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 28, 2019
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 28, 2019, RLJ Lodging Trust (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2018. 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:
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 28, 2019 | By: | /s/ LESLIE D. HALE |
Leslie D. Hale | ||
President, Chief Executive Officer, and Trustee | ||
EXHIBIT LIST
Press Release
RLJ Lodging Trust Reports Fourth Quarter
and Full Year 2018 Results
- Sold seven hotels in 2018 for approximately $533 million at a 16.5x trailing EBITDA multiple
- Repaid $635 million of debt in 2018, exceeding initial goal of $500 million
- Realized $22 million in merger synergies
Bethesda, MD, February 28, 2019 – RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three months and year ended December 31, 2018.
Fourth Quarter Highlights
• | Pro forma RevPAR decrease of 3.0% |
• | Pro forma Hotel EBITDA Margin of 31.2% |
• | Net income of $27.9 million |
• | Adjusted EBITDA of $113.8 million |
• | Adjusted FFO per diluted common share and unit of $0.49 |
• | Repurchased 1.2 million common shares for approximately $21.8 million |
Full Year Highlights
• | Pro forma RevPAR decrease of 0.8% |
• | Pro forma Hotel EBITDA Margin of 32.8% |
• | Net income of $190.9 million |
• | Adjusted EBITDA of $522.1 million |
• | Adjusted FFO per diluted common share and unit of $2.26 |
• | Repurchased 1.8 million common shares for approximately $32.1 million, inclusive of 0.6 million common shares repurchased in the first quarter of 2019 |
• | Sold seven hotels for approximately $533 million at a 16.5x trailing EBITDA multiple |
• | Repaid $635 million of indebtedness, exceeding our $500 million debt reduction objective |
“2018 was a transformational year for RLJ as we successfully executed on our strategic initiatives to position the Company for growth in 2019 and beyond,” commented Leslie D. Hale, President and Chief Executive Officer. “During the year, we sold seven hotels at an EBITDA multiple of 16.5x, paid down $635 million in debt, and took meaningful strides to position our portfolio for long-term growth. Additionally, we successfully redeployed the net proceeds from the sale of the Holiday Inn Fisherman's Wharf to repurchase 1.8 million common shares at a significant discount to net asset value. We remain encouraged by our portfolio positioning in 2019 and our team's ability to identify and execute on opportunities to drive shareholder value.”
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Financial and Operating Results
The prefix “Pro forma” as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. Pro forma RevPAR and Pro forma Hotel EBITDA Margin are reported on a comparable basis and therefore exclude any hotels sold during the period and non-comparable hotels that were not open for operation or were closed for renovation for comparable periods. Explanations of EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included within this release.
For the three months and year ended December 31, 2018 and 2017
($ in millions, except ADR, RevPAR, and per share amounts)
(unaudited)
For the quarter ended December 31, | For the year ended December 31, | ||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||
Operational Overview: | |||||||||||||
Total Revenues | $399.9 | $462.5 | (13.5 | )% | $1,761.2 | $1,356.3 | 29.9 | % | |||||
Pro forma ADR | $170.71 | $170.32 | 0.2 | % | $172.83 | $172.54 | 0.2 | % | |||||
Pro forma Occupancy | 73.7 | % | 76.2 | % | (3.2 | )% | 77.7 | % | 78.4 | % | (0.9 | )% | |
Pro forma RevPAR | $125.86 | $129.77 | (3.0 | )% | $134.27 | $135.31 | (0.8 | )% | |||||
Financial Overview: | |||||||||||||
Net Income | $27.9 | $7.4 | 277.9 | % | $190.9 | $75.7 | 152.0 | % | |||||
Pro forma Hotel EBITDA | $123.4 | $135.7 | (9.0 | )% | $541.7 | $570.2 | (5.0 | )% | |||||
Pro forma Hotel EBITDA Margin | 31.2 | % | 33.4 | % | -221 bps | 32.8 | % | 34.3 | % | -150 bps | |||
Adjusted EBITDA (1) | $113.8 | $136.5 | (16.6 | )% | $522.1 | $427.6 | 22.1 | % | |||||
Adjusted FFO (1) | $84.9 | $99.4 | (14.6 | )% | $395.7 | $339.1 | 16.7 | % | |||||
Adjusted FFO Per Diluted Common Share and Unit | $0.49 | $0.57 | (14.0 | )% | $2.26 | $2.40 | (5.8 | )% | |||||
Note:
(1) For the year ended December 31, 2018, sold hotels contributed $16.7 million and $15.7 million to Adjusted EBITDA and Adjusted FFO, respectively.
The Company's fourth quarter was impacted by the significant hurricane demand in Houston and South Florida during the fourth quarter of 2017, which held back RevPAR growth by approximately 180 basis points. Excluding this impact and the 115 basis points of renovation disruption, RevPAR growth would have been flat. The Company's top performing markets were New York City and Chicago with Pro forma RevPAR growth of 3.2% and 2.3%, respectively.
Full Year Dispositions
For the year ended December 31, 2018, the Company sold the following seven hotels for $532.9 million in aggregate at a blended EBITDA multiple of 16.5x, inclusive of required and planned capital expenditures.
•229-room Embassy Suites Boston - Marlborough for $23.7 million in February 2018
•364-room Sheraton Philadelphia Society Hill for $95.5 million in March 2018
•205-room Embassy Suites Napa Valley for $102.0 million in July 2018
•152-room DoubleTree Hotel Columbia for $12.9 million in August 2018
•362-room The Vinoy Renaissance St. Petersburg Resort & Golf Club for total consideration of
$188.5 million in August 2018
•309-room DoubleTree by Hilton Burlington Vermont for $35.0 million in September 2018
•Remaining 243-room Annex building of the Holiday Inn San Francisco - Fisherman's Wharf for
$75.3 million in October 2018.
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Fourth Quarter Disposition
The Holiday Inn San Francisco - Fisherman's Wharf consists of two separate buildings, the 342-room Columbus Street building and the 243-room Annex building. On October 31, 2018, the ground lease under the Columbus Street building expired and the building was transferred to the lessor in accordance with the ground lease. On October 15, 2018, the Company separately sold the remaining Annex building for a contractual sales price of $75.3 million, of which the Company's pro rata share was approximately $30.4 million.
Share Repurchases
The Company has repurchased 1.8 million shares of its common stock at an average price of $18.35 per share since it began repurchasing shares in November 2018. The Company repurchased 1.2 million shares of its common stock at an average price of $18.76 for a total purchase price of $21.8 million during the fourth quarter of 2018. Subsequent to December 31, 2018, the Company repurchased 0.6 million shares of its common stock at an average price of $17.54 per share.
The Company's existing repurchase program expired at the end of February. On February 15, 2019, the Company's Board of Trustees authorized a new one year $250 million share repurchase program.
Balance Sheet
As of December 31, 2018, the Company had $320.1 million of unrestricted cash on its balance sheet, $600.0 million available on its revolving credit facility, and $2.2 billion of debt outstanding.
