Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate
investment trust (REIT), reported today its financial results for
the quarter ended March 31, 2014.
HIGHLIGHTS
- RevPAR: 12.0% pro forma increase for
the 17-hotel portfolio and 7.1% pro forma increase for the 20-hotel
portfolio over the same period in 2013.
- Adjusted Hotel
EBITDA Margin: 320 basis point pro forma increase
for the 17-hotel portfolio and 220 basis point pro forma increase
for the 20-hotel portfolio over the same period in 2013.
- Adjusted Hotel
EBITDA: $21.9 million.
- Adjusted
Corporate EBITDA: $18.0 million.
- Adjusted
FFO: $12.2 million or $0.25 per diluted common
share.
- Dividends: Increased first quarter
2014 dividend by 15.4% to $0.30 per common share (4.5% annualized
yield based on the closing price of the Trust’s common shares on
April 29, 2014).
“We are off to a great start in 2014 with strong performance by
our hotel portfolio during the first quarter. Our 17-hotel
portfolio outperformed our expectations with a 12.0% pro forma
increase in RevPAR and 320 basis points of pro forma margin
expansion as a result of our concentration in strong markets and
asset management initiatives. We are also pleased with the
improvements we are seeing at the hotels acquired in 2013, driven
by enhanced revenue management and operational changes we have
instituted which have significantly improved margins,” said James
L. Francis, Chesapeake Lodging Trust’s President and Chief
Executive Officer.
Mr. Francis continued, “We are also pleased to report that
substantially all of the guestrooms at our W Chicago – Lakeshore
have now been renovated and the lobby, restaurant and bar are
expected to be completed in the next several weeks, all within our
expected time frame and budgeted costs. Initial feedback from
guests has been extremely positive and we couldn’t be more excited
about the future prospects of the W Chicago – Lakeshore and the
spectacular new product.”
CONSOLIDATED FINANCIAL RESULTS
The following is a summary of the consolidated financial results
for the three months ended March 31, 2014 and 2013 (in millions,
except share and per share amounts):
Three months ended March 31,
2014(1)
2013(2)
Total revenue $ 94.8 $ 70.6 Net loss available to
common shareholders $ (0.2 ) $ (4.9 ) Net loss per diluted common
share $ (0.01 ) $ (0.11 ) Adjusted Hotel EBITDA $ 21.9 $
15.6 Adjusted Corporate EBITDA $ 18.0 $ 12.2 AFFO
available to common shareholders $ 12.2 $ 6.8 AFFO per diluted
common share $ 0.25 $ 0.15
Weighted-average number of common shares
outstanding - basic and diluted
48,961,556 44,493,165 ________________________________ (1)
Includes results of operations of 20 hotels for the full period.
(2) Includes results of operations of 15 hotels for the full period
and two hotels for part of the period.
HOTEL OPERATING RESULTS
Management assesses the operating performance of its hotels
irrespective of the hotel owner during the periods compared. The
Trust uses the term “pro forma” to refer to metrics that include,
or comparison of metrics that are based on, the hotel operating
results of previous ownership for either a portion of or the entire
period. Since five of the Trust’s hotels owned as of March 31, 2014
were acquired at various times during 2013, the key operating
metrics for the 17-hotel portfolio and the 20-hotel portfolio
reflect the pro forma operating results of those five hotels for
the first quarter 2013. Included in the following table are
comparisons of occupancy, average daily rate (ADR), room revenue
per available room (RevPAR), Adjusted Hotel EBITDA, and Adjusted
Hotel EBITDA Margin, the key operating metrics that management uses
to assess the performance of its hotels for the three months ended
March 31, 2014 and 2013 (in thousands, except ADR and RevPAR):
Three months ended March 31, 2014
2013(1) Change
17-Hotel
Portfolio(2)
Occupancy 78.6% 74.3% 430 bps ADR $ 179.26 $ 169.36 5.8% RevPAR $
140.90 $ 125.79 12.0% Adjusted Hotel EBITDA $ 20,948 $
16,294 28.6% Adjusted Hotel EBITDA Margin 25.1% 21.9% 320 bps
20-Hotel
Portfolio
Occupancy 74.4% 72.7% 170 bps ADR $ 178.51 $ 170.51 4.7% RevPAR $
132.80 $ 123.96 7.1% Adjusted Hotel EBITDA $ 21,940 $ 18,492
18.6% Adjusted Hotel EBITDA Margin 23.1% 20.9% 220 bps
___________________________ (1) Includes results of
operations for certain hotels prior to their acquisition by the
Trust. (2) Excludes the W Chicago – Lakeshore, the W New Orleans,
and the Holiday Inn New York City Midtown – 31st Street, as these
hotels are undergoing comprehensive renovations during 2014.
