Condor Hospitality Trust Reports First Quarter 2021 Results

Condor Hospitality Trust, Inc. (NYSE American: CDOR) yesterday announced results of operations for the first quarter 2021.

FIRST QUARTER 2021 FINANCIAL HIGHLIGHTS

  • Portfolio Revenue Per Available Room (RevPAR): The 15 hotels Same-Store RevPAR in the first quarter 2021 decreased 33.1% to $53.16 compared to the first quarter 2020. Same-Store Average Daily Rate (ADR) decreased 28.1% to $89.41 and Same-Store occupancy decreased 7.1% to 59.46% in the first quarter 2021 compared to the same period in 2020. April 2021 RevPAR was $73.80 based on an occupancy of 70.6% and a $104.56 ADR.
  • Net Loss: Net Loss Attributable to Common Shareholders was ($2.4) million or ($0.20) per diluted share in the first quarter 2021 compared to ($3.2) million or ($0.27) per diluted share for the same period in 2020.
  • Adjusted EBITDAre*: Adjusted EBITDAre decreased in the first quarter 2021 69.0% to $0.8 million from $2.7 million for the same period in 2020.
  • Adjusted Funds from Operations*: Adjusted Funds from Operations decreased $2.4 million in the first quarter 2021 to ($1.3) million or ($0.11) per diluted share compared to $1.1 million or $0.09 per diluted share in the same period in 2020.
  • Same-Store Hotel EBITDA*: Same-Store Hotel EBITDA was $2.0 million in the first quarter 2021, a decrease of 50.9% from the same period in 2020. Margin contracted 690 bps to 20.7% in the first quarter 2021 compared to 27.6% in the same period in 2020.

MANAGEMENT COMMENTARY

Bill Blackham, Condor’s Chief Executive Officer, commented: “The hospitality industry including Condor has faced unprecedented challenges appearing in the first quarter 2020 brought by the COVID-19 pandemic and the resulting near evaporation of demand. Beginning in March of 2020 Condor acted quickly to substantially reduce portfolio operating expenses, reduce corporate overhead and enhance our sales efforts to capture more than our fair share of greatly reduced demand. Our hotel portfolio returned to positive cash flow beginning in May 2020 and has remained positive throughout the remainder of 2020 and the first quarter of 2021. We undertook steps to enhance liquidity including the successful completion of an amendment to our credit facility providing important covenant compliance deferrals and access to $13.4 million of revolving credit availability through the January 2023 extended maturity.

In the first quarter 2021 our portfolio continued outperforming, as compared to the overall industry which recorded 34.3% RevPAR declines nationally in the upscale chain scale as reported by Smith Travel Research, and our select service public REIT peer group, by having one of the lowest first quarter RevPAR decline compared to the same period in 2020 and at 20.7% one of the highest hotel portfolio EBITDA margins. When eliminating the two Aloft hotels and the Indigo hotel in our portfolio which have larger food and beverage platforms the modified portfolio proforma margins increased to 26.9%. Seasonal lower demand early in the first quarter changed considerably in later February with increased leisure travel driving the portfolio occupancy to 59.5% and the portfolio is positioned to enjoy benefits from the continuing increase leisure demand that we are currently experiencing and that we expect into second quarter 2021 having achieved a 70.6% portfolio occupancy for the month of April 2021. We anticipate that business travel led initially by local business demand, and then regional demand, will begin late in the second quarter and improve over the remainder of 2021.

As a result of a lender that acquired the loan on our Leawood hotel late in December 2020 refusing to grant a financial covenants waiver for the fourth quarter 2020 that was granted by the previous lender for the first three quarters of 2020, the Company’s auditor issued an audit opinion with a going concern qualification. This waiver refusal on a technical covenant on a loan where all payments are current occurred in the midst of an environment where industry practice has lenders granting such waivers so as a result the Company is underway with a process to identify alternatives to refinance the loan.”

 

Condor Hospitality Trust

Selected Statistical and Financial Data

As of and for the three months ended March 31,

(in thousands except statistical and per share amounts)

 
 

(Unaudited)

 

Three months ended March 31,

 

2021

2020

Net Loss

 

$

(2,187)

$

(3,025)

Diluted Earnings (Loss) per Share

 

$

(0.20)

$

(0.27)

Adjusted EBITDAre*

 

$

846

$

2,725

Hotel EBITDA – Same-Store*

 

$

1,996

$

4,067

Hotel EBITDA Margin – Same-Store*

 

20.7%

27.6%

Adjusted FFO*

 

$

(1,326)

$

1,049

Adjusted FFO per Diluted Share*

 

$

(0.11)

$

0.09

Same-Store RevPAR*

 

$

53.16

$

79.50

Same-Store Occupancy*

 

59.46%

63.97%

Same-Store ADR*

 

$

89.41

$

124.28

The following table summarizes key hotel statistics during the first quarter of 2021, amid the COVID-19 pandemic, compared to the first quarter of 2020:

 
 

January
2021

February
2021

March
2021

Three Months
ended
March 31,
2021

January
2020

February
2020

March
2020

Three Months
ended
March 31,
2020

Same-Store ADR*

 

$

84.88

$

88.31

$

93.51

$

89.41

$

123.34

$

127.06

$

120.91

$

124.28

Same-Store Occupancy*

 

51.42%

56.37%

70.29%

59.46%

71.89%

79.40%

41.58%

63.97%

Same-Store RevPAR*

 

$

43.64

$

49.77

$

65.73

$

53.16

$

88.67

$

100.89

$

50.27

$

79.50

Hotel EBITDA – Same-Store*

 

$

299

$

532

$

1,165

$

1,996

$

1,702

$

2,244

$

121

$

4,067

Hotel EBITDA Margin – Same-Store*

 

11.0%

18.9%

28.4%

20.7%

30.3%

37.7%

3.8%

27.6%

* Financial data presented above includes results from prior to our 100% ownership of Atlanta Aloft.

