Pebblebrook Hotel Trust Reports First Quarter 2024 Results
Q1 FINANCIAL HIGHLIGHTS |
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HOTEL OPERATING TRENDS |
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PORTFOLIO UPDATES & CAPITAL REPOSITIONINGS |
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Q2 2024 O UTLOOK |
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(1) |
See tables later in this press release for a description of Same-Property information and reconciliations from net income (loss) to non-GAAP financial measures used in the table above and elsewhere in this press release. |
“First-quarter bottom-line operating results surpassed the top of our outlook, largely driven by our intense focus on operating efficiencies and strong cost reduction efforts. Favorable top-line performance was led by the continued recovery of our urban hotels, especially those that were recently redeveloped and transformed. Additionally, the ramp-up of LaPlaya’s performance following its reopening post-Hurricane Ian has been very encouraging as it handily surpassed our initial expectations for the quarter. Furthermore, we’ve made significant progress in completing our multi-year, portfolio-wide strategic reinvestment program. |
“Looking ahead, we remain cautiously optimistic about the continued industry recovery, particularly the ongoing improvements in business travel and international inbound travel, and the ongoing recovery of our urban markets.” |
─
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First Quarter Highlights |
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First Quarter |
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Same-Property and Corporate Highlights |
2024 |
2023 |
Variance |
($ in millions except per share and RevPAR data) |
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Net income (loss) |
( |
( |
NM |
Same-Property Room Revenues(1) |
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2.9% |
Same-Property Total Revenues(1) |
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2.5% |
Same Property Total Expenses(1) |
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3.7% |
Same Property EBITDA(1) |
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(2.3%) |
Adjusted EBITDAre(1) |
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0.0% |
Adjusted FFO(1) |
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11.6% |
Adjusted FFO per diluted share(1) |
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16.7% |
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2024 Monthly Results |
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Same-Property Portfolio Highlights(2) |
Jan |
Feb |
Mar |
($ in millions except ADR and RevPAR data) |
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Occupancy |
51% |
63% |
70% |
ADR |
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RevPAR |
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Total Revenues |
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Total Revenues Growth Rate (’24 vs. ’23) |
6% |
3% |
0% |
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NM = Not Meaningful |
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(1) |
See tables later in this press release for a description of Same-Property information and reconciliations from net income (loss) to non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), EBITDA for Real Estate (“EBITDAre”), Adjusted EBITDAre, Funds from Operations (“FFO”), FFO per share, Adjusted FFO and Adjusted FFO per share. |
Adjusted EBITDAre, Adjusted FFO and Adjusted FFO per share exclude the amortization of share-based compensation expense. Historical and comparable period results of such non-GAAP financial measures have been adjusted to reflect the exclusion. |
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(2) |
Includes information for all the hotels the Company owned as of |
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“Our urban hotels led our portfolio growth this quarter, with same-property occupancy increasing by 2 percentage points to 60% and average daily rate (ADR) rising by 0.6% to
Reopening of
The Company is pleased to announce the successful substantial completion of the extensive post-hurricane reconstruction at the 189-room
Regarding insurance claims, the Company expects that all operational and physical disruptions will be covered under its business interruption and property insurance policies, net of deductibles. A preliminary settlement of
Capital Investments and Strategic Property Redevelopments
During the first quarter, the Company completed
-
The
$49 million comprehensive redevelopment and transformation ofNewport Harbor Island Resort into a luxury island resort, which is substantially complete and set to reopen soon; -
the finalization of Estancia La Jolla Hotel & Spa’s
$26 million redevelopment and repositioning, including fully renovated public areas, as well as adding a lobby bar and patio, outdoor meeting venues, an outdoor pool bar and grill, upgraded and additional cabanas, including new cabana rooms, and upgrades to the main ballroom, the Mustangs and Burros restaurant, and extensive public area landscaping, which was completed in mid-April; and -
the progression of
Skamania Lodge's $20 million phase 1 of its much larger master plan to introduce alternative lodging accommodations, including the recent completion of two new 2-bedroom cabins and one new 3-bedroom villa, and five first-of-their-kind luxury glamping units, which are expected to be completed and available to rent starting at the beginning of May. Other recent resort additions included a multi-million-dollar outdoor meeting and event venue adjacent to the resort’s new 18-hole putting course, three additional treehouses bringing the total number of treehouses to nine, and road and utility infrastructure for existing and future alternative accommodations.
