(Mark One) | ||
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the quarterly period ended March 31, 2014 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the transition period from to |
Commission file number: 001-14236 | (FelCor Lodging Trust Incorporated) | ||
Commission file number: 333-39595-01 | (FelCor Lodging Limited Partnership) |
Maryland | (FelCor Lodging Trust Incorporated) | 75-2541756 | |||
Delaware | (FelCor Lodging Limited Partnership) | 75-2544994 | |||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||
545 E. John Carpenter Freeway, Suite 1300, Irving, Texas | 75062 | |||
(Address of Principal Executive Offices) | (Zip Code) |
FelCor Lodging Trust Incorporated | þ | Yes | ¨ | No | ||
FelCor Lodging Limited Partnership | þ | Yes | ¨ | No |
FelCor Lodging Trust Incorporated | þ | Yes | ¨ | No | ||
FelCor Lodging Limited Partnership | þ | Yes | ¨ | No |
FelCor Lodging Trust Incorporated: | ||
Large accelerated filer þ | Accelerated filer o | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
FelCor Lodging Limited Partnership: | ||
Large accelerated filer o | Accelerated filer ¨ | |
Non-accelerated filer þ (Do not check if a smaller reporting company) | Smaller reporting company o |
FelCor Lodging Trust Incorporated | ¨ | Yes | þ | No | ||
FelCor Lodging Limited Partnership | ¨ | Yes | þ | No |
• | presents our business as a whole (the same way management views and operates the business); |
• | eliminates duplicative disclosure and provides a more streamlined presentation (a substantial portion of our disclosure applies to both FelCor and FelCor LP); and |
• | saves time and cost by preparing combined reports instead of separate reports. |
Page | |||
PART I − FINANCIAL INFORMATION | |||
Item 1. | Financial Statements | ||
FelCor Lodging Trust Incorporated: | |||
Consolidated Balance Sheets - March 31, 2014 and December 31, 2013 (unaudited) | |||
Consolidated Statements of Operations – For the Three Months Ended March 31, 2014 and 2013 (unaudited) | |||
Consolidated Statements of Comprehensive Income (Loss) – For the Three Months Ended March 31, 2014 and 2013 (unaudited) | |||
Consolidated Statements of Changes in Equity – For the Three Months Ended March 31, 2014 and 2013 (unaudited) | |||
Consolidated Statements of Cash Flows – For the Three Months Ended March 31, 2014 and 2013 (unaudited) | |||
FelCor Lodging Limited Partnership: | |||
Consolidated Balance Sheets - March 31, 2014 and December 31, 2013 (unaudited) | |||
Consolidated Statements of Operations – For the Three Months Ended March 31, 2014 and 2013 (unaudited) | |||
Consolidated Statements of Comprehensive Income (Loss) – For the Three Months Ended March 31, 2014 and 2013 (unaudited) | |||
Consolidated Statements of Partners’ Capital – For the Three Months Ended March 31, 2014 and 2013 (unaudited) | |||
Consolidated Statements of Cash Flows – For the Three Months Ended March 31, 2014 and 2013 (unaudited) | |||
Notes to Consolidated Financial Statements | |||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
General | |||
Results of Operations | |||
Non-GAAP Financial Measures | |||
Pro Rata Share of Rooms Owned | |||
Hotel Portfolio Composition | |||
Hotel Operating Statistics | |||
Hotel Portfolio | |||
Liquidity and Capital Resources | |||
Inflation | |||
Seasonality | |||
Disclosure Regarding Forward-Looking Statements | |||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | ||
Item 4. | Controls and Procedures | ||
PART II − OTHER INFORMATION | |||
Item 6. | Exhibits | ||
SIGNATURES |
Item 1. | Financial Statements. |
March 31, 2014 | December 31, 2013 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $915,561 and $929,801 at March 31, 2014 and December 31, 2013, respectively | $ | 1,611,247 | $ | 1,653,267 | |||
Hotel development | 236,729 | 216,747 | |||||
Investment in unconsolidated entities | 44,634 | 46,943 | |||||
Hotel held for sale | 19,137 | 16,319 | |||||
Cash and cash equivalents | 73,526 | 45,645 | |||||
Restricted cash | 67,047 | 77,227 | |||||
Accounts receivable, net of allowance for doubtful accounts of $179 and $262 at March 31, 2014 and December 31, 2013, respectively | 34,486 | 35,747 | |||||
Deferred expenses, net of accumulated amortization of $21,360 and $20,362 at March 31, 2014 and December 31, 2013, respectively | 27,635 | 29,325 | |||||
Other assets | 22,828 | 23,060 | |||||
Total assets | $ | 2,137,269 | $ | 2,144,280 | |||
Liabilities and Equity | |||||||
Debt, net of discount of $3,190 and $4,714 at March 31, 2014 and December 31, 2013, respectively | $ | 1,640,628 | $ | 1,663,226 | |||
Distributions payable | 11,195 | 11,047 | |||||
Accrued expenses and other liabilities | 152,103 | 150,738 | |||||
Total liabilities | 1,803,926 | 1,825,011 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests in FelCor LP, 618 units issued and outstanding at March 31, 2014 and December 31, 2013 | 5,583 | 5,039 | |||||
Equity: | |||||||
Preferred stock, $0.01 par value, 20,000 shares authorized: | |||||||
Series A Cumulative Convertible Preferred Stock, 12,880 shares, liquidation value of $322,004 and $322,011, issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 309,354 | 309,362 | |||||
Series C Cumulative Redeemable Preferred Stock, 68 shares, liquidation value of $169,950, issued and outstanding at March 31, 2014 and December 31, 2013 | 169,412 | 169,412 | |||||
Common stock, $0.01 par value, 200,000 shares authorized; 124,186 and 124,051 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 1,242 | 1,240 | |||||
Additional paid-in capital | 2,354,613 | 2,354,328 | |||||
Accumulated other comprehensive income | 24,320 | 24,937 | |||||
Accumulated deficit | (2,596,294 | ) | (2,568,350 | ) | |||
Total FelCor stockholders’ equity | 262,647 | 290,929 | |||||
Noncontrolling interests in other partnerships | 24,204 | 23,301 | |||||
Preferred equity in consolidated joint venture, liquidation value of $41,464 | 40,909 | — | |||||
Total equity | 327,760 | 314,230 | |||||
Total liabilities and equity | $ | 2,137,269 | $ | 2,144,280 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Revenues: | |||||||
Hotel operating revenue | $ | 221,022 | $ | 208,538 | |||
Other revenue | 327 | 399 | |||||
Total revenues | 221,349 | 208,937 | |||||
Expenses: | |||||||
Hotel departmental expenses | 83,523 | 80,405 | |||||
Other property-related costs | 61,578 | 59,428 | |||||
Management and franchise fees | 9,013 | 9,163 | |||||
Taxes, insurance and lease expense | 23,633 | 22,164 | |||||
Corporate expenses | 7,825 | 7,832 | |||||
Depreciation and amortization | 29,601 | 29,755 | |||||
Conversion expenses | — | 628 | |||||
Other expenses | 2,014 | 821 | |||||
Total operating expenses | 217,187 | 210,196 | |||||
Operating income (loss) | 4,162 | (1,259 | ) | ||||
Interest expense, net | (25,227 | ) | (26,285 | ) | |||
Debt extinguishment | (6 | ) | — | ||||
Loss before equity in income from unconsolidated entities | (21,071 | ) | (27,544 | ) | |||
Equity in income from unconsolidated entities | 643 | 89 | |||||
Loss from continuing operations | (20,428 | ) | (27,455 | ) | |||
Income from discontinued operations | 135 | 850 | |||||
Loss before gain on sale of property | (20,293 | ) | (26,605 | ) | |||
Gain on sale of property, net | 5,457 | — | |||||
Net loss | (14,836 | ) | (26,605 | ) | |||
Net loss attributable to noncontrolling interests in other partnerships | 78 | 240 | |||||
Net loss attributable to redeemable noncontrolling interests in FelCor LP | 121 | 180 | |||||
Preferred distributions - consolidated joint venture | (181 | ) | — | ||||
Net loss attributable to FelCor | (14,818 | ) | (26,185 | ) | |||
Preferred dividends | (9,678 | ) | (9,678 | ) | |||
Net loss attributable to FelCor common stockholders | $ | (24,496 | ) | $ | (35,863 | ) | |
Basic and diluted per common share data: | |||||||
Loss from continuing operations | $ | (0.20 | ) | $ | (0.30 | ) | |
Net loss | $ | (0.20 | ) | $ | (0.29 | ) | |
Basic and diluted weighted average common shares outstanding | 124,146 | 123,814 |
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Net loss | $ | (14,836 | ) | $ | (26,605 | ) | |
Foreign currency translation adjustment | (620 | ) | (357 | ) | |||
Comprehensive loss | (15,456 | ) | (26,962 | ) | |||
Comprehensive loss attributable to noncontrolling interests in other partnerships | 78 | 240 | |||||
Comprehensive loss attributable to redeemable noncontrolling interests in FelCor LP | 124 | 182 | |||||
Comprehensive loss attributable to FelCor | $ | (15,254 | ) | $ | (26,540 | ) |
Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Noncontrolling Interests in Other Partnerships | Preferred Equity in Consolidated Joint Venture | ||||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Number of Shares | Amount | Accumulated Deficit | Comprehensive Loss | Total Equity | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 12,948 | $ | 478,774 | 124,117 | $ | 1,241 | $ | 2,353,581 | $ | 26,039 | $ | (2,464,968 | ) | $ | 27,352 | $ | — | $ | 422,019 | ||||||||||||||||||||||
