Ashford Prime Reports Second Quarter 2015 Results

9.0% RevPAR Increase for All Hotels for the Second Quarter

The Company Increased its Common Dividend by 100% During the Quarter

Adjusted Funds from Operations per Share Increased 33%

Aug 06, 2015, 16:05 ET from Ashford Hospitality Prime, Inc.

DALLAS, Aug. 6, 2015 /PRNewswire/ -- Ashford Hospitality Prime, Inc. (NYSE: AHP) ("Ashford Prime" or the "Company") today reported the following results and performance measures for the second quarter ended June 30, 2015.  The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) are pro forma assuming each of the hotel properties in the Company's hotel portfolio as of June 30, 2015 were owned as of the beginning of each of the periods presented.  Unless otherwise stated, all reported results compare the second quarter ended June 30, 2015, with the second quarter ended June 30, 2014 (see discussion below).  The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

FINANCIAL AND OPERATING HIGHLIGHTS

  • The Company's common stock is currently trading at a trailing 12-month NOI cap rate of approximately 9.4%, while similar assets to those in its portfolio are trading in the private market at an approximate average trailing 12-month NOI cap rate of 6.50%.  A 6.50% cap rate implies a share price for the Company's common stock of $27.60
  • RevPAR for all hotels increased 9.0% to $200.86 during the second quarter, driven by a 7.6% increase in ADR and a 1.3% increase in occupancy
  • Hotel EBITDA increased $3.2 million or 10.5% for all hotels
  • Adjusted funds from operations (AFFO) was $0.60 per diluted share for the quarter compared with $0.45 from the prior-year quarter representing an increase of 33%
  • During the quarter, the Company's Board of Directors increased its quarterly common dividend by 100%
  • During the quarter, the Company closed a private placement of its Series A Cumulative Convertible Preferred Stock in a 144A offering for $65.0 million in gross proceeds.  The Company also closed a private placement under Regulation D under the Securities Act of 1933 of 200,000 shares of the Company's common stock at a price of $15.52 per share for gross proceeds of $3.1 million
  • Subsequent to quarter end, the Company announced it had completed the acquisition of the leasehold interest in the award-winning 62-room Bardessono Hotel and Spa in Yountville, CA for total consideration of $85.0 million.  Ashford Inc. provided $2.0 million in key money consideration for the acquisition
  • Capex invested in the quarter was $4.1 million

CAPITAL STRUCTURE At June 30, 2015, the Company had total assets of $1.3 billion in continuing operations.  As of June 30, 2015, the Company had $762 million of mortgage debt in continuing operations of which $49.2 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 4.53%.

On June 11, 2015, the Company announced it had closed a private placement of its Series A Cumulative Convertible Preferred Stock in a 144A offering for $65 million in gross proceeds.  The initial conversion price is $18.90 per share.  The Company also closed a private placement under Regulation D under the Securities Act of 1933 of 200,000 shares of the Company's common stock at a price of $15.52 per share for gross proceeds of $3.1 million.  Net proceeds from these offerings were used to finance the acquisition of the Bardessono Hotel and Spa as well as for general corporate purposes.

Subsequent to quarter end, on July 9, 2015, the Company announced it had closed on the previously-announced acquisition of the leasehold interest in the award-winning 62-room Bardessono Hotel and Spa in Yountville, CA for a total consideration of $85.0 million.  Ashford Inc. provided $2.0 million in key money consideration for the acquisition. 

PORTFOLIO REVPAR As of June 30, 2015, the Company's hotel portfolio consisted of direct hotel investments with ten properties classified in continuing operations.  During the second quarter of 2015, all hotels included in continuing operations were not under renovation. 

  • Pro forma RevPAR increased 9.0% to $200.86 for all hotels on a 7.6% increase in ADR and a 1.3% increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS The Company 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, 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 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 Pro forma Hotel EBITDA and Pro forma Hotel EBITDA Margin.  The details of the quarterly calculations for the previous four quarters for the ten hotels included in continuing operations are provided in the table attached to this release.

