- Acquired a boutique lifestyle hotel in
- Increased quarterly dividend to
- Successfully exited covenant waivers
- Repurchased common shares
Highlights
- Pro forma RevPAR of
$146.05 for Q2; representing 92% of 2019 levels, improving 36% from Q1 - Total revenue of
$330.5 million - Net income attributable to common shareholders of
$26.7 million - Net income per basic and diluted share attributable to common shareholders of
$0.16 - Pro forma
Hotel EBITDA of$118.6 million - Adjusted EBITDA of
$111.0 million - Adjusted FFO per basic and diluted common share and unit of
$0.49 - Repurchased 4.2 million common shares for
$50.0 million with proceeds from asset sales - Increased quarterly cash dividend to
$0.05 per common share - Acquired a boutique lifestyle hotel in
Nashville in July for$59.0 million - Successfully exited the covenant waiver period under corporate credit facilities
- Maintained a strong balance sheet with approximately
$1.1 billion of liquidity, including$511.5 million of unrestricted cash
“Our second quarter results significantly outperformed our expectations, led by the performance of our urban markets, which were the major beneficiary of strengthening business travel and greater citywide attendance, that drove outsized growth during the weekdays, in addition to robust leisure demand. The surge of demand in our urban markets drove our results to sequentially improve each month of the quarter, which continued into July,” commented
The prefix “pro forma” as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. Pro forma RevPAR and pro forma
|
Financial and Operating Highlights ($ in thousands, except ADR, RevPAR, and per share amounts) (unaudited) |
|||||
|
|
For the three months ended |
|
For the six months ended |
||
|
|
2022 |
2021 |
|
2022 |
2021 |
|
Operational Overview: (1) |
|
|
|
|
|
|
Pro forma ADR |
|
|
|
|
|
|
Pro forma Occupancy |
74.7% |
59.7% |
|
67.9% |
52.0% |
|
Pro forma RevPAR |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Overview: |
|
|
|
|
|
|
Total Revenues |
|
|
|
|
|
|
Pro forma |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
( |
|
|
( |
|
|
|
|
|
|
|
|
Pro forma |
|
|
|
|
|
|
Pro forma |
35.9% |
27.3% |
|
31.8% |
21.8% |
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted FFO |
|
|
|
|
( |
|
Adjusted FFO Per Basic and Diluted Common Share and Unit |
|
|
|
|
( |
| Note: |
| (1) Pro forma statistics reflect the Company's 95 hotel portfolio owned as of |
| (2) Pro forma |
Operational Update
Lodging fundamentals continued to accelerate throughout the second quarter, benefiting from summer travel, ramping corporate and group demand, and stronger citywide attendance. These positive trends led to a significant step up in demand within urban markets, which has continued into July. RLJ’s Urban hotel RevPAR achieved the strongest growth during the second quarter, achieving 95% of 2019 levels in June. Improving corporate demand also drove positive momentum in weekday results which strengthened throughout the second quarter. These improving trends led the Company to achieve pro forma RevPAR of
Acquisition
In July, the Company acquired the fee simple interest in a 124-room boutique lifestyle hotel in
Dispositions
As previously disclosed, during the second quarter, the Company sold the SpringHill Suites Denver North Westminster for gross proceeds of approximately
Share Repurchases
During the second quarter, the Company repurchased approximately 4.2 million common shares for
Balance Sheet
As of
The Company has exited both the covenant waiver period and leverage relief period under its credit facilities. The impact of these exits includes the reinstatement of financial covenants, the elimination of the minimum liquidity financial covenant, the elimination of certain spending limitations, and reinstatement of the pre-waiver pricing grids.
Dividends
The Company’s
The Company's
2022 Outlook
Given continued uncertainties the Company is unable to provide a future outlook at this time.
Earnings Call
The Company will conduct its quarterly analyst and investor conference call on
Supplemental Information
Please refer to the schedule of supplemental information for additional detail and pro forma operating statistics, which is available through the Investor Relations section of the Company's website.