OPERATIONS UPDATE

  • All Hotels Open: All of Condor’s hotels are open with expanded and repetitive health and sanitation measures in place. The Company in 2020 had closed 2 of its hotels in April but resumed full operations in July.
  • Enhanced Asset Management Efforts: The Company working together with its third-party management companies has expanded sales efforts to include COVID-19 specific demand related to medical, hospital and university services and for the numerous disaster recovery and infrastructure improvement and reconstruction projects that create demand in our hotel markets. We continue to aggressively pursue leisure, government, athletic and local and regional business related to travel in our hotel markets. Since March 2020, the Company, working with our third-party management companies, have implemented cost elimination/cost reduction initiatives at our hotels through a variety of measures involving labor, services, amenities, contracts, and taxes. As a result of these initiatives, Hotel EBITDA has been positive each month from May 2020 through the end of March 2021 and our RevPAR penetration index has remained above 100% fair share averaging 108.9% for the first quarter 2021 compared to 111.3% the same quarter in the previous year.
 
 

May
2020

June
2020

July
2020

August
2020

September
2020

October
2020

November
2020

December
2020

January
2021

February
2021

March
2021

Hotel EBITDA

 

$

14

$

438

$

385

$

772

$

405

$

701

$

180

$

164

$

299

$

532

$

1,165

 
 

January
2020

February
2020

March
2020

Q1 2020

January
2021

February
2021

March
2021

Q1 2021

Hotel RevPAR Penetration Index

 

117.1%

110.1%

102.5%

111.3%

111.2%

103.2%

109.3%

108.9%

CASH BURN BEFORE CAPITAL EXPENDITURES

The Company had a first quarter 2021 cash burn of $1.4 million compared to $1.4 million in the third quarter and $2.1 million in the fourth quarter 2020. The majority of the cash burn was in the initial 60 days with March achieving breakeven before non-recurring expenses. The cash burn analysis includes $0.2 million of principal amortization for the quarter.

 

(in thousands)

 

Three months ended
March 31, 2021

One month ended
March 31, 2021

Hotel EBITDA

 

$

1,996

$

1,165

Less: recurring general and administrative expense, excluding stock compensation expense

 

(1,111)

(377)

Less: unallocated hotel and property operations expense

 

(31)

(4)

Adjusted Corporate EBITDA

 

$

854

$

784

Less: debt service costs

 

(2,210)

(771)

Cash burn

 

$

(1,356)

$

13

CORPORATE LOAN FACILITY

On November 19, 2020 the Company amended the credit agreement for its $130 million revolving credit facility. The key modifications and enhancements include:

  • Loan maturity was extended to January 2, 2023
  • Financial covenant compliance was suspended until September 30, 2021
  • Debt yield and leverage ratio covenants were eliminated and replaced with a borrowing base debt service coverage ratio
  • The debt service and fixed charge covenants, when applicable on September 30, 2021, were eased from 1.5X to 1.0X and ramp up to 1.5X on September 30, 2022. Importantly, beginning with the September 30, 2021 calculations, quarterly figures are annualized until the quarter ending June 30, 2022 which will use the trailing 12 months figures
  • Borrowing availability was increased to $13.4 million
  • Dividends suspension was modified to allow the payment of common and preferred dividends when defined financial conditions are achieved.

BALANCE SHEET AND CAPITAL MARKETS ACTIVITY

As of March 31, 2021, the Company had cash and cash equivalents (including restricted cash) of $7.7 million and available revolver borrowing capacity of $10.2 million. As of March 31, 2021, the Company had total outstanding long-term debt of $169.7 million associated with assets held for use with a weighted average maturity of 1.9 years and a weighted average interest rate of 3.79%.

CAPITAL INVESTMENTS

The Company invested $0.3 million in capital improvements throughout the portfolio in the three months ended March 31, 2021 to upgrade its properties and maintain brand standards.

OUTLOOK AND GUIDANCE

The Company has suspended guidance until further notice.

DIVIDENDS

On November 19, 2020, the Company amended its credit facility to permit payment of cash dividends to common and preferred shareholder when defined financial conditions are achieved. The Company is not currently permitted to pay cash dividends pursuant to the terms of its credit facility.

About Condor Hospitality Trust, Inc.

Condor Hospitality Trust, Inc. (NYSE American: CDOR) is a self-administered real estate investment trust that specializes in the investment and ownership of upper midscale and upscale, premium-branded, select-service, extended-stay, and limited-service hotels in the top 100 Metropolitan Statistical Areas (“MSAs”) with a particular focus on the top 20 to 60 MSAs. The Company currently owns 15 hotels in 8 states. Condor’s hotels are franchised by a number of the industry’s most well-regarded brand families including Hilton, Marriott, and InterContinental Hotels.

