Comparable Total Revenues 4.8% Above 2023

Raises Midpoint of Full Year Guidance

BETHESDA, Md., Aug. 1, 2024 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 36 premium hotels and resorts in the United States, today announced results of operations for the quarter ended June 30, 2024.

Second Quarter 2024 Highlights

  • Net Income: Net income was $24.6 million and earnings per diluted share was $0.10.
  • Comparable Revenues: Comparable total revenues were $309.3 million, a 4.8% increase from the second quarter of 2023.
  • Comparable RevPAR: Comparable RevPAR was $229.21, a 2.2% increase from the second quarter of 2023.
  • Comparable Total RevPAR: Comparable RevPAR was $348.37, a 4.5% increase from the second quarter of 2023.
  • Comparable Hotel Adjusted EBITDA: Comparable Hotel Adjusted EBITDA was $99.5 million, a 5.5% increase from the second quarter of 2023.
  • Comparable Hotel Adjusted EBITDA Margin: Comparable Hotel Adjusted EBITDA margin was 32.17%, a 20 basis point increase from the second quarter of 2023.
  • Adjusted EBITDA: Adjusted EBITDA was $92.5 million, a 7.8% increase from the second quarter of 2023.
  • Adjusted FFO: Adjusted FFO was $72.5 million and Adjusted FFO per diluted share was $0.34.
  • Share Repurchases: The Company repurchased 2.5 million shares of its common stock at a weighted average price of $8.39 per share for a total consideration of approximately $20.6 million during the second quarter of 2024.

Recent Developments

  • Brand Conversion: In July 2024, the Company completed the repositioning and rebranding of the Hilton Burlington Lake Champlain as the Hotel Champlain Burlington, Curio Collection by Hilton. The transformation of the 258-room hotel represents a strong return-on-investment opportunity and included the creation of new lifestyle community spaces, a new all-day cafe, an upgraded state-of-the-art fitness center, and a new signature seafood restaurant, Original Skiff Fish & Oysters, in partnership with a local award-winning chef.
  • Share Repurchases: The Company continued share repurchase activity subsequent to the end of the second quarter. To date in 2024, the Company has repurchased 2.8 million shares of its common stock at a weighted average price of $8.36 per share for a total consideration of approximately $23.5 million.

"Second quarter operating results surpassed our expectations. Our strategy to focus on building a larger base of group demand drove strong room revenues and significantly stronger food and beverage revenues, particularly at our larger urban properties. Group pace in the second half of the year is strong, but we remain vigilant given the uncertain economic and election backdrop.

Due to the strong second quarter performance and robust expense controls, we feel comfortable raising the midpoint of our full-year earnings guidance to a range of $0.95 to $1.00 for Adjusted FFO per share and $278 million to $290 million for Adjusted EBITDA based upon a full-year 2024 RevPAR outlook of 1.5% to 3%.

Earlier in the year DiamondRock took steps to reduce our corporate overhead and we are just as focused on optimizing the efficiency of our long-term capital expenditures to retain more cash for accretive investments. For example, we are reducing the scope of the previously announced Bourbon Orleans renovation by nearly 40%. We expect we can deliver an attractive room product with a more reliable return profile without the incremental capital cost and operating expense of adding food and beverage outlets; nevertheless we have preserved this option for the future. We are also keenly focused on recycling capital from non-core properties and proactively working to recycle those potential proceeds into more attractive investments such as share repurchases and new on-strategy investments."

- Jeffrey J. Donnelly, Chief Executive Officer of DiamondRock Hospitality Company

Operating Results 

Please see "Non-GAAP Financial Measures" attached to this press release for an explanation of the terms "EBITDAre," "Adjusted EBITDA," "Hotel Adjusted EBITDA," "Hotel Adjusted EBITDA Margin," "FFO" and "Adjusted FFO" and a reconciliation of these measures to net income. Comparable operating results include all hotels currently owned for all periods presented.  See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts.


Quarter Ended June 30,


Six Months Ended June 30,


2024


2023

Change


2024

2023

Change


($ amounts in millions, except hotel statistics and per share amounts)

Comparable Operating Results (1)









ADR

$          294.55


$          292.67

0.6 %


$          282.85

$          285.15

(0.8) %

Occupancy

77.8 %


76.6 %

1.2 %


73.1 %

71.8 %

1.3 %

RevPAR

$          229.21


$          224.27

2.2 %


$          206.72

$          204.75

1.0 %

Total RevPAR

$          348.37


$          333.24

4.5 %


$          318.65

$          307.91

3.5 %

Room Revenues

$            203.5


$            198.6

2.5 %


$            367.0

$            360.5

1.8 %

Total Revenues

$            309.3


$            295.1

4.8 %


$            565.7

$            542.1

4.4 %

Hotel Adjusted EBITDA

$              99.5


$              94.3

5.5 %


$            160.9

$            157.7

2.0 %

Hotel Adjusted EBITDA Margin

32.17 %


31.97 %

20 bps


28.44 %

29.09 %

(65 bps)

Available Rooms

887,796


885,430

2,366


1,775,319

1,760,556

14,763










Actual Operating Results (2)









Total Revenues

$            309.3


$            291.2

6.2 %


$            565.7

$            534.8

5.8 %

Net income

$              24.6


$              39.1

(37.1) %


$              33.0

$              48.3

(31.7) %

Earnings per diluted share

$              0.10


$              0.17

(41.2) %


$              0.13

$              0.20

(35.0) %

Adjusted EBITDA

$              92.5


$              85.8

7.8 %


$            146.1

$            141.1

3.5 %

Adjusted FFO

$              72.5


$              67.3

7.7 %


$            108.5

$            105.3

3.0 %

Adjusted FFO per diluted share

$              0.34


$              0.32

6.3 %


$              0.51

$              0.49

4.1 %



(1)

Amounts represent the pre-acquisition operating results for Chico Hot Springs Resort from January 1, 2023 to June 30, 2023.  The pre-acquisition operating results were obtained from the seller of the hotel during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.



(2)

Actual operating results include the operating results of all hotels for the Company's respective ownership periods.

Capital Expenditures

The Company has invested approximately $35.8 million in capital improvements at its hotels during the six months ended June 30, 2024. The Company expects to spend approximately $90 to $100 million on capital improvements at its hotels in 2024.  Significant projects in 2024 include the following:

  • Hotel Champlain Burlington: The Company completed the rebranding and repositioning of the Hilton Burlington Lake Champlain to Hotel Champlain Burlington, a Curio Collection by Hilton hotel in July 2024.
  • Westin San Diego Bayview: The Company substantially completed a comprehensive renovation of the hotel's guestrooms during the second quarter of 2024.
  • Orchards Inn Sedona: The Company expects to commence a repositioning of Orchards Inn as the Cliffs at L'Auberge in the fourth quarter of 2024. The project is expected to be completed in 2025 and will integrate the hotel with the adjacent L'Auberge de Sedona and include construction of a new pool connecting the two properties, renovation of the guestrooms and creation of a new arrival experience and new outdoor event space.
  • The Landing Lake Tahoe Resort and Spa: The Company expects to commence a renovation of the property to accommodate 14 new keys and construct an adjacent indoor/outdoor event space to be completed in 2025.

Balance Sheet and Liquidity

The Company ended the quarter with $629.5 million of liquidity, comprised of $125.2 million of unrestricted corporate cash, $104.3 million of unrestricted cash at its hotels and full availability on its $400 million senior unsecured credit facility.  As of June 30, 2024, the Company had $1.2 billion of total debt outstanding, which consisted of $800.0 million of unsecured term loans and $373.3 million of property-specific, non-recourse mortgage debt.  