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.
MAJOR REPOSITIONINGS
The comprehensive renovation at the 520-room W Chicago –
Lakeshore, which commenced in the third quarter of 2013, is
expected to be substantially completed in May 2014 and within the
Trust’s budgeted cost of $38.0 million.
The Trust continues to expect that the comprehensive renovation
at the 410-room W New Orleans to reposition the hotel to the Le
Meridien brand will cost approximately $29.0 million, commence in
May 2014, and be completed in the fourth quarter of 2014.
On February 5, 2014, the Trust announced that it had entered
into a franchise agreement with a Hyatt affiliate to convert the
122-room Holiday Inn New York City Midtown – 31st Street to the
Hyatt Herald Square. Conversion of the hotel is expected to occur
following the completion of a comprehensive renovation, which the
Trust continues to expect will cost approximately $6.0 million. The
hotel will be closed throughout the renovation, which is expected
to commence and be completed in the third quarter of 2014.
CAPITAL MARKETS
The Trust did not sell any common shares under the continuous
at-the-market (ATM) program during the first quarter of 2014 and
through the date of this release.
DIVIDENDS
On January 15, 2014, the Trust paid dividends in the amounts of
$0.26 per share to its common shareholders and $0.484375 per share
to its preferred shareholders, both of record as of December 31,
2013. On February 20, 2014, the Trust declared dividends in the
amounts of $0.30 per share payable to its common shareholders and
$0.484375 per share payable to its preferred shareholders, both of
record as of March 31, 2014. Both dividends were paid on April 15,
2014.
2014 OUTLOOK
The Trust is increasing its 2014 outlook to incorporate its
first quarter results and recent operating trends and fundamentals.
The updated outlook assumes no additional acquisitions,
dispositions, or financing transactions (in millions, except RevPAR
and per share amounts):
Second Quarter
2014
Outlook Low High
CONSOLIDATED: Net income available
to common shareholders $ 15.7 $ 17.2 Net income per diluted common
share $ 0.32 $ 0.35 Adjusted Corporate EBITDA $ 40.9 $ 42.6
AFFO available to common shareholders $ 29.0 $ 30.5 AFFO per
diluted common share $ 0.59 $ 0.62 Corporate general and
administrative expense $ 3.7 $ 3.8 Weighted-average number
of diluted common shares outstanding 49.0 49.0
HOTEL
PORTFOLIO:
17-Hotel
Portfolio(1)
RevPAR $ 184.00 $ 188.00 Pro forma RevPAR increase over 2013(2)
5.0% 7.0% Adjusted Hotel EBITDA $ 38.8 $ 40.3 Adjusted Hotel EBITDA
Margin 36.0% 36.7% Pro forma Adjusted Hotel EBITDA Margin increase
over 2013(2) 100 bps 175 bps
20-Hotel
Portfolio
RevPAR $ 179.00 $ 183.00 Pro forma RevPAR increase over 2013(2)
2.0% 4.0% Adjusted Hotel EBITDA $ 44.6 $ 46.4 Adjusted Hotel EBITDA
Margin 35.2% 35.9% Pro forma Adjusted Hotel EBITDA Margin increase
over 2013(2) 25 bps 100 bps __________________________ (1)
Excludes the W Chicago – Lakeshore, the W New Orleans, and the
Holiday Inn New York City Midtown – 31st Street, as these hotels
are undergoing comprehensive renovations during 2014. (2) The
comparable 2013 period includes results of operations for certain
hotels prior to their acquisition by the Trust.
