Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate
investment trust (REIT), reported today its financial results for
the quarter ended June 30, 2017.
HIGHLIGHTS
- RevPAR: 3.7% decrease for the
22-hotel portfolio and 0.2% increase for the 15-hotel portfolio
over the same period in 2016.
- Adjusted Hotel
EBITDA Margin: 180 basis point decrease to 35.1%
for the 22-hotel portfolio and 90 basis point decrease to 39.5% for
the 15-hotel portfolio over the same period in 2016.
- Adjusted Hotel
EBITDA: $57.0 million.
- Adjusted
Corporate EBITDA: $52.3 million.
- Net income
available to common shareholders: $19.2 million
or $0.32 per diluted common share.
- Adjusted
FFO: $38.2 million or $0.65 per diluted common
share.
- Financing: Closed on a five-year,
$225.0 million unsecured term loan.
- Preferred
share redemption: Subsequent to quarter end,
redeemed $125.0 million of 7.75% Series A Cumulative Redeemable
Preferred Shares.
“We are pleased with our results for the second quarter which
exceeded the high end of our expectations across all measures. Our
asset managers in working with our hotel operators did an
outstanding job controlling costs and maintaining house profit
margin for our 15-hotel portfolio despite the challenging revenue
environment we continue to operate in,” said James L. Francis,
Chesapeake Lodging Trust’s President and Chief Executive
Officer.
Mr. Francis continued, “Our renovations at the Denver Marriott
City Center and the Boston Marriott Newton have now been completed
and we are enthused based on the positive guest feedback we are
receiving on the upgraded guestroom products. Our last remaining
2017 renovation at the JW Marriott San Francisco Union Square is
currently underway, however, it was delayed by approximately 60
days as a result of a permit issue with the city. Given this delay
along with a modest softening of expectations for banquet and
catering revenue in the third quarter 2017 driven by less group
business, we are making an adjustment to the high end of our full
year 2017 hotel EBITDA outlook.”
CONSOLIDATED FINANCIAL RESULTS
The following is a summary of the consolidated financial results
for the three and six months ended June 30, 2017 and 2016 (in
millions, except share and per share amounts):
Three Months Ended June
30, Six Months Ended June 30, 2017 2016 2017
2016 Total revenue $ 162.5 $ 169.4 $ 297.3 $
310.0 Net income available to common shareholders $ 19.2 $
26.1 $ 24.8 $ 33.8 Net income per diluted common share $ 0.32 $
0.44 $ 0.42 $ 0.57 Adjusted Hotel EBITDA $ 57.0 $ 62.6 $
92.9 $ 102.6 Adjusted Corporate EBITDA $ 52.3 $ 57.9 $ 83.4
$ 92.6 AFFO available to common shareholders $ 38.2 $ 43.9 $
62.4 $ 69.9 AFFO per diluted common share $ 0.65 $ 0.75 $ 1.06 $
1.19
Weighted-average number of diluted common
shares outstanding
59,033,952 58,864,050 59,014,876 58,836,746
HOTEL OPERATING RESULTS
During 2017, the Trust expects the following seven of its 22
hotels to be negatively impacted as a result of (1) the expected
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, Denver Marriott City
Center, and Hyatt Regency Mission Bay Spa and Marina. As such, the
Trust is reporting key operating metrics for a 15-hotel portfolio
in addition to the 22-hotel portfolio. Included in the following
table are comparisons of the key operating metrics for the 22-hotel
portfolio and the 15-hotel portfolio for the three and six
months ended June 30, 2017 and 2016 (in thousands, except
for ADR and RevPAR):
Three Months Ended June 30, Six Months Ended June 30, 2017 2016
Change 2017 2016 Change
22-Hotel
Portfolio
Occupancy 86.7 % 88.1 % (140) bps 81.6 % 83.4 % (180) bps ADR $
231.62 $ 236.69 (2.1)% $ 223.73 $ 227.05 (1.5)% RevPAR $ 200.72 $
208.43 (3.7)% $ 182.54 $ 189.39 (3.6)% Adjusted Hotel EBITDA $
56,957 $ 62,597 (9.0)% $ 92,944 $ 102,648 (9.5)% Adjusted Hotel
EBITDA Margin 35.1 % 36.9 % (180) bps 31.3 % 33.1 % (180) bps
15-Hotel
Portfolio
Occupancy 89.5 % 88.1 % 140 bps 84.0 % 83.2 % 80 bps ADR $ 236.15 $
239.30 (1.3)% $ 219.14 $ 223.04 (1.7)% RevPAR $ 211.26 $ 210.86
0.2% $ 183.97 $ 185.65 (0.9)% Adjusted Hotel EBITDA $ 38,853 $
40,481 (4.0)% $ 60,175 $ 63,572 (5.3)% Adjusted Hotel EBITDA Margin
39.5 % 40.4 % (90) bps 34.7 % 35.7 % (100) 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.