Share Repurchase Program

In May 2024, the Company's Board of Directors approved a new $200 million share repurchase program through May 1, 2026, which replaced the existing share repurchase program. During the quarter ended June 30, 2024, the Company repurchased 2.5 million shares of its common stock at an average price of $8.39 per share for a total purchase price of $20.6 million. Subsequent to quarter end, the Company repurchased an additional 0.4 million shares of its common stock at an average price of $8.17 per share for a total purchase price of $2.9 million.  The Company currently has $176.5 million of remaining authorized capacity under the share repurchase program.

Dividends

The Company declared a quarterly cash dividend of $0.03 per common share, which was paid on July 12, 2024 to shareholders of record as of June 28, 2024.  The Company paid a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock on June 28, 2024 to shareholders of record as of June 18, 2024.

Guidance

The Company is providing annual guidance for 2024, but does not undertake to update it for any developments in its business. Achievement of the anticipated results is subject to the risks disclosed in the Company's filings with the U.S. Securities and Exchange Commission.

The Company is revising its annual guidance for 2024 and now expects full year 2024 results to be as follows:   


Previous Guidance

Revised Guidance

Change at
Midpoint


Metric

Low End

High End

Low End

High End



Comparable RevPAR Growth

2.0 %

4.0 %

1.5 %

3.0 %

(0.75 %)


Adjusted EBITDA

$270 million

$290 million

$278 million

$290 million

+ $4.0 million


Adjusted FFO

$194 million

$214 million

$201.5 million

$213.5 million

+ $3.5 million


Adjusted FFO per share (based
on 212.5 million diluted shares)

$0.91 per
share

$1.00 per
share

$0.95 per
share

$1.00 per
share

+$0.02 per
share


 

The guidance above incorporates the following assumptions:

  • Corporate expenses of $30.5 million to $31.5 million, excluding executive transition costs which are excluded from Adjusted EBITDA and Adjusted FFO;
  • Interest expense of $65.2 million to $66.2 million;
  • Income tax expense of $0.5 million to $1.5 million; and
  • 3,570,423 available rooms.

Earnings Call

The Company will host a conference call to discuss its second quarter results on Friday, August 2, 2024, at 9:00 a.m. Eastern Time (ET).  The conference call will be accessible by telephone and through the internet.  Interested individuals are requested to register for the call by visiting https://investor.drhc.com. A replay of the conference call webcast will be archived and available online.

About the Company

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets.  The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.  For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com. 

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," "forecast," "plan" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the adverse impact of any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; national and local economic and business conditions, including the potential for additional terrorist attacks, that will affect occupancy rates at the Company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

DIAMONDROCK HOSPITALITY COMPANY 


CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)



June 30, 2024


December 31, 2023

ASSETS

(unaudited)



Property and equipment, net

$                  2,734,626


$                 2,755,195

Right-of-use assets

96,823


97,692

Restricted cash

45,205


45,576

Due from hotel managers

171,793


144,689

Prepaid and other assets

74,986


73,940

Cash and cash equivalents

125,219


121,595

Total assets

$                  3,248,652


$                 3,238,687





LIABILITIES AND EQUITY




Liabilities:




Debt, net of unamortized debt issuance costs

1,172,479


1,177,005

Lease liabilities

113,779


112,866

Due to hotel managers

131,683


116,522

Deferred rent

71,554


69,209

Unfavorable contract liabilities, net

59,037


59,866

Accounts payable and accrued expenses

36,887


39,563

Distributions declared and unpaid

6,067


6,324

Deferred income related to key money, net

8,134


8,349

Total liabilities

1,599,620


1,589,704

Equity:




Preferred stock, $0.01 par value; 10,000,000 shares authorized;




    8.250% Series A Cumulative Redeemable Preferred Stock (liquidation
    preference $25.00 per share), 4,760,000 shares issued and outstanding at June
    30, 2024 and December 31, 2023

48


48

    Common stock, $0.01 par value; 400,000,000 shares authorized; 207,918,179
    and 209,627,197 shares issued and outstanding at June 30, 2024 and December
    31, 2023, respectively

2,079


2,096

Additional paid-in capital

2,274,223


2,291,297

Accumulated other comprehensive loss

(2,077)


(2,036)

Distributions in excess of earnings

(633,919)


(649,330)

Total stockholders' equity

1,640,354


1,642,075

Noncontrolling interests

8,678


6,908

Total equity

1,649,032


1,648,983

Total liabilities and equity

$                  3,248,652


$                 3,238,687

  

DIAMONDROCK HOSPITALITY COMPANY

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)



Three Months Ended June 30,


Six Months Ended June 30,


2024


2023


2024


2023

Revenues:








Rooms

$              203,487


$              197,318


$             366,994


$              357,991

Food and beverage

78,111


68,369


146,492


128,146

Other

27,682


25,560


52,217


48,663

Total revenues

309,280


291,247


565,703


534,800

Operating Expenses:








Rooms

47,585


45,116


91,553


85,319

Food and beverage

50,717


45,908


97,956


89,058

Other departmental and support expenses

67,817


65,445


132,417


127,413

Management fees

8,008


6,885


13,318


11,873

Franchise fees

10,567


9,403


19,593


17,480

Other property-level expenses

27,188


26,934


53,806


51,051

Depreciation and amortization

27,873


27,840


56,186


55,312

Impairment losses

—


941


—


941

Corporate expenses

28,519


8,284


37,423


16,151

Business interruption insurance income

—


(110)


—


(110)

Total operating expenses, net

268,274


236,646


502,252


454,488









Interest expense

16,202


15,567


32,448


32,739

Interest (income) and other (income) expense, net

(1,195)


(522)


(2,264)


(945)

  Total other expenses, net

15,007


15,045


30,184


31,794

Income before income taxes

25,999


39,556


33,267


48,518

Income tax expense

(1,368)


(422)


(278)


(196)

Net income

24,631


39,134


32,989


48,322

Less:  Net income attributable to noncontrolling
interests

(101)


(169)


(131)


(201)

Net income attributable to the Company

24,530


38,965


32,858


48,121

Distributions to preferred stockholders

(2,454)


(2,454)


(4,908)


(4,908)

Net income attributable to common
stockholders

$                22,076


$                36,511


$               27,950


$                43,213

Earnings per share:








Earnings per share available to common
stockholders - basic

$                    0.10


$                    0.17


$                   0.13


$                    0.20

Earnings per share available to common
stockholders - diluted

$                    0.10


$                    0.17


$                   0.13


$                    0.20









Weighted-average number of common shares
outstanding:








Basic

211,195,463


211,673,828


211,432,403


211,543,398

Diluted

212,016,445


212,161,950


212,276,815


212,092,590

 

Non-GAAP Financial Measures

We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP.  EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company.

Use and Limitations of Non-GAAP Financial Measures

Our management and Board of Directors use EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. The use of these non-GAAP financial measures has certain limitations. These non-GAAP financial measures as presented by us, may not be comparable to non-GAAP financial measures as calculated by other real estate companies. These measures do not reflect certain expenses or expenditures that we incurred and will incur, such as depreciation, interest and capital expenditures. We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable U.S. GAAP financial measures, and our consolidated statements of operations and comprehensive income and consolidated statements of cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures.

These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with U.S. GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by U.S. GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our U.S. GAAP results and the reconciliations to the corresponding U.S. GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.

EBITDA and EBITDAre

EBITDA represents net income (calculated in accordance with U.S. GAAP) excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization.  The Company computes EBITDAre in accordance with the National Association of Real Estate Investment Trusts ("Nareit") guidelines, as defined in its September 2017 white paper "Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate."  EBITDAre represents net income (calculated in accordance with U.S. GAAP) adjusted for: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; (4) gains or losses on the disposition of depreciated property including gains or losses on change of control; (5) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; and (6) adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates.