About Us
Forward Looking Statements
This information contains certain statements, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, that are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the use of the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “will continue,” “intend,” “should,” “may,” or similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual results could differ materially from those set forth in the forward-looking statements. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance on these forward looking statements and urges investors to carefully review the disclosures the Company makes concerning risks and uncertainties in the sections entitled “Risk Factors,” “Forward- Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report, as well as risks, uncertainties and other factors discussed in other documents filed by the Company with the
Non-GAAP and Accounting Commentary
Non-Generally Accepted Accounting Principles (“Non-GAAP”) Financial Measures
The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) EBITDAre, (5) Adjusted EBITDA, (6)
Funds From Operations (“FFO”)
The Company calculates Funds from Operations (“FFO”) in accordance with standards established by the
The Company’s calculation of FFO may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. Additionally, FFO may not be helpful when comparing the Company to non-REITs. The Company presents FFO attributable to common shareholders, which includes unitholders of limited partnership interest (“OP units”) in
EBITDA and EBITDAre
Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) is defined as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sales of assets; and (3) depreciation and amortization. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions.
In addition to EBITDA, the Company presents EBITDAre in accordance with NAREIT guidelines, which defines EBITDAre as net income or loss (calculated in accordance with GAAP) excluding interest expense, income tax expense, depreciation and amortization expense, gains or losses from sales of real estate, impairment, and adjustments for unconsolidated partnerships and joint ventures. The Company believes that the presentation of EBITDAre provides useful information to investors regarding the Company's operating performance and can facilitate comparisons of operating performance between periods and between REITs.
Adjustments to FFO and EBITDA
The Company adjusts FFO, EBITDA, and EBITDAre for certain items that the Company considers either outside the normal course of operations or extraordinary. The Company believes that Adjusted FFO, Adjusted EBITDA, and Adjusted EBITDAre provide useful supplemental information to investors regarding its ongoing operating performance that, when considered with net income or loss, FFO, EBITDA, and EBITDAre, is beneficial to an investor’s understanding of its operating performance. The Company adjusts FFO, EBITDA, and EBITDAre for the following items:
- Transaction Costs: The Company excludes transaction costs expensed during the period
- Pre-Opening Costs: The Company excludes certain costs related to pre-opening of hotels
