DiamondRock Hospitality Company Reports Third Quarter 2020 Results

Significantly Improves Cash Burn Rate – Bolsters Liquidity to $434.5 Million

DiamondRock Hospitality Company (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 31 premium hotels in the United States, today announced results of operations for the quarter ended September 30, 2020.

“Confronted with the disruption in travel demand caused by the COVID-19 pandemic, I want to commend the DiamondRock team for their unwavering dedication to executing our multi-prong pandemic response plan,” said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. “Our quarterly cash burn rate significantly outperformed our original expectations as the result of relentless efforts by our asset managers and hotel operators. While our current focus remains centered on balance sheet strength, bolstered by our recent preferred equity offering, we are also taking steps to emerge from the pandemic as an even better company. During the quarter we converted five long-term management agreements to terminable-at-will agreements, distinguishing DiamondRock with the most flexible and least management-encumbered portfolio of any full-service hotel REIT.”

Third Quarter 2020 Highlights:

  • Hotel Operations: The Company initially suspended operations at 20 of its 30 previously operating hotels throughout March and early April either under governmental orders or due to lack of travel demand caused by the pandemic. The Company reopened 12 hotels during the second quarter and 5 additional hotels during the third quarter as governmental orders were modified or lifted and leisure demand began to return.  The Company currently has 27 of its 30 operating hotels open.   
  • Net Loss: Net loss was $79.6 million and loss per diluted share was $0.40.
  • Comparable Revenues: Comparable total revenues decreased 79.2% from the comparable period of 2019.
  • Comparable RevPAR: RevPAR decreased 81.0% from the comparable period of 2019.
  • Hotel Adjusted EBITDA: Hotel Adjusted EBITDA was ($17.4) million, a 42.8% improvement from the second quarter 2020.
  • Adjusted EBITDA: Adjusted EBITDA was ($24.4) million, a decrease of $91.9 million from 2019.
  • Adjusted FFO: Adjusted FFO was ($43.5) million and Adjusted FFO per diluted share was ($0.22).  Adjusted FFO was negatively impacted by an income tax valuation allowance recognized in the quarter of $12.4 million, or $0.06 per diluted share.
  • Preferred Stock Offering: In August and September 2020, the Company issued a total of 4.8 million shares of 8.250% Series A Cumulative Redeemable Preferred Stock for net proceeds of approximately $114.5 million.
  • Liquidity: The Company’s liquidity increased during the quarter by $70.6 million to $434.5 million, comprised of $110.6 million of unrestricted corporate cash, $23.9 million of unrestricted cash at its hotels and $300.0 million of capacity on the Company’s revolving credit facility.

For the quarter ended September 30, 2020, the Company reported the following:

Third Quarter

2020

2019

Change

Comparable Operating Results (1)

ADR

$201.82

$238.50

(15.4)

%

Occupancy

18.6

%

82.7

%

(64.1)

%

RevPAR

$37.55

$197.14

(81.0)

%

Total RevPAR

$56.69

$272.05

(79.2)

%

Revenues

$50.1 million

$240.3 million

(79.2)

%

Hotel Adjusted EBITDA

($17.4) million

$73.8 million

(123.6)

%

Hotel Adjusted EBITDA Margin

(34.69)

%

30.69

%

(6,538) basis points

Available Rooms

883,200

883,200

–         rooms

Actual Operating Results

Revenues

$50.1 million

$240.3 million

(79.2)

%

Net loss/income

($79.6) million

$11.6 million

($91.2) million

Loss/Earnings per diluted share

($0.40)

$0.06

($0.46)

Adjusted EBITDA

($24.4) million

$67.5 million

($91.9) million

Adjusted FFO

($43.5) million

$55.3 million

($98.8) million

Adjusted FFO per diluted share

($0.22)

$0.27

($0.49)

(1)   

Comparable operating results exclude Frenchman’s Reef & Morning Star Marriott Beach Resort for all periods presented and does not adjust for hotels that have suspended operations.

For the nine months ended September 30, 2020, the Company reported the following:

Year to Date

2020

2019

Change

Comparable Operating Results (1)

ADR

$209.23

$235.89

(11.3)

%

Occupancy

28.7

%

79.7

%

(51.0)

%

RevPAR

$60.09

$187.96

(68.0)

%

Total RevPAR

$91.41

$267.43

(65.8)

%

Revenues

$240.4 million

$700.6 million

(65.7)

%

Hotel Adjusted EBITDA

($29.9) million

$209.2 million

(114.3)

%

Hotel Adjusted EBITDA Margin

(12.44)

%

29.87

%

(4,231) basis points

Available Rooms

2,630,400

2,619,609

10,791 rooms

Actual Operating Results

Revenues

$240.4 million

$700.6 million

(65.7)

%

Net loss/income

($187.7) million

$49.6 million

($237.3) million

Loss/Earnings per diluted share

($0.93)

$0.24

($1.17)

Adjusted EBITDA

($49.6) million

$197.8 million

($247.4) million

Adjusted FFO

($76.1) million

$162.3 million

($238.4) million

Adjusted FFO per diluted share

($0.38)

$0.80

($1.18)

(1) 

Comparable operating results exclude Frenchman’s Reef & Morning Star Marriott Beach Resort for all periods presented and does not adjust for hotels that have suspended operations.

Net loss for the three and nine months ended September 30, 2020 includes $7.4 million and $7.8 million, respectively, of severance costs recognized in connection with the elimination of positions at the Company’s hotels.  These severance costs are excluded from Hotel Adjusted EBITDA, Adjusted EBITDA and Adjusted FFO in accordance with the Company’s definition of these metrics.

Hotel Operations Update

Due to the decline in travel demand from the impact of COVID-19, the Company temporarily suspended operations at 20 of its 30 previously operating properties (which excludes Frenchman’s Reef & Morning Star Marriott Beach Resort, where redevelopment has been paused) throughout March and early April.  The Company resumed operations at 12 hotels by the end of the second quarter and another five hotels by the end of the third quarter as governmental orders were modified or lifted and leisure demand began to return.  The Company does not expect to reopen the remaining three closed hotels in 2020, all of which are located in New York City. The Company will continue to aggressively manage costs at its hotels ensure appropriate cleanliness and safety protocols.  The Company is carefully monitoring demand trends and adjusted sales strategies and staffing to respond rapidly in a changing environment.

The Company has successfully improved the cash burn rate at its hotels as a result of aggressive cost controls and increased demand.  The average burn rate for the Company’s hotels during the third quarter 2020 was $8.5 million per month, a 19.8% improvement over the average burn rate of $10.6 million per month in the second quarter 2020.

The following table identifies each of the Company’s hotels that has suspended operations and the date of reopening, if applicable:

Property

# of Rooms

Date of

Suspension

Date of

Reopening

Renaissance Charleston Historic District Hotel

166

4/6/2020

5/14/2020

Orchards Inn Sedona

70

3/31/2020

5/15/2020

Courtyard Denver Downtown

177

3/20/2020

6/1/2020

JW Marriott Denver Cherry Creek

199

3/22/2020

6/1/2020

Havana Cabana Key West

106

3/23/2020

6/1/2020

Barbary Beach House Key West

184

3/23/2020

6/1/2020

The Landing Lake Tahoe Resort & Spa

82

3/23/2020

6/5/2020

The Gwen Chicago

311

3/31/2020

6/10/2020

Vail Marriott Mountain Resort

344

3/20/2020

6/12/2020

Hotel Palomar Phoenix

242

3/31/2020

6/21/2020

Cavallo Point, The Lodge at the Golden Gate

142

3/17/2020

6/24/2020

Hotel Emblem San Francisco

96

3/23/2020

6/26/2020

The Lodge at Sonoma Renaissance Resort & Spa

182

3/21/2020

7/1/2020

Hilton Burlington Lake Champlain

258

3/31/2020

7/16/2020

Hilton Boston Downtown/Faneuil Hall

403

3/23/2020

7/31/2020

Chicago Marriott Downtown Magnificent Mile

1,200

4/10/2020

9/1/2020

Westin Boston Waterfront

793

3/25/2020

9/3/2020

Courtyard New York Manhattan/Fifth Avenue

189

3/27/2020

Hilton Garden Inn New York Times Square Central

282

3/29/2020

The Lexington Hotel

725

3/29/2020

The following tables provide operating information for the Company’s portfolio throughout the third quarter:

July 2020

August 2020

September 2020

Third Quarter 2020

Hotels Open and Operating the Entire Period

Number of Hotels

23

23

23

23

Occupancy

25.8

%

28.1

%

31.1

%

28.3

%

ADR

$206.98

$200.78

$210.92

$206.32

RevPAR

$53.43

$56.40

$65.54

$58.38

Total RevPAR

$76.36

$84.68

$100.89

$87.16

 