The Company’s ratio of net debt to Adjusted EBITDA for the year ended December 31, 2018, was 3.7x.
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, 2019, to shareholders of record as of December 31, 2018. For the year ended December 31, 2018, the Company declared a total cash dividend of $1.32 per common share of beneficial interest.
The Company's Board of Trustees declared a preferred dividend of $0.4875 on its Series A cumulative convertible preferred shares. The dividend was paid on January 31, 2019, to shareholders of record as of December 31, 2018. For the year ended December 31, 2018, the Company declared a total dividend of $1.95 per Series A cumulative convertible preferred share.
Subsequent Events
On February 15, 2019, the Company redeemed all $45.0 million of preferred equity associated with The Knickerbocker hotel redevelopment in cash.
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2019 Outlook
The Company’s outlook includes only hotels owned as of February 28, 2019. Potential future acquisitions or dispositions could result in a material change to the Company’s outlook.
For the full year 2019, the Company anticipates:
Current Outlook | |
Pro forma RevPAR growth | 0.0% to +2.0% |
Pro forma Hotel EBITDA Margin | 31.6% to 32.6% |
Pro forma Consolidated Hotel EBITDA | $522.0M to $552.0M |
Corporate Cash General & Administrative | $35.0M to $36.0M |
Adjusted EBITDA | $487.0M to $517.0M |
Adjusted FFO per Diluted Share and Unit | $2.15 to $2.30 |
Additionally, key assumptions underlying the Company's full year 2019 outlook include:
• | Net interest expense of $88 million to $90 million |
• | Capital expenditures related to renovations in the range of $90 million to $110 million and approximately 40 bps to 50 bps of renovation related RevPAR disruption |
• | Cash income tax expense of $3 million to $4 million |
For the first quarter 2019, the Company anticipates Pro forma Consolidated Hotel EBITDA of $110 million to $115 million and Adjusted EBITDA of $101.5 million to $106.5 million.
Earnings Call
The Company will conduct its quarterly analyst and investor conference call on March 1, 2019, at 9:00 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://www.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.
About Us
RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio consists of 150 hotels with approximately 28,600 rooms, located in 25 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.
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
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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 Securities and Exchange Commission.
###
Additional Contacts:
Sean Mahoney, Executive Vice President and Chief Financial Officer – (301) 280-7774
For additional information or to receive press releases via email, please visit our website:
http://www.rljlodgingtrust.com
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RLJ Lodging Trust
Non-GAAP and Accounting Commentary
Non-Generally Accepted Accounting Principles (“Non-GAAP”) Financial Measures
The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) EBITDAre, (5) Adjusted EBITDA, (6) Hotel EBITDA, and (7) 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, EBITDAre, 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 Funds from Operations ("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.
EBITDA and EBITDAre
Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") is defined as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sales of assets; and (3) depreciation and amortization. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions.
In addition to EBITDA, the Company presents EBITDAre in accordance with NAREIT guidelines, which defines EBITDAre as net income or loss (calculated in accordance with GAAP) excluding interest expense, income tax expense, depreciation and amortization expense, gains or losses from sales of real estate, impairment, and adjustments for unconsolidated partnerships and joint ventures. The Company
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believes that the presentation of EBITDAre provides useful information to investors regarding the Company's operating performance and can facilitate comparisons of operating performance between periods and between REITs.
Adjustments to FFO and EBITDA
The Company adjusts FFO, EBITDA, and EBITDAre for certain items that the Company considers either outside the normal course of operations or extraordinary. The Company believes that Adjusted FFO and Adjusted EBITDA, and Adjusted EBITDAre provide useful supplemental information to investors regarding its ongoing operating performance that, when considered with net income or loss, FFO, EBITDA, and EBITDAre, is beneficial to an investor’s understanding of its operating performance. The Company adjusts FFO, EBITDA, and EBITDAre for the following items:
• | Transaction Costs: The Company excludes transaction costs expensed during the period. |
• | Non-Cash Expenses: The Company excludes the effect of certain non-cash items such as the amortization of share-based compensation and non-cash income taxes. |
• | Other Non-Operational Expenses: The Company excludes the effect of certain non-operational expenses representing income and expenses outside the normal course of operations. |
The Company previously presented Adjusted EBITDA with adjustments for noncontrolling interests in consolidated joint ventures. The rationale for including 100% of Adjusted EBITDA for consolidated joint ventures with noncontrolling interests is that the full amount of any debt of these consolidated joint ventures is reported in our consolidated balance sheet and metrics using debt to EBITDA provide a better understanding of the Company’s leverage. This is also consistent with NAREIT’s definition of EBITDAre.
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 prior ownership information provided by the sellers of the hotels for periods prior to our acquisition of the hotels, which has not been audited and excludes results from sold hotels as applicable. 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:
Pro forma adjustments: Acquired hotels
For the year ended December 31, 2018, no hotels were acquired.
The Company acquired the following hotels in August 2017 in conjunction with the FelCor merger:
• | DoubleTree Suites by Hilton Austin |
• | DoubleTree Suites by Hilton Orlando - Lake Buena Vista |
• | Embassy Suites Atlanta - Buckhead |
• | Embassy Suites Birmingham |
• | Embassy Suites Boston - Marlborough |
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• | Embassy Suites Dallas - Love Field |
• | Embassy Suites Deerfield Beach - Resort & Spa |
• | Embassy Suites Fort Lauderdale 17th Street |
• | Embassy Suites Los Angeles - International Airport/South |
• | Embassy Suites Mandalay Beach - Hotel & Resort |
• | Embassy Suites Miami - International Airport |
• | Embassy Suites Milpitas Silicon Valley |
• | Embassy Suites Minneapolis - Airport |
• | Embassy Suites Myrtle Beach - Oceanfront Resort |
• | Embassy Suites Napa Valley |
• | Embassy Suites Orlando - International Drive South/Convention Center |
• | Embassy Suites Phoenix - Biltmore |
• | Embassy Suites San Francisco Airport - South San Francisco |
• | Embassy Suites San Francisco Airport - Waterfront |
• | Embassy Suites Secaucus - Meadowlands |
• | Hilton Myrtle Beach Resort |
• | Holiday Inn San Francisco - Fisherman's Wharf |
• | San Francisco Marriott Union Square |
