Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate
investment trust (REIT), reported today its financial results for
the quarter ended December 31, 2017.
HIGHLIGHTS
- Comparable
RevPAR: 0.3% increase for the 21-hotel portfolio
and 1.2% increase for the 14-hotel portfolio over the same period
in 2016.
- Comparable
Adjusted Hotel EBITDA Margin: 40 basis point
decrease to 29.9% for the 21-hotel portfolio and 10 basis point
decrease to 33.4% for the 14-hotel portfolio over the same period
in 2016.
- Adjusted Hotel
EBITDA: $42.5 million.
- Adjusted
Corporate EBITDA: $37.3 million.
- Net income
available to common shareholders: $27.6 million
or $0.46 per diluted common share.
- Adjusted
FFO: $28.4 million or $0.48 per diluted common
share.
- Disposition: Sold the 222-room The
Hotel Minneapolis, Autograph Collection for a sale price of $46.0
million.
“We are pleased with our results for the fourth quarter which
were in line with our provided outlook. During the quarter, our
hotels located in New Orleans and Santa Barbara were negatively
impacted by Hurricane Nate and wildfires, respectively. Despite
these negative impacts, RevPAR for our 14-hotel portfolio increased
1.2% over 2016, which was the strongest RevPAR quarterly growth
rate of 2017 for our stabilized portfolio,” said James L. Francis,
Chesapeake Lodging Trust’s President and Chief Executive
Officer.
Mr. Francis continued, “As we begin 2018, we are cautiously
optimistic that the pro-growth political agenda, including the
recent passing of the Tax Cuts and Jobs Act of 2017, will
positively impact lodging demand as we proceed through the year.
Furthermore, we believe the headwinds we experienced throughout
2017, resulting from the temporary closure of the Moscone Center in
San Francisco and the three significant guestroom renovations, will
provide tailwinds and position our hotel portfolio for
outperformance relative to the U.S. lodging industry in 2018 and
beyond.”
CONSOLIDATED FINANCIAL RESULTS
The following is a summary of the consolidated financial results
for the three months and year ended December 31, 2017 and 2016
(in millions, except share and per share amounts):
Three Months Ended
December 31, Year Ended December 31, 2017 2016 2017
2016 Total revenue $ 142.7 $ 145.1 $ 598.3 $ 619.7 Net
income available to common shareholders $ 27.6 $ 9.7 $ 66.5 $ 67.0
Net income per diluted common share $ 0.46 $ 0.16 $ 1.11 $ 1.13
Adjusted Hotel EBITDA $ 42.5 $ 44.1 $ 188.6 $ 203.7
Adjusted Corporate EBITDA $ 37.3 $ 39.0 $ 169.5 $ 184.5 AFFO
available to common shareholders $ 28.4 $ 28.4 $ 128.6 $ 140.4 AFFO
per diluted common share $ 0.48 $ 0.48 $ 2.17 $ 2.39
Weighted-average number of diluted common shares outstanding
59,311,061 58,737,275 59,255,244 58,717,647
HOTEL OPERATING RESULTS
As of December 31, 2017, the Trust owned 21 hotels. The Trust
uses the term “comparable” to refer to metrics that include only
those hotels owned for the entirety of the two periods being
compared. Since The Hotel Minneapolis, Autograph Collection was
sold on November 8, 2017, it has been excluded from the hotel
portfolio metrics below. During 2017, the following seven of the
Trust’s 21 hotels were negatively effected as a result of (1) the
negative impact on lodging demand in San Francisco resulting from
the temporary closure and expansion of the Moscone Center and/or
(2) significant guestroom renovations undergoing during the year:
Le Meridien San Francisco, JW Marriott San Francisco Union Square,
Hyatt Centric Fisherman’s Wharf, Hotel Adagio San Francisco,
Autograph Collection, Boston Marriott Newton, Hilton Denver City
Center, and Hyatt Regency Mission Bay Spa and Marina. As such, the
Trust is reporting key operating metrics for a 14-hotel portfolio
in addition to the 21-hotel portfolio. Included in the following
