UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 24, 2016
RLJ LODGING TRUST
(Exact name of registrant as specified in its charter)
Maryland | 001-35169 | 27-4706509 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) | ||
3 Bethesda Metro Center Suite 1000 Bethesda, MD | 20814 | |
(Address of principal executive offices) | (Zip Code) | |
(301) 280-7777
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On February 24, 2016, RLJ Lodging Trust (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2015. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information included in this Current Report on Form 8-K (including Exhibit 99.1 hereto) shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) The following exhibits are filed as part of this report:
Exhibit Number | Description | ||
99.1 | Press release dated February 24, 2016, issued by RLJ Lodging Trust, providing financial results for the quarter and year ended December 31, 2015. | ||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RLJ LODGING TRUST | ||
Dated: February 24, 2016 | By: | /s/ Thomas J. Baltimore, Jr. |
Thomas J. Baltimore, Jr. | ||
President, Chief Executive Officer and Trustee | ||
EXHIBIT LIST
Exhibit Number | Description | ||
99.1 | Press release dated February 24, 2016, issued by RLJ Lodging Trust, providing financial results for the quarter and year ended December 31, 2015. | ||
Press Release
RLJ Lodging Trust Reports Fourth Quarter
and Full Year 2015 Results
- Full year Pro forma RevPAR increased 3.9%
- Acquired three hotels in key high-growth markets for $175.9 million
- Sold 23 non-core hotels for $252.5 million
- Repurchased 8.0 million shares for $225.2 million
Bethesda, MD, February 24, 2016 – RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the quarter and year ended December 31, 2015.
Full Year Highlights
• | Pro forma RevPAR increased 3.9%, Pro forma ADR increased 5.3%, and Pro forma Occupancy decreased 1.4% |
• | Achieved Pro forma Hotel EBITDA Margin of 36.4% |
• | Pro forma Consolidated Hotel EBITDA increased 6.1% to $405.1 million |
• | Adjusted FFO increased 4.5% to $324.7 million |
• | Acquired three hotels in key high-growth markets for $175.9 million |
• | Sold 23 non-core hotels for $252.5 million |
• | Completed and opened two hotel conversion properties |
• | Distributed an aggregate cash dividend of $1.32 per share, representing an increase of 26.9% over the prior year |
• | Repurchased 8.0 million shares for $225.2 million |
Fourth Quarter Highlights
• | Pro forma RevPAR increased 2.5%, Pro forma ADR increased 3.6%, and Pro forma Occupancy decreased 1.0% |
• | Achieved Pro forma Hotel EBITDA Margin of 35.5% |
• | Pro forma Consolidated Hotel EBITDA increased 4.1% to $95.9 million |
• | Sold one non-core hotel for $14.1 million |
• | Repurchased 1.1 million shares for $25.2 million |
“In 2015, we continued to execute on our strategic initiatives, including driving RevPAR growth, improving our portfolio by recycling non-core assets, and delivering high quality conversions, as well as returning capital to our shareholders,” commented Thomas J. Baltimore, Jr., President and Chief Executive Officer. “As we look ahead, lodging fundamentals remain positive and our diversified portfolio, supported by our fortress balance sheet, is well-positioned to deliver continued growth.”
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Financial and Operating Results
Performance metrics such as Occupancy, Average Daily Rate (“ADR”), Revenue Per Available Room (“RevPAR”), Hotel EBITDA, and Hotel EBITDA Margin are Pro forma. The prefix “Pro forma” as defined by the Company, denotes operating results which include results for periods prior to its ownership. Pro forma RevPAR and Pro forma Hotel EBITDA Margin are reported on a comparable basis and therefore exclude hotels sold during the period and non-comparable hotels that were not open for operation or were closed for renovation for comparable periods. Explanations of EBITDA, Adjusted EBITDA, Hotel EBITDA, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included at the end of this release.
Pro forma RevPAR for the three months ended December 31, 2015, increased 2.5% over the comparable period in 2014, driven by a Pro forma ADR increase of 3.6%, which was offset by a Pro forma Occupancy decrease of 1.0%. Excluding Houston and New York, which experienced softness in the quarter, Pro forma RevPAR growth was 4.8%. Six of the Company’s markets achieved double-digit RevPAR growth, including Dallas, Tampa, Northern California, Indianapolis, Boston, and Salt Lake City, which experienced RevPAR growth of 20.8%, 17.0%, 15.3%, 14.9%, 14.8%, and 10.6%, respectively. For the year ended December 31, 2015, Pro forma RevPAR increased 3.9% over the comparable period in 2014, driven by a Pro forma ADR increase of 5.3%, which was offset by a Pro forma Occupancy decrease of 1.4%.
Pro forma Hotel EBITDA Margin for the three months ended December 31, 2015, decreased 27 basis points over the comparable period in 2014 to 35.5%. Excluding Houston and New York, Pro forma Hotel EBITDA Margin increased 52 basis points. For the year ended December 31, 2015, Pro forma Hotel EBITDA Margin increased nine basis points over the comparable period in 2014 to 36.4%. Excluding Houston and New York, Pro forma Hotel EBITDA Margin increased 87 basis points.
Pro forma Consolidated Hotel EBITDA includes the results of non-comparable hotels. For the three months ended December 31, 2015, Pro forma Consolidated Hotel EBITDA increased $3.8 million to $95.9 million, representing a 4.1% increase over the comparable period in 2014. For the year ended December 31, 2015, Pro forma Consolidated Hotel EBITDA increased $23.3 million to $405.1 million, representing an increase of 6.1% over the comparable period in 2014.
Adjusted EBITDA for the three months ended December 31, 2015, decreased $0.5 million to $89.8 million, representing a 0.5% decrease over the comparable period in 2014. For the year ended December 31, 2015, Adjusted EBITDA increased $13.2 million to $380.1 million, representing an increase of 3.6% over the comparable period in 2014.
Adjusted FFO for the three months ended December 31, 2015, decreased $1.4 million to $74.8 million, representing a 1.8% decrease over the comparable period in 2014. For the year ended December 31, 2015, Adjusted FFO increased $14.0 million to $324.7 million representing an increase of 4.5% over the comparable period in 2014.
Adjusted FFO per diluted share and unit for the quarter and year ended December 31, 2015, was $0.60 and $2.50, respectively, based on the Company’s diluted weighted-average common shares and units outstanding of 125.6 million and 129.9 million for each period, respectively.
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Non-recurring items and other adjustments which were noteworthy for the three months ended December 31, 2015, included a gain of $4.6 million primarily associated with the sale of one hotel, an impairment loss of $1.0 million related to one hotel, and a non-cash deferred tax benefit of $39.9 million related to the release of a valuation allowance. In addition to these items, non-recurring items during the year ended December 31, 2015, also included gains totaling $23.8 million attributed to the sale of 22 other hotels, for a total gain on sale of $28.4 million for the year.
Non-recurring items are included in net income attributable to common shareholders but are excluded from Adjusted EBITDA and Adjusted FFO, as applicable. A complete listing of non-recurring items is provided in the Non-GAAP reconciliation tables in this press release for the quarter and year ended December 31, 2015 and 2014.
Net income attributable to common shareholders for the three months ended December 31, 2015, was $73.8 million, compared to $33.8 million for the comparable period in 2014. For the year ended December 31, 2015, net income attributable to common shareholders was $218.2 million, compared to $135.4 million for the comparable period in 2014.