SELECTED FINANCIAL DATA:

Condor Hospitality Trust, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except share and per share data)

As of

March 31, 2021

December 31, 2020

Assets

Investment in hotel properties, net

$

263,506

$

265,831

Cash and cash equivalents

3,485

3,686

Restricted cash, property escrows

4,228

3,794

Accounts receivable, net

1,092

652

Prepaid expenses and other assets

956

1,230

Total Assets

$

273,267

$

275,193

Liabilities and Equity

Liabilities

Accounts payable, accrued expenses, and other liabilities

$

5,945

$

5,372

Dividends and distributions payable

924

762

Land option liability

8,497

8,497

Derivative liabilities, at fair value

744

880

Convertible debt, at fair value

15,022

16,875

Long-term debt, net of deferred financing costs

168,111

166,526

Total Liabilities

199,243

198,912

Equity

Shareholders’ Equity

Preferred stock, 40,000,000 shares authorized:

6.25% Series E, 925,000 shares authorized, $.01 par value, 925,000 shares outstanding, liquidation preference of $10,174 and $10,012

10,050

10,050

Common stock, $.01 par value, 200,000,000 shares authorized; 12,019,769 and 12,014,743 shares outstanding

120

120

Additional paid-in capital

233,425

233,332

Accumulated deficit

(169,613)

(167,263)

Total Shareholders’ Equity

73,982

76,239

Noncontrolling interest in consolidated partnership (Condor Hospitality Limited Partnership), redemption value of $15 and $17

42

42

Total Equity

74,024

76,281

Total Liabilities and Equity

$

273,267

$

275,193

Condor Hospitality Trust, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share data)

Three months ended March 31,

2021

2020

Revenue

Room rentals and other hotel services

$

9,644

$

13,227

Operating Expenses

Hotel and property operations

7,679

9,815

Depreciation and amortization

2,643

2,710

General and administrative

1,260

1,193

Strategic alternatives, net

40

144

Total operating expenses

11,622

13,862

Operating loss

(1,978)

(635)

Net loss on disposition of assets

(3)

(9)

Equity in earnings of joint venture

80

Net gain (loss) on derivatives and convertible debt

1,988

(759)

Other income (expense), net

42

(28)

Interest expense

(2,209)

(1,980)

Loss before income taxes

(2,160)

(3,331)

Income tax benefit (expense)

(27)

306

Net loss

(2,187)

(3,025)

Loss attributable to noncontrolling interest

1

Net loss attributable to controlling interests

(2,187)

(3,024)

Dividends declared and undeclared on preferred stock

(163)

(145)

Net loss attributable to common shareholders

$

(2,350)

$

(3,169)

Earnings (Loss) per Share

Total – Basic Earnings (Loss) per Share

$

(0.20)

$

(0.27)

Total – Diluted Earnings (Loss) per Share

$

(0.20)

$

(0.27)

Reconciliation of Non-GAAP Financial Measures (Unaudited)

Non-GAAP financial measures are measures of our historical financial performance that are different from measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We report Funds from Operations (“FFO”), Adjusted FFO (“AFFO”), Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”), EBITDA for real estate (“EBITDAre”), Adjusted EBITDAre, and Hotel EBITDA as non-GAAP measures that we believe are useful to investors as key measures of our operating results and which management uses to facilitate a periodic evaluation of our operating results relative to those of our peers. Our non-GAAP measures should not be considered as an alternative to U.S. GAAP net earnings as an indication of financial performance or to U.S. GAAP cash flows from operating activities as a measure of liquidity. Additionally, these measures are not indicative of funds available to fund cash needs or our ability to make cash distributions as they have not been adjusted to consider cash requirements for capital expenditures, property acquisitions, debt service obligations, or other commitments.

FFO and AFFO

The following table reconciles net loss to FFO and AFFO for the three months ended March 31, 2021 and 2020. (in thousands). All amounts presented include our portion of the results of our unconsolidated Atlanta JV.

 
 

Three months ended March 31,

Reconciliation of Net loss to FFO and AFFO

 

2021

2020

Net loss

 

$

(2,187)

$

(3,025)

Depreciation and amortization expense

 

2,643

2,710

Depreciation and amortization expense from JV

 

145

Net loss on disposition of assets

 

3

9

FFO

 

459

(161)

Dividends declared and undeclared on preferred stock

 

(163)

(145)

FFO attributable to common shares and common units

 

296

(306)

Net (gain) loss on derivatives and convertible debt

 

(1,988)

759

Strategic alternatives expense, net

 

40

144

Stock-based compensation expense

 

99

84

Amortization of deferred financing fees

 

227

275

Amortization of deferred financing fees from JV

 

93

AFFO attributable to common shares and common units

 

$

(1,326)

$

1,049

 

FFO attributable to common shares and common units – Basic

 

$

296

$

(306)

2020 Note interest and fair value adjustments

 

(1,593)

FFO attributable to common shares and common units – Diluted

 

$

(1,297)

$

(306)

 

FFO per common share and common unit – Basic

 

$

0.02

$

(0.03)

FFO per common share and common unit – Diluted

 

$

(0.08)

$

(0.03)

 

Weighted average common shares and common units – Basic FFO

 

11,996,576

11,955,628

Weighted average common shares and common units – Diluted FFO

 

16,023,217

11,955,628

 

AFFO attributable to common shares and common units – Basic and Diluted

 