Following the completion of these investments, virtually all of the Company's properties will have undergone recent major renovations or redevelopments. This will mark a transition to a period of significantly reduced capital investments planned for the next few years. The Company expects to invest a total of
Since 2018, Pebblebrook has reinvested approximately
Balance Sheet and Liquidity
As of
Common and Preferred Dividends
On
-
$0.39844 per 6.375% Series E Cumulative Redeemable Preferred Share; -
$0.39375 per 6.3% Series F Cumulative Redeemable Preferred Share; -
$0.39844 per 6.375% Series G Cumulative Redeemable Preferred Share; and -
$0.35625 per 5.7% Series H Cumulative Redeemable Preferred Share.
Update on Curator Hotel & Resort Collection
Curator Hotel & Resort Collection (“Curator”) is a curated collection of experientially focused small brands and independent lifestyle hotels and resorts worldwide founded by Pebblebrook and several industry-leading independent lifestyle hotel operators. As of
2024 Outlook
The Company's 2024 outlook, which does not assume any acquisitions or dispositions, incorporates planned capital investments and key assumptions, including an estimated
This forecast assumes stable travel conditions, unaffected by pandemics, major weather events, federal shutdowns, or deteriorating macro-economic factors. This forecast has been adjusted to exclude
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2024 Outlook
As of |
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Variance to Prior Outlook
Var to |
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($ in millions, except per share data) |
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Low |
High |
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Low |
High |
Net income (loss) |
( |
( |
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– |
– |
Adjusted EBITDAre |
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– |
– |
Adjusted FFO |
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– |
– |
Adjusted FFO per diluted share |
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– |
– |
This 2024 Outlook is based, in part, on the following estimates and assumptions: |
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2024 Outlook
As of |
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Variance to Prior Outlook
Var to |
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($ in millions) |
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Low |
High |
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Low |
High |
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0.0% |
2.0% |
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– |
– |
Same-Property RevPAR variance vs. 2023 |
2.0% |
4.0% |
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– |
– |
Same-Property Total Revenue variance vs. 2023 |
3.3% |
4.8% |
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0.2% |
0.2% |
Same-Property Total Expense variance vs. 2023 |
4.7% |
5.3% |
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– |
– |
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( |
( |
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(0.9%) |
3.4% |
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0.6% |
0.6% |
The Company’s Q2 2024 Outlook is as follows: |
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Q2 2024 Outlook |
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Low |
High |
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($ in millions, except per share and RevPAR data) |
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Net income |
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Adjusted EBITDAre |
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Adjusted FFO |
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Adjusted FFO per diluted share |
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This Q2 2024 Outlook is based, in part, on the following estimates and assumptions: |
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Same-Property RevPAR |
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Same-Property RevPAR variance vs. Q2 2023 |
0.5% |
2.5% |
Same-Property Total Revenue variance vs. Q2 2023 |
1.5% |
3.7% |
Same-Property Total Expense variance vs. Q2 2023 |
1.5% |
2.6% |
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1.7% |
6.3% |
The Q2 2024 outlook includes an estimated
First Quarter 2024 Earnings Call
The Company will conduct its quarterly analyst and investor conference call on
About
This press release contains certain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “seek,” “anticipate,” “estimate,” “approximately,” “believe,” “could,” “project,” “predict,” “forecast,” “continue,” “assume,” “plan,” references to “outlook” or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections and forecasts and other forward-looking information and estimates. Examples of forward-looking statements include the following: descriptions of the Company’s plans or objectives for future capital investment projects, operations or services; forecasts of the Company’s future economic performance; forecasts of hotel industry performance; and descriptions of assumptions underlying or relating to any of the foregoing expectations including assumptions regarding the timing of their occurrence. These forward-looking statements are subject to various risks and uncertainties, many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the
For further information about the Company’s business and financial results, please refer to the "Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the Company’s filings with the
All information in this press release is as of
For additional information or to receive press releases via email, please visit www.pebblebrookhotels.com .
