UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 3, 2014
Strategic Hotels & Resorts, Inc.
(Exact name of registrant as specified in its charter)
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Maryland | | 001-32223 | | 33-1082757 |
(State or other jurisdiction of incorporation) | | (Commission File Number) | | (I.R.S. Employer Identification No.) |
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200 West Madison Street, Suite 1700, Chicago, Illinois | | 60,606 |
(Address of principal executive offices) | | (Zip Code) |
(312) 658-5000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
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¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Item 2.02 | Results of Operations and Financial Condition. |
On November 3, 2014, Strategic Hotels & Resorts, Inc. issued a press release reporting the financial results for its fiscal quarter ended September 30, 2014. Copies of the press release and Supplemental Financial Information are attached to this Current Report on Form 8-K (“Current Report”) as Exhibits 99.1 and 99.2, respectively, and are incorporated herein solely for purposes of this Item 2.02 disclosure.
The information in this Current Report, including the exhibits attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Current Report, including the exhibits, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any incorporation by reference language in any such filing.
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Item 9.01 | Financial Statements and Exhibits. |
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Exhibit Number | | Description |
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99.1 |
| | Press Release dated November 3, 2014 |
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99.2 |
| | Supplemental Financial Information |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
November 3, 2014
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| STRATEGIC HOTELS & RESORTS, INC. |
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By: | | | /s/ Diane M. Morefield |
| Name: | | Diane M. Morefield |
| Title: | | Executive Vice President and Chief Financial Officer |
Exhibit 99.1
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| COMPANY CONTACTS: Diane Morefield EVP & Chief Financial Officer Strategic Hotels & Resorts (312) 658-5740
Jonathan Stanner SVP, Capital Markets, Acquisitions & Treasurer Strategic Hotels & Resorts (312) 658-5746 |
FOR IMMEDIATE RELEASE
MONDAY, NOVEMBER 3, 2014
STRATEGIC HOTELS & RESORTS REPORTS THIRD QUARTER 2014
FINANCIAL RESULTS
Third Quarter RevPAR Increases 6.4 percent and Total RevPAR Increases 7.0 percent; Comparable FFO per diluted share grew 64.3 percent year-over-year
CHICAGO - November 3, 2014 - Strategic Hotels & Resorts, Inc. (NYSE: BEE) today reported results for the third quarter ended September 30, 2014. |
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($ in millions, except per share and operating metrics) | | Third Quarter | | |
Earnings Metrics | | 2014 | | 2013 | | % | | |
Net income attributable to common shareholders | | $ | 21.0 |
| | $ | 3.8 |
| | 458.2 | | % |
Net income per diluted share | | $ | 0.07 |
| | $ | 0.00 |
| | N/A | | |
Comparable funds from operations (Comparable FFO) (a) | | $ | 56.7 |
| | $ | 29.8 |
| | 90.2 | | % |
Comparable FFO per diluted share (a) | | $ | 0.23 |
| | $ | 0.14 |
| | 64.3 | | % |
Comparable EBITDA (a) | | $ | 75.2 |
| | $ | 60.1 |
| | 25.1 | | % |
| | | | | | | | |
Total United States Portfolio Operating Metrics (b) | | | | | | | | |
Average Daily Rate (ADR) | | $ | 314.53 |
| | $ | 296.68 |
| | 6.0 | | % |
Occupancy | | 80.2 | % | | 80.0 | % | | 0.2 | | pts |
Revenue per Available Room (RevPAR) | | $ | 252.30 |
| | $ | 237.23 |
| | 6.4 | | % |
Total RevPAR | | $ | 435.30 |
| | $ | 406.77 |
| | 7.0 | | % |
EBITDA Margins | | 27.0 | % | | 26.4 | % | | 60 | | bps |
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(a) | Please refer to the tables provided later in this press release for a reconciliation of net income attributable to common shareholders to Comparable FFO, Comparable FFO per share and Comparable EBITDA. Comparable FFO, Comparable FFO per share and Comparable EBITDA are non-GAAP measures and are further explained with the reconciliation tables. |
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(b) | Operating statistics reflect results from the Company’s Total United States portfolio, which is derived from the Company's hotel portfolio at September 30, 2014, consisting of all 15 properties located in the United States. |
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($ in millions, except per share and operating metrics) | | Year to date | | |
Earnings Metrics | | 2014 | | 2013 | | % | | |
Net income attributable to common shareholders | | $ | 319.0 |
| | $ | (16.4 | ) | | N/A | | |
Net income per diluted share | | $ | 1.32 |
| | $ | (0.11 | ) | | N/A | | |
Comparable funds from operations (Comparable FFO) (a) | | $ | 117.0 |
| | $ | 60.8 |
| | 92.6 | | % |
Comparable FFO per diluted share (a) | | $ | 0.51 |
| | $ | 0.29 |
| | 75.9 | | % |
Comparable EBITDA (a) | | $ | 185.3 |
| | $ | 154.8 |
| | 19.6 | | % |
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Total United States Portfolio Operating Metrics (b) | | | | | | | | |
Average Daily Rate (ADR) | | $ | 299.25 |
| | $ | 283.96 |
| | 5.4 | | % |
Occupancy | | 76.3 | % | | 75.8 | % | | 0.5 | | pts |
Revenue per Available Room (RevPAR) | | $ | 228.19 |
| | $ | 215.30 |
| | 6.0 | | % |
Total RevPAR | | $ | 422.50 |
| | $ | 392.12 |
| | 7.7 | | % |
EBITDA Margins | | 25.3 | % | | 23.9 | % | | 140 | | bps |
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(a) | Please refer to the tables provided later in this press release for a reconciliation of net income attributable to common shareholders to Comparable FFO, Comparable FFO per share and Comparable EBITDA. Comparable FFO, Comparable FFO per share and Comparable EBITDA are non-GAAP measures and are further explained with the reconciliation tables. |
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(b) | Operating statistics reflect results from the Company’s Total United States portfolio, which is derived from the Company's hotel portfolio at September 30, 2014, consisting of all 15 properties located in the United States. |
“Consistent with our focused strategy, we are pleased with our excellent financial results in the quarter including a 25% increase in comparable EBITDA and a 64% increase in comparable FFO per share,” stated Raymond L. Gellein, Chairman and CEO of Strategic Hotels & Resorts. “We continue to experience strong group demand and ancillary spend in our portfolio, leading to a 7% increase in Total RevPAR in the quarter and a 7.7% increase year to date. We are committed to capitalizing on our significant embedded growth and increasing our portfolio through potential acquisitions of strategically and financially attractive investment opportunities. Given the tremendous improvements we have made to our balance sheet, we are well positioned to continue to enhance shareholder value through the execution of our operating and growth strategy as we look ahead to 2015,” concluded Gellein.
Third Quarter Highlights
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▪ | Total consolidated revenues were $305.3 million in the third quarter of 2014, a 36.5 percent increase over the prior year period. |
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▪ | Net income attributable to common shareholders was $21.0 million, or $0.07 per diluted share, in the third quarter of 2014, compared with $3.8 million, or $0.00 per diluted share, in the third quarter of 2013. |
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▪ | Comparable FFO was $0.23 per diluted share in the third quarter of 2014, compared with $0.14 per diluted share in the prior year period, a 64.3 percent increase over the prior year period. |
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▪ | Comparable EBITDA was $75.2 million in the third quarter of 2014, compared with $60.1 million in the prior year period, a 25.1 percent increase between periods. |
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▪ | Total United States portfolio RevPAR increased 6.4 percent in the third quarter of 2014, driven by a 6.0 percent increase in ADR and a 0.2 percentage point increase in occupancy compared to the third quarter of 2013. Total RevPAR increased 7.0 percent between periods with non-rooms revenue increasing by 8.0 percent between periods. |
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▪ | Group occupied room nights in the Total United States portfolio increased 14.9 percent in the third quarter 2014 offsetting a 7.2 percent decline in transient occupied room nights compared to the third quarter of 2013. Transient ADR increased 8.8 percent compared to the third quarter of 2013 and group ADR increased 5.6 percent. |
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▪ | Total United States portfolio EBITDA margins expanded 60 basis points in the third quarter of 2014, compared to the third quarter of 2013. Adjusted for certain one-time items impacting the third quarter of 2013 and 2014, EBITDA margins expanded 70 basis points. |
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▪ | Group room nights currently booked for 2014 are 6.2 percent higher compared to room nights booked for 2013 at the same time last year, with rates 3.6 percent higher, resulting in a 10.0 percent RevPAR increase. |
The Company reported financial results for the nine month period ended September 30, 2014 as follows:
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▪ | Total consolidated revenues were $776.1 million for the nine month period ended September 30, 2014, a 22.8 percent increase over the prior year period. |
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▪ | Net income attributable to common shareholders was $319.0 million, or $1.32 per diluted share, compared with net loss attributable to common shareholders of $16.4 million, or $0.11 per diluted share, for the nine month period ended September 30, 2013. Results for the nine month period ending September 30, 2014 include gains on sales of assets totaling $156.5 million and gains on the consolidation of affiliates totaling $143.5 million. These one-time items have been excluded from Comparable EBITDA, Comparable FFO and Comparable FFO per diluted share. |
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▪ | Comparable FFO was $0.51 per diluted share compared with $0.29 per diluted share in the nine month period ended September 30, 2013, a 75.9 percent increase between periods. |
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▪ | Comparable EBITDA was $185.3 million compared with $154.8 million for the nine month period ended September 30, 2013, a 19.6 percent increase between periods. |
Preferred Dividends
On August 28, 2014, the Company’s board of directors declared a quarterly dividend of $0.51563 per share of 8.25% Series B Cumulative Redeemable Preferred Stock, which was paid on September 30, 2014 to shareholders of record as of the close of business on September 15, 2014.
Transaction Activity
On August 29, 2014, the Company closed on a $115.0 million loan secured by the InterContinental Miami hotel. The loan bears interest at a fixed rate of 3.99 percent and matures in 2024.
Subsequent Events
On October 10, 2014 the Company entered into an amendment to the employment agreement with its president and chief executive officer, Raymond L. Gellein. The term of the employment agreement was extended until December 31, 2015.
2014 Guidance
Based on the results of the first nine months of 2014 and current forecasts for the remainder of the year, management is updating its guidance ranges for full year 2014 as follows:
For the full-year ending December 31, 2014, the Company is providing the following guidance ranges:
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Guidance Metrics | Previous Range | | Revised Range |
RevPAR | 5.5% - 7.0% | | 5.5% - 7.0% |
Total RevPAR | 5.5% - 7.0% | | 6.0% - 7.0% |
EBITDA Margin expansion | 150 - 200 basis points | | 150 - 200 basis points |
Comparable EBITDA | $235M - $250M | | $240M - $250M |
Comparable FFO per diluted share | $0.62 - $0.68 | | $0.65 - $0.69 |
Earnings Call
The Company will conduct its third quarter 2014 conference call for investors and other interested parties on Monday, November 3, 2014 at 11:00 a.m. Eastern Time (ET). Interested individuals are invited to access the call by dialing 866.953.6860 (toll international: 617.399.3484) with passcode 37266467. To participate on the webcast, log on to the company's website at http://www.strategichotels.com or http://edge.media-server.com/m/p/peuzy77q/lan/en 15 minutes before the call to download the necessary software.
For those unable to listen to the call live, a taped rebroadcast will be available beginning at 3:00 p.m. ET on November 3, 2014 through 11:59 p.m. ET on November 10, 2014. To access the replay, dial 888.286.8010 (toll international: 617.801.6888) with passcode 16606548. A replay of the call will also be available on the Internet at http://www.strategichotels.com or http://www.earnings.com for 30 days after the call.
The Company also produces supplemental financial data that includes detailed information regarding its operating results. This supplemental data is considered an integral part of this earnings release. These materials are available on the Strategic Hotels & Resorts’ website at www.strategichotels.com.
About the Company
Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) which owns and provides value-enhancing asset management of high-end hotels and resorts in the United States and Europe. The Company currently has ownership interests in 16 properties with an aggregate of 7,865 rooms and 835,000 square feet of meeting space. For a list of current properties and for further information, please visit the Company's website at http://www.strategichotels.com.
This press release contains forward-looking statements about Strategic Hotels & Resorts, Inc. (the “Company”). Except for historical information, the matters discussed in this press release are forward-looking statements subject to certain risks and uncertainties. These forward-looking statements include statements regarding the Company’s future financial results, positive trends in the lodging industry and the Company’s continued focus on improving profitability. Actual results could differ materially from the Company's projections. Factors that may contribute to these differences include, but are not limited to the following: the effects of economic conditions and disruption in financial markets upon business and leisure travel and the hotel markets in which the Company invests; the Company's liquidity and refinancing demands; the Company's ability to obtain, refinance or extend maturing debt; the Company's ability to maintain compliance with covenants contained in its debt facilities; stagnation or deterioration in economic and market conditions, particularly impacting business and leisure travel spending in the markets where the Company's hotels operate and in which the Company invests, including luxury and upper upscale product; general volatility of the capital markets and the market price of the Company's shares of common stock; availability of capital; the Company's ability to dispose of properties in a manner consistent with its investment strategy and liquidity needs; hostilities and security concerns, including future terrorist attacks, or the apprehension of hostilities, in each case that affect travel within or to the United States, Germany or other countries where the Company invests; difficulties in identifying properties to acquire and completing acquisitions; the Company's failure to maintain effective internal control over financial reporting and disclosure controls and procedures; risks related to natural disasters; increases in interest rates and operating costs, including insurance premiums and real property taxes; contagious disease outbreaks; delays and cost-overruns in construction and development; marketing challenges associated with entering new lines of business or pursuing new business strategies; the Company's failure to maintain its status as a REIT; changes in the competitive environment in the Company's industry and the markets where the Company invests; changes in real estate and zoning laws or regulations; legislative or regulatory changes, including changes to laws governing the taxation of REITs; changes in generally accepted accounting principles, policies and guidelines; and litigation, judgments or settlements.
