Strategic Hotels & Resorts Reports Third Quarter 2012 Financial Results
CHICAGO, Nov. 7, 2012 /PRNewswire/ -- Strategic Hotels & Resorts, Inc. (NYSE: BEE) today reported results for the third quarter ended September 30, 2012.
($ in millions, except per share and operating metrics) |
Third Quarter |
||
Earnings Metrics |
2012 |
2011 |
% Change |
Net loss attributable to common shareholders |
$(8.6) |
$(11.9) |
N/A |
Net loss per diluted share |
$(0.05) |
$(0.06) |
N/A |
Comparable funds from operations (Comparable FFO) (a) |
$17.0 |
$11.3 |
50.9% |
Comparable FFO per diluted share (a) |
$0.08 |
$0.06 |
33.3% |
Comparable EBITDA (a) |
$46.6 |
$43.6 |
6.7% |
Total United States Portfolio Operating Metrics (b) |
|||
Average Daily Rate (ADR) |
$271.50 |
$258.06 |
5.2% |
Occupancy |
77.1% |
76.7% |
0.4 pts |
Revenue per Available Room (RevPAR) |
$209.39 |
$197.98 |
5.8% |
Total RevPAR |
$372.08 |
$352.09 |
5.7% |
EBITDA Margins |
24.1% |
24.1% |
N/A |
North American Same Store Operating Metrics (c) |
|||
ADR |
$257.57 |
$246.70 |
4.4% |
Occupancy |
78.5% |
77.6% |
0.9 pts |
RevPAR |
$202.27 |
$191.47 |
5.6% |
Total RevPAR |
$354.07 |
$334.68 |
5.8% |
EBITDA Margins |
23.6% |
22.2% |
140 bps |
(a) Please refer to tables provided later in this press release for a reconciliation of net loss to Comparable FFO, Comparable FFO per share and Comparable EBITDA. Comparable FFO, Comparable FFO per share and Comparable EBITDA are non-GAAP measures and are further explained with the reconciliation tables. |
(b) Operating statistics reflect results from the Company's Total United States portfolio (see portfolio definitions later in this press release). |
(c) Operating statistics reflect results from the Company's North American same store portfolio (see portfolio definitions later in this press release). |
"Our portfolio continued to perform very well during the quarter, with solid year-over-year growth," said Raymond L. "Rip" Gellein, Jr., Chairman of the Board and Chief Executive Officer of Strategic Hotels & Resorts, Inc. "The acquisition of the Essex House hotel was a terrific achievement, with early indicators showing very positive reception to the JW Marriott brand. Looking forward, we see positive trends heading into the new year with group pace significantly ahead of this time last year."
Third Quarter Highlights
- Net loss attributable to common shareholders was $8.6 million, or $0.05 per diluted share, in the third quarter of 2012, compared with a loss of $11.9 million, or $0.06 per diluted share, in the third quarter of 2011.
- Comparable FFO was $0.08 per diluted share in the third quarter of 2012, compared with $0.06 per diluted share in the prior year period.
- Comparable EBITDA was $46.6 million in the third quarter of 2012, compared with $43.6 million in the prior year period, a 6.7 percent increase between periods.
- Total United States portfolio RevPAR increased 5.8 percent in the third quarter of 2012, driven by a 5.2 percentage increase in ADR and a 0.4 percent point increase in occupancy, compared to the third quarter of 2011. Total RevPAR increased 5.7 percent between periods with non-rooms revenue increasing by 5.6 percent between periods.
- ADR growth in the Total United States portfolio was driven by a 5.8 percent increase in transient ADR compared to the third quarter of 2011 and a 3.2% increase in group ADR.
- RevPAR increased 7.2 percent in the third quarter of 2012 in the Company's Total United States resort portfolio and 4.4 percent in the Company's Total United States urban portfolio, compared to the third quarter of 2011.
- North American same store RevPAR increased 5.6 percent in the third quarter of 2012, driven by a 4.4 percentage increase in ADR and a 0.9 percent point increase in occupancy. Total RevPAR increased 5.8 percent with non-rooms revenue increasing by 6.0 percent between periods.
- European RevPAR increased 0.1 percent (5.6 percent in constant dollars) in the third quarter of 2012, driven by a 1.6 percent increase in ADR (7.2 percent in constant dollars) offsetting a 1.3 percentage point decrease in occupancy between periods. European Total RevPAR increased 0.1 percent in the third quarter over the prior year period (5.7 percent in constant dollars).
- Total United States portfolio EBITDA margins were flat in the third quarter of 2012, compared to the third quarter of 2011. EBITDA margins for the quarter were impacted by a $2.7 million real estate tax expense recorded at the Hotel del Coronado related to prior periods as the result of a reassessment of the asset's taxable basis. Excluding this one-time charge, Total United States portfolio EBITDA margins expanded by 110 basis points in the third quarter of 2012 and North American same store EBITDA margins expanded 140 basis points.
- Group room nights currently booked for 2012 are 0.1 percent lower than room nights booked for 2011 at the same time last year but at rates 3.5 percent higher, resulting in a 3.3 percent RevPAR increase.
The company reported financial results for the nine month period ended September 30, 2012 as follows:
- Net loss attributable to common shareholders was $43.1 million, or $0.22 per diluted share, compared with net loss attributable to common shareholders of $7.8 million, or $0.04 per diluted share, for the nine month period ended September 30, 2011.
- Comparable FFO was $0.21 per diluted share compared with $0.09 per diluted share in the nine month period ended September 30, 2011.
- Comparable EBITDA was $130.7 million compared with $114.8 million for the nine month period ended September 30, 2011, a 13.8 percent increase between periods.
Preferred Dividends
On August 30, 2012, the Company's Board of Directors declared a quarterly dividend of $0.53125 per share of 8.5 percent Series A Cumulative Redeemable Preferred Stock paid on October 1, 2012 to shareholders of record as of September 14, 2012, a quarterly dividend of $0.51563 per share of 8.25 percent Series B Cumulative Redeemable Preferred Stock paid on October 1, 2012 to shareholders of record as of September 14, 2012 and a quarterly dividend of $0.51563 per share of 8.25 percent Series C Cumulative Redeemable Preferred Stock paid on October 1, 2012 to shareholders of record as of September 14, 2012.
