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SEC Filings

10-K
RLJ LODGING TRUST filed this Form 10-K on 03/01/2019
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The following table presents the costs that were incurred in connection with the Mergers (in thousands):
 
For the year ended December 31,
 
2018
 
2017
Transaction costs
$
(487
)
 
$
38,391

Integration costs
2,050

 
5,696

 
$
1,563

 
$
44,087


The transaction costs primarily related to transfer taxes, including any refund of transfer taxes, and financial advisory, legal, and other professional service fees in connection with the Mergers. The integration costs primarily related to professional fees and employee-related costs, including compensation for transition employees. The merger-related costs noted above were expensed to transaction costs in the accompanying consolidated statements of operations and comprehensive income.

The following unaudited condensed pro forma financial information presents the results of operations as if the Mergers had taken place on January 1, 2016.  The unaudited condensed pro forma financial information is not necessarily indicative of what the actual results of operations of the Company would have been assuming the Mergers had taken place on January 1, 2016, nor is it indicative of the results of operations for future periods.  The unaudited condensed pro forma financial information is as follows (in thousands):
 
For the year ended December 31,
 
2017
 
2016
 
(unaudited)
Revenue
$
1,893,899

 
$
1,996,517

Net income attributable to common shareholders
$
110,231

 
$
213,354

Net income per share attributable to common shareholders - basic
$
0.63

 
$
1.23

Net income per share attributable to common shareholders - diluted
$
0.63

 
$
1.22

Weighted-average number of shares outstanding - basic
174,142,918

 
174,009,107

Weighted-average number of shares outstanding - diluted
174,220,129

 
174,237,111


4. Investment in Hotel Properties
 
Investment in hotel properties consisted of the following (in thousands):
 
December 31, 2018
 
December 31, 2017
Land and improvements
$
1,209,416

 
$
1,275,030

Buildings and improvements
4,694,490

 
4,890,266

Furniture, fixtures and equipment
813,797

 
756,546

 
6,717,703

 
6,921,842

Accumulated depreciation
(1,339,052
)
 
(1,129,917
)
Investment in hotel properties, net
$
5,378,651

 
$
5,791,925

 
For the years ended December 31, 2018, 2017 and 2016, the Company recognized depreciation expense related to its investment in hotel properties of approximately $233.8 million, $182.0 million and $162.2 million, respectively.

5. Investment in Unconsolidated Joint Ventures

As of December 31, 2018 and 2017, the Company owned 50% interests in joint ventures that owned two hotel properties. The Company also owned 50% interests in joint ventures that owned real estate and a condominium management business that are associated with two of its resort hotel properties. The Company accounts for the investments in these unconsolidated joint ventures under the equity method of accounting. The Company makes adjustments to the equity in income from unconsolidated joint ventures related to the difference between the Company's basis in the investment in the unconsolidated joint ventures as compared to the historical basis of the assets and liabilities of the joint ventures. As of December 31, 2018 and 2017, the unconsolidated joint ventures' debt consisted entirely of non-recourse mortgage debt.


F-21

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