Q2 RevPAR increased 2.6% above 2023
Acquired a boutique lifestyle hotel in
Announced increase of quarterly dividend to
Second Quarter Highlights
- Portfolio Comparable RevPAR of
$157.30 ; an increase of 2.6% from last year - Total Revenue of
$369.3 million ; an increase of 3.5% from last year - Net Income of
$37.3 million Comparable Hotel EBITDA of$118.6 million - Adjusted EBITDA of
$109.0 million - Adjusted FFO per diluted common share and unit of
$0.51 Acquired Hotel Teatro inDenver for$35.5 million - Repurchased 0.3 million shares for approximately
$3.1 million at an average price of$9.72 - Addressed 2024 debt maturities
“We were encouraged to see industry RevPAR growth improve during the second quarter despite a choppy backdrop. Relative to this environment, we were pleased with our solid second quarter performance, which was driven by strong gains in a number of our urban markets that benefitted from growth in business and group segments,” commented
The prefix “comparable” as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. Explanations of EBITDA, EBITDAre, Adjusted EBITDA,
|
Financial and Operating Highlights ($ in thousands, except ADR, RevPAR, Change, and per share amounts) (unaudited)
|
||||||
|
|
For the three months ended |
For the six months ended |
||||
|
|
2024 |
2023 |
Change |
2024 |
2023 |
Change |
|
Operational Overview: (1) |
|
|
|
|
|
|
|
Comparable ADR |
|
|
0.6% |
|
|
0.2% |
|
Comparable Occupancy |
76.7% |
75.1% |
2.1% |
73.0% |
71.8% |
1.6% |
|
Comparable RevPAR |
|
|
2.6% |
|
|
1.8% |
|
|
|
|
|
|
|
|
|
Financial Overview: |
|
|
|
|
|
|
|
Total Revenue |
|
|
3.5% |
|
|
3.3% |
|
|
|
|
3.4% |
|
|
3.2% |
|
|
|
|
|
|
|
|
|
Net Income |
|
|
(10.6)% |
|
|
(19.5)% |
|
|
|
|
|
|
|
|
|
|
|
|
(4.0)% |
|
|
(3.3)% |
|
|
32.0% |
34.4% |
(245) bps |
29.8% |
31.8% |
(203) bps |
|
Adjusted EBITDA |
|
|
(4.3)% |
|
|
(4.0)% |
|
|
|
|
|
|
|
|
|
Adjusted FFO |
|
|
(10.5)% |
|
|
(9.3)% |
|
Adjusted FFO Per Diluted Common Share and Unit |
|
|
(8.9)% |
|
|
(6.7)% |
|
Note: |
||||||
|
(1) Comparable statistics reflect the Company's 96 hotel portfolio owned as of |
||||||
Acquisitions and Dispositions
During the second quarter of 2024, the Company purchased the 110-room
Share Repurchases
During the second quarter, the Company recycled proceeds from the sale of a non-core hotel to repurchase common shares. During the second quarter, the Company repurchased 0.3 million common shares for approximately
Balance Sheet
As of
In
In
Dividends
The Company’s
The Company's
In July, the Company's
Outlook Update
The Company is updating its full-year outlook range to incorporate recent transactions, year-to-date operating performance, and the current economic environment. No future acquisitions, dispositions, financings, or share repurchases are incorporated into the Company's outlook and could result in a material change to the Company's outlook.
|
|
FY 2024 |
|
Comparable RevPAR Growth |
1.0% to 2.5% |
|
|
|
|
Adjusted EBITDA |
|
|
Adjusted FFO per diluted share |
|
Additionally, the Company's full year 2024 outlook includes:
- Net interest expense of
$93.0 million to$95.0 million . - Capital expenditures related to renovations in the range of
$100.0 million to$120.0 million . - Diluted weighted average common shares and units of 155.0 million.