Issuance of stock awards | — | — | 5 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Stock awards - amortization | — | — | — | — | 671 | — | — | — | — | 671 | |||||||||||||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | (977 | ) | — | — | — | — | (977 | ) | |||||||||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | — | 602 | — | 602 | |||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | (284 | ) | — | (284 | ) | |||||||||||||||||||||||||||||
Preferred dividends: | |||||||||||||||||||||||||||||||||||||||||
$0.4875 per Series A preferred share | — | — | — | — | — | — | (6,279 | ) | — | — | (6,279 | ) | |||||||||||||||||||||||||||||
$0.50 per Series C depositary preferred share | — | — | — | — | — | — | (3,399 | ) | — | — | (3,399 | ) | |||||||||||||||||||||||||||||
Comprehensive loss (attributable to FelCor and noncontrolling interests in other partnerships): | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | — | — | — | (355 | ) | — | — | — | $ | (355 | ) | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (26,185 | ) | (240 | ) | — | (26,425 | ) | ||||||||||||||||||||||||||||
Comprehensive loss | $ | (26,780 | ) | (26,780 | ) | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2013 | 12,948 | $ | 478,774 | 124,122 | $ | 1,241 | $ | 2,353,275 | $ | 25,684 | $ | (2,500,831 | ) | $ | 27,430 | $ | — | $ | 385,573 | ||||||||||||||||||||||
Balance at December 31, 2013 | 12,948 | $ | 478,774 | 124,051 | $ | 1,240 | $ | 2,354,328 | $ | 24,937 | $ | (2,568,350 | ) | $ | 23,301 | — | $ | 314,230 | |||||||||||||||||||||||
Conversion of preferred stock into common stock | — | (8 | ) | — | — | 8 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Issuance of stock awards | — | — | 250 | 3 | (3 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||
Stock awards - amortization | — | — | — | — | 959 | — | — | — | — | 959 | |||||||||||||||||||||||||||||||
Forfeiture of stock awards | — | — | (115 | ) | (1 | ) | — | — | (931 | ) | — | — | (932 | ) | |||||||||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | (679 | ) | — | — | — | — | (679 | ) | |||||||||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | — | 1,568 | — | 1,568 | |||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | (587 | ) | — | (587 | ) | |||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
$0.02 per common share | — | — | — | — | — | — | (2,517 | ) | — | — | (2,517 | ) | |||||||||||||||||||||||||||||
$0.4875 per Series A preferred share | — | — | — | — | — | — | (6,279 | ) | — | — | (6,279 | ) | |||||||||||||||||||||||||||||
$0.50 per Series C depositary preferred share | — | — | — | — | — | — | (3,399 | ) | — | — | (3,399 | ) | |||||||||||||||||||||||||||||
Preferred distributions - consolidated joint venture | — | — | — | — | — | — | — | — | (181 | ) | (181 | ) | |||||||||||||||||||||||||||||
Issuance of preferred equity - consolidated joint venture | — | — | — | — | — | — | — | — | 40,909 | 40,909 | |||||||||||||||||||||||||||||||
Comprehensive loss (attributable to FelCor and noncontrolling interests in other partnerships): | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | — | — | — | (617 | ) | — | — | — | $ | (617 | ) | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (14,818 | ) | (78 | ) | 181 | (14,715 | ) | ||||||||||||||||||||||||||||
Comprehensive loss | $ | (15,332 | ) | (15,332 | ) | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2014 | 12,948 | $ | 478,766 | 124,186 | $ | 1,242 | $ | 2,354,613 | $ | 24,320 | $ | (2,596,294 | ) | $ | 24,204 | $ | 40,909 | $ | 327,760 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (14,836 | ) | $ | (26,605 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 29,601 | 31,570 | |||||
Gain on sale of properties, net | (5,848 | ) | — | ||||
Amortization of deferred financing fees and debt discount | 2,929 | 2,694 | |||||
Amortization of fixed stock and directors’ compensation | 1,446 | 1,578 | |||||
Equity in income from unconsolidated entities | (643 | ) | (89 | ) | |||
Distributions of income from unconsolidated entities | 824 | 619 | |||||
Debt extinguishment | 251 | — | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 152 | (8,903 | ) | ||||
Other assets | (2,572 | ) | (3,162 | ) | |||
Accrued expenses and other liabilities | 11,098 | 7,177 | |||||
Net cash flow provided by operating activities | 22,402 | 4,879 | |||||
Cash flows from investing activities: | |||||||
Improvements and additions to hotels | (28,617 | ) | (23,342 | ) | |||
Hotel development | (23,622 | ) | (8,260 | ) | |||
Net proceeds from asset dispositions | 39,896 | (232 | ) | ||||
Change in restricted cash – investing | 10,180 | 825 | |||||
Insurance proceeds | 255 | — | |||||
Distributions from unconsolidated entities | 2,128 | 1,685 | |||||
Net cash flow provided by (used in) investing activities | 220 | (29,324 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 81,000 | 84,245 | |||||
Repayment of borrowings | (105,353 | ) | (32,346 | ) | |||
Payment of deferred financing fees | (5 | ) | (2,022 | ) | |||
Distributions paid to noncontrolling interests | (587 | ) | (284 | ) | |||
Contributions from noncontrolling interests | 1,568 | 602 | |||||
Distributions paid to FelCor LP limited partners | (7 | ) | — | ||||
Distributions paid to preferred stockholders | (9,678 | ) | (9,678 | ) | |||
Preferred distributions - consolidated joint venture | (65 | ) | — | ||||
Distributions paid to common stockholders | (2,484 | ) | — | ||||
Net proceeds from issuance of preferred equity - consolidated joint venture | 40,909 | — | |||||
Net cash flow provided by financing activities | 5,298 | 40,517 | |||||
Effect of exchange rate changes on cash | (39 | ) | (21 | ) | |||
Net change in cash and cash equivalents | 27,881 | 16,051 | |||||
Cash and cash equivalents at beginning of periods | 45,645 | 45,745 | |||||
Cash and cash equivalents at end of periods | $ | 73,526 | $ | 61,796 | |||
Supplemental cash flow information – interest paid, net of capitalized interest | $ | 14,511 | $ | 7,013 |
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $915,561 and $929,801 at March 31, 2014 and December 31, 2013, respectively | $ | 1,611,247 | $ | 1,653,267 | |||
Hotel development | 236,729 | 216,747 | |||||
Investment in unconsolidated entities | 44,634 | 46,943 | |||||
Hotel held for sale | 19,137 | 16,319 | |||||
Cash and cash equivalents | 73,526 | 45,645 | |||||
Restricted cash | 67,047 | 77,227 | |||||
Accounts receivable, net of allowance for doubtful accounts of $179 and $262 at March 31, 2014 and December 31, 2013, respectively | 34,486 | 35,747 | |||||
Deferred expenses, net of accumulated amortization of $21,360 and $20,362 at March 31, 2014 and December 31, 2013, respectively | 27,635 | 29,325 | |||||
Other assets | 22,828 | 23,060 | |||||
Total assets | $ | 2,137,269 | $ | 2,144,280 | |||
Liabilities and Partners’ Capital | |||||||
Debt, net of discount of $3,190 and $4,714 at March 31, 2014 and December 31, 2013, respectively | $ | 1,640,628 | $ | 1,663,226 | |||
Distributions payable | 11,195 | 11,047 | |||||
Accrued expenses and other liabilities | 152,103 | 150,738 | |||||
Total liabilities | 1,803,926 | 1,825,011 | |||||
Commitments and contingencies | |||||||
Redeemable units, 618 units issued and outstanding at March 31, 2014 and December 31, 2013 | 5,583 | 5,039 | |||||
Capital: | |||||||
Preferred units: | |||||||
Series A Cumulative Convertible Preferred Units, 12,880 units issued and outstanding at March 31, 2014 and December 31, 2013 | 309,354 | 309,362 | |||||
Series C Cumulative Redeemable Preferred Units, 68 units issued and outstanding at March 31, 2014 and December 31, 2013 | 169,412 | 169,412 | |||||
Common units, 124,186 and 124,051 units issued and outstanding at March 31, 2014 and December 31, 2013, respectively | (240,542 | ) | (212,888 | ) | |||
Accumulated other comprehensive income | 24,423 | 25,043 | |||||
Total FelCor LP partners’ capital | 262,647 | 290,929 | |||||
Noncontrolling interests | 24,204 | 23,301 | |||||
Preferred capital in consolidated joint venture | 40,909 | — | |||||
Total partners’ capital | 327,760 | 314,230 | |||||
Total liabilities and partners’ capital | $ | 2,137,269 | $ | 2,144,280 |
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Revenues: | ||||||||
Hotel operating revenue | $ | 221,022 | $ | 208,538 | ||||
Other revenue | 327 | 399 | ||||||
Total revenues | 221,349 | 208,937 | ||||||
Expenses: | ||||||||
Hotel departmental expenses | 83,523 | 80,405 | ||||||
Other property-related costs | 61,578 | 59,428 | ||||||
Management and franchise fees | 9,013 | 9,163 | ||||||
Taxes, insurance and lease expense | 23,633 | 22,164 | ||||||
Corporate expenses | 7,825 | 7,832 | ||||||
Depreciation and amortization | 29,601 | 29,755 | ||||||
Conversion expenses | — | 628 | ||||||
Other expenses | 2,014 | 821 | ||||||
Total operating expenses | 217,187 | 210,196 | ||||||
Operating income (loss) | 4,162 | (1,259 | ) | |||||
Interest expense, net | (25,227 | ) | (26,285 | ) | ||||
Debt extinguishment | (6 | ) | — | |||||