July 2020

August 2020

September 2020

Third Quarter 2020

Resorts Open and Operating the Entire Period

Number of Hotels

11

11

11

11

Occupancy

39.8

%

44.1

%

45.1

%

43.0

%

ADR

$265.29

$258.48

$282.70

$268.89

RevPAR

$105.49

$114.10

$127.49

$115.57

Total RevPAR

$157.89

$176.87

$206.76

$180.22

 

July 2020

August 2020

September 2020

Third Quarter 2020

Hotels Open and Operating at Any Point During the Period

Number of Hotels

25

25

27

27

Occupancy

23.5

%

27.4

%

25.0

%

25.3

%

ADR

$206.35

$197.12

$202.53

$201.82

RevPAR

$48.55

$54.09

$50.64

$51.06

Total RevPAR

$69.50

$80.19

$77.36

$75.82

Capital Expenditures

The Company invested approximately $8.1 million and $39.9 million in capital improvements at its operating hotels during the three and nine months ended September 30, 2020, respectively. Due to the COVID-19 pandemic, the Company has canceled or deferred a significant portion of the planned capital improvements at its operating hotels.  The Company currently expects to invest approximately $10.0 million in the fourth quarter for a total of $50.0 million of investment in capital improvements at its operating hotels during 2020.  Separately, the Company has paused the rebuild of Frenchman’s Reef & Morning Star Marriott Beach Resort. The Company spent approximately $38.3 million on the rebuild of Frenchman’s Reef & Morning Star Marriott Beach Resort during the nine months ended September 30, 2020.

Management and Franchise Agreement Amendments

On August 27, 2020, the Company entered into an agreement with Marriott International, Inc. modifying several franchise and management contracts.  Key benefits of the agreement include: (i) the conversion of five hotels from brand-managed to franchise with new terminable-at-will management agreements with third-party hotel operators, (ii) a new franchise agreement for the Vail Marriott Mountain Resort to upbrand the resort to a Luxury Collection hotel in 2021, (iii) an option to upbrand the JW Marriott Denver Cherry Creek to a Luxury Collection hotel and (iv) an amendment to the Autograph Collection franchise agreement for The Lexington Hotel to provide a termination right in 2021 subject to a fee.  The agreement results in the Company having 29 of its 31 hotels unencumbered by long-term brand management agreements.

Balance Sheet and Liquidity

As of September 30, 2020, the Company’s liquidity was $434.5 million, an increase of $70.6 million during the quarter, and is comprised of $110.6 million of unrestricted corporate cash, $23.9 million of unrestricted cash at its hotels and $300.0 million of capacity on its senior unsecured credit facility.  As of September 30, 2020, the Company had $1.1 billion of total debt outstanding, which consisted of $604.5 million of property-specific, non-recourse mortgage debt, $400.0 million of unsecured term loans and $100.0 million outstanding on its $400.0 million senior unsecured credit facility.  The Company has no material debt maturities until 2022.

In August and September 2020, the Company completed a public offering of a total of 4.8 million shares of 8.250% Series A Cumulative Redeemable Preferred Stock with a $25.00 per share liquidation preference for net proceeds of approximately $114.5 million. 

Dividends

The Company declared an inaugural dividend of $0.1776 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock to shareholders of record as of September 20, 2020.  This dividend was paid on September 30, 2020 and calculated on a pro rata basis from, and including, the original issue date to, and including, September 30, 2020.  In order to preserve liquidity, the Company has suspended its quarterly dividend on common stock commencing with the dividend that would have been paid in April 2020.

Guidance

Given the high level of uncertainty surrounding the COVID-19 pandemic and its effect on hotel demand, the Company previously withdrew full year 2020 guidance originally issued on February 20, 2020 and is not providing updated guidance at this time.

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 owns 31 premium quality hotels with over 10,000 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.

DIAMONDROCK HOSPITALITY COMPANY

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

September 30, 2020

December 31, 2019

ASSETS

(unaudited)

Property and equipment, net

$

3,013,989

$

3,026,769

Right-of-use assets

96,956

98,145

Restricted cash

31,478

57,268

Due from hotel managers

67,951

91,207

Prepaid and other assets (1)

33,194

29,853

Cash and cash equivalents

110,555

122,524

Total assets

$

3,354,123

$

3,425,766

LIABILITIES AND EQUITY

Liabilities:

Mortgage and other debt, net of unamortized debt issuance costs

$

601,715

$

616,329

Unsecured term loans, net of unamortized debt issuance costs

398,443

398,770

Senior unsecured credit facility

99,985

75,000

Total debt

1,100,143

1,090,099

Deferred income related to key money, net

11,045

11,342

Unfavorable contract liabilities, net

64,564

67,422

Deferred rent

55,270

52,012

Lease liabilities

104,275

103,625

Due to hotel managers

94,473

72,445

Distributions declared and unpaid

138

25,815

Accounts payable and accrued expenses (2)

82,026

81,944

Total liabilities

1,511,934

1,504,704

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 and no shares issues and outstanding at
    September 30, 2020 and December 31, 2019, respectively

48

Common stock, $0.01 par value; 400,000,000 shares authorized; 199,518,880 and 200,207,795 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

1,995

2,002

Additional paid-in capital

2,198,376

2,089,349

Accumulated deficit

(366,635)

(178,861)

Total stockholders’ equity

1,833,784

1,912,490

Noncontrolling interests

8,405

8,572

Total equity

1,842,189

1,921,062

Total liabilities and equity

$

3,354,123

$

3,425,766

 

(1)

Includes $10.7 million of insurance receivables as of December 31, 2019, $13.6 million and $9.8 million of prepaid expenses and $19.6 million and $9.4 million of other assets as of September 30, 2020 and December 31, 2019, respectively.

(2)

Includes $28.7 million of deferred tax liabilities, $18.4 million and $18.9 million of accrued property taxes, $8.9 million and $13.1 million of accrued capital expenditures and $26.0 million and $21.2 million of other accrued liabilities as of September 30, 2020 and December 31, 2019, respectively.

 

                

DIAMONDROCK HOSPITALITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Revenues:

Rooms

$

33,166

$

174,113

$

158,066

$

492,395

Food and beverage

9,586

50,624

56,529

161,803

Other

7,315

15,542

25,846

46,374

Total revenues

50,067

240,279

240,441

700,572

Operating Expenses:

Rooms

11,792

42,840

54,588

124,581

Food and beverage

10,043

34,262

45,845

103,868

Management fees

(755)

6,088

2,644

18,745

Franchise fees

1,813

6,894

8,402

19,961

Other hotel expenses

53,196

85,157

171,759

241,955

Depreciation and amortization

28,514

29,474

87,397

87,805

Corporate expenses

7,267

6,318

19,650

20,785

Business interruption insurance income

(8,822)

Total operating expenses, net

111,870

211,033

390,285

608,878

Interest and other (income) expense, net

(191)

(102)

58

(510)

Interest expense

10,818

14,184

43,665

38,264

Loss on early extinguishment of debt

2,373

2,373

  Total other expenses, net

10,627

16,455

43,723

40,127

(Loss) income before income taxes

(72,430)

12,791

(193,567)

51,567

Income tax (expense) benefit

(7,205)

(1,217)

5,853

(1,939)

Net (loss) income

(79,635)

11,574

(187,714)

49,628

Less:  Net loss (income) attributable to noncontrolling interests

43

(45)

781

(194)

Net (loss) income attributable to the Company

(79,592)

11,529

(186,933)

49,434

Distributions to preferred stockholders

(845)

(845)

Net (loss) income attributable to common stockholders

$

(80,437)

$

11,529

$

(187,778)

$

49,434

(Loss) earnings per share:

Net (loss) income per share available to common stockholders – basic

$

(0.40)

$

0.06

$

(0.93)

$

0.24

Net (loss) income per share available to common stockholders – diluted

$

(0.40)

$

0.06

$

(0.93)

$

0.24

Weighted-average number of common shares outstanding:

Basic

200,978,327

201,448,348

200,994,434

202,218,646

Diluted

200,978,327

201,992,289

200,994,434

202,682,588

 

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 September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Net (loss) income

$

(79,635)

$

11,574

$

(187,714)

$

49,628

Interest expense

10,818

14,184

43,665

38,264

Income tax expense (benefit)

7,205

1,217

(5,853)

1,939

Real estate related depreciation and amortization

28,514

29,474

87,397

87,805

EBITDA/EBITDAre

(33,098)

56,449

(62,505)

177,636

Non-cash lease expense and other amortization

1,715

1,750

5,172

5,249

Professional fees and pre-opening costs related to
Frenchman’s Reef (1)

593

6,378

418

11,445

Hotel manager transition items (2)

(1,021)

582

(460)

1,050

Loss on early extinguishment of debt

2,373

2,373

Severance costs (3)

7,367

7,760

Adjusted EBITDA

$

(24,444)

$

67,532

$

(49,615)

$

197,753

 

(1)

Represents pre-opening costs related to the re-opening of Frenchman’s Reef & Morning Star Marriott Beach Resort, as well as legal and professional fees and other costs incurred at Frenchman’s Reef & Morning Star Marriott Beach Resort as a result of Hurricane Irma that are not covered by insurance.