Additional risks are discussed in the Company's filings with the SEC, including those appearing under the heading "Item 1A. Risk Factors" in the Company's most recent Form 10-K and subsequent Form 10-Qs. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The forward-looking statements are made as of the date of this press release, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
The following tables reconcile projected 2014 net income attributable to common shareholders to projected Comparable EBITDA, Comparable FFO and Comparable FFO per diluted share (in millions, except per share data):
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| | Low Range | | High Range |
Net Income Attributable to Common Shareholders | | $ | 315.6 |
| | $ | 325.6 |
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Depreciation and Amortization | | 121.5 |
| | 121.5 |
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Interest Expense | | 83.8 |
| | 83.8 |
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Income Taxes | | 1.9 |
| | 1.9 |
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Non-controlling Interests | | 1.2 |
| | 1.2 |
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Adjustments from Consolidated Affiliates | | (16.0 | ) | | (16.0 | ) |
Adjustments from Unconsolidated Affiliates | | 8.4 |
| | 8.4 |
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Preferred Shareholder Dividends | | 13.7 |
| | 13.7 |
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Preferred Stock Redemption Liability | | 6.9 |
| | 6.9 |
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Realized Portion of Deferred Gain on Sale Leasebacks | | (0.2 | ) | | (0.2 | ) |
Gain on Sale of Asset | | (157.2 | ) | | (157.2 | ) |
Gain on Consolidation of Affiliates | | (143.5 | ) | | (143.5 | ) |
Other Adjustments | | 3.9 |
| | 3.9 |
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Comparable EBITDA | | $ | 240.0 |
| | $ | 250.0 |
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| | Low Range | | High Range |
Net Income Attributable to Common Shareholders | | $ | 315.6 |
| | $ | 325.6 |
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Depreciation and Amortization | | 120.8 |
| | 120.8 |
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Realized Portion of Deferred Gain on Sale Leasebacks | | (0.2 | ) | | (0.2 | ) |
Gain on Sale of Asset | | (157.2 | ) | | (157.2 | ) |
Gain on Consolidation of Affiliates | | (143.5 | ) | | (143.5 | ) |
Non-controlling Interests | | 1.2 |
| | 1.2 |
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Adjustments from Consolidated Affiliates | | (8.5 | ) | | (8.5 | ) |
Adjustments from Unconsolidated Affiliates | | 5.1 |
| | 5.1 |
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Interest Rate Swap OCI Amortization | | 8.9 |
| | 8.9 |
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Preferred Stock Redemption Liability | | 6.9 |
| | 6.9 |
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Other Adjustments | | 2.9 |
| | 2.9 |
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Comparable FFO | | $ | 152.0 |
| | $ | 162.0 |
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Comparable FFO per Diluted Share | | $ | 0.65 |
| | $ | 0.69 |
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Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Consolidated Statements of Operations
(in thousands, except per share data)
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| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
Revenues: | | | | | | | | |
Rooms | | $ | 176,133 |
| | $ | 134,092 |
| | $ | 428,107 |
| | $ | 359,840 |
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Food and beverage | | 96,642 |
| | 67,101 |
| | 266,687 |
| | 209,124 |
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Other hotel operating revenue | | 31,224 |
| | 21,098 |
| | 77,405 |
| | 59,248 |
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Lease revenue | | 1,264 |
| | 1,416 |
| | 3,882 |
| | 3,776 |
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Total revenues | | 305,263 |
| | 223,707 |
| | 776,081 |
| | 631,988 |
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Operating Costs and Expenses: | | | | | | | | |
Rooms | | 48,197 |
| | 36,441 |
| | 123,172 |
| | 104,291 |
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Food and beverage | | 70,965 |
| | 54,408 |
| | 192,645 |
| | 163,247 |
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Other departmental expenses | | 74,640 |
| | 54,825 |
| | 194,457 |
| | 159,291 |
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Management fees | | 9,970 |
| | 6,376 |
| | 24,989 |
| | 17,833 |
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Other hotel expenses | | 17,998 |
| | 13,685 |
| | 49,248 |
| | 43,808 |
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Lease expense | | 1,215 |
| | 1,202 |
| | 3,733 |
| | 3,584 |
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Depreciation and amortization | | 32,932 |
| | 23,906 |
| | 83,195 |
| | 73,505 |
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Impairment losses and other charges | | — |
| | 728 |
| | — |
| | 728 |
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Corporate expenses | | 5,405 |
| | 5,191 |
| | 19,796 |
| | 18,163 |
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Total operating costs and expenses | | 261,322 |
| | 196,762 |
| | 691,235 |
| | 584,450 |
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Operating income | | 43,941 |
| | 26,945 |
| | 84,846 |
| | 47,538 |
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Interest expense | | (21,844 | ) | | (19,227 | ) | | (59,705 | ) | | (58,350 | ) |
Interest income | | 46 |
| | 11 |
| | 123 |
| | 41 |
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Loss on early extinguishment of debt | | (609 | ) | | — |
| | (609 | ) | | — |
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Equity in (losses) earnings of unconsolidated affiliates | | (4 | ) | | 451 |
| | 5,267 |
| | 3,252 |
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Foreign currency exchange (loss) gain | | (69 | ) | | 28 |
| | (75 | ) | | 26 |
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(Loss) gain on consolidation of affiliates | | (15 | ) | | — |
| | 143,451 |
| | — |
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Other (expenses) income, net | | (136 | ) | | (832 | ) | | 1,082 |
| | 45 |
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Income (loss) before income taxes and discontinued operations | | 21,310 |
| | 7,376 |
| | 174,380 |
| | (7,448 | ) |
Income tax (expense) benefit | | (370 | ) | | 15 |
| | (616 | ) | | (70 | ) |
Income (loss) from continuing operations | | 20,940 |
| | 7,391 |
| | 173,764 |
| | (7,518 | ) |
Income (loss) from discontinued operations, net of tax | | 63 |
| | (578 | ) | | 159,102 |
| | 1,740 |
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Net Income (Loss) | | 21,003 |
| | 6,813 |
| | 332,866 |
| | (5,778 | ) |
Net (income) loss attributable to the noncontrolling interests in SHR's operating partnership | | (67 | ) | | (29 | ) | | (1,197 | ) | | 22 |
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Net loss attributable to the noncontrolling interests in consolidated affiliates | | 1,854 |
| | 3,018 |
| | 6,112 |
| | 7,467 |
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Net Income Attributable to SHR | | 22,790 |
| | 9,802 |
| | 337,781 |
| | 1,711 |
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Preferred shareholder dividends | | (1,802 | ) | | (6,042 | ) | | (18,795 | ) | | (18,125 | ) |
Net Income (Loss) Attributable to SHR Common Shareholders | | $ | 20,988 |
| | $ | 3,760 |
| | $ | 318,986 |
| | $ | (16,414 | ) |
Basic Income (Loss) Per Common Share: | | | | | | | | |
Income (loss) from continuing operations attributable to SHR common shareholders | | $ | 0.08 |
| | $ | 0.02 |
| | $ | 0.71 |
| | $ | (0.09 | ) |
Income from discontinued operations attributable to SHR common shareholders | | — |
| | — |
| | 0.70 |
| | 0.01 |
|
Net income (loss) attributable to SHR common shareholders | | $ | 0.08 |
| | $ | 0.02 |
| | $ | 1.41 |
| | $ | (0.08 | ) |
Weighted average shares of common stock outstanding | | 248,509 |
| | 206,767 |
| | 225,932 |
| | 206,163 |
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Diluted Income (Loss) Per Common Share: | | | | | | | | |
Income (loss) from continuing operations attributable to SHR common shareholders | | $ | 0.07 |
| | $ | — |
| | $ | 0.65 |
| | $ | (0.12 | ) |
Income from discontinued operations attributable to SHR common shareholders | | — |
| | — |
| | 0.67 |
| | 0.01 |
|
Net income (loss) attributable to SHR common shareholders | | $ | 0.07 |
| | $ | — |
| | $ | 1.32 |
| | $ | (0.11 | ) |
Weighted average shares of common stock outstanding | | 260,257 |
| | 220,258 |
| | 237,680 |
| | 217,553 |
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Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Consolidated Balance Sheets
(in thousands, except share data)
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| | | | | | | | |
| | September 30, 2014 | | December 31, 2013 |
Assets | | | | |
Investment in hotel properties, net | | $ | 2,709,550 |
| | $ | 1,795,338 |
|
Goodwill | | 38,128 |
| | 38,128 |
|
Intangible assets, net of accumulated amortization of $5,463 and $11,753 | | 89,888 |
| | 29,502 |
|
Assets held for sale | | — |
| | 135,901 |
|
Investment in unconsolidated affiliates | | 22,909 |
| | 104,973 |
|
Cash and cash equivalents | | 234,405 |
| | 73,655 |
|
Restricted cash and cash equivalents | | 100,182 |
| | 75,916 |
|
Accounts receivable, net of allowance for doubtful accounts of $443 and $606 | | 58,003 |
| | 39,660 |
|
Deferred financing costs, net of accumulated amortization of $10,199 and $12,354 | | 9,474 |
| | 8,478 |
|
Deferred tax assets | | 1,763 |
| | — |
|
Prepaid expenses and other assets | | 45,612 |
| | 35,600 |
|
Total assets | | $ | 3,309,914 |
| | $ | 2,337,151 |
|
Liabilities, Noncontrolling Interests and Equity | | | | |
Liabilities: | | | | |
Mortgages and other debt payable, net of discount | | $ | 1,666,614 |
| | $ | 1,163,696 |
|
Bank credit facility | | — |
| | 110,000 |
|
Liabilities of assets held for sale | | — |
| | 17,027 |
|
Accounts payable and accrued expenses | | 214,627 |
| | 189,889 |
|
Deferred tax liabilities | | 45,777 |
| | 46,137 |
|
Total liabilities | | 1,927,018 |
| | 1,526,749 |
|
Commitments and contingencies | | | | |
Noncontrolling interests in SHR’s operating partnership | | 9,246 |
| | 7,534 |
|
Equity: | | | | |
SHR’s shareholders’ equity: | | | | |
8.50% Series A Cumulative Redeemable Preferred Stock ($0.01 par value per share; 0 and 4,148,141 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $0 and $103,704 in the aggregate) | | — |
| | 99,995 |
|
8.25% Series B Cumulative Redeemable Preferred Stock ($0.01 par value per share; 3,615,375 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $90,384 in the aggregate) | | 87,064 |
| | 87,064 |
|
8.25% Series C Cumulative Redeemable Preferred Stock ($0.01 par value per share; 0 and 3,827,727 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $0 and $95,693 in the aggregate) | | — |
| | 92,489 |
|
Common stock ($0.01 par value per share; 350,000,000 shares of common stock authorized; 247,382,990 and 205,582,838 shares of common stock issued and outstanding) | | 2,474 |
| | 2,056 |
|
Additional paid-in capital | | 2,105,426 |
| | 1,705,306 |
|
Accumulated deficit | | (897,171 | ) | | (1,234,952 | ) |
Accumulated other comprehensive loss | | (16,102 | ) | | (41,445 | ) |
Total SHR’s shareholders’ equity | | 1,281,691 |
| | 710,513 |
|
Noncontrolling interests in consolidated affiliates | | 91,959 |
| | 92,355 |
|
Total equity | | 1,373,650 |
| | 802,868 |
|
Total liabilities, noncontrolling interests and equity | | $ | 3,309,914 |
| | $ | 2,337,151 |
|
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Financial Highlights
Supplemental Financial Data
(in thousands, except per share information)
|
| | | | | | | | |
| | September 30, 2014 |
| | Pro Rata Share | | Consolidated |
Capitalization | | | | |
Shares of common stock outstanding | | 247,383 |
| | 247,383 |
|
Operating partnership units outstanding | | 794 |
| | 794 |
|
Restricted stock units outstanding | | 1,470 |
| | 1,470 |
|
Combined shares and units outstanding | | 249,647 |
| | 249,647 |
|
Common stock price at end of period | | $ | 11.65 |
| | $ | 11.65 |
|
Common equity capitalization | | $ | 2,908,388 |
| | $ | 2,908,388 |
|
Preferred equity capitalization (at $25.00 face value) | | 90,384 |
| | 90,384 |
|
Consolidated debt | | 1,667,860 |
| | 1,667,860 |
|
Pro rata share of consolidated debt | | (132,561 | ) | | — |
|
Cash and cash equivalents | | (234,405 | ) | | (234,405 | ) |
Total enterprise value | | $ | 4,299,666 |
| | $ | 4,432,227 |
|
Net Debt / Total Enterprise Value | | 30.3 | % | | 32.3 | % |
Preferred Equity / Total Enterprise Value | | 2.1 | % | | 2.0 | % |
Common Equity / Total Enterprise Value | | 67.6 | % | | 65.7 | % |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Discontinued Operations
The results of operations of hotels sold are classified as discontinued operations and segregated in the consolidated statements of operations for all periods presented. The following hotels were sold during the nine months ended September 30, 2014:
|
| | | | | | | | | |
Hotel | | Location | | Date Sold | | Sales Proceeds | |
Four Seasons Punta Mita Resort and La Solana land parcel | | Punta Mita, Mexico | | February 28, 2014 | | $ | 206,867,000 |
| |
Marriott London Grosvenor Square | | London, England | | March 31, 2014 | | $ | 209,233,000 |
| (a) |
| |
(a) | There was an outstanding balance of £67,301,000 ($112,150,000) on the mortgage loan secured by the Marriott London Grosvenor Square hotel, which was repaid at the time of closing. The net proceeds we received were $97,083,000. |
The following is a summary of income (loss) from discontinued operations for the three and nine months ended September 30, 2014 and 2013 (in thousands):
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
Hotel operating revenues | | $ | — |
| | $ | 13,901 |
| | $ | 17,767 |
| | $ | 51,252 |
|
Operating costs and expenses | | — |
| | 10,641 |
| | 11,485 |
| | 36,141 |
|
Depreciation and amortization | | — |
| | 2,338 |
| | 1,275 |
| | 6,954 |
|
Total operating costs and expenses | | — |
| | 12,979 |
| | 12,760 |
| | 43,095 |
|
Operating income | | — |
| | 922 |
| | 5,007 |
| | 8,157 |
|
Interest expense | | — |
| | (1,879 | ) | | (1,326 | ) | | (5,521 | ) |
Interest income | | — |
| | 1 |
| | 2 |
| | 4 |
|
Loss on early extinguishment of debt | | — |
| | — |
| | (272 | ) | | — |
|
Foreign currency exchange (loss) gain | | — |
| | (37 | ) | | 32 |
| | 151 |
|
Income tax benefit (expense) | | — |
| | 415 |
| | (833 | ) | | (1,051 | ) |
Gain on sale, net of tax | | 63 |
| | — |
| | 156,492 |
| | — |
|
Income (loss) from discontinued operations | | $ | 63 |
| | $ | (578 | ) | | $ | 159,102 |
| | $ | 1,740 |
|
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Investments in Unconsolidated Affiliates
(in thousands)
We had a 36.4% equity ownership interest in the Hotel del Coronado that we accounted for using the equity method of accounting until we acquired the remaining 63.6% equity ownership interest not previously owned by us on June 11, 2014. We had a 50.0% equity ownership interest in the Fairmont Scottsdale Princess hotel that we accounted for using the equity method of accounting until we acquired the remaining 50.0% equity ownership interest not previously owned by us on March 31, 2014. For purposes of this analysis, the operating results reflect the 36.4% equity ownership interest we held in the Hotel del Coronado prior to June 11, 2014 and the 50.0% equity ownership interest we held in the Fairmont Scottsdale Princess hotel prior to March 31, 2014.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2014 | | Three Months Ended September 30, 2013 |
| | Hotel del Coronado | | Fairmont Scottsdale Princess | | Total | | Hotel del Coronado | | Fairmont Scottsdale Princess | | Total |
Total revenues (100%) | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 47,279 |
| | $ | 14,338 |
| | $ | 61,617 |
|
Property EBITDA (100%) | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 18,667 |
| | $ | (302 | ) | | $ | 18,365 |
|
Equity in earnings (losses) of unconsolidated affiliates (SHR ownership) | | | | | | | | |
Property EBITDA | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 6,790 |
| | $ | (151 | ) | | $ | 6,639 |
|
Depreciation and amortization | | — |
| | — |
| | — |
| | (1,896 | ) | | (1,533 | ) | | (3,429 | ) |
Interest expense | | — |
| | — |
| | — |
| | (1,950 | ) | | (195 | ) | | (2,145 | ) |
Other expenses, net | | — |
| | — |
| | — |
| | (205 | ) | | (16 | ) | | (221 | ) |
Income taxes | | — |
| | — |
| | — |
| | (339 | ) | | — |
| | (339 | ) |
Equity in earnings (losses) of unconsolidated affiliates | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 2,400 |
| | $ | (1,895 | ) | | $ | 505 |
|
EBITDA Contribution: | | | | | | | | | | | | |
Equity in earnings (losses) of unconsolidated affiliates | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 2,400 |
| | $ | (1,895 | ) | | $ | 505 |
|
Depreciation and amortization | | — |
| | — |
| | — |
| | 1,896 |
| | 1,533 |
| | 3,429 |
|
Interest expense | | — |
| | — |
| | — |
| | 1,950 |
| | 195 |
| | 2,145 |
|
Income taxes | | — |
| | — |
| | — |
| | 339 |
| | — |
| | 339 |
|
EBITDA Contribution | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 6,585 |
| | $ | (167 | ) | | $ | 6,418 |
|
FFO Contribution: | | | | | | | | | | | | |
Equity in earnings (losses) of unconsolidated affiliates | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 2,400 |
| | $ | (1,895 | ) | | $ | 505 |
|
Depreciation and amortization | | — |
| | — |
| | — |
| | 1,896 |
| | 1,533 |
| | 3,429 |
|
FFO Contribution | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 4,296 |
| | $ | (362 | ) | | $ | 3,934 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, 2014 | | Nine Months Ended September 30, 2013 |
| | Hotel del Coronado | | Fairmont Scottsdale Princess | | Total | | Hotel del Coronado | | Fairmont Scottsdale Princess | | Total |
Total revenues (100%) | | $ | 67,863 |
| | $ | 35,006 |
| | $ | 102,869 |
| | $ | 115,367 |
| | $ | 69,498 |
| | $ | 184,865 |
|
Property EBITDA (100%) | | $ | 20,761 |
| | $ | 13,191 |
| | $ | 33,952 |
| | $ | 38,487 |
| | $ | 14,772 |
| | $ | 53,259 |
|
Equity in earnings of unconsolidated affiliates (SHR ownership) | | | | | | | | | | |
Property EBITDA | | $ | 7,426 |
| | $ | 6,595 |
| | $ | 14,021 |
| | $ | 13,999 |
| | $ | 7,386 |
| | $ | 21,385 |
|
Depreciation and amortization | | (3,526 | ) | | (1,551 | ) | | (5,077 | ) | | (5,647 | ) | | (5,005 | ) | | (10,652 | ) |
Interest expense | | (3,418 | ) | | (168 | ) | | (3,586 | ) | | (6,384 | ) | | (585 | ) | | (6,969 | ) |
Other expenses, net | | (25 | ) | | (30 | ) | | (55 | ) | | (228 | ) | | (35 | ) | | (263 | ) |
Income taxes | | 143 |
| | — |
| | 143 |
| | (276 | ) | | — |
| | (276 | ) |
Equity in earnings of unconsolidated affiliates | | $ | 600 |
| | $ | 4,846 |
| | $ | 5,446 |
| | $ | 1,464 |
| | $ | 1,761 |
| | $ | 3,225 |
|
EBITDA Contribution | | | | | | | | | | | | |
Equity in earnings of unconsolidated affiliates | | $ | 600 |
| | $ | 4,846 |
| | $ | 5,446 |
| | $ | 1,464 |
| | $ | 1,761 |
| | $ | 3,225 |
|
Depreciation and amortization | | 3,526 |
| | 1,551 |
| | 5,077 |
| | 5,647 |
| | 5,005 |
| | 10,652 |
|
Interest expense | | 3,418 |
| | 168 |
| | 3,586 |
| | 6,384 |
| | 585 |
| | 6,969 |
|
Income taxes | | (143 | ) | | — |
| | (143 | ) | | 276 |
| | — |
| | 276 |
|
EBITDA Contribution | | $ | 7,401 |
| | $ | 6,565 |
| | $ | 13,966 |
| | $ | 13,771 |
| | $ | 7,351 |
| | $ | 21,122 |
|
FFO Contribution | | | | | | | | | | | | |
Equity in earnings of unconsolidated affiliates | | $ | 600 |
| | $ | 4,846 |
| | $ | 5,446 |
| | $ | 1,464 |
| | $ | 1,761 |
| | $ | 3,225 |
|
Depreciation and amortization | | 3,526 |
| | 1,551 |
| | 5,077 |
| | 5,647 |
| | 5,005 |
| | 10,652 |
|
FFO Contribution | | $ | 4,126 |
| | $ | 6,397 |
| | $ | 10,523 |
| | $ | 7,111 |
| | $ | 6,766 |
| | $ | 13,877 |
|
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Leasehold Information
(in thousands)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
Marriott Hamburg: | | | | | | | | |
Property EBITDA | | $ | 1,757 |
| | $ | 1,655 |
| | $ | 4,956 |
| | $ | 4,557 |
|
Revenue (a) | | $ | 1,264 |
| | $ | 1,416 |
| | $ | 3,882 |
| | $ | 3,776 |
|
| | | | | | | | |
Lease expense | | (1,215 | ) | | (1,202 | ) | | (3,733 | ) | | (3,584 | ) |
Less: Deferred gain on sale-leaseback | | (52 | ) | | (52 | ) | | (159 | ) | | (154 | ) |
Adjusted lease expense | | (1,267 | ) | | (1,254 | ) | | (3,892 | ) | | (3,738 | ) |
| | | | | | | | |
Comparable EBITDA contribution from leasehold | | $ | (3 | ) | | $ | 162 |
| | $ | (10 | ) | | $ | 38 |
|
|
| | | | | | | | |
Security Deposit (b): | | September 30, 2014 | | December 31, 2013 |
Marriott Hamburg | | $ | 2,400 |
| | $ | 2,611 |
|
| |
(a) | For the three and nine months ended September 30, 2014 and 2013, Revenue for the Marriott Hamburg hotel represents lease revenue. |
| |
(b) | The security deposit is recorded in prepaid expenses and other assets on the consolidated balance sheets. |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Non-GAAP Financial Measures
We present five non-GAAP financial measures that we believe are useful to management and investors as key measures of our operating performance: Funds from Operations (FFO); FFO—Fully Diluted; Comparable FFO; Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA); and Comparable EBITDA.