COMMON STOCK DIVIDEND On June 15, 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 second quarter ending June 30, 2015, payable on July 15, 2015, to shareholders of record as of June 30, 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 Company also provided some financial and market metrics that are pertinent to the valuation of the platform as well as the disconnect between the current public market valuation of the Company and private market values.  Ashford Prime's common stock is currently trading at a trailing 12-month NOI cap rate of approximately 9.4%.  Based on deals the Company has seen trade and other market information from industry consultants, the Company believes similar assets to those in its portfolio are trading in the private market at an approximate average trailing 12-month NOI cap rate of 6.50% which would imply a share price for Ashford Prime common stock of $27.60, which is approximately 97% higher than the current trading price of Ashford Prime common stock. 

"The Prime portfolio had another quarter of strong performance marked by solid RevPAR, EBITDA and AFFO growth," commented Monty J. Bennett, Ashford Prime's Chairman and Chief Executive Officer.  "Investing in high quality, high RevPAR assets in gateway and resort markets is core to our strategy and to that end, we are thrilled to add the award-winning Bardessono Hotel in Napa Valley to our growing Prime portfolio." 

INVESTOR CONFERENCE CALL AND SIMULCAST Ashford Hospitality Prime, Inc. will conduct a conference call on Friday, August 7, 2015, 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, August 14, 2015, by dialing (719) 457-0820 and entering the confirmation number, 8880718. 

The Company will also provide an online simulcast and rebroadcast of its second 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, August 7, 2015, 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 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 Hospitality Prime is a conservatively capitalized real estate investment trust (REIT) focused on investing in high RevPAR full-service and urban select-service hotels and resorts located predominantly in domestic and international gateway and resort 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)

June 30,

December 31,

2015

2014

ASSETS

Cash and cash equivalents

$                   180,467

$                 171,439

Investments in hotel properties, net

978,678

990,303

Restricted cash

29,372

29,646

Accounts receivable, net of allowance of $44 and $47, respectively

13,184

12,382

Inventories

682

696

Note receivable

8,098

8,098

Deferred costs, net

4,508

4,707

Prepaid expenses

3,149

2,422

Investment in AIM REHE Fund

50,472

-

Derivative assets

3

35

Other assets

6,712

1,193

Intangible asset, net

2,498

2,542

Due from related party, net

649

541

Due from third-party hotel managers

8,077

5,504

      Total assets

$                1,286,549

$              1,229,508

LIABILITIES AND EQUITY

Liabilities:

Indebtedness

$                   762,358

$                 765,230

Accounts payable and accrued expenses

30,685

29,273

Dividends payable

3,021

1,425

Unfavorable management contract liabilities

237

316

Due to Ashford Trust, net

1,343

896

Due to Ashford Inc.

2,404

2,546

Due to third-party hotel managers

1,142

954

Intangible liability, net

3,710

3,739

Other liabilities

1,091

1,131

      Total liabilities

805,991

805,510

5.5% Series A cumulative convertible preferred stock, $0.01 par value, 2,600,000 shares issued and

outstanding at June 30, 2015

62,823

-

Redeemable noncontrolling interests in operating partnership

126,600

149,555

Equity:

      Common stock, $0.01 par value, 200,000,000 shares authorized, 25,593,433 and 25,393,433 shares issued and 24,257,456

         and 24,464,163 shares outstanding at June 30, 2015 and December 31, 2014, respectively

256

254

      Additional paid-in capital

393,921

391,184

      Accumulated deficit

(75,506)

(96,404)

      Treasury stock, at cost, 1,335,977 and 929,270 shares at June 30, 2015 and December 31, 2014, respectively

(23,053)

(16,130)

         Total stockholders' equity of the Company

295,618

278,904

Noncontrolling interest in consolidated entities

(4,483)

(4,461)

      Total equity

291,135

274,443

         Total liabilities and equity

$                1,286,549

$              1,229,508

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 Three Months Ended 

 Six Months Ended 

 June 30, 

 June 30, 

2015

2014

2015

2014

REVENUE

Rooms

$                 67,787

$                 62,260

$               122,284

$               106,231

Food and beverage

21,792

18,421

42,022

33,602

Other

3,221

3,243

6,243

5,879

Total hotel revenue

92,800

83,924

170,549

145,712

Other

37

43

77

61

Total revenue

92,837

83,967

170,626

145,773

EXPENSES

Hotel operating expenses

Rooms

14,113

13,571

27,091

24,525

Food and beverage

13,539

11,575

26,608

21,259

Other expenses

22,973

20,375

43,897

36,999

Management fees 

3,751

3,393

6,855

5,911

Total hotel operating expenses

54,376

48,914

104,451

88,694

Property taxes, insurance and other

4,601

4,384

9,196

8,051

Depreciation and amortization

10,559

10,706

21,076

19,479

Advisory services fee:

Base advisory fee

2,164

2,238

4,369

4,209

Advisory services fee – other services

436

597

982

820

Non-cash stock/unit-based compensation

442

1,110

911

1,110

Transaction costs

-

233

-

1,826

Corporate, general and administrative:

Non-cash stock/unit-based compensation

254

246

254

246

Other general and administrative

931

725

2,054

1,749

Total operating expenses

73,763

69,153

143,293

126,184

OPERATING INCOME

19,074

14,814

27,333

19,589

Equity in loss of unconsolidated entity

(820)

-

(820)

-

Interest income

5

6

9

10

Other income

1,153

-

1,292

-

Interest expense

(8,489)

(9,556)

(17,519)

(18,174)

Amortization of loan costs

(640)

(477)

(1,193)

(848)

Write-off of loan costs and exit fees

-

-

(54)

-

Unrealized loss on marketable securities

(1,323)

-

-

-

Unrealized loss on derivatives

(8)

(51)

(40)

(66)

INCOME BEFORE INCOME TAXES

8,952

4,736

9,008

511

Income tax (expense) benefit 

172

(211)

(309)

(437)

NET INCOME

9,124

4,525

8,699

74

(Income) loss from consolidated entities attributable to noncontrolling interest

(125)

182

22

587

Net income attributable to redeemable noncontrolling interests in operating partnership

(2,275)

(1,210)

(2,203)

(42)

NET INCOME ATTRIBUTABLE TO THE COMPANY

6,724

3,497

6,518

619

Preferred dividends

(198)

-

(198)

-

NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$                   6,526

$                   3,497

$                   6,320

$                      619

INCOME PER SHARE – BASIC AND DILUTED

Basic:

Net income attributable to common stockholders

$                     0.27

$                     0.14

$                     0.26

$                     0.03

Weighted average common shares outstanding – basic

24,017

25,291

24,043

23,808

Diluted:

Net income attributable to common stockholders

$                     0.27

$                     0.14

$                     0.26

$                     0.02

Weighted average common shares outstanding – diluted

24,773

34,396

32,519

32,749

Dividends declared per common share:

$                     0.10

$                     0.05

$                     0.15

$                     0.10

Amounts attributable to common stockholders:

Net income attributable to the Company

$                   6,724

$                   3,497

$                   6,518

$                      619

Preferred dividends

(198)

-

(198)

-

Net income attributable to common stockholders

$                   6,526

$                   3,497

$                   6,320

$                      619

 

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA 

 (in thousands) 

 (unaudited) 

 Three Months Ended 

 Six Months Ended 

 June 30, 

 June 30, 

2015

2014

2015

2014

 Net income 

$                   9,124

$                   4,525

$                   8,699

$                        74

 (Income) loss from consolidated entities attributable to noncontrolling interest 

(125)

182

22

587

 Net income attributable to redeemable noncontrolling interests in operating partnership 

(2,275)

(1,210)

(2,203)

(42)

 Net income attributable to the Company 

6,724

3,497

6,518

619

             Interest income 

(5)

(6)

(9)

(10)

             Interest expense and amortization of loan costs 

8,751

9,561

17,959

18,080

             Depreciation and amortization  

9,840

9,897

19,628

17,870

             Income tax expense (benefit)  

(172)

211

309

437

             Net income attributable to redeemable noncontrolling interests in operating partnership 

2,275

1,210

2,203

42

 EBITDA 

27,413

24,370

46,608

37,038

             Amortization of unfavorable management contract liabilities 

(40)

(39)

(79)

(79)

             Write-off of loan costs and exit fees 

-

-

54

-

             Transaction costs 

-

233

-

1,826

             Unrealized loss on marketable securities

1,323

-

-

-

             Unrealized loss on derivatives 

7

51

36

66

             Other income (1)

(1,153)

-

(1,292)

-

             Compensation adjustment related to modified employment terms 

-

573

-

573

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

697

783

1,166

783

             Dead deal costs 

40

-

312

-

             Company's portion of unrealized loss of AIM REHE Fund 

820

-

820

-

 Adjusted EBITDA 

$                 29,107

$                 25,971

$                 47,625

$                 40,207

(1)  Other income, primarily consisting of net realized gain/loss on marketable securities is excluded from Adjusted EBITDA.   