(2)

Three months ended September 30, 2020 consists of manager transition costs of $0.4 million related to The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel. Nine months ended September 30, 2020 consists of manager transition costs of $1.5 million related to the L’Auberge de Sedona, Orchards Inn Sedona, the Westin Boston Waterfront, The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement and $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel.

Three months ended September 30, 2019 consist of (a) less than $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and manager transition costs related to the Westin Washington, D.C. City Center and (b) $0.6 million of manager termination fees for L’Auberge de Sedona and Orchards Inn Sedona. Nine months ended September 30, 2019 consists of (a) $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem, (b) $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center and (c) $0.6 million of manager termination fees for L’Auberge de Sedona and Orchards Inn Sedona.

(3)

Three and nine months ended September 30, 2020 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 September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Net (loss) income

$

(79,635)

$

11,574

$

(187,714)

$

49,628

Interest expense

10,818

14,184

43,665

38,264

Income tax expense (benefit)

7,205

1,217

(5,853)

1,939

Real estate related depreciation and amortization

28,514

29,474

87,397

87,805

EBITDA

(33,098)

56,449

(62,505)

177,636

Corporate expenses

7,267

6,318

19,650

20,785

Interest and other (income) expense, net

(191)

(102)

58

(510)

Loss on early extinguishment of debt

2,373

2,373

Professional fees and pre-opening costs related to Frenchman’s Reef (1)

593

6,378

418

11,445

Hotel EBITDA

(25,429)

71,416

(42,379)

211,729

Non-cash lease expense and other amortization

1,715

1,750

5,172

5,249

Severance costs (3)

7,367

7,760

Hotel manager transition items (2)

(1,021)

582

(460)

1,050

Hotel Adjusted EBITDA

$

(17,368)

$

73,748

$

(29,907)

$

218,028

 

(1)

Represents pre-opening costs related to the re-opening of Frenchman’s Reef & Morning Star Marriott Beach Resort, as well as legal and professional fees and other costs incurred at Frenchman’s Reef & Morning Star Marriott Beach Resort as a result of Hurricane Irma that are not covered by insurance.

(2)

Three months ended September 30, 2020 consists of manager transition costs of $0.4 million related to The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel. Nine months ended September 30, 2020 consists of manager transition costs of $1.5 million related to the L’Auberge de Sedona, Orchards Inn Sedona, the Westin Boston Waterfront, The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement and $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel.

 Three months ended September 30, 2019 consist of (a) less than $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and manager transition costs related to the Westin Washington, D.C. City Center and (b) $0.6 million of manager termination fees for L’Auberge de Sedona and Orchards Inn Sedona. Nine months ended September 30, 2019 consists of (a) $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem, (b) $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center and (c) $0.6 million of manager termination fees for L’Auberge de Sedona and Orchards Inn Sedona.

(3)

Three and nine months ended September 30, 2020 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 September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Net (loss) income

$

(79,635)

$

11,574

$

(187,714)

$

49,628

Real estate related depreciation and amortization

28,514

29,474

87,397

87,805

FFO

(51,121)

41,048

(100,317)

137,433

Non-cash lease expense and other amortization

1,715

1,750

5,172

5,249

Professional fees and pre-opening costs related to Frenchman’s Reef  (1)

593

6,378

418

11,445

Hotel manager transition items (2)

(1,021)

582

(460)

1,050

Loss on early extinguishment of debt

2,373

2,373

Severance costs (3)

7,367

7,760

Fair value adjustments to interest rate swaps

(983)

3,143

11,329

4,790

Adjusted FFO

$

(43,450)

$

55,274

$

(76,098)

$

162,340

Adjusted FFO per diluted share

$

(0.22)

$

0.27

$

(0.38)

$

0.80

 

(1)

Represents pre-opening costs related to the re-opening of Frenchman’s Reef & Morning Star Marriott Beach Resort, as well as legal and professional fees and other costs incurred at Frenchman’s Reef & Morning Star Marriott Beach Resort as a result of Hurricane Irma that are not covered by insurance.

(2)

Three months ended September 30, 2020 consists of manager transition costs of $0.4 million related to The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel. Nine months ended September 30, 2020 consists of manager transition costs of $1.5 million related to the L’Auberge de Sedona, Orchards Inn Sedona, the Westin Boston Waterfront, The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement and $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel.

Three months ended September 30, 2019 consist of (a) less than $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and manager transition costs related to the Westin Washington, D.C. City Center and (b) $0.6 million of manager termination fees for L’Auberge de Sedona and Orchards Inn Sedona. Nine months ended September 30, 2019 consists of (a) $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem, (b) $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center and (c) $0.6 million of manager termination fees for L’Auberge de Sedona and Orchards Inn Sedona.

(3)

Three and nine months ended September 30, 2020 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 Frenchman’s Reef & Morning Star Marriott Beach Resort due to the closure of the hotel (in thousands):         

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Revenues

$

50,067

$

240,279

$

240,441

$

700,572

Hotel revenues from Frenchman’s Reef & Morning Star
Marriott Beach Resort

(1)

Comparable Revenues

$

50,067

$

240,278

$

240,441

$

700,572

Hotel Adjusted EBITDA

$

(17,368)

$

73,748

$

(29,907)

$

218,028

Hotel Adjusted EBITDA from Frenchman’s Reef & Morning Star Marriott Beach Resort

2

(8,798)

Comparable Hotel Adjusted EBITDA

$

(17,368)

$

73,750

$

(29,907)

$

209,230

Hotel Adjusted EBITDA Margin

(34.69)

%

30.69

%

(12.44)

%

31.12

%

Comparable Hotel Adjusted EBITDA Margin

(34.69)

%

30.69

%

(12.44)

%

29.87

%

 

Selected Quarterly Comparable Operating Information

The following tables are presented to provide investors with selected quarterly comparable operating information.  The operating information excludes Frenchman’s Reef & Morning Star Marriott Beach Resort for all periods.

Quarter 1, 2020

Quarter 2, 2020

Quarter 3, 2020

ADR

$

216.42

$

175.74

$

201.82

Occupancy

59.1

%

8.5

%

18.6

%

RevPAR

$

127.98

$

14.99

$

37.55

Revenues (in thousands)

$

169,995

$

20,379

$

50,067

Hotel Adjusted EBITDA (in thousands)

$

17,819

$

(30,363)

$

(17,368)

Hotel Adjusted EBITDA Margin

10.48

%

(148.99)

%

(34.69)

%

Available Rooms

873,600

873,600

883,200

 

Quarter 1, 2019

Quarter 2, 2019

Quarter 3, 2019

Quarter 4, 2019

Full Year 2019

ADR

$

216.38

$

250.23

$

238.50

$

247.02

$

238.63

Occupancy

73.2

%

83.1

%

82.7

%

77.4

%

79.1

%

RevPAR

$

158.30

$

208.02

$

197.14

$

191.08

$

188.75

Revenues (in thousands)

$

202,375

$

257,918

$

240,279

$

237,519

$

938,091

Hotel Adjusted EBITDA (in thousands)

$

47,127

$

88,353

$

73,750

$

69,415

$

278,645

% of full Year

16.91

%

31.71

%

26.47

%

24.91

%

100.0

%

Hotel Adjusted EBITDA Margin

23.29

%

34.26

%

30.69

%

29.23

%

29.70

%

Available Rooms

863,264

873,145

883,200

883,200

3,502,809

 

Market Capitalization as of September 30, 2020

(in thousands)

Enterprise Value

Common equity capitalization (at September 30, 2020 closing price of $5.07/share)

1,021,861

Consolidated debt (face amount)

1,104,445

Cash and cash equivalents

(110,555)

Total enterprise value

$

2,015,751

Share Reconciliation

Common shares outstanding

199,519

Unvested restricted stock held by management and employees

573

Share grants under deferred compensation plan

1,458

Combined shares outstanding

201,550

 

Debt Summary as of September 30, 2020

(dollars in thousands)

Loan

Interest Rate as of

September 30, 2020

Term

Outstanding
Principal

Maturity

Salt Lake City Marriott Downtown at City Creek

LIBOR + 3.25 (1)

Variable

47,700

January 2022 (2)

Westin Washington D.C. City Center

3.99%

Fixed

58,860

January 2023

The Lodge at Sonoma Renaissance Resort & Spa

3.96%

Fixed

26,502

April 2023

Westin San Diego Downtown

3.94%

Fixed

60,668

April 2023

Courtyard New York Manhattan / Midtown East

4.40%

Fixed

79,940

August 2024

Worthington Renaissance Fort Worth Hotel

3.66%

Fixed

79,647

May 2025

JW Marriott Denver Cherry Creek

4.33%

Fixed

60,361

July 2025

Westin Boston Waterfront

4.36%

Fixed

187,839

November 2025

New Market Tax Credit loan (3)

5.17%

Fixed

2,943

December 2020

     Unamortized debt issuance costs

(2,745)

Total mortgage and other debt, net of unamortized debt issuance costs

601,715

Unsecured term loan

LIBOR + 2.35% (4)

Variable

350,000

July 2024

Unsecured term loan

LIBOR + 2.35% (5)

Fixed

50,000

October 2023

     Unamortized debt issuance costs

(1,557)

Unsecured term loans, net of unamortized debt issuance costs

398,443

Senior unsecured credit facility

LIBOR + 2.40% (6)

Variable

99,985

July 2023 (7)

Total debt, net of unamortized debt issuance costs

$

1,100,143

Weighted-average interest rate of fixed rate debt

4.23

%

Total weighted-average interest rate

3.84

%

(1)

LIBOR is subject to a floor of 1.0%.