Net cash flow from operating activities for the year ended December 31, 2015, totaled $328.9 million, compared to $298.8 million for the comparable period in 2014.
Acquisitions
During the year ended December 31, 2015, the Company acquired three hotels for a gross purchase price of approximately $175.9 million.
On July 15, 2015, the Company acquired the 164-room Hyatt Place DC/Downtown/K Street in Washington, DC for $68.0 million, or approximately $415,000 per key. The Company expects that the purchase price will represent a forward capitalization rate of approximately 7.1% based on the hotel's projected 2016 net operating income.
On July 20, 2015, the Company acquired the 170-room Homewood Suites Seattle/Lynnwood in Lynnwood, WA for $37.9 million, or approximately $223,000 per key. The Company expects that the purchase price will represent a forward capitalization rate of approximately 8.0% based on the hotel's projected 2016 net operating income.
On September 25, 2015, the Company acquired the 156-room Residence Inn Palo Alto Los Altos in Los Altos, CA for $70.0 million, or approximately $449,000 per key. The Company expects that the purchase price will represent a forward capitalization rate of approximately 8.1% based on the hotel's projected 2016 net operating income.
Conversions
On August 24, 2015, the Company completed the conversion of the 167-room SpringHill Suites Houston Downtown/Convention Center in Houston, TX for an all-in investment of $32.6 million, or approximately $195,000 per key. The Company expects a forward capitalization rate of approximately 8.0% based on the hotel's projected 2016 net operating income.
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On September 19, 2015, the Company completed the conversion of the 166-room Courtyard San Francisco Union Square in San Francisco, CA for an all-in investment of $56.5 million, or approximately $340,000 per key. The Company expects a forward capitalization rate of approximately 8.6% based on the hotel's projected 2016 net operating income.
Dispositions
During the year ended December 31, 2015, the Company sold 23 hotels for total proceeds of approximately $252.5 million.
On February 23, 2015, the Company sold a portfolio of 20 hotels totaling 2,461 rooms for approximately $230.3 million.
On May 22, 2015, the Company sold the 63-room Fairfield Inn & Suites Valparaiso in Valparaiso, IN for $2.4 million.
On July 7, 2015, the Company sold the 80-room Residence Inn South Bend in South Bend, IN for $5.8 million.
On October 14, 2015, the Company sold the 221-room Embassy Suites Columbus in Columbus, OH for $14.1 million.
Balance Sheet
During the year ended December 31, 2015, the Company repaid approximately $165.0 million of property level debt associated with 20 assets.
Loan | Hotels | Maturity | Floating / Fixed | Balance as of Debt Payoff | |||
Capmark Financial Group | 1 | May 2015 | Fixed | $ | 10,513 | ||
Capmark Financial Group | 1 | Jun 2015 | Fixed | 4,561 | |||
Barclays Bank | 12 | Jun 2015 | Fixed | 107,130 | |||
Barclays Bank | 4 | Jun 2015 | Fixed | 26,689 | |||
Capmark Financial Group | 1 | Jul 2015 | Fixed | 6,172 | |||
Barclays Bank | 1 | Sep 2015 | Fixed | 9,939 | |||
Total Debt Payoff | 20 | $ | 165,004 | ||||
Note: Excludes $1.6 million of amortization paid down during the year.
On July 1, 2015, the Company drew down the entire $150.0 million of funds available under the 2014 Seven-Year Term Loan. Additionally, the Company drew the remaining $7.0 million available under its first mortgage loan on the Marriott Louisville Downtown.
On September 25, 2015, the Company assumed approximately $33.4 million of property-level CMBS debt associated with the Residence Inn Palo Alto Los Altos.
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As of December 31, 2015, the Company had $134.2 million of unrestricted cash on its balance sheet, $300.0 million available on its revolving credit facility, and $1.6 billion of debt outstanding. The Company’s ratio of net debt to Adjusted EBITDA, pro forma for acquisitions and dispositions, for the year ended December 31, 2015, was 3.8 times.
Dividends
The Company’s Board of Trustees declared a cash dividend of $0.33 per common share of beneficial interest in the fourth quarter. The dividend was paid on January 15, 2016, to shareholders of record as of December 31, 2015.
For the year ended December 31, 2015, the Company distributed a total dividend of $1.32 per common share of beneficial interest, representing an increase of 26.9% over the prior year's annual distribution.
Share Buyback
During the year ended December 31, 2015, the Company's Board of Trustees authorized an initial share repurchase of $200.0 million of the Company's common shares on May 1, 2015 and upsized the program to $400.0 million on October 30, 2015.
In the fourth quarter of 2015, the Company repurchased 1.1 million shares for $25.2 million at an average price per share of $24.00. In aggregate, the Company repurchased 8.0 million shares for $225.2 million at an average price per share of $27.99. The Company’s authorized share buyback program has a remaining capacity of $174.8 million.
Subsequent Events
On February 22, 2016, the Company sold the 62-room Holiday Inn Express Merrillville in Merrillville, IN for $2.9 million.
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2016 Outlook
The Company’s outlook does not include operational results from the recently sold Holiday Inn Express Merrillville and excludes potential future acquisitions and dispositions, which could result in a material change to the Company’s outlook. The 2016 outlook is also based on a number of other assumptions, many of which are outside the Company’s control and all of which are subject to change.
For the full year 2016, the Company anticipates:
Current Outlook | |
Pro forma RevPAR growth (1) | 3% to 5% |
Pro forma Hotel EBITDA Margin (1) | 36.5% to 37.5% |
Pro forma Consolidated Hotel EBITDA | $425.0M to $450.0M |
Corporate Cash General & Administrative | $27.5M to $28.5M |
(1) Excludes non-comparable hotels. Properties closed for renovations are considered non-comparable and therefore are excluded for periods in which they are closed.
Earnings Call
The Company will conduct its quarterly analyst and investor conference call on February 25, 2016, at 10:00 a.m. (Eastern Time). The conference call can be accessed by dialing (877) 407-3982 or (201) 493-6780 for international participants and requesting RLJ Lodging Trust’s fourth quarter earnings conference call. Additionally, a live webcast of the conference call will be available through the Company’s website at http://rljlodgingtrust.com. A replay of the conference call webcast will be archived and available online through the Investor Relations section of the Company’s website.
About Us
RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust focused on acquiring premium-branded, focused-service and compact full-service hotels. The Company owns 125 hotels with approximately 20,800 rooms, located in 21 states and the District of Columbia.
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Forward Looking Statements
The following 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,” 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 the Company’s actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: the current global economic uncertainty, increased direct competition, changes in government regulations or accounting rules, changes in local, national, and global real estate conditions, declines in the lodging industry, seasonality of the lodging industry, risks related to natural disasters, such as earthquakes and hurricanes, hostilities, including future terrorist attacks or fear of hostilities that affect travel, the Company’s ability to obtain lines of credit or permanent financing on satisfactory terms, changes in interest rates, access to capital through offerings of the Company’s common and preferred shares of beneficial interest, or debt, the Company’s ability to identify suitable acquisitions, the Company’s ability to close on identified acquisitions and integrate those businesses, and inaccuracies of the Company’s accounting estimates. Given these uncertainties, undue reliance should not be placed on such 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 SEC.
