Condor Hospitality Trust Reports Fourth Quarter and Full Year 2020 Results

Condor Hospitality Trust, Inc. (NYSE American: CDOR) (the “Company”) today announced results of operations for the fourth quarter and full year ended December 31, 2020.

FOURTH QUARTER AND FISCAL YEAR 2020 RELEASE FINANCIAL HIGHLIGHTS

Fourth Quarter 2020 Financial Highlights

Portfolio Revenue Per Available Room (RevPAR): The 15 hotels Same-Store RevPAR in the fourth quarter 2020 decreased 50.1% to $44.71 compared to the fourth quarter 2019. Same-Store Average Daily Rate (ADR) decreased 29.0% to $84.83 and Same-Store occupancy decreased 29.8% to 52.7% in the fourth quarter 2020 compared to the same period in 2019.
Net Loss: Net Loss Attributable to Common Shareholders was ($5.2) million or ($0.38) per diluted share in the fourth quarter 2020 compared to ($2.0) million or ($0.17) per diluted share for the same period in 2019.
Adjusted EBITDAre: Adjusted EBITDAre decreased in the fourth quarter 2020 99% to $0.04 million from $4.0 million for the same period in 2019.
Adjusted Funds from Operations: Adjusted Funds from Operations decreased $3.8 million in the fourth quarter 2020 to ($2.0) million or ($0.17) per diluted share compared to $1.8 million or $0.15 per diluted share in the same period in 2019
Same-Store Hotel EBITDA: Same-Store Hotel EBITDA was $1.0 million in the fourth quarter 2020, a decrease of 80.5% from the same period in 2019. Margin contracted 1,920 bps to 12.6% in the fourth quarter 2020 compared to 31.8% in the same period in 2019.

Full Year 2020 Financial Highlights

Portfolio Revenue Per Available Room (RevPAR): The 15 hotels Same-Store RevPAR in 2020 decreased 48.3% to $50.98 compared to 2019. Same-Store Average Daily Rate (ADR) decreased 20.9% to $99.00 and Same-Store Occupancy decreased 34.7% to 51.49% in 2020 compared to the same period in 2019.
Net Loss: Net loss Attributable to Common Shareholders was ($19.7) million or ($1.59) per diluted share for the full year 2020 compared to ($5.6) million or ($0.48) per diluted share for 2019.
Adjusted EBITDAre: Adjusted EBITDAre decreased 89.7% to $2.2 million in 2020 from $21.2 million for the full year 2019.
Adjusted Funds from Operations: Adjusted Funds from Operations decreased $16.8 million to ($5.5) million or ($0.46) per diluted share in 2020 compared to $11.3 million or $0.94 per diluted share for the full year 2019.
Same-Store Hotel EBITDA: Same-Store Hotel EBITDA was $6.5 million in 2020, a decrease of 75.9% from the full year 2019. Margin contracted 1,900 bps to 17.8% in 2020 compared to 36.8% in 2019.

MANAGEMENT COMMENTARY

Bill Blackham, Condor’s Chief Executive Officer, commented: “The hospitality industry including Condor faced unprecedented challenges brought by the COVID-19 pandemic and the resulting near evaporation of demand. Beginning in March of 2020 Condor acted quickly to substantially reduce portfolio operating expenses, reduce corporate overhead and enhance our sales efforts to capture more than our fair share of greatly reduced demand. Our hotel portfolio returned to positive cash flow beginning in May and remained positive throughout the remainder of 2020. We also took steps to enhance liquidity including the successful completion of an amendment to our credit facility providing important covenant compliance deferrals and access to $13.4 million of revolving credit through the January 2023 extended maturity. Our portfolio continued outperforming our select service public REIT peer group with the lowest fourth quarter RevPAR decline to the same period in 2019 and 12.6% hotel portfolio margins. When eliminating the two Aloft properties and the Indigo property that have larger food and beverage platforms those proforma margins increased to 21.9%. While demand remained stable during the fourth quarter, our occupancy was 52.7% and the portfolio is positioned to reap the benefit from the anticipated leisure demand increases we expect late first and early second quarters 2021 and that we began experiencing in second half of February 2021. We anticipate that business travel led initially by local business demand, and then regional demand, will begin late in the second quarter and improve over the remainder of 2021.”