table are comparisons of the key operating metrics for the 21-hotel
portfolio and the 14-hotel portfolio for the three months and year
ended December 31, 2017 and 2016 (in thousands, except for ADR
and RevPAR):
Three Months Ended
December 31, Year Ended December 31, 2017 2016
Change 2017 2016
Change
21-Hotel
Portfolio
Comparable Occupancy 80.5 % 80.0 % 50 bps 83.1 % 83.9 % (80) bps
Comparable ADR $ 219.48 $ 220.21 (0.3)% $ 225.21 $ 228.58 (1.5)%
Comparable RevPAR $ 176.73 $ 176.15 0.3% $ 187.22 $ 191.89 (2.4)%
Comparable Adjusted Hotel EBITDA $ 42,219 $ 42,990 (1.8)% $ 185,862
$ 199,169 (6.7)% Comparable Adjusted Hotel EBITDA Margin 29.9 %
30.3 % (40) bps 31.6 % 32.9 % (130) bps
14-Hotel
Portfolio
Comparable Occupancy 82.6 % 81.2 % 140 bps 84.9 % 84.0 % 90 bps
Comparable ADR $ 217.94 $ 219.02 (0.5)% $ 222.17 $ 226.01 (1.7)%
Comparable RevPAR $ 179.91 $ 177.78 1.2% $ 188.67 $ 189.95 (0.7)%
Comparable Adjusted Hotel EBITDA $ 27,120 $ 27,358 (0.9)% $ 117,300
$ 122,226 (4.0)% Comparable Adjusted Hotel EBITDA Margin 33.4 %
33.5 % (10) bps 34.9 % 35.6 % (70) bps
Hotel EBITDA, Adjusted Hotel EBITDA, Adjusted Hotel EBITDA
Margin, Corporate EBITDA, Adjusted Corporate EBITDA, FFO, FFO
available to common shareholders and AFFO available to common
shareholders are non-GAAP financial measures within the meaning of
the rules of the Securities and Exchange Commission. See the
discussion included in this press release for information regarding
these non-GAAP financial measures.
DISPOSITION ACTIVITY
On November 8, 2017, the Trust sold the 222-room The Hotel
Minneapolis, Autograph Collection located in Minneapolis, Minnesota
for $46.3 million, including sold working capital, which resulted
in a gain on sale of $6.1 million. The Trust acquired The Hotel
Minneapolis, Autograph Collection in October 2012 for $46.0
million, or approximately $207,000 per key. The sale price of $46.0
million, or approximately $207,000 per key, represented a 6.2%
trailing twelve month NOI cap rate (after factoring in a needed
2018 renovation estimated at $5.0 million, the sale price
represented a 5.6% NOI cap rate).
DIVIDENDS
On October 13, 2017, the Trust paid a dividend in the amount of
$0.40 per share to its common shareholders of record as of
September 29, 2017. On December 18, 2017, the Trust declared a
dividend in the amount of $0.40 per share payable to its common
shareholders of record as of December 29, 2017. The dividend was
paid on January 12, 2018.
2018 OUTLOOK
The Trust's 2018 outlook is as follows, and assumes no future
acquisitions, dispositions, or financing transactions (in millions,
except RevPAR and per share amounts):
First Quarter2018 Outlook
Full Year2018 Outlook
Low High Low High
CONSOLIDATED: Net income available to common
shareholders $ 3.9 $ 5.6 $ 62.9 $ 69.4 Net income per diluted
common share $ 0.06 $ 0.09 $ 1.06 $ 1.17 Adjusted Corporate
EBITDA $ 29.6 $ 31.1 $ 175.5 $ 183.0 AFFO available to
common shareholders $ 23.1 $ 24.9 $ 138.1 $ 144.6 AFFO per diluted
common share $ 0.39 $ 0.42 $ 2.33 $ 2.43 Corporate cash
general and administrative expense $ 3.0 $ 3.2 $ 10.8 $ 11.8
Corporate non-cash general and administrative expense $ 2.0 $ 2.0 $
7.6 $ 7.6 Weighted-average number of diluted common shares
outstanding 59.5 59.5 59.4 59.4
HOTEL PORTFOLIO:
RevPAR $ 168.00 $ 172.00 $ 193.00 $ 197.00 RevPAR change as
compared to 2017(1) 1.0 % 3.0 % 3.0 % 5.0 % Adjusted Hotel EBITDA $
34.5 $ 36.2 $ 193.8 $ 202.3 Adjusted Hotel EBITDA Margin 26.2 %
27.0 % 32.1 % 32.9 % Adjusted Hotel EBITDA Margin change as
compared to 2017(1) (75) bps 0 bps 50 bps 125 bps
_____________ (1) The comparable 2017 period excludes
results of operations for The Hotel Minneapolis, Autograph
Collection, which was sold on November 8, 2017.