(2)

The loan may be extended for an additional year upon satisfaction of certain conditions.

(3)

Assumed in connection with the acquisition of the Hotel Palomar Phoenix in March 2018.

(4)

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.  Effective June 9, 2020, LIBOR is subject to a floor of 0.25%.

(5)

The Company entered into an interest rate swap agreement in January 2019 to fix LIBOR at 2.41% through October 2023.

(6)

Effective June 9, 2020, LIBOR is subject to a floor of 0.25%.

(7)

May be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.

 

Operating Statistics – July

Number
of Rooms

ADR

Occupancy

RevPAR

July 2020

July 2019

B/(W) 2019

July 2020

July 2019

B/(W) 2019

July 2020

July 2019

B/(W) 2019

Atlanta Marriott Alpharetta

318

$

93.92

$

162.46

(42.2)

%

15.6

%

73.9

%

(58.3)

%

$

14.63

$

120.04

(87.8)

%

Barbary Beach House Key West

184

$

222.62

$

220.45

1.0

%

36.0

%

87.1

%

(51.1)

%

$

80.13

$

192.08

(58.3)

%

Bethesda Marriott Suites

272

$

110.20

$

152.91

(27.9)

%

15.6

%

73.1

%

(57.5)

%

$

17.24

$

111.78

(84.6)

%

Cavallo Point, The Lodge at the Golden Gate

142

$

444.98

$

486.46

(8.5)

%

16.7

%

63.1

%

(46.4)

%

$

74.30

$

307.10

(75.8)

%

Courtyard Denver Downtown

177

$

108.13

$

208.67

(48.2)

%

24.7

%

89.3

%

(64.6)

%

$

26.72

$

186.38

(85.7)

%

Courtyard New York Manhattan/Midtown East

321

$

144.64

$

244.62

(40.9)

%

56.1

%

97.2

%

(41.1)

%

$

81.12

$

237.84

(65.9)

%

Havana Cabana Key West

106

$

186.78

$

191.71

(2.6)

%

60.6

%

93.0

%

(32.4)

%

$

113.11

$

178.24

(36.5)

%

Hotel Emblem San Francisco

96

$

136.90

$

205.59

(33.4)

%

11.3

%

90.8

%

(79.5)

%

$

15.46

$

186.66

(91.7)

%

Hotel Palomar Phoenix

242

$

119.36

$

131.36

(9.1)

%

21.0

%

67.0

%

(46.0)

%

$

25.06

$

88.08

(71.5)

%

JW Marriott Denver Cherry Creek

199

$

200.79

$

256.67

(21.8)

%

31.2

%

84.6

%

(53.4)

%

$

62.66

$

217.18

(71.1)

%

Kimpton Shorebreak Resort

157

$

284.70

$

335.66

(15.2)

%

48.5

%

85.5

%

(37.0)

%

$

138.17

$

286.83

(51.8)

%

L’Auberge de Sedona

88

$

552.85

$

484.63

14.1

%

68.3

%

68.8

%

(0.5)

%

$

377.35

$

333.45

13.2

%

Orchards Inn Sedona

70

$

165.55

$

186.63

(11.3)

%

61.8

%

75.3

%

(13.5)

%

$

102.38

$

140.53

(27.1)

%

Renaissance Charleston Historic District Hotel

166

$

163.95

$

227.40

(27.9)

%

37.1

%

85.5

%

(48.4)

%

$

60.79

$

194.39

(68.7)

%

Salt Lake City Marriott Downtown at City Creek

510

$

119.42

$

176.13

(32.2)

%

10.2

%

77.8

%

(67.6)

%

$

12.18

$

137.03

(91.1)

%

The Gwen Hotel

311

$

200.27

$

270.72

(26.0)

%

22.9

%

90.0

%

(67.1)

%

$

45.84

$

243.63

(81.2)

%

The Landing Lake Tahoe Resort & Spa

82

$

519.03

$

426.86

21.6

%

80.3

%

86.3

%

(6.0)

%

$

416.53

$

368.42

13.1

%

The Lodge at Sonoma Renaissance Resort & Spa

182

$

248.77

$

343.50

(27.6)

%

45.7

%

81.3

%

(35.6)

%

$

113.71

$

279.33

(59.3)

%

Vail Marriott Mountain Resort

344

$

216.06

$

220.87

(2.2)

%

34.9

%

76.3

%

(41.4)

%

$

75.39

$

168.57

(55.3)

%

Westin Fort Lauderdale Beach Resort

433

$

141.08

$

146.19

(3.5)

%

26.0

%

80.2

%

(54.2)

%

$

36.74

$

117.31

(68.7)

%

Westin San Diego Downtown

436

$

145.28

$

205.24

(29.2)

%

17.2

%

89.5

%

(72.3)

%

$

24.94

$

183.74

(86.4)

%

Westin Washington D.C. City Center

410

$

120.95

$

178.39

(32.2)

%

5.7

%

91.1

%

(85.4)

%

$

6.94

$

162.54

(95.7)

%

Worthington Renaissance Fort Worth Hotel

504

$

146.84

$

175.26

(16.2)

%

9.2

%

64.0

%

(54.8)

%

$

13.45

$

112.15

(88.0)

%

Total Open for Entire Period – 23 Hotels

5,750

$

206.98

$

217.88

(5.0)

%

25.8

%

80.9

%

(55.1)

%

$

53.43

$

176.25

(69.7)

%

Total Partially Open During Period – 2 Hotels

661

$

167.77

$

297.78

(43.7)

%

3.6

%

92.6

%

(89.0)

%

$

6.10

$

275.66

(97.8)

%

Total Closed for Entire Period – 5 Hotels

3,189

$

$

228.51

(100.0)

%

%

86.0

%

(86.0)

%

$

$

196.41

(100.0)

%

Resorts – 12 Hotels

2,212

$

262.78

$

255.45

2.9

%

36.1

%

81.7

%

(45.6)

%

$

94.88

$

208.75

(54.5)

%

Portfolio Total (1)

9,600

$

206.29

$

227.63

(9.4)

%

15.7

%

83.4

%

(67.7)

%

$

32.41

$

189.79

(82.9)

%

 

(1)

Amounts exclude the operating results of Frenchman’s Reef & Morning Star Marriott Beach Resort for all periods presented.

 

Operating Statistics – August

Number
of Rooms

ADR

Occupancy

RevPAR

August
2020

August

2019

B/(W) 2019

August 2020

August 2019

B/(W) 2019

August
2020

August
2019

B/(W) 2019

Atlanta Marriott Alpharetta

318

$

94.35

$

161.59

(41.6)

%

12.3

%

71.7

%

(59.4)

%

$

11.63

$

115.81

(90.0)

%

Barbary Beach House Key West

184

$

181.40

$

199.25

(9.0)

%

35.0

%

70.4

%

(35.4)

%

$

63.41

$

140.18

(54.8)

%

Bethesda Marriott Suites

272

$

102.62

$

149.39

(31.3)

%

20.4

%

66.1

%

(45.7)

%

$

20.97

$

98.72

(78.8)

%

Cavallo Point, The Lodge at the Golden Gate

142

$

489.25

$

457.46

6.9

%

26.5

%

70.7

%

(44.2)

%

$

129.48

$

323.51

(60.0)

%

Courtyard Denver Downtown

177

$

103.06

$

219.37

(53.0)

%

28.7

%

84.3

%

(55.6)

%

$

29.60

$

184.87

(84.0)

%

Courtyard New York Manhattan/Midtown East

321

$

122.13

$

241.09

(49.3)

%

27.9

%

98.8

%

(70.9)

%

$

34.10

$

238.13

(85.7)

%

Havana Cabana Key West

106

$

142.09

$

176.93

(19.7)

%

71.9

%

86.7

%

(14.8)

%

$

102.22

$

153.35

(33.3)

%

Hilton Boston Downtown/Faneuil Hall

403

$

136.22

$

306.70

(55.6)

%

17.5

%

91.7

%

(74.2)

%

$

23.84

$

281.12

(91.5)

%

Hilton Burlington Lake Champlain

258

$

175.06

$

253.47

(30.9)

%

28.5

%

92.7

%

(64.2)

%

$

49.97

$

235.05

(78.7)

