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): November 3, 2014
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 November 3, 2014, RLJ Lodging Trust (the “Company”) issued a press release announcing its financial results for the three and nine months ended September 30, 2014. 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 November 3, 2014, issued by RLJ Lodging Trust, providing financial results for the three and nine months ended September 30, 2014. | ||
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: November 3, 2014 | By: | /s/ Thomas J. Baltimore, Jr. |
Thomas J. Baltimore, Jr. | ||
President, Chief Executive Officer and Trustee | ||
EXHIBIT LIST
Exhibit Number | Description | ||
99.1 | Press release dated November 3, 2014, issued by RLJ Lodging Trust, providing financial results for the three and nine months ended September 30, 2014. | ||
Press Release
RLJ Lodging Trust Reports Third Quarter 2014 Results
- Pro forma RevPAR increased 9.6% and Pro forma Hotel EBITDA Margin expanded 201 bps
- Guidance raised across the board to reflect strong performance and acquisitions
Bethesda, MD, November 3, 2014 – RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three and nine months ended September 30, 2014.
Third Quarter Highlights
• | Pro forma RevPAR increased 9.6%, Pro forma ADR increased 4.6%, and Pro forma Occupancy increased 4.8% |
• | Pro forma Hotel EBITDA Margin increased 201 basis points to 36.8% |
• | Pro forma Consolidated Hotel EBITDA increased 16.0% to $109.4 million |
• | Adjusted FFO increased 34.2% to $87.4 million |
• | Acquired two hotels in attractive high-growth markets for more than $125 million |
• | Increased cash dividend by 36.4% to $0.30 per share for the quarter |
“Our results this quarter illustrate that our disciplined investment strategy and our focus on operational excellence continue to drive solid growth for our portfolio,” commented Thomas J. Baltimore, Jr., President and Chief Executive Officer. “With the completion of our recent financing, we further strengthened our balance sheet and increased our flexibility for future growth. Our strong results have allowed us to increase our dividend meaningfully and continue to deliver significant value to our shareholders.”
Financial and Operating Results
Performance metrics such as Occupancy, Average Daily Rate (“ADR”), Revenue Per Available Room (“RevPAR”), Hotel EBITDA, and Hotel EBITDA Margin are pro forma. The prefix “pro forma” as defined by the Company, denotes operating results which include results for periods prior to its ownership. Pro forma RevPAR and Pro forma Hotel EBITDA Margin are reported on a comparable basis and therefore exclude hotels sold during the period and non-comparable hotels that were not open for operation or 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 September 30, 2014, increased 9.6% over the comparable period in 2013, driven by a Pro forma ADR increase of 4.6% and a Pro forma Occupancy increase of 4.8%. Several of the Company’s top six markets achieved double digit RevPAR growth. Austin, Denver, Washington D.C., and Houston experienced RevPAR growth of 14.1%, 11.1%, 10.8%, and 10.4%, respectively. For the nine months ended September 30, 2014, Pro forma RevPAR increased 7.5% over the comparable period in 2013, driven by a Pro forma ADR increase of 3.7% and a Pro forma Occupancy increase of 3.7%.
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Pro forma Hotel EBITDA Margin for the three months ended September 30, 2014, increased 201 basis points over the comparable period in 2013 to 36.8%. For the nine months ended September 30, 2014, Pro forma Hotel EBITDA Margin increased 101 basis points over the comparable period in 2013 to 35.9%, adjusted to normalize 2013 ground rent at the Courtyard Waikiki Beach.
Pro forma Consolidated Hotel EBITDA includes the results of non-comparable hotels. For the three months ended September 30, 2014, Pro forma Consolidated Hotel EBITDA increased $15.1 million to $109.4 million, representing a 16.0% increase over the comparable period in 2013. For the nine months ended September 30, 2014, Pro forma Consolidated Hotel EBITDA increased $29.7 million to $307.9 million, representing a 10.7% increase over the comparable period in 2013, adjusted to normalize 2013 ground rent at the Courtyard Waikiki Beach.
Adjusted EBITDA for the three months ended September 30, 2014, increased $20.9 million to $101.6 million, representing a 25.8% increase over the comparable period in 2013. For the nine months ended September 30, 2014, Adjusted EBITDA increased $42.5 million to $276.7 million, representing an increase of 18.1% over the comparable period in 2013.
Adjusted FFO for the three months ended September 30, 2014, increased $22.3 million to $87.4 million, representing a 34.2% increase over the comparable period in 2013. For the nine months ended September 30, 2014, Adjusted FFO increased $50.6 million to $234.6 million, representing an increase of 27.5% over the comparable period in 2013.
Adjusted FFO per diluted share and unit for the three and nine months ended September 30, 2014, was $0.66 and $1.83, respectively, based on the Company’s diluted weighted-average common shares and units outstanding of 133.3 million and 128.2 million for each period, respectively.
Non-recurring items which are noteworthy for the three months ended September 30, 2014, include an impairment loss of $9.2 million related to certain hotels being marketed for sale.
Non-recurring items are included in net income attributable to common shareholders but have been excluded from Adjusted EBITDA and Adjusted FFO, as applicable. A complete listing is provided in the Non-GAAP reconciliation tables for the three and nine months ended September 30, 2014 and 2013.
Net income attributable to common shareholders for the three months ended September 30, 2014, was $36.8 million compared to $36.5 million for the comparable period in 2013. For the nine months ended September 30, 2014, net income attributable to common shareholders was $101.6 million, compared to $85.5 million for the comparable period in 2013.
Net cash flow from operating activities for the nine months ended September 30, 2014, totaled $224.1 million compared to $185.2 million for the comparable period in 2013.
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Acquisitions
During the three months ended September 30, 2014, the Company acquired two hotels in attractive high-growth markets: the 194-room Hyatt Atlanta Midtown in Atlanta, Georgia, and the 215-room DoubleTree Grand Key Resort in Key West, Florida.
On July 14, 2014, the Company acquired the 194-room Hyatt Atlanta Midtown in an off-market transaction for a total purchase price of $49.5 million, or approximately $255,000 per key. The Company expects that the purchase price will represent a forward capitalization rate of approximately 8.0% based on the hotel's projected 2015 net operating income.
On September 11, 2014, the Company acquired the 215-room DoubleTree Grand Key Resort in an off-market transaction for a purchase price of $77.0 million, or approximately $358,000 per key. The Company plans to spend an estimated $7.0 million on renovation upgrades in 2015. The Company expects that the purchase price and pending capital expenditures will represent a forward capitalization rate of approximately 8.0% based on the hotel's projected 2016 net operating income.
Balance Sheet
As of September 30, 2014, the Company had $274.4 million of unrestricted cash on its balance sheet, $300.0 million available on its revolving credit facility, and approximately $1.6 billion of debt outstanding. The Company’s ratio of net debt to Adjusted EBITDA for the trailing twelve month period ended September 30, 2014, was 3.5 times.