Transaction Activity
On September 14, 2012, the Company closed on the acquisition of the JW Marriott Essex House Hotel in New York City for a gross purchase price of approximately $362.3 million and established a joint venture arrangement with affiliates of KSL Capital Partners, LLC to fund the equity portion of the acquisition. The Company owns 51.0 percent of the joint venture and serves as managing member and asset manager.
Subsequent Events
On November 1, 2012, the Company closed a $90.0 million non-recourse mortgage agreement with MetLife secured by the Hyatt Regency La Jolla hotel. Under the terms of the loan agreement, the $97.5 million mortgage previously encumbering the property was replaced with a $72.0 million A-Note and an $18.0 million B-Note that will each mature December 1, 2017. The floating rate A-Note bears interest at LIBOR plus 400 basis points, subject to a 50 basis point LIBOR floor, and the B-Note bears interest at a fixed rate of 10.0 percent.
On November 2, 2012, the Company announced that Laurence S. Geller stepped down as President and Chief Executive Officer of Strategic Hotels & Resorts, Inc. and member of the Company's Board of Directors effective as of such date. Raymond L. "Rip" Gellein, Jr., Chairman of the Company's Board of Directors, was appointed Chief Executive Officer. In addition, Sheli Z. Rosenberg was appointed lead independent director of the Board.
2012 Guidance
Based on the results of the first three quarters and current forecasts for the remainder of the year, the Company is reaffirming its guidance range for full year 2012 RevPAR growth, Total RevPAR growth, Comparable EBITDA, and Comparable FFO per diluted share.
For the year ending December 31, 2012, the Company anticipates that Comparable EBITDA will be in the range of $165.0 million to $180.0 million and Comparable FFO in the range of $0.21 and $0.29 per fully diluted share. Management is also reaffirming its guidance for North American same store RevPAR growth in the range between 6.0 percent to 8.0 percent and Total RevPAR growth in the range between 5.0 percent and 7.0 percent.
Portfolio Definitions
Total United States portfolio hotel comparisons for the third quarter of 2012 are derived from the Company's hotel portfolio at September 30, 2012, consisting of all 14 properties located in the United States, including unconsolidated joint ventures, but excluding the JW Marriott Essex House Hotel which was acquired on September 14, 2012.
North American same store hotel comparisons for the third quarter of 2012 are derived from the Company's hotel portfolio at September 30, 2012, consisting of properties located in North America and held for five or more quarters, in which operations are included in the consolidated results of the Company. As a result, same store comparisons include 13 properties and exclude the unconsolidated Hotel del Coronado and Fairmont Scottsdale Princess hotels and the recently acquired JW Marriott Essex House Hotel which was purchased on September 14, 2012.
European hotel comparisons for the third quarter of 2012 are derived from the Company's European owned and leased hotel properties at September 30, 2012, consisting of the Marriott London Grosvenor Square and the Marriott Hamburg hotels.
Earnings Call
The Company will conduct its third quarter 2012 conference call for investors and other interested parties on Thursday, November 8, 2012 at 10:00 a.m. Eastern Time (ET). Interested individuals are invited to access the call by dialing 888.679.8040 (toll international: 617.213.4851) with passcode 99633171. To participate on the webcast, log on to the company's website at http://www.strategichotels.com or http://edge.media-server.com/m/p/hssa33gr/lan/en.
For those unable to listen to the call live, a taped rebroadcast will be available beginning at 12:00 p.m. ET on November 8, 2012 through 11:59 p.m. ET on November 15, 2012. To access the replay, dial 888.286.8010 (toll international: 617.801.6888) with passcode 77474592. A replay of the call will also be available on the Internet at http://www.strategichotels.com or http://www.earnings.com for 30 days after the call.
The Company also produces supplemental financial data that includes detailed information regarding its operating results. This supplemental data is considered an integral part of this earnings release. These materials are available on the Strategic Hotels & Resorts' website at www.strategichotels.com within the Investor Relations section of the website.
About the Company
Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) which owns and provides value-enhancing asset management of high-end hotels and resorts in the United States, Mexico and Europe. The Company currently has ownership interests in 18 properties with an aggregate of 8,271 rooms and 851,600 square feet of meeting space. For a list of current properties and for further information, please visit the Company's website at http://www.strategichotels.com.
This press release contains forward-looking statements about Strategic Hotels & Resorts, Inc. (the "Company"). Except for historical information, the matters discussed in this press release are forward-looking statements subject to certain risks and uncertainties. These forward-looking statements include statements regarding the Company's future financial results, stabilization in the lodging space, positive trends in the lodging industry and the Company's continued focus on improving profitability. Actual results could differ materially from the Company's projections. Factors that may contribute to these differences include, but are not limited to the following: the effects of the recent global economic recession upon business and leisure travel and the hotel markets in which the Company invests; the Company's liquidity and refinancing demands; the Company's ability to obtain or refinance maturing debt; the Company's ability to maintain compliance with covenants contained in the Company's debt facilities; stagnation or further deterioration in economic and market conditions, particularly impacting business and leisure travel spending in the markets where the Company's hotels operate and in which the Company invests, including luxury and upper upscale product; general volatility of the capital markets and the market price of the Company's shares of common stock; availability of capital; the Company's ability to dispose of properties in a manner consistent with the Company's investment strategy and liquidity needs; hostilities and security concerns, including future terrorist attacks, or the apprehension of hostilities, in each case that affect travel within or to the United States, Mexico, Germany, England or other countries where the Company invests; difficulties in identifying properties to acquire and completing acquisitions; the Company's failure to maintain effective internal control over financial reporting and disclosure controls and procedures; risks related to natural disasters; increases in interest rates and operating costs, including insurance premiums and real property taxes; contagious disease outbreaks, such as the H1N1 virus outbreak; delays and cost-overruns in construction and development; marketing challenges associated with entering new lines of business or pursuing new business strategies; the Company's failure to maintain its status as a REIT; changes in the competitive environment in the Company's industry and the markets where the Company invests; changes in real estate and zoning laws or regulations; legislative or regulatory changes, including changes to laws governing the taxation of REITS; changes in generally accepted accounting principles, policies and guidelines; and litigation, judgments or settlements.