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Consolidated Balance Sheets |
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($ in thousands, except share and per-share data) |
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(Unaudited) |
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ASSETS | |||||||
Assets: | |||||||
Investment in hotel properties, net |
$ |
5,475,450 |
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$ |
5,490,776 |
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Cash and cash equivalents |
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56,707 |
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183,747 |
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Restricted cash |
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8,267 |
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9,894 |
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Hotel receivables (net of allowance for doubtful accounts of |
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53,934 |
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43,912 |
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Prepaid expenses and other assets |
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103,593 |
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96,644 |
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Total assets |
$ |
5,697,951 |
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$ |
5,824,973 |
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LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Unsecured revolving credit facilities |
$ |
- |
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$ |
- |
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Unsecured term loans, net of unamortized deferred financing costs |
|
1,261,852 |
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1,375,004 |
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Convertible senior notes, net of unamortized debt premium and discount and deferred financing costs |
|
747,486 |
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747,262 |
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Senior unsecured notes, net of unamortized deferred financing costs |
|
2,395 |
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2,395 |
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Mortgage loans, net of unamortized debt discount and deferred financing costs |
|
194,918 |
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195,140 |
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Accounts payable, accrued expenses and other liabilities |
|
247,029 |
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238,644 |
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Lease liabilities - operating leases |
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320,649 |
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320,617 |
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Deferred revenues |
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87,874 |
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76,874 |
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Accrued interest |
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10,390 |
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6,830 |
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Distribution payable |
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11,849 |
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11,862 |
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Total liabilities |
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2,884,442 |
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2,974,628 |
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Commitments and contingencies | |||||||
Shareholders' Equity: | |||||||
Preferred shares of beneficial interest, |
|
276 |
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276 |
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Common shares of beneficial interest, |
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1,201 |
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1,202 |
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Additional paid-in capital |
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4,074,898 |
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4,078,912 |
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Accumulated other comprehensive income (loss) |
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31,067 |
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24,374 |
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Distributions in excess of retained earnings |
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(1,381,450 |
) |
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(1,341,264 |
) |
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Total shareholders' equity |
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2,725,992 |
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2,763,500 |
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Non-controlling interests |
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87,517 |
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86,845 |
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Total equity |
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2,813,509 |
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2,850,345 |
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Total liabilities and equity |
$ |
5,697,951 |
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$ |
5,824,973 |
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Consolidated Statements of Operations |
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($ in thousands, except share and per-share data) |
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(Unaudited) |
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Three months ended
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2024 |
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2023 |
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Revenues: | |||||||
Room |
$ |
198,100 |
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$ |
196,374 |
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Food and beverage |
|
81,095 |
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75,763 |
