Condor Hospitality Trust, Inc. (NYSE American: CDOR) (the
“Company”) today announced results of operations for the fourth
quarter and full year ended December 31, 2020.
FOURTH QUARTER AND FISCAL YEAR 2020 RELEASE FINANCIAL
HIGHLIGHTS
Fourth Quarter 2020 Financial Highlights
- Portfolio Revenue Per Available Room (RevPAR): The 15 hotels
Same-Store RevPAR in the fourth quarter 2020 decreased 50.1% to
$44.71 compared to the fourth quarter 2019. Same-Store Average
Daily Rate (ADR) decreased 29.0% to $84.83 and Same-Store occupancy
decreased 29.8% to 52.7% in the fourth quarter 2020 compared to the
same period in 2019.
- Net Loss: Net Loss Attributable to Common Shareholders was
($5.2) million or ($0.38) per diluted share in the fourth quarter
2020 compared to ($2.0) million or ($0.17) per diluted share for
the same period in 2019.
- Adjusted EBITDAre: Adjusted EBITDAre decreased in the fourth
quarter 2020 99% to $0.04 million from $4.0 million for the same
period in 2019.
- Adjusted Funds from Operations: Adjusted Funds from Operations
decreased $3.8 million in the fourth quarter 2020 to ($2.0) million
or ($0.17) per diluted share compared to $1.8 million or $0.15 per
diluted share in the same period in 2019
- Same-Store Hotel EBITDA: Same-Store Hotel EBITDA was $1.0
million in the fourth quarter 2020, a decrease of 80.5% from the
same period in 2019. Margin contracted 1,920 bps to 12.6% in the
fourth quarter 2020 compared to 31.8% in the same period in
2019.
Full Year 2020 Financial Highlights
- Portfolio Revenue Per Available Room (RevPAR): The 15 hotels
Same-Store RevPAR in 2020 decreased 48.3% to $50.98 compared to
2019. Same-Store Average Daily Rate (ADR) decreased 20.9% to $99.00
and Same-Store Occupancy decreased 34.7% to 51.49% in 2020 compared
to the same period in 2019.
- Net Loss: Net loss Attributable to Common Shareholders was
($19.7) million or ($1.59) per diluted share for the full year 2020
compared to ($5.6) million or ($0.48) per diluted share for
2019.
- Adjusted EBITDAre: Adjusted EBITDAre decreased 89.7% to $2.2
million in 2020 from $21.2 million for the full year 2019.
- Adjusted Funds from Operations: Adjusted Funds from Operations
decreased $16.8 million to ($5.5) million or ($0.46) per diluted
share in 2020 compared to $11.3 million or $0.94 per diluted share
for the full year 2019.
- Same-Store Hotel EBITDA: Same-Store Hotel EBITDA was $6.5
million in 2020, a decrease of 75.9% from the full year 2019.
Margin contracted 1,900 bps to 17.8% in 2020 compared to 36.8% in
2019.
MANAGEMENT COMMENTARY
Bill Blackham, Condor’s Chief Executive Officer, commented: “The
hospitality industry including Condor faced unprecedented
challenges brought by the COVID-19 pandemic and the resulting near
evaporation of demand. Beginning in March of 2020 Condor acted
quickly to substantially reduce portfolio operating expenses,
reduce corporate overhead and enhance our sales efforts to capture
more than our fair share of greatly reduced demand. Our hotel
portfolio returned to positive cash flow beginning in May and
remained positive throughout the remainder of 2020. We also took
steps to enhance liquidity including the successful completion of
an amendment to our credit facility providing important covenant
compliance deferrals and access to $13.4 million of revolving
credit through the January 2023 extended maturity. Our portfolio
continued outperforming our select service public REIT peer group
with the lowest fourth quarter RevPAR decline to the same period in
2019 and 12.6% hotel portfolio margins. When eliminating the two
Aloft properties and the Indigo property that have larger food and
beverage platforms those proforma margins increased to 21.9%. While
demand remained stable during the fourth quarter, our occupancy was
52.7% and the portfolio is positioned to reap the benefit from the
anticipated leisure demand increases we expect late first and early
second quarters 2021 and that we began experiencing in second half
of February 2021. We anticipate that business travel led initially
by local business demand, and then regional demand, will begin late
in the second quarter and improve over the remainder of 2021.”
Condor Hospitality
Trust
Selected Statistical and
Financial Data
As of and for the three months
and year ended December 31, 2020
(in thousands except
statistical and per share amounts)
(Unaudited)
Three months ended December
31,
Year ended December
31,
2020
2019
2020
2019
Net Loss
$
(5,039)
$
(1,824)
$
(19,071)
$
(5,067)
Diluted Earnings (Loss) per Share
$
(0.38)
$
(0.17)
$
(1.59)
$
(0.48)
Adjusted EBITDAre
$
41
$
4,039
$
2,177
$
21,171
Hotel EBITDA - Same-Store*
$
1,045
$
5,364
$
6,525
$
27,030
Hotel EBITDA Margin - Same-Store*
12.6%
31.8%
17.8%
36.8%
Adjusted FFO
$
(2,030)
$
1,807
$
(5,468)
$
11,251
Adjusted FFO per Diluted Share
$
(0.17)
$
0.15
$
(0.46)
$
0.94
Same-Store RevPAR*
$
44.71
$
89.68
$
50.98
$
98.68
Same-Store Occupancy*
52.70%
75.07%
51.49%
78.88%
Same-Store ADR*
$
84.83
$
119.45
$
99.00
$
125.09
The following table summarizes key hotel statistics during the
fourth quarter of 2020, amid the COVID-19 pandemic, compared to the
fourth quarter of 2019:
October 2020
November 2020
December 2020
Three Months ended December
31, 2020
October 2019
November 2019
December 2019
Three Months ended December
31, 2019
Same-Store ADR*
$
89.51
$
83.02
$
81.28
$
84.83
$
127.15
$
120.11
$
109.47
$
119.45
Same-Store Occupancy*
57.01%
51.11%
49.94%
52.70%
81.21%
76.53%
67.53%
75.07%
Same-Store RevPAR*
$
51.03
$
42.43
$
40.59
$
44.71
$
103.26
$
91.91
$
73.93
$
89.68
Hotel EBITDA – Same-Store*
$
701
$
180
$
164
$
1,045
$
2,533
$
1,851
$
980
$
5,364
Hotel EBITDA Margin – Same-Store*
21.8%
7.0%
6.5%
12.6%
38.9%
33.0%
20.7%
31.8%
*Please see the Reg. G reconciliation tables at the end of this
release. Financial data presented above includes results from prior
to our 100% ownership of Atlanta Aloft.