%

Hotel Emblem San Francisco

96

$

142.37

$

253.93

(43.9)

%

14.9

%

93.9

%

(79.0)

%

$

21.14

$

238.49

(91.1)

%

Hotel Palomar Phoenix

242

$

113.72

$

124.88

(8.9)

%

26.2

%

75.7

%

(49.5)

%

$

29.80

$

94.52

(68.5)

%

JW Marriott Denver Cherry Creek

199

$

202.38

$

262.08

(22.8)

%

39.4

%

87.1

%

(47.7)

%

$

79.82

$

228.26

(65.0)

%

Kimpton Shorebreak Resort

157

$

289.23

$

313.84

(7.8)

%

56.4

%

80.6

%

(24.2)

%

$

163.01

$

252.84

(35.5)

%

L’Auberge de Sedona

88

$

523.87

$

478.33

9.5

%

80.2

%

71.8

%

8.4

%

$

419.98

$

343.67

22.2

%

Orchards Inn Sedona

70

$

174.43

$

188.47

(7.4)

%

56.1

%

69.5

%

(13.4)

%

$

97.82

$

130.97

(25.3)

%

Renaissance Charleston Historic District Hotel

166

$

172.70

$

235.20

(26.6)

%

38.6

%

86.2

%

(47.6)

%

$

66.72

$

202.66

(67.1)

%

Salt Lake City Marriott Downtown at City Creek

510

$

125.39

$

168.07

(25.4)

%

11.5

%

76.1

%

(64.6)

%

$

14.42

$

127.98

(88.7)

%

The Gwen Hotel

311

$

191.55

$

273.02

(29.8)

%

15.2

%

93.1

%

(77.9)

%

$

29.21

$

254.10

(88.5)

%

The Landing Lake Tahoe Resort & Spa

82

$

506.70

$

393.55

28.8

%

85.1

%

86.6

%

(1.5)

%

$

430.95

$

340.92

26.4

%

The Lodge at Sonoma Renaissance Resort & Spa

182

$

246.17

$

349.13

(29.5)

%

42.8

%

80.0

%

(37.2)

%

$

105.24

$

279.45

(62.3)

%

Vail Marriott Mountain Resort

344

$

217.30

$

225.07

(3.5)

%

38.7

%

70.3

%

(31.6)

%

$

84.16

$

158.16

(46.8)

%

Westin Fort Lauderdale Beach Resort

433

$

128.52

$

134.69

(4.6)

%

32.6

%

68.5

%

(35.9)

%

$

41.91

$

92.26

(54.6)

%

Westin San Diego Downtown

436

$

140.96

$

181.40

(22.3)

%

24.8

%

85.6

%

(60.8)

%

$

34.91

$

155.20

(77.5)

%

Westin Washington D.C. City Center

410

$

122.37

$

145.02

(15.6)

%

10.9

%

92.0

%

(81.1)

%

$

13.35

$

133.35

(90.0)

%

Worthington Renaissance Fort Worth Hotel

504

$

131.77

$

167.32

(21.2)

%

20.3

%

68.6

%

(48.3)

%

$

26.76

$

114.76

(76.7)

%

Total Open for Entire Period – 25 Hotels

6,411

$

197.12

$

220.19

(10.5)

%

27.4

%

80.5

%

(53.1)

%

$

54.09

$

177.25

(69.5)

%

Total Closed for Entire Period – 5 Hotels

3,189

$

$

230.10

(100.0)

%

%

87.7

%

(87.7)

%

$

$

201.78

(100.0)

%

Resorts – 12 Hotels

2,212

$

251.92

$

256.01

(1.6)

%

42.3

%

76.7

%

(34.4)

%

$

106.62

$

196.45

(45.7)

%

Portfolio Total (1)

9,600

$

197.17

$

223.67

(11.8)

%

18.3

%

82.9

%

(64.6)

%

$

36.13

$

185.40

(80.5)

%

 

(1)

Amounts exclude the operating results of Frenchman’s Reef & Morning Star Marriott Beach Resort for all periods presented.

 

Operating Statistics – September

Number
of Rooms

ADR

Occupancy

RevPAR

September 2020

September 2019

B/(W) 2019

September 2020

September 2019

B/(W) 2019

September 2020

September 2019

B/(W) 2019

Atlanta Marriott Alpharetta

318

$

103.77

$

167.43

(38.0)

%

11.9

%

73.2

%

(61.3)

%

$

12.38

$

122.49

(89.9)

%

Barbary Beach House Key West

184

$

176.62

$

170.36

3.7

%

29.7

%

25.6

%

4.1

%

$

52.51

$

43.55

20.6

%

Bethesda Marriott Suites

272

$

101.38

$

201.33

(49.6)

%

21.1

%

72.0

%

(50.9)

%

$

21.38

$

144.95

(85.3)

%

Cavallo Point, The Lodge at the Golden Gate

142

$

560.76

$

465.89

20.4

%

35.2

%

70.6

%

(35.4)

%

$

197.58

$

328.86

(39.9)

%

Chicago Marriott Downtown Magnificent Mile

1,200

$

159.09

$

272.68

(41.7)

%

5.6

%

85.5

%

(79.9)

%

$

8.88

$

233.19

(96.2)

%

Courtyard Denver Downtown

177

$

105.75

$

228.07

(53.6)

%

34.0

%

84.2

%

(50.2)

%

$

35.99

$

191.99

(81.3)

%

Courtyard New York Manhattan/Midtown East

321

$

121.87

$

315.86

(61.4)

%

32.2

%

96.3

%

(64.1)

%

$

39.19

$

304.15

(87.1)

%

Havana Cabana Key West

106

$

135.51

$

135.65

(0.1)

%

74.7

%

77.8

%

(3.1)

%

$

101.30

$

105.49

(4.0)

%

Hilton Boston Downtown/Faneuil Hall

403

$

142.47

$

385.01

(63.0)

%

19.0

%

94.2

%

(75.2)

%

$

27.01

$

362.59

(92.6)

%

Hilton Burlington Lake Champlain

258

$

179.05

$

239.09

(25.1)

%

30.6

%

84.1

%

(53.5)

%

$

54.71

$

201.00

(72.8)

%

Hotel Emblem San Francisco

96

$

143.64

$

282.77

(49.2)

%

16.8

%

90.2

%

(73.4)

%

$

24.19

$

255.18

(90.5)

%

Hotel Palomar Phoenix

242

$

120.48

$

173.31

(30.5)

%

39.6

%

77.5

%

(37.9)

%

$

47.74

$

134.23

(64.4)

%

JW Marriott Denver Cherry Creek

199

$

208.25

$

267.46

(22.1)

%

47.9

%

86.1

%

(38.2)

%

$

99.80

$

230.32

(56.7)

%

Kimpton Shorebreak Resort

157

$

297.92

$

266.43

11.8

%

55.6

%

79.3

%

(23.7)

%

$

165.79

$

211.22

(21.5)

%

L’Auberge de Sedona

88

$

737.92

$

636.01

16.0

%

81.4

%

74.5

%

6.9

%

$

600.40

$

473.63

26.8

%

Orchards Inn Sedona

70

$

254.04

$

244.47

3.9

%

60.5

%

78.4

%

(17.9)

%

$

153.63

$

191.62

(19.8)

%

Renaissance Charleston Historic District Hotel

166

$

181.95

$

262.76

(30.8)

%

58.3

%

61.4

%

(3.1)

%

$

106.07

$

161.30

(34.2)

%

Salt Lake City Marriott Downtown at City Creek

510

$

121.61

$

194.57

(37.5)

%

17.2

%

74.4

%

(57.2)

%

$

20.86

$

144.76

(85.6)

%

The Gwen Hotel

311

$

195.31

$

298.63

(34.6)

%

24.3

%

90.9

%

(66.6)

%

$

47.39

$

271.59

(82.6)

%

The Landing Lake Tahoe Resort & Spa

82

$

448.50

$

307.08

46.1

%

69.9

%

86.3

%

(16.4)

%

$

313.40

$

265.01

18.3

%

The Lodge at Sonoma Renaissance Resort & Spa

182

$

249.97

$

355.67

(29.7)

%

42.3

%

90.2

%

(47.9)

%

$

105.80

$

320.89

(67.0)

%

Vail Marriott Mountain Resort

344

$

223.43

$

187.25

19.3

%

39.2

%

64.5

%

(25.3)

%

$

87.68

$

120.70

(27.4)

%

Westin Fort Lauderdale Beach Resort

433

$

141.06

$

152.48

(7.5)

%

30.0

%

59.7

%

(29.7)

%

$

42.28

$

91.02

(53.5)

%

Westin San Diego Downtown

436

$

147.81

$

191.24

(22.7)

%

27.2

%

82.8

%

(55.6)

%

$

40.19

$

158.33

(74.6)

%

Westin Washington D.C. City Center

410

$

123.46

$

214.99

(42.6)

%

10.3

%

88.9

%

(78.6)