- Non-Cash Expenses: The Company excludes the effect of certain non-cash items such as the amortization of share-based compensation, non-cash income taxes, and non-cash expense related to discontinued interest rate hedges
- Other Non-Operational Expenses: The Company excludes the effect of certain non-operational expenses representing income and expenses outside the normal course of operations
With respect to
Pro forma
Pro forma adjustments: Acquired hotels
For the three and six months ended
Hampton Inn & Suites Atlanta Midtown acquired inAugust 2021 AC Hotel Boston Downtown acquired inOctober 2021 Moxy Denver Cherry Creek acquired inDecember 2021
Pro forma adjustments: Sold hotels
For the three and six months ended
- Courtyard Houston Sugarland sold in
January 2021 Residence Inn Chicago Naperville sold inMay 2021 Residence Inn Indianapolis Fishers sold inMay 2021 Fairfield Inn & Suites Chicago Southeast Hammond sold inJuly 2021 Residence Inn Chicago Southeast Hammond sold inAugust 2021 - Courtyard Chicago Southeast Hammond sold in
August 2021 - Embassy Suites Secaucus-Meadowlands ground lease expired in
October 2021 DoubleTree Hotel Metropolitan New York City sold inDecember 2021 Marriott Denver Airport atGateway Park sold inMarch 2022 - SpringHill Suites Denver North Westminster sold in
April 2022
|
Consolidated Balance Sheets (Amounts in thousands, except share and per share data) (unaudited) |
|||||||
|
|
|
|
|
||||
|
Assets |
|
|
|
||||
|
Investment in hotel properties, net |
$ |
4,127,290 |
|
|
$ |
4,219,116 |
|
|
Investment in unconsolidated joint ventures |
|
6,927 |
|
|
|
6,522 |
|
|
Cash and cash equivalents |
|
511,481 |
|
|
|
665,341 |
|
|
Restricted cash reserves |
|
44,281 |
|
|
|
48,528 |
|
|
Hotel and other receivables, net of allowance of |
|
40,938 |
|
|
|
31,091 |
|
|
Lease right-of-use assets |
|
142,213 |
|
|
|
144,988 |
|
|
Prepaid expense and other assets |
|
60,096 |
|
|
|
33,390 |
|
|
Total assets |
$ |
4,933,226 |
|
|
$ |
5,148,976 |
|
|
Liabilities and Equity |
|
|
|
||||
|
Debt, net |
$ |
2,211,735 |
|
|
$ |
2,409,438 |
|
|
Accounts payable and other liabilities |
|
139,115 |
|
|
|
155,136 |
|
|
Advance deposits and deferred revenue |
|
18,583 |
|
|
|
20,047 |
|
|
Lease liabilities |
|
121,609 |
|
|
|
123,031 |
|
|
Accrued interest |
|
18,617 |
|
|
|
19,110 |
|
|
Distributions payable |
|
7,995 |
|
|
|
8,347 |
|
|
Total liabilities |
|
2,517,654 |
|
|
|
2,735,109 |
|
|
Equity |
|
|
|
||||
|
Shareholders’ equity: |
|
|
|
||||
|
Preferred shares of beneficial interest, |
|
|
|
||||
|
Series A Cumulative Convertible Preferred Shares, |
|
366,936 |
|
|
|
366,936 |
|
|
Common shares of beneficial interest, |
|
1,630 |
|
|
|
1,665 |
|
|
Additional paid-in capital |
|
3,053,345 |
|
|
|
3,092,883 |
|
|
Distributions in excess of net earnings |
|
(1,044,726 |
) |
|
|
(1,046,739 |
) |
|
Accumulated other comprehensive income (loss) |
|
24,594 |
|
|
|
(17,113 |
) |
|
Total shareholders’ equity |
|
2,401,779 |
|
|
|
2,397,632 |
|
|
Noncontrolling interests: |
|
|
|
||||
|
Noncontrolling interest in the |
|
6,325 |
|
|
|
6,316 |
|
|
Noncontrolling interest in consolidated joint ventures |
|
7,468 |
|
|
|
9,919 |
|
|
Total noncontrolling interest |
|
13,793 |
|
|
|
16,235 |
|
|
Total equity |
|
2,415,572 |
|
|
|
2,413,867 |
|
|
Total liabilities and equity |
$ |
4,933,226 |
|
|
$ |