• | DoubleTree by Hilton Burlington Vermont, formerly Sheraton Burlington Hotel & Conference Center |
• | Sheraton Philadelphia Society Hill Hotel |
• | The Fairmont Copley Plaza, Boston |
• | The Knickerbocker, New York |
• | The Mills House Wyndham Grand Hotel, Charleston |
• | The Vinoy Renaissance St. Petersburg Resort & Golf Club |
• | Wyndham Boston Beacon Hill |
• | Wyndham Houston - Medical Center Hotel & Suites |
• | Wyndham New Orleans - French Quarter |
• | Wyndham Philadelphia Historic District |
• | Wyndham Pittsburgh University Center |
• | Wyndham San Diego Bayside |
• | Wyndham Santa Monica At The Pier |
Pro forma adjustments: Sold hotels
For the year ended December 31, 2018, the following hotels were sold:
• | Embassy Suites Boston - Marlborough was sold in February 2018 |
• | Sheraton Philadelphia Society Hill Hotel was sold in March 2018 |
• | Embassy Suites Napa Valley was sold in July 2018 |
• | DoubleTree Hotel Columbia was sold in August 2018 |
• | The Vinoy Renaissance St. Petersburg Resort & Golf Club was sold in August 2018 |
• | DoubleTree by Hilton Burlington Vermont was sold in September 2018 |
• | Holiday Inn San Francisco - Fisherman's Wharf in October 2018 |
For the year ended December 31, 2017, the following hotel was sold:
• | The Fairmont Copley Plaza was sold in December 2017 |
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RLJ Lodging Trust
Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(unaudited)
December 31, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Investment in hotel properties, net | $ | 5,378,651 | $ | 5,791,925 | |||
Investment in unconsolidated joint ventures | 22,279 | 23,885 | |||||
Cash and cash equivalents | 320,147 | 586,470 | |||||
Restricted cash reserves | 64,695 | 72,606 | |||||
Hotel and other receivables, net of allowance of $598 and $510, respectively | 52,115 | 60,011 | |||||
Deferred income tax asset, net | 47,395 | 56,761 | |||||
Intangible assets, net | 52,448 | 133,211 | |||||
Prepaid expense and other assets | 67,367 | 69,936 | |||||
Total assets | $ | 6,005,097 | $ | 6,794,805 | |||
Liabilities and Equity | |||||||
Debt, net | $ | 2,202,676 | $ | 2,880,488 | |||
Accounts payable and other liabilities | 203,833 | 225,664 | |||||
Deferred income tax liability | 2,766 | 5,547 | |||||
Advance deposits and deferred revenue | 25,411 | 30,463 | |||||
Accrued interest | 7,913 | 17,081 | |||||
Distributions payable | 65,557 | 65,284 | |||||
Total liabilities | 2,508,156 | 3,224,527 | |||||
Equity | |||||||
Shareholders’ equity: | |||||||
Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized | |||||||
Series A Cumulative Convertible Preferred Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475 shares issued and outstanding, liquidation value of $328,266, at December 31, 2018 and 2017 | 366,936 | 366,936 | |||||
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 174,019,616 and 174,869,046 shares issued and outstanding at December 31, 2018 and 2017, respectively | 1,740 | 1,749 | |||||
Additional paid-in capital | 3,195,381 | 3,208,002 | |||||
Accumulated other comprehensive income | 16,195 | 8,846 | |||||
Distributions in excess of net earnings | (150,476 | ) | (82,566 | ) | |||
Total shareholders’ equity | 3,429,776 | 3,502,967 | |||||
Noncontrolling interest: | |||||||
Noncontrolling interest in consolidated joint ventures | 11,908 | 11,700 | |||||
Noncontrolling interest in the Operating Partnership | 10,827 | 11,181 | |||||
Total noncontrolling interest | 22,735 | 22,881 | |||||
Preferred equity in a consolidated joint venture, liquidation value of $45,544 and $45,430 at December 31, 2018 and 2017, respectively | 44,430 | 44,430 | |||||
Total equity | 3,496,941 | 3,570,278 | |||||
Total liabilities and equity | $ | 6,005,097 | $ | 6,794,805 | |||
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)
(unaudited)
For the quarter ended December 31, | For the year ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues | ||||||||||||||||
Operating revenues | ||||||||||||||||
Room revenue | $ | 334,933 | $ | 376,131 | $ | 1,473,047 | $ | 1,146,882 | ||||||||
Food and beverage revenue | 47,668 | 66,280 | 205,518 | 157,672 | ||||||||||||
Other revenue | 17,297 | 20,079 | 82,659 | 51,707 | ||||||||||||
Total revenues | $ | 399,898 | $ | 462,490 | $ | 1,761,224 | $ | 1,356,261 | ||||||||
Expenses | ||||||||||||||||
Operating expenses | ||||||||||||||||
Room expense | $ | 85,231 | $ | 94,206 | $ | 364,820 | $ | 270,729 | ||||||||
Food and beverage expense | 35,707 | 47,456 | 157,156 | 113,914 | ||||||||||||
Management and franchise fee expense | 30,377 | 36,523 | 138,143 | 122,633 | ||||||||||||
Other operating expense | 96,784 | 109,595 | 417,110 | 304,595 | ||||||||||||
Total property operating expenses | 248,099 | 287,780 | 1,077,229 | 811,871 | ||||||||||||
Depreciation and amortization | 58,212 | 64,856 | 241,641 | 186,993 | ||||||||||||
Property tax, insurance and other | 30,641 | 30,477 | 135,059 | 91,406 | ||||||||||||
General and administrative | 11,136 | 11,695 | 49,195 | 40,453 | ||||||||||||
Transaction costs | (123 | ) | 7,476 | 2,057 | 44,398 | |||||||||||
Total operating expenses | 347,965 | 402,284 | 1,505,181 | 1,175,121 | ||||||||||||
Other income | 276 | (55 | ) | 2,791 | 269 | |||||||||||
Interest income | 1,552 | 682 | 4,891 | 2,987 | ||||||||||||
Interest expense | (22,870 | ) | (29,795 | ) | (101,643 | ) | (78,322 | ) | ||||||||
(Loss) gain on sale of hotel properties, net | (2,016 | ) | 9,029 | 30,941 | 8,980 | |||||||||||
(Loss) gain on extinguishment of indebtedness, net | (14 | ) | — | 5,996 | — | |||||||||||
Gain on settlement of an investment in loan | — | — | — | 2,670 | ||||||||||||
Income before equity in income from unconsolidated joint ventures | 28,861 | 40,067 | 199,019 | 117,724 | ||||||||||||
Equity in (loss) income from unconsolidated joint ventures | (1 | ) | 76 | 636 | 133 | |||||||||||
Income before income tax expense | 28,860 | 40,143 | 199,655 | 117,857 | ||||||||||||
Income tax expense | (942 | ) | (32,756 | ) | (8,793 | ) | (42,118 | ) | ||||||||
Net income | 27,918 | 7,387 | 190,862 | 75,739 | ||||||||||||
Net income attributable to noncontrolling interests: | ||||||||||||||||
Noncontrolling interest in consolidated joint ventures | (186 | ) | (123 | ) | (17 | ) | (117 | ) | ||||||||
Noncontrolling interest in the Operating Partnership | (93 | ) | 27 | (719 | ) | (291 | ) | |||||||||
Preferred distributions - consolidated joint venture | (373 | ) | (374 | ) | (1,483 | ) | (496 | ) | ||||||||
Net income attributable to RLJ | 27,266 | 6,917 | 188,643 | 74,835 | ||||||||||||
Preferred dividends | (6,279 | ) | (6,279 | ) | (25,115 | ) | (8,372 | ) | ||||||||
Net income attributable to common shareholders | $ | 20,987 | $ | 638 | $ | 163,528 | $ | 66,463 | ||||||||
Basic per common share data: | ||||||||||||||||
Net income per share attributable to common shareholders | $ | 0.12 | $ | — | $ | 0.93 | $ | 0.47 | ||||||||
Weighted-average number of common shares | 174,141,263 | 174,147,522 | 174,225,130 | 140,616,838 | ||||||||||||
Diluted per common share data: | ||||||||||||||||
Net income per share attributable to common shareholders | $ | 0.12 | $ | — | $ | 0.93 | $ | 0.47 | ||||||||
Weighted-average number of common shares | 174,194,141 | 174,210,578 | 174,316,405 | 174,316,405 | 140,694,049 | |||||||||||
Note:
The Statements of Comprehensive Income and corresponding notes can be found in the Company’s Annual Report on Form 10-K.