NON-GAAP FINANCIAL MEASURES
The Trust reports the following eight non-GAAP financial
measures that it believes are useful to investors as key measures
of its operating performance: (1) Hotel EBITDA,
(2) Adjusted Hotel EBITDA, (3) Adjusted Hotel EBITDA
Margin, (4) Corporate EBITDA, (5) Adjusted Corporate
EBITDA, (6) FFO, (7) FFO available to common shareholders
and (8) AFFO available to common shareholders. Reconciliations
of these non-GAAP financial measures to the most comparable GAAP
measure are included in the accompanying financial tables.
Hotel EBITDA – Hotel EBITDA is defined as net income before
interest, income taxes, depreciation and amortization, air rights
amortization, corporate general and administrative, and hotel
acquisition costs. The Trust believes that Hotel EBITDA provides
investors a useful financial measure to evaluate the Trust’s hotel
operating performance, excluding the impact of the Trust’s capital
structure (primarily interest), the Trust’s asset base (primarily
depreciation and amortization), and the Trust’s corporate-level
expenses (corporate general and administrative and hotel
acquisition costs).
Adjusted Hotel EBITDA – The Trust further adjusts Hotel EBITDA
for certain additional recurring and non-recurring items.
Specifically, the Trust adjusts for non-cash amortization of
intangible assets and liabilities, including ground lease assets
and unfavorable contract liabilities, deferred franchise costs, and
deferred key money, all of which are recurring items, and gains
(losses) from sales of real estate, which is a non-recurring item.
For the three months and year ended December 31, 2017, the Trust
also adjusted for the non-recurring impact resulting from the
change in management at the Hilton Denver City Center (formerly the
Denver Marriott City Center), which included a non-cash write-off
of an unfavorable contract liability, a settlement gain, and
transition-related expenses. The Trust believes that Adjusted Hotel
EBITDA provides investors with another useful financial measure to
evaluate the Trust’s hotel operating performance, excluding the
effect of these items.
Adjusted Hotel EBITDA Margin – Adjusted Hotel EBITDA Margin is
defined as Adjusted Hotel EBITDA as a percentage of total revenues.
The Trust believes that Adjusted Hotel EBITDA Margin provides
investors another useful financial measure to evaluate the Trust’s
hotel operating performance.
Corporate EBITDA – Corporate EBITDA is defined as net income
before interest, income taxes, and depreciation and amortization.
The Trust believes that Corporate EBITDA provides investors a
useful financial measure to evaluate the Trust’s operating
performance, excluding the impact of the Trust’s capital structure
(primarily interest expense) and the Trust’s asset base (primarily
depreciation and amortization).
Adjusted Corporate EBITDA – The Trust further adjusts Corporate
EBITDA for certain additional recurring and non-recurring items.
Specifically, the Trust adjusts for hotel acquisition costs and
non-cash amortization of intangible assets and liabilities,
including air rights contracts, ground lease assets and unfavorable
contract liabilities, deferred franchise costs, and deferred key
money, all of which are recurring items, and gains (losses) from
sales of real estate, which is a non-recurring item. For the three
months and year ended December 31, 2017, the Trust also adjusted
for the non-recurring impact resulting from the change in
management at the Hilton Denver City Center (formerly the Denver
Marriott City Center), which included a non-cash write-off of an
unfavorable contract liability, a settlement gain, and
transition-related expenses. The Trust believes that Adjusted
Corporate EBITDA provides investors with another financial measure
of its operating performance that provides for greater
comparability of its core operating results between periods.
FFO – The Trust calculates FFO in accordance with standards
established by the National Association of Real Estate Investment
Trusts ("NAREIT"), which defines FFO as net income (calculated in
accordance with GAAP), excluding depreciation and amortization,
impairment charges of depreciable real estate, gains (losses) from
sales of real estate, the cumulative effect of changes in
accounting principles, and adjustments for unconsolidated
partnerships and joint ventures. 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 presentations of operating results
for real estate companies that use historical cost accounting to be
insufficient by themselves. By excluding the effect of depreciation
and amortization and gains (losses) from sales of real estate, both
of which are based on historical cost accounting and which may be
of lesser significance in evaluating current performance, the Trust
believes that FFO provides investors a useful financial measure to
evaluate the Trust’s operating performance.