%

$

12.77

$

191.08

(93.3)

%

Worthington Renaissance Fort Worth Hotel

504

$

148.80

$

189.59

(21.5)

%

22.9

%

76.1

%

(53.2)

%

$

34.07

$

144.20

(76.4)

%

Total Open for Entire Period – 26 Hotels

7,611

$

205.34

$

251.10

(18.2)

%

26.4

%

79.1

%

(52.7)

%

$

54.20

$

198.52

(72.7)

%

Total Partially Open During Period – 1 Hotel

793

$

141.34

$

291.30

(51.5)

%

11.6

%

86.7

%

(75.1)

%

$

16.46

$

252.45

(93.5)

%

Total Closed for Entire Period – 3 Hotels

1,196

$

$

326.45

(100.0)

%

%

94.9

%

(94.9)

%

$

$

309.96

(100.0)

%

Resorts – 12 Hotels

2,212

$

274.19

$

261.08

5.0

%

43.4

%

68.2

%

(24.8)

%

$

119.00

$

178.05

(33.2)

%

Portfolio Total (1)

9,600

$

202.53

$

265.54

(23.7)

%

21.9

%

81.7

%

(59.8)

%

$

44.33

$

216.86

(79.6)

%

 

(1) 

Amounts exclude the operating results of Frenchman’s Reef & Morning Star Marriott Beach Resort for all periods presented.

 

     

Operating Statistics – Third Quarter

Number
of Rooms

ADR

Occupancy

RevPAR

3Q 2020

3Q 2019

B/(W) 2019

3Q 2020

3Q 2019

B/(W) 2019

3Q 2020

3Q 2019

B/(W) 2019

Atlanta Marriott Alpharetta

318

$

96.94

$

163.80

(40.8)

%

13.3

%

72.9

%

(59.6)

%

$

12.89

$

119.41

(89.2)

%

Barbary Beach House Key West

184

$

194.90

$

205.47

(5.1)

%

33.6

%

61.4

%

(27.8)

%

$

65.49

$

126.16

(48.1)

%

Bethesda Marriott Suites

272

$

104.27

$

167.95

(37.9)

%

19.0

%

70.4

%

(51.4)

%

$

19.85

$

118.20

(83.2)

%

Cavallo Point, The Lodge at the Golden Gate

142

$

511.24

$

469.36

8.9

%

26.0

%

68.1

%

(42.1)

%

$

133.09

$

319.72

(58.4)

%

Courtyard Denver Downtown

177

$

105.53

$

218.40

(51.7)

%

29.1

%

85.9

%

(56.8)

%

$

30.71

$

187.70

(83.6)

%

Courtyard New York Manhattan/Midtown East

321

$

133.02

$

266.37

(50.1)

%

38.8

%

97.4

%

(58.6)

%

$

51.60

$

259.56

(80.1)

%

Havana Cabana Key West

106

$

152.98

$

170.13

(10.1)

%

69.0

%

85.9

%

(16.9)

%

$

105.59

$

146.13

(27.7)

%

Hotel Emblem San Francisco

96

$

141.40

$

247.06

(42.8)

%

14.3

%

91.7

%

(77.4)

%

$

20.22

$

226.47

(91.1)

%

Hotel Palomar Phoenix

242

$

118.13

$

143.55

(17.7)

%

28.8

%

73.4

%

(44.6)

%

$

34.05

$

105.30

(67.7)

%

JW Marriott Denver Cherry Creek

199

$

204.28

$

262.04

(22.0)

%

39.4

%

85.9

%

(46.5)

%

$

80.55

$

225.20

(64.2)

%

Kimpton Shorebreak Resort

157

$

290.80

$

306.54

(5.1)

%

53.5

%

81.8

%

(28.3)

%

$

155.54

$

250.72

(38.0)

%

L’Auberge de Sedona

88

$

606.77

$

533.79

13.7

%

76.5

%

71.7

%

4.8

%

$

464.45

$

382.61

21.4

%

Orchards Inn Sedona

70

$

197.72

$

207.09

(4.5)

%

59.5

%

74.3

%

(14.8)

%

$

117.56

$

153.97

(23.6)

%

Renaissance Charleston Historic District Hotel

166

$

174.20

$

239.40

(27.2)

%

44.5

%

77.9

%

(33.4)

%

$

77.55

$

186.38

(58.4)

%

Salt Lake City Marriott Downtown at City Creek

510

$

122.16

$

179.29

(31.9)

%

12.9

%

76.1

%

(63.2)

%

$

15.76

$

136.50

(88.5)

%

The Gwen Hotel

311

$

196.22

$

280.57

(30.1)

%

20.8

%

91.3

%

(70.5)

%

$

40.74

$

256.27

(84.1)

%

The Landing Lake Tahoe Resort & Spa

82

$

494.05

$

376.60

31.2

%

78.5

%

86.4

%

(7.9)

%

$

387.76

$

325.43

19.2

%

The Lodge at Sonoma Renaissance Resort & Spa

182

$

248.29

$

349.59

(29.0)

%

43.6

%

83.8

%

(40.2)

%

$

108.28

$

292.92

(63.0)

%

Vail Marriott Mountain Resort

344

$

219.00

$

212.25

3.2

%

37.6

%

70.4

%

(32.8)

%

$

82.35

$

149.45

(44.9)

%

Westin Fort Lauderdale Beach Resort

433

$

136.40

$

144.14

(5.4)

%

29.5

%

69.6

%

(40.1)

%

$

40.29

$

100.29

(59.8)

%

Westin San Diego Downtown

436

$

144.69

$

192.85

(25.0)

%

23.0

%

86.0

%

(63.0)

%

$

33.27

$

165.84

(79.9)

%

Westin Washington D.C. City Center

410

$

122.48

$

178.69

(31.5)

%

9.0

%

90.7

%

(81.7)

%

$

11.00

$

162.01

(93.2)

%

Worthington Renaissance Fort Worth Hotel

504

$

141.75

$

177.73

(20.2)

%

17.4

%

69.5

%

(52.1)

%

$

24.66

$

123.48

(80.0)

%

Total Open for Entire Period – 23 Hotels

5,750

$

206.32

$

221.13

(6.7)

%

28.3

%

78.9

%

(50.6)

%

$

58.38

$

174.38

(66.5)

%

Total Partially Open During Period – 4 Hotels

2,654

$

155.86

$

263.43

(40.8)

%

6.0

%

85.4

%

(79.4)

%

$

9.35

$

224.87

(95.8)

%

Total Closed for Entire Period – 3 Hotels

1,196

$

$

258.16

(100.0)

%

%

94.9

%

(94.9)

%

$

$

245.02

(100.0)

%

Resorts – 12 Hotels

2,212

$

262.94

$

257.29

2.2

%

40.6

%

75.6

%

(35.0)

%

$

106.70

$

194.59

(45.2)

%

Portfolio Total (1)

9,600

$

201.82

$

238.50

(15.4)

%

18.6

%

82.7

%

(64.1)

%

$

37.55

$

197.14

(81.0)

%

 

(1)

Amounts exclude the operating results of Frenchman’s Reef & Morning Star Marriott Beach Resort for all periods presented.

 

Operating Statistics – Year to Date

Number
of Rooms

ADR

Occupancy

RevPAR

YTD 2020

YTD 2019

B/(W) 2019

YTD 2020

YTD 2019

B/(W) 2019

YTD 2020

YTD 2019

B/(W) 2019

Atlanta Marriott Alpharetta

318

$

154.29

$

166.97

(7.6)

%

23.8

%

72.7

%

(48.9)

%

$

36.70

$

121.42

(69.8)

%

Bethesda Marriott Suites

272

$

150.98

$

176.98

(14.7)

%

23.6

%

73.0

%

(49.4)

%

$

35.60

$

129.23

(72.5)

%

Courtyard New York Manhattan/Midtown East

321

$

150.19

$

244.82

(38.7)

%

63.7

%

95.6

%

(31.9)

%

$

95.61

$

234.03

(59.1)

%

Kimpton Shorebreak Resort

157

$

237.64

$

268.57

(11.5)

%

54.6

%

78.7

%

(24.1)

%

$

129.77

$

211.27

(38.6)

%

L’Auberge de Sedona

88

$

585.16

$

596.05

(1.8)

%

59.1

%

78.6

%

(19.5)

%

$

345.92

$

468.42

(26.2)

%

Salt Lake City Marriott Downtown at City Creek

510

$

158.91

$

173.43

(8.4)

%

22.9

%

69.4

%

(46.5)

%

$

36.39

$

120.42

(69.8)

%

Westin Fort Lauderdale Beach Resort

433

$

224.57

$

204.38

9.9

%

42.8

%

81.8

%

(39.0)

%

$

96.09

$

167.26

(42.6)

%

Westin San Diego Downtown

436

$

175.26

$

194.30

(9.8)

%

39.2

%

82.0

%

(42.8)

%

$

68.65

$

159.39

(56.9)

%

Westin Washington D.C. City Center

410

$

182.86

$

206.84

(11.6)

%

23.6

%

86.9

%

(63.3)

%

$

43.20

$

179.77

(76.0)

%

Worthington Renaissance Fort Worth Hotel

504

$

177.91

$

186.24

(4.5)

%

28.7

%

75.4

%

(46.7)

%

$

51.10

$

140.50

(63.6)

%

Total Open for Entire Period – 10 Hotels

3,449

$

197.62

$

209.05

(5.5)

%

34.7

%

79.2

%

(44.5)

%

$

68.55

$

165.59

(58.6)

%

Total Partially Open During Period – 20 Hotels

6,151

$

218.13

$

250.81

(13.0)

%

25.4

%

79.9

%

(54.5)

%

$

55.35

$

200.52

(72.4)

%

Resorts – 12 Hotels

2,212

$

283.93

$

272.92

4.0

%

38.9

%

77.0

%

(38.1)

%

$

110.53

$

210.13

(47.4)

%

Portfolio Total (1)

9,600

$

209.23

$

235.89

(11.3)

%

28.7

%

79.7

%

(51.0)

%

$

60.09

$

187.96

(68.0)

%

 

(1)

Amounts exclude the operating results of Frenchman’s Reef & Morning Star Marriott Beach Resort for all periods presented.