Earnings Call
The Company will conduct its quarterly analyst and investor conference call on
Supplemental Information
Please refer to the presentation of supplemental information for additional detail and comparable operating statistics, which will be 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, Section 27A 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 on Form 10-K for the year ended
For additional information or to receive press releases via email, please visit our website:
https://www.rljlodgingtrust.com
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) income tax expense; and (3) depreciation and amortization expense. 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 expense) 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 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 outside the normal course of operations. 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, are beneficial to an investor’s understanding of the Company's 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 tax expense or benefit, and non-cash interest 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
Comparable adjustments: Acquired hotel
For the three and six months ended
Hotel Teatro acquired inJune 2024
Comparable adjustments: Sold hotel
For the three and six months ended
Residence Inn Merrillville sold inMay 2024
|
Consolidated Balance Sheets (Amounts in thousands, except share and per share data) (unaudited)
|
|||||||
|
|
|
|
|
||||
|
Assets |
|
|
|
||||
|
Investment in hotel properties, net |
$ |
4,274,669 |
|
|
$ |
4,136,216 |
|
|
Investment in unconsolidated joint ventures |
|
7,386 |
|
|
|
7,398 |
|
|
Cash and cash equivalents |
|
371,133 |
|
|
|
516,675 |
|
|
Restricted cash reserves |
|
36,081 |
|
|
|
38,652 |
|
|
Hotel and other receivables, net of allowance of |
|
30,916 |
|
|
|
26,163 |
|
|
Lease right-of-use assets |
|
130,875 |
|
|
|
136,140 |
|
|
Prepaid expense and other assets |
|
66,967 |
|
|
|
58,051 |
|
|
Total assets |
$ |
4,918,027 |
|
|
$ |
4,919,295 |
|
|
Liabilities and Equity |
|
|
|
||||
|
Debt, net |
$ |
2,222,642 |
|
|
$ |
2,220,778 |
|
|
Accounts payable and other liabilities |
|
149,682 |
|
|
|
147,819 |
|
|
Advance deposits and deferred revenue |
|
33,475 |
|
|
|
32,281 |
|
|
Lease liabilities |
|
119,902 |
|
|
|
122,588 |
|
|
Accrued interest |
|
21,934 |
|
|
|
22,539 |
|
|
Distributions payable |
|
22,621 |
|
|
|
22,500 |
|
|
Total liabilities |
|
2,570,256 |
|
|
|
2,568,505 |
|
|
Equity |
|
|
|
||||
|
Shareholders’ equity: |
|
|
|
||||
|
Preferred shares of beneficial interest, |
|
|
|
||||
|
Series A Cumulative Convertible Preferred Shares, |
|
366,936 |
|
|
|
366,936 |
|
|
Common shares of beneficial interest, |
|
1,552 |
|
|
|
1,553 |
|
|
Additional paid-in capital |
|
3,000,394 |
|
|
|
3,000,894 |
|
|
Distributions in excess of net earnings |
|
(1,057,061 |
) |
|
|
(1,055,183 |
) |
|
Accumulated other comprehensive income |
|
22,171 |
|
|
|
22,662 |
|
|
Total shareholders’ equity |
|
2,333,992 |
|
|
|
2,336,862 |
|
|
Noncontrolling interests: |
|
|
|
||||
|
Noncontrolling interest in the |
|
6,318 |
|
|
|
6,294 |
|
|