OPERATIONS UPDATE
- All Hotels Open: All of Condor’s hotels are open with expanded
and repetitive health and sanitation measures in place. The Company
closed 2 of its hotels in April but resumed full operations in
July.
- Enhanced Asset Management Efforts: The Company working together
with its third-party management companies has expanded sales
efforts to include COVID-19 specific demand related to medical,
hospital and university services and for the numerous disaster
recovery and infrastructure improvement and reconstruction projects
that create demand in our hotel markets. We continue to
aggressively pursue leisure, government, athletic and local and
regional business related to travel in our hotel markets. Since
March 2020, the Company, working with our third-party management
companies, have implemented cost elimination/cost reduction
initiatives at our hotels through a variety of measures involving
labor, services, amenities, contracts, and taxes. As a result of
these initiatives, Hotel EBITDA was positive each month from May
through the end of the year.
(in thousands)
May 2020
June 2020
July 2020
August 2020
September 2020
October 2020
November 2020
December 2020
Hotel EBITDA
$
14
$
438
$
385
$
772
$
405
$
701
$
180
$
164
CASH BURN BEFORE CAPITAL EXPENDITURES
The Company had a fourth quarter 2020 cash burn of $2.1 million
compared to $1.4 million in the third quarter:
(in thousands)
Three months ended September
30, 2020
Three months ended December
31, 2020
Hotel EBITDA
$
1,562
$
1,045
Less: recurring general and administrative
expense, excluding stock compensation expense
(1,013)
(968)
Less: unallocated hotel and property
operations expense
(57)
(61)
Adjusted Corporate EBITDA
$
492
$
16
Less: debt service costs
(1,865)
(2,108)
Cash burn
$
(1,373)
$
(2,092)
CORPORATE LOAN FACILITY
On November 19, 2020 the Company amended the credit agreement
for its $130 million revolving credit facility. The key
modifications and enhancements include:
- Loan maturity was extended to January 2, 2023
- Financial covenant compliance was suspended until September 30,
2021
- Debt yield and leverage ratio covenants were eliminated and
replaced with a borrowing base debt service coverage ratio
- The debt service and fixed charge covenants, when applicable on
September 30, 2021, were eased from 1.5X to 1.0X and ramp up to
1.5X on September 30, 2022. Importantly, beginning with the
September 30, 2021 calculations, quarterly figures are annualized
until the quarter ending June 30, 2022 which will use the trailing
12 months figures
- Borrowing availability was increased to $13.4 million
- Dividends prohibition was modified to allow common and
preferred dividends when defined financial conditions are
achieved.
BALANCE SHEET AND CAPITAL MARKETS ACTIVITY
As of December 31, 2020, the Company had cash and cash
equivalents (including restricted cash) of $7.5 million and
available revolver borrowing capacity of $11.9 million. As of
December 31, 2020, the Company had total outstanding long-term debt
of $168.3 million associated with assets held for use with a
weighted average maturity of 2.1 years and a weighted average
interest rate of 3.79%.
CAPITAL INVESTMENTS
The Company invested $0.6 million in capital improvements
throughout the portfolio in the twelve months ended December 31,
2020 to upgrade its properties and maintain brand standards.
OUTLOOK AND GUIDANCE
The Company has suspended guidance until further notice.
DIVIDENDS
On March 30, 2020, the Sixth Amendment to the Key Bank credit
facility was signed which provides that no cash dividends or
distributions may be made to common or preferred shareholders for
the remaining term of the debt. On November 19, 2020 the Company
signed the ninth amendment to the KeyBank Credit Facility that
provides the conditions that must be met before cash dividends may
be made to common and preferred shareholders.
EARNINGS CALL
The Company will not be conducting a fourth quarter earnings
conference call.
About Condor Hospitality Trust, Inc.
Condor Hospitality Trust, Inc. (NYSE American: CDOR) is a
self-administered real estate investment trust that specializes in
the investment and ownership of upper midscale and upscale,
premium-branded, select-service, extended-stay, and limited-service
hotels in the top 100 Metropolitan Statistical Areas (“MSAs”) with
a particular focus on the top 20 to 60 MSAs. The Company currently
owns 15 hotels in 8 states. Condor’s hotels are franchised by a
number of the industry’s most well-regarded brand families
including Hilton, Marriott, and InterContinental Hotels.
Forward-Looking Statement
This news release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements include all statements that are
not historical facts, and in some cases, can be identified by the
use of forward-looking terminology such as “may”, “will”, “expect”,
“intend”, “anticipate”, “estimate”, “believe”, “continue”,
“project”, “plan”, the negative version of these words or other
similar expressions. Readers are cautioned not to place undue
reliance on any such forward-looking statements.
All forward-looking statements speak only as of the date hereof
and are based on current expectations and involve a number of
assumptions, risks and uncertainties that could cause the actual
results to differ materially from such forward-looking statements.
