8-K
DiamondRock Hospitality Co (DRH)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
May 3, 2022
DiamondRock Hospitality Company
(Exact name of registrant as specified in charter)
| Maryland | 001-32514 | 20-1180098 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |
2 Bethesda Metro Center, Suite 1400
Bethesda, MD 20814
(Address of Principal Executive Offices) (Zip Code)
(Registrant’s telephone number, including area code): (240) 744-1150
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | | --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.01 par value per share | DRH | New York Stock Exchange |
| 8.250% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share | DRH Pr A | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
This Current Report on Form 8-K (“Current Report”) contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to national and local economic and business conditions, including the impact of COVID-19 on occupancy rates at our hotels and the demand for hotel products and services, and those risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 22, 2022. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this Current Report is as of the date of this Current Report, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.
ITEM 2.02. Results of Operations and Financial Condition.
On May 5, 2022, DiamondRock Hospitality Company issued a press release announcing its financial results for the quarter ended March 31, 2022. A copy of that press release is furnished as Exhibit 99.1 and is incorporated by reference herein.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, regardless of any general incorporation language in such filing.
ITEM 5.07. Submission of Matters to a Vote of Security Holders.
On May 3, 2022, the Company held its annual meeting of stockholders (the “Annual Meeting”). The results of the voting at the Annual Meeting were as follows:
1.The following directors were elected to the Company’s Board of Directors (constituting the entire Board of Directors) to serve until the 2023 annual meeting of stockholders and until their respective successors are duly elected and qualified:
| Name | For | Against | Abstain | Broker Non-Votes |
|---|---|---|---|---|
| William W. McCarten | 195,023,636 | 4,538,749 | 49,249 | 3,256,949 |
| Mark W. Brugger | 198,249,773 | 1,337,753 | 24,108 | 3,256,949 |
| Timothy R. Chi | 193,989,555 | 5,598,400 | 23,679 | 3,256,949 |
| Michael A. Hartmeier | 194,154,994 | 5,432,532 | 24,108 | 3,256,949 |
| Kathleen A. Merrill | 194,480,122 | 5,108,751 | 22,761 | 3,256,949 |
| William J. Shaw | 191,079,160 | 8,483,245 | 49,229 | 3,256,949 |
| Bruce D. Wardinski | 192,561,467 | 7,026,049 | 24,118 | 3,256,949 |
| Tabassum S. Zalotrawala | 194,838,358 | 4,750,505 | 22,771 | 3,256,949 |
2.The Company’s stockholders approved, on a non-binding, advisory basis, the compensation of the Company’s named executive officers.
| For | Against | Abstain | Broker Non-Votes |
|---|---|---|---|
| 104,945,472 | 94,641,086 | 25,076 | 3,256,949 |
3.The Company’s stockholders ratified the appointment of KPMG LLP as the Company’s independent auditor for the fiscal year ending December 31, 2022.
| For | Against | Abstain |
|---|---|---|
| 198,569,412 | 4,277,312 | 21,859 |
ITEM 7.01. Regulation FD Disclosure.
On May 5, 2022, DiamondRock Hospitality Company (the “Company”) issued a press release announcing the acquisition of The Kimpton Fort Lauderdale Beach Resort. A copy of the press release is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is hereby incorporated by reference herein.
The information furnished pursuant to this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, regardless of any general incorporation language in such filing.
ITEM 8.01. Other Events.
On April 1, 2022, the Company completed the acquisition of the 96-room Kimpton Fort Lauderdale Beach Resort, located in Fort Lauderdale, Florida, for $35.3 million.
ITEM 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are included with this report:
Exhibit No. Description
99.1 Press Release, datedMay 5, 2022
99.2 Press Release, dated May 5, 2022
101.SCH Inline XBRL Taxonomy Extension Schema Document
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
104 Cover Page Interactive Data File
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DIAMONDROCK HOSPITALITY COMPANY | ||
|---|---|---|
| Dated: May 5, 2022 | By: | /s/ Briony R. Quinn |
| Briony R. Quinn | ||
| Senior Vice President and Treasurer |
Document
COMPANY CONTACTS
Jeff Donnelly
Chief Financial Officer
(240) 744-1190
Briony Quinn
Senior Vice President
(240) 744-1196
FOR IMMEDIATE RELEASE
DIAMONDROCK HOSPITALITY COMPANY REPORTS FIRST QUARTER RESULTS
Hotel Adjusted EBITDA Exceeds 2019
Acquires Kimpton Fort Lauderdale Beach Resort
Expects Full Year 2022 Hotel Revenues to Meet or Exceed 2019
Common Dividend Expected to Resume in 2022
BETHESDA, Maryland, Thursday, May 5, 2022 – DiamondRock Hospitality Company (the “Company”) (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 34 premium hotels in the United States, today announced results of operations for the quarter ended March 31, 2022.
First Quarter 2022 Highlights
•Net Income: Net income was $10.1 million and earnings per diluted share was $0.04.
•Comparable Revenues: Comparable total revenues were $197.3 million, a 128.1% increase over 2021 and a 4.4% decline from 2019.
•Comparable RevPAR: Comparable RevPAR was $155.76, a 122.3% increase over 2021 and a 3.5% decline from 2019.
•Comparable Hotel Adjusted EBITDA: Comparable Hotel Adjusted EBITDA was $51.1 million, which exceeded the comparable period of 2019 by 0.2%.
•Adjusted EBITDA: Adjusted EBITDA was $44.9 million.
•Adjusted FFO: Adjusted FFO was $30.9 million and Adjusted FFO per diluted share was $0.14.
•Hotel Acquisition: The Company acquired the Tranquility Bay Beachfront Resort in Marathon, Florida for $63.0 million on January 6, 2022.
•Hotel Brand Conversions: The Company completed the rebrandings of the JW Marriott Denver Cherry Creek as Hotel Clio, a Luxury Collection Hotel and the Bethesda Marriott Suites as the Embassy Suites by Hilton Bethesda during the first quarter of 2022.
•Corporate Debt Covenant Compliance: The Company is in compliance with all of the original financial covenants under its credit agreements as of March 31, 2022, and expects to exit the covenant waiver restrictions as of the second quarter of 2022.
Recent Developments
•Hotel Acquisition: The Company acquired the Kimpton Fort Lauderdale Beach Resort for $35.3 million on April 1, 2022.
•Common Dividend: The Company expects to recommence the quarterly dividend on its common shares beginning in the third quarter of 2022.
•April Comparable RevPAR: April Comparable RevPAR was $211.48, a 4.8% increase over 2019.
“Demand at our hotels is rapidly accelerating and powered our first quarter Comparable Hotel Adjusted EBITDA to exceed 2019. Impressively, we now expect our full year 2022 Comparable Revenues to meet or exceed 2019,” said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. “We are benefiting from a one-two punch in portfolio composition with the resort portfolio achieving new highs from strong leisure demand and the urban portfolio benefiting from the more recent recovery in group and business travel demand. Our carefully crafted portfolio composition, market share gains and numerous repositionings are expected to power DiamondRock to achieve new levels of profitability in 2023 and 2024.”
Operating Results
Please see “Non-GAAP Financial Measures” attached to this press release for an explanation of the terms “EBITDAre,” “Adjusted EBITDA,” “Hotel Adjusted EBITDA,” “Hotel Adjusted EBITDA Margin,” “FFO” and “Adjusted FFO” and a reconciliation of these measures to net income. Comparable operating results include our 2021 and 2022 acquisitions and exclude our 2021 dispositions for all periods presented. See “Reconciliation of Comparable Operating Results” attached to this press release for a reconciliation to historical amounts.
| Quarter Ended March 31, | Change From | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2019 | 2021 | 2019 | ||||||||
| ( amounts in millions, except hotel statistics and per share amounts) | ||||||||||||
| Comparable Operating Results (1) | ||||||||||||
| ADR | $ | 236.48 | $ | 223.66 | 18.0 | % | 24.8 | % | ||||
| Occupancy | 55.8 | % | 29.6 | % | 72.2 | % | 26.2 | % | (16.4) | % | ||
| RevPAR | $ | 70.08 | $ | 161.44 | 122.3 | % | (3.5) | % | ||||
| Total RevPAR | $ | 101.74 | $ | 242.88 | 127.9 | % | (4.5) | % | ||||
| Revenues | $ | 86.5 | $ | 206.4 | 128.1 | % | (4.4) | % | ||||
| Hotel Adjusted EBITDA | $ | 2.2 | $ | 51.0 | 2222.7 | % | 0.2 | % | ||||
| Hotel Adjusted EBITDA Margin | 25.92 | % | 2.49 | % | 24.70 | % | 2,343 bps | 122 bps | ||||
| Available Rooms | 850,842 | 850,500 | 849,674 | 342 | 1,168 | |||||||
| Actual Operating Results (2) | ||||||||||||
| Revenues | $ | 72.9 | $ | 202.4 | 170.0 | % | (2.8) | % | ||||
| Net income (loss) | $ | (171.6) | $ | 9.0 | 105.9 | % | 12.2 | % | ||||
| Income (loss) per diluted share | $ | (0.82) | $ | 0.04 | 104.9 | % | — | % | ||||
| Adjusted EBITDA | $ | (9.6) | $ | 49.2 | 567.7 | % | (8.7) | % | ||||
| Adjusted FFO | $ | (24.9) | $ | 41.9 | 224.1 | % | (26.3) | % | ||||
| Adjusted FFO per diluted share | $ | (0.12) | $ | 0.21 | 216.7 | % | (33.3) | % |
All values are in US Dollars.
(1) The amounts for all periods presented include pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021, Henderson Park Inn from January 1, 2019 to July 29, 2021, Henderson Beach Resort from January 1, 2019 to December 22, 2021 and Tranquility Bay Beachfront Resort from January 1, 2019 to January 5, 2022. The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.
(2) Actual operating results include the operating results of hotels acquired and disposed of for the Company's respective ownership periods.
