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): August 6, 2013

 

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 August 6, 2013, RLJ Lodging Trust (the “Company”) issued a press release announcing its financial results for the three and six months ended June 30, 2013.  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 August 6, 2013, issued by RLJ Lodging Trust, providing financial results for the three and six months ended June 30, 2013.

 

2



 

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

 

 

Date: August 6, 2013

By:

/s/ Thomas J. Baltimore, Jr.

 

 

Thomas J. Baltimore, Jr.

 

 

President, Chief Executive Officer and Trustee

 

3



 

EXHIBIT LIST

 

Exhibit
Number

 

Description

99.1

 

Press release dated August 6, 2013, issued by RLJ Lodging Trust, providing financial results for the three and six months ended June 30, 2013.

 

4


Exhibit 99.1

 

 

Press Release

 

RLJ Lodging Trust Reports Second Quarter 2013 Results

- Second quarter Pro forma RevPAR increased 8.7%

- Second quarter Pro forma Hotel EBITDA Margin increased 124 basis points

 

Bethesda, MD, August 6, 2013 – RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three and six months ended June 30, 2013.

 

Second Quarter Highlights

 

·                  Pro forma RevPAR increased 8.7%, Pro forma ADR increased 6.3% and Pro forma Occupancy increased 2.3%

·                  Pro forma Hotel EBITDA Margin increased 124 basis points to 37.5%

·                  Pro forma Consolidated Hotel EBITDA increased 12.6% to $99.5 million

·                  Adjusted FFO increased 34.1% to $74.8 million

·                  Acquired two hotels for a total investment of $104.8 million in key gateway markets

·                  Declared a cash dividend of $0.205 per share for the quarter

 

“Our industry-leading results this quarter once again demonstrate the strength of our well-diversified portfolio and effective asset management,” commented Thomas J. Baltimore, Jr., President and Chief Executive Officer. “We remain committed to maximizing shareholder value through selective acquisitions in high-barrier markets, value-add renovations, and conservative balance sheet management.  As the economy continues to improve, we believe that our various value-enhancing strategies will continue to position us to deliver outsized growth.”

 

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 non-comparable hotels that were not open for operation or closed for renovations for comparable periods. Explanations of EBITDA, Adjusted EBITDA, Hotel EBITDA, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included at the end of this release.

 

Pro forma RevPAR for the three months ended June 30, 2013, increased 8.7% over the comparable period in 2012, driven by an increase in Pro forma ADR of 6.3% and an increase in Pro forma Occupancy of 2.3%. Among the Company’s top six markets, the best performers in the quarter were Houston and Austin which experienced RevPAR growth of 14.8% and 14.3%, respectively. For the six months ended June 30, 2013, Pro forma RevPAR increased 9.8% over the comparable period in 2012, driven by an increase in Pro forma ADR of 6.6% and an increase in Pro forma Occupancy of 2.9%.

 

Pro forma Hotel EBITDA Margin for the three months ended June 30, 2013, increased 124 basis points over the comparable period in 2012 to 37.5%. For the six months ended June 30, 2013, Pro forma Hotel EBITDA Margin increased 134 basis points over the comparable period in 2012 to 34.8%.

 

1



 

Pro forma Consolidated Hotel EBITDA includes the results of non-comparable hotels. For the three months ended June 30, 2013, Pro forma Consolidated Hotel EBITDA increased $11.1 million to $99.5 million, representing a 12.6% increase over the comparable period in 2012. For the six months ended June 30, 2013, Pro forma Consolidated Hotel EBITDA increased $21.5 million to $171.1 million, representing a 14.4% increase over the comparable period in 2012.

 

Adjusted EBITDA for the three months ended June 30, 2013, increased $15.8 million to $92.1 million, representing a 20.8% increase over the comparable period in 2012. For the six months ended June 30, 2013, Adjusted EBITDA increased $28.0 million to $153.4 million, representing an increase of 22.4% over the comparable period in 2012.

 

Adjusted FFO for the three months ended June 30, 2013, increased $19.0 million to $74.8 million, representing a 34.1% increase over the comparable period in 2012. For the six months ended June 30, 2013, Adjusted FFO increased $34.5 million to $118.8 million, representing a 41.0% increase over the comparable period in 2012. Adjusted FFO per diluted share and unit for the three and six months ended June 30, 2013, was $0.61 and $1.03, respectively, based on the Company’s diluted weighted-average common shares and units outstanding of 123.2 million and 115.8 million for each period, respectively.

 

Net income attributable to common shareholders for the three months ended June 30, 2013, was $40.5 million, compared to $18.9 million in the comparable period in 2012. For the six months ended June 30, 2013, net income attributable to common shareholders was $49.0 million, compared to $12.4 million in the comparable period in 2012. The results for both the three and six months ended June 30, 2013, include a $2.4 million gain on extinguishment of debt related to the disposition of one hotel.

 

Net cash flow from operating activities for the six months ended June 30, 2013, totaled $99.7 million compared to $58.2 million for the comparable period in 2012.

 

Acquisitions/Dispositions

 

During the three months ended June 30, 2013, the Company acquired two assets in major gateway markets that exhibit attractive demand and supply fundamentals: the 399-room Courtyard by Marriott Waikiki Beach in Honolulu, HI, and the 150-room Vantaggio Suites Cosmo in San Francisco, CA.

 

On June 17, 2013, the Company acquired the long-term leasehold interest in the 399-room Courtyard by Marriott Waikiki Beach for a purchase price of $75.3 million, or approximately $189,000 per key. The purchase price represents a forward capitalization rate of approximately 7.8% based on the hotel’s projected 2014 net operating income.

 

On June 21, 2013, the Company acquired the 150-room Vantaggio Suites Cosmo in San Francisco, CA, for a purchase price of $29.5 million, or approximately $197,000 per key. The hotel is currently closed for an extensive $13.0 million multi-phase conversion to a Courtyard by Marriott, which is expected to be completed by the end of 2014. The total investment, including capital expenditures, will represent a forward capitalization rate of approximately 7.8% based on the hotel’s projected 2015 net operating income.