###
Additional Contacts:
Leslie D. Hale, Chief Financial Officer, RLJ Lodging Trust – (301) 280-7774
For additional information or to receive press releases via email, please visit our website:
http://rljlodgingtrust.com
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RLJ Lodging Trust
Non-GAAP and Accounting Commentary
Non-Generally Accepted Accounting Principles (“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) Adjusted EBITDA, and (5) Hotel EBITDA. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as a measure of its operating performance. FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, and Hotel EBITDA as calculated by the Company, may not be comparable to other companies that do not define such terms exactly as the Company.
Funds From Operations (“FFO”)
The Company calculates FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding gains or losses from sales of real estate, impairment, the cumulative effect of changes in accounting principles, plus depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company’s operations. The Company believes that the presentation of FFO provides useful information to investors regarding the Company’s operating performance and can facilitate comparisons of operating performance between periods and between real estate investment trusts (“REITs”), even though FFO does not represent an amount that accrues directly to common shareholders.
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 RLJ Lodging Trust, L.P., the Company’s operating partnership, because the OP units are redeemable for common shares of the Company. The Company believes it is meaningful for the investor to understand FFO attributable to all common shares and OP units.
Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”)
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. The Company presents EBITDA attributable to common shareholders, which includes OP units, because the OP units
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are redeemable for common shares of the Company. The Company believes it is meaningful for the investor to understand EBITDA attributable to all common shares and OP units.
Hotel EBITDA
With respect to Consolidated Hotel EBITDA, the Company believes that excluding the effect of corporate-level expenses and non-cash items provides a more complete understanding of the operating results over which individual hotels and operators have direct control. The Company believes property-level results provide investors with supplemental information about the ongoing operational performance of the Company’s hotels and the effectiveness of third-party management companies.
Pro forma Consolidated Hotel EBITDA includes results for periods prior to ownership, includes non-comparable hotels which were not open for operation or were closed for renovations for comparable periods, and excludes sold hotels. Pro forma Hotel EBITDA excludes the results of non-comparable hotels.
Adjustments to FFO and EBITDA
The Company adjusts FFO and EBITDA for certain additional items, such as transaction and pursuit costs, the amortization of share based compensation, and certain other expenses that the Company considers outside the normal course of business or extraordinary. The Company believes that Adjusted FFO and Adjusted EBITDA provide useful supplemental information to investors regarding its ongoing operating performance that, when considered with net income, FFO, and EBITDA, is beneficial to an investor’s understanding of its operating performance. The Company adjusts FFO and EBITDA for the following items, as applicable:
• | Transaction and Pursuit Costs: The Company excludes transaction and pursuit costs expensed during the period because it believes they do not reflect the underlying performance of the Company. |
• | Non-Cash Expenses: The Company excludes the effect of certain non-cash items because it believes they do not reflect the underlying performance of the Company. The Company has excluded the amortization of share based compensation, non-cash gain or loss on the disposal of assets, non-cash debt extinguishment costs, the accelerated amortization of deferred financing fees, impairment losses, and non-cash deferred tax benefits. |
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RLJ Lodging Trust
Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
December 31, 2015 | December 31, 2014 | ||||||
Assets | |||||||
Investment in hotel properties, net | $ | 3,674,999 | $ | 3,518,803 | |||
Cash and cash equivalents | 134,192 | 262,458 | |||||
Restricted cash reserves | 55,455 | 63,054 | |||||
Hotel and other receivables, net of allowance of $117 and $166, respectively | 25,755 | 25,691 | |||||
Deferred financing costs, net | 8,096 | 11,421 | |||||
Deferred income tax asset | 49,978 | 7,502 | |||||
Prepaid expense and other assets | 31,736 | 42,115 | |||||
Assets of hotel properties held for sale | — | 197,335 | |||||
Total assets | $ | 3,980,211 | $ | 4,128,379 | |||
Liabilities and Equity | |||||||
Mortgage loans | $ | 407,755 | $ | 532,747 | |||
Term loans | 1,175,000 | 1,025,000 | |||||
Accounts payable and other liabilities | 129,192 | 129,388 | |||||
Deferred income tax liability | 9,801 | 7,879 | |||||
Advance deposits and deferred revenue | 11,647 | 9,984 | |||||
Accrued interest | 4,883 | 2,783 | |||||
Distributions payable | 41,409 | 42,114 | |||||
Total liabilities | 1,779,687 | 1,749,895 | |||||
Equity | |||||||
Shareholders’ equity: | |||||||
Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized; zero shares issued and outstanding at December 31, 2015 and 2014, respectively. | — | — | |||||
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 124,635,675 and 131,964,706 shares issued and outstanding at December 31, 2015 and 2014, respectively. | 1,246 | 1,319 | |||||
Additional paid-in-capital | 2,195,732 | 2,419,731 | |||||
Accumulated other comprehensive loss | (16,602 | ) | (13,644 | ) | |||
Retained earnings (distributions in excess of net earnings) | 2,439 | (46,415 | ) | ||||
Total shareholders’ equity | 2,182,815 | 2,360,991 | |||||
Noncontrolling interest: | |||||||
Noncontrolling interest in joint venture | 6,177 | 6,295 | |||||
Noncontrolling interest in Operating Partnership | 11,532 | 11,198 | |||||
Total noncontrolling interest | 17,709 | 17,493 | |||||
Total equity | 2,200,524 | 2,378,484 | |||||
Total liabilities and equity | $ | 3,980,211 | $ | 4,128,379 | |||
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RLJ Lodging Trust
Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
For the three months ended December 31, | For the year ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Revenue | |||||||||||||||
Operating revenue | |||||||||||||||
Room revenue | $ | 237,399 | $ | 242,035 | $ | 985,361 | $ | 969,402 | |||||||
Food and beverage revenue | 29,211 | 29,614 | 114,818 | 107,538 | |||||||||||
Other operating department revenue | 8,653 | 8,462 | 36,161 | 32,257 | |||||||||||
Total revenue | $ | 275,263 | $ | 280,111 | $ | 1,136,340 | $ | 1,109,197 | |||||||
Expense | |||||||||||||||
Operating expense | |||||||||||||||
Room expense | $ | 54,498 | $ | 54,402 | $ | 220,101 | $ | 213,071 | |||||||
Food and beverage expense | 20,367 | 20,452 | 81,117 | 75,468 | |||||||||||
Management and franchise fee expense | 27,758 | 28,228 | 116,462 | 114,802 | |||||||||||
Other operating expense | 58,481 | 62,658 | 239,966 | 243,004 | |||||||||||
Total property operating expense | 161,104 | 165,740 | 657,646 | 646,345 | |||||||||||
Depreciation and amortization | 41,398 | 38,753 | 156,226 | 144,294 | |||||||||||
Impairment loss | 1,003 | — | 1,003 | 9,200 | |||||||||||
Property tax, insurance and other | 18,900 | 18,379 | 76,682 | 71,443 | |||||||||||
General and administrative | 8,769 | 10,378 | 37,810 | 41,671 | |||||||||||
Transaction and pursuit costs | 53 | 475 | 3,058 | 4,850 | |||||||||||
Total operating expense | 231,227 | 233,725 | 932,425 | 917,803 | |||||||||||
Operating income | 44,036 | 46,386 | 203,915 | 191,394 | |||||||||||
Other income | 495 | 244 | 1,598 | 807 | |||||||||||
Interest income | 382 | 259 | 1,563 | 1,881 | |||||||||||
Interest expense | (14,903 | ) | (14,164 | ) | (54,788 | ) | (56,810 | ) | |||||||
Income from continuing operations before income tax benefit (expense) | 30,010 | 32,725 | 152,288 | 137,272 | |||||||||||
Income tax benefit (expense) | 39,741 | 17 | 39,126 | (1,145 | ) | ||||||||||
Income from continuing operations | 69,751 | 32,742 | 191,414 | 136,127 | |||||||||||
Gain on sale of hotel properties | 4,616 | 1,328 | 28,398 | 353 | |||||||||||
Net income | 74,367 | 34,070 | 219,812 | 136,480 | |||||||||||
Net income attributable to noncontrolling interests | |||||||||||||||
Noncontrolling interest in consolidated joint venture | (51 | ) | (69 | ) | (77 | ) | (171 | ) | |||||||
Noncontrolling interest in the Operating Partnership | (530 | ) | (156 | ) | (1,514 | ) | (868 | ) | |||||||
Net income attributable to common shareholders | $ | 73,786 | $ | 33,845 | $ | 218,221 | $ | 135,441 | |||||||
Basic per common share data: | |||||||||||||||
Net income attributable to common shareholders | $ | 0.58 | $ | 0.26 | $ | 1.69 | $ | 1.06 | |||||||
Weighted-average number of common shares | 124,256,834 | 131,189,673 | 128,444,469 | 127,360,669 | |||||||||||
Diluted per common share data: | |||||||||||||||
Net income attributable to common shareholders | $ | 0.59 | $ | 0.25 | $ | 1.68 | $ | 1.05 | |||||||
Weighted-average number of common shares | 124,679,650 | 132,186,832 | 128,967,754 | 128,293,843 | |||||||||||
Note:
The Statement of Comprehensive Income and corresponding notes can be found in the Company’s Annual Report on Form 10-K.