Condor Hospitality Trust

Selected Statistical and Financial Data

As of and for the three months and year ended December 31, 2020

(in thousands except statistical and per share amounts)

(Unaudited)

Three months ended December 31,

Year ended December 31,

2020

2019

2020

2019

Net Loss

(5,039)

(1,824)

(19,071)

(5,067)

Diluted Earnings (Loss) per Share

(0.38)

(0.17)

(1.59)

(0.48)

Adjusted EBITDAre

4,039

2,177

21,171

Hotel EBITDA - Same-Store*

1,045

5,364

6,525

27,030

Hotel EBITDA Margin - Same-Store*

12.6%

31.8%

17.8%

36.8%

Adjusted FFO

(2,030)

1,807

(5,468)

11,251

Adjusted FFO per Diluted Share

(0.17)

0.15

(0.46)

0.94

Same-Store RevPAR*

44.71

89.68

50.98

98.68

Same-Store Occupancy*

52.70%

75.07%

51.49%

78.88%

Same-Store ADR*

84.83

119.45

99.00

125.09

The following table summarizes key hotel statistics during the fourth quarter of 2020, amid the COVID-19 pandemic, compared to the fourth quarter of 2019:

October 2020

November 2020

December 2020

Three Months ended December 31, 2020

October 2019

November 2019

December 2019

Three Months ended December 31, 2019

Same-Store ADR*

89.51

83.02

81.28

84.83

127.15

120.11

109.47

119.45

Same-Store Occupancy*

57.01%

51.11%

49.94%

52.70%

81.21%

76.53%

67.53%

75.07%

Same-Store RevPAR*

51.03

42.43

40.59

44.71

103.26

91.91

73.93

89.68

Hotel EBITDA – Same-Store*

701

180

164

1,045

2,533

1,851

980

5,364

Hotel EBITDA Margin – Same-Store*

21.8%

7.0%

6.5%

12.6%

38.9%

33.0%

20.7%

31.8%

*Please see the Reg. G reconciliation tables at the end of this release. Financial data presented above includes results from prior to our 100% ownership of Atlanta Aloft.

OPERATIONS UPDATE

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

(in thousands)

May 2020

June 2020

July 2020

August 2020

September 2020

October 2020

November 2020

December 2020

Hotel EBITDA

438

385

772

405

701

180

164

CASH BURN BEFORE CAPITAL EXPENDITURES

The Company had a fourth quarter 2020 cash burn of $2.1 million compared to $1.4 million in the third quarter:

(in thousands)

Three months ended September 30, 2020

Three months ended December 31, 2020

Hotel EBITDA

1,562

1,045

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

(1,013)

(968)

Less: unallocated hotel and property operations expense

(57)

(61)

Adjusted Corporate EBITDA

492

Less: debt service costs

(1,865)

(2,108)

Cash burn

(1,373)

(2,092)

CORPORATE LOAN FACILITY

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

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

BALANCE SHEET AND CAPITAL MARKETS ACTIVITY

As of December 31, 2020, the Company had cash and cash equivalents (including restricted cash) of $7.5 million and available revolver borrowing capacity of $11.9 million. As of December 31, 2020, the Company had total outstanding long-term debt of $168.3 million associated with assets held for use with a weighted average maturity of 2.1 years and a weighted average interest rate of 3.79%.

CAPITAL INVESTMENTS

The Company invested $0.6 million in capital improvements throughout the portfolio in the twelve months ended December 31, 2020 to upgrade its properties and maintain brand standards.

OUTLOOK AND GUIDANCE

The Company has suspended guidance until further notice.

DIVIDENDS

On March 30, 2020, the Sixth Amendment to the Key Bank credit facility was signed which provides that no cash dividends or distributions may be made to common or preferred shareholders for the remaining term of the debt. On November 19, 2020 the Company signed the ninth amendment to the KeyBank Credit Facility that provides the conditions that must be met before cash dividends may be made to common and preferred shareholders.

