DRH
$5.05
Diamondrock Hospitality
($.19)
(3.63%)
Earnings Details
2nd Quarter June 2020
Thursday, August 06, 2020 4:05:00 PM
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Summary

Diamondrock Hospitality (DRH) Recent Earnings

Diamondrock Hospitality (DRH) reported a 2nd Quarter June 2020 loss of $0.20 per share on revenue of $20.4 million. The consensus estimate was a loss of $0.25 per share on revenue of $28.8 million. Revenue fell 92.1% compared to the same quarter a year ago.

Diamondrock Hospitality Co is a lodging-focused real estate investment trust. The Company owns approximately 27 hotels with 10,552 rooms.

Results
Reported Earnings
($0.20)
Earnings Whisper
-
Consensus Estimate
($0.25)
Reported Revenue
$20.4 Mil
Revenue Estimate
$28.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

DiamondRock Hospitality Company Reports Second Quarter 2020 Results

BETHESDA, Md., Aug. 6, 2020 /PRNewswire/ -- DiamondRock Hospitality Company (the "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 June 30, 2020.

"As we expected, the second quarter was significantly impacted by the dramatic decline in travel demand caused by COVID-19.  I want to extend my gratitude to our team for continuing to execute on our action plan and identifying new and efficient ways to operate our hotels.  These actions resulted in mitigating our cash burn rate to beat our initial expectations.  Additionally, DiamondRock improved its already solid balance sheet by successfully closing on two key agreements with lenders to obtain financial covenant waivers on corporate debt and extend our only mortgage maturity in 2020 to 2022," said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. "We eagerly look forward to emerging on the other side of this pandemic and welcoming back customers to our hotels.  In the meantime, we will continue to prioritize the health and safety of our employees and guests and take prudent steps to reopen properties as demand improves."

Second Quarter 2020 Highlights:

  • Hotel Operations: The Company suspended operations at 20 of its 30 previously operating hotels (which excludes Frenchman's Reef) for at least some portion of the second quarter under governmental orders or due to lack of travel demand. The Company reopened 12 hotels during the second quarter as governmental orders were modified or lifted and leisure demand increased. Subsequent to June 30, 2020, the Company reopened three additional hotels and now has 25 of its 30 operating hotels open.
  • Net Loss: Net loss was $73.4 million and loss per diluted share was $0.36.
  • Comparable Revenues: Comparable total revenues decreased 92.1% from the comparable period of 2019.
  • Comparable RevPAR: RevPAR decreased 92.8% from the comparable period of 2019.
  • Adjusted EBITDA: Adjusted EBITDA was ($37.0) million, a decrease of $118.1 million from 2019.
  • Adjusted FFO: Adjusted FFO was ($41.0) million and Adjusted FFO per diluted share was ($0.20).
  • Debt Modifications: The Company successfully completed amendments to the agreements for its $400 million revolving credit facility and $400 million in unsecured term loans, which provided waivers of financial covenants through the first quarter of 2021. The Company also refinanced its only material near-term debt maturity, the mortgage loan secured by the Salt Lake City Marriott Downtown.
  • Liquidity: As of June 30, 2020, the Company's liquidity was $363.9 million, comprised of $87.8 million of unrestricted corporate cash, $25.1 million of unrestricted cash at its hotels and $251.0 million of capacity on the Company's revolving credit facility.

Please see "Non-GAAP Financial Measures" attached to this press release for an explanation of the terms "EBITDAre," "Adjusted EBITDA," "Hotel Adjusted EBITDA Margin," "FFO" and "Adjusted FFO" and a reconciliation of these measures to net income. Comparable operating results exclude Frenchman's Reef for all periods presented due to the closure of the hotel.  See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts.

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


Second Quarter



2020


2019

Change

Comparable Operating Results (1)





ADR

$175.74



$250.23


(29.8)

%

Occupancy

8.5

%


83.1

%

(74.6)

%

RevPAR

$14.99



$208.02


(92.8)

%

Total RevPAR

$23.33



$295.39


(92.1)

%

Revenues

$20.4 million


$257.9 million

(92.1)

%

Hotel Adjusted EBITDA

($30.4) million


$88.3 million

(134.4)

%

Hotel Adjusted EBITDA Margin

(148.99)

%


34.26

%

(18,325) basis points

Available Rooms

873,676



873,145


531 rooms






Actual Operating Results





Revenues

$20.4 million


$257.9 million

(92.1)

%

Net loss/income

($73.4) million


$29.1 million

($102.5) million

Loss/Earnings per diluted share

($0.36)



$0.14


($0.50)


Adjusted EBITDA

($37.0) million


$81.1 million

($118.1) million

Adjusted FFO

($41.0) million


$65.1 million

($106.1) million

Adjusted FFO per diluted share

($0.20)


$0.32


($0.52)




(1)

Comparable operating results exclude Frenchman's Reef for all periods presented and does not adjust for hotels that have suspended operations.

For the six months ended June 30, 2020, the Company reported the following:


Year to Date



2020


2019

Change

Comparable Operating Results (1)





ADR

$211.29



$234.48


(9.9)

%

Occupancy

33.8

%


78.2

%

(44.4)

%

RevPAR

$71.48



$183.30


(61.0)

%

Total RevPAR

$108.95



$265.08


(58.9)

%

Revenues

$190.4 million


$460.3 million

(58.6)

%

Hotel Adjusted EBITDA

($12.5) million


$135.5 million

(109.2)

%

Hotel Adjusted EBITDA Margin

(6.59)

%


29.43

%

(3,602) basis points

Available Rooms

1,747,276



1,736,409


10,867 rooms






Actual Operating Results





Revenues

$190.4 million


$460.3 million

(58.6)

%

Net loss/income

($108.1) million


$38.1 million

($146.2) million

Loss/Earnings per diluted share

($0.53)



$0.19


($0.72)


Adjusted EBITDA

($25.2) million


$130.2 million

($155.4) million

Adjusted FFO

($32.6) million


$107.1 million

($139.7) million

Adjusted FFO per diluted share

($0.16)



$0.53


($0.69)




(1)

Comparable operating results exclude Frenchman's Reef for all periods presented and does not adjust for hotels that have suspended operations.

COVID-19 Pandemic

In response to the COVID-19 pandemic, the Company has taken the following aggressive actions at the property and corporate levels.