FFO available to common shareholders – The Trust reduces FFO for
preferred share dividends, write-off of issuance costs of redeemed
preferred shares, and dividends declared on and earnings allocated
to unvested time-based awards (consistent with adjustments required
by GAAP in reporting net income available to common shareholders
and related per share amounts). FFO available to common
shareholders provides investors another financial measure to
evaluate the Trust’s operating performance after taking into
account the interests of holders of the Trust’s preferred shares
and unvested time-based awards.
AFFO available to common shareholders – The Trust further
adjusts FFO available to common shareholders for certain additional
recurring and non-recurring items that are not in NAREIT’s
definition of FFO. Specifically, the Trust adjusts for hotel
acquisition costs and non-cash amortization of intangible assets
and liabilities, including air rights contracts, ground lease
assets and unfavorable contract liabilities, deferred franchise
costs, and deferred key money, all of which are recurring items,
and the write-off of issuance costs of redeemed preferred shares,
which is a non-recurring item. For the three months and year ended
December 31, 2017, the Trust also adjusted for (1) the impact, net
of tax, resulting from the change in management at the Hilton
Denver City Center (formerly the Denver Marriott City Center),
which included a non-cash write-off of an unfavorable contract
liability, a settlement gain, and transition-related expenses and
(2) the non-cash adjustment to the Trust’s deferred tax assets and
liabilities resulting from the enactment of the Tax Cuts and Jobs
Act, both of which are non-recurring items. The Trust believes that
AFFO available to common shareholders provides investors with
another financial measure of its operating performance that
provides for greater comparability of its core operating results
between periods.
CONFERENCE CALL
The Trust will host a conference call on February 15, 2018
at 4:30 p.m. Eastern Time to discuss its financial results.
Interested individuals are invited to listen to the call by dialing
(877) 683-0303 (U.S./Canadian callers) or (706) 643-5037
(International callers). The conference call ID is 3040540. A
simultaneous webcast of the call will be available on the Trust’s
website at www.chesapeakelodgingtrust.com. It is recommended that
participants call or log on 10 minutes ahead of the scheduled start
time to ensure proper connection.
A replay of the conference call will be available two hours
after the live call until midnight on February 22, 2018. To access
the replay, dial (855) 859-2056 (U.S./Canadian callers) or
(404) 537-3406 (International callers). The conference call ID
is 3040540. A webcast replay and transcript of the conference call
will be archived and available on the Trust’s website for 12
months.
ABOUT CHESAPEAKE LODGING TRUST
Chesapeake Lodging Trust is a self-advised lodging real estate
investment trust (REIT) focused on investments primarily in
upper-upscale hotels in major business and convention markets and,
on a selective basis, premium select-service hotels in urban
settings or unique locations in the United States. The Trust owns
21 hotels with an aggregate of 6,479 rooms in eight states and the
District of Columbia. Additional information can be found on the
Trust’s website at www.chesapeakelodgingtrust.com.
Note: This press release contains forward-looking statements
within the meaning of federal securities regulations. These
forward-looking statements are identified by their use of terms and
phrases such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,”
“will,” “continue” and other similar terms and phrases, including
references to assumptions and forecasts, such as the Trust's first
quarter and full year 2018 outlook. Forward-looking statements are
not guarantees of future performance and involve known and unknown
risks, uncertainties and other factors which may cause the actual
results to differ materially from those anticipated at the time the
forward-looking statements are made. These risks include, but are
not limited to: U.S. economic conditions generally and the real
estate market and the lodging industry specifically; management and
performance of the Trust's hotels; supply and demand for hotel
rooms in the Trust's markets; the Trust's competition; the Trust’s
ability to continue to satisfy complex rules in order for it to
remain a REIT for federal income tax purposes; the effects of any
acquisitions, dispositions or financing transactions the Trust may
undertake; and other risks and uncertainties associated with the
Trust’s business described in its filings with the SEC. Although
the Trust 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 February 15, 2018, and the Trust undertakes
no obligation to update any forward-looking statement to conform
the statement to actual results or changes in the Trust’s
expectations, except as required by law.