Additional risks are discussed in the Company's filings with the Securities and Exchange Commission, including those appearing under the heading "Item 1A. Risk Factors" in the Company's most recent Form 10-K and subsequent Form 10-Qs. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The forward-looking statements are made as of the date of this press release, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
The following tables reconcile projected 2012 net loss attributable to common shareholders to projected Comparable EBITDA, Comparable FFO and Comparable FFO per diluted share ($ in millions, except per share data):
Low Range |
High Range |
||
Net Loss Attributable to Common Shareholders |
$(85.9) |
$(71.0) |
|
Depreciation and Amortization |
120.3 |
120.3 |
|
Interest Expense |
83.4 |
83.4 |
|
Income Taxes |
0.8 |
0.8 |
|
Non-controlling Interests |
(0.3) |
(0.2) |
|
Adjustments from Consolidated Affiliates |
(9.4) |
(9.4) |
|
Adjustments from Unconsolidated Affiliates |
27.7 |
27.7 |
|
Preferred Shareholder Dividends |
24.2 |
24.2 |
|
Realized Portion of Deferred Gain on Sale Leasebacks |
(0.2) |
(0.2) |
|
Adjustment for Value Creation Plan |
2.8 |
2.8 |
|
Other Adjustments |
1.6 |
1.6 |
|
Comparable EBITDA |
$165.0 |
$180.0 |
Low Range |
High Range |
||
Net Loss Attributable to Common Shareholders |
$(85.9) |
$(71.0) |
|
Depreciation and Amortization |
119.2 |
119.2 |
|
Realized Portion of Deferred Gain on Sale Leasebacks |
(0.2) |
(0.2) |
|
Non-controlling Interests |
(0.3) |
(0.1) |
|
Adjustments from Consolidated Affiliates |
(5.0) |
(5.0) |
|
Adjustments from Unconsolidated Affiliates |
15.2 |
15.2 |
|
Adjustment for Value Creation Plan |
2.8 |
2.8 |
|
Other Adjustments |
(2.8) |
(2.8) |
|
Comparable FFO |
$43.0 |
$58.1 |
|
Comparable FFO per Diluted Share |
$0.21 |
$0.29 |
|
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Consolidated Statements of Operations (in thousands, except per share data)
|
||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2012 |
2011 |
2012 |
2011 |
|||||||||||||
Revenues: |
||||||||||||||||
Rooms |
$ |
119,067 |
$ |
110,048 |
$ |
323,709 |
$ |
310,330 |
||||||||
Food and beverage |
63,283 |
58,664 |
197,693 |
195,987 |
||||||||||||
Other hotel operating revenue |
21,040 |
19,939 |
59,338 |
59,860 |
||||||||||||
Lease revenue |
1,175 |
1,255 |
3,505 |
3,747 |
||||||||||||
Total revenues |
204,565 |
189,906 |
584,245 |
569,924 |
||||||||||||
Operating Costs and Expenses: |
||||||||||||||||
Rooms |
32,069 |
29,283 |
90,628 |
85,728 |
||||||||||||
Food and beverage |
47,355 |
45,345 |
143,065 |
142,010 |
||||||||||||
Other departmental expenses |
52,908 |
51,358 |
153,557 |
155,856 |
||||||||||||
Management fees |
6,182 |
5,879 |
18,012 |
18,203 |
||||||||||||
Other hotel expenses |
13,988 |
12,672 |
40,360 |
39,497 |
||||||||||||
Lease expense |
1,114 |
1,249 |
3,425 |
3,702 |
||||||||||||
Depreciation and amortization |
25,649 |
25,526 |
76,416 |
86,222 |
||||||||||||
Corporate expenses |
6,956 |
(2,228) |
23,632 |
24,206 |
||||||||||||
Total operating costs and expenses |
186,221 |
169,084 |
549,095 |
555,424 |
||||||||||||
Operating income |
18,344 |
20,822 |
35,150 |
14,500 |
||||||||||||
Interest expense |
(19,942) |
(21,838) |
(58,627) |
(67,148) |
||||||||||||
Interest income |
42 |
41 |
122 |
124 |
||||||||||||
Loss on early extinguishment of debt |
— |
(399) |
— |
(1,237) |
||||||||||||
Loss on early termination of derivative financial instruments |
— |
— |
— |
(29,242) |
||||||||||||
Equity in losses of unconsolidated affiliates |
(2,257) |
(1,867) |
(2,054) |
(6,266) |
||||||||||||
Foreign currency exchange (loss) gain |
(996) |
(209) |
(1,169) |
77 |
||||||||||||
Other income, net |
436 |
355 |
1,365 |
4,716 |
||||||||||||
Loss before income taxes and discontinued operations |
(4,373) |
(3,095) |
(25,213) |
(84,476) |
||||||||||||
Income tax benefit (expense) |
600 |
(867) |
(215) |
(279) |
||||||||||||
Loss from continuing operations |
(3,773) |
(3,962) |
(25,428) |
(84,755) |
||||||||||||
Income (loss) from discontinued operations, net of tax |
— |
19 |
(535) |
101,215 |
||||||||||||
Net (loss) income |
(3,773) |
(3,943) |
(25,963) |
16,460 |
||||||||||||
Net loss (income) attributable to the noncontrolling interests in SHR's operating partnership |
17 |
16 |
126 |
(70) |
||||||||||||
Net loss (income) attributable to the noncontrolling interests in consolidated affiliates |
1,241 |
(254) |
891 |
(997) |
||||||||||||
Net (loss) income attributable to SHR |
(2,515) |
(4,181) |
(24,946) |
15,393 |
||||||||||||
Preferred shareholder dividends |
(6,042) |
(7,721) |
(18,125) |
(23,164) |
||||||||||||
Net loss attributable to SHR common shareholders |
$ |
(8,557) |
$ |
(11,902) |
$ |
(43,071) |
$ |
(7,771) |
||||||||
Basic Loss Per Share: |
||||||||||||||||
Loss from continuing operations attributable to SHR common shareholders |
$ |
(0.04) |
$ |
(0.06) |
$ |
(0.22) |
$ |
(0.62) |
||||||||
Income (loss) from discontinued operations attributable to SHR common shareholders |
— |
— |
— |
0.58 |
||||||||||||
Net loss attributable to SHR common shareholders |
$ |
(0.04) |
$ |
