Ashford Prime Reports Fourth Quarter And Year End 2015 Results

Feb 25, 2016, 16:52 ET from Ashford Hospitality Prime, Inc.

DALLAS, Feb. 25, 2016 /PRNewswire/ -- Ashford Hospitality Prime, Inc. (NYSE: AHP) ("Ashford Prime" or the "Company") today reported the following results and performance measures for the fourth quarter ended December 31, 2015.  The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA are comparable assuming each of the hotel properties in the Company's hotel portfolio as of December 31, 2015 were owned as of the beginning of each of the periods presented.  Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2015, with the fourth quarter ended December 31, 2014 (see discussion below).  The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

OVERVIEW

  • Focused strategy of investing in luxury hotels in resort and gateway markets
  • Targets conservative leverage levels of Net Debt/EBITDA of 5.0x or less
  • Highly-aligned management team and advisory structure
  • Dividend yield of approximately 4%

FINANCIAL AND OPERATING HIGHLIGHTS

  • RevPAR for all hotels increased 4.4% to $182.46 during the fourth quarter, driven by a 4.0% increase in ADR and a 0.4% increase in occupancy
  • Adjusted EBITDA was $19.1 million, which reflected 9% growth over the prior year
  • Adjusted funds from operations (AFFO) was $0.22 per diluted share for the quarter as compared with $0.21 from the prior-year quarter
  • On December 21, 2015, the Company announced it had completed the acquisition of the award-winning 180-room Ritz-Carlton St. Thomas for $64 million
  • Capex invested in the quarter was $5.0 million, bringing the full-year total to $19.3 million.

CAPITAL STRUCTURE
At December 31, 2015, the Company had total assets of $1.4 billion in continuing operations.  As of December 31, 2015, the Company had $840 million of mortgage debt in continuing operations of which $49 million related to its joint venture partner's share of debt on the Capital Hilton and Hilton La Jolla Torrey Pines.  Ashford Prime's total combined debt had a blended average interest rate of 4.7%.

On December 21, 2015, the Company announced it had completed the acquisition of the award-winning 180-room Ritz-Carlton St. Thomas for $64 million. The property will continue to be operated as a Ritz-Carlton under a long-term management agreement with Ritz-Carlton. Concurrent with the completion of the acquisition, the Company financed the hotel with a $42 million non-recourse mortgage loan. This loan is interest only and provides for a floating interest rate of LIBOR + 4.95% with a two-year term with three, one-year extension options subject to the satisfaction of certain conditions.

PORTFOLIO REVPAR
As of December 31, 2015, the Ashford Prime portfolio consisted of direct hotel investments with twelve properties classified in continuing operations. 

  • Comparable RevPAR increased 4.4% to $182.46 for all hotels on a 4.0% increase in ADR and a 0.4% increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
The Company believes year-over-year Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons.  Given the substantial seasonality in the Company's portfolio, to help investors better understand this seasonality, the Company provides quarterly detail on its Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company's portfolio as of the end of the current period.  As the Company's portfolio mix changes from time to time so will the seasonality for Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin.  The details of the quarterly calculations for the previous four quarters for the twelve hotels included in continuing operations are provided in the table attached to this release.

COMMON STOCK DIVIDEND
On December 10, 2015, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.10 per diluted share for the Company's common stock for the fourth quarter ending December 31, 2015, payable on January 15, 2016, to shareholders of record as of December 31, 2015.  This reflects the Company's revised cash dividend policy announced on May 13, 2015, when Ashford Prime's Board of Directors increased its quarterly cash dividend from $0.05 to $0.10 per diluted share for the Company's common stock, representing a 100% increase.  The Board also approved the dividend policy for 2016, during which the Company expects to pay a quarterly cash dividend of $0.10 per share, or $0.40 per share on an annualized basis, subject to quarterly review.

"We are pleased with our fourth quarter RevPAR performance, which reflected strong contribution from our recently acquired Bardessono property in Napa Valley during our first full quarter of ownership," commented Monty J. Bennett, Ashford Prime's Chairman and Chief Executive Officer. "We were also very excited to have completed the acquisition of the Ritz-Carlton St. Thomas which further strengthens the Prime portfolio. We expect this trophy asset to be a significant contributor given that it recently underwent a comprehensive $22 million renovation that is driving strong RevPAR growth and meaningful upside potential."

Mr. Bennett concluded, "As we continue to execute on our strategy of focusing on high quality luxury assets in resort and gateway markets, the Independent Directors of our board are concurrently actively engaged in a strategic review of the Company in order to maximize value for our shareholders. This comprehensive review comprises exploring a full range of strategic alternatives, including a possible sale of the Company."

The Independent Directors are in the process of the strategic review, and there can be no assurance that the Company will enter into any transaction at this time or in the future.  The Company does not intend to make any further public comment regarding the review until it has been completed. 

INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Prime, Inc. will conduct a conference call on Friday, February 26, 2016, at 11:00 a.m. ET.  The number to call for this interactive teleconference is (719) 325-2308. A replay of the conference call will be available through Friday, March 4, 2016, by dialing (719) 457-0820 and entering the confirmation number, 4881188. 

The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2015 earnings release conference call.  The live broadcast of Ashford Hospitality Prime's quarterly conference call will be available online at the Company's web site, www.ahpreit.com on Friday, February 26, 2016, beginning at 11:00 a.m. ET.  The online replay will follow shortly after the call and continue for approximately one year.

Substantially all of our non-current assets consist of real estate investments secured by real estate.  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 industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel EBITDA.  FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us.  Neither FFO, AFFO, EBITDA, nor Hotel EBITDA represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions.  However, management believes FFO, AFFO, EBITDA, and Hotel EBITDA to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

Ashford Hospitality Prime is a real estate investment trust (REIT) focused on investing in luxury hotels located in resort and gateway markets.

Follow Chairman and CEO Monty Bennett on Twitter at www.twitter.com/MBennettAshford or @MBennettAshford.

Ashford has created an Ashford App for the hospitality REIT investor community.  The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford."

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements in this press release include, among others, statements about the implied share price for the Company's common stock.  These forward-looking statements are subject to risks and uncertainties.  When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements.  Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Prime's control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation:  general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; our ability to successfully complete and integrate acquisitions, and manage our planned growth, and the degree and nature of our competition.  These and other risk factors are more fully discussed in Ashford Prime's filings with the Securities and Exchange Commission.  EBITDA is defined as net income before interest, taxes, depreciation and amortization.  EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price.  A capitalization rate is determined by dividing the property's annual net operating income by the purchase price.  Net operating income is the property's funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues.  Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues.  Hotel EBITDA Margin is Hotel EBITDA divided by total revenues.  Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures. 

The forward-looking statements included in this press release are only made as of the date of this press release.  Investors should not place undue reliance on these forward-looking statements.  We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)







December 31,


December 31,






2015


2014

ASSETS





Cash and cash equivalents

$               105,039


$               171,439


Investments in hotel properties, net

1,091,479


990,303


Restricted cash

33,135


29,646


Accounts receivable, net of allowance of $68 and $47, respectively

13,370


12,382


Inventories

1,451


696


Note receivable

8,098


8,098


Deferred costs, net

755


1,204


Prepaid expenses

3,132


2,422


Investment in AIM REHE Fund

48,365


-


Investment in Ashford Inc., at fair value

10,377


-


Derivative assets

753


35


Other assets

2,543


1,193


Intangible asset, net

23,160


2,542


Due from related party, net

371


541


Due from third-party hotel managers

10,722


5,504










 

     Total assets

$            1,352,750


$            1,226,005









LIABILITIES AND EQUITY




Liabilities:





Indebtedness, net

$               835,592


$               761,727


Accounts payable and accrued expenses

43,568


29,273


Dividends payable

3,439


1,425


Unfavorable management contract liabilities

158


316


Due to Ashford Trust OP, net

528


896


Due to Ashford Inc.