EARNINGS CALL

The Company will not be conducting a fourth quarter earnings conference call.

About Condor Hospitality Trust, Inc.

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

Forward-Looking Statement

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “estimate”, “believe”, “continue”, “project”, “plan”, the negative version of these words or other similar expressions. Readers are cautioned not to place undue reliance on any such forward-looking statements.

All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Factors which could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in economic conditions generally and the real estate market specifically, legislative/regulatory changes (including changes to laws governing the taxation of real estate investment trusts), availability of capital, risks associated with debt financing, interest rates, competition, supply and demand for hotel rooms in our current and proposed market areas, policies and guidelines applicable to real estate investment trusts, risks related to uncertainty and disruption in global economic markets as a result of COVID-19 (commonly referred to as the coronavirus), and other risks and uncertainties described herein, and in our filings with the Securities and Exchange Commission (“SEC”) from time to time. These risks and uncertainties should be considered in evaluating any forward-looking statements.

The forward-looking statements represent Condor’s views as of the date on which such statements were made. Condor anticipates that subsequent events and developments may cause those views to change. These forward-looking statements should not be relied upon as representing Condor’s views as of any date subsequent to the date hereof. Condor expressly disclaims a duty to provide updates to forward-looking statements, whether as a result of new information, future events or other occurrences.

Additional factors that may affect the Company’s business or financial results are described in the risk factors included in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

SELECTED FINANCIAL DATA:

Condor Hospitality Trust, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except share and per share data)

As of December 31,

2020

2019

Assets

Investment in hotel properties, net

265,831

222,063

Investment in unconsolidated joint venture

4,244

Cash and cash equivalents

3,686

2,584

Restricted cash, property escrows

3,794

5,811

Accounts receivable, net

652

1,099

Prepaid expenses and other assets

1,230

1,118

Derivative assets, at fair value

Total Assets

275,193

236,941

Liabilities and Equity

Liabilities

Accounts payable, accrued expenses, and other liabilities

5,372

5,523

Dividends and distributions payable

762

145

Land option liability

8,497

Derivative liabilities, at fair value

880

366

Convertible debt, at fair value

16,875

1,080

Long-term debt, net of deferred financing costs

166,526

134,001

Total Liabilities

198,912

141,115

Equity

Shareholders' Equity

Preferred stock, 40,000,000 shares authorized:

6.25% Series E, 925,000 shares authorized, $.01 par value, 925,000 shares outstanding, liquidation preference of $10,012 and $9,395

10,050

Common stock, $.01 par value, 200,000,000 shares authorized;12,014,743 and 11,993,608 shares outstanding

120

Additional paid-in capital

233,332

233,189

Accumulated deficit

(167,263)

(147,582)

Total Shareholders' Equity

76,239

95,777

Noncontrolling interest in consolidated partnership (Condor Hospitality Limited Partnership), redemption value of $17 and $47

Total Equity

76,281

95,826

Total Liabilities and Equity

275,193

236,941

Condor Hospitality Trust, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three months ended December 31,

Year ended December 31,

2020

2019

2020

2019

Revenue

Room rentals and other hotel services

8,309

14,306

35,188

61,052

Operating Expenses

Hotel and property operations

7,325

9,503

29,563

38,769

Depreciation and amortization

2,689

2,407

10,956

9,568

General and administrative

905

1,255

4,006

5,700

Acquisition and terminated transactions

Strategic alternatives, net

(5,566)

224

(4,706)

2,110

Total operating expenses

5,353

13,412

39,819

56,185

Operating income (loss)

2,956

894

(4,631)

4,867

Net loss on disposition of assets

(5)

(45)

(18)

(36)

Equity in earnings (loss) of joint venture

(405)

190

Net loss on derivatives and convertible debt

(5,722)

(155)

(6,331)

(1,071)

Other income (expense), net

(24)

(65)

(104)

Interest expense

(2,328)

(1,807)

(8,481)

(7,976)