Noncontrolling interest in consolidated joint ventures |
|
7,461 |
|
|
|
7,634 |
|
|
Total noncontrolling interest |
|
13,779 |
|
|
|
13,928 |
|
|
Total equity |
|
2,347,771 |
|
|
|
2,350,790 |
|
|
Total liabilities and equity |
$ |
4,918,027 |
|
|
$ |
4,919,295 |
|
|
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 |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenues |
|
|
|
|
|
|
|
||||||||
|
Operating revenues |
|
|
|
|
|
|
|
||||||||
|
Room revenue |
$ |
303,652 |
|
|
$ |
295,496 |
|
|
$ |
570,282 |
|
|
$ |
556,328 |
|
|
Food and beverage revenue |
|
40,843 |
|
|
|
38,132 |
|
|
|
76,532 |
|
|
|
71,420 |
|
|
Other revenue |
|
24,802 |
|
|
|
23,332 |
|
|
|
46,893 |
|
|
|
43,715 |
|
|
Total revenues |
|
369,297 |
|
|
|
356,960 |
|
|
|
693,707 |
|
|
|
671,463 |
|
|
Expenses |
|
|
|
|
|
|
|
||||||||
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
|
Room expense |
|
73,941 |
|
|
|
70,333 |
|
|
|
143,327 |
|
|
|
136,384 |
|
|
Food and beverage expense |
|
30,304 |
|
|
|
28,037 |
|
|
|
58,931 |
|
|
|
54,174 |
|
|
Management and franchise fee expense |
|
29,789 |
|
|
|
29,277 |
|
|
|
55,444 |
|
|
|
55,459 |
|
|
Other operating expenses |
|
90,792 |
|
|
|
84,207 |
|
|
|
180,601 |
|
|
|
166,831 |
|
|
Total property operating expenses |
|
224,826 |
|
|
|
211,854 |
|
|
|
438,303 |
|
|
|
412,848 |
|
|
Depreciation and amortization |
|
44,474 |
|
|
|
44,925 |
|
|
|
89,153 |
|
|
|
89,921 |
|
|
Property tax, insurance and other |
|
28,753 |
|
|
|
24,684 |
|
|
|
56,587 |
|
|
|
49,332 |
|
|
General and administrative |
|
13,940 |
|
|
|
14,627 |
|
|
|
29,045 |
|
|
|
28,283 |
|
|
Transaction costs |
|
76 |
|
|
|
4 |
|
|
|
90 |
|
|
|
24 |
|
|
Total operating expenses |
|
312,069 |
|
|
|
296,094 |
|
|
|
613,178 |
|
|
|
580,408 |
|
|
Other income, net |
|
687 |
|
|
|
736 |
|
|
|
3,878 |
|
|
|
1,585 |
|
|
Interest income |
|
4,118 |
|
|
|
5,011 |
|
|
|
8,905 |
|
|
|
8,675 |
|
|
Interest expense |
|
(28,049 |
) |
|
|
(24,543 |
) |
|
|
(54,507 |
) |
|
|
(48,673 |
) |
|
Gain (loss) on sale of hotel properties, net |
|
3,546 |
|
|
|
(44 |
) |
|
|
3,546 |
|
|
|
(44 |
) |
|
Loss on extinguishment of indebtedness, net |
|
— |
|
|
|
(169 |
) |
|
|
— |
|
|
|
(169 |
) |
|
Income before equity in income from unconsolidated joint ventures |
|
37,530 |
|
|
|
41,857 |
|
|
|
42,351 |
|
|
|
52,429 |
|
|
Equity in income from unconsolidated joint ventures |
|
154 |
|
|
|
220 |
|
|
|
388 |
|
|
|
501 |
|
|
Income before income tax expense |
|
37,684 |
|
|
|
42,077 |
|
|
|
42,739 |
|
|
|
52,930 |
|
|
Income tax expense |
|
(393 |
) |
|
|
(357 |
) |
|
|
(702 |
) |
|
|
(696 |
) |
|
Net income |
|
37,291 |
|
|
|
41,720 |
|
|
|
42,037 |
|
|
|
52,234 |
|
|
Net (income) loss attributable to noncontrolling interests: |
|
|
|
|
|
|
|
||||||||
|
Noncontrolling interest in the |
|
(169 |
) |
|
|
(171 |
) |
|
|
(167 |
) |
|
|
(188 |
) |
|
Noncontrolling interest in consolidated joint ventures |
|
(16 |
) |
|
|
(154 |
) |
|
|
173 |
|
|
|
(6 |
) |
|
Net income attributable to RLJ |
|
37,106 |
|
|
|
41,395 |
|
|
|
42,043 |
|
|
|
52,040 |
|
|
Preferred dividends |
|
(6,279 |
) |
|
|
(6,279 |
) |
|
|
(12,557 |
) |
|
|
(12,557 |
) |
|