6,369


2,546


Due to third-party hotel managers

1,158


954


Intangible liability, net

3,682


3,739


Other liabilities

1,181


1,131










 

     Total liabilities

895,675


802,007









5.50% Series B cumulative convertible preferred stock, $0.01 par value, 2,600,000 shares issued and





outstanding at December 31, 2015

62,248


-

Redeemable noncontrolling interests in operating partnership

61,781


149,555









Equity:






 

     Common stock, $0.01 par value, 200,000,000 shares authorized, 28,471,775 and 24,464,163 shares issued and





 

         outstanding at December 31, 2015 and December 31, 2014, respectively

285


245


 

     Additional paid-in capital

438,347


376,869


 

     Accumulated deficit

(99,773)


(98,210)


 

         Total stockholders' equity of the Company

338,859


278,904


Noncontrolling interest in consolidated entities

(5,813)


(4,461)










 

     Total equity

333,046


274,443










 

         Total liabilities and equity

$            1,352,750


$            1,226,005

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)






 Three Months Ended


 Year Ended





 December 31,


 December 31,





2015


2014


2015


2014

REVENUE









Rooms

$                 62,575


$                 55,011


$               255,443


$               226,495


Food and beverage

21,526


18,366


79,894


67,854


Other

4,023


3,350


14,061


12,844














Total hotel revenue

88,124


76,727


349,398


307,193


Other

36


24


147


115














Total revenue

88,160


76,751


349,545


307,308












EXPENSES









Hotel operating expenses










Rooms

14,446


13,072


56,341


51,636



Food and beverage

14,609


11,920


53,535


44,297



Other expenses

24,337


20,515


93,742


80,593



Management fees

3,485


3,117


14,049


12,525















Total hotel operating expenses

56,877


48,624


217,667


189,051













Property taxes, insurance and other

4,736


4,047


18,517


16,174


Depreciation and amortization

11,440


10,550


43,824


40,686


Advisory services fee:










Base advisory fee

2,135


2,281


8,648


8,739



Incentive fee

3,822


-


3,822


-



Reimbursable expenses

411


433


1,827


1,690



Non-cash stock/unit-based compensation

1,745


564


3,592


2,105













Transaction costs

283


-


538


1,871


Corporate, general and administrative:










Non-cash stock/unit-based compensation

-


-


254


246



Other general and administrative

1,324


789


4,880


2,996















Total operating expenses

82,773


67,288


303,569


263,558












OPERATING INCOME

5,387


9,463


45,976


43,750













Equity in earnings (loss) of unconsolidated entity

1,292


-


(2,927)


-


Interest income

13


7


34


27


Other income

-


-


1,233


-


Interest expense

(9,029)


(9,372)


(35,254)


(37,203)


Amortization of loan costs

(740)


(500)


(2,575)


(1,828)


Write-off of loan costs and exit fees

-


-


(54)


-


Unrealized loss on investments

(1,988)


-


(7,609)


-


Unrealized loss on derivatives

(1,151)


(48)


(3,252)


(111)












INCOME (LOSS) BEFORE INCOME TAXES

(6,216)


(450)


(4,428)


4,635


Income tax (expense) benefit

108


(475)


(263)


(1,097)












NET INCOME (LOSS)

(6,108)


(925)


(4,691)


3,538

Income from consolidated entities attributable to noncontrolling interest

(1,346)


(1,844)


(2,414)


(1,103)

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

1,064


717


393


(496)












NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

(6,390)


(2,052)


(6,712)


1,939

Preferred dividends

(893)


-


(1,986)


-

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$                 (7,283)


$                 (2,052)


$                 (8,698)


$                   1,939












INCOME (LOSS) PER SHARE – BASIC AND DILUTED









Basic:





















Net income (loss) attributable to common stockholders

$                   (0.26)


$                   (0.08)


$                   (0.34)


$                     0.08














Weighted average common shares outstanding – basic

28,331


24,954


25,888


24,473













Diluted:





















Net income (loss) attributable to common stockholders

$                   (0.26)


$                   (0.08)


$                   (0.34)


$                     0.07














Weighted average common shares outstanding – diluted

28,331


24,954


25,888


33,325













Dividends declared per common share:

$                     0.10


$                     0.05


$                     0.35


$                     0.20












Amounts attributable to common stockholders:









Net income (loss) attributable to the Company

$                 (6,390)


$                 (2,052)


$                 (6,712)


$                   1,939


Preferred dividends

(893)


-


(1,986)


-


Net income (loss) attributable to common stockholders

$                 (7,283)


$                 (2,052)


$                 (8,698)


$                   1,939

 

 

 

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

 RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA

 (in thousands)

 (unaudited)














 Three Months Ended


 Year Ended




 December 31,


 December 31,




2015


2014


2015


2014











 Net income (loss)

$              (6,108)


$                 (925)


$              (4,691)


$               3,538

 Income from consolidated entities attributable to noncontrolling interest

(1,346)


(1,844)


(2,414)


(1,103)

 Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

1,064


717


393


(496)

 Net income (loss) attributable to the Company

(6,390)


(2,052)


(6,712)


1,939












Interest income

(13)


(7)


(34)


(26)


Interest expense and amortization of loan costs

9,385


9,452


36,309


37,188


Depreciation and amortization

10,729


9,778


40,950


37,493


Income tax expense

(108)


475


263


1,097


Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

(1,064)


(717)


(393)


496





















 EBITDA available to the Company and OP unitholders

12,539


16,929


70,383


78,187












Amortization of unfavorable management contract liabilities

(39)


(39)


(158)


(158)


Write-off of loan costs and exit fees

-


-


54


-


Transaction costs

378


-


633


1,871


Gain on insurance settlements

(21)


(23)


(21)


(23)


Unrealized loss on investments

1,988


-


7,609


-


Unrealized loss on derivatives

1,151


48


3,248


111


Other income (1)

-


-


(1,233)


-


Compensation adjustment related to modified employment terms

-


-


-


573


Non-cash, non-employee stock/unit-based compensation

1,745


560


3,846


1,778


Strategic alternatives and other costs

61


-


973


-


Advisory services incentive fee (2)

2,548


-


2,548


-


Company's portion of unrealized (gain) loss of AIM REHE Fund

(1,292)


-


2,927


-











 Adjusted EBITDA available to the Company and OP unitholders

$             19,058


$             17,475


$             90,809


$             82,339











NOTES:









(1)

Other income, primarily consisting of net realized gain on marketable securities is excluded from Adjusted EBITDA. 

(2)

The incentive fee is payable to Ashford Inc. in three annual installments. The deferred portion related to the second and third payments is excluded from Adjusted EBITDA on this schedule and will be included in future periods.





