Loss before equity in income from unconsolidated entities | (21,071 | ) | (27,544 | ) | ||||
Equity in income from unconsolidated entities | 643 | 89 | ||||||
Loss from continuing operations | (20,428 | ) | (27,455 | ) | ||||
Income from discontinued operations | 135 | 850 | ||||||
Loss before gain on sale of property | (20,293 | ) | (26,605 | ) | ||||
Gain on sale of property, net | 5,457 | — | ||||||
Net loss | (14,836 | ) | (26,605 | ) | ||||
Net loss attributable to noncontrolling interests | 78 | 240 | ||||||
Preferred distributions - consolidated joint venture | (181 | ) | — | |||||
Net loss attributable to FelCor LP | (14,939 | ) | (26,365 | ) | ||||
Preferred distributions | (9,678 | ) | (9,678 | ) | ||||
Net loss attributable to FelCor LP common unitholders | $ | (24,617 | ) | $ | (36,043 | ) | ||
Basic and diluted per common unit data: | ||||||||
Loss from continuing operations | $ | (0.20 | ) | $ | (0.30 | ) | ||
Net loss | $ | (0.20 | ) | $ | (0.29 | ) | ||
Basic and diluted weighted average common units outstanding | 124,764 | 124,435 |
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Net loss | $ | (14,836 | ) | $ | (26,605 | ) | ||
Foreign currency translation adjustment | (620 | ) | (357 | ) | ||||
Comprehensive loss | (15,456 | ) | (26,962 | ) | ||||
Comprehensive loss attributable to noncontrolling interests | 78 | 240 | ||||||
Comprehensive loss attributable to FelCor LP | $ | (15,378 | ) | $ | (26,722 | ) |
Preferred Units | Common Units | Accumulated Other Comprehensive Income | Noncontrolling Interests | Preferred Capital in Consolidated Joint Venture | Comprehensive Loss | Total Partners’ Capital | |||||||||||||||||||||
Balance at December 31, 2012 | $ | 478,774 | $ | (110,258 | ) | $ | 26,151 | $ | 27,352 | $ | — | $ | 422,019 | ||||||||||||||
FelCor restricted stock compensation | — | 671 | — | — | — | 671 | |||||||||||||||||||||
Contributions | — | — | — | 602 | — | 602 | |||||||||||||||||||||
Distributions | — | (9,678 | ) | — | (284 | ) | — | (9,962 | ) | ||||||||||||||||||
Allocation to redeemable units | — | (795 | ) | — | — | — | (795 | ) | |||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||||||
Foreign exchange translation | (357 | ) | — | $ | (357 | ) | |||||||||||||||||||||
Net loss | (26,365 | ) | (240 | ) | — | (26,605 | ) | ||||||||||||||||||||
Comprehensive loss | $ | (26,962 | ) | (26,962 | ) | ||||||||||||||||||||||
Balance at March 31, 2013 | $ | 478,774 | $ | (146,425 | ) | $ | 25,794 | $ | 27,430 | $ | — | $ | 385,573 | ||||||||||||||
Balance at December 31, 2013 | $ | 478,774 | $ | (212,888 | ) | $ | 25,043 | $ | 23,301 | — | $ | 314,230 | |||||||||||||||
Conversion of preferred units into common units | (8 | ) | 8 | — | — | — | — | ||||||||||||||||||||
FelCor restricted stock compensation | — | 27 | — | — | — | 27 | |||||||||||||||||||||
Contributions | — | — | — | 1,568 | — | 1,568 | |||||||||||||||||||||
Distributions | — | (12,195 | ) | — | (587 | ) | (181 | ) | (12,963 | ) | |||||||||||||||||
Allocation to redeemable units | — | (555 | ) | — | — | — | (555 | ) | |||||||||||||||||||
Issuance of preferred capital - consolidated joint venture | — | — | — | — | 40,909 | 40,909 | |||||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||||||
Foreign exchange translation | (620 | ) | — | $ | (620 | ) | |||||||||||||||||||||
Net loss | (14,939 | ) | (78 | ) | 181 | (14,836 | ) | ||||||||||||||||||||
Comprehensive loss | $ | (15,456 | ) | (15,456 | ) | ||||||||||||||||||||||
Balance at March 31, 2014 | $ | 478,766 | $ | (240,542 | ) | $ | 24,423 | $ | 24,204 | $ | 40,909 | $ | 327,760 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (14,836 | ) | $ | (26,605 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 29,601 | 31,570 | |||||
Gain on sale of properties, net | (5,848 | ) | — | ||||
Amortization of deferred financing fees and debt discount | 2,929 | 2,694 | |||||
Amortization of fixed stock and directors’ compensation | 1,446 | 1,578 | |||||
Equity in income from unconsolidated entities | (643 | ) | (89 | ) | |||
Distributions of income from unconsolidated entities | 824 | 619 | |||||
Debt extinguishment | 251 | — | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 152 | (8,903 | ) | ||||
Other assets | (2,572 | ) | (3,162 | ) | |||
Accrued expenses and other liabilities | 11,098 | 7,177 | |||||
Net cash flow provided by operating activities | 22,402 | 4,879 | |||||
Cash flows from investing activities: | |||||||
Improvements and additions to hotels | (28,617 | ) | (23,342 | ) | |||
Hotel development | (23,622 | ) | (8,260 | ) | |||
Net proceeds from asset dispositions | 39,896 | (232 | ) | ||||
Change in restricted cash – investing | 10,180 | 825 | |||||
Insurance proceeds | 255 | — | |||||
Distributions from unconsolidated entities | 2,128 | 1,685 | |||||
Net cash flow provided by (used in) investing activities | 220 | (29,324 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 81,000 | 84,245 | |||||
Repayment of borrowings | (105,353 | ) | (32,346 | ) | |||
Payment of deferred financing fees | (5 | ) | (2,022 | ) | |||
Distributions paid to noncontrolling interests | (587 | ) | (284 | ) | |||
Contributions from noncontrolling interests | 1,568 | 602 | |||||
Distributions paid to FelCor LP limited partners | (7 | ) | — | ||||
Distributions paid to preferred unitholders | (9,678 | ) | (9,678 | ) | |||
Preferred distributions - consolidated joint venture | (65 | ) | — | ||||
Distributions paid to common unitholders | (2,484 | ) | — | ||||
Net proceeds from issuance of preferred capital - consolidated joint venture | 40,909 | — | |||||
Net cash flow provided by financing activities | 5,298 | 40,517 | |||||
Effect of exchange rate changes on cash | (39 | ) | (21 | ) | |||
Net change in cash and cash equivalents | 27,881 | 16,051 | |||||
Cash and cash equivalents at beginning of periods | 45,645 | 45,745 | |||||
Cash and cash equivalents at end of periods | $ | 73,526 | $ | 61,796 | |||
Supplemental cash flow information – interest paid, net of capitalized interest | $ | 14,511 | $ | 7,013 |
1. | Organization |
Brand | Hotels | Rooms | |||||
Embassy Suites Hotels® | 31 | 8,167 | |||||
Wyndham® and Wyndham Grand® | 8 | 2,528 | |||||
Holiday Inn® | 4 | 1,702 | |||||
Sheraton® and Westin® | 4 | 1,604 | |||||
Marriott® and Renaissance® | 3 | 1,321 | |||||
DoubleTree by Hilton® and Hilton® | 4 | 998 | |||||
Fairmont® | 1 | 383 | |||||
Morgans and Royalton | 2 | 285 | |||||
Total | 57 | 16,988 |
2. | Investment in Unconsolidated Entities |
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Investment in hotels and other properties, net of accumulated depreciation | $ | 136,484 | $ | 140,145 | |||||
Total assets | $ | 150,837 | $ | 155,848 | |||||
Debt | $ | 146,921 | $ | 146,358 | |||||
Total liabilities | $ | 150,745 | $ | 152,068 | |||||
Equity | $ | 92 | $ | 3,780 |
2. | Investment in Unconsolidated Entities — (continued) |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Total revenues | $ | 14,617 | $ | 13,608 | |||
Net income | $ | 2,216 | $ | 1,108 | |||
Net income attributable to FelCor | $ | 1,108 | $ | 554 | |||
Depreciation of cost in excess of book value | (465 | ) | (465 | ) | |||
Equity in income from unconsolidated entities | $ | 643 | $ | 89 |
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Hotel-related investments | $ | (7,564 | ) | $ | (6,349 | ) | |||
Cost in excess of book value of hotel investments | 44,588 | 45,053 | |||||||
Land and condominium investments | 7,610 | 8,239 | |||||||
Investment in unconsolidated entities | $ | 44,634 | $ | 46,943 |
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Hotel investments | $ | 1,272 | $ | 708 | |||
Other investments | (629 | ) | (619 | ) | |||
Equity in income from unconsolidated entities | $ | 643 | $ | 89 |
3. | Debt |
Encumbered | Interest | Maturity | March 31, | December 31, | |||||||||||||
Hotels | Rate (%) | Date | 2014 | 2013 | |||||||||||||
Line of credit | 9 | LIBOR + 3.375 | June 2016(a) | $ | 93,000 | $ | 88,000 | ||||||||||
Hotel mortgage debt | |||||||||||||||||
Mortgage debt(b) | 3 | 6.58 | July - August 2014 | 34,821 | 35,133 | ||||||||||||
Mortgage debt | 1 | 5.81 | July 2016 | 9,772 | 9,904 | ||||||||||||
Mortgage debt(b) | 4 | 4.95 | October 2022 | 125,871 | 126,220 | ||||||||||||
Mortgage debt | 1 | 4.94 | October 2022 | 31,589 | 31,714 | ||||||||||||
Senior notes | |||||||||||||||||
Senior secured notes | 11 | 10.00 | October 2014 | 230,714 | 229,190 | ||||||||||||
Senior secured notes | 6 | 6.75 | June 2019 | 525,000 | 525,000 | ||||||||||||
Senior secured notes | 9 | 5.625 | March 2023 | 525,000 | 525,000 | ||||||||||||
Knickerbocker loan(c) | |||||||||||||||||
Construction tranche | — | LIBOR + 4.00 | May 2016 | 12,994 | — | ||||||||||||
Cash collateralized tranche | — | LIBOR + 1.25 | May 2016 | 51,867 | 64,861 | ||||||||||||
Retired debt | — | — | — | — | 28,204 | ||||||||||||
Total | 44 | $ | 1,640,628 | $ | 1,663,226 |
(a) | Our $225 million line of credit can be extended for one year (to 2017), subject to satisfying certain conditions. |