Loss before income taxes

(5,074)

(1,542)

(19,446)

(4,130)

Income tax benefit (expense)

(282)

375

(937)

Net loss

(5,039)

(1,824)

(19,071)

(5,067)

Loss attributable to noncontrolling interest

Net loss attributable to controlling interests

(5,037)

(1,822)

(19,064)

(5,048)

Dividends declared and undeclared on preferred stock

(159)

(144)

(617)

(578)

Net loss attributable to common shareholders

(5,196)

(1,966)

(19,681)

(5,626)

Earnings (Loss) per Share

Total - Basic Earnings (Loss) per Share

(0.38)

(0.17)

(1.59)

(0.48)

Total - Diluted Earnings (Loss) per Share

(0.38)

(0.17)

(1.59)

(0.48)

Reconciliation of Non-GAAP Financial Measures (Unaudited)

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

FFO and AFFO

The following table reconciles net loss to FFO and AFFO for the three months and year ended December 31, 2020 and 2019 (in thousands). All amounts presented include our portion of the results of our unconsolidated Atlanta JV.

Three months ended

Years ended

December 31,

Reconciliation of Net Loss to FFO and AFFO

2020

2019

2020

2019

Net loss

(5,039)

(1,824)

(19,071)

(5,067)

Depreciation and amortization expense

2,689

2,407

10,956

9,568

Depreciation and amortization expense from JV

300

145

1,195

Loss on disposition of assets

Net loss on disposition of assets from JV

FFO

(2,345)

928

(7,952)

5,734

Dividends declared and undeclared on preferred stock

(159)

(144)

(617)

(578)

FFO attributable to common shares and common units

(2,504)

784

(8,569)

5,156

Net loss on derivatives and convertible debt

5,722

155

6,331

1,071

Net loss on derivatives from JV

Acquisitions and terminated transactions expense

Strategic alternatives expense, net

(5,566)

224

(4,706)

2,110

Loss on extinguishment of debt from JV

138

Stock-based compensation expense

(63)

125

173

1,026

Amortization of deferred financing fees

381

286

1,210

1,267

Amortization of deferred financing fees from JV

210

444

AFFO attributable to common shares and common units

(2,030)

1,807

(5,468)

11,251

FFO attributable to common shares and partnership units - Basic

(2,504)

784

(8,569)

5,156

Convertible note interest and fair value adjustments

(103)

FFO attributable to common shares and partnership units - Diluted

(2,504)

681

(8,569)

5,156

FFO per common share and partnership unit - Basic

(0.21)

0.07

(0.72)

0.43

FFO per common share and partnership unit - Diluted

(0.21)

0.06

(0.72)

0.43

Weighted average common shares and partnership units - Basic FFO

11,986,930

11,935,689

11,971,197

11,910,443

Weighted average common shares and partnership units - Diluted FFO

11,986,930

12,035,028

11,971,197

11,925,587

AFFO attributable to common shares and partnership units - Basic

(2,030)

1,807

(5,468)

11,251

Convertible note interest

Preferred dividends at stated rates

578

AFFO attributable to common shares and partnership units - Diluted

(2,030)

1,807

(5,468)

11,892

AFFO per common share and partnership unit - Basic

(0.17)

0.15

(0.46)

0.94

AFFO per common share and partnership unit - Diluted

(0.17)

0.15

(0.46)

0.94

Weighted average common shares and partnership units - Basic AFFO

11,986,930

11,935,689

11,971,197

11,910,443

Weighted average common shares and partnership units - Diluted AFFO

11,986,930

11,937,759

11,971,197

12,690,967

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

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

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

The following table reconciles net loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA for the three months and year ended December 31, 2020 and 2019 (in thousands). All amounts presented our portion of the results of our unconsolidated Atlanta JV.

