DALLAS, Feb. 27, 2014
/PRNewswire/ -- Ashford Hospitality Prime, Inc. (NYSE: AHP)
("Ashford Prime" or the "Company") today reported the following
results and performance measures for the fourth quarter ended
December 31, 2013. On
November 19, 2013, the Company
completed its spin-off from Ashford Hospitality Trust, Inc. (NYSE:
AHT) ("Ashford Trust"), but the Company has presented its financial
statements in accordance with GAAP, which requires that historical
carve-out financial statements be presented. Accordingly, the
Company's results for the period may not be representative of
results in future periods. In particular, the general &
administrative expenses that are shown in the historical carve-out
financial statements do not reflect the expected general &
administrative costs of the Company, but rather reflect an
allocation of the actual general & administrative costs of
Ashford Trust. The Company will have general &
administrative costs that it incurs as well as reimbursable costs
that Ashford Trust incurs on its behalf. The Company will
also pay a base management fee to Ashford Trust equal to 0.70%
times its total enterprise value. The performance
measurements for Occupancy, Average Daily Rate (ADR), Revenue Per
Available Room (RevPAR), and Hotel Operating Profit (or Hotel
EBITDA) are pro forma. Unless otherwise stated, all reported
results compare the fourth quarter ended December 31, 2013, with the fourth quarter ended
December 31, 2012 (see discussion
below). The reconciliation of non-GAAP financial measures is
included in the financial tables accompanying this press
release.
FINANCIAL AND OPERATING HIGHLIGHTS
- During the quarter, the Company completed its spin-off from
Ashford Trust and began trading under the ticker symbol "AHP" on
November 20, 2013, on the New York
Stock Exchange
- RevPAR for Ashford Prime hotels not under renovation increased
10.1% during the quarter
- RevPAR for all Ashford Prime hotels increased 6.9% during the
quarter
- Due to Marriott's change to calendar reporting in 2013, the
prior year fourth quarter included twenty more days than the fourth
quarter 2013 which significantly impacted year over year
comparisons; 6 of the initial 8 hotels are managed by Marriott
- Adjusted EBITDA was $10.7 million
for the quarter compared to $14.2
million in the prior year quarter
- Net loss attributable to common shareholders for the Company
was $11.4 million, or $0.71 per diluted share, compared with net loss
attributable to common shareholders of $1.0
million, or $0.06 per diluted
share, in the prior-year quarter
- Adjusted funds from operations (AFFO) for the Company was
$0.09 per diluted share for the
quarter as compared with $0.23 from
the prior-year quarter
- In connection with the spin-off, Ashford Prime entered into a
new $150 million secured credit
facility, with the opportunity to expand the borrowing capacity's
aggregate size up to $300
million
- On February 24th, Ashford Prime
announced that it closed on the acquisition of the 415-room Sofitel
Chicago Water Tower for a total consideration of $153 million in cash ($369,000 per key) and financed it with an
$80 million mortgage
- The Company expects to complete the acquisition of the 142-room
Pier House Resort from Ashford Trust on February 28, 2014 for a total consideration of
$92.7 million ($653,000 per key)
- At the end of the fourth quarter 2013, the Company had total
net working capital of $145
million
- Subsequent to quarter end, the Company completed its
underwritten public offering of 8,000,000 shares of common stock at
a price of $16.50 per share; with the
underwriters fully exercising their option to purchase an
additional 1,200,000 shares for total gross proceeds of
$151.8 million
CAPITAL EXPENDITURES
- Capex invested in the quarter for the Ashford Prime Portfolio
was $7.1 million
- For the full-year 2013, capex invested in the Ashford Prime
Portfolio was $24.5 million
CAPITAL STRUCTURE
At December 31, 2013, the Company
had total assets of $962 million in
continuing operations. As of December
31, 2013, the Company had $622
million of mortgage debt in continuing operations of which
$49.5 million related to our joint
venture partner's share of debt on the Capital Hilton and Hilton La
Jolla Torrey Pines. Ashford Prime's total combined debt had a
blended average interest rate of 5.3%, with a weighted average debt
maturity of 3.6 years.
On November 19, 2013 Ashford Prime
completed its spin-off from Ashford Trust and began trading as an
independent public company on the New York Stock Exchange ("NYSE")
under the ticker symbol "AHP" on November
20, 2013. Ashford Trust completed the spin-off by
distributing a pro-rata taxable dividend of Ashford Prime common
stock to Ashford Trust stockholders of record as of the close of
business of the NYSE on November 8,
2013 (the "Record Date"). The distribution was based
on a distribution ratio of one share of Ashford Prime common stock
for every five shares of Ashford Trust common stock held by such
stockholder on the Record Date. Following the distribution,
there were approximately 24.9 million shares of Ashford Prime
common stock and partnership units outstanding. This was
comprised of approximately 16.1 million shares of Ashford Prime
common stock and 8.8 million partnership units, which includes the
partnership units issued to Ashford Trust reflecting its 20%
ownership in Ashford Prime's operating partnership.
In connection with the spin-off, Ashford Prime entered into a
new $150 million secured credit
facility with Bank of America, N.A. acting as sole administrative
agent. Other participating lenders include Credit Agricole,
Credit Suisse, Deutsche Bank, KeyBank, and Morgan Stanley.
The new credit facility provides for a three-year term with two,
one-year extension options and bears interest at a range of 2.25% -
3.75% over LIBOR, depending on the leverage level of the
Company. The new credit facility includes the opportunity to
expand the borrowing capacity by up to $150
million to an aggregate size of $300
million.
Ashford Prime is externally advised by Ashford Hospitality
Advisors, a subsidiary of Ashford Trust. The Company's
external advisory agreement differentiates it from other external
advisory agreements in the REIT industry. The agreement's
unique structure is designed to reduce the G&A expense burden
by avoiding duplication, and provides for management incentives
only in the event of outperformance versus a defined peer group;
enabling investors to benefit from the management team's extensive
experience and tenure together. Prior to the spin-off,
Ashford Trust and Ashford Prime entered into a separation agreement
and various other agreements related to the spin-off, as described
in the information statement. Please visit the Company's
website at www.ahpreit.com under the Investors section for
additional information regarding the spin-off, including links to
filings with the U.S. Securities and Exchange Commission (the
"SEC").
Subsequent to the end of the fourth quarter, on January 29, 2014, the Company closed its
previously announced underwritten public offering of 8,000,000
shares of common stock. On February 4,
2014, the Company announced the full exercise of the
underwriters' option to purchase 1,200,000 additional shares of
Ashford Prime's common stock. Including the shares of common
stock sold in connection with the underwriters' option, a total of
9,200,000 shares of common stock were sold at a public offering
price of $16.50 per share.
Total gross proceeds to the Company from the offering, before
deducting the underwriting discount and other estimated offering
costs, were $151.8 million.
Ashford Prime intends to use the net proceeds of the offering to
acquire the Sofitel Chicago Water Tower and the Pier House Resort
in Key West, Florida, and for
general corporate purposes and working capital, including the
acquisition of additional properties in the ordinary course of
business. BofA Merrill Lynch and Morgan Stanley acted as the
joint book-running managers for the offering. KeyBanc Capital
Markets, Credit Agricole CIB, Credit Suisse, Baird, and Stifel acted as senior
co-managers. FBR, JMP Securities, MLV& Co., and
Craig-Hallum Capital Group acted as co-managers.
