Ashford Hospitality Trust Reports First Quarter Results
Adjusted EBITDA increased 10% for the First Quarter
AFFO Per Share increased 25% for the First Quarter
7.7% RevPAR Increase for the Highland Hospitality Portfolio
185 bps Margin improvement for the Highland Hospitality Portfolio
DALLAS, May 8, 2013 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) today reported the following results and performance measures for the first quarter ended March 31, 2013. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) are proforma. Unless otherwise stated, all reported results compare the first quarter ended March 31, 2013, with the first quarter ended March 31, 2012 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.
FINANCIAL HIGHLIGHTS
- Adjusted EBITDA increased $7.3 million or 10% during the first quarter
- RevPAR for all hotels in continuing operations, including the Highland Hospitality portfolio, increased 4.3% during the quarter
- RevPAR increased 7.7% for all hotels in the Highland Hospitality portfolio, driven by a 6% increase in ADR and a 110 basis point increase in occupancy
- RevPAR increased 3.4% for all Legacy hotels in continuing operations, driven by a 3.3% increase in ADR
- Hotel EBITDA flow-through was 53% for all hotels, including the Highland Hospitality portfolio
- Hotel operating profit margin increased 77 basis points for all Legacy hotels not under renovation in continuing operations
- Hotel operating profit margin increased 221 basis points for all Highland Hospitality hotels not under renovation in continuing operations
- Net loss attributable to common shareholders was $23.2 million, or $0.34 per diluted share, compared with net loss attributable to common shareholders of $29.5 million, or $0.44 per diluted share, in the prior-year quarter
- Adjusted funds from operations (AFFO) was $0.35 per diluted share for the quarter as compared with $0.28 from the prior-year quarter
- At the end of the first quarter 2013, Ashford had cash, cash equivalents, and marketable securities of $238 million
CAPITAL ALLOCATION
- Capex invested in the quarter for the Legacy portfolio was $20.0 million
- Ashford's pro rata share of capex invested in the quarter for the Highland Hospitality portfolio was $11.9 million
CAPITAL STRUCTURE
At March 31, 2013, Ashford had total assets of $3.5 billion in continuing operations, and $4.4 billion overall including the Highland Hospitality portfolio which is not consolidated. As of March 31, 2013, the Company had $2.4 billion of mortgage debt in continuing operations and $3.2 billion overall including the Highland Hospitality portfolio. Ashford's total combined debt had a blended average interest rate of 5.3%, with a weighted average debt maturity of 3.6 years.
On February 26, 2013, Ashford refinanced its sole remaining 2013 debt maturity, which was set to mature in August 2013. The prior $141 million loan was refinanced with a new $200 million loan that matures in February 2018. The new loan provides for a floating interest rate of LIBOR + 3.50%, with no LIBOR floor and continues to be secured by the Capital Hilton in Washington, DC and the Hilton La Jolla Torrey Pines in La Jolla, CA. Ashford has a 75% ownership interest in the properties, with Hilton holding the remaining 25%. The excess loan proceeds above closing costs and reserves were distributed to the partners on a pro rata basis. Ashford's share of the excess loan proceeds was approximately $40.5 million, which was added to the Company's unrestricted cash balance. As a result, the refinancing was neutral to Ashford on a net debt basis.
Subsequent to the end of the first quarter, the Company announced that, along with its joint venture partner, it had entered into a series of agreements with the City of Nashville and Davidson County relating to the 673-room Renaissance Nashville Hotel. The hotel is part of Ashford's Highland Hospitality portfolio of which Ashford has a 71.74% ownership interest. The Agreements include converting the joint venture's leasehold interest in the hotel, which was set to expire in 2087, to fee simple ownership, extending the current lease term of some adjacent facilities to 2112, and entering into a new, 30-year lease for 80,000 square feet of meeting space and pre-function space located at the existing Nashville Convention Center, which is adjacent to the hotel, all at no cost to the joint venture. By entering into the lease for the additional meeting space, the hotel will now be able to offer over 110,000 square feet of self-contained meeting and pre-function space to accommodate larger groups. Previously, the hotel offered 30,000 square feet of self-contained meeting space and had access to the newly leased space on an "as available" basis and paid additional rent for the use of that space.
On May 7, 2013, the Company announced that it had signed a definitive agreement to acquire the 142-room Pier House Resort and Spa in Key West, FL for $90 million. The purchase price equates to a trailing 12-month cap rate of 6.2% and a trailing 12-month EBITDA yield of 7.0%. On a forward 12-month basis, the purchase price represents a cap rate of 7.6% and an EBITDA yield of 8.5%, which equates to an 11.8x forward EBITDA multiple. In 2012, the hotel achieved RevPAR of $275, with occupancy of 83% and an Average Daily Rate of $333. The Company intends to fund the entire purchase price with cash on hand and the acquisition is expected to close by May 20, 2013.
PORTFOLIO REVPAR
As of March 31, 2013, the Company's Legacy portfolio consisted of direct hotel investments with 94 properties classified in continuing operations. During the first quarter of 2013, 84 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 94 hotels) and proforma not under renovation basis (84 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its direct hotel portfolio. Details of each category are provided in the tables attached to this release.
- Proforma RevPAR increased 3.4% to $99.48 for all hotels in the Legacy portfolio on a 3.3% increase in ADR and a 7 basis point increase in occupancy
- Proforma RevPAR increased 4.0% to $101.06 for hotels not under renovation in the Legacy portfolio on a 3.5% increase in ADR and a 31 basis point increase in occupancy
- Proforma RevPAR increased 7.7% to $98.41 for all hotels in the Highland Hospitality portfolio on a 6.0% increase in ADR and a 110 basis point increase in occupancy
- Proforma RevPAR increased 8.7% to $95.12 for hotels not under renovation in the Highland Hospitality portfolio on a 5.3% increase in ADR and a 216 basis point increase in occupancy
HIGHLAND HOSPITALITY PORTFOLIO UPDATE
The Highland Hospitality portfolio experienced RevPAR growth of 7.7% during the first quarter of 2013, with RevPAR growth for hotels not under renovation in continuing operations of 8.7%. The Highland Hospitality portfolio continued to experience strong EBITDA flow-through during the first quarter as a result of improved RevPAR growth, solid property management and previously completed capital expenditures. For all 28 hotels in the Highland Hospitality portfolio, Hotel EBITDA Margin increased 185 bps and Hotel EBITDA flow-through was 53%. For the 21 hotels not under renovation during the first quarter 2013, Hotel EBITDA Margin increased 221 basis points and Hotel EBITDA flow-through was 52%. Hotel EBITDA increased 15.1% in the first quarter for all hotels in the Highland Hospitality portfolio.
HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
During the quarter, Hotel operating profit (Hotel EBITDA) for all Legacy hotels increased 3.9% to $72.5 million. For the 84 hotels that were not under renovation, Hotel EBITDA increased 5.7% to $67.1 million. Hotel EBITDA Margin (expressed as a percentage of Total Hotel Revenue) increased 77 basis points to 32.5% for the 84 Legacy hotels not under renovation. For all 94 Legacy hotels included in continuing operations, Hotel EBITDA Margin increased 48 basis points to 31.5%.
For the Company's 71.74% share of all hotels in the Highland Hospitality portfolio, Hotel operating profit (Hotel EBITDA) increased 15.1% to $18.9 million. For the 21 hotels in the Highland Hospitality portfolio that were not under renovation, Hotel EBITDA increased 18.5% to $13.6 million. Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) increased 221 basis points to 25.2% for the 21 Highland Hospitality hotels not under renovation. For all 28 Highland Hospitality hotels included in continuing operations, Hotel EBITDA margin increased 185 basis points to 25.8%.
Starting with its second quarter 2012 financial results, the Company added additional disclosure information regarding property level trailing 12-month Hotel EBITDA by debt pool. The Company believes this additional disclosure will assist the investment community in analyzing Ashford and help analysts and investors see the benefits of the non-recourse nature of its property level debt. Prior to providing this information, the investment community could only reference the Company's total EBITDA and total debt when applying a valuation multiple.
Ashford believes year-over-year Hotel EBITDA and 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 and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Hotel EBITDA and Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Legacy portfolio as well as its pro-rata share of the Highland Hospitality portfolio as of the end of the current period. As Ashford's portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the current portfolio of 94 Legacy hotels included in continuing operations together with Ashford's pro-rata share of the Highland Hospitality portfolio are provided in the table attached to this release.