(0.06) |
$ |
(0.22) |
$ |
(0.04) |
||||||||
Weighted average common shares outstanding |
206,523 |
186,146 |
198,872 |
173,349 |
||||||||||||
Diluted Loss Per Share: |
||||||||||||||||
Loss from continuing operations attributable to SHR common shareholders |
$ |
(0.05) |
$ |
(0.06) |
$ |
(0.22) |
$ |
(0.62) |
||||||||
Income (loss) from discontinued operations attributable to SHR common shareholders |
— |
— |
— |
0.58 |
||||||||||||
Net loss attributable to SHR common shareholders |
$ |
(0.05) |
$ |
(0.06) |
$ |
(0.22) |
$ |
(0.04) |
||||||||
Weighted average common shares outstanding |
218,182 |
186,146 |
198,872 |
173,349 |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Consolidated Balance Sheets (in thousands, except share data)
|
||||||||
September 30, 2012 |
December 31, 2011 |
|||||||
Assets |
||||||||
Investment in hotel properties, net |
$ |
2,001,747 |
$ |
1,692,431 |
||||
Goodwill |
40,359 |
40,359 |
||||||
Intangible assets, net of accumulated amortization of $10,295 and $8,915 |
30,971 |
30,635 |
||||||
Investment in unconsolidated affiliates |
117,005 |
126,034 |
||||||
Cash and cash equivalents |
82,048 |
72,013 |
||||||
Restricted cash and cash equivalents |
49,026 |
39,498 |
||||||
Accounts receivable, net of allowance for doubtful accounts of $1,542 and $1,698 |
55,153 |
43,597 |
||||||
Deferred financing costs, net of accumulated amortization of $6,308 and $3,488 |
12,846 |
10,845 |
||||||
Deferred tax assets |
2,600 |
2,230 |
||||||
Prepaid expenses and other assets |
55,955 |
29,047 |
||||||
Total assets |
$ |
2,447,710 |
$ |
2,086,689 |
||||
Liabilities, Noncontrolling Interests and Equity |
||||||||
Liabilities: |
||||||||
Mortgages and other debt payable |
$ |
1,185,347 |
$ |
1,000,385 |
||||
Bank credit facility |
124,000 |
50,000 |
||||||
Accounts payable and accrued expenses |
245,149 |
249,179 |
||||||
Distributions payable |
6,042 |
72,499 |
||||||
Deferred tax liabilities |
47,305 |
47,623 |
||||||
Total liabilities |
1,607,843 |
1,419,686 |
||||||
Noncontrolling interests in SHR's operating partnership |
5,129 |
4,583 |
||||||
Equity: |
||||||||
SHR's shareholders' equity: |
||||||||
8.50% Series A Cumulative Redeemable Preferred Stock ($0.01 par value per share; 4,148,141 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $105,907 and $130,148 in the aggregate) |
99,995 |
99,995 |
||||||
8.25% Series B Cumulative Redeemable Preferred Stock ($0.01 par value per share; 3,615,375 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $92,249 and $112,775 in the aggregate) |
87,064 |
87,064 |
||||||
8.25% Series C Cumulative Redeemable Preferred Stock ($0.01 par value per share; 3,827,727 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $97,667 and $119,377 in the aggregate) |
92,489 |
92,489 |
||||||
Common shares ($0.01 par value per share; 350,000,000 and 250,000,000 common shares authorized; 204,308,710 and 185,627,199 common shares issued and outstanding) |
2,043 |
1,856 |
||||||
Additional paid-in capital |
1,735,395 |
1,634,067 |
||||||
Accumulated deficit |
(1,215,567) |
(1,190,621) |
||||||
Accumulated other comprehensive loss |
(58,261) |
(70,652) |
||||||
Total SHR's shareholders' equity |
743,158 |
654,198 |
||||||
Noncontrolling interests in consolidated affiliates |
91,580 |
8,222 |
||||||
Total equity |
834,738 |
662,420 |
||||||
Total liabilities, noncontrolling interests and equity |
$ |
2,447,710 |
$ |
2,086,689 |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Financial Highlights Supplemental Financial Data (in thousands, except per share information)
|
||||||||
September 30, 2012 |
||||||||
Pro Rata Share |
Consolidated |
|||||||
Capitalization |
||||||||
Common shares outstanding |
204,309 |
204,309 |
||||||
Operating partnership units outstanding |
853 |
853 |
||||||
Restricted stock units outstanding |
1,370 |
1,370 |
||||||
Value Creation Plan units outstanding under the deferral program |
1,239 |
1,239 |
||||||
Combined shares and units outstanding |
207,771 |
207,771 |
||||||
Common stock price at end of period |
$ |
6.01 |
$ |
6.01 |
||||
Common equity capitalization |
$ |
1,248,704 |
$ |
1,248,704 |
||||
Preferred equity capitalization (at $25.00 face value) |
289,102 |
289,102 |
||||||
Consolidated debt |
1,309,347 |
1,309,347 |
||||||
Pro rata share of unconsolidated debt |
212,275 |
— |
||||||
Pro rata share of consolidated debt |
(138,648) |
— |
||||||
Cash and cash equivalents |
(82,048) |
(82,048) |
||||||
Total enterprise value |
$ |
2,838,732 |
$ |
2,765,105 |
||||
Net Debt / Total Enterprise Value |
45.8 |
% |
44.4 |
% |
||||
Preferred Equity / Total Enterprise Value |
10.2 |
% |
10.5 |
% |
||||
Common Equity / Total Enterprise Value |
44.0 |
% |
45.1 |
% |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
|
Discontinued Operations |
The results of operations of hotels sold are classified as discontinued operations and segregated in the consolidated statements of operations for all periods presented. The following hotel was sold during 2011 (in thousands): |
Hotel |
Date Sold |
Net Sales Proceeds |
||
Paris Marriott Champs Elysees (Paris Marriott) |