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Other operating |
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34,874 |
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33,582 |
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Total revenues |
$ |
314,069 |
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$ |
305,719 |
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Expenses: | |||||||
Hotel operating expenses: | |||||||
Room |
$ |
55,023 |
|
$ |
56,424 |
|
|
Food and beverage |
|
61,014 |
|
|
58,672 |
|
|
Other direct and indirect |
|
100,019 |
|
|
99,214 |
|
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Total hotel operating expenses |
|
216,056 |
|
|
214,310 |
|
|
Depreciation and amortization |
|
57,209 |
|
|
58,369 |
|
|
Real estate taxes, personal property taxes, property insurance, and ground rent |
|
32,405 |
|
|
28,904 |
|
|
General and administrative |
|
12,177 |
|
|
9,988 |
|
|
(Gain) loss on sale of hotel properties |
|
- |
|
|
(6,635 |
) |
|
Business interruption insurance income |
|
(3,980 |
) |
|
(8,089 |
) |
|
Other operating expenses |
|
1,581 |
|
|
3,670 |
|
|
Total operating expenses |
|
315,448 |
|
|
300,517 |
|
|
Operating income (loss) |
|
(1,379 |
) |
|
5,202 |
|
|
Interest expense |
|
(26,421 |
) |
|
(27,430 |
) |
|
Other |
|
326 |
|
|
183 |
|
|
Income (loss) before income taxes |
|
(27,474 |
) |
|
(22,045 |
) |
|
Income tax (expense) benefit |
|
(46 |
) |
|
- |
|
|
Net income (loss) |
|
(27,520 |
) |
|
(22,045 |
) |
|
Net income (loss) attributable to non-controlling interests |
|
830 |
|
|
883 |
|
|
Net income (loss) attributable to the Company |
|
(28,350 |
) |
|
(22,928 |
) |
|
Distributions to preferred shareholders |
|
(10,631 |
) |
|
(10,988 |
) |
|
Net income (loss) attributable to common shareholders |
$ |
(38,981 |
) |
$ |
(33,916 |
) |
|
Net income (loss) per share available to common shareholders, basic |
$ |
(0.32 |
) |
$ |
(0.27 |
) |
|
Net income (loss) per share available to common shareholders, diluted |
$ |
(0.32 |
) |
$ |
(0.27 |
) |
|
Weighted-average number of common shares, basic |
|
120,085,226 |
|
|
125,488,415 |
|
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Weighted-average number of common shares, diluted |
|
120,085,226 |
|
|
125,488,415 |
|
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Considerations Regarding Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures. These measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations determined in accordance with GAAP.
Funds from Operations (“FFO”) - FFO represents net income (computed in accordance with GAAP), excluding gains or losses from sales of properties, plus real estate-related depreciation and amortization and after adjustments for unconsolidated partnerships. The Company considers FFO a useful measure of performance for an equity REIT because it facilitates an understanding of the Company's operating performance without giving effect to real estate depreciation and amortization, which assume that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, the Company believes that FFO provides a meaningful indication of its performance. The Company also considers FFO an appropriate performance measure given its wide use by investors and analysts. The Company computes FFO in accordance with standards established by the
Earnings before Interest, Taxes, and Depreciation and Amortization ("EBITDA") - The Company believes that EBITDA provides investors a useful financial measure to evaluate its operating performance, excluding the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization).
Earnings before Interest, Taxes, and Depreciation and Amortization for Real Estate ("EBITDAre") - The Company believes that EBITDAre provides investors a useful financial measure to evaluate its operating performance, and the Company presents EBITDAre in accordance with Nareit guidelines, as defined in its
The Company also evaluates its performance by reviewing Adjusted FFO and Adjusted EBITDAre because it believes that adjusting FFO to exclude certain recurring and non-recurring items described below provides useful supplemental information regarding the Company's ongoing operating performance and that the presentation of Adjusted FFO and Adjusted EBITDAre, when combined with the primary GAAP presentation of net income (loss), more completely describes the Company's operating performance. The Company adjusts FFO available to common share and unit holders for the following items, which may occur in any period, and refers to this measure as Adjusted FFO and Adjusted EBITDAre:
- Transaction costs: The Company excludes transaction costs expensed during the period because it believes that including these costs in FFO does not reflect the underlying financial performance of the Company and its hotels.
- Non-cash ground rent: The Company excludes the non-cash ground rent expense, which is primarily made up of the straight-line rent impact from a ground lease.
- Management/franchise contract transition costs: The Company excludes one-time management and/or franchise contract transition costs expensed during the period because it believes that including these costs in FFO and Adjusted EBITDAre does not reflect the underlying financial performance of the Company and its hotels.
- Interest expense adjustment for acquired liabilities: The Company excludes interest expense adjustment for acquired liabilities assumed in connection with acquisitions, because it believes that including these non-cash adjustments in FFO and Adjusted EBITDAre does not reflect the underlying financial performance of the Company.
- Finance lease adjustment: The Company excludes the effect of non-cash interest expense from finance leases because it believes that including these non-cash adjustments in FFO and Adjusted EBITDAre does not reflect the underlying financial performance of the Company.
- Non-cash amortization of acquired intangibles: The Company excludes the non-cash amortization of acquired intangibles, which includes but is not limited to the amortization of favorable and unfavorable leases or management agreements and above/below market real estate tax reduction agreements because it believes that including these non-cash adjustments in FFO and Adjusted EBITDAre does not reflect the underlying financial performance of the Company.