Three months ended

Year ended

December 31,

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

2020

2019

2020

2019

Net loss

(5,039)

(1,824)

(19,071)

(5,067)

Interest expense

2,328

1,807

8,481

7,976

Interest expense from JV

495

225

2,140

Loss on extinguishment of debt from JV

138

Income tax expense (benefit)

(35)

282

(375)

937

Depreciation and amortization expense

2,689

2,407

10,956

9,568

Depreciation and amortization expense from JV

300

145

1,195

EBITDA

(57)

3,467

361

16,887

Net loss on disposition of assets

Net loss on disposition of assets from JV

EBITDAre

(52)

3,512

379

16,925

Net loss on derivatives and convertible debt

5,722

155

6,331

1,071

Net loss on derivative from JV

Stock-based compensation and LTIP expense

(63)

125

173

1,026

Acquisition and terminated transactions expense

Strategic alternatives, net

(5,566)

224

(4,706)

2,110

Adjusted EBITDAre

4,039

2,177

21,171

General and administrative expense, excluding stock compensation and LTIP expense

968

1,130

3,833

4,674

Other (income) expense, net

(25)

104

Unallocated hotel and property operations expense

339

227

Hotel EBITDA

1,045

5,267

6,414

26,176

Revenue

8,309

14,306

35,188

61,052

JV revenue

2,041

1,218

10,133

Total Company and JV revenue

8,309

16,347

36,406

71,185

Hotel EBITDA as a percentage of revenue

12.6%

32.2%

17.6%

36.8%

Reconciliation of Hotel EBITDA to Hotel EBITDA Proforma

Three months ended December 31 2020,

Hotel EBITDA

1,045

Less: Proforma Property Exclusions

350

Hotel EBITDA Proforma*

1,395

Total Company and JV revenue

8,309

Less: Proforma Property Exclusions

(1,952)

Hotel Revenue Proforma*

6,357

Proforma Margin

21.9%

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

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

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

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

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

Same-Store Revenue and Hotel EBITDA

The following tables present our same-store revenue, Hotel EBITDA, and Hotel EBITDA margin broken down by property type for the three and year ended December 31, 2020 and 2019 (in thousands) and reconcile these same-store measures to total revenue and Hotel EBITDA as presented above. Same-store results include all our hotels owned at December 31, 2020. Results for the hotels for periods prior to our ownership were provided to us by prior owners and have not been adjusted by us or audited or reviewed by our independent auditors. All amounts presented include our portion of the results of our unconsolidated Atlanta Aloft JV. Results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included here only for comparison purposes.

Revenue - Reconciliation of Actual to Same-Store

Three months ended December 31,

Year ended December 31,

2020

2019

2020

2019

Condor and JV Revenue - Actual

8,309

16,347

36,406

71,185

Revenue earned on properties disposed of prior to December 31, 2020 during the period of ownership

(272)

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

510

304

2,533

Total Revenue - Same-Store

8,309

16,857

36,710

73,446

Hotel EBITDA - Reconciliation of Actual to Same-Store

Three months ended December 31,

Year ended December 31,

2020

2019

2020

2019

Condor and JV Hotel EBITDA - Actual

1,045

5,267

6,414

26,176

Hotel EBITDA earned on properties disposed of prior to December 31, 2020 during the period of ownership

(63)

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

111

917

Total Hotel EBITDA - Same-Store

1,045

5,364

6,525

27,030

Hotel EBITDA Margin by Property Type

Three months ended December 31,

Year ended December 31,

2020

2019

2020

2019

Total Hotel EBITDA Margin - Same-Store

12.6%

31.8%

17.8%

36.8%

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

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

Month ending Oct 31, 2019

Month ending Nov 30, 2019

Month ending Dec 31, 2019

Month ending May 31, 2020

Month ending June 30, 2020

Month ending July 31, 2020

Month ending Aug 31, 2020

Month ending Sept 30, 2020

Month ending Oct 31, 2020

Month ending Nov 30, 2020

Month ending Dec 31, 2020

Net income (loss)

212

(380)

(1,656)

(1,999)

(1,571)

(1,670)

(1,816)

(1,321)

4,365

(1,826)

(7,578)

Interest expense

631

593

583

698

676

707

708

688

743

794

791

Interest expense from JV

165

Income tax expense (benefit)

272

(79)

(53)

