Ashford Hospitality Trust Reports Third Quarter Results
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Ashford Hospitality Trust Reports Third Quarter Results
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Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2010-11-04
Ashford Hospitality Trust, Inc. (NYSE: AHT) today reported the following results and performance measures for the third quarter ended September 30, 2010. The proforma performance measurements for Occupancy, Average Daily Rate (ADR), revenue per available room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) include the Company's 100 hotels owned and included in continuing operations as of September 30, 2010. Unless otherwise stated, all reported results compare the third quarter ended September 30, 2010, with the third quarter ended September 30, 2009 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.
FINANCIAL HIGHLIGHTS AND LIQUIDITY
RevPAR increased 6.1% for the quarter for the hotels not under renovation
Operating profit margin increased 192 basis points for the hotels not under renovation
Net income attributable to common shareholders was $36.3 million, or $0.73 per diluted share, compared with net loss attributable to common shareholders of $33.6 million, or $0.52 per diluted share, in the prior-year quarter
Adjusted funds from operations (AFFO) was $0.33 per diluted share
Net debt to gross assets ratio improved to 54.9% compared with 57.8% a year ago
Fixed charge coverage ratio was 1.83x under the senior credit facility covenant versus a required minimum of 1.25x
CAPITAL ALLOCATION
Capex invested in the quarter was $13.0 million and $46.5 million year to date
CAPITAL STRUCTURE
On July 9, 2010, the Company restructured its $52.5 million loan with Capmark Bank secured by the JW Marriott San Francisco. The modification provided a full extension of the loan maturity to March 2013 without tests and maintained the interest rate at 3.75% over LIBOR, subject to a LIBOR floor of 2.5%, in exchange for a reduction in the loan balance of $5.0 million. The loan had been set to mature in March 2011 and had two one-year extension options.
On September 1, 2010, the Company sold the Hilton Suites in Auburn Hills, Michigan for $5.1 million, and on September 10, 2010, the Company transferred the Westin O'Hare in Rosemont, Illinois to the special servicer via a consensual deed in lieu of foreclosure, which resulted in a gain of $56.2 million in the third quarter and offset a previous impairment taken on the asset in 2009 to the level of non-recourse debt on the property.
On September 3, 2010, the Company entered into an "at-the-market" (ATM) program with JMP Securities to sell from time to time up to $50 million in common stock. No shares were sold during the third quarter pursuant to this program. Proceeds from the ATM program are expected to be used for general corporate purposes or to reduce outstanding borrowings on the Company's senior credit facility.
On September 22, 2010, the Company issued and sold 3,300,000 shares of its 8.45% Series D Cumulative Preferred Stock (liquidation preference $25.00 per share) for a gross price of $23.178 per share. The proceeds from the offering, along with available cash, were used by the Company to reduce outstanding borrowings under its existing senior credit facility from $250 million to approximately $75 million at quarter end.
SUBSEQUENT EVENTS
On October 19, 2010, the Company converted its $1.8 billion interest rate swap to a fixed rate of 4.09%. Under the previous swap, which expires in 2013, the Company received a fixed rate of 5.84% and paid a variable rate of LIBOR plus 2.64%, subject to a LIBOR floor of 1.25%. Under the terms of the new swap transaction, the Company will continue to receive a fixed rate of 5.84%, but will pay a fixed rate of 4.09%. The new transaction results in locked-in annual interest expense savings of approximately $32 million for the remaining term of the swap.
On October 29, 2010, the Company closed on a $105 million refinancing of the Marriott Gateway in Arlington, Virginia. The new loan, which has a 10-year term and fixed interest rate of 6.26%, replaces a $60.8 million loan set to mature in 2012 with an interest rate of LIBOR plus 4.0%. The excess proceeds were used to further reduce outstanding borrowings on the Company's senior credit facility.