On February 24, 2014, Ashford
Prime announced that it had closed on the acquisition of the
415-room Sofitel Chicago Water Tower for a total consideration of
$153 million in cash ($369,000 per key). Located in the desirable
Gold Coast submarket of
Chicago, Illinois, the 415-room,
four-star hotel features over 10,000 square feet of meeting
space. The property will continue to be managed by Sofitel
(Accor SA). The Company financed the property with
$80.0 million of non-recourse
mortgage debt priced at L + 2.30% with a 5-year term, including
extension options. The purchase price of $153.0 million represents a trailing 12-month cap
rate of 6.0% on net operating income and an EBITDA multiple of
14.1x. On a forward 12-month basis, the purchase price
represents a cap rate of 6.8% on net operating income and an EBITDA
multiple of 12.7x. In 2013, the Sofitel Chicago Water Tower
achieved RevPAR of $182, with 82%
occupancy and an Average Daily Rate of $222.
The Company expects to close its acquisition of the Pier House
Resort from Ashford Trust on February 28,
2014 for total consideration of $92.7
million ($653,000/key).
The Company will assume the $69
million mortgage on the property and will pay the balance of
the purchase price with cash on hand.
PORTFOLIO REVPAR
As of December 31, 2013, the
Ashford Prime Portfolio consisted of direct hotel investments with
8 properties classified in continuing operations. During the
fourth quarter of 2013, 6 of the Ashford Prime Portfolio hotels
included in continuing operations were not under renovation.
The Company believes reporting its operating metrics for the
Ashford Prime Portfolio hotels in continuing operations on a pro
forma total basis (all 8 hotels) and pro forma not under renovation
basis (6 hotels) is a measure that reflects a meaningful and
focused comparison of the operating results in its portfolio.
Details of each category are provided in the tables attached to
this release.
- Pro forma RevPAR increased 6.9% to $134.12 for all hotels in the Ashford Prime
Portfolio on a 5.5% increase in ADR and a 93 basis point increase
in occupancy
- Pro forma RevPAR increased 10.1% to $143.48 for hotels not under renovation in the
Ashford Prime Portfolio 4.9% increase in ADR and a 354 basis point
increase in occupancy
HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
The Company believes year-over-year Hotel EBITDA and Hotel
EBITDA Margin comparisons are more meaningful to gauge the
performance of the Company's hotels than sequential
quarter-over-quarter comparisons. Given the substantial
seasonality in the Company's portfolio and its active capital
recycling, to help investors better understand this seasonality,
the Company provides quarterly detail on its Hotel EBITDA and Hotel
EBITDA Margin for the current and certain prior-year periods based
upon the number of hotels in the Ashford Prime Portfolio as of the
end of the current period. As the Company's portfolio mix
changes from time to time so will the seasonality for Pro forma
Hotel EBITDA and Pro forma Hotel EBITDA margin. The details
of the quarterly calculations for the previous four quarters for
the 8 Ashford Prime Portfolio hotels included in continuing
operations are provided in the table attached to this release.
COMMON STOCK DIVIDEND
On December 16, 2013, the Company
announced that its Board of Directors had declared a quarterly cash
dividend of $0.05 per diluted share
for the Company's common stock for the fourth quarter ending
December 31, 2013, payable on
January 15, 2014, to shareholders of
record as of December 31, 2013.
The Board also approved the Company's dividend policy for
2014. The Company expects to pay a quarterly cash dividend of
$0.05 per share for 2014, or
$0.20 per share on an annualized
basis. The Company believes a conservative approach is
appropriate given the recent spin-off from Ashford Hospitality
Trust, and the Board will continue to review its dividend policy on
a quarter-to-quarter basis. The adoption of a dividend policy
does not commit the Board of Directors to declare future dividends
or the amount thereof.
"We are pleased to report our fourth quarter 2013 results, which
demonstrate strong RevPAR growth and solid performance in all our
operating metrics. Additionally, we have taken steps to
increase our liquidity position such as our new secured credit
facility and recent public offering, which gives us more dry powder
to continue building out the Ashford Prime portfolio," commented
Monty J. Bennett, Ashford Prime's
Chairman and Chief Executive Officer. "Since the successful
completion of our spin-off last November, we have already announced
the acquisitions of two high RevPAR hotels with prime locations in
key U.S. gateway markets. We intend to continue executing on
our investment strategy and look forward to demonstrating the
strength of Ashford Prime's portfolio. The Ashford Prime
portfolio was specifically designed to unlock the potential of our
high RevPAR assets and we believe this platform is poised to excel
as lodging fundamentals continue to remain favorable for the
foreseeable future."
INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Prime, Inc. will conduct a conference call
on Friday, February 28, 2014, at
11:00 a.m. ET. The number to
call for this interactive teleconference is (480) 629-9835. A
replay of the conference call will be available through
Friday, March 7, 2014, by dialing
(303) 590-3030 and entering the confirmation number, 4662726.
The Company will also provide an online simulcast and
rebroadcast of its fourth quarter 2013 earnings release conference
call. The live broadcast of Ashford Hospitality Prime's
quarterly conference call will be available online at the Company's
web site, www.ahpreit.com on Friday,
February 28, 2014, beginning at 11:00
a.m. ET. The online replay will follow shortly after
the call and continue for approximately one year.
Substantially all of our non-current assets consist of real
estate investments and debt investments secured by real
estate. Historical cost accounting for real estate assets
implicitly assumes that the value of real estate assets diminishes
predictably over time. Since real estate values instead have
historically risen or fallen with market conditions, most industry
investors consider supplemental measures of performance, which are
not measures of operating performance under GAAP, to assist in
evaluating a real estate company's operations. These supplemental
measures include FFO, AFFO, EBITDA, and Hotel Operating
Profit. FFO is computed in accordance with our interpretation
of standards established by NAREIT, which may not be comparable to
FFO reported by other REITs that do not define the term in
accordance with the current NAREIT definition or that interpret the
NAREIT definition differently than us. Neither FFO, AFFO,
EBITDA, nor Hotel Operating Profit represents cash generated from
operating activities as determined by GAAP and should not be
considered as an alternative to a) GAAP net income (loss) as an
indication of our financial performance or b) GAAP cash flows from
operating activities as a measure of our liquidity, nor are such
measures indicative of funds available to satisfy our cash needs,
including our ability to make cash distributions. However,
management believes FFO, AFFO, EBITDA, and Hotel Operating Profit
to be meaningful measures of a REIT's performance and should be
considered along with, but not as an alternative to, net income and
cash flow as a measure of our operating performance.
Ashford Hospitality Prime is a real estate investment trust
(REIT) focused on investing in high RevPAR full-service and urban
select-service hotels and resorts located predominantly in domestic
and international gateway markets.
Follow Chairman and CEO Monty
Bennett on Twitter at www.twitter.com/MBennettAshford or
@MBennettAshford.