5,148,976 |
|
| Note: The corresponding notes to the consolidated financial statements can be found in the Company’s Quarterly Report on Form 10-Q. |
|
Consolidated Statements of Operations (Amounts in thousands, except share and per share data) (unaudited) |
|||||||||||||||
|
|
For the three months ended |
|
For the six months ended |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Revenues |
|
|
|
|
|
|
|
||||||||
|
Operating revenues |
|
|
|
|
|
|
|
||||||||
|
Room revenue |
$ |
280,676 |
|
|
$ |
166,554 |
|
|
$ |
486,455 |
|
|
$ |
269,326 |
|
|
Food and beverage revenue |
|
31,154 |
|
|
|
12,983 |
|
|
|
52,055 |
|
|
|
19,225 |
|
|
Other revenue |
|
18,671 |
|
|
|
14,717 |
|
|
|
34,890 |
|
|
|
25,255 |
|
|
Total revenues |
|
330,501 |
|
|
|
194,254 |
|
|
|
573,400 |
|
|
|
313,806 |
|
|
Expenses |
|
|
|
|
|
|
|
||||||||
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
|
Room expense |
|
65,793 |
|
|
|
42,898 |
|
|
|
119,621 |
|
|
|
72,325 |
|
|
Food and beverage expense |
|
21,770 |
|
|
|
8,709 |
|
|
|
37,939 |
|
|
|
13,265 |
|
|
Management and franchise fee expense |
|
26,067 |
|
|
|
12,630 |
|
|
|
46,456 |
|
|
|
17,991 |
|
|
Other operating expense |
|
76,888 |
|
|
|
56,883 |
|
|
|
145,542 |
|
|
|
106,003 |
|
|
Total property operating expenses |
|
190,518 |
|
|
|
121,120 |
|
|
|
349,558 |
|
|
|
209,584 |
|
|
Depreciation and amortization |
|
46,922 |
|
|
|
46,915 |
|
|
|
93,787 |
|
|
|
93,858 |
|
|
Impairment losses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,946 |
|
|
Property tax, insurance and other |
|
22,949 |
|
|
|
24,048 |
|
|
|
45,462 |
|
|
|
44,129 |
|
|
General and administrative |
|
13,348 |
|
|
|
12,133 |
|
|
|
27,482 |
|
|
|
22,934 |
|
|
Transaction costs |
|
136 |
|
|
|
195 |
|
|
|
198 |
|
|
|
255 |
|
|
Total operating expenses |
|
273,873 |
|
|
|
204,411 |
|
|
|
516,487 |
|
|
|
376,706 |
|
|
Other income (expense), net |
|
721 |
|
|
|
(9,720 |
) |
|
|
8,006 |
|
|
|
(9,255 |
) |
|
Interest income |
|
347 |
|
|
|
220 |
|
|
|
519 |
|
|
|
604 |
|
|
Interest expense |
|
(23,855 |
) |
|
|
(26,366 |
) |
|
|
(48,416 |
) |
|
|
(54,261 |
) |
|
(Loss) gain on sale of hotel properties, net |
|
(364 |
) |
|
|
103 |
|
|
|
1,053 |
|
|
|
1,186 |
|
|
Loss on extinguishment of indebtedness, net |
|
— |
|
|
|
(6,207 |
) |
|
|
— |
|
|
|
(6,207 |
) |
|
Income (loss) before equity in income (loss) from unconsolidated joint ventures |
|
33,477 |
|
|
|
(52,127 |
) |
|
|
18,075 |
|
|
|
(130,833 |
) |
|
Equity in income (loss) from unconsolidated joint ventures |
|
283 |
|
|
|
60 |
|
|
|
405 |
|
|
|
(238 |
) |
|
Income (loss) before income tax expense |
|
33,760 |
|
|
|
(52,067 |
) |
|
|
18,480 |
|
|
|
(131,071 |
) |
|
Income tax expense |
|
(558 |
) |
|
|
(154 |
) |
|
|
(748 |
) |
|
|
(268 |
) |
|
Net income (loss) |
|
33,202 |
|
|
|
(52,221 |
) |
|
|
17,732 |
|
|
|
(131,339 |
) |
|
Net (income) loss attributable to noncontrolling interests: |
|
|
|
|
|
|
|
||||||||
|
Noncontrolling interest in the |
|
(125 |
) |
|
|
268 |
|
|
|
(21 |
) |
|
|
664 |
|
|
Noncontrolling interest in consolidated joint ventures |
|
(111 |
) |
|
|
506 |
|
|
|
7 |
|
|
|
1,242 |
|
|
Net income (loss) attributable to RLJ |
|
32,966 |
|
|
|
(51,447 |
) |
|
|
17,718 |
|
|
|
(129,433 |
) |
|
Preferred dividends |