PORTFOLIO REVPAR
As of September 30, 2010, the Company had a portfolio of direct hotel investments consisting of 100 properties classified in continuing operations. During the third quarter, 94 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 100 hotels) and proforma not-under-renovation basis (94 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its direct hotel portfolio. The Company's reporting by region and brand includes the results of all 100 hotels in continuing operations. Details of each category are provided in the tables attached to this release.
Proforma RevPAR increased 6.1% for hotels not under renovation on a 0.7% increase in ADR to $122.88 and a 372 basis point increase in occupancy
Proforma RevPAR increased 5.1% for all hotels on a 0.6% increase in ADR to $124.15 and a 313 basis point increase in occupancy
HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
For the 94 hotels as of September 30, 2010 that were not under renovation, Proforma Hotel EBITDA increased 13.3% to $50.5 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) increased 192 basis points to 25.6%. For all 100 hotels included in continuing operations as of September 30, 2010, Proforma Hotel EBITDA increased 11.7% to $55.2 million and Hotel EBITDA margin increased 173 basis points to 25.4%.
Ashford believes year-over-year Hotel EBITDA and Hotel EBITDA margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company's portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and certain prior-year periods based upon the number of core hotels in the portfolio as of the end of the current period. As Ashford's portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the current portfolio of 100 hotels included in continuing operations are provided in the tables attached to this release.
Monty J. Bennett, Chief Executive Officer, commented, "We have sustained a sharp focus on improving our balance sheet and enhancing liquidity. The transactions completed during and subsequent to the quarter have reduced our leverage ratio, extended our maturities and locked-in significant interest expense savings. Our capital allocation strategies have also created tremendous shareholder value through the repurchase of over 73 million shares of common stock during a period when most of our peers were issuing equity, and the repurchase and subsequent reissuance of preferred stock at substantial premiums.
"Our asset management strategies have also delivered significant results as our strong flowthrough and operating discipline across the portfolio, continue to leverage improving RevPAR trends. While we are encouraged by the continued traction in lodging fundamentals, we will maintain a cautiously optimistic outlook until we see more clarity in job growth, business travel, and the general economic recovery."
INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, November 4, 2010, at 12 p.m. ET. The number to call for this interactive teleconference is (212) 231-2901. A replay of the conference call will be available through Thursday, November 11, 2010, by dialing (402) 977-9140 and entering the confirmation number, 21463991.
The Company will also provide an online simulcast and rebroadcast of its third quarter 2010 earnings release conference call. The live broadcast of Ashford's quarterly conference call will be available online at the Company's website at www.ahtreit.com on Thursday, November 4, 2010, beginning at 12 p.m. ET. The online replay will follow shortly after the call and continue for approximately one year.
Substantially all of our non-current assets consist of real estate investments and debt investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel Operating Profit. FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us. Neither FFO, AFFO, EBITDA, nor Hotel Operating Profit represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, and Hotel Operating Profit to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.
Ashford Hospitality Trust is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, second mortgages, mezzanine loans and sale-leaseback transactions. Additional information can be found on the Company's web site at www.ahtreit.com.
Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such forward-looking statements include, but are not limited to, the timing for closing, the impact of the transaction on our business and future financial condition, our business and investment strategy, our understanding of our competition and current market trends and opportunities and projected capital expenditures. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford's control.
These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in Ashford's filings with the Securities and Exchange Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues. Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.