EBITDA represents net income (or loss) attributable to SHR common shareholders excluding: (i) interest expense, (ii) income taxes, including deferred income tax benefits and expenses applicable to our foreign subsidiaries and income taxes applicable to sale of assets; (iii) depreciation and amortization; and (iv) preferred stock dividends. EBITDA also excludes interest expense, income taxes and depreciation and amortization of our unconsolidated affiliates. EBITDA is presented on a full participation basis, which means we have assumed conversion of all redeemable noncontrolling interests of our operating partnership into our common stock. We believe this treatment of noncontrolling interests provides useful information for management and our investors and appropriately considers our current capital structure. We also present Comparable EBITDA, which eliminates the effect of realizing deferred gains on our sale leasebacks, as well as the effect of gains or losses on sales of assets, early extinguishment of debt, impairment losses, foreign currency exchange gains or losses and certain other charges that are highly variable from year to year. We believe EBITDA and Comparable EBITDA are useful to management and investors in evaluating our operating performance because they provide management and investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe they help management and investors meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our asset base (primarily depreciation and amortization) from our operating results. Our management also uses EBITDA and Comparable EBITDA as measures in determining the value of acquisitions and dispositions.
We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT adopted a definition of FFO in order to promote an industry-wide standard measure of REIT operating performance. NAREIT defines FFO as net income (or loss) (computed in accordance with GAAP) excluding losses or gains from sales of depreciable property, impairment of depreciable real estate, real estate-related depreciation and amortization, and our portion of these items related to unconsolidated affiliates. We also present FFO—Fully Diluted, which is FFO plus income or loss on income attributable to redeemable noncontrolling interests in our operating partnership. We also present Comparable FFO, which is FFO—Fully Diluted excluding the impact of any gains or losses on early extinguishment of debt, impairment losses on non-depreciable assets, foreign currency exchange gains or losses and certain other charges that are highly variable from year to year. We believe that the presentation of FFO, FFO—Fully Diluted and Comparable FFO provides useful information to management and investors regarding our results of operations because they are measures of our ability to fund capital expenditures and expand our business. In addition, FFO is widely used in the real estate industry to measure operating performance without regard to items such as depreciation and amortization. We also present Comparable FFO per diluted share as a non-GAAP measure of our performance. We calculate Comparable FFO per diluted share for a given operating period as our Comparable FFO (as defined above) divided by the weighted average of fully diluted shares outstanding, excluding shares related to the JW Marriott Essex House Hotel put option. Dilutive securities may include shares granted under share-based compensation plans and operating partnership units. No effect is shown for securities that are anti-dilutive.
We caution investors that amounts presented in accordance with our definitions of FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP measures in the same manner. FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA should not be considered as an alternative measure of our net income (or loss) or operating performance. FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA can enhance your understanding of our financial condition and results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily a better indicator of any trend as compared to comparable GAAP measures such as net income (or loss) attributable to SHR common shareholders. In addition, you should be aware that adverse economic and market conditions might negatively impact our cash flow. We have provided a quantitative reconciliation of FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA to the most directly comparable GAAP financial performance measure, which is net income (or loss) attributable to SHR common shareholders.
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA
(in thousands)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
Net income (loss) attributable to SHR common shareholders | | $ | 20,988 |
| | $ | 3,760 |
| | $ | 318,986 |
| | $ | (16,414 | ) |
Depreciation and amortization—continuing operations | | 32,932 |
| | 23,906 |
| | 83,195 |
| | 73,505 |
|
Depreciation and amortization—discontinued operations | | — |
| | 2,338 |
| | 1,275 |
| | 6,954 |
|
Interest expense—continuing operations | | 21,844 |
| | 19,227 |
| | 59,705 |
| | 58,350 |
|
Interest expense—discontinued operations | | — |
| | 1,879 |
| | 1,326 |
| | 5,521 |
|
Income taxes—continuing operations | | 370 |
| | (15 | ) | | 616 |
| | 70 |
|
Income taxes—discontinued operations | | — |
| | (415 | ) | | 833 |
| | 1,051 |
|
Income taxes—sale of assets | | — |
| | — |
| | 20,451 |
| | — |
|
Noncontrolling interests | | 67 |
| | 29 |
| | 1,197 |
| | (22 | ) |
Adjustments from consolidated affiliates | | (4,070 | ) | | (3,912 | ) | | (11,684 | ) | | (11,015 | ) |
Adjustments from unconsolidated affiliates | | (11 | ) | | 5,903 |
| | 8,432 |
| | 17,936 |
|
Preferred shareholder dividends | | 1,802 |
| | 6,042 |
| | 18,795 |
| | 18,125 |
|
EBITDA | | 73,922 |
| | 58,742 |
| | 503,127 |
| | 154,061 |
|
Realized portion of deferred gain on sale-leaseback | | (52 | ) | | (52 | ) | | (159 | ) | | (154 | ) |
Loss (gain) on sale of assets—continuing operations | | 38 |
| | 1,028 |
| | (729 | ) | | 755 |
|
(Loss) gain on sale of assets—adjustments from consolidated affiliates | | (5 | ) | | (370 | ) | | 104 |
| | (370 | ) |
Gain on sale of assets—discontinued operations | | (63 | ) | | — |
| | (176,943 | ) | | — |
|
Loss (gain) on consolidation of affiliates | | 15 |
| | — |
| | (143,451 | ) | | — |
|
Impairment losses and other charges | | — |
| | 728 |
| | — |
| | 728 |
|
Loss on early extinguishment of debt—continuing operations | | 609 |
| | — |
| | 609 |
| | — |
|
Loss on early extinguishment of debt—discontinued operations | | — |
| | — |
| | 272 |
| | — |
|
Foreign currency exchange loss (gain)—continuing operations (a) | | 69 |
| | (28 | ) | | 75 |
| | (26 | ) |
Foreign currency exchange loss (gain)—discontinued operations (a) | | — |
| | 37 |
| | (32 | ) | | (151 | ) |
Non-cash interest rate derivative activity | | 127 |
| | — |
| | 127 |
| | — |
|
Amortization of below market hotel management agreement | | 513 |
| | — |
| | 621 |
| | — |
|
Activist shareholder costs | | — |
| | — |
| | 1,637 |
| | — |
|
Comparable EBITDA | | $ | 75,173 |
| | $ | 60,085 |
| | $ | 185,258 |
| | $ | 154,843 |
|
| |
(a) | Foreign currency exchange gains or losses applicable to certain balance sheet items held by foreign subsidiaries. |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to
Funds From Operations (FFO), FFO—Fully Diluted and Comparable FFO
(in thousands, except per share data)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
Net income (loss) attributable to SHR common shareholders | | $ | 20,988 |
| | $ | 3,760 |
| | $ | 318,986 |
| | $ | (16,414 | ) |
Depreciation and amortization—continuing operations | | 32,932 |
| | 23,906 |
| | 83,195 |
| | 73,505 |
|
Depreciation and amortization—discontinued operations | | — |
| | 2,338 |
| | 1,275 |
| | 6,954 |
|
Corporate depreciation | | (124 | ) | | (125 | ) | | (370 | ) | | (383 | ) |
Loss (gain) on sale of assets—continuing operations | | 38 |
| | 1,028 |
| | (729 | ) | | 755 |
|
Gain on sale of assets, net of tax—discontinued operations | | (63 | ) | | — |
| | (156,492 | ) | | — |
|
Loss (gain) on consolidation of affiliates | | 15 |
| | — |
| | (143,451 | ) | | — |
|
Realized portion of deferred gain on sale-leaseback | | (52 | ) | | (52 | ) | | (159 | ) | | (154 | ) |
Noncontrolling interests adjustments | | (105 | ) | | (25 | ) | | (298 | ) | | (277 | ) |
Adjustments from consolidated affiliates | | (2,166 | ) | | (2,269 | ) | | (5,972 | ) | | (5,565 | ) |
Adjustments from unconsolidated affiliates | | — |
| | 3,429 |
| | 5,077 |
| | 10,653 |
|
FFO | | 51,463 |
| | 31,990 |
| | 101,062 |
| | 69,074 |
|
Redeemable noncontrolling interests | | 172 |
| | 53 |
| | 1,495 |
| | 255 |
|
FFO—Fully Diluted | | 51,635 |
| | 32,043 |
| | 102,557 |
| | 69,329 |
|
Impairment losses and other charges | | — |
| | 728 |
| | — |
| | 728 |
|
Non-cash interest rate derivative activity—continuing operations | | 3,241 |
| | (2,222 | ) | | 3,131 |
| | (6,873 | ) |
Non-cash interest rate derivative activity—discontinued operations | | — |
| | (755 | ) | | — |
| | (2,248 | ) |
Loss on early extinguishment of debt—continuing operations | | 609 |
| | — |
| | 609 |
| | — |
|
Loss on early extinguishment of debt—discontinued operations | | — |
| | — |
| | 272 |
| | — |
|
Foreign currency exchange loss (gain)—continuing operations (a) | | 69 |
| | (28 | ) | | 75 |
| | (26 | ) |
Foreign currency exchange loss (gain)—discontinued operations (a) | | — |
| | 37 |
| | (32 | ) | | (151 | ) |
Amortization of debt discount | | 623 |
| | — |
| | 1,246 |
| | — |
|
Amortization of below market hotel management agreement | | 513 |
| | — |
| | 621 |
| | — |
|
Activist shareholder costs | | — |
| | — |
| | 1,637 |
| | — |
|
Excess of redemption liability over carrying amount of redeemed preferred stock | | — |
| | — |
| | 6,912 |
| | — |
|
Comparable FFO | | $ | 56,690 |
| | $ | 29,803 |
| | $ | 117,028 |
| | $ | 60,759 |
|
Comparable FFO per fully diluted share | | $ | 0.23 |
| | $ | 0.14 |
| | $ | 0.51 |
| | $ | 0.29 |
|
Weighted average diluted shares (b) | | 251,862 |
| | 209,722 |
| | 229,364 |
| | 209,125 |
|
| |
(a) | Foreign currency exchange gains or losses applicable to certain balance sheet items held by foreign subsidiaries. |
| |
(b) | Excludes shares related to the JW Marriott Essex House Hotel put option. |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Debt Summary
(dollars in thousands)
|
| | | | | | | | | | | |
Debt | | Interest Rate | | Spread (a) | | Loan Amount | | Maturity (b) |
Fairmont Scottsdale Princess (c) | | 0.52 | % | | 36 bp | | $ | 117,000 |
| | April 2015 |
Westin St. Francis | | 6.09 | % | | Fixed | | 209,588 |
| | June 2017 |
Fairmont Chicago | | 6.09 | % | | Fixed | | 93,124 |
| | June 2017 |
JW Marriott Essex House Hotel | | 4.75 | % | | 400 bp | | 185,826 |
| | September 2017 |
Hyatt Regency La Jolla (d) | | 4.50% / 10.00% |
| | 400 bp / Fixed | | 89,262 |
| | December 2017 |
Hotel del Coronado (e) | | 3.81 | % | | 365 bp | | 475,000 |
| | March 2018 |
Bank credit facility (f) | | 2.16 | % | | 200 bp | | — |
| | April 2019 |
Four Seasons Washington, D.C. (g) | | 2.41 | % | | 225 bp | | 120,000 |
| | June 2019 |
Loews Santa Monica Beach Hotel (h) | | 2.71 | % | | 255 bp | | 120,000 |
| | May 2021 |
InterContinental Chicago | | 5.61 | % | | Fixed | | 143,060 |
| | August 2021 |
InterContinental Miami (i) | | 3.99 | % | | Fixed | | 115,000 |
| | September 2024 |
| | | | | | 1,667,860 |
| | |
Unamortized discount (c) | | | | | | (1,246 | ) | | |
| | | | | | $ | 1,666,614 |
| | |
| |
(a) | Spread over LIBOR (0.16% at September 30, 2014). Interest on the JW Marriott Essex House Hotel loan is subject to a 0.75% LIBOR floor. See (d) below for interest on the Hyatt Regency La Jolla loan. |
| |
(b) | Includes extension options. |
| |
(c) | On March 31, 2014, we acquired the remaining 50.0% equity interest in the Fairmont Scottsdale Princess hotel, resulting in the Fairmont Scottsdale Princess hotel becoming wholly-owned by us. In connection with the acquisition, we consolidated the Fairmont Scottsdale Princess hotel and became fully obligated under the entire mortgage loan secured by the Fairmont Scottsdale Princess hotel. We recorded the mortgage loan at its fair value, which included a debt discount, which is being amortized as additional interest expense over the maturity period of the loan. |
| |
(d) | Interest on $72,000,000 is payable at an annual rate of LIBOR plus 4.00%, subject to a 0.50% LIBOR floor, and interest on $17,262,000 is payable at a fixed rate of 10.00%. |
| |
(e) | On June 11, 2014, we acquired the remaining 63.6% equity interest in the Hotel del Coronado, resulting in the Hotel del Coronado becoming wholly-owned by us. In connection with the acquisition, we consolidated the Hotel del Coronado and became fully obligated under the entire outstanding balance of the mortgage and mezzanine loans secured by the Hotel del Coronado. |
| |
(f) | On April 25, 2014, we entered into a new $300,000,000 secured bank credit facility, which replaced the previous secured bank credit facility. |
| |
(g) | On June 30, 2014, we refinanced the loan secured by the Four Seasons Washington, D.C. hotel. |
| |
(h) | On May 29, 2014, we refinanced the loan secured by the Loews Santa Monica Beach Hotel. |
| |
(i) | On August 29, 2014, we entered into a new $115,000,000 loan secured by the InterContinental Miami hotel, which replaced the previous $85,000,000 loan. |
Debt Summary (Continued)
(dollars in thousands)
Future scheduled debt principal payments (including extension options) are as follows:
|
| | | | |
Years ending December 31, | | Amount |
2014 (remainder) | | $ | 474 |
|
2015 | | 120,140 |
|
2016 | | 6,831 |
|
2017 | | 573,972 |
|
2018 | | 477,299 |
|
Thereafter | | 489,144 |
|
| | 1,667,860 |
|
Unamortized discount | | (1,246 | ) |
| | $ | 1,666,614 |
|
| | |
Percent of fixed rate debt | | 34.7 | % |
Weighted average interest rate (j) | | 4.18 | % |
Weighted average maturity of fixed rate debt (debt with maturity of greater than one year) | | 5.16 |
|
(j) Excludes the amortization of deferred financing costs.
Exhibit 99.2
Strategic Hotels & Resorts, Inc.
Supplemental Financial Information
September 30, 2014
|
| | |
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | September 30, 2014 |
TABLE OF CONTENTS
|
| |
| |
| PAGE |
CORPORATE INFORMATION | |
The Company | |
Board of Directors | |
Officers | |
Equity Research Coverage | |
| |
FINANCIAL HIGHLIGHTS | |
Supplemental Financial Data | |
Consolidated Statements of Operations | |
Consolidated Balance Sheets | |
Discontinued Operations | |
Investments in Unconsolidated Affiliates | |
Leasehold Information | |
Non-GAAP Financial Measures | |
Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA | |
Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to Funds From Operations (FFO), FFO—Fully Diluted and Comparable FFO | |
Debt Summary | |
| |
PORTFOLIO DATA | |
Portfolio at September 30, 2014 | |
Seasonality by Geographic Region | |
Operating Statistics by Geographic Region | |
Selected Financial and Operating Information by Property | |
Reconciliation of Property EBITDA to EBITDA | |
Reconciliation of Property EBITDA to Comparable EBITDA | |
2014 Guidance | |
|
| | |
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | September 30, 2014 |
CORPORATE INFORMATION
The Company
Strategic Hotels & Resorts, Inc. is an industry-leading owner and asset manager of high-end hotels and resorts. We own interests in or lease a quality portfolio of upper upscale and luxury hotels and resorts in desirable United States and European locations. Our portfolio is currently made up of 16 properties totaling 7,865 rooms. We own interests in or lease unique hotels with complex operations, sophisticated customers and multiple revenue streams. Our properties include large convention hotels, business hotels and resorts, which are managed by internationally recognized hotel management companies.