|
(6,279 |
) |
|
|
(6,279 |
) |
|
|
(12,557 |
) |
|
|
(12,557 |
) |
|
Net income (loss) attributable to common shareholders |
$ |
26,687 |
|
|
$ |
(57,726 |
) |
|
$ |
5,161 |
|
|
$ |
(141,990 |
) |
|
Basic per common share data: |
|
|
|
|
|
|
|
||||||||
|
Net income (loss) per share attributable to common shareholders - basic |
$ |
0.16 |
|
|
$ |
(0.35 |
) |
|
$ |
0.03 |
|
|
$ |
(0.87 |
) |
|
Weighted-average number of common shares |
|
163,539,446 |
|
|
|
163,996,003 |
|
|
|
163,857,785 |
|
|
|
163,911,475 |
|
|
Diluted per common share data: |
|
|
|
|
|
|
|
||||||||
|
Net income (loss) per share attributable to common shareholders - diluted |
$ |
0.16 |
|
|
$ |
(0.35 |
) |
|
$ |
0.03 |
|
|
$ |
(0.87 |
) |
|
Weighted-average number of common shares |
|
163,784,573 |
|
|
|
163,996,003 |
|
|
|
164,217,150 |
|
|
|
163,911,475 |
|
| Note: The Statements of Comprehensive Income and corresponding notes to the consolidated financial statements can be found in the Company’s Quarterly Report on Form 10-Q. |
|
Reconciliation of Non-GAAP Measures (Amounts in thousands, except per share data) (unaudited) |
|||||||||||||||
|
Funds from Operations (FFO) Attributable to Common Shareholders and Unitholders |
|||||||||||||||
|
|
For the three months ended |
|
For the six months ended |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Net income (loss) |
$ |
33,202 |
|
|
$ |
(52,221 |
) |
|
$ |
17,732 |
|
|
$ |
(131,339 |
) |
|
Preferred dividends |
|
(6,279 |
) |
|
|
(6,279 |
) |
|
|
(12,557 |
) |
|
|
(12,557 |
) |
|
Depreciation and amortization |
|
46,922 |
|
|
|
46,915 |
|
|
|
93,787 |
|
|
|
93,858 |
|
|
Loss (gain) on sale of hotel properties, net |
|
364 |
|
|
|
(103 |
) |
|
|
(1,053 |
) |
|
|
(1,186 |
) |
|
Impairment losses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,946 |
|
|
Noncontrolling interest in consolidated joint ventures |
|
(111 |
) |
|
|
506 |
|
|
|
7 |
|
|
|
1,242 |
|
|
Adjustments related to consolidated joint ventures (1) |
|
(49 |
) |
|
|
(75 |
) |
|
|
(98 |
) |
|
|
(150 |
) |
|
Adjustments related to unconsolidated joint ventures (2) |
|
295 |
|
|
|
291 |
|
|
|
590 |
|
|
|
585 |
|
|
FFO |
|
74,344 |
|
|
|
(10,966 |
) |
|
|
98,408 |
|
|
|
(43,601 |
) |
|
Transaction costs |
|
136 |
|
|
|
195 |
|
|
|
198 |
|
|
|
255 |
|
|
Loss on extinguishment of indebtedness, net |
|
— |
|
|
|
6,207 |
|
|
|
— |
|
|
|
6,207 |
|
|
Amortization of share-based compensation |
|
5,470 |
|
|
|
4,848 |
|
|
|
10,654 |
|
|
|
7,600 |
|
|
Non-cash income tax expense |
|
135 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Derivative losses (gains) in accumulated other comprehensive income (loss) reclassified to earnings (3) |
|
— |
|
|
|
10,658 |
|
|
|
(5,866 |
) |
|
|
10,658 |
|
|
Other expenses (4) |
|
914 |
|
|
|
353 |
|
|
|
1,498 |
|
|
|
409 |
|
|
Adjusted FFO |
$ |
80,999 |
|
|
$ |
11,295 |
|
|
$ |
104,892 |
|
|
$ |
(18,472 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted FFO per common share and unit-basic |
$ |
0.49 |
|
|
$ |
0.07 |
|
|
$ |
0.64 |
|
|
$ |
(0.11 |
) |
|
Adjusted FFO per common share and unit-diluted |
$ |
0.49 |
|
|
$ |
0.07 |
|
|
$ |
0.64 |
|
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Basic weighted-average common shares and units outstanding (5) |
|
164,311 |