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and
uncertainties. When we use the words "will likely result,"
"may," "anticipate," "estimate," "should," "expect," "believe,"
"intend," or similar expressions, we intend to identify
forward-looking statements. Such statements are subject to
numerous assumptions and uncertainties, many of which are outside
Ashford Prime's control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: general volatility of the capital markets and the
market price of our common stock; changes in our business or
investment strategy; availability, terms and deployment of capital;
availability of qualified personnel; changes in our industry and
the market in which we operate, interest rates or the general
economy; and the degree and nature of our competition. These
and other risk factors are more fully discussed in Ashford Prime's
filings with the Securities and Exchange Commission. EBITDA
is defined as net income before interest, taxes, depreciation and
amortization. EBITDA yield is defined as trailing twelve
month EBITDA divided by the purchase price. A capitalization
rate is determined by dividing the property's annual net operating
income by the purchase price. Net operating income is the
property's funds from operations minus a capital expense reserve of
either 4% or 5% of gross revenues. Hotel EBITDA flow-through
is the change in Hotel EBITDA divided by the change in total
revenues. Hotel EBITDA Margin is Hotel EBITDA divided by
total revenues. Funds from operations ("FFO"), as defined by
the White Paper on FFO approved by the Board of Governors of the
National Association of Real Estate Investment Trusts ("NAREIT") in
April 2002, represents net income
(loss) computed in accordance with generally accepted accounting
principles ("GAAP"), excluding gains (or losses) from sales of
properties and extraordinary items as defined by GAAP, plus
depreciation and amortization of real estate assets, and net of
adjustments for the portion of these items related to
unconsolidated entities and joint ventures.
The forward-looking statements included in this press release
are only made as of the date of this press release. Investors
should not place undue reliance on these forward-looking
statements. We are not obligated to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or circumstances, changes in
expectations or otherwise.
ASHFORD
HOSPITALITY PRIME, INC. AND SUBSIDIARIES
|
COMBINED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
except share amounts)
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
143,776
|
|
$
20,313
|
|
Investment in hotel
properties, net
|
765,326
|
|
771,936
|
|
Restricted
cash
|
5,951
|
|
16,891
|
|
Accounts receivable,
net of allowance of $34 and $33, respectively
|
7,029
|
|
5,892
|
|
Inventories
|
318
|
|
304
|
|
Note
receivable
|
8,098
|
|
8,098
|
|
Deferred costs,
net
|
4,064
|
|
2,064
|
|
Prepaid
expenses
|
1,558
|
|
1,402
|
|
Other
assets
|
4,501
|
|
1,518
|
|
Intangible asset,
net
|
2,631
|
|
2,721
|
|
Due from third-party
hotel managers
|
18,480
|
|
16,141
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
961,732
|
|
$
847,280
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Liabilities:
|
|
|
|
|
Indebtedness
|
$
621,882
|
|
$
570,809
|
|
Accounts payable and
accrued expenses
|
16,604
|
|
18,109
|
|
Dividends
payable
|
1,245
|
|
-
|
|
Unfavorable
management contract liabilities
|
474
|
|
633
|
|
Intangible liability,
net
|
3,795
|
|
3,852
|
|
Due to related
parties, net
|
13,030
|
|
-
|
|
Due to third-party
hotel managers
|
649
|
|
585
|
|
Other
liabilities
|
926
|
|
914
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
658,605
|
|
594,902
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests in operating partnership
|
159,726
|
|
-
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Common stock, $0.01
par value, 200,000,000 shares authorized, 16,129,112
shares
|
|
|
|
|
|
|
issued and
outstanding at December 31, 2013
|
161
|
|
-
|
|
|
Additional paid-in
capital
|
246,928
|
|
272,376
|
|
|
Accumulated
deficit
|
(101,062)
|
|
(32,513)
|
|
|
|
Total shareholders'
equity of the Company
|
146,027
|
|
239,863
|
|
Noncontrolling
interest in consolidated entity
|
(2,626)
|
|
12,515
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
143,401
|
|
252,378
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
$
961,732
|
|
$
847,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASHFORD
HOSPITALITY PRIME, INC. AND SUBSIDIARIES
|
COMBINED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
REVENUE
|
|
|
|
|
|
|
|
|
Rooms
|
$
38,818
|
|
$
43,757
|
|
$
171,670
|
|
$
160,811
|
|
Food and
beverage
|
13,036
|
|
14,635
|
|
50,835
|
|
50,784
|
|
Other
|
3,232
|
|
2,766
|
|
10,969
|
|
9,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total hotel
revenue
|
55,086
|
|
61,158
|
|
233,474
|
|
221,188
|
|
Other
|
22
|
|
-
|
|
22
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
55,108
|
|
61,158
|
|
233,496
|
|
221,188
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
Hotel operating
expenses
|
|
|
|
|
|
|
|
|
|
Rooms
|
9,698
|
|
10,335
|
|
39,881
|
|
37,001
|
|
|
Food and
beverage
|
8,371
|
|
9,530
|
|
33,694
|
|
33,377
|
|
|
Other
expenses
|
15,180
|
|
16,617
|
|
61,779
|
|
59,013
|
|
|
Management
fees
|
2,348
|
|
2,660
|
|
9,999
|
|
9,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total hotel operating
expenses
|
35,597
|
|
39,142
|
|
145,353
|
|
138,751
|
|
|
|
|
|
|
|
|
|
|
|
|
Property taxes,
insurance and other
|
3,048
|
|
2,600
|
|
11,753
|
|
10,236
|
|
Depreciation and
amortization
|
7,998
|
|
7,352
|
|
30,862
|
|
29,549
|
|
Advisory services
fee
|
1,047
|
|
-
|
|
1,047
|
|
-
|
|
Transaction
costs
|
13,577
|
|
-
|
|
13,577
|
|
-
|
|
Corporate, general
and administrative:
|
|
|
|
|
|
|
|
|
|
Stock/unit-based
compensation
|
900
|
|
965
|
|
5,204
|
|
4,503
|
|
|
Other general and
administrative
|
1,372
|
|
1,887
|
|
6,290
|
|
6,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
63,539
|
|
51,946
|
|
214,086
|
|
189,382
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
(8,431)
|
|
9,212
|
|
19,410
|
|
31,806
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
4
|
|
10
|
|
23
|
|
29
|
|
Interest
expense
|
(8,239)
|
|
(7,509)
|
|
(32,266)
|
|
(29,991)
|
|
Amortization of loan
costs
|
(201)
|
|
(313)
|
|
(745)
|
|
(1,253)
|
|
Write-off of loan
costs and exit fees
|
-
|
|
-
|
|
(1,971)
|
|
-
|
|
Unrealized loss on
derivatives
|
(5)
|
|
-
|
|
(36)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES
|
(16,872)
|
|
1,400
|
|
(15,585)
|
|
591
|
|
Income tax
expense
|
(88)
|
|
(1,097)
|
|
(2,343)
|
|
(4,384)
|
|
|
|
|
|
|
|
|
|
|
|
NET
LOSS
|
(16,960)
|
|
303
|
|
(17,928)
|
|
(3,793)
|
Income from
consolidated entity attributable to noncontrolling
interest
|
(1,509)
|
|
(1,223)
|
|
(934)
|
|
(752)
|
Net loss attributable
to redeemable noncontrolling interests in operating
partnership
|
7,080
|
|
-
|
|
7,080
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
ATTRIBUTABLE TO THE COMPANY
|
(11,389)
