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 22, 2017
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 22, 2017, RLJ Lodging Trust (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2016. 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 22, 2017, issued by RLJ Lodging Trust, providing financial results for the quarter and year ended December 31, 2016. | ||
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 22, 2017 | By: | /s/ ROSS H. BIERKAN |
Ross H. Bierkan | ||
President, Chief Executive Officer, Chief Investment Officer and Trustee | ||
EXHIBIT LIST
Exhibit Number | Description | ||
99.1 | Press release dated February 22, 2017, issued by RLJ Lodging Trust, providing financial results for the quarter and year ended December 31, 2016. | ||
Press Release
RLJ Lodging Trust Reports Fourth Quarter
and Full Year 2016 Results
- Full year Pro forma RevPAR increased 1.1%
- Refinanced over $1.0 billion of debt
- Sold four hotels for $301.5 million
Bethesda, MD, February 22, 2017 – RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the quarter and year ended December 31, 2016.
Full Year Highlights
• | Net income decreased 8.4% to $201.3 million |
• | Pro forma RevPAR increased 1.1%, driven by a Pro forma ADR increase of 1.1% |
• | Pro forma Hotel EBITDA Margin of 36.3% |
• | Pro forma Consolidated Hotel EBITDA increased 4.1% to $400.3 million |
• | Adjusted FFO increased 2.5% to $332.7 million |
• | Sold two New York City hotels for $285.8 million and two non-core hotels for $15.7 million |
• | Refinanced over $1.0 billion of debt; extended maturities, improved pricing, and enhanced financial covenants |
• | Distributed an aggregate cash dividend of $1.32 per share |
• | Repurchased $13.3 million of common shares at an average price per share of $21.73 |
Fourth Quarter Highlights
• | Net income increased 2.0% to $75.8 million |
• | Pro forma RevPAR decreased 0.3%, Pro forma ADR decreased 0.2%, and Pro forma Occupancy decreased 0.1% |
• | Pro forma Hotel EBITDA Margin increased 10 basis points to 35.2% |
• | Pro forma Consolidated Hotel EBITDA increased 1.3% to $90.9 million |
“Our performance continues to demonstrate the advantages of owning a diversified portfolio, backed by a strong and liquid balance sheet, with a seasoned and disciplined management team,” commented Ross H. Bierkan, President and Chief Executive Officer. “Our upscale, focused-service and compact full-service model continues to generate high margins and significant free cash flow. While we recognize there are headwinds and macro uncertainties, we are confident that we are well positioned to take advantage of any upside in lodging fundamentals.”
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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, Hotel EBITDA Margin, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included within this release.
Net income for the quarter ended December 31, 2016, increased $1.5 million to $75.8 million, representing a 2.0% increase over the comparable period in 2015. For the year ended December 31, 2016, net income decreased $18.5 million to $201.3 million, representing an 8.4% decrease over the comparable period in 2015.
Pro forma RevPAR for the quarter ended December 31, 2016, decreased 0.3% over the comparable period in 2015, driven by a Pro forma ADR decrease of 0.2%, and a Pro forma Occupancy decrease of 0.1%. The Company's top performing markets were Washington, D.C., Southern California, and Atlanta, with RevPAR growth of 12.4%, 8.8%, and 8.1%, respectively. For the year ended December 31, 2016, Pro forma RevPAR increased 1.1% over the comparable period in 2015, driven by a Pro forma ADR increase of 1.1%. Excluding Houston and New York City, which experienced softness during the year, Pro forma RevPAR growth was 2.5%.
Pro forma Hotel EBITDA Margin for the quarter ended December 31, 2016, increased 10 basis points over the comparable period in 2015 to 35.2%. For the year ended December 31, 2016, Pro forma Hotel EBITDA Margin decreased 21 basis points over the comparable period in 2015 to 36.3%.
Pro forma Consolidated Hotel EBITDA includes the results of non-comparable hotels. For the quarter ended December 31, 2016, Pro forma Consolidated Hotel EBITDA increased $1.2 million to $90.9 million, representing a 1.3% increase over the comparable period in 2015. For the year ended December 31, 2016, Pro forma Consolidated Hotel EBITDA increased $15.9 million to $400.3 million, representing a 4.1% increase over the comparable period in 2015.
Note: Pro forma Consolidated Hotel EBITDA excludes $4.0 million and $16.1 million of Hotel EBITDA for the quarter and year ended December 31, 2016, respectively, for hotels sold in 2016.
Adjusted FFO for the quarter ended December 31, 2016, decreased $0.4 million to $74.4 million, representing a 0.5% decrease over the comparable period in 2015. For the year ended December 31, 2016, Adjusted FFO increased $8.0 million to $332.7 million, representing a 2.5% increase over the comparable period in 2015.
Adjusted FFO per common share and unit-diluted for the quarter ended December 31, 2016, was $0.60, unchanged from the comparable period in 2015. Adjusted FFO per common share and unit-diluted for the year ended December 31, 2016, was $2.67, representing a 6.8% increase over the comparable period in 2015.
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Adjusted EBITDA for the quarter ended December 31, 2016, decreased $0.8 million to $89.0 million, representing a 0.9% decrease over the comparable period in 2015. For the year ended December 31, 2016, Adjusted EBITDA increased $12.3 million to $392.4 million, representing a 3.2% increase over the comparable period in 2015.
Non-recurring items and other adjustments which were noteworthy for the quarter ended December 31, 2016, included a $46.1 million gain from the sale of three hotels.
Non-recurring items are included in net income 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 quarters and years ended December 31, 2016 and 2015.
Net cash flow from operating activities for the year ended December 31, 2016, totaled $331.4 million, compared to $328.9 million for the comparable period in 2015.
Dispositions
During the year ended December 31, 2016, the Company sold four hotels for approximately $301.5 million:
• | On February 22, 2016, the Company sold a non-core hotel, the 62-room Holiday Inn Express Merrillville in Merrillville, IN, for $2.9 million. |
• | On November 30, 2016, the Company sold a non-core hotel, the 119-room SpringHill Suites Bakersfield in Bakersfield, CA, for $12.9 million. |
• | On December 5, 2016, the Company sold the 298-room Hilton Garden Inn New York 35th Street and the 280-room Hilton New York Fashion District in New York, NY, for $285.8 million. |
Balance Sheet
During the year ended December 31, 2016, the Company successfully refinanced over $1.0 billion of debt:
• | On March 16, 2016, the Company amended its $74.0 million cross-collateralized, first mortgage non-recourse loan secured by five properties. The transaction upsized the loan to $85.0 million, improved pricing and extended the final maturity from 2017 to 2023, including extensions. |
• | On March 24, 2016, the Company amended and restated three first mortgage non-recourse loans secured by four properties totaling $148.5 million. The transaction improved pricing and extended the final maturity from 2020 to 2022, including extensions. |
• | On April 22, 2016, the Company amended and restated its $400.0 million term loan originally maturing in 2018. The transaction enhanced financial covenants, extended the final maturity to 2021, and improved pricing by an average of 21 basis points. |
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• | The Company also amended and restated its revolving credit facility. The transaction enhanced financial covenants, extended the final maturity from 2017 to 2021, increased the borrowing capacity by an additional $100.0 million to $400.0 million, and improved pricing by an average of 26 basis points. |
As of December 31, 2016, the Company had $456.7 million of unrestricted cash on its balance sheet, $400.0 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 recent dispositions, for the year ended December 31, 2016, was 3.0 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 13, 2017, to shareholders of record as of December 30, 2016.