 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

 RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO

 (in thousands, except per share amounts)

 (unaudited)














 Three Months Ended


 Year Ended




 December 31,


 December 31,




2015


2014


2015


2014











 Net income (loss)

$              (6,108)


$                 (925)


$              (4,691)


$               3,538

 Income from consolidated entities attributable to noncontrolling interest

(1,346)


(1,844)


(2,414)


(1,103)

 Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

1,064


717


393


(496)

 Preferred dividends

(893)


-


(1,986)


-

 Net income (loss) attributable to common stockholders

(7,283)


(2,052)


(8,698)


1,939












Depreciation and amortization on real estate

10,729


9,778


40,950


37,493


Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

(1,064)


(717)


(393)


496





















 FFO available to common stockholders and OP unitholders

2,382


7,009


31,859


39,928












Preferred dividends

893


-


1,986


-


Unrealized loss on investments

1,988


-


7,609


-


Unrealized loss on derivatives

1,151


48


3,248


111


Other income (1)

-


-


(1,233)


-


Transaction costs

378


-


633


1,871


Gain on insurance settlements

(21)


(23)


(21)


(23)


Strategic alternatives and other costs

61


-


973


-


Compensation adjustment related to modified employment terms

-


-


-


573


Write-off of loan costs and exit fees

-


-


54


-


Advisory services incentive fee (2)

2,548


-


2,548


-


Company's portion of unrealized (gain) loss of AIM REHE Fund

(1,292)


-


2,927


-











 Adjusted FFO available to the Company and OP unitholders

$               8,088


$               7,034


$             50,583


$             42,460











 Adjusted FFO per diluted share available to common stockholders and OP unitholders

$                 0.22


$                 0.21


$                 1.46


$                 1.27











 Weighted average diluted shares

36,091


34,068


34,542


33,421











NOTES:








(1)

Other income, primarily consisting of net realized gain/loss on marketable securities is excluded from Adjusted FFO. 

(2)

The incentive fee is payable to Ashford Inc. in three annual installments. The deferred portion related to the second and third payments is excluded from Adjusted FFO on this schedule and will be included in future periods.

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

DECEMBER 31, 2015

(dollars in thousands)

(unaudited)




























 Comparable


 Comparable







 Fixed-Rate


 Floating-Rate


 Total


 TTM Hotel


 TTM EBITDA

Indebtedness


Maturity


Interest Rate


 Debt


 Debt


 Debt


EBITDA (5)


 Debt Yield
















 GACC Sofitel - 1 hotel


March 2016


LIBOR + 2.30%


$                      -


$              80,000

(3)

$              80,000


$                8,360


10.5%

 Senior credit facility - Various


November 2016


LIBOR + 2.25% to 3.75%


-


-

(1)

-


N/A


N/A

 Credit Agricole Pier House - 1 hotel


March 2017


LIBOR + 2.25% to 2.50%


-


70,000

(2)

70,000


9,728


13.9%

 Wachovia Philly CY - 1 hotel


April 2017


5.91%


33,381


-


33,381


12,518


37.5%

 Wachovia 3 - 2 hotels


April 2017


5.95%


122,374


-


122,374


20,249


16.5%

 Wachovia 7 - 3 hotels


April 2017


5.95%


249,020


-


249,020


31,582


12.7%

 Column Financial - 1 hotel


December 2017


LIBOR + 4.95%


-


40,000

(3)

40,000


3,845


9.6%

 Apollo - 1 hotel


December 2017


LIBOR + 4.95%


-


42,000

(3)

42,000


9,156


21.8%

 TIF Philly CY - 1 hotel


June 2018


12.85%


8,098


-


8,098


N/A


N/A

 Aareal - 2 hotels


November 2019


LIBOR + 2.65%


-


195,359

(4)

195,359


27,818


14.2%
















 Total






$            412,873


$            427,359


$            840,232


$            123,256


14.7%
















 Percentage






49.1%


50.9%


100.0%




















 Weighted average interest rate






6.08%


3.39%


4.71%




















All indebtedness is non-recourse with the exception of the senior credit facility.



























(1) This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2016.









(2)  On March 7, 2015, we refinanced our $69.0 million mortgage loan due September 2015 with a $70.0 million loan due March 2017 with three one-year extension options.  The new loan provides for a floating interest rate of LIBOR + 2.25%. 

(3) This mortgage loan has three one-year extension options subject to satisfaction of certain conditions.











(4) This mortgage loan has two one-year extension options subject to satisfaction of certain conditions. 











(5) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA. 













 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

 INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

 DECEMBER 31, 2015

 (in thousands)

 (unaudited)




































2016


2017


2018


2019


2020


 Thereafter


 Total

















 Senior credit facility - Various

$               -


$               -


$               -


$               -


$               -


$                 -


$               -

 Wachovia Philly CY - 1 hotel

-


32,532


-


-


-


-


32,532

 Wachovia 3 - 2 hotels

-


119,245


-


-


-


-


119,245

 Wachovia 7 - 3 hotels

-


242,202


-


-


-


-


242,202

 TIF Philly CY - 1 hotel

-


-


8,098


-


-


-


8,098

 GACC Sofitel - 1 hotel

-


-


-


80,000


-


-


80,000

 Credit Agricole Pier House - 1 hotel

-


-


-


-


70,000


-


70,000

 Column Financial - 1 hotel

-


-


-


-


40,000


-


40,000

 Apollo - 1 hotel

-


-


-


-


42,000


-


42,000

 Aareal - 2 hotels

-


-


-


-


-


177,486


177,486

















 Principal due in future periods

$               -


$     393,979


$         8,098


$       80,000


$     152,000


$        177,486


$     811,563

















 Scheduled amortization payments remaining

8,856


7,526


2,939


3,120


3,312


2,916


28,669

















 Total indebtedness

$         8,856


$     401,505


$       11,037


$       83,120


$     155,312


$        180,402


$     840,232

















 

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS

(unaudited)







































Three Months Ended





December 31,





Actual


Pre-acquisition


Comparable


Actual


Pre-acquisition (A)


Comparable


Comparable





2015


2015


2015


2014


2014


2014


% Variance



















ALL HOTELS:

















Rooms revenue (in thousands)

$        62,575


$                3,765


$      66,340


$        55,011


$                      8,488


$      63,499


4.47%




RevPAR

$        178.74


$              278.91


$      182.46


$        161.30


$                    381.27


$      174.78


4.39%




Occupancy

78.59%


72.02%


78.34%


79.01%


62.98%


78.03%


0.40%




ADR

$        227.45


$              387.25


$      232.91


$        204.15


$                    605.41


$      224.00


3.98%







































Year Ended





December 31,





Actual


Pre-acquisition


Comparable


Actual


Pre-acquisition (A)


Comparable


Comparable





2015


2015


2015


2014


2014


2014


% Variance



















ALL HOTELS:

















Rooms revenue (in thousands)

$      255,443


$              32,154


$    287,597


$      226,495


$                    41,250


$    267,745


7.41%




RevPAR

$        186.76


$              432.43


$      199.43


$        171.37


$                    346.29


$      185.83


7.32%




Occupancy

82.32%


79.67%


82.19%


81.62%


70.12%


80.67%


1.88%




ADR

$        226.87


$              542.81


$      242.66


$        209.96


$                    493.85


$      230.36


5.34%



















NOTES:
















(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2015 were owned as of the 




beginning of each of the periods presented.
















(2)

All pre-acquisition information was obtained from the prior owner.  The Company performed a limited review of the information as part of its analysis of the acquisition.



















FOOTNOTES:
















(A)

These amounts include immaterial comparability adjustments to conform the Company's 2014 actual amounts to the industry's Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.