In addition, in 2013, Marriott Hotels and Resorts converted to a monthly reporting calendar as opposed to its traditional thirteen-period reporting calendar. Historically, Ashford has recorded four of its Marriott-managed hotels' accounting periods in the fourth quarter and three in each of the other quarters during the year. Presently, Marriott manages 46 hotels for Ashford making it one of the Company's largest property managers. Accordingly, this year Ashford has converted its 2012 numbers on a proforma basis to calendar months, consistent with the new Marriott monthly reporting calendar, to provide necessary consistency in period-to-period comparisons.
COMMON STOCK DIVIDEND
On March 15, 2013, Ashford announced that its Board of Directors had declared a quarterly cash dividend of $0.12 per diluted share for the Company's common stock for the first quarter ending March 31, 2013, payable on April 15, 2013, to shareholders of record as of March 28, 2013.
"We are very pleased with our first quarter results which continue to demonstrate substantial improvement in the operating performance of our Highland Hospitality portfolio due to the management changes and cost controls we have implemented as well as the capital expenditures we continue to make at the hotels," commented Monty J. Bennett, Ashford's Chairman and Chief Executive Officer. "Additionally, our capital market strategies have essentially addressed all of our near-term debt maturities, with our next significant debt maturity not until November 2014. Our efforts have been extremely successful and have put Ashford in a significantly enhanced position both from a cash and liquidity perspective. We believe we have more than sufficient resources to insulate us from any unexpected market fluctuations and the financial flexibility to take advantage of accretive investments opportunities that may arise."
INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, May 9, 2013, at 11:00 a.m. ET. The number to call for this interactive teleconference is (480) 629-9692. A replay of the conference call will be available through Thursday May 16, 2013, by dialing (303) 590-3030 and entering the confirmation number, 4613572.
The Company will also provide an online simulcast and rebroadcast of its first quarter 2013 earnings release conference call. The live broadcast of Ashford Hospitality Trust's quarterly conference call will be available online at the Company's web site, www.ahtreit.com on Thursday May 9, 2013, 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 and debt 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 Operating Profit. 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 Operating Profit 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 Operating Profit 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 is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure. Additional information can be found on the Company's website at www.ahtreit.com.
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. 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 forward-looking statements include, but are not limited to, the timing for closing, the impact of the transaction on our business and future financial condition, our business and investment strategy, our understanding of our competition and current market trends and opportunities and projected capital expenditures. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford'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; and the degree and nature of our competition. These and other risk factors are more fully discussed in Ashford'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 TRUST, INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(in thousands, except share amounts) |
|||||||
March 31, |
December 31, |
||||||
2013 |
2012 |
||||||
(Unaudited) |
|||||||
ASSETS |
|||||||
Cash and cash equivalents |
$ 209,982 |
$ 185,935 |
|||||
Marketable securities |
27,769 |
23,620 |
|||||
Total cash, cash equivalents and marketable securities |
237,751 |
209,555 |
|||||
Investment in hotel properties, net |
2,857,538 |
2,872,304 |
|||||
Restricted cash |
78,896 |
84,786 |
|||||
Accounts receivable, net of allowance of $290 and $265, respectively |
34,627 |
35,116 |
|||||
Inventories |
2,141 |
2,111 |
|||||
Notes receivable, net of allowance of $8,237 and $8,333, respectively |
11,367 |
11,331 |
|||||
Investment in unconsolidated joint ventures |
151,806 |
158,694 |
|||||
Deferred costs, net |
16,073 |
17,194 |
|||||
Prepaid expenses |
11,884 |
10,145 |
|||||
Derivative assets, net |
237 |
6,391 |
|||||
Other assets |
7,118 |
4,594 |
|||||
Intangible asset, net |
2,698 |
2,721 |
|||||
Due from affiliates |
1,884 |
1,168 |
|||||
Due from third-party hotel managers |
57,670 |
48,619 |
|||||
Total assets |
$ 3,471,690 |
$ 3,464,729 |
|||||
LIABILITIES AND EQUITY |
|||||||
Liabilities: |
|||||||
Indebtedness |
$ 2,390,725 |
$ 2,339,410 |
|||||
Accounts payable and accrued expenses |
81,573 |
84,293 |
|||||
Dividends payable |
19,250 |
18,258 |
|||||
Unfavorable management contract liabilities |
10,553 |
11,165 |
|||||
Due to related party, net |
1,373 |
3,725 |
|||||
Due to third-party hotel managers |
2,058 |
1,410 |
|||||
Liabilities associated with marketable securities |
3,511 |
1,641 |
|||||
Other liabilities |
6,408 |
6,348 |
|||||
Total liabilities |
2,515,451 |
2,466,250 |
|||||
Redeemable noncontrolling interests in operating partnership |
196,468 |
151,179 |
|||||
Equity: |
|||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized - |
|||||||
Series A Cumulative Preferred Stock, 1,657,206 shares issued and outstanding at |
|||||||
March 31, 2013 and December 31, 2012 |
17 |
17 |
|||||
Series D Cumulative Preferred Stock, 9,468,706 shares issued and outstanding at |
|||||||
March 31, 2013 and December 31, 2012 |
95 |
95 |
|||||
Series E Cumulative Preferred Stock, 4,630,000 shares issued and outstanding at |
|||||||
March 31, 2013 and December 31, 2012 |
46 |
46 |
|||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 124,896,765 shares |
|||||||
issued, 68,332,627 and 68,150,617 shares outstanding, respectively |
1,249 |
1,249 |
|||||
Additional paid-in capital |
1,759,037 |
1,766,168 |
|||||
Accumulated other comprehensive loss |
(277) |
(282) |
|||||
Accumulated deficit |
(837,169) |
(770,467) |
|||||
Treasury stock, at cost (56,564,138 shares and 56,746,148 shares, respectively) |
(164,389) |
(164,884) |
|||||
Total shareholders' equity of the Company |