  • In coordination with its hotel operators, the Company suspended operations at 20 of its hotels throughout March and April 2020. The Company reopened 12 hotels during the second quarter. Subsequent to June 30, 2020, the Company reopened three additional hotels and now has 25 of its 30 previously operating hotels open.
  • The Company has developed and implemented action plans with its hotel operators to significantly reduce operating costs at each of its hotels.
  • The Company has canceled or deferred over 65% of its capital expenditures planned for the remainder of 2020.
  • The Company has paused the rebuild of Frenchman's Reef, which the Company had expected to open as two separate hotels in late 2020.
  • The Company has suspended its quarterly dividend commencing with the first quarter dividend that would have been paid in April 2020. The Company expects to pay a dividend in January 2021 sufficient to cover 100% of its taxable income, if any, for the year ending December 31, 2020.
  • On June 9, 2020, the Company finalized amendments to the credit agreements for its $400 million revolving credit facility and $400 million in unsecured term loans. The amendments include a waiver of the quarterly-tested financial covenants through the first quarter of 2021 and modified covenants thereafter through the fourth quarter of 2021.
  • On June 25, 2020, the Company refinanced its only material near-term debt maturity by closing on a $48.0 million mortgage loan secured by the Salt Lake City Marriott Downtown. The loan proceeds were used to repay the existing $52.5 million mortgage loan secured by the Salt Lake City Marriott Downtown that was scheduled to mature in November 2020, with the balance funded by corporate cash on hand.

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

Cavallo Point, The Lodge at the Golden Gate


142


3/17/2020


6/24/2020

Courtyard Denver Downtown


177


3/20/2020


6/1/2020

Vail Marriott Mountain Resort & Spa


344


3/20/2020


6/12/2020

The Lodge at Sonoma Renaissance Resort & Spa


182


3/21/2020


7/1/2020

JW Marriott Denver at Cherry Creek


199


3/22/2020


6/1/2020

Havana Cabana Key West


106


3/23/2020


6/1/2020

Hilton Boston Downtown/Faneuil Hall


403


3/23/2020


7/31/2020

Hotel Emblem San Francisco


96


3/23/2020


6/26/2020

Barbary Beach House Key West


184


3/23/2020


6/1/2020

The Landing Resort & Spa


82


3/23/2020


6/5/2020

Westin Boston Waterfront


793


3/25/2020


-

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 New York City


725


3/29/2020


-

Hilton Burlington


258


3/31/2020


7/16/2020

Hotel Palomar Phoenix


242


3/31/2020


6/21/2020

Orchards Inn Sedona


70


3/31/2020


5/15/2020

The Gwen Chicago


311


3/31/2020


6/10/2020

Renaissance Charleston Historic District


166


4/6/2020


5/14/2020

Chicago Marriott Downtown Magnificent Mile


1,200


4/10/2020


-

The timing of reopening the five remaining hotels will depend primarily on federal, state, and local government guidance, health official recommendations and market demand. The Company currently anticipates reopening these hotels later this year.  The Company will continue to aggressively asset manage its hotels and carefully assess staffing needs, cleanliness and safety protocols, business mix and other initiatives.

Capital Expenditures

The Company invested approximately $12.2 million and $31.8 million in capital improvements at its operating hotels during the three and six months ended June 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 spend approximately $50.0 million on capital improvements at its operating hotels during 2020.  Additionally, the Company has paused the rebuild of Frenchman's Reef. The Company spent approximately $37.7 million on the rebuild of Frenchman's Reef during the six months ended June 30, 2020.

Balance Sheet and Liquidity

As of June 30, 2020, the Company's liquidity was $363.9 million, comprised of $87.8 million of unrestricted corporate cash, $25.1 million of unrestricted cash at its hotels and $251.0 million of capacity on its senior unsecured credit facility.  As of June 30, 2020, the Company had $1.2 billion of total debt outstanding, which consisted of $605.0 million of property-specific mortgage debt, $400.0 million of unsecured term loans and $149.0 million outstanding on its $400.0 million senior unsecured credit facility.  The Company has no material debt maturities until 2022.

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.

Earnings Call

The Company will host a conference call to discuss its second quarter results on Friday, August 7, 2020, at 9:00 a.m. Eastern Time (ET).  To participate in the live call, investors are invited to dial 844-287-6622 (for domestic callers) or 530-379-4559 (for international callers).  The participant passcode is 4445689. A live webcast of the call will be available via the investor relations section of DiamondRock Hospitality Company's website at www.drhc.com or www.earnings.com. A replay of the webcast will also be archived on the website for one week.

About the Company

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in 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.  For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com.

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," "forecast," "plan" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made, including statements related to the expected duration of closure of Frenchman's Reef. These risks include, but are not limited to: the adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; national and local economic and business conditions, including the potential for additional terrorist attacks, that will affect occupancy rates at the Company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the Company's indebtedness and its ability to obtain covenant waivers on its credit agreements for its senior unsecured credit facility and unsecured term loans; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

 

DIAMONDROCK HOSPITALITY COMPANY 
CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)



June 30, 2020


December 31, 2019

ASSETS

(unaudited)



Property and equipment, net

$

3,029,905



$

3,026,769


Right-of-use assets

97,242



98,145


Restricted cash

36,359



57,268


Due from hotel managers

62,129



91,207


Prepaid and other assets (1)

24,795



29,853


Cash and cash equivalents

87,837



122,524


Total assets

$

3,338,267



$

3,425,766


LIABILITIES AND EQUITY




Liabilities:




Mortgage and other debt, net of unamortized debt issuance costs

$

605,034



$

616,329


Unsecured term loans, net of unamortized debt issuance costs

398,267



398,770


Senior unsecured credit facility

148,985



75,000


Total debt

1,152,286



1,090,099






Deferred income related to key money, net

11,144



11,342


Unfavorable contract liabilities, net

66,412



67,422


Deferred rent

54,186



52,012


Lease liabilities

103,588



103,625


Due to hotel managers

80,524



72,445


Distributions declared and unpaid

138



25,815


Accounts payable and accrued expenses (2)

63,424



81,944


Total liabilities

1,531,702



1,504,704


Equity:




Preferred stock, $0.01 par value; 10,000,000 shares authorized; no shares issued and outstanding




Common stock, $0.01 par value; 400,000,000 shares authorized; 199,516,435 and 200,207,795 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively

1,995



2,002


Additional paid-in capital

2,082,601



2,089,349


Accumulated deficit

(286,198)



(178,861)


Total stockholders' equity

1,798,398



1,912,490


Noncontrolling interests

8,167



8,572


Total equity

1,806,565



1,921,062


Total liabilities and equity

$

3,338,267



$

3,425,766




(1)

Includes $10.7 million of insurance receivables as of December 31, 2019, $11.1 million and $9.8 million of prepaid expenses and $13.7 million and $9.4 million of other assets as of June 30, 2020 and December 31, 2019, respectively.