(b) | This debt is comprised of separate non-cross-collateralized loans each secured by a mortgage of a different hotel. |
(c) | In November 2012, we obtained an $85.0 million construction loan to finance the redevelopment of the Knickerbocker Hotel. This loan can be extended for one year subject to satisfying certain conditions. In January 2014, we drew $13.0 million of the cash collateral to fund construction costs, leaving $51.9 million of cash collateral to be drawn before drawing on the remaining $20.1 million available under the construction loan. |
4. | Hotel Operating Revenue, Departmental Expenses, and Other Property-Related Costs |
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Room revenue | $ | 169,829 | $ | 160,507 | |||
Food and beverage revenue | 39,785 | 36,943 | |||||
Other operating departments | 11,408 | 11,088 | |||||
Total hotel operating revenue | $ | 221,022 | $ | 208,538 |
Three Months Ended March 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||
Room | $ | 46,733 | 21.1 | % | $ | 44,870 | 21.5 | % | |||||||
Food and beverage | 31,187 | 14.1 | 30,246 | 14.5 | |||||||||||
Other operating departments | 5,603 | 2.6 | 5,289 | 2.6 | |||||||||||
Total hotel departmental expenses | $ | 83,523 | 37.8 | % | $ | 80,405 | 38.6 | % |
Three Months Ended March 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||
Hotel general and administrative expense | $ | 19,834 | 9.0 | % | $ | 20,047 | 9.6 | % | |||||||
Marketing | 20,071 | 9.1 | 19,010 | 9.1 | |||||||||||
Repair and maintenance | 11,687 | 5.3 | 11,561 | 5.5 | |||||||||||
Utilities | 9,986 | 4.5 | 8,810 | 4.3 | |||||||||||
Total other property-related costs | $ | 61,578 | 27.9 | % | $ | 59,428 | 28.5 | % |
4. | Hotel Operating Revenue, Departmental Expenses, and Other Property-Related Costs — (continued) |
5. | Taxes, Insurance and Lease Expense |
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Hotel lease expense(a) | $ | 10,391 | $ | 9,558 | |||
Land lease expense(b) | 2,462 | 2,394 | |||||
Real estate and other taxes | 8,109 | 7,594 | |||||
Property insurance, general liability insurance and other | 2,671 | 2,618 | |||||
Total taxes, insurance and lease expense | $ | 23,633 | $ | 22,164 |
(a) | Hotel lease expense is recorded by the consolidated operating lessees of 12 hotels owned by unconsolidated entities and is partially (generally 49%) offset through noncontrolling interests in other partnerships. Our 50% share of the corresponding lease income is recorded through equity in income from unconsolidated entities. Hotel lease expense includes percentage rent of $4.9 million and $4.1 million for the three months ended March 31, 2014 and 2013, respectively. |
(b) | Land lease expense includes percentage rent of $1.0 million and $968,000 for the three months ended March 31, 2014 and 2013, respectively. |
6. | Hotel Dispositions |
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Hotel operating revenue | $ | 729 | $ | 11,754 | |||||
Operating expenses | (674 | ) | (10,706 | ) | |||||
Operating income from discontinued operations | 55 | 1,048 | |||||||
Interest expense, net | (66 | ) | (198 | ) | |||||
Debt extinguishment | (245 | ) | — | ||||||
Gain on sale of hotels, net | 391 | — | |||||||
Income from discontinued operations | $ | 135 | $ | 850 |
7. | Loss Per Share/Unit |
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Numerator: | |||||||
Net loss attributable to FelCor | $ | (14,818 | ) | $ | (26,185 | ) | |
Discontinued operations attributable to FelCor | (134 | ) | (830 | ) | |||
Loss from continuing operations attributable to FelCor | (14,952 | ) | (27,015 | ) | |||
Less: Preferred dividends | (9,678 | ) | (9,678 | ) | |||
Numerator for continuing operations attributable to FelCor common stockholders | (24,630 | ) | (36,693 | ) | |||
Discontinued operations attributable to FelCor | 134 | 830 | |||||
Numerator for basic and diluted loss attributable to FelCor common stockholders | $ | (24,496 | ) | $ | (35,863 | ) | |
Denominator: | |||||||
Denominator for basic and diluted loss per share | 124,146 | 123,814 | |||||
Basic and diluted loss per share data: | |||||||
Loss from continuing operations | $ | (0.20 | ) | $ | (0.30 | ) | |
Discontinued operations | $ | — | $ | 0.01 | |||
Net loss | $ | (0.20 | ) | $ | (0.29 | ) |
7. | Loss Per Share/Unit — (continued) |
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Numerator: | |||||||
Net loss attributable to FelCor LP | $ | (14,939 | ) | $ | (26,365 | ) | |
Discontinued operations attributable to FelCor LP | (135 | ) | (834 | ) | |||
Loss from continuing operations attributable to FelCor LP | (15,074 | ) | (27,199 | ) | |||
Less: Preferred distributions | (9,678 | ) | (9,678 | ) | |||
Numerator for continuing operations attributable to FelCor LP common unitholders | (24,752 | ) | (36,877 | ) | |||
Discontinued operations attributable to FelCor LP | 135 | 834 | |||||
Numerator for basic and diluted loss attributable to FelCor common unitholders | $ | (24,617 | ) | $ | (36,043 | ) | |
Denominator: | |||||||
Denominator for basic and diluted loss per unit | 124,764 | 124,435 | |||||
Basic and diluted loss per unit data: | |||||||
Loss from continuing operations | $ | (0.20 | ) | $ | (0.30 | ) | |
Discontinued operations | $ | — | $ | 0.01 | |||
Net loss | $ | (0.20 | ) | $ | (0.29 | ) |
Three Months Ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Series A convertible preferred shares/units | 9,985 | 9,985 | ||||
FelCor restricted stock units | 850 | 167 |
8. | Fair Value of Financial Instruments |
9. | Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units |
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Balance at beginning of period | $ | 5,039 | $ | 2,902 | |||||
Redemption value allocation | 679 | 977 | |||||||
Distributions paid to unitholders | (11 | ) | — | ||||||
Comprehensive loss: | |||||||||
Foreign exchange translation | (3 | ) | (2 | ) | |||||
Net loss | (121 | ) | (180 | ) | |||||
Balance at end of period | $ | 5,583 | $ | 3,697 |
11. | FelCor LP’s Consolidating Financial Information |
11. | FelCor LP’s Consolidating Financial Information – (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net investment in hotels | $ | 43,777 | $ | 1,056,263 | $ | 511,207 | $ | — | $ | 1,611,247 | |||||||||
Hotel development | — | — | 236,729 | — | 236,729 | ||||||||||||||
Equity investment in consolidated entities | 1,476,856 | — | — | (1,476,856 | ) | — | |||||||||||||
Investment in unconsolidated entities | 32,312 | 10,977 | 1,345 | — | 44,634 | ||||||||||||||
Hotel held for sale | — | — | 19,137 | — | 19,137 | ||||||||||||||
Cash and cash equivalents | 17,625 | 44,711 | 11,190 | — | 73,526 | ||||||||||||||
Restricted cash | — | 10,019 | 57,028 | — | 67,047 | ||||||||||||||
Accounts receivable, net | 251 | 33,587 | 648 | — | 34,486 | ||||||||||||||
Deferred expenses, net | 19,660 | — | 7,975 | — | 27,635 | ||||||||||||||
Other assets | 5,380 | 11,935 | 18,013 | (12,500 | ) | 22,828 | |||||||||||||
Total assets | $ | 1,595,861 | $ | 1,167,492 | $ | 863,272 | $ | (1,489,356 | ) | $ | 2,137,269 | ||||||||
Debt, net | $ | 1,280,714 | $ | 12,500 | $ | 401,117 | $ | (53,703 | ) | $ | 1,640,628 | ||||||||
Distributions payable | 11,079 | — | 116 | — | 11,195 | ||||||||||||||
Accrued expenses and other liabilities | 35,838 | 103,725 | 12,540 | — | 152,103 | ||||||||||||||
Total liabilities | 1,327,631 | 116,225 | 413,773 | (53,703 | ) | 1,803,926 | |||||||||||||
Redeemable units | 5,583 | — | — | — | 5,583 | ||||||||||||||
Preferred units | 478,766 | — | — | — | 478,766 | ||||||||||||||
Common units | (240,542 | ) | 1,047,284 | 363,946 | (1,411,230 | ) | (240,542 | ) | |||||||||||
Accumulated other comprehensive income | 24,423 | 4,486 | 19,937 | (24,423 | ) | 24,423 | |||||||||||||
Total FelCor LP partners’ capital | 262,647 | 1,051,770 | 383,883 | (1,435,653 | ) | 262,647 | |||||||||||||
Noncontrolling interests | — | (503 | ) | 24,707 | — | 24,204 | |||||||||||||
Preferred capital in consolidated joint venture | — | — | 40,909 | — | 40,909 | ||||||||||||||
Total partners’ capital | 262,647 | 1,051,267 | 449,499 | (1,435,653 | ) | 327,760 | |||||||||||||
Total liabilities and partners’ capital | $ | 1,595,861 | $ | 1,167,492 | $ | 863,272 | $ | (1,489,356 | ) | $ | 2,137,269 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net investment in hotels | $ | 48,971 | $ | 1,053,724 | $ | 550,572 | $ | — | $ | 1,653,267 | |||||||||
Hotel development | — | — | 216,747 | — | 216,747 | ||||||||||||||
Equity investment in consolidated entities | 1,508,593 | — | — | (1,508,593 | ) | — | |||||||||||||
Investment in unconsolidated entities | 34,090 | 11,497 | 1,356 | — | 46,943 | ||||||||||||||
Hotel held for sale | — | — | 16,319 | — | 16,319 | ||||||||||||||
Cash and cash equivalents | 5,227 | 33,283 | 7,135 | — | 45,645 | ||||||||||||||
Restricted cash | — | 9,051 | 68,176 | — | 77,227 | ||||||||||||||
Accounts receivable, net | 516 | 34,366 | 865 | — | 35,747 | ||||||||||||||
Deferred expenses, net | 20,540 | — | 8,785 | — | 29,325 | ||||||||||||||