We believe EBITDA and EBITDAre are useful to an investor in evaluating our operating performance because they help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization, and in the case of EBITDAre, impairment and gains or losses on dispositions of depreciated property) from our operating results. In addition, covenants included in our debt agreements use EBITDA as a measure of financial compliance. We also use EBITDA and EBITDAre as measures in determining the value of hotel acquisitions and dispositions.

FFO

The Company computes FFO in accordance with standards established by Nareit, which defines FFO as net income (calculated in accordance with U.S. GAAP) excluding gains or losses from sales of properties and impairment losses, plus real estate related depreciation and amortization. The Company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it is a measure of the Company's operations without regard to specified non-cash items, such as real estate related depreciation and amortization and gains or losses on the sale of assets.  The Company also uses FFO as one measure in assessing its operating results.

Adjustments to EBITDAre and FFO

We adjust EBITDAre and FFO when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted EBITDA and Adjusted FFO when combined with U.S. GAAP net income, EBITDAre and FFO, is beneficial to an investor's complete understanding of our consolidated and property-level operating performance.  We adjust EBITDAre and FFO for the following items:

  • Non-Cash Lease Expense and Other Amortization: We exclude the non-cash expense incurred from the straight line recognition of expense from our ground leases and other contractual obligations and the non-cash amortization of our favorable and unfavorable contracts, originally recorded in conjunction with certain hotel acquisitions. We exclude these non-cash items because they do not reflect the actual cash amounts due to the respective lessors in the current period and they are of lesser significance in evaluating our actual performance for that period.
     
  • Cumulative Effect of a Change in Accounting Principle: The Financial Accounting Standards Board promulgates new accounting standards that require or permit the consolidated statement of operations and comprehensive income to reflect the cumulative effect of a change in accounting principle. We exclude the effect of these adjustments, which include the accounting impact from prior periods, because they do not reflect the Company's actual underlying performance for the current period.
     
  • Gains or Losses from Early Extinguishment of Debt: We exclude the effect of gains or losses recorded on the early extinguishment of debt because these gains or losses result from transaction activity related to the Company's capital structure that we believe are not indicative of the ongoing operating performance of the Company or our hotels.
     
  • Hotel Acquisition Costs: We exclude hotel acquisition costs expensed during the period because we believe these transaction costs are not reflective of the ongoing performance of the Company or our hotels.
     
  • Severance Costs: We exclude corporate severance costs, or reversals thereof, incurred with the termination of corporate-level employees and severance costs incurred at our hotels related to lease terminations or structured severance programs because we believe these costs do not reflect the ongoing performance of the Company or our hotels.
     
  • Hotel Manager Transition Items: We exclude the transition items associated with a change in hotel manager because we believe these items do not reflect the ongoing performance of the Company or our hotels.
     
  • Hotel Pre-Opening Costs: We exclude the pre-opening costs associated with the redevelopment or rebranding of a hotel because we believe these items do not reflect the ongoing performance of the Company or our hotels.
     
  • Other Items: From time to time we incur costs or realize gains that we consider outside the ordinary course of business and that we do not believe reflect the ongoing performance of the Company or our hotels. Such items may include, but are not limited to the following: lease preparation costs incurred to prepare vacant space for marketing; management or franchise contract termination fees; gains or losses from legal settlements; costs incurred related to natural disasters; and gains on property insurance claim settlements, other than income related to business interruption insurance.

In addition, to derive Adjusted FFO we exclude any unrealized fair value adjustments to interest rate swaps.  We exclude these non-cash amounts because they do not reflect the underlying performance of the Company.

Hotel Adjusted EBITDA

We believe that Hotel Adjusted EBITDA provides our investors a useful financial measure to evaluate our hotel operating performance, excluding the impact of our capital structure (primarily interest), our asset base (primarily depreciation and amortization), and our corporate-level expenses.  With respect to Hotel Adjusted EBITDA, we believe that excluding the effect of corporate-level expenses provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control.  We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues. 

Reconciliations of Non-GAAP Measures

EBITDA, EBITDAre, Adjusted EBITDA and Hotel Adjusted EBITDA

The following tables are reconciliations of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA and Hotel Adjusted EBITDA (in thousands):           


Three Months Ended June 30,


Six Months Ended June 30,          


2024


2023



2024


2023

Net income

$                24,631


$                39,134



$                32,989


$                48,322

Interest expense

16,202


15,567



32,448


32,739

Income tax expense

1,368


422



278


196

Real estate related depreciation and amortization

27,873


27,840



56,186


55,312

EBITDA

70,074


82,963



121,901


136,569

Impairment losses

—


941



—


941

EBITDAre

70,074


83,904



121,901


137,510

Non-cash lease expense and other amortization

1,555


1,537



3,073


3,087

Severance costs

20,362


—



20,362


—

Hotel pre-opening costs

535


326



769


542

Adjusted EBITDA

92,526


85,767



146,105


141,139

Corporate expenses

8,157


8,284



17,061


16,151

Interest (income) and other (income) expense, net

(1,195)


(522)



(2,264)


(945)

Hotel Adjusted EBITDA

$                99,488


$                93,529



$              160,902


$              156,345

 


Full Year 2024 Guidance


Low End


High End

Net income

$                     73,955


$                     87,955

Interest expense

66,183


65,183

Income tax expense

500


1,500

Real estate related depreciation and amortization

110,000


108,000

EBITDA/EBITDAre

250,638


262,638

Non-cash lease expense and other amortization

6,200


6,200

Severance costs

20,362


20,362

Hotel pre-opening costs

800


800

Adjusted EBITDA

$                   278,000


$                   290,000

 

FFO and Adjusted FFO

The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands): 


Three Months Ended June 30,


Six Months Ended June 30,          


2024


2023



2024


2023

Net income

$                24,631


$                39,134



$                32,989


$                48,322

Real estate related depreciation and amortization

27,873


27,840



56,186


55,312

Impairment losses

—


941



—


941

FFO

52,504


67,915



89,175


104,575

Distribution to preferred stockholders

(2,454)


(2,454)



(4,908)


(4,908)

FFO available to common stock and unit holders

50,050


65,461



84,267


99,667

Non-cash lease expense and other amortization

1,555


1,537



3,073


3,087

Severance costs

20,362


—



20,362


—

Hotel pre-opening costs

535


326



769


542

Fair value adjustments to interest rate swaps

—


19



—


2,033

Adjusted FFO available to common stock and
unit holders

$                72,502


$                67,343



$              108,471


$              105,329

Adjusted FFO available to common stock and
unit holders, per diluted share

$                    0.34


$                    0.32



$                    0.51


$                    0.49

 


Full Year 2024 Guidance


Low End


High End

Net income

$                     73,955


$                     87,955

Real estate related depreciation and amortization

110,000


108,000

FFO

183,955


195,955

Distribution to preferred stockholders

(9,817)


(9,817)

FFO available to common stock and unit holders

174,138


186,138

Non-cash lease expense and other amortization

6,200


6,200

Severance costs

20,362


20,362

Hotel pre-opening costs

800


800

Adjusted FFO available to common stock and unit holders

$                   201,500


$                   213,500

Adjusted FFO available to common stock and unit holders, per diluted share

$                         0.95


$                         1.00

 

Reconciliation of Comparable Operating Results

The following presents the revenues, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin together with comparable prior year results (in thousands):      


Three Months Ended June 30,

Six Months Ended June 30,


2024


2023


2024


2023

Revenues

$          309,280


$          291,247


$          565,703


$          534,800

Hotel revenues from prior ownership (1)

—


3,812


—


7,293

Comparable Revenues

$          309,280


$          295,059


$          565,703


$          542,093









Hotel Adjusted EBITDA

$            99,488


$            93,529


$          160,902


$          156,345

Hotel Adjusted EBITDA from prior ownership (1)

—


806


—


1,326

Comparable Hotel Adjusted EBITDA

$            99,488


$            94,335


$          160,902


$          157,671









Hotel Adjusted EBITDA Margin

32.17 %


32.11 %


28.44 %


29.23 %

Comparable Hotel Adjusted EBITDA Margin

32.17 %


31.97 %


28.44 %


29.09 %



(1)

Amounts represent the pre-acquisition operating results for Chico Hot Springs Resort from January 1, 2023 to June 30, 2023.  The pre-acquisition operating results were obtained from the seller of the hotel during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.