|
|
|
164,768 |
|
|
|
164,630 |
|
|
|
164,684 |
|
|
Diluted weighted-average common shares and units outstanding (5) |
|
164,556 |
|
|
|
165,242 |
|
|
|
164,989 |
|
|
|
164,684 |
|
| Note: |
| (1) Includes depreciation and amortization expense allocated to the noncontrolling interest in the consolidated joint ventures. |
| (2) Includes our ownership interest in the depreciation and amortization expense of the unconsolidated joint ventures. |
| (3) Reclassification of interest rate swap losses (gains) from accumulated other comprehensive income (loss) to earnings for discontinued interest rate hedges. |
| (4) Represents expenses and income outside of the normal course of operations, including |
| (5) Includes 0.8 million weighted-average operating partnership units for the three and six month periods ended |
|
Reconciliation of Non-GAAP Measures (Amounts in thousands) (unaudited) |
|||||||||||||||
|
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) |
|||||||||||||||
|
|
For the three months ended |
|
For the six months ended |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Net income (loss) |
$ |
33,202 |
|
|
$ |
(52,221 |
) |
|
$ |
17,732 |
|
|
$ |
(131,339 |
) |
|
Depreciation and amortization |
|
46,922 |
|
|
|
46,915 |
|
|
|
93,787 |
|
|
|
93,858 |
|
|
Interest expense, net of interest income |
|
23,508 |
|
|
|
26,146 |
|
|
|
47,897 |
|
|
|
53,657 |
|
|
Income tax expense |
|
558 |
|
|
|
154 |
|
|
|
748 |
|
|
|
268 |
|
|
Adjustments related to unconsolidated joint ventures (1) |
|
408 |
|
|
|
408 |
|
|
|
815 |
|
|
|
818 |
|
|
EBITDA |
|
104,598 |
|
|
|
21,402 |
|
|
|
160,979 |
|
|
|
17,262 |
|
|
Loss (gain) on sale of hotel properties, net |
|
364 |
|
|
|
(103 |
) |
|
|
(1,053 |
) |
|
|
(1,186 |
) |
|
Impairment losses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,946 |
|
|
EBITDAre |
|
104,962 |
|
|
|
21,299 |
|
|
|
159,926 |
|
|
|
22,022 |
|
|
Transaction costs |
|
136 |
|
|
|
195 |
|
|
|
198 |
|
|
|
255 |
|
|
Loss on extinguishment of indebtedness, net |
|
— |
|
|
|
6,207 |
|
|
|
— |
|
|
|
6,207 |
|
|
Amortization of share-based compensation |
|
5,470 |
|
|
|
4,848 |
|
|
|
10,654 |
|
|
|
7,600 |
|
|
Derivative losses (gains) in accumulated other comprehensive income (loss) reclassified to earnings (2) |
|
— |
|
|
|
10,658 |
|
|
|
(5,866 |
) |
|
|
10,658 |
|
|
Other expenses (3) |
|
410 |
|
|
|
353 |
|
|
|
658 |
|
|
|
409 |
|
|
Adjusted EBITDA |
|
110,978 |
|
|
|
43,560 |
|
|
|
165,570 |
|
|
|
47,151 |
|
|
General and administrative (4) |
|
7,878 |
|
|
|
7,286 |
|
|
|
16,828 |
|
|
|
15,334 |
|
|
Other corporate adjustments (5) |
|
(194 |
) |
|
|
(829 |
) |
|
|
(359 |
) |
|
|
(316 |
) |
|
|
|
118,662 |
|
|
|
50,017 |
|
|
|
182,039 |
|
|
|
62,169 |
|
|
Pro forma adjustments - (income) loss from sold hotels |
|
(106 |
) |
|
|
1,362 |
|
|
|
(297 |
) |
|
|
4,591 |
|
|
Pro forma adjustments - income from acquired hotels |
|
— |
|
|
|
889 |
|
|
|
— |
|
|
|
512 |
|
|
Pro forma |
$ |
118,556 |
|
|
$ |
52,268 |
|
|
$ |
181,742 |
|
|
$ |
67,272 |
|
| Note: Pro forma statistics reflect the Company's 95 hotel portfolio owned as of |
| (1) Includes our ownership interest in the interest, depreciation, and amortization expense of the unconsolidated joint ventures. |