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

 (in thousands, except per share amounts) 

 (unaudited) 

 Three Months Ended 

 Six Months Ended 

 June 30, 

 June 30, 

2015

2014

2015

2014

 Net income 

$                   9,124

$                   4,525

$                   8,699

$                        74

 (Income) loss from consolidated entities attributable to noncontrolling interest 

(125)

182

22

587

 Net income attributable to redeemable noncontrolling interests in operating partnership 

(2,275)

(1,210)

(2,203)

(42)

 Preferred dividends 

(198)

-

(198)

-

 Net income attributable to common stockholders 

6,526

3,497

6,320

619

              Depreciation and amortization on real estate 

9,840

9,897

19,628

17,870

              Net income attributable to redeemable noncontrolling interests in operating partnership 

2,275

1,210

2,203

42

 FFO available to common stockholders 

18,641

14,604

28,151

18,531

             Preferred dividends

198

-

198

-

             Unrealized loss on marketable securities

1,323

-

-

-

             Unrealized loss on derivatives

7

51

36

66

             Other income (1)

(1,153)

-

(1,292)

-

             Transaction costs

-

233

-

1,826

             Dead deal costs

40

-

312

-

             Compensation adjustment related to modified employment terms

-

573

-

573

             Write-off of loan costs and exit fees

-

-

54

-

             Company's portion of unrealized loss of AIM REHE Fund

820

-

820

-

 Adjusted FFO available to common stockholders 

$                 19,876

$                 15,461

$                 28,279

$                 20,996

 Adjusted FFO per diluted share available to common stockholders 

$                     0.60

$                     0.45

$                     0.86

$                     0.64

 Weighted average diluted shares 

33,234

34,465

32,928

32,813

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

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

JUNE 30, 2015

(dollars in thousands)

(unaudited)

 Proforma 

 Proforma 

 Fixed-Rate 

 Floating-Rate 

 Total 

 TTM Hotel 

 TTM EBITDA 

Indebtedness

Maturity

Interest Rate

 Debt 

 Debt 

 Debt 

 EBITDA 

 Debt Yield 

 GACC Sofitel - 1 hotel 

March 2016

LIBOR + 2.30%

$                      -

$              80,000

(3)

$              80,000

$                9,902

12.4%

 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

9,361

13.4%

 Wachovia Philly CY - 1 hotel 

April 2017

5.91%

33,621

-

33,621

12,316

36.6%

 Wachovia 3 - 2 hotels 

April 2017

5.95%

123,246

-

123,246

19,981

16.2%

 Wachovia 7 - 3 hotels 

April 2017

5.95%

250,794

-

250,794

30,722

12.2%

 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%

-

196,599

(4)

196,599

29,038

14.8%

 Total 

$            415,759

$            346,599

$            762,358

$            111,320

14.6%

 Percentage 

54.5%

45.5%

100.0%

 Weighted average interest rate 

6.08%

2.67%

4.53%

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 beginning March 2016, subject to satisfaction of certain conditions.

(4) This mortgage loan has two one-year extension options beginning November 2019, subject to satisfaction of certain conditions.  