(2) 

Includes $28.7 million of deferred tax liabilities, $17.8 million and $18.9 million of accrued property taxes, $5.2 million and $13.1 million of accrued capital expenditures and $11.7 million and $21.2 million of other accrued liabilities as of June 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 June 30,


Six Months Ended June 30,


2020


2019


2020


2019

Revenues:








Rooms

$

13,099



$

181,629



$

124,900



$

318,282


Food and beverage

3,038



60,714



46,943



111,179


Other

4,242



15,575



18,531



30,832


Total revenues

20,379



257,918



190,374



460,293


Operating Expenses:








Rooms

7,143



42,922



42,796



81,741


Food and beverage

4,715



36,456



35,802



69,606


Management fees

(78)



7,317



3,399



12,657


Franchise fees

793



7,208



6,589



13,067


Other hotel expenses

40,720



81,319



118,563



156,798


Depreciation and amortization

28,783



29,335



58,883



58,331


Corporate expenses

6,826



7,403



12,383



14,467


Business interruption insurance income







(8,822)


Total operating expenses, net

88,902



211,960



278,415



397,845










Interest and other (income) expense, net

(150)



(105)



249



(408)


Interest expense

11,629



12,418



32,847



24,080


  Total other expenses, net

11,479



12,313



33,096



23,672


(Loss) income before income taxes

(80,002)



33,645



(121,137)



38,776


Income tax benefit (expense)

6,615



(4,571)



13,058



(722)


Net (loss) income

(73,387)



29,074



(108,079)



38,054


Less:  Net loss (income) attributable to noncontrolling interests

605



(114)



738



(149)


Net (loss) income attributable to common stockholders

$

(72,782)



$

28,960



$

(107,341)



$

37,905


(Loss) earnings per share:








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

$

(0.36)



$

0.14



$

(0.53)



$

0.19


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

$

(0.36)



$

0.14



$

(0.53)



$

0.19










Weighted-average number of common shares outstanding:








Basic

200,797,317



202,405,507



201,002,576



202,610,178

Diluted

200,797,317



202,900,639



201,002,576



203,106,490

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 June 30,


Six Months Ended June 30,


2020


2019


2020


2019

Net (loss) income

$

(73,387)



$

29,074



$

(108,079)



$

38,054


Interest expense

11,629



12,418



32,847



24,080


Income tax (benefit) expense

(6,615)



4,571



(13,058)



722


Real estate related depreciation and amortization

28,783



29,335



58,883



58,331


EBITDA/EBITDAre

(39,590)



75,398



(29,407)



121,187


Non-cash lease expense and other amortization

1,708



1,784



3,458



3,499


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

122



3,700



(175)



5,067


Hotel manager transition costs (2)

334



171



561



468


Severance costs (3)

393





393




Adjusted EBITDA

$

(37,033)



$

81,053



$

(25,170)



$

130,221




(1)

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



(2)

Three months ended June 30, 2020 consists of manager transition costs of $0.3 million related to the Westin Boston Waterfront Hotel.  Six months ended June 30, 2020 consists of manager transition costs of $1.1 million related to the L'Auberge de Sedona, Orchards Inn Sedona and the Westin Boston Waterfront Hotel and a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement.  Three months ended June 30, 2019 consist of $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center. Six months ended June 30, 2019 consists of $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center.



(3)

Three and six months ended June 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 June 30,


Six Months Ended June 30,


2020


2019


2020


2019

Net (loss) income

$

(73,387)



$

29,074



$

(108,079)



$

38,054


Interest expense

11,629



12,418



32,847



24,080


Income tax (benefit) expense

(6,615)



4,571



(13,058)



722


Real estate related depreciation and amortization

28,783



29,335



58,883



58,331


EBITDA

(39,590)



75,398



(29,407)



121,187


Corporate expenses

6,826



7,403



12,383



14,467


Interest and other (income) expense, net

(150)



(105)



249



(408)


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

122



3,700



(175)



5,067


Hotel EBITDA

(32,792)



86,396



(16,950)



140,313


Non-cash lease expense and other amortization

1,708



1,784



3,458



3,499


Severance costs

393





393




Hotel manager transition costs (2)

334



171



561



468


Hotel Adjusted EBITDA

$

(30,357)



$

88,351



$

(12,538)



$

144,280




(1)

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



(2) 

Three months ended June 30, 2020 consists of manager transition costs of $0.3 million related to the Westin Boston Waterfront Hotel.  Six months ended June 30, 2020 consists of manager transition costs of $1.1 million related to the L'Auberge de Sedona, Orchards Inn Sedona and the Westin Boston Waterfront Hotel and a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement.  Three months ended June 30, 2019 consist of $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center. Six months ended June 30, 2019 consists of $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center.



(3)

Three and six months ended June 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 June 30,


Six Months Ended June 30,


2020


2019


2020


2019

Net (loss) income

$

(73,387)



$

29,074



$

(108,079)



$

38,054


Real estate related depreciation and amortization

28,783



29,335



58,883



58,331


FFO

(44,604)



58,409



(49,196)



96,385


Non-cash lease expense and other amortization

1,708



1,784



3,458



3,499


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

122



3,700



(175)



5,067


Hotel manager transition costs (2)

334



171



561



468


Severance costs (3)

393





393




Fair value adjustments to interest rate swaps

1,000



1,075



12,312



1,647


Adjusted FFO

$

(41,047)



$

65,139



$

(32,647)



$

107,066


Adjusted FFO per diluted share

$

(0.20)



$

0.32



$

(0.16)



$

0.53




(1) 

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



(2)  

Three months ended June 30, 2020 consists of manager transition costs of $0.3 million related to the Westin Boston Waterfront Hotel.  Six months ended June 30, 2020 consists of manager transition costs of $1.1 million related to the L'Auberge de Sedona, Orchards Inn Sedona and the Westin Boston Waterfront Hotel and a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement.  Three months ended June 30, 2019 consist of $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center. Six months ended June 30, 2019 consists of $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center.



(3)

Three and six months ended June 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 due to the closure of the hotel (in thousands):         


Three Months Ended June 30,


Six Months Ended June 30,


2020


2019


2020


2019

Revenues

$

20,379



$

257,918



$

190,374



$

460,293


Hotel revenues from Frenchman's Reef








Comparable Revenues

$

20,379



$

257,918



$

190,374



$

460,293










Hotel Adjusted EBITDA

$

(30,357)



$

88,351



$

(12,538)



$

144,280


Hotel Adjusted EBITDA from Frenchman's Reef

(6)



2





(8,800)


Comparable Hotel Adjusted EBITDA

$

(30,363)



$

88,353



$

(12,538)



$

135,480










Hotel Adjusted EBITDA Margin

(148.96)

%


34.26

%


(6.59)

%


31.35

%

Comparable Hotel Adjusted EBITDA Margin

(148.99)

%


34.26

%


(6.59)

%


29.43

%

Selected Quarterly Comparable Operating Information

The following table is presented to provide investors with selected quarterly comparable operating information.  The operating information excludes Frenchman's Reef for all periods.