 

 

Hotel Adjusted EBITDA Reconciliation

Third Quarter 2020

Plus:

Plus:

Plus:

Equals:

Days of Operation

Total Revenues

Net Income / (Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted EBITDA

Atlanta Marriott Alpharetta

92

$

434

$

(958)

$

357

$

$

$

(601)

Barbary Beach House Key West

92

$

1,586

$

(924)

$

669

$

$

$

(255)

Bethesda Marriott Suites

92

$

577

$

(2,735)

$

522

$

$

1,502

$

(711)

Cavallo Point, The Lodge at the Golden Gate

92

$

3,565

$

(1,755)

$

1,841

$

$

94

$

180

Chicago Marriott Downtown Magnificent Mile

30

$

615

$

(8,789)

$

4,155

$

62

$

(397)

$

(4,969)

Courtyard Denver Downtown

92

$

674

$

(452)

$

373

$

$

$

(79)

Courtyard New York Manhattan/Fifth Avenue

$

52

$

(2,108)

$

331

$

$

253

$

(1,524)

Courtyard New York Manhattan/Midtown East

92

$

1,551

$

(2,680)

$

488

$

952

$

$

(1,240)

Frenchman’s Reef & Morning Star Marriott Beach Resort

$

$

$

$

$

$

Havana Cabana Key West

92

$

1,668

$

77

$

274

$

$

$

351

Hilton Boston Downtown/Faneuil Hall

62

$

1,070

$

(1,840)

$

1,239

$

$

$

(601)

Hilton Burlington Lake Champlain

77

$

1,135

$

(680)

$

627

$

$

$

(53)

Hilton Garden Inn New York/Times Square Central

$

55

$

(2,103)

$

846

$

$

$

(1,257)

Hotel Emblem San Francisco

92

$

220

$

(642)

$

386

$

$

$

(256)

Hotel Palomar Phoenix

92

$

1,192

$

(1,298)

$

672

$

39

$

286

$

(301)

JW Marriott Denver Cherry Creek

92

$

2,382

$

(1,655)

$

782

$

679

$

6

$

(188)

Kimpton Shorebreak Resort

92

$

3,265

$

687

$

411

$

$

$

1,098

L’Auberge de Sedona

92

$

5,461

$

1,476

$

640

$

$

$

2,116

Orchards Inn Sedona

92

$

1,046

$

(16)

$

80

$

$

42

$

106

Renaissance Charleston Historic District Hotel

92

$

1,409

$

(495)

$

432

$

$

(21)

$

(84)

Salt Lake City Marriott Downtown at City Creek

92

$

1,038

$

(1,826)

$

552

$

538

$

$

(736)

The Gwen Hotel

92

$

1,867

$

(1,830)

$

1,104

$

$

$

(726)

The Landing Lake Tahoe Resort & Spa

92

$

4,217

$

1,730

$

416

$

$

$

2,146

The Lexington Hotel

$

153

$

(5,235)

$

2,445

$

6

$

8

$

(2,776)

The Lodge at Sonoma Renaissance Resort & Spa

92

$

2,329

$

(1,421)

$

478

$

274

$

$

(669)

Vail Marriott Mountain Resort

92

$

3,851

$

(601)

$

1,117

$

$

$

516

Westin Boston Waterfront

28

$

877

$

(7,859)

$

2,593

$

2,140

$

(60)

$

(3,186)

Westin Fort Lauderdale Beach Resort

92

$

4,003

$

(1,966)

$

1,118

$

$

$

(848)

Westin San Diego Downtown

92

$

1,600

$

(2,444)

$

1,124

$

621

$

$

(699)

Westin Washington D.C. City Center

92

$

486

$

(3,290)

$

1,316

$

640

$

$

(1,334)

Worthington Renaissance Fort Worth Hotel

92

$

1,689

$

(2,685)

$

1,126

$

769

$

2

$

(788)

Total

$

50,067

$

(54,317)

$

28,514

$

6,720

$

1,715

$

(17,368)

Less: Frenchman’s Reef & Morning Star Marriott Beach Resort

$

$

$

$

$

$

Comparable Total

$

50,067

$

(54,317)

$

28,514

$

6,720

$

1,715

$

(17,368)

 

(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.

 

 

 

Hotel Adjusted EBITDA Reconciliation

Third Quarter 2019

Plus:

Plus:

Plus:

Equals:

Total Revenues

Net Income / (Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted EBITDA

Atlanta Marriott Alpharetta

$

4,787

$

1,123

$

455

$

$

$

1,578

Barbary Beach House Key West

$

2,666

$

(55)

$

351

$

$

$

296

Bethesda Marriott Suites

$

3,880

$

(1,078)

$

471

$

$

1,514

$

907

Cavallo Point, The Lodge at the Golden Gate

$

10,633

$

1,327

$

1,828

$

$

79

$

3,234

Chicago Marriott Downtown Magnificent Mile

$

32,503

$

6,887

$

4,166

$

(8)

$

(397)

$

10,648

Courtyard Denver Downtown

$

3,344

$

1,393

$

298

$

$

$

1,691

Courtyard New York Manhattan/Fifth Avenue

$

4,191

$

103

$

449

$

$

253

$

805

Courtyard New York Manhattan/Midtown East

$

7,909

$

570

$

697

$

970

$

$

2,237

Frenchman’s Reef & Morning Star Marriott Beach Resort

$

1

$

(2)

$

$

$

$

(2)

Havana Cabana Key West

$

1,996

$

87

$

260

$

$

$

347

Hilton Boston Downtown/Faneuil Hall

$

12,504

$

4,271

$

1,231

$

$

$

5,502

Hilton Burlington Lake Champlain

$

6,121

$

2,451

$

486

$

$

$

2,937

Hilton Garden Inn New York/Times Square Central

$

6,508

$

944

$

838

$

$

$

1,782

Hotel Emblem San Francisco

$

2,305

$

399

$

297

$

$

$

696

Hotel Palomar Phoenix

$

4,325

$

(424)

$

662

$

39

$

293

$

570

JW Marriott Denver Cherry Creek

$

5,907

$

269

$

746

$

692

$

6

$

1,713

Kimpton Shorebreak Resort

$

5,281

$

1,808

$

348

$

$

40

$

2,196

L’Auberge de Sedona

$

5,636

$

727

$

508

$

$

$

1,235

Orchards Inn Sedona

$

1,598

$

(11)

$

238

$

$

42

$

269

Renaissance Charleston Historic District Hotel

$

3,398

$

642

$

421

$

$

(32)

$

1,031

Salt Lake City Marriott Downtown at City Creek

$

8,849

$

2,368

$

575

$

608

$

$

3,551

The Gwen Hotel

$

10,771

$

3,256

$

1,077

$

$

$

4,333

The Landing Lake Tahoe Resort & Spa

$

4,060

$

1,086

$

418

$

$

$

1,504

The Lexington Hotel

$

18,337

$

1,319

$

3,607

$

6

$

8

$

4,940

The Lodge at Sonoma Renaissance Resort & Spa

$

7,549

$

2,070

$

508

$

281

$

$

2,859

Vail Marriott Mountain Resort

$

8,109

$

1,140

$

1,011

$

$

$

2,151

Westin Boston Waterfront

$

24,009

$

2,413

$

2,418

$

2,182

$

(60)

$

6,953

Westin Fort Lauderdale Beach Resort

$

8,131

$

(949)

$

1,675

$

$

$

726

Westin San Diego Downtown

$

8,654

$

1,439

$

1,135

$

637

$

$

3,211

Westin Washington D.C. City Center

$

7,829

$

280

$

1,310

$

663

$

$

2,253

Worthington Renaissance Fort Worth Hotel

$

8,488

$

(132)

$

990

$

784

$

2

$

1,644

Total

$

240,279

$

35,721

$

29,474

$

6,854

$

1,748

$

73,748

Less: Frenchman’s Reef & Morning Star Marriott Beach Resort

$

(1)

$

2

$

$

$

$

2

Comparable Total

$

240,278

$

35,723

$

29,474

$

6,854

$

1,748

$

73,750

 

(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.