They are not guarantees of future performance and involve risks and
uncertainties that are difficult to control or predict. Factors
which could have a material adverse effect on our operations and
future prospects include, but are not limited to, changes in
economic conditions generally and the real estate market
specifically, legislative/regulatory changes (including changes to
laws governing the taxation of real estate investment trusts),
availability of capital, risks associated with debt financing,
interest rates, competition, supply and demand for hotel rooms in
our current and proposed market areas, policies and guidelines
applicable to real estate investment trusts, risks related to
uncertainty and disruption in global economic markets as a result
of COVID-19 (commonly referred to as the coronavirus), and other
risks and uncertainties described herein, and in our filings with
the Securities and Exchange Commission (“SEC”) from time to time.
These risks and uncertainties should be considered in evaluating
any forward-looking statements.
The forward-looking statements represent Condor’s views as of
the date on which such statements were made. Condor anticipates
that subsequent events and developments may cause those views to
change. These forward-looking statements should not be relied upon
as representing Condor’s views as of any date subsequent to the
date hereof. Condor expressly disclaims a duty to provide updates
to forward-looking statements, whether as a result of new
information, future events or other occurrences.
Additional factors that may affect the Company’s business or
financial results are described in the risk factors included in the
Company’s filings with the SEC, including its Annual Report on Form
10-K for the fiscal year ended December 31, 2020, and subsequent
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
SELECTED FINANCIAL DATA:
Condor Hospitality Trust, Inc.
and Subsidiaries
Consolidated Balance
Sheets
(In thousands, except share
and per share data)
As of December 31,
2020
2019
Assets
Investment in hotel properties, net
$
265,831
$
222,063
Investment in unconsolidated joint
venture
-
4,244
Cash and cash equivalents
3,686
2,584
Restricted cash, property escrows
3,794
5,811
Accounts receivable, net
652
1,099
Prepaid expenses and other assets
1,230
1,118
Derivative assets, at fair value
-
22
Total Assets
$
275,193
$
236,941
Liabilities and
Equity
Liabilities
Accounts payable, accrued expenses, and
other liabilities
$
5,372
$
5,523
Dividends and distributions payable
762
145
Land option liability
8,497
-
Derivative liabilities, at fair value
880
366
Convertible debt, at fair value
16,875
1,080
Long-term debt, net of deferred financing
costs
166,526
134,001
Total Liabilities
198,912
141,115
Equity
Shareholders' Equity
Preferred stock, 40,000,000 shares
authorized:
6.25% Series E, 925,000 shares authorized,
$.01 par value, 925,000 shares outstanding, liquidation preference
of $10,012 and $9,395
10,050
10,050
Common stock, $.01 par value, 200,000,000
shares authorized;12,014,743 and 11,993,608 shares outstanding
120
120
Additional paid-in capital
233,332
233,189
Accumulated deficit
(167,263)
(147,582)
Total Shareholders' Equity
76,239
95,777
Noncontrolling interest in consolidated
partnership (Condor Hospitality Limited Partnership), redemption
value of $17 and $47
42
49
Total Equity
76,281
95,826
Total Liabilities and Equity
$
275,193
$
236,941
Condor Hospitality Trust, Inc.
and Subsidiaries
Consolidated Statements of
Operations
(In thousands, except per
share data)
(Unaudited)
Three months ended December
31,
Year ended December
31,
2020
2019
2020
2019
Revenue
Room rentals and other hotel services
$
8,309
$
14,306
$
35,188
$
61,052
Operating Expenses
Hotel and property operations
7,325
9,503
29,563
38,769
Depreciation and amortization
2,689
2,407
10,956
9,568
General and administrative
905
1,255
4,006
5,700
Acquisition and terminated
transactions
-
23
-
38
Strategic alternatives, net
(5,566)
224
(4,706)
2,110
Total operating expenses
5,353
13,412
39,819
56,185
Operating income (loss)
2,956
894
(4,631)
4,867
Net loss on disposition of assets
(5)
(45)
(18)
(36)
Equity in earnings (loss) of joint
venture
-
(405)
80
190
Net loss on derivatives and convertible
debt
(5,722)
(155)
(6,331)
(1,071)
Other income (expense), net
25
(24)
(65)
(104)
Interest expense
(2,328)
(1,807)
(8,481)
(7,976)
Loss before income taxes
(5,074)
(1,542)
(19,446)
(4,130)
Income tax benefit (expense)
35
(282)
375
(937)
Net loss
(5,039)
(1,824)
(19,071)
(5,067)
Loss attributable to noncontrolling
interest
2
2
7
19
Net loss attributable to controlling
interests
(5,037)
(1,822)
(19,064)
(5,048)
Dividends declared and undeclared on
preferred stock
(159)
(144)
(617)
(578)
Net loss attributable to common
shareholders
$
(5,196)
$
(1,966)
$
(19,681)
$
(5,626)
Earnings (Loss)
per Share
Total - Basic Earnings (Loss) per
Share
$
(0.38)
$
(0.17)
$
(1.59)
$
(0.48)
Total - Diluted Earnings (Loss) per
Share
$
(0.38)
$
(0.17)
$
(1.59)
$
(0.48)
Reconciliation of Non-GAAP Financial
Measures (Unaudited)
Non-GAAP financial measures are measures of our historical
financial performance that are different from measures calculated
and presented in accordance with accounting principles generally
accepted in the United States of America (“GAAP”). We report Funds
from Operations (“FFO”), Adjusted FFO (“AFFO”), Earnings Before
Interest, Taxes, Depreciation, and Amortization (“EBITDA”), EBITDA
for real estate (“EBITDAre”), Adjusted EBITDAre, and Hotel EBITDA
as non-GAAP measures that we believe are useful to investors as key
measures of our operating results and which management uses to
facilitate a periodic evaluation of our operating results relative
to those of our peers. Our non-GAAP measures should not be
considered as an alternative to U.S. GAAP net earnings as an
indication of financial performance or to U.S. GAAP cash flows from
operating activities as a measure of liquidity. Additionally, these
measures are not indicative of funds available to fund cash needs
or our ability to make cash distributions as they have not been
adjusted to consider cash requirements for capital expenditures,
property acquisitions, debt service obligations, or other
commitments.