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RLJ Lodging Trust
Reconciliation of Net Income to Non-GAAP Measures
(Amounts in thousands, except per share data)
(unaudited)
Funds From Operations (FFO)
For the three months ended December 31, | For the year ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income | $ | 74,367 | $ | 34,070 | $ | 219,812 | $ | 136,480 | |||||||
Depreciation and amortization | 41,398 | 38,753 | 156,226 | 144,294 | |||||||||||
Gain on sale of hotel properties | (4,616 | ) | (1,328 | ) | (28,398 | ) | (353 | ) | |||||||
Impairment loss | 1,003 | — | 1,003 | 9,200 | |||||||||||
Noncontrolling interest in joint venture | (51 | ) | (69 | ) | (77 | ) | (171 | ) | |||||||
Adjustments related to joint venture (1) | (43 | ) | (47 | ) | (170 | ) | (186 | ) | |||||||
FFO attributable to common shareholders | 112,058 | 71,379 | 348,396 | 289,264 | |||||||||||
Non-cash income tax benefit (2) | (39,845 | ) | — | (39,845 | ) | — | |||||||||
Transaction and pursuit costs | 53 | 475 | 3,058 | 4,850 | |||||||||||
Amortization of share based compensation | 2,514 | 3,844 | 13,002 | 15,088 | |||||||||||
Loan related costs (3) | — | — | 97 | 1,073 | |||||||||||
Other expenses (4) | — | 432 | — | 432 | |||||||||||
Adjusted FFO attributable to common shareholders | $ | 74,780 | $ | 76,130 | $ | 324,708 | $ | 310,707 | |||||||
Adjusted FFO per common share and unit-basic | $ | 0.60 | $ | 0.58 | $ | 2.51 | $ | 2.42 | |||||||
Adjusted FFO per common share and unit-diluted | $ | 0.60 | $ | 0.57 | $ | 2.50 | $ | 2.41 | |||||||
Basic weighted-average common shares and units outstanding (5) | 125,151 | 132,084 | 129,338 | 128,255 | |||||||||||
Diluted weighted-average common shares and units outstanding (5) | 125,574 | 133,081 | 129,862 | 129,188 | |||||||||||
Note:
(1) | Includes depreciation and amortization expense allocated to the noncontrolling interest in the joint venture. |
(2) | Reflects the non-cash portion of income tax benefit (expense) related to the release of a valuation allowance. |
(3) | Represents debt extinguishment costs and accelerated amortization of deferred financing fees. |
(4) | Represents legal and other expenses outside the normal course of operations. |
(5) | Includes 0.9 million operating partnership units. |
12
RLJ Lodging Trust
Reconciliation of Net Income to Non-GAAP Measures
(Amounts in thousands)
(unaudited)
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
For the three months ended December 31, | For the year ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income | $ | 74,367 | $ | 34,070 | $ | 219,812 | $ | 136,480 | |||||||
Depreciation and amortization | 41,398 | 38,753 | 156,226 | 144,294 | |||||||||||
Interest expense, net (1) | 14,899 | 14,153 | 54,758 | 56,144 | |||||||||||
Income tax (benefit) expense | (39,741 | ) | (17 | ) | (39,126 | ) | 1,145 | ||||||||
Noncontrolling interest in joint venture | (51 | ) | (69 | ) | (77 | ) | (171 | ) | |||||||
Adjustments related to joint venture (2) | (43 | ) | (47 | ) | (170 | ) | (186 | ) | |||||||
EBITDA | 90,829 | 86,843 | 391,423 | 337,706 | |||||||||||
Transaction and pursuit costs | 53 | 475 | 3,058 | 4,850 | |||||||||||
Impairment loss | 1,003 | — | 1,003 | 9,200 | |||||||||||
Gain on sale of property | (4,616 | ) | (1,328 | ) | (28,398 | ) | (353 | ) | |||||||
Amortization of share based compensation | 2,514 | 3,844 | 13,002 | 15,088 | |||||||||||
Other expenses (3) | — | 432 | — | 432 | |||||||||||
Adjusted EBITDA | 89,783 | 90,266 | 380,088 | 366,923 | |||||||||||
General and administrative (4) | 6,255 | 6,534 | 24,808 | 26,583 | |||||||||||
Operating results from noncontrolling interest in joint venture | 94 | 116 | 247 | 357 | |||||||||||
Other corporate adjustments | (294 | ) | 149 | (730 | ) | 97 | |||||||||
Consolidated Hotel EBITDA | 95,838 | 97,065 | 404,413 | 393,960 | |||||||||||
Pro forma adjustments - Income from sold properties | 85 | (6,415 | ) | (4,102 | ) | (31,320 | ) | ||||||||
Pro forma adjustments - Income from prior ownership | — | 1,510 | 4,785 | 19,133 | |||||||||||
Pro forma Consolidated Hotel EBITDA | 95,923 | 92,160 | 405,096 | 381,773 | |||||||||||
Non-comparable hotels (5) | (3,287 | ) | (1,386 | ) | (12,609 | ) | (6,346 | ) | |||||||
Pro forma Hotel EBITDA | $ | 92,636 | $ | 90,774 | $ | 392,487 | $ | 375,427 | |||||||
Note:
(1) Interest expense is net of interest income, excluding amounts attributable to investment in loans of $0.3 million and $1.5 million for the three and twelve months ended December 31, 2015, respectively, and $0.2 million and $1.2 million for the three and twelve months ended December 31, 2014, respectively.
(2) Includes depreciation, amortization, and interest expense allocated to the noncontrolling interest in the joint venture.