Net income attributable to common shareholders |
$ |
30,827 |
|
|
$ |
35,116 |
|
|
$ |
29,486 |
|
|
$ |
39,483 |
|
|
Basic per common share data: |
|
|
|
|
|
|
|
||||||||
|
Net income per share attributable to common shareholders - basic |
$ |
0.20 |
|
|
$ |
0.22 |
|
|
$ |
0.19 |
|
|
$ |
0.25 |
|
|
Weighted-average number of common shares |
|
153,641,065 |
|
|
|
156,424,444 |
|
|
|
153,305,640 |
|
|
|
157,945,406 |
|
|
Diluted per common share data: |
|
|
|
|
|
|
|
||||||||
|
Net income per share attributable to common shareholders - diluted |
$ |
0.20 |
|
|
$ |
0.22 |
|
|
$ |
0.19 |
|
|
$ |
0.25 |
|
|
Weighted-average number of common shares |
|
154,105,871 |
|
|
|
156,741,187 |
|
|
|
154,151,135 |
|
|
|
158,381,380 |
|
|
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 |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income |
$ |
37,291 |
|
|
$ |
41,720 |
|
|
$ |
42,037 |
|
|
$ |
52,234 |
|
|
Preferred dividends |
|
(6,279 |
) |
|
|
(6,279 |
) |
|
|
(12,557 |
) |
|
|
(12,557 |
) |
|
Depreciation and amortization |
|
44,474 |
|
|
|
44,925 |
|
|
|
89,153 |
|
|
|
89,921 |
|
|
(Gain) loss on sale of hotel properties, net |
|
(3,546 |
) |
|
|
44 |
|
|
|
(3,546 |
) |
|
|
44 |
|
|
Noncontrolling interest in consolidated joint ventures |
|
(16 |
) |
|
|
(154 |
) |
|
|
173 |
|
|
|
(6 |
) |
|
Adjustments related to consolidated joint venture (1) |
|
(47 |
) |
|
|
(44 |
) |
|
|
(92 |
) |
|
|
(87 |
) |
|
Adjustments related to unconsolidated joint venture (2) |
|
228 |
|
|
|
236 |
|
|
|
457 |
|
|
|
473 |
|
|
FFO |
|
72,105 |
|
|
|
80,448 |
|
|
|
115,625 |
|
|
|
130,022 |
|
|
Transaction costs |
|
76 |
|
|
|
4 |
|
|
|
90 |
|
|
|
24 |
|
|
Pre-opening costs (3) |
|
125 |
|
|
|
639 |
|
|
|
199 |
|
|
|
860 |
|
|
Loss on extinguishment of indebtedness, net |
|
— |
|
|
|
169 |
|
|
|
— |
|
|
|
169 |
|
|
Amortization of share-based compensation |
|
5,275 |
|
|
|
6,089 |
|
|
|
11,708 |
|
|
|
11,781 |
|
|
Non-cash interest expense related to discontinued interest rate hedges |
|
418 |
|
|
|
482 |
|
|
|
900 |
|
|
|
964 |
|
|
Other expenses (4) |
|
620 |
|
|
|
5 |
|
|
|
1,951 |
|
|
|
96 |
|
|
Adjusted FFO |
$ |
78,619 |
|
|
$ |
87,836 |
|
|
$ |
130,473 |
|
|
$ |
143,916 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted FFO per common share and unit-basic |
$ |
0.51 |
|
|
$ |
0.56 |
|
|
$ |
0.85 |
|
|
$ |
0.91 |
|
|
Adjusted FFO per common share and unit-diluted |
$ |
0.51 |
|
|
$ |
0.56 |
|
|
$ |
0.84 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic weighted-average common shares and units outstanding (5) |
|
154,413 |
|
|
|
157,196 |
|
|
|
154,077 |
|
|
|
158,717 |
|
|
Diluted weighted-average common shares and units outstanding (5) |
|
154,878 |
|
|
|
157,513 |
|
|
|
154,923 |
|
|
|
159,153 |
|
|
Notes: |
|
|
(1) |
Includes depreciation and amortization expense allocated to the noncontrolling interest in the consolidated joint venture. |
|
(2) |
Includes our ownership interest in the depreciation and amortization expense of the unconsolidated joint venture. |
|
(3) |
Represents expenses related to the brand conversions of certain hotel properties prior to opening. |
|
(4) |