 

During the quarter, the Company also disposed of one hotel.  On May 30, 2013, the Company transferred title of the SpringHill Suites Southfield to its lenders pursuant to a deed in lieu of foreclosure, a process that the Company initiated over 18 months ago.  The Company removed the hotel’s net assets and liabilities from its combined

 

2



 

consolidated balance sheet and recorded a gain on extinguishment of debt of approximately $2.4 million to discontinued operations.

 

Balance Sheet and Capital Expenditures

 

As of June 30, 2013, the Company had $262.9 million of unrestricted cash on its balance sheet and $300.0 million available on its unsecured revolving credit facility. The Company had $1.4 billion of outstanding debt. The Company’s ratio of net debt to Adjusted EBITDA for the trailing twelve month period was 3.6 times.

 

In 2013, the Company plans to renovate 25 hotels for approximately $40.0 million to $45.0 million. The majority of these hotels are scheduled to be renovated in the fourth quarter.

 

Dividends

 

The Company’s Board of Trustees declared a cash dividend of $0.205 per common share of beneficial interest in the second quarter. The dividend was paid on July 15, 2013, to shareholders of record as of June 28, 2013.

 

2013 Outlook

 

Based on the Company’s recent acquisitions and second quarter performance, the Company is increasing its 2013 outlook. The outlook excludes potential future acquisitions and dispositions, which could result in a material change to the Company’s outlook. The 2013 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. Pro forma operating statistics include results for periods prior to the Company’s ownership and therefore assume the hotels were owned since January 1, 2012.  Pro forma Consolidated Hotel EBITDA includes approximately $5.9 million of prior ownership Hotel EBITDA from hotel acquisitions made in the first six months of 2013 that is not included in the Company’s corporate Adjusted EBITDA or Adjusted FFO. For the full year 2013, the Company anticipates:

 

 

 

Current Outlook

 

Prior Outlook

 

Pro forma RevPAR growth (1)

 

6.5% to 8.0%

 

6.0% to 8.0%

 

Pro forma Hotel EBITDA Margin (1)

 

34.0% to 35.0%

 

34.0% to 35.0%

 

Pro forma Consolidated Hotel EBITDA

 

$328.0M to $348.0M

 

$320.0M to $340.0M

 

Corporate Cash General and Administrative expenses

 

$23.5M to $24.5M

 

$23.5M to $24.5M

 

 


(1) Results exclude two non-comparable hotels, the Hotel Indigo New Orleans Garden District and the Vantaggio Suites Cosmo in San Francisco. The Hotel Indigo New Orleans Garden District was closed for most of 2012 due to a conversion upgrade. The Vantaggio Suites Cosmo is closed for conversion to a Courtyard by Marriott.

 

Earnings Call

 

The Company will conduct its quarterly analyst and investor conference call on August 7, 2013, at 10:00 a.m. (Eastern Time). The conference call can be accessed by dialing (877) 705-6003 or (201) 493-6725 for international participants and requesting RLJ Lodging Trust’s second quarter earnings conference call. Additionally, a live webcast of the conference call will be available through the Company’s website at http://rljlodgingtrust.com. A replay of the conference call webcast will be archived and available online through the Investor Relations section of the Company’s website.

 

3



 

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 149 properties, comprised of 147 hotels with approximately 22,300 rooms and two planned hotel conversions, located in 22 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,” “may” or similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and 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 urge investors to carefully review the disclosures the Company makes concerning risks and uncertainties in the sections entitled “Risk Factors,” “Forward-Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report, as well as risks, uncertainties and other factors discussed in other documents filed by the Company with the SEC.

 

###

 

Additional Contacts:

Leslie D. Hale, Chief Financial Officer, RLJ Lodging Trust – (301) 280-7774

For additional information or to receive press releases via email, please visit our website:

 

http://rljlodgingtrust.com

 

4



 

RLJ Lodging Trust

Non-GAAP Definitions

 

Non-Generally Accepted Accounting Principles (“GAAP”) Financial Measures

 

The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) Adjusted EBITDA, and (5) Hotel EBITDA. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as a measure of its operating performance.  FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, and Hotel EBITDA as calculated by the Company, may not be comparable to other companies that do not define such terms exactly as the Company.

 

Funds From Operations (“FFO”)

 

The Company calculates FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding gains or losses from sales of real estate, items classified by GAAP as extraordinary, 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 by excluding the effect of depreciation and amortization, gains or losses from sales for real estate, extraordinary items and the portion of items related to unconsolidated entities, all of which are based on historical cost accounting, and that FFO 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 units of limited partnership interest (“OP units”) in RLJ Lodging Trust, L.P., the Company’s operating partnership, because the OP units are redeemable for common shares of the Company. The Company believes it is meaningful for the investor to understand FFO attributable to all common shares and OP units.

 

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)

 

EBITDA is defined as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sales of assets; and (3) depreciation and amortization. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions. The Company presents EBITDA attributable to common shareholders, which includes OP units, because the OP units 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.

 

5



 

Hotel EBITDA

 

With respect to Hotel EBITDA, the Company believes that excluding the effect of corporate-level expenses, non-cash items, and the portion of these items related to unconsolidated entities, 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 operating the Company’s business on a property-level basis.

 

Pro forma Hotel EBITDA includes hotel results from prior ownership periods and excludes non-comparable hotels which were not open for operation or closed for renovations for comparable periods. Pro forma Consolidated Hotel EBITDA includes hotel results from prior ownership periods and includes the results of non-comparable hotels which were not open for operation or closed for renovations during the comparable periods.