FINANCING ACTIVITY
On April 21, 2017, the Trust closed on a five-year, $225.0
million unsecured term loan provided by a syndicate of banks. The
term loan provides for the possibility of future increases, up to a
maximum amount borrowed of $375.0 million, in accordance with the
terms of the term loan agreement. The loan bears interest equal to
LIBOR, plus 1.45% - 2.20% (the spread over LIBOR based on the
Trust’s consolidated leverage ratio). Contemporaneous with the
closing of the unsecured term loan, the Trust entered into an
interest rate swap to fix LIBOR at 1.86% for the five-year term. As
of August 2, 2017, the effective interest rate on the unsecured
term loan was 3.31%. Proceeds from the term loan were used to repay
outstanding borrowings under the revolving credit facility. The
term loan agreement contains the same financial covenants as those
contained in the Trust's revolving credit facility.
CAPITAL MARKETS ACTIVITY
On July 17, 2017, the Trust redeemed all 5,000,000 shares of its
issued and outstanding 7.75% Series A Cumulative Redeemable
Preferred Shares at a redemption amount of $25.00 per share, plus
accrued and unpaid dividends, with a borrowing under its revolving
credit facility.
The Trust has not sold any common shares under its continuous
at-the-market (ATM) program or repurchased any common shares under
its share repurchase program during 2017.
DIVIDENDS
On April 14, 2017, the Trust paid dividends in the amounts of
$0.40 per share to its common shareholders and $0.484375 per share
to its preferred shareholders, both of record as of March 31, 2017.
On May 17, 2017, the Trust declared dividends in the amounts of
$0.40 per share payable to its common shareholders and $0.484375
per share payable to its preferred shareholders, both of record as
of June 30, 2017. Both dividends were paid on July 14, 2017.
2017 OUTLOOK
The Trust is updating its 2017 outlook to incorporate its second
quarter results, recent trends and fundamentals, and the redemption
of its 7.75% Series A Cumulative Redeemable Preferred Shares. The
outlook assumes no future acquisitions, dispositions, or financing
transactions (in millions, except RevPAR and per share
amounts):
Third Quarter
2017
Outlook Low High
CONSOLIDATED: Net income available
to common shareholders $ 12.6 $ 14.4 Net income per diluted common
share $ 0.21 $ 0.24 Adjusted Corporate EBITDA $ 47.8 $ 49.8
AFFO available to common shareholders $ 36.9 $ 38.7 AFFO per
diluted common share $ 0.62 $ 0.66 Corporate cash general
and administrative expense $ 2.4 $ 2.6 Corporate non-cash general
and administrative expense $ 1.8 $ 1.8 Weighted-average
number of diluted common shares outstanding 59.1 59.1
HOTEL PORTFOLIO:
22-Hotel
Portfolio
RevPAR $ 198.00 $ 202.00 RevPAR change as compared to 2016 (4.5 )%
(2.5 )% Adjusted Hotel EBITDA $ 52.0 $ 54.3 Adjusted Hotel EBITDA
Margin 33.1 % 33.9 % Adjusted Hotel EBITDA Margin change as
compared to 2016 (150) bps (75) bps
15-Hotel
Portfolio
RevPAR $ 195.00 $ 199.00 RevPAR change as compared to 2016 (3.5 )%
(1.5 )% Adjusted Hotel EBITDA $ 32.4 $ 33.8 Adjusted Hotel EBITDA
Margin 35.7 % 36.4 % Adjusted Hotel EBITDA Margin change as
compared to 2016 (100) bps (25) bps
Full Year
2017
Updated Outlook Previous Outlook Low High Low High
CONSOLIDATED: Net income available to common