April 6, 2011 |
$ |
60,003 |
The following is a summary of income (loss) from discontinued operations for the three and nine months ended September 30, 2012 and 2011 (in thousands): |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2012 |
2011 |
2012 |
2011 |
|||||||||||||
Hotel operating revenues |
$ |
— |
$ |
— |
$ |
— |
$ |
9,743 |
||||||||
Operating costs and expenses |
— |
(54) |
— |
9,456 |
||||||||||||
Operating income |
— |
54 |
— |
287 |
||||||||||||
Foreign currency exchange (loss) gain |
— |
— |
(535) |
51 |
||||||||||||
Other income, net |
— |
— |
— |
326 |
||||||||||||
Income tax expense |
— |
— |
— |
(379) |
||||||||||||
(Loss) gain on sale |
— |
(35) |
— |
100,930 |
||||||||||||
Income (loss) from discontinued operations |
$ |
— |
$ |
19 |
$ |
(535) |
$ |
101,215 |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
|
Investments in Unconsolidated Affiliates |
(in thousands) |
On January 9, 2006, we purchased a 45% interest in the unconsolidated affiliate that owns the Hotel del Coronado. On February 4, 2011, we completed a recapitalization of the unconsolidated affiliate. As part of the recapitalization, a new unconsolidated affiliate was formed to own the Hotel del Coronado and to invest cash in the asset. Pursuant to the terms of the recapitalization, we became a limited partner in the new unconsolidated affiliate, and our ownership interest in the Hotel del Coronado decreased from 45% to 34.3%. On June 9, 2011, we completed a recapitalization of the Fairmont Scottsdale Princess hotel. As part of the recapitalization, our ownership interest in the Fairmont Scottsdale Princess hotel decreased from 100% to 50%. We account for these investments using the equity method of accounting. |
Three Months Ended September 30, 2012 |
Three Months Ended September 30, 2011 |
|||||||||||||||||||||||
Hotel del Coronado |
Fairmont Scottsdale Princess |
Total |
Hotel del Coronado |
Fairmont Scottsdale Princess |
Total |
|||||||||||||||||||
Total revenues (100%) |
$ |
44,978 |
$ |
10,607 |
$ |
55,585 |
$ |
43,417 |
$ |
10,280 |
$ |
53,697 |
||||||||||||
Property EBITDA (100%) |
$ |
14,560 |
$ |
(2,163) |
$ |
12,397 |
$ |
16,995 |
$ |
(2,452) |
$ |
14,543 |
||||||||||||
Equity in earnings (losses) of unconsolidated affiliates (SHR ownership) |
||||||||||||||||||||||||
Property EBITDA |
$ |
4,994 |
$ |
(1,082) |
$ |
3,912 |
$ |
5,830 |
$ |
(1,226) |
$ |
4,604 |
||||||||||||
Depreciation and amortization |
(1,711) |
(1,774) |
(3,485) |
(1,665) |
(1,806) |
(3,471) |
||||||||||||||||||
Interest expense |
(2,522) |
(191) |
(2,713) |
(2,648) |
(198) |
(2,846) |
||||||||||||||||||
Other expenses, net |
(19) |
(5) |
(24) |
(83) |
(96) |
(179) |
||||||||||||||||||
Income taxes |
(74) |
— |
(74) |
(125) |
— |
(125) |
||||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates |
$ |
668 |
$ |
(3,052) |
$ |
(2,384) |
$ |
1,309 |
$ |
(3,326) |
$ |
(2,017) |
||||||||||||
EBITDA Contribution: |
||||||||||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates |
$ |
668 |
$ |
(3,052) |
$ |
(2,384) |
$ |
1,309 |
$ |
(3,326) |
$ |
(2,017) |
||||||||||||
Depreciation and amortization |
1,711 |
1,774 |
3,485 |
1,665 |
1,806 |
3,471 |
||||||||||||||||||
Interest expense |
2,522 |
191 |
2,713 |
2,648 |
198 |
2,846 |
||||||||||||||||||
Income taxes |
74 |
— |
74 |
125 |
— |
125 |
||||||||||||||||||
EBITDA Contribution |
$ |
4,975 |
$ |
(1,087) |
$ |
3,888 |
$ |
5,747 |
$ |
(1,322) |
$ |
4,425 |
||||||||||||
FFO Contribution: |
||||||||||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates |
$ |
668 |
$ |
(3,052) |
$ |
(2,384) |
$ |
1,309 |
$ |
(3,326) |
$ |
(2,017) |
||||||||||||
Depreciation and amortization |
1,711 |
1,774 |
3,485 |
1,665 |
1,806 |
3,471 |
||||||||||||||||||
FFO Contribution |
$ |
2,379 |
$ |
(1,278) |
$ |
1,101 |
$ |
2,974 |
$ |
(1,520) |
$ |
1,454 |
Nine Months Ended September 30, 2012 |
Nine Months Ended September 30, 2011 |
|||||||||||||||||||||||
Hotel del Coronado |
Fairmont Scottsdale Princess |
Total |
Hotel del Coronado |
Fairmont Scottsdale Princess |
Total |
|||||||||||||||||||
Total revenues (100%) |
$ |
110,332 |
$ |
56,735 |
$ |
167,067 |
$ |
106,404 |
$ |
12,389 |
$ |
118,793 |
||||||||||||
Property EBITDA (100%) |
$ |
33,522 |
$ |
9,743 |
$ |
43,265 |
$ |
34,748 |
$ |
(3,196) |
$ |
31,552 |
||||||||||||
Equity in losses of unconsolidated affiliates (SHR ownership) |
||||||||||||||||||||||||
Property EBITDA |
$ |
11,498 |
$ |
4,871 |
$ |
16,369 |
$ |
12,022 |
$ |
(1,598) |
$ |
10,424 |
||||||||||||
Depreciation and amortization |
(5,098) |
(5,321) |
(10,419) |
(4,963) |
(2,257) |
(7,220) |
||||||||||||||||||
Interest expense |
(7,544) |
(589) |
(8,133) |
(7,382) |
(248) |
(7,630) |
||||||||||||||||||
Other expenses, net |
(62) |
(44) |
(106) |
(1,547) |
(640) |
(2,187) |
||||||||||||||||||
Income taxes |
293 |
— |
293 |
554 |
— |
554 |
||||||||||||||||||
Equity in losses of unconsolidated affiliates |
$ |
(913) |
$ |
(1,083) |
$ |
(1,996) |
$ |
(1,316) |
$ |
(4,743) |
$ |
(6,059) |
||||||||||||
EBITDA Contribution |
||||||||||||||||||||||||
Equity in losses of unconsolidated affiliates |
$ |
(913) |
$ |