Depreciation and amortization expense

801

803

926

927

903

904

882

Depreciation and amortization expense from JV

100

EBITDA

1,914

1,286

267

(366)

(48)

(28)

(173)

303

6,020

(119)

(5,958)

Net loss on disposition of assets

EBITDAre

1,948

1,286

278

(366)

(48)

(28)

(172)

304

6,021

(117)

(5,956)

Net loss (gain) on derivatives and convertible debt

155

(18)

(3)

(126)

(3)

5,728

Stock-based compensation expense

(123)

Acquisition and terminated transactions expense

224

Strategic alternatives, net

107

(135)

494

602

(5,577)

Adjusted EBITDAre

2,089

1,369

581

(331)

342

817

318

(103)

(174)

General and administrative expense, excluding stock compensation expense

336

394

400

313

276

337

405

324

318

326

Other expense (income), net

(2)

(499)

(61)

Unallocated hotel and property operations expense

Hotel EBITDA

2,464

1,794

1,009

438

385

772

405

701

180

164

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

(29)

Hotel EBITDA - Same-Store

2,533

1,851

980

438

385

772

405

701

180

164

Revenue

5,505

4,704

4,097

1,706

2,280

2,782

3,058

3,001

3,215

2,560

2,534

JV Revenue

807

728

506

Condor and JV Revenue

6,312

5,432

4,603

1,706

2,280

2,782

3,058

3,001

3,215

2,560

2,534

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

202

182

126

Total Revenue - Same-Store

6,514

5,614

4,729

1,706

2,280

2,782

3,058

3,001

3,215

2,560

2,534

Hotel EBITDA - Same-Store as a percentage of revenue

38.9%

33.0%

20.7%

0.8%

19.2%

13.8%

25.2%

13.5%

21.8%

7.0%

6.5%

Condor Hospitality Trust, Inc. Operating Statistics

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

Three months ended December 31,

2020

2019

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

Growth

Solomons Hilton Garden Inn

34.99%

96.92

33.91

68.55%

114.40

78.43

-56.8%

Atlanta Hotel Indigo

39.63%

87.31

34.60

70.61%

98.12

69.28

-50.1%

Jacksonville Courtyard by Marriott

53.14%

76.57

40.69

78.77%

106.88

84.19

-51.7%

San Antonio SpringHill Suites

47.37%

74.73

35.40

72.71%

125.19

91.03

-61.1%

Leawood Aloft

38.44%

80.69

31.02

72.39%

124.85

90.37

-65.7%

Lexington Home2 Suites

60.96%

85.79

52.30

71.19%

117.42

83.59

-37.4%

Round Rock Home2 Suites

61.38%

70.44

43.24

76.30%

109.55

83.59

-48.3%

Tallahassee Home2 Suites

59.16%

99.31

58.75

72.51%

122.92

89.13

-34.1%

South Haven Home2 Suites

86.94%

86.83

75.48

80.60%

113.16

91.21

-17.2%

Lake Mary Hampton Inn & Suites

53.42%

97.40

52.03

78.60%

132.24

103.93

-49.9%

Austin Residence Inn

77.26%

79.92

61.74

80.09%

132.42

106.06

-41.8%

El Paso Fairfield Inn

63.34%

77.38

49.01

87.47%

106.42

93.09

-47.3%

Austin TownePlace Suites

47.75%

72.07

34.41

75.69%

113.57

85.97

-60.0%