The following tables provide comparable monthly operating information for the Company's portfolio owned as of March 31, 2022:
| January 2022 | February 2022 | March 2022 | Preliminary April 2022 (1) | |
|---|---|---|---|---|
| Number of Hotels | 33 | 33 | 33 | 33 |
| Number of Rooms | 9,454 | 9,454 | 9,454 | 9,454 |
| Occupancy | 41.3 | 57.9 | 68.4 | 72.3 |
| ADR | 245.13 | 283.49 | 296.22 | 292.68 |
| RevPAR | 101.19 | 164.25 | 202.67 | 211.48 |
| Total RevPAR | 154.77 | 242.91 | 298.92 | 303.87 |
| 2022 vs 2019 | ||||
| Occupancy change in bps | (2,216) bps | (1,633) bps | (1,062) bps | (895) bps |
| ADR Rate % change | 20.6 | 29.1 | 21.7 | 17.9 |
| RevPAR % change | (21.5) | 0.7 | 5.3 | 4.8 |
| Total RevPAR % change | (22.2) | (2.3) | 6.1 | 4.2 |
All values are in US Dollars.
(1) April 2022 preliminary results do not include the Kimpton Fort Lauderdale Beach Resort that was purchased on April 1, 2022.
Hotel Acquisitions
On January 6, 2022, the Company acquired Tranquility Bay Beachfront Resort in Marathon, Florida for $63.0 million. This 103-unit luxury beachfront resort has a total of 231 bedrooms in 87 two-bedroom and three-bedroom beach houses, as well as 16 tropical garden guest rooms. The purchase price represented an 11.6% yield on 2021 hotel net operating income.
On April 1, 2022, the Company acquired the 96-room Kimpton Fort Lauderdale Beach Resort for $35.3 million ($367,700 per key) in an off-market transaction. Upon acquisition, the Company engaged HEI Hotels & Resorts to operate the lifestyle resort in order to combine operations and realize synergies with its nearby Westin Fort Lauderdale Beach Resort & Spa.
Loan Amendments
On February 4, 2022, the Company further amended the credit agreements for its $400 million revolving credit facility and $400 million in unsecured term loans to extend the waiver period for the testing of financial covenants from December 31, 2021 to March 31, 2022, unless terminated early at the Company’s option. The amendments also extend the modification of certain financial covenants, once quarterly testing resumes, to June 30, 2023. The Company achieved compliance with all of the original financial covenants under its credit agreements as of March 31, 2022 and expects to exit the covenant waiver restrictions as of the second quarter of 2022.
Capital Expenditures
The Company invested approximately $11.6 million in capital improvements at its hotels during the three months ended March 31, 2022. The Company continues to expects to spend approximately $100 million on capital improvements at its hotels in 2022, which includes the completion of certain projects that commenced in 2021. Significant projects in 2022 include the following:
•JW Marriott Denver Cherry Creek: The Company completed renovations in March 2022 and successfully rebranded the hotel as Hotel Clio.
•Kimpton Hotel Palomar Phoenix: The Company plans to complete a comprehensive rebranding and repositioning this year of the rooftop bar and pool at the hotel. The new rooftop will be named The Eden and will offer an extraordinary food and beverage experience.
•Hilton Boston Downtown/Faneuil Hall: The Company expects to commence a comprehensive renovation in the fourth quarter of 2022 to reposition the hotel as an experiential lifestyle property to be completed in mid-2023.
•Orchards Inn Sedona: The Company expects to commence the first phase of an upgrade renovation of the resort in late-2022. The two-phase renovation, which is expected to be completed in 2023, will reposition the resort as The Cliffs at L'Auberge.
•Hilton Burlington Lake Champlain: The Company is working with Hilton Worldwide to potentially rebrand the hotel as a Curio Collection hotel. The repositioning is expected to be completed in early 2023 and include a new restaurant concept by a James Beard nominated local chef.
Balance Sheet and Liquidity
The Company ended the quarter with liquidity of $352.5 million, comprised of $41.6 million of unrestricted corporate cash, $110.9 million of unrestricted cash at its hotels and $200.0 million of capacity on its senior unsecured credit facility. As of March 31, 2022, the Company had $1.2 billion of total debt outstanding, which consisted of $576.6 million of property-specific, non-recourse mortgage debt, $400.0 million of unsecured term loans and $200.0 million of outstanding borrowings on its $400.0 million senior unsecured credit facility.
Dividends
The Company declared a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock to shareholders of record as of March 18, 2022. This dividend was paid on March 31, 2022. The Company expects to recommence the quarterly dividend on its common shares beginning in the third quarter of 2022.
Earnings Call
The Company will host a conference call to discuss its first quarter results on Friday, May 6, 2022, at 8:00 a.m. Eastern Time (ET). To participate in the live call, investors are invited to dial 844-287-6622 (for domestic callers) or 530-379-4559 (for international callers). The participant passcode is 6492039. A live webcast of the call will be available via the investor relations section of DiamondRock Hospitality Company’s website at www.drhc.com or www.earnings.com. For those unable to listen to the call live, a taped rebroadcast will be available two hours after completion of the live call through May 13, 2022. To access the rebroadcast, dial 855-859-2056, or internationally at 404-537-3406, and use conference ID 6492039. A replay of the webcast will also be archived on the website for one week.
About the Company
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 34 premium quality hotels with over 9,500 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families as well as unique boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company’s website at www.drhc.com.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “forecast,” “plan” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ
materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; national and local economic and business conditions, including the potential for additional terrorist attacks, that will affect occupancy rates at the Company’s hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the Company’s indebtedness and its ability to obtain covenant waivers on its credit agreements for its senior unsecured credit facility and unsecured term loans; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
DIAMONDROCK HOSPITALITY COMPANY CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
| December 31, 2021 | |||
|---|---|---|---|
| ASSETS | |||
| Property and equipment, net | 2,659,123 | $ | 2,651,444 |
| Right-of-use assets | 100,212 | ||
| Restricted cash | 36,887 | ||
| Due from hotel managers | 120,671 | ||
| Prepaid and other assets | 17,472 | ||
| Cash and cash equivalents | 38,620 | ||
| Total assets | 3,089,227 | $ | 2,965,306 |
| LIABILITIES AND EQUITY | |||
| Liabilities: | |||
| Mortgage and other debt, net of unamortized debt issuance costs | 574,909 | $ | 578,651 |
| Unsecured term loans, net of unamortized debt issuance costs | 398,572 | ||
| Senior unsecured credit facility | 90,000 | ||
| Total debt | 1,067,223 | ||
| Lease liabilities | 108,605 | ||
| Deferred rent | 60,800 | ||
| Due to hotel managers | 85,493 | ||
| Unfavorable contract liabilities, net | 62,780 | ||
| Accounts payable and accrued expenses | 51,238 | ||
| Deferred income related to key money, net | 8,203 | ||
| Total liabilities | 1,444,342 | ||
| Equity: | |||
| Preferred stock, 0.01 par value; 10,000,000 shares authorized; | |||
| 8.250% Series A Cumulative Redeemable Preferred Stock (liquidation preference 25.00 per share), 4,760,000 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 48 | ||
| Common stock, 0.01 par value; 400,000,000 shares authorized; 210,861,105 and 210,746,895 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 2,107 | ||
| Additional paid-in capital | 2,293,990 | ||
| Deficit | (780,931) | ||
| Total stockholders’ equity | 1,515,214 | ||
| Noncontrolling interests | 5,750 | ||
| Total equity | 1,520,964 | ||
| Total liabilities and equity | 3,089,227 | $ | 2,965,306 |
All values are in US Dollars.
DIAMONDROCK HOSPITALITY COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Revenues: | ||||
| Rooms | $ | 132,170 | $ | 50,412 |
| Food and beverage | 45,748 | 13,925 | ||
| Other | 18,915 | 8,600 | ||
| Total revenues | 196,833 | 72,937 | ||
| Operating Expenses: | ||||
| Rooms | 33,830 | 13,828 | ||
| Food and beverage | 33,221 | 11,561 | ||
| Management fees | 4,020 | 1,119 | ||
| Franchise fees | 5,810 | 2,447 | ||
| Other hotel expenses | 70,509 | 48,935 | ||
| Depreciation and amortization | 26,655 | 26,962 | ||
| Impairment losses | 2,843 | 122,552 | ||
| Corporate expenses | 6,033 | 7,159 | ||
| Business interruption insurance income | (499) | — | ||
| Total operating expenses, net | 182,422 | 234,563 | ||
| Interest and other expense (income), net | 286 | (156) | ||
| Interest expense | 4,119 | 8,484 | ||
| Total other expenses, net | 4,405 | 8,328 | ||
| Income (loss) before income taxes | 10,006 | (169,954) | ||
| Income tax benefit (expense) | 54 | (1,613) | ||
| Net income (loss) | 10,060 | (171,567) | ||
| Less: Net (income) loss attributable to noncontrolling interests | (32) | 720 | ||
| Net income (loss) attributable to the Company | 10,028 | (170,847) | ||
| Distributions to preferred stockholders | (2,454) | (2,454) | ||
| Net income (loss) attributable to common stockholders | $ | 7,574 | $ | (173,301) |
| Earnings (loss) per share: | ||||
| Earnings (loss) per share available to common stockholders - basic | $ | 0.04 | $ | (0.82) |
| Earnings (loss) per share available to common stockholders - diluted | $ | 0.04 | $ | (0.82) |
| Weighted-average number of common shares outstanding: | ||||
| Basic | 212,491,561 | 211,671,581 | ||
| Diluted | 213,150,818 | 211,671,581 |
Non-GAAP Financial Measures
We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP. EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company.
Use and Limitations of Non-GAAP Financial Measures
Our management and Board of Directors use EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. The use of these non-GAAP financial measures has certain limitations. These non-GAAP financial measures as presented by us, may not be comparable to non-GAAP financial measures as calculated by other real estate companies. These measures do not reflect certain expenses or expenditures that we incurred and will incur, such as depreciation, interest and capital expenditures. We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable U.S. GAAP financial measures, and our consolidated statements of operations and cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures.
These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with U.S. GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by U.S. GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our U.S. GAAP results and the reconciliations to the corresponding U.S. GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.
EBITDA, EBITDAre and FFO
EBITDA represents net income (calculated in accordance with U.S. GAAP) excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization. The Company computes EBITDAre in accordance with the National Association of Real Estate Investment Trusts ("Nareit") guidelines, as defined in its September 2017 white paper "Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate." EBITDAre represents net income (calculated in accordance with U.S. GAAP) adjusted for: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; (4) gains or losses on the disposition of depreciated property including gains or losses on change of control; (5) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; and (6) adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates.