|
|
(920)
|
|
(11,782)
|
|
(4,545)
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER SHARE –
BASIC AND DILUTED
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common shareholders
|
$
(0.71)
|
|
$
(0.06)
|
|
$
(0.73)
|
|
$
(0.28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding – basic
|
16,045
|
|
16,045
|
|
16,045
|
|
16,045
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common shareholders
|
$
(0.71)
|
|
$
(0.06)
|
|
$
(0.73)
|
|
$
(0.28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding – diluted
|
16,045
|
|
16,045
|
|
16,045
|
|
16,045
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share:
|
$
0.05
|
|
$
-
|
|
$
0.05
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
ASHFORD
HOSPITALITY PRIME, INC. AND SUBSIDIARIES
|
RECONCILIATION OF NET LOSS TO
EBITDA
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(16,960)
|
|
$
303
|
|
$
(17,928)
|
|
$
(3,793)
|
Income from
consolidated entities attributable to noncontrolling
interests
|
|
(1,509)
|
|
(1,223)
|
|
(934)
|
|
(752)
|
Net loss
attributable to redeemable noncontrolling interests in operating
partnership
|
|
7,080
|
|
-
|
|
7,080
|
|
-
|
Net loss
attributable to the Company
|
|
(11,389)
|
|
(920)
|
|
(11,782)
|
|
(4,545)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
(4)
|
|
(10)
|
|
(22)
|
|
(28)
|
|
Interest
expense and amortization of loan costs
|
|
7,964
|
|
7,490
|
|
31,182
|
|
29,917
|
|
Depreciation
and amortization
|
|
7,193
|
|
6,613
|
|
27,691
|
|
26,625
|
|
Income tax
expense
|
|
88
|
|
1,097
|
|
2,343
|
|
4,384
|
|
Net loss
attributable to redeemable noncontrolling interests in operating
partnership
|
|
(7,080)
|
|
-
|
|
(7,080)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
(3,228)
|
|
14,270
|
|
42,332
|
|
56,353
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
unfavorable management contract liabilities
|
|
(40)
|
|
(49)
|
|
(120)
|
|
(158)
|
|
Write-off of
loan costs and exit fees
|
|
-
|
|
-
|
|
1,971
|
|
-
|
|
Transaction
costs
|
|
13,577
|
|
-
|
|
13,750
|
|
|
|
Unrealized loss
on derivatives
|
|
5
|
|
-
|
|
36
|
|
-
|
|
Modification of
rent terms
|
|
-
|
|
-
|
|
539
|
|
-
|
|
Equity-based
compensation (1)
|
|
342
|
|
-
|
|
342
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
10,656
|
|
$
14,221
|
|
$
58,850
|
|
$
56,195
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents
equity-based compensation expense related to stock grants issued
subsequent to the spin-off.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET LOSS TO FUNDS FROM
OPERATIONS ("FFO")
|
(in
thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(16,960)
|
|
$
303
|
|
$
(17,928)
|
|
$
(3,793)
|
Income from
consolidated entities attributable to noncontrolling
interests
|
|
(1,509)
|
|
(1,223)
|
|
(934)
|
|
(752)
|
Net loss
attributable to redeemable noncontrolling interests in operating
partnership
|
|
7,080
|
|
-
|
|
7,080
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to common shareholders
|
|
(11,389)
|
|
(920)
|
|
(11,782)
|
|
(4,545)
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization on real estate
|
|
7,193
|
|
6,613
|
|
27,691
|
|
26,625
|
|
Net loss
attributable to redeemable noncontrolling interests in operating
partnership
|
|
(7,080)
|
|
-
|
|
(7,080)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
FFO
available to common shareholders
|
|
(11,276)
|
|
5,693
|
|
8,829
|
|
22,080
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss
on derivatives
|
|
5
|
|
-
|
|
36
|
|
-
|
|
Transaction
costs
|
|
13,577
|
|
-
|
|
13,750
|
|
-
|
|
Write-off of
loan costs and exit fees
|
|
-
|
|
-
|
|
1,971
|
|
-
|
|
Modification of
rent terms
|
|
-
|
|
-
|
|
539
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted FFO
available to common shareholders
|
|
$
2,306
|
|
$
5,693
|
|
$
25,125
|
|
$
22,080
|
|
|
|
|
|
|
|
|
|
|
Adjusted FFO
per diluted share available to common shareholders
|
|
$
0.09
|
|
$
0.23
|
|
$
1.01
|
|
$
0.89
|
|
|
|
|
|
|
|
|
|
|
Weighted
average diluted shares
|
|
24,905
|
|
24,905
|
|
24,905
|
|
24,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASHFORD
HOSPITALITY PRIME, INC.
|
SUMMARY OF
INDEBTEDNESS OF CONTINUING OPERATIONS
|
DECEMBER 31,
2013
|
(dollars in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proforma
|
|
Proforma
|
|
|
|
|
|
|
Fixed-Rate
|
|
Floating-Rate
|
|
Total
|
|
TTM
Hotel
|
|
TTM
EBITDA
|
Indebtedness
|
|
Maturity
|
|
Interest
Rate
|
|
Debt
|
|
Debt
|
|
Debt
|
|
EBITDA
|
|
Debt
Yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior credit
facility - Various
|
|
November
2016
|
|
LIBOR + 2.25% to
3.75%
|
|
$
-
|
|
$
-
|
(1)
|
$
-
|
|
N/A
|
|
N/A
|
Wachovia Philly
CY - 1 hotel
|
|
April 2017
|
|
5.91%
|
|
34,310
|
|
-
|
|
34,310
|
|
10,370
|
|
30.2%
|
Wachovia 3 - 2
hotels
|
|
April 2017
|
|
5.95%
|
|
125,748
|
|
-
|
|
125,748
|
|
17,350
|
|
13.8%
|
Wachovia 7 - 3
hotels
|
|
April 2017
|
|
5.95%
|
|
255,886
|
|
-
|
|
255,886
|
|
25,591
|
|
10.0%
|
Aareal - 2
hotels
|
|
February
2018
|
|
LIBOR +
3.50%
|
|
-
|
|
197,840
|
|
197,840
|
|
24,595
|
|
12.4%
|
TIF Philly CY -
1 hotel
|
|
June 2018
|
|
12.85%
|
|
8,098
|
|
-
|
|
8,098
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
$
424,042
|
|
$
197,840
|
|
$
621,882
|
|
$
77,906
|
|
12.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage
|
|
|
|
|
|
68.2%
|
|
31.8%
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average interest rate
|
|
|
|
|
|
6.08%
|
|
3.67%
|
|
5.31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All indebtedness is
non-recourse.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This
credit facility has two one-year extension options subject to
advance notice, certain conditions and a 0.25% extension fee
beginning November 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASHFORD
HOSPITALITY PRIME, INC.
|
INDEBTEDNESS
BY MATURITY
|
DECEMBER 31,
2013
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
Thereafter
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior credit
facility - Various
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
Wachovia Philly
CY - 1 hotel
|
|
-
|
|
-
|
|
-
|
|
32,532
|
|
-
|
|
-
|
|
32,532
|
Wachovia 3 - 2
hotels
|
|
-
|
|
-
|
|
-
|
|
119,245
|
|
-
|
|
-
|
|
119,245
|
Wachovia 7 - 3
hotels
|
|
-
|
|
-
|
|
-
|
|
242,201
|
|
-
|
|
-
|
|
242,201
|
Aareal - 2
hotels
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
186,259
|
|
-
|
|
186,259
|
TIF Philly CY -
1 hotel
|
|
-
|
|
-
|
|
-
|
|
-
|
|
8,098
|
|
-
|
|
8,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal due
in future periods
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
393,978
|
|
$
194,357
|
|
$
-
|
|
$
588,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scheduled
amortization payments remaining
|
8,403
|
|
8,917
|
|
9,464
|
|
6,233
|
|
530
|
|
-
|
|
33,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
indebtedness of continuing operations
|
$
8,403
|
|
$
8,917
|
|
$
9,464
|
|
$
400,211
|
|
$
194,887
|
|
$
-
|
|
$
621,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASHFORD
HOSPITALITY PRIME, INC.