We believe our asset management expertise is what truly distinguishes us. Asset management is our focus, our core competency, and our competitive advantage. Our business is driven by our team’s depth of knowledge and hands-on expertise in every aspect of the lodging industry. While our focus is to drive top line revenues, we importantly focus on every component of bottom line profitability. We use our experience to make selective, value added acquisitions and recycle capital through thoughtful and planned dispositions. Simply put, we are utilizing our expert management skills in building a great hotel company which we believe will provide attractive returns for our shareholders.
Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) and is traded on the New York Stock Exchange under the symbol BEE.
Fiscal Year End:
December 31
Number of Full-Time Equivalent Employees:
36
Corporate Headquarters:
200 West Madison Street, Suite 1700
Chicago, IL 60606
(312) 658-5000
Company Contacts:
Diane M. Morefield
Executive Vice President, Chief Financial Officer
(312) 658-5000
Jonathan P. Stanner
Senior Vice President, Capital Markets, Acquisitions and Treasurer
(312) 658-5000
|
| | |
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | September 30, 2014 |
Board of Directors
Raymond L. Gellein, Jr.
Chairman of the Board, Chief Executive Officer and President
Sheli Z. Rosenberg
Lead Independent Director
Robert P. Bowen
Director and Chairman of the Audit Committee
James A. Jeffs
Director and Chairman of the Compensation Committee
William A. Prezant
Director and Chairman of the Corporate Governance and Nominating Committee
David W. Johnson
Director
Richard D. Kincaid
Director
Sir David M.C. Michels
Director
Eugene F. Reilly
Director
|
| | |
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | September 30, 2014 |
Officers
Raymond L. Gellein, Jr.
Chief Executive Officer and President
Diane M. Morefield
Executive Vice President, Chief Financial Officer (Principal Financial and Accounting Officer)
Richard J. Moreau
Executive Vice President, Chief Operating Officer
Paula C. Maggio
Executive Vice President, Secretary & General Counsel
John K.T. Barrett
Senior Vice President, Asset Management
Thomas G. Healy
Senior Vice President, Asset Management
David R. Hogin, Jr.
Senior Vice President, Asset Management
Robert T. McAllister
Senior Vice President, Tax
Patricia A. Needham
Senior Vice President, Assistant Secretary
Eric D. Hassberger
Senior Vice President, Asset Management and Acquisitions
Jonathan P. Stanner
Senior Vice President, Capital Markets, Acquisitions and Treasurer
Gregory A. Brenner
Vice President, Controller
James L. Porter
Vice President, Internal Audit
George T. Stowers
Vice President, Design and Construction
|
| | |
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | September 30, 2014 |
Equity Research Coverage
|
| | | | |
| | | | |
Firm | | Analyst | | Telephone |
| | |
Bank of America Merrill Lynch | | Andrew Didora | | (646) 855-2924 |
| | |
Deutsche Bank North America | | Chris Woronka | | (212) 250-4486 |
| | |
Evercore Partners | | Smedes Rose | | (212) 497-0881 |
| | | | |
Green Street Advisors | | Lukas Hartwich | | (949) 640-8780 |
| | |
International Strategy & Investment Group, Inc. | | Rich Hightower | | (212) 752-0886 |
| | | | |
JMP Securities | | Robert LaFleur | | (415) 835-8944 |
| | |
J.P. Morgan Securities | | Jonathan Mohraz | | (212) 622-1111 |
| | |
MLV & Co | | Ryan Meliker | | (212) 542-5872 |
| | | | |
Raymond James & Associates | | William Crow | | (727) 567-2594 |
| | |
Wells Fargo Securities, LLC | | Jeffrey Donnelly | | (617) 603-4262 |
Strategic Hotels & Resorts, Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Strategic Hotels & Resorts, Inc.'s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Strategic Hotels & Resorts, Inc. or its management. Strategic Hotels & Resorts, Inc. does not by its reference here imply its endorsement of, or concurrence with, such information, conclusions or recommendations.
|
| | |
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | September 30, 2014 |
Financial Highlights
Supplemental Financial Data
(in thousands, except per share information)
|
| | | | | | | | |
| | September 30, 2014 |
| | Pro Rata Share | | Consolidated |
Capitalization | | | | |
Shares of common stock outstanding | | 247,383 |
| | 247,383 |
|
Operating partnership units outstanding | | 794 |
| | 794 |
|
Restricted stock units outstanding | | 1,470 |
| | 1,470 |
|
Combined shares and units outstanding | | 249,647 |
| | 249,647 |
|
Common stock price at end of period | | $ | 11.65 |
| | $ | 11.65 |
|
Common equity capitalization | | $ | 2,908,388 |
| | $ | 2,908,388 |
|
Preferred equity capitalization (at $25.00 face value) | | 90,384 |
| | 90,384 |
|
Consolidated debt | | 1,667,860 |
| | 1,667,860 |
|
Pro rata share of consolidated debt | | (132,561 | ) | | — |
|
Cash and cash equivalents | | (234,405 | ) | | (234,405 | ) |
Total enterprise value | | $ | 4,299,666 |
| | $ | 4,432,227 |
|
Net Debt / Total Enterprise Value | | 30.3 | % | | 32.3 | % |
Preferred Equity / Total Enterprise Value | | 2.1 | % | | 2.0 | % |
Common Equity / Total Enterprise Value | | 67.6 | % | | 65.7 | % |
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
Consolidated Statements of Operations
(in thousands, except per share data)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
Revenues: | | | | | | | | |
Rooms | | $ | 176,133 |
| | $ | 134,092 |
| | $ | 428,107 |
| | $ | 359,840 |
|
Food and beverage | | 96,642 |
| | 67,101 |
| | 266,687 |
| | 209,124 |
|
Other hotel operating revenue | | 31,224 |
| | 21,098 |
| | 77,405 |
| | 59,248 |
|
Lease revenue | | 1,264 |
| | 1,416 |
| | 3,882 |
| | 3,776 |
|
Total revenues | | 305,263 |
| | 223,707 |
| | 776,081 |
| | 631,988 |
|
Operating Costs and Expenses: | | | | | | | | |
Rooms | | 48,197 |
| | 36,441 |
| | 123,172 |
| | 104,291 |
|
Food and beverage | | 70,965 |
| | 54,408 |
| | 192,645 |
| | 163,247 |
|
Other departmental expenses | | 74,640 |
| | 54,825 |
| | 194,457 |
| | 159,291 |
|
Management fees | | 9,970 |
| | 6,376 |
| | 24,989 |
| | 17,833 |
|
Other hotel expenses | | 17,998 |
| | 13,685 |
| | 49,248 |
| | 43,808 |
|
Lease expense | | 1,215 |
| | 1,202 |
| | 3,733 |
| | 3,584 |
|
Depreciation and amortization | | 32,932 |
| | 23,906 |
| | 83,195 |
| | 73,505 |
|
Impairment losses and other charges | | — |
| | 728 |
| | — |
| | 728 |
|
Corporate expenses | | 5,405 |
| | 5,191 |
| | 19,796 |
| | 18,163 |
|
Total operating costs and expenses | | 261,322 |
| | 196,762 |
| | 691,235 |
| | 584,450 |
|
Operating income | | 43,941 |
| | 26,945 |
| | 84,846 |
| | 47,538 |
|
Interest expense | | (21,844 | ) | | (19,227 | ) | | (59,705 | ) | | (58,350 | ) |
Interest income | | 46 |
| | 11 |
| | 123 |
| | 41 |
|
Loss on early extinguishment of debt | | (609 | ) | | — |
| | (609 | ) | | — |
|
Equity in (losses) earnings of unconsolidated affiliates | | (4 | ) | | 451 |
| | 5,267 |
| | 3,252 |
|
Foreign currency exchange (loss) gain | | (69 | ) | | 28 |
| | (75 | ) | | 26 |
|
(Loss) gain on consolidation of affiliates | | (15 | ) | | — |
| | 143,451 |
| | — |
|
Other (expenses) income, net | | (136 | ) | | (832 | ) | | 1,082 |
| | 45 |
|
Income (loss) before income taxes and discontinued operations | | 21,310 |
| | 7,376 |
| | 174,380 |
| | (7,448 | ) |
Income tax (expense) benefit | | (370 | ) | | 15 |
| | (616 | ) | | (70 | ) |
Income (loss) from continuing operations | | 20,940 |
| | 7,391 |
| | 173,764 |
| | (7,518 | ) |
Income (loss) from discontinued operations, net of tax | | 63 |
| | (578 | ) | | 159,102 |
| | 1,740 |
|
Net Income (Loss) | | 21,003 |
| | 6,813 |
| | 332,866 |
| | (5,778 | ) |
Net (income) loss attributable to the noncontrolling interests in SHR's operating partnership | | (67 | ) | | (29 | ) | | (1,197 | ) | | 22 |
|
Net loss attributable to the noncontrolling interests in consolidated affiliates | | 1,854 |
| | 3,018 |
| | 6,112 |
| | 7,467 |
|
Net Income Attributable to SHR | | 22,790 |
| | 9,802 |
| | 337,781 |
| | 1,711 |
|
Preferred shareholder dividends | | (1,802 | ) | | (6,042 | ) | | (18,795 | ) | | (18,125 | ) |
Net Income (Loss) Attributable to SHR Common Shareholders | | $ | 20,988 |
| | $ | 3,760 |
| | $ | 318,986 |
| | $ | (16,414 | ) |
Basic Income (Loss) Per Common Share: | | | | | | | | |
Income (loss) from continuing operations attributable to SHR common shareholders | | $ | 0.08 |
| | $ | 0.02 |
| | $ | 0.71 |
| | $ | (0.09 | ) |
Income from discontinued operations attributable to SHR common shareholders | | — |
| | — |
| | 0.70 |
| | 0.01 |
|
Net income (loss) attributable to SHR common shareholders | | $ | 0.08 |
| | $ | 0.02 |
| | $ | 1.41 |
| | $ | (0.08 | ) |
Weighted average shares of common stock outstanding | | 248,509 |
| | 206,767 |
| | 225,932 |
| | 206,163 |
|
Diluted Income (Loss) Per Common Share: | | | | | | | | |
Income (loss) from continuing operations attributable to SHR common shareholders | | $ | 0.07 |
| | $ | — |
| | $ | 0.65 |
| | $ | (0.12 | ) |
Income from discontinued operations attributable to SHR common shareholders | | — |
| | — |
| | 0.67 |
| | 0.01 |
|
Net income (loss) attributable to SHR common shareholders | | $ | 0.07 |
| | $ | — |
| | $ | 1.32 |
| | $ | (0.11 | ) |
Weighted average shares of common stock outstanding | | 260,257 |
| | 220,258 |
| | 237,680 |
| | 217,553 |
|
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | September 30, 2014 and December 31, 2013 |
Consolidated Balance Sheets
(in thousands, except share data)
|
| | | | | | | | |
| | September 30, 2014 | | December 31, 2013 |
Assets | | | | |
Investment in hotel properties, net | | $ | 2,709,550 |
| | $ | 1,795,338 |
|
Goodwill | | 38,128 |
| | 38,128 |
|
Intangible assets, net of accumulated amortization of $5,463 and $11,753 | | 89,888 |
| | 29,502 |
|
Assets held for sale | | — |
| | 135,901 |
|
Investment in unconsolidated affiliates | | 22,909 |
| | 104,973 |
|
Cash and cash equivalents | | 234,405 |
| | 73,655 |
|
Restricted cash and cash equivalents | | 100,182 |
| | 75,916 |
|
Accounts receivable, net of allowance for doubtful accounts of $443 and $606 | | 58,003 |
| | 39,660 |
|
Deferred financing costs, net of accumulated amortization of $10,199 and $12,354 | | 9,474 |
| | 8,478 |
|
Deferred tax assets | | 1,763 |
| | — |
|
Prepaid expenses and other assets | | 45,612 |
| | 35,600 |
|
Total assets | | $ | 3,309,914 |
| | $ | 2,337,151 |
|
Liabilities, Noncontrolling Interests and Equity | | | | |
Liabilities: | | | | |
Mortgages and other debt payable, net of discount | | $ | 1,666,614 |
| | $ | 1,163,696 |
|
Bank credit facility | | — |
| | 110,000 |
|
Liabilities of assets held for sale | | — |
| | 17,027 |
|
Accounts payable and accrued expenses | | 214,627 |
| | 189,889 |
|
Deferred tax liabilities | | 45,777 |
| | 46,137 |
|
Total liabilities | | 1,927,018 |
| | 1,526,749 |
|
Commitments and contingencies | | | | |
Noncontrolling interests in SHR’s operating partnership | | 9,246 |
| | 7,534 |
|
Equity: | | | | |
SHR’s shareholders’ equity: | | | | |
8.50% Series A Cumulative Redeemable Preferred Stock ($0.01 par value per share; 0 and 4,148,141 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $0 and $103,704 in the aggregate) | | — |
| | 99,995 |
|
8.25% Series B Cumulative Redeemable Preferred Stock ($0.01 par value per share; 3,615,375 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $90,384 in the aggregate) | | 87,064 |
| | 87,064 |
|
8.25% Series C Cumulative Redeemable Preferred Stock ($0.01 par value per share; 0 and 3,827,727 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $0 and $95,693 in the aggregate) | | — |
| | 92,489 |
|
Common stock ($0.01 par value per share; 350,000,000 shares of common stock authorized; 247,382,990 and 205,582,838 shares of common stock issued and outstanding) | | 2,474 |
| | 2,056 |
|
Additional paid-in capital | | 2,105,426 |
| | 1,705,306 |
|
Accumulated deficit | | (897,171 | ) | | (1,234,952 | ) |
Accumulated other comprehensive loss | | (16,102 | ) | | (41,445 | ) |
Total SHR’s shareholders’ equity | | 1,281,691 |
| | 710,513 |
|
Noncontrolling interests in consolidated affiliates | | 91,959 |
| | 92,355 |
|
Total equity | | 1,373,650 |
| | 802,868 |
|
Total liabilities, noncontrolling interests and equity | | $ | 3,309,914 |
| | $ | 2,337,151 |
|
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
Discontinued Operations
The results of operations of hotels sold are classified as discontinued operations and segregated in the consolidated statements of operations for all periods presented. The following hotels were sold during the nine months ended September 30, 2014:
|
| | | | | | | | | |
Hotel | | Location | | Date Sold | | Sales Proceeds | |
Four Seasons Punta Mita Resort and La Solana land parcel | | Punta Mita, Mexico | | February 28, 2014 | | $ | 206,867,000 |
| |
Marriott London Grosvenor Square | | London, England | | March 31, 2014 | | $ | 209,233,000 |
| (a) |
| |
(a) | There was an outstanding balance of £67,301,000 ($112,150,000) on the mortgage loan secured by the Marriott London Grosvenor Square hotel, which was repaid at the time of closing. The net proceeds we received were $97,083,000. |
The following is a summary of income (loss) from discontinued operations for the three and nine months ended September 30, 2014 and 2013 (in thousands):
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
Hotel operating revenues | | $ | — |
| | $ | 13,901 |
| | $ | 17,767 |
| | $ | 51,252 |
|
Operating costs and expenses | | — |
| | 10,641 |
| | 11,485 |
| | 36,141 |
|
Depreciation and amortization | | — |
| | 2,338 |
| | 1,275 |
| | 6,954 |
|
Total operating costs and expenses | | — |
| | 12,979 |
| | 12,760 |
| | 43,095 |
|
Operating income | | — |
| | 922 |
| | 5,007 |
| | 8,157 |
|
Interest expense | | — |
| | (1,879 | ) | | (1,326 | ) | | (5,521 | ) |
Interest income | | — |
| | 1 |
| | 2 |
| | 4 |
|
Loss on early extinguishment of debt | | — |
| | — |
| | (272 | ) | | — |
|
Foreign currency exchange (loss) gain | | — |
| | (37 | ) | | 32 |
| | 151 |
|
Income tax benefit (expense) | | — |
| | 415 |
| | (833 | ) | | (1,051 | ) |
Gain on sale, net of tax | | 63 |
| | — |
| | 156,492 |
| | — |
|
Income (loss) from discontinued operations | | $ | 63 |
| | $ | (578 | ) | | $ | 159,102 |
| | $ | 1,740 |
|
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
Investments in Unconsolidated Affiliates
(in thousands)
We had a 36.4% equity ownership interest in the Hotel del Coronado that we accounted for using the equity method of accounting until we acquired the remaining 63.6% equity ownership interest not previously owned by us on June 11, 2014. We had a 50.0% equity ownership interest in the Fairmont Scottsdale Princess hotel that we accounted for using the equity method of accounting until we acquired the remaining 50.0% equity ownership interest not previously owned by us on March 31, 2014. For purposes of this analysis, the operating results reflect the 36.4% equity ownership interest we held in the Hotel del Coronado prior to June 11, 2014 and the 50.0% equity ownership interest we held in the Fairmont Scottsdale Princess hotel prior to March 31, 2014.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2014 | | Three Months Ended September 30, 2013 |
| | Hotel del Coronado | | Fairmont Scottsdale Princess | | Total | | Hotel del Coronado | | Fairmont Scottsdale Princess | | Total |
Total revenues (100%) | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 47,279 |
| | $ | 14,338 |
| | $ | 61,617 |
|
Property EBITDA (100%) | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 18,667 |
| | $ | (302 | ) | | $ | 18,365 |
|
Equity in earnings (losses) of unconsolidated affiliates (SHR ownership) | | | | | | | | |
Property EBITDA | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 6,790 |
| | $ | (151 | ) | | $ | 6,639 |
|
Depreciation and amortization | | — |
| | — |
| | — |
| | (1,896 | ) | | (1,533 | ) | | (3,429 | ) |
Interest expense | | — |
| | — |
| | — |
| | (1,950 | ) | | (195 | ) | | (2,145 | ) |
Other expenses, net | | — |
| | — |
| | — |
| | (205 | ) | | (16 | ) | | (221 | ) |
Income taxes | | — |
| | — |
| | — |
| | (339 | ) | | — |
| | (339 | ) |
Equity in earnings (losses) of unconsolidated affiliates | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 2,400 |
| | $ | (1,895 | ) | | $ | 505 |
|
EBITDA Contribution: | | | | | | | | | | | | |
Equity in earnings (losses) of unconsolidated affiliates | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 2,400 |
| | $ | (1,895 | ) | | $ | 505 |
|
Depreciation and amortization | | — |
| | — |
| | — |
| | 1,896 |
| | 1,533 |
| | 3,429 |
|
Interest expense | | — |
| | — |
| | — |
| | 1,950 |
| | 195 |
| | 2,145 |
|
Income taxes | | — |
| | — |
| | — |
| | 339 |
| | — |
| | 339 |
|
EBITDA Contribution | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 6,585 |
| | $ | (167 | ) | | $ | 6,418 |
|
FFO Contribution: | | | | | | | | | | | | |
Equity in earnings (losses) of unconsolidated affiliates | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 2,400 |
| | $ | (1,895 | ) | | $ | 505 |
|
Depreciation and amortization | | — |
| | — |
| | — |
| | 1,896 |
| | 1,533 |
| | 3,429 |
|
FFO Contribution | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 4,296 |
| | $ | (362 | ) | | $ | 3,934 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | Nine Months Ended September 30, 2014 | | Nine Months Ended September 30, 2013 |
| | Hotel del Coronado | | Fairmont Scottsdale Princess | | Total | | Hotel del Coronado | | Fairmont Scottsdale Princess | | Total |
Total revenues (100%) | | $ | 67,863 |
| | $ | 35,006 |
| | $ | 102,869 |