 

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

 HOTEL EBITDA

 (dollars in thousands)

 (unaudited)




 ALL HOTELS:

 Three Months Ended





December 31,





Actual


Pre-acquisition


Comparable


Actual


Pre-acquisition (A)


Comparable


Comparable





2015


2015


2015


2014


2014


2014


 % Variance


 REVENUE
















 Rooms

$         62,575


$                 3,765


$       66,340


$       55,011


$                     8,488


$       63,499


4.5%



 Food and beverage

21,526


2,537


24,063


18,366


4,638


23,004


4.6%



 Other

4,023


1,404


5,427


3,350


2,082


5,432


-0.1%




 Total hotel revenue

88,124


7,706


95,830


76,727


15,208


91,935


4.2%



















 EXPENSES
















 Rooms

$         14,446


$                 1,322


$       15,768


$       13,072


$                     2,027


$       15,099


4.4%



 Food and beverage

14,609


2,495


17,104


11,920


4,656


16,576


3.2%



 Other direct

1,365


747


2,112


1,459


772


2,231


-5.3%



 Other indirect 

21,086


3,019


24,105


17,789


5,655


23,444


2.8%



 Management fees, includes base and incentive fees

4,849


(42)


4,807


3,895


446


4,341


10.7%




 Total hotel operating expenses

56,355


7,541


63,896


48,135


13,556


61,691


3.6%



 Property taxes, insurance, and other

4,740


166


4,906


4,065


372


4,437


10.6%


 HOTEL EBITDA

27,029


$                     (1)


27,028


24,527


1,280


25,807


4.7%




 Hotel EBITDA Margin

30.67%


-0.01%


28.20%


31.52%


8.42%


28.07%


0.13%




















 Minority interest in earnings of consolidated joint ventures

1,339




1,339


1,427




1,427


-6.2%


 HOTEL EBITDA
















 excluding minority interest in joint ventures

$       25,690


$                     (1)


$       25,689


$     23,100


$                   1,281


$       24,380


5.4%




































 ALL HOTELS:

 Year Ended





December 31,





Actual


Pre-acquisition


Comparable


Actual


Pre-acquisition (A)


Comparable


Comparable





2015


2015


2015


2014


2014


2014


 % Variance


 REVENUE
















 Rooms

$       255,443


$               32,154


$     287,597


$     226,495


$                   41,250


$     267,745


7.4%



 Food and beverage

79,894


16,336


96,230


67,854


22,814


90,667


6.1%



 Other

14,061


8,695


22,756


12,844


9,600


22,444


1.4%




 Total hotel revenue

349,398


57,185


406,583


307,193


73,664


380,856


6.8%



















 EXPENSES
















 Rooms

$         56,341


$                 8,882


$       65,223


$       51,636


$                     9,858


$       61,494


6.1%



 Food and beverage

53,535


14,614


68,149


44,297


20,751


65,048


4.8%



 Other direct

4,476


3,957


8,433


5,466


3,803


9,269


-9.0%



 Other indirect 

80,211


17,853


98,064


68,420


24,479


92,898


5.6%



 Management fees, includes base and incentive fees

21,847


1,869


23,716


17,924


2,280


20,204


17.4%




 Total hotel operating expenses

216,410


47,175


263,585


187,743


61,171


248,913


5.9%



 Property taxes, insurance, and other

18,453


1,289


19,742


16,163


2,214


18,377


7.4%


 HOTEL EBITDA

114,535


8,721


123,256


103,287


10,279


113,566


8.5%




 Hotel EBITDA Margin

32.78%


15.25%


30.32%


33.62%


13.95%


29.82%


0.50%




















 Minority interest in earnings of consolidated joint ventures

6,954




6,954


6,531




6,531


6.5%


 HOTEL EBITDA
















 excluding minority interest in joint ventures

$     107,581


$               8,721


$     116,302


$     96,756


$                 10,279


$     107,035


8.7%



















NOTES:

















(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2015 were owned as of the






beginning of each of the periods presented.
















(2)

All pre-acquisition information was obtained from the prior owner.  The Company performed a limited review of the information as part of its analysis of the acquisition.





Adjustments have been made to the pre-acquisition results as indicated below:














(a) Management fee expense was adjusted to reflect current contractual rates















(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa







(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.































FOOTNOTES:
















(A)

These amounts include immaterial comparability adjustments to conform the Company's 2014 actual amounts to the industry's Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.


 

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)


THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY FOR THE TWELVE PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO:








































Three Months Ended December 31, 2015




Actual


Pre-acquisition


Comparable


Actual


Pre-acquisition (A)


Comparable


Comparable




2015


2015


2015


2014


2014


2014


% Variance

















CAPITAL HILTON WASHINGTON DC















Selected Financial Information:
















Rooms Revenue


$         8,738


$             -


$       8,738


$         8,795


$        (64)


$       8,731


0.08%


Total Hotel Revenue


$       12,440


$             -


$     12,440


$       12,272


$        299


$     12,571


-1.04%


Hotel EBITDA


$         3,033


$             -


$       3,033


$         3,549


$             -


$       3,549


-14.54%


Hotel EBITDA Margin


24.38%


-


24.38%


28.92%


-


28.23%


-3.85%


Selected Operating Information:
















RevPAR


$       172.70


$             -


$    172.70


$      174.77


$      (1.28)


$    173.49


-0.46%


Occupancy


79.48%


-


79.48%


81.58%


-


81.58%


-2.57%


ADR


$       217.29


$             -


$    217.29


$      214.25


$      (1.57)


$    212.68


2.17%

































LA JOLLA HILTON TORREY PINES
















Selected Financial Information:
















Rooms Revenue


$         5,072


$             -


$       5,072


$         4,734


$          (3)


$       4,731


7.21%


Total Hotel Revenue


$         9,266


$             -


$       9,266


$         8,546


$        215


$       8,761


5.76%


Hotel EBITDA


$         2,321


$             -


$       2,321


$         2,161


$             -


$       2,161


7.40%


Hotel EBITDA Margin


25.05%


-


25.05%


25.29%


-


24.67%


0.38%


Selected Operating Information:
















RevPAR


$       139.93


$             -


$    139.93


$      130.60


$      (0.09)


$    130.51


7.22%


Occupancy


83.68%


-


83.68%


84.67%


-


84.67%


-1.17%


ADR


$       167.22


$             -


$    167.22


$      154.24


$      (0.11)


$    154.13


8.49%

































CHICAGO SOFITEL WATER TOWER















Selected Financial Information:
















Rooms Revenue


$         6,605


$             -


$       6,605


$         7,144


$             -


$       7,144


-7.54%


Total Hotel Revenue


$         9,350


$             -


$       9,350


$       10,303


$             -


$     10,303


-9.25%


Hotel EBITDA


$         2,093


$             -


$       2,093


$         2,899


$             -


$       2,899


-27.80%


Hotel EBITDA Margin


22.39%


-


22.39%


28.14%


-


28.14%


-5.75%


Selected Operating Information:
















RevPAR


$       173.00


$             -


$    173.00


$      187.11


$             -


$    187.11


-7.54%


Occupancy


77.84%


-


77.84%


78.81%


-


78.81%


-1.22%


ADR


$       222.24


$             -


$    222.24


$      237.43


$             -


$    237.43


-6.40%

































BARDESSONO HOTEL AND SPA
















Selected Financial Information:
















Rooms Revenue


$         3,290


$             -


$       3,290


$             -


$      3,107


$       3,107


5.89%


Total Hotel Revenue


$         4,740


$             -


$       4,740


$             -


$      4,390


$       4,390


7.97%


Hotel EBITDA


$         1,193


$             -


$       1,193


$             -


$         902


$          902


32.23%


Hotel EBITDA Margin


25.17%


-


25.17%


-


20.55%


20.55%


4.62%


Selected Operating Information:
















RevPAR


$       576.80


$             -


$    576.80


$             -


$    544.79


$    544.79


5.88%


Occupancy


77.98%


-


77.98%


-


77.28%


77.28%


0.91%


ADR


$       739.68


$             -


$    739.68


$             -


$    704.96


$    704.96


4.92%

































KEY WEST PIER HOUSE RESORT
















Selected Financial Information:
















Rooms Revenue


$         4,581


$             -


$       4,581


$         4,203


$             -


$       4,203


8.99%


Total Hotel Revenue


$         5,691


$             -


$       5,691


$         5,365


$             -


$       5,365


6.08%


Hotel EBITDA


$         2,384


$             -


$       2,384


$         2,234


$             -


$       2,234


6.71%


Hotel EBITDA Margin


41.89%


-


41.89%


41.64%


-


41.64%


0.25%


Selected Operating Information:
