Dividends
The Company’s Board of Trustees declared a cash dividend of $0.30 per common share of beneficial interest. This dividend represents a 36.4% increase to the prior quarter's regular cash dividend. The dividend was paid on October 15, 2014, to shareholders of record as of September 30, 2014.
Subsequent Events
In October 2014, the Company originated four mortgage loans totaling $143.0 million and used the proceeds to retire five mortgage loans. The new mortgages bear a floating rate of LIBOR plus 225 basis points.
2014 Outlook
The Company’s outlook has been updated to reflect the portfolio's strong performance and recent acquisitions. The outlook excludes potential future acquisitions and dispositions, which could result in a material change to the Company’s outlook. The 2014 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.
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Pro forma operating statistics include results for periods prior to the Company’s ownership and therefore assume the hotels were owned since January 1, 2013. Pro forma Consolidated Hotel EBITDA includes approximately $12.2 million of prior ownership Hotel EBITDA for recently acquired hotels that is not included in the Company’s Adjusted EBITDA or Adjusted FFO. Pro forma guidance removes income from hotels that were sold.
For the full year 2014, the Company anticipates:
Current Outlook | Prior Outlook | |
Pro forma RevPAR growth (1) | 6.0% to 8.0% | 5.0% to 7.0% |
Pro forma Hotel EBITDA Margin (1) | 35.1% to 36.1% | 34.7% to 35.7% |
Pro forma Consolidated Hotel EBITDA | $390.0M to $410.0M | $380.0M to $400.0M |
(1) Excludes non-comparable hotels. Properties closed for renovations are considered non-comparable and therefore are excluded for periods in which they are closed.
Earnings Call
The Company will conduct its quarterly analyst and investor conference call on November 4, 2014, at 11:00 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 third quarter earnings conference call. Additionally, a live webcast of the conference call will be available through the Company’s website at http://rljlodgingtrust.com. A replay of the conference call webcast will be archived and available online through the Investor Relations section of the Company’s website.
About Us
RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust focused on acquiring premium-branded, focused-service and compact full-service hotels. The Company owns 150 properties, comprised of 148 hotels with more than 23,300 rooms and two planned hotel conversions, located in 21 states and the District of Columbia.
Forward Looking Statements
The following information contains certain statements, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the use of the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “will continue,” “intend,” “should,” “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
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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.
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Additional Contacts:
Leslie D. Hale, Chief Financial Officer, RLJ Lodging Trust – (301) 280-7774
For additional information or to receive press releases via email, please visit our website:
http://rljlodgingtrust.com
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RLJ Lodging Trust
Non-GAAP and Accounting Commentary
Non-Generally Accepted Accounting Principles (“GAAP”) Financial Measures
The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) Adjusted EBITDA, and (5) Hotel EBITDA. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as a measure of its operating performance. FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, and Hotel EBITDA as calculated by the Company, may not be comparable to other companies that do not define such terms exactly as the Company.
Funds From Operations (“FFO”)
The Company calculates FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding gains or losses from sales of real estate, impairment, 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 and can facilitate comparisons of operating performance between periods and between real estate investment trusts (“REITs”), even though FFO does not represent an amount that accrues directly to common shareholders.
The Company’s calculation of FFO may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. Additionally, FFO may not be helpful when comparing the Company to non-REITs. The Company presents FFO attributable to common shareholders, which includes unitholders of limited partnership interest (“OP units”) in RLJ Lodging Trust, L.P., the Company’s operating partnership, because the OP units are redeemable for common shares of the Company. The Company believes it is meaningful for the investor to understand FFO attributable to all common shares and OP units.
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)
EBITDA is defined as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sales of assets; and (3) depreciation and amortization. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions. The Company presents EBITDA attributable to common shareholders, which includes OP units, because the OP units
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are redeemable for common shares of the Company. The Company believes it is meaningful for the investor to understand EBITDA attributable to all common shares and OP units.
Hotel EBITDA
With respect to Hotel EBITDA, the Company believes that excluding the effect of corporate-level expenses and non-cash items provides a more complete understanding of the operating results over which individual hotels and operators have direct control. The Company believes property-level results provide investors with supplemental information about the ongoing operational performance of the Company’s hotels and the effectiveness of third-party management companies.
Pro forma Hotel EBITDA includes hotel results from prior ownership periods and excludes non-comparable hotels which were not open for operation or were 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 were 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, FFO and EBITDA, is beneficial to an investor’s understanding of its operating performance. The Company adjusts FFO and EBITDA for the following items, as applicable:
• | Transaction and Pursuit Costs: The Company excludes transaction and pursuit costs expensed during the period because it believes they do not reflect the underlying performance of the Company. |
• | Non-Cash Expenses: The Company excludes the effect of certain non-cash items because it believes they do not reflect the underlying performance of the Company. The Company has excluded the amortization of share based compensation, non-cash gain or loss on the disposal of assets, non-cash gain or loss on the extinguishment of indebtedness, non-cash gain on foreclosure, the accelerated amortization of deferred management and financing fees, and impairment loss. |
• | 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. The Company has excluded the loss on defeasance and legal expenses it considered outside the normal course of business. |
New Accounting Treatment for Discontinued Operations
The Company adopted Financial Accounting Standards Board Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Going forward, the Company will only classify dispositions in discontinued operations if they represent a strategic shift in operations (e.g., disposal of a major line of business). The 14 assets sold during the nine months ended September 30, 2014, do not represent a strategic shift in operations for the Company.