 

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED 

 JUNE 30, 2015 

 (in thousands) 

 (unaudited) 

2015

2016

2017

2018

2019

 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

 Aareal - 2 hotels 

-

-

-

-

-

177,486

177,486

 Credit Agricole Pier House - 1 hotel 

-

-

-

-

-

70,000

70,000

 Principal due in future periods 

$                -

$                -

$     393,979

$         8,098

$       80,000

$     247,486

$     729,563

 Scheduled amortization payments remaining 

4,337

8,646

7,526

2,939

3,120

6,228

32,795

 Total indebtedness 

$         4,337

$         8,646

$     401,505

$       11,037

$       83,120

$     253,714

$     762,358

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS - PRO FORMA

(unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2015

2014

% Variance

2015

2014

% Variance

ALL HOTELS:

Rooms revenue (in thousands)

$        67,787

$        62,135

9.10%

$     122,284

$     111,290

9.88%

RevPAR

$        200.86

$        184.33

8.97%

$       182.21

$       166.01

9.76%

Occupancy

86.41%

85.29%

1.31%

82.50%

79.80%

3.38%

ADR

$        232.44

$        216.12

7.55%

$       220.86

$       208.04

6.16%

NOTES:

(1)

The above pro forma table assumes the ten hotel properties owned and included in the Company's operations at June 30, 2015 were owned as of the

beginning of each of the periods presented.

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

PRO FORMA HOTEL OPERATING PROFIT MARGIN

(unaudited)

THE FOLLOWING PRO FORMA EBITDA MARGIN TABLE REFLECTS THE TEN HOTELS INCLUDED 

IN THE COMPANY'S OPERATIONS AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF 

THE FIRST COMPARATIVE REPORTING PERIOD.

All Hotels

HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN:

2nd Quarter 2015

36.53%

2nd Quarter 2014

36.12%

Variance

0.41%

HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:

Rooms 

0.47%

Food & Beverage and Other Departmental

0.35%

Administrative & General 

0.11%

Sales & Marketing

0.26%

Hospitality

0.00%

Repair & Maintenance 

0.22%

Energy 

0.14%

Franchise Fee 

0.00%

Management Fee 

-0.05%

Incentive Management Fee 

-1.16%

Insurance 

0.24%

Property Taxes

-0.02%

Other Taxes

0.02%

Leases/Other

-0.17%

Total

0.41%

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED PROFORMA FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND REPORTING INFORMATION BY PROPERTY FOR THE TEN PROPERTIES INCLUDED IN THE ASHFORD PRIME PORTFOLIO. 

Three Months Ended

Six Months Ended

TTM

June 30,

June 30,

June 30,

2015

2014

% Variance

2015

2014

% Variance

2015

CAPITAL HILTON WASHINGTON DC

Selected Financial Information:

Rooms Revenue

$       11,706

$       11,040

6.03%

$        20,080

$       19,029

5.52%

$                37,871

Total Revenue 

$       16,529

$       15,370

7.54%

$        29,768

$       27,358

8.81%

$                54,537

EBITDA

$         6,298

$         5,647

11.53%

$          9,401

$         8,365

12.38%

$                16,219

EBITDA Margin

38.10%

36.74%

1.36%

31.58%

30.58%

1.00%

29.74%

Selected Operating Information:

RevPAR

$       234.44

$       222.94

5.16%

$        202.50

$       193.22

4.80%

$                189.54

Occupancy

92.61%

94.91%

-2.42%

85.36%

84.09%

1.51%

85.39%

ADR

$       253.15

$       234.90

7.77%

$        237.24

$       229.79

3.24%

$                221.97

LA JOLLA HILTON TORREY PINES

Selected Financial Information:

Rooms Revenue

$         5,951

$         5,168

15.15%

$        11,834

$       10,435

13.41%

$                22,973

Total Revenue 

$       10,912

$         8,899

22.62%

$        21,715

$       18,312

18.58%

$                40,590

EBITDA

$         3,755

$         2,621

43.27%

$          7,355

$         5,478

34.26%

$                12,820

EBITDA Margin

34.41%

29.45%

4.96%

33.87%

29.91%

3.96%

31.58%

Selected Operating Information:

RevPAR

$       165.99

$       144.13

15.17%

$        165.94

$       146.33

13.40%

$                159.74

Occupancy

85.18%

81.28%

4.79%

84.20%

81.12%

3.79%

86.03%

ADR

$       194.87

$       177.32

9.90%

$        197.08

$       180.38

9.26%

$                185.69

CHICAGO SOFITEL WATER TOWER

Selected Financial Information:

Rooms Revenue

$         8,343

$         8,073

3.34%

$        12,200

$       11,776

3.60%

$                27,793

Total Revenue 

$       11,426

$       11,763

-2.86%

$        17,050

$       17,671

-3.51%

$                39,145

EBITDA

$         3,549

$         4,013

-11.56%

$          2,938

$         3,942

-25.47%

$                  9,902

EBITDA Margin

31.06%

34.12%

-3.05%

17.23%

22.31%

-5.08%

25.30%

Selected Operating Information:

RevPAR

$       220.92

$       213.77

3.34%

$        162.42

$       156.77

3.60%

$                183.48

Occupancy

86.84%

86.15%

0.80%

76.60%

75.98%

0.82%

80.76%

ADR

$       254.40

$       248.13

2.53%

$        212.04

$       206.34

2.76%

$                227.18

KEY WEST PIER HOUSE RESORT

Selected Financial Information:

Rooms Revenue

$         4,583

$         4,317

6.16%

$        10,317

$         9,730

6.03%

$                17,880

Total Revenue 

$         5,830

$         5,517

5.67%

$        12,784

$       12,251

4.35%

$                22,462

EBITDA

$         2,337

$         1,993

17.26%

$          5,839

$         5,117

14.11%

$                  9,361

EBITDA Margin

40.09%

36.12%

3.96%

45.67%

41.77%

3.91%

41.67%

Selected Operating Information:

RevPAR

$       354.65

$       334.12

6.14%

$        401.39

$       378.57

6.03%

$                344.98

Occupancy

90.81%

85.99%

5.61%

92.13%

89.18%

3.31%

88.01%

ADR

$       390.56

$       388.58

0.51%

$        435.67

$       424.50

2.63%

$                391.96

PHILADELPHIA COURTYARD DOWNTOWN

Selected Financial Information:

Rooms Revenue

$         7,885

$         6,882

14.57%

$        13,196

$       11,268

17.11%

$                25,925

Total Revenue 

$         9,432

$         8,390

12.42%

$        15,979

$       13,968

14.40%

$                31,663

EBITDA

$         4,227

$         3,750

12.72%

$          6,207

$         5,202

19.32%

$                12,316

EBITDA Margin

44.82%

44.70%

0.12%

38.84%

37.24%

1.60%

38.90%

Selected Operating Information:

RevPAR

$       173.64

$       151.55

14.58%

$        146.11

$       124.86

17.02%

$                142.34

Occupancy

89.01%

86.52%

2.88%

82.95%

76.15%

8.93%

82.77%

ADR

$       195.08

$       175.16

11.37%

$        176.14

$       163.96

7.43%

$                171.98

PLANO MARRIOTT LEGACY TOWN CENTER

Selected Financial Information:

Rooms Revenue

$         5,244

$         4,782

9.66%

$        10,294

$         9,320

10.45%

$                19,196

Total Revenue 

$         8,471

$         7,418

14.20%

$        16,677

$       14,803

12.66%

$                31,347

EBITDA

$         2,941

$         2,506

17.36%

$          5,875

$         5,008

17.31%

$                10,743

EBITDA Margin

34.72%

33.78%

0.94%

35.23%

33.83%

1.40%

34.27%

Selected Operating Information:

RevPAR

$       142.64

$       130.09

9.65%

$        140.77

$       127.45

10.45%

$                130.18

Occupancy

73.35%

72.96%

0.53%

72.02%

70.86%

1.63%

69.69%

ADR

$       194.47

$       178.29

9.07%

$        195.47

$       179.86

8.68%

$                186.79

SAN FRANCISCO COURTYARD DOWNTOWN

Selected Financial Information:

Rooms Revenue

$         9,285

$         8,788

5.66%

$        17,521

$       15,866

10.43%

$                35,639

Total Revenue 

$       10,828

$       10,166

6.51%

$        20,582

$       18,417

11.76%

$                41,551

EBITDA

$         3,610

$         3,623

-0.36%

$          6,697

$         6,092

9.93%

$                13,671

EBITDA Margin

33.34%

35.64%

-2.30%

32.54%

33.08%

-0.54%

32.90%

Selected Operating Information:

RevPAR

$       251.93

$       238.44

5.66%

$        239.01

$      216.44

10.43%

$                241.09

Occupancy

93.62%

93.95%

-0.35%

92.22%

87.48%

5.42%

92.24%

ADR

$       269.09

$       253.80

6.03%

$        259.17

$      247.41

4.75%

$                261.37

SEATTLE COURTYARD DOWNTOWN

Selected Financial Information:

Rooms Revenue

$         3,784

$         3,307

14.42%

$          6,305

$         5,622

12.15%

$                13,876

Total Revenue 

$         4,323

$         3,875

11.56%

$          7,215

$         6,707

7.57%

$                15,883

EBITDA

$         1,728

$         1,664

3.85%

$          2,891

$         2,790

3.62%

$                  6,310

EBITDA Margin

39.97%

42.94%

-2.97%

40.07%

41.60%

-1.53%

39.73%

Selected Operating Information:

RevPAR

$       166.34

$       145.37

14.43%

$        139.34

$       124.25

12.14%

$                152.07

Occupancy

82.70%

81.32%

1.70%

78.66%

79.19%

-0.68%

80.08%

ADR

$       201.13

$       178.76

12.52%

$        177.15

$       156.90

12.91%

$                189.88

SEATTLE MARRIOTT WATERFRONT

Selected Financial Information:

Rooms Revenue

$         7,360

$         6,272

17.35%

$        12,233

$       10,541

16.05%

$                26,736

Total Revenue 

$         9,575

$         8,228

16.37%

$        16,524

$       14,117

17.05%

$                34,909

EBITDA

$         4,030

$         3,460

16.47%

$          6,400

$         5,313

20.46%

$                14,103

EBITDA Margin

42.09%

42.05%

0.04%

38.73%

37.64%

1.10%

40.40%

Selected Operating Information:

RevPAR

$       225.91

$       192.53

17.34%

$        188.79

$       162.68

16.05%

$                204.61

Occupancy

86.10%

83.29%

3.38%

80.88%

77.37%

4.53%

81.41%

ADR

$       262.38

$       231.15

13.51%

$        233.43

$       210.25

11.02%

$                251.33

TAMPA RENAISSANCE

Selected Financial Information:

Rooms Revenue

$         3,646

$         3,505

4.02%

$          8,305

$         7,703

7.82%

$                14,512

Total Revenue 

$         5,475

$         5,319

2.93%

$        12,253

$       11,617

5.47%

$                21,855

EBITDA

$         1,426

$         1,408

1.28%

$          3,822

$         3,597

6.26%

$                  5,875

EBITDA Margin

26.05%

26.47%

-0.43%

31.19%

30.96%

0.23%

26.88%

Selected Operating Information:

RevPAR

$       136.76

$       131.47

4.02%

$        156.60

$       145.25

7.81%

$                135.70

Occupancy

80.90%

80.04%

1.07%

84.08%

82.32%

2.14%

81.25%

ADR

$       169.05

$       164.24

2.93%

$        186.25

$       176.45

5.55%

$                167.01

PRIME PROPERTIES TOTAL (10)

Selected Financial Information:

Rooms Revenue

$       67,787

$       62,135

9.10%

$      122,284

$     111,290

9.88%

$              242,401

Total Revenue 

$       92,800

$       84,944

9.25%

$      170,549

$     155,220

9.88%

$              333,943

EBITDA

$       33,902

$       30,686

10.48%

$        57,425

$       50,903

12.81%

$              111,320

EBITDA Margin

36.53%

36.12%

0.41%

33.67%

32.79%

0.88%

33.34%

Selected Operating Information:

RevPAR

$       200.86

$       184.33

8.97%

$        182.21

$       166.01

9.76%

$                179.13

Occupancy

86.41%

85.29%

1.30%

82.50%

79.80%

3.38%

82.66%

ADR

$       232.44

$       216.12

7.55%

$        220.86

$       208.04

6.16%

$                216.72

NOTES:

(1)

The above pro forma table assumes the ten hotel properties owned and included in the Company's operations at June 30, 2015, 

were owned as of the beginning of each of the periods presented.