 

Selected Quarterly Comparable Operating Information

The following tables are presented to provide investors with selected quarterly comparable operating information.  The operating information includes historical quarterly operating results for our portfolio.


Quarter 1, 2023

Quarter 2, 2023

Quarter 3, 2023

Quarter 4, 2023

Full Year 2023

ADR

$          276.43

$          292.67

$          273.28

$          282.57

$          281.36

Occupancy

66.9 %

76.6 %

76.4 %

68.4 %

72.1 %

RevPAR

$          185.00

$          224.27

$          208.66

$          193.16

$          202.81

Total RevPAR

$          282.28

$          333.24

$          310.54

$          294.05

$          305.08

Revenues (in thousands)

$        247,034

$        295,059

$        278,162

$        263,547

$     1,083,802

Hotel Adjusted EBITDA (in thousands)

$          63,336

$          94,335

$          80,492

$          64,817

$        302,980

Hotel Adjusted EBITDA Margin

25.64 %

31.97 %

28.94 %

24.59 %

27.96 %

Available Rooms

875,126

885,430

895,743

896,260

3,552,559

 


Quarter 1, 2024

Quarter 2, 2024

ADR

$          269.53

$          294.55

Occupancy

68.4 %

77.8 %

RevPAR

$          184.23

$          229.21

Total RevPAR

$          288.92

$          348.37

Revenues (in thousands)

$        256,423

$        309,280

Hotel Adjusted EBITDA (in thousands)

$          61,414

$          99,488

Hotel Adjusted EBITDA Margin

23.95 %

32.17 %

Available Rooms

887,523

887,796

 

Market Capitalization as of June 30, 2024

(in thousands)

Enterprise Value






Common equity capitalization (at June 30, 2024 closing price of $8.45/share)


$              1,787,852

Preferred equity capitalization (at liquidation value of $25.00/share)


119,000

Consolidated debt (face amount)


1,173,285

Cash and cash equivalents


(125,219)

Total enterprise value


$              2,954,918

Share Reconciliation






Common shares outstanding


207,918

Operating partnership units


1,134

Unvested restricted stock held by management and employees


624

Share grants under deferred compensation plan


1,904

Combined shares and units


211,580

 

Debt Summary as of June 30, 2024

(dollars in thousands)

Loan


Interest Rate


Term


Outstanding
Principal


Maturity

Courtyard New York Manhattan / Midtown East


4.40 %


Fixed


$         73,416


August 2024

Worthington Renaissance Fort Worth Hotel


3.66 %


Fixed


72,756


May 2025

Hotel Clio


4.33 %


Fixed


55,382


July 2025

Westin Boston Seaport District


4.36 %


Fixed


171,731


November 2025

Unsecured term loan


SOFR + 1.35% (1)


Variable


500,000


January 2028

Unsecured term loan


SOFR + 1.35% (1)


Variable


300,000


January 2025 (2)

Senior unsecured credit facility


SOFR + 1.40%


Variable


—


September 2026 (2)

Total debt






1,173,285



     Unamortized debt issuance costs (3)






(806)



Debt, net of unamortized debt issuance costs




$    1,172,479












Weighted-average interest rate of fixed rate debt


4.09 %







Total weighted-average interest rate (4)


5.22 %









(1)

Interest rate as of June 30, 2024 was 6.80%, which excludes effect of interest rate swaps.

(2)

Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.

(3)

Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Other Assets on the accompanying consolidated balance sheet.

(4)

Weighted-average interest rate includes effect of interest rate swaps.

 