Summerville Home2 Suites

54.35%

97.62

53.05

88.58%

120.18

106.45

-50.2%

Atlanta Aloft JV

38.64%

89.57

34.61

65.83%

137.16

90.30

-61.7%

Total Same-Store Portfolio

52.70%

84.83

44.71

75.07%

119.45

89.68

-50.1%

Year ended December 31,

2020

2019

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

Growth

Solomons Hilton Garden Inn

45.59%

109.88

50.10

75.63%

120.98

91.49

-45.2%

Atlanta Hotel Indigo

49.85%

92.84

46.28

74.77%

105.43

78.83

-41.3%

Jacksonville Courtyard by Marriott

52.20%

95.43

49.81

77.12%

117.51

90.62

-45.0%

San Antonio SpringHill Suites

42.05%

95.40

40.12

78.37%

129.33

101.36

-60.4%

Leawood Aloft

41.88%

97.15

40.69

70.22%

130.45

91.60

-55.6%

Lexington Home2 Suites

57.18%

91.27

52.18

78.47%

116.46

91.39

-42.9%

Round Rock Home2 Suites

52.79%

81.61

43.09

82.17%

115.04

94.53

-54.4%

Tallahassee Home2 Suites

60.68%

109.49

66.44

84.96%

124.67

105.91

-37.3%

South Haven Home2 Suites

73.32%

94.63

69.39

88.16%

117.76

103.82

-33.2%

Lake Mary Hampton Inn & Suites

46.31%

117.18

54.26

78.96%

137.14

108.29

-49.9%

Austin Residence Inn

67.58%

97.36

65.80

82.20%

135.13

111.08

-40.8%

El Paso Fairfield Inn

52.66%

91.26

48.06

86.38%

105.88

91.45

-47.5%

Austin TownePlace Suites

46.96%

86.51

40.63

73.21%

112.49

82.35

-50.7%

Summerville Home2 Suites

60.62%

102.16

61.93

84.65%

127.95

108.30

-42.8%

Atlanta Aloft JV

39.43%

113.22

44.65

76.21%

151.09

115.15

-61.2%

Total Same-Store Portfolio

51.49%

99.00

50.98

78.88%

125.09

98.68

-48.3%

Condor Hospitality Trust, Inc.

Property List | As of December 31, 2020

New Investment Platform | Acquired from January 1, 2012 -December 31, 2020

Hotel Name

City

State

Rooms

Acquisition Date

Purchase Price (in millions)

Hilton Garden Inn

Dowell/Solomons

100

05/25/2012

$11.5

SpringHill Suites

San Antonio

116

10/01/2015

$17.5

Courtyard by Marriott

Jacksonville

120

10/02/2015

$14.0

Hotel Indigo

College Park

142

10/02/2015

$11.0

Aloft1

Atlanta

254

08/22/2016

$43.6

Aloft

Leawood

156

12/14/2016

$22.5

Home2 Suites

Lexington

103

03/24/2017

$16.5

Home2 Suites

Round Rock

03/24/2017

$16.8

Home2 Suites

Tallahassee

132

03/24/2017

$21.5

Home2 Suites

Southaven

105

04/14/2017

$19.0

Hampton Inn & Suites

Lake Mary

130

06/19/2017

$19.3

Fairfield Inn & Suites

El Paso

124

08/31/2017

$16.4

Residence Inn

Austin

120

08/31/2017

$22.4

TownePlace Suites

Austin

122

01/18/2018

$19.8

Home2 Suites

Summerville

02/21/2018

$16.3

Total Portfolio | December 31, 2020

1,908

$288.1

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

55 Dispositions | For Period January 1, 2015 - December 31, 2020

Hotel Name

City

State

Rooms

Disposition Date

Gross Proceeds (in millions)