Other assets | 6,248 | 10,767 | 17,998 | (11,953 | ) | 23,060 | |||||||||||||
Total assets | $ | 1,624,185 | $ | 1,152,688 | $ | 887,953 | $ | (1,520,546 | ) | $ | 2,144,280 | ||||||||
Debt, net | $ | 1,279,190 | $ | 11,953 | $ | 464,036 | $ | (91,953 | ) | $ | 1,663,226 | ||||||||
Distributions payable | 11,047 | — | — | — | 11,047 | ||||||||||||||
Accrued expenses and other liabilities | 37,980 | 96,494 | 16,264 | — | 150,738 | ||||||||||||||
Total liabilities | 1,328,217 | 108,447 | 480,300 | (91,953 | ) | 1,825,011 | |||||||||||||
Redeemable units | 5,039 | — | — | — | 5,039 | ||||||||||||||
Preferred units | 478,774 | — | — | — | 478,774 | ||||||||||||||
Common units | (212,888 | ) | 1,039,903 | 363,647 | (1,403,550 | ) | (212,888 | ) | |||||||||||
Accumulated other comprehensive income | 25,043 | 4,569 | 20,474 | (25,043 | ) | 25,043 | |||||||||||||
Total FelCor LP partners’ capital | 290,929 | 1,044,472 | 384,121 | (1,428,593 | ) | 290,929 | |||||||||||||
Noncontrolling interests | — | (231 | ) | 23,532 | — | 23,301 | |||||||||||||
Total partners’ capital | 290,929 | 1,044,241 | 407,653 | (1,428,593 | ) | 314,230 | |||||||||||||
Total liabilities and partners’ capital | $ | 1,624,185 | $ | 1,152,688 | $ | 887,953 | $ | (1,520,546 | ) | $ | 2,144,280 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 221,022 | $ | — | $ | — | $ | 221,022 | |||||||||
Percentage lease revenue | 1,399 | — | 25,609 | (27,008 | ) | — | |||||||||||||
Other revenue | 1 | 266 | 60 | — | 327 | ||||||||||||||
Total revenues | 1,400 | 221,288 | 25,669 | (27,008 | ) | 221,349 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 154,114 | — | — | 154,114 | ||||||||||||||
Taxes, insurance and lease expense | 419 | 46,829 | 3,393 | (27,008 | ) | 23,633 | |||||||||||||
Corporate expenses | 123 | 5,069 | 2,633 | — | 7,825 | ||||||||||||||
Depreciation and amortization | 991 | 17,767 | 10,843 | — | 29,601 | ||||||||||||||
Other expenses | 35 | 840 | 1,139 | — | 2,014 | ||||||||||||||
Total operating expenses | 1,568 | 224,619 | 18,008 | (27,008 | ) | 217,187 | |||||||||||||
Operating income | (168 | ) | (3,331 | ) | 7,661 | — | 4,162 | ||||||||||||
Interest expense, net | (20,484 | ) | (328 | ) | (4,415 | ) | — | (25,227 | ) | ||||||||||
Debt extinguishment | — | — | (6 | ) | — | (6 | ) | ||||||||||||
Loss before equity in income from unconsolidated entities | (20,652 | ) | (3,659 | ) | 3,240 | — | (21,071 | ) | |||||||||||
Equity in income from consolidated entities | 5,323 | — | — | (5,323 | ) | — | |||||||||||||
Equity in income from unconsolidated entities | 799 | (145 | ) | (11 | ) | — | 643 | ||||||||||||
Loss from continuing operations | (14,530 | ) | (3,804 | ) | 3,229 | (5,323 | ) | (20,428 | ) | ||||||||||
Income from discontinued operations | — | 29 | 106 | — | 135 | ||||||||||||||
Loss before gain on sale of property | (14,530 | ) | (3,775 | ) | 3,335 | (5,323 | ) | (20,293 | ) | ||||||||||
Gain on sale of property, net | (228 | ) | (14 | ) | 5,699 | — | 5,457 | ||||||||||||
Net loss | (14,758 | ) | (3,789 | ) | 9,034 | (5,323 | ) | (14,836 | ) | ||||||||||
Loss attributable to noncontrolling interests | — | 134 | (56 | ) | — | 78 | |||||||||||||
Preferred distributions - consolidated joint venture | — | — | (181 | ) | — | (181 | ) | ||||||||||||
Net loss attributable to FelCor LP | (14,758 | ) | (3,655 | ) | 8,797 | (5,323 | ) | (14,939 | ) | ||||||||||
Preferred distributions | (9,678 | ) | — | — | — | (9,678 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (24,436 | ) | $ | (3,655 | ) | $ | 8,797 | $ | (5,323 | ) | $ | (24,617 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 208,538 | $ | — | $ | — | $ | 208,538 | |||||||||
Percentage lease revenue | 1,262 | — | 23,144 | (24,406 | ) | — | |||||||||||||
Other revenue | 3 | 333 | 63 | — | 399 | ||||||||||||||
Total revenues | 1,265 | 208,871 | 23,207 | (24,406 | ) | 208,937 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 148,996 | — | — | 148,996 | ||||||||||||||
Taxes, insurance and lease expense | 304 | 42,993 | 3,273 | (24,406 | ) | 22,164 | |||||||||||||
Corporate expenses | 109 | 5,543 | 2,180 | — | 7,832 | ||||||||||||||
Depreciation and amortization | 1,250 | 17,596 | 10,909 | — | 29,755 | ||||||||||||||
Conversion expenses | 20 | 391 | 217 | — | 628 | ||||||||||||||
Other expenses | 23 | 517 | 281 | — | 821 | ||||||||||||||
Total operating expenses | 1,706 | 216,036 | 16,860 | (24,406 | ) | 210,196 | |||||||||||||
Operating loss | (441 | ) | (7,165 | ) | 6,347 | — | (1,259 | ) | |||||||||||
Interest expense, net | (21,604 | ) | (303 | ) | (4,378 | ) | — | (26,285 | ) | ||||||||||
Loss before equity in income from unconsolidated entities | (22,045 | ) | (7,468 | ) | 1,969 | — | (27,544 | ) | |||||||||||
Equity in loss from consolidated entities | (4,625 | ) | — | — | 4,625 | — | |||||||||||||
Equity in income from unconsolidated entities | 305 | (205 | ) | (11 | ) | — | 89 | ||||||||||||
Loss from continuing operations | (26,365 | ) | (7,673 | ) | 1,958 | 4,625 | (27,455 | ) | |||||||||||
Income from discontinued operations | — | (415 | ) | 1,265 | — | 850 | |||||||||||||
Net loss | (26,365 | ) | (8,088 | ) | 3,223 | 4,625 | (26,605 | ) | |||||||||||
Loss attributable to noncontrolling interests | — | 256 | (16 | ) | — | 240 | |||||||||||||
Net loss attributable to FelCor LP | (26,365 | ) | (7,832 | ) | 3,207 | 4,625 | (26,365 | ) | |||||||||||
Preferred distributions | (9,678 | ) | — | — | — | (9,678 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (36,043 | ) | $ | (7,832 | ) | $ | 3,207 | $ | 4,625 | $ | (36,043 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (14,758 | ) | $ | (3,789 | ) | $ | 9,034 | $ | (5,323 | ) | $ | (14,836 | ) | |||||
Foreign currency translation adjustment | (620 | ) | (83 | ) | (537 | ) | 620 | (620 | ) | ||||||||||
Comprehensive loss | (15,378 | ) | (3,872 | ) | 8,497 | (4,703 | ) | (15,456 | ) | ||||||||||
Comprehensive loss attributable to noncontrolling interests | — | 134 | (56 | ) | — | 78 | |||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (15,378 | ) | $ | (3,738 | ) | $ | 8,441 | $ | (4,703 | ) | $ | (15,378 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (26,365 | ) | $ | (8,088 | ) | $ | 3,223 | $ | 4,625 | $ | (26,605 | ) | ||||||
Foreign currency translation adjustment | (357 | ) | (95 | ) | (262 | ) | 357 | (357 | ) | ||||||||||
Comprehensive loss | (26,722 | ) | (8,183 | ) | 2,961 | 4,982 | (26,962 | ) | |||||||||||
Comprehensive loss attributable to noncontrolling interests | — | 256 | (16 | ) | — | 240 | |||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (26,722 | ) | $ | (7,927 | ) | $ | 2,945 | $ | 4,982 | $ | (26,722 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Operating activities: | |||||||||||||||||||
Cash flows from operating activities | $ | (14,116 | ) | $ | 21,575 | $ | 14,943 | $ | — | $ | 22,402 | ||||||||
Investing activities: | |||||||||||||||||||
Improvements and additions to hotels | (730 | ) | (20,888 | ) | (6,999 | ) | — | (28,617 | ) | ||||||||||
Hotel development | — | — | (23,622 | ) | — | (23,622 | ) | ||||||||||||
Net proceeds from asset dispositions | (167 | ) | (42 | ) | 40,105 | — | 39,896 | ||||||||||||
Insurance proceeds | — | 255 | — | — | 255 | ||||||||||||||
Change in restricted cash - investing | — | (501 | ) | 10,681 | — | 10,180 | |||||||||||||
Distributions from unconsolidated entities | 1,753 | 375 | — | — | 2,128 | ||||||||||||||
Intercompany financing | 37,827 | — | — | (37,827 | ) | — | |||||||||||||
Cash flows from investing activities | 38,683 | (20,801 | ) | 20,165 | (37,827 | ) | 220 | ||||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from borrowings | — | — | 81,000 | — | 81,000 | ||||||||||||||
Repayment of borrowings | — | — | (105,353 | ) | — | (105,353 | ) | ||||||||||||
Distributions paid to preferred unitholders | (9,678 | ) | — | — | — | (9,678 | ) | ||||||||||||
Net proceeds from issuance of preferred capital - consolidated joint venture | — | — | 40,909 | — | 40,909 | ||||||||||||||
Intercompany financing | — | 10,832 | (48,659 | ) | 37,827 | — | |||||||||||||
Other | (2,491 | ) | (139 | ) | 1,050 | — | (1,580 | ) | |||||||||||
Cash flows from financing activities | (12,169 | ) | 10,693 | (31,053 | ) | 37,827 | 5,298 | ||||||||||||
Effect of exchange rate changes on cash | — | (39 | ) | — | — | (39 | ) | ||||||||||||
Change in cash and cash equivalents | 12,398 | 11,428 | 4,055 | — | 27,881 | ||||||||||||||
Cash and cash equivalents at beginning of period | 5,227 | 33,283 | 7,135 | — | 45,645 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 17,625 | $ | 44,711 | $ | 11,190 | $ | — | $ | 73,526 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Operating activities: | |||||||||||||||||||
Cash flows from operating activities | $ | (3,904 | ) | $ | 6,447 | $ | 2,336 | $ | — | $ | 4,879 | ||||||||
Investing activities: | |||||||||||||||||||
Improvements and additions to hotels | (142 | ) | (14,312 | ) | (8,888 | ) | — | (23,342 | ) | ||||||||||
Hotel development | — | — | (8,260 | ) | — | (8,260 | ) | ||||||||||||