 

Hotel Adjusted EBITDA Reconciliation

Year to Date 2020

Plus:

Plus:

Plus:

Equals:

Days of Operation

Total Revenues

Net Income / (Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted EBITDA

Atlanta Marriott Alpharetta

274

$

4,693

$

(1,183)

$

1,091

$

$

$

(92)

Barbary Beach House Key West

204

$

7,510

$

(1,008)

$

2,026

$

$

$

1,018

Bethesda Marriott Suites

274

$

3,555

$

(7,790)

$

1,728

$

$

4,522

$

(1,540)

Cavallo Point, The Lodge at the Golden Gate

175

$

11,417

$

(5,762)

$

5,547

$

$

281

$

66

Chicago Marriott Downtown Magnificent Mile

130

$

14,459

$

(25,975)

$

12,559

$

170

$

(1,192)

$

(14,438)

Courtyard Denver Downtown

201

$

2,338

$

(1,167)

$

1,092

$

$

$

(75)

Courtyard New York Manhattan/Fifth Avenue

86

$

2,377

$

(5,638)

$

1,111

$

$

760

$

(3,767)

Courtyard New York Manhattan/Midtown East

274

$

8,670

$

(6,610)

$

1,779

$

2,875

$

$

(1,956)

Frenchman’s Reef & Morning Star Marriott Beach Resort

$

$

$

$

$

$

Havana Cabana Key West

204

$

4,832

$

368

$

799

$

$

$

1,167

Hilton Boston Downtown/Faneuil Hall

144

$

6,589

$

(5,223)

$

3,686

$

$

$

(1,537)

Hilton Burlington Lake Champlain

167

$

2,832

$

(2,666)

$

1,632

$

$

$

(1,034)

Hilton Garden Inn New York/Times Square Central

88

$

3,276

$

(6,342)

$

2,536

$

$

$

(3,806)

Hotel Emblem San Francisco

179

$

2,062

$

(1,434)

$

962

$

$

$

(472)

Hotel Palomar Phoenix

192

$

8,036

$

(1,519)

$

2,017

$

116

$

865

$

1,479

JW Marriott Denver Cherry Creek

203

$

6,043

$

(5,200)

$

2,124

$

2,031

$

18

$

(1,027)

Kimpton Shorebreak Resort

274

$

8,301

$

643

$

1,230

$

$

27

$

1,900

L’Auberge de Sedona

274

$

12,643

$

963

$

2,000

$

$

$

2,963

Orchards Inn Sedona

229

$

2,655

$

(387)

$

377

$

$

126

$

116

Renaissance Charleston Historic District Hotel

236

$

5,101

$

(732)

$

1,279

$

$

(85)

$

462

Salt Lake City Marriott Downtown at City Creek

274

$

8,666

$

(2,524)

$

1,663

$

1,712

$

$

851

The Gwen Hotel

203

$

6,872

$

(5,790)

$

3,327

$

$

$

(2,463)

The Landing Lake Tahoe Resort & Spa

200

$

6,664

$

903

$

1,251

$

$

$

2,154

The Lexington Hotel

88

$

8,857

$

(19,230)

$

9,107

$

18

$

24

$

(10,081)

The Lodge at Sonoma Renaissance Resort & Spa

172

$

5,934

$

(4,159)

$

1,375

$

822

$

$

(1,962)

Vail Marriott Mountain Resort

190

$

16,413

$

472

$

3,348

$

$

$

3,820

Westin Boston Waterfront

112

$

17,551

$

(19,193)

$

7,762

$

6,405

$

(180)

$

(5,206)

Westin Fort Lauderdale Beach Resort

274

$

23,075

$

1,659

$

3,263

$

$

$

4,922

Westin San Diego Downtown

274

$

11,684

$

(3,383)

$

3,385

$

1,861

$

$

1,863

Westin Washington D.C. City Center

274

$

6,022

$

(8,319)

$

3,958

$

1,925

$

$

(2,436)

Worthington Renaissance Fort Worth Hotel

274

$

11,314

$

(6,490)

$

3,383

$

2,302

$

6

$

(799)

Total

$

240,441

$

(142,716)

$

87,397

$

20,237

$

5,172

$

(29,907)

Less: Frenchman’s Reef & Morning Star Marriott Beach Resort

$

$

$

$

$

$

Comparable Total

$

240,441

$

(142,716)

$

87,397

$

20,237

$

5,172

$

(29,907)

 

(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.

 

 

Hotel Adjusted EBITDA Reconciliation

Year to Date 2019

Plus:

Plus:

Plus:

Equals:

Total Revenues

Net Income / (Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted EBITDA

Atlanta Marriott Alpharetta

$

14,959

$

3,891

$

1,389

$

$

$

5,280

Barbary Beach House Key West

$

12,906

$

3,557

$

1,033

$

$

$

4,590

Bethesda Marriott Suites

$

13,051

$

(2,031)

$

1,422

$

$

4,555

$

3,946

Cavallo Point, The Lodge at the Golden Gate

$

30,600

$

2,374

$

5,557

$

$

221

$

8,152

Chicago Marriott Downtown Magnificent Mile

$

83,224

$

12,127

$

12,461

$

110

$

(1,192)

$

23,506

Courtyard Denver Downtown

$

8,881

$

3,407

$

881

$

$

$

4,288

Courtyard New York Manhattan/Fifth Avenue

$

11,417

$

(519)

$

1,330

$

$

760

$

1,571

Courtyard New York Manhattan/Midtown East

$

21,213

$

(70)

$

2,077

$

2,891

$

$

4,898

Frenchman’s Reef & Morning Star Marriott Beach Resort

$

$

8,798

$

$

$

$

8,798

Havana Cabana Key West

$

7,351

$

2,035

$

740

$

$

$

2,775

Hilton Boston Downtown/Faneuil Hall

$

32,337

$

9,124

$

3,708

$

$

$

12,832

Hilton Burlington Lake Champlain

$

14,031

$

3,917

$

1,500

$

$

$

5,417

Hilton Garden Inn New York/Times Square Central

$

18,222

$

1,731

$

2,509

$

$

$

4,240

Hotel Emblem San Francisco

$

5,649

$

323

$

868

$

$

$

1,191

Hotel Palomar Phoenix

$

18,008

$

2,319

$

1,991

$

116

$

883

$

5,309

JW Marriott Denver Cherry Creek

$

14,380

$

(944)

$

1,975

$

2,062

$

18

$

3,111

Kimpton Shorebreak Resort

$

13,704

$

3,586

$

1,046

$

$

121

$

4,753

L’Auberge de Sedona

$

19,259

$

3,688

$

1,525

$

$

$

5,213

Orchards Inn Sedona

$

5,890

$

884

$

713

$

$

126

$

1,723

Renaissance Charleston Historic District Hotel

$

11,566

$

3,438

$

1,242

$

$

(95)

$

4,585

Salt Lake City Marriott Downtown at City Creek

$

23,586

$

5,120

$

1,680

$

1,818

$

$

8,618

The Gwen Hotel

$

25,709

$

4,030

$

3,285

$

$

$

7,315

The Landing Lake Tahoe Resort & Spa

$

7,618

$

294

$

1,179

$

$

$

1,473

The Lexington Hotel

$

47,872

$

(1,778)

$

10,697

$

17

$

24

$

8,960

The Lodge at Sonoma Renaissance Resort & Spa

$

19,023

$

3,234

$

1,571

$

840

$

$

5,645

Vail Marriott Mountain Resort

$

27,989

$

6,063

$

3,035

$

$

$

9,098

Westin Boston Waterfront

$

70,991

$

6,286

$

7,266

$

6,506

$

(180)

$

19,878

Westin Fort Lauderdale Beach Resort

$

38,246

$

7,223

$

4,853

$

$

$

12,076

Westin San Diego Downtown

$

26,333

$

4,769

$

3,397

$

1,901

$

$

10,067

Westin Washington D.C. City Center

$

25,238

$

2,075

$

3,948

$

1,986

$

$

8,009

Worthington Renaissance Fort Worth Hotel

$

31,319

$

5,597

$

2,927

$

2,340

$

6

$

10,870

Total

$

700,572

$

104,548

$

87,805

$

20,587

$

5,247

$

218,028

Less: Frenchman’s Reef & Morning Star Marriott Beach Resort

$

$

(8,798)

$

$

$

$

(8,798)

Comparable Total

$

700,572

$

95,750

$

87,805

$

20,587

$

5,247

$

209,230

(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.

SOURCE DiamondRock Hospitality Company