|
KEY PERFORMANCE
INDICATORS - PRO FORMA
|
(dollars in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
%
Variance
|
|
2013
|
|
2012
|
|
%
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALL HOTELS
INCLUDED IN CONTINUING OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room revenues (in
thousands)
|
$
38,818
|
|
$
35,487
|
|
9.39%
|
|
$
171,670
|
|
$
160,811
|
|
6.75%
|
|
|
RevPAR
|
$
134.12
|
|
$
125.48
|
|
6.89%
|
|
$
148.64
|
|
$
140.20
|
|
6.02%
|
|
|
Occupancy
|
72.44%
|
|
71.51%
|
|
0.93%
|
|
78.40%
|
|
77.40%
|
|
1.00%
|
|
|
ADR
|
$
185.15
|
|
$
175.47
|
|
5.52%
|
|
$
189.60
|
|
$
181.13
|
|
4.68%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The above pro forma
table assumes the eight hotel properties owned and included in
continuing operations at December 31, 2013 were owned as of
the
|
|
|
beginning of the
period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
On January 1, 2013,
Marriott converted from a fiscal year with 12 weeks of operations
in each of the first three quarters of the year and 16 weeks in the
fourth
|
|
|
quarter of the year,
to calendar quarters. The above proforma table assumes
the Marriott-managed properties were reported on calendar quarters
for
|
|
|
all periods
presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
%
Variance
|
|
2013
|
|
2012
|
|
%
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALL HOTELS NOT
UNDER RENOVATION INCLUDED IN
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTINUING
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room revenues (in
thousands)
|
$
29,620
|
|
$
26,400
|
|
12.20%
|
|
$
131,348
|
|
$
122,181
|
|
7.50%
|
|
|
RevPAR
|
$
143.48
|
|
$
130.35
|
|
10.07%
|
|
$
159.60
|
|
$
149.24
|
|
6.94%
|
|
|
Occupancy
|
75.67%
|
|
72.12%
|
|
3.54%
|
|
80.98%
|
|
79.27%
|
|
1.70%
|
|
|
ADR
|
$
189.61
|
|
$
180.73
|
|
4.92%
|
|
$
197.09
|
|
$
188.26
|
|
4.69%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The above pro forma
table assumes the six hotel properties included in continuing
operations at December 31, 2013, but not under renovation for
the
|
|
|
three and twelve
months ended December 31, 2013, were owned as of the beginning of
the periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Excluded Hotels Under
Renovation:
|
|
|
Marriott Dallas Plano
Legacy, Courtyard Philadelphia Downtown
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
On January 1, 2013,
Marriott converted from a fiscal year with 12 weeks of operations
in each of the first three quarters of the year and 16 weeks in the
fourth
|
|
|
quarter of the year,
to calendar quarters. The above proforma table assumes
the Marriott-managed properties were reported on calendar quarters
for
|
|
|
all periods
presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASHFORD
HOSPITALITY PRIME, INC.
|
PRO FORMA HOTEL
OPERATING PROFIT MARGIN
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE FOLLOWING PRO
FORMA EBITDA MARGIN TABLE REFLECTS THE EIGHT HOTELS INCLUDED IN THE
COMPANY'S CONTINUING
OPERATIONS AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF THE
FIRST COMPARATIVE REPORTING PERIOD.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months
Ended
|
|
12 Months
Ended
|
|
|
|
|
December
31
|
|
December
31
|
HOTEL OPERATING
PROFIT (HOTEL EBITDA) MARGIN:
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
30.06%
|
|
33.37%
|
|
2012
|
|
31.27%
|
|
33.02%
|
|
|
Variance
|
|
-1.21%
|
|
0.35%
|
|
|
|
|
|
|
|
HOTEL OPERATING
PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN:
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms
|
|
-0.95%
|
|
-0.35%
|
|
Food & Beverage
and Other Departmental
|
|
0.71%
|
|
0.73%
|
|
Administrative &
General
|
|
0.12%
|
|
0.27%
|
|
Sales &
Marketing
|
|
0.06%
|
|
0.25%
|
|
Hospitality
|
|
0.00%
|
|
0.00%
|
|
Repair &
Maintenance
|
|
0.00%
|
|
0.15%
|
|
Energy
|
|
0.23%
|
|
0.31%
|
|
Franchise
Fee
|
|
0.00%
|
|
0.00%
|
|
Management
Fee
|
|
-0.05%
|
|
-0.05%
|
|
Incentive Management
Fee
|
|
-0.65%
|
|
-0.63%
|
|
Insurance
|
|
0.00%
|
|
-0.02%
|
|
Property
Taxes
|
|
-0.56%
|
|
-0.25%
|
|
Other
Taxes
|
|
0.04%
|
|
-0.03%
|
|
Leases/Other
|
|
-0.16%
|
|
-0.03%
|
|
|
Total
|
|
-1.21%
|
|
0.35%
|
|
|
|
|
|
|
|
NOTE:
|
|
|
|
|
|
|
On January 1, 2013,
Marriott converted from a fiscal year with 12 weeks of operations
in each of the first three quarters of the year and 16 weeks in the fourth quarter of the
year, to calendar quarters. The above proforma table
assumes the Marriott-managed
properties were reported on calendar quarters for all periods
presented.
|
|
|
|
|
ASHFORD
HOSPITALITY PRIME, INC.