758,609 |
831,942 |
|||||
Noncontrolling interests in consolidated entities |
1,162 |
15,358 |
|||||
Total equity |
759,771 |
847,300 |
|||||
Total liabilities and equity |
$ 3,471,690 |
$ 3,464,729 |
|||||
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES |
||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
(in thousands, except per share amounts) |
||||||
Three Months Ended |
||||||
March 31, |
||||||
2013 |
2012 |
|||||
(Unaudited) |
||||||
REVENUE |
||||||
Rooms |
$ 183,469 |
$ 169,459 |
||||
Food and beverage |
39,650 |
39,707 |
||||
Other |
8,716 |
7,814 |
||||
Total hotel revenue |
231,835 |
216,980 |
||||
Other |
107 |
75 |
||||
Total Revenue |
231,942 |
217,055 |
||||
EXPENSES |
||||||
Hotel operating expenses |
||||||
Rooms |
42,156 |
38,601 |
||||
Food and beverage |
27,175 |
27,001 |
||||
Other expenses |
68,292 |
65,094 |
||||
Management fees |
9,893 |
8,989 |
||||
Total hotel operating expenses |
147,516 |
139,685 |
||||
Property taxes, insurance, and other |
12,248 |
11,709 |
||||
Depreciation and amortization |
32,480 |
33,656 |
||||
Impairment charges |
(96) |
(92) |
||||
Corporate, general, and administrative: |
||||||
Stock/unit-based compensation |
8,342 |
5,146 |
||||
Other general and administrative |
6,174 |
5,101 |
||||
Total Operating Expenses |
206,664 |
195,205 |
||||
OPERATING INCOME |
25,278 |
21,850 |
||||
Equity in loss of unconsolidated joint ventures |
(6,888) |
(10,304) |
||||
Interest income |
36 |
32 |
||||
Other income |
5,822 |
7,613 |
||||
Interest expense |
(33,448) |
(33,663) |
||||
Amortization of loan costs |
(1,932) |
(1,212) |
||||
Write-off of deferred loan costs and exit fees |
(1,971) |
â€" |
||||
Unrealized gain on marketable securities |
2,701 |
1,785 |
||||
Unrealized loss on derivatives |
(7,149) |
(9,941) |
||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(17,551) |
(23,840) |
||||
Income tax expense |
(604) |
(879) |
||||
LOSS FROM CONTINUING OPERATIONS |
(18,155) |
(24,719) |
||||
Income from discontinued operations |
- |
166 |
||||
NET LOSS |
(18,155) |
(24,553) |
||||
Loss from consolidated entities attributable to noncontrolling interests |
707 |
278 |
||||
Net loss attributable to redeemable noncontrolling interests in operating partnership |
2,762 |
3,057 |
||||
NET LOSS ATTRIBUTABLE TO THE COMPANY |
(14,686) |
(21,218) |
||||
Preferred dividends |
(8,490) |
(8,331) |
||||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ (23,176) |
$ (29,549) |
||||
INCOME (LOSS) PER SHARE â€" BASIC AND DILUTED |
||||||
Basic: |
||||||
Loss from continuing operations attributable to common shareholders |
$ (0.34) |
$ (0.44) |
||||
Income from discontinued operations attributable to common shareholders |
- |
- |
||||
Net loss attributable to common shareholders |
$ (0.34) |
$ (0.44) |
||||
Weighted average common shares outstanding â€" basic |
67,682 |
67,152 |
||||
Diluted: |
||||||
Loss from continuing operations attributable to common shareholders |
$ (0.34) |
$ (0.44) |
||||
Income from discontinued operations attributable to common shareholders |
- |
$ - |
||||
Net loss attributable to common shareholders |
$ (0.34) |
$ (0.44) |
||||
Weighted average common shares outstanding â€" diluted |
67,682 |
67,152 |
||||
Dividends declared per common share: |
$ 0.12 |
$ 0.11 |
||||
Amounts attributable to common shareholders: |
||||||
Loss from continuing operations |
$ (14,686) |
$ (21,365) |
||||
Income from discontinued operations |
- |
147 |
||||
Preferred dividends |
(8,490) |
(8,331) |
||||
Net loss attributable to common shareholders |
$ (23,176) |
$ (29,549) |
||||
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES |
||||||
RECONCILIATION OF NET LOSS TO EBITDA |
||||||
(in thousands) |
||||||
(Unaudited) |
||||||
Three Months Ended |
||||||
March 31, |
||||||
2013 |
2012 |
|||||
Net loss |
$ (18,155) |
$ (24,553) |
||||
Loss from consolidated entities attributable to noncontrolling interests |
707 |
278 |
||||
Net loss attributable to redeemable noncontrolling interests in operating partnership |
2,762 |
3,057 |
||||
Net loss attributable to the Company |
(14,686) |
(21,218) |
||||
Interest income |
(36) |
(32) |
||||
Interest expense and amortization of loan costs |
34,972 |
34,851 |
||||
Depreciation and amortization |
31,661 |
33,583 |
||||
Impairment charges |
(96) |
(92) |
||||
Income tax expense |
604 |
879 |
||||
Net loss attributable to redeemable noncontrolling interests in operating partnership |
(2,762) |
(3,057) |
||||
Equity in loss of unconsolidated joint ventures |
6,888 |
10,304 |
||||
Company's portion of EBITDA of unconsolidated joint ventures |
17,389 |
14,564 |
||||
EBITDA |
73,934 |
69,782 |
||||
Amortization of unfavorable management contract liabilities |
(612) |
(565) |
||||
Write-off of loan costs, premiums, and exit fees, net |
1,971 |
- |
||||
Other income (1) |
(5,822) |
(7,613) |
||||
Unrealized gain on investments |
(2,701) |
(1,785) |
||||
Unrealized loss on derivatives |
7,149 |
9,941 |
||||
Equity-based compensation |
8,342 |
5,146 |
||||
Company's portion of adjustments to EBITDA of unconsolidated joint ventures |
19 |
95 |
||||
Adjusted EBITDA |
$ 82,280 |
$ 75,001 |
||||
(1) |
Other income, primarily consisting of income from interest rate derivatives in both periods and net realized loss on marketable securities in both periods, is excluded from Adjusted EBITDA. |
|||||
RECONCILIATION OF NET LOSS TO FUNDS FROM OPERATIONS ("FFO") |
||||||
(in thousands, except per share amounts) |
||||||
(Unaudited) |
||||||
Three Months Ended |
||||||
March 31, |
||||||
2013 |
2012 |
|||||
Net loss |
$ (18,155) |
$ (24,553) |
||||
Loss from consolidated entities attributable to noncontrolling interests |
707 |
278 |
||||
Net loss attributable to redeemable noncontrolling interests in operating partnership |
2,762 |
3,057 |
||||
Preferred dividends |
(8,490) |
(8,331) |
||||
Net loss attributable to common shareholders |
(23,176) |
(29,549) |
||||
Depreciation and amortization on real estate |
31,615 |
33,517 |
||||
Impairment charges |
(96) |
(92) |
||||
Net loss attributable to redeemable noncontrolling interests in operating partnership |
(2,762) |
(3,057) |
||||
Equity in loss of unconsolidated joint ventures |
6,888 |
10,304 |
||||
Company's portion of FFO of unconsolidated joint ventures |
5,636 |
2,455 |
||||
FFO available to common shareholders |
18,105 |
13,578 |
||||
Write-off of loan costs, premiums, and exit fees, net |
1,971 |
- |
||||
Other income (1) |