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RLJ Lodging Trust
Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
September 30, 2014 | December 31, 2013 | ||||||
(unaudited) | |||||||
Assets | |||||||
Investment in hotels and other properties, net | $ | 3,704,801 | $ | 3,241,163 | |||
Cash and cash equivalents | 274,440 | 332,248 | |||||
Restricted cash reserves | 59,484 | 62,430 | |||||
Hotel and other receivables, net of allowance of $233 and $234, respectively | 37,574 | 22,762 | |||||
Deferred financing costs, net | 9,866 | 11,599 | |||||
Deferred income tax asset | 2,941 | 2,529 | |||||
Purchase deposits | 1,000 | 7,246 | |||||
Prepaid expense and other assets | 43,882 | 37,997 | |||||
Total assets | $ | 4,133,988 | $ | 3,717,974 | |||
Liabilities and Equity | |||||||
Mortgage loans | $ | 533,335 | $ | 559,665 | |||
Term loans | 1,025,000 | 850,000 | |||||
Accounts payable and accrued expense | 125,752 | 115,011 | |||||
Deferred income tax liability | 3,325 | 3,548 | |||||
Advance deposits and deferred revenue | 13,074 | 9,851 | |||||
Accrued interest | 2,711 | 2,695 | |||||
Distributions payable | 41,834 | 30,870 | |||||
Total liabilities | 1,745,031 | 1,571,640 | |||||
Equity | |||||||
Shareholders’ equity: | |||||||
Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized; zero shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | — | — | |||||
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 132,024,296 and 122,640,042 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 1,319 | 1,226 | |||||
Additional paid-in-capital | 2,417,759 | 2,178,004 | |||||
Accumulated other comprehensive loss | (7,287 | ) | (5,941 | ) | |||
Distributions in excess of net earnings | (40,369 | ) | (45,522 | ) | |||
Total shareholders’ equity | 2,371,422 | 2,127,767 | |||||
Noncontrolling interest | |||||||
Noncontrolling interest in joint venture | 6,226 | 7,306 | |||||
Noncontrolling interest in Operating Partnership | 11,309 | 11,261 | |||||
Total noncontrolling interest | 17,535 | 18,567 | |||||
Total equity | 2,388,957 | 2,146,334 | |||||
Total liabilities and equity | $ | 4,133,988 | $ | 3,717,974 | |||
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RLJ Lodging Trust
Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(unaudited)
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue | |||||||||||||||
Operating revenue | |||||||||||||||
Room revenue | $ | 261,895 | $ | 221,318 | $ | 727,367 | $ | 635,157 | |||||||
Food and beverage revenue | 27,076 | 22,907 | 77,924 | 71,206 | |||||||||||
Other operating department revenue | 8,695 | 7,891 | 23,795 | 21,446 | |||||||||||
Total revenue | 297,666 | 252,116 | 829,086 | 727,809 | |||||||||||
Expense | |||||||||||||||
Operating expense | |||||||||||||||
Room expense | 57,012 | 49,388 | 158,669 | 139,550 | |||||||||||
Food and beverage expense | 19,397 | 16,629 | 55,016 | 50,406 | |||||||||||
Management fee expense | 11,569 | 8,773 | 32,639 | 25,524 | |||||||||||
Other operating expense | 83,273 | 74,482 | 234,281 | 213,919 | |||||||||||
Total property operating expense | 171,251 | 149,272 | 480,605 | 429,399 | |||||||||||
Depreciation and amortization | 37,243 | 31,551 | 105,541 | 94,748 | |||||||||||
Impairment loss | 9,200 | — | 9,200 | — | |||||||||||
Property tax, insurance and other | 17,874 | 16,628 | 53,064 | 47,873 | |||||||||||
General and administrative | 11,029 | 8,961 | 31,293 | 26,839 | |||||||||||
Transaction and pursuit costs | 480 | 478 | 4,375 | 2,822 | |||||||||||
Total operating expense | 247,077 | 206,890 | 684,078 | 601,681 | |||||||||||
Operating income | 50,589 | 45,226 | 145,008 | 126,128 | |||||||||||
Other income | 48 | 164 | 563 | 334 | |||||||||||
Interest income | 337 | 241 | 1,622 | 777 | |||||||||||
Interest expense | (13,858 | ) | (16,511 | ) | (42,646 | ) | (50,170 | ) | |||||||
Gain on foreclosure | — | 4,831 | — | 4,831 | |||||||||||
Income from continuing operations before income tax expense | 37,116 | 33,951 | 104,547 | 81,900 | |||||||||||
Income tax expense | (374 | ) | (181 | ) | (1,162 | ) | (752 | ) | |||||||
Income from continuing operations | 36,742 | 33,770 | 103,385 | 81,148 | |||||||||||
Income from discontinued operations | — | 3,158 | — | 5,349 | |||||||||||
Gain (loss) on disposal of hotel properties | 322 | — | (975 | ) | — | ||||||||||
Net income | 37,064 | 36,928 | 102,410 | 86,497 | |||||||||||
Net income attributable to non-controlling interests | |||||||||||||||
Noncontrolling interest in consolidated joint venture | (57 | ) | (166 | ) | (102 | ) | (321 | ) | |||||||
Noncontrolling interest in common units of Operating Partnership | (247 | ) | (293 | ) | (712 | ) | (700 | ) | |||||||
Net income attributable to common shareholders | $ | 36,760 | $ | 36,469 | $ | 101,596 | $ | 85,476 | |||||||
Basic per common share data | |||||||||||||||
Income from continuing operations attributable to common shareholders, including loss on disposal of hotel properties | $ | 0.28 | $ | 0.27 | $ | 0.80 | $ | 0.68 | |||||||
Discontinued operations | — | 0.03 | — | 0.05 | |||||||||||
Net income per share attributable to common shareholders | $ | 0.28 | $ | 0.30 | $ | 0.80 | $ | 0.73 | |||||||
Weighted-average number of common shares | 131,106,440 | 121,594,219 | 126,070,309 | 116,697,417 | |||||||||||
Diluted per common share data | |||||||||||||||
Income from continuing operations attributable to common shareholders, including loss on disposal of hotel properties | $ | 0.28 | $ | 0.27 | $ | 0.79 | $ | 0.67 | |||||||
Discontinued operations | — | 0.03 | — | 0.05 | |||||||||||
Net income per share attributable to common shareholders | $ | 0.28 | $ | 0.30 | $ | 0.79 | $ | 0.72 | |||||||
Weighted-average number of common shares | 132,386,843 | 122,750,121 | 127,297,901 | 117,797,670 | |||||||||||
Note:
The Statement of Comprehensive Income and corresponding footnotes can be found in the Company’s Quarterly Report on Form 10-Q.
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RLJ Lodging Trust
Reconciliation of Net Income to Non-GAAP Measures
(Amounts in thousands, except per share data)
(unaudited)
Funds From Operations (FFO)
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income | $ | 37,064 | $ | 36,928 | $ | 102,410 | $ | 86,497 | |||||||
Depreciation and amortization | 37,243 | 31,551 | 105,541 | 94,748 | |||||||||||
(Gain) Loss on disposal of hotel properties | (322 | ) | — | 975 | — | ||||||||||
Gain on extinguishment of indebtedness | — | (3,277 | ) | — | (5,702 | ) | |||||||||
Impairment loss | 9,200 | — | 9,200 | — | |||||||||||
Noncontrolling interest in joint venture | (57 | ) | (166 | ) | (102 | ) | (321 | ) | |||||||
Adjustments related to discontinued operations (1) | — | 35 | — | 191 | |||||||||||
Adjustments related to joint venture (2) | (47 | ) | (121 | ) | (139 | ) | (363 | ) | |||||||
FFO attributable to common shareholders | 83,081 | 64,950 | 217,885 | 175,050 | |||||||||||
Gain on foreclosure | — | (4,831 | ) | — | (4,831 | ) | |||||||||
Transaction and pursuit costs | 480 | 478 | 4,375 | 2,822 | |||||||||||
Amortization of share based compensation | 3,851 | 3,344 | 11,244 | 9,691 | |||||||||||
Loan related costs (3) | — | 1,046 | 1,073 | 1,046 | |||||||||||
Other expenses (4) | — | 133 | — | 157 | |||||||||||
Adjusted FFO | $ | 87,412 | $ | 65,120 | $ | 234,577 | $ | 183,935 | |||||||
Adjusted FFO per common share and unit-basic | $ | 0.66 | $ | 0.53 | $ | 1.85 | $ | 1.56 | |||||||
Adjusted FFO per common share and unit-diluted | $ | 0.66 | $ | 0.53 | $ | 1.83 | $ | 1.55 | |||||||
Basic weighted-average common shares and units outstanding (5) | 132,000 | 122,488 | 126,964 | 117,591 | |||||||||||
Diluted weighted-average common shares and units outstanding (5) | 133,281 | 123,644 | 128,192 | 118,692 | |||||||||||
Note:
(1) Includes depreciation and amortization expense from discontinued operations.