|
Selected Pro Forma
Financial and Operating Information by Property
|
(in thousands,
except operating information)
|
|
The following tables
present selected financial and operating information by property
for the eight properties included in Ashford Hospitality Prime,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013
|
2012
|
% Variance
|
|
2013
|
2012
|
% Variance
|
|
|
|
|
|
|
|
|
|
|
CAPITAL HILTON
WASHINGTON DC
|
|
|
|
|
|
|
|
|
Selected Financial
Information:
|
|
|
|
|
|
|
|
|
|
Room
Revenue
|
|
$
7,962
|
$
7,934
|
0.35%
|
|
$
35,945
|
$
35,060
|
2.52%
|
|
Total
Revenue
|
|
$
12,071
|
$
11,404
|
5.85%
|
|
$
50,790
|
$
49,162
|
3.31%
|
|
EBITDA
|
|
$
3,459
|
$
3,057
|
13.15%
|
|
$
15,603
|
$
15,285
|
2.08%
|
|
EBITDA
Margin
|
|
28.66%
|
26.81%
|
1.85%
|
|
30.72%
|
31.09%
|
-0.37%
|
|
Selected Operating
Information:
|
|
|
|
|
|
|
|
|
|
RevPAR
|
|
$
159.09
|
$
158.52
|
0.36%
|
|
$
181.03
|
$
176.09
|
2.81%
|
|
Occupancy
|
|
73.23%
|
74.42%
|
-1.18%
|
|
83.66%
|
82.31%
|
1.35%
|
|
ADR
|
|
$
217.23
|
$
213.02
|
1.98%
|
|
$
216.40
|
$
213.93
|
1.15%
|
LA JOLLA HILTON
TORREY PINES
|
|
|
|
|
|
|
|
|
|
Selected Financial
Information:
|
|
|
|
|
|
|
|
|
|
Room
Revenue
|
|
$
4,371
|
$
3,637
|
20.18%
|
|
$
18,949
|
$
18,197
|
4.13%
|
|
Total
Revenue
|
|
$
7,868
|
$
6,832
|
15.16%
|
|
$
31,767
|
$
30,934
|
2.69%
|
|
EBITDA
|
|
$
2,091
|
$
1,807
|
15.72%
|
|
$
8,992
|
$
8,899
|
1.05%
|
|
EBITDA
Margin
|
|
26.58%
|
26.45%
|
0.13%
|
|
28.31%
|
28.77%
|
-0.46%
|
|
Selected Operating
Information:
|
|
|
|
|
|
|
|
|
|
RevPAR
|
|
$
120.59
|
$
100.33
|
20.19%
|
|
$
131.76
|
$
126.19
|
4.41%
|
|
Occupancy
|
|
78.14%
|
63.44%
|
14.70%
|
|
78.23%
|
75.83%
|
2.40%
|
|
ADR
|
|
$
154.33
|
$
158.17
|
-2.43%
|
|
$
168.43
|
$
166.41
|
1.22%
|
PHILADELPHIA
COURTYARD DOWNTOWN
|
|
|
|
|
|
|
|
|
Selected Financial
Information:
|
|
|
|
|
|
|
|
|
|
Room
Revenue
|
|
$
4,957
|
$
5,079
|
-2.40%
|
|
$
23,151
|
$
22,761
|
1.71%
|
|
Total
Revenue
|
|
$
6,235
|
$
6,210
|
0.40%
|
|
$
28,176
|
$
27,476
|
2.55%
|
|
EBITDA
|
|
$
1,948
|
$
2,109
|
-7.63%
|
|
$
10,370
|
$
9,805
|
5.76%
|
|
EBITDA
Margin
|
|
31.24%
|
33.96%
|
-2.72%
|
|
36.80%
|
35.69%
|
1.12%
|
|
Selected Operating
Information:
|
|
|
|
|
|
|
|
|
|
RevPAR
|
|
$
108.19
|
$
114.59
|
-5.59%
|
|
$
126.33
|
$
125.56
|
0.61%
|
|
Occupancy
|
|
64.64%
|
71.56%
|
-6.92%
|
|
76.55%
|
77.89%
|
-1.34%
|
|
ADR
|
|
$
167.37
|
$
160.12
|
4.53%
|
|
$
165.02
|
$
161.20
|
2.37%
|
PLANO MARRIOTT
LEGACY TOWN CENTER
|
|
|
|
|
|
|
|
|
Selected Financial
Information:
|
|
|
|
|
|
|
|
|
|
Room
Revenue
|
|
$
4,241
|
$
4,008
|
5.81%
|
|
$
17,171
|
$
15,869
|
8.20%
|
|
Total
Revenue
|
|
$
6,342
|
$
6,491
|
-2.30%
|
|
$
25,914
|
$
25,330
|
2.31%
|
|
EBITDA
|
|
$
2,139
|
$
2,112
|
1.28%
|
|
$
8,711
|
$
8,391
|
3.81%
|
|
EBITDA
Margin
|
|
33.73%
|
32.54%
|
1.19%
|
|
33.62%
|
33.13%
|
0.49%
|
|
Selected Operating
Information:
|
|
|
|
|
|
|
|
|
|
RevPAR
|
|
$
114.10
|
$
111.47
|
2.36%
|
|
$
115.49
|
$
107.91
|
7.02%
|
|
Occupancy
|
|
64.11%
|
67.99%
|
-3.88%
|
|
66.40%
|
66.37%
|
0.02%
|
|
ADR
|
|
$
177.98
|
$
163.95
|
8.56%
|
|
$
173.95
|
$
162.59
|
6.98%
|
SAN FRANCISCO
COURTYARD DOWNTOWN
|
|
|
|
|
|
|
|
|
Selected Financial
Information:
|
|
|
|
|
|
|
|
|
|
Room
Revenue
|
|
$
7,271
|
$
5,899
|
23.26%
|
|
$
29,895
|
$
26,043
|
14.79%
|
|
Total
Revenue
|
|
$
8,478
|
$
6,846
|
23.84%
|
|
$
34,667
|
$
30,233
|
14.67%
|
|
EBITDA
|
|
$
2,320
|
$
2,384
|
-2.68%
|
|
$
11,937
|
$
10,135
|
17.78%
|
|
EBITDA
Margin
|
|
27.36%
|
34.82%
|
-7.46%
|
|
34.43%
|
33.52%
|
0.91%
|
|
Selected Operating
Information:
|
|
|
|
|
|
|
|
|
|
RevPAR
|
|
$
195.15
|
$
163.67
|
19.23%
|
|
$
200.58
|
$
176.66
|
13.54%
|
|
Occupancy
|
|
83.31%
|
80.49%
|
2.81%
|
|
88.39%
|
85.36%
|
3.03%
|
|
ADR
|
|
$
234.26
|
$
203.33
|
15.21%
|
|
$
226.92
|
$
206.95
|
9.65%
|
SEATTLE COURTYARD
DOWNTOWN
|
|
|
|
|
|
|
|
|
Selected Financial
Information:
|
|
|
|
|
|
|
|
|
|
Room
Revenue
|
|
$
2,336
|
$
2,056
|
13.62%
|
|
$
11,239
|
$
9,739
|
15.40%
|
|
Total
Revenue
|
|
$
2,786
|
$
2,458
|
13.34%
|
|
$
13,129
|
$
11,423
|
14.93%
|
|
EBITDA
|
|
$
1,165
|
$
959
|
21.48%
|
|
$
5,413
|
$
4,859
|
11.40%
|
|
EBITDA
Margin
|
|
41.82%
|
39.02%
|
2.80%
|
|
41.23%
|
42.54%
|
-1.31%
|
|
Selected Operating
Information:
|
|
|
|
|
|
|
|
|
|
RevPAR
|
|
$
101.55
|
$
92.42
|
9.88%
|
|
$
122.16
|
$
107.02
|
14.15%
|
|
Occupancy
|
|
72.94%
|
68.70%
|
4.24%
|
|
75.96%
|
72.03%
|
3.93%
|
|
ADR
|
|
$
139.23
|
$
134.53
|
3.49%
|
|
$
160.83
|
$
148.58
|
8.25%
|
SEATTLE MARRIOTT
WATERFRONT
|
|
|
|
|
|
|
|
|
Selected Financial
Information:
|
|
|
|
|
|
|
|
|
|
Room
Revenue
|
|
$
4,673
|
$
4,158
|
12.39%
|
|
$
22,456
|
$
20,282
|
10.72%
|
|
Total
Revenue
|
|
$
6,420
|
$
5,776
|
11.15%
|
|
$
29,635
|
$
27,195
|
8.97%
|
|
EBITDA
|
|
$
2,135
|
$
2,213
|
-3.52%
|
|
$
11,815
|
$
10,521
|
12.30%
|
|
EBITDA
Margin
|
|
33.26%
|
38.31%
|
-5.06%
|
|
39.87%
|
38.69%
|
1.18%
|
|
Selected Operating
Information:
|
|
|
|
|
|
|
|
|
|
RevPAR
|
|
$
141.90
|
$
130.50
|
8.74%
|
|
$
170.45
|
$
155.64
|
9.52%
|
|
Occupancy
|
|
70.56%
|
71.49%
|
-0.93%
|
|
77.80%
|
77.69%
|
0.11%
|
|
ADR
|
|
$
201.11
|
$
182.54
|
10.17%
|
|
$