RevPAR


$       350.64


$             -


$    350.64


$      321.70


$             -


$    321.70


9.00%


Occupancy


89.11%


-


89.11%


86.28%


-


86.28%


3.27%


ADR


$       393.50


$             -


$    393.50


$      372.84


$             -


$    372.84


5.54%

































PHILADELPHIA COURTYARD DOWNTOWN















Selected Financial Information:
















Rooms Revenue


$         6,731


$             -


$       6,731


$         6,355


$             -


$       6,355


5.92%


Total Hotel Revenue


$         8,310


$             -


$       8,310


$         7,867


$          77


$       7,944


4.61%


Hotel EBITDA


$         3,252


$             -


$       3,252


$         2,966


$             -


$       2,966


9.64%


Hotel EBITDA Margin


39.13%


-


39.13%


37.70%


-


37.34%


1.80%


Selected Operating Information:
















RevPAR


$       146.62


$             -


$    146.62


$      138.42


$             -


$    138.42


5.92%


Occupancy


80.63%


-


80.63%


79.89%


-


79.89%


0.93%


ADR


$       181.85


$             -


$    181.85


$      173.27


$             -


$    173.27


4.95%

































PLANO MARRIOTT LEGACY TOWN CENTER















Selected Financial Information:
















Rooms Revenue


$         4,811


$             -


$       4,811


$         4,404


$             -


$       4,404


9.24%


Total Hotel Revenue


$         7,858


$             -


$       7,858


$         7,500


$        180


$       7,680


2.32%


Hotel EBITDA


$         2,568


$             -


$       2,568


$         2,556


$             -


$       2,556


0.47%


Hotel EBITDA Margin


32.68%


-


32.68%


34.08%


-


33.28%


-0.60%


Selected Operating Information:
















RevPAR


$       129.44


$             -


$    129.44


$      118.49


$             -


$    118.49


9.24%


Occupancy


66.92%


-


66.92%


66.22%


-


66.22%


1.06%


ADR


$       193.43


$             -


$    193.43


$      178.93


$             -


$    178.93


8.11%

































SAN FRANCISCO COURTYARD DOWNTOWN















Selected Financial Information:
















Rooms Revenue


$         8,252


$             -


$       8,252


$         8,355


$             -


$       8,355


-1.23%


Total Hotel Revenue


$         9,653


$             -


$       9,653


$         9,698


$          62


$       9,760


-1.10%


Hotel EBITDA


$         3,013


$             -


$       3,013


$         3,131


$             -


$       3,131


-3.77%


Hotel EBITDA Margin


31.21%


-


31.21%


32.29%


-


32.08%


-0.87%


Selected Operating Information:
















RevPAR


$       221.48


$             -


$    221.48


$      224.22


$             -


$    224.22


-1.22%


Occupancy


86.25%


-


86.25%


89.55%


-


89.55%


-3.68%


ADR


$       256.79


$             -


$    256.79


$      250.39


$             -


$    250.39


2.55%

































SEATTLE COURTYARD DOWNTOWN















Selected Financial Information:
















Rooms Revenue


$         2,807


$             -


$       2,807


$         2,690


$             -


$       2,690


4.35%


Total Hotel Revenue


$         3,382


$             -


$       3,382


$         3,181


$            7


$       3,188


6.09%


Hotel EBITDA


$         1,328


$             -


$       1,328


$         1,259


$             -


$       1,259


5.48%


Hotel EBITDA Margin


39.27%


-


39.27%


39.58%


-


39.49%


-0.23%


Selected Operating Information:
















RevPAR


$       122.07


$             -


$    122.07


$      116.96


$             -


$    116.96


4.37%


Occupancy


74.76%


-


74.76%


74.26%


-


74.26%


0.68%


ADR


$       163.27


$             -


$    163.27


$      157.51


$             -


$    157.51


3.66%

































SEATTLE MARRIOTT WATERFRONT















Selected Financial Information:
















Rooms Revenue


$         5,550


$             -


$       5,550


$         5,050


$             -


$       5,050


9.90%


Total Hotel Revenue


$         8,033


$             -


$       8,033


$         6,969


$        116


$       7,085


13.38%


Hotel EBITDA


$         2,919


$             -


$       2,919


$         2,521


$             -


$       2,521


15.79%


Hotel EBITDA Margin


36.34%


-


36.34%


36.17%


-


35.58%


0.76%


Selected Operating Information:
















RevPAR


$       168.50


$             -


$    168.50


$      153.33


$             -


$    153.33


9.89%


Occupancy


76.52%


-


76.52%


72.33%


-


72.33%


5.78%


ADR


$       220.21


$             -


$    220.21


$      211.98


$             -


$    211.98


3.88%

































ST. THOMAS RITZ-CARLTON
















Selected Financial Information:
















Rooms Revenue


$         2,642


$      3,765


$       6,407


$             -


$     5,449


$       5,449


17.58%


Total Hotel Revenue


$         3,884


$      7,706


$     11,590


$             -


$     9,729


$       9,729


19.13%


Hotel EBITDA


$         1,489


$            (1)


$       1,488


$             -


$        378


$          378


293.62%


Hotel EBITDA Margin


38.34%


-0.01%


12.84%


-


3.89%


3.89%


8.95%


Selected Operating Information:
















RevPAR


$       863.30


$     278.91


$    386.89


$             -


$    329.02


$    329.02


17.59%


Occupancy


73.17%


72.02%


72.23%


-


58.05%


58.05%


24.44%


ADR


$    1,179.85


$     387.25


$    535.61


$             -


$    566.80


$    566.80


-5.50%

































TAMPA RENAISSANCE
















Selected Financial Information:
















Rooms Revenue


$         3,495


$             -


$       3,495


$         3,282


$             -


$       3,282


6.49%


Total Hotel Revenue


$         5,517


$             -


$       5,517


$         5,026


$        132


$       5,158


6.96%


Hotel EBITDA


$         1,436


$             -


$       1,436


$         1,251


$             -


$       1,251


14.79%


Hotel EBITDA Margin


26.03%


-


26.03%


24.89%


-


24.25%


1.78%


Selected Operating Information:
















RevPAR


$       129.65


$             -


$    129.65


$      121.74


$             -


$    121.74


6.50%


Occupancy


74.55%


-


74.55%


77.17%


-


77.17%


-3.40%


ADR


$       173.90


$             -


$    173.90


$      157.75


$             -


$    157.75


10.24%

































PRIME PROPERTIES TOTAL (12)
















Selected Financial Information:
















Rooms Revenue


$       62,575


$      3,765


$     66,340


$       55,011


$     8,488


$     63,499


4.47%


Total Hotel Revenue


$       88,124


$      7,706


$     95,830


$       76,727


$   15,208


$     91,935


4.24%


Hotel EBITDA


$       27,029


$            (1)


$     27,028


$       24,527


$     1,280


$     25,807


4.73%


Hotel EBITDA Margin


30.67%


-0.01%


28.20%


31.52%


8.42%


28.07%


0.13%


Selected Operating Information:
















RevPAR


$       178.74


$     278.91


$    182.46


$      161.30


$   381.27


$    174.78


4.39%


Occupancy


78.59%


72.02%


78.34%


79.01%


62.98%


78.03%


0.40%


ADR


$       227.45


$      387.25


$    232.91


$      204.15


$   605.41


$    224.00


3.98%

















NOTES:















(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2015 were owned as of the


beginning of each of the periods presented.














(2)

All pre-acquisition information was obtained from the prior owner.  The Company performed a limited review of the information as part of its analysis of the acquisition.


Adjustments have been made to the pre-acquisition results as indicated below:












(a) Management fee expense was adjusted to reflect current contractual rates












(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa





(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.



