10
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, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 27,918 | $ | 7,387 | $ | 190,862 | $ | 75,739 | |||||||
Preferred dividends | (6,279 | ) | (6,279 | ) | (25,115 | ) | (8,372 | ) | |||||||
Preferred distributions - consolidated joint venture | (373 | ) | (374 | ) | (1,483 | ) | (496 | ) | |||||||
Depreciation and amortization | 58,212 | 64,856 | 241,641 | 186,993 | |||||||||||
Loss (gain) on sale of hotel properties, net | 2,016 | (9,029 | ) | (30,941 | ) | (8,980 | ) | ||||||||
Noncontrolling interest in consolidated joint ventures | (186 | ) | (123 | ) | (17 | ) | (117 | ) | |||||||
Adjustments related to consolidated joint ventures (1) | (74 | ) | (85 | ) | (307 | ) | (193 | ) | |||||||
Adjustments related to unconsolidated joint ventures (2) | 646 | 707 | 2,644 | 900 | |||||||||||
FFO | 81,880 | 57,060 | 377,284 | 245,474 | |||||||||||
Transaction costs | (123 | ) | 7,476 | 2,057 | 44,398 | ||||||||||
Loss (gain) on extinguishment of indebtedness, net | 14 | — | (5,996 | ) | — | ||||||||||
Gain on settlement of an investment in loan | — | — | — | (2,670 | ) | ||||||||||
Amortization of share-based compensation | 2,529 | 2,642 | 12,251 | 10,607 | |||||||||||
Non-cash income tax expense | 413 | 31,775 | 6,584 | 39,747 | |||||||||||
Other expenses (3) | 228 | 475 | 3,558 | 1,591 | |||||||||||
Adjusted FFO | $ | 84,941 | $ | 99,428 | $ | 395,738 | $ | 339,147 | |||||||
Adjusted FFO per common share and unit-basic | $ | 0.49 | $ | 0.57 | $ | 2.26 | $ | 2.40 | |||||||
Adjusted FFO per common share and unit-diluted | $ | 0.49 | $ | 0.57 | $ | 2.26 | $ | 2.40 | |||||||
Basic weighted-average common shares and units outstanding (4) | 174,915 | 174,921 | 174,999 | 141,248 | |||||||||||
Diluted weighted-average common shares and units outstanding (4) | 174,968 | 174,984 | 175,090 | 141,325 | |||||||||||
Note:
(1) Includes depreciation and amortization expense allocated to the noncontrolling interest in the consolidated joint ventures.
(2) Includes our ownership interest of the depreciation and amortization expense of the unconsolidated joint ventures.
(3) Represents income and expenses outside of the normal course of operations, including debt modification costs, debt extinguishment costs, the accelerated amortization of deferred financing costs, hurricane-related costs that were not reimbursed by insurance, executive transition costs, receipts of prior year employee tax credits, and activist shareholder costs.
(4) Includes 0.8 million weighted-average operating partnership units for the three months ended December 31, 2018 and 2017, respectively, and 0.8 million and 0.6 million weighted-average operating partnership units for the years ended December 31, 2018 and 2017, 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, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 27,918 | $ | 7,387 | $ | 190,862 | $ | 75,739 | |||||||
Depreciation and amortization | 58,212 | 64,856 | 241,641 | 186,993 | |||||||||||
Interest expense, net (1) | 21,319 | 29,114 | 96,752 | 76,703 | |||||||||||
Income tax expense | 941 | 32,756 | 8,793 | 42,118 | |||||||||||
Adjustments related to unconsolidated joint ventures (2) | 773 | 837 | 3,152 | 1,072 | |||||||||||
EBITDA | 109,163 | 134,950 | 541,200 | 382,625 | |||||||||||
Loss (gain) on sale of hotel properties, net | 2,016 | (9,029 | ) | (30,941 | ) | (8,980 | ) | ||||||||
EBITDAre | 111,179 | 125,921 | 510,259 | 373,645 | |||||||||||
Transaction costs | (123 | ) | 7,476 | 2,057 | 44,398 | ||||||||||
Loss (gain) on extinguishment of indebtedness, net | 14 | — | (5,996 | ) | — | ||||||||||
Gain on settlement of an investment in loan | — | — | — | (2,670 | ) | ||||||||||
Amortization of share-based compensation | 2,529 | 2,642 | 12,251 | 10,607 | |||||||||||
Other expenses (3) | 228 | 475 | 3,558 | 1,591 | |||||||||||
Adjusted EBITDA | 113,827 | 136,514 | 522,129 | 427,571 | |||||||||||
General and administrative (4) | 8,593 | 9,053 | 33,802 | 29,846 | |||||||||||
Other corporate adjustments (5) | 1,354 | 698 | 2,478 | 392 | |||||||||||
Consolidated Hotel EBITDA | 123,774 | 146,265 | 558,409 | 457,809 | |||||||||||
Pro forma adjustments - income from sold hotels | (344 | ) | (10,564 | ) | (16,738 | ) | (16,605 | ) | |||||||
Pro forma adjustments - income from prior ownership of acquired hotels (6) | — | — | — | 129,027 | |||||||||||
Pro forma Consolidated Hotel EBITDA | 123,430 | 135,701 | 541,671 | 570,231 | |||||||||||
Pro forma adjustments - income from non-comparable hotels | — | — | — | — | |||||||||||
Pro forma Hotel EBITDA | $ | 123,430 | $ | 135,701 | $ | 541,671 | $ | 570,231 | |||||||
Note:
(1) Interest expense is net of interest income, excluding amounts attributable to investment in loans of $1.4 million for the year ended December 31, 2017.
(2) Includes our ownership interest of the interest, depreciation, and amortization expense of the unconsolidated joint ventures.
(3) Represents income and expenses outside of the normal course of operations, including debt modification costs, debt extinguishment costs, hurricane-related costs that were not reimbursed by insurance, executive transition costs, receipts of prior year employee tax credits, and activist shareholder costs.
(4) Excludes amortization of share-based compensation and activist shareholder costs.
(5) Other corporate adjustments include property-level adjustments and certain revenues and expenses at corporate entities. These items include interest income, amortization of deferred management fees, key money amortization, ground rent amortization, legal fees, revenues and expenses associated with non-hotel properties, income (loss) from unconsolidated entities, internal lease rent expense, and other items.