219.09
|
$
200.34
|
9.36%
|
TAMPA
RENAISSANCE
|
|
|
|
|
|
|
|
|
|
Selected Financial
Information:
|
|
|
|
|
|
|
|
|
|
Room
Revenue
|
|
$
3,007
|
$
2,716
|
10.71%
|
|
$
12,865
|
$
12,860
|
0.04%
|
|
Total
Revenue
|
|
$
4,886
|
$
4,332
|
12.79%
|
|
$
19,397
|
$
19,435
|
-0.20%
|
|
EBITDA
|
|
$
1,301
|
$
1,103
|
17.95%
|
|
$
5,065
|
$
5,144
|
-1.54%
|
|
EBITDA
Margin
|
|
26.63%
|
25.46%
|
1.17%
|
|
26.11%
|
26.47%
|
-0.36%
|
|
Selected Operating
Information:
|
|
|
|
|
|
|
|
|
|
RevPAR
|
|
$
111.55
|
$
104.14
|
7.12%
|
|
$
119.31
|
$
120.57
|
-1.05%
|
|
Occupancy
|
|
74.88%
|
71.93%
|
2.94%
|
|
77.63%
|
77.95%
|
-0.32%
|
|
ADR
|
|
$
148.97
|
$
144.78
|
2.90%
|
|
$
153.70
|
$
154.68
|
-0.64%
|
PRIME PROPERTIES
TOTAL (8)
|
|
|
|
|
|
|
|
|
|
Selected Financial
Information:
|
|
|
|
|
|
|
|
|
|
Room
Revenue
|
|
$
38,818
|
$
35,487
|
9.39%
|
|
$
171,670
|
$
160,811
|
6.75%
|
|
Total
Revenue
|
|
$
55,087
|
$
50,349
|
9.41%
|
|
$
233,475
|
$
221,188
|
5.56%
|
|
EBITDA
|
|
$
16,558
|
$
15,743
|
5.18%
|
|
$
77,906
|
$
73,039
|
6.66%
|
|
EBITDA
Margin
|
|
30.06%
|
31.27%
|
-1.21%
|
|
33.37%
|
33.02%
|
0.35%
|
|
Selected Operating
Information:
|
|
|
|
|
|
|
|
|
|
RevPAR
|
|
$
134.12
|
$
125.48
|
6.89%
|
|
$
148.64
|
$
140.20
|
6.02%
|
|
Occupancy
|
|
72.44%
|
71.51%
|
0.93%
|
|
78.40%
|
77.40%
|
1.00%
|
|
ADR
|
|
$
185.15
|
$
175.47
|
5.52%
|
|
$
189.60
|
$
181.13
|
4.68%
|
|
|
|
|
|
|
|
|
|
|
ASHFORD
HOSPITALITY PRIME, INC.
|
PRO FORMA
HOTEL OPERATING PROFIT
|
(dollars in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALL HOTELS
INCLUDED IN CONTINUING OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
%
Variance
|
|
2013
|
|
2012
|
|
%
Variance
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms
|
$
38,818
|
|
$
35,487
|
|
9.4%
|
|
$
171,670
|
|
$
160,811
|
|
6.8%
|
|
Food and
beverage
|
13,037
|
|
12,613
|
|
3.4%
|
|
50,836
|
|
50,784
|
|
0.1%
|
|
Other
|
3,232
|
|
2,249
|
|
43.7%
|
|
10,969
|
|
9,593
|
|
14.3%
|
|
|
Total hotel
revenue
|
55,087
|
|
50,349
|
|
9.4%
|
|
233,475
|
|
221,188
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms
|
9,698
|
|
8,387
|
|
15.6%
|
|
39,881
|
|
37,001
|
|
7.8%
|
|
Food and
beverage
|
8,371
|
|
8,031
|
|
4.2%
|
|
33,694
|
|
33,377
|
|
0.9%
|
|
Other
direct
|
968
|
|
864
|
|
12.0%
|
|
4,099
|
|
4,035
|
|
1.6%
|
|
Indirect
|
13,287
|
|
12,269
|
|
8.3%
|
|
53,549
|
|
52,846
|
|
1.3%
|
|
Management
fees, includes base and incentive fees
|
3,161
|
|
2,538
|
|
24.5%
|
|
12,855
|
|
10,665
|
|
20.5%
|
|
|
Total hotel
operating expenses
|
35,485
|
|
32,089
|
|
10.6%
|
|
144,078
|
|
137,924
|
|
4.5%
|
|
Property taxes,
insurance, and other
|
3,044
|
|
2,517
|
|
20.9%
|
|
11,491
|
|
10,225
|
|
12.4%
|
HOTEL
OPERATING PROFIT (Hotel EBITDA)
|
16,558
|
|
15,743
|
|
5.2%
|
|
77,906
|
|
73,039
|
|
6.7%
|
|
|
Hotel EBITDA
Margin
|
30.06%
|
|
31.27%
|
|
-1.21%
|
|
33.37%
|
|
33.02%
|
|
0.35%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority
interest in earnings of consolidated joint
ventures
|
1,387
|
|
1,216
|
|
14.1%
|
|
6,149
|
|
6,046
|
|
1.7%
|
HOTEL
OPERATING PROFIT (Hotel EBITDA),
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding
minority interest in joint ventures
|
$
15,171
|
|
$
14,527
|
|
4.4%
|
|
$
71,757
|
|
$
66,993
|
|
7.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The above pro forma
table assumes the eight hotel properties owned and included in
continuing operations at December 31, 2013 were owned as of
the
|
|
|
beginning of the
periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
On January 1, 2013,
Marriott converted from a fiscal year with 12 weeks of operations
in each of the first three quarters of the year and 16 weeks in the
fourth
|
|
|
quarter of the year,
to calendar quarters. The above proforma table assumes
the Marriott-managed properties were reported on calendar quarters
for
|
|
|
all periods
presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALL HOTELS
NOT UNDER RENOVATION INCLUDED IN CONTINUING
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
%
Variance
|
|
2013
|
|
2012
|
|
%
Variance
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms
|
$
29,620
|
|
$
26,400
|
|
12.2%
|
|
$
131,348
|
|
$
122,181
|
|
7.5%
|
|
Food and
beverage
|
10,290
|
|
9,411
|
|
9.3%
|
|
39,069
|
|
38,370
|
|
1.8%
|
|
Other
|
2,599
|
|
1,837
|
|
41.5%
|
|
8,968
|
|
7,831
|
|
14.5%
|
|
|
Total hotel
revenue
|
42,509
|
|
37,648
|
|
12.9%
|
|
179,385
|
|
168,382
|
|
6.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms
|
7,609
|
|
6,478
|
|
17.5%
|
|
31,291
|
|
28,849
|
|
8.5%
|
|
Food and
beverage
|
6,794
|
|
6,318
|
|
7.5%
|
|
26,928
|
|
26,399
|
|
2.0%
|
|
Other
direct
|
832
|
|
736
|
|
13.0%
|
|
3,530
|
|
3,471
|
|
1.7%
|
|
Indirect
|
9,940
|
|
9,006
|
|
10.4%
|
|
40,138
|
|
39,263
|
|
2.2%
|
|
Management
fees, includes base and incentive fees
|
2,315
|
|
1,562
|
|
48.2%
|
|
9,097
|
|
7,091
|
|
28.3%
|
|
|
Total hotel
operating expenses
|
27,490
|
|
24,100
|
|
14.1%
|
|
110,984
|
|
105,073
|
|
5.6%
|
|
Property taxes,
insurance, and other
|
2,548
|
|
2,025
|
|
25.8%
|
|
9,576
|
|
8,466
|
|
13.1%
|
HOTEL
OPERATING PROFIT (Hotel EBITDA)
|
12,471
|
|
11,523