Super 8

West Plains

01/15/2015

$1.5

Super 8

Green Bay

01/29/2015

$2.2

Super 8

Columbus

03/16/2015

$0.9

Sleep Inn & Suites

Omaha

03/19/2015

$2.9

Savannah Suites

Chamblee

120

04/01/2015

$4.4

Savannah Suites

Augusta

172

04/01/2015

$3.4

Super 8

Batesville

04/30/2015

$1.5

Days Inn

Ashland

07/01/2015

$2.2

Comfort Inn

Alexandria

150

07/13/2015

$12.0

Days Inn

Alexandria

200

07/13/2015

$6.5

Super 8

Manhattan

08/28/2015

$3.2

Quality Inn

Sheboygan

10/06/2015

$2.3

Super 8

Hays

10/14/2015

$1.9

Days Inn

Glasgow

10/16/2015

$1.8

Super 8

Tomah

10/21/2015

$1.4

Rodeway Inn

Fayetteville

120

11/03/2015

$2.6

Savannah Suites

Savannah

160

12/22/2015

$4.0

Total 2015

1,673

$54.7

Super 8

Kirksville

01/04/2016

$1.5

Super 8

Lincoln

133

01/07/2016

$2.8

Savannah Suites

Greenville

170

01/08/2016

$2.7

Super 8

Portage

03/30/2016

$2.4

Super 8

O'Neill

04/25/2016

$1.7

Quality Inn

Culpeper

05/10/2016

$2.2

Super 8

Storm Lake

05/19/2016

$2.8

Clarion Inn

Cleveland

05/24/2016

$2.2

Super 8

Coralville

05/26/2016

$3.4

Super 8

Keokuk

05/27/2016

$2.2

Comfort Inn

Chambersburg

06/06/2016

$2.1

Super 8

Pittsburg

08/08/2016

$1.6

Super 8

Mount Pleasant

09/09/2016

$1.9

Quality Inn

Danville

09/19/2016

$2.3

Super 8

Menomonie

09/26/2016

$3.0

Comfort Inn

Glasgow

10/14/2016

$2.4

Days Inn

Sioux Falls

11/04/2016

$2.1

Comfort Inn

Shelby

11/07/2016

$4.1

Comfort Inn

Rocky Mount

11/17/2016

$2.2

Days Inn

Farmville

11/17/2016

$2.4

Comfort Suites

Marion

11/18/2016

$3.0

Comfort Inn

Farmville

11/30/2016

$2.6

Quality Inn

Princeton

12/05/2016

$2.1

Super 8

Burlington

12/21/2016

$2.8

Savannah Suites

Atlanta

164

12/22/2016

$2.9

Total 2016

1,864

$61.4

Comfort Inn

New Castle

03/27/2017

$2.5

Super 8

Billings

106

03/28/2017

$4.2

Comfort Inn

Harlan

04/03/2017

$1.9

Comfort Suites

Lafayette

04/18/2017

$3.9

Key West Inn

Key Largo

05/17/2017

$7.6

Quality Inn

Morgantown

08/30/2017

$2.6

Days Inn

Bossier City

176

09/13/2017

$1.4

Comfort Inn & Suites

Warsaw

12/20/2017

$5.0

Total 2017

676

$29.1

Supertel Inn/Conference Center

Creston

01/25/2018

$2.1

Comfort Suites

South Bend

135

03/15/2018

$6.1

Comfort Suites

Ft. Wayne

127

05/30/2018

$7.1

Super 8

Creston

121

08/30/2018

$5.1

Total 2018

424

$20.4

Quality Inn

Solomons

03/22/2019

$4.3

Total 2019

$4.3

Total Dispositions

4,696

$169.9

Acquisitions | For Period January 1, 2015 - December 31, 2020

Hotel Name

City

State

Rooms

Acquisition Date

Purchase Price (in millions)

SpringHill Suites

San Antonio

116

10/01/2015

$17.5

Courtyard by Marriott

Jacksonville

120

10/02/2015

$14.0

Hotel Indigo

College Park

142

10/02/2015

$11.0

Aloft1

Atlanta

254

08/22/2016

$43.6

Aloft

Leawood

156

12/14/2016

$22.5

Home2 Suites

Lexington

103

03/24/2017

$16.5

Home2 Suites

Round Rock

03/24/2017

$16.8

Home2 Suites

Tallahassee

132

03/24/2017

$21.5

Home2 Suites

Southaven

105

04/14/2017

$19.0

Hampton Inn & Suites

Lake Mary

130

06/19/2017

$19.3

Fairfield Inn & Suites

El Paso

124

08/31/2017

$16.4

Residence Inn

Austin

120

08/31/2017

$22.4

TownePlace Suites

Austin

122

01/18/2018

$19.8

Home2 Suites

Summerville

02/21/2018

$16.3

Total Acquisitions

1,808

$276.6

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20210318005992/en/

Jill Burger Interim Chief Financial Officer and Chief Accounting Officer jburger@trustcondor.com (402) 316-1012

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