(6) 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.
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, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Total revenue | $ | 399,898 | $ | 462,490 | $ | 1,761,224 | $ | 1,356,261 | |||||||
Pro forma adjustments - Revenue from sold hotels | (4,111 | ) | (56,068 | ) | (105,121 | ) | (79,897 | ) | |||||||
Pro forma adjustments - Revenue from prior ownership of acquired hotels (1) | — | — | — | 388,015 | |||||||||||
Other corporate adjustments / non-hotel revenue | (464 | ) | (502 | ) | (3,759 | ) | (1,052 | ) | |||||||
Pro forma Hotel Revenue | $ | 395,323 | $ | 405,920 | $ | 1,652,344 | $ | 1,663,327 | |||||||
Pro forma Hotel EBITDA | $ | 123,430 | $ | 135,701 | $ | 541,671 | $ | 570,231 | |||||||
Pro forma Hotel EBITDA Margin | 31.2 | % | 33.4 | % | 32.8 | % | 34.3 | % | |||||||
Note:
(1) 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.
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, 2018 (2) | |||
Secured Debt | ||||||||
Mortgage loan - 4 hotels | 3 | Oct 2021 | Floating (3) | 4.09% | $ | 150,000 | ||
Mortgage loan - 4 hotels | 2 | Mar 2022 | Floating (3) | 4.05% | 140,250 | |||
Mortgage loan - 1 hotel | 10 | Jun 2022 | Fixed | 5.25% | 31,423 | |||
Mortgage loan - 2 hotels | 10 | Oct 2022 | Fixed | 4.95% | 57,068 | |||
Mortgage loan - 1 hotel | 10 | Oct 2022 | Fixed | 4.95% | 32,803 | |||
Mortgage loan - 1 hotel | 10 | Oct 2022 | Fixed | 4.94% | 28,978 | |||
Mortgage loan - 5 hotels | 5 | Mar 2023 | Floating | 4.60% | 85,000 | |||
Weighted-Average / Secured Total | 4.43% | $ | 525,522 | |||||
Unsecured Debt | ||||||||
Revolver (4) | 4 | Apr 2021 | Floating | 4.00% | $ | — | ||
$400 Million Term Loan Maturing 2021 | 5 | Apr 2021 | Floating (3)(5) | 3.11% | 400,000 | |||
$150 Million Term Loan Maturing 2022 | 7 | Jan 2022 | Floating (3) | 3.08% | 150,000 | |||
$400 Million Term Loan Maturing 2021 | 5 | Jan 2023 | Floating (3)(5) | 3.22% | 400,000 | |||
$225 Million Term Loan Maturing 2023 | 5 | Jan 2023 | Floating (3) | 3.44% | 225,000 | |||
Senior Unsecured Notes | 10 | Jun 2025 | Fixed | 6.00% | 475,000 | |||
Weighted-Average / Unsecured Total | 4.01% | $ | 1,650,000 | |||||
Weighted-Average / Total Debt | 4.11% | $ | 2,175,522 | |||||
Note:
(1) Interest rates as of December 31, 2018.
(2) Excludes the impact of fair value adjustments and deferred financing costs.
(3) The floating interest rate is hedged with an interest rate swap.
(4) As of December 31, 2018, there was $600.0 million of borrowing capacity on the Revolver, which is charged an unused commitment fee of 0.30% annually.
(5) Reflects interest rate swap on $350.0 million.
14
RLJ Lodging Trust
Pro forma Operating Statistics — Top 60 Assets
(unaudited)
Property | City/State | # of Rooms | Pro forma Consolidated Hotel EBITDA |
The Knickerbocker New York | New York, NY | 330 | $13,025 |
Wyndham San Diego Bayside | San Diego, CA | 600 | 9,969 |
Marriott Louisville Downtown | Louisville, KY | 616 | 9,876 |
Wyndham Boston Beacon Hill | Boston, MA | 304 | 9,449 |
The Mills House Wyndham Grand Hotel | Charleston, SC | 216 | 8,882 |
Embassy Suites San Francisco Airport - Waterfront | Burlingame, CA | 340 | 8,703 |
San Francisco Marriott Union Square | San Francisco, CA | 401 | 8,490 |
Courtyard Austin Downtown Convention Center | Austin, TX | 270 | 8,191 |
Embassy Suites Fort Lauderdale 17th Street | Fort Lauderdale, FL | 361 | 8,113 |
Embassy Suites Los Angeles - International Airport South | El Segundo, CA | 349 | 8,073 |
Hilton Myrtle Beach Resort | Myrtle Beach, SC | 385 | 7,984 |
Embassy Suites Mandalay Beach - Hotel & Resort | Oxnard, CA | 250 | 7,861 |
DoubleTree Metropolitan Hotel New York City | New York, NY | 764 | 7,850 |
Wyndham New Orleans - French Quarter | New Orleans, LA | 374 | 7,840 |
Courtyard Portland City Center | Portland, OR | 256 | 7,729 |
DoubleTree Grand Key Resort | Key West, FL | 216 | 7,372 |
Courtyard Chicago Downtown Magnificent Mile | Chicago, IL | 306 | 7,274 |
Residence Inn Palo Alto Los Altos | Los Altos, CA | 156 | 7,187 |
Embassy Suites Myrtle Beach - Oceanfront Resort | Myrtle Beach, SC | 255 | 7,117 |
Courtyard San Francisco | San Francisco, CA | 166 | 7,062 |
Renaissance Pittsburgh Hotel | Pittsburgh, PA | 300 | 6,623 |
Hilton Garden Inn San Francisco Oakland Bay Brg | Emeryville, CA | 278 | 6,549 |
Embassy Suites Deerfield Beach - Resort & Spa | Deerfield Beach, FL | 244 | 6,508 |
Embassy Suites San Francisco Airport - South San Francisco | South San Francisco, CA | 312 | 6,405 |
Wyndham Philadelphia Historic District | Philadelphia, PA | 364 | 6,315 |
Wyndham Santa Monica At the Pier | Santa Monica, CA | 132 | 6,235 |
Courtyard Waikiki Beach | Honolulu, HI | 403 | 6,204 |
Hyatt House Emeryville San Francisco Bay Area | Emeryville, CA | 234 | 6,168 |