We believe EBITDA and EBITDAre are useful to an investor in evaluating our operating performance because they help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization, and in the case of EBITDAre, impairment and gains or losses on dispositions of depreciated property) from our operating results. In addition, covenants included in our debt agreements use EBITDA as a measure of financial compliance. We also use EBITDA and EBITDAre as measures in determining the value of hotel acquisitions and dispositions.
The Company computes FFO in accordance with standards established by the Nareit, which defines FFO as net income determined in accordance with U.S. GAAP, excluding gains or losses from sales of properties and impairment losses, plus real estate related depreciation and amortization. The Company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it is a measure of the Company's operations without regard to specified non-cash items, such as real estate related depreciation and amortization and gains or losses on the sale of assets. The Company also uses FFO as one measure in assessing its operating results.
Hotel EBITDA
Hotel EBITDA represents net income excluding: (1) interest expense, (2) income taxes, (3) depreciation and amortization, (4) corporate general and administrative expenses (shown as corporate expenses on the consolidated statements of operations), and (5) hotel acquisition costs. We believe that Hotel EBITDA provides our investors a useful financial measure to evaluate our hotel operating performance, excluding the impact of our capital structure (primarily interest), our asset base (primarily depreciation and amortization), and our corporate-level expenses (corporate expenses and hotel acquisition costs). With respect to Hotel EBITDA, we believe that excluding the effect of corporate-level expenses provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control. We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis.
Adjustments to EBITDAre, FFO and Hotel EBITDA
We adjust EBITDAre, FFO and Hotel EBITDA when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted EBITDA, Adjusted FFO and Hotel Adjusted EBITDA when combined with U.S. GAAP net income, EBITDAre, FFO and Hotel EBITDA, is beneficial to an investor's complete understanding of our consolidated and property-level operating performance. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues. We adjust EBITDAre, FFO and Hotel EBITDA for the following items:
•Non-Cash Lease Expense and Other Amortization: We exclude the non-cash expense incurred from the straight line recognition of expense from our ground leases and other contractual obligations and the non-cash amortization of our favorable and unfavorable contracts, originally recorded in conjunction with certain hotel acquisitions. We exclude these non-cash items because they do not reflect the actual cash amounts due to the respective lessors and service providers in the current period and they are of lesser significance in evaluating our actual performance for that period.
•Cumulative Effect of a Change in Accounting Principle: The Financial Accounting Standards Board promulgates new accounting standards that require or permit the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude the effect of these adjustments, which include the accounting impact from prior periods, because they do not reflect the Company’s actual underlying performance for the current period.
•Gains or Losses from Early Extinguishment of Debt: We exclude the effect of gains or losses recorded on the early extinguishment of debt because these gains or losses result from transaction activity related to the Company’s capital structure that we believe are not indicative of the ongoing operating performance of the Company or our hotels.
•Hotel Acquisition Costs: We exclude hotel acquisition costs expensed during the period because we believe these transaction costs are not reflective of the ongoing performance of the Company or our hotels.
•Severance Costs: We exclude corporate severance costs, or reversals thereof, incurred with the termination of corporate-level employees and severance costs incurred at our hotels related to lease terminations or structured severance programs because we believe these costs do not reflect the ongoing performance of the Company or our hotels.
•Hotel Manager Transition Items: We exclude the transition items associated with a change in hotel manager because we believe these items do not reflect the ongoing performance of the Company or our hotels.
•Other Items: From time to time we incur costs or realize gains that we consider outside the ordinary course of business and that we do not believe reflect the ongoing performance of the Company or our hotels. Such items may include, but are not limited to, the following: pre-opening costs incurred with newly developed hotels; lease preparation costs incurred to prepare vacant space for marketing; management or franchise contract termination fees; gains or losses from legal settlements; costs incurred related to natural disasters; and gains on property insurance claim settlements, other than income related to business interruption insurance.
In addition, to derive Adjusted FFO we exclude any fair value adjustments to interest rate swaps. We exclude these non-cash amounts because they do not reflect the underlying performance of the Company.
Reconciliations of Non-GAAP Measures
EBITDA, EBITDAre and Adjusted EBITDA
The following tables are reconciliations of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA (in thousands):
| Three Months Ended March 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2019 | ||||||
| Net income (loss) | $ | 10,060 | $ | (171,567) | $ | 8,980 | ||
| Interest expense | 4,119 | 8,484 | 11,662 | |||||
| Income tax (benefit) expense | (54) | 1,613 | (3,849) | |||||
| Real estate related depreciation and amortization | 26,655 | 26,962 | 28,996 | |||||
| EBITDA | 40,780 | (134,508) | 45,789 | |||||
| Impairment losses | 2,843 | 122,552 | — | |||||
| EBITDAre | 43,623 | (11,956) | 45,789 | |||||
| Non-cash lease expense and other amortization | 1,568 | 1,672 | 1,715 | |||||
| Professional fees and pre-opening costs related to Frenchman's Reef (1) | — | 575 | 1,367 | |||||
| Hotel manager transition items | 249 | 128 | 297 | |||||
| Gain on property insurance settlement | — | — | — | |||||
| Severance costs (2) | (532) | 10 | — | |||||
| Adjusted EBITDA | $ | 44,908 | $ | (9,571) | $ | 49,168 | Year Ended December 31, | |
| --- |
(1)Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.
(2)Consists of severance costs incurred with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.
Hotel EBITDA and Hotel Adjusted EBITDA
The following table is a reconciliation of our GAAP net income to Hotel EBITDA and Hotel Adjusted EBITDA (in thousands):
| Three Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2019 | ||||
| Net income (loss) | $ | 10,060 | $ | (171,567) | $ | 8,980 |
| Interest expense | 4,119 | 8,484 | 11,662 | |||
| Income tax (benefit) expense | (54) | 1,613 | (3,849) | |||
| Real estate related depreciation and amortization | 26,655 | 26,962 | 28,996 | |||
| EBITDA | 40,780 | (134,508) | 45,789 | |||
| Corporate expenses | 6,033 | 7,159 | 7,064 | |||
| Interest and other expense (income), net | 286 | (156) | (303) | |||
| Professional fees and pre-opening costs related to Frenchman's Reef (1) | — | 575 | 1,367 | |||
| Impairment losses | 2,843 | 122,552 | — | |||
| Gain on property insurance settlement | — | — | — | |||
| Hotel EBITDA | 49,942 | (4,378) | 53,917 | |||
| Non-cash lease expense and other amortization | 1,568 | 1,672 | 1,715 | |||
| Hotel manager transition items | 249 | 128 | 297 | |||
| Severance costs (2) | (532) | 10 | — | |||
| Hotel Adjusted EBITDA | $ | 51,227 | $ | (2,568) | $ | 55,929 |
| Year Ended December 31, | ||||||
| --- |
(1)Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.
(2)Consists of severance costs incurred with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.
FFO and Adjusted FFO
The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands):
| Three Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2019 | ||||
| Net (loss) income | $ | 10,060 | $ | (171,567) | $ | 8,980 |
| Real estate related depreciation and amortization | 26,655 | 26,962 | 28,996 | |||
| Impairment losses, net of tax | 2,843 | 122,552 | — | |||
| FFO | 39,558 | (22,053) | 37,976 | |||
| Distribution to preferred stockholders | (2,454) | (2,454) | — | |||
| FFO available to common stock and unit holders | 37,104 | (24,507) | 37,976 | |||
| Non-cash lease expense and other amortization | 1,568 | 1,672 | 1,715 | |||
| Professional fees and pre-opening costs related to Frenchman's Reef (1) | — | 575 | 1,367 | |||
| Hotel manager transition items | 249 | 128 | 297 | |||
| Severance costs (2) | (532) | 10 | — | |||
| Fair value adjustments to interest rate swaps | (7,502) | (2,731) | 572 | |||
| Adjusted FFO available to common stock and unit holders | $ | 30,887 | $ | (24,853) | $ | 41,927 |
| Adjusted FFO available to common stock and unit holders, per diluted share | $ | 0.14 | $ | (0.12) | $ | 0.21 |
| Year Ended December 31, | ||||||
| --- |
(1)Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.
(2)Consists of severance costs incurred with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.
Reconciliation of Comparable Operating Results
The following presents the revenues, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin together with comparable prior year results, which excludes the results for our 2021 dispositions (in thousands):
| Three Months Ended March 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2019 | |||||||
| Revenues | $ | 196,833 | $ | 72,937 | $ | 202,375 | |||
| Hotel revenues from prior ownership (1) | 430 | 13,639 | 15,260 | ||||||
| Hotel revenues from sold hotels (2) | — | (42) | (11,265) | ||||||
| Comparable Revenues | $ | 197,263 | $ | 86,534 | $ | 206,370 | |||
| Hotel Adjusted EBITDA | $ | 51,227 | $ | (2,568) | $ | 55,929 | |||
| Hotel Adjusted EBITDA from prior ownership (1) | (106) | 1,501 | 2,966 | ||||||
| Hotel Adjusted EBITDA from sold hotels (2) | — | 3,223 | (7,920) | ||||||
| Comparable Hotel Adjusted EBITDA | $ | 51,121 | $ | 2,156 | $ | 50,975 | |||
| Hotel Adjusted EBITDA Margin | 26.03 | % | (3.52) | % | 27.64 | % | |||
| Comparable Hotel Adjusted EBITDA Margin | 25.92 | % | 2.49 | % | 24.70 | % | |||
| Year Ended December 31, | |||||||||
| --- |
(1) Amounts represent the pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021, Henderson Park Inn from January 1, 2019 to July 29, 2021, Henderson Beach Resort from January 1, 2019 to December 22, 2021 and Tranquility Bay Beachfront Resort from January 1, 2019 to January 5, 2022. The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.
(2) Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.