 

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 PRO FORMA HOTEL OPERATING PROFIT 

 (dollars in thousands) 

 (unaudited) 

 ALL HOTELS: 

 Three Months Ended 

 Six Months Ended 

 June 30, 

 June 30, 

2015

2014

 % Variance 

2015

2014

 % Variance 

 REVENUE 

 Rooms 

$         67,787

$       62,135

9.1%

$     122,284

$      111,290

9.9%

 Food and beverage 

21,792

19,628

11.0%

42,022

37,633

11.7%

 Other 

3,221

3,182

1.2%

6,243

6,296

-0.8%

 Total hotel revenue 

92,800

84,945

9.2%

170,549

155,219

9.9%

 EXPENSES 

 Rooms 

14,113

13,313

6.0%

27,091

25,338

6.9%

 Food and beverage 

13,539

12,566

7.7%

26,608

24,655

7.9%

 Other direct 

988

1,031

-4.2%

1,945

2,006

-3.0%

 Indirect  

19,634

18,457

6.4%

38,458

35,925

7.1%

 Management fees, includes base and incentive fees 

6,053

4,512

34.2%

9,879

7,679

28.6%

 Total hotel operating expenses 

54,327

49,879

8.9%

103,981

95,603

8.8%

 Property taxes, insurance, and other 

4,571

4,380

4.4%

9,143

8,713

4.9%

 HOTEL OPERATING PROFIT (Hotel EBITDA) 

33,902

30,686

10.5%

57,425

50,903

12.8%

 Hotel EBITDA Margin 

36.53%

36.12%

0.41%

33.67%

32.79%

0.88%

 Minority interest in earnings of consolidated joint ventures 

2,513

2,067

21.6%

4,189

3,461

21.0%

 HOTEL OPERATING PROFIT (Hotel EBITDA), 

 excluding minority interest in joint ventures 

$       31,389

$     28,619

9.7%

$     53,236

$      47,442

12.2%

 NOTES: 

(1)

The above pro forma table assumes the ten hotel properties owned and included in the Company's operations at June 30, 2015 were owned as of the

beginning of each of the periods presented.

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

PRO FORMA HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)

THE FOLLOWING PRO FORMA SEASONALITY TABLE REFLECTS THE TEN HOTELS INCLUDED IN THE COMPANY'S

OPERATIONS AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF THE FIRST COMPARATIVE REPORTING

PERIOD.

2015

2015

2014

2014

2nd Quarter

1st Quarter

4th Quarter

3rd Quarter

TTM

Total Hotel Revenue

$                     92,800

$                77,749

$              77,817

$              85,577

$      333,943

Hotel EBITDA

$                     33,902

$                23,523

$              24,527

$              29,368

$      111,320

Hotel EBITDA Margin

36.53%

30.26%

31.52%

34.32%

33.33%

EBITDA % of Total TTM

30.5%

21.1%

22.0%

26.4%

100.0%

JV Interests in EBITDA

$                       2,513

$                  1,676

$                1,427

$                1,643

$          7,260

 

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 TOTAL ENTERPRISE VALUE 

JUNE 30, 2015

 (in thousands, except share price) 

 (unaudited) 

 June 30, 

2015

End of quarter common shares outstanding

24,257

Partnership units outstanding (common stock equivalents)

8,278

Combined common shares and partnership units outstanding

32,535

Common stock price at quarter end

$                      15.02

Market capitalization at quarter end

$                  488,676

Series A convertible preferred stock

$                    65,000

Debt on balance sheet date

$                  762,358

Joint venture partners' share of consolidated debt

$                  (49,150)

Net working capital (see below)

$                (245,197)

Total enterprise value (TEV)

$               1,021,687

Cash & cash equivalents

$                  176,987

Restricted cash

28,073

Accounts receivable, net

11,942

Prepaid expenses

2,960

Investment in AIM REHE, LP

50,472

Due from affiliates, net

(2,563)

Due from third-party hotel managers, net

7,157

Total current assets

$                  275,028

Accounts payable, net & accrued expenses

$                    26,810

Dividends payable

3,021

Total current liabilities

$                    29,831

Net working capital*

$                  245,197

* 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

Rooms

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Actual

Actual

Estimated

Estimated

Courtyard Seattle

250

x

Renaissance Tampa

293

x

x

Hilton La Jolla Torrey Pines 

394

x

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

 

 

SOURCE Ashford Hospitality Prime, Inc.



RELATED LINKS

http://www.ahpreit.com