- Non-cash interest expense, one-time operation suspension expenses, early extinguishment of debt, amortization of share-based compensation expense, issuance costs of redeemed preferred shares, and hurricane-related repairs costs: The Company excludes these items because the Company believes that including these adjustments in FFO does not reflect the underlying financial performance of the Company and its hotels.
- One-time operation suspension expenses, amortization of share-based compensation expense, and hurricane-related costs: The Company excludes these items because it believes that including these costs in EBITDAre does not reflect the underlying financial performance of the Company and its hotels.
The Company presents weighted-average number of basic and fully diluted common shares and units by excluding the dilutive effect of shares issuable upon conversion of convertible debt.
The Company’s presentation of FFO and Adjusted EBITDAre as adjusted by the Company, should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of the Company’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of its liquidity. The Company’s presentation of EBITDAre, and as adjusted by the Company, should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of the Company’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of its liquidity.
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Reconciliation of Net Income (Loss) to FFO and Adjusted FFO |
|||||||
($ in thousands, except share and per-share data) |
|||||||
(Unaudited) |
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Three months ended
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||||||
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
(27,520 |
) |
$ |
(22,045 |
) |
|
Adjustments: | |||||||
Real estate depreciation and amortization |
|
57,126 |
|
|
58,284 |
|
|
Gain on sale of hotel properties |
|
- |
|
|
(6,635 |
) |
|
Impairment loss |
|
- |
|
|
- |
|
|
FFO |
$ |
29,606 |
|
$ |
29,604 |
|
|
Distribution to preferred shareholders and unit holders |
|
(11,795 |
) |
|
(12,152 |
) |
|
Issuance costs of redeemed preferred shares |
|
- |
|
|
- |
|
|
FFO available to common share and unit holders |
$ |
17,811 |
|
$ |
17,452 |
|
|
Transaction costs |
|
4 |
|
|
53 |
|
|
Non-cash ground rent |
|
1,873 |
|
|
1,906 |
|
|
Management/franchise contract transition costs |
|
44 |
|
|
112 |
|
|
Interest expense adjustment for acquired liabilities |
|
263 |
|
|
541 |
|
|
Finance lease adjustment |
|
745 |
|
|
734 |
|
|
Non-cash amortization of acquired intangibles |
|
(482 |
) |
|
(4,049 |
) |
|
Early extinguishment of debt |
|
1,534 |
|
|
- |
|
|
Amortization of share-based compensation expense |
|
3,060 |
|
|
2,879 |
|
|
Issuance costs of redeemed preferred shares |
|
- |
|
|
- |
|
|
Hurricane-related costs |
|
150 |
|
|
2,785 |
|
|
Adjusted FFO available to common share and unit holders |
$ |
25,002 |
|
$ |
22,413 |
|
|
FFO per common share - basic |
$ |
0.15 |
|
$ |
0.14 |
|
|
FFO per common share - diluted |
$ |
0.15 |
|
$ |
0.14 |
|
|
Adjusted FFO per common share - basic |
$ |
0.21 |
|
$ |
0.18 |
|
|
Adjusted FFO per common share - diluted |
$ |
0.21 |
|
$ |
0.18 |
|
|
Weighted-average number of basic common shares and units |
|
121,096,354 |
|
|
126,496,795 |
|
|
Weighted-average number of fully diluted common shares and units |
|
121,454,527 |
|
|
126,496,795 |
|
|
See “Considerations Regarding Non-GAAP Financial Measures” of this press release for important considerations regarding our use of non-GAAP financial measures. Any differences are a result of rounding. |