Embassy Suites Tampa Downtown Convention Center | Tampa, FL | 360 | 6,152 |
Fairfield Inn & Suites Washington DC Downtown | Washington, DC | 198 | 6,127 |
Hyatt House San Jose Silicon Valley | San Jose, CA | 164 | 5,999 |
Hyatt House Santa Clara | Santa Clara, CA | 150 | 5,972 |
Marriott Denver South @ Park Meadows | Lone Tree, CO | 279 | 5,695 |
Hilton Cabana Miami Beach | Miami Beach, FL | 231 | 5,461 |
Embassy Suites Boston Waltham | Waltham, MA | 275 | 5,425 |
Wyndham Houston - Medical Center Hotel & Suites | Houston, TX | 287 | 5,380 |
Embassy Suites Atlanta - Buckhead | Atlanta, GA | 316 | 5,318 |
Renaissance Fort Lauderdale Plantation Hotel | Plantation, FL | 250 | 5,240 |
Residence Inn Bethesda Downtown | Bethesda, MD | 188 | 5,206 |
Hyatt House San Diego Sorrento Mesa | San Diego, CA | 193 | 5,072 |
DoubleTree Suites by Hilton Austin | Austin, TX | 188 | 5,042 |
Courtyard Charleston Historic District | Charleston, SC | 176 | 5,027 |
Residence Inn Austin Downtown Convention Center | Austin, TX | 179 | 4,907 |
Hilton Garden Inn Los Angeles Hollywood | Los Angeles, CA | 160 | 4,784 |
Embassy Suites Irvine Orange County | Irvine, CA | 293 | 4,600 |
Embassy Suites Orlando - International Drive South/Convention Center | Orlando, FL | 244 | 4,590 |
Homewood Suites Washington DC Downtown | Washington, DC | 175 | 4,521 |
Embassy Suites Los Angeles Downey | Downey, CA | 220 | 4,509 |
Embassy Suites Milpitas Silicon Valley | Milpitas, CA | 266 | 4,352 |
Hyatt Place Washington DC Downtown K Street | Washington, DC | 164 | 4,202 |
Embassy Suites Dallas - Love Field | Dallas, TX | 248 | 4,108 |
Renaissance Boulder Flatiron Hotel | Broomfield, CO | 232 | 4,106 |
Marriott Denver Airport @ Gateway Park | Aurora, CO | 238 | 4,017 |
Hyatt Place Fremont Silicon Valley | Fremont, CA | 151 | 3,960 |
Embassy Suites Miami - International Airport | Miami, FL | 318 | 3,898 |
Embassy Suites Phoenix - Biltmore | Phoenix, AZ | 232 | 3,762 |
Wyndham Pittsburgh University Center | Pittsburgh, PA | 251 | 3,718 |
Embassy Suites Minneapolis - Airport | Bloomington, MN | 310 | 3,711 |
Residence Inn National Harbor Washington DC | Oxon Hill, MD | 162 | 3,648 |
Hilton Garden Inn New Orleans Convention Center | New Orleans, LA | 286 | 3,448 |
Top 60 Assets | 16,566 | 371,011 | |
Other (90 Assets) | 12,031 | 170,660 | |
Total Portfolio | 28,597 | $541,671 | |
Note: For the trailing twelve months ended December 31, 2018. Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an unconsolidated hotel. Amounts in thousands, except rooms. The information has not been audited and is presented only for comparison purposes.
15
RLJ Lodging Trust
Pro forma Operating Statistics
(unaudited)
For the three months ended December 31, 2018 and 2017
Top Markets | # of Hotels | Occupancy | ADR | RevPAR | ||||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | ||||||||||||||||||||
Northern California | 12 | 80.4 | % | 81.3 | % | (1.1 | )% | $ | 222.84 | $ | 219.87 | 1.3 | % | $ | 179.22 | $ | 178.74 | 0.3 | % | |||||||||
South Florida | 13 | 82.1 | % | 85.6 | % | (4.0 | )% | 160.57 | 165.24 | (2.8 | )% | 131.88 | 141.43 | (6.8 | )% | |||||||||||||
Southern California | 9 | 78.0 | % | 82.0 | % | (4.9 | )% | 171.55 | 166.03 | 3.3 | % | 133.81 | 136.12 | (1.7 | )% | |||||||||||||
Austin | 14 | 71.6 | % | 75.8 | % | (5.5 | )% | 159.44 | 163.22 | (2.3 | )% | 114.08 | 123.64 | (7.7 | )% | |||||||||||||
Denver | 13 | 65.3 | % | 68.9 | % | (5.2 | )% | 128.03 | 133.46 | (4.1 | )% | 83.54 | 91.90 | (9.1 | )% | |||||||||||||
New York City | 5 | 92.1 | % | 92.6 | % | (0.5 | )% | 274.52 | 264.74 | 3.7 | % | 252.92 | 245.05 | 3.2 | % | |||||||||||||
Washington, DC | 7 | 76.1 | % | 78.3 | % | (2.8 | )% | 184.80 | 186.01 | (0.7 | )% | 140.61 | 145.64 | (3.5 | )% | |||||||||||||
Chicago | 14 | 68.8 | % | 65.7 | % | 4.7 | % | 135.82 | 139.06 | (2.3 | )% | 93.40 | 91.32 | 2.3 | % | |||||||||||||
Houston | 11 | 66.7 | % | 74.4 | % | (10.4 | )% | 134.64 | 143.09 | (5.9 | )% | 89.75 | 106.47 | (15.7 | )% | |||||||||||||
Louisville | 5 | 58.1 | % | 67.8 | % | (14.3 | )% | 141.73 | 148.97 | (4.9 | )% | 82.33 | 101.00 | (18.5 | )% | |||||||||||||
Other | 47 | 71.2 | % | 72.6 | % | (2.0 | )% | 156.26 | 154.85 | 0.9 | % | 111.19 | 112.43 | (1.1 | )% | |||||||||||||
Total | 150 | 73.7 | % | 76.2 | % | (3.2 | )% | $ | 170.71 | $ | 170.32 | 0.2 | % | $ | 125.86 | $ | 129.77 | (3.0 | )% | |||||||||
Service Level | # of Hotels | Occupancy | ADR | RevPAR | ||||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | ||||||||||||||||||||
Focused-Service | 102 | 72.6 | % | 75.0 | % | (3.2 | )% | $ | 155.50 | $ | 157.01 | (1.0 | )% | $ | 112.88 | $ | 117.80 | (4.2 | )% | |||||||||
Compact Full-Service | 45 | 77.1 | % | 79.4 | % | (2.9 | )% | 189.24 | 186.89 | 1.3 | % | 145.89 | 148.45 | (1.7 | )% | |||||||||||||