393 |
356 |
||||
Unrealized gain on investments |
(2,701) |
(1,785) |
||||
Unrealized loss on derivatives |
7,149 |
9,941 |
||||
Equity-based compensation adjustment related to modified employment terms |
4,678 |
991 |
||||
Company's portion of adjustments to FFO of unconsolidated joint ventures |
19 |
95 |
||||
Adjusted FFO available to common shareholders |
$ 29,614 |
$ 23,176 |
||||
Adjusted FFO per diluted share available to common shareholders |
$ 0.35 |
$ 0.28 |
||||
Weighted average diluted shares |
85,794 |
84,265 |
||||
(1) |
Other income, primarily consisting of net realized loss on marketable securities in both periods, is excluded from Adjusted FFO. |
|||||
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES |
||||||||||||||
LEGACY PORTFOLIO ONLY |
||||||||||||||
SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS |
||||||||||||||
MARCH 31, 2013 |
||||||||||||||
(dollars in thousands) |
||||||||||||||
(Unaudited) |
||||||||||||||
Fixed-Rate |
Floating-Rate |
Total |
TTM Hotel |
TTM EBITDA |
||||||||||
Indebtedness |
Maturity |
Interest Rate |
Debt |
Debt |
Debt |
EBITDA |
Debt Yield |
|||||||
BoA MIP - 5 hotels |
March 2014 |
LIBOR + 4.50% |
$ - |
$ 172,416 |
(1) |
$ 172,416 |
$ 18,210 |
10.6% |
||||||
JPM Floater - 9 hotels |
May 2014 |
LIBOR + 6.50% |
- |
135,000 |
(2) |
135,000 |
17,312 |
12.8% |
||||||
GEMSA Manchester - 1 hotel |
May 2014 |
8.32% |
5,249 |
- |
5,249 |
529 |
10.1% |
|||||||
Senior credit facility - Various |
September 2014 |
LIBOR + 2.75% to 3.5% |
- |
- |
- |
- |
N/A |
|||||||
Goldman Sachs - 5 hotels |
November 2014 |
Greater of 6.40% or LIBOR + 6.15% |
- |
211,000 |
(3) |
211,000 |
24,034 |
11.4% |
||||||
UBS 1 - 8 hotels |
December 2014 |
5.75% |
104,089 |
- |
104,089 |
11,942 |
11.5% |
|||||||
Merrill 1 - 10 hotels |
July 2015 |
5.22% |
151,899 |
- |
151,899 |
20,939 |
13.8% |
|||||||
UBS 2 - 8 hotels |
December 2015 |
5.70% |
96,397 |
- |
96,397 |
11,204 |
11.6% |
|||||||
Merrill 2 - 5 hotels |
February 2016 |
5.53% |
109,743 |
- |
109,743 |
17,042 |
15.5% |
|||||||
Merrill 3 - 5 hotels |
February 2016 |
5.53% |
91,010 |
- |
91,010 |
15,284 |
16.8% |
|||||||
Merrill 7 - 5 hotels |
February 2016 |
5.53% |
78,834 |
- |
78,834 |
12,856 |
16.3% |
|||||||
Wachovia Philly CY - 1 hotel |
April 2017 |
5.91% |
34,624 |
- |
34,624 |
9,807 |
28.3% |
|||||||
Wachovia 3 - 2 hotels |
April 2017 |
5.95% |
126,886 |
- |
126,886 |
15,279 |
12.0% |
|||||||
Wachovia 7 - 3 hotels |
April 2017 |
5.95% |
258,202 |
- |
258,202 |
24,589 |
9.5% |
|||||||
Wachovia 1 - 5 hotels |
April 2017 |
5.95% |
114,369 |
- |
114,369 |
11,719 |
10.2% |
|||||||
Wachovia 5 - 5 hotels |
April 2017 |
5.95% |
102,800 |
- |
102,800 |
10,524 |
10.2% |
|||||||
Wachovia 6 - 5 hotels |
April 2017 |
5.95% |
156,422 |
- |
156,422 |
16,439 |
10.5% |
|||||||
Wachovia 2 - 7 hotels |
April 2017 |
5.95% |
125,120 |
- |
125,120 |
12,573 |
10.0% |
|||||||
Aareal - 2 hotels |
February 2018 |
LIBOR + 3.50% |
- |
199,875 |
199,875 |
24,389 |
12.2% |
|||||||
TIF Philly CY - 1 hotel |
June 2018 |
12.85% |
8,098 |
- |
8,098 |
N/A |
||||||||
GACC Gateway - 1 hotel |
November 2020 |
6.26% |
102,224 |
- |
102,224 |
15,817 |
15.5% |
|||||||
Zion Jacksonville RI - 1 hotel |
April 2034 |
Greater of 6% or Prime + 1% |
- |
6,468 |
6,468 |
1,241 |
19.2% |
|||||||
Unencumbered hotels |
- |
- |
- |
885 |
N/A |
|||||||||
Total |
$ 1,665,966 |
$ 724,759 |
$ 2,390,725 |
$ 292,614 |
12.2% |
|||||||||
Percentage |
69.7% |
30.3% |
100.0% |
|||||||||||
Weighted average interest rate |
5.85% |
5.31% |
5.68% |
|||||||||||
Weighted average interest rate with the effect of interest rate swaps |
5.47% |
(4) |
5.31% |
(4) |
5.42% |
|||||||||
All indebtedness is non-recourse with the exception of the senior credit facility. |
||||||||||||||
(1)This mortgage loan has a one-year extension option beginning March 2014, subject to satisfaction of certain conditions. |
||||||||||||||
(2)This mortgage loan has three one-year extension options beginning May 2014, subject to satisfaction of certain conditions. |
||||||||||||||
(3)This mortgage loan has three one-year extension options beginning November 2014, subject to satisfaction of certain conditions. |
||||||||||||||
(4)These rates are calculated assuming the LIBOR rate stays at the March 31, 2013 level and with the effect of our interest rate derivatives. |
||||||||||||||
HIGHLAND HOSPITALITY PORTFOLIO |
||||||||||||||
(PIM HIGHLAND HOLDING LLC) |
||||||||||||||
SUMMARY OF INDEBTEDNESS |
||||||||||||||
ASHFORD'S PRO RATA 71.74% SHARE |
||||||||||||||
MARCH 31, 2013 |
||||||||||||||
(dollars in thousands) |
||||||||||||||
(Unaudited) |
||||||||||||||
Fixed-Rate |
Floating-Rate |
Total |
TTM Hotel |
TTM EBITDA |
||||||||||
Indebtedness |
Maturity |
Interest Rate |
Debt |
Debt |
Debt |
EBITDA |
Debt Yield |
|||||||
Wells Senior - 25 hotels |
March 2014 |
LIBOR + 3.00% |
$ - |
$ 380,222 |
(1) |
$ 380,222 |
$ 65,481 |
17.2% |
||||||
Mezz 1 - 28 hotels |
March 2014 |
Greater of 7.00% or LIBOR + 6.00% |
- |
93,756 |
(1) |
93,756 |
87,029 |
13.9% |
||||||
Mezz 2 - 28 hotels |
March 2014 |
Greater of 8.00% or LIBOR + 7.00% |
- |
89,254 |
(1) |
89,254 |
87,029 |
12.1% |
||||||
Mezz 3 - 28 hotels |
March 2014 |
Greater of 10.50% or LIBOR + 9.50% |
- |
76,503 |
(1) |
76,503 |
87,029 |
11.0% |
||||||
Mezz 4 - 28 hotels |
March 2014 |
LIBOR + 2.00% |
13,218 |
(1) |
13,218 |
87,029 |
10.8% |
|||||||
Morgan Stanley Boston Back Bay - 1 hotel |
January 2018 |
4.38% |
73,684 |
- |
73,684 |
9,067 |
12.3% |
|||||||
Morgan Stanley Princeton/Nashville - 2 hotels |
January 2018 |
4.44% |
80,554 |
- |
80,554 |
12,481 |
15.5% |
|||||||
Total (Ashford's 71.74% share only) |
$ 154,238 |
$ 652,953 |
$ 807,191 |
$ 87,029 |
10.8% |
|||||||||
Percentage |
19.1% |
80.9% |
100.0% |
|||||||||||
Weighted average interest rate |
4.41% |
5.24% |
5.08% |
|||||||||||
Total Ashford plus Ashford's 71.74% share of PIM Highland Holding LLC |
$ 1,820,204 |
$ 1,377,712 |
$ 3,197,916 |
$ 379,643 |
11.9% |
|||||||||
Percentage |
56.9% |
43.1% |
100.0% |
|||||||||||
Weighted average interest rate with the effect of interest rate swaps |
5.38% |
5.27% |
5.34% |
|||||||||||
(1)Each of these loans has two one-year extension options beginning March 2014. |
||||||||||||||
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES |
||||||||||||||||
LEGACY PORTFOLIO ONLY |
||||||||||||||||
INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED |
||||||||||||||||
MARCH 31, 2013 |
||||||||||||||||