| | $ | 115,367 |
| | $ | 69,498 |
| | $ | 184,865 |
|
Property EBITDA (100%) | | $ | 20,761 |
| | $ | 13,191 |
| | $ | 33,952 |
| | $ | 38,487 |
| | $ | 14,772 |
| | $ | 53,259 |
|
Equity in earnings of unconsolidated affiliates (SHR ownership) | | | | | | | | | | |
Property EBITDA | | $ | 7,426 |
| | $ | 6,595 |
| | $ | 14,021 |
| | $ | 13,999 |
| | $ | 7,386 |
| | $ | 21,385 |
|
Depreciation and amortization | | (3,526 | ) | | (1,551 | ) | | (5,077 | ) | | (5,647 | ) | | (5,005 | ) | | (10,652 | ) |
Interest expense | | (3,418 | ) | | (168 | ) | | (3,586 | ) | | (6,384 | ) | | (585 | ) | | (6,969 | ) |
Other expenses, net | | (25 | ) | | (30 | ) | | (55 | ) | | (228 | ) | | (35 | ) | | (263 | ) |
Income taxes | | 143 |
| | — |
| | 143 |
| | (276 | ) | | — |
| | (276 | ) |
Equity in earnings of unconsolidated affiliates | | $ | 600 |
| | $ | 4,846 |
| | $ | 5,446 |
| | $ | 1,464 |
| | $ | 1,761 |
| | $ | 3,225 |
|
EBITDA Contribution | | | | | | | | | | | | |
Equity in earnings of unconsolidated affiliates | | $ | 600 |
| | $ | 4,846 |
| | $ | 5,446 |
| | $ | 1,464 |
| | $ | 1,761 |
| | $ | 3,225 |
|
Depreciation and amortization | | 3,526 |
| | 1,551 |
| | 5,077 |
| | 5,647 |
| | 5,005 |
| | 10,652 |
|
Interest expense | | 3,418 |
| | 168 |
| | 3,586 |
| | 6,384 |
| | 585 |
| | 6,969 |
|
Income taxes | | (143 | ) | | — |
| | (143 | ) | | 276 |
| | — |
| | 276 |
|
EBITDA Contribution | | $ | 7,401 |
| | $ | 6,565 |
| | $ | 13,966 |
| | $ | 13,771 |
| | $ | 7,351 |
| | $ | 21,122 |
|
FFO Contribution | | | | | | | | | | | | |
Equity in earnings of unconsolidated affiliates | | $ | 600 |
| | $ | 4,846 |
| | $ | 5,446 |
| | $ | 1,464 |
| | $ | 1,761 |
| | $ | 3,225 |
|
Depreciation and amortization | | 3,526 |
| | 1,551 |
| | 5,077 |
| | 5,647 |
| | 5,005 |
| | 10,652 |
|
FFO Contribution | | $ | 4,126 |
| | $ | 6,397 |
| | $ | 10,523 |
| | $ | 7,111 |
| | $ | 6,766 |
| | $ | 13,877 |
|
|
| | |
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
Leasehold Information
(in thousands)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
Marriott Hamburg: | | | | | | | | |
Property EBITDA | | $ | 1,757 |
| | $ | 1,655 |
| | $ | 4,956 |
| | $ | 4,557 |
|
Revenue (a) | | $ | 1,264 |
| | $ | 1,416 |
| | $ | 3,882 |
| | $ | 3,776 |
|
| | | | | | | | |
Lease expense | | (1,215 | ) | | (1,202 | ) | | (3,733 | ) | | (3,584 | ) |
Less: Deferred gain on sale-leaseback | | (52 | ) | | (52 | ) | | (159 | ) | | (154 | ) |
Adjusted lease expense | | (1,267 | ) | | (1,254 | ) | | (3,892 | ) | | (3,738 | ) |
| | | | | | | | |
Comparable EBITDA contribution from leasehold | | $ | (3 | ) | | $ | 162 |
| | $ | (10 | ) | | $ | 38 |
|
|
| | | | | | | | |
Security Deposit (b): | | September 30, 2014 | | December 31, 2013 |
Marriott Hamburg | | $ | 2,400 |
| | $ | 2,611 |
|
| |
(a) | For the three and nine months ended September 30, 2014 and 2013, Revenue for the Marriott Hamburg hotel represents lease revenue. |
| |
(b) | The security deposit is recorded in prepaid expenses and other assets on the consolidated balance sheets. |
|
| | |
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | September 30, 2014 |
Non-GAAP Financial Measures
We present five non-GAAP financial measures that we believe are useful to management and investors as key measures of our operating performance: Funds from Operations (FFO); FFO—Fully Diluted; Comparable FFO; Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA); and Comparable EBITDA.
EBITDA represents net income (or loss) attributable to SHR common shareholders excluding: (i) interest expense, (ii) income taxes, including deferred income tax benefits and expenses applicable to our foreign subsidiaries and income taxes applicable to sale of assets; (iii) depreciation and amortization; and (iv) preferred stock dividends. EBITDA also excludes interest expense, income taxes and depreciation and amortization of our unconsolidated affiliates. EBITDA is presented on a full participation basis, which means we have assumed conversion of all redeemable noncontrolling interests of our operating partnership into our common stock. We believe this treatment of noncontrolling interests provides useful information for management and our investors and appropriately considers our current capital structure. We also present Comparable EBITDA, which eliminates the effect of realizing deferred gains on our sale leasebacks, as well as the effect of gains or losses on sales of assets, early extinguishment of debt, impairment losses, foreign currency exchange gains or losses and certain other charges that are highly variable from year to year. We believe EBITDA and Comparable EBITDA are useful to management and investors in evaluating our operating performance because they provide management and investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe they help management and investors meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our asset base (primarily depreciation and amortization) from our operating results. Our management also uses EBITDA and Comparable EBITDA as measures in determining the value of acquisitions and dispositions.
We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT adopted a definition of FFO in order to promote an industry-wide standard measure of REIT operating performance. NAREIT defines FFO as net income (or loss) (computed in accordance with GAAP) excluding losses or gains from sales of depreciable property, impairment of depreciable real estate, real estate-related depreciation and amortization, and our portion of these items related to unconsolidated affiliates. We also present FFO—Fully Diluted, which is FFO plus income or loss on income attributable to redeemable noncontrolling interests in our operating partnership. We also present Comparable FFO, which is FFO—Fully Diluted excluding the impact of any gains or losses on early extinguishment of debt, impairment losses on non-depreciable assets, foreign currency exchange gains or losses and certain other charges that are highly variable from year to year. We believe that the presentation of FFO, FFO—Fully Diluted and Comparable FFO provides useful information to management and investors regarding our results of operations because they are measures of our ability to fund capital expenditures and expand our business. In addition, FFO is widely used in the real estate industry to measure operating performance without regard to items such as depreciation and amortization. We also present Comparable FFO per diluted share as a non-GAAP measure of our performance. We calculate Comparable FFO per diluted share for a given operating period as our Comparable FFO (as defined above) divided by the weighted average of fully diluted shares outstanding, excluding shares related to the JW Marriott Essex House Hotel put option. Dilutive securities may include shares granted under share-based compensation plans and operating partnership units. No effect is shown for securities that are anti-dilutive.
We caution investors that amounts presented in accordance with our definitions of FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP measures in the same manner. FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA should not be considered as an alternative measure of our net income (or loss) or operating performance. FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA can enhance your understanding of our financial condition and results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily a better indicator of any trend as compared to comparable GAAP measures such as net income (or loss) attributable to SHR common shareholders. In addition, you should be aware that adverse economic and market conditions might negatively impact our cash flow. We have provided a quantitative reconciliation of FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA to the most directly comparable GAAP financial performance measure, which is net income (or loss) attributable to SHR common shareholders.
|
| | |
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA
(in thousands)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
Net income (loss) attributable to SHR common shareholders | | $ | 20,988 |
| | $ | 3,760 |
| | $ | 318,986 |
| | $ | (16,414 | ) |
Depreciation and amortization—continuing operations | | 32,932 |
| | 23,906 |
| | 83,195 |
| | 73,505 |
|
Depreciation and amortization—discontinued operations | | — |
| | 2,338 |
| | 1,275 |
| | 6,954 |
|
Interest expense—continuing operations | | 21,844 |
| | 19,227 |
| | 59,705 |
| | 58,350 |
|
Interest expense—discontinued operations | | — |
| | 1,879 |
| | 1,326 |
| | 5,521 |
|
Income taxes—continuing operations | | 370 |
| | (15 | ) | | 616 |
| | 70 |
|
Income taxes—discontinued operations | | — |
| | (415 | ) | | 833 |
| | 1,051 |
|
Income taxes—sale of assets | | — |
| | — |
| | 20,451 |
| | — |
|
Noncontrolling interests | | 67 |
| | 29 |
| | 1,197 |
| | (22 | ) |
Adjustments from consolidated affiliates | | (4,070 | ) | | (3,912 | ) | | (11,684 | ) | | (11,015 | ) |
Adjustments from unconsolidated affiliates | | (11 | ) | | 5,903 |
| | 8,432 |
| | 17,936 |
|
Preferred shareholder dividends | | 1,802 |
| | 6,042 |
| | 18,795 |
| | 18,125 |
|
EBITDA | | 73,922 |
| | 58,742 |
| | 503,127 |
| | 154,061 |
|
Realized portion of deferred gain on sale-leaseback | | (52 | ) | | (52 | ) | | (159 | ) | | (154 | ) |
Loss (gain) on sale of assets—continuing operations | | 38 |
| | 1,028 |
| | (729 | ) | | 755 |
|
(Loss) gain on sale of assets—adjustments from consolidated affiliates | | (5 | ) | | (370 | ) | | 104 |
| | (370 | ) |
Gain on sale of assets—discontinued operations | | (63 | ) | | — |
| | (176,943 | ) | | — |
|
Loss (gain) on consolidation of affiliates | | 15 |
| | — |
| | (143,451 | ) | | — |
|
Impairment losses and other charges | | — |
| | 728 |
| | — |
| | 728 |
|
Loss on early extinguishment of debt—continuing operations | | 609 |
| | — |
| | 609 |
| | — |
|
Loss on early extinguishment of debt—discontinued operations | | — |
| | — |
| | 272 |
| | — |
|
Foreign currency exchange loss (gain)—continuing operations (a) | | 69 |
| | (28 | ) | | 75 |
| | (26 | ) |
Foreign currency exchange loss (gain)—discontinued operations (a) | | — |
| | 37 |
| | (32 | ) | | (151 | ) |
Non-cash interest rate derivative activity | | 127 |
| | — |
| | 127 |
| | — |
|
Amortization of below market hotel management agreement | | 513 |
| | — |
| | 621 |
| | — |
|
Activist shareholder costs | | — |
| | — |
| | 1,637 |
| | — |
|
Comparable EBITDA | | $ | 75,173 |
| | $ | 60,085 |
| | $ | 185,258 |
| | $ | 154,843 |
|
| |
(a) | Foreign currency exchange gains or losses applicable to certain balance sheet items held by foreign subsidiaries. |
|
| | |
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to
Funds From Operations (FFO), FFO—Fully Diluted and Comparable FFO
(in thousands, except per share data)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
Net income (loss) attributable to SHR common shareholders | | $ | 20,988 |
| | $ | 3,760 |
| | $ | 318,986 |
| | $ | (16,414 | ) |
Depreciation and amortization—continuing operations | | 32,932 |
| | 23,906 |
| | 83,195 |
| | 73,505 |
|
Depreciation and amortization—discontinued operations | | — |
| | 2,338 |
| | 1,275 |
| | 6,954 |
|
Corporate depreciation | | (124 | ) | | (125 | ) | | (370 | ) | | (383 | ) |
Loss (gain) on sale of assets—continuing operations | | 38 |
| | 1,028 |
| | (729 | ) | | 755 |
|
Gain on sale of assets, net of tax—discontinued operations | | (63 | ) | | — |
| | (156,492 | ) | | — |
|
Loss (gain) on consolidation of affiliates | | 15 |
| | — |
| | (143,451 | ) | | — |
|
Realized portion of deferred gain on sale-leaseback | | (52 | ) | | (52 | ) | | (159 | ) | | (154 | ) |
Noncontrolling interests adjustments | | (105 | ) | | (25 | ) | | (298 | ) | | (277 | ) |
Adjustments from consolidated affiliates | | (2,166 | ) | | (2,269 | ) | | (5,972 | ) | | (5,565 | ) |
Adjustments from unconsolidated affiliates | | — |
| | 3,429 |
| | 5,077 |
| | 10,653 |
|
FFO | | 51,463 |
| | 31,990 |
| | 101,062 |
| | 69,074 |
|
Redeemable noncontrolling interests | | 172 |
| | 53 |
| | 1,495 |
| | 255 |
|
FFO—Fully Diluted | | 51,635 |
| | 32,043 |
| | 102,557 |
| | 69,329 |
|
Impairment losses and other charges | | — |
| | 728 |
| | — |
| | 728 |
|
Non-cash interest rate derivative activity—continuing operations | | 3,241 |
| | (2,222 | ) | | 3,131 |
| | (6,873 | ) |
Non-cash interest rate derivative activity—discontinued operations | | — |
| | (755 | ) | | — |
| | (2,248 | ) |
Loss on early extinguishment of debt—continuing operations | | 609 |
| | — |
| | 609 |
| | — |
|
Loss on early extinguishment of debt—discontinued operations | | — |
| | — |
| | 272 |
| | — |
|
Foreign currency exchange loss (gain)—continuing operations (a) | | 69 |
| | (28 | ) | | 75 |
| | (26 | ) |
Foreign currency exchange loss (gain)—discontinued operations (a) | | — |
| | 37 |
| | (32 | ) | | (151 | ) |
Amortization of debt discount | | 623 |
| | — |
| | 1,246 |
| | — |
|
Amortization of below market hotel management agreement | | 513 |
| | — |
| | 621 |
| | — |
|
Activist shareholder costs | | — |
| | — |
| | 1,637 |
| | — |
|
Excess of redemption liability over carrying amount of redeemed preferred stock | | — |
| | — |
| | 6,912 |
| | — |
|
Comparable FFO | | $ | 56,690 |
| | $ | 29,803 |
| | $ | 117,028 |
| | $ | 60,759 |
|
Comparable FFO per fully diluted share | | $ | 0.23 |
| | $ | 0.14 |
| | $ | 0.51 |
| | $ | 0.29 |
|
Weighted average diluted shares (b) | | 251,862 |
| | 209,722 |
| | 229,364 |
| | 209,125 |
|
| |
(a) | Foreign currency exchange gains or losses applicable to certain balance sheet items held by foreign subsidiaries. |
| |
(b) | Excludes shares related to the JW Marriott Essex House Hotel put option. |
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | September 30, 2014 |
Debt Summary
(dollars in thousands)
|
| | | | | | | | | | | |
Debt | | Interest Rate | | Spread (a) | | Loan Amount | | Maturity (b) |
Fairmont Scottsdale Princess (c) | | 0.52 | % | | 36 bp | | $ | 117,000 |
| | April 2015 |
Westin St. Francis | | 6.09 | % | | Fixed | | 209,588 |
| | June 2017 |
Fairmont Chicago | | 6.09 | % | | Fixed | | 93,124 |
| | June 2017 |
JW Marriott Essex House Hotel | | 4.75 | % | | 400 bp | | 185,826 |
| | September 2017 |
Hyatt Regency La Jolla (d) | | 4.50% / 10.00% |
| | 400 bp / Fixed | | 89,262 |
| | December 2017 |
Hotel del Coronado (e) | | 3.81 | % | | 365 bp | | 475,000 |
| | March 2018 |
Bank credit facility (f) | | 2.16 | % | | 200 bp | | — |
| | April 2019 |
Four Seasons Washington, D.C. (g) | | 2.41 | % | | 225 bp | | 120,000 |
| | June 2019 |
Loews Santa Monica Beach Hotel (h) | | 2.71 | % | | 255 bp | | 120,000 |
| | May 2021 |
InterContinental Chicago | | 5.61 | % | | Fixed | | 143,060 |
| | August 2021 |
InterContinental Miami (i) | | 3.99 | % | | Fixed | | 115,000 |
| | September 2024 |
| | | | | | 1,667,860 |
| | |
Unamortized discount (c) | | | | | | (1,246 | ) | | |
| | | | | | $ | 1,666,614 |
| | |
| |
(a) | Spread over LIBOR (0.16% at September 30, 2014). Interest on the JW Marriott Essex House Hotel loan is subject to a 0.75% LIBOR floor. See (d) below for interest on the Hyatt Regency La Jolla loan. |
| |
(b) | Includes extension options. |
| |
(c) | On March 31, 2014, we acquired the remaining 50.0% equity interest in the Fairmont Scottsdale Princess hotel, resulting in the Fairmont Scottsdale Princess hotel becoming wholly-owned by us. In connection with the acquisition, we consolidated the Fairmont Scottsdale Princess hotel and became fully obligated under the entire mortgage loan secured by the Fairmont Scottsdale Princess hotel. We recorded the mortgage loan at its fair value, which included a debt discount, which is being amortized as additional interest expense over the maturity period of the loan. |
| |
(d) | Interest on $72,000,000 is payable at an annual rate of LIBOR plus 4.00%, subject to a 0.50% LIBOR floor, and interest on $17,262,000 is payable at an annual fixed rate of 10.00%. |
| |
(e) | On June 11, 2014, we acquired the remaining 63.6% equity interest in the Hotel del Coronado, resulting in the Hotel del Coronado becoming wholly-owned by us. In connection with the acquisition, we consolidated the Hotel del Coronado and became fully obligated under the entire outstanding balance of the mortgage and mezzanine loans secured by the Hotel del Coronado. |
| |
(f) | On April 25, 2014, we entered into a new $300,000,000 secured bank credit facility, which replaced the previous secured bank credit facility. |
| |
(g) | On June 30, 2014, we refinanced the loan secured by the Four Seasons Washington, D.C. hotel. |
| |
(h) | On May 29, 2014, we refinanced the loan secured by the Loews Santa Monica Beach Hotel. |
| |
(i) | On August 29, 2014, we entered into a new $115,000,000 loan secured by the InterContinental Miami hotel, which replaced the previous $85,000,000 loan. |
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | September 30, 2014 |
Debt Summary (Continued)
(in thousands)
Future scheduled debt principal payments (including extension options) are as follows:
|
| | | | |
Years ending December 31, | | Amount |
2014 (remainder) | | $ | 474 |
|
2015 | | 120,140 |
|
2016 | | 6,831 |
|
2017 | | 573,972 |
|
2018 | | 477,299 |
|
Thereafter | | 489,144 |
|
| | 1,667,860 |
|
Unamortized discount | | (1,246 | ) |
| | $ | 1,666,614 |
|
| | |
Percent of fixed rate debt | | 34.7 | % |
Weighted average interest rate (j) | | 4.18 | % |
Weighted average maturity of fixed rate debt (debt with maturity of greater than one year) | | 5.16 |
|
(j) Excludes the amortization of deferred financing costs.