Operating Statistics – Second Quarter


 Number
of Rooms

ADR


Occupancy


RevPAR


2Q 2024

2Q 2023

B/(W) 2023


2Q 2024

2Q 2023

B/(W) 2023


2Q 2024

2Q 2023

B/(W) 2023



























Atlanta Marriott Alpharetta

318

$         156.89

$         150.26

4.4 %


69.7 %

73.5 %

(3.8) %


$         109.41

$         110.41

(0.9) %

Bourbon Orleans Hotel

220

$         243.76

$         242.09

0.7 %


78.6 %

83.7 %

(5.1) %


$         191.53

$         202.69

(5.5) %

Cavallo Point, The Lodge at the Golden Gate

142

$         574.78

$         613.11

(6.3) %


61.7 %

56.8 %

4.9 %


$         354.87

$         348.54

1.8 %

Chicago Marriott Downtown Magnificent Mile

1,200

$         279.63

$         273.80

2.1 %


67.4 %

70.8 %

(3.4) %


$         188.37

$         193.76

(2.8) %

Chico Hot Springs Resort & Day Spa

117

$         201.95

$         178.19

13.3 %


72.5 %

68.4 %

4.1 %


$         146.43

$         121.87

20.2 %

Courtyard Denver Downtown

177

$         221.52

$         233.95

(5.3) %


83.7 %

83.3 %

0.4 %


$         185.35

$         194.88

(4.9) %

Courtyard New York Manhattan/Fifth Avenue

189

$         316.32

$         306.37

3.2 %


88.9 %

94.7 %

(5.8) %


$         281.34

$         290.00

(3.0) %

Courtyard New York Manhattan/Midtown East

321

$         359.88

$         348.02

3.4 %


94.0 %

92.4 %

1.6 %


$         338.22

$         321.54

5.2 %

Embassy Suites by Hilton Bethesda

272

$         190.12

$         183.55

3.6 %


83.5 %

80.0 %

3.5 %


$         158.69

$         146.80

8.1 %

Havana Cabana Key West

106

$         287.85

$         293.87

(2.0) %


83.1 %

86.7 %

(3.6) %


$         239.30

$         254.75

(6.1) %

Henderson Beach Resort

269

$         464.72

$         500.73

(7.2) %


74.4 %

74.1 %

0.3 %


$         345.84

$         370.82

(6.7) %

Henderson Park Inn

37

$         684.85

$         680.86

0.6 %


84.9 %

87.2 %

(2.3) %


$         581.11

$         593.91

(2.2) %

Hilton Garden Inn New York/Times Square Central

282

$         284.16

$         283.37

0.3 %


89.5 %

85.6 %

3.9 %


$         254.22

$         242.70

4.7 %

Hotel Champlain Burlington

258

$         240.84

$         242.28

(0.6) %


75.9 %

79.0 %

(3.1) %


$         182.85

$         191.35

(4.4) %

Hotel Clio

199

$         327.64

$         326.27

0.4 %


83.7 %

74.2 %

9.5 %


$         274.30

$         241.96

13.4 %

Hotel Emblem San Francisco

96

$         184.02

$         221.08

(16.8) %


62.5 %

66.8 %

(4.3) %


$         115.04

$         147.71

(22.1) %

Kimpton Hotel Palomar Phoenix

242

$         218.99

$         204.26

7.2 %


76.2 %

78.2 %

(2.0) %


$         166.96

$         159.72

4.5 %

Kimpton Shorebreak Fort Lauderdale Beach Resort

96

$         182.23

$         202.15

(9.9) %


78.5 %

65.4 %

13.1 %


$         142.99

$         132.13

8.2 %

Kimpton Shorebreak Huntington Beach Resort

157

$         326.16

$         337.46

(3.3) %


85.7 %

83.3 %

2.4 %


$         279.54

$         280.94

(0.5) %

L'Auberge de Sedona

88

$         951.60

$         979.53

(2.9) %


74.2 %

67.9 %

6.3 %


$         705.97

$         664.92

6.2 %

Lake Austin Spa Resort

40

$      1,065.58

$      1,101.21

(3.2) %


70.6 %

66.9 %

3.7 %


$         752.64

$         736.66

2.2 %

Margaritaville Beach House Key West

186

$         371.14

$         396.70

(6.4) %


88.5 %

90.0 %

(1.5) %


$         328.50

$         356.95

(8.0) %

Orchards Inn Sedona

70

$         301.79

$         303.14

(0.4) %


68.1 %

69.9 %

(1.8) %


$         205.38

$         211.91

(3.1) %

Salt Lake City Marriott Downtown at City Creek

510

$         196.94

$         190.99

3.1 %


73.0 %

61.1 %

11.9 %


$         143.79

$         116.64

23.3 %

The Dagny Boston

403

$         302.27

$         327.33

(7.7) %


89.3 %

89.1 %

0.2 %


$         270.03

$         291.81

(7.5) %

The Gwen

311

$         331.59

$         339.69

(2.4) %


81.5 %

78.4 %

3.1 %


$         270.37

$         266.27

1.5 %

The Hythe Vail

344

$         266.05

$         261.14

1.9 %


50.8 %

34.3 %

16.5 %


$         135.12

$           89.56

50.9 %

The Landing Lake Tahoe Resort & Spa

82

$         361.62

$         390.10

(7.3) %


64.9 %

50.6 %

14.3 %


$         234.60

$         197.24

18.9 %

The Lindy Renaissance Charleston Hotel

167

$         388.06

$         393.54

(1.4) %


94.0 %

94.1 %

(0.1) %


$         364.77

$         370.39

(1.5) %

The Lodge at Sonoma Resort

182

$         435.59

$         497.28

(12.4) %


72.4 %

65.2 %

7.2 %


$         315.21

$         324.37

(2.8) %

Tranquility Bay Beachfront Resort

103

$         605.29

$         663.23

(8.7) %


79.7 %

79.9 %

(0.2) %


$         482.14

$         529.64

(9.0) %

Westin Boston Waterfront

793

$         281.74

$         267.62

5.3 %


89.8 %

91.4 %

(1.6) %


$         253.03

$         244.72

3.4 %

Westin Fort Lauderdale Beach Resort

433

$         247.85

$         258.71

(4.2) %


80.8 %

73.7 %

7.1 %


$         200.38

$         190.66

5.1 %

Westin San Diego Bayview

436

$         236.19

$         205.93

14.7 %


75.3 %

80.0 %

(4.7) %


$         177.91

$         164.71

8.0 %

Westin Washington D.C. City Center

410

$         281.63

$         250.82

12.3 %


77.6 %

78.0 %

(0.4) %


$         218.41

$         195.73

11.6 %

Worthington Renaissance Fort Worth Hotel

504

$         217.36

$         198.93

9.3 %


76.6 %

79.1 %

(2.5) %


$         166.58

$         157.31

5.9 %

Comparable Total (1)

9,760

$         294.55

$         292.67

0.6 %


77.8 %

76.6 %

1.2 %


$         229.21

$         224.27

2.2 %
















(1)

 Amounts include the pre-acquisition operating results of Chico Hot Springs Resort & Day Spa acquired in 2023. 

 