| (2) Reclassification of interest rate swap losses (gains) from accumulated other comprehensive income (loss) to earnings for discontinued interest rate hedges. |
| (3) Represents expenses and income outside of the normal course of operations. |
| (4) Excludes amortization of share-based compensation reflected in Adjusted EBITDA. |
| (5) Other corporate adjustments include property-level adjustments and certain revenues and expenses at corporate entities. These items include interest income, amortization of deferred management fees, key money amortization, ground rent amortization, legal fees, revenues and expenses associated with non-hotel properties, income (loss) from unconsolidated entities, internal lease rent expense, and other items. |
|
Reconciliation of Non-GAAP Measures (Amounts in thousands) (unaudited) |
|||||||||||||||
|
Pro forma |
|||||||||||||||
|
|
For the three months ended |
|
For the six months ended |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Total revenue |
$ |
330,501 |
|
|
$ |
194,254 |
|
|
$ |
573,400 |
|
|
$ |
313,806 |
|
|
Pro forma adjustments - revenue from sold hotels |
|
(117 |
) |
|
|
(6,927 |
) |
|
|
(2,337 |
) |
|
|
(11,145 |
) |
|
Pro forma adjustments - revenue from prior ownership of acquired hotels |
|
— |
|
|
|
4,351 |
|
|
|
— |
|
|
|
6,216 |
|
|
Other corporate adjustments / non-hotel revenue |
|
(17 |
) |
|
|
(18 |
) |
|
|
(32 |
) |
|
|
(38 |
) |
|
Pro forma |
$ |
330,367 |
|
|
$ |
191,660 |
|
|
$ |
571,031 |
|
|
$ |
308,839 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Pro forma |
$ |
118,556 |
|
|
$ |
52,268 |
|
|
$ |
181,742 |
|
|
$ |
67,272 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Pro forma |
|
35.9 |
% |
|
|
27.3 |
% |
|
|
31.8 |
% |
|
|
21.8 |
% |
| Note: Pro forma statistics reflect the Company's 95 hotel portfolio owned as of |
|
Consolidated Debt Summary (Amounts in thousands) (unaudited) |
|||||||
|
Loan |
Base Term |
Maturity |
Floating / Fixed (1) |
Interest Rate (2) |
|
Balance as of |
|
|
Mortgage Debt |
|
|
|
|
|
|
|
|
Mortgage loan - 1 hotel |
10 |
|
Fixed |
5.06% |
|
$ |
25,000 |
|
Mortgage loan - 7 hotels |
3 |
|
Floating |
3.30% |
|
|
200,000 |
|
Mortgage loan - 3 hotels |
5 |
|
Floating |
2.53% |
|
|
96,000 |
|
Mortgage loan - 4 hotels |
5 |
|
Floating |
3.43% |
|
|
85,000 |
|
Weighted Average / Mortgage Total |
|
|
|
3.25% |
|
$ |
406,000 |
|
|
|
|
|
|
|
|
|
|
Corporate Debt |
|
|
|
|
|
|
|
|
Revolver (4) |
4 |
|
Floating |
— |
|
$ |
— |
|
|
2 |
|
Floating |
4.18% |
|
|
100,000 |
|
|
5 |
|
Floating |
4.69% |
|
|
52,261 |
|
|
5 |
|
Floating |
4.69% |
|
|
151,683 |
|
|
5 |
|
Floating |
4.69% |
|
|
41,745 |
|
|
5 |
|
Floating |
4.03% |
|
|
72,973 |
|
|
5 |
|
Floating |
4.00% |
|
|
400,000 |
|
|
5 |
|
Fixed |
3.75% |
|
|
500,000 |
|
|
8 |
|
Fixed |
4.00% |
|
|
500,000 |
|
Weighted Average / Corporate Total |
|
|
|
4.04% |
|
$ |
1,818,662 |
|
|
|
|
|
|
|
|
|
|
Weighted Average / Total |
|
|
|
3.89% |
|
$ |
2,224,662 |
| Note: |
| (1) The floating interest rate is hedged with an interest rate swap. |
| (2) Interest rates as of |
| (3) Excludes the impact of fair value adjustments and deferred financing costs. |
| (4) As of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005984/en/
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