shareholders $ 45.3 $ 49.8 $ 42.9 $ 48.9 Net income per diluted
common share $ 0.77 $ 0.84 $ 0.73 $ 0.83 Adjusted Corporate
EBITDA $ 169.0 $ 174.3 $ 169.3 $ 176.3 AFFO available to
common shareholders $ 127.8 $ 132.3 $ 124.2 $ 130.2 AFFO per
diluted common share $ 2.16 $ 2.24 $ 2.10 $ 2.20 Corporate
cash general and administrative expense $ 10.5 $ 11.3 $ 10.3 $ 11.3
Corporate non-cash general and administrative expense $ 7.5 $ 7.5 $
7.5 $ 7.5 Weighted-average number of diluted common shares
outstanding 59.1 59.1 59.1 59.1
HOTEL PORTFOLIO:
22-Hotel
Portfolio
RevPAR $ 183.00 $ 187.00 $ 183.00 $ 187.00 RevPAR change as
compared to 2016 (3.5 )% (1.5 )% (3.5 )% (1.5 )% Adjusted Hotel
EBITDA $ 187.0 $ 193.0 $ 187.0 $ 195.0 Adjusted Hotel EBITDA Margin
31.4 % 31.8 % 31.2 % 31.9 % Adjusted Hotel EBITDA Margin change as
compared to 2016 (150) bps (110) bps (170) bps (100) bps
15-Hotel
Portfolio
RevPAR $ 184.00 $ 188.00 $ 185.00 $ 189.00 RevPAR change as
compared to 2016 (1.5 )% 0.5 % (1.0 )% 1.0 % Adjusted Hotel EBITDA
$ 121.4 $ 125.0 $ 121.4 $ 126.6 Adjusted Hotel EBITDA Margin 34.6 %
35.0 % 34.3 % 35.0 % Adjusted Hotel EBITDA Margin change as
compared to 2016 (80) bps (40) bps (115) bps (40) bps
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 gain
(losses) from sales of real estate, which is a non-recurring item.
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 non-cash
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. 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. 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,
August 2, 2017 at 11:00 a.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 3040538. 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 August 9, 2017. To access the
replay, dial (855) 859-2056 (U.S./Canadian callers) or
(404) 537-3406 (International callers). The conference call ID
is 3040538. 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
22 hotels with an aggregate of 6,694 rooms in nine 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 third
quarter and full year 2017 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 August 2, 2017, 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)
June 30, 2017 December 31, 2016 (unaudited)
ASSETS Property and equipment, net $ 1,875,055 $ 1,882,869
Intangible assets, net 35,546 35,835 Cash and cash equivalents
59,940 43,060 Restricted cash 31,227 36,128 Accounts receivable,
net 25,820 19,966 Prepaid expenses and other assets 21,666
17,516 Total assets $ 2,049,254 $
2,035,374 LIABILITIES AND SHAREHOLDERS’ EQUITY
Long-term debt $ 770,094 $ 737,310 Accounts payable and accrued
expenses 66,238 64,581 Other liabilities 44,807
44,808 Total liabilities 881,139
846,699 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;
60,114,283 shares and 59,671,964 shares
issued and outstanding, respectively
601 597 Additional paid-in capital 1,307,141 1,304,364 Cumulative
dividends in excess of net income (139,545 ) (116,297 ) Accumulated
other comprehensive loss (132 ) (39 ) Total
shareholders’ equity 1,168,115 1,188,675
Total liabilities and shareholders’ equity $ 2,049,254
$ 2,035,374 SUPPLEMENTAL CREDIT
INFORMATION: Fixed charge coverage ratio(1) 2.96 3.24 Leverage
ratio(1) 34.6 % 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)