Payment of selling costs | — | (17 | ) | (215 | ) | — | (232 | ) | |||||||||||
Distributions from unconsolidated entities | 1,435 | 250 | — | — | 1,685 | ||||||||||||||
Intercompany financing | 19,554 | — | — | (19,554 | ) | — | |||||||||||||
Other | — | 1,746 | (921 | ) | — | 825 | |||||||||||||
Cash flows from investing activities | 20,847 | (12,333 | ) | (18,284 | ) | (19,554 | ) | (29,324 | ) | ||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from borrowings | — | — | 84,245 | — | 84,245 | ||||||||||||||
Repayment of borrowings | — | — | (32,346 | ) | — | (32,346 | ) | ||||||||||||
Distributions paid to preferred unitholders | (9,678 | ) | — | — | — | (9,678 | ) | ||||||||||||
Intercompany financing | — | 16,792 | (36,346 | ) | 19,554 | — | |||||||||||||
Other | (1,819 | ) | 25 | 90 | — | (1,704 | ) | ||||||||||||
Cash flows from financing activities | (11,497 | ) | 16,817 | 15,643 | 19,554 | 40,517 | |||||||||||||
Effect of exchange rate changes on cash | — | (21 | ) | — | — | (21 | ) | ||||||||||||
Change in cash and cash equivalents | 5,446 | 10,910 | (305 | ) | — | 16,051 | |||||||||||||
Cash and cash equivalents at beginning of period | 8,312 | 30,425 | 7,008 | — | 45,745 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 13,758 | $ | 41,335 | $ | 6,703 | $ | — | $ | 61,796 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Total revenue was $221.3 million, 5.9% more than last year. The increase was driven by a 6.4% increase in same-store RevPAR, reflecting a 4.8% increase in ADR and a 100 basis point increase in occupancy. |
• | Hotel departmental expenses increased $3.1 million. As a percentage of total revenue, hotel departmental expenses decreased from 38.5% last year to 37.7% in the current period. In the |
• | Other property-related costs increased $2.2 million. As a percentage of total revenue, other property-related costs decreased from 28.4% last year to 27.8% in the current period, primarily attributable to growth in ADR and a change in employee benefit plans implemented by one of the management companies during the current period. |
• | Management and franchise fees decreased $150,000. As a percentage of total revenue, these costs decreased from 4.4% last year to 4.1% in the current period. In March 2013, we converted eight hotels to Wyndham brands and management. Wyndham’s base management fee is lower than the previous management company, resulting in an improved cost structure. |
• | Taxes, insurance and lease expense increased $1.5 million and increased slightly as a percentage of total revenue from 10.6% last year to 10.7% in the current period. The increase reflects higher percentage lease expense (computed as a percentage of hotel revenues in excess of base rent; as revenue increases, percentage rent increases at a faster rate than other expenses) and higher property and other taxes. |
• | Conversion expenses. We converted eight hotels to Wyndham brands and management in March 2013. We classified those expenses as conversion expense in our 2013 statements of operations. |
• | Other expenses increased $1.2 million compared to the same period in 2013, primarily related to severance costs for certain hotel employees and pre-opening costs for the Knickerbocker Hotel. |
• | Net interest expense decreased $1.1 million, primarily reflecting increased capitalized interest attributable to renovation and redevelopment projects. |
• | Discontinued operations include the results of operations for one hotel sold in January 2014 and five hotels sold in 2013. Discontinued operations in 2014 included a $391,000 net gain on sale primarily related to one hotel, offset by debt extinguishment charges of $245,000 (related to $10.9 million in repayment of debt for the hotel sold in the current period). |
Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net loss | $ | (14,836 | ) | $ | (26,605 | ) | |||||||||||||||
Noncontrolling interests | 199 | 420 | |||||||||||||||||||
Preferred distributions - consolidated joint venture | (181 | ) | — | ||||||||||||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | |||||||||||||||||
Net loss attributable to FelCor common stockholders | (24,496 | ) | 124,146 | $ | (0.20 | ) | (35,863 | ) | 123,814 | $ | (0.29 | ) | |||||||||
Depreciation and amortization | 29,601 | — | 0.24 | 29,755 | — | 0.24 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 2,675 | — | 0.02 | 4,521 | — | 0.04 | |||||||||||||||
Gain on sale of hotels, net of noncontrolling interests in other partnerships | (5,851 | ) | — | (0.05 | ) | — | — | — | |||||||||||||
Loss on sale, unconsolidated entities | 33 | — | — | — | — | — | |||||||||||||||
Noncontrolling interests in FelCor LP | (121 | ) | 618 | — | (180 | ) | 621 | — | |||||||||||||
Conversion of unvested restricted stock | — | 858 | — | — | — | — | |||||||||||||||
FFO | 1,841 | 125,622 | 0.01 | (1,767 | ) | 124,435 | (0.01 | ) | |||||||||||||
Acquisition costs | — | — | — | 23 | — | — | |||||||||||||||
Debt extinguishment, including discontinued operations | 251 | — | — | — | — | — | |||||||||||||||
Severance costs | 400 | — | — | — | — | — | |||||||||||||||
Conversion expenses | — | — | — | 628 | — | — | |||||||||||||||
Variable stock compensation | 564 | — | 0.01 | 102 | — | — | |||||||||||||||
Pre-opening costs, net of noncontrolling interests | 1,053 | — | 0.01 | 241 | — | — | |||||||||||||||
Adjusted FFO | $ | 4,109 | 125,622 | $ | 0.03 | $ | (773 | ) | 124,435 | $ | (0.01 | ) |
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Net loss | $ | (14,836 | ) | $ | (26,605 | ) | |
Depreciation and amortization | 29,601 | 29,755 | |||||
Depreciation, discontinued operations and unconsolidated entities | 2,675 | 4,521 | |||||
Interest expense | 25,242 | 26,307 | |||||
Interest expense, discontinued operations and unconsolidated entities | 744 | 870 | |||||
Noncontrolling interests in other partnerships | 78 | 240 | |||||
EBITDA | 43,504 | 35,088 | |||||
Debt extinguishment, including discontinued operations | 251 | — | |||||
Acquisition costs | — | 23 | |||||
Gain on sale of hotels, net of noncontrolling interests in other partnerships | (5,851 | ) | — | ||||
Loss on sale, unconsolidated entities | 33 | — | |||||
Amortization of fixed stock and directors’ compensation | 1,122 | 1,578 | |||||
Severance costs | 400 | — | |||||
Conversion expenses | — | 628 | |||||
Variable stock compensation | 564 | 102 | |||||
Pre-opening costs, net of noncontrolling interests | 1,053 | 241 | |||||
Adjusted EBITDA | 41,076 | 37,660 | |||||
Adjusted EBITDA from hotels, disposed and held for sale | (1,179 | ) | (3,852 | ) | |||
Same-store Adjusted EBITDA | $ | 39,897 | $ | 33,808 |
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Same-store operating revenue: | |||||||
Room | $ | 166,486 | $ | 157,069 | |||
Food and beverage | 39,430 | 36,616 | |||||
Other operating departments | 11,293 | 10,959 | |||||
Same-store operating revenue | 217,209 | 204,644 | |||||
Same-store operating expense: | |||||||
Room | 45,926 | 44,043 | |||||
Food and beverage | 30,896 | 29,953 | |||||
Other operating departments | 5,566 | 5,247 | |||||
Other property related costs | 60,408 | 58,168 | |||||
Management and franchise fees | 8,865 | 9,004 | |||||
Taxes, insurance and lease expense | 14,974 | 14,233 | |||||
Same-store operating expense | 166,635 | 160,648 | |||||
Hotel EBITDA | $ | 50,574 | $ | 43,996 | |||
Hotel EBITDA Margin | 23.3 | % | 21.5 | % |
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Hotel EBITDA - Comparable core (31) | $ | 33,413 | $ | 28,581 | |||
Hotel EBITDA - Non-strategic (18) | 11,111 | 10,323 | |||||
Hotel EBITDA - Comparable (49) | 44,524 | 38,904 | |||||
Hotel EBITDA - Wyndham (8) | 6,050 | 5,092 | |||||
Hotel EBITDA (57) | $ | 50,574 | $ | 43,996 | |||
Hotel EBITDA Margin - Comparable core (31) | 22.9 | % | 21.0 | % | |||
Hotel EBITDA Margin - Non-strategic (18) | 23.8 | % | 23.1 | % | |||
Hotel EBITDA Margin - Comparable (49) | 23.1 | % | 21.5 | % | |||
Hotel EBITDA Margin - Wyndham (8) | 24.6 | % | 21.2 | % | |||
Hotel EBITDA Margin (57) | 23.3 | % | 21.5 | % |
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Same-store operating revenue | $ | 217,209 | $ | 204,644 | |||
Other revenue | 327 | 399 | |||||
Revenue from hotels, disposed and held for sale(a) | 3,813 | 3,894 | |||||
Total revenue | 221,349 | 208,937 | |||||
Same-store operating expense | 166,635 | 160,648 | |||||
Consolidated hotel lease expense(b) | 10,391 | 9,558 | |||||
Unconsolidated taxes, insurance and lease expense | (1,965 | ) | (1,898 | ) | |||
Corporate expenses | 7,825 | 7,832 | |||||
Depreciation and amortization | 29,601 | 29,755 | |||||
Conversion expenses | — | 628 | |||||
Expenses from hotels, disposed and held for sale(a) | 2,686 | 2,852 | |||||
Other expenses | 2,014 | 821 | |||||
Total operating expense | 217,187 | 210,196 | |||||
Operating income (loss) | $ | 4,162 | $ | (1,259 | ) |