(in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
2013 |
2014 |
2015 |
2016 |
2017 |
Thereafter |
Total |
||||||||||
GEMSA Manchester - 1 hotel |
$ - |
$ 5,004 |
$ - |
$ - |
$ - |
$ - |
$ 5,004 |
|||||||||
Senior credit facility - Various |
- |
- |
- |
- |
- |
- |
- |
|||||||||
UBS 1 - 8 hotels |
- |
100,119 |
- |
- |
- |
- |
100,119 |
|||||||||
BoA MIP - 5 hotels |
- |
- |
172,416 |
- |
- |
- |
172,416 |
|||||||||
Merrill 1 - 10 hotels |
- |
- |
142,922 |
- |
- |
- |
142,922 |
|||||||||
UBS 2 - 8 hotels |
- |
- |
90,680 |
- |
- |
- |
90,680 |
|||||||||
Merrill 2 - 5 hotels |
- |
- |
- |
101,740 |
- |
- |
101,740 |
|||||||||
Merrill 3 - 5 hotels |
- |
- |
- |
84,374 |
- |
- |
84,374 |
|||||||||
Merrill 7 - 5 hotels |
- |
- |
- |
73,086 |
- |
- |
73,086 |
|||||||||
JPM Floater - 9 hotels |
- |
- |
- |
- |
135,000 |
- |
135,000 |
|||||||||
Wachovia Philly CY - 1 hotel |
- |
- |
- |
- |
32,532 |
- |
32,532 |
|||||||||
Wachovia 3 - 2 hotels |
- |
- |
- |
- |
119,245 |
- |
119,245 |
|||||||||
Wachovia 7 - 3 hotels |
- |
- |
- |
- |
242,201 |
- |
242,201 |
|||||||||
Wachovia 1 - 5 hotels |
- |
- |
- |
- |
107,351 |
- |
107,351 |
|||||||||
Wachovia 5 - 5 hotels |
- |
- |
- |
- |
96,491 |
- |
96,491 |
|||||||||
Wachovia 6 - 5 hotels |
- |
- |
- |
- |
146,823 |
- |
146,823 |
|||||||||
Wachovia 2 - 7 hotels |
- |
- |
- |
- |
117,441 |
- |
117,441 |
|||||||||
Goldman Sachs - 5 hotels |
- |
- |
- |
- |
211,000 |
- |
211,000 |
|||||||||
Aareal - 2 hotels |
- |
- |
- |
- |
- |
186,259 |
186,259 |
|||||||||
TIF Philly CY - 1 hotel |
- |
- |
- |
- |
- |
8,098 |
8,098 |
|||||||||
GACC Gateway - 1 hotel |
- |
- |
- |
- |
- |
89,886 |
89,886 |
|||||||||
Zion Jacksonville RI - 1 hotel |
- |
- |
- |
- |
- |
- |
- |
|||||||||
Principal due in future periods |
$ - |
$ 105,123 |
$ 406,018 |
$ 259,200 |
$ 1,208,084 |
$ 284,243 |
$ 2,262,668 |
|||||||||
Scheduled amortization payments remaining |
25,850 |
30,731 |
29,361 |
19,617 |
18,327 |
4,171 |
128,057 |
|||||||||
Total indebtedness of continuing operations |
$ 25,850 |
$ 135,854 |
$ 435,379 |
$ 278,817 |
$ 1,226,411 |
$ 288,414 |
$ 2,390,725 |
|||||||||
NOTE: These maturities assume no event of default would occur. |
||||||||||||||||
HIGHLAND HOSPITALITY PORTFOLIO |
||||||||||||||||
(PIM HIGHLAND HOLDING LLC) |
||||||||||||||||
INDEBTEDNESS BY MATURITY |
||||||||||||||||
ASSUMING EXTENSION OPTIONS ARE EXERCISED |
||||||||||||||||
ASHFORD'S PRO RATA 71.74% SHARE |
||||||||||||||||
MARCH 31, 2013 |
||||||||||||||||
(in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
2013 |
2014 |
2015 |
2016 |
2017 |
Thereafter |
Total |
||||||||||
Wells Senior - 25 hotels |
$ - |
$ - |
$ - |
$ 380,222 |
$ - |
$ - |
$ 380,222 |
|||||||||
Mezz 1 - 28 hotels |
- |
- |
- |
93,756 |
- |
- |
93,756 |
|||||||||
Mezz 2 - 28 hotels |
- |
- |
- |
89,254 |
- |
- |
89,254 |
|||||||||
Mezz 3 - 28 hotels |
- |
- |
- |
76,503 |
- |
- |
76,503 |
|||||||||
Mezz 4 - 28 hotels |
- |
- |
- |
13,218 |
- |
- |
13,218 |
|||||||||
Morgan Stanley Boston Back Bay - 1 hotel |
- |
- |
- |
- |
- |
67,358 |
67,358 |
|||||||||
Morgan Stanley Princeton/Nashville - 2 hotels |
- |
- |
- |
- |
- |
73,703 |
73,703 |
|||||||||
Principal due in future periods |
$ - |
$ - |
$ - |
$ 652,953 |
$ - |
$ 141,060 |
$ 794,013 |
|||||||||
Scheduled amortization payments remaining |
1,886 |
2,639 |
2,758 |
2,882 |
3,012 |
- |
13,178 |
|||||||||
Total indebtedness of continuing operations |
$ 1,886 |
$ 2,639 |
$ 2,758 |
$ 655,835 |
$ 3,012 |
$ 141,060 |
$ 807,191 |
|||||||||
Total indebtedness of continuing operations plus Ashford's |
||||||||||||||||
71.74% share of PIM Highland Holding LLC |
$ 27,736 |
$ 138,493 |
$ 438,137 |
$ 934,652 |
$ 1,229,423 |
$ 429,474 |
$ 3,197,916 |
|||||||||
ASHFORD HOSPITALITY TRUST, INC. |
|||||||||||||
KEY PERFORMANCE INDICATORS - PRO FORMA |
|||||||||||||
LEGACY PORTFOLIO ONLY |
|||||||||||||
(Unaudited) |
|||||||||||||
Three Months Ended |
|||||||||||||
March 31, |
|||||||||||||
2013 |
2012 |
% Variance |
|||||||||||
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: |
|||||||||||||
Room revenues (in thousands) |
$ 182,241 |
$ 176,308 |
3.37% |
||||||||||
RevPAR |
$ 99.48 |
$ 96.18 |
3.43% |
||||||||||
Occupancy |
71.42% |
71.35% |
0.07% |
||||||||||
ADR |
$ 139.29 |
$ 134.80 |
3.33% |
||||||||||
NOTE: |
The above pro forma table assumes the 94 hotel properties owned and included in continuing operations at March 31, 2013 were owned as of the beginning of the period presented. |
||||||||||||
ALL HOTELS NOT UNDER RENOVATION |
|||||||||||||
INCLUDED IN CONTINUING OPERATIONS: |
|||||||||||||
Room revenues (in thousands) |
$ 165,073 |
$ 158,679 |
4.03% |
||||||||||
RevPAR |
$ 101.06 |
$ 97.18 |
3.99% |
||||||||||
Occupancy |
71.78% |
71.47% |
0.31% |
||||||||||
ADR |
$ 140.78 |
$ 135.98 |
3.53% |
||||||||||
NOTES: |
|||||||||||||
(1) |
The above pro forma table assumes the 84 hotel properties owned and included in continuing operations at March 31, 2013, but not under renovation for the three months ended March 31, 2013 were owned as of the beginning of the periods presented. |
||||||||||||
(2) |
Excluded Hotels Under Renovation: |
||||||||||||
Hilton Costa Mesa, Sheraton San Diego Mission Valley, Hilton Sante Fe, Hilton La Jolla Torrey Pines, |
|||||||||||||
Courtyard Dallas Plano Legacy Park, Embassy Suites Dulles, Embassy Suites East Syracuse, |
|||||||||||||
Courtyard Hartford Manchester, Hampton Inn Lawrenceville, Residence Inn Lake Buena Vista, |
|||||||||||||
(3) |
In 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented. |
||||||||||||
HIGHLAND HOSPITALITY PORTFOLIO |
|||||||||||||
(PIM HIGHLAND HOLDING LLC) |
|||||||||||||
KEY PERFORMANCE INDICATORS - PRO FORMA |
|||||||||||||
(Unaudited) |
|||||||||||||
THE FOLLOWING TABLE PRESENTS THE PRO FORMA PERFORMANCE OF THE HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC) AS IF THESE HOTELS WERE OWNED AS OF THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD. |
|||||||||||||
Three Months Ended |
|||||||||||||
March 31, |
|||||||||||||
2013 |
2012 |
% Variance |
|||||||||||
71.74% PRO-RATA SHARE OF ALL HOTELS INCLUDED IN |
|||||||||||||
CONTINUING OPERATIONS: |
|||||||||||||
Room revenues (in thousands) |
$ 51,760 |
$ 48,352 |
7.05% |
||||||||||
RevPAR |
$ 98.41 |
$ 91.39 |
7.68% |
||||||||||
Occupancy |
69.50% |
68.40% |
1.10% |
||||||||||
ADR |
$ 141.60 |
$ 133.61 |
5.98% |
||||||||||
NOTE: |
The above pro forma table assumes the 28 hotel properties owned and included in continuing operations at March 31, 2013 were owned as of the beginning of the periods presented. |