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30, 2017 2016
2017 2016 REVENUE Rooms $ 122,268 $ 126,967 $
221,169 $ 230,739 Food and beverage 33,136 35,664 62,448 66,219
Other 7,057 6,800 13,718
13,084 Total revenue 162,461
169,431 297,335 310,042
EXPENSES Hotel operating expenses: Rooms 27,368 27,876 52,690
53,377 Food and beverage 23,149 24,111 45,388 46,877 Other direct
1,300 1,589 2,656 3,147 Indirect 53,532 53,103
103,347 103,683 Total hotel
operating expenses 105,349 106,679 204,081 207,084 Depreciation and
amortization 19,096 18,610 37,883 37,094 Air rights contract
amortization 130 130 260 260 Corporate general and administrative
4,647 4,734 9,582
10,000 Total operating expenses 129,222
130,153 251,806 254,438
Operating income 33,239 39,278 45,529 55,604 Interest
expense (8,171 ) (7,560 ) (15,969 ) (15,770 ) Gain on sale of hotel
— 598 — 598
Income before income taxes 25,068 32,316 29,560 40,432
Income tax benefit (expense) (3,407 ) (3,774 )
120 (1,820 ) Net income 21,661 28,542
29,680 38,612 Preferred share dividends (2,422 )
(2,422 ) (4,844 ) (4,844 ) Net income
available to common shareholders $ 19,239 $ 26,120 $
24,836 $ 33,768 Net income per common
share—basic and diluted $ 0.32 $ 0.44 $ 0.42 $ 0.57
Weighted-average number of common shares outstanding: Basic
59,033,952 58,722,104 59,014,876 58,701,815 Diluted 59,033,952
58,864,050 59,014,876 58,836,746
CHESAPEAKE LODGING TRUST
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands)
(unaudited)
Six Months Ended June 30, 2017 2016 Cash flows from
operating activities: Net income $ 29,680 $ 38,612 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 37,883 37,094 Air rights contract
amortization 260 260 Deferred financing costs amortization 815 936
Gain on sale of hotel — (598 ) Share-based compensation 3,846 4,764
Other (310 ) (442 ) Changes in assets and liabilities: Accounts
receivable, net (5,854 ) (9,704 ) Prepaid expenses and other assets
(4,177 ) (3,126 ) Accounts payable and accrued expenses 975 4,407
Other liabilities 169 (22 ) Net cash provided
by operating activities 63,287 72,181
Cash flows from investing activities: Disposition of hotel —
2,028 Improvements and additions to hotels (28,941 ) (9,217 )
Change in restricted cash 4,901 (3,870 ) Net
cash used in investing activities (24,040 ) (11,059 )
Cash flows from financing activities: Borrowings under
revolving credit facility 175,000 130,000 Repayments under
revolving credit facility (235,000 ) (190,000 ) Proceeds from
issuance of unsecured term loan 225,000 — Proceeds from issuance of
mortgage debt — 150,000 Principal prepayments on mortgage debt —
(88,190 ) Scheduled principal payments on mortgage debt (131,282 )
(4,877 ) Payment of deferred financing costs (1,749 ) (844 )
Payment of dividends to common shareholders (48,427 ) (47,205 )
Payment of dividends to preferred shareholders (4,844 ) (4,844 )
Repurchase of common shares (1,065 ) (194 ) Net cash
used in financing activities (22,367 ) (56,154 ) Net
increase in cash 16,880 4,968 Cash and cash equivalents, beginning
of period 43,060 50,544 Cash and cash
equivalents, end of period $ 59,940 $ 55,512
CHESAPEAKE LODGING TRUST
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(in thousands, except share and per
share data)
(unaudited)