CHESAPEAKE LODGING TRUST CONSOLIDATED BALANCE
SHEETS (in thousands, except share data)
December 31, 2017 2016
ASSETS Property and equipment, net $ 1,823,217 $ 1,882,869
Intangible assets, net 35,256 35,835 Cash and cash equivalents
44,314 43,060 Restricted cash 30,602 36,128 Accounts receivable,
net 20,769 19,966 Prepaid expenses and other assets 21,202
17,516 Total assets $ 1,975,360 $ 2,035,374
LIABILITIES AND SHAREHOLDERS’ EQUITY Long-term debt $
829,552 $ 737,310 Accounts payable and accrued expenses 65,783
64,581 Other liabilities 31,597 44,808 Total
liabilities 926,932 846,699 Commitments and
contingencies
Preferred shares, $.01 par value;
100,000,000 shares authorized; Series A Cumulative Redeemable
Preferred Shares; no shares and 5,000,000 shares issued and
outstanding, respectively
— 50
Common shares, $.01 par value; 400,000,000
shares authorized; 59,941,088 shares and 59,671,964 shares issued
and outstanding, respectively
599 597 Additional paid-in capital 1,190,250 1,304,364 Cumulative
dividends in excess of net income (144,734 ) (116,297 ) Accumulated
other comprehensive income (loss) 2,313 (39 ) Total
shareholders’ equity 1,048,428 1,188,675 Total
liabilities and shareholders’ equity $ 1,975,360 $ 2,035,374
SUPPLEMENTAL CREDIT INFORMATION: Fixed charge
coverage ratio(1) 3.00 3.24 Leverage ratio(1) 39.2 % 31.9 %
______________ (1) Calculated as defined under the Trust’s
revolving credit facility.
CHESAPEAKE LODGING
TRUST CONSOLIDATED STATEMENTS OF OPERATIONS (in
thousands, except share and per share data)
Three Months EndedDecember 31,
Year EndedDecember 31,
2017 2016 2017 2016
(unaudited) REVENUE Rooms $ 106,402 $ 107,505 $ 450,812 $ 465,796
Food and beverage 29,095 30,135 118,715 125,987 Other 7,158
7,488 28,740 27,916 Total revenue 142,655
145,128 598,267 619,699 EXPENSES
Hotel operating expenses: Rooms 26,361 26,383 107,183 108,292 Food
and beverage 21,760 22,662 88,454 92,075 Other direct 1,321 1,438
5,457 6,275 Indirect 36,784 50,440 194,212
208,756 Total hotel operating expenses 86,226 100,923
395,306 415,398 Depreciation and amortization 18,978 18,864 76,230
74,661 Air rights contract amortization 130 130 520 520 Corporate
general and administrative 5,252 5,093 19,050
19,167 Total operating expenses 110,586 125,010
491,106 509,746 Operating income 32,069
20,118 107,161 109,953 Interest expense (8,950 ) (7,954 )
(33,939 ) (31,846 ) Gain on sale of hotel 6,102 —
6,102 598 Income before income taxes 29,221
12,164 79,324 78,705 Income tax expense (1,619 ) (17 )
(3,089 ) (1,999 ) Net income 27,602 12,147 76,235 76,706
Preferred share dividends — (2,422 ) (5,274 ) (9,688 )
Write-off of issuance costs of redeemed preferred shares — —
(4,419 ) — Net income available to common
shareholders $ 27,602 $ 9,725 $ 66,542 $
67,018 Net income per common share: Basic $ 0.47 $
0.16 $ 1.12 $ 1.13 Diluted $ 0.46 $ 0.16 $ 1.11 $ 1.13
Weighted-average number of common shares outstanding: Basic
59,044,308 58,737,275 59,029,490 58,717,647 Diluted 59,311,061
58,737,275 59,255,244 58,717,647
CHESAPEAKE
LODGING TRUST CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) Year Ended December 31,
2017 2016 Cash flows from operating
activities: Net income $ 76,235 $ 76,706 Adjustments to reconcile
net income to net cash provided by operating activities:
Depreciation and amortization 76,230 74,661 Air rights contract
amortization 520 520 Write-off of unfavorable contract liability
(11,815 ) — Deferred financing costs amortization 1,682 1,850 Gain
on sale of hotel (6,102 ) (598 ) Share-based compensation 7,497