FFO and AFFO
The following table reconciles net loss to FFO and AFFO for the
three months and year ended December 31, 2020 and 2019 (in
thousands). All amounts presented include our portion of the
results of our unconsolidated Atlanta JV.
Three months ended
Years ended
December 31,
December 31,
Reconciliation of
Net Loss to FFO and AFFO
2020
2019
2020
2019
Net loss
$
(5,039)
$
(1,824)
$
(19,071)
$
(5,067)
Depreciation and amortization expense
2,689
2,407
10,956
9,568
Depreciation and amortization expense from
JV
-
300
145
1,195
Loss on disposition of assets
5
45
18
36
Net loss on disposition of assets from
JV
-
-
-
2
FFO
(2,345)
928
(7,952)
5,734
Dividends declared and undeclared on
preferred stock
(159)
(144)
(617)
(578)
FFO attributable to common shares and
common units
(2,504)
784
(8,569)
5,156
Net loss on derivatives and convertible
debt
5,722
155
6,331
1,071
Net loss on derivatives from JV
-
-
-
1
Acquisitions and terminated transactions
expense
-
23
-
38
Strategic alternatives expense, net
(5,566)
224
(4,706)
2,110
Loss on extinguishment of debt from JV
-
-
-
138
Stock-based compensation expense
(63)
125
173
1,026
Amortization of deferred financing
fees
381
286
1,210
1,267
Amortization of deferred financing fees
from JV
-
210
93
444
AFFO attributable to common shares and
common units
$
(2,030)
$
1,807
$
(5,468)
$
11,251
FFO attributable to common shares and
partnership units - Basic
$
(2,504)
$
784
$
(8,569)
$
5,156
Convertible note interest and fair value
adjustments
-
(103)
-
-
FFO attributable to common shares and
partnership units - Diluted
$
(2,504)
$
681
$
(8,569)
$
5,156
FFO per common share and partnership
unit - Basic
$
(0.21)
$
0.07
$
(0.72)
$
0.43
FFO per common share and partnership
unit - Diluted
$
(0.21)
$
0.06
$
(0.72)
$
0.43
Weighted average common shares and
partnership units - Basic FFO
11,986,930
11,935,689
11,971,197
11,910,443
Weighted average common shares and
partnership units - Diluted FFO
11,986,930
12,035,028
11,971,197
11,925,587
AFFO attributable to common shares and
partnership units - Basic
$
(2,030)
$
1,807
$
(5,468)
$
11,251
Convertible note interest
-
-
-
63
Preferred dividends at stated rates
-
-
-
578
AFFO attributable to common shares and
partnership units - Diluted
$
(2,030)
$
1,807
$
(5,468)
$
11,892
AFFO per common share and partnership
unit - Basic
$
(0.17)
$
0.15
$
(0.46)
$
0.94
AFFO per common share and partnership
unit - Diluted
$
(0.17)
$
0.15
$
(0.46)
$
0.94
Weighted average common shares and
partnership units - Basic AFFO
11,986,930
11,935,689
11,971,197
11,910,443
Weighted average common shares and
partnership units - Diluted AFFO
11,986,930
11,937,759
11,971,197
12,690,967
We calculate FFO in accordance with the standards established by
the National Association of Real Estate Investment Trusts
(“NAREIT”), which defines FFO as net earnings or loss computed in
accordance with GAAP, excluding gains or losses from sales of real
estate assets, impairment, and the depreciation and amortization of
real estate assets. FFO is calculated both for the Company in total
and as FFO attributable to common shares and common units, which is
FFO reduced by preferred stock dividends. AFFO is FFO attributable
to common shares and common units adjusted to exclude items we do
not believe are representative of the results from our core
operations, including non-cash gains or losses on derivatives and
convertible debt, stock-based compensation expense, amortization of
certain fees, losses on debt extinguishment, and in-kind dividends
above stated rates, and cash charges for acquisition and equity
transaction and strategic alternatives costs. All REITs do not
calculate FFO and AFFO in the same manner; therefore, our
calculation may not be the same as the calculation of FFO and AFFO
for similar REITs.
We consider FFO to be a useful additional measure of performance
for an equity REIT because it facilitates an understanding of the
operating performance of our properties without giving effect to
real estate depreciation and amortization, which assumes that the
value of real estate assets diminishes predictably over time. Since
real estate values have historically risen or fallen with market
conditions, we believe that FFO provides a meaningful indication of
our performance. We believe that AFFO provides useful supplemental
information to investors regarding our ongoing operating
performance that, when considered with net income and FFO, is
beneficial to an investor’s understanding of our operating
performance. We present FFO and AFFO per common share and common
unit because our common units are redeemable for common shares. We
believe it is meaningful for the investor to understand FFO and
AFFO applicable to common shares and common units.
EBITDA, EBITDAre, Adjusted EBITDAre, Hotel
EBITDA and Hotel EBITDA Proforma
The following table reconciles net loss to EBITDA, EBITDAre,
Adjusted EBITDAre, and Hotel EBITDA for the three months and year
ended December 31, 2020 and 2019 (in thousands). All amounts
presented our portion of the results of our unconsolidated Atlanta
JV.