||||||||||||
71.74% PRO-RATA SHARE OF ALL HOTELS NOT UNDER RENOVATION |
|||||||||||||
INCLUDED IN CONTINUING OPERATIONS: |
|||||||||||||
Room revenues (in thousands) |
$ 37,664 |
$ 34,832 |
8.13% |
||||||||||
RevPAR |
$ 95.12 |
$ 87.51 |
8.70% |
||||||||||
Occupancy |
68.79% |
66.63% |
2.16% |
||||||||||
ADR |
$ 138.29 |
$ 131.34 |
5.29% |
||||||||||
NOTES: |
|||||||||||||
(1) |
The above pro forma table assumes the 21 hotel properties owned and included in continuing operations at March 31, 2013 but not under renovation for the three months ended March 31, 2013, were owned as of the beginning of the periods presented. |
||||||||||||
(2) |
Excluded Hotels Under Renovation: |
||||||||||||
Courtyard Boston Tremont, Courtyard Savannah, The Melrose Washington DC, Marriott San Antonio Plaza, Marriott Sugarland, Hilton Boston Back Bay, Hyatt Regency Savannah |
|||||||||||||
(3) |
In 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented. |
ASHFORD HOSPITALITY TRUST, INC. |
||||||||
PRO FORMA HOTEL OPERATING PROFIT |
||||||||
LEGACY PORTFOLIO ONLY |
||||||||
(dollars in thousands) |
||||||||
(Unaudited) |
||||||||
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: |
||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2013 |
2012 |
% Variance |
||||||
REVENUE |
||||||||
Rooms |
$ 182,241 |
$ 176,308 |
3.4% |
|||||
Food and beverage |
39,626 |
41,079 |
-3.5% |
|||||
Other |
8,419 |
7,802 |
7.9% |
|||||
Total hotel revenue |
230,286 |
225,189 |
2.3% |
|||||
EXPENSES |
||||||||
Rooms |
41,758 |
40,099 |
4.1% |
|||||
Food and beverage |
27,160 |
27,926 |
-2.7% |
|||||
Other direct |
4,538 |
4,657 |
-2.6% |
|||||
Indirect |
62,071 |
61,261 |
1.3% |
|||||
Management fees, includes base and incentive fees |
10,319 |
9,770 |
5.6% |
|||||
Total hotel operating expenses |
145,846 |
143,713 |
1.5% |
|||||
Property taxes, insurance, and other |
11,892 |
11,633 |
2.2% |
|||||
HOTEL OPERATING PROFIT (Hotel EBITDA) |
72,548 |
69,843 |
3.9% |
|||||
Hotel EBITDA Margin |
31.50% |
31.02% |
0.48% |
|||||
Minority interest in earnings of consolidated joint ventures |
1,394 |
1,340 |
4.0% |
|||||
HOTEL OPERATING PROFIT (Hotel EBITDA), |
||||||||
excluding minority interest in joint ventures |
$ 71,154 |
$ 68,503 |
3.9% |
|||||
NOTES: |
||||||||
(1) |
The above pro forma table assumes the 94 hotel properties owned and included in continuing operations at March 31, 2013 were owned as of the beginning of the period presented. |
|||||||
(2) |
In 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented. |
|||||||
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: |
||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2013 |
2012 |
% Variance |
||||||
REVENUE |
||||||||
Rooms |
$ 165,073 |
$ 158,679 |
4.0% |
|||||
Food and beverage |
34,257 |
34,880 |
-1.8% |
|||||
Other |
7,209 |
6,583 |
9.5% |
|||||
Total hotel revenue |
206,539 |
200,142 |
3.2% |
|||||
EXPENSES |
||||||||
Rooms |
37,408 |
35,857 |
4.3% |
|||||
Food and beverage |
23,433 |
23,901 |
-2.0% |
|||||
Other direct |
3,988 |
4,055 |
-1.7% |
|||||
Indirect |
54,691 |
53,768 |
1.7% |
|||||
Management fees, includes base and incentive fees |
9,495 |
8,889 |
6.8% |
|||||
Total hotel operating expenses |
129,015 |
126,470 |
2.0% |
|||||
Property taxes, insurance, and other |
10,409 |
10,172 |
2.3% |
|||||
HOTEL OPERATING PROFIT (Hotel EBITDA) |
67,115 |
63,500 |
5.7% |
|||||
Hotel EBITDA Margin |
32.50% |
31.73% |
0.77% |
|||||
Minority interest in earnings of consolidated joint ventures |
949 |
796 |
19.2% |
|||||
HOTEL OPERATING PROFIT (Hotel EBITDA), |
||||||||
excluding minority interest in joint ventures |
$ 66,166 |
$ 62,704 |
5.5% |
|||||
NOTES: |
||||||||
(1) |
The above pro forma table assumes the 84 hotel properties owned and included in continuing operations at March 31, 2013 but not under renovation for the three months ended March 31, 2013 were owned as of the beginning of the periods presented. |
|||||||
(2) |
Excluded Hotels Under Renovation: |
|||||||
Hilton Costa Mesa, Sheraton San Diego Mission Valley, Hilton Sante Fe, Hilton La Jolla Torrey Pines, |
||||||||
Courtyard Dallas Plano Legacy Park, Embassy Suites Dulles, Embassy Suites East Syracuse, |
||||||||
Courtyard Hartford Manchester, Hampton Inn Lawrenceville, Residence Inn Lake Buena Vista, |
||||||||
(3) |
In 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented. |
HIGHLAND HOSPITALITY PORTFOLIO |
||||||||||||||
(PIM Highland Holding LLC) |
||||||||||||||
PRO FORMA HOTEL OPERATING PROFIT |
||||||||||||||
(dollars in thousands) |
||||||||||||||
(Unaudited) |
||||||||||||||
71.74% PRO-RATA SHARE OF ALL HOTELS INCLUDED IN HIGHLAND HOSPITALITY PORTFOLIO CONTINUING OPERATIONS: |
||||||||||||||
Three Months Ended |
||||||||||||||
March 31, |
||||||||||||||
2013 |
2012 |
% Variance |
||||||||||||
REVENUE |
||||||||||||||
Rooms |
$ 51,760 |
$ 48,352 |
7.0% |
|||||||||||
Food and beverage |
18,979 |
17,663 |
7.5% |
|||||||||||
Other |
2,582 |
2,612 |
-1.1% |
|||||||||||
Total hotel revenue |
73,321 |
68,627 |
6.8% |
|||||||||||
EXPENSES |
||||||||||||||
Rooms |
12,307 |
11,525 |
6.8% |
|||||||||||
Food and beverage |
12,584 |
12,096 |
4.0% |
|||||||||||
Other direct |
1,201 |
1,303 |
-7.8% |
|||||||||||
Indirect |
21,738 |
21,461 |
1.3% |
|||||||||||
Management fees, includes base and incentive fees |
2,576 |
2,215 |
16.3% |
|||||||||||
Total hotel operating expenses |
50,406 |
48,600 |
3.7% |
|||||||||||
Property taxes, insurance, and other |
3,999 |
3,594 |
11.3% |
|||||||||||
HOTEL OPERATING PROFIT (Hotel EBITDA) |
$ 18,916 |
$ 16,433 |
15.1% |
|||||||||||
Hotel EBITDA Margin |
25.80% |
23.95% |
1.85% |
|||||||||||
NOTES: |
||||||||||||||
(1) |
The above pro forma table assumes the 28 hotel properties owned and included in continuing operations at March 31, 2013 were owned as of the beginning of the periods presented. |
|||||||||||||
(2) |
In 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented. |
|||||||||||||
71.74% PRO-RATA SHARE OF ALL HOTELS INCLUDED IN PIM HIGHLAND PORTFOLIO CONTINUING OPERATIONS NOT UNDER RENOVATION: |
||||||||||||||
Three Months Ended |
||||||||||||||
March 31, |
||||||||||||||
2013 |
2012 |
% Variance |
||||||||||||
REVENUE |
||||||||||||||
Rooms |
$ 37,664 |
$ 34,832 |
8.1% |
|||||||||||
Food and beverage |
14,840 |
13,703 |
8.3% |
|||||||||||
Other |
1,597 |
1,495 |
6.8% |
|||||||||||
Total hotel revenue |
54,101 |
50,030 |
8.1% |
|||||||||||
EXPENSES |
||||||||||||||