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 June 30, 2020

(in thousands)

Enterprise Value






Common equity capitalization (at June 30, 2020 closing price of $5.53/share)


$

1,114,580

Consolidated debt (face amount)


1,156,954

Cash and cash equivalents


(87,837)

Total enterprise value


$

2,183,697

Share Reconciliation






Common shares outstanding


199,516

Unvested restricted stock held by management and employees


573

Share grants under deferred compensation plan


1,462

Combined shares outstanding


201,551

 

Debt Summary as of June 30, 2020

(dollars in thousands)

Loan


Interest Rate as of
June 30, 2020


Term


Outstanding
Principal


Maturity

Marriott Salt Lake City Downtown


LIBOR + 3.25 (1)


Variable


$

48,000



January 2022 (2)

Westin Washington D.C. City Center


3.99%


Fixed


59,427



January 2023

The Lodge at Sonoma Renaissance Resort & Spa


3.96%


Fixed


26,675



April 2023

Westin San Diego


3.94%


Fixed


61,064



April 2023

Courtyard New York Manhattan / Midtown East


4.40%


Fixed


80,330



August 2024

Worthington Renaissance Fort Worth Hotel


3.66%


Fixed


80,067



May 2025

JW Marriott Denver Cherry Creek


4.33%


Fixed


60,659



July 2025

Westin Boston Waterfront


4.36%


Fixed


188,804



November 2025

New Market Tax Credit loan (3)


5.17%


Fixed


2,943



December 2020

     Unamortized debt issuance costs






(2,935)




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






605,034













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






(1,733)




Unsecured term loans, net of unamortized debt issuance costs




398,267













Senior unsecured credit facility


LIBOR + 2.40% (6)


Variable


148,985



July 2023 (7)










Total debt, net of unamortized debt issuance costs






$

1,152,286




Weighted-average interest rate of fixed rate debt


4.23

%







Total weighted-average interest rate


3.80

%










(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 – April


Number
of Rooms

ADR


Occupancy


RevPAR


April 2020

April 2019

B/(W) 2019


April 2020

April 2019

B/(W) 2019


April 2020

April 2019

B/(W) 2019














Atlanta Marriott Alpharetta

318


$

154.89


$

162.01


(4.4)

%


1.0

%

78.8

%

(77.8)

%


$

1.57


$

127.65


(98.8)

%

Bethesda Marriott Suites

272


$

158.67


$

186.41


(14.9)

%


2.2

%

80.7

%

(78.5)

%


$

3.46


$

150.45


(97.7)

%

Courtyard New York Manhattan/Midtown East

321


$

120.21


$

272.33


(55.9)

%


46.9

%

96.2

%

(49.3)

%


$

56.43


$

262.01


(78.5)

%

Kimpton Shorebreak Hotel Huntington Beach

157


$

94.71


$

254.27


(62.8)

%


65.6

%

73.8

%

(8.2)

%


$

62.11


$

187.71


(66.9)

%

L'Auberge de Sedona Resort & Spa

88


$

470.88


$

797.91


(41.0)

%


9.1

%

87.2

%

(78.1)

%


$

42.99


$

695.45


(93.8)

%

Salt Lake City Marriott Downtown

510


$

156.77


$

163.98


(4.4)

%


1.4

%

67.0

%

(65.6)

%


$

2.18


$

109.94


(98.0)

%

Westin Fort Lauderdale Beach Resort

433


$

131.73


$

252.92


(47.9)

%


5.3

%

89.7

%

(84.4)

%


$

6.92


$

226.76


(96.9)

%

Westin San Diego

436


$

172.62


$

202.87


(14.9)

%


40.3

%

78.2

%

(37.9)

%


$

69.49


$

158.70


(56.2)

%

Westin Washington D.C. City Center

410


$

177.89


$

245.73


(27.6)

%


1.1

%

91.0

%

(89.9)

%


$

1.94


$

223.73


(99.1)

%

Worthington Renaissance Fort Worth Hotel

504


$

107.66


$

196.01


(45.1)

%


6.9

%

81.3

%

(74.4)

%


$

7.45


$

159.40


(95.3)

%

Total Open for Entire Period - 10 Hotels

3,449


$

139.74


$

230.66


(39.4)

%


14.9

%

81.9

%

(67.0)

%


$

20.89


$

188.99


(88.9)

%














Total Closed for Entire Period - 20 Hotels

6,151


$


$

251.77


(100.0)

%


%

82.2

%

(82.2)

%


$


$

206.88


(100.0)

%














Portfolio Total (1)

9,600


$

122.82


$

244.20


(49.7)

%


5.4

%

82.1

%

(76.7)

%


$

6.67


$

200.45


(96.7)

%



(1)

Amounts exclude the operating results of Frenchman's Reef for all periods presented.

 


Operating Statistics – May


Number
of Rooms

ADR


Occupancy


RevPAR


May 2020

May 2019

B/(W) 2019


May 2020

May 2019

B/(W) 2019


May 2020

May 2019

B/(W) 2019



























Atlanta Marriott Alpharetta

318


$

136.10


$

157.94


(13.8)

%


1.9

%

74.3

%

(72.4)

%


$

2.62


$

117.31


(97.8)

%

Bethesda Marriott Suites

272


$

160.17


$

191.12


(16.2)

%


2.3

%

83.7

%

(81.4)

%


$

3.61


$

160.02


(97.7)

%

Courtyard New York Manhattan/Midtown East

321


$

145.36


$

270.70


(46.3)

%


93.6

%

97.6

%

(4.0)

%


$

136.10


$

264.25


(48.5)

%

Kimpton Shorebreak Huntington Beach Resort

157


$

261.12


$

259.80


0.5

%


32.2

%

77.2

%

(45.0)

%


$

84.02


$

200.65


(58.1)

%

L'Auberge de Sedona Resort & Spa

88


$

660.62


$

656.42


0.6

%


30.7

%

89.7

%

(59.0)

%


$

202.93


$

588.56


(65.5)

%

Salt Lake City Marriott Downtown

510


$

118.25


$

161.04


(26.6)

%


4.0

%

71.2

%

(67.2)

%


$

4.71


$

114.71


(95.9)

%

Westin Fort Lauderdale Beach Resort

433


$

150.42


$

176.07


(14.6)

%


14.4

%

80.6

%

(66.2)

%


$

21.73


$

141.97


(84.7)

%

Westin San Diego

436


$

169.01


$

195.65


(13.6)