(2) Includes depreciation and amortization expense allocated to the noncontrolling interest in the joint venture.
(3) Represents loss on defeasance and accelerated amortization of deferred financing fees.
(4) Represents accelerated deferred management expense and legal expenses outside the normal course of operations.
(5) Includes 0.9 million operating partnership units.
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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 September 30, | For the nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income | $ | 37,064 | $ | 36,928 | $ | 102,410 | $ | 86,497 | |||||||
Depreciation and amortization | 37,243 | 31,551 | 105,541 | 94,748 | |||||||||||
Interest expense, net (1) | 13,850 | 16,501 | 41,991 | 50,149 | |||||||||||
Income tax expense | 374 | 181 | 1,162 | 752 | |||||||||||
Noncontrolling interest in joint venture | (57 | ) | (166 | ) | (102 | ) | (321 | ) | |||||||
Adjustments related to discontinued operations (2) | — | 66 | — | 563 | |||||||||||
Adjustments related to joint venture (3) | (47 | ) | (121 | ) | (139 | ) | (363 | ) | |||||||
EBITDA | 88,427 | 84,940 | 250,863 | 232,025 | |||||||||||
Gain on foreclosure | — | (4,831 | ) | — | (4,831 | ) | |||||||||
Transaction and pursuit costs | 480 | 478 | 4,375 | 2,822 | |||||||||||
Gain on extinguishment of indebtedness | — | (3,277 | ) | — | (5,702 | ) | |||||||||
Impairment loss | 9,200 | — | 9,200 | — | |||||||||||
(Gain) loss on disposal of hotel properties | (322 | ) | — | 975 | — | ||||||||||
Amortization of share based compensation | 3,851 | 3,344 | 11,244 | 9,691 | |||||||||||
Other expenses (4) | — | 133 | — | 157 | |||||||||||
Adjusted EBITDA | $ | 101,636 | $ | 80,787 | $ | 276,657 | $ | 234,162 | |||||||
General and administrative (5) | 7,178 | 5,617 | 20,049 | 17,148 | |||||||||||
Operating results from noncontrolling interest in joint venture | 104 | 287 | 241 | 684 | |||||||||||
Residential income | (11 | ) | (188 | ) | 23 | (420 | ) | ||||||||
Pro forma adjustments (6) | 368 | 11,776 | 12,176 | 37,954 | |||||||||||
Income from sold properties | 29 | (4,055 | ) | (1,181 | ) | (11,663 | ) | ||||||||
Other corporate adjustments | 93 | 67 | (48 | ) | 331 | ||||||||||
Pro forma Consolidated Hotel EBITDA | 109,397 | 94,291 | 307,917 | 278,196 | |||||||||||
Non-comparable hotels (7) | (933 | ) | (356 | ) | (2,111 | ) | (642 | ) | |||||||
Pro forma Hotel EBITDA | $ | 108,464 | $ | 93,935 | $ | 305,806 | $ | 277,554 | |||||||
Note:
(1) Interest expense is net of interest income, excludes amounts attributable to investment in loans of $0.3 million and $1.0 million for the three and nine months ended September 30, 2014, respectively, and $0.2 million and $0.8 million for the three and nine months ended September 30, 2013, 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 accelerated deferred management expense and legal expenses outside the normal course of operations.
(5) General and administrative expenses exclude amortization of share based compensation, which is reflected in Adjusted EBITDA.
(6) Reflects prior ownership results of recent acquisitions and normalizes ground rent for the Courtyard Waikiki Beach. For nine months ended September 30, 2013, Pro forma Hotel EBITDA for Courtyard Waikiki Beach was reduced by $1.6 million.
(7) Reflects the results of Residence Inn Atlanta Midtown/Georgia Tech, Hyatt Atlanta Midtown, and Hilton Cabana Miami Beach, which were not open for the entirety of the comparable periods. Also reflects the results of Fairfield Inn & Suites Key West during three months ended September 30, 2014 and 2013, since it was closed for a comprehensive renovation during Q3 2014.
11
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 September 30, 2014 | ||||
Secured Debt | |||||||||
Capmark Financial Group - 1 hotel | 10 | May 2015 | Fixed | 5.55 | % | $ | 10,615 | ||
Capmark Financial Group - 1 hotel | 10 | Jun 2015 | Fixed | 5.55 | % | 4,605 | |||
Barclays Bank - 12 hotels | 10 | Jun 2015 | Fixed | 5.55 | % | 108,576 | |||
Barclays Bank - 4 hotels | 10 | Jun 2015 | Fixed | 5.60 | % | 27,030 | |||
Capmark Financial Group - 1 hotel | 10 | Jul 2015 | Fixed | 5.50 | % | 6,273 | |||
Barclays Bank - 1 hotel | 10 | Sep 2015 | Fixed | 5.44 | % | 10,236 | |||
Wells Fargo - 5 hotels (2) | 3 | Oct 2016 | Floating | 3.76 | % | 142,000 | |||
PNC Bank - 5 hotels | 4 | May 2017 | Floating | 2.51 | % | 74,000 | |||
Wells Fargo - 4 hotels | 3 | Sep 2020 | Floating (3) | 4.19 | % | 150,000 | |||
Secured Total / Weighted Average | 4.27 | % | $ | 533,335 | |||||
Unsecured Debt | |||||||||
Credit Facility | 4 | Nov 2017 | Floating | — | % | $ | — | ||
2013 Five-Year Term Loan | 5 | Aug 2018 | Floating (3)(4) | 3.07 | % | 400,000 | |||
2012 Five-Year Term Loan | 5 | Mar 2019 | Floating (3)(5) | 1.71 | % | 400,000 | |||
Seven-Year Term Loan | 7 | Nov 2019 | Floating (3) | 4.04 | % | 225,000 | |||
Unsecured Total / Weighted Average | 2.75 | % | $ | 1,025,000 | |||||