|
|||||||
Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre |
|||||||
($ in thousands) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
|
Three months ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
(27,520 |
) |
$ |
(22,045 |
) |
|
Adjustments: | |||||||
Interest expense |
|
26,421 |
|
|
27,430 |
|
|
Income tax expense (benefit) |
|
46 |
|
|
- |
|
|
Depreciation and amortization |
|
57,209 |
|
|
58,369 |
|
|
EBITDA |
$ |
56,156 |
|
$ |
63,754 |
|
|
Gain on sale of hotel properties |
|
- |
|
|
(6,635 |
) |
|
Impairment loss |
|
- |
|
|
- |
|
|
EBITDAre |
$ |
56,156 |
|
$ |
57,119 |
|
|
Transaction costs |
|
4 |
|
|
53 |
|
|
Non-cash ground rent |
|
1,873 |
|
|
1,906 |
|
|
Management/franchise contract transition costs |
|
44 |
|
|
112 |
|
|
Non-cash amortization of acquired intangibles |
|
(482 |
) |
|
(4,049 |
) |
|
Amortization of share-based compensation expense |
|
3,060 |
|
|
2,879 |
|
|
Hurricane-related costs |
|
150 |
|
|
2,785 |
|
|
Adjusted EBITDAre |
$ |
60,805 |
|
$ |
60,805 |
|
|
See “Considerations Regarding Non-GAAP Financial Measures” of this press release for important considerations regarding our use of non-GAAP financial measures. Any differences are a result of rounding. |
|
|||||||||||||||
Reconciliation of Q2 2024 and Full Year 2024 Outlook Net Income (Loss) to FFO and Adjusted FFO |
|||||||||||||||
(in millions, except per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three months ending
|
|
Year ending
|
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
Net income (loss) |
$ |
19 |
|
$ |
24 |
|
$ |
(62 |
) |
$ |
(47 |
) |
|||
Adjustments: | |||||||||||||||
Real estate depreciation and amortization |
|
58 |
|
|
58 |
|
|
263 |
|
|
263 |
|
|||
(Gain) loss on sale of hotel properties |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||
Impairment loss |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||
FFO |
$ |
77 |
|
$ |
82 |
|
$ |
201 |
|
$ |
216 |
|
|||
Distribution to preferred shareholders and unit holders |
|
(12 |
) |
|
(12 |
) |
|
(47 |
) |
|
(47 |
) |
|||
FFO available to common share and unit holders |
$ |
65 |
|
$ |
70 |
|
$ |
154 |
|
$ |
169 |
|
|||
Non-cash ground rent |
|
2 |
|
|
2 |
|
|
8 |
|
|
8 |
|
|||
Amortization of share-based compensation expense |
|
4 |
|
|
4 |
|
|
13 |
|
|
13 |
|
|||
Other |
|
- |
|
|
- |
|
|
6 |
|
|
6 |
|
|||
Adjusted FFO available to common share and unit holders |
$ |
71 |
|
$ |
76 |
|
$ |
181 |
|
$ |
196 |
|
|||
FFO per common share - diluted |
$ |
0.54 |
|
$ |
0.58 |
|
$ |
1.27 |
|
$ |
1.39 |
|
|||
Adjusted FFO per common share - diluted |
$ |
0.59 |
|
$ |
0.63 |
|
$ |
1.49 |
|
$ |
1.61 |
|
|||
Weighted-average number of fully diluted common shares and units |
|
121.4 |
|
|
121.4 |
|
|
121.4 |
|
|
121.4 |
|
|||
See “Considerations Regarding Non-GAAP Financial Measures” of this press release for important considerations regarding our use of non-GAAP financial measures. Any differences are a result of rounding. |
|
|||||||||||||||
Reconciliation of Q2 2024 and Full Year 2024 Outlook Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre |
|||||||||||||||
($ in millions) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three months ending
|
|
Year ending
|
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
Net income (loss) |
$ |
19 |
|
$ |
24 |
|
$ |
(62 |
) |
$ |
(47 |
) |
|||
Adjustments: | |||||||||||||||
Interest expense and income tax expense |
|
29 |
|
|
29 |