Full Year
2014
Updated Outlook Previous Outlook Low High Low
High
CONSOLIDATED: Net income
available to common shareholders $ 39.7 $ 44.5 $ 38.9 $ 43.7 Net
income per diluted common share $ 0.81 $ 0.91 $ 0.79 $ 0.89
Adjusted Corporate EBITDA $ 132.7 $ 138.0 $ 131.2 $ 136.5
AFFO available to common shareholders $ 94.6 $ 99.4 $ 93.1 $ 97.9
AFFO per diluted common share $ 1.93 $ 2.03 $ 1.90 $ 2.00
Corporate general and administrative expense $ 14.5 $ 15.2 $ 14.0 $
14.7 Weighted-average number of diluted common shares
outstanding 49.0 49.0 49.0 49.0
HOTEL PORTFOLIO:
17-Hotel
Portfolio(1)
RevPAR $ 168.00 $ 171.00 $ 167.00 $ 170.00 Pro forma RevPAR
increase over 2013(2) 5.5% 7.5% 5.0% 7.0% Adjusted Hotel EBITDA $
129.8 $ 134.8 $ 128.0 $ 133.0 Adjusted Hotel EBITDA Margin 32.7%
33.4% 32.5% 33.2% Pro forma Adjusted Hotel EBITDA Margin increase
over 2013(2) 100 bps 175 bps 75 bps 150 bps
20-Hotel
Portfolio
RevPAR $ 163.00 $ 166.00 $ 162.00 $ 165.00 Pro forma RevPAR
increase over 2013(2) 4.0% 6.0% 3.5% 5.5% Adjusted Hotel EBITDA $
147.2 $ 153.2 $ 145.2 $ 151.2 Adjusted Hotel EBITDA Margin 31.7%
32.4% 31.4% 32.1% Pro forma Adjusted Hotel EBITDA Margin increase
over 2013(2) 50 bps 125 bps 25 bps 100 bps
__________________________
(1) Excludes the W Chicago – Lakeshore, the W New Orleans,
and the Holiday Inn New York City Midtown – 31st Street, as these
hotels are undergoing comprehensive renovations during 2014. (2)
The comparable 2013 period includes results of operations for
certain hotels prior to their acquisition by the Trust.
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 total revenues less
total hotel operating expenses. The Trust believes that Hotel
EBITDA provides investors a useful financial measure to evaluate
the Trust’s hotel operating performance.
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. The Trust
believes that Adjusted Hotel EBITDA provides investors with another
useful financial measure to evaluate the Trust’s hotel operating
performance.
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. 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, 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 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.
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 Wednesday, April 30,
2014 at 5:30 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 21752926. 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 May 7, 2014. To access the
replay, dial (855) 859-2056 (U.S./Canadian callers) or (404)
537-3406 (International callers). The conference call ID is
21752926. 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
20 hotels with an aggregate of 5,932 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
expectations regarding the future Hotel EBITDA and Adjusted Hotel
EBITDA of its existing hotels and the Trust’s 2014 outlook, and the
Trust’s expectation of its ability and the cost and timing of
completing various renovations at its existing hotels.
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: the Trust’s
ability to complete renovations timely and within expected costs;
the Trust’s ability to continue to satisfy complex rules in order
for it to remain a REIT for federal income tax purposes; 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 April 30, 2014,
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) March 31, 2014 December 31,
2013 (unaudited) ASSETS Property and equipment, net $
1,431,589 $ 1,422,439 Intangible assets, net 38,631 38,781 Cash and
cash equivalents 34,684 28,713 Restricted cash 33,841 34,235
Accounts receivable, net 18,061 13,011 Prepaid expenses and other
assets 13,899 10,478 Deferred financing costs, net
5,782 6,501 Total
assets
$ 1,576,487 $
1,554,158 LIABILITIES AND
SHAREHOLDERS' EQUITY Long-term debt $ 564,239 $ 531,771 Accounts
payable and accrued expenses 48,307 45,982 Other liabilities
31,714 29,848 Total
liabilities
644,260
607,601 Commitments and contingencies
Preferred shares, $.01 par value;
100,000,000 shares authorized; Series A Cumulative Redeemable
Preferred Shares; 5,000,000 shares issued and outstanding ($127,422
liquidation preference)
50 50
Common shares, $.01 par value; 400,000,000
shares authorized; 50,033,997 shares and 49,574,005 shares issued
and outstanding, respectively
501 496 Additional paid-in capital 992,308 991,417 Cumulative
dividends in excess of net income (60,593 ) (45,339 ) Accumulated