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | September 30, 2014 |
Portfolio Data
Portfolio at September 30, 2014
(dollars in thousands)
|
| | | | | | | | | | | | | | | |
Hotel | | Location | | Number of Rooms | | % of Total Rooms | | 3rd QTR 2014 Property EBITDA | | % of 3rd QTR 2014 Property EBITDA |
United States: | | | | | | | | | | |
Westin St. Francis | | San Francisco, CA | | 1,195 |
| | 15 | % | | $ | 13,746 |
| | 17 | % |
InterContinental Chicago | | Chicago, IL | | 792 |
| | 10 | % | | 6,872 |
| | 8 | % |
Hotel del Coronado (a) | | Coronado, CA | | 757 |
| | 10 | % | | 17,788 |
| | 22 | % |
Fairmont Chicago | | Chicago, IL | | 687 |
| | 9 | % | | 5,420 |
| | 7 | % |
Fairmont Scottsdale Princess (b) | | Scottsdale, AZ | | 649 |
| | 8 | % | | (1,085 | ) | | (1 | )% |
InterContinental Miami | | Miami, FL | | 641 |
| | 8 | % | | 558 |
| | 1 | % |
JW Marriott Essex House Hotel (c) | | New York, NY | | 510 |
| | 6 | % | | 3,173 |
| | 4 | % |
Hyatt Regency La Jolla (d) | | La Jolla, CA | | 417 |
| | 5 | % | | 1,791 |
| | 2 | % |
Ritz-Carlton Laguna Niguel | | Dana Point, CA | | 396 |
| | 5 | % | | 10,993 |
| | 13 | % |
Marriott Lincolnshire Resort | | Lincolnshire, IL | | 389 |
| | 5 | % | | 1,343 |
| | 2 | % |
Loews Santa Monica Beach Hotel | | Santa Monica, CA | | 347 |
| | 5 | % | | 5,961 |
| | 7 | % |
Ritz-Carlton Half Moon Bay | | Half Moon Bay, CA | | 261 |
| | 3 | % | | 5,101 |
| | 6 | % |
Four Seasons Washington, D.C. | | Washington, D.C. | | 222 |
| | 3 | % | | 3,556 |
| | 4 | % |
Four Seasons Silicon Valley | | East Palo Alto, CA | | 200 |
| | 3 | % | | 2,407 |
| | 3 | % |
Four Seasons Jackson Hole | | Teton Village, WY | | 124 |
| | 2 | % | | 4,312 |
| | 5 | % |
Total United States | | | | 7,587 |
| | 97 | % | | 81,936 |
| | 100 | % |
European: | | | |
| |
| | | |
|
Marriott Hamburg (e) | | Hamburg, Germany | | 278 |
| | 3 | % | | N/A |
| | N/A |
|
| | | | 7,865 |
| | 100 | % | | 81,936 |
| | 100 | % |
| |
(a) | Prior to June 11, 2014, we accounted for our 36.4% ownership interest in this hotel using the equity method of accounting. On June 11, 2014, we acquired the remaining 63.6% ownership interest in this hotel and began consolidating the operations of this hotel. |
| |
(b) | Prior to March 31, 2014, we accounted for our 50.0% ownership interest in this hotel using the equity method of accounting. On March 31, 2014 we acquired the remaining 50.0% ownership interest in this hotel and began consolidating the operations of this hotel. |
| |
(c) | We own a 51.0% controlling interest in the entity that owns the JW Marriott Essex House Hotel and consolidate this hotel for reporting purposes. |
| |
(d) | We own a 53.5% controlling interest in the entity that owns the Hyatt Regency La Jolla hotel and consolidate this hotel for reporting purposes. |
| |
(e) | We sublease this property and have not included it in the percentage of Property EBITDA calculation. |
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Four Quarters Ended September 30, 2014 |
Seasonality by Geographic Region
(dollars in thousands)
The Total United States portfolio is derived from our hotel portfolio at September 30, 2014, consisting of all properties located in the United States, and 100% of the operations of the Hotel del Coronado and the Fairmont Scottsdale Princess hotel.
|
| | | | | | | | | | | | | | | | | | | | |
United States Hotels (as of September 30, 2014) | | | | | | | | |
Total property revenues - 15 Properties and 7,587 Rooms | | | | | | |
| | | | | | | | | | |
| | Three Months Ended | | |
| | December 31, 2013 | | March 31, 2014 | | June 30, 2014 | | September 30, 2014 | | Total |
Total property revenues | | $ | 287,176 |
| | $ | 262,402 |
| | $ | 308,648 |
| | $ | 303,878 |
| | $ | 1,162,104 |
|
Total property seasonality % | | 24.7 | % | | 22.6 | % | | 26.6 | % | | 26.1 | % | | 100.0 | % |
| | | | | | | | | | |
|
| | |
| | Supplemental Financial Information |
| | Three and Nine Months Ended September 30, 2014 and 2013 |
Operating Statistics by Geographic Region
The Total United States portfolio is derived from our hotel portfolio at September 30, 2014, consisting of all properties located in the United States, and 100% of the operations of the Hotel del Coronado and the Fairmont Scottsdale Princess hotel.
Total United States Hotels (as of September 30, 2014)
15 Properties
7,587 Rooms
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | | Nine Months Ended September 30, | | |
| | 2014 | | 2013 | | Change | | | | 2014 | | 2013 | | Change | | |
ADR | | $ | 314.53 |
| | $ | 296.68 |
| | 6.0 | | % | | $ | 299.25 |
| | $ | 283.96 |
| | 5.4 | | % |
Average Occupancy | | 80.2 | % | | 80.0 | % | | 0.2 | | pts | | 76.3 | % | | 75.8 | % | | 0.5 | | pts |
RevPAR | | $ | 252.30 |
| | $ | 237.23 |
| | 6.4 | | % | | $ | 228.19 |
| | $ | 215.30 |
| | 6.0 | | % |
Total RevPAR | | $ | 435.30 |
| | $ | 406.77 |
| | 7.0 | | % | | $ | 422.50 |
| | $ | 392.12 |
| | 7.7 | | % |
Property EBITDA Margin | | 27.0 | % | | 26.4 | % | | 0.6 | | pts | | 25.3 | % | | 23.9 | % | | 1.4 | | pts |
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
Selected Financial and Operating Information by Property
(in thousands, except operating information)
The following tables present selected financial and operating information by property for the three and nine months ended September 30, 2014 and 2013. Property EBITDA reflects property net operating income or loss plus depreciation and amortization. |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | | Nine Months Ended September 30, | | |
UNITED STATES HOTELS: | | 2014 | | 2013 | | Change | | | | 2014 | | 2013 | | Change | | |
FAIRMONT CHICAGO | | | | | | | | | | | | | | | | |
Selected Financial Information: | | | | | | | | | | | | | | | | |
Total revenues | | $ | 17,773 |
| | $ | 16,844 |
| | 5.5 |
| | % | | $ | 44,717 |
| | $ | 44,564 |
| | 0.3 |
| | % |
Property EBITDA | | $ | 5,420 |
| | $ | 5,233 |
| | 3.6 |
| | % | | $ | 9,093 |
| | $ | 9,813 |
| | (7.3 | ) | | % |
Selected Operating Information: | | | | | | | | | | | | | | | | |
Rooms | | 687 |
| | 687 |
| | — |
| | | | 687 |
| | 687 |
| | — |
| | |
Average occupancy | | 78.9 | % | | 81.0 | % | | (2.1 | ) | | pts | | 66.7 | % | | 71.6 | % | | (4.9 | ) | | pts |
ADR | | $ | 231.23 |
| | $ | 217.29 |
| | 6.4 |
| | % | | $ | 219.60 |
| | $ | 211.38 |
| | 3.9 |
| | % |
RevPAR | | $ | 182.33 |
| | $ | 175.94 |
| | 3.6 |
| | % | | $ | 146.43 |
| | $ | 151.33 |
| | (3.2 | ) | | % |
Total RevPAR | | $ | 281.20 |
| | $ | 266.51 |
| | 5.5 |
| | % | | $ | 238.42 |
| | $ | 237.61 |
| | 0.3 |
| | % |
| | | | | | | | | | | | | | | | |
FAIRMONT SCOTTSDALE PRINCESS | | | | | | | | | | | | | | |
Selected Financial Information (Amounts below are 100% of operations, of which SHR owns 100% and 50% as of September 30, 2014 and 2013, respectively): |
Total revenues | | $ | 15,098 |
| | $ | 14,338 |
| | 5.3 |
| | % | | $ | 76,819 |
| | $ | 69,498 |
| | 10.5 |
| | % |
Property EBITDA | | $ | (1,085 | ) | | $ | (302 | ) | | (259.3 | ) | | % | | $ | 19,244 |
| | $ | 14,772 |
| | 30.3 |
| | % |
Selected Operating Information: | | | | | | | | | | | | | | | | |
Rooms | | 649 |
| | 649 |
| | — |
| | | | 649 |
| | 649 |
| | — |
| | |
Average occupancy | | 60.0 | % | | 56.8 | % | | 3.2 |
| | pts | | 73.2 | % | | 70.9 | % | | 2.3 |
| | pts |
ADR | | $ | 159.68 |
| | $ | 161.87 |
| | (1.4 | ) | | % | | $ | 248.85 |
| | $ | 236.54 |
| | 5.2 |
| | % |
RevPAR | | $ | 95.79 |
| | $ | 91.94 |
| | 4.2 |
| | % | | $ | 182.19 |
| | $ | 167.68 |
| | 8.7 |
| | % |
Total RevPAR | | $ | 252.87 |
| | $ | 240.13 |
| | 5.3 |
| | % | | $ | 433.57 |
| | $ | 392.25 |
| | 10.5 |
| | % |
| | | | | | | | | | | | | | | | |
FOUR SEASONS JACKSON HOLE | | | | | | | | | | | | | | |
Selected Financial Information: | | |
Total revenues | | $ | 13,807 |
| | $ | 14,236 |
| | (3.0 | ) | | % | | $ | 35,100 |
| | $ | 33,305 |
| | 5.4 |
| | % |
Property EBITDA | | $ | 4,312 |
| | $ | 4,580 |
| | (5.9 | ) | | % | | $ | 8,407 |
| | $ | 7,980 |
| | 5.4 |
| | % |
Selected Operating Information: | | | | | | | | | | | | | | | | |
Rooms | | 124 |
| | 124 |
| | — |
| | | | 124 |
| | 124 |
| | — |
| | |
Average occupancy | | 77.9 | % | | 81.2 | % | | (3.3 | ) | | pts | | 66.3 | % | | 65.8 | % | | 0.5 |
| | pts |
ADR | | $ | 722.64 |
| | $ | 694.47 |
| | 4.1 |
| | % | | $ | 648.76 |
| | $ | 621.49 |
| | 4.4 |
| | % |
RevPAR | | $ | 562.82 |
| | $ | 563.71 |
| | (0.2 | ) | | % | | $ | 430.04 |
| | $ | 409.07 |
| | 5.1 |
| | % |
Total RevPAR | | $ | 1,210.30 |
| | $ | 1,247.89 |
| | (3.0 | ) | | % | | $ | 1,036.87 |
| | $ | 983.83 |
| | 5.4 |
| | % |
| | | | | | | | | | | | | | | | |
FOUR SEASONS SILICON VALLEY | | | | | | | | | | | | | | |
Selected Financial Information: | | |
Total revenues | | $ | 9,664 |
| | $ | 9,130 |
| | 5.8 |
| | % | | $ | 28,364 |
| | $ | 26,329 |
| | 7.7 |
| | % |
Property EBITDA | | $ | 2,407 |
| | $ | 2,040 |
| | 18.0 |
| | % | | $ | 6,944 |
| | $ | 5,729 |
| | 21.2 |
| | % |
Selected Operating Information: | | | | | | | | | | | | | | | | |
Rooms | | 200 |
| | 200 |
| | — |
| | | | 200 |
| | 200 |
| | — |
| | |
Average occupancy | | 82.1 | % | | 85.4 | % | | (3.3 | ) | | pts | | 75.9 | % | | 81.3 | % | | (5.4 | ) | | pts |
ADR | | $ | 396.82 |
| | $ | 337.39 |
| | 17.6 |
| | % | | $ | 396.40 |
| | $ | 333.23 |
| | 19.0 |
| | % |
RevPAR | | $ | 325.93 |
| | $ | 288.19 |
| | 13.1 |
| | % | | $ | 301.03 |
| | $ | 270.89 |
| | 11.1 |
| | % |
Total RevPAR | | $ | 525.24 |
| | $ | 496.18 |
| | 5.9 |
| | % | | $ | 519.48 |
| | $ | 482.21 |
| | 7.7 |
| | % |
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | | Nine Months Ended September 30, | | |
| | 2014 | | 2013 | | Change | | | | 2014 | | 2013 | | Change | | |
FOUR SEASONS WASHINGTON, D.C. | | | | | | | | | | | | | | |
Selected Financial Information: | | | | | | | | | | | | | | |
Total revenues | | $ | 16,618 |
| | $ | 14,448 |
| | 15.0 |
| | % | | $ | 51,062 |
| | $ | 48,827 |
| | 4.6 |
| | % |
Property EBITDA | | $ | 3,556 |
| | $ | 2,728 |
| | 30.4 |
| | % | | $ | 11,261 |
| | $ | 11,066 |
| | 1.8 |
| | % |
Selected Operating Information: | | | | | | | | | | | | | | |
Rooms | | 222 |
| | 222 |
| | — |
| | | | 222 |
| | 222 |
| | — |
| | |
Average occupancy | | 76.1 | % | | 70.0 | % | | 6.1 |
| | pts | | 73.9 | % | | 72.1 | % | | 1.8 |
| | pts |
ADR | | $ | 548.85 |
| | $ | 496.82 |
| | 10.5 |
| | % | | $ | 562.53 |
| | $ | 559.21 |
| | 0.6 |
| | % |
RevPAR | | $ | 417.58 |
| | $ | 347.65 |
| | 20.1 |
| | % | | $ | 415.91 |
| | $ | 403.15 |
| | 3.2 |
| | % |
Total RevPAR | | $ | 813.66 |
| | $ | 707.41 |
| | 15.0 |
| | % | | $ | 842.52 |
| | $ | 805.64 |
| | 4.6 |
| | % |
| | | | | | | | | | | | | | | | |
HOTEL DEL CORONADO | | | | | | | | | | | | | | | | |
Selected Financial Information (Amounts below are 100% of operations, of which SHR owns 100% and 36.4% as of September 30, 2014 and 2013, respectively): |
Total revenues | | $ | 49,666 |
| | $ | 47,279 |
| | 5.0 |
| | % | | $ | 128,808 |
| | $ | 115,367 |
| | 11.7 |
| | % |
Property EBITDA | | $ | 17,788 |
| | $ | 18,667 |
| | (4.7 | ) | | % | | $ | 42,309 |
| | $ | 38,487 |
| | 9.9 |
| | % |
Selected Operating Information: | | | | | | | | | | | | | | |
Rooms | | 757 |
| | 757 |
| | — |