FOOTNOTES:















(A)

These amounts include immaterial comparability adjustments to conform the Company's 2014 actual amounts to the industry's Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

 

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED  FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY FOR THE TWELVE PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO:













































Year Ended December 31,




Actual


Pre-acquisition


Comparable


Actual


Pre-acquisition (A)


Comparable


Comparable




2015


2015


2015


2014


2014


2014


% Variance

















CAPITAL HILTON WASHINGTON DC















Selected Financial Information:
















Rooms Revenue


$       38,045


$             -


$     38,045


$       37,060


$       (239)


$     36,820


3.33%


Total Revenue


$       54,423


$             -


$     54,423


$       50,920


$      1,207


$     52,127


4.40%


Hotel EBITDA


$       15,297


$             -


$     15,297


$       15,183


$             -


$     15,183


0.75%


Hotel EBITDA Margin


28.11%


-


28.11%


29.82%


-


29.13%


-1.02%


Selected Operating Information:
















RevPAR


$       189.88


$             -


$    189.88


$       186.11


$     (1.20)


$    184.91


2.69%


Occupancy


85.43%


-


85.43%


84.76%


-


84.76%


0.79%


ADR


$       222.26


$             -


$    222.26


$       219.56


$     (1.42)


$    218.15


1.88%

































LA JOLLA HILTON TORREY PINES
















Selected Financial Information:
















Rooms Revenue


$       23,463


$             -


$     23,463


$       21,673


$        (99)


$     21,574


8.76%


Total Revenue


$       40,541


$             -


$     40,541


$       36,393


$        794


$     37,187


9.02%


Hotel EBITDA


$       12,521


$             -


$     12,521


$       10,942


$             -


$     10,942


14.43%


Hotel EBITDA Margin


30.88%


-


30.88%


30.07%


-


29.42%


1.46%


Selected Operating Information:
















RevPAR


$       163.15


$             -


$    163.15


$       150.71


$      (0.69)


$    150.02


8.75%


Occupancy


85.35%


-


85.35%


84.50%


-


84.50%


1.00%


ADR


$       191.16


$             -


$    191.16


$       178.35


$      (0.81)


$    177.54


7.67%

































CHICAGO SOFITEL WATER TOWER















Selected Financial Information:
















Rooms Revenue


$       26,980


$             -


$     26,980


$       25,534


$     1,834


$     27,368


-1.42%


Total Revenue


$       37,322


$             -


$     37,322


$       36,635


$     3,130


$     39,765


-6.14%


Hotel EBITDA


$         8,360


$             -


$       8,360


$       11,334


$      (428)


$     10,906


-23.34%


Hotel EBITDA Margin


22.40%


-


22.40%


30.94%


-13.67%


27.43%


-5.03%


Selected Operating Information:
















RevPAR


$       178.11


$             -


$    178.11


$       197.84


$     81.87


$    180.68


-1.42%


Occupancy


80.03%


-


80.03%


84.21%


58.81%


80.45%


-0.53%


ADR


$       222.55


$             -


$    222.55


$       234.93


$   139.20


$    224.57


-0.90%

































BARDESSONO HOTEL AND SPA
















Selected Financial Information:
















Rooms Revenue


$         6,855


$      5,914


$     12,769


$                -


$   12,124


$     12,124


5.32%


Total Revenue


$         9,684


$      8,806


$     18,490


$                -


$   17,212


$     17,212


7.43%


Hotel EBITDA


$         2,791


$      1,054


$       3,845


$                -


$     3,733


$       3,733


3.00%


Hotel EBITDA Margin


28.82%


11.97%


20.80%


-


21.69%


21.69%


-0.89%


Selected Operating Information:
















RevPAR


$       628.17


$    504.69


$    564.23


$                -


$   535.76


$    535.76


5.31%


Occupancy


79.69%


77.82%


78.72%


-


79.09%


79.09%


-0.46%


ADR


$       788.25


$    648.53


$    716.73


$                -


$   677.44


$    677.44


5.80%

































KEY WEST PIER HOUSE RESORT
















Selected Financial Information:
















Rooms Revenue


$       18,549


$             -


$     18,549


$       13,877


$    3,416


$     17,293


7.26%


Total Revenue


$       23,192


$             -


$     23,192


$       17,669


$    4,260


$     21,929


5.76%


Hotel EBITDA


$         9,728


$             -


$       9,728


$         6,701


$    1,938


$       8,639


12.61%


Hotel EBITDA Margin


41.95%


-


41.95%


37.93%


45.49%


39.40%


2.55%


Selected Operating Information:
















RevPAR


$       357.88


$             -


$    357.88


$       319.37


$  407.75


$    333.66


7.26%


Occupancy


90.15%


-


90.15%


85.18%


93.63%


86.55%


4.16%


ADR


$       396.99


$             -


$    396.99


$       374.92


$  435.51


$    385.52


2.98%

































PHILADELPHIA COURTYARD DOWNTOWN















Selected Financial Information:
















Rooms Revenue


$       26,461


$             -


$     26,461


$       23,997


$             -


$     23,997


10.27%


Total Revenue


$       32,044


$             -


$     32,044


$       29,379


$        273


$     29,652


8.07%


Hotel EBITDA


$       12,518


$             -


$     12,518


$       11,312


$          (1)


$     11,311


10.67%


Hotel EBITDA Margin


39.07%


-


39.07%


38.50%


-


38.15%


0.92%


Selected Operating Information:
















RevPAR


$       145.28


$             -


$    145.28


$       131.81


$             -


$    131.81


10.22%


Occupancy


82.62%


-


82.62%


79.40%


-


79.40%


4.05%


ADR


$       175.85


$             -


$    175.85


$       166.01


$             -


$    166.01


5.93%

































PLANO MARRIOTT LEGACY TOWN CENTER















Selected Financial Information:
















Rooms Revenue


$       20,263


$             -


$     20,263


$       18,222


$             -


$     18,222


11.20%


Total Revenue


$       32,033


$             -


$     32,033


$       28,879


$         594


$     29,473


8.69%


Hotel EBITDA


$       11,087


$             -


$     11,087


$         9,876


$             -


$       9,876


12.26%


Hotel EBITDA Margin


34.61%


-


34.61%


34.20%


-


33.51%


1.10%


Selected Operating Information:
















RevPAR


$       137.41


$             -


$    137.41


$       123.57


$             -


$    123.57


11.20%


Occupancy


71.03%


-


71.03%


69.12%


-


69.12%


2.76%


ADR


$       193.45


$             -


$    193.45


$       178.78


$             -


$    178.78


8.21%

































SAN FRANCISCO COURTYARD DOWNTOWN















Selected Financial Information:
















Rooms Revenue


$       35,988


$             -


$     35,988


$       33,984


$             -


$     33,984


5.90%


Total Revenue


$       41,938


$             -


$     41,938


$       39,148


$        238


$     39,386


6.48%


Hotel EBITDA


$       13,688


$             -


$     13,688


$       13,065


$            1


$     13,066


4.76%


Hotel EBITDA Margin


32.64%


-


32.64%


33.37%


-


33.17%


-0.54%


Selected Operating Information:
















RevPAR


$       243.45


$             -


$    243.45


$       229.90


$             -


$    229.90


5.89%


Occupancy


91.10%


-


91.10%


89.89%


-


89.89%


1.34%


ADR


$       267.24


$             -


$    267.24


$       255.75


$             -


$    255.75


4.49%

































SEATTLE COURTYARD DOWNTOWN















Selected Financial Information:
