Three months ended
Year ended
December 31,
December 31,
Reconciliation of
Net loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel
EBITDA
2020
2019
2020
2019
Net loss
$
(5,039)
$
(1,824)
$
(19,071)
$
(5,067)
Interest expense
2,328
1,807
8,481
7,976
Interest expense from JV
-
495
225
2,140
Loss on extinguishment of debt from JV
-
-
-
138
Income tax expense (benefit)
(35)
282
(375)
937
Depreciation and amortization expense
2,689
2,407
10,956
9,568
Depreciation and amortization expense from
JV
-
300
145
1,195
EBITDA
(57)
3,467
361
16,887
Net loss on disposition of assets
5
45
18
36
Net loss on disposition of assets from
JV
-
-
-
2
EBITDAre
(52)
3,512
379
16,925
Net loss on derivatives and convertible
debt
5,722
155
6,331
1,071
Net loss on derivative from JV
-
-
-
1
Stock-based compensation and LTIP
expense
(63)
125
173
1,026
Acquisition and terminated transactions
expense
-
23
-
38
Strategic alternatives, net
(5,566)
224
(4,706)
2,110
Adjusted EBITDAre
41
4,039
2,177
21,171
General and administrative expense,
excluding stock compensation and LTIP expense
968
1,130
3,833
4,674
Other (income) expense, net
(25)
24
65
104
Unallocated hotel and property operations
expense
61
74
339
227
Hotel EBITDA
$
1,045
$
5,267
$
6,414
$
26,176
Revenue
$
8,309
$
14,306
$
35,188
$
61,052
JV revenue
-
2,041
1,218
10,133
Total Company and JV revenue
$
8,309
$
16,347
$
36,406
$
71,185
Hotel EBITDA as a percentage of
revenue
12.6%
32.2%
17.6%
36.8%
Reconciliation of
Hotel EBITDA to Hotel EBITDA Proforma
Three months ended December 31
2020,
Hotel EBITDA
$
1,045
Less: Proforma Property Exclusions
350
Hotel EBITDA Proforma*
$
1,395
Total Company and JV revenue
$
8,309
Less: Proforma Property Exclusions
(1,952)
Hotel Revenue Proforma*
$
6,357
Proforma Margin
21.9%
*Proforma amounts do not include results for full service food
and beverage properties, Atlanta Aloft, Leawood Aloft, and College
Park Hotel Indigo
We calculate EBITDA, EBITDAre, and Adjusted EBITDAre by adding
back to net earnings or loss certain non-operating expenses and
certain non-cash charges which are based on historical cost
accounting that we believe may be of limited significance in
evaluating current performance. We believe these adjustments can
help eliminate the accounting effects of depreciation and
amortization and financing decisions and facilitate comparisons of
core operating profitability between periods. In calculating
EBITDA, we add back to net earnings or loss interest expense, loss
on debt extinguishment, income tax expense, and depreciation and
amortization expense. NAREIT adopted EBITDAre in order to promote
an industry-wide measure of REIT operating performance. We adjust
EBITDA by adding back net gain/loss on disposition of assets and
impairment charges to calculate EBITDAre. To calculate Adjusted
EBITDAre, we adjust EBITDAre to add back acquisition and terminated
transactions expense and equity transactions and strategic
alternatives expense, which are cash charges. We also add back
stock –based compensation expense and gain/loss on derivatives and
convertible debt, which are non-cash charges. EBITDA, EBITDAre, and
Adjusted EBITDAre, as presented, may not be comparable to similarly
titled measures of other companies.
We believe EBITDA, EBITDAre, and Adjusted EBITDAre to be useful
additional measures of our operating performance, excluding the
impact of our capital structure (primarily interest expense), our
asset base (primarily depreciation and amortization expense), and
other items we do not believe are representative of the results
from our core operations.
The Company further excludes general and administrative
expenses, other non-operating income or expense, and certain hotel
and property operations expenses that are not allocated to
individual properties in assessing hotel performance (primarily
certain general liability and other insurance costs, land lease
costs, and office and banking fees) from Adjusted EBITDAre to
calculate Hotel EBITDA. Hotel EBITDA, as presented, may not be
comparable to similarly titled measures of other companies.
Hotel EBITDA is intended to isolate property level operational
performance over which the Company’s hotel operators have direct
control. We believe Hotel EBITDA is helpful to investors as it
better communicates the comparability of our hotels’ operating
results for all of the Company’s hotel properties and is used by
management to measure the performance of the Company’s hotels and
the effectiveness of the operators of the hotels.
Same-Store Revenue and Hotel EBITDA
The following tables present our same-store revenue, Hotel
EBITDA, and Hotel EBITDA margin broken down by property type for
the three and year ended December 31, 2020 and 2019 (in thousands)
and reconcile these same-store measures to total revenue and Hotel
EBITDA as presented above. Same-store results include all our
hotels owned at December 31, 2020. Results for the hotels for
periods prior to our ownership were provided to us by prior owners
and have not been adjusted by us or audited or reviewed by our
independent auditors. All amounts presented include our portion of
the results of our unconsolidated Atlanta Aloft JV. Results for
periods prior to the Company’s ownership have not been included in
the Company’s actual consolidated financial statements and are
included here only for comparison purposes.
Revenue - Reconciliation of
Actual to Same-Store
Three months ended December
31,
Year ended December
31,
2020
2019
2020
2019
Condor and JV Revenue - Actual
$
8,309
$
16,347
$
36,406
$
71,185
Revenue earned on properties disposed of
prior to December 31, 2020 during the period of ownership
-
-
(272)
Revenue earned on properties owned at
December 31, 2020 prior to ownership
-
510
304
2,533
Total Revenue - Same-Store
$
8,309
$
16,857
$
36,710
$
73,446
Hotel EBITDA - Reconciliation
of Actual to Same-Store
Three months ended December
31,
Year ended December
31,
2020
2019
2020
2019
Condor and JV Hotel EBITDA - Actual
$
1,045
$
5,267
$
6,414
$
26,176
Hotel EBITDA earned on properties disposed
of prior to December 31, 2020 during the period of ownership
-
-
-
(63)
Hotel EBITDA earned on properties owned at
December 31, 2020 prior to ownership
-
97
111
917
Total Hotel EBITDA - Same-Store
$
1,045
$
5,364
$
6,525
$
27,030
Hotel EBITDA Margin by
Property Type
Three months ended December
31,
Year ended December
31,
2020
2019
2020
2019
Total Hotel EBITDA Margin - Same-Store
12.6%
31.8%
17.8%
36.8%
The following tables present our monthly results presented
reconciling net income (loss) to EBITDA, EBITDAre, Adjusted
EBITDAre, and Hotel EBITDA, as well as Hotel EBITDA Same-Store and
Hotel EBITDA Same-Store margins.