Selected Quarterly Comparable Operating Information
The following tables are presented to provide investors with selected quarterly comparable operating information. The operating information includes historical quarterly operating results for our portfolio, excluding the Kimpton Fort Lauderdale Beach Resort as the hotel opened in April 2021.
| Quarter 1, 2019 | Quarter 2, 2019 | Quarter 3, 2019 | Quarter 4, 2019 | Full Year 2019 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ADR | $ | 223.66 | $ | 252.68 | $ | 239.39 | $ | 242.68 | $ | 240.10 | |||||
| Occupancy | 72.2 | % | 82.4 | % | 81.2 | % | 75.2 | % | 77.8 | % | |||||
| RevPAR | $ | 161.44 | $ | 208.24 | $ | 194.40 | $ | 182.52 | $ | 186.73 | |||||
| Total RevPAR | $ | 242.88 | $ | 302.81 | $ | 274.93 | $ | 265.26 | $ | 271.55 | |||||
| Revenues (in thousands) | $ | 206,370 | $ | 260,230 | $ | 238,977 | $ | 230,571 | $ | 936,148 | |||||
| Hotel Adjusted EBITDA (in thousands) | $ | 50,975 | $ | 89,310 | $ | 72,411 | $ | 65,196 | $ | 277,892 | |||||
| Hotel Adjusted EBITDA Margin | 24.70 | % | 34.32 | % | 30.30 | % | 28.28 | % | 29.68 | % | |||||
| Available Rooms | 849,674 | 859,374 | 869,216 | 869,216 | 3,447,480 | ||||||||||
| Quarter 1, 2021 | Quarter 2, 2021 | Quarter 3, 2021 | Quarter 4, 2021 | Full Year 2021 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ADR | $ | 236.48 | $ | 241.35 | $ | 249.83 | $ | 265.54 | $ | 250.62 | |||||
| Occupancy | 29.6 | % | 49.3 | % | 65.4 | % | 61.2 | % | 51.5 | % | |||||
| RevPAR | $ | 70.08 | $ | 119.00 | $ | 163.45 | $ | 162.47 | $ | 129.10 | |||||
| Total RevPAR | $ | 101.74 | $ | 171.53 | $ | 228.71 | $ | 233.25 | $ | 184.30 | |||||
| Revenues (in thousands) | $ | 86,534 | $ | 147,537 | $ | 198,885 | $ | 202,826 | $ | 635,782 | |||||
| Hotel Adjusted EBITDA (in thousands) | $ | 2,156 | $ | 35,956 | $ | 53,472 | $ | 45,017 | $ | 136,601 | |||||
| Hotel Adjusted EBITDA Margin | 2.49 | % | 24.37 | % | 26.89 | % | 22.19 | % | 21.49 | % | |||||
| Available Rooms | 850,500 | 860,103 | 869,584 | 869,584 | 3,449,771 | ||||||||||
| Quarter 1, 2022 | |||||||||||||||
| --- | --- | --- | --- | ||||||||||||
| ADR | $ | 279.09 | |||||||||||||
| Occupancy | 55.8 | % | |||||||||||||
| RevPAR | $ | 155.76 | |||||||||||||
| Total RevPAR | $ | 231.84 | |||||||||||||
| Revenues (in thousands) | $ | 197,263 | |||||||||||||
| Hotel Adjusted EBITDA (in thousands) | $ | 51,121 | |||||||||||||
| Hotel Adjusted EBITDA Margin | 25.92 | % | |||||||||||||
| Available Rooms | 850,842 | ||||||||||||||
| Market Capitalization as of March 31, 2022 | |||||||||||||||
| --- | --- | --- | |||||||||||||
| (in thousands) | |||||||||||||||
| Enterprise Value | |||||||||||||||
| Common equity capitalization (at March 31, 2022 closing price of $10.10/share) | $ | 2,171,120 | |||||||||||||
| Preferred equity capitalization (at liquidation value of $25.00/share) | 119,000 | ||||||||||||||
| Consolidated debt (face amount) | 1,176,570 | ||||||||||||||
| Cash and cash equivalents | (41,581) | ||||||||||||||
| Total enterprise value | $ | 3,425,109 | |||||||||||||
| Share Reconciliation | |||||||||||||||
| Common shares outstanding | 210,861 | ||||||||||||||
| Operating partnership units | 775 | ||||||||||||||
| Unvested restricted stock held by management and employees | 1,397 | ||||||||||||||
| Share grants under deferred compensation plan | 1,929 | ||||||||||||||
| Combined shares and units | 214,962 | Debt Summary as of March 31, 2022 | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | |||||||||
| (dollars in thousands) | |||||||||||||||
| Loan | Interest Rate as of March 31, 2022 | Term | Outstanding Principal | Maturity | |||||||||||
| Salt Lake City Marriott Downtown at City Creek | LIBOR + 3.25 (1) | Variable | 43,120 | January 2023 | |||||||||||
| Westin Washington D.C. City Center | 3.99% | Fixed | 55,299 | January 2023 | |||||||||||
| The Lodge at Sonoma Resort | 3.96% | Fixed | 25,413 | April 2023 | |||||||||||
| Westin San Diego Bayview | 3.94% | Fixed | 58,166 | April 2023 | |||||||||||
| Courtyard New York Manhattan / Midtown East | 4.40% | Fixed | 77,445 | August 2024 | |||||||||||
| Worthington Renaissance Fort Worth Hotel | 3.66% | Fixed | 76,992 | May 2025 | |||||||||||
| Hotel Clio | 4.33% | Fixed | 58,456 | July 2025 | |||||||||||
| Westin Boston Seaport District | 4.36% | Fixed | 181,679 | November 2025 | |||||||||||
| Unamortized debt issuance costs | (1,661) | ||||||||||||||
| Total mortgage and other debt, net of unamortized debt issuance costs | 574,909 | ||||||||||||||
| Unsecured term loan | LIBOR + 2.40% (2) | Variable | 350,000 | July 2024 | |||||||||||
| Unsecured term loan | LIBOR + 2.40% (3) | Fixed | 50,000 | October 2023 | |||||||||||
| Unamortized debt issuance costs | (1,332) | ||||||||||||||
| Unsecured term loans, net of unamortized debt issuance costs | 398,668 | ||||||||||||||
| Senior unsecured credit facility | LIBOR + 2.55% (4) | Variable | 200,000 | July 2023 (5) | |||||||||||
| Total debt, net of unamortized debt issuance costs | $ | 1,173,577 | |||||||||||||
| Weighted-average interest rate of fixed rate debt | 4.25 | % | |||||||||||||
| Total weighted-average interest rate | 3.78 | % |
(1)LIBOR is subject to a floor of 1.0%.
(2) The Company entered into an interest rate swap agreement in July 2019 to fix LIBOR at 1.70% for $175 million of the term loan through July 2024. LIBOR is subject to a floor of 0.25%.
(3) The Company entered into an interest rate swap agreement in January 2019 to fix LIBOR at 2.41% through October 2023.
(4) LIBOR is subject to a floor of 0.25%.
(5) May be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.
| Monthly Operating Statistics (1) | ||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Number of Rooms | ADR | Occupancy | RevPAR | |||||||||||||||||||||||
| January 2022 | January 2021 | B/(W) 2021 | January 2022 | January 2021 | B/(W) 2021 | January 2022 | January 2021 | B/(W) 2021 | ||||||||||||||||||
| Total - 33 Hotels | 9,454 | $ | 245.13 | $ | 204.81 | 19.7 | % | 41.3 | % | 22.0 | % | 19.3 | % | $ | 101.19 | $ | 45.07 | 124.5 | % | |||||||
| Resorts - 16 Hotels | 2,791 | $ | 379.78 | $ | 273.90 | 38.7 | % | 54.3 | % | 39.6 | % | 14.7 | % | $ | 206.10 | $ | 108.58 | 89.8 | % | |||||||
| Number of Rooms | January 2022 | January 2019 | B/(W) 2019 | January 2022 | January 2019 | B/(W) 2019 | January 2022 | January 2019 | B/(W) 2019 | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Total - 33 Hotels | 9,454 | $ | 245.13 | $ | 203.19 | 20.6 | % | 41.3 | % | 63.4 | % | (22.1) | % | $ | 101.19 | $ | 128.90 | (21.5) | % | |||||||
| Resorts - 16 Hotels | 2,791 | $ | 379.78 | $ | 263.16 | 44.3 | % | 54.3 | % | 69.3 | % | (15.0) | % | $ | 206.10 | $ | 182.35 | 13.0 | % | |||||||
| Number of Rooms | February 2022 | February 2021 | B/(W) 2021 | February 2022 | February 2021 | B/(W) 2021 | February 2022 | February 2021 | B/(W) 2021 | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Total - 33 Hotels | 9,454 | $ | 283.49 | $ | 230.39 | 23.0 | % | 57.9 | % | 29.8 | % | 28.1 | % | $ | 164.25 | $ | 68.72 | 139.0 | % | |||||||
| Resorts - 16 Hotels | 2,791 | $ | 475.48 | $ | 323.23 | 47.1 | % | 70.9 | % | 52.7 | % | 18.2 | % | $ | 337.13 | $ | 170.46 | 97.8 | % | |||||||
| Number of Rooms | February 2022 | February 2019 | B/(W) 2019 | February 2022 | February 2019 | B/(W) 2019 | February 2022 | February 2019 | B/(W) 2019 | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Total - 33 Hotels | 9,454 | $ | 283.49 | $ | 219.64 | 29.1 | % | 57.9 | % | 74.3 | % | (16.4) | % | $ | 164.25 | $ | 163.12 | 0.7 | % | |||||||
| Resorts - 16 Hotels | 2,791 | $ | 475.48 | $ | 303.51 | 56.7 | % | 70.9 | % | 80.1 | % | (9.2) | % | $ | 337.13 | $ | 243.10 | 38.7 | % | |||||||
| Number of Rooms | March 2022 | March 2021 | B/(W) 2021 | March 2022 | March 2021 | B/(W) 2021 | March 2022 | March 2021 | B/(W) 2021 | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Total - 33 Hotels | 9,454 | $ | 296.22 | $ | 259.69 | 14.1 | % | 68.4 | % | 37.1 | % | 31.3 | % | $ | 202.67 | $ | 96.32 | 110.4 | % | |||||||
| Resorts - 16 Hotels | 2,791 | $ | 475.15 | $ | 383.61 | 23.9 | % | 77.8 | % | 63.0 | % | 14.8 | % | $ | 369.65 | $ | 241.75 | 52.9 | % | |||||||
| Number of Rooms | March 2022 | March 2019 | B/(W) 2019 | March 2022 | March 2019 | B/(W) 2019 | March 2022 | March 2019 | B/(W) 2019 | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Total - 33 Hotels | 9,454 | $ | 296.22 | $ | 243.50 | 21.7 | % | 68.4 | % | 79.0 | % | (10.6) | % | $ | 202.67 | $ | 192.46 | 5.3 | % | |||||||
| Resorts - 16 Hotels | 2,791 | $ | 475.15 | $ | 322.87 | 47.2 | % | 77.8 | % | 83.1 | % | (5.3) | % | $ | 369.65 | $ | 268.31 | 37.8 | % |
(1) All periods presented include the pre-acquisition operating results of the three hotels acquired in 2021, Tranquility Bay acquired in 2022 and exclude the two hotels sold in 2021.