(1,083 |
$ |
(1,996) |
$ |
(1,316) |
$ |
(4,743) |
$ |
(6,059) |
||||||||||||
Depreciation and amortization |
5,098 |
5,321 |
10,419 |
4,963 |
2,257 |
7,220 |
||||||||||||||||||
Interest expense |
7,544 |
589 |
8,133 |
7,382 |
248 |
7,630 |
||||||||||||||||||
Income taxes |
(293) |
— |
(293) |
(554) |
— |
(554) |
||||||||||||||||||
EBITDA Contribution |
$ |
11,436 |
$ |
4,827 |
$ |
16,263 |
$ |
10,475 |
$ |
(2,238) |
$ |
8,237 |
||||||||||||
FFO Contribution |
||||||||||||||||||||||||
Equity in losses of unconsolidated affiliates |
$ |
(913) |
$ |
(1,083) |
$ |
(1,996) |
$ |
(1,316) |
$ |
(4,743) |
$ |
(6,059) |
||||||||||||
Depreciation and amortization |
5,098 |
5,321 |
10,419 |
4,963 |
2,257 |
7,220 |
||||||||||||||||||
FFO Contribution |
$ |
4,185 |
$ |
4,238 |
$ |
8,423 |
$ |
3,647 |
$ |
(2,486) |
$ |
1,161 |
Investments in Unconsolidated Affiliates (Continued) (in thousands)
|
|||||||||||||||
Debt |
Interest Rate |
Spread over LIBOR |
Loan Amount |
Maturity (a) |
|||||||||||
Hotel del Coronado |
|||||||||||||||
CMBS Mortgage and Mezzanine |
5.80 |
% |
(b) |
480 bp |
(b) |
$ |
425,000 |
March 2016 |
|||||||
Cash and cash equivalents |
(16,219) |
||||||||||||||
Net Debt |
$ |
408,781 |
|||||||||||||
Fairmont Scottsdale Princess |
|||||||||||||||
CMBS Mortgage |
0.57 |
% |
36 bp |
$ |
133,000 |
April 2015 |
|||||||||
Cash and cash equivalents |
(4,290) |
||||||||||||||
Net Debt |
$ |
128,710 |
(a) Includes extension options. |
(b) Subject to a 1% LIBOR floor. |
Caps |
Effective Date |
LIBOR Cap Rate |
Notional Amount |
Maturity |
|||||||
Hotel del Coronado |
|||||||||||
CMBS Mortgage and Mezzanine Loan Caps |
February 2011 |
2.00 |
% |
$ |
425,000 |
February 2013 |
|||||
CMBS Mortgage and Mezzanine Loan Caps |
February 2013 |
2.50 |
% |
$ |
425,000 |
March 2013 |
|||||
Fairmont Scottsdale Princess |
|||||||||||
CMBS Mortgage Loan Cap |
June 2011 |
4.00 |
% |
$ |
133,000 |
December 2013 |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Leasehold Information (in thousands)
|
||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2012 |
2011 |
2012 |
2011 |
|||||||||||||
Paris Marriott (a): |
||||||||||||||||
Property EBITDA |
$ |
— |
$ |
— |
$ |
— |
$ |
3,455 |
||||||||
Revenue (b) |
$ |
— |
$ |
— |
$ |
— |
$ |
3,455 |
||||||||
Lease expense |
— |
— |
— |
(3,274) |
||||||||||||
Less: Deferred gain on sale-leaseback |
— |
— |
— |
(1,214) |
||||||||||||
Adjusted lease expense |
— |
— |
— |
(4,488) |
||||||||||||
EBITDA contribution from leasehold |
$ |
— |
$ |
— |
$ |
— |
$ |
(1,033) |
||||||||
Marriott Hamburg: |
||||||||||||||||
Property EBITDA |
$ |
1,508 |
$ |
1,734 |
$ |
4,404 |
$ |
5,034 |
||||||||
Revenue (b) |
$ |
1,175 |
$ |
1,255 |
$ |
3,505 |
$ |
3,747 |
||||||||
Lease expense |
(1,114) |
(1,249) |
(3,425) |
(3,702) |
||||||||||||
Less: Deferred gain on sale-leaseback |
(49) |
(42) |
(150) |
(151) |
||||||||||||
Adjusted lease expense |
(1,163) |
(1,291) |
(3,575) |
(3,853) |
||||||||||||
EBITDA contribution from leasehold |
$ |
12 |
$ |
(36) |
$ |
(70) |
$ |
(106) |
||||||||
Total Leaseholds: |
||||||||||||||||
Property EBITDA |
$ |
1,508 |
$ |
1,734 |
$ |
4,404 |
$ |
8,489 |
||||||||
Revenue (b) |
$ |
1,175 |
$ |
1,255 |
$ |
3,505 |
$ |
7,202 |
||||||||
Lease expense |
(1,114) |
(1,249) |
(3,425) |
(6,976) |
||||||||||||
Less: Deferred gain on sale-leasebacks |
(49) |
(42) |
(150) |
(1,365) |
||||||||||||
Adjusted lease expense |
(1,163) |
(1,291) |
(3,575) |
(8,341) |
||||||||||||
EBITDA contribution from leaseholds |
$ |
12 |
$ |
(36) |
$ |
(70) |
$ |
(1,139) |
Security Deposit (c): |
September 30, 2012 |
December 31, 2011 |
||||||
Marriott Hamburg |
$ |
2,443 |
$ |
2,462 |
||||
(a) On April 6, 2011, we sold our leasehold interest in the Paris Marriott hotel. The results of operations for the Paris Marriott hotel have been classified as discontinued operations for all periods presented. |
(b) For the nine months ended September 30, 2011, Revenue for the Paris Marriott hotel represents Property EBITDA. For the three and nine months ended September 30, 2012 and 2011, Revenue for the Marriott Hamburg hotel represents lease revenue. |
(c) The security deposit is recorded in prepaid expenses and other assets on the consolidated balance sheets. |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) |
Non-GAAP Financial Measures
|
We present five non-GAAP financial measures that we believe are useful to management and investors as key measures of our operating performance: Funds from Operations (FFO); FFO—Fully Diluted; Comparable FFO; Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA); and Comparable EBITDA. |
|