Reconciliation of
Net loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel
EBITDA
Month ending Oct 31,
2019
Month ending Nov 30,
2019
Month ending Dec 31,
2019
Month ending May 31,
2020
Month ending June 30,
2020
Month ending July 31,
2020
Month ending Aug 31,
2020
Month ending Sept 30,
2020
Month ending Oct 31,
2020
Month ending Nov 30,
2020
Month ending Dec 31,
2020
Net income (loss)
$
212
$
(380)
$
(1,656)
$
(1,999)
$
(1,571)
$
(1,670)
$
(1,816)
$
(1,321)
$
4,365
$
(1,826)
$
(7,578)
Interest expense
631
593
583
698
676
707
708
688
743
794
791
Interest expense from JV
165
165
165
-
-
-
-
-
-
-
-
Income tax expense (benefit)
5
5
272
9
(79)
9
9
9
9
9
(53)
Depreciation and amortization expense
801
803
803
926
926
926
926
927
903
904
882
Depreciation and amortization expense from
JV
100
100
100
-
-
-
-
-
-
-
-
EBITDA
$
1,914
$
1,286
$
267
$
(366)
$
(48)
$
(28)
$
(173)
$
303
$
6,020
$
(119)
$
(5,958)
Net loss on disposition of assets
34
-
11
-
-
-
1
1
1
2
2
EBITDAre
$
1,948
$
1,286
$
278
$
(366)
$
(48)
$
(28)
$
(172)
$
304
$
6,021
$
(117)
$
(5,956)
Net loss (gain) on derivatives and
convertible debt
-
-
155
-
(18)
(3)
(3)
(126)
(3)
(3)
5,728
Stock-based compensation expense
34
32
59
18
46
10
23
37
(123)
17
43
Acquisition and terminated transactions
expense
-
-
224
-
-
-
-
-
-
-
-
Strategic alternatives, net
107
51
(135)
17
52
40
494
602
(5,577)
-
11
Adjusted EBITDAre
$
2,089
$
1,369
$
581
$
(331)
$
32
$
19
$
342
$
817
$
318
$
(103)
$
(174)
General and administrative expense,
excluding stock compensation expense
336
394
400
313
276
337
405
81
324
318
326
Other expense (income), net
8
7
9
(2)
58
2
1
(499)
34
(61)
2
Unallocated hotel and property operations
expense
31
24
19
34
72
27
24
6
25
26
10
Hotel EBITDA
$
2,464
$
1,794
$
1,009
$
14
$
438
$
385
$
772
$
405
$
701
$
180
$
164
Hotel EBITDA earned on properties owned at
December 31, 2020 prior to ownership
69
57
(29)
-
-
-
-
-
-
-
-
Hotel EBITDA - Same-Store
$
2,533
$
1,851
$
980
$
14
$
438
$
385
$
772
$
405
$
701
$
180
$
164
Revenue
$
5,505
$
4,704
$
4,097
$
1,706
$
2,280
$
2,782
$
3,058
$
3,001
$
3,215
$
2,560
$
2,534
JV Revenue
807
728
506
-
-
-
-
-
-
-
-
Condor and JV Revenue
6,312
5,432
4,603
1,706
2,280
2,782
3,058
3,001
3,215
2,560
2,534
Revenue earned on properties owned at
December 31, 2020 prior to ownership
202
182
126
-
-
-
-
-
-
-
-
Total Revenue - Same-Store
$
6,514
$
5,614
$
4,729
$
1,706
$
2,280
$
2,782
$
3,058
$
3,001
$
3,215
$
2,560
$
2,534
Hotel EBITDA - Same-Store as a percentage
of revenue
38.9%
33.0%
20.7%
0.8%
19.2%
13.8%
25.2%
13.5%
21.8%
7.0%
6.5%
Condor Hospitality Trust, Inc. Operating
Statistics
The following tables present our same-store occupancy, ADR, and
RevPAR for all our hotels owned at December 31, 2020. Same-store
occupancy, ADR, and RevPAR reflect the performance of hotels during
the entire period, regardless of our ownership during the period
presented. Results for the hotels for periods prior to our
ownership were provided to us by prior owners and have not been
adjusted by us or audited or reviewed by our independent auditors.
The performance metrics for the hotel acquired through our Atlanta
JV, also presented below, reflect 100% of the operating results of
the property, including our interest and the interest of our
partner.