For the year ended December 31, 2016, the Company distributed a total dividend of $1.32 per common share of beneficial interest.
Share Repurchase Program
For the year ended December 31, 2016, the Company repurchased 0.6 million common shares for $13.3 million at an average price per share of $21.73.
2017 Outlook
The Company’s outlook excludes potential future acquisitions and dispositions, which could result in a material change to the Company’s outlook. The 2017 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 2017, the Company anticipates:
Current Outlook | |
Pro forma RevPAR growth | -1.0% to +1.0% |
Pro forma Hotel EBITDA Margin | 34.5% to 35.5% |
Pro forma Consolidated Hotel EBITDA | $380.0M to $400.0M |
Corporate Cash General & Administrative | $27.5M to $28.5M |
Earnings Call
The Company will conduct its quarterly analyst and investor conference call on February 23, 2017, 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 page of the Company’s website.
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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 122 hotels with approximately 20,100 rooms, located in 21 states and the District of Columbia.
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 Operating Officer and Chief Financial Officer – (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, (5) Hotel EBITDA, and (6) Hotel EBITDA Margin. 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, Hotel EBITDA, and Hotel EBITDA Margin 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.
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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 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.
Adjustments to FFO and EBITDA
The Company adjusts FFO and EBITDA for certain items that the Company considers outside the normal course of operations 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:
• | Transaction and Pursuit Costs: The Company excludes transaction and pursuit costs expensed during the period. |
• | Non-Cash Expenses: The Company excludes the effect of certain non-cash items. The Company has excluded the amortization of share-based compensation, accelerated amortization of deferred financing costs, non-cash gain or loss on the disposal of assets, and certain non-cash income taxes. |
• | Other Non-Operational Expenses: The Company excludes the effect of certain non-operational expenses. The Company has excluded property-level severance costs, debt modification and extinguishment costs, and other income and expenses outside the normal course of operations. |
Hotel EBITDA and Hotel EBITDA Margin
With respect to Consolidated Hotel EBITDA, the Company believes that excluding the effect of corporate-level expenses and certain 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 unadjusted prior ownership information provided by the sellers of the hotels, which has not been audited and excludes sold hotels. Pro forma Hotel EBITDA and Pro forma Hotel EBITDA Margin exclude the results of non-comparable hotels that were under renovation or not open for the entirety of the comparable periods. The following is a summary of pro forma hotel adjustments:
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Pro forma adjustments: Non-comparable hotels
Non-comparable hotels for the quarter and year ended December 31, 2016 and 2015, are noted below:
• | Hyatt Place Washington DC Downtown K Street opened in April 2015 and was non-comparable for the six months ended June 30, 2016 and 2015 |
• | SpringHill Suites Houston Downtown Convention Center opened in August 2015 and was non-comparable for the nine months ended September 30, 2016 and 2015 |
• | Courtyard San Francisco opened in September 2015 and was non-comparable for the nine months ended September 30, 2016 and 2015 |
• | Courtyard Waikiki Beach underwent a renovation in 2015 that closed a portion of the hotel for the comparable periods and was non-comparable for the year ended December 31, 2016 and 2015 |
Pro forma adjustments: Acquired hotels
Hotels acquired during the comparable quarter and year ended December 31, 2016 and 2015, are noted below:
• | Hyatt Place Washington DC Downtown K Street was acquired in July 2015 |
• | Homewood Suites Seattle Lynnwood was acquired in July 2015 |
• | Residence Inn Palo Alto Los Altos was acquired in September 2015 |
Pro forma adjustments: Sold hotels
Hotels sold during the comparable quarter and year ended December 31, 2016 and 2015, are noted below:
• | Courtyard Chicago Schaumburg was sold in February 2015 |
• | Courtyard Detroit Pontiac Bloomfield was sold in February 2015 |
• | Courtyard Grand Junction was sold in February 2015 |
• | Courtyard Mesquite was sold in February 2015 |
• | Courtyard San Antonio Airport Northstar was sold in February 2015 |
• | Courtyard Tampa Brandon was sold in February 2015 |
• | Fairfield Inn & Suites Merrillville was sold in February 2015 |
• | Fairfield Inn & Suites San Antonio Airport was sold in February 2015 |
• | Fairfield Inn & Suites Tampa Brandon was sold in February 2015 |
• | Hampton Inn Merrillville was sold in February 2015 |
• | Holiday Inn Grand Rapids Airport was sold in February 2015 |
• | Homewood Suites Tampa Brandon was sold in February 2015 |
• | Marriott Auburn Hills Pontiac at Centerpoint was sold in February 2015 |
• | Residence Inn Austin Round Rock was sold in February 2015 |
• | Residence Inn Chicago Schaumburg was sold in February 2015 |
• | Residence Inn Detroit Pontiac Auburn Hills was sold in February 2015 |
• | Residence Inn Grand Junction was sold in February 2015 |
• | Residence Inn Indianapolis Carmel was sold in February 2015 |
• | SpringHill Suites Chicago Schaumburg was sold in February 2015 |
• | SpringHill Suites Indianapolis Carmel was sold in February 2015 |
• | Fairfield Inn & Suites Valparaiso was sold in May 2015 |
• | Residence Inn South Bend was sold in July 2015 |
• | Embassy Suites Columbus was sold in October 2015 |
• | Holiday Inn Express Merrillville was sold in February 2016 |
• | SpringHill Suites Bakersfield was sold in November 2016 |
• | Hilton Garden Inn New York 35th Street was sold in December 2016 |
• | Hilton New York Fashion District was sold in December 2016 |
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RLJ Lodging Trust
Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
December 31, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Investment in hotel properties, net | $ | 3,368,674 | $ | 3,674,999 | |||
Cash and cash equivalents | 456,672 | 134,192 | |||||
Restricted cash reserves | 67,206 | 55,455 | |||||
Hotel and other receivables, net of allowance of $182 and $117, respectively | 26,018 | 25,755 | |||||
Deferred income tax asset | 44,614 | 49,978 | |||||
Prepaid expense and other assets | 60,209 | 32,563 | |||||
Total assets | $ | 4,023,393 | $ | 3,972,942 | |||
Liabilities and Equity | |||||||
Mortgage loans, net | $ | 413,407 | $ | 406,049 | |||
Term Loans and Revolver, net | 1,169,308 | 1,169,437 | |||||
Accounts payable and other liabilities | 137,066 | 129,192 | |||||
Deferred income tax liability | 11,430 | 9,801 | |||||
Advance deposits and deferred revenue | 11,975 | 11,647 | |||||
Accrued interest | 3,444 | 4,883 | |||||
Distributions payable | 41,486 | 41,409 | |||||
Total liabilities | 1,788,116 | 1,772,418 | |||||
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, 2016 and 2015, respectively | — | — | |||||
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 124,364,178 and 124,635,675 shares issued and outstanding at December 31, 2016 and 2015, respectively | 1,244 | 1,246 | |||||
Additional paid-in capital | 2,187,333 | 2,195,732 | |||||
Accumulated other comprehensive loss | (4,902 | ) | (16,602 | ) | |||
Retained earnings | 38,249 | 2,439 | |||||
Total shareholders’ equity | 2,221,924 | 2,182,815 | |||||
Noncontrolling interest: | |||||||
Noncontrolling interest in consolidated joint venture | 5,973 | 6,177 | |||||
Noncontrolling interest in the Operating Partnership | 7,380 | 11,532 | |||||
Total noncontrolling interest | 13,353 | 17,709 | |||||
Total equity | 2,235,277 | 2,200,524 | |||||
Total liabilities and equity | $ | 4,023,393 | $ | 3,972,942 | |||
Note:
The corresponding notes to the consolidated financial statements can be found in the Company’s Annual Report on Form 10-K.