Operating Statistics – Year to Date


 Number
of Rooms

ADR


Occupancy


RevPAR


YTD 2024

YTD 2023

B/(W) 2023


YTD 2024

YTD 2023

B/(W) 2023


YTD 2024

YTD 2023

B/(W) 2023



























Atlanta Marriott Alpharetta

318

$         160.91

$         154.36

4.2 %


64.4 %

68.0 %

(3.6) %


$         103.69

$         105.04

(1.3) %

Bourbon Orleans Hotel

220

$         252.55

$         250.91

0.7 %


77.6 %

82.3 %

(4.7) %


$         196.01

$         206.55

(5.1) %

Cavallo Point, The Lodge at the Golden Gate

142

$         563.98

$         591.51

(4.7) %


56.4 %

54.8 %

1.6 %


$         318.00

$         324.01

(1.9) %

Chicago Marriott Downtown Magnificent Mile

1,200

$         236.23

$         243.61

(3.0) %


56.9 %

55.2 %

1.7 %


$         134.30

$         134.56

(0.2) %

Chico Hot Springs Resort & Day Spa

117

$         191.05

$         171.34

11.5 %


72.1 %

70.8 %

1.3 %


$         137.79

$         121.30

13.6 %

Courtyard Denver Downtown

177

$         192.63

$         209.18

(7.9) %


75.7 %

76.2 %

(0.5) %


$         145.88

$         159.47

(8.5) %

Courtyard New York Manhattan/Fifth Avenue

189

$         262.20

$         254.77

2.9 %


89.0 %

94.1 %

(5.1) %


$         233.30

$         239.68

(2.7) %

Courtyard New York Manhattan/Midtown East

321

$         305.05

$         292.46

4.3 %


92.6 %

90.2 %

2.4 %


$         282.36

$         263.73

7.1 %

Embassy Suites by Hilton Bethesda

272

$         177.12

$         165.60

7.0 %


71.2 %

70.9 %

0.3 %


$         126.10

$         117.35

7.5 %

Havana Cabana Key West

106

$         348.71

$         336.84

3.5 %


84.4 %

87.3 %

(2.9) %


$         294.27

$         294.11

0.1 %

Henderson Park Resort

269

$         415.52

$         450.86

(7.8) %


57.5 %

58.7 %

(1.2) %


$         239.12

$         264.61

(9.6) %

Henderson Park Inn

37

$         574.38

$         615.29

(6.6) %


71.0 %

65.0 %

6.0 %


$         407.88

$         399.75

2.0 %

Hilton Garden Inn New York/Times Square Central

282

$         232.97

$         238.67

(2.4) %


89.6 %

85.5 %

4.1 %


$         208.70

$         204.00

2.3 %

Hotel Champlain Burlington

258

$         201.16

$         208.51

(3.5) %


66.1 %

71.1 %

(5.0) %


$         132.90

$         148.29

(10.4) %

Hotel Clio

199

$         300.99

$         313.65

(4.0) %


74.5 %

68.0 %

6.5 %


$         224.14

$         213.28

5.1 %

Hotel Emblem San Francisco

96

$         218.08

$         252.09

(13.5) %


60.7 %

65.3 %

(4.6) %


$         132.27

$         164.54

(19.6) %

Kimpton Hotel Palomar Phoenix

242

$         247.69

$         251.11

(1.4) %


79.1 %

75.9 %

3.2 %


$         195.90

$         190.70

2.7 %

Kimpton Shorebreak Fort Lauderdale Beach Resort

96

$         223.27

$         242.58

(8.0) %


83.8 %

76.4 %

7.4 %


$         187.08

$         185.27

1.0 %

Kimpton Shorebreak Huntington Beach Resort

157

$         307.37

$         316.01

(2.7) %


82.1 %

79.5 %

2.6 %


$         252.39

$         251.10

0.5 %

L'Auberge de Sedona

88

$         909.10

$         969.79

(6.3) %


69.6 %

62.7 %

6.9 %


$         632.50

$         608.25

4.0 %

Lake Austin Spa Resort

40

$      1,036.17

$      1,110.65

(6.7) %


64.1 %

61.3 %

2.8 %


$         664.40

$         680.96

(2.4) %

Margaritaville Beach House Key West

186

$         443.07

$         444.25

(0.3) %


90.1 %

87.6 %

2.5 %


$         399.42

$         388.99

2.7 %

Orchards Inn Sedona

70

$         299.20

$         297.81

0.5 %


62.6 %

64.7 %

(2.1) %


$         187.32

$         192.81

(2.8) %

Salt Lake City Marriott Downtown at City Creek

510

$         197.58

$         195.54

1.0 %


69.4 %

64.1 %

5.3 %


$         137.07

$         125.36

9.3 %

The Dagny Boston

403

$         252.32

$         292.45

(13.7) %


83.1 %

69.2 %

13.9 %


$         209.63

$         202.29

3.6 %

The Gwen

311

$         278.74

$         286.85

(2.8) %


73.7 %

71.8 %

1.9 %


$         205.54

$         206.01

(0.2) %

The Hythe Vail

344

$         484.14

$         520.67

(7.0) %


63.6 %

59.1 %

4.5 %


$         307.95

$         307.67

0.1 %

The Landing Lake Tahoe Resort & Spa

82

$         349.50

$         379.67

(7.9) %


55.8 %

40.8 %

15.0 %


$         194.98

$         155.02

25.8 %

The Lindy Renaissance Charleston Hotel

167

$         355.33

$         365.12

(2.7) %


90.3 %

89.3 %

1.0 %


$         320.80

$         326.19

(1.7) %

The Lodge at Sonoma Resort

182

$         387.62

$         435.66

(11.0) %


58.9 %

59.9 %

(1.0) %


$         228.16

$         260.85

(12.5) %

Tranquility Bay Beachfront Resort 

103

$         704.50

$         735.05

(4.2) %


77.6 %

77.0 %

0.6 %


$         546.47

$         565.82

(3.4) %

Westin Boston Waterfront

793

$         252.99

$         239.76

5.5 %


83.9 %

81.6 %

2.3 %


$         212.21

$         195.76

8.4 %

Westin Fort Lauderdale Beach Resort

433

$         290.74

$         307.21

(5.4) %


84.2 %

80.8 %

3.4 %


$         244.94

$         248.15

(1.3) %

Westin San Diego Bayview

436

$         228.13

$         210.13

8.6 %


68.3 %

77.0 %

(8.7) %


$         155.87

$         161.75

(3.6) %

Westin Washington D.C. City Center

410

$         251.10

$         234.16

7.2 %


73.4 %

73.0 %

0.4 %


$         184.20

$         171.01

7.7 %

Worthington Renaissance Fort Worth Hotel

504

$         213.47

$         197.81

7.9 %


73.3 %

76.6 %

(3.3) %


$         156.46

$         151.51

3.3 %

Comparable Total (1)

9,760

$         282.85

$         285.15

(0.8) %


73.1 %

71.8 %

1.3 %


$         206.72

$         204.75

1.0 %














(1)

Amounts include the pre-acquisition operating results of Chico Hot Springs Resort & Day Spa acquired in 2023. 

 



Hotel Adjusted EBITDA Reconciliation - Second Quarter 2024








Net Income
/ (Loss)

Plus:

Plus:

Plus:

Equals: Hotel
Adjusted EBITDA



Total Revenues


Depreciation

Interest Expense

Adjustments (1)

Atlanta Marriott Alpharetta


$                   4,577


$                   1,360

$                      347

$                         —

$                         —

$                   1,707

Bourbon Orleans Hotel


$                   4,828


$                   1,135

$                      883

$                         —

$                           3

$                   2,021

Cavallo Point, The Lodge at the Golden Gate


$                 12,647


$                   2,241

$                   1,409

$                         —

$                         94

$                   3,744

Chicago Marriott Downtown Magnificent Mile


$                 33,458


$                   8,301

$                   3,058

$                           6

$                     (397)

$                 10,968

Chico Hot Springs Resort & Day Spa


$                   3,657


$                        58

$                      396

$                         —

$                           2

$                      456

Courtyard Denver Downtown


$                   3,297


$                   1,175

$                      331

$                         —

$                         —

$                   1,506

Courtyard New York Manhattan/Fifth Avenue


$                   4,962


$                      378

$                      324

$                         —

$                       253

$                      955

Courtyard New York Manhattan/Midtown East


$                 10,186


$                   2,305

$                      490

$                       870

$                         —

$                   3,665

Embassy Suites by Hilton Bethesda


$                   4,430


$                     (930)

$                      638

$                         —

$                    1,454

$                   1,162

Havana Cabana Key West


$                   3,172


$                      548

$                      444

$                         —

$                         —

$                      992

Henderson Beach Resort


$                 15,016


$                   3,854

$                   1,091

$                         —

$                         —

$                   4,945

Henderson Park Inn


$                   3,029


$                   1,345

$                      268

$                         —

$                         —

$                   1,613

Hilton Garden Inn New York/Times Square Central


$                   7,295


$                   1,517

$                      650

$                         —

$                         —

$                   2,167

Hotel Champlain Burlington


$                   5,710


$                      604

$                      621

$                         —

$                         —

$                   1,225

Hotel Clio


$                   8,373


$                   1,472

$                      799

$                       618

$                           5

$                   2,894

Hotel Emblem San Francisco


$                   1,247


$                     (313)

$                      313

$                         —

$                         —

$                        —

Kimpton Hotel Palomar Phoenix


$                   5,997


$                      660

$                      464

$                         —

$                       193

$                   1,317

Kimpton Shorebreak Fort Lauderdale Beach Resort


$                   2,335


$                     (311)

$                      351

$                         —

$                         —

$                        40

Kimpton Shorebreak Huntington Beach Resort


$                   5,748


$                   1,884

$                      342

$                         —

$                         —

$                   2,226

L'Auberge de Sedona


$                   9,826


$                   3,194

$                      346

$                         —

$                         —

$                   3,540

Lake Austin Spa Resort


$                   6,280


$                   1,384

$                      701

$                         —

$                         —

$                   2,085

Margaritaville Beach House Key West


$                   7,805


$                   2,621

$                      535

$                         —

$                         —

$                   3,156

Orchards Inn Sedona


$                   2,580


$                      693

$                        90

$                         —

$                         42

$                      825

Salt Lake City Marriott Downtown at City Creek


$                   9,024


$                   2,570

$                      965

$                         —

$                         28

$                   3,563

The Dagny Boston


$                 10,934


$                   2,820

$                   1,656

$                         —

$                         —

$                   4,476

The Gwen


$                 11,467


$                   2,926

$                      782

$                         —

$                         —

$                   3,708

The Hythe Vail


$                   7,994


$                      196

$                   1,172

$                         —

$                         —

$                   1,368

The Landing Lake Tahoe Resort & Spa


$                   3,312


$                      656

$                      220

$                         —

$                         —

$                      876

The Lindy Renaissance Charleston Hotel


$                   6,726


$                   2,977

$                      388

$                         —

$                         —

$                   3,365

The Lodge at Sonoma Resort


$                   8,205


$                   2,374

$                      505

$                         —

$                         —

$                   2,879

Tranquility Bay Beachfront Resort


$                   5,892


$                   1,521

$                      453

$                         —

$                         —

$                   1,974

Westin Boston Seaport District


$                 29,752


$                   5,087

$                   2,435

$                    1,940

$                     (122)

$                   9,340

Westin Fort Lauderdale Beach Resort


$                 16,544


$                   2,763

$                   1,053

$                         —

$                         —

$                   3,816

Westin San Diego Bayview


$                   8,770


$                   1,283

$                   1,331

$                         —

$                         —

$                   2,614

Westin Washington D.C. City Center


$                 10,029


$                   2,184

$                   1,148

$                         —

$                         —

$                   3,332

Worthington Renaissance Fort Worth Hotel


$                 14,176


$                   3,396

$                      874

$                       698

$                         —

$                   4,968

Comparable Total


$               309,280


$                 65,928

$                 27,873

$                    4,132

$                   1,555

$                 99,488



(1)

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.