(3) | Represents legal and other expenses outside the normal course of operations. |
(4) | General and administrative expenses exclude amortization of share based compensation, which is reflected in Adjusted EBITDA. |
(5) Reflects the results of eight non-comparable hotels that were not open for the entirety of certain comparable periods: Residence Inn Atlanta Midtown/Georgia Tech, Courtyard Waikiki Beach, Hilton Cabana Miami Beach, Fairfield Inn & Suites Key West, Courtyard San Francisco Union Square, SpringHill Suites Houston Downtown/Convention Center, Homewood Suites Seattle/Lynnwood, and Hyatt Place DC/Downtown/K Street.
13
RLJ Lodging Trust
Consolidated Debt Summary
(Amounts in thousands)
(unaudited)
Loan | Base Term (Years) | Maturity (incl. extensions) | Floating / Fixed | Interest Rate (1) | Balance as of December 31, 2015 | |||
Secured Debt | ||||||||
PNC Bank - 5 hotels | 5 | May 2017 | Floating | 2.78% | $ | 74,000 | ||
Wells Fargo - 4 hotels | 7 | Sep 2020 | Floating (2) | 4.19% | 149,250 | |||
Wells Fargo - 4 hotels | 7 | Oct 2021 | Floating (2) | 3.99% | 150,000 | |||
Wells Fargo - 1 hotel (4) | 10 | Jun 2022 | Fixed | 5.25% | 34,505 | |||
Weighted Average / Secured Total | 3.95% | $ | 407,755 | |||||
Unsecured Debt | ||||||||
Credit Facility (5) | 4 | Nov 2017 | Floating | 2.18% | $ | — | ||
2013 Five-Year Term Loan | 5 | Aug 2018 | Floating (2)(3) | 3.10% | 400,000 | |||
2012 Five-Year Term Loan | 5 | Mar 2019 | Floating (2) | 2.72% | 400,000 | |||
2012 Seven-Year Term Loan | 7 | Nov 2019 | Floating (2) | 4.04% | 225,000 | |||
2014 Seven-Year Term Loan | 7 | Jan 2022 | Floating (2) | 3.43% | 150,000 | |||
Weighted Average / Unsecured Total | 3.19% | $ | 1,175,000 | |||||
Weighted Average / Total Debt | 3.39% | $ | 1,582,755 | |||||
Note:
(1) Interest rates as of December 31, 2015.
(2) The floating interest rate is hedged with an interest rate swap.
(3) Reflects interest rate swap on $350.0 million.
(4) Includes the net impact of a fair value adjustment.
(5) There is $300.0 million of borrowing capacity on the Credit Facility, which is charged an unused commitment fee of 0.35% annually.
14
RLJ Lodging Trust
Acquisitions
(unaudited)
Acquisitions | Location | Acquisition Date | Management Company | Rooms | Gross Purchase Price ($ in millions) | % Interest | ||||
2015 Acquisitions | ||||||||||
Hyatt Place DC/Downtown/K Street | Washington, DC | Jul 15, 2015 | Aimbridge Hospitality | 164 | $ | 68.0 | 100 | % | ||
Homewood Suites Seattle/Lynnwood | Lynnwood, WA | Jul 20, 2015 | InnVentures | 170 | 37.9 | 100 | % | |||
Residence Inn Palo Alto Los Altos | Los Altos, CA | Sep 25, 2015 | InnVentures | 156 | 70.0 | 100 | % | |||
2015 Total | 490 | $ | 175.9 | 100 | % | |||||
2014 Acquisitions | ||||||||||
Hyatt House Charlotte Center City | Charlotte, NC | Mar 12, 2014 | Hyatt Affiliate | 163 | $ | 32.5 | 100 | % | ||
Hyatt House Cypress Anaheim | Cypress, CA | Mar 12, 2014 | Hyatt Affiliate | 142 | 14.8 | 100 | % | |||
Hyatt House Emeryville SF Bay Area | Emeryville, CA | Mar 12, 2014 | Hyatt Affiliate | 234 | 39.3 | 100 | % | |||
Hyatt House San Diego Sorrento Mesa | San Diego, CA | Mar 12, 2014 | Hyatt Affiliate | 193 | 36.0 | 100 | % | |||
Hyatt House San Jose Silicon Valley | San Jose, CA | Mar 12, 2014 | Hyatt Affiliate | 164 | 44.2 | 100 | % | |||
Hyatt House San Ramon | San Ramon, CA | Mar 12, 2014 | Hyatt Affiliate | 142 | 20.8 | 100 | % | |||
Hyatt House Santa Clara | Santa Clara, CA | Mar 12, 2014 | Hyatt Affiliate | 150 | 40.6 | 100 | % | |||
Hyatt Market Street The Woodlands | The Woodlands, TX | Mar 12, 2014 | Hyatt Corporation | 70 | 25.8 | 100 | % | |||
Hyatt Place Fremont Silicon Valley | Fremont, CA | Mar 12, 2014 | Hyatt Affiliate | 151 | 23.5 | 100 | % | |||
Hyatt Place Madison Downtown | Madison, WI | Mar 12, 2014 | Hyatt Affiliate | 151 | 35.1 | 100 | % | |||
Courtyard Portland City Center | Portland, OR | May 22, 2014 | Sage Hospitality | 256 | 67.0 | 100 | % | |||
Embassy Suites Irvine Orange County | Irvine, CA | May 22, 2014 | Sage Hospitality | 293 | 53.0 | 100 | % | |||
Hilton Cabana Miami Beach | Miami Beach, FL | Jun 19, 2014 | Highgate Hotels | 231 | 71.7 | 100 | % | |||
Hyatt Atlanta Midtown | Atlanta, GA | Jul 14, 2014 | Interstate Hotels and Resorts | 194 | 49.5 | 100 | % | |||
DoubleTree Grand Key Resort (2) | Key West, FL | Sep 11, 2014 | Interstate Hotels and Resorts | 215 | 77.0 | 100 | % | |||
2014 Total (1) | 2,749 | $ | 630.7 | 100 | % | |||||
Total Acquisitions | 3,239 | $ | 806.6 | 100 | % | |||||
Note:
(1) Amounts are rounded for presentation purposes.
(2) Purchase price does not include $1.3 million paid for five condominium units.
15
RLJ Lodging Trust
Pro forma Operating Statistics — Top 60 Assets
Property | City/State | # of Rooms | Pro forma Consolidated Hotel EBITDA | ||
Marriott Louisville Downtown | Louisville, KY | 616 | $ | 16,423 | |
DoubleTree NYC Metropolitan | New York, NY | 764 | 15,209 | ||
Courtyard Austin Dtwn Conv Ctr | Austin, TX | 270 | 9,673 | ||
Hilton New York Fashion District | New York, NY | 280 | 9,609 | ||
Hilton Garden Inn New York W 35th St | New York, NY | 298 | 9,278 | ||
Courtyard Portland City Center | Portland, OR | 256 | 7,856 | ||
Embassy Suites Tampa Dtwn Conv Ctr | Tampa, FL | 360 | 7,315 | ||
Courtyard Chicago Downtown Mag Mile | Chicago, IL | 306 | 7,135 | ||
Hilton Cabana Miami Beach | Miami Beach, FL | 231 | 6,680 | ||
Renaissance Pittsburgh Hotel | Pittsburgh, PA | 300 | 6,567 | ||
Hilton Garden Inn SF Oakland Bay Bridge | Emeryville, CA | 278 | 6,312 | ||
Doubletree Grand Key Resort | Key West, FL | 216 | 6,171 | ||
Embassy Suites Boston Waltham | Waltham, MA | 275 | 6,000 | ||
Residence Inn Palo Alto Los Altos | Los Altos, CA | 156 | 5,742 | ||
Marriott Denver South @ Park Meadows | Lone Tree, CO | 279 | 5,730 | ||
Hyatt House San Jose Silicon Valley | San Jose, CA | 164 | 5,560 | ||
Courtyard Charleston Historic District | Charleston, SC | 176 | 5,554 | ||
Fairfield Inn & Suites DC Downtown | Washington, DC | 198 | 5,526 | ||
Residence Inn Austin Dtwn Conv Ctr | Austin, TX | 179 | 5,389 | ||
Hilton Garden Inn New Orleans Conv Ctr | New Orleans, LA | 286 | 5,316 | ||
Marriott Denver Airport @ Gateway Park | Aurora, CO | 238 | 5,286 | ||
Renaissance Ft Lauderdale Plantation | Plantation, FL | 250 | 5,037 | ||
Hyatt House Emeryville SF Bay Area | Emeryville, CA | 234 | 4,938 | ||
Hilton Garden Inn Los Angeles Hollywood | Los Angeles, CA | 160 | 4,824 | ||
Hyatt House Santa Clara | Santa Clara, CA | 150 | 4,802 | ||
Residence Inn Bethesda Downtown | Bethesda, MD | 188 | 4,584 | ||
Homewood Suites Washington DC Downtown | Washington, DC | 175 | 4,576 | ||
Embassy Suites Los Angeles Downey | Downey, CA | 220 | 4,301 | ||
Courtyard New York Manhattan Upper East | New York, NY | 226 | 4,292 | ||
Hyatt Atlanta Midtown | Atlanta, GA | 194 | 4,240 | ||
Marriott Austin South | Austin, TX | 211 | 4,192 | ||
Fairfield Inn & Suites Key West | Key West, FL | 106 | 4,083 | ||
Courtyard Waikiki Beach | Honolulu, HI | 403 | 4,004 | ||
Hyatt Place Fremont Silicon Valley | Fremont, CA | 151 | 3,902 | ||
Renaissance Boulder Flatiron Hotel | Broomfield, CO | 232 | 3,887 | ||
Embassy Suites Irvine Orange Cnty Arprt | Irvine, CA | 293 | 3,836 | ||
Courtyard Houston By The Galleria | Houston, TX | 190 | 3,568 | ||
Hyatt House San Diego Sorrento Mesa | San Diego, CA | 193 | 3,400 | ||
Embassy Suites West Palm Beach Central | West Palm Beach, FL | 194 | 3,366 | ||
Hyatt House Charlotte Center City | Charlotte, NC | 163 | 3,343 | ||
Residence Inn Louisville Downtown | Louisville, KY | 140 | 3,268 | ||
Residence Inn National Harbor DC | Oxon Hill, MD | 162 | 3,242 | ||
Residence Inn Indy Dtwn On The Canal | Indianapolis, IN | 134 | 3,202 | ||
Residence Inn Houston By The Galleria | Houston, TX | 146 | 3,175 | ||
Residence Inn Chicago Oak Brook | Oak Brook, IL | 156 | 3,171 | ||
Hyatt Market Street The Woodlands | The Woodlands, TX | 70 | 3,145 | ||
Hyatt House San Ramon | San Ramon, CA | 142 | 3,044 | ||
Hampton Inn Garden City | Garden City, NY | 143 | 3,037 | ||
Courtyard Houston Dtwn Conv Ctr | Houston, TX | 191 | 3,035 | ||
Springhill Suites Portland Hillsboro | Hillsboro, OR | 106 | 2,969 | ||
Hilton Garden Inn Pittsburgh Univ Pl | Pittsburgh, PA | 202 | 2,895 | ||
Hyatt Place Madison Downtown | Madison, WI | 151 | 2,893 | ||
Hyatt House Dallas Lincoln Park | Dallas, TX | 155 | 2,883 | ||
Residence Inn Houston Dtwn Conv Ctr | Houston, TX | 171 | 2,835 | ||
Courtyard Atlanta Buckhead | Atlanta, GA | 181 | 2,818 | ||
Hampton Inn Houston Near The Galleria | Houston, TX | 176 | 2,736 | ||
Marriott Chicago Midway | Chicago, IL | 200 | 2,635 | ||
Hilton Garden Inn Bloomington | Bloomington, IN | 168 | 2,594 | ||
Springhill Suites Denver N Westminster | Westminster, CO | 164 | 2,563 | ||
Hyatt House Houston Galleria | Houston, TX | 147 | 2,115 | ||
Top 60 Assets | 13,164 | 295,761 | |||
Other (1) | 7,733 | 109,335 | |||
Total Portfolio | 20,897 | $ | 405,096 | ||
16
RLJ Lodging Trust
Pro forma Operating Statistics
(unaudited)
For the three months ended December 31, 2015
Top Markets | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2015 | 2014 | Var | 2015 | 2014 | Var | 2015 | 2014 | Var | Q4 | ||||||||||||||||||||
NYC | 5 | 95.9 | % | 96.2 | % | (0.3 | )% | $ | 258.11 | $ | 262.04 | (1.5 | )% | $ | 247.51 | $ | 251.96 | (1.8 | )% | 14 | % | |||||||||
Chicago | 15 | 62.4 | % | 67.5 | % | (7.6 | )% | 147.14 | 141.01 | 4.3 | % | 91.83 | 95.19 | (3.5 | )% | 7 | % | |||||||||||||
Austin | 13 | 77.6 | % | 76.9 | % | 0.9 | % | 163.13 | 160.75 | 1.5 | % | 126.51 | 123.54 | 2.4 | % | 9 | % | |||||||||||||