9,507 Other (593 ) (796 ) Changes in assets and liabilities:
Accounts receivable, net (1,093 ) (4,363 ) Prepaid expenses and
other assets (1,976 ) 329 Accounts payable and accrued expenses
1,283 1,801 Other liabilities 1,667 (47 ) Net cash provided
by operating activities 143,535 159,570 Cash
flows from investing activities: Disposition of hotels, net of cash
sold 45,991 2,028 Improvements and additions to hotels (55,051 )
(32,015 ) Change in restricted cash 5,526 4,233 Net
cash used in investing activities (3,534 ) (25,754 ) Cash
flows from financing activities: Redemption of preferred shares
(125,000 ) — Borrowings under revolving credit facility 315,000
185,000 Repayments under revolving credit facility (310,000 )
(235,000 ) Proceeds from issuance of unsecured term loan 225,000 —
Proceeds from issuance of mortgage debt — 150,000 Principal
prepayments on mortgage debt — (122,220 ) Scheduled principal
payments on mortgage debt (137,657 ) (10,940 ) Payment of deferred
financing costs (1,783 ) (952 ) Payment of dividends to common
shareholders (95,909 ) (94,480 ) Payment of dividends to preferred
shareholders (7,320 ) (9,688 ) Repurchase of common shares (1,078 )
(3,020 ) Net cash used in financing activities (138,747 ) (141,300
) Net increase (decrease) in cash 1,254 (7,484 ) Cash and cash
equivalents, beginning of period 43,060 50,544 Cash
and cash equivalents, end of period $ 44,314 $ 43,060
CHESAPEAKE LODGING TRUST
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(in thousands, except per share
data)
(unaudited)
The following table reconciles net income to Hotel EBITDA,
Adjusted Hotel EBITDA, and Adjusted Hotel EBITDA Margin for the
21-hotel portfolio for the three months and year ended December 31,
2017 and 2016: Three
Months Ended
December 31,
Year Ended
December 31,
2017 2016 2017 2016 Net
income $ 27,602 $ 12,147 $ 76,235 $ 76,706
Add:
Interest expense
8,950 7,954 33,939 31,846 Income tax expense 1,619 17 3,089 1,999
Depreciation and amortization 18,978 18,864 76,230 74,661 Air
rights contract amortization 130 130 520 520 Corporate general and
administrative 5,252 5,093 19,050 19,167
Hotel EBITDA 62,531 44,205 209,063 204,899
Less:
Non-cash amortization(1)
(129 ) (155 ) (594 ) (620 ) Hilton Denver City Center change in
management(2) (13,769 ) — (13,769 ) — Gain on sale of hotel (6,102
) — (6,102 ) (598 ) Adjusted Hotel EBITDA 42,531 44,050
188,598 203,681
Less:
Hotel EBITDA of hotel sold(3)
(312 ) (1,060 ) (2,736 ) (4,512 ) Comparable Adjusted Hotel
EBITDA(4) $ 42,219 $ 42,990 $ 185,862 $
199,169 Total revenue $ 142,655 $ 145,128 $ 598,267 $
619,699
Less:
Total revenue of hotel sold(3)
(1,444 ) (3,324 ) (10,601 ) (13,832 ) Comparable total revenue(4) $
141,211 $ 141,804 $ 587,666 $ 605,867
Comparable Adjusted Hotel EBITDA Margin(4) 29.9 % 30.3 % 31.6 %
32.9 % _____________ (1) Reflects non-cash amortization of
ground lease asset, deferred franchise costs, deferred key money,
and unfavorable contract liability. (2) Reflects (1) a non-cash
write-off of an unfavorable contract liability, (2) a settlement
gain, and (3) transition-related expenses, all of which are in
connection with the change in management at the Hilton Denver City
Center (formerly the Denver Marriott City Center). (3) Reflects
results of operations for The Hotel Minneapolis, Autograph
Collection, which was sold on November 8, 2017. (4) The Trust uses
the term "comparable" to refer to metrics that include only those
hotels owned for the entirety of the two periods being compared.