We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, with the exception of impairment of depreciable real estate. NAREIT adopted a definition of FFO in order to promote an industry-wide standard measure of REIT operating performance. NAREIT defines FFO as net income (or loss) (computed in accordance with GAAP) excluding losses or gains from sales of depreciable property, impairment of depreciable real estate, real estate-related depreciation and amortization, and our portion of these items related to unconsolidated affiliates. We also present FFO—Fully Diluted, which is FFO plus income or loss on income attributable to redeemable noncontrolling interests in our operating partnership. We also present Comparable FFO, which is FFO—Fully Diluted excluding the impact of any gains or losses on early extinguishment of debt, impairment losses, foreign currency exchange gains or losses and the Value Creation Plan expense. We believe that the presentation of FFO, FFO—Fully Diluted and Comparable FFO provides useful information to management and investors regarding our results of operations because they are measures of our ability to fund capital expenditures and expand our business. In addition, FFO is widely used in the real estate industry to measure operating performance without regard to items such as depreciation and amortization. We also present Comparable FFO per diluted share as a non-GAAP measure of our performance. We calculate Comparable FFO per diluted share for a given operating period as our Comparable FFO (as defined above) divided by the weighted average of fully diluted shares outstanding, excluding shares related to the JW Marriott Essex House Hotel put option. Dilutive securities may include shares granted under share-based compensation plans and operating partnership units. No effect is shown for securities that are anti-dilutive. |
We caution investors that amounts presented in accordance with our definitions of FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP measures in the same manner. FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA should not be considered as an alternative measure of our net income (or loss) or operating performance. FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA can enhance your understanding of our financial condition and results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily a better indicator of any trend as compared to comparable GAAP measures such as net income (or loss) attributable to SHR common shareholders. In addition, you should be aware that adverse economic and market conditions might negatively impact our cash flow. We have provided a quantitative reconciliation of FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA to the most directly comparable GAAP financial performance measure, which is net income (or loss) attributable to SHR common shareholders. |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Reconciliation of Net Loss Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA (in thousands)
|
||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2012 |
2011 |
2012 |
2011 |
|||||||||||||
Net loss attributable to SHR common shareholders |
$ |
(8,557) |
$ |
(11,902) |
$ |
(43,071) |
$ |
(7,771) |
||||||||
Depreciation and amortization |
25,649 |
25,526 |
76,416 |
86,222 |
||||||||||||
Interest expense |
19,942 |
21,838 |
58,627 |
67,148 |
||||||||||||
Income taxes—continuing operations |
(600) |
867 |
215 |
279 |
||||||||||||
Income taxes—discontinued operations |
— |
— |
— |
379 |
||||||||||||
Noncontrolling interests |
(17) |
(16) |
(126) |
70 |
||||||||||||
Adjustments from consolidated affiliates |
(1,879) |
(1,248) |
(4,382) |
(5,431) |
||||||||||||
Adjustments from unconsolidated affiliates |
7,036 |
7,162 |
20,606 |
16,293 |
||||||||||||
Preferred shareholder dividends |
6,042 |
7,721 |
18,125 |
23,164 |
||||||||||||
EBITDA |
47,616 |
49,948 |
126,410 |
180,353 |
||||||||||||
Realized portion of deferred gain on sale-leaseback—continuing operations |
(49) |
(42) |
(150) |
(151) |
||||||||||||
Realized portion of deferred gain on sale-leaseback—discontinued operations |
— |
— |
— |
(1,214) |
||||||||||||
Gain on sale of assets—continuing operations |
— |
— |
— |
(2,640) |
||||||||||||
Loss (gain) on sale of assets— discontinued operations |
— |
35 |
— |
(100,930) |
||||||||||||
Loss on early extinguishment of debt |
— |
399 |
— |
1,237 |
||||||||||||
Loss on early termination of derivative financial instruments |
— |
— |
— |
29,242 |
||||||||||||
Foreign currency exchange loss (gain)—continuing operations (a) |
996 |
209 |
1,169 |
(77) |
||||||||||||
Foreign currency exchange loss (gain)—discontinued operations (a) |
— |
— |
535 |
(51) |
||||||||||||
Adjustment for Value Creation Plan |
(2,013) |
(6,921) |
2,759 |
9,078 |
||||||||||||
Comparable EBITDA |
$ |
46,550 |
$ |
43,628 |
$ |
130,723 |
$ |
114,847 |
(a) Foreign currency exchange gains or losses applicable to third-party and inter-company debt and certain balance sheet items held by foreign subsidiaries. |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Reconciliation of Net Loss Attributable to SHR Common Shareholders to Funds From Operations (FFO), FFO—Fully Diluted and Comparable FFO (in thousands, except per share data)
|
||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2012 |
2011 |
2012 |
2011 |
|||||||||||||
Net loss attributable to SHR common shareholders |
$ |
(8,557) |
$ |
(11,902) |
$ |
(43,071) |
$ |
(7,771) |
||||||||
Depreciation and amortization |
25,649 |
25,526 |
76,416 |
86,222 |
||||||||||||
Corporate depreciation |
(260) |
(279) |
(789) |
(868) |