Total Debt / Weighted Average | 3.27 | % | $ | 1,558,335 | |||||
Note:
(1) | Interest rates as of September 30, 2014. |
(2) | In October 2014, the Company refinanced these mortgage loans. See "Subsequent Events" section for more information. |
(3) | The floating interest rate is hedged with an interest rate swap. |
(4) | Reflects interest rate swap on $350.0 million. |
(5) | Interest rate does not reflect forward interest rate swap. Forward swap only applicable to $275.0 million. |
12
RLJ Lodging Trust
Acquisitions
(unaudited)
2014 Acquisitions | Location | Acquisition Date | Management Company | Rooms | Gross Purchase Price ($ in millions) (1) | % Interest | ||||
Hyatt House Charlotte Center City | Charlotte, NC | Mar 12, 2014 | Hyatt Affiliate | 163 | $ | 32.5 | 100 | % | ||
Hyatt House Cypress Anaheim | Cypress, CA | Mar 12, 2014 | Hyatt Affiliate | 142 | 14.8 | 100 | % | |||
Hyatt House Emeryville SF Bay Area | Emeryville, CA | Mar 12, 2014 | Hyatt Affiliate | 234 | 39.3 | 100 | % | |||
Hyatt House San Diego Sorrento Mesa | San Diego, CA | Mar 12, 2014 | Hyatt Affiliate | 193 | 36.0 | 100 | % | |||
Hyatt House San Jose Silicon Valley | San Jose, CA | Mar 12, 2014 | Hyatt Affiliate | 164 | 44.2 | 100 | % | |||
Hyatt House San Ramon | San Ramon, CA | Mar 12, 2014 | Hyatt Affiliate | 142 | 20.8 | 100 | % | |||
Hyatt House Santa Clara | Santa Clara, CA | Mar 12, 2014 | Hyatt Affiliate | 150 | 40.6 | 100 | % | |||
Hyatt Market Street The Woodlands | The Woodlands, TX | Mar 12, 2014 | Hyatt Corporation | 70 | 25.8 | 100 | % | |||
Hyatt Place Fremont Silicon Valley | Fremont, CA | Mar 12, 2014 | Hyatt Affiliate | 151 | 23.5 | 100 | % | |||
Hyatt Place Madison Downtown | Madison, WI | Mar 12, 2014 | Hyatt Affiliate | 151 | 35.1 | 100 | % | |||
Courtyard Portland City Center | Portland, OR | May 22, 2014 | Sage Hospitality | 256 | 67.0 | 100 | % | |||
Embassy Suites Irvine Orange County | Irvine, CA | May 22, 2014 | Sage Hospitality | 293 | 53.0 | 100 | % | |||
Hilton Cabana Miami Beach | Miami Beach, FL | Jun 19, 2014 | Highgate Hotels | 231 | 71.7 | 100 | % | |||
Hyatt Atlanta Midtown | Atlanta, GA | Jul 14, 2014 | Interstate Hotels and Resorts | 194 | 49.5 | 100 | % | |||
DoubleTree Grand Key Resort (2) | Key West, FL | Sep 11, 2014 | Interstate Hotels and Resorts | 215 | 77.0 | 100 | % | |||
Total Acquisitions | 2,749 | $ | 630.7 | |||||||
2013 Acquisitions | Location | Acquisition Date | Management Company | Rooms | Gross Purchase Price ($ in millions) (1) | % Interest | ||||
Courtyard Houston Downtown Convention Center | Houston, TX | Mar 19, 2013 | White Lodging Services | 191 | $ | 34.4 | 100 | % | ||
Residence Inn Houston Downtown Convention Center | Houston, TX | Mar 19, 2013 | White Lodging Services | 171 | 29.5 | 100 | % | |||
Humble Tower Apartments (3) | Houston, TX | Mar 19, 2013 | N/A | 82 | 15.6 | 100 | % | |||
Courtyard Waikiki Beach | Honolulu, HI | Jun 17, 2013 | Highgate Hotels | 399 | 75.3 | 100 | % | |||
Vantaggio Suites Cosmo (4) | San Francisco, CA | Jun 21, 2013 | N/A | 150 | 29.5 | 100 | % | |||
Residence Inn Atlanta Midtown/Georgia Tech (5) | Atlanta, GA | Aug 6, 2013 | Interstate Hotels and Resorts | 78 | 5.0 | 100 | % | |||
SpringHill Suites Portland Hillsboro | Hillsboro, OR | Oct 8, 2013 | InnVentures | 106 | 24.0 | 100 | % | |||
Total Acquisitions | 1,177 | $ | 213.3 | |||||||
Note:
(1) Gross purchase price does not include net closing adjustments. Please refer to the 10-Q for the net purchase price.
(2) Purchase price does not include $1.3 million paid for five condominium units.
(3) This property is currently not open for operations. Conversion to a SpringHill Suites is in progress.
(4) This property is currently not open for operations. Conversion to a Courtyard by Marriott is in progress.
(5) The Company was the successful bidder at a foreclosure sale of the property collateralizing the non-performing loan. The purchase price equates to the original amount paid for the mortgage note in November 2009. In October 2014, the property reopened after a comprehensive renovation as a 90-room hotel.
13
RLJ Lodging Trust
Pro forma Operating Statistics — Top 50 Assets
(Amounts in thousands, except rooms)
(unaudited)
For the trailing twelve months ended September 30, 2014
Property | City/State | # of Rooms | EBITDA | |||
DoubleTree NYC Metropolitan | New York, NY | 764 | $ | 19,539 | ||
Marriott Louisville Downtown | Louisville, KY | 616 | 15,223 | |||
Hilton New York Fashion District | New York, NY | 280 | 10,558 | |||
Hilton Garden Inn New York W 35th St | New York, NY | 298 | 10,525 | |||
Courtyard Austin Dtwn Conv Ctr | Austin, TX | 270 | 9,557 | |||
Courtyard Chicago Downtown Mag Mile | Chicago, IL | 306 | 6,645 | |||
Courtyard Waikiki Beach | Honolulu, HI | 403 | 6,216 | |||
Courtyard Portland City Center | Portland, OR | 256 | 6,156 | |||
Fairfield Inn & Suites DC Downtown | Washington, DC | 198 | 6,053 | |||
Renaissance Pittsburgh Hotel | Pittsburgh, PA | 300 | 6,045 | |||