| Operating Statistics – First Quarter | ||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Number of Rooms | ADR | Occupancy | RevPAR | |||||||||||||||||||||||
| 1Q 2022 | 1Q 2021 | B/(W) 2021 | 1Q 2022 | 1Q 2021 | B/(W) 2021 | 1Q 2022 | 1Q 2021 | B/(W) 2021 | ||||||||||||||||||
| Atlanta Marriott Alpharetta | 318 | $ | 141.87 | $ | 94.37 | 50.3 | % | 41.6 | % | 22.9 | % | 18.7 | % | $ | 59.03 | $ | 21.61 | 173.2 | % | |||||||
| Bourbon Orleans Hotel | 220 | $ | 244.94 | $ | — | 100.0 | % | 49.6 | % | — | % | 49.6 | % | $ | 121.61 | $ | — | 100.0 | % | |||||||
| Cavallo Point, The Lodge at the Golden Gate | 142 | $ | 683.10 | $ | 547.30 | 24.8 | % | 44.6 | % | 19.3 | % | 25.3 | % | $ | 304.93 | $ | 105.82 | 188.2 | % | |||||||
| Chicago Marriott Downtown Magnificent Mile | 1,200 | $ | 168.57 | $ | 148.58 | 13.5 | % | 27.4 | % | 0.2 | % | 27.2 | % | $ | 46.13 | $ | 0.35 | 13,080.0 | % | |||||||
| Courtyard Denver Downtown | 177 | $ | 151.12 | $ | 94.11 | 60.6 | % | 60.0 | % | 35.7 | % | 24.3 | % | $ | 90.65 | $ | 33.60 | 169.8 | % | |||||||
| Courtyard New York Manhattan/Fifth Avenue | 189 | $ | 161.28 | $ | — | 100.0 | % | 82.9 | % | — | % | 82.9 | % | $ | 133.69 | $ | — | 100.0 | % | |||||||
| Courtyard New York Manhattan/Midtown East | 321 | $ | 199.77 | $ | 126.21 | 58.3 | % | 63.6 | % | 67.0 | % | (3.4) | % | $ | 127.03 | $ | 84.54 | 50.3 | % | |||||||
| Embassy Suites by Hilton Bethesda | 272 | $ | 113.40 | $ | 105.58 | 7.4 | % | 26.4 | % | 18.5 | % | 7.9 | % | $ | 29.97 | $ | 19.49 | 53.8 | % | |||||||
| Havana Cabana Key West | 106 | $ | 411.65 | $ | 261.53 | 57.4 | % | 93.8 | % | 90.8 | % | 3.0 | % | $ | 386.07 | $ | 237.49 | 62.6 | % | |||||||
| Henderson Beach Resort | 216 | $ | 411.26 | $ | 328.98 | 25.0 | % | 44.3 | % | 45.3 | % | (1.0) | % | $ | 182.13 | $ | 149.14 | 22.1 | % | |||||||
| Henderson Park Inn | 37 | $ | 511.93 | $ | 304.75 | 68.0 | % | 60.6 | % | 73.6 | % | (13.0) | % | $ | 310.39 | $ | 224.22 | 38.4 | % | |||||||
| Hilton Boston Downtown/Faneuil Hall | 403 | $ | 174.41 | $ | 106.46 | 63.8 | % | 63.0 | % | 21.2 | % | 41.8 | % | $ | 109.95 | $ | 22.60 | 386.5 | % | |||||||
| Hilton Burlington Lake Champlain | 258 | $ | 157.63 | $ | 114.95 | 37.1 | % | 58.6 | % | 32.7 | % | 25.9 | % | $ | 92.30 | $ | 37.63 | 145.3 | % | |||||||
| Hilton Garden Inn New York/Times Square Central | 282 | $ | 162.46 | $ | — | 100.0 | % | 77.8 | % | — | % | 77.8 | % | $ | 126.40 | $ | — | 100.0 | % | |||||||
| Hotel Clio | 199 | $ | 258.96 | $ | 200.92 | 28.9 | % | 62.4 | % | 39.4 | % | 23.0 | % | $ | 161.68 | $ | 79.12 | 104.3 | % | |||||||
| Hotel Emblem San Francisco | 96 | $ | 189.44 | $ | 128.42 | 47.5 | % | 53.4 | % | 15.2 | % | 38.2 | % | $ | 101.10 | $ | 19.52 | 417.9 | % | |||||||
| Hotel Palomar Phoenix | 242 | $ | 247.83 | $ | 147.96 | 67.5 | % | 76.8 | % | 49.8 | % | 27.0 | % | $ | 190.39 | $ | 73.63 | 158.6 | % | |||||||
| Kimpton Shorebreak Resort | 157 | $ | 297.03 | $ | 229.94 | 29.2 | % | 71.8 | % | 43.4 | % | 28.4 | % | $ | 213.36 | $ | 99.69 | 114.0 | % | |||||||
| L'Auberge de Sedona | 88 | $ | 1,046.12 | $ | 716.68 | 46.0 | % | 68.5 | % | 80.8 | % | (12.3) | % | $ | 716.30 | $ | 578.77 | 23.8 | % | |||||||
| Margaritaville Beach House Key West | 186 | $ | 579.43 | $ | 347.09 | 66.9 | % | 92.0 | % | 83.2 | % | 8.8 | % | $ | 532.94 | $ | 288.93 | 84.5 | % | |||||||
| Orchards Inn Sedona | 70 | $ | 309.21 | $ | 253.24 | 22.1 | % | 63.7 | % | 62.2 | % | 1.5 | % | $ | 196.91 | $ | 157.61 | 24.9 | % | |||||||
| Renaissance Charleston Historic District Hotel | 167 | $ | 311.69 | $ | 214.87 | 45.1 | % | 80.3 | % | 56.8 | % | 23.5 | % | $ | 250.35 | $ | 122.12 | 105.0 | % | |||||||
| Salt Lake City Marriott Downtown at City Creek | 510 | $ | 176.07 | $ | 108.20 | 62.7 | % | 49.0 | % | 30.5 | % | 18.5 | % | $ | 86.21 | $ | 33.00 | 161.2 | % | |||||||
| The Gwen Hotel | 311 | $ | 213.18 | $ | 191.04 | 11.6 | % | 58.2 | % | 23.5 | % | 34.7 | % | $ | 124.11 | $ | 44.84 | 176.8 | % | |||||||
| The Hythe Vail | 344 | $ | 663.43 | $ | 373.06 | 77.8 | % | 67.0 | % | 73.6 | % | (6.6) | % | $ | 444.73 | $ | 274.74 | 61.9 | % | |||||||
| The Landing Lake Tahoe Resort & Spa | 82 | $ | 408.90 | $ | 338.05 | 21.0 | % | 46.5 | % | 49.5 | % | (3.0) | % | $ | 189.99 | $ | 167.37 | 13.5 | % | |||||||
| The Lodge at Sonoma Resort | 182 | $ | 367.07 | $ | 216.11 | 69.9 | % | 48.0 | % | 27.7 | % | 20.3 | % | $ | 176.30 | $ | 59.82 | 194.7 | % | |||||||
| Tranquility Bay Beachfront Resort (1) | 103 | $ | 947.75 | $ | 681.11 | 39.1 | % | 83.3 | % | 89.6 | % | (6.3) | % | $ | 789.49 | $ | 609.99 | 29.4 | % | |||||||
| Westin Boston Waterfront | 793 | $ | 194.05 | $ | 119.58 | 62.3 | % | 53.7 | % | 15.0 | % | 38.7 | % | $ | 104.27 | $ | 17.91 | 482.2 | % | |||||||
| Westin Fort Lauderdale Beach Resort | 433 | $ | 336.96 | $ | 255.18 | 32.0 | % | 87.7 | % | 55.9 | % | 31.8 | % | $ | 295.38 | $ | 142.74 | 106.9 | % | |||||||
| Westin San Diego Bayview | 436 | $ | 175.00 | $ | 141.50 | 23.7 | % | 53.0 | % | 22.0 | % | 31.0 | % | $ | 92.81 | $ | 31.06 | 198.8 | % | |||||||
| Westin Washington D.C. City Center | 410 | $ | 175.98 | $ | 150.94 | 16.6 | % | 35.2 | % | 8.8 | % | 26.4 | % | $ | 62.02 | $ | 13.23 | 368.8 | % | |||||||
| Worthington Renaissance Fort Worth Hotel | 504 | $ | 194.19 | $ | 136.41 | 42.4 | % | 64.3 | % | 34.9 | % | 29.4 | % | $ | 124.90 | $ | 47.54 | 162.7 | % | |||||||
| Comparable Total (2) | 9,454 | $ | 279.09 | $ | 236.48 | 18.0 | % | 55.8 | % | 29.6 | % | 26.2 | % | $ | 155.76 | $ | 70.08 | 122.3 | % |
(1) Hotel was acquired on January 6, 2022. Amounts reflect the operating results for the period from January 6, 2022 to March 31, 2022 and January 6, 2021 to March 31, 2021.