%


29.2

%

77.9

%

(48.7)

%


$

49.32


$

152.35


(67.6)

%

Westin Washington D.C. City Center

410


$

134.90


$

250.12


(46.1)

%


1.3

%

91.2

%

(89.9)

%


$

1.75


$

228.01


(99.2)

%

Worthington Renaissance Fort Worth Hotel

504


$

137.15


$

198.00


(30.7)

%


9.1

%

72.2

%

(63.1)

%


$

12.44


$

142.95


(91.3)

%

Total Open for Entire Period - 10 Hotels

3,449


$

179.36


$

217.16


(17.4)

%


18.9

%

80.2

%

(61.3)

%


$

33.88


$

174.22


(80.6)

%














Total Partially Open During Period - 2 Hotels

236


$

191.44


$

305.11


(37.3)

%


10.1

%

87.9

%

(77.8)

%


$

19.26


$

268.12


(92.8)

%














Total Closed for Entire Period - 18 Hotels

5,915


$


$

274.12


(100.0)

%


%

81.5

%

(81.5)

%


$


$

223.38


(100.0)

%














Portfolio Total (1)

9,600


$

182.39


$

254.71


(28.4)

%


7.1

%

81.2

%

(74.1)

%


$

12.93


$

206.81


(93.7)

%



 (1)

Amounts exclude the operating results of Frenchman's Reef for all periods presented.

 


Operating Statistics – June


Number
of Rooms

ADR


Occupancy


RevPAR


June 2020

June 2019

B/(W) 2019


June 2020

June 2019

B/(W) 2019


June 2020

June 2019

B/(W) 2019



























Atlanta Marriott Alpharetta

318


$

116.69


$

161.39


(27.7)

%


17.5

%

71.3

%

(53.8)

%


$

20.40


$

115.02


(82.3)

%

Barbary Beach House Key West

184


$

219.64


$

207.73


5.7

%


28.8

%

87.0

%

(58.2)

%


$

63.23


$

180.83


(65.0)

%

Bethesda Marriott Suites

272


$

125.72


$

187.51


(33.0)

%


8.7

%

85.5

%

(76.8)

%


$

10.89


$

160.35


(93.2)

%

Courtyard Denver Downtown

177


$

105.50


$

230.10


(54.2)

%


17.0

%

88.0

%

(71.0)

%


$

17.96


$

202.50


(91.1)

%

Courtyard New York Manhattan/Midtown East

321


$

149.07


$

279.81


(46.7)

%


86.2

%

98.0

%

(11.8)

%


$

128.49


$

274.11


(53.1)

%

Havana Cabana Key West

106


$

196.11


$

172.44


13.7

%


49.7

%

90.0

%

(40.3)

%


$

97.56


$

155.14


(37.1)

%

JW Marriott Denver Cherry Creek

199


$

206.16


$

279.70


(26.3)

%


20.5

%

87.5

%

(67.0)

%


$

42.30


$

244.71


(82.7)

%

Kimpton Shorebreak Huntington Beach Resort

157


$

265.80


$

261.61


1.6

%


51.5

%

85.6

%

(34.1)

%


$

137.02


$

223.95


(38.8)

%

L'Auberge de Sedona Resort & Spa

88


$

580.46


$

534.13


8.7

%


70.3

%

74.3

%

(4.0)

%


$

408.08


$

396.95


2.8

%

Orchards Inn Sedona

70


$

185.07


$

202.82


(8.8)

%


48.0

%

83.0

%

(35.0)

%


$

88.75


$

168.34


(47.3)

%

Renaissance Charleston Historic District

166


$

186.05


$

261.51


(28.9)

%


34.6

%

88.7

%

(54.1)

%


$

64.43


$

231.90


(72.2)

%

Salt Lake City Marriott Downtown

510


$

129.15


$

175.24


(26.3)

%


8.5

%

80.2

%

(71.7)

%


$

10.93


$

140.52


(92.2)

%

Westin Fort Lauderdale Beach Resort

433


$

139.18


$

156.75


(11.2)

%


35.7

%

71.9

%

(36.2)

%


$

49.63


$

112.73


(56.0)

%

Westin San Diego

436


$

160.35


$

201.25


(20.3)

%


14.1

%

91.5

%

(77.4)

%


$

22.66


$

184.12


(87.7)

%

Westin Washington D.C. City Center

410


$

142.02


$

222.97


(36.3)

%


3.0

%

95.1

%

(92.1)

%


$

4.19


$

212.09


(98.0)

%

Worthington Renaissance Fort Worth Hotel

504


$

166.92


$

182.41


(8.5)

%


18.1

%

79.2

%

(61.1)

%


$

30.16


$

144.48


(79.1)

%

Total Open for Entire Period - 16 Hotels

4,351


$

188.23


$

213.29


(11.7)

%


25.9

%

84.4

%

(58.5)

%


$

48.83


$

180.04


(72.9)

%














Total Partially Open During Period - 6 Hotels

1,217


$

246.53


$

255.25


(3.4)

%


10.7

%

77.9

%

(67.2)

%


$

26.48


$

198.87


(86.7)

%














Total Closed for Entire Period - 8 Hotels

4,032


$


$

289.22


(100.0)

%


%

90.6

%

(90.6)

%


$


$

261.94


(100.0)

%














Portfolio Total (1)

9,600


$

193.92


$

251.62


(22.9)

%


13.1

%

86.2

%

(73.1)

%


$

25.44


$

216.83


(88.3)

%



  (1)

Amounts exclude the operating results of Frenchman's Reef for all periods presented.

 


Operating Statistics – Second Quarter


Number
of Rooms

ADR


Occupancy


RevPAR


2Q 2020

2Q 2019

B/(W) 2019


2Q 2020

2Q 2019

B/(W) 2019


2Q 2020

2Q 2019

B/(W) 2019



























Atlanta Marriott Alpharetta

318


$

120.47


$

160.44


(24.9)

%


6.8

%

74.8

%

(68.0)

%


$

8.14


$

119.97


(93.2)

%

Bethesda Marriott Suites

272


$

137.27


$

188.39


(27.1)

%


4.3

%

83.3

%

(79.0)

%


$

5.96


$

156.97


(96.2)

%

Courtyard New York Manhattan/Midtown East

321


$

141.61


$

274.26


(48.4)

%


75.8

%

97.3

%

(21.5)

%


$

107.33


$

266.76


(59.8)

%

Kimpton Shorebreak Huntington Beach Resort

157


$

190.15


$

258.74


(26.5)

%


49.6

%

78.9

%

(29.3)

%


$

94.27


$

204.07


(53.8)

%

L'Auberge de Sedona Resort & Spa

88


$

594.35


$

669.18


(11.2)