Rooms Revenue


$       14,153


$             -


$     14,153


$       13,194


$             -


$     13,194


7.27%


Total Revenue


$       16,259


$             -


$     16,259


$       15,339


$          36


$     15,375


5.75%


Hotel EBITDA


$         6,561


$             -


$       6,561


$         6,209


$             -


$       6,209


5.67%


Hotel EBITDA Margin


40.35%


-


40.35%


40.48%


-


40.38%


-0.03%


Selected Operating Information:
















RevPAR


$       155.10


$             -


$    155.10


$      144.59


$             -


$    144.59


7.27%


Occupancy


79.39%


-


79.39%


80.35%


-


80.35%


-1.19%


ADR


$       195.37


$             -


$    195.37


$      179.94


$             -


$    179.94


8.57%

































SEATTLE MARRIOTT WATERFRONT















Selected Financial Information:
















Rooms Revenue


$       27,419


$             -


$     27,419


$       25,044


$             -


$     25,044


9.48%


Total Revenue


$       36,144


$             -


$     36,144


$       32,103


$        399


$     32,502


11.21%


Hotel EBITDA


$       14,640


$             -


$     14,640


$       13,016


$             -


$     13,016


12.48%


Hotel EBITDA Margin


40.50%


-


40.50%


40.54%


-


40.05%


0.46%


Selected Operating Information:
















RevPAR


$       209.84


$             -


$    209.84


$      191.66


$             -


$    191.66


9.49%


Occupancy


82.22%


-


82.22%


79.67%


-


79.67%


3.20%


ADR


$       255.20


$             -


$    255.20


$      240.56


$             -


$    240.56


6.09%

































ST. THOMAS RITZ-CARLTON
















Selected Financial Information:
















Rooms Revenue


$         2,642


$    26,240


$     28,882


$             -


$   24,213


$     24,213


19.28%


Total Revenue


$         3,884


$    48,379


$     52,263


$             -


$   45,033


$     45,033


16.05%


Hotel EBITDA


$         1,489


$      7,667


$       9,156


$             -


$     5,036


$       5,036


81.80%


Hotel EBITDA Margin


38.34%


15.85%


17.52%


-


11.18%


11.18%


6.34%


Selected Operating Information:
















RevPAR


$       863.30


$    418.91


$    439.61


$             -


$   368.54


$    368.54


19.28%


Occupancy


73.17%


80.01%


79.69%


-


67.89%


67.89%


17.38%


ADR


$    1,179.85


$    523.57


$    551.63


$             -


$   542.82


$    542.82


1.62%

































TAMPA RENAISSANCE
















Selected Financial Information:
















Rooms Revenue


$       14,625


$             -


$     14,625


$       13,910


$             -


$     13,910


5.14%


Total Revenue


$       21,934


$             -


$     21,934


$       20,726


$        492


$     21,218


3.37%


Hotel EBITDA


$         5,855


$             -


$       5,855


$         5,649


$             -


$       5,649


3.65%


Hotel EBITDA Margin


26.69%


-


26.69%


27.26%


-


26.62%


0.07%


Selected Operating Information:
















RevPAR


$       136.75


$             -


$    136.75


$      130.07


$             -


$    130.07


5.14%


Occupancy


77.96%


-


77.96%


80.38%


-


80.38%


-3.00%


ADR


$       175.40


$             -


$    175.40


$      161.82


$             -


$    161.82


8.39%

































PRIME PROPERTIES TOTAL (12)
















Selected Financial Information:
















Rooms Revenue


$     255,443


$    32,154


$  287,597


$     226,495


$   41,250


$  267,745


7.41%


Total Hotel Revenue


$     349,398


$    57,185


$  406,583


$     307,193


$   73,663


$  380,856


6.76%


Hotel EBITDA


$     114,535


$      8,721


$  123,256


$     103,287


$   10,279


$  113,566


8.53%


Hotel EBITDA Margin


32.78%


15.25%


30.31%


33.62%


13.95%


29.82%


0.50%


Selected Operating Information:
















RevPAR


$       186.76


$    432.43


$    199.43


$      171.37


$   346.29


$    185.83


7.32%


Occupancy


82.32%


79.67%


82.19%


81.62%


70.12%


80.67%


1.88%


ADR


$       226.87


$    542.81


$    242.66


$      209.96


$   493.85


$    230.36


5.34%

















NOTES:















(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2015 were owned as of the


beginning of each of the periods presented.














(2)

All pre-acquisition information was obtained from the prior owner.  The Company performed a limited review of the information as part of its analysis of the acquisition.


Adjustments have been made to the pre-acquisition results as indicated below:












(a) Management fee expense was adjusted to reflect current contractual rates












(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa





(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.



























FOOTNOTES:















(A)

These amounts include immaterial comparability adjustments to conform the Company's 2014 actual amounts to the industry's Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition, which became effective January 1, 2015.

 

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)





















































THE FOLLOWING SEASONALITY TABLE REFLECTS THE TWELVE HOTELS INCLUDED IN THE COMPANY'S OPERATIONS AT DECEMBER 31, 2015:
























































































































Actual


Pre-acquisition


Comparable


Actual


Pre-acquisition


Comparable


Actual


Pre-acquisition


Comparable


Actual


Pre-acquisition


Comparable




2015


2015


2015


2015


2015


2015


2015


2015


2015


2015


2015


2015




4th Quarter


4th Quarter


4th Quarter


3rd Quarter


3rd Quarter


3rd Quarter


2nd Quarter


2nd Quarter


2nd Quarter


1st Quarter


1st Quarter


1st Quarter





















































Total Hotel Revenue

$              88,124


$             7,706


$            95,830


$              90,725


$             10,597


$          101,322


$              92,800


$           18,719


$          111,519


$              77,749


$             20,163


$            97,912

Hotel EBITDA

$              27,029


$                  (1)


$            27,028


$              30,081


$                  774


$            30,855


$              33,902


$             3,457


$            37,359


$              23,523


$               4,491


$            28,014

Hotel EBITDA Margin

30.67%


-0.01%


28.20%


33.16%


7.30%


30.45%


36.53%


18.47%


33.50%


30.26%


22.27%


28.61%



























EBITDA % of Total TTM

23.6%


0.0%


21.9%


26.3%


8.9%


25.0%


29.6%


39.6%


30.3%


20.5%


51.5%


22.7%



























JV Interests in EBITDA

$                1,339


$                     -


$              1,339


$                1,427


$                       -


$              1,427


$                2,513


$                    -


$              2,513


$                1,675


$                       -


$              1,675
























































Actual


Pre-acquisition


Comparable






















2015


2015


2015






















TTM


TTM


TTM







































































Total Hotel Revenue

$            349,398


$            57,185


$          406,583



















Hotel EBITDA

$            114,535


$              8,721


$          123,256



















Hotel EBITDA Margin

32.78%


15.25%


30.32%













































EBITDA % of Total TTM

100.0%


100.0%


100.0%













































JV Interests in EBITDA

$                6,954


$                      -


$              6,954













































NOTES:


























(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2015 were owned as of the beginning of each of the periods presented.








(2)

All pre-acquisition information was obtained from the prior owner.  The Company performed a limited review of the information as part of its analysis of the acquisition.













Adjustments have been made to the pre-acquisition results as indicated below:





















(a) Management fee expense was adjusted to reflect current contractual rates





















(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa
















(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.





