other comprehensive loss
(39 )
(67 ) Total shareholders' equity
932,227 946,557
Total liabilities and shareholders' equity
$ 1,576,487 $
1,554,158 SUPPLEMENTAL
CREDIT INFORMATION: Fixed charge coverage ratio(1) 2.60 2.67
Leverage ratio(1) 34.9 % 33.5 %
__________________________
(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) (unaudited) Three Months Ended March
31, 2014 2013 REVENUE Rooms $ 70,839 $ 51,544 Food and
beverage 20,268 15,912 Other
3,667
3,145 Total revenue
94,774 70,601
EXPENSES Hotel operating expenses: Rooms 18,619 14,019 Food and
beverage 16,210 12,592 Other direct 1,781 1,771 Indirect
36,149 26,580
Total hotel operating expenses
72,759 54,962 Depreciation and amortization 12,498 8,839 Air rights
contract amortization 130 130 Corporate general and administrative
3,920 3,342 Hotel acquisition costs
-
2,899 Total operating expenses
89,307 70,172
Operating income 5,467 429 Interest income - 218 Interest
expense
(6,686 )
(5,441 ) Loss before income taxes
(1,219 ) (4,794 ) Income tax benefit
3,397 2,284
Net income (loss) 2,178 (2,510 ) Preferred share dividends
(2,422 )
(2,422 ) Net loss available to
common shareholders
$ (244 )
$ (4,932 ) Net loss
per common share - basic and diluted $ (0.01 ) $ (0.11 )
Weighted-average number of common shares outstanding - basic and
diluted 48,961,556 44,493,165
CHESAPEAKE LODGING TRUST CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands)
(unaudited) Three Months Ended March 31, 2014
2013 Cash flows from operating activities: Net income (loss)
$ 2,178 $ (2,510 )
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization 12,498 8,839 Air rights contract
amortization 130 130 Deferred financing costs amortization 719 619
Share-based compensation 1,326 1,133 Other (141 ) (131 ) Changes in
assets and liabilities: Accounts receivable, net (5,050 ) (4,710 )
Prepaid expenses and other assets (3,421 ) (2,697 ) Accounts
payable and accrued expenses 2,135 3,021 Other liabilities
(7 ) (6
) Net cash provided by operating activities
10,367 3,688
Cash flows from investing activities: Acquisition of hotels, net of
cash acquired - (101,941 ) Receipt of deposit on hotel acquisition
- 700 Improvements and additions to hotels (21,648 ) (4,572 )
Repayment of hotel construction loan - 7,810 Change in restricted
cash
394 (1,057
) Net cash used in investing activities
(21,254 ) (99,060
) Cash flows from financing activities:
Proceeds from sale of common shares, net of underwriting fees -
166,083 Payment of offering costs related to sale of common shares
- (169 ) Borrowings under revolving credit facility 35,000 5,000
Repayments under revolving credit facility - (55,000 ) Proceeds
from issuance of mortgage debt - 67,000 Scheduled principal
payments on mortgage debt (2,479 ) (800 ) Payment of deferred
financing costs - (1,048 ) Deposit on loan application - (390 )
Payment of dividends to common shareholders (12,811 ) (8,748 )
Payment of dividends to preferred shareholders (2,422 ) (2,422 )
Repurchase of common shares
(430 )
(1,088 ) Net cash provided by
financing activities
16,858
168,418 Net increase in cash 5,971 73,046 Cash
and cash equivalents, beginning of period
28,713 33,194 Cash
and cash equivalents, end of period
$
34,684 $ 106,240
CHESAPEAKE LODGING TRUST
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in
thousands, except per share data) (unaudited)
The following table calculates Hotel
EBITDA, Adjusted Hotel EBITDA, and Adjusted Hotel EBITDA Margin for
the 17-hotel portfolio and the 20-hotel portfolio for the three
months ended March 31, 2014 and 2013:
Three Months Ended March 31,
17-Hotel Portfolio(1)
20-Hotel Portfolio 2014
2013(2)
2014
2013(2)
Total revenue $ 83,409 $ 74,295 $ 94,774 $ 88,510 Less:
Total hotel operating expenses
62,386
57,933 72,759
69,950 Hotel EBITDA 21,023 16,362 22,015
18,560 Less: Non-cash amortization(3)
(75 ) (68
) (75 )
(68 ) Adjusted Hotel EBITDA
$ 20,948 $
16,294 $ 21,940
$ 18,492 Adjusted
Hotel EBITDA Margin 25.1 % 21.9 % 23.1 % 20.9 %
__________________________
(1)
Excludes the W Chicago – Lakeshore, the W
New Orleans, and the Holiday Inn New York City Midtown – 31st
Street, as these hotels are undergoing comprehensive renovations
during 2014.
(2) Includes results of operations for certain hotels prior to
their acquisition by the Trust. (3) Includes non-cash amortization
of ground lease asset, deferred franchise costs, deferred key
money, and unfavorable contract liability.