$

(1,326)

$

1,049

 

AFFO per common share and common unit – Basic

 

$

(0.11)

$

0.09

AFFO per common share and common unit – Diluted

 

$

(0.11)

$

0.09

 

Weighted average common shares and common units – Basic AFFO

 

11,996,576

11,955,628

Weighted average common shares and common units – Diluted AFFO

 

11,996,576

11,963,762

We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net earnings or loss computed in accordance with GAAP, excluding gains or losses from sales of real estate assets, impairment, and the depreciation and amortization of real estate assets. FFO is calculated both for the Company in total and as FFO attributable to common shares and common units, which is FFO reduced by preferred stock dividends. AFFO is FFO attributable to common shares and common units adjusted to exclude items we do not believe are representative of the results from our core operations, including non-cash gains or losses on derivatives and convertible debt, stock-based compensation expense, amortization of certain fees, losses on debt extinguishment, and in-kind dividends above stated rates, and cash charges for acquisition and equity transaction and strategic alternatives costs. All REITs do not calculate FFO and AFFO in the same manner; therefore, our calculation may not be the same as the calculation of FFO and AFFO for similar REITs.

We consider FFO to be a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, we believe that FFO provides a meaningful indication of our performance. We believe that AFFO provides useful supplemental information to investors regarding our ongoing operating performance that, when considered with net income and FFO, is beneficial to an investor’s understanding of our operating performance. We present FFO and AFFO per common share and common unit because our common units are redeemable for common shares. We believe it is meaningful for the investor to understand FFO and AFFO applicable to common shares and common units.

EBITDA, EBITDAre, Adjusted EBITDAre, Hotel EBITDA and Hotel EBITDA Proforma

The following table reconciles net loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA for the three months ended March 31, 2021 and 2020 (in thousands). All amounts presented our portion of the results of our unconsolidated Atlanta JV.

 
 

Three months ended March 31,

Reconciliation of Net loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA

 

2021

2020

Net loss

 

$

(2,187)

$

(3,025)

Interest expense

 

2,209

1,980

Interest expense from JV

 

225

Income tax expense (benefit)

 

27

(306)

Depreciation and amortization expense

 

2,643

2,710

Depreciation and amortization expense from JV

 

145

EBITDA

 

2,692

1,729

Net loss on disposition of assets

 

3

9

EBITDAre

 

2,695

1,738

Net loss (gain) on derivatives and convertible debt

 

(1,988)

759

Stock-based compensation expense

 

99

84

Strategic alternatives, net

 

40

144

Adjusted EBITDAre

 

846

2,725

General and administrative expense, excluding stock compensation expense

 

1,161

1,109

Other (income) expense, net

 

(42)

28

Unallocated hotel and property operations expense

 

31

94

Hotel EBITDA

 

$

1,996

$

3,956

 

Revenue

 

$

9,644

$

13,227

JV revenue

 

1,218

Condor and JV revenue

 

$

9,644

$

14,445

Hotel EBITDA as a percentage of revenue

 

20.7%

27.4%

 
 

Three months ended March 31,

Reconciliation of Hotel EBITDA to Hotel EBITDA Proforma

 

2021

Hotel EBITDA

 

$

1,996

Less: Proforma Property Exclusions

 

10

Hotel EBITDA Proforma**

 

$

2,006

 

Total Company and JV revenue

 

$

9,644

Less: Proforma Property Exclusions

 

(2,185)

Hotel Revenue Proforma**

 

$

7,459

Proforma Margin

 

26.9%

       

**Proforma amounts do not include results for full service food and beverage properties, Atlanta Aloft, Leawood Aloft, and College Park Hotel Indigo

 
 

Three months ended
March 31, 2021

Three months ended
December 31, 2020

Three months ended
September 30, 2020

Reconciliation of Hotel EBITDA to Cash Burn

 

Hotel EBITDA

 

$

1,996

$

1,045

$

1,562

Less: recurring general and administrative expense, excluding stock compensation expense

 

(1,111)

(968)

(1,013)

Less: unallocated hotel and property operations expense

 

(31)

(61)

(57)

Adjusted Corporate EBITDA

 

$

854

$

16

$

492

Less: debt service costs

 

(2,210)

(2,108)

(1,865)

Cash burn

 

$

(1,356)

$

(2,092)

$

(1,373)

We calculate EBITDA, EBITDAre, and Adjusted EBITDAre by adding back to net earnings or loss certain non-operating expenses and certain non-cash charges which are based on historical cost accounting that we believe may be of limited significance in evaluating current performance. We believe these adjustments can help eliminate the accounting effects of depreciation and amortization and financing decisions and facilitate comparisons of core operating profitability between periods. In calculating EBITDA, we add back to net earnings or loss interest expense, loss on debt extinguishment, income tax expense, and depreciation and amortization expense. NAREIT adopted EBITDAre in order to promote an industry-wide measure of REIT operating performance. We adjust EBITDA by adding back net gain/loss on disposition of assets and impairment charges to calculate EBITDAre. To calculate Adjusted EBITDAre, we adjust EBITDAre to add back acquisition and terminated transactions expense and equity transactions and strategic alternatives expense, which are cash charges. We also add back stock –based compensation expense and gain/loss on derivatives and convertible debt, which are non-cash charges. EBITDA, EBITDAre, and Adjusted EBITDAre, as presented, may not be comparable to similarly titled measures of other companies.

We believe EBITDA, EBITDAre, and Adjusted EBITDAre to be useful additional measures of our operating performance, excluding the impact of our capital structure (primarily interest expense), our asset base (primarily depreciation and amortization expense), and other items we do not believe are representative of the results from our core operations.

The Company further excludes general and administrative expenses, other non-operating income or expense, and certain hotel and property operations expenses that are not allocated to individual properties in assessing hotel performance (primarily certain general liability and other insurance costs, land lease costs, and office and banking fees) from Adjusted EBITDAre to calculate Hotel EBITDA. Hotel EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

Hotel EBITDA is intended to isolate property level operational performance over which the Company’s hotel operators have direct control. We believe Hotel EBITDA is helpful to investors as it better communicates the comparability of our hotels’ operating results for all of the Company’s hotel properties and is used by management to measure the performance of the Company’s hotels and the effectiveness of the operators of the hotels.

Same-Store Revenue and Hotel EBITDA

The following tables present our same-store revenue, Hotel EBITDA, and Hotel EBITDA margin broken down by property type for the three months ended March 31, 2021 and 2020 (in thousands) and reconcile these same-store measures to total revenue and Hotel EBITDA as presented above. Same-store results include all our hotels owned at December 31, 2020. Results for the hotels for periods prior to our ownership were provided to us by prior owners and have not been adjusted by us or audited or reviewed by our independent auditors. All amounts presented include our portion of the results of our unconsolidated Atlanta Aloft JV. Results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included here only for comparison purposes.

Revenue – Reconciliation of Actual to Same-Store

Three months ended March 31,

2021

2020

Condor and JV Revenue – Actual

$

9,644

$

14,445

Revenue earned on properties disposed of prior to March 31, 2021 during the period of ownership

Revenue earned related to joint venture interest in the Atlanta JV prior to acquisition of this interest on February 14, 2020

304

Total Revenue – Same-Store

$

9,644

$

14,749

Hotel EBITDA – Reconciliation of Actual to Same-Store

Three months ended March 31,

2021

2020

Condor and JV Hotel EBITDA – Actual

$

1,996

$

3,956

Hotel EBITDA earned on properties disposed of prior to March 31, 2021 during the period of ownership

Hotel EBITDA earned related to joint venture interest in the Atlanta JV prior to acquisition of this interest on February 14, 2020

111

Total Hotel EBITDA – Same-Store

$

1,996

$

4,067

Hotel EBITDA Margin

Three months ended March 31,

2021

2020

Total Hotel EBITDA Margin

20.7%

27.6%

The following tables present our monthly results presented reconciling net income (loss) to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA, as well as Hotel EBITDA Same-Store and Hotel EBITDA Same-Store margins.

Reconciliation of Net loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA

Month
ending
May 31,
2020

Month
ending
June 30,
2020

Month
ending
July 31,
2020

Month
ending
Aug 31,
2020

Month
ending
Sept 30,
2020

Month
ending
Oct 31,
2020

Month
ending
Nov 30,
2020

Month
ending
Dec 31,
2020

Month
ending
January 30,
2021

Month
ending
February 28,
2021

Month
ending
March 31,
2021

Net income (loss)

$

(1,999)

$

(1,571)

$

(1,670)

$

(1,816)

$

(1,321)

$

4,365

$

(1,826)

$

(7,578)

$

(1,662)

$

(1,529)

$

1,004

Interest expense

698

676

707

708

688

743

794

791

755

693

761

Interest expense from JV

Income tax expense (benefit)

9

(79)

9

9

9

9

9

(53)

9

9

9

Depreciation and amortization expense

926

926

926

926

927

903

904

882

880

881

882

Depreciation and amortization expense from JV

EBITDA

$

(366)

$

(48)

$

(28)

$

(173)

$

303

$

6,020

$

(119)

$

(5,958)

$

(18)

$

54

$

2,656

Net loss on disposition of assets

1

1

1

2

2

1

2

EBITDAre

$

(366)

$

(48)

$

(28)

$

(172)

$

304

$

6,021

$

(117)

$

(5,956)

$

(17)

$

56

$

2,656

Net loss (gain) on derivatives and convertible debt

(18)

(3)

(3)

(126)

(3)

(3)

5,728

(1,988)

Stock-based compensation expense

18

46

10

23

37

(123)

17

43

17

17

65

Acquisition and terminated transactions expense

Strategic alternatives, net

17

52

40

494

602

(5,577)

11

40

Adjusted EBITDAre

$

(331)

$

32

$

19

$

342

$

817

$

318

$

(103)

$

(174)

$

$

73

$

773

General and administrative expense, excluding stock compensation expense

313

276

337

405

81

324

318

326

278

456

427

Other expense (income), net

(2)

58

2

1

(499)

34

(61)

2

(2)

(1)

(39)

Unallocated hotel and property operations expense

34

72

27

24

6

25

26

10

23

4

4

Hotel EBITDA

$

14

$

438

$

385

$

772

$

405

$

701

$

180

$

164

$

299

$

532

$

1,165

Hotel EBITDA earned on properties owned at December 31, 2020 prior to ownership

Hotel EBITDA – Same-Store

$

14

$

438

$

385

$

772

$

405

$

701

$

180

$

164

$

299

$

532

$

1,165

Revenue

$

1,706

$

2,280

$

2,782

$

3,058

$

3,001

$

3,215

$

2,560

$

2,534

$

2,729

$

2,817

$

4,098

JV Revenue

Condor and JV Revenue

1,706

2,280

2,782

3,058

3,001

3,215

2,560

2,534

2,729

2,817

4,098

Revenue earned on properties owned at December 31, 2020 prior to ownership

Total Revenue – Same-Store

$

1,706

$

2,280

$

2,782

$

3,058

$

3,001

$

3,215

$

2,560

$

2,534

$

2,729

$

2,817

$

4,098

Hotel EBITDA – Same-Store as a percentage of revenue

0.8%

19.2%

13.8%

25.2%

13.5%

21.8%

7.0%

6.5%

11.0%

18.9%

28.4%

 

Reconciliation of Net income (loss) to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA

 

Month ending
January 30,
2020

Month ending
February 28,
2020

Month ending
March 31,
2020

Net income (loss)

 

$

(724)

$

124

$

(2,425)

Interest expense

 

606

664

710

Interest expense from JV

 

169

56

Income tax expense (benefit)

 

5

5

(316)

Depreciation and amortization expense

 

804

952

954

Depreciation and amortization expense from JV

 

109

36

EBITDA

 

$

969

$

1,837

$

(1,077)

Net loss on disposition of assets

 

2

1

6

EBITDAre

 

$

971

$

1,838

$

(1,071)

Net loss on derivatives and convertible debt

 

759

Stock-based compensation expense

 

32

30

22

Strategic alternatives, net

 

235

(137)

46

Adjusted EBITDAre

 

$

1,238

$

1,731

$

(244)

General and administrative expense, excluding stock compensation expense

 

350

457

302

Other expense, net

 

10

9

9

Unallocated hotel and property operations expense

 

18

22

54

Hotel EBITDA

 

$

1,616

$

2,219

$

121

 

Hotel EBITDA earned on properties owned at December 31, 2020 prior to ownership

 

86

25

Hotel EBITDA – Same-Store

 

$

1,702

$

2,244

$

121

 

Revenue

 

$

4,511

$

5,542

$

3,174

JV Revenue

 

890

328

Condor and JV Revenue

 

5,401

5,870

3,174

Revenue earned on properties owned at December 31, 2020 prior to ownership

 

223

81

Total Revenue – Same-Store

 

$

5,624

$

5,951

$

3,174

Hotel EBITDA – Same-Store as a percentage of revenue

 

30.3%

37.7%

3.8%

Condor Hospitality Trust, Inc. Operating Statistics

The following tables present our same-store occupancy, ADR, and RevPAR for all our hotels owned at December 31, 2020. Same-store occupancy, ADR, and RevPAR reflect the performance of hotels during the entire period, regardless of our ownership during the period presented. Results for the hotels for periods prior to our ownership were provided to us by prior owners and have not been adjusted by us or audited or reviewed by our independent auditors. The performance metrics for the hotel acquired through our Atlanta JV, also presented below, reflect 100% of the operating results of the property, including our interest and the interest of our partner.

 
 

Three months ended March 31,

 

2021

2020

 

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

Solomons Hilton Garden Inn

 

54.82%

$

93.12

$

51.05

59.12%

$

123.08

$

72.77

Atlanta Hotel Indigo

 

49.66%

$

82.83

$

41.14

67.47%

$

102.33

$

69.05

Jacksonville Courtyard by Marriott

 

69.27%

$

84.85

$

58.78

70.20%

$

121.25

$

85.12

San Antonio SpringHill Suites

 

44.60%

$

87.10

$

38.85

62.04%

$

132.12

$

81.97

Leawood Aloft

 

35.55%

$

77.49

$

27.54

51.52%

$

123.39

$

63.57

Lexington Home2 Suites

 

63.27%

$

81.74

$

51.72

60.30%

$

102.32

$

61.70

Round Rock Home2 Suites

 

66.65%

$

74.03

$

49.34

59.47%

$

109.07

$

64.87

Tallahassee Home2 Suites

 

79.81%

$

101.74

$

81.20

68.32%

$

135.96

$

92.88

South Haven Home2 Suites

 

86.34%

$

93.80

$

80.99

75.95%

$

111.65

$

84.80

Lake Mary Hampton Inn & Suites

 

67.06%

$

104.13

$

69.83

68.78%

$

149.89

$

103.10

Austin Residence Inn

 

71.27%

$

80.51

$

57.38

68.63%

$

129.18

$

88.65

El Paso Fairfield Inn

 

66.25%

$

75.01

$

49.70

74.22%

$

109.43

$

81.22

Austin TownePlace Suites

 

70.71%

$

79.11

$

55.94

61.93%

$

108.54

$

67.23

Summerville Home2 Suites

 

61.59%

$

99.89

$

61.52

67.26%

$

119.67

$

80.48

Atlanta Aloft

 

38.82%

$

110.70

$

42.97

55.46%

$

154.36

$

85.60

Total Same-Store Portfolio

 

59.46%

$

89.41

$

53.16

63.97%

$

124.28

$

79.50

           

Condor Hospitality Trust, Inc.

 

Property List | As of March 31, 2021

 
           

New Investment Platform | Acquired from January 1, 2012 – March 31, 2021

 

Hotel Name

 

City

 

State

 

Rooms

 

Acquisition Date

 

Purchase Price
(in millions)

1

 

Hilton Garden Inn

 

Dowell/Solomons

 

MD

 

100

 

05/25/2012

 

$11.5

2

 

SpringHill Suites

 

San Antonio

 

TX

 

116

 

10/01/2015

 

$17.5

3

 

Courtyard by Marriott

 

Jacksonville

 

FL

 

120

 

10/02/2015

 

$14.0

4

 

Hotel Indigo

 

College Park

 

GA

 

142

 

10/02/2015

 

$11.0

5

 

Aloft1

 

Atlanta

 

GA

 

254

 

08/22/2016

 

$43.6

6

 

Aloft

 

Leawood

 

KS

 

156

 

12/14/2016

 

$22.5

7

 

Home2 Suites

 

Lexington

 

KY

 

103

 

03/24/2017

 

$16.5

8

 

Home2 Suites

 

Round Rock

 

TX

 

91

 

03/24/2017

 

$16.8

9

 

Home2 Suites

 

Tallahassee

 

FL

 

132

 

03/24/2017

 

$21.5

10

 

Home2 Suites

 

Southaven

 

MS

 

105

 

04/14/2017

 

$19.0

11

 

Hampton Inn & Suites

 

Lake Mary

 

FL

 

130

 

06/19/2017

 

$19.3

12

 

Fairfield Inn & Suites

 

El Paso

 

TX

 

124

 

08/31/2017

 

$16.4

13

 

Residence Inn

 

Austin

 

TX

 

120

 

08/31/2017

 

$22.4

14

 

TownePlace Suites

 

Austin

 

TX

 

122

 

01/18/2018

 

$19.8

15

 

Home2 Suites

 

Summerville

 

SC

 

93

 

02/21/2018

 

$16.3

 

Total Portfolio | March 31, 2021

     

1,908

   

$288.1

           

1 | Represents the purchase statistics from the purchase of this hotel by the originally 80% owned unconsolidated joint venture. The Company purchased the remaining 20% interest in the joint venture from our joint venture partner on February 14, 2020 for $7.3 million.

           
           

55 Dispositions | For Period January 1, 2015 – March 31, 2021

 

Hotel Name

 

City

 

State

 

Rooms

 

Disposition Date

 

Gross Proceeds
(in millions)

1

 

Super 8

 

West Plains

 

MO

 

49

 

01/15/2015

 

$1.5

2

 

Super 8

 

Green Bay

 

WI

 

83

 

01/29/2015

 

$2.2

3

 

Super 8

 

Columbus

 

GA

 

74

 

03/16/2015

 

$0.9

4

 

Sleep Inn & Suites

 

Omaha

 

NE

 

90

 

03/19/2015

 

$2.9

5

 

Savannah Suites

 

Chamblee

 

GA

 

120

 

04/01/2015

 

$4.4

6

 

Savannah Suites

 

Augusta

 

GA

 

172

 

04/01/2015

 

$3.4

7

 

Super 8

 

Batesville

 

AR

 

49

 

04/30/2015

 

$1.5

8

 

Days Inn

 

Ashland

 

KY

 

63

 

07/01/2015

 

$2.2

9

 

Comfort Inn

 

Alexandria

 

VA

 

150

 

07/13/2015

 

$12.0

10

 

Days Inn

 

Alexandria

 

VA

 

200

 

07/13/2015

 

$6.5

11

 

Super 8

 

Manhattan

 

KS

 

85

 

08/28/2015

 

$3.2

12

 

Quality Inn

 

Sheboygan

 

WI

 

59

 

10/06/2015

 

$2.3

13

 

Super 8

 

Hays

 

KS

 

76

 

10/14/2015

 

$1.9

14

 

Days Inn

 

Glasgow

 

KY

 

58

 

10/16/2015

 

$1.8

15

 

Super 8

 

Tomah

 

WI

 

65

 

10/21/2015

 

$1.4

16

 

Rodeway Inn

 

Fayetteville

 

NC

 

120

 

11/03/2015

 

$2.6

17

 

Savannah Suites

 

Savannah

 

GA

 

160

 

12/22/2015

 

$4.0

 

Total 2015

     

1,673

   

$54.7

18

 

Super 8

 

Kirksville

 

MO

 

61

 

01/04/2016

 

$1.5

19

 

Super 8

 

Lincoln

 

NE

 

133

 

01/07/2016

 

$2.8

20

 

Savannah Suites

 

Greenville

 

SC

 

170

 

01/08/2016

 

$2.7

21

 

Super 8

 

Portage

 

WI

 

61

 

03/30/2016

 

$2.4

22

 

Super 8

 

O’Neill

 

NE

 

72

 

04/25/2016

 

$1.7

23

 

Quality Inn

 

Culpeper

 

VA

 

49

 

05/10/2016

 

$2.2

24

 

Super 8

 

Storm Lake

 

IA

 

59

 

05/19/2016

 

$2.8

25

 

Clarion Inn

 

Cleveland

 

TN

 

59

 

05/24/2016

 

$2.2

26

 

Super 8

 

Coralville

 

IA

 

84

 

05/26/2016

 

$3.4

27

 

Super 8

 

Keokuk

 

IA

 

61

 

05/27/2016

 

$2.2

28

 

Comfort Inn

 

Chambersburg

 

PA

 

63

 

06/06/2016

 

$2.1

29

 

Super 8

 

Pittsburg

 

KS

 

64

 

08/08/2016

 

$1.6

30

 

Super 8

 

Mount Pleasant

 

IA

 

54

 

09/09/2016

 

$1.9

31

 

Quality Inn

 

Danville

 

KY

 

63

 

09/19/2016

 

$2.3

32

 

Super 8

 

Menomonie

 

WI

 

81

 

09/26/2016

 

$3.0

33

 

Comfort Inn

 

Glasgow

 

KY

 

60

 

10/14/2016

 

$2.4

34

 

Days Inn

 

Sioux Falls

 

SD

 

86

 

11/04/2016

 

$2.1

35

 

Comfort Inn

 

Shelby

 

NC

 

76

 

11/07/2016

 

$4.1

36

 

Comfort Inn

 

Rocky Mount

 

VA

 

61

 

11/17/2016

 

$2.2

37

 

Days Inn

 

Farmville

 

VA

 

59

 

11/17/2016

 

$2.4

38

 

Comfort Suites

 

Marion

 

IN

 

62

 

11/18/2016

 

$3.0

39

 

Comfort Inn

 

Farmville

 

VA

 

50

 

11/30/2016

 

$2.6

40

 

Quality Inn

 

Princeton

 

WV

 

50

 

12/05/2016

 

$2.1

41

 

Super 8

 

Burlington

 

IA

 

62

 

12/21/2016

 

$2.8

42

 

Savannah Suites

 

Atlanta

 

GA

 

164

 

12/22/2016

 

$2.9

 

Total 2016

     

1,864

   

$61.4

43

 

Comfort Inn

 

New Castle

 

PA

 

79

 

03/27/2017

 

$2.5

44

 

Super 8

 

Billings

 

MT

 

106

 

03/28/2017

 

$4.2

45

 

Comfort Inn

 

Harlan

 

KY

 

61

 

04/03/2017

 

$1.9

46

 

Comfort Suites

 

Lafayette

 

IN

 

62

 

04/18/2017

 

$3.9

47

 

Key West Inn

 

Key Largo

 

FL

 

40

 

05/17/2017

 

$7.6

48

 

Quality Inn

 

Morgantown

 

WV

 

81

 

08/30/2017

 

$2.6

49

 

Days Inn

 

Bossier City

 

LA

 

176

 

09/13/2017

 

$1.4

50

 

Comfort Inn & Suites

 

Warsaw

 

IN

 

71

 

12/20/2017

 

$5.0

 

Total 2017

     

676

   

$29.1

51

 

Supertel Inn/Conference Center

 

Creston

 

IA

 

41

 

01/25/2018

 

$2.1

52

 

Comfort Suites

 

South Bend

 

IN

 

135

 

03/15/2018

 

$6.1

53

 

Comfort Suites

 

Ft. Wayne

 

IN

 

127

 

05/30/2018

 

$7.1

54

 

Super 8

 

Creston

 

IA

 

121

 

08/30/2018

 

$5.1

 

Total 2018

     

424

   

$20.4

55

 

Quality Inn

 

Solomons

 

MD

 

59

 

03/22/2019

 

$4.3

 

Total 2019

     

59

   

$4.3

           
 

Total Dispositions

     

4,696

   

$169.9

           

Acquisitions | For Period January 1, 2015 – March 31, 2021

 

Hotel Name

 

City

 

State

 

Rooms

 

Acquisition Date

 

Purchase Price
(in millions)

1

 

SpringHill Suites

 

San Antonio

 

TX

 

116

 

10/01/2015

 

$17.5

2

 

Courtyard by Marriott

 

Jacksonville

 

FL

 

120

 

10/02/2015

 

$14.0

3

 

Hotel Indigo

 

College Park

 

GA

 

142

 

10/02/2015

 

$11.0

4

 

Aloft1

 

Atlanta

 

GA

 

254

 

08/22/2016

 

$43.6

5

 

Aloft

 

Leawood

 

KS

 

156

 

12/14/2016

 

$22.5

6

 

Home2 Suites

 

Lexington

 

KY

 

103

 

03/24/2017

 

$16.5

7

 

Home2 Suites

 

Round Rock

 

TX

 

91

 

03/24/2017

 

$16.8

8

 

Home2 Suites

 

Tallahassee

 

FL

 

132

 

03/24/2017

 

$21.5

9

 

Home2 Suites

 

Southaven

 

MS

 

105

 

04/14/2017

 

$19.0

10

 

Hampton Inn & Suites

 

Lake Mary

 

FL

 

130

 

06/19/2017

 

$19.3

11

 

Fairfield Inn & Suites

 

El Paso

 

TX

 

124

 

08/31/2017

 

$16.4

12

 

Residence Inn

 

Austin

 

TX

 

120

 

08/31/2017

 

$22.4

13

 

TownePlace Suites

 

Austin

 

TX

 

122

 

01/18/2018

 

$19.8

14

 

Home2 Suites

 

Summerville

 

SC

 

93

 

02/21/2018

 

$16.3

 

Total Acquisitions

     

1,808

   

$276.6

           

1 | Represents the purchase statistics from the purchase of this hotel by the originally 80% owned unconsolidated joint venture. The Company purchased the remaining 20% interest in the joint venture from our joint venture partner on February 14, 2020 for $7.3 million.