Denver | 13 | 67.3 | % | 68.4 | % | (1.6 | )% | 129.98 | 124.49 | 4.4 | % | 87.49 | 85.11 | 2.8 | % | 8 | % | |||||||||||||
Houston | 9 | 65.9 | % | 74.9 | % | (12.1 | )% | 157.13 | 158.90 | (1.1 | )% | 103.50 | 119.08 | (13.1 | )% | 6 | % | |||||||||||||
DC | 7 | 67.2 | % | 70.1 | % | (4.1 | )% | 175.00 | 166.96 | 4.8 | % | 117.66 | 117.01 | 0.6 | % | 5 | % | |||||||||||||
Other | 58 | 76.0 | % | 74.9 | % | 1.4 | % | 154.92 | 146.10 | 6.0 | % | 117.67 | 109.39 | 7.6 | % | 51 | % | |||||||||||||
Total | 120 | 74.5 | % | 75.3 | % | (1.0 | )% | $ | 165.50 | $ | 159.82 | 3.6 | % | $ | 123.24 | $ | 120.26 | 2.5 | % | 100 | % | |||||||||
Service Level | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2015 | 2014 | Var | 2015 | 2014 | Var | 2015 | 2014 | Var | Q4 | ||||||||||||||||||||
Focused-Service | 99 | 73.7 | % | 74.5 | % | (1.0 | )% | $ | 155.32 | $ | 149.79 | 3.7 | % | $ | 114.53 | $ | 111.54 | 2.7 | % | 66 | % | |||||||||
Compact Full-Service | 20 | 78.1 | % | 79.1 | % | (1.2 | )% | 191.27 | 185.27 | 3.2 | % | 149.48 | 146.56 | 2.0 | % | 30 | % | |||||||||||||
Full-Service | 1 | 60.4 | % | 61.2 | % | (1.4 | )% | 173.08 | 165.76 | 4.4 | % | 104.50 | 101.50 | 2.9 | % | 4 | % | |||||||||||||
Total | 120 | 74.5 | % | 75.3 | % | (1.0 | )% | $ | 165.50 | $ | 159.82 | 3.6 | % | $ | 123.24 | $ | 120.26 | 2.5 | % | 100 | % | |||||||||
Chain Scale | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2015 | 2014 | Var | 2015 | 2014 | Var | 2015 | 2014 | Var | Q4 | ||||||||||||||||||||
Upper Upscale | 18 | 73.0 | % | 73.6 | % | (0.9 | )% | $ | 174.99 | $ | 166.84 | 4.9 | % | $ | 127.76 | $ | 122.86 | 4.0 | % | 26 | % | |||||||||
Upscale | 86 | 76.0 | % | 76.7 | % | (0.9 | )% | 166.57 | 161.83 | 2.9 | % | 126.55 | 124.05 | 2.0 | % | 68 | % | |||||||||||||
Upper Midscale | 15 | 68.3 | % | 68.7 | % | (0.6 | )% | 134.94 | 130.99 | 3.0 | % | 92.20 | 90.02 | 2.4 | % | 6 | % | |||||||||||||
Midscale | 1 | 56.5 | % | 81.2 | % | (30.5 | )% | 100.31 | 77.80 | 28.9 | % | 56.63 | 63.16 | (10.3 | )% | — | % | |||||||||||||
Total | 120 | 74.5 | % | 75.3 | % | (1.0 | )% | $ | 165.50 | $ | 159.82 | 3.6 | % | $ | 123.24 | $ | 120.26 | 2.5 | % | 100 | % | |||||||||
Flags | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2015 | 2014 | Var | 2015 | 2014 | Var | 2015 | 2014 | Var | Q4 | ||||||||||||||||||||
Residence Inn | 28 | 74.0 | % | 76.7 | % | (3.5 | )% | $ | 149.32 | $ | 143.17 | 4.3 | % | $ | 110.54 | $ | 109.86 | 0.6 | % | 16 | % | |||||||||
Courtyard | 22 | 71.7 | % | 74.9 | % | (4.3 | )% | 162.34 | 161.12 | 0.8 | % | 116.35 | 120.62 | (3.5 | )% | 15 | % | |||||||||||||
Hyatt House | 11 | 82.5 | % | 76.0 | % | 8.6 | % | 161.30 | 151.05 | 6.8 | % | 133.05 | 114.74 | 16.0 | % | 10 | % | |||||||||||||
Hilton Garden Inn | 9 | 76.9 | % | 77.6 | % | (0.9 | )% | 181.15 | 175.25 | 3.4 | % | 139.35 | 136.04 | 2.4 | % | 10 | % | |||||||||||||
SpringHill Suites | 6 | 79.2 | % | 78.8 | % | 0.4 | % | 154.79 | 143.10 | 8.2 | % | 122.53 | 112.82 | 8.6 | % | 7 | % | |||||||||||||
Embassy Suites | 7 | 71.6 | % | 69.9 | % | 2.3 | % | 126.63 | 125.81 | 0.6 | % | 90.60 | 88.00 | 3.0 | % | 3 | % | |||||||||||||
Hampton Inn | 6 | 68.0 | % | 70.0 | % | (2.9 | )% | 144.37 | 136.58 | 5.7 | % | 98.13 | 95.64 | 2.6 | % | 3 | % | |||||||||||||
Fairfield Inn & Suites | 8 | 71.7 | % | 72.3 | % | (0.8 | )% | 121.92 | 114.74 | 6.3 | % | 87.40 | 82.92 | 5.4 | % | 4 | % | |||||||||||||
Marriott | 5 | 63.4 | % | 64.3 | % | (1.4 | )% | 162.83 | 158.14 | 3.0 | % | 103.25 | 101.67 | 1.6 | % | 8 | % | |||||||||||||
Renaissance | 3 | 70.7 | % | 72.1 | % | (2.0 | )% | 164.46 | 157.29 | 4.6 | % | 116.25 | 113.41 | 2.5 | % | 4 | % | |||||||||||||
DoubleTree | 3 | 89.3 | % | 91.6 | % | (2.4 | )% | 238.57 | 238.30 | 0.1 | % | 213.12 | 218.19 | (2.3 | )% | 8 | % | |||||||||||||
Hyatt | 2 | 77.5 | % | 76.1 | % | 1.9 | % | 200.55 | 190.30 | 5.4 | % | 155.50 | 144.75 | 7.4 | % | 2 | % | |||||||||||||
Hyatt Place | 2 | 83.5 | % | 76.3 | % | 9.4 | % | 151.52 | 144.03 | 5.2 | % | 126.58 | 109.96 | 15.1 | % | 2 | % | |||||||||||||
Hilton | 2 | 85.3 | % | 87.8 | % | (2.9 | )% | 258.40 | 249.82 | 3.4 | % | 220.37 | 219.32 | 0.5 | % | 5 | % | |||||||||||||
Homewood Suites | 2 | 64.9 | % | 59.9 | % | 8.2 | % | 173.69 | 168.70 | 3.0 | % | 112.64 | 101.07 | 11.4 | % | 2 | % | |||||||||||||
Other | 4 | 57.7 | % | 66.6 | % | (13.3 | )% | 143.38 | 128.83 | 11.3 | % | 82.75 | 85.76 | (3.5 | )% | 1 | % | |||||||||||||
Total | 120 | 74.5 | % | 75.3 | % | (1.0 | )% | $ | 165.50 | $ | 159.82 | 3.6 | % | $ | 123.24 | $ | 120.26 | 2.5 | % | 100 | % | |||||||||
Note:
The information above includes results for periods prior to the Company's ownership. The information has not been audited and is presented only for comparison purposes. Results reflect 100% of DoubleTree NYC Metropolitan financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture. All results exclude disposed hotels as of December 31, 2015, and six non-comparable properties.