The following table calculates Hotel
EBITDA and Adjusted Hotel EBITDA contributed by the Trust's hotel
portfolio for the three months ended March 31, 2014 and 2013:
Three Months Ended March 31, 2014
2013 Total revenue $ 94,774 $ 70,601 Less:
Total hotel operating expenses
72,759
54,962 Hotel EBITDA 22,015 15,639
Less: Non-cash amortization(1)
(75
) (68 ) Adjusted
Hotel EBITDA
$ 21,940
$ 15,571
__________________________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, and unfavorable
contract liability. The following table reconciles
net income (loss) to Corporate EBITDA and Adjusted Corporate EBITDA
for the three months ended March 31, 2014 and 2013:
Three Months Ended March 31, 2014 2013
Net income (loss) $ 2,178 $ (2,510 ) Add: Depreciation and
amortization 12,498 8,839 Interest expense 6,686 5,441 Less:
Interest income - (218 ) Income tax benefit
(3,397 ) (2,284
) Corporate EBITDA 17,965 9,268 Add: Hotel
acquisition costs - 2,899 Non-cash amortization(1)
55 62 Adjusted
Corporate EBITDA
$ 18,020
$ 12,229
__________________________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, unfavorable contract
liability, and air rights contract.
The following table reconciles net income
(loss) to FFO, FFO available to common shareholders, and AFFO
available to common shareholders for the three months ended March
31, 2014 and 2013:
Three Months Ended March 31, 2014
2013 Net income (loss) $ 2,178 $ (2,510 ) Add:
Depreciation and amortization
12,498
8,839 FFO 14,676 6,329 Less:
Preferred share dividends (2,422 ) (2,422 ) Dividends declared on
unvested time-based awards (129 ) (88 ) Undistributed earnings
allocated to unvested time-based awards
-
- FFO available to common
shareholders 12,125 3,819 Add: Hotel acquisition costs -
2,899 Non-cash amortization(1)
55
62 AFFO available to common shareholders
$ 12,180 $
6,780 FFO per common share - basic and
diluted $ 0.25 $ 0.09 AFFO per common share - basic and
diluted $ 0.25 $ 0.15
__________________________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, unfavorable contract
liability, and air rights contract.
The following table calculates forecasted
Hotel EBITDA and Adjusted Hotel EBITDA for the 17-hotel portfolio
and the 20-hotel portfolio for the three months ending June 30,
2014:
Three Months Ending June 30, 2014 17-Hotel
Portfolio(1) 20-Hotel Portfolio Low
High Low High Total
revenue $ 107,900 $ 109,800 $ 126,800 $ 129,100 Less: Total hotel
operating expenses
69,020
69,420 82,120
82,620 Hotel EBITDA 38,880 40,380 44,680 46,480
Less: Non-cash amortization(2)
(80
) (80 )
(80 ) (80
) Adjusted Hotel EBITDA
$
38,800 $ 40,300
$ 44,600 $
46,400
__________________________
(1)
Excludes the W Chicago – Lakeshore, the W
New Orleans, and the Holiday Inn New York City Midtown – 31st
Street, as these hotels are undergoing comprehensive renovations
during 2014.
(2) Includes non-cash amortization of ground lease asset, deferred
franchise costs, deferred key money, and unfavorable contract
liability. The following table reconciles forecasted net
income to Corporate EBITDA and Adjusted Corporate EBITDA for the
three months ending June 30, 2014: Three
Months Ending June 30, 2014 Low High
Net income $ 18,260 $ 19,760 Add: Depreciation and amortization
13,250 13,250 Interest expense 6,840 6,840 Income tax expense 2,500
2,700 Less: Interest income
-
- Corporate EBITDA 40,850 42,550 Add: Hotel
acquisition costs - - Non-cash amortization(1)
50 50 Adjusted Corporate EBITDA
$ 40,900 $
42,600
__________________________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, unfavorable contract
liability, 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 June
30, 2014:
Three Months Ending June 30, 2014 Low
High Net income $ 18,260 $ 19,760 Add:
Depreciation and amortization
13,250
13,250 FFO 31,510 33,010 Less:
Preferred share dividends (2,420 ) (2,420 ) Dividends declared on
unvested time-based awards (130 ) (130 ) Undistributed earnings
allocated to unvested time-based awards
-
- FFO available to common
shareholders 28,960 30,460 Add: Hotel acquisition costs - -
Non-cash amortization(1)
50
50 AFFO available to common shareholders
$ 29,010 $
30,510 FFO per common share - basic and
diluted $ 0.59 $ 0.62 AFFO per common share - basic and
diluted $ 0.59 $ 0.62 Weighted-average number of diluted
common shares outstanding 48,962 48,962
__________________________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, unfavorable contract
liability, and air rights contract.