|
|
8.2%
|
|
58,825
|
|
54,843
|
|
7.3%
|
|
|
Hotel EBITDA
Margin
|
29.34%
|
|
30.61%
|
|
-1.27%
|
|
32.79%
|
|
32.57%
|
|
0.22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority
interest in earnings of consolidated joint
ventures
|
1,387
|
|
1,216
|
|
14.1%
|
|
6,149
|
|
6,046
|
|
1.7%
|
HOTEL
OPERATING PROFIT (Hotel EBITDA),
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding
minority interest in joint ventures
|
$
11,084
|
|
$
10,307
|
|
7.5%
|
|
$
52,676
|
|
$
48,797
|
|
7.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The above pro forma
table assumes the six hotel properties owned and included in
continuing operations at December 31, 2013 but not under renovation
for
|
|
|
three and twelve
months ended December 31, 2013, were owned as of the beginning of
the periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Excluded Hotels Under
Renovation:
|
|
|
Marriott Dallas Plano
Legacy, Courtyard Philadelphia Downtown
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
On January 1, 2013,
Marriott converted from a fiscal year with 12 weeks of operations
in each of the first three quarters of the year and 16 weeks in the
fourth
|
|
|
quarter of the year,
to calendar quarters. The above proforma table assumes
the Marriott-managed properties were reported on calendar quarters
for
|
|
|
all periods
presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASHFORD
HOSPITALITY PRIME, INC.
|
PRO FORMA HOTEL
REVENUE & EBITDA FOR TRAILING TWELVE MONTHS
|
(dollars in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE FOLLOWING PRO
FORMA SEASONALITY TABLE REFLECTS THE EIGHT HOTELS INCLUDED
IN
|
THE COMPANY'S
CONTINUING OPERATIONS AS IF THESE HOTELS WERE OWNED AT THE
BEGINNING
|
OF THE FIRST
COMPARATIVE REPORTING PERIOD.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
2013
|
2013
|
2013
|
|
|
|
|
|
4th
Quarter
|
3rd
Quarter
|
2nd
Quarter
|
1st
Quarter
|
|
TTM
|
|
|
|
|
|
|
|
|
|
Prime
Portfolio
|
|
|
|
|
|
|
Total Hotel
Revenue
|
$
55,087
|
$
60,961
|
$
63,341
|
$
54,086
|
|
$
233,475
|
Hotel
EBITDA
|
$
16,558
|
$
20,849
|
$
23,952
|
$
16,547
|
|
$
77,906
|
Hotel EBITDA
Margin
|
30.06%
|
34.20%
|
37.81%
|
30.59%
|
|
33.37%
|
|
|
|
|
|
|
|
|
|
EBITDA % of Total
TTM
|
21.3%
|
26.8%
|
30.7%
|
21.2%
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
JV Interests in
EBITDA
|
$
1,387
|
$
1,349
|
$
2,056
|
$
1,357
|
|
$
6,149
|
|
|
|
|
|
|
|
|
|
|
NOTE:
|
|
|
|
|
|
|
|
On January 1, 2013,
Marriott converted from a fiscal year with 12 weeks of operations
in each of the first three quarters
|
|
|
of the year and 16
weeks in the fourth quarter of the year, to calendar
quarters. The above proforma tables assume
the
|
|
|
Marriott-managed
properties were reported on calendar quarters for all periods
presented.
|
|
|
|
|
|
|
|
|
|
ASHFORD
HOSPITALITY PRIME, INC.
|
TOTAL
ENTERPRISE VALUE
|
DECEMBER 31,
2013
|
(in
thousands except share price)
|
(Unaudited)
|
|
|
|
|
|
|
|
December
31,
|
|
2013
|
End of quarter
common shares outstanding
|
|
16,129
|
Partnership
units outstanding (common share equivalents)
|
|
8,776
|
Combined common
shares and partnership units outstanding
|
|
24,905
|
Common stock
price at quarter end
|
$
|
18.20
|
Market
capitalization at quarter end
|
$
|
453,271
|
Debt on balance
sheet date
|
$
|
621,882
|
Joint venture
partners' share of consolidated debt
|
$
|
(49,460)
|
Net working
capital (see below)
|
$
|
(145,266)
|
Total enterprise
value (TEV)*
|
$
|
880,427
|
|
|
|
|
|
|
Cash & cash
equivalents
|
$
|
143,776
|
Restricted
cash
|
|
5,951
|
Accounts receivable,
net
|
|
7,029
|
Prepaid
expenses
|
|
1,558
|
Due from affiliates,
net
|
|
(13,030)
|
Due from 3rd party
hotel managers, net
|
|
17,831
|
Total current
assets
|
$
|
163,115
|
|
|
|
Accounts payable, net
& accrued expenses
|
$
|
16,604
|
Dividends
payable
|
|
1,245
|
Total current
liabilities
|
$
|
17,849
|
|
|
|
Net working
capital
|
$
|
145,266
|
|
|
|
|
|
|
* Calculation
varies from TEV in the Advisory Agreement by utilizing shares
outstanding and
|
share price at period end in lieu of average shares outstanding and
average share price.
|
In
addition, the calculation above reduces TEV by Net Working
Capital.
|
|
|
|
Ashford
Hospitality Prime, Inc.
|
Anticipated
Capital Expenditures Calendar (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
2014
|
|
Rooms
|
1st
Quarter
|
2nd
Quarter
|
3rd
Quarter
|
4th
Quarter
|
|
1st
Quarter
|
2nd
Quarter
|
3rd
Quarter
|
4th
Quarter
|
|
|
Actual
|
Actual
|
Actual
|
Actual
|
|
Estimated
|
Estimated
|
Estimated
|
Estimated
|
Hilton LaJolla
Torrey Pines
|
394
|
x
|
x
|
|
|
|
|
|
|
|
Marriott Dallas
Plano Legacy
|
404
|
|
x
|
x
|
x
|
|
x
|
|
|
|
Courtyard
Philadelphia Downtown
|
498
|
|
|
|
x
|
|
x
|
|
|
|
Marriott Seattle
Waterfront
|
358
|
|
|
|
|
|
x
|
x
|
|
|
Renaissance
Tampa
|
293
|
|
|
|
|
|
|
|
x
|
x
|
Courtyard
Seattle
|
250
|
|
|
|
|
|
|
|
|
x
|
(a) Only
hotels which have had or are expected to have significant capital
expenditures that could result in displacement during 2013-2014 are
included in this table.
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Ashford Hospitality Prime, Inc.