Rooms |
8,949 |
8,350 |
7.2% |
|||||||||||
Food and beverage |
9,821 |
9,281 |
5.8% |
|||||||||||
Other direct |
994 |
1,048 |
-5.2% |
|||||||||||
Indirect |
16,203 |
15,948 |
1.6% |
|||||||||||
Management fees, includes base and incentive fees |
1,829 |
1,531 |
19.5% |
|||||||||||
Total hotel operating expenses |
37,796 |
36,158 |
4.5% |
|||||||||||
Property taxes, insurance, and other |
2,665 |
2,364 |
12.7% |
|||||||||||
HOTEL OPERATING PROFIT (Hotel EBITDA) |
$ 13,640 |
$ 11,508 |
18.5% |
|||||||||||
Hotel EBITDA Margin |
25.21% |
23.00% |
2.21% |
|||||||||||
NOTES: |
||||||||||||||
(1) |
The above pro forma table assumes the 21 hotel properties owned and included in continuing operations at March 31, 2013 but not under renovation for the three months ended March 31, 2013 were owned as of the beginning of the periods presented. |
|||||||||||||
(2) |
Excluded Hotels Under Renovation: |
|||||||||||||
Courtyard Boston Tremont, Courtyard Savannah, The Melrose Washington DC, Marriott San Antonio Plaza, Marriott Sugarland, Hilton Boston Back Bay, Hyatt Regency Savannah |
||||||||||||||
(3) |
In 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented. |
ASHFORD HOSPITALITY TRUST, INC. |
||||||
PRO FORMA HOTEL OPERATING PROFIT MARGIN |
||||||
(Unaudited) |
||||||
THE FOLLOWING PRO FORMA HOTEL OPERATING PROFIT MARGIN PRESENTS THE 94 HOTELS |
||||||
INCLUDED IN THE COMPANY'S CONTINUING OPERATIONS AND THE 28 HOTELS INCLUDED IN HIGHLAND |
||||||
HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC) AS IF THESE HOTELS WERE OWNED AS OF |
||||||
THE FIRST COMPARATIVE REPORTING PERIOD. |
||||||
PIM Highland |
||||||
94 Legacy |
Holding LLC |
|||||
Properties |
28 Properties |
|||||
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN: |
||||||
1st Quarter 2013 |
31.50% |
25.80% |
||||
1st Quarter 2012 |
31.02% |
23.95% |
||||
Variance |
0.48% |
1.85% |
||||
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN: |
||||||
Rooms |
-0.34% |
0.05% |
||||
Food & Beverage and Other Departmental |
0.70% |
0.72% |
||||
Administrative & General |
-0.04% |
0.73% |
||||
Sales & Marketing |
0.06% |
0.26% |
||||
Hospitality |
0.01% |
-0.04% |
||||
Repair & Maintenance |
0.13% |
0.29% |
||||
Energy |
0.13% |
0.21% |
||||
Franchise Fee |
0.09% |
0.01% |
||||
Management Fee |
-0.07% |
-0.01% |
||||
Incentive Management Fee |
-0.07% |
-0.27% |
||||
Insurance |
0.13% |
0.36% |
||||
Property Taxes |
-0.09% |
-0.56% |
||||
Other Taxes |
-0.04% |
-0.01% |
||||
Leases/Other |
-0.12% |
0.11% |
||||
Total |
0.48% |
1.85% |
||||
NOTE: |
In 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented. |
|||||
ASHFORD HOSPITALITY TRUST, INC. |
||||||||||||
PRO FORMA HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS |
||||||||||||
(dollars in thousands) |
||||||||||||
(Unaudited) |
||||||||||||
THE FOLLOWING PRO FORMA SEASONALITY TABLES REFLECT: (I) ALL 94 HOTELS INCLUDED IN |
||||||||||||
2013 |
2012 |
2012 |
2012 |
|||||||||
1st Quarter |
4th Quarter |
3rd Quarter |
2nd Quarter |
TTM |
||||||||
Legacy Portfolio |
||||||||||||
Total Hotel Revenue |
$ 230,286 |
$ 211,281 |
$ 234,171 |
$ 246,109 |
$ 921,847 |
|||||||
Hotel EBITDA |
$ 72,548 |
$ 59,970 |
$ 75,437 |
$ 84,659 |
$ 292,614 |
|||||||
Hotel EBITDA Margin |
31.5% |
28.4% |
32.2% |
34.4% |
31.7% |
|||||||
EBITDA % of Total TTM |
24.8% |
20.5% |
25.8% |
28.9% |
100.0% |
|||||||
JV Interests in EBITDA |
$ 1,394 |
$ 1,272 |
$ 1,575 |
$ 2,069 |
$ 6,310 |
|||||||
PIM Highland Holding LLC Portfolio |
||||||||||||
Total Hotel Revenue |
$ 73,321 |
$ 73,767 |
$ 74,232 |
$ 82,274 |
$ 303,595 |
|||||||
Hotel EBITDA |
$ 18,916 |
$ 20,087 |
$ 20,679 |
$ 27,347 |
$ 87,029 |
|||||||
Hotel EBITDA Margin |
25.8% |
27.2% |
27.9% |
33.2% |
28.7% |
|||||||
EBITDA % of Total TTM |
21.7% |
23.1% |
23.8% |
31.4% |
100.0% |
|||||||
Legacy and PIM Highland Holding LLC Combined |
||||||||||||
Total Hotel Revenue |
$ 303,607 |
$ 285,048 |
$ 308,403 |
$ 328,383 |
$ 1,225,442 |
|||||||
Hotel EBITDA |
$ 91,464 |
$ 80,057 |
$ 96,116 |
$ 112,006 |
$ 379,643 |
|||||||
Hotel EBITDA Margin |
30.1% |
28.1% |
31.2% |
34.1% |
31.0% |
|||||||
EBITDA % of Total TTM |
24.1% |
21.1% |
25.3% |
29.5% |
100.0% |
|||||||
JV Interests in EBITDA |
$ 1,394 |
$ 1,272 |
$ 1,575 |
$ 2,069 |
$ 6,310 |
|||||||
NOTE: |
In 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented. |
|||||||||||
ASHFORD HOSPITALITY TRUST, INC. |
||||||||||||||
LEGACY AND ASHFORD'S 71.74% SHARE OF HIGHLAND HOSPITALITY PORTFOLIO (PIM HIGHLAND HOLDING LLC) |
||||||||||||||
PRO FORMA HOTEL REVPAR BY MARKET |
||||||||||||||
(Unaudited) |
||||||||||||||
Three Months Ended |
||||||||||||||
Number of |
Number of |
March 31, |
||||||||||||
Region |
Hotels |
Rooms |
2013 |
2012 |
% Change |
|||||||||
Atlanta, GA Area |
9 |
1,429 |
$ 84.98 |
$ 80.50 |
5.6% |
|||||||||
Boston, MA Area |
2 |
506 |
$ 108.72 |
$ 113.31 |
-4.1% |
|||||||||
Dallas / Ft. Worth Area |
7 |
1,745 |
$ 97.73 |
$ 95.68 |
2.2% |
|||||||||
Houston, TX Area |
3 |
608 |
$ 104.97 |
$ 101.81 |
3.1% |
|||||||||
Los Angeles, CA Metro Area |
8 |
1,785 |
$ 97.23 |
$ 90.28 |
7.7% |
|||||||||
Miami, FL Metro Area |
3 |
576 |
$ 152.38 |
$ 140.20 |
8.7% |
|||||||||
Minneapolis - St. Paul, MN-WI Area |
2 |
522 |
$ 80.96 |
$ 79.15 |
2.3% |
|||||||||
New York / New Jersey Metro Area |
7 |
1,560 |
$ 95.87 |
$ 86.13 |
11.3% |
|||||||||
Orlando, FL Area |
6 |
1,834 |
$ 93.40 |
$ 85.17 |
9.7% |
|||||||||
Philadelphia, PA Area |
4 |
1,147 |
$ 88.89 |
$ 87.45 |
1.6% |
|||||||||
San Diego, CA Area |
3 |
706 |
$ 100.42 |
$ 107.22 |
-6.3% |
|||||||||
San Francisco - Oakland, CA Metro Area |
6 |
1,416 |
$ 120.63 |
$ 111.32 |
8.4% |
|||||||||
Seattle, WA Area |
2 |
608 |
$ 103.08 |
$ 96.21 |
7.1% |
|||||||||
Tampa, FL Area |
4 |
875 |
$ 127.92 |
$ 121.27 |
5.5% |
|||||||||
Washington DC - MD - VA Area |
11 |
2,698 |
$ 119.92 |
$ 116.86 |
2.6% |
|||||||||
Other Areas |
45 |
7,558 |
$ 86.92 |
$ 84.57 |
2.8% |
|||||||||
Total Portfolio |
122 |
25,573 |
$ 99.24 |
$ 95.11 |
4.3% |
|||||||||
NOTE: |
The above pro forma table presents the 94 hotel properties included in Company's continuing operations and the 28 hotel properties included in Highland Hospitality Portfolio (PIM Highland Holding LLC) as if these hotels were owned as of the beginning of the periods presented. |
|||||||||||||
ASHFORD HOSPITALITY TRUST, INC. |
||||||||||||||
LEGACY AND ASHFORD'S 71.74% SHARE OF PIM HIGHLAND HOLDING LLC |
||||||||||||||
PRO FORMA HOTEL OPERATING PROFIT (HOTEL EBITDA) BY MARKET |
||||||||||||||