The following table reconciles net income to Hotel
EBITDA, Adjusted Hotel EBITDA, and Adjusted Hotel EBITDA Margin for
the 22-hotel portfolio for the three and six months ended June 30,
2017 and 2016:
Three Months Ended June 30, Six
Months Ended June 30, 2017 2016 2017 2016 Net income $ 21,661 $
28,542 $ 29,680 $ 38,612 Add: Interest expense 8,171 7,560 15,969
15,770 Income tax expense (benefit) 3,407 3,774 (120 ) 1,820
Depreciation and amortization 19,096 18,610 37,883 37,094 Air
rights contract amortization 130 130 260 260 Corporate general and
administrative 4,647 4,734 9,582
10,000 Hotel EBITDA 57,112 63,350 93,254
103,556 Less: Non-cash amortization(1) (155 ) (155 ) (310 )
(310 ) Gain on sale of hotel — (598 ) —
(598 ) Adjusted Hotel EBITDA $ 56,957 $ 62,597
$ 92,944 $ 102,648 Total revenue $ 162,461 $
169,431 $ 297,335 $ 310,042 Adjusted Hotel EBITDA Margin
35.1 % 36.9 % 31.3 % 33.1 %
_____________ (1) Reflects non-cash amortization of ground
lease asset, deferred franchise costs, deferred key money, and
unfavorable contract liability. The following table
reconciles net income to Corporate EBITDA and Adjusted Corporate
EBITDA for the three and six months ended June 30, 2017 and 2016:
Three Months Ended June 30,
Six Months Ended June 30, 2017
2016 2017 2016 Net income $ 21,661 $ 28,542 $
29,680 $ 38,612 Add: Interest expense 8,171 7,560 15,969 15,770
Income tax expense (benefit) 3,407 3,774 (120 ) 1,820 Depreciation
and amortization 19,096 18,610
37,883 37,094 Corporate EBITDA 52,335 58,486
83,412 93,296 Less: Non-cash amortization(1) (25 ) (25 ) (50 ) (50
) Gain on sale of hotel — (598 ) —
(598 ) Adjusted Corporate EBITDA $ 52,310 $
57,863 $ 83,362 $ 92,648 _____________
(1) Reflects 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 to FFO, FFO available to common
shareholders, and AFFO available to common shareholders for the
three and six months ended June 30, 2017 and 2016:
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016 Net income $ 21,661 $ 28,542 $ 29,680 $ 38,612
Add:
Depreciation and amortization
19,096 18,610 37,883 37,094
Less:
Gain on sale of hotel
— (598 ) — (598 ) FFO
40,757 46,554 67,563 75,108
Less:
Preferred share dividends
(2,422 ) (2,422 ) (4,844 ) (4,844 ) Dividends declared on unvested
time-based awards (123 ) (146 ) (247 ) (289 ) Undistributed
earnings allocated to unvested time-based awards —
(15 ) — — FFO available to
common shareholders 38,212 43,971 62,472 69,975
Less:
Non-cash amortization(1)
(25 ) (25 ) (50 ) (50 ) AFFO available
to common shareholders $ 38,187 $ 43,946 $ 62,422
$ 69,925 FFO per common share—basic and
diluted $ 0.65 $ 0.75 $ 1.06 $ 1.19 AFFO per common
share—basic and diluted $ 0.65 $ 0.75 $ 1.06 $ 1.19
_____________ (1) Reflects 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
Hotel EBITDA, Adjusted Hotel EBITDA, and Adjusted Hotel EBITDA
Margin for the 22-hotel portfolio for the three months ending
September 30, 2017 and year ending December 31, 2017:
Three Months Ending
September 30, 2017
Year Ending
December 31, 2017
Low High Low High Net income $ 17,560 $ 19,410 $ 55,440 $ 59,940
Add:
Interest expense
9,050 9,050 34,220 34,220 Income tax expense 1,300 1,500 1,250
2,000 Depreciation and amortization 19,900 19,900 78,190 78,190 Air
rights contract amortization 130 130 520 520 Corporate general and