%


36.7

%

83.8

%

(47.1)

%


$

217.83


$

560.63


(61.1)

%

Salt Lake City Marriott Downtown

510


$

128.69


$

167.09


(23.0)

%


4.6

%

72.8

%

(68.2)

%


$

5.93


$

121.65


(95.1)

%

Westin Fort Lauderdale Beach Resort

433


$

141.48


$

198.53


(28.7)

%


18.4

%

80.7

%

(62.3)

%


$

26.04


$

160.28


(83.8)

%

Westin San Diego

436


$

169.28


$

199.95


(15.3)

%


27.9

%

82.5

%

(54.6)

%


$

47.18


$

164.92


(71.4)

%

Westin Washington D.C. City Center

410


$

147.51


$

239.48


(38.4)

%


1.8

%

92.4

%

(90.6)

%


$

2.62


$

221.35


(98.8)

%

Worthington Renaissance Fort Worth Hotel

504


$

146.86


$

192.06


(23.5)

%


11.3

%

77.5

%

(66.2)

%


$

16.64


$

148.88


(88.8)

%

Total Open for Entire Period - 10 Hotels

3,449


$

173.08


$

218.45


(20.8)

%


19.6

%

81.9

%

(62.3)

%


$

33.91


$

178.89


(81.0)

%














Total Partially Open During Period - 13 Hotels

3,319


$

184.86


$

251.67


(26.5)

%


4.3

%

79.2

%

(74.9)

%


$

7.98


$

199.39


(96.0)

%














Total Closed for Entire Period - 7 Hotels

2,832


$


$

284.26


(100.0)

%


%

89.2

%

(89.2)

%


$


$

253.59


(100.0)

%














Portfolio Total (1)

9,600


$

175.74


$

250.23


(29.8)

%


8.5

%

83.1

%

(74.6)

%


$

14.99


$

208.02


(92.8)

%



(1)

Amounts exclude the operating results of Frenchman's Reef 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


$

167.54


$

168.59


(0.6)

%


29.1

%

72.6

%

(43.5)

%


$

48.74


$

122.44


(60.2)

%

Bethesda Marriott Suites

272


$

168.34


$

181.32


(7.2)

%


25.9

%

74.4

%

(48.5)

%


$

43.57


$

134.84


(67.7)

%

Courtyard New York Manhattan/Midtown East

321


$

154.60


$

233.54


(33.8)

%


76.2

%

94.7

%

(18.5)

%


$

117.86


$

221.06


(46.7)

%

Kimpton Shorebreak Huntington Beach Resort

157


$

211.59


$

248.09


(14.7)

%


55.2

%

77.1

%

(21.9)

%


$

116.73


$

191.22


(39.0)

%

L'Auberge de Sedona Resort & Spa

88


$

568.53


$

623.67


(8.8)

%


50.3

%

82.1

%

(31.8)

%


$

286.00


$

512.04


(44.1)

%

Salt Lake City Marriott Downtown

510


$

167.49


$

170.00


(1.5)

%


28.0

%

66.0

%

(38.0)

%


$

46.81


$

112.24


(58.3)

%

Westin Fort Lauderdale Beach Resort

433


$

251.18


$

228.58


9.9

%


49.5

%

88.1

%

(38.6)

%


$

124.30


$

201.29


(38.2)

%

Westin San Diego

436


$

182.76


$

195.09


(6.3)

%


47.3

%

80.0

%

(32.7)

%


$

86.53


$

156.11


(44.6)

%

Westin Washington D.C. City Center

410


$

191.70


$

222.10


(13.7)

%


31.0

%

85.0

%

(54.0)

%


$

59.48


$

188.80


(68.5)

%

Worthington Renaissance Fort Worth Hotel

504


$

187.14


$

190.08


(1.5)

%


34.4

%

78.5

%

(44.1)

%


$

64.47


$

149.15


(56.8)

%

Total Open for Entire Period - 10 Hotels

3,449


$

200.33


$

214.03


(6.4)

%


40.7

%

79.5

%

(38.8)

%


$

81.47


$

170.11


(52.1)

%














Total Partially Open During Period - 20 Hotels

6,151


$

219.62


$

246.27


(10.8)

%


30.0

%

77.4

%

(47.4)

%


$

65.88


$

190.71


(65.5)

%














Portfolio Total (1)

9,600


$

211.29


$

234.48


(9.9)

%


33.8

%

78.2

%

(44.4)

%


$

71.48


$

183.30


(61.0)

%



(1)

  Amounts exclude the operating results of Frenchman's Reef for all periods presented.

 

Hotel Adjusted EBITDA Reconciliation




Second 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


91

$

279



$

(969)


$

360


$


$


$

(609)


Barbary Beach House Key West


30

$

523



$

(1,416)


$

680


$


$


$

(736)


Bethesda Marriott Suites


91

$

243



$

(2,958)


$

677


$


$

1,506


$

(775)


Cavallo Point, The Lodge at the Golden Gate


7

$

141



$

(2,940)


$

1,837


$


$

94


$

(1,009)


Chicago Marriott Downtown Magnificent Mile


9

$

242



$

(9,622)


$

4,179


$

55


$

(397)


$

(5,785)


Courtyard Denver Downtown


30

$

196



$

(713)


$

376


$


$


$

(337)


Courtyard New York Manhattan/Fifth Avenue


$

46



$

(2,036)


$

329


$


$

253


$

(1,454)


Courtyard New York Manhattan/Midtown East


91

$

3,138



$

(1,175)


$

569


$

972


$


$

366


Frenchman's Reef


$



$

6


$


$


$


$

6


Havana Cabana Key West


30

$

447



$

(586)


$

272


$


$


$

(314)


Hilton Boston Downtown/Faneuil Hall


$

254



$

(2,339)


$

1,220


$


$


$

(1,119)


Hilton Burlington


$



$

(1,162)


$

500


$


$


$

(662)


Hilton Garden Inn New York/Times Square Central


$

41



$

(2,312)


$

843


$


$


$

(1,469)


Hotel Emblem San Francisco


5

$

7



$

(797)


$

289


$


$


$

(508)


Hotel Palomar Phoenix


10

$

427



$

(1,622)


$

672


$

39


$

286


$

(625)


JW Marriott Denver Cherry Creek


30

$

256



$

(2,252)


$

535


$

675


$

6


$

(1,036)


Kimpton Shorebreak Huntington Beach Resort


91

$

1,824



$

(137)


$

408


$


$


$

271


L'Auberge de Sedona Resort & Spa


91

$

2,544



$

92


$

622


$


$


$

714


Orchards Inn Sedona


47

$

357



$

(181)


$

80


$


$

42


$

(59)


Renaissance Charleston Historic District


53

$

798



$

(452)


$

419


$


$

(32)


$

(65)


Salt Lake City Marriott Downtown


91

$

903



$

(1,690)


$

552


$

582


$


$

(556)


The Gwen Chicago


21

$

318



$

(2,411)


$

1,110


$


$


$

(1,301)


The Landing Resort & Spa


26

$

733



$

(413)


$

425


$


$


$

12


The Lexington New York City


$

56



$

(6,664)


$

3,043


$

7


$

8


$

(3,606)


The Lodge at Sonoma Renaissance Resort & Spa


$

50



$

(1,636)


$

444


$

273


$


$

(919)


Vail Marriott Mountain Resort & Spa


19

$

81



$

(2,829)


$

1,121


$


$


$

(1,708)


Westin Boston Waterfront


$

543



$

(7,553)


$

2,559


$

2,128


$

(60)


$

(2,926)


Westin Fort Lauderdale Beach Resort


91

$

2,286



$

(2,321)


$

1,093


$


$


$

(1,228)


Westin San Diego


91

$

2,484



$

(1,551)


$

1,124


$

618


$


$

191


Westin Washington D.C. City Center


91

$

174



$

(3,456)


$

1,324


$

640


$


$

(1,492)


Worthington Renaissance Fort Worth Hotel


91

$

988



$

(3,507)


$

1,121


$

765


$

2


$

(1,619)


Total



$

20,379



$

(67,602)


$

28,783


$

6,754


$

1,708


$

(30,357)


Less: Frenchman's Reef



$



$

(6)


$


$


$


$

(6)


Comparable Total



$

20,379



$

(67,608)


$

28,783


$

6,754


$

1,708


$

(30,363)




(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



Second Quarter 2019






Plus:

Plus:

Plus:

Equals:



Total Revenues


Net Income /
(Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted
EBITDA

Atlanta Marriott Alpharetta


$

4,862



$

1,188


$

459


$


$


$

1,647


Barbary Beach House Key West


$

4,446



$

1,217


$

344


$


$


$

1,561


Bethesda Marriott Suites


$

5,234



$

18


$

474


$


$

1,517


$

2,009


Cavallo Point, The Lodge at the Golden Gate


$

10,721



$

1,268


$

1,789


$


$

110


$

3,167


Chicago Marriott Downtown Magnificent Mile


$

34,590



$

9,306


$

4,166


$

47


$

(397)


$

13,122


Courtyard Denver Downtown


$

3,291



$

1,466


$

287


$


$


$

1,753


Courtyard New York Manhattan/Fifth Avenue


$

4,341



$

283


$

440


$


$

253


$

976


Courtyard New York Manhattan/Midtown East


$

8,048



$

981


$

688


$

964


$


$

2,633


Frenchman's Reef


$



$

(2)


$


$


$


$

(2)


Havana Cabana Key West


$

2,438



$

746


$

235


$


$


$

981


Hilton Boston Downtown/Faneuil Hall


$

13,161



$

4,939


$

1,233


$


$


$

6,172


Hilton Burlington


$

4,993



$

1,422


$

515


$


$


$

1,937


Hilton Garden Inn New York/Times Square Central


$

7,090



$

1,457


$

826


$


$


$

2,283


Hotel Emblem San Francisco


$

1,995



$

180


$

297


$


$


$

477


Hotel Palomar Phoenix


$

6,070



$

668


$

663


$

38


$

294


$

1,663


JW Marriott Denver Cherry Creek


$

5,797



$

265


$

688


$

687


$

6


$

1,646


Kimpton Shorebreak Huntington Beach Resort


$

4,483



$

1,192


$

349


$


$

40


$

1,581


L'Auberge de Sedona Resort & Spa


$

7,668



$

2,101


$

508


$


$


$

2,609


Orchards Inn Sedona


$

2,414



$

622


$

237


$


$

42


$

901


Renaissance Charleston Historic District


$

4,685



$

1,906


$

418


$


$

(32)


$

2,292


Salt Lake City Marriott Downtown


$

7,863



$

1,695


$

574


$

606


$


$

2,875


The Gwen Chicago


$

9,881



$

2,332


$

1,149


$


$


$

3,481


The Landing Resort & Spa


$

1,804



$

(332)


$

385


$


$


$

53


The Lexington New York City


$

18,275



$

1,324


$

3,557


$

8


$

8


$

4,897


The Lodge at Sonoma Renaissance Resort & Spa


$

6,946



$

1,501


$

529


$

280


$


$

2,310


Vail Marriott Mountain Resort & Spa


$

4,485



$

(1,622)


$

1,035


$


$


$

(587)


Westin Boston Waterfront


$

29,239



$

5,918


$

2,436


$

2,169


$

(60)


$

10,463


Westin Fort Lauderdale Beach Resort


$

12,614



$

2,220


$

1,633


$


$


$

3,853


Westin San Diego


$

9,033



$

1,629


$

1,136


$

634


$


$

3,399


Westin Washington D.C. City Center


$

10,316



$

2,030


$

1,317


$

662


$


$

4,009


Worthington Renaissance Fort Worth Hotel


$

11,135



$

2,548


$

968


$

780


$

2


$

4,298


Total


$

257,918



$

50,466


$

29,335


$

6,875


$

1,783


$

88,351


Less: Frenchman's Reef


$



$

2


$


$


$


$

2


Comparable Total


$

257,918



$

50,468


$

29,335


$

6,875


$

1,783


$

88,353




(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


182

$

4,258



$

(225)


$

734


$


$


$

509


Barbary Beach House Key West


112

$

5,923



$

(84)


$

1,357


$


$


$

1,273


Bethesda Marriott Suites


182

$

2,979



$

(5,055)


$

1,206


$


$

3,020


$

(829)


Cavallo Point, The Lodge at the Golden Gate


83

$

7,857



$

(4,007)


$

3,706


$


$

187


$

(114)


Chicago Marriott Downtown Magnificent Mile


100

$

13,844



$

(17,186)


$

8,404


$

108


$

(795)


$

(9,469)


Courtyard Denver Downtown


109

$

1,665



$

(715)


$

719


$


$


$

4


Courtyard New York Manhattan/Fifth Avenue


86

$

2,324



$

(3,530)


$

780


$


$

507


$

(2,243)


Courtyard New York Manhattan/Midtown East


182

$

7,118



$

(3,930)


$

1,291


$

1,923


$


$

(716)


Frenchman's Reef


$



$


$


$


$


$


Havana Cabana Key West


112

$

3,164



$

291


$

525


$


$


$

816


Hilton Boston Downtown/Faneuil Hall


82

$

5,519



$

(3,383)