The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
September 30,
December 31,
2010
2009
(Unaudited)
ASSETS
Investment in hotel properties, net
$ 3,253,095
$ 3,383,759
Cash and cash equivalents
72,120
165,168
Restricted cash
68,113
77,566
Accounts receivable, net
36,682
31,503
Inventories
2,816
2,975
Notes receivable
33,095
55,655
Investment in unconsolidated joint ventures
36,590
20,736
Deferred costs, net
19,832
20,960
Prepaid expenses
15,410
13,234
Interest rate derivatives
125,256
94,645
Other assets
3,492
3,471
Intangible assets, net
2,921
2,988
Due from third-party hotel managers
45,122
41,838
Total assets
$ 3,714,544
$ 3,914,498
LIABILITIES AND EQUITY
Liabilities
Indebtedness
$ 2,489,475
$ 2,772,396
Capital leases payable
49
83
Accounts payable and accrued expenses
98,940
91,387
Dividends payable
7,309
5,566
Unfavorable management contract liabilities
16,810
18,504
Due to related parties
1,929
1,009
Due to third-party hotel managers
2,059
1,563
Other liabilities
7,714
7,932
Total liabilities
2,624,285
2,898,440
Series B-1 Cumulative Convertible Redeemable Preferred stock,
7,447,865 issued and outstanding
75,000
75,000
Redeemable noncontrolling interests in operating partnership
118,720
85,167
Equity:
Shareholders' equity of the Company --
Preferred stock, $0.01 par value, 50,000,000 shares authorized:
Series A Cumulative Preferred Stock, 1,487,900 shares issued and
outstanding at September 30, 2010 and December 31, 2009
15
15
Series D Cumulative Preferred Stock, 8,966,797 shares issued and
outstanding at September 30, 2010 and December 31, 2009
90
57
Common stock, $0.01 par value, 200,000,000 shares authorized,
123,026,246 shares issued, 51,121,677 shares and 57,596,878 shares
outstanding at September 30, 2010 and December 31, 2009
1,230
1,227
Additional paid-in capital
1,513,224
1,436,009
Accumulated other comprehensive loss
(796)
(897)
Accumulated deficit
(405,802)
(412,011)
Treasury stock, at cost (71,904,569 shares and 65,151,981 shares at
September 30, 2010 and December 31, 2009)
(228,422)
(186,424)
Total shareholders' equity of the Company
879,539
837,976
Noncontrolling interests in consolidated joint ventures
17,000
17,915
Total equity
896,539
855,891
Total liabilities and equity
$ 3,714,544
$ 3,914,498
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2010
2009
2010
2009
(Unaudited)
REVENUE
Rooms
$ 168,351
$ 159,798
$ 502,626
$ 494,555
Food and beverage
34,483
33,488
117,518
118,106
Rental income from operating leases
1,185
1,236
3,727
3,830
Other
9,914
10,641
30,636
32,576
Total hotel revenue
213,933
205,163
654,507
649,067
Interest income from notes receivable
349
1,761
1,032
10,397
Asset management fees and other
100
173
312
552
Total Revenue
214,382
207,097
655,851
660,016
EXPENSES
Hotel operating expenses
Rooms
40,304
38,091
117,244
112,758
Food and beverage
26,602
26,220
84,265
85,153
Other direct
6,321
6,340
18,405
18,517
Indirect
63,568
62,347
190,902
192,016
Management fees
8,616
8,270
26,486
26,115
Total hotel operating expenses
145,411
141,268
437,302
434,559
Property taxes, insurance, and other
13,281
14,643
40,715
42,433
Depreciation and amortization
35,836
36,868
108,158
111,941
Impairment charges
694
19,816
(1,263)
149,272
Corporate general and administrative:
Stock/unit-based compensation
1,929
1,139
5,168
3,896
Other general and administrative
5,771
8,118
17,512
19,118
Total Operating Expenses
202,922
221,852
607,592
761,219
OPERATING INCOME (LOSS)
11,460
(14,755)
48,259
(101,203)
Equity in earnings of unconsolidated joint ventures
3
642
1,325
1,863
Interest income
114
56
226
253
Other income
15,874
13,228
47,045
35,140
Interest expense
(34,926)
(32,653)
(104,437)
(97,678)
Amortization of loan costs
(1,261)
(1,825)
(4,251)
(5,818)
Write-off of premiums, loan costs, premiums and exit fees, net
-
-
-
930
Unrealized gain (loss) on derivatives
382
5,525
30,824
(14,166)
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(8,354)
(29,782)
18,991
(180,679)
Income tax benefit (expense)
14
(138)
(395)
(397)
(LOSS) INCOME FROM CONTINUING OPERATIONS
(8,340)
(29,920)
18,596
(181,076)
Income (loss) from discontinued operations
56,005
(3,776)
41,796
(23,318)
NET INCOME (LOSS)
47,665
(33,696)
60,392
(204,394)
Loss from consolidated joint ventures attributable to noncontrolling interests
293
476
1,422
629
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
(6,689)
4,424
(8,610)
25,567
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY
41,269
(28,796)
53,204
(178,198)
Preferred dividends
(4,988)
(4,831)
(14,649)
(14,492)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS
$ 36,281
$ (33,627)
$ 38,555
$ (192,690)
INCOME PER SHARE – BASIC AND DILUTED:
(Loss) income from continuing operations attributable to common shareholders
$ (0.24)
$ (0.47)
$ 0.04
$ (2.39)
Income (loss) from discontinued operations attributable to common shareholders
0.97
(0.05)
0.69
(0.28)
Net income (loss) attributable to common shareholders
$ 0.73
$ (0.52)
$ 0.73
$ (2.67)
Weighted average common shares outstanding – basic and diluted
49,714
65,266
51,251
72,167
Amounts attributable to common shareholders:
(Loss) income from continuing operations, net of tax
$ (6,842)
$ (25,519)
$ 16,959
$ (157,722)
Income (loss) from discontinued operations, net of tax
48,111
(3,277)
36,245
(20,476)
Preferred dividends
(4,988)
(4,831)
(14,649)
(14,492)
Net income (loss) attributable to common shareholders
$ 36,281
$ (33,627)
$ 38,555
$ (192,690)
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
(in thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2010
2009
2010
2009
(Unaudited)
Net income (loss)
$ 47,665
$ (33,696)
$ 60,392
$ (204,394)
Loss from consolidated joint ventures attributable to noncontrolling interests
293
476
1,422
629
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
(6,689)
4,424
(8,610)
25,567
Net income (loss) attributable to the Company
41,269
(28,796)
53,204
(178,198)
Interest income
(105)
(54)
(216)
(245)
Interest expense and amortization of loan costs
36,873
36,064
111,415
108,226
Depreciation and amortization
35,200
38,140
106,841
116,566
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership
6,689
(4,424)
8,610
(25,567)
Income tax expense
96
193
517
585
EBITDA
120,022
41,123
280,371
21,367
Amortization of unfavorable management contract liabilities
(565)
(565)
(1,694)
(1,694)
Gain on sale/disposition of properties
(55,931)
-
(55,931)
-
Write-off of loan costs, premiums and exit fees, net (1)
-
-
-
(930)
Income from interest rate derivatives (2)
(15,879)
(11,279)
(47,120)
(33,203)
Impairment charges
694
19,816
10,805
160,143
Unrealized (gain) loss on derivatives
(382)
(5,525)
(30,824)
14,166
Adjusted EBITDA
$ 47,959
$ 43,570
$ 155,607
$ 159,849
RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO")
(in thousands, except per share amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2010
2009
2010
2009
(Unaudited)
Net income (loss)
$ 47,665
$ (33,696)
$ 60,392
$ (204,394)
Loss from consolidated joint ventures attributable to noncontrolling interests
293
476
1,422
629
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
(6,689)
4,424
(8,610)
25,567
Preferred dividends
(4,988)
(4,831)
(14,649)
(14,492)
Net income (loss) attributable to common shareholders
36,281
(33,627)
38,555
(192,690)
Depreciation and amortization on real estate
35,138
38,071
106,643
116,350
Gain on sale/disposition of properties
(55,931)
-
(55,931)
-
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership
6,689
(4,424)
8,610
(25,567)
FFO available to common shareholders
22,177
20
97,877
(101,907)
Dividends on convertible preferred stock
1,043
1,043
3,128
3,128
Write-off of loan costs, premiums and exit fees, net (1)
-
-
-
(930)
Impairment charges
694
19,816
10,805
160,143
Unrealized (gain) loss on derivatives
(382)
(5,525)
(30,824)
14,166
Adjusted FFO
$ 23,532
$ 15,354
$ 80,986
$ 74,600
Adjusted FFO per diluted share available to common shareholders
$ 0.33
$ 0.18
$ 1.09
$ 0.80
Weighted average diluted shares
72,221
86,747
73,967
93,424
(1) The amounts include write-off of debt premiums of $1,341 for the refinancing of a mortgage loan for the nine months ended September 30, 2009.
(2) Income from interest rate derivatives is excluded from the adjusted EBITDA calculations for all periods presented.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
DEBT SUMMARY
SEPTEMBER 30, 2010
(dollars in thousands)
(Unaudited)
Fixed-Rate
Floating-Rate
Total
Indebtedness
Collateral
Maturity
Interest Rate
Debt
Debt
Debt
Mortgage loan
5 hotels
December 2010
LIBOR + 1.72%
$ -
$ 203,400
(1)
$ 203,400
Mortgage loan
1 hotel
January 2011
8.32%
5,775
(2)
-
5,775
Senior credit facility
Notes receivable
April 2011
LIBOR + 2.75% to 3.5%
-
75,000
(1) (3)
75,000
Mortgage loan
10 hotels
May 2011
LIBOR + 1.65%
-
167,202
(1)
167,202
Mortgage loan
1 hotel
March 2012
LIBOR + 4%
-
60,800
(4)
60,800
Mortgage loan
1 hotel
March 2013
Greater of 6.25% or LIBOR + 3.75%
-
47,500
47,500
Mortgage loan
2 hotel
August 2013
LIBOR + 2.75%
-
151,808
151,808
Mortgage loan
1 hotel
December 2014
Greater of 5.5% or LIBOR + 3.5%
-
19,740
19,740
Mortgage loan
8 hotels
December 2014
5.75%
109,445
-
109,445
Mortgage loan
1 hotel
January 2015
7.78%
3,909
-
3,909
Mortgage loan
10 hotels
July 2015
5.22%
160,014
-
160,014
Mortgage loan
8 hotels
December 2015
5.70%
100,576
-
100,576
Mortgage loan
5 hotels
December 2015
12.26%
147,276
-
147,276
Mortgage loan
5 hotels
February 2016
5.53%
115,321
-
115,321
Mortgage loan
5 hotels
February 2016
5.53%
95,637
-
95,637
Mortgage loan
5 hotels
February 2016
5.53%
82,842
-
82,842
Mortgage loan
1 hotel
April 2017
5.91%
35,000
-
35,000
Mortgage loan
2 hotels
April 2017
5.95%
128,251
-
128,251
Mortgage loan
3 hotels
April 2017
5.95%
260,980
-
260,980
Mortgage loan
5 hotels
April 2017
5.95%
115,600
-
115,600
Mortgage loan
5 hotels
April 2017
5.95%
103,906
-
103,906
Mortgage loan
5 hotels
April 2017
5.95%
158,105
-
158,105
Mortgage loan
7 hotels
April 2017
5.95%
126,466
-
126,466
TIF loan
1 hotel
June 2018
12.85%
8,098
-
8,098
Mortgage loan
1 hotel
April 2034
Greater of 6% or Prime + 1%
-
6,824
6,824
Total debt
$ 1,757,201
$ 732,274
$ 2,489,475
Percentage
70.6%
29.4%
100.0%
Weighted average interest rate at September 30, 2010
6.37%
2.90%
5.35%
Total debt with the effect of interest rate derivatives
$ -
$ 2,489,475
$ 2,489,475
Percentage with the effect of interest rate derivatives
0.0%
100.0%
100.0%
Weighted average interest rate with the effect of interest rate derivatives
0.00%
(5)
2.90%
(5)
2.90%
(5)
(1) Each of these loans has a one-year extension option as of September 30, 2010.
(2) We are currently working with the loan servicer for an extension or a restructure of the loan.
(3) Based on the debt-to-assets ratio defined in the loan agreement, interest rate on this debt was at LIBOR plus 3% as of September 30, 2010.
(4) This loan has two one-year extension options remaining as of September 30, 2010.
(5) These rates are calculated assuming the LIBOR rate stays at the September 30, 2010 level and with the effect of our interest rate derivatives.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
DEBT BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE/LTV TESTS ARE EXERCISED
SEPTEMBER 30, 2010
(in thousands)
(Unaudited)
2010
2011
2012
2013
2014
Thereafter
Total
Mortgage loan secured by 10 hotel properties, Wachovia Floater
$ -
$ -
$ 167,202
$ -
$ -
$ -
$ 167,202
Mortgage loan secured by five hotel properties
-
203,400
-
-
-
-
203,400
Mortgage loan secured by Manchester Courtyard
-
5,775
(1)
-
-
-
-
5,775
Secured credit facility
-
75,000
(2)
-
-
-
-
75,000
Mortgage loan secured by JW Marriott San Francisco
-
-
-
47,500
-
-
47,500
Mortgage loan secured by two hotel properties
-
-
-
151,808
-
-
151,808
Mortgage loan secured by Arlington Marriott
-
-
-
-
60,800
-
60,800
Mortgage loan secured by El Conquistador Hilton
-
-
-
-
19,740
-
19,740
Mortgage loan secured by eight hotel properties, UBS Pool 1
-
-
-
-
109,445
-
109,445
Mortgage loan secured by 10 hotel properties, Merrill Lynch Pool 1
-
-
-
-
-
160,014
160,014
Mortgage loan secured by eight hotel properties, UBS Pool 2
-
-
-
-
-
100,576
100,576
Mortgage loan secured by five hotel properties
-
-
-
-
-
147,276
147,276
Mortgage loan secured by five hotel properties, Merrill Lynch Pool 2
-
-
-
-
-
115,321
115,321
Mortgage loan secured by five hotel properties, Merrill Lynch Pool 3
-
95,637
95,637
Mortgage loan secured by five hotel properties, Merrill Lynch Pool 7
-
82,842
82,842
Mortgage loan secured by Philadelphia Courtyard, Wachovia Stand-Alone
-
-
-
-
-
35,000
35,000
Mortgage loan secured by two hotel properties, Wachovia Fixed Rate Pool 3
-
-
-
-
-
128,251
128,251
Mortgage loan secured by three hotel properties, Wachovia Fixed Rate Pool 7
-
-
-
-
-
260,980
260,980
Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 1
-
-
-
-
-
115,600
115,600
Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 5
-
-
-
-
-
103,906
103,906
Mortgage loan secured by five hotel properties, Wachovia Fixed Rate Pool 6
-
-
-
-
-
158,105
158,105
Mortgage loan secured by seven hotel properties, Wachovia Fixed Rate Pool 2
-
-
-
-
-
126,466
126,466
TIF loan secured by Philadelphia Courtyard
-
-
-
-
-
8,098
8,098
Mortgage loan secured by Houston Hampton Inn
-
-
-
-
-
3,909
3,909
Mortgage loan secured by Jacksonville Residence Inn
-
-
-
-
-
6,824
6,824
$ -
$ 284,175
$ 167,202
$ 199,308
$ 189,985
$ 1,648,805
$ 2,489,475
NOTE: These maturities assume no event of default would occur.
(1) We are currently working with the loan servicer for an extension or a restructure of the loan.
(2) Extensions available but certain coverage tests have to be met.
ASHFORD HOSPITALITY TRUST, INC.
KEY PERFORMANCE INDICATORS - PRO FORMA
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2010
2009
% Variance
2010
2009
% Variance
ALL HOTELS INCLUDED IN
CONTINUING OPERATIONS:
Room revenues (in thousands)
$ 172,305
$ 163,851
5.16%
$ 515,174
$ 507,618
1.49%
RevPAR
$ 89.66
$ 85.27
5.15%
$ 89.92
$ 88.60
1.49%
Occupancy
72.22%
69.09%
3.13%
71.23%
67.33%
3.90%
ADR
$ 124.15
$ 123.41
0.60%
$ 126.24
$ 131.60
-4.07%
Three Months Ended
Nine Months Ended
September 30,
September 30,
2010
2009
% Variance
2010
2009
% Variance
ALL HOTELS NOT UNDER RENOVATION
INCLUDED IN CONTINUING OPERATIONS:
Room revenues (in thousands)
$ 157,009
$ 147,954
6.12%
$ 467,753
$ 455,814
2.62%
RevPAR
$ 89.06
$ 83.93
6.11%
$ 88.95
$ 86.68
2.62%
Occupancy
72.47%
68.75%
3.72%
71.42%
66.77%
4.65%
ADR
$ 122.88
$ 122.07
0.66%
$ 124.55
$ 129.82
-4.06%
NOTES:
(1) The above pro forma table assumes the 94 hotel properties owned and included in continuing operations at September 30, 2010, but not under renovation for the three and nine months ended September 30, 2010, were owned as of the beginning of the periods presented.
(2) Excluded Hotels Under Renovation: Hilton Nassau Bay, Capital Hilton, Sheraton Indianapolis, Courtyard Edison, Embassy Suites Philadelphia Airport, and Embassy Suites Austin Arboretum
(3) As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma tables, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.
ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT
(dollars in thousands)
(Unaudited)
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2010
2009
% Variance
2010
2009
% Variance
REVENUE
Rooms
$ 172,305
$ 163,851
5.2%
$ 515,174
$ 507,618
1.5%
Food and beverage
35,008
34,285
2.1%
119,583
120,406
-0.7%
Other
9,854
10,515
-6.3%
30,334
32,147
-5.6%
Total hotel revenue
217,167
208,651
4.1%
665,091
660,171
0.7%
EXPENSES
Rooms
41,316
39,039
5.8%
120,225
115,719
3.9%
Food and beverage
27,034
26,753
1.1%
85,708
86,738
-1.2%
Other direct
6,351
6,396
-0.7%
18,476
18,692
-1.2%
Indirect
64,990
63,404
2.5%
192,234
193,895
-0.9%
Management fees, includes base and incentive fees
8,793
8,789
0.0%
29,748
29,137
2.1%
Total hotel operating expenses
148,484
144,381
2.8%
446,391
444,181
0.5%
Property taxes, insurance, and other
13,501
14,870
-9.2%
41,296
43,091
-4.2%
HOTEL OPERATING PROFIT (Hotel EBITDA)
55,182
49,400
11.7%
177,404
172,899
2.6%
Hotel EBITDA Margin
25.41%
23.68%
1.73%
26.67%
26.19%
0.48%
Minority interest in earnings of consolidated joint ventures
1,177
1,139
3.3%
4,308
4,548
-5.3%
HOTEL OPERATING PROFIT (Hotel EBITDA),
excluding minority interest in joint ventures
$ 54,005
$ 48,261
11.9%
$ 173,096
$ 168,351
2.8%
NOTE: The above pro forma table assumes the 100 hotel properties owned and included in continuing operations at September 30, 2010 were owned as of the beginning of the periods presented.
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2010
2009
% Variance
2010
2009
% Variance
REVENUE
Rooms
$ 157,009
$ 147,954
6.1%
$ 467,753
$ 455,814
2.6%
Food and beverage
30,795
30,306
1.6%
104,697
105,262
-0.5%
Other
9,038
9,488
-4.7%
27,643
29,173
-5.2%
Total hotel revenue
196,842
187,748
4.8%
600,093
590,249
1.7%
EXPENSES
Rooms
37,442
35,187
6.4%
108,706
103,992
4.5%
Food and beverage
23,707
23,505
0.9%
75,194
75,841
-0.9%
Other direct
5,929
5,945
-0.3%
17,223
17,231
0.0%
Indirect
58,986
57,117
3.3%
174,363
174,653
-0.2%
Management fees, includes base and incentive fees
8,165
8,098
0.8%
27,741
26,848
3.3%
Total hotel operating expenses
134,229
129,852
3.4%
403,227
398,565
1.2%
Property taxes, insurance, and other
12,134
13,361
-9.2%
37,115
38,228
-2.9%
HOTEL OPERATING PROFIT (Hotel EBITDA)
50,479
44,535
13.3%
159,751
153,456
4.1%
Hotel EBITDA Margin
25.64%
23.72%
1.92%
26.62%
26.00%
0.62%
Minority interest in earnings of consolidated joint ventures
1,177
1,139
3.3%
4,308
4,548
-5.3%
HOTEL OPERATING PROFIT (Hotel EBITDA),
excluding minority interest in joint ventures
$ 49,302
$ 43,396
13.6%
$ 155,443
$ 148,908
4.4%
NOTES:
(1) The above pro forma table assumes the 94 hotel properties owned and included in continuing operations at September 30, 2010, but not under renovation during the three and nine months ended September 30, 2010 were owned as of the beginning of the periods presented.
(2) Excluded Hotels Under Renovation: Hilton Nassau Bay, Capital Hilton, Sheraton Indianapolis, Courtyard Edison, Embassy Suites Philadelphia Airport, and Embassy Suites Austin Arboretum
(3) As the Company's Courtyard by Marriott hotel in Philadelphia, Pennsylvania, is leased to a third-party tenant on a triple-net lease basis, the Company only records rental income related to this operating lease for GAAP purposes. However, in the above pro forma tables, all room revenues related to this hotel are reflected, which is consistent with the Company's other hotels.
ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL REVPAR BY REGION
(Unaudited)
Three Months Ended
Nine Months Ended
Number of
Number of
September 30,
September 30,
Region
Hotels
Rooms
2010
2009
% Change
2010
2009
% Change
Pacific (1)
21
5,205
$ 112.25
$ 103.78
8.2%
$ 99.44
$ 93.50
6.4%
Mountain (2)
8
1,704
71.41
67.81
5.3%
79.02
77.78
1.6%
West North Central (3)
3
690
83.36
81.31
2.5%
76.45
72.16
5.9%
West South Central (4)
10
2,086
78.12
79.65
-1.9%
84.55
86.09
-1.8%
East North Central (5)
7
1,103
71.63
69.32
3.3%
67.61
65.68
2.9%
East South Central (6)
2
236
96.21
74.87
28.5%
88.62
78.67
12.6%
Middle Atlantic (7)
9
2,481
89.90
85.59
5.0%
87.55
84.60
3.5%
South Atlantic (8)
38
7,728
84.62
81.37
4.0%
92.90
95.25
-2.5%
New England (9)
2
159
84.94
73.26
15.9%
78.11
68.41
14.2%
Total Portfolio
100
21,392
$ 89.66
$ 85.27
5.1%
$ 89.92
$ 88.60
1.5%
(1) Includes Alaska, California, Oregon, and Washington
(2) Includes Nevada, Arizona, New Mexico, and Utah
(3) Includes Minnesota and Kansas
(4) Includes Texas
(5) Includes Ohio and Indiana
(6) Includes Kentucky and Alabama
(7) Includes New York, New Jersey, and Pennsylvania
(8) Includes Virginia, Florida, Georgia, Maryland, District of Columbia, and North Carolina
(9) Includes Connecticut
NOTES:
(1) The above pro forma table assumes th
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