Three months ended December
31,
2020
2019
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
Growth
Solomons Hilton Garden Inn
34.99%
$
96.92
$
33.91
68.55%
$
114.40
$
78.43
-56.8%
Atlanta Hotel Indigo
39.63%
$
87.31
$
34.60
70.61%
$
98.12
$
69.28
-50.1%
Jacksonville Courtyard by Marriott
53.14%
$
76.57
$
40.69
78.77%
$
106.88
$
84.19
-51.7%
San Antonio SpringHill Suites
47.37%
$
74.73
$
35.40
72.71%
$
125.19
$
91.03
-61.1%
Leawood Aloft
38.44%
$
80.69
$
31.02
72.39%
$
124.85
$
90.37
-65.7%
Lexington Home2 Suites
60.96%
$
85.79
$
52.30
71.19%
$
117.42
$
83.59
-37.4%
Round Rock Home2 Suites
61.38%
$
70.44
$
43.24
76.30%
$
109.55
$
83.59
-48.3%
Tallahassee Home2 Suites
59.16%
$
99.31
$
58.75
72.51%
$
122.92
$
89.13
-34.1%
South Haven Home2 Suites
86.94%
$
86.83
$
75.48
80.60%
$
113.16
$
91.21
-17.2%
Lake Mary Hampton Inn & Suites
53.42%
$
97.40
$
52.03
78.60%
$
132.24
$
103.93
-49.9%
Austin Residence Inn
77.26%
$
79.92
$
61.74
80.09%
$
132.42
$
106.06
-41.8%
El Paso Fairfield Inn
63.34%
$
77.38
$
49.01
87.47%
$
106.42
$
93.09
-47.3%
Austin TownePlace Suites
47.75%
$
72.07
$
34.41
75.69%
$
113.57
$
85.97
-60.0%
Summerville Home2 Suites
54.35%
$
97.62
$
53.05
88.58%
$
120.18
$
106.45
-50.2%
Atlanta Aloft JV
38.64%
$
89.57
$
34.61
65.83%
$
137.16
$
90.30
-61.7%
Total Same-Store Portfolio
52.70%
$
84.83
$
44.71
75.07%
$
119.45
$
89.68
-50.1%
Year ended December
31,
2020
2019
Occupancy
ADR
RevPAR
Occupancy
ADR
RevPAR
Growth
Solomons Hilton Garden Inn
45.59%
$
109.88
$
50.10
75.63%
$
120.98
$
91.49
-45.2%
Atlanta Hotel Indigo
49.85%
$
92.84
$
46.28
74.77%
$
105.43
$
78.83
-41.3%
Jacksonville Courtyard by Marriott
52.20%
$
95.43
$
49.81
77.12%
$
117.51
$
90.62
-45.0%
San Antonio SpringHill Suites
42.05%
$
95.40
$
40.12
78.37%
$
129.33
$
101.36
-60.4%
Leawood Aloft
41.88%
$
97.15
$
40.69
70.22%
$
130.45
$
91.60
-55.6%
Lexington Home2 Suites
57.18%
$
91.27
$
52.18
78.47%
$
116.46
$
91.39
-42.9%
Round Rock Home2 Suites
52.79%
$
81.61
$
43.09
82.17%
$
115.04
$
94.53
-54.4%
Tallahassee Home2 Suites
60.68%
$
109.49
$
66.44
84.96%
$
124.67
$
105.91
-37.3%
South Haven Home2 Suites
73.32%
$
94.63
$
69.39
88.16%
$
117.76
$
103.82
-33.2%
Lake Mary Hampton Inn & Suites
46.31%
$
117.18
$
54.26
78.96%
$
137.14
$
108.29
-49.9%
Austin Residence Inn
67.58%
$
97.36
$
65.80
82.20%
$
135.13
$
111.08
-40.8%
El Paso Fairfield Inn
52.66%
$
91.26
$
48.06
86.38%
$
105.88
$
91.45
-47.5%
Austin TownePlace Suites
46.96%
$
86.51
$
40.63
73.21%
$
112.49
$
82.35
-50.7%
Summerville Home2 Suites
60.62%
$
102.16
$
61.93
84.65%
$
127.95
$
108.30
-42.8%
Atlanta Aloft JV
39.43%
$
113.22
$
44.65
76.21%
$
151.09
$
115.15
-61.2%
Total Same-Store Portfolio
51.49%
$
99.00
$
50.98
78.88%
$
125.09
$
98.68
-48.3%
Condor Hospitality Trust, Inc.
Property List | As of December 31,
2020
New Investment Platform | Acquired from
January 1, 2012 -December 31, 2020
Hotel
Name
City
State
Rooms
Acquisition Date
Purchase
Price (in millions)
1
Hilton Garden Inn
Dowell/Solomons
MD
100
05/25/2012
$11.5
2
SpringHill Suites
San Antonio
TX
116
10/01/2015
$17.5
3
Courtyard by Marriott
Jacksonville
FL
120
10/02/2015
$14.0
4
Hotel Indigo
College Park
GA
142
10/02/2015
$11.0
5
Aloft1
Atlanta
GA
254
08/22/2016
$43.6
6
Aloft
Leawood
KS
156
12/14/2016
$22.5
7
Home2 Suites
Lexington
KY
103
03/24/2017
$16.5
8
Home2 Suites
Round Rock
TX
91
03/24/2017
$16.8
9
Home2 Suites
Tallahassee
FL
132
03/24/2017
$21.5
10
Home2 Suites
Southaven
MS
105
04/14/2017
$19.0
11
Hampton Inn & Suites
Lake Mary
FL
130
06/19/2017
$19.3
12
Fairfield Inn & Suites
El Paso
TX
124
08/31/2017
$16.4
13
Residence Inn
Austin
TX
120
08/31/2017
$22.4
14
TownePlace Suites
Austin
TX
122
01/18/2018
$19.8
15
Home2 Suites
Summerville
SC
93
02/21/2018
$16.3
Total Portfolio | December 31,
2020
1,908
$288.1
1 |Represents the purchase statistics from
the purchase of this hotel by the originally 80% owned
unconsolidated joint venture. The Company purchased the remaining
20% interest in the joint venture from our joint venture partner on
February 14, 2020 for $7.3 million.