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RLJ Lodging Trust
Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
For the quarter ended December 31, | For the year ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Revenue | |||||||||||||||
Operating revenue | |||||||||||||||
Room revenue | $ | 233,427 | $ | 237,399 | $ | 1,010,637 | $ | 985,361 | |||||||
Food and beverage revenue | 29,088 | 29,211 | 111,691 | 114,818 | |||||||||||
Other operating department revenue | 8,938 | 8,653 | 37,667 | 36,161 | |||||||||||
Total revenue | $ | 271,453 | $ | 275,263 | $ | 1,159,995 | $ | 1,136,340 | |||||||
Expense | |||||||||||||||
Operating expense | |||||||||||||||
Room expense | $ | 54,872 | $ | 54,498 | $ | 228,656 | $ | 220,101 | |||||||
Food and beverage expense | 20,112 | 20,367 | 79,589 | 81,117 | |||||||||||
Management and franchise fee expense | 27,340 | 27,758 | 118,210 | 116,462 | |||||||||||
Other operating expense | 57,521 | 58,481 | 241,654 | 239,966 | |||||||||||
Total property operating expense | 159,845 | 161,104 | 668,109 | 657,646 | |||||||||||
Depreciation and amortization | 39,968 | 41,398 | 162,500 | 156,226 | |||||||||||
Impairment loss | — | 1,003 | — | 1,003 | |||||||||||
Property tax, insurance and other | 17,249 | 18,900 | 77,281 | 76,682 | |||||||||||
General and administrative | 7,994 | 8,769 | 31,516 | 37,810 | |||||||||||
Transaction and pursuit costs | (65 | ) | 53 | 192 | 3,058 | ||||||||||
Total operating expense | 224,991 | 231,227 | 939,598 | 932,425 | |||||||||||
Operating income | 46,462 | 44,036 | 220,397 | 203,915 | |||||||||||
Other income | 215 | 495 | 303 | 1,598 | |||||||||||
Interest income | 454 | 382 | 1,695 | 1,563 | |||||||||||
Interest expense | (14,587 | ) | (14,903 | ) | (58,820 | ) | (54,788 | ) | |||||||
Income from continuing operations before income tax (expense) benefit | 32,544 | 30,010 | 163,575 | 152,288 | |||||||||||
Income tax (expense) benefit | (2,793 | ) | 39,741 | (8,190 | ) | 39,126 | |||||||||
Income from continuing operations | 29,751 | 69,751 | 155,385 | 191,414 | |||||||||||
Gain on sale of hotel properties | 46,084 | 4,616 | 45,929 | 28,398 | |||||||||||
Net income | 75,835 | 74,367 | 201,314 | 219,812 | |||||||||||
Net income attributable to noncontrolling interests | |||||||||||||||
Noncontrolling interest in consolidated joint venture | (48 | ) | (51 | ) | (55 | ) | (77 | ) | |||||||
Noncontrolling interest in the Operating Partnership | (354 | ) | (530 | ) | (907 | ) | (1,514 | ) | |||||||
Net income attributable to common shareholders | $ | 75,433 | $ | 73,786 | $ | 200,352 | $ | 218,221 | |||||||
Basic per common share data: | |||||||||||||||
Net income attributable to common shareholders | $ | 0.61 | $ | 0.58 | $ | 1.61 | $ | 1.69 | |||||||
Weighted-average number of common shares | 123,698,633 | 124,256,834 | 123,651,003 | 128,444,469 | |||||||||||
Diluted per common share data: | |||||||||||||||
Net income attributable to common shareholders | $ | 0.61 | $ | 0.59 | $ | 1.61 | $ | 1.68 | |||||||
Weighted-average number of common shares | 123,757,660 | 124,679,650 | 123,879,007 | 128,967,754 | |||||||||||
Note:
The Statements 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) Attributable to Common Shareholders and Unitholders
For the quarter ended December 31, | For the year ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 75,836 | $ | 74,367 | $ | 201,314 | $ | 219,812 | |||||||
Depreciation and amortization | 39,968 | 41,398 | 162,500 | 156,226 | |||||||||||
Gain on sale of hotel properties | (46,084 | ) | (4,616 | ) | (45,929 | ) | (28,398 | ) | |||||||
Impairment loss | — | 1,003 | — | 1,003 | |||||||||||
Noncontrolling interest in consolidated joint venture | (48 | ) | (51 | ) | (55 | ) | (77 | ) | |||||||
Adjustments related to consolidated joint venture (1) | (36 | ) | (43 | ) | (152 | ) | (170 | ) | |||||||
FFO | 69,636 | 112,058 | 317,678 | 348,396 | |||||||||||
Transaction and pursuit costs | (65 | ) | 53 | 192 | 3,058 | ||||||||||
Amortization of share-based compensation (2) | 2,055 | 2,514 | 5,990 | 13,002 | |||||||||||
Non-cash income tax expense (benefit) | 2,784 | (39,845 | ) | 7,001 | (39,845 | ) | |||||||||
Loan related costs (3) | — | — | 1,247 | 97 | |||||||||||
Other expense (4) | — | — | 604 | — | |||||||||||
Adjusted FFO | $ | 74,410 | $ | 74,780 | $ | 332,712 | $ | 324,708 | |||||||
Adjusted FFO per common share and unit-basic | $ | 0.60 | $ | 0.60 | $ | 2.68 | $ | 2.51 | |||||||
Adjusted FFO per common share and unit-diluted | $ | 0.60 | $ | 0.60 | $ | 2.67 | $ | 2.50 | |||||||
Basic weighted-average common shares and units outstanding (5) | 124,257 | 125,151 | 124,257 | 129,338 | |||||||||||
Diluted weighted-average common shares and units outstanding (5) | 124,316 | 125,574 | 124,485 | 129,862 | |||||||||||
Note:
(1) Includes depreciation and amortization expense allocated to the noncontrolling interest in the joint venture.