The following table reconciles net income to Corporate
EBITDA and Adjusted Corporate EBITDA for the three months and year
ended December 31, 2017 and 2016:
Three Months Ended
December 31,
Year Ended
December 31,
2017 2016 2017 2016 Net
income $ 27,602 $ 12,147 $ 76,235 $ 76,706
Add:
Interest expense
8,950 7,954 33,939 31,846 Income tax expense 1,619 17 3,089 1,999
Depreciation and amortization 18,978 18,864 76,230
74,661 Corporate EBITDA 57,149 38,982 189,493 185,212
Less:
Non-cash amortization(1)
2 (25 ) (74 ) (101 ) Hilton Denver City Center change in
management(2) (13,769 ) — (13,769 ) — Gain on sale of hotel (6,102
) — (6,102 ) (598 ) Adjusted Corporate EBITDA $ 37,280
$ 38,957 $ 169,548 $ 184,513
_____________ (1) Reflects non-cash amortization of ground
lease asset, deferred franchise costs, deferred key money,
unfavorable contract liability, and air rights contract. (2)
Reflects (1) a non-cash write-off of an unfavorable contract
liability, (2) a settlement gain, and (3) transition-related
expenses, all of which are in connection with the change in
management at the Hilton Denver City Center (formerly the Denver
Marriott City Center). The following table reconciles net
income to FFO, FFO available to common shareholders, and AFFO
available to common shareholders for the three months and year
ended December 31, 2017 and 2016:
Three Months EndedDecember 31,
Year EndedDecember 31,
2017 2016 2017 2016 Net
income $ 27,602 $ 12,147 $ 76,235 $ 76,706
Add:
Depreciation and amortization
18,978 18,864 76,230 74,661
Less:
Gain on sale of hotel
(6,102 ) — (6,102 ) (598 ) FFO 40,478 31,011 146,363 150,769
Less:
Preferred share dividends
— (2,422 ) (5,274 ) (9,688 ) Write-off of issuance costs of
redeemed preferred shares — — (4,419 ) — Dividends declared on
unvested time-based awards (123 ) (126 ) (494 ) (561 )
Undistributed earnings allocated to unvested time-based awards (20
) — — — FFO available to common shareholders
40,335 28,463 136,176 140,520
Add:
Write-off of issuance costs of redeemed
preferred shares
— — 4,419 — Tax Cuts and Jobs Act income tax adjustment 1,057 —
1,057 —
Less:
Non-cash amortization(1)
2 (25 ) (74 ) (101 ) Hilton Denver City Center change in
management(2) (13,018 ) — (13,018 ) — AFFO available
to common shareholders $ 28,376 $ 28,438 $ 128,560
$ 140,419 FFO per common share: Basic $ 0.68 $
0.48 $ 2.31 $ 2.39 Diluted $ 0.68 $ 0.48 $ 2.30 $ 2.39 AFFO
per common share: Basic $ 0.48 $ 0.48 $ 2.18 $ 2.39 Diluted $ 0.48
$ 0.48 $ 2.17 $ 2.39 _____________ (1) Reflects non-cash
amortization of ground lease asset, deferred franchise costs,
deferred key money, unfavorable contract liability, and air rights
contract. (2) Reflects (1) a non-cash write-off of an unfavorable
contract liability, (2) a settlement gain, and (3)
transition-related expenses, all of which are in connection with
the change in management at the Hilton Denver City Center (formerly
the Denver Marriott City Center). The following table
reconciles forecasted net income to Hotel EBITDA, Adjusted Hotel
EBITDA, and Adjusted Hotel EBITDA Margin for the 21-hotel portfolio
for the three months ending March 31, 2018 and year ending December
31, 2018: Three Months
Ending
March 31, 2018
Year Ending
December 31, 2018
Low High Low High Net
income $ 3,970 $ 5,720 $ 63,380 $ 69,880
Add:
Interest expense
8,900 8,900 35,600 35,600 Income tax expense (benefit) (2,600 )
(2,800 ) 1,250 2,250 Depreciation and amortization 19,230 19,230
75,000 75,000 Air rights contract amortization 130 130 520 520
Corporate general and administrative 4,900 5,100
18,300 19,300 Hotel EBITDA 34,530 36,280 194,050
202,550
Less:
Non-cash amortization(1)
(80 ) (80 ) (300 ) (300 ) Adjusted Hotel EBITDA $ 34,450 $
36,200 $ 193,750 $ 202,250 Total
revenue $ 131,350 $ 134,200 $ 603,000 $ 615,250 Adjusted
Hotel EBITDA Margin 26.2 % 27.0 % 32.1 % 32.9 % _____________ (1)
Reflects non-cash amortization of ground lease asset,