|
|
117 |
|
|
117 |
|
|||
Depreciation and amortization |
|
58 |
|
|
58 |
|
|
263 |
|
|
263 |
|
|||
EBITDA |
$ |
106 |
|
$ |
111 |
|
$ |
318 |
|
$ |
333 |
|
|||
(Gain) loss on sale of hotel properties |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||
Impairment loss |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||
EBITDAre |
$ |
106 |
|
$ |
111 |
|
$ |
318 |
|
$ |
333 |
|
|||
Non-cash ground rent |
|
2 |
|
|
2 |
|
|
8 |
|
|
8 |
|
|||
Amortization of share-based compensation expense |
|
4 |
|
|
4 |
|
|
13 |
|
|
13 |
|
|||
Other |
|
(1 |
) |
|
(1 |
) |
|
- |
|
|
- |
|
|||
Adjusted EBITDAre |
$ |
111 |
|
$ |
116 |
|
$ |
339 |
|
$ |
354 |
|
|||
See “Considerations Regarding Non-GAAP Financial Measures” of this press release for important considerations regarding our use of non-GAAP financial measures. Any differences are a result of rounding. |
|
|||||||
Same-Property Statistical Data |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
|
Three months ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Same-Property Occupancy |
|
61.3 |
% |
|
59.4 |
% |
|
2024 vs. 2023 Increase/(Decrease) |
|
3.2 |
% |
||||
Same-Property ADR |
$ |
299.34 |
|
$ |
303.90 |
|
|
2024 vs. 2023 Increase/(Decrease) |
|
(1.5 |
%) |
||||
Same-Property RevPAR |
$ |
183.39 |
|
$ |
180.38 |
|
|
2024 vs. 2023 Increase/(Decrease) |
|
1.7 |
% |
||||
Same-Property Total RevPAR |
$ |
282.55 |
|
$ |
279.05 |
|
|
2024 vs. 2023 Increase/(Decrease) |
|
1.3 |
% |
||||
Notes: | |||||||
For the three months ended • • |
|||||||
These hotel results for the respective periods may include information reflecting operational performance prior to the Company's ownership of the hotels. Any differences are a result of rounding. | |||||||
The information above has not been audited and is presented only for comparison purposes. |
|
||
Same-Property Statistical Data - by Market |
||
(Unaudited) |
||
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
2024 |
|
Same-Property RevPAR variance to 2023: | ||
|
10.1 |
% |
|
6.9 |
% |
|
5.5 |
% |
|
3.5 |
% |
|
1.0 |
% |
|
(4.1 |
%) |
|
(4.3 |
%) |
Other Resort Markets |
(13.8 |
%) |
Portland |
(26.6 |
%) |
Urban |
4.9 |
% |
Resorts |
(4.4 |
%) |
Notes: | ||
For the three months ended |
||
Other Resort Markets includes: |
||
These hotel results for the respective periods may include information reflecting operational performance prior to the Company's ownership of the hotels. Any differences are a result of rounding. |
||
The information above has not been audited and is presented only for comparison purposes. |
|
|||||||
|
|||||||
Schedule of Same-Property Results |
|||||||
($ in thousands) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
|
Three months ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Same-Property Revenues: | |||||||
Room |
$ |
191,555 |
|
$ |
186,174 |
|
|
Food and beverage |
|
73,149 |
|
|
72,478 |
|
|
Other |
|
30,417 |
|
|
29,369 |
|
|
Total hotel revenues |
|
295,121 |
|
|
288,021 |
|
|
Same-Property Expenses: | |||||||
Room |
$ |
54,143 |
|
$ |
52,771 |
|
|
Food and beverage |
|
56,432 |
|
|
54,804 |
|
|
Other direct |
|
7,113 |
|
|
7,505 |
|
|
General and administrative |
|
26,314 |
|
|
26,081 |
|
|
Information and telecommunication systems |
|
5,020 |
|
|
4,898 |
|
|
Sales and marketing |
|
24,734 |
|
|
23,492 |
|
|
Management fees |
|
7,859 |
|
|
8,026 |
|
|
Property operations and maintenance |
|
12,449 |
|
|
12,261 |
|
|
Energy and utilities |
|
9,941 |
|
|
9,741 |
|
|
Property taxes |
|
17,308 |
|
|