$

2,447


$


$


$

(936)


Hilton Burlington


90

$

1,697



$

(1,986)


$

1,005


$


$


$

(981)


Hilton Garden Inn New York/Times Square Central


88

$

3,221



$

(4,239)


$

1,690


$


$


$

(2,549)


Hotel Emblem San Francisco


87

$

1,842



$

(792)


$

576


$


$


$

(216)


Hotel Palomar Phoenix


100

$

6,844



$

(221)


$

1,345


$

77


$

579


$

1,780


JW Marriott Denver Cherry Creek


111

$

3,661



$

(3,545)


$

1,342


$

1,353


$

12


$

(838)


Kimpton Shorebreak Huntington Beach Resort


182

$

5,035



$

(44)


$

819


$


$

27


$

802


L'Auberge de Sedona Resort & Spa


182

$

7,182



$

(513)


$

1,360


$


$


$

847


Orchards Inn Sedona


137

$

1,609



$

(371)


$

297


$


$

84


$

10


Renaissance Charleston Historic District


144

$

3,692



$

(237)


$

846


$


$

(63)


$

546


Salt Lake City Marriott Downtown


182

$

7,628



$

(698)


$

1,111


$

1,174


$


$

1,587


The Gwen Chicago


111

$

5,005



$

(3,960)


$

2,223


$


$


$

(1,737)


The Landing Resort & Spa


108

$

2,447



$

(828)


$

835


$


$


$

7


The Lexington New York City


88

$

8,703



$

(13,995)


$

6,664


$

12


$

16


$

(7,303)


The Lodge at Sonoma Renaissance Resort & Spa


80

$

3,604



$

(2,738)


$

897


$

548


$


$

(1,293)


Vail Marriott Mountain Resort & Spa


98

$

12,561



$

1,073


$

2,231


$


$


$

3,304


Westin Boston Waterfront


84

$

16,674



$

(11,334)


$

5,168


$

4,266


$

(120)


$

(2,020)


Westin Fort Lauderdale Beach Resort


182

$

19,073



$

3,625


$

2,145


$


$


$

5,770


Westin San Diego


182

$

10,084



$

(940)


$

2,261


$

1,240


$


$

2,561


Westin Washington D.C. City Center


182

$

5,536



$

(5,029)


$

2,642


$

1,285


$


$

(1,102)


Worthington Renaissance Fort Worth Hotel


182

$

9,625



$

(3,804)


$

2,257


$

1,533


$

4


$

(10)


Total



$

190,374



$

(88,400)


$

58,883


$

13,519


$

3,458


$

(12,538)


Less: Frenchman's Reef



$



$


$


$


$


$


Comparable Total



$

190,374



$

(88,400)


$

58,883


$

13,519


$

3,458


$

(12,538)




(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


$

10,172



$

2,768


$

934


$


$


$

3,702


Barbary Beach House Key West


$

10,240



$

3,612


$

682


$


$


$

4,294


Bethesda Marriott Suites


$

9,171



$

(954)


$

951


$


$

3,042


$

3,039


Cavallo Point, The Lodge at the Golden Gate


$

19,967



$

1,047


$

3,729


$


$

142


$

4,918


Chicago Marriott Downtown Magnificent Mile


$

50,721



$

5,239


$

8,295


$

118


$

(795)


$

12,857


Courtyard Denver Downtown


$

5,537



$

2,014


$

584


$


$


$

2,598


Courtyard New York Manhattan/Fifth Avenue


$

7,226



$

(622)


$

881


$


$

507


$

766


Courtyard New York Manhattan/Midtown East


$

13,303



$

(640)


$

1,379


$

1,922


$


$

2,661


Frenchman's Reef


$



$

8,800


$


$


$


$

8,800


Havana Cabana Key West


$

5,354



$

1,949


$

480


$


$


$

2,429


Hilton Boston Downtown/Faneuil Hall


$

19,833



$

4,853


$

2,477


$


$


$

7,330


Hilton Burlington


$

7,910



$

1,466


$

1,015


$


$


$

2,481


Hilton Garden Inn New York/Times Square Central


$

11,714



$

787


$

1,671


$


$


$

2,458


Hotel Emblem San Francisco


$

3,344



$

(77)


$

572


$


$


$

495


Hotel Palomar Phoenix


$

13,683



$

2,743


$

1,329


$

76


$

590


$

4,738


JW Marriott Denver Cherry Creek


$

8,474



$

(1,213)


$

1,229


$

1,370


$

12


$

1,398


Kimpton Shorebreak Huntington Beach Resort


$

8,424



$

1,778


$

698


$


$

81


$

2,557


L'Auberge de Sedona Resort & Spa


$

13,622



$

2,960


$

1,017


$


$


$

3,977


Orchards Inn Sedona


$

4,292



$

896


$

475


$


$

84


$

1,455


Renaissance Charleston Historic District


$

8,168



$

2,796


$

821


$


$

(63)


$

3,554


Salt Lake City Marriott Downtown


$

14,737



$

2,752


$

1,104


$

1,210


$


$

5,066


The Gwen Chicago


$

14,937



$

773


$

2,208


$


$


$

2,981


The Landing Resort & Spa


$

3,558



$

(792)


$

761


$


$


$

(31)


The Lexington New York City


$

29,534



$

(3,098)


$

7,085


$

12


$

16


$

4,015


The Lodge at Sonoma Renaissance Resort & Spa


$

11,475



$

1,165


$

1,064


$

558


$


$

2,787


Vail Marriott Mountain Resort & Spa


$

19,880



$

4,923


$

2,025


$


$


$

6,948


Westin Boston Waterfront


$

46,982



$

3,873


$

4,849


$

4,324


$

(120)


$

12,926


Westin Fort Lauderdale Beach Resort


$

30,115



$

8,172


$

3,178


$


$


$

11,350


Westin San Diego


$

17,679



$

3,330


$

2,262


$

1,264


$


$

6,856


Westin Washington D.C. City Center


$

17,410



$

1,795


$

2,639


$

1,322


$


$

5,756


Worthington Renaissance Fort Worth Hotel


$

22,831



$

5,729


$

1,937


$

1,555


$

4


$

9,225


Total


$

460,293



$

68,824


$

58,331


$

13,731


$

3,500


$

144,280


Less: Frenchman's Reef


$



$

(8,800)


$


$


$


$

(8,800)


Comparable Total


$

460,293



$

60,024


$

58,331


$

13,731


$

3,500


$

135,480




(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.

 

Cision View original content:http://www.prnewswire.com/news-releases/diamondrock-hospitality-company-reports-second-quarter-2020-results-301107945.html

SOURCE DiamondRock Hospitality Company