 



Hotel Adjusted EBITDA Reconciliation - Second Quarter 2023





Net Income
/ (Loss)

Plus:

Plus:

Plus:

Equals: Hotel



Total Revenues


Depreciation

Interest Expense

Adjustments (1)

Adjusted EBITDA

Atlanta Marriott Alpharetta


$                   4,240


$                   1,122

$                      359

$                         —

$                         —

$                   1,481

Bourbon Orleans Hotel


$                   4,947


$                   1,326

$                      850

$                         —

$                           6

$                   2,182

Cavallo Point, The Lodge at the Golden Gate


$                 12,255


$                   2,205

$                   1,396

$                         —

$                         94

$                   3,695

Chicago Marriott Downtown Magnificent Mile


$                 31,983


$                   8,556

$                   3,538

$                           6

$                    (397)

$                 11,703

Courtyard Denver Downtown


$                   3,455


$                   1,238

$                      378

$                         —

$                         —

$                   1,616

Courtyard New York Manhattan/Fifth Avenue


$                   5,081


$                      849

$                      401

$                         —

$                      253

$                   1,503

Courtyard New York Manhattan/Midtown East


$                   9,763


$                   2,281

$                      504

$                      891

$                         —

$                   3,676

Embassy Suites by Hilton Bethesda


$                   4,187


$                    (989)

$                      568

$                         —

$                   1,467

$                   1,046

Havana Cabana Key West


$                   3,338


$                      786

$                      309

$                         —

$                         —

$                   1,095

Henderson Beach Resort


$                 14,243


$                   3,466

$                   1,034

$                         —

$                         —

$                   4,500

Henderson Park Inn


$                   3,126


$                   1,387

$                      250

$                         —

$                         —

$                   1,637

Hilton Garden Inn New York/Times Square Central


$                   6,855


$                   1,216

$                      645

$                         —

$                         —

$                   1,861

Hotel Champlain Burlington


$                   6,207


$                   1,711

$                      560

$                         —

$                         —

$                   2,271

Hotel Clio


$                   6,781


$                      203

$                      860

$                      633

$                           5

$                   1,701

Hotel Emblem San Francisco


$                   1,538


$                    (447)

$                      296

$                         —

$                         —

$                    (151)

Kimpton Hotel Palomar Phoenix


$                   6,201


$                      944

$                      488

$                         —

$                      178

$                   1,610

Kimpton Shorebreak Fort Lauderdale Beach Resort


$                   1,971


$                    (397)

$                      306

$                         —

$                         —

$                       (91)

Kimpton Shorebreak Huntington Beach Resort


$                   5,849


$                   1,834

$                      383

$                         —

$                         —

$                   2,217

L'Auberge de Sedona


$                   8,755


$                   2,546

$                      383

$                         —

$                         —

$                   2,929

Lake Austin Spa Resort


$                   5,970


$                   1,264

$                      641

$                         —

$                         —

$                   1,905

Margaritaville Beach House Key West


$                   8,201


$                   2,806

$                      791

$                         —

$                         —

$                   3,597

Orchards Inn Sedona


$                   2,591


$                      661

$                         89

$                         —

$                         42

$                      792

Salt Lake City Marriott Downtown at City Creek


$                   7,312


$                   2,021

$                      668

$                         —

$                         11

$                   2,700

The Dagny Boston


$                 11,812


$                   3,122

$                   1,548

$                         —

$                         —

$                   4,670

The Gwen


$                 10,790


$                   2,300

$                   1,050

$                         —

$                         —

$                   3,350

The Hythe Vail


$                   5,412


$                 (1,177)

$                   1,200

$                         —

$                         —

$                         23

The Landing Lake Tahoe Resort & Spa


$                   2,754


$                      405

$                      309

$                         —

$                         —

$                      714

The Lindy Renaissance Charleston Hotel


$                   6,849


$                   2,912

$                      476

$                         —

$                         —

$                   3,388

The Lodge at Sonoma Resort


$                   8,960


$                   2,184

$                      641

$                         —

$                         —

$                   2,825

Tranquility Bay Beachfront Resort


$                   6,352


$                   1,649

$                      437

$                         —

$                         —

$                   2,086

Westin Boston Seaport District


$                 27,399


$                   4,001

$                   2,478

$                   1,990

$                    (122)

$                   8,347

Westin Fort Lauderdale Beach Resort


$                 16,236


$                   2,504

$                   1,015

$                         —

$                         —

$                   3,519

Westin San Diego Bayview


$                   8,418


$                   1,425

$                      855

$                         —

$                         —

$                   2,280

Westin Washington D.C. City Center


$                   8,948


$                   1,743

$                   1,024

$                         —

$                         —

$                   2,767

Worthington Renaissance Fort Worth Hotel


$                 12,468


$                   2,266

$                   1,110

$                      715

$                         —

$                   4,091

Total


$               291,247


$                 59,923

$                 27,840

$                   4,235

$                   1,537

$                 93,529

Add: Prior Ownership Results (2)


$                   3,812


$                      581

$                      225

$                         —

$                         —

$                      806

Comparable Total


$               295,059


$                 60,504

$                 28,065

$                   4,235

$                   1,537

$                 94,335



(1)

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.

(2)

Represents the pre-acquisition operating results of Chico Hot Springs Resort & Day Spa acquired in 2023. 

 



Hotel Adjusted EBITDA Reconciliation - Year to Date 2024



Total Revenues


Net Income
/ (Loss)

Plus:
Depreciation

Plus:
Interest Expense

Plus:
Adjustments (1)

Equals: Hotel
Adjusted EBITDA




Atlanta Marriott Alpharetta


$                 8,764


$                   2,450

$                      722

$                         —

$                             —

$                   3,172

Bourbon Orleans Hotel


$                 9,819


$                   2,450

$                   1,757

$                         —

$                           (26)

$                   4,181

Cavallo Point, The Lodge at the Golden Gate


$              22,493


$                   2,176

$                   2,870

$                         —

$                          187

$                   5,233

Chicago Marriott Downtown Magnificent Mile


$              52,744


$                   6,724

$                   6,473

$                         12

$                        (795)

$                 12,414

Chico Hot Springs Resort & Day Spa


$                 6,985


$                     (199)

$                      783

$                         —

$                               3

$                       587

Courtyard Denver Downtown


$                 5,284


$                   1,342

$                      711

$                         —

$                             —

$                   2,053

Courtyard New York Manhattan/Fifth Avenue


$                 8,263


$                     (562)

$                      683

$                         —

$                          507

$                       628

Courtyard New York Manhattan/Midtown East


$              17,114


$                   1,736

$                   1,016

$                   1,746

$                             —

$                   4,498

Embassy Suites by Hilton Bethesda


$                 7,070


$                 (2,965)

$                   1,213

$                         —

$                       2,918

$                   1,166

Havana Cabana Key West


$                 7,306


$                   2,012

$                      742

$                         —

$                             —

$                   2,754

Henderson Beach Resort


$              21,735


$                   2,897

$                   2,153

$                         —

$                             —

$                   5,050

Henderson Park Inn


$                 4,307


$                   1,228

$                      542

$                         —

$                             —

$                   1,770

Hilton Garden Inn New York/Times Square Central


$              12,241


$                       981

$                   1,300

$                         —

$                             —

$                   2,281

Hotel Champlain Burlington


$                 8,386


$                     (207)

$                   1,195

$                         —

$                             —

$                       988

Hotel Clio


$              13,801


$                       438

$                   1,644

$                   1,239

$                             10

$                   3,331

Hotel Emblem San Francisco


$                 2,873


$                     (350)