 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

TOTAL ENTERPRISE VALUE

DECEMBER 31, 2015

(in thousands, except share price)

(unaudited)






 December 31,


2015

End of quarter common shares outstanding

28,472

Partnership units outstanding (common stock equivalents)

4,375

Combined common shares and partnership units outstanding

32,847

Common stock price at quarter end

$                        14.50

Market capitalization at quarter end

$                    476,282

Series B convertible preferred stock

$                      65,000

Debt on balance sheet date

$                    840,232

Joint venture partner's share of consolidated debt

$                    (48,840)

Net working capital (see below)

$                  (168,647)

Total enterprise value (TEV)

$                 1,164,027



Ashford Inc. Investment:


Common stock owned at end of quarter

195

Common stock price at quarter end

$                        53.25

Market value of Ashford Inc. investment

$                      10,377



Cash and cash equivalents

$                    101,623

Restricted cash

31,733

Accounts receivable, net

12,594

Prepaid expenses

2,964

Investment in AIM REHE, LP

48,365

Due from affiliates, net

(5,782)

Due from third-party hotel managers, net

9,818

Market value of Ashford Inc. investment

10,377

Total current assets

$                    211,693



Accounts payable, net & accrued expenses

$                       39,607

Dividends payable

3,439

Total current liabilities

$                       43,046



Net working capital*

$                     168,647





* Includes the Company's pro rata share of net working capital in joint ventures.

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

Anticipated Capital Expenditures Calendar (a)




































2015


Proposed 2016


Rooms

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter


1st Quarter

2nd Quarter

3rd Quarter

4th Quarter



Actual

Actual

Actual

Actual


Estimated

Estimated

Estimated

Estimated

Courtyard Seattle

250

x









Hilton La Jolla Torrey Pines

394



x







Renaissance Tampa

293



x







Courtyard San Francisco

405








x


Marriott Seattle Waterfront

358









x

(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2015-2016 are included in this table.

 

 




Exhibit 1




ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES




RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA




(in thousands)




(unaudited)




































Three Months Ended December 31, 2015




Capital Hilton Washington DC


La Jolla Hilton Torrey Pines


Chicago Sofitel Water Tower


Bardessono Hotel & Spa


Key West Pier House Resort


Philadelphia Courtyard Downtown


Plano Marriott  Legacy Town Center


San Francisco Courtyard  Downtown


Seattle Courtyard  Downtown


Seattle Marriott Waterfront


St. Thomas Ritz-Carlton


Tampa Renaissance


Hotel Total


Corporate / Allocated


Ashford Hospitality Prime, Inc.

































































Net income (loss)



$         1,312


$        1,002


$        (223)


$           461


$        1,757


$          1,286


$        1,486


$       2,435


$           779


$       1,797


$       1,032


$             564


$     13,688


$         (19,796)


$        (6,108)

Income from consolidated entities attributable to noncontrolling interest



(358)


(274)


-


-


-


-


-


-


-


-


-


-


(632)


(714)


(1,346)

Net loss attributable to redeemable noncontrolling interests in operating partnership



-


-


-


-


-


-


-


-


-


-


-


-


-


1,064


1,064

Net income (loss) attributable to the Company



954


728


(223)


461


1,757


1,286


1,486


2,435


779


1,797


1,032


564


13,056


(19,446)


(6,390)

Non-property adjustments



(21)


2


1


-


-


-


-


-


(1)


-


5


-


(14)


14


-

Interest Income



-


(2)


-


-


-


(1)


-


(3)


-


(2)


(1)


-


(9)


(4)


(13)

Interest expense



-


-


516


-


-


505


-


-


-


-


104


-


1,125


7,904


9,029

Amortization of loan cost



-


-


176


-


-


8


-


-


-


-


10


-


194


546


740

Depreciation and amortization



1,562


1,499


1,584


578


662


1,448


1,035


578


533


976


114


871


11,440


-


11,440

Income tax expense (benefit)



69


(196)


-


-


-


4


-


-


-


-


37


-


(86)


(22)


(108)

Non-Hotel EBITDA ownership expense



113


16


39


154


(35)


2


47


3


17


148


188


1


693


(693)


-

(Income) loss from consolidated entities attributable to noncontrolling interest



356


274


-


-


-


-


-


-


-


-


-


-


630


(630)


-

EBITDA including amounts attributable to consolidated noncontrolling interest



3,033


2,321


2,093


1,193


2,384


3,252


2,568


3,013


1,328


2,919


1,489


1,436


27,029


(12,331)


14,698

Less: EBITDA adjustments attributable to consolidated noncontrolling interest



(360)


(351)


-


-


-


-


-


-


-


-


-


-


(711)


(384)


(1,095)

Net income (loss) attributable to redeemable noncontrolling interest in operating partnership



-


-


-


-


-


-


-


-


-


-


-


-


-


(1,064)


(1,064)

EBITDA attributable to the Company and OP unitholders



$         2,673


$        1,970


$       2,093


$         1,193


$        2,384


$          3,252


$        2,568


$       3,013


$        1,328


$       2,919


$       1,301


$          1,436


$     26,318


$         (13,779)


$        12,539

































Pre-acquisition Hotel EBITDA



-


-


-


-


-


-


-


-


-


-


(1)


-


(1)





Comparable Hotel EBITDA



$       3,033


$       2,321


$     2,093


$       1,193


$       2,384


$        3,252


$       2,568


$     3,013


$       1,328


$     2,919


$      1,488


$         1,436


$   27,028





































































NOTES:
































(1)   The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2015 were owned as of the beginning of each of the periods presented.





(2)  All pre-acquisition information was obtained from the prior owner.  The Company performed a limited review of the information as part of its analysis of the acquisition.









       Adjustments have been made to the pre-acquisition results as indicated below:


















(a) Management fee expense was adjusted to reflect current contractual rates



















(b) Lease expense was adjusted to reflect additional expense from a below market rate ground lease on the Bardessono Hotel and Spa












 

 


Exhibit 1


ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES


RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA


(in thousands)


(unaudited)
































Three Months Ended December 31, 2014


Capital Hilton Washington DC


La Jolla Hilton Torrey Pines


Chicago Sofitel Water Tower


Bardessono Hotel & Spa


Key West Pier House Resort


Philadelphia Courtyard Downtown


Plano Marriott  Legacy Town Center


San Francisco Courtyard  Downtown


Seattle Courtyard  Downtown


Seattle Marriott Waterfront


St. Thomas Ritz-Carlton


Tampa Renaissance


Hotel Total


Corporate / Allocated


Ashford Hospitality Prime, Inc.





























































Net income (loss)

$        1,467


$           543


$         674


$             -


$        1,604


$           984


$        1,548


$       2,575


$           774


$       1,528


$           -


$             673


$     12,370


$         (13,295)


$           (925)

Income from consolidated entities attributable to noncontrolling interest

(394)


(159)


-


-


-


-


-


-


-


-


-


-


(553)


(1,291)


(1,844)

Net loss attributable to redeemable noncontrolling interests in operating partnership

-


-


-


-


-


-


-


-


-


-


-


-


-


717


717

Net income (loss) attributable to the Company

1,073


384


674


-


1,604


984


1,548


2,575


774


1,528


-


673


11,817


(13,869)


(2,052)

Non-property adjustments

(12)


1


(1)


-


-


-


1


-


(11)


1


-


(1)


(22)


22


-

Interest Income

2


(1)


-


-


-


-


(1)


(3)


-


(2)


-


(1)


(6)


(1)


(7)

Interest expense

-


-


502


-


-


512


-


-


-


-


-


-


1,014


8,358


9,372

Amortization of loan cost

-


-


166


-


-


8


-


-


-


-


-


-


174


326


500

Depreciation and amortization

1,813


1,474


1,557


-


622


1,463


1,002


558


496


986


-


579


10,550


-


10,550

Income tax expense

28


129


-


-


-


3


-


-


-


-


-


-


160


315


475

Non-Hotel EBITDA ownership expense

252


15


1


-


8


(4)


6


1


-


8


-


1


288


(288)


-

(Income) loss from consolidated entities attributable to noncontrolling interest

393


159


-


-


-


-


-


-


-


-


-


-


552


(552)


-

EBITDA including amounts attributable to consolidated noncontrolling interest