(2) For the year ended December 31, 2016, includes the forfeiture of unvested restricted shares upon the resignation of the Company's President and Chief Executive Officer in May 2016.
(3) Represents debt modification costs, debt extinguishment costs, and accelerated amortization of deferred financing costs.
(4) Represents property-level severance costs and other income and expenses outside the normal course of operations.
(5) Includes 0.6 million and 0.9 million weighted-average operating partnership units for the quarter ended December 31, 2016 and 2015, respectively, and 0.6 million and 0.9 million weighted-average operating partnership units for the year ended December 31, 2016 and 2015, respectively.
11
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 quarter ended December 31, | For the year ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 75,836 | $ | 74,367 | $ | 201,314 | $ | 219,812 | |||||||
Depreciation and amortization | 39,968 | 41,398 | 162,500 | 156,226 | |||||||||||
Interest expense, net (1) | 14,579 | 14,899 | 58,793 | 54,758 | |||||||||||
Income tax expense (benefit) | 2,793 | (39,741 | ) | 8,190 | (39,126 | ) | |||||||||
Noncontrolling interest in consolidated joint venture | (48 | ) | (51 | ) | (55 | ) | (77 | ) | |||||||
Adjustments related to consolidated joint venture (2) | (36 | ) | (43 | ) | (152 | ) | (170 | ) | |||||||
EBITDA | 133,092 | 90,829 | 430,590 | 391,423 | |||||||||||
Transaction and pursuit costs | (65 | ) | 53 | 192 | 3,058 | ||||||||||
Gain on sale of hotel properties | (46,084 | ) | (4,616 | ) | (45,929 | ) | (28,398 | ) | |||||||
Impairment loss | — | 1,003 | — | 1,003 | |||||||||||
Amortization of share-based compensation (3) | 2,055 | 2,514 | 5,990 | 13,002 | |||||||||||
Loan related costs (4) | — | — | 924 | — | |||||||||||
Other expense (5) | — | — | 604 | — | |||||||||||
Adjusted EBITDA | 88,998 | 89,783 | 392,371 | 380,088 | |||||||||||
General and administrative (6) | 5,938 | 6,255 | 25,016 | 24,808 | |||||||||||
Operating results from noncontrolling interest in joint venture | 84 | 94 | 207 | 247 | |||||||||||
Other corporate adjustments | (174 | ) | (294 | ) | (1,142 | ) | (730 | ) | |||||||
Consolidated Hotel EBITDA | 94,846 | 95,838 | 416,452 | 404,413 | |||||||||||
Pro forma adjustments - income from sold hotels | (3,980 | ) | (6,153 | ) | (16,106 | ) | (24,758 | ) | |||||||
Pro forma adjustments - income from prior ownership of acquired hotels (7) | — | — | — | 4,785 | |||||||||||
Pro forma Consolidated Hotel EBITDA | 90,866 | 89,685 | 400,346 | 384,440 | |||||||||||
Pro forma adjustments - income from non-comparable hotels | (1,619 | ) | (506 | ) | (16,251 | ) | (2,235 | ) | |||||||
Pro forma Hotel EBITDA | $ | 89,247 | $ | 89,179 | $ | 384,095 | $ | 382,205 | |||||||
Note:
(1) Excludes amounts attributable to investment in loans of $0.4 million and $1.7 million for the quarter and year ended December 31, 2016, respectively, and $0.3 million and $1.5 million for the quarter and year ended December 31, 2015, respectively.
(2) Includes depreciation and amortization expense allocated to the noncontrolling interest in the joint venture.
(3) For the year ended December 31, 2016, includes the forfeiture of unvested restricted shares upon the resignation of the Company's President and Chief Executive Officer in May 2016.
(4) Represents debt modification costs and debt extinguishment costs.
(5) Represents property-level severance costs and other income and expenses outside the normal course of operations.
(6) General and administrative expenses exclude amortization of share-based compensation and other non-recurring expenses reflected in Adjusted EBITDA.
(7) Information has not been audited. Reflects unadjusted property-level results provided by the sellers of the hotels.
12
RLJ Lodging Trust
Reconciliation of Non-GAAP Measures
(Amounts in thousands)
(unaudited)
Pro forma Hotel EBITDA Margin
For the quarter ended December 31, | For the year ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Total revenue | $ | 271,453 | $ | 275,263 | $ | 1,159,995 | $ | 1,136,340 | |||||||
Pro forma adjustments - Revenue from sold hotels | (11,573 | ) | (16,623 | ) | (52,278 | ) | (77,447 | ) | |||||||
Pro forma adjustments - Revenue from prior ownership of acquired hotels (1) | — | — | — | 13,113 | |||||||||||
Pro forma adjustments - Revenue from non-comparable hotels | (6,439 | ) | (4,674 | ) | (48,223 | ) | (23,792 | ) | |||||||
Other corporate adjustments | (14 | ) | (18 | ) | (56 | ) | (61 | ) | |||||||
Pro forma Hotel Revenue | $ | 253,427 | $ | 253,948 | $ | 1,059,438 | $ | 1,048,153 | |||||||
Pro forma Hotel EBITDA | $ | 89,247 | $ | 89,179 | $ | 384,095 | $ | 382,205 | |||||||
Pro forma Hotel EBITDA Margin | 35.2 | % | 35.1 | % | 36.3 | % | 36.5 | % | |||||||
Note:
(1) Information has not been audited. Reflects unadjusted property-level results provided by the sellers of the hotels.
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, 2016 (2) | |||
Secured Debt | ||||||||
Wells Fargo - 4 hotels | 3 | Oct 2021 | Floating (3) | 4.01% | $ | 150,000 | ||
Wells Fargo - 4 hotels | 2 | Mar 2022 | Floating (3) | 4.04% | 146,250 | |||
Wells Fargo - 1 hotel (4) | 10 | Jun 2022 | Fixed | 5.25% | 32,648 | |||
PNC Bank - 5 hotels | 5 | Mar 2023 | Floating | 2.87% | 85,000 | |||
Weighted-Average / Secured Total | 3.88% | $ | 413,898 | |||||
Unsecured Debt | ||||||||
Revolver (5) | 4 | Apr 2021 | Floating | 2.27% | $ | — | ||
$400 Million Term Loan Maturing 2019 | 5 | Mar 2019 | Floating (3) | 2.72% | 400,000 | |||
$225 Million Term Loan Maturing 2019 | 7 | Nov 2019 | Floating (3) | 4.04% | 225,000 | |||
$400 Million Term Loan Maturing 2021 | 5 | Apr 2021 | Floating (3)(6) | 2.95% | 400,000 | |||
$150 Million Term Loan Maturing 2022 | 7 | Jan 2022 | Floating (3) | 3.43% | 150,000 | |||
Weighted-Average / Unsecured Total | 3.14% | $ | 1,175,000 | |||||
Weighted-Average / Total Debt | 3.33% | $ | 1,588,898 | |||||
Note:
(1) Interest rates as of December 31, 2016.
(2) Excludes deferred financing costs.
(3) The floating interest rate is hedged with interest rate swaps.
(4) Excludes the $1.0 million impact of a fair value adjustment.
(5) There is $400.0 million of borrowing capacity on the Revolver, which is charged an unused commitment fee of 0.30% annually.
(6) Reflects interest rate swap on $350.0 million.
14
RLJ Lodging Trust
Acquisitions
(unaudited)
Acquisitions | Location | Acquisition Date | Management Company | Rooms | Gross Purchase Price ($ in millions) | % Interest | ||||
2016 Acquisitions | ||||||||||
No assets acquired | — | — | — | — | — | — | ||||
2015 Acquisitions | ||||||||||
Hyatt Place Washington 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 | % | |||||
Total Acquisitions | 490 | $ | 175.9 | 100 | % | |||||
15
RLJ Lodging Trust
Pro forma Operating Statistics(1) — Top 60 Assets
Property | City/State | # of Rooms | Pro forma Consolidated Hotel EBITDA | ||
Marriott Louisville Downtown | Louisville, KY | 616 | $ | 16,002 | |
DoubleTree Metropolitan Hotel New York City | New York, NY | 764 | 12,355 | ||
Courtyard Austin Downtown Convention Center | Austin, TX | 270 | 9,430 | ||
Courtyard Portland City Center | Portland, OR | 256 | 8,533 | ||
Courtyard Chicago Downtown Magnificent Mile | Chicago, IL | 306 | 8,056 | ||
DoubleTree Grand Key Resort | Key West, FL | 216 | 7,722 | ||
Embassy Suites Tampa Downtown Convention Center | Tampa, FL | 360 | 7,457 | ||
Courtyard Waikiki Beach | Honolulu, HI | 403 | 7,103 | ||
Courtyard San Francisco | San Francisco, CA | 166 | 6,746 | ||
Hyatt House Emeryville San Francisco Bay Area | Emeryville, CA | 234 | 6,712 | ||
Hilton Garden Inn San Francisco Oakland Bay Brg | Emeryville, CA | 278 | 6,434 | ||
Fairfield Inn & Suites Washington DC Downtown | Washington, DC | 198 | 6,383 | ||
Embassy Suites Boston Waltham | Waltham, MA | 275 | 6,286 | ||
Hyatt House San Jose Silicon Valley | San Jose, CA | 164 | 6,112 | ||
Residence Inn Palo Alto Los Altos | Los Altos, CA | 156 | 6,039 | ||
Marriott Denver South @ Park Meadows | Lone Tree, CO | 279 | 5,900 | ||
Hyatt House Santa Clara | Santa Clara, CA | 150 | 5,840 | ||
Hilton Cabana Miami Beach | Miami Beach, FL | 231 | 5,799 | ||
Renaissance Pittsburgh Hotel | Pittsburgh, PA | 300 | 5,752 | ||
Courtyard Charleston Historic District | Charleston, SC | 176 | 5,380 | ||
Renaissance Fort Lauderdale Plantation Hotel | Plantation, FL | 250 | 5,264 | ||
Embassy Suites Los Angeles Downey | Downey, CA | 220 | 5,195 | ||
Residence Inn Austin Downtown Convention Center | Austin, TX | 179 | 5,167 | ||
Hilton Garden Inn Los Angeles Hollywood | Los Angeles, CA | 160 | 5,116 | ||
Marriott Denver Airport @ Gateway Park | Aurora, CO | 238 | 4,878 | ||
Homewood Suites Washington DC Downtown | Washington, DC | 175 | 4,826 | ||
Residence Inn Bethesda Downtown | Bethesda, MD | 188 | 4,792 | ||
Hilton Garden Inn New Orleans Convention Center | New Orleans, LA | 286 | 4,270 | ||
Marriott Austin South | Austin, TX | 211 | 4,199 | ||
Hyatt Place Fremont Silicon Valley | Fremont, CA | 151 | 4,169 | ||
Renaissance Boulder Flatiron Hotel | Broomfield, CO | 232 | 4,020 | ||
Hyatt House San Diego Sorrento Mesa | San Diego, CA | 193 | 3,981 | ||
Hyatt Place Washington DC Downtown K Street | Washington, DC | 164 | 3,910 | ||
Fairfield Inn & Suites Key West | Key West, FL | 106 | 3,871 | ||
Courtyard New York Manhattan Upper East Side | New York, NY | 226 | 3,722 | ||
Residence Inn National Harbor Washington DC | Oxon Hill, MD | 162 | 3,676 | ||
Hyatt House Charlotte Center City | Charlotte, NC | 163 | 3,675 | ||
Hyatt House San Ramon | San Ramon, CA | 142 | 3,630 | ||