deferred franchise costs, and deferred key money. The
following table reconciles forecasted net income to Corporate
EBITDA and Adjusted Corporate EBITDA for the three months ending
March 31, 2018 and year ending December 31, 2018:
Three Months EndingMarch 31, 2018 Year
EndingDecember 31, 2018 Low High Low
High Net income $ 3,970 $ 5,720 $ 63,380 $ 69,880
Add:
Interest expense
8,900 8,900 35,600 35,600 Income tax expense (benefit) (2,600 )
(2,800 ) 1,250 2,250 Depreciation and amortization 19,230
19,230 75,000 75,000 Corporate EBITDA 29,500 31,050
175,230 182,730
Add:
Non-cash amortization(1)
50 50 220 220 Adjusted Corporate EBITDA $
29,550 $ 31,100 $ 175,450 $ 182,950
_____________ (1) Reflects non-cash amortization of ground
lease asset, deferred franchise costs, deferred key money, and air
rights contract. The following table reconciles forecasted
net income to FFO, FFO available to common shareholders, and AFFO
available to common shareholders for the three months ending March
31, 2018 and year ending December 31, 2018:
Three Months EndingMarch 31, 2018 Year
EndingDecember 31, 2018 Low High Low
High Net income $ 3,970 $ 5,720 $ 63,380 $ 69,880
Add:
Depreciation and amortization
19,230 19,230 75,000 75,000 FFO 23,200
24,950 138,380 144,880
Less:
Dividends declared on unvested time-based
awards
(120 ) (120 ) (480 ) (480 ) Undistributed earnings allocated to
unvested time-based awards — — — — FFO
available to common shareholders 23,080 24,830 137,900 144,400
Add:
Non-cash amortization(1)
50 50 220 220 AFFO available to common
shareholders $ 23,130 $ 24,880 $ 138,120 $
144,620 FFO per common share: Basic $ 0.39 $ 0.42 $
2.33 $ 2.44 Diluted $ 0.39 $ 0.42 $ 2.32 $ 2.43 AFFO per
common share: Basic $ 0.39 $ 0.42 $ 2.34 $ 2.45 Diluted $ 0.39 $
0.42 $ 2.33 $ 2.43 Weighted-average number of common shares
outstanding: Basic 59,108 59,108 59,145 59,145 Diluted 59,464
59,464 59,394 59,394 _____________ (1) Reflects non-cash
amortization of ground lease asset, deferred franchise costs,
deferred key money, and air rights contract.
CHESAPEAKE LODGING
TRUST CURRENT HOTEL PORTFOLIO Hotel Location
Rooms Acquisition Date 1 Hyatt Regency Boston
Boston, MA 502 March 18, 2010 2 Hilton Checkers Los Angeles Los
Angeles, CA 193 June 1, 2010 3 Boston Marriott Newton Newton, MA
430 July 30, 2010 4 Le Meridien San Francisco San Francisco, CA 360
December 15, 2010 5 Homewood Suites Seattle Convention Center
Seattle, WA 195 May 2, 2011 6 W Chicago – City Center Chicago, IL
403 May 10, 2011 7 Hotel Indigo San Diego Gaslamp Quarter San
Diego, CA 210 June 17, 2011 8 Courtyard Washington Capitol
Hill/Navy Yard Washington, DC 204 June 30, 2011 9 Hotel Adagio San
Francisco, Autograph Collection San Francisco, CA 171 July 8, 2011
10 Hilton Denver City Center Denver, CO 613 October 3, 2011 11
Hyatt Herald Square New York New York, NY 122 December 22, 2011 12
W Chicago – Lakeshore Chicago, IL 520 August 21, 2012 13 Hyatt
Regency Mission Bay Spa and Marina San Diego, CA 429 September 7,
2012 14 Hyatt Place New York Midtown South New York, NY 185 March
14, 2013 15 W New Orleans – French Quarter New Orleans, LA 97 March
28, 2013 16 Le Meridien New Orleans New Orleans, LA 410 April 25,
2013 17 Hyatt Centric Fisherman’s Wharf San Francisco, CA 316 May
31, 2013 18 Hyatt Centric Santa Barbara Santa Barbara, CA 200 June
27, 2013 19 JW Marriott San Francisco Union Square San Francisco,
CA 344 October 1, 2014 20 Royal Palm South Beach Miami, a Tribute
Portfolio Resort Miami Beach, FL 393 March 9, 2015 21 Ace Hotel and
Theater Downtown Los Angeles Los Angeles, CA 182 April 30, 2015
6,479
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180215006354/en/
Chesapeake Lodging TrustDouglas W. Vicari, 571-349-9452
Chesapeake Lodging (NYSE:CHSP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Chesapeake Lodging (NYSE:CHSP)
Historical Stock Chart
From Apr 2023 to Apr 2024