||||||||||||
Gain on sale of assets—continuing operations |
— |
— |
— |
(2,640) |
||||||||||||
Loss (gain) on sale of assets—discontinued operations |
— |
35 |
— |
(100,930) |
||||||||||||
Realized portion of deferred gain on sale-leaseback—continuing operations |
(49) |
(42) |
(150) |
(151) |
||||||||||||
Realized portion of deferred gain on sale-leaseback—discontinued operations |
— |
— |
— |
(1,214) |
||||||||||||
Deferred tax expense on realized portion of deferred gain on sale-leasebacks |
— |
— |
— |
379 |
||||||||||||
Noncontrolling interests adjustments |
(121) |
(134) |
(374) |
(440) |
||||||||||||
Adjustments from consolidated affiliates |
(859) |
(663) |
(2,185) |
(3,822) |
||||||||||||
Adjustments from unconsolidated affiliates |
3,792 |
3,770 |
11,335 |
8,023 |
||||||||||||
FFO |
19,595 |
16,311 |
41,182 |
(23,212) |
||||||||||||
Redeemable noncontrolling interests |
104 |
118 |
248 |
510 |
||||||||||||
FFO—Fully Diluted |
19,699 |
16,429 |
41,430 |
(22,702) |
||||||||||||
Non-cash mark to market of interest rate swaps |
(1,688) |
1,146 |
(4,405) |
(487) |
||||||||||||
Loss on early extinguishment of debt |
— |
399 |
— |
1,237 |
||||||||||||
Loss on early termination of derivative financial instruments |
— |
— |
— |
29,242 |
||||||||||||
Foreign currency exchange loss (gain)—continuing operations (a) |
996 |
209 |
1,169 |
(77) |
||||||||||||
Foreign currency exchange loss (gain)—discontinued operations (a) |
— |
— |
535 |
(51) |
||||||||||||
Adjustment for Value Creation Plan |
(2,013) |
(6,921) |
2,759 |
9,078 |
||||||||||||
Comparable FFO |
$ |
16,994 |
$ |
11,262 |
$ |
41,488 |
$ |
16,240 |
||||||||
Comparable FFO per diluted share |
$ |
0.08 |
$ |
0.06 |
$ |
0.21 |
$ |
0.09 |
||||||||
Weighted average diluted shares (b) |
208,696 |
188,097 |
201,050 |
175,974 |
(a) Foreign currency exchange gains or losses applicable to third-party and inter-company debt and certain balance sheet items held by foreign subsidiaries. |
(b) Excludes shares related to the JW Marriott Essex House Hotel put option. |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Debt Summary (dollars in thousands)
|
|||||||||||
Debt |
Interest Rate |
Spread (a) |
Loan Amount |
Maturity (b) |
|||||||
North Beach Venture |
5.00 |
% |
Fixed |
$ |
1,476 |
January 2013 |
|||||
Marriott London Grosvenor Square (c) |
1.70 |
% |
110 bp (c) |
114,870 |
October 2013 |
||||||
Bank credit facility |
3.21 |
% |
300 bp |
124,000 |
June 2015 |
||||||
Four Seasons Washington, D.C. |
3.36 |
% |
315 bp |
130,000 |
July 2016 |
||||||
Westin St. Francis |
6.09 |
% |
Fixed |
215,673 |
June 2017 |
||||||
Fairmont Chicago |
6.09 |
% |
Fixed |
95,828 |
June 2017 |
||||||
JW Marriott Essex House Hotel |
4.75 |
% |
400 bp |
190,000 |
September 2017 |
||||||
Hyatt Regency La Jolla (d) |
4.50% / 10.00% |
400 bp / Fixed |
90,000 |
December 2017 |
|||||||
InterContinental Miami |
3.71 |
% |
350 bp |
85,000 |
July 2018 |
||||||
Loews Santa Monica Beach Hotel |
4.06 |
% |
385 bp |
110,000 |
July 2018 |
||||||
InterContinental Chicago |
5.61 |
% |
Fixed |
145,000 |
August 2021 |
||||||
$ |
1,301,847 |
(a) Spread over LIBOR (0.21% at September 30, 2012). Interest on the JW Marriott Essex House Hotel loan is subject to a 0.75% LIBOR floor. Interest on the Hyatt Regency La Jolla loan is subject to a 0.50% LIBOR floor. |
(b) Includes extension options. |
(c) Principal balance of £71,070,000 at September 30, 2012. Spread over three-month GBP LIBOR (0.60% at September 30, 2012). |
(d) This loan was refinanced on November 1, 2012. The new principal and interest are reflected in the table. Interest on $72,000,000 is payable at LIBOR plus 4.00%, subject to a 0.50% LIBOR floor, and interest on $18,000,000 is payable at a fixed rate of 10.00%. |
Domestic and European Interest Rate Swaps
Swap Effective Date |
Fixed Pay Rate Against LIBOR |
Notional Amount |
Maturity |
||||||
February 2010 |
4.90 |
% |
$ |
100,000 |
September 2014 |
||||
February 2010 |
4.96 |
% |
100,000 |
December 2014 |
|||||
December 2010 |
5.23 |
% |
100,000 |
December 2015 |
|||||
February 2011 |
5.27 |
% |
100,000 |
February 2016 |
|||||
5.09 |
% |
$ |
400,000 |
Swap Effective Date |
Fixed Pay Rate Against GBP LIBOR |
Notional Amount |
Maturity |
||||||||
October 2007 |
5.72 |
% |
£ |
71,070 |
October 2013 |
||||||
Future scheduled debt principal payments (including extension options and the refinanced loan at the Hyatt Regency La Jolla) are as follows: |
Years ending December 31, |
Amount |
|||
2012 (remainder) |
$ |
2,148 |
||
2013 |
127,212 |
|||
2014 |
13,872 |
|||
2015 |
140,246 |
|||
2016 |
150,661 |
|||
Thereafter |
867,708 |
|||
$ |
1,301,847 |
|||
Percent of fixed rate debt including U.S. and European swaps |
76.1 |
% |
||
Weighted average interest rate including U.S. and European swaps (e) |
6.50 |
% |
||
Weighted average maturity of fixed rate debt (debt with maturity of greater than one year) |
4.07 |
(e) Excludes the amortization of deferred financing costs and the amortization of the interest rate swap costs. |
SOURCE Strategic Hotels & Resorts, Inc.
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