Embassy Suites Tampa Dtwn Conv Ctr | Tampa, FL | 360 | 5,783 | |||
Residence Inn Austin Dtwn Conv Ctr | Austin, TX | 179 | 5,323 | |||
Courtyard New York Manhattan Upper East | New York, NY | 226 | 4,966 | |||
Hilton Garden Inn SF Oakland Bay Bridge | Emeryville, CA | 278 | 4,927 | |||
Courtyard Charleston Historic District | Charleston, SC | 176 | 4,855 | |||
Marriott Denver Airport @ Gateway Park | Aurora, CO | 238 | 4,848 | |||
Embassy Suites Boston Waltham | Waltham, MA | 275 | 4,721 | |||
Courtyard Houston By The Galleria | Houston, TX | 190 | 4,702 | |||
Marriott Denver South @ Park Meadows | Lone Tree, CO | 279 | 4,661 | |||
Hilton Garden Inn Los Angeles Hollywood | Los Angeles, CA | 160 | 4,567 | |||
Hyatt House Emeryville SF Bay Area | Emeryville, CA | 234 | 4,483 | |||
Hyatt House Santa Clara | Santa Clara, CA | 150 | 4,464 | |||
Residence Inn Bethesda Downtown | Bethesda, MD | 187 | 4,461 | |||
Hilton Garden Inn New Orleans Conv Ctr | New Orleans, LA | 286 | 4,396 | |||
Homewood Suites Washington DC Downtown | Washington, DC | 175 | 4,394 | |||
DoubleTree Grand Key Resort | Key West, FL | 215 | 4,370 | |||
Embassy Suites Los Angeles Downey | Downey, CA | 219 | 4,158 | |||
Hyatt House San Jose Silicon Valley | San Jose, CA | 164 | 4,116 | |||
Residence Inn National Harbor DC | Oxon Hill, MD | 162 | 3,975 | |||
Marriott Austin South | Austin, TX | 211 | 3,762 | |||
Renaissance Ft Lauderdale Plantation | Plantation, FL | 250 | 3,715 | |||
Courtyard Houston Dtwn Conv Ctr | Houston, TX | 191 | 3,692 | |||
Hampton Inn Houston Near The Galleria | Houston, TX | 176 | 3,377 | |||
Residence Inn Chicago Oak Brook | Oak Brook, IL | 156 | 3,359 | |||
Residence Inn Houston Dtwn Conv Ctr | Houston, TX | 171 | 3,353 | |||
Renaissance Boulder Flatiron Hotel | Broomfield, CO | 232 | 3,278 | |||
Embassy Suites Irvine Orange Cnty Arprt | Irvine, CA | 293 | 3,247 | |||
Hyatt House San Diego Sorrento Mesa | San Diego, CA | 193 | 3,129 | |||
Marriott Chicago Midway | Chicago, IL | 200 | 3,054 | |||
Residence Inn Houston By The Galleria | Houston, TX | 146 | 3,035 | |||
Hilton Garden Inn Bloomington | Bloomington, IN | 168 | 3,005 | |||
Hyatt House Charlotte Center City | Charlotte, NC | 163 | 2,947 | |||
Residence Inn Louisville Downtown | Louisville, KY | 140 | 2,891 | |||
Hyatt Place Madison Downtown | Madison, WI | 151 | 2,878 | |||
Hampton Inn Garden City | Garden City, NY | 143 | 2,867 | |||
Hilton Garden Inn Pittsburgh Univ Pl | Pittsburgh, PA | 202 | 2,696 | |||
Hyatt House Dallas Lincoln Park | Dallas, TX | 155 | 2,598 | |||
Residence Inn Indy Dtwn On The Canal | Indianapolis, IN | 134 | 2,572 | |||
SpringHill Suites Portland Hillsboro | Hillsboro, OR | 106 | 2,401 | |||
Hyatt House Houston Galleria | Houston, TX | 147 | 2,178 | |||
Top 50 Assets | 11,572 | 248,721 | ||||
Other (1) | 11,786 | 146,361 | ||||
Total Portfolio | 23,358 | $ | 395,082 | |||
Note:
The information above has not been audited and is presented only for comparison purposes. Results reflect 100% of DoubleTree NYC Metropolitan financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture.
(1) Reflects 98 hotels. Disposed hotels and two planned hotel conversions which are underway are not included.
14
RLJ Lodging Trust
Pro forma Operating Statistics
(unaudited)
For the three months ended September 30, 2014
Top Markets | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2014 | 2013 | Var | 2014 | 2013 | Var | 2014 | 2013 | Var | Q3 | ||||||||||||||||||||
NYC | 5 | 97.3 | % | 97.5 | % | (0.2 | )% | $ | 247.22 | $ | 243.70 | 1.4 | % | $ | 240.66 | $ | 237.66 | 1.3 | % | 12 | % | |||||||||
Chicago | 21 | 83.4 | % | 79.9 | % | 4.4 | % | 137.47 | 131.86 | 4.3 | % | 114.64 | 105.30 | 8.9 | % | 12 | % | |||||||||||||
Austin | 14 | 79.2 | % | 72.8 | % | 8.8 | % | 136.87 | 130.46 | 4.9 | % | 108.46 | 95.02 | 14.1 | % | 8 | % | |||||||||||||
Denver | 13 | 88.8 | % | 83.6 | % | 6.2 | % | 134.50 | 128.67 | 4.5 | % | 119.44 | 107.55 | 11.1 | % | 9 | % | |||||||||||||
Houston | 9 | 81.6 | % | 73.1 | % | 11.6 | % | 148.74 | 150.37 | (1.1 | )% | 121.32 | 109.93 | 10.4 | % | 6 | % | |||||||||||||
Washington DC | 7 | 82.3 | % | 76.8 | % | 7.2 | % | 166.70 | 161.22 | 3.4 | % | 137.20 | 123.78 | 10.8 | % | 6 | % | |||||||||||||
Other | 75 | 81.4 | % | 78.3 | % | 4.0 | % | 138.08 | 128.93 | 7.1 | % | 112.45 | 100.92 | 11.4 | % | 47 | % | |||||||||||||
Total | 144 | 83.3 | % | 79.5 | % | 4.8 | % | $ | 149.16 | $ | 142.60 | 4.6 | % | $ | 124.32 | $ | 113.43 | 9.6 | % | 100 | % | |||||||||
Service Level | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2014 | 2013 | Var | 2014 | 2013 | Var | 2014 | 2013 | Var | Q3 | ||||||||||||||||||||
Focused-Service | 122 | 83.4 | % | 78.9 | % | 5.7 | % | $ | 141.71 | $ | 135.24 | 4.8 | % | $ | 118.19 | $ | 106.76 | 10.7 | % | 73 | % | |||||||||
Compact Full-Service | 21 | 84.4 | % | 82.7 | % | 2.1 | % | 170.21 | 163.52 | 4.1 | % | 143.73 | 135.20 | 6.3 | % | 23 | % | |||||||||||||