(a) | In March 2014, we sold a 218-room Embassy Suites hotel in Bloomington, Minnesota, for $24 million. In addition, we have agreed to sell the 208-room DoubleTree Suites in Charlotte, North Carolina, for $37 million. The hotel is held for sale on our March 31, 2014 balance sheet, as the purchaser of the Charlotte hotel paid a non-refundable deposit toward the purchase price. The closing is scheduled for May. Under recently issued GAAP accounting guidance, we included the operating performance for these hotels in continuing operations in our Consolidated Statements of Operations for the first quarter 2014 and 2013. However, for purposes of our Non-GAAP reporting metrics, we have excluded the results of these hotels to provide a meaningful same-store comparison. |
(b) | Consolidated hotel lease expense represents the percentage lease expense of our 51% owned operating lessees. The offsetting percentage lease revenue is included in equity in income from unconsolidated entities. |
• | Gains and losses related to extinguishment of debt and interest rate swaps - We exclude gains and losses related to extinguishment of debt and interest rate swaps from FFO and EBITDA because we believe that it is not indicative of ongoing operating performance of our hotel assets. This also represents an acceleration of interest expense or a reduction of interest expense, and interest expense is excluded from EBITDA. |
• | Cumulative effect of a change in accounting principle - Infrequently, the Financial Accounting Standards Board promulgates new accounting standards that require the consolidated statements of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments in computing Adjusted FFO and Adjusted EBITDA because they do not reflect our actual performance for that period. |
• | Other transaction costs - From time to time, we periodically incur costs that are not indicative of ongoing operating performance. Such costs include, but are not limited to, conversions costs, acquisition costs, pre-opening costs and severance costs. We exclude these costs from the calculation of Adjusted FFO and Adjusted EBITDA. |
• | Variable stock compensation - We exclude the cost associated with our variable stock compensation. This cost is subject to volatility related to the price and dividends of our common stock that does not necessarily correspond to our operating performance. |
Hotels | Room Count at March 31, 2014 | ||||||
Consolidated Hotels(a) | 57 | 16,988 | |||||
Unconsolidated hotel operations | 1 | 171 | |||||
Total hotels | 58 | 17,159 | |||||
50% joint ventures | 13 | (1,573 | ) | ||||
60% joint venture | 1 | (214 | ) | ||||
82% joint venture | 1 | (40 | ) | ||||
90% joint ventures | 2 | (44 | ) | ||||
Pro rata rooms attributed to joint venture partners | (1,871 | ) | |||||
Pro rata share of rooms owned | 15,288 |
Year Ended December 31, 2013 | ||||||||||||||||||
Brand | Hotels | Rooms | Hotel Operating Revenue (in thousands) | Hotel EBITDA (in thousands)(a) | ||||||||||||||
Embassy Suites Hotels | 18 | 4,982 | $ | 255,744 | $ | 81,062 | ||||||||||||
Wyndham and Wyndham Grand(b) | 8 | 2,528 | 103,931 | 35,046 | ||||||||||||||
Renaissance and Marriott | 3 | 1,321 | 119,838 | 21,341 | ||||||||||||||
DoubleTree by Hilton and Hilton | 3 | 802 | 41,106 | 12,621 | ||||||||||||||
Sheraton and Westin | 2 | 673 | 37,996 | 10,174 | ||||||||||||||
Fairmont | 1 | 383 | 49,104 | 7,845 | ||||||||||||||
Holiday Inn | 2 | 968 | 46,403 | 6,406 | ||||||||||||||
Morgans and Royalton | 2 | 285 | 34,340 | 3,514 | ||||||||||||||
Core hotels | 39 | 11,942 | 688,462 | 178,009 | ||||||||||||||
Non-strategic hotels(c) | 18 | 5,046 | 184,125 | 45,611 | ||||||||||||||
Same-store hotels | 57 | 16,988 | $ | 872,587 | $ | 223,620 | ||||||||||||
Market | ||||||||||||||||||
San Francisco area | 5 | 1,903 | $ | 124,825 | $ | 31,587 | ||||||||||||
Boston | 3 | 916 | 76,510 | 17,794 | ||||||||||||||
South Florida | 3 | 923 | 50,011 | 14,305 | ||||||||||||||
Los Angeles area | 2 | 481 | 23,760 | 10,451 | ||||||||||||||
Myrtle Beach | 2 | 640 | 37,955 | 10,120 | ||||||||||||||
New York area | 3 | 546 | 48,045 | 6,761 | ||||||||||||||
Atlanta | 1 | 316 | 14,016 | 5,491 | ||||||||||||||
Philadelphia | 2 | 728 | 34,271 | 7,567 | ||||||||||||||
Tampa | 1 | 361 | 46,423 | 7,435 | ||||||||||||||
Austin | 1 | 188 | 13,126 | 5,680 | ||||||||||||||
Other markets | 16 | 4,940 | 219,520 | 60,818 | ||||||||||||||
Core hotels | 39 | 11,942 | 688,462 | 178,009 | ||||||||||||||
Non-strategic hotels(c) | 18 | 5,046 | 184,125 | 45,611 | ||||||||||||||
Same-store hotels | 57 | 16,988 | $ | 872,587 | $ | 223,620 | ||||||||||||
Location | ||||||||||||||||||
Urban | 17 | 5,310 | $ | 323,304 | $ | 81,351 | ||||||||||||
Resort | 9 | 2,733 | 185,264 | 41,294 | ||||||||||||||
Airport | 8 | 2,621 | 122,734 | 37,364 | ||||||||||||||
Suburban | 5 | 1,278 | 57,160 | 18,000 | ||||||||||||||
Core hotels | 39 | 11,942 | 688,462 | 178,009 | ||||||||||||||
Non-strategic hotels(c) | 18 | 5,046 | 184,125 | 45,611 | ||||||||||||||
Same-store hotels | 57 | 16,988 | $ | 872,587 | $ | 223,620 |
(a) | Hotel EBITDA is a non-GAAP financial measure. A detailed reconciliation and further discussion of Hotel EBITDA is contained in the “Non-GAAP Financial Measures” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of this Quarterly Report on Form 10-Q. We consider Hotel Operating Revenue and Hotel EBITDA to be same store metrics for this presentation and hotels disposed or held for sale are excluded. |
(b) | These hotels converted to Wyndham on March 1, 2013. |
(c) | Excludes hotel held for sale as of March 31, 2014. |
Occupancy (%) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | %Variance | |||||||
Embassy Suites Hotels | 76.8 | 74.1 | 3.7 | ||||||
Renaissance and Marriott | 75.6 | 74.8 | 1.1 | ||||||
DoubleTree by Hilton and Hilton | 64.4 | 59.8 | 7.8 | ||||||
Sheraton and Westin | 56.4 | 58.2 | (3.0 | ) | |||||
Fairmont | 58.6 | 60.3 | (2.9 | ) | |||||
Holiday Inn | 64.5 | 68.4 | (5.7 | ) | |||||
Morgans and Royalton | 79.4 | 81.0 | (2.0 | ) | |||||
Comparable core hotels (31) | 72.2 | 70.9 | 1.8 | ||||||
Non-strategic hotels (18)(a) | 71.3 | 69.7 | 2.3 | ||||||
Comparable hotels (49) | 71.9 | 70.5 | 2.0 | ||||||
Wyndham and Wyndham Grand(b) | 62.9 | 63.6 | (1.0 | ) | |||||
Same-store hotels (57) | 70.5 | 69.5 | 1.6 | ||||||
ADR ($) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | %Variance | |||||||
Embassy Suites Hotels | 166.71 | 157.30 | 6.0 | ||||||
Renaissance and Marriott | 236.72 | 221.01 | 7.1 | ||||||
DoubleTree by Hilton and Hilton | 156.22 | 155.48 | 0.5 | ||||||
Sheraton and Westin | 127.91 | 125.38 | 2.0 | ||||||
Fairmont | 238.07 | 221.26 | 7.6 | ||||||
Holiday Inn | 131.81 | 112.44 | 17.2 | ||||||
Morgans and Royalton | 258.62 | 260.05 | (0.5 | ) | |||||
Comparable core hotels (31) | 176.24 | 166.29 | 6.0 | ||||||
Non-strategic hotels (18)(a) | 117.30 | 114.77 | 2.2 | ||||||
Comparable hotels (49) | 155.85 | 148.56 | 4.9 | ||||||
Wyndham and Wyndham Grand(b) | 144.62 | 139.38 | 3.8 | ||||||
Same-store hotels (57) | 154.36 | 147.30 | 4.8 | ||||||
RevPAR ($) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | %Variance | |||||||
Embassy Suites Hotels | 128.06 | 116.56 | 9.9 | ||||||
Renaissance and Marriott | 178.95 | 165.32 | 8.2 | ||||||
DoubleTree by Hilton and Hilton | 100.65 | 92.96 | 8.3 | ||||||
Sheraton and Westin | 72.20 | 72.93 | (1.0 | ) | |||||
Fairmont | 139.46 | 133.52 | 4.4 | ||||||
Holiday Inn | 85.01 | 76.89 | 10.6 | ||||||
Morgans and Royalton | 205.34 | 210.76 | (2.6 | ) | |||||
Comparable core hotels (31) | 127.25 | 117.93 | 7.9 | ||||||
Non-strategic hotels (18)(a) | 83.62 | 80.00 | 4.5 | ||||||
Comparable hotels (49) | 112.02 | 104.73 | 7.0 | ||||||
Wyndham and Wyndham Grand(b) | 90.99 | 88.60 | 2.7 | ||||||
Same-store hotels (57) | 108.90 | 102.31 | 6.4 |
Occupancy (%) | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2014 | 2013 | %Variance | |||||||||
San Francisco area | 72.0 | 74.3 | (3.2 | ) | |||||||
Los Angeles area | 82.7 | 76.9 | 7.5 | ||||||||
South Florida | 91.2 | 90.8 | 0.4 | ||||||||
Boston | 60.8 | 63.0 | (3.4 | ) | |||||||
New York area | 71.7 | 73.3 | (2.2 | ) | |||||||
Myrtle Beach | 45.5 | 37.0 | 22.9 | ||||||||
Atlanta | 75.5 | 72.3 | 4.5 | ||||||||
Philadelphia | 59.7 | 53.0 | 12.7 | ||||||||
Tampa | 86.1 | 83.7 | 2.9 | ||||||||
Austin | 78.4 | 80.3 | (2.4 | ) | |||||||
Other markets | 72.5 | 70.2 | 3.2 | ||||||||
Comparable core hotels (31) | 72.2 | 70.9 | 1.8 | ||||||||
ADR ($) | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2014 | 2013 | %Variance | |||||||||
San Francisco area | 188.07 | 162.38 | 15.8 | ||||||||
Los Angeles area | 137.23 | 136.12 | 0.8 | ||||||||
South Florida | 205.26 | 190.78 | 7.6 | ||||||||
Boston | 203.68 | 190.57 | 6.9 | ||||||||
New York area | 229.08 | 218.23 | 5.0 | ||||||||
Myrtle Beach | 108.73 | 108.94 | (0.2 | ) | |||||||
Atlanta | 146.50 | 142.77 | 2.6 | ||||||||
Philadelphia | 148.79 | 152.21 | (2.2 | ) | |||||||
Tampa | 226.08 | 215.29 | 5.0 | ||||||||
Austin | 232.97 | 221.78 | 5.0 | ||||||||
Other markets | 154.15 | 149.13 | 3.4 | ||||||||
Comparable core hotels (31) | 176.24 | 166.29 | 6.0 | ||||||||