| | | | 757 |
| | 757 |
| | — |
| | |
Average occupancy | | 69.9 | % | | 80.5 | % | | (10.6 | ) | | pts | | 67.1 | % | | 70.3 | % | | (3.2 | ) | | pts |
ADR | | $ | 539.33 |
| | $ | 463.30 |
| | 16.4 |
| | % | | $ | 435.22 |
| | $ | 391.59 |
| | 11.1 |
| | % |
RevPAR | | $ | 376.99 |
| | $ | 372.82 |
| | 1.1 |
| | % | | $ | 291.83 |
| | $ | 275.09 |
| | 6.1 |
| | % |
Total RevPAR | | $ | 713.15 |
| | $ | 678.87 |
| | 5.0 |
| | % | | $ | 623.28 |
| | $ | 558.24 |
| | 11.7 |
| | % |
| | | | | | | | | | | | | | | | |
HYATT REGENCY LA JOLLA | | | | | | | | | | | | | | |
Selected Financial Information: | | | | | | | | | | | | | | |
Total revenues | | $ | 9,647 |
| | $ | 8,673 |
| | 11.2 |
| | % | | $ | 25,722 |
| | $ | 25,674 |
| | 0.2 |
| | % |
Property EBITDA | | $ | 1,791 |
| | $ | 1,876 |
| | (4.5 | ) | | % | | $ | 3,378 |
| | $ | 5,087 |
| | (33.6 | ) | | % |
Selected Operating Information: | | | | | | | | | | | | | | |
Rooms | | 417 |
| | 419 |
| | (2 | ) | | | | 417 |
| | 419 |
| | (2 | ) | | |
Average occupancy | | 81.7 | % | | 82.1 | % | | (0.4 | ) | | pts | | 68.2 | % | | 75.0 | % | | (6.8 | ) | | pts |
ADR | | $ | 182.83 |
| | $ | 174.90 |
| | 4.5 |
| | % | | $ | 177.91 |
| | $ | 171.94 |
| | 3.5 |
| | % |
RevPAR | | $ | 149.36 |
| | $ | 143.61 |
| | 4.0 |
| | % | | $ | 121.24 |
| | $ | 128.86 |
| | (5.9 | ) | | % |
Total RevPAR | | $ | 251.46 |
| | $ | 225.00 |
| | 11.8 |
| | % | | $ | 225.59 |
| | $ | 224.45 |
| | 0.5 |
| | % |
| | | | | | | | | | | | | | | | |
INTERCONTINENTAL CHICAGO | | | | | | | | | | | | | | |
Selected Financial Information: | | | | | | | | | | | | | | |
Total revenues | | $ | 22,319 |
| | $ | 21,688 |
| | 2.9 |
| | % | | $ | 56,534 |
| | $ | 56,590 |
| | (0.1 | ) | | % |
Property EBITDA | | $ | 6,872 |
| | $ | 6,939 |
| | (1.0 | ) | | % | | $ | 13,281 |
| | $ | 13,383 |
| | (0.8 | ) | | % |
Selected Operating Information: | | | | | | | | | | | | | | |
Rooms | | 792 |
| | 792 |
| | — |
| | | | 792 |
| | 792 |
| | — |
| | |
Average occupancy | | 87.9 | % | | 90.1 | % | | (2.2 | ) | | pts | | 79.8 | % | | 77.7 | % | | 2.1 |
| | pts |
ADR | | $ | 205.49 |
| | $ | 199.38 |
| | 3.1 |
| | % | | $ | 192.42 |
| | $ | 197.24 |
| | (2.4 | ) | | % |
RevPAR | | $ | 180.69 |
| | $ | 179.70 |
| | 0.6 |
| | % | | $ | 153.54 |
| | $ | 153.28 |
| | 0.2 |
| | % |
Total RevPAR | | $ | 306.32 |
| | $ | 297.65 |
| | 2.9 |
| | % | | $ | 261.47 |
| | $ | 261.73 |
| | (0.1 | ) | | % |
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | | Nine Months Ended September 30, | | |
| | 2014 | | 2013 | | Change | | | | 2014 | | 2013 | | Change | | |
INTERCONTINENTAL MIAMI | | | | | | | | | | | | | | |
Selected Financial Information: | | | | | | | | | | | | | | |
Total revenues | | $ | 11,990 |
| | $ | 10,144 |
| | 18.2 |
| | % | | $ | 52,999 |
| | $ | 47,302 |
| | 12.0 |
| | % |
Property EBITDA | | $ | 558 |
| | $ | 315 |
| | 77.1 |
| | % | | $ | 14,956 |
| | $ | 13,245 |
| | 12.9 |
| | % |
Selected Operating Information: | | | | | | | | | | | | | | |
Rooms | | 641 |
| | 641 |
| | — |
| | | | 641 |
| | 641 |
| | — |
| | |
Average occupancy | | 78.1 | % | | 70.5 | % | | 7.6 |
| | pts | | 85.4 | % | | 81.1 | % | | 4.3 |
| | pts |
ADR | | $ | 141.14 |
| | $ | 138.51 |
| | 1.9 |
| | % | | $ | 196.49 |
| | $ | 188.45 |
| | 4.3 |
| | % |
RevPAR | | $ | 110.17 |
| | $ | 97.62 |
| | 12.9 |
| | % | | $ | 167.79 |
| | $ | 152.82 |
| | 9.8 |
| | % |
Total RevPAR | | $ | 203.31 |
| | $ | 172.03 |
| | 18.2 |
| | % | | $ | 302.87 |
| | $ | 270.31 |
| | 12.0 |
| | % |
| | | | | | | | | | | | | | | | |
JW MARRIOTT ESSEX HOUSE HOTEL | | | | | | | | | | | | |
Selected Financial Information: | | |
Total revenues | | $ | 21,787 |
| | $ | 20,380 |
| | 6.9 |
| | % | | $ | 64,478 |
| | $ | 59,686 |
| | 8.0 |
| | % |
Property EBITDA | | $ | 3,173 |
| | $ | 1,474 |
| | 115.3 |
| | % | | $ | 9,146 |
| | $ | 5,022 |
| | 82.1 |
| | % |
Selected Operating Information: |
Rooms | | 510 |
| | 510 |
| | — |
| | | | 510 |
| | 510 |
| | — |
| | |
Average occupancy | | 83.5 | % | | 78.6 | % | | 4.9 |
| | pts | | 82.2 | % | | 80.3 | % | | 1.9 |
| | pts |
ADR | | $ | 439.31 |
| | $ | 444.61 |
| | (1.2 | ) | | % | | $ | 422.05 |
| | $ | 414.82 |
| | 1.7 |
| | % |
RevPAR | | $ | 366.89 |
| | $ | 349.29 |
| | 5.0 |
| | % | | $ | 347.11 |
| | $ | 333.04 |
| | 4.2 |
| | % |
Total RevPAR | | $ | 463.44 |
| | $ | 433.51 |
| | 6.9 |
| | % | | $ | 462.20 |
| | $ | 423.34 |
| | 9.2 |
| | % |
| | | | | |
| | | | | | | | | | |
LOEWS SANTA MONICA BEACH HOTEL | | | | | | | | | | | | |
Selected Financial Information: | | | | | | | | | | | | | | |
Total revenues | | $ | 16,144 |
| | $ | 16,100 |
| | 0.3 |
| | % | | $ | 44,471 |
| | $ | 41,178 |
| | 8.0 |
| | % |
Property EBITDA | | $ | 5,961 |
| | $ | 5,911 |
| | 0.8 |
| | % | | $ | 14,376 |
| | $ | 12,420 |
| | 15.7 |
| | % |
Selected Operating Information: | | | | | | | | | | | | | | |
Rooms | | 347 |
| | 342 |
| | 5 |
| | | | 347 |
| | 342 |
| | 5 |
| | |
Average occupancy | | 88.1 | % | | 92.3 | % | | (4.2 | ) | | pts | | 87.6 | % | | 87.1 | % | | 0.5 |
| | pts |
ADR | | $ | 432.62 |
| | $ | 405.49 |
| | 6.7 |
| | % | | $ | 380.13 |
| | $ | 350.37 |
| | 8.5 |
| | % |
RevPAR | | $ | 381.33 |
| | $ | 374.43 |
| | 1.8 |
| | % | | $ | 333.09 |
| | $ | 305.22 |
| | 9.1 |
| | % |
Total RevPAR | | $ | 505.69 |
| | $ | 511.71 |
| | (1.2 | ) | | % | | $ | 473.79 |
| | $ | 441.04 |
| | 7.4 |
| | % |
| | | | | | | | | | | | | | | | |
MARRIOTT LINCOLNSHIRE RESORT | | | | | | | | | | | | | | |
Selected Financial Information: | | | | | | | | | | | | | | | | |
Total revenues | | $ | 9,786 |
| | $ | 8,579 |
| | 14.1 |
| | % | | $ | 25,031 |
| | $ | 23,609 |
| | 6.0 |
| | % |
Property EBITDA | | $ | 1,343 |
| | $ | 736 |
| | 82.5 |
| | % | | $ | 1,726 |
| | $ | 991 |
| | 74.2 |
| | % |
Selected Operating Information: | | | | | | | | | | | | | | | | |
Rooms | | 389 |
| | 389 |
| | — |
| | | | 389 |
| | 389 |
| | — |
| | |
Average occupancy | | 74.4 | % | | 66.3 | % | | 8.1 |
| | pts | | 61.9 | % | | 52.7 | % | | 9.2 |
| | pts |
ADR | | $ | 131.85 |
| | $ | 134.68 |
| | (2.1 | ) | | % | | $ | 134.05 |
| | $ | 132.49 |
| | 1.2 |
| | % |
RevPAR | | $ | 98.14 |
| | $ | 89.26 |
| | 9.9 |
| | % | | $ | 83.00 |
| | $ | 69.79 |
| | 18.9 |
| | % |
Total RevPAR | | $ | 273.43 |
| | $ | 239.72 |
| | 14.1 |
| | % | | $ | 235.71 |
| | $ | 219.89 |
| | 7.2 |
| | % |
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | | Nine Months Ended September 30, | | |
| | 2014 | | 2013 | | Change | | | | 2014 | | 2013 | | Change | | |
RITZ-CARLTON HALF MOON BAY | | | | | | | | | | | | | | |
Selected Financial Information: | | | | | | | | | | | | | | | | |
Total revenues | | $ | 18,697 |
| | $ | 16,792 |
| | 11.3 |
| | % | | $ | 49,518 |
| | $ | 45,973 |
| | 7.7 |
| | % |
Property EBITDA | | $ | 5,101 |
| | $ | 3,973 |
| | 28.4 |
| | % | | $ | 10,321 |
| | $ | 8,778 |
| | 17.6 |
| | % |
Selected Operating Information: | | | | | | | | | | | | | | | | |
Rooms | | 261 |
| | 261 |
| | — |
| | | | 261 |
| | 261 |
| | — |
| | |
Average occupancy | | 75.8 | % | | 73.4 | % | | 2.4 |
| | pts | | 70.5 | % | | 68.7 | % | | 1.8 |
| | pts |
ADR | | $ | 495.65 |
| | $ | 463.48 |
| | 6.9 |
| | % | | $ | 429.19 |
| | $ | 411.97 |
| | 4.2 |
| | % |
RevPAR | | $ | 375.82 |
| | $ | 340.21 |
| | 10.5 |
| | % | | $ | 302.76 |
| | $ | 283.03 |
| | 7.0 |
| | % |
Total RevPAR | | $ | 778.67 |
| | $ | 699.30 |
| | 11.3 |
| | % | | $ | 694.96 |
| | $ | 645.21 |
| | 7.7 |
| | % |
| | | | | | | | | | | | | | | | |
RITZ-CARLTON LAGUNA NIGUEL | | | | | | | | | | | | | | |
Selected Financial Information: | | | | | | | | | | | | | | | | |
Total revenues | | $ | 27,075 |
| | $ | 26,035 |
| | 4.0 |
| | % | | $ | 71,964 |
| | $ | 66,939 |
| | 7.5 |
| | % |
Property EBITDA | | $ | 10,993 |
| | $ | 9,192 |
| | 19.6 |
| | % | | $ | 25,249 |
| | $ | 20,904 |
| | 20.8 |
| | % |
Selected Operating Information: | | | | | | | | | | | | | | | | |
Rooms | | 396 |
| | 396 |
| | — |
| | | | 396 |
| | 396 |
| | — |
| | |
Average occupancy | | 78.1 | % | | 79.7 | % | | (1.6 | ) | | pts | | 72.3 | % | | 71.4 | % | | 0.9 |
| | pts |
ADR | | $ | 504.98 |
| | $ | 473.16 |
| | 6.7 |
| | % | | $ | 430.95 |
| | $ | 410.39 |
| | 5.0 |
| | % |
RevPAR | | $ | 394.50 |
| | $ | 377.02 |
| | 4.6 |
| | % | | $ | 311.37 |
| | $ | 292.97 |
| | 6.3 |
| | % |
Total RevPAR | | $ | 743.17 |
| | $ | 714.61 |
| | 4.0 |
| | % | | $ | 665.67 |
| | $ | 619.18 |
| | 7.5 |
| | % |
| | | | | | | | | | | | | | | | |
WESTIN ST. FRANCIS | | | | | | | | | | | | | | | | |
Selected Financial Information: | | | | | | | | | | | | | | | | |
Total revenues | | $ | 43,805 |
| | $ | 39,181 |
| | 11.8 |
| | % | | $ | 119,343 |
| | $ | 108,169 |
| | 10.3 |
| | % |
Property EBITDA | | $ | 13,746 |
| | $ | 11,688 |
| | 17.6 |
| | % | | $ | 31,789 |
| | $ | 26,789 |
| | 18.7 |
| | % |
Selected Operating Information: | | | | | | | | | | | | | | | | |
Rooms | | 1,195 |
| | 1,195 |
| | — |
| | | | 1,195 |
| | 1,195 |
| | — |
| | |
Average occupancy | | 94.6 | % | | 93.1 | % | | 1.5 |
| | pts | | 87.7 | % | | 87.0 | % | | 0.7 |
| | pts |
ADR | | $ | 288.24 |
| | $ | 258.43 |
| | 11.5 |
| | % | | $ | 266.08 |
| | $ | 243.06 |
| | 9.5 |
| | % |
RevPAR | | $ | 272.55 |
| | $ | 240.59 |
| | 13.3 |
| | % | | $ | 233.47 |
| | $ | 211.44 |
| | 10.4 |
| | % |
Total RevPAR | | $ | 398.45 |
| | $ | 356.39 |
| | 11.8 |
| | % | | $ | 365.82 |
| | $ | 331.57 |
| | 10.3 |
| | % |
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | | Nine Months Ended September 30, | | |
| | 2014 | | 2013 | | Change | | | | 2014 | | 2013 | | Change | | |
EUROPEAN HOTEL: | | | | | | | | | | | | | | | | |
MARRIOTT HAMBURG | | | | | | | | | | | | | | | | |
Selected Financial Information: | | | | | | | | | | | | | | |
Total revenues | | $ | 6,233 |
| | $ | 5,889 |
| | 5.8 |
| | % | | $ | 17,663 |
| | $ | 16,232 |
| | 8.8 |
| | % |
Property EBITDA | | $ | 1,757 |
| | $ | 1,655 |
| | 6.2 |
| | % | | $ | 4,956 |
| | $ | 4,557 |
| | 8.8 |
| | % |
Selected Operating Information: | | | | | | | | | | | | | | |
Rooms | | 278 |
| | 278 |
| | — |
| | | | 278 |
| | 278 |
| | — |
| | |
Average occupancy | | 88.6 | % | | 91.2 | % | | (2.6 | ) | | pts | | 86.0 | % | | 83.3 | % | | 2.7 |
| | pts |
ADR | | $ | 211.46 |
| | $ | 195.49 |
| | 8.2 |
| | % | | $ | 202.76 |
| | $ | 189.81 |
| | 6.8 |
| | % |
RevPAR | | $ | 187.28 |
| | $ | 178.29 |
| | 5.0 |
| | % | | $ | 174.44 |
| | $ | 158.16 |
| | 10.3 |
| | % |
Total RevPAR | | $ | 243.70 |
| | $ | 230.25 |
| | 5.8 |
| | % | | $ | 232.74 |
| | $ | 213.88 |
| | 8.8 |
| | % |
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
Reconciliation of Property EBITDA to EBITDA
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
Hotel | | Property EBITDA | | EBITDA | | Property EBITDA | | EBITDA | | Property EBITDA | | EBITDA | | Property EBITDA | | EBITDA |
Fairmont Chicago | | $ | 5,420 |
| | $ | 5,420 |
| | $ | 5,233 |
| | $ | 5,233 |
| | $ | 9,093 |
| | $ | 9,093 |
| | $ | 9,813 |
| | $ | 9,813 |
|
Fairmont Scottsdale Princess (a) | | (1,085 | ) | | (1,085 | ) | | (302 | ) | | — |
| | 19,244 |
| | 6,053 |
| | 14,772 |
| | — |
|
Four Seasons Jackson Hole | | 4,312 |
| | 4,312 |
| | 4,580 |
| | 4,580 |
| | 8,407 |
| | 8,407 |
| | 7,980 |
| | 7,980 |
|