Hyatt Atlanta Midtown | Atlanta, GA | 194 | 3,628 | ||
Embassy Suites Irvine Orange County | Irvine, CA | 293 | 3,524 | ||
Courtyard Atlanta Buckhead | Atlanta, GA | 181 | 3,397 | ||
Residence Inn Indianapolis Downtown On The Canal | Indianapolis, IN | 134 | 3,201 | ||
Residence Inn Houston Downtown Convention Center | Houston, TX | 171 | 3,201 | ||
Courtyard Houston Downtown Convention Center | Houston, TX | 191 | 3,182 | ||
Homewood Suites Seattle Lynnwood | Lynnwood, WA | 170 | 3,159 | ||
Courtyard Houston By The Galleria | Houston, TX | 190 | 3,153 | ||
SpringHill Suites Portland Hillsboro | Hillsboro, OR | 106 | 3,141 | ||
Hampton Inn Garden City | Garden City, NY | 143 | 3,138 | ||
Embassy Suites West Palm Beach Central | West Palm Beach, FL | 194 | 3,132 | ||
Residence Inn Louisville Downtown | Louisville, KY | 140 | 3,129 | ||
Residence Inn Chicago Oak Brook | Oak Brook, IL | 156 | 3,082 | ||
Hyatt Place Madison Downtown | Madison, WI | 151 | 3,040 | ||
Hyatt House Dallas Lincoln Park | Dallas, TX | 155 | 2,698 | ||
Hilton Garden Inn Pittsburgh University Place | Pittsburgh, PA | 202 | 2,603 | ||
SpringHill Suites Denver North Westminster | Westminster, CO | 164 | 2,485 | ||
Courtyard Austin Airport | Austin, TX | 150 | 2,477 | ||
Marriott Chicago Midway | Chicago, IL | 200 | 2,365 | ||
Hampton Inn Houston Near The Galleria | Houston, TX | 176 | 2,324 | ||
Residence Inn Houston By The Galleria | Houston, TX | 146 | 1,979 | ||
Hyatt Centric The Woodlands | The Woodlands, TX | 70 | 1,517 | ||
Top 60 Assets | 12,921 | 291,957 | |||
Other (2) | 7,217 | 108,389 | |||
Total Portfolio | 20,138 | $ | 400,346 | ||
16
RLJ Lodging Trust
Pro forma Operating Statistics
(unaudited)
For the quarter ended December 31, 2016
Top Markets | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2016 | 2015 | Var | 2016 | 2015 | Var | 2016 | 2015 | Var | Q4 | ||||||||||||||||||||
Northern California | 8 | 83.3 | % | 82.0 | % | 1.6 | % | $ | 205.16 | $ | 199.63 | 2.8 | % | $ | 170.95 | $ | 163.75 | 4.4 | % | 11 | % | |||||||||
Austin | 13 | 73.6 | % | 77.6 | % | (5.1 | )% | 159.24 | 163.13 | (2.4 | )% | 117.18 | 126.51 | (7.4 | )% | 10 | % | |||||||||||||
South Florida | 10 | 78.7 | % | 80.7 | % | (2.5 | )% | 153.68 | 153.18 | 0.3 | % | 120.97 | 123.64 | (2.2 | )% | 8 | % | |||||||||||||
Chicago | 14 | 66.3 | % | 62.6 | % | 5.8 | % | 145.96 | 148.13 | (1.5 | )% | 96.75 | 92.78 | 4.3 | % | 8 | % | |||||||||||||
Denver | 13 | 69.3 | % | 67.3 | % | 3.0 | % | 129.50 | 129.98 | (0.4 | )% | 89.80 | 87.49 | 2.6 | % | 8 | % | |||||||||||||
New York City | 3 | 94.2 | % | 94.9 | % | (0.7 | )% | 246.00 | 246.00 | — | % | 231.75 | 233.35 | (0.7 | )% | 8 | % | |||||||||||||
Washington, DC | 8 | 74.3 | % | 67.4 | % | 10.2 | % | 179.45 | 175.89 | 2.0 | % | 133.26 | 118.51 | 12.4 | % | 7 | % | |||||||||||||
Louisville | 5 | 63.7 | % | 68.5 | % | (7.0 | )% | 142.42 | 150.76 | (5.5 | )% | 90.69 | 103.23 | (12.1 | )% | 6 | % | |||||||||||||
Houston | 10 | 63.5 | % | 64.4 | % | (1.5 | )% | 137.92 | 157.74 | (12.6 | )% | 87.52 | 101.64 | (13.9 | )% | 5 | % | |||||||||||||
Southern California | 5 | 84.1 | % | 80.3 | % | 4.8 | % | 157.03 | 151.24 | 3.8 | % | 132.07 | 121.42 | 8.8 | % | 5 | % | |||||||||||||
Other | 32 | 71.5 | % | 73.4 | % | (2.6 | )% | 151.63 | 148.32 | 2.2 | % | 108.39 | 108.83 | (0.4 | )% | 24 | % | |||||||||||||
Total | 121 | 73.5 | % | 73.6 | % | (0.1 | )% | $ | 162.19 | $ | 162.46 | (0.2 | )% | $ | 119.20 | $ | 119.54 | (0.3 | )% | 100 | % | |||||||||
Service Level | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2016 | 2015 | Var | 2016 | 2015 | Var | 2016 | 2015 | Var | Q4 | ||||||||||||||||||||
Focused-Service | 101 | 73.1 | % | 73.0 | % | 0.1 | % | $ | 154.88 | $ | 154.26 | 0.4 | % | $ | 113.15 | $ | 112.59 | 0.5 | % | 71 | % | |||||||||
Compact Full-Service | 19 | 76.7 | % | 77.0 | % | (0.5 | )% | 182.87 | 184.40 | (0.8 | )% | 140.21 | 142.04 | (1.3 | )% | 25 | % | |||||||||||||
Full-Service | 1 | 58.8 | % | 60.4 | % | (2.7 | )% | 161.31 | 173.08 | (6.8 | )% | 94.79 | 104.50 | (9.3 | )% | 4 | % | |||||||||||||
Total | 121 | 73.5 | % | 73.6 | % | (0.1 | )% | $ | 162.19 | $ | 162.46 | (0.2 | )% | $ | 119.20 | $ | 119.54 | (0.3 | )% | 100 | % | |||||||||
Chain Scale | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2016 | 2015 | Var | 2016 | 2015 | Var | 2016 | 2015 | Var | Q4 | ||||||||||||||||||||
Upper Upscale | 17 | 70.7 | % | 71.4 | % | (1.0 | )% | $ | 162.07 | $ | 165.25 | (1.9 | )% | $ | 114.64 | $ | 118.02 | (2.9 | )% | 22 | % | |||||||||
Upscale | 88 | 74.9 | % | 74.9 | % | — | % | 165.63 | 164.88 | 0.5 | % | 124.02 | 123.49 | 0.4 | % | 71 | % | |||||||||||||