Full Service | 1 | 72.5 | % | 69.1 | % | 4.9 | % | 170.02 | 154.35 | 10.2 | % | 123.29 | 106.65 | 15.6 | % | 4 | % | |||||||||||||
Total | 144 | 83.3 | % | 79.5 | % | 4.8 | % | $ | 149.16 | $ | 142.60 | 4.6 | % | $ | 124.32 | $ | 113.43 | 9.6 | % | 100 | % | |||||||||
Chain Scale | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2014 | 2013 | Var | 2014 | 2013 | Var | 2014 | 2013 | Var | Q3 | ||||||||||||||||||||
Upper Upscale | 18 | 80.9 | % | 78.9 | % | 2.6 | % | $ | 158.68 | $ | 149.82 | 5.9 | % | $ | 128.42 | $ | 118.21 | 8.6 | % | 21 | % | |||||||||
Upscale | 104 | 84.6 | % | 80.6 | % | 5.0 | % | 150.79 | 144.59 | 4.3 | % | 127.63 | 116.54 | 9.5 | % | 71 | % | |||||||||||||
Upper Midscale | 21 | 79.3 | % | 73.5 | % | 8.0 | % | 123.13 | 118.48 | 3.9 | % | 97.70 | 87.04 | 12.2 | % | 8 | % | |||||||||||||
Midscale | 1 | 92.1 | % | 92.0 | % | 0.2 | % | 86.45 | 68.20 | 26.8 | % | 79.66 | 62.73 | 27.0 | % | 0% | ||||||||||||||
Total | 144 | 83.3 | % | 79.5 | % | 4.8 | % | $ | 149.16 | $ | 142.60 | 4.6 | % | $ | 124.32 | $ | 113.43 | 9.6 | % | 100 | % | |||||||||
Flags | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2014 | 2013 | Var | 2014 | 2013 | Var | 2014 | 2013 | Var | Q3 | ||||||||||||||||||||
Residence Inn | 33 | 85.7 | % | 81.0 | % | 5.9 | % | $ | 132.91 | $ | 128.52 | 3.4 | % | $ | 113.93 | $ | 104.07 | 9.5 | % | 16 | % | |||||||||
Courtyard | 33 | 83.2 | % | 78.4 | % | 6.1 | % | 147.22 | 141.60 | 4.0 | % | 122.53 | 111.05 | 10.3 | % | 23 | % | |||||||||||||
Hyatt House | 11 | 86.0 | % | 85.2 | % | 1.0 | % | 152.05 | 137.00 | 11.0 | % | 130.82 | 116.73 | 12.1 | % | 9 | % | |||||||||||||
Fairfield Inn & Suites | 10 | 79.5 | % | 71.9 | % | 10.6 | % | 117.03 | 113.30 | 3.3 | % | 93.06 | 81.43 | 14.3 | % | 4 | % | |||||||||||||
SpringHill Suites | 10 | 83.2 | % | 77.0 | % | 8.1 | % | 111.71 | 110.39 | 1.2 | % | 92.95 | 84.97 | 9.4 | % | 5 | % | |||||||||||||
Hilton Garden Inn | 9 | 82.1 | % | 78.4 | % | 4.8 | % | 174.16 | 165.43 | 5.3 | % | 143.00 | 129.63 | 10.3 | % | 9 | % | |||||||||||||
Hampton Inn | 8 | 80.1 | % | 75.1 | % | 6.6 | % | 130.81 | 125.80 | 4.0 | % | 104.72 | 94.51 | 10.8 | % | 4 | % | |||||||||||||
Marriott | 6 | 77.8 | % | 74.6 | % | 4.3 | % | 151.21 | 140.86 | 7.3 | % | 117.65 | 105.11 | 11.9 | % | 9 | % | |||||||||||||
Embassy Suites | 7 | 80.7 | % | 80.1 | % | 0.8 | % | 142.03 | 131.35 | 8.1 | % | 114.67 | 105.17 | 9.0 | % | 5 | % | |||||||||||||
Renaissance | 3 | 82.3 | % | 79.1 | % | 4.1 | % | 155.52 | 147.01 | 5.8 | % | 127.98 | 116.24 | 10.1 | % | 3 | % | |||||||||||||
Hyatt Place | 2 | 90.5 | % | 89.9 | % | 0.7 | % | 153.49 | 139.15 | 10.3 | % | 138.93 | 125.14 | 11.0 | % | 2 | % | |||||||||||||
DoubleTree | 3 | 93.3 | % | 92.3 | % | 1.1 | % | 219.53 | 215.90 | 1.7 | % | 204.77 | 199.28 | 2.8 | % | 6 | % | |||||||||||||
Homewood Suites | 2 | 82.1 | % | 76.4 | % | 7.5 | % | 164.53 | 156.42 | 5.2 | % | 135.06 | 119.44 | 13.1 | % | 1 | % | |||||||||||||
Hilton | 1 | 98.8 | % | 99.6 | % | (0.8 | )% | 260.88 | 268.37 | (2.8 | )% | 257.83 | 267.40 | (3.6 | )% | 2 | % | |||||||||||||
Hyatt | 1 | 80.5 | % | 77.4 | % | 4.0 | % | 290.48 | 265.30 | 9.5 | % | 233.74 | 205.24 | 13.9 | % | 1 | % | |||||||||||||
Other | 5 | 75.1 | % | 71.0 | % | 5.8 | % | 114.83 | 103.13 | 11.3 | % | 86.21 | 73.18 | 17.8 | % | 1 | % | |||||||||||||
Total | 144 | 83.3 | % | 79.5 | % | 4.8 | % | $ | 149.16 | $ | 142.60 | 4.6 | % | $ | 124.32 | $ | 113.43 | 9.6 | % | 100 | % | |||||||||
Note:
The information above includes results for periods prior to the Company's ownership. The information has not been audited and is presented only for comparison purposes. Results reflect 100% of DoubleTree NYC Metropolitan financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture. All results exclude disposed hotels, two planned hotel conversions, and four non-comparable hotels: Residence Inn Atlanta Midtown/Georgia Tech, Hilton Cabana Miami Beach, Hyatt Atlanta Midtown, and Fairfield Inn & Suites Key West.
15
RLJ Lodging Trust
Pro forma Operating Statistics
(unaudited)
For the nine months ended September 30, 2014
Top Markets | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2014 | 2013 | Var | 2014 | 2013 | Var | 2014 | 2013 | Var | Q3YTD | ||||||||||||||||||||
NYC | 5 | 96.0 | % | 96.8 | % | (0.8 | )% | $ | 231.69 | $ | 230.96 | 0.3 | % | $ | 222.42 | $ | 223.56 | (0.5 | )% | 11 | % | |||||||||
Chicago | 21 | 75.7 | % | 73.5 | % | 2.9 | % | 129.36 | 127.91 | 1.1 | % | 97.90 | 94.04 | 4.1 | % | 9 | % | |||||||||||||
Austin | 14 | 81.3 | % | 76.7 | % | 6.0 | % | 148.66 | 142.86 | 4.1 | % | 120.87 | 109.60 | 10.3 | % | 9 | % | |||||||||||||
Denver | 13 | 79.8 | % | 74.5 | % | 7.2 | % | 129.57 | 124.91 | 3.7 | % | 103.44 | 93.02 | 11.2 | % | 8 | % | |||||||||||||
Houston | 9 | 79.1 | % | 76.0 | % | 4.2 | % | 159.78 | 154.44 | 3.5 | % | 126.45 | 117.32 | 7.8 | % | 7 | % | |||||||||||||
Washington DC | 7 | 78.5 | % | 73.5 | % | 6.9 | % | 172.23 | 171.72 | 0.3 | % | 135.23 | 126.15 | 7.2 | % | 6 | % | |||||||||||||