$                      615

$                         —

$                             —

$                       265

Kimpton Hotel Palomar Phoenix


$              13,727


$                   2,907

$                      965

$                         —

$                          392

$                   4,264

Kimpton Shorebreak Fort Lauderdale Beach Resort


$                 5,633


$                       175

$                      708

$                         —

$                             —

$                       883

Kimpton Shorebreak Huntington Beach Resort


$              10,754


$                   2,864

$                      722

$                         —

$                             —

$                   3,586

L'Auberge de Sedona


$              17,165


$                   4,821

$                      732

$                         —

$                             —

$                   5,553

Lake Austin Spa Resort


$              11,117


$                   1,696

$                   1,382

$                         —

$                             —

$                   3,078

Margaritaville Beach House Key West


$              17,912


$                   6,821

$                   1,301

$                         —

$                             —

$                   8,122

Orchards Inn Sedona


$                 4,611


$                   1,108

$                      177

$                         —

$                             84

$                   1,369

Salt Lake City Marriott Downtown at City Creek


$              17,426


$                   4,726

$                   1,883

$                         —

$                             38

$                   6,647

The Dagny Boston


$              17,359


$                   1,704

$                   3,186

$                         —

$                             —

$                   4,890

The Gwen


$              16,940


$                   1,060

$                   1,730

$                         —

$                             —

$                   2,790

The Hythe Vail


$              28,490


$                   9,705

$                   2,353

$                         —

$                             —

$                 12,058

The Landing Lake Tahoe Resort & Spa


$                 5,471


$                       542

$                      439

$                         —

$                             —

$                       981

The Lindy Renaissance Charleston Hotel


$              12,001


$                   4,678

$                      781

$                         —

$                             —

$                   5,459

The Lodge at Sonoma Resort


$              12,742


$                   1,735

$                   1,123

$                         —

$                             —

$                   2,858

Tranquility Bay Beachfront Resort


$              13,051


$                   3,459

$                      905

$                         —

$                             —

$                   4,364

Westin Boston Seaport District


$              50,856


$                   3,886

$                   4,924

$                   3,893

$                        (245)

$                 12,458

Westin Fort Lauderdale Beach Resort


$              40,568


$                 11,024

$                   2,136

$                         —

$                             —

$                 13,160

Westin San Diego Bayview


$              16,447


$                   2,085

$                   2,399

$                         —

$                             —

$                   4,484

Westin Washington D.C. City Center


$              17,495


$                   2,538

$                   2,196

$                         —

$                             —

$                   4,734

Worthington Renaissance Fort Worth Hotel


$              26,753


$                   5,570

$                   1,725

$                   1,400

$                             —

$                   8,695

Comparable Total


$            565,703


$                 93,255

$                 56,186

$                   8,290

$                       3,073

$               160,902



(1)

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.

 



Hotel Adjusted EBITDA Reconciliation - Year to Date 2023





Net Income /(Loss)

Plus:

Plus:

Plus:

Equals: Hotel



Total Revenues


Depreciation

Interest Expense

Adjustments (1)

Adjusted EBITDA

Atlanta Marriott Alpharetta


$                   8,257


$                   2,062

$                      724

$                         —

$                         —

$                   2,786

Bourbon Orleans Hotel


$                 10,011


$                   2,755

$                   1,687

$                         —

$                         13

$                   4,455

Cavallo Point, The Lodge at the Golden Gate


$                 22,648


$                   3,099

$                   2,788

$                         —

$                      187

$                   6,074

Chicago Marriott Downtown Magnificent Mile


$                 47,267


$                   5,961

$                   7,192

$                         12

$                    (795)

$                 12,370

Courtyard Denver Downtown


$                   5,653


$                   1,514

$                      754

$                         —

$                         —

$                   2,268

Courtyard New York Manhattan/Fifth Avenue


$                   8,344


$                         94

$                      746

$                         —

$                      507

$                   1,347

Courtyard New York Manhattan/Midtown East


$                 15,969


$                   1,279

$                   1,005

$                   1,777

$                         —

$                   4,061

Embassy Suites by Hilton Bethesda


$                   6,752


$                 (3,152)

$                   1,143

$                         —

$                   2,946

$                      937

Havana Cabana Key West


$                   7,339


$                   2,329

$                      587

$                         —

$                         —

$                   2,916

Henderson Beach Resort


$                 20,800


$                   2,458

$                   2,033

$                         —

$                         —

$                   4,491

Henderson Park Inn


$                   4,198


$                   1,139

$                      502

$                         —

$                         —

$                   1,641

Hilton Garden Inn New York/Times Square Central


$                 11,608


$                      981

$                   1,284

$                         —

$                         —

$                   2,265

Hotel Champlain Burlington


$                   9,479


$                   1,281

$                   1,128

$                         —

$                         —

$                   2,409

Hotel Clio


$                 12,135


$                    (717)

$                   1,722

$                   1,262

$                         10

$                   2,277

Hotel Emblem San Francisco


$                   3,539


$                    (477)

$                      594

$                         —

$                         —

$                      117

Kimpton Hotel Palomar Phoenix


$                 13,855


$                   2,924

$                   1,149

$                         —

$                      359

$                   4,432

Kimpton Shorebreak Fort Lauderdale Beach Resort


$                   5,146


$                      187

$                      609

$                         —

$                         —

$                      796

Kimpton Shorebreak Huntington Beach Resort


$                 10,376


$                   2,614

$                      796

$                         —

$                         —

$                   3,410

L'Auberge de Sedona


$                 15,616


$                   3,982

$                      744

$                         —

$                         —

$                   4,726

Lake Austin Spa Resort


$                 10,919


$                   1,719

$                   1,269

$                         —

$                         —

$                   2,988

Margaritaville Beach House Key West


$                 17,422


$                   6,884

$                   1,591

$                         —

$                         —

$                   8,475

Orchards Inn Sedona


$                   4,639


$                   1,100

$                      180

$                         —

$                         84

$                   1,364

Salt Lake City Marriott Downtown at City Creek


$                 15,604


$                   4,514

$                   1,234

$                         —

$                         21

$                   5,769

The Dagny Boston


$                 16,598


$                   1,578

$                   2,672

$                         —

$                         —

$                   4,250

The Gwen


$                 16,379


$                      786

$                   2,133

$                         —

$                         —

$                   2,919

The Hythe Vail


$                 27,307


$                   9,477

$                   2,402

$                         —

$                         —

$                 11,879

The Landing Lake Tahoe Resort & Spa


$                   4,307


$                    (155)

$                      532

$                         —

$                         —

$                      377

The Lindy Renaissance Charleston Hotel


$                 12,250


$                   4,786

$                      941

$                         —

$                         —

$                   5,727

The Lodge at Sonoma Resort


$                 15,066


$                   2,581

$                   1,298

$                         —

$                         —

$                   3,879

Tranquility Bay Beachfront Resort


$                 13,334


$                   3,688

$                      866

$                         —

$                         —

$                   4,554

Westin Boston Seaport District


$                 45,431


$                   2,135

$                   4,949

$                   3,970

$                    (245)

$                 10,809

Westin Fort Lauderdale Beach Resort


$                 39,219


$                 10,810

$                   2,068

$                         —

$                         —

$                 12,878

Westin San Diego Bayview


$                 17,118


$                   3,437

$                   1,710

$                         —

$                         —

$                   5,147

Westin Washington D.C. City Center


$                 15,655


$                   1,679

$                   2,044

$                         —

$                         —

$                   3,723

Worthington Renaissance Fort Worth Hotel


$                 24,560


$                   4,173

$                   2,236

$                   1,427

$                         —

$                   7,836

Total


$               534,800


$                 89,505

$                 55,312

$                   8,448

$                   3,087

$               156,345

Add: Prior Ownership Results (2)


$                   7,293


$                      876

$                      450

$                         —

$                         —

$                   1,326

Comparable Total


$               542,093


$                 90,381

$                 55,762

$                   8,448

$                   3,087

$               157,671



(1)

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities.

(2)

Represents the pre-acquisition operating results of Chico Hot Springs Resort & Day Spa acquired in 2023. 

 

Cision View original content:https://www.prnewswire.com/news-releases/diamondrock-hospitality-company-reports-second-quarter-2024-results-302212778.html

SOURCE DiamondRock Hospitality Company

Copyright 2024 PR Newswire

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