Full-Service | 3 | 53.2 | % | 57.2 | % | (7.1 | )% | 142.98 | 142.85 | 0.1 | % | 76.00 | 81.75 | (7.0 | )% | |||||||||||||
Total | 150 | 73.7 | % | 76.2 | % | (3.2 | )% | $ | 170.71 | $ | 170.32 | 0.2 | % | $ | 125.86 | $ | 129.77 | (3.0 | )% | |||||||||
Chain Scale | # of Hotels | Occupancy | ADR | RevPAR | ||||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | ||||||||||||||||||||
Upper Upscale | 37 | 72.1 | % | 75.8 | % | (4.8 | )% | $ | 173.15 | $ | 171.72 | 0.8 | % | $ | 124.84 | $ | 130.10 | (4.0 | )% | |||||||||
Upscale | 96 | 74.7 | % | 76.7 | % | (2.7 | )% | 166.88 | 167.61 | (0.4 | )% | 124.58 | 128.53 | (3.1 | )% | |||||||||||||
Upper Midscale | 15 | 71.4 | % | 72.0 | % | (0.9 | )% | 138.05 | 141.87 | (2.7 | )% | 98.56 | 102.18 | (3.5 | )% | |||||||||||||
Other | 2 | 86.3 | % | 85.1 | % | 1.4 | % | 356.93 | 330.57 | 8.0 | % | 308.12 | 281.45 | 9.5 | % | |||||||||||||
Total | 150 | 73.7 | % | 76.2 | % | (3.2 | )% | $ | 170.71 | $ | 170.32 | 0.2 | % | $ | 125.86 | $ | 129.77 | (3.0 | )% | |||||||||
Flags | # of Hotels | Occupancy | ADR | RevPAR | ||||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | ||||||||||||||||||||
Residence Inn | 29 | 73.4 | % | 78.1 | % | (6.1 | )% | $ | 146.46 | $ | 149.53 | (2.1 | )% | $ | 107.44 | $ | 116.82 | (8.0 | )% | |||||||||
Courtyard | 24 | 72.8 | % | 75.2 | % | (3.1 | )% | 165.38 | 165.53 | (0.1 | )% | 120.46 | 124.41 | (3.2 | )% | |||||||||||||
Embassy Suites | 22 | 76.0 | % | 81.0 | % | (6.2 | )% | 168.42 | 165.45 | 1.8 | % | 127.95 | 134.02 | (4.5 | )% | |||||||||||||
Hyatt House | 11 | 79.5 | % | 79.4 | % | 0.1 | % | 173.61 | 174.14 | (0.3 | )% | 137.95 | 138.25 | (0.2 | )% | |||||||||||||
Hilton Garden Inn | 8 | 73.0 | % | 72.9 | % | 0.0 | % | 159.40 | 159.96 | (0.3 | )% | 116.30 | 116.68 | (0.3 | )% | |||||||||||||
SpringHill Suites | 8 | 59.6 | % | 67.9 | % | (12.1 | )% | 122.93 | 127.09 | (3.3 | )% | 73.31 | 86.27 | (15.0 | )% | |||||||||||||
Wyndham | 8 | 75.9 | % | 74.8 | % | 1.5 | % | 169.58 | 170.32 | (0.4 | )% | 128.74 | 127.38 | 1.1 | % | |||||||||||||
Fairfield Inn & Suites | 7 | 73.3 | % | 74.2 | % | (1.3 | )% | 148.15 | 150.82 | (1.8 | )% | 108.61 | 111.97 | (3.0 | )% | |||||||||||||
Hampton Inn | 7 | 71.1 | % | 73.1 | % | (2.6 | )% | 128.30 | 132.14 | (2.9 | )% | 91.28 | 96.54 | (5.4 | )% | |||||||||||||
Marriott | 6 | 63.3 | % | 67.3 | % | (6.0 | )% | 188.76 | 189.71 | (0.5 | )% | 119.46 | 127.75 | (6.5 | )% | |||||||||||||
DoubleTree | 4 | 90.1 | % | 90.2 | % | (0.1 | )% | 232.08 | 232.38 | (0.1 | )% | 209.16 | 209.64 | (0.2 | )% | |||||||||||||
Renaissance | 3 | 73.3 | % | 74.0 | % | (0.9 | )% | 167.74 | 171.72 | (2.3 | )% | 122.98 | 127.10 | (3.2 | )% | |||||||||||||
Hyatt Place | 3 | 71.5 | % | 77.7 | % | (8.0 | )% | 184.54 | 183.29 | 0.7 | % | 131.96 | 142.44 | (7.4 | )% | |||||||||||||
Homewood Suites | 2 | 73.0 | % | 70.2 | % | 4.0 | % | 167.83 | 171.41 | (2.1 | )% | 122.52 | 120.36 | 1.8 | % | |||||||||||||
Hilton | 2 | 56.6 | % | 54.4 | % | 3.9 | % | 148.25 | 151.25 | (2.0 | )% | 83.85 | 82.34 | 1.8 | % | |||||||||||||
Hyatt | 2 | 74.7 | % | 75.4 | % | (0.9 | )% | 196.16 | 191.01 | 2.7 | % | 146.48 | 143.93 | 1.8 | % | |||||||||||||
Other | 4 | 79.1 | % | 74.8 | % | 5.7 | % | 299.28 | 289.35 | 3.4 | % | 236.75 | 216.51 | 9.3 | % | |||||||||||||
Total | 150 | 73.7 | % | 76.2 | % | (3.2 | )% | $ | 170.71 | $ | 170.32 | 0.2 | % | $ | 125.86 | $ | 129.77 | (3.0 | )% | |||||||||
Note: Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an unconsolidated hotel. The information has not been audited and is presented only for comparison purposes.
16
RLJ Lodging Trust
Pro forma Operating Statistics
(unaudited)
For the year ended December 31, 2018 and 2017
Top Markets | # of Hotels | Occupancy | ADR | RevPAR | ||||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | ||||||||||||||||||||
Northern California | 12 | 83.3 | % | 84.6 | % | (1.5 | )% | $ | 229.81 | $ | 223.95 | 2.6 | % | $ | 191.52 | $ | 189.40 | 1.1 | % | |||||||||
South Florida | 13 | 85.4 | % | 83.9 | % | 1.8 | % | 169.87 | 168.26 | 1.0 | % | 145.11 | 141.23 | 2.7 | % | |||||||||||||
Southern California | 9 | 84.3 | % | 85.6 | % | (1.5 | )% | 180.10 | 178.81 | 0.7 | % | 151.84 | 152.99 | (0.8 | )% | |||||||||||||
Austin | 14 | 74.1 | % | 77.1 | % | (3.9 | )% | 161.52 | 165.83 | (2.6 | )% | 119.75 | 127.92 | (6.4 | )% | |||||||||||||
Denver | 13 | 74.0 | % | 76.2 | % | (2.8 | )% | 138.32 | 140.57 | (1.6 | )% | 102.41 | 107.09 | (4.4 | )% | |||||||||||||
New York City | 5 | 90.1 | % | 89.2 | % | 0.9 | % | 235.99 | 231.51 | 1.9 | % | 212.52 | 206.57 | 2.9 | % | |||||||||||||
Washington, DC | 7 | 81.0 | % | 79.9 | % | 1.4 | % | 189.63 | 195.13 | (2.8 | )% | 153.64 | 155.89 | (1.4 | )% | |||||||||||||
Chicago | 14 | 71.4 | % | 68.0 | % | 5.1 | % | 142.08 | 142.42 | (0.2 | )% | 101.50 | 96.83 | 4.8 | % | |||||||||||||
Houston | 11 | 69.9 | % | 71.5 | % | (2.2 | )% | 139.38 | 145.44 | (4.2 | )% | 97.49 | 104.06 | (6.3 | )% | |||||||||||||
Louisville | 5 | 60.7 | % | 68.3 | % | (11.1 | )% | 151.07 | 157.25 | (3.9 | )% | 91.65 | 107.36 | (14.6 | )% | |||||||||||||
Other | 47 | 75.9 | % | 76.6 | % | (1.0 | )% | 160.39 | 159.75 | 0.4 | % | 121.69 | 122.36 | (0.5 | )% | |||||||||||||
Total | 150 | 77.7 | % | 78.4 | % | (0.9 | )% | $ | 172.83 | $ | 172.54 | 0.2 | % | $ | 134.27 | $ | 135.31 | (0.8 | )% | |||||||||
Service Level | # of Hotels | Occupancy | ADR | RevPAR | ||||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | ||||||||||||||||||||
Focused-Service | 102 | 76.7 | % | 77.2 | % | (0.6 | )% | $ | 159.49 | $ | 160.55 | (0.7 | )% | $ | 122.41 | $ | 123.92 | (1.2 | )% | |||||||||
Compact Full-Service | 45 | 80.5 | % | 81.2 | % | (0.8 | )% | 187.63 | 185.72 | 1.0 | % | 151.13 | 150.85 | 0.2 | % | |||||||||||||
Full-Service | 3 | 59.9 | % | 64.6 | % | (7.3 | )% | 172.31 | 173.37 | (0.6 | )% | 103.16 | 111.99 | (7.9 | )% | |||||||||||||
Total | 150 | 77.7 | % | 78.4 | % | (0.9 | )% | $ | 172.83 | $ | 172.54 | 0.2 | % | $ | 134.27 | $ | 135.31 | (0.8 | )% | |||||||||
Chain Scale | # of Hotels | Occupancy | ADR | RevPAR | ||||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | ||||||||||||||||||||
Upper Upscale | 37 | 76.6 | % | 78.2 | % | (2.0 | )% | $ | 180.87 | $ | 178.94 | 1.1 | % | $ | 138.55 | $ | 139.87 | (0.9 | )% | |||||||||
Upscale | 96 | 78.5 | % | 79.0 | % | (0.7 | )% | 167.44 | 167.87 | (0.3 | )% | 131.47 | 132.68 | (0.9 | )% | |||||||||||||
Upper Midscale | 15 | 75.5 | % | 74.1 | % | 1.9 | % | 145.93 | 150.74 | (3.2 | )% | 110.12 | 111.63 | (1.4 | )% | |||||||||||||
Other | 2 | 81.0 | % | 79.9 | % | 1.4 | % | 296.90 | 284.48 | 4.4 | % | 240.35 | 227.18 | 5.8 | % | |||||||||||||
Total | 150 | 77.7 | % | 78.4 | % | (0.9 | )% | $ | 172.83 | $ | 172.54 | 0.2 | % | $ | 134.27 | $ | 135.31 | (0.8 | )% | |||||||||
Flags | # of Hotels | Occupancy | ADR | RevPAR | ||||||||||||||||||||||||
2018 | 2017 | Var | 2018 | 2017 | Var | 2018 | 2017 | Var | ||||||||||||||||||||
Residence Inn | 29 | 78.1 | % | 79.1 | % | (1.4 | )% | $ | 151.09 | $ | 153.33 | (1.5 | )% | $ | 117.93 | $ | 121.35 | (2.8 | )% | |||||||||
Courtyard | 24 | 76.9 | % | 78.0 | % | (1.4 | )% | 167.45 | 167.72 | (0.2 | )% | 128.78 | 130.83 | (1.6 | )% | |||||||||||||
Embassy Suites | 22 | 80.1 | % | 81.7 | % | (2.0 | )% | 176.57 | 174.29 | 1.3 | % | 141.37 | 142.39 | (0.7 | )% | |||||||||||||
Hyatt House | 11 | 82.0 | % | 81.5 | % | 0.7 | % | 177.52 | 175.02 | 1.4 | % | 145.62 | 142.60 | 2.1 | % | |||||||||||||
Hilton Garden Inn | 8 | 76.2 | % | 74.1 | % | 2.7 | % | 162.19 | 160.96 | 0.8 | % | 123.51 | 119.31 | 3.5 | % | |||||||||||||
SpringHill Suites | 8 | 66.7 | % | 70.6 | % | (5.6 | )% | 127.32 | 131.98 | (3.5 | )% | 84.93 | 93.23 | (8.9 | )% | |||||||||||||
Wyndham | 8 | 79.4 | % | 78.5 | % | 1.0 | % | 172.78 | 174.18 | (0.8 | )% | 137.11 | 136.78 | 0.2 | % | |||||||||||||
Fairfield Inn & Suites | 7 | 76.9 | % | 76.1 | % | 1.1 | % | 153.48 | 161.60 | (5.0 | )% | 118.08 | 122.97 | (4.0 | )% | |||||||||||||
Hampton Inn | 7 | 76.1 | % | 74.9 | % | 1.7 | % | 138.44 | 139.78 | (1.0 | )% | 105.39 | 104.67 | 0.7 | % | |||||||||||||
Marriott | 6 | 67.9 | % | 71.8 | % | (5.4 | )% | 195.80 | 195.29 | 0.3 | % | 132.94 | 140.14 | (5.1 | )% | |||||||||||||
DoubleTree | 4 | 90.2 | % | 91.0 | % | (0.9 | )% | 210.81 | 209.24 | 0.7 | % | 190.07 | 190.41 | (0.2 | )% | |||||||||||||
Renaissance | 3 | 77.3 | % | 76.3 | % | 1.4 | % | 169.02 | 166.90 | 1.3 | % | 130.68 | 127.30 | 2.7 | % | |||||||||||||
Hyatt Place | 3 | 79.2 | % | 81.9 | % | (3.3 | )% | 187.13 | 184.45 | 1.5 | % | 148.17 | 151.10 | (1.9 | )% | |||||||||||||
Homewood Suites | 2 | 77.5 | % | 77.8 | % | (0.5 | )% | 178.27 | 184.19 | (3.2 | )% | 138.11 | 143.35 | (3.7 | )% | |||||||||||||
Hilton | 2 | 68.6 | % | 67.9 | % | 1.1 | % | 172.10 | 170.27 | 1.1 | % | 118.06 | 115.54 | 2.2 | % | |||||||||||||
Hyatt | 2 | 79.0 | % | 78.3 | % | 0.9 | % | 195.81 | 187.94 | 4.2 | % | 154.78 | 147.17 | 5.2 | % | |||||||||||||
Other | 4 | 74.8 | % | 72.5 | % | 3.2 | % | 256.83 | 251.29 | 2.2 | % | 192.21 | 182.27 | 5.5 | % | |||||||||||||
Total | 150 | 77.7 | % | 78.4 | % | (0.9 | )% | $ | 172.83 | $ | 172.54 | 0.2 | % | $ | 134.27 | $ | 135.31 | (0.8 | )% | |||||||||
Note: Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an unconsolidated hotel. The information above includes results for periods prior to the Company's ownership. Wyndham hotels reclassified to Upscale to conform with Smith Travel Research chain scale definitions. The information has not been audited and is presented only for comparison purposes.
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