(Unaudited) |
||||||||||||||
Three Months Ended |
||||||||||||||
Number of |
Number of |
March 31, |
||||||||||||
Region |
Hotels |
Rooms |
2013 |
% of |
2012 |
% of |
% Change |
|||||||
Atlanta, GA Area |
9 |
1,429 |
$ 3,670 |
4.0% |
$ 3,330 |
3.9% |
10.2% |
|||||||
Boston, MA Area |
2 |
506 |
1,310 |
1.4% |
1,545 |
1.8% |
-15.2% |
|||||||
Dallas / Ft. Worth Area |
7 |
1,745 |
7,310 |
8.0% |
6,901 |
8.0% |
5.9% |
|||||||
Houston, TX Area |
3 |
608 |
2,600 |
2.8% |
2,792 |
3.2% |
-6.9% |
|||||||
Los Angeles, CA Metro Area |
8 |
1,785 |
6,589 |
7.2% |
5,888 |
6.8% |
11.9% |
|||||||
Miami, FL Metro Area |
3 |
576 |
4,173 |
4.6% |
3,530 |
4.1% |
18.2% |
|||||||
Minneapolis - St. Paul, MN-WI Area |
2 |
522 |
1,379 |
1.5% |
1,440 |
1.7% |
-4.2% |
|||||||
New York / New Jersey Metro Area |
7 |
1,560 |
5,576 |
6.1% |
4,037 |
4.7% |
38.1% |
|||||||
Orlando, FL Area |
6 |
1,834 |
6,108 |
6.7% |
4,892 |
5.7% |
24.9% |
|||||||
Philadelphia, PA Area |
4 |
1,147 |
2,948 |
3.2% |
2,790 |
3.2% |
5.7% |
|||||||
San Diego, CA Area |
3 |
706 |
2,830 |
3.1% |
3,501 |
4.1% |
-19.2% |
|||||||
San Francisco - Oakland, CA Metro Area |
6 |
1,416 |
5,898 |
6.4% |
5,235 |
6.1% |
12.7% |
|||||||
Seattle, WA Area |
2 |
608 |
2,444 |
2.7% |
2,171 |
2.5% |
12.6% |
|||||||
Tampa, FL Area |
4 |
875 |
5,036 |
5.5% |
4,675 |
5.4% |
7.7% |
|||||||
Washington DC - MD - VA Area |
11 |
2,698 |
11,990 |
13.1% |
11,455 |
13.3% |
4.7% |
|||||||
Other Areas |
45 |
7,558 |
21,603 |
23.6% |
22,093 |
25.6% |
-2.2% |
|||||||
Total Portfolio |
122 |
25,573 |
$ 91,464 |
100.0% |
$ 86,277 |
100.0% |
6.0% |
|||||||
NOTES: |
||||||||||||||
(1) |
The above pro forma table presents the 94 hotel properties included in Company's continuing operations and the 28 hotel properties included in Highland Hospitality Portfolio (PIM Highland Holding LLC) as if these hotels were owned as of the beginning of the periods presented. |
|||||||||||||
(2) |
The above pro forma table includes hotel operating profit for 100% of the 94 hotel properties included in the Company's continuting operations and the Company's 71.74% share of the 28 hotels included in Highland Hospitality Portfolio (PIM Highland Holding LLC) as if these hotels were owned as of the beginning of the periods presented. |
|||||||||||||
(3) |
In 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year to calendar quarters. The above proforma table assumes the Marriott-managed properties were reported on calendar quarters for all periods presented. |
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES |
|
TOTAL ENTERPRISE VALUE |
|
MARCH 31, 2013 |
|
(in thousands, except share price) |
|
(Unaudited) |
|
March 31, |
|
2013 |
|
End of quarter common shares outstanding |
68,333 |
Partnership units outstanding (common share equivalents) |
18,849 |
Combined common shares and partnership units outstanding |
87,182 |
Common stock price at quarter end |
$ 12.36 |
Market capitalization at quarter end |
$ 1,077,570 |
Series A preferred stock |
$ 41,430 |
Series D preferred stock |
$ 236,718 |
Series E preferred stock |
$ 115,750 |
Consolidated debt on balance sheet date |
$ 2,390,725 |
Joint venture partners' share of consolidated debt |
$ (50,756) |
Ashford's share of Highland portfolio debt |
$ 807,191 |
Cash, cash equivalents and marketable securities, net |
$ (234,240) |
Total enterprise value (TEV) as of March 31, 2013 |
$ 4,384,387 |
Ashford Hospitality Trust, Inc. |
|||||||||||||
Anticipated Capital Expenditures Calendar |
|||||||||||||
Legacy Hotels (a) |
|||||||||||||
2013 |
|||||||||||||
Rooms |
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|||||||||
Actual |
Estimated |
Estimated |
Estimated |
||||||||||
Hilton Santa Fe |
157 |
x |
x |
||||||||||
Crowne Plaza Key West |
160 |
x |
x |
||||||||||
Hilton Costa Mesa |
486 |
x |
|||||||||||
Sheraton San Diego Mission Valley |
260 |
x |
|||||||||||
Courtyard Hartford Manchester |
90 |
x |
|||||||||||
Embassy Suites Walnut Creek |
249 |
x |
|||||||||||
Embassy Suites Portland Downtown |
276 |
x |
|||||||||||
Courtyard Philadelphia Downtown |
498 |
x |
|||||||||||
Residence Inn Palm Desert |
130 |
x |
|||||||||||
Hilton LaJolla Torrey Pines |
296 |
x |
x |
||||||||||
Courtyard Dallas Plano in Legacy Park |
153 |
x |
|||||||||||
Embassy Suites Dulles |
150 |
x |
|||||||||||
Embassy Suites East Syracuse |
215 |
x |
|||||||||||
Residence Inn Lake Buena Vista |
210 |
x |
|||||||||||
Hilton Garden Inn Jacksonville |
119 |
x |
x |
||||||||||
Residence Inn Atlanta Buckhead Lenox Park |
150 |
x |
x |
||||||||||
Hampton Inn Lawrenceville |
86 |
x |
|||||||||||
Marriott Dallas Plano Legacy |
404 |
x |
x |
x |
|||||||||
Embassy Suites Palm Beach Garden |
160 |
x |
x |
||||||||||
Hampton Inn Terre Haute |
112 |
x |
x |
||||||||||
Hampton Inn Buford |
92 |
x |
x |
||||||||||
Courtyard Marriott Village at LBV |
312 |
x |
x |
||||||||||
Hilton St Petersburg |
333 |
x |
x |
||||||||||
Marriott Crystal Gateway |
697 |
x |
|||||||||||
Hyatt Coral Gables |
242 |
x |
|||||||||||
Marriott Seattle Waterfront |
358 |
x |
|||||||||||
Residence Inn San Diego Sorrento Mesa |
150 |
x |
|||||||||||
Residence Inn Newark |
168 |
x |
|||||||||||
Courtyard Bloomington |
117 |
x |
|||||||||||
Embassy Suites Dallas |
150 |
x |
|||||||||||
Embassy Suites Orlando |
174 |
x |
|||||||||||
Residence Inn Hartford |
96 |
x |
|||||||||||
(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2013 are included in this table. |
|||||||||||||
PIM Highland Holding LLC |
||||||
Anticipated Capital Expenditures Calendar |
||||||
Highland Hotels (a) |
||||||
2013 |
||||||
Rooms |
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
||
Actual |
Estimated |
Estimated |
Estimated |
|||
Courtyard Boston Tremont |
315 |
x |
x |
x |
x |
|
Courtyard Savannah |
156 |
x |
||||
The Melrose |
240 |
x |
||||
Marriott San Antonio Plaza |
251 |
x |
||||
Hilton Garden Inn Virginia Beach |
176 |
x |
||||
Hyatt Regency Wind Watch |
358 |
x |
x |
x |
||
Marriott Sugarland |
300 |
x |
x |
|||
Hyatt Regency Savannah |
351 |
x |
||||
Hilton Boston Back Bay |
390 |
x |
x |
|||
Hilton Parsippany |
354 |
x |
x |
x |
||
Marriott DFW |
491 |
x |
x |
|||
Silversmith |
143 |
x |
x |
|||
Hilton Garden Inn BWI |
158 |
x |
x |
|||
Hilton Garden Inn Austin |
254 |
x |
||||
Renaissance Nashville |
673 |
x |
x |
|||
(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2013 are included in this table. |
||||||
SOURCE Ashford Hospitality Trust, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article