2 for 15 years each |
| 2 for 15 years each |
| 2 for 10 years each |
| 2 for 15 years each |
| 2 for 12.5 years each |
| 2 for 15 years each |
| 2 for 15 years each |
| 2 for 15 years each |
| 2 for 15 years each |
| 2 for 15 years each |
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Annual Minimum Return / Minimum Rent |
| $ | 56,119 |
| $ | 18,739 |
| $ | 47,986 |
| $ | 28,508 |
| $ | 15,960 |
| $ | 36,097 |
| $ | 50,000 |
| $ | 42,488 |
| $ | 13,296 |
| $ | 17,000 |
| $ | 10,981 |
| $ | 337,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Additionall Return (3) |
| — |
| — |
| $ | 1,173 |
| — |
| — |
| — |
| $ | 10,000 |
| $ | 3,458 |
| $ | 1,269 |
| 50% of cash flow in excess of minimum return (4) |
| 50% of cash flow in excess of minimum return (4) |
| $ | 15,900 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Percentage Return / Rent (5) |
| 5% of revenues above 1994/95 revenues |
| 7.5% of revenues above 1996 revenues |
| 7% of revenues above 2000/01 revenues |
| 7.0% of revenues above 1999/2000 revenues |
| 10.0% of revenues above 1999/2000 revenues |
| 7.5% of revenues above 2004/06 revenues |
| 7.5% of revenues above 2006 revenues |
| 7.5% of revenues above 2006 revenues |
| 7.5% of revenues above 2006 revenues |
| — |
| — |
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Security Deposit |
| $ | 50,540 |
| $ | 17,220 |
| $ | 36,204 |
| $ | 28,508 |
| $ | 15,960 |
| $ | 36,872 | (6) | — |
| $ | 36,872 | (6) | $ | 36,872 | (6) | — |
| — |
| $ | 185,304 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Other Security Features |
| HPT controlled lockbox with minimum balance maintenance requirement; subtenant and subtenant parent minimum net worth requirement |
| HPT controlled lockbox with minimum balance maintenance requirement; subtenant and subtenant parent minimum net worth requirement |
|
|
| Tenant minimum net worth requirement |
| Homestead parent guarantee and $15,960 letter of credit |
| Limited guarantee provided by InterContinental |
| Limited guarantee provided by InterContinental |
| Limited guarantee provided by InterContinental |
| Limited guarantee provided by InterContinental |
| Limited guarantee provided by Hyatt |
| Limited guarantee provided by Carlson |
|
|
| ||||||||||||
(1) Excludes expenditures made from FF&E reserves funded from hotel operations, but includes amounts separately funded by us.
(2) Renewal options may be exercised by the manager or tenant for all, but not less than all, of the hotels within each combination of hotels.
(3) These management agreements provide for annual additional return payments in the amount listed, to the extent of available cash flow after payment of operating costs, funding of the FF&E reserve, payment of our minimum return and payment of certain managment fees.
(4) These management agreements provide for payment to us of 50% of available cash flow after payment of operating costs, funding the FF&E reserve, payment of our minimum return and reimbursement to the managers of working capital and guaranty advances, if any.
(5) Each management contract or lease provides for payment to us of a percentage of increases in total hotel sales over a base year levels as additional return or rent.
(6) The single $36,872 deposit secures InterContinental’s obligations under the InterContinental No. 1, No. 3 and No. 4 portfolios.
22
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
PORTFOLIO BY OPERATING AGREEMENT, MANAGER AND BRAND
(dollars in thousands)
|
| Number |
| Percent of |
| Number of |
| Percent of |
| Investment (1) |
| Percent of |
| Investment per |
| Annual |
| Percent of |
| |||
By Operating Agreement: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Host Marriott (no. 1) |
| 53 |
| 17% |
| 7,610 |
| 17% |
| $ | 562,317 |
| 15% |
| $ | 74 |
| $ | 56,119 |
| 17% |
|
Host Marriott (no. 2) |
| 18 |
| 6% |
| 2,178 |
| 5% |
| 187,575 |
| 5% |
| 86 |
| 18,739 |
| 6% |
| |||
Marriott International |
| 35 |
| 11% |
| 5,382 |
| 12% |
| 462,332 |
| 12% |
| 86 |
| 47,986 |
| 14% |
| |||
Barcelo Crestline |
| 19 |
| 6% |
| 2,756 |
| 6% |
| 274,222 |
| 8% |
| 100 |
| 28,508 |
| 8% |
| |||
InterContinental (no. 1) |
| 30 |
| 10% |
| 3,694 |
| 8% |
| 415,708 |
| 11% |
| 113 |
| 36,097 |
| 11% |
| |||
InterContinental (no. 2) |
| 76 |
| 25% |
| 9,220 |
| 21% |
| 590,250 |
| 16% |
| 64 |
| 50,000 |
| 15% |
| |||
InterContinental (no. 3) |
| 14 |
| 4% |
| 4,141 |
| 9% |
| 485,000 |
| 13% |
| 117 |
| 42,488 |
| 12% |
| |||
InterContinental (no. 4) |
| 8 |
| 3% |
| 2,188 |
| 5% |
| 166,200 |
| 4% |
| 76 |
| 13,296 |
| 4% |
| |||
Homestead |
| 18 |
| 6% |
| 2,399 |
| 5% |
| 145,000 |
| 4% |
| 60 |
| 15,960 |
| 5% |
| |||
Hyatt |
| 24 |
| 8% |
| 2,929 |
| 7% |
| 243,350 |
| 7% |
| 83 |
| 17,000 |
| 5% |
| |||
Carlson |
| 12 |
| 4% |
| 2,262 |
| 5% |
| 205,226 |
| 5% |
| 91 |
| 10,981 |
| 3% |
| |||
Total |
| 307 |
| 100% |
| 44,759 |
| 100% |
| $ | 3,737,180 |
| 100% |
| $ | 83 |
| $ | 337,174 |
| 100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
By Manager: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
InterContinental |
| 128 |
| 42% |
| 19,243 |
| 43% |
| $ | 1,657,158 |
| 44% |
| $ | 86 |
| $ | 141,881 |
| 42% |
|
Marriott International |
| 125 |
| 40% |
| 17,926 |
| 40% |
| 1,486,446 |
| 40% |
| 83 |
| 151,352 |
| 45% |
| |||
Hyatt |
| 24 |
| 8% |
| 2,929 |
| 7% |
| 243,350 |
| 7% |
| 83 |
| 17,000 |
| 5% |
| |||
Homestead |
| 18 |
| 6% |
| 2,399 |
| 5% |
| 145,000 |
| 4% |
| 60 |
| 15,960 |
| 5% |
| |||
Carlson |
| 12 |
| 4% |
| 2,262 |
| 5% |
| 205,226 |
| 5% |
| 91 |
| 10,981 |
| 3% |
| |||
Total |
| 307 |
| 100% |
| 44,759 |
| 100% |
| $ | 3,737,180 |
| 100% |
| $ | 83 |
| $ | 337,174 |
| 100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
By Brand: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
AmeriSuites® |
| 24 |
| 8% |
| 2,929 |
| 7% |
| $ | 243,350 |
| 7% |
| $ | 83 |
|
|
|
|
| |
Candlewood Suites® |
| 76 |
| 25% |
| 9,220 |
| 21% |
| 590,250 |
| 16% |
| 64 |
|
|
|
|
| |||
Country Inn & Suites by CarlsonSM |
| 5 |
| 2% |
| 753 |
| 2% |
| 72,460 |
| 2% |
| 96 |
|
|
|
|
| |||
Courtyard by Marriott® |
| 71 |
| 23% |
| 10,280 |
| 23% |
| 819,959 |
| 22% |
| 80 |
|
|
|
|
| |||
Crowne Plaza® |
| 9 |
| 3% |
| 3,308 |
| 8% |
| 275,446 |
| 7% |
| 83 |
|
|
|
|
| |||
Holiday Inn® |
| 4 |
| 1% |
| 1,046 |
| 2% |
| 51,781 |
| 1% |
| 50 |
|
|
|
|
| |||
Homestead Studio Suites® |
| 18 |
| 6% |
| 2,399 |
| 5% |
| 145,000 |
| 4% |
| 60 |
|
|
|
|
| |||
InterContinental® |
| 5 |
| 2% |
| 1,481 |
| 3% |
| 286,239 |
| 8% |
| 193 |
|
|
|
|
| |||
Marriott Hotels® |
| 3 |
| 1% |
| 1,356 |
| 3% |
| 113,020 |
| 3% |
| 83 |
|
|
|
|
| |||
Park Plaza® Hotels & Resorts |
| 3 |
| 1% |
| 534 |
| 1% |
| 30,149 |
| 1% |
| 56 |
|
|
|
|
| |||
Radisson Hotels & Resorts® |
| 4 |
| 1% |
| 975 |
| 2% |
| 102,617 |
| 2% |
| 105 |
|
|
|
|
| |||
Residence Inn by Marriott® |
| 37 |
| 12% |
| 4,695 |
| 10% |
| 430,968 |
| 11% |
| 92 |
|
|
|
|
| |||
SpringHill Suites by Marriott® |
| 2 |
| 0% |
| 264 |
| 1% |
| 20,525 |
| 1% |
| 78 |
|
|
|
|
| |||
Staybridge Suites® |
| 34 |
| 11% |
| 4,188 |
| 9% |
| 453,442 |
| 12% |
| 108 |
|
|
|
|
| |||
TownePlace Suites by Marriott® |
| 12 |
| 4% |
| 1,331 |
| 3% |
| 101,974 |
| 3% |
| 77 |
|
|
|
|
| |||
Total |
| 307 |
| 100% |
| 44,759 |
| 100% |
| 3,737,180 |
| 100% |
| $ | 83 |
|
|
|
|
| ||
(1) Excludes expenditures made from FF&E reserves funded from hotel operations, but includes amounts separately funded by us.
23
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
OPERATING STATISTICS BY OPERATING AGREEMENT
|
| No. of |
| No. of |
| First Quarter (1) |
| ||||||
|
| Hotels |
| Rooms / Suites |
| 2006 |
| 2005 |
| Change |
| ||
ADR |
|
|
|
|
|
|
|
|
|
|
| ||
Host Marriott (no. 1) |
| 53 |
| 7,610 |
| $ | 118.33 |
| $ | 108.13 |
| 9.4% |
|
Host Marriott (no. 2) |
| 18 |
| 2,178 |
| 109.39 |
| 96.35 |
| 13.5% |
| ||
Marriott International |
| 35 |
| 5,382 |
| 107.39 |
| 99.03 |
| 8.4% |
| ||
Barcelo Crestline |
| 19 |
| 2,756 |
| 124.45 |
| 105.69 |
| 17.8% |
| ||
InterContinental (no. 1)(2) |
| 30 |
| 3,694 |
| 103.48 |
| 94.58 |
| 9.4% |
| ||
InterContinental (no. 2) |
| 76 |
| 9,220 |
| 65.60 |
| 59.24 |
| 10.7% |
| ||
InterContinental (no. 3)(3) (4) |
| 14 |
| 4,141 |
| 133.55 |
| 123.40 |
| 8.2% |
| ||
InterContinental (no. 4)(3) |
| 8 |
| 2,188 |
| 96.43 |
| 86.14 |
| 11.9% |
| ||
Hyatt(4) |
| 24 |
| 2,929 |
| 82.45 |
| 74.54 |
| 10.6% |
| ||
Carlson(3) (4) |
| 12 |
| 2,262 |
| 95.13 |
| 82.39 |
| 15.5% |
| ||
Homestead |
| 18 |
| 2,399 |
| 66.14 |
| 57.61 |
| 14.8% |
| ||
Total/Average |
| 307 |
| 44,759 |
| $ | 98.33 |
| $ | 88.57 |
| 11.0% |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
OCCUPANCY |
|
|
|
|
|
|
|
|
|
|
| ||
Host Marriott (no. 1) |
| 53 |
| 7,610 |
| 66.7% |
| 66.4% |
| 0.3 pt |
| ||
Host Marriott (no. 2) |
| 18 |
| 2,178 |
| 77.7% |
| 78.2% |
| -0.5 pt |
| ||
Marriott International |
| 35 |
| 5,382 |
| 71.5% |
| 73.7% |
| -2.2 pt |
| ||
Barcelo Crestline |
| 19 |
| 2,756 |
| 73.6% |
| 69.7% |
| 3.9 pt |
| ||
InterContinental (no. 1)(2) |
| 30 |
| 3,694 |
| 74.0% |
| 74.0% |
| 0.0 pt |
| ||
InterContinental (no. 2) |
| 76 |
| 9,220 |
| 74.2% |
| 72.4% |
| 1.8 pt |
| ||
InterContinental (no. 3)(3) (4) |
| 14 |
| 4,141 |
| 75.0% |
| 69.7% |
| 5.3 pt |
| ||
InterContinental (no. 4)(3) |
| 8 |
| 2,188 |
| 74.0% |
| 67.2% |
| 6.8 pt |
| ||
Hyatt(4) |
| 24 |
| 2,929 |
| 66.1% |
| 65.2% |
| 0.9 pt |
| ||
Carlson(3) (4) |
| 12 |
| 2,262 |
| 60.6% |
| 53.2% |
| 7.4 pt |
| ||
Homestead |
| 18 |
| 2,399 |
| 70.6% |
| 77.5% |
| -6.9 pt |
| ||
Total/Average |
| 307 |
| 44,759 |
| 71.4% |
| 70.1% |
| 1.3 pt |
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
RevPAR |
|
|
|
|
|
|
|
|
|
|
| ||
Host Marriott (no. 1) |
| 53 |
| 7,610 |
| $ | 78.93 |
| $ | 71.80 |
| 9.9% |
|
Host Marriott (no. 2) |
| 18 |
| 2,178 |
| 85.00 |
| 75.35 |
| 12.8% |
| ||
Marriott International |
| 35 |
| 5,382 |
| 76.78 |
| 72.99 |
| 5.2% |
| ||
Barcelo Crestline |
| 19 |
| 2,756 |
| 91.60 |
| 73.67 |
| 24.3% |
| ||
InterContinental (no. 1)(2) |
| 30 |
| 3,694 |
| 76.58 |
| 69.99 |
| 9.4% |
| ||
InterContinental (no. 2) |
| 76 |
| 9,220 |
| 48.68 |
| 42.89 |
| 13.5% |
| ||
InterContinental (no. 3)(3) (4) |
| 14 |
| 4,141 |
| 100.16 |
| 86.01 |
| 16.5% |
| ||
InterContinental (no. 4)(3) |
| 8 |
| 2,188 |
| 71.36 |
| 57.89 |
| 23.3% |
| ||
Hyatt(4) |
| 24 |
| 2,929 |
| 54.50 |
| 48.60 |
| 12.1% |
| ||
Carlson(3) (4) |
| 12 |
| 2,262 |
| 57.65 |
| 43.83 |
| 31.5% |
| ||
Homestead |
| 18 |
| 2,399 |
| 46.69 |
| 44.65 |
| 4.6% |
| ||
Total/Average |
| 307 |
| 44,759 |
| $ | 70.21 |
| $ | 62.09 |
| 13.1% |
|
(1) Includes data for the calendar periods indicated, except for our Marriott® branded hotels, which include data for comparable fiscal periods.
(2) The calculations of Occupancy and RevPAR excludes one hotel which has been closed temporarily due to fire damage sustained in May 2005.
(3) Includes data for periods prior to our ownership of some hotels.
(4) Includes data for periods some hotels were not operated by the current manager.
All operating data presented are based upon the operating results provided by our managers and tenants for the indicated periods. We have not independently verified our managers’ and tenants’ operating data.
24
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
COVERAGE BY OPERATING AGREEMENT (1)
|
| For the Twelve Months Ended (2) |
| ||||||||
Operating Agreement |
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
|
Host Marriott (no. 1) |
| 1.45x |
| 1.41x |
| 1.36x |
| 1.33x |
| 1.31x |
|
Host Marriott (no. 2) |
| 1.17x |
| 1.13x |
| 1.10x |
| 1.07x |
| 1.02x |
|
Marriott International |
| 1.05x |
| 1.03x |
| 0.96x |
| 0.95x |
| 0.90x |
|
Barcelo Crestline |
| 1.10x |
| 0.99x |
| 0.92x |
| 0.90x |
| 0.87x |
|
InterContinental (no. 1) |
| 0.95x |
| 0.91x |
| 0.84x |
| 0.81x |
| 0.77x |
|
InterContinental (no. 2) |
| 1.33x |
| 1.33x |
| 1.27x |
| 1.23x |
| 1.16x |
|
InterContinental (no. 3) (3) (4) |
| 1.37x |
| 1.29x |
| 1.21x |
| 1.11x |
| 1.02x |
|
InterContinental (no. 4) (3) |
| 1.47x |
| 1.34x |
| 1.24x |
| 1.16x |
| 1.08x |
|
Hyatt (4) |
| 1.06x |
| 1.03x |
| 1.01x |
| 1.00x |
| 0.96x |
|
Carlson (3) (4) (5) |
| 0.96x |
| 0.90x |
| 0.93x |
| 1.04x |
| 1.21x |
|
Homestead |
| 1.50x |
| 1.46x |
| 1.41x |
| 1.36x |
| 1.28x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended (2) |
| ||||||||
Operating Agreement |
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
|
Host Marriott (no. 1) |
| 1.40x |
| 1.39x |
| 1.50x |
| 1.52x |
| 1.23x |
|
Host Marriott (no. 2) |
| 1.11x |
| 1.13x |
| 1.21x |
| 1.23x |
| 0.93x |
|
Marriott International |
| 0.93x |
| 0.98x |
| 1.13x |
| 1.19x |
| 0.84x |
|
Barcelo Crestline |
| 1.47x |
| 1.06x |
| 0.84x |
| 1.06x |
| 0.98x |
|
InterContinental (no. 1) |
| 0.96x |
| 0.84x |
| 0.99x |
| 1.02x |
| 0.79x |
|
InterContinental (no. 2) |
| 1.20x |
| 1.26x |
| 1.40x |
| 1.46x |
| 1.19x |
|
InterContinental (no. 3) (3) (4) |
| 1.48x |
| 1.26x |
| 1.27x |
| 1.48x |
| 1.16x |
|
InterContinental (no. 4) (3) |
| 1.84x |
| 1.34x |
| 1.26x |
| 1.46x |
| 1.29x |
|
Hyatt (4) |
| 1.15x |
| 0.86x |
| 1.07x |
| 1.15x |
| 1.03x |
|
Carlson (3) (4) (5) |
| 1.43x |
| 0.33x |
| 0.64x |
| 1.33x |
| 1.33x |
|
Homestead |
| 1.60x |
| 1.41x |
| 1.43x |
| 1.57x |
| 1.43x |
|
(1) We define coverage as combined total hotel sales minus all expenses which are not subordinated to minimum payments to us and the required FF&E reserve contributions (which data is provided to us by our operators or tenants), divided by the minimum return or minimum rent payments due to us. The return coverage amounts for certain of our management agreements have been revised for all periods presented to include only the minimum returns. The calculation in prior periods included additional return amounts for certain of our management agreements. For some combinations, amounts have been calculated using data for periods prior to our ownership of certain hotels and prior to commencement of our operating agreements.
(2) Includes data for the calendar periods indicated, except for our Marriott® branded hotels, which include data for comparable fiscal periods.
(3) Includes data for periods prior to our ownership of some hotels.
(4) Includes data for periods some hotels were not operated by the current manager.
(5) We transferred operating responsibility for our Prime HotelsSM to Carlson on April 4, 2005. During the second quarter of 2005 11 of these 12 hotels were rebranded with Carlson brands and are currently undergoing renovations which have required some hotel rooms to be taken out of service. The renovations are expected to be completed during the second quarter of 2006.
All operating data presented are based upon the operating results provided by our managers and tenants for the indicated periods. We have not independently verified our managers’ or tenants’ operating data.
25
Hospitality Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
OPERATING AGREEMENT EXPIRATION SCHEDULE
(dollars in thousands)
|
| Annualized Minimum |
| % of Annualized |
| Cumulative% of |
| |||
2006 |
| $ | — |
| — |
|
| — |
|
|
2007 |
| — |
| — |
|
| — |
|
| |
2008 |
| — |
| — |
|
| — |
|
| |
2009 |
| — |
| — |
|
| — |
|
| |
2010 |
| 18,739 |
| 5.6 | % |
| 5.6 | % |
| |
2011 |
| — |
| — |
|
| — |
|
| |
2012 |
| 56,119 |
| 16.6 | % |
| 22.2 | % |
| |
2013 |
| — |
| — |
|
| 22.2 | % |
| |
2014 |
| — |
| — |
|
| 22.2 | % |
| |
2015 |
| 44,468 |
| 13.2 | % |
| 35.4 | % |
| |
2016 and thereafter |
| 217,848 |
| 64.6 | % |
| 100.0 | % |
| |
Total |
| $ | 337,174 |
| 100.0 | % |
|
|
| |
|
|
|
|
|
|
|
| |||
Weighted average remaining term |
| 15.9 years |
|
|
|
|
| |||
26