(2) Amounts include the pre-acquisition operating results of Tranquility Bay, the three hotels acquired in 2021 and exclude the two hotels sold in 2021.
| Operating Statistics – First Quarter | ||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Number of Rooms | ADR | Occupancy | RevPAR | |||||||||||||||||||||||
| 1Q 2022 | 1Q 2019 | B/(W) 2019 | 1Q 2022 | 1Q 2019 | B/(W) 2019 | 1Q 2022 | 1Q 2019 | B/(W) 2019 | ||||||||||||||||||
| Atlanta Marriott Alpharetta | 318 | $ | 141.87 | $ | 177.33 | (20.0) | % | 41.6 | % | 70.5 | % | (28.9) | % | $ | 59.03 | $ | 124.93 | (52.7) | % | |||||||
| Bourbon Orleans Hotel | 220 | $ | 244.94 | $ | 238.23 | 2.8 | % | 49.6 | % | 82.4 | % | (32.8) | % | $ | 121.61 | $ | 196.37 | (38.1) | % | |||||||
| Cavallo Point, The Lodge at the Golden Gate | 142 | $ | 683.10 | $ | 437.76 | 56.0 | % | 44.6 | % | 63.4 | % | (18.8) | % | $ | 304.93 | $ | 277.38 | 9.9 | % | |||||||
| Chicago Marriott Downtown Magnificent Mile | 1,200 | $ | 168.57 | $ | 158.35 | 6.5 | % | 27.4 | % | 51.7 | % | (24.3) | % | $ | 46.13 | $ | 81.79 | (43.6) | % | |||||||
| Courtyard Denver Downtown | 177 | $ | 151.12 | $ | 171.92 | (12.1) | % | 60.0 | % | 73.3 | % | (13.3) | % | $ | 90.65 | $ | 126.00 | (28.1) | % | |||||||
| Courtyard New York Manhattan/Fifth Avenue | 189 | $ | 161.28 | $ | 212.18 | (24.0) | % | 82.9 | % | 77.4 | % | 5.5 | % | $ | 133.69 | $ | 164.30 | (18.6) | % | |||||||
| Courtyard New York Manhattan/Midtown East | 321 | $ | 199.77 | $ | 190.02 | 5.1 | % | 63.6 | % | 92.0 | % | (28.4) | % | $ | 127.03 | $ | 174.85 | (27.3) | % | |||||||
| Embassy Suites by Hilton Bethesda | 272 | $ | 113.40 | $ | 172.21 | (34.2) | % | 26.4 | % | 65.3 | % | (38.9) | % | $ | 29.97 | $ | 112.46 | (73.4) | % | |||||||
| Havana Cabana Key West | 106 | $ | 411.65 | $ | 254.41 | 61.8 | % | 93.8 | % | 94.7 | % | (0.9) | % | $ | 386.07 | $ | 240.94 | 60.2 | % | |||||||
| Henderson Beach Resort | 216 | $ | 411.26 | $ | 253.18 | 62.4 | % | 44.3 | % | 39.0 | % | 5.3 | % | $ | 182.13 | $ | 98.85 | 84.2 | % | |||||||
| Henderson Park Inn | 37 | $ | 511.93 | $ | 350.71 | 46.0 | % | 60.6 | % | 52.3 | % | 8.3 | % | $ | 310.39 | $ | 183.47 | 69.2 | % | |||||||
| Hilton Boston Downtown/Faneuil Hall | 403 | $ | 174.41 | $ | 197.84 | (11.8) | % | 63.0 | % | 83.5 | % | (20.5) | % | $ | 109.95 | $ | 165.25 | (33.5) | % | |||||||
| Hilton Burlington Lake Champlain | 258 | $ | 157.63 | $ | 130.74 | 20.6 | % | 58.6 | % | 70.7 | % | (12.1) | % | $ | 92.30 | $ | 92.39 | (0.1) | % | |||||||
| Hilton Garden Inn New York/Times Square Central | 282 | $ | 162.46 | $ | 181.10 | (10.3) | % | 77.8 | % | 98.0 | % | (20.2) | % | $ | 126.40 | $ | 177.48 | (28.8) | % | |||||||
| Hotel Clio | 199 | $ | 258.96 | $ | 240.96 | 7.5 | % | 62.4 | % | 46.5 | % | 15.9 | % | $ | 161.68 | $ | 112.09 | 44.2 | % | |||||||
| Hotel Emblem San Francisco | 96 | $ | 189.44 | $ | 247.10 | (23.3) | % | 53.4 | % | 57.5 | % | (4.1) | % | $ | 101.10 | $ | 142.06 | (28.8) | % | |||||||
| Hotel Palomar Phoenix | 242 | $ | 247.83 | $ | 233.06 | 6.3 | % | 76.8 | % | 88.2 | % | (11.4) | % | $ | 190.39 | $ | 205.66 | (7.4) | % | |||||||
| Kimpton Shorebreak Resort | 157 | $ | 297.03 | $ | 236.80 | 25.4 | % | 71.8 | % | 75.3 | % | (3.5) | % | $ | 213.36 | $ | 178.23 | 19.7 | % | |||||||
| L'Auberge de Sedona | 88 | $ | 1,046.12 | $ | 575.73 | 81.7 | % | 68.5 | % | 80.4 | % | (11.9) | % | $ | 716.30 | $ | 462.91 | 54.7 | % | |||||||
| Margaritaville Beach House Key West | 186 | $ | 579.43 | $ | 310.04 | 86.9 | % | 92.0 | % | 94.1 | % | (2.1) | % | $ | 532.94 | $ | 291.63 | 82.7 | % | |||||||
| Orchards Inn Sedona | 70 | $ | 309.21 | $ | 255.22 | 21.2 | % | 63.7 | % | 73.9 | % | (10.2) | % | $ | 196.91 | $ | 188.58 | 4.4 | % | |||||||
| Renaissance Charleston Historic District Hotel | 167 | $ | 311.69 | $ | 236.72 | 31.7 | % | 80.3 | % | 83.8 | % | (3.5) | % | $ | 250.35 | $ | 198.44 | 26.2 | % | |||||||
| Salt Lake City Marriott Downtown at City Creek | 510 | $ | 176.07 | $ | 173.62 | 1.4 | % | 49.0 | % | 59.2 | % | (10.2) | % | $ | 86.21 | $ | 102.73 | (16.1) | % | |||||||
| The Gwen Hotel | 311 | $ | 213.18 | $ | 188.98 | 12.8 | % | 58.2 | % | 70.4 | % | (12.2) | % | $ | 124.11 | $ | 133.05 | (6.7) | % | |||||||
| The Hythe Vail | 344 | $ | 663.43 | $ | 440.49 | 50.6 | % | 67.0 | % | 82.4 | % | (15.4) | % | $ | 444.73 | $ | 362.79 | 22.6 | % | |||||||
| The Landing Lake Tahoe Resort & Spa | 82 | $ | 408.90 | $ | 275.79 | 48.3 | % | 46.5 | % | 53.0 | % | (6.5) | % | $ | 189.99 | $ | 146.21 | 29.9 | % | |||||||
| The Lodge at Sonoma Resort | 182 | $ | 367.07 | $ | 233.68 | 57.1 | % | 48.0 | % | 61.5 | % | (13.5) | % | $ | 176.30 | $ | 143.63 | 22.7 | % | |||||||
| Tranquility Bay Beachfront Resort (1) | 103 | $ | 947.75 | $ | 499.30 | 89.8 | % | 83.3 | % | 91.6 | % | (8.3) | % | $ | 789.49 | $ | 457.41 | 72.6 | % | |||||||
| Westin Boston Waterfront | 793 | $ | 194.05 | $ | 202.24 | (4.0) | % | 53.7 | % | 65.5 | % | (11.8) | % | $ | 104.27 | $ | 132.39 | (21.2) | % | |||||||
| Westin Fort Lauderdale Beach Resort | 433 | $ | 336.96 | $ | 254.27 | 32.5 | % | 87.7 | % | 95.5 | % | (7.8) | % | $ | 295.38 | $ | 242.76 | 21.7 | % | |||||||
| Westin San Diego Bayview | 436 | $ | 175.00 | $ | 189.85 | (7.8) | % | 53.0 | % | 77.5 | % | (24.5) | % | $ | 92.81 | $ | 147.20 | (36.9) | % | |||||||
| Westin Washington D.C. City Center | 410 | $ | 175.98 | $ | 201.14 | (12.5) | % | 35.2 | % | 77.5 | % | (42.3) | % | $ | 62.02 | $ | 155.88 | (60.2) | % | |||||||
| Worthington Renaissance Fort Worth Hotel | 504 | $ | 194.19 | $ | 188.12 | 3.2 | % | 64.3 | % | 79.4 | % | (15.1) | % | $ | 124.90 | $ | 149.42 | (16.4) | % | |||||||
| Comparable Total (2) | 9,454 | $ | 279.09 | $ | 223.66 | 24.8 | % | 55.8 | % | 72.2 | % | (16.4) | % | $ | 155.76 | $ | 161.44 | (3.5) | % |
(1) Hotel was acquired on January 6, 2022. Amounts reflect the operating results for the period from January 6, 2022 to March 31, 2022 and January 6, 2019 to March 31, 2019.
(2) Amounts include the pre-acquisition operating results of Tranquility Bay, the three hotels acquired in 2021 and exclude the two hotels sold in 2021.