Represents expenses and income outside of the normal course of operations. |
|
(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 |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income |
$ |
37,291 |
|
|
$ |
41,720 |
|
|
$ |
42,037 |
|
|
$ |
52,234 |
|
|
Depreciation and amortization |
|
44,474 |
|
|
|
44,925 |
|
|
|
89,153 |
|
|
|
89,921 |
|
|
Interest expense, net of interest income |
|
23,931 |
|
|
|
19,532 |
|
|
|
45,602 |
|
|
|
39,998 |
|
|
Income tax expense |
|
393 |
|
|
|
357 |
|
|
|
702 |
|
|
|
696 |
|
|
Adjustments related to unconsolidated joint venture (1) |
|
332 |
|
|
|
345 |
|
|
|
667 |
|
|
|
690 |
|
|
EBITDA |
|
106,421 |
|
|
|
106,879 |
|
|
|
178,161 |
|
|
|
183,539 |
|
|
(Gain) loss on sale of hotel properties, net |
|
(3,546 |
) |
|
|
44 |
|
|
|
(3,546 |
) |
|
|
44 |
|
|
EBITDAre |
|
102,875 |
|
|
|
106,923 |
|
|
|
174,615 |
|
|
|
183,583 |
|
|
Transaction costs |
|
76 |
|
|
|
4 |
|
|
|
90 |
|
|
|
24 |
|
|
Pre-opening costs (2) |
|
125 |
|
|
|
639 |
|
|
|
199 |
|
|
|
860 |
|
|
Loss on extinguishment of indebtedness, net |
|
— |
|
|
|
169 |
|
|
|
— |
|
|
|
169 |
|
|
Amortization of share-based compensation |
|
5,275 |
|
|
|
6,089 |
|
|
|
11,708 |
|
|
|
11,781 |
|
|
Other expenses (3) |
|
620 |
|
|
|
5 |
|
|
|
1,951 |
|
|
|
96 |
|
|
Adjusted EBITDA |
|
108,971 |
|
|
|
113,829 |
|
|
|
188,563 |
|
|
|
196,513 |
|
|
General and administrative |
|
8,665 |
|
|
|
8,538 |
|
|
|
17,337 |
|
|
|
16,502 |
|
|
Other corporate adjustments |
|
691 |
|
|
|
666 |
|
|
|
1,358 |
|
|
|
1,137 |
|
|
|
|
118,327 |
|
|
|
123,033 |
|
|
|
207,258 |
|
|
|
214,152 |
|
|
Comparable adjustments - income from sold hotels |
|
(162 |
) |
|
|
(558 |
) |
|
|
(352 |
) |
|
|
(918 |
) |
|
Comparable adjustments - income from acquired hotels |
|
474 |
|
|
|
1,057 |
|
|
|
525 |
|
|
|
1,343 |
|
|
|
$ |
118,639 |
|
|
$ |
123,532 |
|
|
$ |
207,432 |
|
|
$ |
214,577 |
|
|
Notes: |
|
|
(1) |
Includes our ownership interest in the interest, depreciation, and amortization expense of the unconsolidated joint venture. |
|
(2) |
Represents expenses related to the brand conversions of certain hotel properties prior to opening. |
|
(3) |
Represents expenses and income outside of the normal course of operations. |
|
Reconciliation of Non-GAAP Measures (Amounts in thousands except margin data) (unaudited)
|
|||||||||||||||
|
|
|||||||||||||||
|
|
For the three months ended |
|
For the six months ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Total revenue |
$ |
369,297 |
|
|
$ |
356,960 |
|
|
$ |
693,707 |
|
|
$ |
671,463 |
|
|
Comparable adjustments - revenue from sold hotels |
|
(359 |
) |
|
|
(866 |
) |
|
|
(1,001 |
) |
|
|
(1,487 |
) |
|
Comparable adjustments - revenue from prior ownership of acquired hotels |
|
2,107 |
|
|
|
2,806 |
|
|
|
3,834 |
|
|
|
4,649 |
|
|
Other corporate adjustments / non-hotel revenue |
|
(18 |
) |
|
|
(21 |
) |
|
|
(35 |
) |
|
|
(36 |
) |
|
|
$ |
371,027 |
|
|
$ |
358,880 |
|
|
$ |
696,505 |
|
|
$ |
674,589 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
118,639 |
|
|
$ |
123,532 |
|
|
$ |
207,432 |
|
|
$ |
214,577 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
32.0 |
% |
|
|
34.4 |
% |
|
|
29.8 |