17
RLJ Lodging Trust
Pro forma Operating Statistics
(unaudited)
For the twelve months ended December 31, 2015
Top Markets | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2015 | 2014 | Var | 2015 | 2014 | Var | 2015 | 2014 | Var | FY | ||||||||||||||||||||
NYC | 5 | 95.5 | % | 96.0 | % | (0.6 | )% | $ | 234.75 | $ | 239.35 | (1.9 | )% | $ | 224.20 | $ | 229.86 | (2.5 | )% | 11 | % | |||||||||
Chicago | 15 | 69.9 | % | 74.5 | % | (6.2 | )% | 150.21 | 136.99 | 9.7 | % | 105.05 | 102.12 | 2.9 | % | 8 | % | |||||||||||||
Austin | 13 | 80.1 | % | 80.4 | % | (0.4 | )% | 161.45 | 152.92 | 5.6 | % | 129.32 | 123.00 | 5.1 | % | 9 | % | |||||||||||||
Denver | 13 | 75.7 | % | 76.9 | % | (1.6 | )% | 135.46 | 128.43 | 5.5 | % | 102.58 | 98.82 | 3.8 | % | 8 | % | |||||||||||||
Houston | 9 | 70.2 | % | 78.1 | % | (10.1 | )% | 162.78 | 159.56 | 2.0 | % | 114.22 | 124.59 | (8.3 | )% | 6 | % | |||||||||||||
DC | 7 | 74.7 | % | 76.4 | % | (2.2 | )% | 176.90 | 171.01 | 3.4 | % | 132.17 | 130.63 | 1.2 | % | 6 | % | |||||||||||||
Other | 59 | 79.2 | % | 78.8 | % | 0.5 | % | 159.73 | 148.60 | 7.5 | % | 126.50 | 117.14 | 8.0 | % | 52 | % | |||||||||||||
Total | 121 | 78.6 | % | 79.7 | % | (1.4 | )% | $ | 165.83 | $ | 157.45 | 5.3 | % | $ | 130.28 | $ | 125.42 | 3.9 | % | 100 | % | |||||||||
Service Level | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2015 | 2014 | Var | 2015 | 2014 | Var | 2015 | 2014 | Var | FY | ||||||||||||||||||||
Focused-Service | 100 | 77.9 | % | 79.3 | % | (1.8 | )% | $ | 158.14 | $ | 148.67 | 6.4 | % | $ | 123.18 | $ | 117.88 | 4.5 | % | 70 | % | |||||||||
Compact Full-Service | 20 | 81.8 | % | 82.0 | % | (0.2 | )% | 184.76 | 179.15 | 3.1 | % | 151.20 | 146.89 | 2.9 | % | 26 | % | |||||||||||||
Full-Service | 1 | 67.2 | % | 69.1 | % | (2.9 | )% | 182.27 | 178.46 | 2.1 | % | 122.42 | 123.40 | (0.8 | )% | 4 | % | |||||||||||||
Total | 121 | 78.6 | % | 79.7 | % | (1.4 | )% | $ | 165.83 | $ | 157.45 | 5.3 | % | $ | 130.28 | $ | 125.42 | 3.9 | % | 100 | % | |||||||||
Chain Scale | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2015 | 2014 | Var | 2015 | 2014 | Var | 2015 | 2014 | Var | FY | ||||||||||||||||||||
Upper Upscale | 18 | 77.8 | % | 77.4 | % | 0.4 | % | $ | 174.02 | $ | 166.83 | 4.3 | % | $ | 135.32 | $ | 129.18 | 4.8 | % | 25 | % | |||||||||
Upscale | 86 | 79.5 | % | 80.9 | % | (1.7 | )% | 166.14 | 157.80 | 5.3 | % | 132.01 | 127.60 | 3.5 | % | 67 | % | |||||||||||||
Upper Midscale | 16 | 75.2 | % | 76.1 | % | (1.3 | )% | 146.50 | 138.08 | 6.1 | % | 110.15 | 105.14 | 4.8 | % | 8 | % | |||||||||||||
Midscale | 1 | 62.8 | % | 85.5 | % | (26.6 | )% | 106.43 | 74.73 | 42.4 | % | 66.81 | 63.93 | 4.5 | % | — | % | |||||||||||||
Total | 121 | 78.6 | % | 79.7 | % | (1.4 | )% | $ | 165.83 | $ | 157.45 | 5.3 | % | $ | 130.28 | $ | 125.42 | 3.9 | % | 100 | % | |||||||||
Flags | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2015 | 2014 | Var | 2015 | 2014 | Var | 2015 | 2014 | Var | FY | ||||||||||||||||||||
Residence Inn | 28 | 78.3 | % | 81.5 | % | (4.0 | )% | $ | 152.04 | $ | 143.26 | 6.1 | % | $ | 119.00 | $ | 116.82 | 1.9 | % | 17 | % | |||||||||
Courtyard | 22 | 76.6 | % | 78.8 | % | (2.8 | )% | 165.43 | 157.04 | 5.3 | % | 126.75 | 123.77 | 2.4 | % | 17 | % | |||||||||||||
Hyatt House | 11 | 82.1 | % | 81.3 | % | 1.0 | % | 163.62 | 148.97 | 9.8 | % | 134.39 | 121.16 | 10.9 | % | 9 | % | |||||||||||||
Hilton Garden Inn | 9 | 79.7 | % | 80.0 | % | (0.3 | )% | 176.47 | 170.12 | 3.7 | % | 140.73 | 136.05 | 3.4 | % | 9 | % | |||||||||||||
SpringHill Suites | 6 | 82.3 | % | 81.1 | % | 1.5 | % | 161.22 | 151.23 | 6.6 | % | 132.63 | 122.60 | 8.2 | % | 7 | % | |||||||||||||
Embassy Suites | 7 | 76.0 | % | 77.3 | % | (1.6 | )% | 138.83 | 132.65 | 4.7 | % | 105.55 | 102.54 | 2.9 | % | 4 | % | |||||||||||||
Hampton Inn | 6 | 77.0 | % | 76.7 | % | 0.3 | % | 155.70 | 145.57 | 7.0 | % | 119.81 | 111.66 | 7.3 | % | 4 | % | |||||||||||||
Fairfield Inn & Suites | 9 | 77.1 | % | 76.7 | % | 0.5 | % | 122.88 | 114.58 | 7.2 | % | 94.78 | 87.91 | 7.8 | % | 4 | % | |||||||||||||
Marriott | 5 | 70.8 | % | 72.7 | % | (2.6 | )% | 166.61 | 160.18 | 4.0 | % | 118.01 | 116.44 | 1.4 | % | 9 | % | |||||||||||||
Renaissance | 3 | 76.8 | % | 75.3 | % | 2.0 | % | 163.05 | 157.20 | 3.7 | % | 125.15 | 118.31 | 5.8 | % | 4 | % | |||||||||||||
DoubleTree | 3 | 90.0 | % | 93.0 | % | (3.3 | )% | 220.48 | 219.45 | 0.5 | % | 198.35 | 204.19 | (2.9 | )% | 6 | % | |||||||||||||
Hyatt | 2 | 77.0 | % | 74.1 | % | 3.9 | % | 205.22 | 192.78 | 6.5 | % | 158.07 | 142.87 | 10.6 | % | 2 | % | |||||||||||||
Hyatt Place | 2 | 86.0 | % | 84.1 | % | 2.3 | % | 158.43 | 141.08 | 12.3 | % | 136.26 | 118.62 | 14.9 | % | 2 | % | |||||||||||||
Hilton | 2 | 90.3 | % | 88.7 | % | 1.8 | % | 241.16 | 243.35 | (0.9 | )% | 217.81 | 215.92 | 0.9 | % | 3 | % | |||||||||||||
Homewood Suites | 2 | 75.8 | % | 71.1 | % | 6.6 | % | 194.21 | 192.64 | 0.8 | % | 147.24 | 137.02 | 7.5 | % | 2 | % | |||||||||||||
Other | 4 | 62.8 | % | 70.8 | % | (11.3 | )% | 144.68 | 124.69 | 16.0 | % | 90.87 | 88.28 | 2.9 | % | 1 | % | |||||||||||||
Total | 121 | 78.6 | % | 79.7 | % | (1.4 | )% | $ | 165.83 | $ | 157.45 | 5.3 | % | $ | 130.28 | $ | 125.42 | 3.9 | % | 100 | % | |||||||||
Note:
The information above includes results for periods prior to the Company's ownership. The information has not been audited and is presented only for comparison purposes. Results reflect 100% of DoubleTree NYC Metropolitan financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture. All results exclude disposed hotels as of December 31, 2015, and five non-comparable properties.
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