RevPAR ($) | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2014 | 2013 | %Variance | |||||||||
San Francisco area | 135.42 | 120.73 | 12.2 | ||||||||
Los Angeles area | 113.46 | 104.71 | 8.4 | ||||||||
South Florida | 187.18 | 173.22 | 8.1 | ||||||||
Boston | 123.91 | 120.00 | 3.3 | ||||||||
New York area | 164.18 | 159.99 | 2.6 | ||||||||
Myrtle Beach | 49.43 | 40.30 | 22.6 | ||||||||
Atlanta | 110.64 | 103.18 | 7.2 | ||||||||
Philadelphia | 88.84 | 80.65 | 10.2 | ||||||||
Tampa | 194.74 | 180.26 | 8.0 | ||||||||
Austin | 182.67 | 178.15 | 2.5 | ||||||||
Other markets | 111.72 | 104.74 | 6.7 | ||||||||
Comparable core hotels (31) | 127.25 | 117.93 | 7.9 |
Core Hotels | Brand | State | Rooms | % Owned | (a) | ||
Birmingham | Embassy Suites Hotel | AL | 242 | ||||
Phoenix – Biltmore | Embassy Suites Hotel | AZ | 232 | ||||
Indian Wells – Esmeralda Resort & Spa | Renaissance | CA | 560 | ||||
Los Angeles – International Airport/South | Embassy Suites Hotel | CA | 349 | ||||
Napa Valley | Embassy Suites Hotel | CA | 205 | ||||
Mandalay Beach – Hotel & Resort | Embassy Suites Hotel | CA | 250 | ||||
Milpitas – Silicon Valley | Embassy Suites Hotel | CA | 266 | ||||
San Diego – Bayside | Wyndham | CA | 600 | ||||
San Francisco – Airport/Waterfront | Embassy Suites Hotel | CA | 340 | ||||
San Francisco – Airport/South San Francisco | Embassy Suites Hotel | CA | 312 | ||||
San Francisco – Fisherman’s Wharf | Holiday Inn | CA | 585 | ||||
San Francisco – Union Square | Marriott | CA | 400 | ||||
Santa Monica – at the Pier | Wyndham | CA | 132 | ||||
Deerfield Beach – Resort & Spa | Embassy Suites Hotel | FL | 244 | ||||
Ft. Lauderdale – 17th Street | Embassy Suites Hotel | FL | 361 | ||||
Miami – International Airport | Embassy Suites Hotel | FL | 318 | ||||
Orlando – International Drive South/Convention | Embassy Suites Hotel | FL | 244 | ||||
Orlando – Walt Disney World Resort | DoubleTree Suites by Hilton | FL | 229 | ||||
St. Petersburg – Vinoy Resort & Golf Club | Renaissance | FL | 361 | ||||
Atlanta – Buckhead | Embassy Suites Hotel | GA | 316 | ||||
New Orleans – French Quarter | Wyndham | LA | 374 | ||||
Boston – Beacon Hill | Wyndham | MA | 304 | ||||
Boston – Copley Plaza | Fairmont | MA | 383 | ||||
Boston – Marlborough | Embassy Suites Hotel | MA | 229 | ||||
Minneapolis – Airport | Embassy Suites Hotel | MN | 310 | ||||
Secaucus – Meadowlands | Embassy Suites Hotel | NJ | 261 | 50 | % | ||
New York – Morgans | Independent | NY | 117 | ||||
New York – Royalton | Independent | NY | 168 | ||||
Philadelphia – Historic District | Wyndham | PA | 364 | ||||
Philadelphia – Society Hill | Sheraton | PA | 364 | ||||
Pittsburgh – at University Center (Oakland) | Wyndham | PA | 251 | ||||
Charleston – The Mills House | Wyndham Grand | SC | 216 | ||||
Myrtle Beach – Oceanfront Resort | Embassy Suites Hotel | SC | 255 | ||||
Myrtle Beach Resort | Hilton | SC | 385 | ||||
Nashville – Opryland – Airport (Briley Parkway) | Holiday Inn | TN | 383 |
Core Hotels | Brand | State | Rooms | % Owned | (a) | |||||
Austin | DoubleTree Suites by Hilton | TX | 188 | 90 | % | |||||
Dallas – Love Field | Embassy Suites Hotel | TX | 248 | |||||||
Houston – Medical Center | Wyndham | TX | 287 | |||||||
Burlington Hotel & Conference Center | Sheraton | VT | 309 | |||||||
Unconsolidated Hotel | ||||||||||
New Orleans – French Quarter – Chateau LeMoyne | Holiday Inn | LA | 171 | 50 | % | |||||
Hotel under Development | ||||||||||
New York – Knickerbocker | Independent | NY | 330 | 95 | % | |||||
Non-strategic Hotels | ||||||||||
Dana Point – Doheny Beach | DoubleTree Suites by Hilton | CA | 196 | |||||||
San Rafael – Marin County | Embassy Suites Hotel | CA | 235 | 50 | % | |||||
Orlando – International Airport | Holiday Inn | FL | 288 | |||||||
Atlanta – Gateway – Atlanta Airport | Sheraton | GA | 395 | |||||||
Atlanta – Perimeter Center | Embassy Suites Hotel | GA | 241 | 50 | % | |||||
Chicago – Lombard/Oak Brook | Embassy Suites Hotel | IL | 262 | 50 | % | |||||
Indianapolis – North | Embassy Suites Hotel | IN | 221 | 82 | % | |||||
Kansas City – Overland Park | Embassy Suites Hotel | KS | 199 | 50 | % | |||||
Baltimore – at BWI Airport | Embassy Suites Hotel | MD | 251 | 90 | % | |||||
Kansas City – Plaza | Embassy Suites Hotel | MO | 266 | 50 | % | |||||
Charlotte | Embassy Suites Hotel | NC | 274 | 50 | % | |||||
Raleigh – Crabtree | Embassy Suites Hotel | NC | 225 | 50 | % | |||||
Parsippany | Embassy Suites Hotel | NJ | 274 | 50 | % | |||||
Toronto – International Airport | Holiday Inn | Ontario | 446 | |||||||
Austin – Central | Embassy Suites Hotel | TX | 260 | 50 | % | |||||
Dallas – Park Central | Westin | TX | 536 | 60 | % | |||||
San Antonio – International Airport | Embassy Suites Hotel | TX | 261 | 50 | % | |||||
San Antonio – NW I-10 | Embassy Suites Hotel | TX | 216 | 50 | % | |||||
Non-strategic Hotel Held for Sale | ||||||||||
Charlotte – SouthPark | DoubleTree Suites by Hilton | NC | 208 |
(a) | We own 100% of each hotel except where otherwise noted. |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk. |
Expected Maturity Date | |||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Fixed-rate: | |||||||||||||||||||||||||||||||
Debt | $ | 270,924 | $ | 3,107 | $ | 11,461 | $ | 2,810 | $ | 2,954 | $ | 1,194,701 | $ | 1,485,957 | $ | 1,546,449 | |||||||||||||||
Average interest rate | 9.52 | % | 5.11 | % | 5.61 | % | 4.95 | % | 4.95 | % | 6.04 | % | 6.66 | % | |||||||||||||||||
Floating-rate: | |||||||||||||||||||||||||||||||
Debt | — | — | 157,861 | — | — | — | 157,861 | $ | 158,351 | ||||||||||||||||||||||
Average interest rate (a) | — | — | 3.91 | % | — | — | — | 3.91 | % | ||||||||||||||||||||||
Total debt | $ | 270,924 | $ | 3,107 | $ | 169,322 | $ | 2,810 | $ | 2,954 | $ | 1,194,701 | $ | 1,643,818 | |||||||||||||||||
Average interest rate | 9.52 | % | 5.11 | % | 4.03 | % | 4.95 | % | 4.95 | % | 6.04 | % | 6.40 | % | |||||||||||||||||
Net discount | (3,190 | ) | |||||||||||||||||||||||||||||
Total debt | $ | 1,640,628 |
(a) | The average floating interest rate considers the implied forward rates in the yield curve at March 31, 2014. |
Item 4. | Controls and Procedures. |
Item 6. | Exhibits. |
Exhibit Number | Description of Exhibit | |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor. | |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor. | |
31.3 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor LP. | |
31.4 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor LP. |
32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for FelCor. | |
32.2 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for FelCor LP. | |
101.INS | XBRL Instance Document. Submitted electronically with this report. | |
101.SCH | XBRL Taxonomy Extension Schema Document. Submitted electronically with this report. | |
101.CAL | XBRL Taxonomy Calculation Linkbase Document. Submitted electronically with this report. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. Submitted electronically with this report. | |
101.LAB | XBRL Taxonomy Label Linkbase Document. Submitted electronically with this report. | |
101.PRE | XBRL Taxonomy Presentation Linkbase Document. Submitted electronically with this report. |
FELCOR LODGING TRUST INCORPORATED | |||
Date: May 2, 2014 | By: | /s/ Jeffrey D. Symes | |
Name: | Jeffrey D. Symes | ||
Title: | Senior Vice President, Chief Accounting Officer and Controller |
FELCOR LODGING LIMITED PARTNERSHIP | |||
a Delaware limited partnership | |||
By: | FelCor Lodging Trust Incorporated | ||
Its General Partner | |||
Date: May 2, 2014 | By: | /s/ Jeffrey D. Symes | |
Name: | Jeffrey D. Symes | ||
Title: | Senior Vice President, Chief Accounting Officer and Controller |
1. | I have reviewed this Quarterly Report on Form 10-Q of FelCor Lodging Trust Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 2, 2014 | /s/ Richard A. Smith | |
Richard A. Smith Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of FelCor Lodging Trust Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 2, 2014 | /s/ Michael C. Hughes | |
Michael C. Hughes Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of FelCor Lodging Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 2, 2014 | /s/ Richard A. Smith | ||
Richard A. Smith Chief Executive Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership |
1. | I have reviewed this Quarterly Report on Form 10-Q of FelCor Lodging Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 2, 2014 | /s/ Michael C. Hughes | ||
Michael C. Hughes Chief Financial Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership |
/s/ Richard A. Smith | |
Richard A. Smith | |
Chief Executive Officer | |
/s/ Michael C. Hughes | |
Michael C. Hughes | |
Chief Financial Officer |
/s/ Richard A. Smith | |
Richard A. Smith | |
Chief Executive Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership | |
/s/ Michael C. Hughes | |
Michael C. Hughes | |
Chief Financial Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership |
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