Upper Midscale | 15 | 70.5 | % | 70.2 | % | 0.4 | % | 139.88 | 140.56 | (0.5 | )% | 98.67 | 98.74 | (0.1 | )% | 7 | % | |||||||||||||
Midscale | 1 | 64.2 | % | 56.5 | % | 13.6 | % | 98.73 | 100.31 | (1.6 | )% | 63.34 | 56.63 | 11.9 | % | — | % | |||||||||||||
Total | 121 | 73.5 | % | 73.6 | % | (0.1 | )% | $ | 162.19 | $ | 162.46 | (0.2 | )% | $ | 119.20 | $ | 119.54 | (0.3 | )% | 100 | % | |||||||||
Flags | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2016 | 2015 | Var | 2016 | 2015 | Var | 2016 | 2015 | Var | Q4 | ||||||||||||||||||||
Courtyard | 23 | 72.0 | % | 71.5 | % | 0.7 | % | $ | 165.50 | $ | 165.80 | (0.2 | )% | $ | 119.19 | $ | 118.59 | 0.5 | % | 20 | % | |||||||||
Residence Inn | 29 | 74.4 | % | 73.9 | % | 0.7 | % | 147.20 | 149.19 | (1.3 | )% | 109.50 | 110.24 | (0.7 | )% | 17 | % | |||||||||||||
Hyatt House | 11 | 80.4 | % | 82.5 | % | (2.5 | )% | 167.99 | 161.30 | 4.1 | % | 135.06 | 133.05 | 1.5 | % | 11 | % | |||||||||||||
Marriott | 5 | 64.6 | % | 63.4 | % | 1.9 | % | 155.38 | 162.83 | (4.6 | )% | 100.35 | 103.25 | (2.8 | )% | 8 | % | |||||||||||||
DoubleTree | 3 | 89.5 | % | 89.3 | % | 0.2 | % | 237.76 | 238.57 | (0.3 | )% | 212.88 | 213.12 | (0.1 | )% | 7 | % | |||||||||||||
Hilton Garden Inn | 8 | 71.5 | % | 72.8 | % | (1.7 | )% | 157.34 | 156.04 | 0.8 | % | 112.54 | 113.59 | (0.9 | )% | 7 | % | |||||||||||||
SpringHill Suites | 7 | 77.6 | % | 79.2 | % | (1.9 | )% | 158.71 | 154.79 | 2.5 | % | 123.21 | 122.53 | 0.6 | % | 7 | % | |||||||||||||
Renaissance | 3 | 69.0 | % | 70.7 | % | (2.4 | )% | 166.81 | 164.46 | 1.4 | % | 115.10 | 116.25 | (1.0 | )% | 4 | % | |||||||||||||
Fairfield Inn & Suites | 7 | 65.9 | % | 67.4 | % | (2.2 | )% | 126.88 | 130.96 | (3.1 | )% | 83.60 | 88.25 | (5.3 | )% | 4 | % | |||||||||||||
Hampton Inn | 7 | 72.7 | % | 71.4 | % | 1.8 | % | 153.16 | 153.96 | (0.5 | )% | 111.37 | 109.94 | 1.3 | % | 4 | % | |||||||||||||
Embassy Suites | 7 | 70.9 | % | 71.6 | % | (0.9 | )% | 125.65 | 126.63 | (0.8 | )% | 89.14 | 90.60 | (1.6 | )% | 3 | % | |||||||||||||
Hyatt Place | 3 | 81.8 | % | 78.2 | % | 4.6 | % | 176.58 | 160.83 | 9.8 | % | 144.37 | 125.77 | 14.8 | % | 3 | % | |||||||||||||
Homewood Suites | 2 | 71.8 | % | 64.9 | % | 10.8 | % | 172.75 | 173.69 | (0.5 | )% | 124.10 | 112.64 | 10.2 | % | 2 | % | |||||||||||||
Hyatt | 2 | 75.1 | % | 77.5 | % | (3.2 | )% | 186.15 | 200.55 | (7.2 | )% | 139.73 | 155.50 | (10.1 | )% | 1 | % | |||||||||||||
Hilton | 1 | 68.3 | % | 70.5 | % | (3.1 | )% | 182.64 | 213.97 | (14.6 | )% | 124.72 | 150.80 | (17.3 | )% | 1 | % | |||||||||||||
Other | 3 | 58.5 | % | 58.1 | % | 0.6 | % | 142.11 | 148.72 | (4.4 | )% | 83.09 | 86.47 | (3.9 | )% | 1 | % | |||||||||||||
Total | 121 | 73.5 | % | 73.6 | % | (0.1 | )% | $ | 162.19 | $ | 162.46 | (0.2 | )% | $ | 119.20 | $ | 119.54 | (0.3 | )% | 100 | % | |||||||||
Note: Information above is unaudited and includes unadjusted property-level results provided by the sellers of the hotels prior to the Company's ownership. Results reflect 100% of DoubleTree NYC Metropolitan financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture, and exclude non-comparable hotels during the periods that were not open for operation or were closed for renovation for comparable periods.
17
RLJ Lodging Trust
Pro forma Operating Statistics
(unaudited)
For the year ended December 31, 2016
Top Markets | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2016 | 2015 | Var | 2016 | 2015 | Var | 2016 | 2015 | Var | FY | ||||||||||||||||||||
Northern California | 8 | 87.6 | % | 84.4 | % | 3.7 | % | $ | 211.02 | $ | 199.24 | 5.9 | % | $ | 184.76 | $ | 168.25 | 9.8 | % | 11 | % | |||||||||
Austin | 13 | 78.0 | % | 80.1 | % | (2.7 | )% | 163.40 | 161.45 | 1.2 | % | 127.39 | 129.32 | (1.5 | )% | 10 | % | |||||||||||||
South Florida | 10 | 83.5 | % | 83.3 | % | 0.2 | % | 164.48 | 164.44 | — | % | 137.31 | 136.94 | 0.3 | % | 9 | % | |||||||||||||
Denver | 13 | 76.7 | % | 75.7 | % | 1.3 | % | 137.89 | 135.46 | 1.8 | % | 105.83 | 102.58 | 3.2 | % | 9 | % | |||||||||||||
Chicago | 14 | 68.5 | % | 70.1 | % | (2.3 | )% | 149.69 | 151.28 | (1.1 | )% | 102.51 | 106.03 | (3.3 | )% | 7 | % | |||||||||||||
Washington, DC | 8 | 77.1 | % | 74.7 | % | 3.3 | % | 181.98 | 176.76 | 3.0 | % | 140.35 | 132.01 | 6.3 | % | 7 | % | |||||||||||||
Louisville | 5 | 72.2 | % | 72.4 | % | (0.3 | )% | 157.59 | 158.04 | (0.3 | )% | 113.75 | 114.45 | (0.6 | )% | 7 | % | |||||||||||||
Southern California | 5 | 85.7 | % | 83.3 | % | 2.9 | % | 166.43 | 158.58 | 5.0 | % | 142.63 | 132.12 | 8.0 | % | 5 | % | |||||||||||||
Houston | 10 | 67.8 | % | 69.6 | % | (2.7 | )% | 147.46 | 162.80 | (9.4 | )% | 99.93 | 113.37 | (11.9 | )% | 5 | % | |||||||||||||
New York City | 3 | 94.3 | % | 93.9 | % | 0.4 | % | 219.14 | 225.37 | (2.8 | )% | 206.75 | 211.68 | (2.3 | )% | 5 | % | |||||||||||||