The following table calculates forecasted
Hotel EBITDA and Adjusted Hotel EBITDA for the 17-hotel portfolio
and the 20-hotel portfolio for the year ending December 31,
2014:
Year Ending December 31, 2014 17-Hotel
Portfolio(1) 20-Hotel Portfolio Low
High Low High Total
revenue $ 396,900 $ 403,000 $ 465,000 $ 472,800 Less: Total hotel
operating expenses
266,800
267,900 317,500
319,300 Hotel EBITDA 130,100 135,100
147,500 153,500 Less: Non-cash amortization(2)
(300 ) (300
) (300 )
(300 ) Adjusted Hotel EBITDA
$ 129,800 $
134,800 $ 147,200
$ 153,200
__________________________
(1)
Excludes the W Chicago – Lakeshore, the W
New Orleans, and the Holiday Inn New York City Midtown – 31st
Street, as these hotels are undergoing comprehensive renovations
during 2014.
(2) Includes non-cash amortization of ground lease asset, deferred
franchise costs, deferred key money, and unfavorable contract
liability. The following table reconciles forecasted
net income to Corporate EBITDA and Adjusted Corporate EBITDA for
the year ending December 31, 2014: Year Ending
December 31, 2014 Low High Net income $
49,920 $ 54,720 Add: Depreciation and amortization 54,640 54,640
Interest expense 27,020 27,020 Income tax expense 900 1,400 Less:
Interest income
- -
Corporate EBITDA 132,480 137,780 Add: Hotel acquisition
costs - - Non-cash amortization(1)
220
220 Adjusted Corporate EBITDA
$
132,700 $ 138,000
__________________________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, unfavorable contract
liability, 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 year ending December 31,
2014:
Year Ending December 31, 2014 Low
High Net income $ 49,920 $ 54,720 Add:
Depreciation and amortization
54,640
54,640 FFO 104,560 109,360 Less:
Preferred share dividends (9,690 ) (9,690 ) Dividends declared on
unvested time-based awards (500 ) (500 ) Undistributed earnings
allocated to unvested time-based awards
-
- FFO available to common
shareholders 94,370 99,170 Add: Hotel acquisition costs - -
Non-cash amortization(1)
220
220 AFFO available to common shareholders
$ 94,590 $
99,390 FFO per common share - basic and
diluted $ 1.93 $ 2.02 AFFO per common share - basic and
diluted $ 1.93 $ 2.03 Weighted-average number of diluted
common shares outstanding 48,985 48,985
__________________________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, unfavorable contract
liability, 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 Courtyard Anaheim at Disneyland
Resort Anaheim, CA 153 July 30, 2010 4 Boston Marriott Newton
Newton, MA 430 July 30, 2010 5 Le Meridien San Francisco San
Francisco, CA 360 December 15, 2010 6 Homewood Suites Seattle
Convention Center Seattle, WA 195 May 2, 2011 7 W Chicago - City
Center Chicago, IL 403 May 10, 2011 8 Hotel Indigo San Diego
Gaslamp Quarter San Diego, CA 210 June 17, 2011 9 Courtyard
Washington Capitol Hill/Navy Yard Washington, DC 204 June 30, 2011
10 Hotel Adagio San Francisco, Autograph Collection San Francisco,
CA 171 July 8, 2011 11 Denver Marriott City Center Denver, CO 613
October 3, 2011 12 Holiday Inn New York City Midtown - 31st Street
New York, NY 122 December 22, 2011 13 W Chicago - Lakeshore
Chicago, IL 520 August 21, 2012 14 Hyatt Regency Mission Bay Spa
and Marina San Diego, CA 429 September 7, 2012 15 The Hotel
Minneapolis, Autograph Collection Minneapolis, MN 222 October 30,
2012 16 Hyatt Place New York Midtown South New York, NY 185 March
14, 2013 17 W New Orleans - French Quarter New Orleans, LA 97 March
28, 2013 18 W New Orleans New Orleans, LA 410 April 25, 2013 19
Hyatt Fisherman's Wharf San Francisco, CA 313 May 31, 2013 20 Hyatt
Santa Barbara Santa Barbara, CA 200 June 27, 2013 5,932
Chesapeake Lodging TrustDouglas W. Vicari, 410-972-4142
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