15,241 |
|
|
Other fixed expenses |
|
14,027 |
|
|
12,024 |
|
|
Total hotel expenses |
|
235,340 |
|
|
226,844 |
|
|
Same-Property EBITDA |
$ |
59,781 |
|
$ |
61,177 |
|
|
Same-Property EBITDA Margin |
|
20.3 |
% |
|
21.2 |
% |
|
Notes: | |||||||
For the three months ended • • |
|||||||
These hotel results for the respective periods may include information reflecting operational performance prior to the Company's ownership of the hotels. Any differences are a result of rounding. | |||||||
The information above has not been audited and is presented only for comparison purposes. |
|
|||||||||||||||||||
Historical Operating Data |
|||||||||||||||||||
($ in millions except ADR and RevPAR data) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Historical Operating Data: |
|
|
|
|
|
|
|
|
|
||||||||||
|
First Quarter |
|
Second Quarter |
|
Third Quarter |
|
Fourth Quarter |
|
Full Year |
||||||||||
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
Occupancy |
|
74 |
% |
|
86 |
% |
|
86 |
% |
|
77 |
% |
|
81 |
% |
||||
ADR |
$ |
251 |
|
$ |
275 |
|
$ |
272 |
|
$ |
250 |
|
$ |
263 |
|
||||
RevPAR |
$ |
186 |
|
$ |
236 |
|
$ |
234 |
|
$ |
192 |
|
$ |
212 |
|
||||
|
$ |
294.3 |
|
$ |
375.5 |
|
$ |
372.5 |
|
$ |
318.8 |
|
$ |
1,361.0 |
|
||||
|
$ |
74.2 |
|
$ |
132.7 |
|
$ |
126.5 |
|
$ |
84.9 |
|
$ |
418.3 |
|
||||
|
|
25.2 |
% |
|
35.3 |
% |
|
34.0 |
% |
|
26.6 |
% |
|
30.7 |
% |
||||
First Quarter |
|
Second Quarter |
|
Third Quarter |
|
Fourth Quarter |
|
Full Year |
|||||||||||
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Occupancy |
|
59 |
% |
|
73 |
% |
|
75 |
% |
|
64 |
% |
|
68 |
% |
||||
ADR |
$ |
303 |
|
$ |
312 |
|
$ |
312 |
|
$ |
296 |
|
$ |
306 |
|
||||
RevPAR |
$ |
177 |
|
$ |
229 |
|
$ |
235 |
|
$ |
188 |
|
$ |
208 |
|
||||
|
$ |
290.2 |
|
$ |
372.1 |
|
$ |
383.0 |
|
$ |
320.3 |
|
$ |
1,365.7 |
|
||||
|
$ |
59.1 |
|
$ |
110.5 |
|
$ |
111.9 |
|
$ |
67.7 |
|
$ |
349.1 |
|
||||
|
|
20.4 |
% |
|
29.7 |
% |
|
29.2 |
% |
|
21.1 |
% |
|
25.6 |
% |
||||
First Quarter |
|||||||||||||||||||
|
2024 |
|
|||||||||||||||||
Occupancy |
|
60 |
% |
||||||||||||||||
ADR |
$ |
299 |
|
||||||||||||||||
RevPAR |
$ |
179 |
|
||||||||||||||||
|
$ |
295.1 |
|
||||||||||||||||
|
$ |
58.4 |
|
||||||||||||||||
|
|
19.8 |
% |
||||||||||||||||
Notes: | |||||||||||||||||||
These historical hotel operating results include information for all of the hotels the Company owned as of |
|||||||||||||||||||
These hotel results for the respective periods may include information reflecting operational performance prior to the Company's ownership of the hotels. Any differences are a result of rounding. | |||||||||||||||||||
The information above has not been audited and is presented only for comparison purposes. |
|
||||||||
2024 Same-Property Inclusion Reference Table |
||||||||
Hotels |
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
|
||||||||
|
X |
|||||||
Notes: | ||||||||
A property marked with an "X" in a specific quarter denotes that the same-property operating results of that property are included in the Same-Property Statistical Data and in the Schedule of Same-Property Results. | ||||||||
The Company's estimates and assumptions for 2024 Same-Property RevPAR, RevPAR Growth, Total Revenue Growth, Total Expense Growth, • • |
||||||||
Operating statistics and financial results may include periods prior to the Company's ownership of the hotels. | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240423111995/en/
Chief Financial Officer
(240) 507-1330
Source: