Print Page  Close Window

SEC Filings

10-K
RLJ LODGING TRUST filed this Form 10-K on 03/01/2019
Entire Document
 << Previous Page | Next Page >>

Room Revenue
 
Room revenue increased $136.2 million, or 13.5%, to $1.15 billion for the year ended December 31, 2017 from $1.01 billion for the year ended December 31, 2016.  The increase was a result of a $146.0 million increase in room revenue attributable to the non-comparable properties, which was partially offset by a $9.7 million decrease in room revenue attributable to the comparable properties. The decrease in room revenue from the comparable properties was attributable to a 0.7% decrease in RevPAR, led by RevPAR decreases in our Louisville, Chicago and New York City markets of 5.6%, 5.5% and 3.8%, respectively, which were partially offset by RevPAR increases in our Southern California, South Florida and Washington, D.C. markets of 4.6%, 3.9% and 3.5%, respectively.

The following are the key hotel operating statistics for the comparable properties owned at December 31, 2017 and 2016, respectively:
 
For the year ended December 31,
 
 
 
2017
 
2016
 
% Change
Number of comparable properties (at end of period)
122

 
122

 

Occupancy
77.8
%
 
78.2
%
 
(0.5
)%
ADR
$
166.10

 
$
166.62

 
(0.3
)%
RevPAR
$
129.27

 
$
130.23

 
(0.7
)%
   
Food and Beverage Revenue
 
Food and beverage revenue increased $46.0 million, or 41.2%, to $157.7 million for the year ended December 31, 2017 from $111.7 million for the year ended December 31, 2016. The increase was a result of a $47.1 million increase in food and beverage revenue attributable to the non-comparable properties, which was partially offset by a $1.1 million decrease in food and beverage revenue attributable to the comparable properties.
 
Other Revenue
 
Other revenue, which includes revenue derived from ancillary sources such as parking fees, golf, pool and other resort fees, gift shop sales and other guest service fees, increased $14.0 million, or 37.3%, to $51.7 million for the year ended December 31, 2017 from $37.7 million for the year ended December 31, 2016.  The increase was due to a $14.7 million increase in other revenue attributable to the non-comparable properties, which was partially offset by a $0.7 million decrease in other revenue attributable to the comparable properties.
 
Property Operating Expenses
 
Property operating expenses increased $143.8 million, or 21.5%, to $811.9 million for the year ended December 31, 2017 from $668.1 million for the year ended December 31, 2016. The increase was due to a $136.9 million increase in property operating expense attributable to the non-comparable properties and a $6.9 million increase in property operating expense attributable to the comparable properties.

The components of our property operating expenses for the comparable properties owned at December 31, 2017 and 2016, respectively, were as follows (in thousands):
 
For the year ended December 31,
 
 
 
 
 
2017
 
2016
 
$ Change
 
% Change
Room expense
$
217,859

 
$
214,368

 
$
3,491

 
1.6
 %
Food and beverage expense
78,648

 
78,833

 
(185
)
 
(0.2
)%
Management and franchise fee expense
110,616

 
112,334

 
(1,718
)
 
(1.5
)%
Other operating expense
237,493

 
232,212

 
5,281

 
2.3
 %
Total property operating expenses
$
644,616

 
$
637,747

 
$
6,869

 
1.1
 %

The increase in property operating expenses attributable to the comparable properties was related to higher room expense and other operating expense. Room expense and other operating expense fluctuate based on various factors, including changes in occupancy, labor costs, utilities and insurance costs.  Management fees and franchise fees, which are computed as a

50

 << Previous Page | Next Page >>