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10-K
RLJ LODGING TRUST filed this Form 10-K on 03/01/2019
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percentage of gross revenue and room revenue, respectively, decreased as a result of lower revenues at the comparable properties.
 
Depreciation and Amortization
 
Depreciation and amortization expense increased $24.5 million, or 15.1%, to $187.0 million for the year ended December 31, 2017 from $162.5 million for the year ended December 31, 2016. The increase was due to a $28.1 million increase in depreciation and amortization expense attributable to the non-comparable properties, which was partially offset by a $3.6 million decrease in depreciation and amortization expense attributable to the comparable properties as a result of furniture, fixtures and equipment at certain hotel properties that were fully depreciated in 2016.

Property Tax, Insurance and Other
 
Property tax, insurance and other expense increased $14.1 million, or 18.3%, to $91.4 million for the year ended December 31, 2017 from $77.3 million for the year ended December 31, 2016.  The increase was due to a $13.2 million increase in property tax, insurance and other expense attributable to the non-comparable properties and a $1.0 million increase in property tax, insurance and other expense attributable to the comparable properties.
 
General and Administrative
 
General and administrative expense increased $8.9 million, or 28.4%, to $40.5 million for the year ended December 31, 2017 from $31.5 million for the year ended December 31, 2016.  The increase in general and administrative expense was primarily attributable to an $8.0 million increase in compensation expense and a net increase of $1.0 million in other general and administrative costs, including legal fees and other professional fees and costs. The increase in compensation expense for the year ended December 31, 2017 was primarily due to an increase in salary, bonus, and other employee compensation costs and the impact of a $2.8 million benefit realized during the year ended December 31, 2016 from the forfeiture of restricted shares and performance units upon the resignation of our former President and Chief Executive Officer in 2016.

Transaction Costs
 
Transaction costs increased $44.2 million to $44.4 million for the year ended December 31, 2017 from $0.2 million for the year ended December 31, 2016.  The increase in transaction costs was attributable to approximately $38.4 million in transaction costs and $5.7 million in integration costs that we incurred related to the merger with FelCor.
 
Interest Expense
 
The components of our interest expense for the years ended December 31, 2017 and 2016 are as follows (in thousands):
 
For the year ended December 31,
 
 
 
 
 
2017
 
2016
 
$ Change
 
% Change
Senior Notes
$
15,918

 
$

 
$
15,918

 
100.0
 %
Revolver and Term Loans
39,262

 
38,849

 
413

 
1.1
 %
Mortgage loans
19,643

 
16,006

 
3,637

 
22.7
 %
Amortization of deferred financing costs
3,499

 
3,965

 
(466
)
 
(11.8
)%
Total interest expense
$
78,322

 
$
58,820

 
$
19,502

 
33.2
 %

Interest expense increased $19.5 million, or 33.2%, to $78.3 million for the year ended December 31, 2017 from $58.8 million for the year ended December 31, 2016.  The increase in interest expense was primarily due to assuming the senior notes and mortgage loans in the merger with FelCor, partially offset by a decrease in amortization of the deferred financing costs as a result of the accelerated amortization of the deferred financing costs associated with the debt refinancing transactions in 2016 and by the additional amortization of the costs capitalized in conjunction with the debt refinancing transactions in 2016.

Gain on Sale of Hotel Properties, net
 
During the year ended December 31, 2017, we recognized a net gain on the sale of hotel properties of $9.0 million, which was due to a $9.6 million gain on sale as a result of satisfying certain post-closing obligations with respect to the sale of two hotel properties during the year ended December 31, 2016 that was partially offset by a $0.6 million loss from the sale of one

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