Four Seasons Silicon Valley | | 2,407 |
| | 2,407 |
| | 2,040 |
| | 2,040 |
| | 6,944 |
| | 6,944 |
| | 5,729 |
| | 5,729 |
|
Four Seasons Washington, D.C. | | 3,556 |
| | 3,556 |
| | 2,728 |
| | 2,728 |
| | 11,261 |
| | 11,261 |
| | 11,066 |
| | 11,066 |
|
Hotel del Coronado (a) | | 17,788 |
| | 17,788 |
| | 18,667 |
| | — |
| | 42,309 |
| | 21,548 |
| | 38,487 |
| | — |
|
Hyatt Regency La Jolla | | 1,791 |
| | 1,791 |
| | 1,876 |
| | 1,876 |
| | 3,378 |
| | 3,378 |
| | 5,087 |
| | 5,087 |
|
InterContinental Chicago | | 6,872 |
| | 6,872 |
| | 6,939 |
| | 6,939 |
| | 13,281 |
| | 13,281 |
| | 13,383 |
| | 13,383 |
|
InterContinental Miami | | 558 |
| | 558 |
| | 315 |
| | 315 |
| | 14,956 |
| | 14,956 |
| | 13,245 |
| | 13,245 |
|
JW Marriott Essex House Hotel | | 3,173 |
| | 3,173 |
| | 1,474 |
| | 1,474 |
| | 9,146 |
| | 9,146 |
| | 5,022 |
| | 5,022 |
|
Loews Santa Monica Beach Hotel | | 5,961 |
| | 5,961 |
| | 5,911 |
| | 5,911 |
| | 14,376 |
| | 14,376 |
| | 12,420 |
| | 12,420 |
|
Marriott Lincolnshire Resort | | 1,343 |
| | 1,343 |
| | 736 |
| | 736 |
| | 1,726 |
| | 1,726 |
| | 991 |
| | 991 |
|
Ritz-Carlton Half Moon Bay | | 5,101 |
| | 5,101 |
| | 3,973 |
| | 3,973 |
| | 10,321 |
| | 10,321 |
| | 8,778 |
| | 8,778 |
|
Ritz-Carlton Laguna Niguel | | 10,993 |
| | 10,993 |
| | 9,192 |
| | 9,192 |
| | 25,249 |
| | 25,249 |
| | 20,904 |
| | 20,904 |
|
Westin St. Francis | | 13,746 |
| | 13,746 |
| | 11,688 |
| | 11,688 |
| | 31,789 |
| | 31,789 |
| | 26,789 |
| | 26,789 |
|
Marriott Hamburg (b) | | 1,757 |
| | 49 |
| | 1,655 |
| | 214 |
| | 4,956 |
| | 149 |
| | 4,557 |
| | 192 |
|
| | $ | 83,693 |
| | $ | 81,985 |
| | $ | 76,705 |
| | $ | 56,899 |
| | $ | 226,436 |
| | $ | 187,677 |
| | $ | 199,023 |
| | $ | 141,399 |
|
Adjustments: | | | | | | | | | | | | | | | | |
Impairment losses and other charges | | | | — |
| | | | (728 | ) | | | | — |
| | | | (728 | ) |
Corporate expenses | | | | (5,405 | ) | | | | (5,191 | ) | | | | (19,796 | ) | | | | (18,163 | ) |
Interest income | | | | 46 |
| | | | 11 |
| | | | 123 |
| | | | 41 |
|
Loss on early extinguishment of debt | | | | (609 | ) | | | | — |
| | | | (609 | ) | | | | — |
|
Equity in (losses) earnings of unconsolidated affiliates | | (4 | ) | | | | 451 |
| | | | 5,267 |
| | | | 3,252 |
|
Foreign currency exchange (loss) gain | | (69 | ) | | | | 28 |
| | | | (75 | ) | | | | 26 |
|
(Loss) gain on consolidation of affiliate | | | | (15 | ) | | | | — |
| | | | 143,451 |
| | | | — |
|
Other (expenses) income, net | | | | (136 | ) | | | | (832 | ) | | | | 1,082 |
| | | | 45 |
|
Income (loss) from discontinued operations | | | | 63 |
| | | | (578 | ) | | | | 159,102 |
| | | | 1,740 |
|
Depreciation expense—discontinued operations | | — |
| | | | 2,338 |
| | | | 1,275 |
| | | | 6,954 |
|
Interest expense—discontinued operations | | — |
| | | | 1,879 |
| | | | 1,326 |
| | | | 5,521 |
|
Income taxes—discontinued operations | | — |
| | | | (415 | ) | | | | 833 |
| | | | 1,051 |
|
Income taxes—sale of assets | | | | — |
| | | | — |
| | | | 20,451 |
| | | | — |
|
Noncontrolling interest in consolidated affiliates | | 1,854 |
| | | | 3,018 |
| | | | 6,112 |
| | | | 7,467 |
|
Adjustments from consolidated affiliates | | (4,070 | ) | | | | (3,912 | ) | | | | (11,684 | ) | | | | (11,015 | ) |
Adjustments from unconsolidated affiliates | | (11 | ) | | | | 5,903 |
| | | | 8,432 |
| | | | 17,936 |
|
Other adjustments | | | | 293 |
| | | | (129 | ) | | | | 160 |
| | | | (1,465 | ) |
EBITDA | | | | $ | 73,922 |
| | | | $ | 58,742 |
| | | | $ | 503,127 |
| | | | $ | 154,061 |
|
| |
(a) | On March 31, 2014, we acquired the remaining ownership interest in the Fairmont Scottsdale Princess hotel and consolidated the property. On June 11, 2014, we acquired the remaining ownership interest in the Hotel del Coronado and consolidated the property. EBITDA for the three and nine months ended September 30, 2014 represents revenue and expenses generated by these properties subsequent to the consolidation of these properties. Prior to the acquisitions on March 31, 2014 and June 11, 2014, we accounted for these properties under the equity method of accounting. EBITDA related to our interest in these properties while they were accounted for under the equity method of accounting is reflected in adjustments from unconsolidated affiliates. Property EBITDA represents 100% of revenue and expenses generated by these properties. |
| |
(b) | We have a leasehold interest in and sublease this property. Therefore, EBITDA represents the lease revenue less the lease expense recorded in our statements. Property EBITDA represents the revenue less expenses generated by the property. |
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | Three and Nine Months Ended September 30, 2014 and 2013 |
Reconciliation of Property EBITDA to Comparable EBITDA
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2014 | | Nine Months Ended September 30, 2014 |
| | Property EBITDA | | Adjustments | | Comparable EBITDA | | Property EBITDA | | Adjustments | | Comparable EBITDA |
Urban Hotels: | | | | | | | | | | | | |
Fairmont Chicago | | $ | 5,420 |
| | $ | — |
| | $ | 5,420 |
| | $ | 9,093 |
| | $ | — |
| | $ | 9,093 |
|
Four Seasons Silicon Valley | | 2,407 |
| | — |
| | 2,407 |
| | 6,944 |
| | — |
| | 6,944 |
|
Four Seasons Washington, D.C. | | 3,556 |
| | — |
| | 3,556 |
| | 11,261 |
| | — |
| | 11,261 |
|
Hyatt Regency La Jolla | | 1,791 |
| | (772 | ) | | 1,019 |
| | 3,378 |
| | (1,510 | ) | | 1,868 |
|
InterContinental Chicago | | 6,872 |
| | — |
| | 6,872 |
| | 13,281 |
| | — |
| | 13,281 |
|
InterContinental Miami | | 558 |
| | — |
| | 558 |
| | 14,956 |
| | — |
| | 14,956 |
|
JW Marriott Essex House Hotel | | 3,173 |
| | (1,433 | ) | | 1,740 |
| | 9,146 |
| | (4,359 | ) | | 4,787 |
|
Westin St. Francis | | 13,746 |
| | — |
| | 13,746 |
| | 31,789 |
| | — |
| | 31,789 |
|
Total Urban Hotels | | 37,523 |
| | (2,205 | ) | | 35,318 |
| | 99,848 |
| | (5,869 | ) | | 93,979 |
|
Resorts: | | | | | | | | | | | | |
Fairmont Scottsdale Princess | | (1,085 | ) | | — |
| | (1,085 | ) | | 19,244 |
| | (6,626 | ) | | 12,618 |
|
Four Seasons Jackson Hole | | 4,312 |
| | — |
| | 4,312 |
| | 8,407 |
| | — |
| | 8,407 |
|
Hotel del Coronado | | 17,788 |
| | 514 |
| | 18,302 |
| | 42,309 |
| | (13,337 | ) | | 28,972 |
|
Loews Santa Monica Beach Hotel | | 5,961 |
| | — |
| | 5,961 |
| | 14,376 |
| | — |
| | 14,376 |
|
Marriott Lincolnshire Resort | | 1,343 |
| | — |
| | 1,343 |
| | 1,726 |
| | — |
| | 1,726 |
|
Ritz-Carlton Half Moon Bay | | 5,101 |
| | — |
| | 5,101 |
| | 10,321 |
| | — |
| | 10,321 |
|
Ritz-Carlton Laguna Niguel | | 10,993 |
| | — |
| | 10,993 |
| | 25,249 |
| | — |
| | 25,249 |
|
Total Resorts | | 44,413 |
| | 514 |
| | 44,927 |
| | 121,632 |
| | (19,963 | ) | | 101,669 |
|
European Hotel: | | | | | | | | | | | | |
Marriott Hamburg | | 1,757 |
| | (1,760 | ) | | (3 | ) | | 4,956 |
| | (4,966 | ) | | (10 | ) |
| | $ | 83,693 |
| | $ | (3,451 | ) | | $ | 80,242 |
| | $ | 226,436 |
| | $ | (30,798 | ) | | $ | 195,638 |
|
| | | | | | | | | | | | |
| | % of QTR Comparable EBITDA | | | | % of YTD Comparable EBITDA | | |
Urban Hotels | | 44 | % | |
| | 48 | % | |
|
Resorts | | 56 | % | |
| | 52 | % | |
|
Total | | 100 | % | | | | 100 | % | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total United States Urban Hotels (as of September 30, 2014) | | | | | | | | |
8 Properties | | | | | | | | | | | | | | | | |
4,664 Rooms | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | | Nine Months Ended September 30, | | |
| | 2014 | | 2013 | | Change | | | | 2014 | | 2013 | | Change | | |
ADR | | $ | 270.17 |
| | $ | 252.62 |
| | 6.9 |
| | % | | $ | 266.88 |
| | $ | 254.35 |
| | 4.9 |
| | % |
Average Occupancy | | 85.1 | % | | 83.7 | % | | 1.4 |
| | pts | | 79.5 | % | | 79.6 | % | | (0.1 | ) | | pts |
RevPAR | | $ | 229.87 |
| | $ | 211.43 |
| | 8.7 |
| | % | | $ | 212.04 |
| | $ | 202.39 |
| | 4.8 |
| | % |
Total RevPAR | | $ | 357.90 |
| | $ | 327.20 |
| | 9.4 |
| | % | | $ | 347.97 |
| | $ | 327.02 |
| | 6.4 |
| | % |
Property EBITDA Margin | | 24.4 | % | | 23.0 | % | | 1.4 |
| | pts | | 22.5 | % | | 21.6 | % | | 0.9 |
| | pts |
| | | | | | | | | | | | | | | | |
Total United States Resorts (as of September 30, 2014) | | | | | | | | |
7 Properties | | | | | | | | | | | | | | | | |
2,923 Rooms | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | | Nine Months Ended September 30, | | |
| | 2014 | | 2013 | | Change | | | | 2014 | | 2013 | | Change | | |
ADR | | $ | 397.67 |
| | $ | 376.38 |
| | 5.7 |
| | % | | $ | 357.01 |
| | $ | 337.90 |
| | 5.7 |
| | % |
Average Occupancy | | 72.5 | % | | 74.0 | % | | (1.5 | ) | | pts | | 71.1 | % | | 69.8 | % | | 1.3 |
| | pts |
RevPAR | | $ | 288.11 |
| | $ | 278.50 |
| | 3.5 |
| | % | | $ | 253.99 |
| | $ | 235.95 |
| | 7.6 |
| | % |
Total RevPAR | | $ | 558.81 |
| | $ | 534.01 |
| | 4.6 |
| | % | | $ | 541.60 |
| | $ | 496.21 |
| | 9.1 |
| | % |
Property EBITDA Margin | | 29.6 | % | | 29.8 | % | | (0.2 | ) | | pts | | 28.2 | % | | 26.4 | % | | 1.8 |
| | pts |
|
| | |
| | Supplemental Financial Information |
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) | | September 30, 2014 |
2014 Guidance
(in millions, except per share data)
|
| | | | | | |
| | Year Ended December 31, 2014 |
Operational Guidance | | Low Range | | High Range |
Total RevPAR growth | | 6.0 | % | | 7.0 | % |
RevPAR growth | | 5.5 | % | | 7.0 | % |
|
| | | | | | | | |
| | Year Ended December 31, 2014 |
Comparable EBITDA Guidance | | Low Range | | High Range |
Net income attributable to common shareholders | | $ | 315.6 |
| | $ | 325.6 |
|
Depreciation and amortization | | 121.5 |
| | 121.5 |
|
Interest expense | | 83.8 |
| | 83.8 |
|
Income taxes | | 1.9 |
| | 1.9 |
|
Noncontrolling interests | | 1.2 |
| | 1.2 |
|
Adjustments from consolidated affiliates | | (16.0 | ) | | (16.0 | ) |
Adjustments from unconsolidated affiliates | | 8.4 |
| | 8.4 |
|
Preferred shareholder dividends | | 13.7 |
| | 13.7 |
|
Preferred stock redemption liability | | 6.9 |
| | 6.9 |
|
Realized portion of deferred gain on sale-leasebacks | | (0.2 | ) | | (0.2 | ) |
Gain on sale of asset | | (157.2 | ) | | (157.2 | ) |
Gain on consolidation of affiliates | | (143.5 | ) | | (143.5 | ) |
Other adjustments | | 3.9 |
| | 3.9 |
|
Comparable EBITDA | | $ | 240.0 |
| | $ | 250.0 |
|
|
| | | | | | | | |
| | Year Ended December 31, 2014 |
Comparable FFO Guidance | | Low Range | | High Range |
Net income attributable to common shareholders | | $ | 315.6 |
| | $ | 325.6 |
|
Depreciation and amortization | | 120.8 |
| | 120.8 |
|
Realized portion of deferred gain on sale-leasebacks | | (0.2 | ) | | (0.2 | ) |
Gain on sale of asset | | (157.2 | ) | | (157.2 | ) |
Gain on consolidation of affiliates | | (143.5 | ) | | (143.5 | ) |
Noncontrolling interests | | 1.2 |
| | 1.2 |
|
Adjustments from consolidated affiliates | | (8.5 | ) | | (8.5 | ) |
Adjustments from unconsolidated affiliates | | 5.1 |
| | 5.1 |
|
Interest rate swap OCI amortization | | 8.9 |
| | 8.9 |
|
Preferred stock redemption liability | | 6.9 |
| | 6.9 |
|
Other adjustments | | 2.9 |
| | 2.9 |
|
Comparable FFO | | $ | 152.0 |
| | $ | 162.0 |
|
Comparable FFO per diluted share | | $ | 0.65 |
| | $ | 0.69 |
|