 

Adjustments to FFO and EBITDA

 

The Company adjusts FFO and EBITDA for certain additional items, such as transaction and pursuit costs, the amortization of share-based compensation, and certain other expenses that the Company considers outside the normal course of business.  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, EBITDA and FFO, is beneficial to an investor’s understanding of its operating performance. The Company adjusts EBITDA and FFO for the following items, as applicable:

 

·                  Transaction and Pursuit Costs: The Company excludes transaction and pursuit costs expensed during the period because it believes they do not reflect the underlying performance of the Company.

·                  Non-Cash Expenses: The Company excludes the effect of certain non-cash items because it believes they do not reflect the underlying performance of the Company.  In 2013 and 2012, the Company excluded the amortization of share based compensation.  In 2013, the Company excluded a non-cash gain on the extinguishment of debt related to the disposition of one hotel.  In 2012, the Company excluded a non-cash loss on disposal of furniture, fixtures, and equipment associated with assets under renovation.

·                  Other Non-operational Expenses: The Company excludes the effect of certain non-operational expenses because it believes they do not reflect the underlying performance of the Company. In 2013 and 2012, the Company excluded legal expenses it considered outside the normal course of business.

 

6



 

RLJ Lodging Trust

Combined Consolidated Balance Sheets

(Amounts in thousands, except share and per share data)

 

 

 

June 30,

 

December 31,

 

 

 

2013

 

2012

 

 

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

Investment in hotel and other properties, net

 

$

3,221,671

 

$

3,073,483

 

Investment in loans

 

12,357

 

12,426

 

Cash and cash equivalents

 

262,897

 

115,861

 

Restricted cash reserves

 

65,088

 

64,787

 

Hotel and other receivables, net of allowance of $313 and $194, respectively

 

33,781

 

22,738

 

Deferred financing costs, net

 

9,619

 

11,131

 

Deferred income tax asset

 

2,381

 

2,206

 

Purchase deposits

 

7,233

 

9,910

 

Prepaid expense and other assets

 

38,822

 

33,843

 

Total Assets

 

$

3,653,849

 

$

3,346,385

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Borrowings under revolving credit facility

 

$

 

$

16,000

 

Mortgage loans

 

985,558

 

997,651

 

Term loans

 

400,000

 

400,000

 

Accounts payable and accrued expense

 

81,114

 

87,575

 

Deferred income tax liability

 

4,041

 

4,064

 

Advance deposits and deferred revenue

 

11,832

 

8,508

 

Accrued interest

 

2,093

 

2,284

 

Distributions payable

 

26,111

 

22,392

 

Total Liabilities

 

1,510,749

 

1,538,474

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized; zero shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively.

 

 

 

Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 122,735,453 and 106,565,516 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively.

 

1,227

 

1,066

 

Additional paid-in-capital

 

2,173,483

 

1,841,449

 

Accumulated other comprehensive income

 

4,527

 

 

Distributions in excess of net earnings

 

(54,409

)

(52,681

)

Total shareholders’ equity

 

2,124,828

 

1,789,834

 

 

 

 

 

 

 

Noncontrolling interest

 

 

 

 

 

Noncontrolling interest in joint venture

 

6,921

 

6,766

 

Noncontrolling interest in Operating Partnership

 

11,351

 

11,311

 

Total noncontrolling interest

 

18,272

 

18,077

 

Total equity

 

2,143,100

 

1,807,911

 

Total liabilities and equity

 

$

3,653,849

 

$

3,346,385

 

 

7



 

RLJ Lodging Trust

Combined Consolidated Statements of Operations

(Amounts in thousands, except share and per share data)
(Unaudited)

 

 

 

For the three months ended

 

For the six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenue

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

 

 

 

 

 

 

 

Room revenue

 

$

229,111

 

$

194,396

 

$

415,098

 

$

352,587

 

Food and beverage revenue

 

25,113

 

22,402

 

48,343

 

41,906

 

Other operating department revenue

 

7,351

 

6,003

 

13,569

 

11,105

 

Total revenue

 

261,575

 

222,801

 

477,010

 

405,598

 

Expense

 

 

 

 

 

 

 

 

 

Operating expense

 

 

 

 

 

 

 

 

 

Room expense

 

47,271

 

40,841

 

90,541

 

77,640

 

Food and beverage expense

 

17,246

 

15,508

 

33,823

 

29,948

 

Management fee expense

 

9,398

 

7,621

 

16,800

 

13,910

 

Other operating expense

 

73,384

 

64,961

 

140,083

 

123,332

 

Total property operating expense

 

147,299

 

128,931

 

281,247

 

244,830

 

Depreciation and amortization

 

31,910

 

31,428

 

63,321

 

65,099

 

Property tax, insurance and other

 

16,574

 

12,439

 

31,327

 

25,052

 

General and administrative

 

9,083

 

7,478

 

17,894

 

14,737

 

Transaction and pursuit costs

 

1,255

 

2,795

 

2,344

 

2,814

 

Total operating expense

 

206,121

 

183,071

 

396,133

 

352,532

 

Operating income

 

55,454

 

39,730

 

80,877

 

53,066

 

Other income

 

91

 

106

 

170

 

190

 

Interest income

 

240

 

418

 

536

 

837

 

Interest expense

 

(16,874

)

(20,373

)

(33,838

)

(40,484

)

Loss on disposal

 

 

(634

)

 

(634

)

Income before income tax expense

 

38,911

 

19,247

 

47,745

 

12,975

 

Income tax expense

 

(345

)

(281

)

(571

)

(875

)

Income from continuing operations

 

38,566

 

18,966

 

47,174

 

12,100

 

Income (loss) from discontinued operations

 

2,415

 

53

 

2,391

 

(2

)

Net income

 

40,981

 

19,019

 

49,565

 

12,098

 

Net (income) loss attributable to non-controlling interests

 

 

 

 

 

 

 

 

 

Noncontrolling interest in consolidated joint venture

 

(203

)