55 Dispositions | For Period January 1,
2015 - December 31, 2020
Hotel
Name
City
State
Rooms
Disposition
Date
Gross
Proceeds (in millions)
1
Super 8
West Plains
MO
49
01/15/2015
$1.5
2
Super 8
Green Bay
WI
83
01/29/2015
$2.2
3
Super 8
Columbus
GA
74
03/16/2015
$0.9
4
Sleep Inn & Suites
Omaha
NE
90
03/19/2015
$2.9
5
Savannah Suites
Chamblee
GA
120
04/01/2015
$4.4
6
Savannah Suites
Augusta
GA
172
04/01/2015
$3.4
7
Super 8
Batesville
AR
49
04/30/2015
$1.5
8
Days Inn
Ashland
KY
63
07/01/2015
$2.2
9
Comfort Inn
Alexandria
VA
150
07/13/2015
$12.0
10
Days Inn
Alexandria
VA
200
07/13/2015
$6.5
11
Super 8
Manhattan
KS
85
08/28/2015
$3.2
12
Quality Inn
Sheboygan
WI
59
10/06/2015
$2.3
13
Super 8
Hays
KS
76
10/14/2015
$1.9
14
Days Inn
Glasgow
KY
58
10/16/2015
$1.8
15
Super 8
Tomah
WI
65
10/21/2015
$1.4
16
Rodeway Inn
Fayetteville
NC
120
11/03/2015
$2.6
17
Savannah Suites
Savannah
GA
160
12/22/2015
$4.0
Total 2015
1,673
$54.7
18
Super 8
Kirksville
MO
61
01/04/2016
$1.5
19
Super 8
Lincoln
NE
133
01/07/2016
$2.8
20
Savannah Suites
Greenville
SC
170
01/08/2016
$2.7
21
Super 8
Portage
WI
61
03/30/2016
$2.4
22
Super 8
O'Neill
NE
72
04/25/2016
$1.7
23
Quality Inn
Culpeper
VA
49
05/10/2016
$2.2
24
Super 8
Storm Lake
IA
59
05/19/2016
$2.8
25
Clarion Inn
Cleveland
TN
59
05/24/2016
$2.2
26
Super 8
Coralville
IA
84
05/26/2016
$3.4
27
Super 8
Keokuk
IA
61
05/27/2016
$2.2
28
Comfort Inn
Chambersburg
PA
63
06/06/2016
$2.1
29
Super 8
Pittsburg
KS
64
08/08/2016
$1.6
30
Super 8
Mount Pleasant
IA
54
09/09/2016
$1.9
31
Quality Inn
Danville
KY
63
09/19/2016
$2.3
32
Super 8
Menomonie
WI
81
09/26/2016
$3.0
33
Comfort Inn
Glasgow
KY
60
10/14/2016
$2.4
34
Days Inn
Sioux Falls
SD
86
11/04/2016
$2.1
35
Comfort Inn
Shelby
NC
76
11/07/2016
$4.1
36
Comfort Inn
Rocky Mount
VA
61
11/17/2016
$2.2
37
Days Inn
Farmville
VA
59
11/17/2016
$2.4
38
Comfort Suites
Marion
IN
62
11/18/2016
$3.0
39
Comfort Inn
Farmville
VA
50
11/30/2016
$2.6
40
Quality Inn
Princeton
WV
50
12/05/2016
$2.1
41
Super 8
Burlington
IA
62
12/21/2016
$2.8
42
Savannah Suites
Atlanta
GA
164
12/22/2016
$2.9
Total 2016
1,864
$61.4
43
Comfort Inn
New Castle
PA
79
03/27/2017
$2.5
44
Super 8
Billings
MT
106
03/28/2017
$4.2
45
Comfort Inn
Harlan
KY
61
04/03/2017
$1.9
46
Comfort Suites
Lafayette
IN
62
04/18/2017
$3.9
47
Key West Inn
Key Largo
FL
40
05/17/2017
$7.6
48
Quality Inn
Morgantown
WV
81
08/30/2017
$2.6
49
Days Inn
Bossier City
LA
176
09/13/2017
$1.4
50
Comfort Inn & Suites
Warsaw
IN
71
12/20/2017
$5.0
Total 2017
676
$29.1
51
Supertel Inn/Conference Center
Creston
IA
41
01/25/2018
$2.1
52
Comfort Suites
South Bend
IN
135
03/15/2018
$6.1
53
Comfort Suites
Ft. Wayne
IN
127
05/30/2018
$7.1
54
Super 8
Creston
IA
121
08/30/2018
$5.1
Total 2018
424
$20.4
55
Quality Inn
Solomons
MD
59
03/22/2019
$4.3
Total 2019
59
$4.3
Total Dispositions
4,696
$169.9
Acquisitions | For Period January 1,
2015 - December 31, 2020
Hotel
Name
City
State
Rooms
Acquisition Date
Purchase
Price (in millions)
1
SpringHill Suites
San Antonio
TX
116
10/01/2015
$17.5
2
Courtyard by Marriott
Jacksonville
FL
120
10/02/2015
$14.0
3
Hotel Indigo
College Park
GA
142
10/02/2015
$11.0
4
Aloft1
Atlanta
GA
254
08/22/2016
$43.6
5
Aloft
Leawood
KS
156
12/14/2016
$22.5
6
Home2 Suites
Lexington
KY
103
03/24/2017
$16.5
7
Home2 Suites
Round Rock
TX
91
03/24/2017
$16.8
8
Home2 Suites
Tallahassee
FL
132
03/24/2017
$21.5
9
Home2 Suites
Southaven
MS
105
04/14/2017
$19.0
10
Hampton Inn & Suites
Lake Mary
FL
130
06/19/2017
$19.3
11
Fairfield Inn & Suites
El Paso
TX
124
08/31/2017
$16.4
12
Residence Inn
Austin
TX
120
08/31/2017
$22.4
13
TownePlace Suites
Austin
TX
122
01/18/2018
$19.8
14
Home2 Suites
Summerville
SC
93
02/21/2018
$16.3
Total Acquisitions
1,808
$276.6
1 | Represents the purchase statistics
from the purchase of this hotel by the originally 80% owned
unconsolidated joint venture. The Company purchased the remaining
20% interest in the joint venture from our joint venture partner on
February 14, 2020 for $7.3 million.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210318005992/en/
Jill Burger Interim Chief Financial Officer and Chief Accounting
Officer jburger@trustcondor.com (402) 316-1012
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