Other | 32 | 76.6 | % | 77.0 | % | (0.5 | )% | 155.88 | 151.70 | 2.8 | % | 119.43 | 116.85 | 2.2 | % | 25 | % | |||||||||||||
Total | 121 | 77.9 | % | 77.9 | % | — | % | $ | 165.52 | $ | 163.73 | 1.1 | % | $ | 128.95 | $ | 127.52 | 1.1 | % | 100 | % | |||||||||
Service Level | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2016 | 2015 | Var | 2016 | 2015 | Var | 2016 | 2015 | Var | FY | ||||||||||||||||||||
Focused-Service | 101 | 77.4 | % | 77.3 | % | 0.1 | % | $ | 159.31 | $ | 156.65 | 1.7 | % | $ | 123.30 | $ | 121.12 | 1.8 | % | 72 | % | |||||||||
Compact Full-Service | 19 | 80.6 | % | 80.9 | % | (0.4 | )% | 181.39 | 181.32 | — | % | 146.15 | 146.68 | (0.4 | )% | 24 | % | |||||||||||||
Full-Service | 1 | 68.6 | % | 67.2 | % | 2.1 | % | 178.15 | 182.27 | (2.3 | )% | 122.21 | 122.42 | (0.2 | )% | 4 | % | |||||||||||||
Total | 121 | 77.9 | % | 77.9 | % | — | % | $ | 165.52 | $ | 163.73 | 1.1 | % | $ | 128.95 | $ | 127.52 | 1.1 | % | 100 | % | |||||||||
Chain Scale | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2016 | 2015 | Var | 2016 | 2015 | Var | 2016 | 2015 | Var | FY | ||||||||||||||||||||
Upper Upscale | 17 | 76.2 | % | 76.6 | % | (0.4 | )% | $ | 170.17 | $ | 169.36 | 0.5 | % | $ | 129.69 | $ | 129.65 | — | % | 23 | % | |||||||||
Upscale | 88 | 79.1 | % | 78.7 | % | 0.4 | % | 166.34 | 164.37 | 1.2 | % | 131.53 | 129.39 | 1.7 | % | 68 | % | |||||||||||||
Upper Midscale | 15 | 74.7 | % | 76.1 | % | (1.9 | )% | 151.60 | 149.09 | 1.7 | % | 113.18 | 113.42 | (0.2 | )% | 9 | % | |||||||||||||
Midscale | 1 | 62.1 | % | 62.8 | % | (1.1 | )% | 107.90 | 106.43 | 1.4 | % | 66.97 | 66.81 | 0.2 | % | — | % | |||||||||||||
Total | 121 | 77.9 | % | 77.9 | % | — | % | $ | 165.52 | $ | 163.73 | 1.1 | % | $ | 128.95 | $ | 127.52 | 1.1 | % | 100 | % | |||||||||
Flags | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2016 | 2015 | Var | 2016 | 2015 | Var | 2016 | 2015 | Var | FY | ||||||||||||||||||||
Courtyard | 23 | 76.4 | % | 76.5 | % | (0.1 | )% | $ | 165.02 | $ | 166.25 | (0.7 | )% | $ | 126.14 | $ | 127.21 | (0.8 | )% | 19 | % | |||||||||
Residence Inn | 29 | 78.9 | % | 78.1 | % | 1.0 | % | 152.96 | 151.88 | 0.7 | % | 120.71 | 118.68 | 1.7 | % | 17 | % | |||||||||||||
Hyatt House | 11 | 84.2 | % | 82.1 | % | 2.5 | % | 172.35 | 163.62 | 5.3 | % | 145.09 | 134.39 | 8.0 | % | 11 | % | |||||||||||||
Marriott | 5 | 71.8 | % | 70.8 | % | 1.3 | % | 164.78 | 166.61 | (1.1 | )% | 118.29 | 118.01 | 0.2 | % | 9 | % | |||||||||||||
SpringHill Suites | 7 | 81.7 | % | 82.3 | % | (0.7 | )% | 168.40 | 161.22 | 4.5 | % | 137.61 | 132.63 | 3.8 | % | 7 | % | |||||||||||||
Hilton Garden Inn | 8 | 75.2 | % | 76.0 | % | (1.0 | )% | 162.89 | 158.29 | 2.9 | % | 122.57 | 120.37 | 1.8 | % | 7 | % | |||||||||||||
DoubleTree | 3 | 90.7 | % | 90.0 | % | 0.8 | % | 216.01 | 220.48 | (2.0 | )% | 195.82 | 198.35 | (1.3 | )% | 6 | % | |||||||||||||
Hampton Inn | 7 | 76.8 | % | 78.1 | % | (1.6 | )% | 162.64 | 158.63 | 2.5 | % | 124.92 | 123.87 | 0.8 | % | 4 | % | |||||||||||||
Embassy Suites | 7 | 75.0 | % | 76.0 | % | (1.4 | )% | 139.97 | 138.83 | 0.8 | % | 104.93 | 105.55 | (0.6 | )% | 4 | % | |||||||||||||
Renaissance | 3 | 73.4 | % | 76.8 | % | (4.3 | )% | 167.25 | 163.05 | 2.6 | % | 122.79 | 125.15 | (1.9 | )% | 4 | % | |||||||||||||
Fairfield Inn & Suites | 7 | 73.1 | % | 75.2 | % | (2.8 | )% | 130.27 | 127.82 | 1.9 | % | 95.20 | 96.09 | (0.9 | )% | 4 | % | |||||||||||||
Hyatt Place | 3 | 85.9 | % | 83.5 | % | 2.9 | % | 173.38 | 161.57 | 7.3 | % | 148.94 | 134.89 | 10.4 | % | 2 | % | |||||||||||||
Homewood Suites | 2 | 75.3 | % | 74.5 | % | 1.1 | % | 184.65 | 180.08 | 2.5 | % | 139.05 | 134.16 | 3.6 | % | 2 | % | |||||||||||||
Hilton | 1 | 80.8 | % | 76.8 | % | 5.3 | % | 194.67 | 222.85 | (12.6 | )% | 157.28 | 171.04 | (8.0 | )% | 2 | % | |||||||||||||
Hyatt | 2 | 75.3 | % | 77.0 | % | (2.3 | )% | 196.53 | 205.22 | (4.2 | )% | 147.93 | 158.07 | (6.4 | )% | 1 | % | |||||||||||||
Other | 3 | 59.8 | % | 62.4 | % | (4.2 | )% | 149.52 | 150.33 | (0.5 | )% | 89.47 | 93.85 | (4.7 | )% | 1 | % | |||||||||||||
Total | 121 | 77.9 | % | 77.9 | % | — | % | $ | 165.52 | $ | 163.73 | 1.1 | % | $ | 128.95 | $ | 127.52 | 1.1 | % | 100 | % | |||||||||
Note: Information above is unaudited and includes unadjusted property-level results provided by the sellers of the hotels prior to the Company's ownership. Results reflect 100% of DoubleTree NYC Metropolitan financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture, and exclude non-comparable hotels during the periods that were not open for operation or were closed for renovation for comparable periods.
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