| Hotel Adjusted EBITDA Reconciliation - First Quarter 2022 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of Operation | Net Income / (Loss) | Plus: | Plus: | Plus: | Equals: Hotel Adjusted EBITDA | ||||||||||||
| Total Revenues | Depreciation | Interest Expense | Adjustments (1) | ||||||||||||||
| Atlanta Marriott Alpharetta | 90 | $ | 2,468 | $ | 279 | $ | 370 | $ | — | $ | — | $ | 649 | ||||
| Bourbon Orleans Hotel | 90 | $ | 3,049 | $ | 75 | $ | 820 | $ | — | $ | 6 | $ | 901 | ||||
| Cavallo Point, The Lodge at the Golden Gate | 90 | $ | 9,635 | $ | 1,032 | $ | 1,826 | $ | — | $ | 94 | $ | 2,952 | ||||
| Chicago Marriott Downtown Magnificent Mile | 90 | $ | 8,606 | $ | (6,202) | $ | 3,993 | $ | 6 | $ | (397) | $ | (2,600) | ||||
| Courtyard Denver Downtown | 90 | $ | 1,733 | $ | 182 | $ | 377 | $ | — | $ | — | $ | 559 | ||||
| Courtyard New York Manhattan/Fifth Avenue | 90 | $ | 2,349 | $ | (1,175) | $ | 330 | $ | — | $ | 253 | $ | (592) | ||||
| Courtyard New York Manhattan/Midtown East | 90 | $ | 3,840 | $ | (2,273) | $ | 484 | $ | 905 | $ | — | $ | (884) | ||||
| Embassy Suites by Hilton Bethesda | 90 | $ | 939 | $ | (3,099) | $ | 553 | $ | — | $ | 1,489 | $ | (1,057) | ||||
| Havana Cabana Key West | 90 | $ | 4,615 | $ | 2,182 | $ | 283 | $ | — | $ | — | $ | 2,465 | ||||
| Henderson Beach Resort | 90 | $ | 6,906 | $ | (607) | $ | 953 | $ | — | $ | — | $ | 346 | ||||
| Henderson Park Inn | 90 | $ | 1,377 | $ | (83) | $ | 215 | $ | — | $ | — | $ | 132 | ||||
| Hilton Boston Downtown/Faneuil Hall | 90 | $ | 4,790 | $ | (1,037) | $ | 1,057 | $ | — | $ | — | $ | 20 | ||||
| Hilton Burlington Lake Champlain | 90 | $ | 2,768 | $ | (98) | $ | 560 | $ | — | $ | — | $ | 462 | ||||
| Hilton Garden Inn New York/Times Square Central | 90 | $ | 3,678 | $ | (611) | $ | 620 | $ | — | $ | — | $ | 9 | ||||
| Hotel Clio | 90 | $ | 4,941 | $ | (447) | $ | 800 | $ | 644 | $ | 5 | $ | 1,002 | ||||
| Hotel Emblem San Francisco | 90 | $ | 1,074 | $ | (473) | $ | 301 | $ | — | $ | — | $ | (172) | ||||
| Hotel Palomar Phoenix | 90 | $ | 6,382 | $ | 1,807 | $ | 674 | $ | — | $ | 185 | $ | 2,666 | ||||
| Kimpton Shorebreak Resort | 90 | $ | 4,398 | $ | 995 | $ | 403 | $ | — | $ | — | $ | 1,398 | ||||
| L'Auberge de Sedona | 90 | $ | 8,195 | $ | 2,378 | $ | 393 | $ | — | $ | — | $ | 2,771 | ||||
| Margaritaville Beach House Key West | 90 | $ | 10,948 | $ | 5,337 | $ | 806 | $ | — | $ | — | $ | 6,143 | ||||
| Orchards Inn Sedona | 90 | $ | 2,233 | $ | 590 | $ | 84 | $ | — | $ | 42 | $ | 716 | ||||
| Renaissance Charleston Historic District Hotel | 90 | $ | 4,924 | $ | 1,621 | $ | 456 | $ | — | $ | — | $ | 2,077 | ||||
| Salt Lake City Marriott Downtown at City Creek | 90 | $ | 5,899 | $ | 1,042 | $ | 522 | $ | 478 | $ | 11 | $ | 2,053 | ||||
| The Gwen Hotel | 90 | $ | 5,038 | $ | (1,684) | $ | 1,075 | $ | — | $ | — | $ | (609) | ||||
| The Hythe Vail | 90 | $ | 17,733 | $ | 7,928 | $ | 1,197 | $ | — | $ | — | $ | 9,125 | ||||
| The Landing Lake Tahoe Resort & Spa | 90 | $ | 2,177 | $ | 556 | $ | 358 | $ | — | $ | — | $ | 914 | ||||
| The Lodge at Sonoma Resort | 90 | $ | 5,197 | $ | (97) | $ | 628 | $ | 260 | $ | — | $ | 791 | ||||
| Tranquility Bay Beachfront Resort | 85 | $ | 8,048 | $ | 2,873 | $ | 133 | $ | — | $ | — | $ | 3,006 | ||||
| Westin Boston Seaport District | 90 | $ | 13,023 | $ | (3,862) | $ | 2,456 | $ | 2,027 | $ | (122) | $ | 499 | ||||
| Westin Fort Lauderdale Beach Resort | 90 | $ | 22,452 | $ | 10,262 | $ | 993 | $ | — | $ | — | $ | 11,255 | ||||
| Westin San Diego Bayview | 90 | $ | 5,006 | $ | (311) | $ | 806 | $ | 583 | $ | — | $ | 1,078 | ||||
| Westin Washington D.C. City Center | 90 | $ | 2,916 | $ | (1,382) | $ | 1,018 | $ | 592 | $ | — | $ | 228 | ||||
| Worthington Renaissance Fort Worth Hotel | 90 | $ | 9,496 | $ | 1,082 | $ | 1,111 | $ | 729 | $ | 2 | $ | 2,924 | ||||
| Total | $ | 196,833 | $ | 16,780 | $ | 26,655 | $ | 6,224 | $ | 1,568 | $ | 51,227 | |||||
| Prior Ownership Results (2) | $ | 430 | $ | (116) | $ | 10 | $ | — | $ | — | $ | (106) | |||||
| Comparable Total | $ | 197,263 | $ | 16,664 | $ | 26,665 | $ | 6,224 | $ | 1,568 | $ | 51,121 |
(1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.
(2) Amounts represent the pre-acquisition operating results of the Tranquility Bay Beachfront Resort from January 1, 2022 to January 5, 2022.
| Hotel Adjusted EBITDA Reconciliation - First Quarter 2021 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of Operation | Net Income / (Loss) | Plus: | Plus: | Plus: | Equals: Hotel | |||||||||||||
| Total Revenues | Depreciation | Interest Expense | Adjustments (1) | Adjusted EBITDA | ||||||||||||||
| Atlanta Marriott Alpharetta | 90 | $ | 762 | $ | (652) | $ | 348 | $ | — | $ | — | $ | (304) | |||||
| Cavallo Point, The Lodge at the Golden Gate | 90 | $ | 2,878 | $ | (1,731) | $ | 1,838 | $ | — | $ | 94 | $ | 201 | |||||
| Chicago Marriott Downtown Magnificent Mile | 2 | $ | 114 | $ | (7,336) | $ | 4,106 | $ | 43 | $ | (397) | $ | (3,584) | |||||
| Courtyard Denver Downtown | 90 | $ | 692 | $ | (462) | $ | 383 | $ | — | $ | — | $ | (79) | |||||
| Courtyard New York Manhattan/Fifth Avenue | — | $ | 52 | $ | (1,657) | $ | 329 | $ | — | $ | 253 | $ | (1,075) | |||||
| Courtyard New York Manhattan/Midtown East | 90 | $ | 2,465 | $ | (2,643) | $ | 485 | $ | 924 | $ | — | $ | (1,234) | |||||
| Embassy Suites by Hilton Bethesda | 90 | $ | 554 | $ | (2,655) | $ | 523 | $ | — | $ | 1,501 | $ | (631) | |||||
| Frenchman's Reef & Morning Star Marriott Beach Resort | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
| Havana Cabana Key West | 90 | $ | 3,118 | $ | 1,178 | $ | 266 | $ | — | $ | — | $ | 1,444 | |||||
| Hilton Boston Downtown/Faneuil Hall | 90 | $ | 835 | $ | (2,819) | $ | 1,095 | $ | — | $ | — | $ | (1,724) | |||||
| Hilton Burlington Lake Champlain | 90 | $ | 968 | $ | (895) | $ | 649 | $ | — | $ | — | $ | (246) | |||||
| Hilton Garden Inn New York/Times Square Central | — | $ | (1) | $ | (2,252) | $ | 839 | $ | — | $ | — | $ | (1,413) | |||||
| Hotel Clio | 90 | $ | 2,420 | $ | (1,510) | $ | 793 | $ | 657 | $ | 5 | $ | (55) | |||||
| Hotel Emblem San Francisco | 90 | $ | 208 | $ | (772) | $ | 308 | $ | — | $ | — | $ | (464) | |||||
| Hotel Palomar Phoenix | 90 | $ | 2,542 | $ | (513) | $ | 679 | $ | — | $ | 286 | $ | 452 | |||||
| Kimpton Shorebreak Resort | 90 | $ | 2,098 | $ | (119) | $ | 410 | $ | — | $ | — | $ | 291 | |||||
| L'Auberge de Sedona | 90 | $ | 6,478 | $ | 1,755 | $ | 543 | $ | — | $ | — | $ | 2,298 | |||||
| Margaritaville Beach House Key West | 90 | $ | 6,035 | $ | 2,533 | $ | 711 | $ | — | $ | — | $ | 3,244 | |||||
| Orchards Inn Sedona | 90 | $ | 1,782 | $ | 478 | $ | 82 | $ | — | $ | 42 | $ | 602 | |||||
| Renaissance Charleston Historic District Hotel | 90 | $ | 2,246 | $ | 120 | $ | 453 | $ | — | $ | — | $ | 573 | |||||
| Salt Lake City Marriott Downtown at City Creek | 90 | $ | 2,118 | $ | (1,064) | $ | 527 | $ | 517 | $ | — | $ | (20) | |||||
| The Gwen Hotel | 90 | $ | 1,937 | $ | (2,145) | $ | 1,095 | $ | — | $ | — | $ | (1,050) | |||||
| The Hythe Vail | 90 | $ | 11,275 | $ | 5,054 | $ | 901 | $ | — | $ | — | $ | 5,955 | |||||
| The Landing Lake Tahoe Resort & Spa | 90 | $ | 1,609 | $ | 193 | $ | 416 | $ | — | $ | — | $ | 609 | |||||
| The Lexington Hotel | — | $ | 42 | $ | (5,162) | $ | 1,925 | $ | 6 | $ | 8 | $ | (3,223) | |||||
| The Lodge at Sonoma Resort | 90 | $ | 1,434 | $ | (1,218) | $ | 545 | $ | 265 | $ | — | $ | (408) | |||||
| Westin Boston Seaport District | 90 | $ | 1,363 | $ | (7,997) | $ | 2,546 | $ | 2,072 | $ | (122) | $ | (3,501) | |||||
| Westin Fort Lauderdale Beach Resort | 90 | $ | 11,073 | $ | 2,446 | $ | 1,063 | $ | — | $ | — | $ | 3,509 | |||||
| Westin San Diego Bayview | 90 | $ | 1,492 | $ | (2,217) | $ | 845 | $ | 600 | $ | — | $ | (772) | |||||
| Westin Washington D.C. City Center | 90 | $ | 556 | $ | (3,123) | $ | 1,147 | $ | 616 | $ | — | $ | (1,360) | |||||
| Worthington Renaissance Fort Worth Hotel | 90 | $ | 3,792 | $ | (2,462) | $ | 1,112 | $ | 745 | $ | 2 | $ | (603) | |||||
| Total | $ | 72,937 | $ | (37,647) | $ | 26,962 | $ | 6,445 | $ | 1,672 | $ | (2,568) | ||||||
| Add: Prior Ownership Results (2) | $ | 13,639 | $ | (238) | $ | 1,739 | $ | — | $ | — | $ | 1,501 | ||||||
| Less: Sold Hotels (3) | $ | (42) | $ | 5,162 | $ | (1,925) | $ | (6) | $ | (8) | $ | 3,223 | ||||||
| Comparable Total | $ | 86,534 | $ | (32,723) | $ | 26,776 | $ | 6,439 | $ | 1,664 | $ | 2,156 |
(1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.