administrative 4,220 4,420
18,000 18,750 Hotel EBITDA 52,160 54,410
187,620 193,620
Less:
Non-cash amortization(1)
(160 ) (160 ) (620 ) (620 ) Adjusted
Hotel EBITDA $ 52,000 $ 54,250 $ 187,000 $
193,000 Total revenue $ 156,950 $ 160,100 $ 596,100 $
607,500 Adjusted Hotel EBITDA Margin 33.1 % 33.9 % 31.4 %
31.8 % _____________ (1) Reflects 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 September 30, 2017 and year ending December 31, 2017:
Three Months Ending
September 30, 2017
Year Ending
December 31, 2017
Low High Low High Net income $ 17,560 $ 19,410 $ 55,440 $ 59,940
Add:
Interest expense
9,050 9,050 34,220 34,220 Income tax expense 1,300 1,500 1,250
2,000 Depreciation and amortization 19,900
19,900 78,190 78,190 Corporate
EBITDA 47,810 49,860 169,100 174,350
Less:
Non-cash amortization(1)
(30 ) (30 ) (100 ) (100 ) Adjusted
Corporate EBITDA $ 47,780 $ 49,830 $ 169,000 $
174,250 _____________ (1) Reflects 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
September 30, 2017 and year ending December 31, 2017:
Three Months Ending
September 30, 2017
Year Ending
December 31, 2017
Low High Low High Net income $ 17,560 $ 19,410 $ 55,440 $ 59,940
Add:
Depreciation and amortization
19,900 19,900 78,190
78,190 FFO 37,460 39,310 133,630 138,130
Less:
Preferred share dividends
(430 ) (430 ) (5,270 ) (5,270 ) Write-off of issuance costs of
redeemed preferred shares (4,420 ) (4,420 ) (4,420 ) (4,420 )
Dividends declared on unvested time-based awards (120 ) (120 ) (490
) (490 ) Undistributed earnings allocated to unvested time-based
awards — — — —
FFO available to common shareholders 32,490 34,340 123,450
127,950
Add:
Write-off of issuance costs of redeemed
preferred shares
4,420 4,420 4,420 4,420
Less:
Non-cash amortization(1)
(30 ) (30 ) (100 ) (100 ) AFFO
available to common shareholders $ 36,880 $ 38,730 $
127,770 $ 132,270 FFO per common share - basic
and diluted $ 0.55 $ 0.58 $ 2.09 $ 2.17 AFFO per common
share - basic and diluted $ 0.62 $ 0.66 $ 2.16 $ 2.24
Weighted-average number of common shares outstanding: Basic 59,043
59,043 59,025 59,025 Diluted 59,102 59,102 59,094 59,094
_____________ (1) Reflects 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 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 Denver Marriott 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 The Hotel Minneapolis, Autograph
Collection Minneapolis, MN 222 October 30, 2012 15 Hyatt Place New
York Midtown South New York, NY 185 March 14, 2013 16 W New Orleans
– French Quarter New Orleans, LA 97 March 28, 2013 17 Le Meridien
New Orleans New Orleans, LA 410 April 25, 2013 18 Hyatt Centric
Fisherman’s Wharf San Francisco, CA 316 May 31, 2013 19 Hyatt
Centric Santa Barbara Santa Barbara, CA 200 June 27, 2013 20 JW
Marriott San Francisco Union Square San Francisco, CA 337 October
1, 2014 21 Royal Palm South Beach Miami, a Tribute Portfolio Resort
Miami Beach, FL 393 March 9, 2015 22 Ace Hotel and Theater Downtown
Los Angeles Los Angeles, CA 182 April 30, 2015 6,694
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170802005750/en/
Chesapeake Lodging TrustDouglas W. Vicari, 571-349-9452
Chesapeake Lodging (NYSE:CHSP)
Historical Stock Chart
From Apr 2024 to May 2024
Chesapeake Lodging (NYSE:CHSP)
Historical Stock Chart
From May 2023 to May 2024