Other | 75 | 79.5 | % | 76.8 | % | 3.5 | % | 140.10 | 132.05 | 6.1 | % | 111.32 | 101.38 | 9.8 | % | 50 | % | |||||||||||||
Total | 144 | 80.4 | % | 77.5 | % | 3.7 | % | $ | 149.55 | $ | 144.22 | 3.7 | % | $ | 120.17 | $ | 111.75 | 7.5 | % | 100 | % | |||||||||
Service Level | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2014 | 2013 | Var | 2014 | 2013 | Var | 2014 | 2013 | Var | Q3YTD | ||||||||||||||||||||
Focused-Service | 122 | 80.0 | % | 76.6 | % | 4.4 | % | $ | 141.47 | $ | 136.46 | 3.7 | % | $ | 113.19 | $ | 104.58 | 8.2 | % | 72 | % | |||||||||
Compact Full-Service | 21 | 82.4 | % | 81.0 | % | 1.8 | % | 170.99 | 164.51 | 3.9 | % | 140.98 | 133.23 | 5.8 | % | 24 | % | |||||||||||||
Full Service | 1 | 71.8 | % | 70.3 | % | 2.1 | % | 182.12 | 173.07 | 5.2 | % | 130.78 | 121.69 | 7.5 | % | 4 | % | |||||||||||||
Total | 144 | 80.4 | % | 77.5 | % | 3.7 | % | $ | 149.55 | $ | 144.22 | 3.7 | % | $ | 120.17 | $ | 111.75 | 7.5 | % | 100 | % | |||||||||
Chain Scale | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2014 | 2013 | Var | 2014 | 2013 | Var | 2014 | 2013 | Var | Q3YTD | ||||||||||||||||||||
Upper Upscale | 18 | 78.6 | % | 77.5 | % | 1.5 | % | $ | 162.51 | $ | 154.48 | 5.2 | % | $ | 127.79 | $ | 119.66 | 6.8 | % | 22 | % | |||||||||
Upscale | 104 | 81.4 | % | 78.4 | % | 3.9 | % | 149.65 | 144.69 | 3.4 | % | 121.85 | 113.44 | 7.4 | % | 69 | % | |||||||||||||
Upper Midscale | 21 | 76.7 | % | 71.4 | % | 7.3 | % | 128.25 | 124.86 | 2.7 | % | 98.30 | 89.18 | 10.2 | % | 9 | % | |||||||||||||
Midscale | 1 | 87.0 | % | 85.5 | % | 1.7 | % | 73.77 | 66.13 | 11.6 | % | 64.19 | 56.57 | 13.5 | % | 0% | ||||||||||||||
Total | 144 | 80.4 | % | 77.5 | % | 3.7 | % | $ | 149.55 | $ | 144.22 | 3.7 | % | $ | 120.17 | $ | 111.75 | 7.5 | % | 100 | % | |||||||||
Flags | Occupancy | ADR | RevPAR | % of Hotel EBITDA | ||||||||||||||||||||||||||
# of Hotels | 2014 | 2013 | Var | 2014 | 2013 | Var | 2014 | 2013 | Var | Q3YTD | ||||||||||||||||||||
Residence Inn | 33 | 82.5 | % | 78.1 | % | 5.6 | % | $ | 134.64 | $ | 130.93 | 2.8 | % | $ | 111.07 | $ | 102.24 | 8.6 | % | 17 | % | |||||||||
Courtyard | 33 | 78.6 | % | 76.0 | % | 3.4 | % | 145.92 | 141.50 | 3.1 | % | 114.76 | 107.60 | 6.7 | % | 22 | % | |||||||||||||
Hyatt House | 11 | 83.1 | % | 82.8 | % | 0.4 | % | 148.33 | 135.18 | 9.7 | % | 123.32 | 111.93 | 10.2 | % | 8 | % | |||||||||||||
Fairfield Inn & Suites | 10 | 75.7 | % | 70.9 | % | 6.8 | % | 127.09 | 124.93 | 1.7 | % | 96.27 | 88.60 | 8.7 | % | 4 | % | |||||||||||||
SpringHill Suites | 10 | 78.3 | % | 72.9 | % | 7.3 | % | 112.06 | 111.01 | 0.9 | % | 87.70 | 80.94 | 8.4 | % | 4 | % | |||||||||||||
Hilton Garden Inn | 9 | 80.8 | % | 77.9 | % | 3.6 | % | 168.46 | 163.59 | 3.0 | % | 136.05 | 127.47 | 6.7 | % | 9 | % | |||||||||||||
Hampton Inn | 8 | 79.1 | % | 73.7 | % | 7.4 | % | 133.71 | 128.73 | 3.9 | % | 105.79 | 94.85 | 11.5 | % | 4 | % | |||||||||||||
Marriott | 6 | 74.5 | % | 72.5 | % | 2.8 | % | 154.77 | 147.27 | 5.1 | % | 115.34 | 106.81 | 8.0 | % | 9 | % | |||||||||||||
Embassy Suites | 7 | 80.6 | % | 79.7 | % | 1.1 | % | 149.80 | 139.47 | 7.4 | % | 120.81 | 111.22 | 8.6 | % | 6 | % | |||||||||||||
Renaissance | 3 | 76.3 | % | 76.0 | % | 0.5 | % | 157.17 | 147.49 | 6.6 | % | 119.97 | 112.04 | 7.1 | % | 3 | % | |||||||||||||
Hyatt Place | 2 | 86.7 | % | 87.3 | % | (0.7 | )% | 140.21 | 127.32 | 10.1 | % | 121.54 | 111.13 | 9.4 | % | 1 | % | |||||||||||||
DoubleTree | 3 | 93.6 | % | 91.7 | % | 2.0 | % | 213.22 | 210.25 | 1.4 | % | 199.47 | 192.74 | 3.5 | % | 6 | % | |||||||||||||
Homewood Suites | 2 | 79.8 | % | 76.5 | % | 4.2 | % | 171.48 | 166.33 | 3.1 | % | 136.79 | 127.31 | 7.4 | % | 2 | % | |||||||||||||
Hilton | 1 | 98.9 | % | 99.8 | % | (0.9 | )% | 249.14 | 254.52 | (2.1 | )% | 246.50 | 254.02 | (3.0 | )% | 2 | % | |||||||||||||
Hyatt | 1 | 81.6 | % | 78.5 | % | 4.0 | % | 290.63 | 268.35 | 8.3 | % | 237.27 | 210.61 | 12.7 | % | 1 | % | |||||||||||||
Other | 5 | 72.6 | % | 66.0 | % | 10.1 | % | 115.21 | 108.76 | 5.9 | % | 83.69 | 71.78 | 16.6 | % | 2 | % | |||||||||||||
Total | 144 | 80.4 | % | 77.5 | % | 3.7 | % | $ | 149.55 | $ | 144.22 | 3.7 | % | $ | 120.17 | $ | 111.75 | 7.5 | % | 100 | % | |||||||||
Note:
The information above includes results for periods prior to the Company's ownership. The information has not been audited and is presented only for comparison purposes. Results reflect 100% of DoubleTree NYC Metropolitan financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture. All results exclude disposed hotels, two planned hotel conversions, and four non-comparable hotels: Residence Inn Atlanta Midtown/Georgia Tech, Hilton Cabana Miami Beach, Hyatt Atlanta Midtown, and Fairfield Inn & Suites Key West (Q3 only). Fairfield Inn & Suites Key West was closed for a comprehensive renovation during Q3 2014 and therefore its results during the three months ended September 30, 2014 and 2013 are excluded in the table above.
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