(2) Amounts represent the pre-acquisition operating results of the 2021 acquisitions and Tranquility Bay Beachfront Resort from January 1, 2021 to March 31, 2021.
(3) Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.
| Hotel Adjusted EBITDA Reconciliation - First Quarter 2019 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of Operation | Net Income / (Loss) | Plus: | Plus: | Plus: | Equals: Hotel | |||||||||||||
| Total Revenues | Depreciation | Interest Expense | Adjustments (1) | Adjusted EBITDA | ||||||||||||||
| Atlanta Marriott Alpharetta | 90 | $ | 5,311 | $ | 1,579 | $ | 475 | $ | — | $ | — | $ | 2,054 | |||||
| Cavallo Point, The Lodge at the Golden Gate | 90 | $ | 9,247 | $ | (221) | $ | 1,941 | $ | — | $ | 31 | $ | 1,751 | |||||
| Chicago Marriott Downtown Magnificent Mile | 90 | $ | 16,131 | $ | (4,067) | $ | 4,129 | $ | 71 | $ | (397) | $ | (264) | |||||
| Courtyard Denver Downtown | 90 | $ | 2,245 | $ | 548 | $ | 296 | $ | — | $ | — | $ | 844 | |||||
| Courtyard New York Manhattan/Fifth Avenue | 90 | $ | 2,884 | $ | (905) | $ | 441 | $ | — | $ | 253 | $ | (211) | |||||
| Courtyard New York Manhattan/Midtown East | 90 | $ | 5,256 | $ | (1,621) | $ | 692 | $ | 958 | $ | — | $ | 29 | |||||
| Embassy Suites by Hilton Bethesda | 90 | $ | 3,937 | $ | (971) | $ | 478 | $ | — | $ | 1,525 | $ | 1,032 | |||||
| Frenchman's Reef & Morning Star Marriott Beach Resort | — | $ | — | $ | 8,799 | $ | — | $ | — | $ | — | $ | 8,799 | |||||
| Havana Cabana Key West | 90 | $ | 2,916 | $ | 1,202 | $ | 245 | $ | — | $ | — | $ | 1,447 | |||||
| Hilton Boston Downtown/Faneuil Hall | 90 | $ | 6,672 | $ | (87) | $ | 1,244 | $ | — | $ | — | $ | 1,157 | |||||
| Hilton Burlington Lake Champlain | 90 | $ | 2,916 | $ | 44 | $ | 499 | $ | — | $ | — | $ | 543 | |||||
| Hilton Garden Inn New York/Times Square Central | 90 | $ | 4,624 | $ | (670) | $ | 844 | $ | — | $ | — | $ | 174 | |||||
| Hotel Clio | 90 | $ | 2,676 | $ | (1,477) | $ | 541 | $ | 683 | $ | 6 | $ | (247) | |||||
| Hotel Emblem San Francisco | 90 | $ | 1,349 | $ | (256) | $ | 275 | $ | — | $ | — | $ | 19 | |||||
| Hotel Palomar Phoenix | 90 | $ | 7,613 | $ | 2,075 | $ | 666 | $ | 38 | $ | 296 | $ | 3,075 | |||||
| Kimpton Shorebreak Resort | 90 | $ | 3,940 | $ | 586 | $ | 349 | $ | — | $ | 41 | $ | 976 | |||||
| L'Auberge de Sedona | 90 | $ | 5,954 | $ | 859 | $ | 508 | $ | — | $ | — | $ | 1,367 | |||||
| Margaritaville Beach House Key West | 90 | $ | 5,794 | $ | 2,395 | $ | 338 | $ | — | $ | — | $ | 2,733 | |||||
| Orchards Inn Sedona | 90 | $ | 1,878 | $ | 274 | $ | 238 | $ | — | $ | 42 | $ | 554 | |||||
| Renaissance Charleston Historic District Hotel | 90 | $ | 3,483 | $ | 890 | $ | 403 | $ | — | $ | (32) | $ | 1,261 | |||||
| Salt Lake City Marriott Downtown at City Creek | 90 | $ | 6,874 | $ | 1,058 | $ | 530 | $ | 604 | $ | — | $ | 2,192 | |||||
| The Gwen Hotel | 90 | $ | 5,056 | $ | (1,559) | $ | 1,058 | $ | — | $ | — | $ | (501) | |||||
| The Hythe Vail | 90 | $ | 15,395 | $ | 6,545 | $ | 990 | $ | — | $ | — | $ | 7,535 | |||||
| The Landing Lake Tahoe Resort & Spa | 90 | $ | 1,753 | $ | (460) | $ | 376 | $ | — | $ | — | $ | (84) | |||||
| The Lexington Hotel | 90 | $ | 11,265 | $ | (4,421) | $ | 3,530 | $ | 4 | $ | 8 | $ | (879) | |||||
| The Lodge at Sonoma Resort | 90 | $ | 4,529 | $ | (336) | $ | 535 | $ | 279 | $ | — | $ | 478 | |||||
| Westin Boston Seaport District | 90 | $ | 17,742 | $ | (2,045) | $ | 2,413 | $ | 2,156 | $ | (60) | $ | 2,464 | |||||
| Westin Fort Lauderdale Beach Resort | 90 | $ | 17,500 | $ | 5,952 | $ | 1,545 | $ | — | $ | — | $ | 7,497 | |||||
| Westin San Diego Bayview | 90 | $ | 8,645 | $ | 1,701 | $ | 1,126 | $ | 631 | $ | — | $ | 3,458 | |||||
| Westin Washington D.C. City Center | 90 | $ | 7,094 | $ | (235) | $ | 1,322 | $ | 661 | $ | — | $ | 1,748 | |||||
| Worthington Renaissance Fort Worth Hotel | 90 | $ | 11,696 | $ | 3,182 | $ | 969 | $ | 775 | $ | 2 | $ | 4,928 | |||||
| Total | $ | 202,375 | $ | 18,358 | $ | 28,996 | $ | 6,860 | $ | 1,715 | $ | 55,929 | ||||||
| Add: Prior Ownership Results (2) | $ | 15,260 | $ | 1,227 | $ | 1,739 | $ | — | $ | — | $ | 2,966 | ||||||
| Less: Sold Hotels (3) | $ | (11,265) | $ | (4,378) | $ | (3,530) | $ | (4) | $ | (8) | $ | (7,920) | ||||||
| Comparable Total | $ | 206,370 | $ | 15,207 | $ | 27,205 | $ | 6,856 | $ | 1,707 | $ | 50,975 |
(1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.
(2) Amounts represent the pre-acquisition operating results of the 2021 acquisitions and Tranquility Bay Beachfront Resort from January 1, 2019 to March 31, 2019.
(3) Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.
kimptonfllacquisitionpre
COMPANY CONTACT Jeff Donnelly Chief Financial Officer (240) 744-1190 Briony Quinn Senior Vice President (240) 744-1196 FOR IMMEDIATE RELEASE DIAMONDROCK ACQUIRES KIMPTON FORT LAUDERDALE BEACH RESORT SIGNIFICANT VALUE CREATION OPPORTUNITIES IN OPERATIONS & SYNERGIES BETHESDA, Maryland, May 5, 2022 – DiamondRock Hospitality Company (the “Company” or “DiamondRock”) (NYSE: DRH) today announced it acquired a fee-simple interest in The Kimpton Fort Lauderdale Beach Resort, a boutique lifestyle beach resort in Fort Lauderdale, Florida, for a total investment of $35.3 million ($367,700/key). The resort will be operated by HEI Hotels & Resorts under a franchise agreement with Kimpton Hotels & Restaurants. “This acquisition marks our 14th resort, and we are extremely excited to add The Kimpton Fort Lauderdale Beach Resort to our portfolio and extend DiamondRock’s leadership with the preeminent portfolio of leisure-oriented, lifestyle hotels and resorts,” said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. “The resort was acquired in an off-market transaction at a significant discount to recently consummated transactions in the market. We plan to capitalize on synergies by having HEI Hotels & Resorts manage this resort in addition to managing DiamondRock’s nearby Westin Fort Lauderdale Beach Resort. There are significant opportunities to create value by leveraging our leading resort expertise to enhance revenue management and fundamentally reprogram the underutilized rooftop bar and the restaurant. We expect the resort to ramp quickly over the next two years and stabilize at over an 8% stabilized yield.” The Company purchased the 96-room Kimpton Fort Lauderdale Beach Resort in Fort Lauderdale, Florida on April 1, 2022. The resort reopened in mid-2021 after a comprehensive rebuild that fully upgraded the resort to current building codes while preserving its iconic Art Deco architecture. The resort offers numerous competitive advantages: • Dedicated beachfront area • Rooftop bar and swimming pool with panoramic views of the Intracoastal Waterway • Intimate street-level, open-air restaurant & bar with lush courtyard swimming pool • Significant brand distribution potential as the only IHG Hotels & Resorts and Kimpton-affiliated property in Fort Lauderdale Beach • Architecturally unique Art Deco style with historic elements and modern amenities
2 DiamondRock’s acquisition also includes ownership of a 230-space parking facility supporting both the resort as well as the adjacent Tiffany House residences. While not considered in our underwriting, we believe there is a meaningful opportunity to generate high-margin revenue from the parking facility as well as the creation of a rental management agreement program for the unit owners in the 129-unit Tiffany House. Moreover, we believe the rooftop may provide a meaningful opportunity to add clean-energy solar panels to reduce the resort’s annual electricity costs and carbon footprint. About the Company DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. The Company currently owns 34 premium quality hotels and resorts with over 9,500 rooms. The Company has strategically curated its portfolio to be comprised of unique lifestyle properties, as well as those enhanced by leading global brands. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com. This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “forecast,” “plan” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: national and local economic and business conditions; operating risks associated with the hotel business; risks associated with the level of the Company’s indebtedness; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
3