38

 

(155

)

408

 

Noncontrolling interest in common units of Operating Partnership

 

(268

)

(172

)

(407

)

(134

)

Net income attributable to common shareholders

 

$

40,510

 

$

18,885

 

$

49,003

 

$

12,372

 

Basic per common share data:

 

 

 

 

 

 

 

 

 

Net income per share attributable to common shareholders before discontinued operations

 

$

0.31

 

$

0.18

 

$

0.41

 

$

0.11

 

Discontinued operations

 

0.02

 

 

0.02

 

 

Net income per share attributable to common shareholders

 

$

0.33

 

$

0.18

 

$

0.43

 

$

0.11

 

Weighted-average number of common shares

 

121,520,253

 

105,388,743

 

114,208,435

 

105,360,778

 

 

 

 

 

 

 

 

 

 

 

Diluted per common share data:

 

 

 

 

 

 

 

 

 

Net income per share attributable to common shareholders before discontinued operations

 

$

0.31

 

$

0.18

 

$

0.41

 

$

0.11

 

Discontinued operations

 

0.02

 

 

0.02

 

 

Net income per share attributable to common shareholders

 

$

0.33

 

$

0.18

 

$

0.43

 

$

0.11

 

Weighted-average number of common shares

 

122,280,431

 

105,454,679

 

114,912,726

 

105,414,876

 

 

Note:

 

The Statement of Comprehensive Income and corresponding footnotes can be found in the Company’s Quarterly Report on Form 10-Q.

 

8



 

RLJ Lodging Trust

Reconciliation of Net Income to Non-GAAP Measures

(Amounts in thousands, except per share data)

(Unaudited)

 

Funds From Operations (FFO)

 

 

 

For the three months ended

 

For the six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Net income

 

$

40,981

 

$

19,019

 

$

49,565

 

$

12,098

 

Depreciation and amortization

 

31,910

 

31,428

 

63,321

 

65,099

 

Loss on disposal

 

 

634

 

 

634

 

Gain on extinguishment of indebtedness (1)

 

(2,425

)

 

(2,425

)

 

Noncontrolling interest in joint venture

 

(203

)

38

 

(155

)

408

 

Adjustments related to discontinued operations (2)

 

8

 

26

 

32

 

52

 

Adjustments related to joint venture (3)

 

(121

)

(113

)

(242

)

(211

)

FFO attributable to common shareholders

 

70,150

 

51,032

 

110,096

 

78,080

 

Transaction and pursuit costs

 

1,255

 

2,795

 

2,344

 

2,814

 

Amortization of share based compensation

 

3,334

 

1,754

 

6,348

 

3,213

 

Other expenses (4)

 

11

 

177

 

24

 

177

 

Adjusted FFO

 

$

74,750

 

$

55,758

 

$

118,812

 

$

84,284

 

 

 

 

 

 

 

 

 

 

 

Adjusted FFO per common share and unit-basic

 

$

0.61

 

$

0.52

 

$

1.03

 

$

0.79

 

Adjusted FFO per common share and unit-diluted

 

$

0.61

 

$

0.52

 

$

1.03

 

$

0.79

 

 

 

 

 

 

 

 

 

 

 

Basic weighted-average common shares and units outstanding (5)

 

122,414

 

106,283

 

115,102

 

106,255

 

Diluted weighted-average common shares and units outstanding (5)

 

123,174

 

106,349

 

115,807

 

106,309

 

 


Note:

(1)         Represents the gain on the transfer of title to the SpringHill Suites Southfield, Michigan, hotel to the lenders pursuant to a deed in lieu of foreclosure.  The gain is included in discontinued operations.

(2)         Includes depreciation and amortization expense from discontinued operations.

(3)         Includes depreciation and amortization expense allocated to the noncontrolling interest in the joint venture.

(4)         Includes less than $0.1 million for the three and six months ended June 30, 2013 and $0.2 million for the three and six months ended June 30, 2012, respectively, of legal expenses outside the normal course of operations.

(5)         Includes 0.9 million operating partnership units.

 

9



 

RLJ Lodging Trust

Reconciliation of Net Income to Non-GAAP Measures

(Amounts in thousands)

(Unaudited)

 

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

 

 

 

For the three months ended

 

For the six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Net income

 

$

40,981

 

$

19,019

 

$

49,565

 

$

12,098

 

Depreciation and amortization

 

31,910

 

31,428

 

63,321

 

65,099

 

Interest expense, net (1)

 

16,868

 

20,363

 

33,825

 

40,462

 

Income tax expense

 

345

 

281

 

571

 

875

 

Noncontrolling interest in joint venture

 

(203

)

38

 

(155

)

408

 

Adjustments related to discontinued operations (2)

 

101

 

27

 

195

 

123

 

Adjustments related to joint venture (3)

 

(121

)

(287

)

(242

)

(559

)

EBITDA

 

89,881

 

70,869

 

147,080

 

118,506

 

Transaction and pursuit costs

 

1,255

 

2,795

 

2,344

 

2,814

 

Gain on extinguishment of indebtedness (4)

 

(2,425

)

 

(2,425

)

 

Loss on disposal

 

 

634

 

 

634

 

Amortization of share based compensation

 

3,334

 

1,754

 

6,348

 

3,213

 

Other expenses (5)

 

11

 

177

 

24

 

177

 

Adjusted EBITDA

 

$

92,056

 

$

76,229

 

$

153,371

 

$

125,344

 

General and administrative (6)

 

5,749

 

5,724

 

11,546

 

11,524

 

Other income/interest income

 

(326

)

(515

)

(694

)

(1,006

)

Corporate overhead allocated to properties

 

213

 

75

 

309

 

280

 

Operating results from discontinued operations

 

(92

)

(79

)

(162

)

(122

)

Apartment income

 

(189

)

 

(232

)

 

Operating results from noncontrolling interest in joint venture

 

324

 

249

 

396

 

151

 

Pro forma adjustments (7)

 

1,514

 

6,513

 

5,927

 

12,875

 

Non-cash amortization (8)

 

299

 

238

 

597

 

486

 

Pro forma Consolidated Hotel EBITDA

 

99,548

 

88,434

 

171,058

 

149,532

 

Non-comparable hotels (9)

 

(258

)

96

 

(840

)

144

 

Pro forma Hotel EBITDA

 

$

99,290

 

$

88,530

 

$

170,218

 

$

149,676

 

 


Note:

(1)  Excludes amounts attributable to investment in loans of $0.2 million and $0.5 million for the three and six months ended June 30, 2013, respectively and $0.4 million and $0.8 million for the three and six months ended June 30, 2012, respectively.

(2)  Includes depreciation, amortization and interest expense from discontinued operations.

(3)  Includes depreciation, amortization and interest expense allocated to the noncontrolling interest in the joint venture.

(4)  Represents the gain on the transfer of title to the SpringHill Suites Southfield, Michigan, hotel to the lenders pursuant to a deed in lieu of foreclosure.  The gain is included in discontinued operations.

(5)  Includes less than $0.1 million for the three and six months ended June 30, 2013 and $0.2 million for the three and six months ended June 30, 2012, respectively, of legal expenses outside the normal course of operations.

(6)  General and administrative expenses exclude amortization of share based compensation, which is reflected in Adjusted EBITDA.

(7)  Reflects prior ownership results of recent acquisitions.

(8)  Non-cash amortization includes the amortization of deferred management and franchise fees.

(9)  Results primarily reflect the Hotel Indigo New Orleans Garden District which was closed most of 2012 due to a conversion upgrade.  It reopened in December 2012 and therefore the results have been excluded from 2013 and 2012.

 

10



 

RLJ Lodging Trust

Acquisitions

 

2013 Acquisitions

 

Location

 

Acquisition
Date

 

Management Company

 

Rooms

 

Purchase Price (1)
($ in millions)

 

% Interest

 

Courtyard Houston Downtown

 

Houston, TX

 

Mar 19, 2013

 

White Lodging Services

 

191

 

$

34.4

 

100

%

Residence Inn Houston Downtown

 

Houston, TX

 

Mar 19, 2013

 

White Lodging Services

 

171

 

29.5

 

100

%

Humble Tower Apartments (2)

 

Houston, TX

 

Mar 19, 2013

 

The Sterling Group

 

82

 

15.6

 

100

%

Courtyard Waikiki Beach

 

Honolulu, HI

 

Jun 17, 2013

 

Highgate Hotels

 

399

 

75.3

 

100

%

Vantaggio Suites Cosmo (3)

 

San Francisco, CA

 

Jun 21, 2013

 

N/A

 

150

 

29.5

 

100

%

Hilton Cabana Miami Beach (4)

 

Miami Beach, FL

 

N/A

 

N/A

 

N/A

 

71.6

 

100

%

Total Acquisitions

 

 

 

 

 

 

 

993

 

$

255.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012 Acquisitions

 

Location

 

Acquisition
Date

 

Management Company

 

Rooms

 

Purchase Price
($ in millions)

 

% Interest

 

Residence Inn Bethesda Downtown

 

Bethesda, MD

 

May 29, 2012

 

Marriott International

 

187

 

$

64.5

 

100

%

Courtyard New York Manhattan/Upper East Side

 

New York, NY

 

May 30, 2012

 

Highgate Hotels

 

226

 

82.0

 

100

%

Hilton Garden Inn San Francisco/Oakland Bay Bridge

 

Emeryville, CA

 

Jun 11, 2012

 

Davidson Hotels & Resorts

 

278

 

36.2

 

100

%

Embassy Suites Boston/Waltham

 

Waltham, MA

 

Nov 13, 2012

 

HEI Hotels and Resorts

 

275

 

64.5

 

100

%

Total Acquisitions

 

 

 

 

 

 

 

966

 

$

247.2

 

 

 

 


Note:

(1) Does not reflect credits received at closing.

(2) Conversion to a 166-room SpringHill Suites expected to be complete by mid-2015.

(3) This property is currently not open for operations.  Conversion to a 150-room Courtyard by Marriott expected to be complete by late 2014.

(4) On November 30, 2012, the Company signed a purchase and sale agreement to acquire upon completion the 231-room Hilton Cabana Miami Beach for a fixed purchase price of $71.6 million, or approximately $310,000 per key. The transaction is expected to close in the fourth quarter of 2013.  No management contract has been signed.

 

11



 

RLJ Lodging Trust

Pro forma Operating Statistics — Top 40 Assets

(Amounts in thousands, except rooms)

(Unaudited)

 

For the trailing twelve months ending June 30, 2013

 

Property

 

City/State

 

Rooms

 

Pro forma
Consolidated Hotel
EBITDA

 

DoubleTree Metropolitan

 

New York, NY

 

764

 

$

20,837

 

Marriott Louisville Downtown

 

Louisville, KY

 

616

 

14,221

 

Hilton New York Fashion District

 

New York, NY

 

280

 

11,869

 

Hilton Garden Inn New York

 

New York, NY

 

298

 

11,780

 

Courtyard Waikiki Beach (1)

 

Honolulu, HI

 

399

 

9,136

 

Courtyard Austin Downtown

 

Austin, TX

 

270

 

9,032

 

Courtyard Chicago Downtown Mag Mile

 

Chicago, IL

 

306

 

7,638

 

Fairfield Inn Washington DC

 

Washington, DC

 

198

 

6,174

 

Embassy Suites Tampa Downtown

 

Tampa, FL

 

360

 

5,902

 

Courtyard Upper East Side

 

New York, NY

 

226

 

5,717

 

Renaissance Pittsburgh

 

Pittsburgh, PA

 

300

 

5,314

 

Embassy Suites Waltham

 

Waltham, MA

 

275

 

5,218

 

Marriott Denver South @ Park Meadow

 

Littleton, CO

 

279

 

4,811

 

Residence Inn Bethesda

 

Bethesda, MD

 

187

 

4,738

 

Homewood Suites Washington DC

 

Washington, DC

 

175

 

4,643

 

Marriott Denver International Airport

 

Aurora, CO

 

238

 

4,513

 

Residence Inn Austin Downtown

 

Austin, TX

 

179

 

4,413

 

Courtyard Houston Galleria

 

Houston, TX

 

190

 

4,071

 

Hilton Garden Inn Emeryville

 

Emeryville, CA

 

278

 

4,041

 

Residence Inn National Harbor

 

Oxon Hill, MD

 

162

 

4,018

 

Hilton Garden Inn New Orleans Convention Center

 

New Orleans, LA

 

286

 

3,990

 

Hilton Garden Inn Los Angeles Hollywood

 

Hollywood, CA

 

160

 

3,887

 

Renaissance Plantation

 

Plantation, FL

 

250

 

3,661

 

Renaissance Boulder Suites @ Flatiron

 

Broomfield, CO

 

232

 

3,628

 

Embassy Suites Downey

 

Downey, CA

 

219

 

3,545

 

Courtyard Houston Downtown

 

Houston, TX

 

191

 

3,497

 

Hampton Inn Garden City

 

Garden City, NY

 

143

 

3,393

 

Courtyard Charleston Historic District

 

Charleston, SC

 

176

 

3,315

 

Marriott Airport Austin South

 

Austin, TX

 

211

 

3,110

 

Residence Inn Houston Downtown

 

Houston, TX

 

171

 

3,060

 

Residence Inn Galleria

 

Houston, TX

 

146

 

3,041

 

Residence Inn Oakbrook

 

Oak Brook, IL

 

156

 

2,994

 

Hilton Garden Inn Bloomington

 

Bloomington, IN

 

168

 

2,860

 

Hilton Garden Inn Pittsburgh

 

Pittsburgh, PA

 

202

 

2,791

 

Residence Inn Downtown Louisville

 

Louisville, KY

 

140

 

2,702

 

Fairfield Inn & Suites Key West

 

Key West, FL

 

106

 

2,613

 

Hyatt House Dallas Lincoln Park

 

Dallas, TX

 

155

 

2,413

 

Hampton Inn Houston Galleria

 

Houston, TX

 

176

 

2,294

 

Marriott Midway

 

Chicago, IL

 

200

 

2,281

 

Embassy Suites West Palm Beach

 

West Palm Beach, FL

 

194

 

1,986

 

 

 

 

 

 

 

 

 

Top 40 Assets

 

 

 

9,662

 

209,147

 

Other (2)

 

 

 

12,632

 

125,237

 

Total Portfolio

 

 

 

22,294

 

$

334,384

 

 


Note:

The information above has not been audited and is presented only for comparison purposes. Results reflect 100% of DoubleTree by Hilton Hotel Metropolitan New York City financial results, which have not been adjusted to reflect the 5% noncontrolling interest in the joint venture.

(1) The trailing twelve months for the Courtyard Waikiki Beach do not include ground lease payments for periods prior to the Company’s ownership. The Company entered into a ground lease upon acquisition, with an annual ground rent amount of $3.5 million through 2016 and subject to CPI increases thereafter.

(2) Does not include hotels in discontinued operations, the Humble Tower Apartments, and the Vantaggio Suites Cosmo in San Francisco.

 

12



 

RLJ Lodging Trust

Pro forma Operating Statistics

(Unaudited)

 

For the three months ending June 30, 2013

 

 

 

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Hotel
EBITDA

 

Top Markets

 

# of Hotels

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

Q2

 

NYC

 

5

 

97.7

%

90.0

%

8.5

%

$

260.98

 

$

253.33

 

3.0

%

$

254.86

 

$

228.08

 

11.7

%

16

%

Chicago

 

21

 

78.8

%

78.1

%

0.9

%

134.26

 

123.67

 

8.6

%

105.81

 

96.60

 

9.5

%

10

%

Austin

 

17

 

78.3

%

76.1

%

2.9

%

135.87

 

122.36

 

11.0

%

106.40

 

93.11

 

14.3

%

11

%

Denver

 

15

 

75.2

%

76.3

%

(1.4

)%

123.54

 

118.94

 

3.9

%

92.89

 

90.73

 

2.4

%

8

%

Houston

 

8

 

77.2

%

74.7

%

3.4

%

154.43

 

139.10

 

11.0

%

119.29

 

103.92

 

14.8

%

6

%

DC

 

7

 

81.6

%

84.3

%

(3.2

)%

185.57

 

172.39

 

7.6

%

151.37

 

145.31

 

4.2

%

8

%

Other

 

73

 

77.1

%

75.2

%

2.5

%

126.83

 

121.23

 

4.6

%

97.78

 

91.14

 

7.3

%

41

%

Total

 

146

 

79.1

%

77.3

%

2.3

%

$

145.69

 

$

137.07

 

6.3

%

$

115.21

 

$

105.98

 

8.7

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Hotel
EBITDA

 

Service Level

 

# of Hotels

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

Q2

 

Focused Service

 

125

 

78.5

%

77.4

%

1.4

%

$

135.90

 

$

127.17

 

6.9

%

$

106.65

 

$

98.40

 

8.4

%

69

%

Compact Full Service

 

20

 

81.4

%

77.8

%

4.6

%

169.26

 

162.13

 

4.4

%

137.74

 

126.15

 

9.2

%

26

%

Full Service

 

1

 

75.8

%

71.7

%

5.7

%

204.34

 

193.66

 

5.5

%

154.98

 

138.93

 

11.6

%

5

%

Total

 

146

 

79.1

%

77.3

%

2.3

%

$

145.69

 

$

137.07

 

6.3

%

$

115.21

 

$

105.98

 

8.7

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Hotel
EBITDA

 

Chain Scale

 

# of Hotels

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

Q2

 

Upper Upscale Chains

 

17

 

79.1

%

76.8

%

3.0

%

$

159.94

 

$

154.01

 

3.9

%

$

126.53

 

$

118.29

 

7.0

%

24

%

Upscale Chains

 

101

 

80.1

%

78.3

%

2.4

%

146.10

 

136.65

 

6.9

%

117.07

 

106.94

 

9.5

%

66

%

Upper Midscale Chains

 

27

 

73.7

%

73.4

%

0.4

%

124.70

 

116.23

 

7.3

%

91.86

 

85.26

 

7.7

%

10

%

Midscale Chains

 

1

 

89.1

%

85.1

%

4.8

%

68.72

 

68.49

 

0.3

%

61.25

 

58.27

 

5.1

%

0

%

Total

 

146

 

79.1

%

77.3

%

2.3

%

$

145.69

 

$

137.07

 

6.3

%

$

115.21

 

$

105.98

 

8.7

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Hotel
EBITDA

 

Flags

 

# of Hotels

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

Q2

 

Courtyard

 

36

 

77.7

%

74.9

%

3.8

%

$

142.06

 

$

132.56

 

7.2

%

$

110.42

 

$

99.29

 

11.2

%

23

%

Residence Inn

 

35

 

80.8

%

81.9

%

(1.3

)%

132.73

 

122.24

 

8.6

%

107.25

 

100.08

 

7.2

%

18

%

Fairfield Inn

 

14

 

73.6

%

76.4

%

(3.6

)%

127.06

 

116.10

 

9.4

%

93.57

 

88.66

 

5.5

%

5

%

Springhill Suites

 

10

 

75.3

%

74.0

%

1.8

%

107.44

 

103.43

 

3.9

%

80.94

 

76.56

 

5.7

%

4

%

Hilton Garden Inn

 

10

 

81.6

%

78.9

%

3.4

%

163.97

 

156.69

 

4.6

%

133.78

 

123.67

 

8.2

%

10

%

Hampton Inn

 

9

 

75.1

%

71.9

%

4.3

%

127.36

 

121.29

 

5.0

%

95.60

 

87.25

 

9.6

%

4

%

Marriott

 

6

 

76.6

%

72.8

%

5.1

%

159.03

 

148.68

 

7.0

%

121.74

 

108.27

 

12.4

%

11

%

Hyatt House

 

6

 

82.7

%

80.5

%

2.7

%

107.22

 

101.52

 

5.6

%

88.65

 

81.70

 

8.5

%

3

%

Embassy Suites

 

6

 

81.0

%

79.7

%

1.6

%

136.42

 

133.64

 

2.1

%

110.46

 

106.47

 

3.7

%

5

%

Renaissance

 

3

 

75.2

%

75.1

%

0.2

%

152.76

 

151.26

 

1.0

%

114.91

 

113.61

 

1.1

%

3

%

Doubletree

 

2

 

92.6

%

82.7

%

11.9

%

247.04

 

238.04

 

3.8

%

228.75

 

196.89

 

16.2

%

7

%

Homewood Suites

 

2

 

78.2

%

82.9

%

(5.7

)%

180.92

 

169.49

 

6.7

%

141.53

 

140.59

 

0.7

%

2

%

Hilton

 

2

 

90.1

%

86.7

%

3.9

%

238.09

 

233.27

 

2.1

%

214.57

 

202.34

 

6.0

%

4

%

Other

 

5

 

74.2

%

71.3

%

4.1

%

101.66

 

96.54

 

5.3

%

75.46

 

68.81

 

9.7

%

1

%

Total

 

146

 

79.1

%

77.3

%

2.3

%

$

145.69

 

$

137.07

 

6.3

%

$

115.21

 

$

105.98

 

8.7

%

100

%

 

Note:

 

The information above includes results for periods prior to RLJ’s ownership. The information has not been audited and is presented only for comparison purposes.  Results reflect 100% of DoubleTree by Hilton Hotel Metropolitan New York City financial results, which have not been adjusted to reflect the 5% noncontrolling interest in the joint venture. All results exclude hotels in discontinued operations, the Humble Tower Apartments, and two non-comparable hotels, the Hotel Indigo New Orleans Garden District and the Vantaggio Suites Cosmo in San Francisco. The Hotel Indigo New Orleans Garden District was closed for most of 2012 due to a conversion upgrade. The Vantaggio Suites Cosmo is closed for conversion to a Courtyard by Marriott.

 

13



 

RLJ Lodging Trust

Pro forma Operating Statistics

(Unaudited)

 

For the six months ending June 30, 2013

 

 

 

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Hotel
EBITDA

 

Top Markets

 

# of Hotels

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

YTD

 

NYC

 

5

 

96.4

%

79.5

%

21.3

%

$

224.42

 

$

222.28

 

1.0

%

$

216.40

 

$

176.64

 

22.5

%

13

%

Chicago

 

21

 

70.3

%

70.3

%

(0.0

)%

125.63

 

115.78

 

8.5

%

88.32

 

81.43

 

8.5

%

8

%

Austin

 

17

 

77.4

%

75.5

%

2.5

%

143.34

 

131.36

 

9.1

%

110.92

 

99.15

 

11.9

%

13

%

Denver

 

15

 

68.7

%

69.6

%

(1.3

)%

120.40

 

115.95

 

3.8

%

82.75

 

80.70

 

2.5

%

8

%

Houston

 

8

 

77.3

%

73.9

%

4.6

%

149.71

 

134.82

 

11.0

%

115.75

 

99.68

 

16.1

%

7

%

DC

 

7

 

71.8

%

72.7

%

(1.3

)%

177.38

 

168.93

 

5.0

%

127.34

 

122.82

 

3.7

%

7

%

Other

 

73

 

73.8

%

72.6

%

1.6

%

127.15

 

121.07

 

5.0

%

93.84

 

87.94

 

6.7

%

44

%

Total

 

146

 

75.1

%

73.0

%

2.9

%

$

141.46

 

$

132.66

 

6.6

%

$

106.24

 

$

96.79

 

9.8

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Hotel
EBITDA

 

Service Level

 

# of Hotels

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

YTD

 

Focused Service

 

125

 

74.2

%

73.4

%

1.0

%

$

133.53

 

$

124.50

 

7.3

%

$

99.02

 

$

91.41

 

8.3

%

71

%

Compact Full Service

 

20

 

78.6

%

72.0

%

9.2

%

160.93

 

154.45

 

4.2

%

126.53

 

111.16

 

13.8

%

24

%

Full Service

 

1

 

70.9

%

69.2

%

2.6

%

182.34

 

173.06

 

5.4

%

129.33

 

119.68

 

8.1

%

5

%

Total

 

146

 

75.1

%

73.0

%

2.9

%

$

141.46

 

$

132.66

 

6.6

%

$

106.24

 

$

96.79

 

9.8

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Hotel
EBITDA

 

Chain Scale

 

# of Hotels

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

YTD

 

Upper Upscale Chains

 

17

 

75.9

%

74.3

%

2.2

%

$

154.85

 

$

149.24

 

3.8

%

$

117.60

 

$

110.92

 

6.0

%

24

%

Upscale Chains

 

101

 

75.9

%

73.2

%

3.8

%

141.37

 

131.53

 

7.5

%

107.32

 

96.23

 

11.5

%

65

%

Upper Midscale Chains

 

27

 

69.7

%

69.5

%

0.3

%

124.01

 

115.57

 

7.3

%

86.45

 

80.29

 

7.7

%

11

%

Midscale Chains

 

1

 

82.3

%

86.3

%

(4.6

)%

64.95

 

63.33

 

2.6

%

53.44

 

54.62

 

(2.2

)%

0

%

Total

 

146

 

75.1

%

73.0

%

2.9

%

$

141.46

 

$

132.66

 

6.6

%

$

106.24

 

$

96.79

 

9.8

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy

 

ADR

 

RevPAR

 

% of Hotel
EBITDA

 

Flags

 

# of Hotels

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

2013

 

2012

 

Var

 

YTD

 

Courtyard

 

36

 

73.5

%

71.7

%

2.5

%

$

139.34

 

$

129.06

 

8.0

%

$

102.40

 

$

92.56

 

10.6

%

23

%

Residence Inn

 

35

 

75.7

%

76.2

%

(0.7

)%

131.07

 

122.62

 

6.9

%

99.23

 

93.48

 

6.2

%

18

%

Fairfield Inn

 

14

 

69.4

%

72.0

%

(3.7

)%

126.15

 

115.29

 

9.4

%

87.51

 

83.05

 

5.4

%

6

%

Springhill Suites

 

10

 

70.4

%

70.0

%

0.5

%

106.99

 

102.57

 

4.3

%

75.30

 

71.81

 

4.9

%

4

%

Hilton Garden Inn

 

10

 

77.5

%

75.0

%

3.3

%

158.33

 

147.61

 

7.3

%

122.70

 

110.75

 

10.8

%

10

%

Hampton Inn

 

9

 

71.8

%

68.7

%

4.4

%

126.62

 

119.17

 

6.3

%

90.86

 

81.92

 

10.9

%

4

%

Marriott

 

6

 

71.5

%

69.3

%

3.1

%

150.68

 

142.06

 

6.1

%

107.68

 

98.48

 

9.3

%

10

%

Hyatt House

 

6

 

80.7

%

78.2

%

3.1

%

106.92

 

100.97

 

5.9

%

86.26

 

78.97

 

9.2

%

3

%

Embassy Suites

 

6

 

79.6

%

78.7

%

1.1

%

143.94

 

139.95

 

2.9

%

114.51

 

110.15

 

4.0

%

7

%

Renaissance

 

3

 

74.4

%

72.7

%

2.3

%

147.76

 

148.98

 

(0.8

)%

109.90

 

108.31

 

1.5

%

4

%

Doubletree

 

2

 

90.4

%

61.9

%

46.1

%

213.21

 

219.20

 

(2.7

)%

192.69

 

135.60

 

42.1

%

5

%

Homewood Suites

 

2

 

76.6

%

79.6

%

(3.7

)%

171.36

 

162.99

 

5.1

%

131.31

 

129.76

 

1.2

%

2

%

Hilton

 

2

 

85.3

%

83.5

%

2.2

%

210.47

 

200.20

 

5.1

%

179.55

 

167.11

 

7.4

%

3

%

Other

 

5

 

69.3

%

68.2

%

1.6

%

100.86

 

97.06

 

3.9

%

69.88

 

66.17

 

5.6

%

1

%

Total

 

146

 

75.1

%

73.0

%

2.9

%

$

141.46

 

$

132.66

 

6.6

%

$

106.24

 

$

96.79

 

9.8

%

100

%

 

Note:

 

The information above includes results for periods prior to RLJ’s ownership. The information has not been audited and is presented only for comparison purposes.  Results reflect 100% of DoubleTree by Hilton Hotel Metropolitan New York City financial results, which have not been adjusted to reflect the 5% noncontrolling interest in the joint venture. All results exclude hotels in discontinued operations, the Humble Tower Apartments, and two non-comparable hotels, the Hotel Indigo New Orleans Garden District and the Vantaggio Suites Cosmo in San Francisco. The Hotel Indigo New Orleans Garden District was closed for most of 2012 due to a conversion upgrade. The Vantaggio Suites Cosmo is closed for conversion to a Courtyard by Marriott.

 

14