% |
|
|
31.8 |
% |
|
Reconciliation of Non-GAAP Measures - Full-Year Outlook (Amounts in millions) (unaudited)
|
|||||||
|
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) |
|||||||
|
|
For the year ended |
||||||
|
|
Low End |
|
High End |
||||
|
Net income |
$ |
44.0 |
|
|
$ |
62.0 |
|
|
Depreciation and amortization |
|
187.0 |
|
|
|
187.0 |
|
|
Interest expense, net of interest income |
|
93.0 |
|
|
|
95.0 |
|
|
Income tax expense |
|
1.5 |
|
|
|
1.5 |
|
|
Adjustments related to joint ventures |
|
1.5 |
|
|
|
1.5 |
|
|
EBITDA |
|
327.0 |
|
|
|
347.0 |
|
|
Gain on sale of hotel properties, net |
|
(3.5 |
) |
|
|
(3.5 |
) |
|
EBITDAre |
|
323.5 |
|
|
|
343.5 |
|
|
Amortization of share-based compensation |
|
21.0 |
|
|
|
21.0 |
|
|
All other items, net |
|
2.0 |
|
|
|
2.0 |
|
|
Adjusted EBITDA |
|
346.5 |
|
|
|
366.5 |
|
|
General and administrative |
|
36.0 |
|
|
|
36.0 |
|
|
|
|
382.5 |
|
|
|
402.5 |
|
|
Comparable adjustments - income from sold hotels |
|
(0.5 |
) |
|
|
(0.5 |
) |
|
Comparable adjustments - income from acquired hotels |
|
0.5 |
|
|
|
0.5 |
|
|
|
$ |
382.5 |
|
|
$ |
402.5 |
|
|
Funds from Operations (FFO) Attributable to Common Shareholders and Unitholders |
|||||||
|
|
For the year ended |
||||||
|
|
Low End |
|
High End |
||||
|
Net income |
$ |
44.0 |
|
|
$ |
62.0 |
|
|
Preferred dividends |
|
(25.0 |
) |
|
|
(25.0 |
) |
|
Depreciation and amortization |
|
187.0 |
|
|
|
187.0 |
|
|
Gain on sale of hotel properties, net |
|
(3.5 |
) |
|
|
(3.5 |
) |
|
Adjustments related to joint ventures |
|
1.0 |
|
|
|
1.0 |
|
|
FFO |
|
203.5 |
|
|
|
221.5 |
|
|
Amortization of share-based compensation |
|
21.0 |
|
|
|
21.0 |
|
|
All other items, net |
|
1.0 |
|
|
|
3.0 |
|
|
Adjusted FFO |
$ |
225.5 |
|
|
$ |
245.5 |
|
|
|
|
|
|
||||
|
Adjusted FFO per common share and unit-diluted |
$ |
1.45 |
|
|
$ |
1.58 |
|
|
|
|
|
|
||||
|
Diluted weighted-average common shares and units outstanding |
|
155.0 |
|
|
|
155.0 |
|
|
Consolidated Debt Summary (Amounts in thousands except interest data) (unaudited)
|
||||||||
|
Loan |
Base Term (Years) |
Maturity (incl. extensions) |
Floating / Fixed (1) |
Interest Rate (2) |
|
Balance as of June 30, 2024 (3) |
||
|
Mortgage Debt |
|
|
|
|
|
|
||
|
Mortgage loan - 1 hotel |
10 |
|
Fixed |
5.06% |
|
$ |
25,000 |
|
|
Mortgage loan - 3 hotels |
5 |
|
Floating |
5.04% |
|
|
96,000 |
|
|
Mortgage loan - 4 hotels |
5 |
|
Floating |
5.61% |
|
|
85,000 |
|
|
Weighted Average / Mortgage Total |
|
|
|
5.28% |
|
$ |
206,000 |
|
|
|
|
|
|
|
|
|
||
|
Corporate Debt |
|
|
|
|
|
|
||
|
Revolver (4) |
4 |
|
Floating |
7.09% |
|
$ |
200,000 |
|
|
|
3 |
|
Floating |
4.07% |
|
|
225,000 |
|
|
|
3 |
|
Floating |
7.04% |
|
|
200,000 |
|
|
|
5 |
|
Floating |
4.72% |
|
|
400,000 |
|
|
|
5 |
|
Fixed |
3.75% |
|
|
500,000 |
|
|
|
8 |
|
Fixed |
4.00% |
|
|
500,000 |
|
|
Weighted Average / Corporate Total |
|
|
|
4.69% |
|
$ |
2,025,000 |
|
|
|
|
|
|
|
|
|
||
|
Weighted Average / Total |
|
|
|
4.75% |
|
$ |
2,231,000 |
|
|
Notes: |
|
|
(1) |
The floating interest rate is hedged, or partially 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/20240801568739/en/
Source: