(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, 2016 |
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 | (see Note) | ¨ | Yes | þ | 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, 2016 and December 31, 2015 (unaudited) | |||
Consolidated Statements of Operations and Comprehensive Income (Loss) – For the Three Months Ended March 31, 2016 and 2015 (unaudited) | |||
Consolidated Statements of Changes in Equity – For the Three Months Ended March 31, 2016 and 2015 (unaudited) | |||
Consolidated Statements of Cash Flows – For the Three Months Ended March 31, 2016 and 2015 (unaudited) | |||
FelCor Lodging Limited Partnership: | |||
Consolidated Balance Sheets - March 31, 2016 and December 31, 2015 (unaudited) | |||
Consolidated Statements of Operations and Comprehensive Income (Loss) – For the Three Months Ended March 31, 2016 and 2015 (unaudited) | |||
Consolidated Statements of Partners’ Capital – For the Three Months Ended March 31, 2016 and 2015 (unaudited) | |||
Consolidated Statements of Cash Flows – For the Three Months Ended March 31, 2016 and 2015 (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 Operating Statistics | |||
Hotel Portfolio | |||
Liquidity and Capital Resources | |||
Inflation and Competition | |||
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 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 6. | Exhibits | ||
SIGNATURES |
Item 1. | Financial Statements. |
March 31, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $919,071 and $899,575 at March 31, 2016 and December 31, 2015, respectively | $ | 1,711,523 | $ | 1,729,531 | |||
Investment in unconsolidated entities | 9,171 | 9,575 | |||||
Cash and cash equivalents | 57,958 | 59,786 | |||||
Restricted cash | 21,097 | 17,702 | |||||
Accounts receivable, net of allowance for doubtful accounts of $303 and $204 at March 31, 2016 and December 31, 2015, respectively | 34,819 | 28,136 | |||||
Deferred expenses, net of accumulated amortization of $1,554 and $1,086 at March 31, 2016 and December 31, 2015, respectively | 5,932 | 6,390 | |||||
Other assets | 17,676 | 14,792 | |||||
Total assets | $ | 1,858,176 | $ | 1,865,912 | |||
Liabilities and Equity | |||||||
Debt, net of unamortized debt issuance costs of $17,666 and $18,065 at March 31, 2016 and December 31, 2015, respectively | $ | 1,440,792 | $ | 1,409,889 | |||
Distributions payable | 15,062 | 15,140 | |||||
Accrued expenses and other liabilities | 123,766 | 125,274 | |||||
Total liabilities | 1,579,620 | 1,550,303 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests in FelCor LP, 611 units issued and outstanding at March 31, 2016 and December 31, 2015 | 4,965 | 4,464 | |||||
Equity: | |||||||
Preferred stock, $0.01 par value, 20,000 shares authorized: | |||||||
Series A Cumulative Convertible Preferred Stock, 12,879 shares, liquidation value of $321,987, issued and outstanding at March 31, 2016 and December 31, 2015 | 309,337 | 309,337 | |||||
Common stock, $0.01 par value, 200,000 shares authorized; 139,307 and 141,808 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively | 1,393 | 1,418 | |||||
Additional paid-in capital | 2,569,389 | 2,567,515 | |||||
Accumulated deficit | (2,657,715 | ) | (2,618,117 | ) | |||
Total FelCor stockholders’ equity | 222,404 | 260,153 | |||||
Noncontrolling interests in other partnerships | 7,403 | 7,806 | |||||
Preferred equity in consolidated joint venture, liquidation value of $44,582 and $43,954 at March 31, 2016 and December 31, 2015, respectively | 43,784 | 43,186 | |||||
Total equity | 273,591 | 311,145 | |||||
Total liabilities and equity | $ | 1,858,176 | $ | 1,865,912 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Revenues: | |||||||
Hotel operating revenue | $ | 209,457 | $ | 213,285 | |||
Other revenue | 687 | 410 | |||||
Total revenues | 210,144 | 213,695 | |||||
Expenses: | |||||||
Hotel departmental expenses | 77,438 | 77,656 | |||||
Other property-related costs | 55,566 | 56,895 | |||||
Management and franchise fees | 9,225 | 9,085 | |||||
Taxes, insurance and lease expense | 13,582 | 14,807 | |||||
Corporate expenses | 8,400 | 8,573 | |||||
Depreciation and amortization | 29,183 | 27,772 | |||||
Other expenses | 828 | 4,228 | |||||
Total operating expenses | 194,222 | 199,016 | |||||
Operating income | 15,922 | 14,679 | |||||
Interest expense, net | (19,720 | ) | (19,481 | ) | |||
Debt extinguishment | — | (73 | ) | ||||
Loss before equity in income (loss) from unconsolidated entities | (3,798 | ) | (4,875 | ) | |||
Equity in income (loss) from unconsolidated entities | (154 | ) | 149 | ||||
Loss from continuing operations before income tax expense | (3,952 | ) | (4,726 | ) | |||
Income tax expense | (415 | ) | (169 | ) | |||
Loss from continuing operations | (4,367 | ) | (4,895 | ) | |||
Income from discontinued operations | — | 4 | |||||
Loss before gain (loss) on sale of hotels | (4,367 | ) | (4,891 | ) | |||
Gain (loss) on sale of hotels, net | (714 | ) | 16,887 | ||||
Net income (loss) and comprehensive income (loss) | (5,081 | ) | 11,996 | ||||
Net loss (income) attributable to noncontrolling interests in other partnerships | 471 | (4,879 | ) | ||||
Net loss attributable to redeemable noncontrolling interests in FelCor LP | 48 | 14 | |||||
Preferred distributions - consolidated joint venture | (360 | ) | (348 | ) | |||
Net income (loss) and comprehensive income (loss) attributable to FelCor | (4,922 | ) | 6,783 | ||||
Preferred dividends | (6,279 | ) | (9,678 | ) | |||
Net loss attributable to FelCor common stockholders | $ | (11,201 | ) | $ | (2,895 | ) | |
Basic and diluted per common share data: | |||||||
Loss from continuing operations | $ | (0.08 | ) | $ | (0.02 | ) | |
Net loss | $ | (0.08 | ) | $ | (0.02 | ) | |
Basic and diluted weighted average common shares outstanding | 139,678 | 124,519 |
Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Noncontrolling Interests in Other Partnerships | Preferred Equity in Consolidated Joint Venture | Total Equity | |||||||||||||||||||||||||||
Number of Shares | Amount | Number of Shares | Amount | ||||||||||||||||||||||||||||||
Balance at December 31, 2014 | 12,947 | $ | 478,749 | 124,605 | $ | 1,246 | $ | 2,353,666 | $ | (2,530,671 | ) | $ | 18,435 | $ | 41,442 | $ | 362,867 | ||||||||||||||||
Issuance of stock awards | — | — | 267 | 3 | (3 | ) | — | — | — | — | |||||||||||||||||||||||
Stock awards - amortization | — | — | — | — | 1,584 | — | — | — | 1,584 | ||||||||||||||||||||||||
Stock compensation shares withheld | — | — | — | — | — | (8 | ) | — | — | (8 | ) | ||||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | (447 | ) | — | — | — | (447 | ) | ||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | 790 | — | 790 | ||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | (15,826 | ) | — | (15,826 | ) | ||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||
$0.04 per common share | — | — | — | — | — | (5,069 | ) | — | — | (5,069 | ) | ||||||||||||||||||||||
$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 | — | — | — | — | — | — | — | (348 | ) | (348 | ) | ||||||||||||||||||||||
Issuance of preferred equity - consolidated joint venture | — | — | — | — | — | — | — | 1,248 | 1,248 | ||||||||||||||||||||||||
Net income and comprehensive income (attributable to FelCor and noncontrolling interests in other partnerships) | — | — | — | — | — | 6,783 | 4,879 | 348 | 12,010 | ||||||||||||||||||||||||
Balance at March 31, 2015 | 12,947 | $ | 478,749 | 124,872 | $ | 1,249 | $ | 2,354,800 | $ | (2,538,643 | ) | $ | 8,278 | $ | 42,690 | $ | 347,123 | ||||||||||||||||
Balance at December 31, 2015 | 12,879 | $ | 309,337 | 141,808 | $ | 1,418 | $ | 2,567,515 | $ | (2,618,117 | ) | $ | 7,806 | $ | 43,186 | $ | 311,145 | ||||||||||||||||
Repurchase of common stock | — | — | (2,948 | ) | (29 | ) | — | (19,189 | ) | — | — | (19,218 | ) | ||||||||||||||||||||
Issuance of stock awards | — | — | 545 | 5 | 39 | — | — | — | 44 | ||||||||||||||||||||||||
Cumulative effect of change in accounting for stock compensation forfeitures | — | — | — | — | 185 | (185 | ) | — | — | — | |||||||||||||||||||||||
Stock awards - amortization | — | — | — | — | 2,235 | — | — | — | 2,235 | ||||||||||||||||||||||||
Stock compensation shares withheld | — | — | (98 | ) | (1 | ) | — | (591 | ) | — | — | (592 | ) | ||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | (585 | ) | — | — | — | (585 | ) | ||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | 68 | — | 68 | ||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||
$0.06 per common share | — | — | — | — | — | (8,432 | ) | — | — | (8,432 | ) | ||||||||||||||||||||||
$0.4875 per Series A preferred share | — | — | — | — | — | (6,279 | ) | — | — | (6,279 | ) | ||||||||||||||||||||||
Preferred distributions - consolidated joint venture | — | — | — | — | — | — | — | (360 | ) | (360 | ) | ||||||||||||||||||||||
Issuance of preferred equity - consolidated joint venture | — | — | — | — | — | — | — | 598 | 598 | ||||||||||||||||||||||||
Net income (loss) and comprehensive income (loss) (attributable to FelCor and noncontrolling interests in other partnerships) | — | — | — | — | — | (4,922 | ) | (471 | ) | 360 | (5,033 | ) | |||||||||||||||||||||
Balance at March 31, 2016 | 12,879 | $ | 309,337 | 139,307 | $ | 1,393 | $ | 2,569,389 | $ | (2,657,715 | ) | $ | 7,403 | $ | 43,784 | $ | 273,591 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (5,081 | ) | $ | 11,996 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 29,183 | 27,772 | |||||
Loss (gain) on sale of hotels and other assets, net | 714 | (16,887 | ) | ||||
Amortization of deferred financing fees | 867 | 1,477 | |||||
Amortization of fixed stock and directors’ compensation | 1,935 | 1,862 | |||||
Equity in loss (income) from unconsolidated entities | 154 | (149 | ) | ||||
Distributions of income from unconsolidated entities | 114 | 580 | |||||
Debt extinguishment | — | 73 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (6,777 | ) | (6,208 | ) | |||
Other assets | (3,111 | ) | (225 | ) | |||
Accrued expenses and other liabilities | 1,655 | (3,438 | ) | ||||
Net cash flow provided by operating activities | 19,653 | 16,853 | |||||
Cash flows from investing activities: | |||||||
Improvements and additions to hotels | (14,008 | ) | (13,483 | ) | |||
Hotel development | — | (10,108 | ) | ||||
Net proceeds from asset sales | (466 | ) | 91,328 | ||||
Change in restricted cash – investing | (3,395 | ) | (1,676 | ) | |||
Insurance proceeds | 94 | 274 | |||||
Distributions from unconsolidated entities in excess of earnings | 136 | 31 | |||||
Net cash flow provided by (used in) investing activities | (17,639 | ) | 66,366 | ||||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 31,000 | 36,000 | |||||
Repayment of borrowings | (496 | ) | (78,428 | ) | |||
Payment of deferred financing fees | (10 | ) | (81 | ) | |||
Distributions paid to noncontrolling interests | — | (15,826 | ) | ||||
Contributions from noncontrolling interests | 68 | 790 | |||||
Distributions paid to FelCor LP limited partners | (36 | ) | (23 | ) | |||
Distributions paid to preferred stockholders | (6,279 | ) | (9,678 | ) | |||
Repurchase of common stock | (19,218 | ) | — | ||||
Stock compensation withholding | (592 | ) | (8 | ) | |||
Preferred distributions - consolidated joint venture | (360 | ) | (345 | ) | |||
Distributions paid to common stockholders | (8,508 | ) | (5,034 | ) | |||
Net proceeds from issuance of preferred equity - consolidated joint venture | 598 | 1,248 | |||||
Net cash flow used in financing activities | (3,833 | ) | (71,385 | ) | |||
Effect of exchange rate changes on cash | (9 | ) | (51 | ) | |||
Net change in cash and cash equivalents | (1,828 | ) | 11,783 | ||||
Cash and cash equivalents at beginning of periods | 59,786 | 47,147 | |||||
Cash and cash equivalents at end of periods | $ | 57,958 | $ | 58,930 | |||
Supplemental cash flow information – interest paid, net of capitalized interest | $ | 18,809 | $ | 16,244 | |||
Supplemental cash flow information – income taxes paid | $ | 299 | $ | 169 |
March 31, | December 31, | ||||||
2016 | 2015 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $919,071 and $899,575 at March 31, 2016 and December 31, 2015, respectively | $ | 1,711,523 | $ | 1,729,531 | |||
Investment in unconsolidated entities | 9,171 | 9,575 | |||||
Cash and cash equivalents | 57,958 | 59,786 | |||||
Restricted cash | 21,097 | 17,702 | |||||
Accounts receivable, net of allowance for doubtful accounts of $303 and $204 at March 31, 2016 and December 31, 2015, respectively | 34,819 | 28,136 | |||||
Deferred expenses, net of accumulated amortization of $1,554 and $1,086 at March 31, 2016 and December 31, 2015, respectively | 5,932 | 6,390 | |||||
Other assets | 17,676 | 14,792 | |||||
Total assets | $ | 1,858,176 | $ | 1,865,912 | |||
Liabilities and Partners’ Capital | |||||||
Debt, net of unamortized debt issuance costs of $17,666 and $18,065 at March 31, 2016 and December 31, 2015, respectively | $ | 1,440,792 | $ | 1,409,889 | |||
Distributions payable | 15,062 | 15,140 | |||||
Accrued expenses and other liabilities | 123,766 | 125,274 | |||||
Total liabilities | 1,579,620 | 1,550,303 | |||||
Commitments and contingencies | |||||||
Redeemable units, 611 units issued and outstanding at March 31, 2016 and December 31, 2015 | 4,965 | 4,464 | |||||
Capital: | |||||||
Preferred units: | |||||||
Series A Cumulative Convertible Preferred Units, 12,879 units issued and outstanding at March 31, 2016 and December 31, 2015 | 309,337 | 309,337 | |||||
Common units, 139,307 and 141,808 units issued and outstanding at March 31, 2016 and December 31, 2015, respectively | (86,933 | ) | (49,184 | ) | |||
Total FelCor LP partners’ capital | 222,404 | 260,153 | |||||
Noncontrolling interests | 7,403 | 7,806 | |||||
Preferred capital in consolidated joint venture | 43,784 | 43,186 | |||||
Total partners’ capital | 273,591 | 311,145 | |||||
Total liabilities and partners’ capital | $ | 1,858,176 | $ | 1,865,912 |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Revenues: | |||||||
Hotel operating revenue | $ | 209,457 | $ | 213,285 | |||
Other revenue | 687 | 410 | |||||
Total revenues | 210,144 | 213,695 | |||||
Expenses: | |||||||
Hotel departmental expenses | 77,438 | 77,656 | |||||
Other property-related costs | 55,566 | 56,895 | |||||
Management and franchise fees | 9,225 | 9,085 | |||||
Taxes, insurance and lease expense | 13,582 | 14,807 | |||||
Corporate expenses | 8,400 | 8,573 | |||||
Depreciation and amortization | 29,183 | 27,772 | |||||
Other expenses | 828 | 4,228 | |||||
Total operating expenses | 194,222 | 199,016 | |||||
Operating income | 15,922 | 14,679 | |||||
Interest expense, net | (19,720 | ) | (19,481 | ) | |||
Debt extinguishment | — | (73 | ) | ||||
Loss before equity in income (loss) from unconsolidated entities | (3,798 | ) | (4,875 | ) | |||
Equity in income (loss) from unconsolidated entities | (154 | ) | 149 | ||||
Loss from continuing operations before income tax expense | (3,952 | ) | (4,726 | ) | |||
Income tax expense | (415 | ) | (169 | ) | |||
Loss from continuing operations | (4,367 | ) | (4,895 | ) | |||
Income from discontinued operations | — | 4 | |||||
Loss before gain (loss) on sale of hotels | (4,367 | ) | (4,891 | ) | |||
Gain (loss) on sale of hotels, net | (714 | ) | 16,887 | ||||
Net income (loss) and comprehensive income (loss) | (5,081 | ) | 11,996 | ||||
Net loss (income) attributable to noncontrolling interests | 471 | (4,879 | ) | ||||
Preferred distributions - consolidated joint venture | (360 | ) | (348 | ) | |||
Net income (loss) and comprehensive income (loss) attributable to FelCor LP | (4,970 | ) | 6,769 | ||||
Preferred distributions | (6,279 | ) | (9,678 | ) | |||
Net loss attributable to FelCor LP common unitholders | $ | (11,249 | ) | $ | (2,909 | ) | |
Basic and diluted per common unit data: | |||||||
Loss from continuing operations | $ | (0.08 | ) | $ | (0.02 | ) | |
Net loss | $ | (0.08 | ) | $ | (0.02 | ) | |
Basic and diluted weighted average common units outstanding | 140,289 | 125,130 |
Preferred Units | Common Units | Noncontrolling Interests | Preferred Capital in Consolidated Joint Venture | Total Partners’ Capital | |||||||||||||||
Balance at December 31, 2014 | $ | 478,749 | $ | (175,759 | ) | $ | 18,435 | $ | 41,442 | $ | 362,867 | ||||||||
FelCor restricted stock compensation | — | 1,576 | — | — | 1,576 | ||||||||||||||
Contributions | — | — | 790 | — | 790 | ||||||||||||||
Distributions | — | (14,770 | ) | (15,826 | ) | (348 | ) | (30,944 | ) | ||||||||||
Allocation to redeemable units | — | (410 | ) | — | — | (410 | ) | ||||||||||||
Issuance of preferred capital - consolidated joint venture | — | — | — | 1,248 | 1,248 | ||||||||||||||
Net income and comprehensive income | — | 6,769 | 4,879 | 348 | 11,996 | ||||||||||||||
Balance at March 31, 2015 | $ | 478,749 | $ | (182,594 | ) | $ | 8,278 | $ | 42,690 | $ | 347,123 | ||||||||
Balance at December 31, 2015 | $ | 309,337 | $ | (49,184 | ) | $ | 7,806 | $ | 43,186 | $ | 311,145 | ||||||||
Repurchase of common units | — | (19,218 | ) | — | — | (19,218 | ) | ||||||||||||
FelCor restricted stock compensation | — | 1,687 | — | — | 1,687 | ||||||||||||||
Contributions | — | — | 68 | — | 68 | ||||||||||||||
Distributions | — | (14,747 | ) | — | (360 | ) | (15,107 | ) | |||||||||||
Allocation to redeemable units | — | (501 | ) | — | — | (501 | ) | ||||||||||||
Issuance of preferred capital - consolidated joint venture | — | — | — | 598 | 598 | ||||||||||||||
Net income (loss) and comprehensive income (loss) | — | (4,970 | ) | (471 | ) | 360 | (5,081 | ) | |||||||||||
Balance at March 31, 2016 | $ | 309,337 | $ | (86,933 | ) | $ | 7,403 | $ | 43,784 | $ | 273,591 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (5,081 | ) | $ | 11,996 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 29,183 | 27,772 | |||||
Loss (gain) on sale of hotels and other assets, net | 714 | (16,887 | ) | ||||
Amortization of deferred financing fees | 867 | 1,477 | |||||
Amortization of fixed stock and directors’ compensation | 1,935 | 1,862 | |||||
Equity in loss (income) from unconsolidated entities | 154 | (149 | ) | ||||
Distributions of income from unconsolidated entities | 114 | 580 | |||||
Debt extinguishment | — | 73 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (6,777 | ) | (6,208 | ) | |||
Other assets | (3,111 | ) | (225 | ) | |||
Accrued expenses and other liabilities | 1,655 | (3,438 | ) | ||||
Net cash flow provided by operating activities | 19,653 | 16,853 | |||||
Cash flows from investing activities: | |||||||
Improvements and additions to hotels | (14,008 | ) | (13,483 | ) | |||
Hotel development | — | (10,108 | ) | ||||
Net proceeds from asset sales | (466 | ) | 91,328 | ||||
Change in restricted cash – investing | (3,395 | ) | (1,676 | ) | |||
Insurance proceeds | 94 | 274 | |||||
Distributions from unconsolidated entities in excess of earnings | 136 | 31 | |||||
Net cash flow provided by (used in) investing activities | (17,639 | ) | 66,366 | ||||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 31,000 | 36,000 | |||||
Repayment of borrowings | (496 | ) | (78,428 | ) | |||
Payment of deferred financing fees | (10 | ) | (81 | ) | |||
Distributions paid to noncontrolling interests | — | (15,826 | ) | ||||
Contributions from noncontrolling interests | 68 | 790 | |||||
Distributions paid to FelCor LP limited partners | (36 | ) | (23 | ) | |||
Distributions paid to preferred unitholders | (6,279 | ) | (9,678 | ) | |||
Repurchase of common units | (19,218 | ) | — | ||||
FelCor stock compensation withholding | (592 | ) | (8 | ) | |||
Preferred distributions - consolidated joint venture | (360 | ) | (345 | ) | |||
Distributions paid to common unitholders | (8,508 | ) | (5,034 | ) | |||
Net proceeds from issuance of preferred capital - consolidated joint venture | 598 | 1,248 | |||||
Net cash flow used in financing activities | (3,833 | ) | (71,385 | ) | |||
Effect of exchange rate changes on cash | (9 | ) | (51 | ) | |||
Net change in cash and cash equivalents | (1,828 | ) | 11,783 | ||||
Cash and cash equivalents at beginning of periods | 59,786 | 47,147 | |||||
Cash and cash equivalents at end of periods | $ | 57,958 | $ | 58,930 | |||
Supplemental cash flow information – interest paid, net of capitalized interest | $ | 18,809 | $ | 16,244 | |||
Supplemental cash flow information – income taxes paid | $ | 299 | $ | 169 |
1. | Organization |
Brand | Hotels | Rooms | |||||
Embassy Suites by Hilton® | 18 | 4,982 | |||||
Wyndham® and Wyndham Grand® | 8 | 2,528 | |||||
Marriott® and Renaissance® | 3 | 1,321 | |||||
Holiday Inn® | 2 | 968 | |||||
DoubleTree by Hilton® and Hilton® | 3 | 802 | |||||
Sheraton® | 2 | 673 | |||||
Fairmont® | 1 | 383 | |||||
The Knickerbocker® | 1 | 330 | |||||
Morgans® and Royalton® | 2 | 285 | |||||
Total | 40 | 12,272 |
2. | Investment in Unconsolidated Entities |
2. | Investment in Unconsolidated Entities — (continued) |
March 31, | December 31, | ||||||||
2016 | 2015 | ||||||||
Investment in hotels and other properties, net of accumulated depreciation | $ | 22,773 | $ | 23,047 | |||||
Total assets | $ | 28,484 | $ | 29,033 | |||||
Debt, net of unamortized debt issuance costs | $ | 22,439 | $ | 22,563 | |||||
Total liabilities | $ | 24,606 | $ | 24,541 | |||||
Equity | $ | 3,878 | $ | 4,492 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Total revenues | $ | 5,503 | $ | 6,569 | |||
Net income (loss) | $ | (114 | ) | $ | 551 | ||
Net income (loss) attributable to FelCor | $ | (57 | ) | $ | 276 | ||
Depreciation of cost in excess of book value | (97 | ) | (127 | ) | |||
Equity in income (loss) from unconsolidated entities | $ | (154 | ) | $ | 149 |
March 31, | December 31, | ||||||||
2016 | 2015 | ||||||||
Equity basis of hotel joint venture investments | $ | (3,995 | ) | $ | (4,216 | ) | |||
Cost of hotel investments in excess of joint venture book value | 7,232 | 7,329 | |||||||
Equity basis of land and condominium joint venture investments | 5,934 | 6,462 | |||||||
Investment in unconsolidated entities | $ | 9,171 | $ | 9,575 |
Three Months Ended | ||||||||
March 31, | ||||||||
2016 | 2015 | |||||||
Hotel investments | $ | 375 | $ | 748 | ||||
Other investments | (529 | ) | (599 | ) | ||||
Equity in income (loss) from unconsolidated entities | $ | (154 | ) | $ | 149 |
3. | Debt |
Encumbered | Interest | Maturity | March 31, | December 31, | ||||||||||||
Hotels | Rate (%) | Date | 2016 | 2015 | ||||||||||||
Senior unsecured notes | — | 6.00 | June 2025 | $ | 475,000 | $ | 475,000 | |||||||||
Senior secured notes | 9 | 5.625 | March 2023 | 525,000 | 525,000 | |||||||||||
Mortgage debt(a) | 4 | 4.95 | October 2022 | 121,874 | 122,237 | |||||||||||
Mortgage debt | 1 | 4.94 | October 2022 | 30,584 | 30,717 | |||||||||||
Line of credit(b) | 7 | LIBOR + 2.75 | June 2019 | 221,000 | 190,000 | |||||||||||
The Knickerbocker loan(c) | 1 | LIBOR + 3.00 | November 2017 | 85,000 | 85,000 | |||||||||||
Total | 22 | $ | 1,458,458 | $ | 1,427,954 | |||||||||||
Unamortized debt issuance costs | (17,666 | ) | (18,065 | ) | ||||||||||||
Debt, net of unamortized debt issuance costs | $ | 1,440,792 | $ | 1,409,889 |
(a) | This debt is comprised of separate non-cross-collateralized loans, each secured by a mortgage encumbering different hotels. |
(b) | Our line of credit can be extended for one year, subject to satisfying certain conditions. We may borrow up to $400 million under our line of credit. |
(c) | This loan can be extended for one year, subject to satisfying certain conditions. |
4. | Hotel Operating Revenue, Departmental Expenses, and Other Property-Related Costs |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Room revenue | $ | 159,076 | $ | 162,306 | |||
Food and beverage revenue | 39,532 | 39,844 | |||||
Other operating departments | 10,849 | 11,135 | |||||
Total hotel operating revenue | $ | 209,457 | $ | 213,285 |
Three Months Ended March 31, | |||||||||||||||
2016 | 2015 | ||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||
Room | $ | 42,699 | 20.4 | % | $ | 42,511 | 19.9 | % | |||||||
Food and beverage | 30,956 | 14.8 | 30,696 | 14.4 | |||||||||||
Other operating departments | 3,783 | 1.8 | 4,449 | 2.1 | |||||||||||
Total hotel departmental expenses | $ | 77,438 | 37.0 | % | $ | 77,656 | 36.4 | % |
Three Months Ended March 31, | |||||||||||||||
2016 | 2015 | ||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||
Hotel general and administrative expense | $ | 20,458 | 9.8 | % | $ | 19,363 | 9.1 | % | |||||||
Marketing | 18,873 | 9.0 | 19,303 | 9.1 | |||||||||||
Repair and maintenance | 9,705 | 4.6 | 10,350 | 4.9 | |||||||||||
Utilities | 6,530 | 3.1 | 7,879 | 3.6 | |||||||||||
Total other property-related costs | $ | 55,566 | 26.5 | % | $ | 56,895 | 26.7 | % |
5. | Taxes, Insurance and Lease Expense |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Hotel lease expense(a) | $ | 802 | $ | 2,104 | |||
Land lease expense(b) | 3,262 | 3,059 | |||||
Real estate and other taxes | 7,575 | 7,691 | |||||
Property insurance, general liability insurance and other | 1,943 | 1,953 | |||||
Total taxes, insurance and lease expense | $ | 13,582 | $ | 14,807 |
(a) | We record hotel lease expense for the consolidated operating lessees of hotels owned by unconsolidated entities and partially offset this expense through noncontrolling interests in other partnerships (generally 49%). We record our 50% share of the corresponding lease income through equity in income from unconsolidated entities. Hotel lease expense includes percentage rent of $936,000 for the three months ended March 31, 2015. |
(b) | We include in land lease expense percentage rent of $1.6 million and $1.5 million for the three months ended March 31, 2016 and 2015, respectively. |
6. | Hotel Dispositions |
Three Months Ended | ||||
March 31, | ||||
2015 | ||||
Hotel operating revenue | $ | 18,016 | ||
Operating expenses | (14,542 | ) | ||
Operating income | 3,474 | |||
Interest expense, net | (596 | ) | ||
Debt extinguishment | (73 | ) | ||
Equity in income from unconsolidated entities | 205 | |||
Income from continuing operations | 3,010 | |||
Gain on sale of hotels, net | 16,887 | |||
Net income | 19,897 | |||
Net loss (income) attributable to noncontrolling interests in other partnerships | (5,218 | ) | ||
Net income attributable to redeemable noncontrolling interests in FelCor LP | (70 | ) | ||
Net income attributable to FelCor | $ | 14,609 |
7. | Loss Per Share/Unit |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Numerator: | |||||||
Net income (loss) attributable to FelCor | $ | (4,922 | ) | $ | 6,783 | ||
Discontinued operations attributable to FelCor | — | (4 | ) | ||||
Income (loss) from continuing operations attributable to FelCor | (4,922 | ) | 6,779 | ||||
Less: Preferred dividends | (6,279 | ) | (9,678 | ) | |||
Less: Dividends declared on unvested restricted stock | (38 | ) | (13 | ) | |||
Numerator for continuing operations attributable to FelCor common stockholders | (11,239 | ) | (2,912 | ) | |||
Discontinued operations attributable to FelCor | — | 4 | |||||
Numerator for basic and diluted loss attributable to FelCor common stockholders | $ | (11,239 | ) | $ | (2,908 | ) | |
Denominator: | |||||||
Denominator for basic and diluted loss per share | 139,678 | 124,519 | |||||
Basic and diluted loss per share data: | |||||||
Loss from continuing operations | $ | (0.08 | ) | $ | (0.02 | ) | |
Net loss | $ | (0.08 | ) | $ | (0.02 | ) |
7. | Loss Per Share/Unit — (continued) |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Numerator: | |||||||
Net income (loss) attributable to FelCor LP | $ | (4,970 | ) | $ | 6,769 | ||
Discontinued operations attributable to FelCor LP | — | (4 | ) | ||||
Income (loss) from continuing operations attributable to FelCor LP | (4,970 | ) | 6,765 | ||||
Less: Preferred distributions | (6,279 | ) | (9,678 | ) | |||
Less: Distributions declared on FelCor unvested restricted stock | (38 | ) | (13 | ) | |||
Numerator for continuing operations attributable to FelCor LP common unitholders | (11,287 | ) | (2,926 | ) | |||
Discontinued operations attributable to FelCor LP | — | 4 | |||||
Numerator for basic and diluted loss attributable to FelCor common unitholders | $ | (11,287 | ) | $ | (2,922 | ) | |
Denominator: | |||||||
Denominator for basic and diluted loss per unit | 140,289 | 125,130 | |||||
Basic and diluted loss per unit data: | |||||||
Loss from continuing operations | $ | (0.08 | ) | $ | (0.02 | ) | |
Net loss | $ | (0.08 | ) | $ | (0.02 | ) |
Three Months Ended | ||||||
March 31, | ||||||
2016 | 2015 | |||||
Series A convertible preferred shares/units | 9,984 | 9,984 | ||||
FelCor restricted stock units | 619 | 1,194 |
8. | Fair Value of Financial Instruments |
9. | Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units |
9. | Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units — (continued) |
Three Months Ended | |||||||||
March 31, | |||||||||
2016 | 2015 | ||||||||
Balance at beginning of period | $ | 4,464 | $ | 6,616 | |||||
Redemption value allocation | 585 | 447 | |||||||
Distributions paid to unitholders | (36 | ) | (23 | ) | |||||
Net loss | (48 | ) | (14 | ) | |||||
Balance at end of period | $ | 4,965 | $ | 7,026 |
14. | FelCor LP’s Consolidating Financial Information |
14. | FelCor LP’s Consolidating Financial Information — (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net investment in hotels | $ | — | $ | 619,653 | $ | 1,091,870 | $ | — | $ | 1,711,523 | |||||||||
Equity investment in consolidated entities | 1,220,693 | — | — | (1,220,693 | ) | — | |||||||||||||
Investment in unconsolidated entities | 4,253 | 3,665 | 1,253 | — | 9,171 | ||||||||||||||
Cash and cash equivalents | 21,811 | 35,074 | 1,073 | — | 57,958 | ||||||||||||||
Restricted cash | — | 17,069 | 4,028 | — | 21,097 | ||||||||||||||
Accounts receivable, net | 253 | 33,281 | 1,285 | — | 34,819 | ||||||||||||||
Deferred expenses, net | — | — | 5,932 | — | 5,932 | ||||||||||||||
Other assets | 2,524 | 11,257 | 3,895 | — | 17,676 | ||||||||||||||
Total assets | $ | 1,249,534 | $ | 719,999 | $ | 1,109,336 | $ | (1,220,693 | ) | $ | 1,858,176 | ||||||||
Debt, net | $ | 984,602 | $ | — | $ | 495,626 | $ | (39,436 | ) | $ | 1,440,792 | ||||||||
Distributions payable | 14,938 | — | 124 | — | 15,062 | ||||||||||||||
Accrued expenses and other liabilities | 22,625 | 89,352 | 11,789 | — | 123,766 | ||||||||||||||
Total liabilities | 1,022,165 | 89,352 | 507,539 | (39,436 | ) | 1,579,620 | |||||||||||||
Redeemable units, at redemption value | 4,965 | — | — | — | 4,965 | ||||||||||||||
Preferred units | 309,337 | — | — | — | 309,337 | ||||||||||||||
Common units | (86,933 | ) | 631,765 | 549,492 | (1,181,257 | ) | (86,933 | ) | |||||||||||
Total FelCor LP partners’ capital | 222,404 | 631,765 | 549,492 | (1,181,257 | ) | 222,404 | |||||||||||||
Noncontrolling interests | — | (1,118 | ) | 8,521 | — | 7,403 | |||||||||||||
Preferred capital in consolidated joint venture | — | — | 43,784 | — | 43,784 | ||||||||||||||
Total partners’ capital | 222,404 | 630,647 | 601,797 | (1,181,257 | ) | 273,591 | |||||||||||||
Total liabilities and partners’ capital | $ | 1,249,534 | $ | 719,999 | $ | 1,109,336 | $ | (1,220,693 | ) | $ | 1,858,176 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net investment in hotels | $ | — | $ | 625,835 | $ | 1,103,696 | $ | — | $ | 1,729,531 | |||||||||
Equity investment in consolidated entities | 1,260,779 | — | — | (1,260,779 | ) | — | |||||||||||||
Investment in unconsolidated entities | 4,440 | 3,871 | 1,264 | — | 9,575 | ||||||||||||||
Cash and cash equivalents | 21,219 | 34,294 | 4,273 | — | 59,786 | ||||||||||||||
Restricted cash | — | 15,442 | 2,260 | — | 17,702 | ||||||||||||||
Accounts receivable, net | 644 | 25,575 | 1,917 | — | 28,136 | ||||||||||||||
Deferred expenses, net | — | — | 6,390 | — | 6,390 | ||||||||||||||
Other assets | 3,587 | 8,786 | 2,419 | — | 14,792 | ||||||||||||||
Total assets | $ | 1,290,669 | $ | 713,803 | $ | 1,122,219 | $ | (1,260,779 | ) | $ | 1,865,912 | ||||||||
Debt, net | $ | 984,226 | $ | — | $ | 465,099 | $ | (39,436 | ) | $ | 1,409,889 | ||||||||
Distributions payable | 15,016 | — | 124 | — | 15,140 | ||||||||||||||
Accrued expenses and other liabilities | 26,810 | 83,787 | 14,677 | — | 125,274 | ||||||||||||||
Total liabilities | 1,026,052 | 83,787 | 479,900 | (39,436 | ) | 1,550,303 | |||||||||||||
Redeemable units, at redemption value | 4,464 | — | — | — | 4,464 | ||||||||||||||
Preferred units | 309,337 | — | — | — | 309,337 | ||||||||||||||
Common units | (49,184 | ) | 630,833 | 590,510 | (1,221,343 | ) | (49,184 | ) | |||||||||||
Total FelCor LP partners’ capital | 260,153 | 630,833 | 590,510 | (1,221,343 | ) | 260,153 | |||||||||||||
Noncontrolling interests | — | (817 | ) | 8,623 | — | 7,806 | |||||||||||||
Preferred capital in consolidated joint venture | — | — | 43,186 | — | 43,186 | ||||||||||||||
Total partners’ capital | 260,153 | 630,016 | 642,319 | (1,221,343 | ) | 311,145 | |||||||||||||
Total liabilities and partners’ capital | $ | 1,290,669 | $ | 713,803 | $ | 1,122,219 | $ | (1,260,779 | ) | $ | 1,865,912 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 209,457 | $ | — | $ | — | $ | 209,457 | |||||||||
Percentage lease revenue | — | — | 43,545 | (43,545 | ) | — | |||||||||||||
Other revenue | 186 | 432 | 69 | — | 687 | ||||||||||||||
Total revenues | 186 | 209,889 | 43,614 | (43,545 | ) | 210,144 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 142,229 | — | — | 142,229 | ||||||||||||||
Taxes, insurance and lease expense | 27 | 51,484 | 5,616 | (43,545 | ) | 13,582 | |||||||||||||
Corporate expenses | — | 4,336 | 4,064 | — | 8,400 | ||||||||||||||
Depreciation and amortization | 51 | 11,996 | 17,136 | — | 29,183 | ||||||||||||||
Other expenses | 232 | 553 | 43 | — | 828 | ||||||||||||||
Total operating expenses | 310 | 210,598 | 26,859 | (43,545 | ) | 194,222 | |||||||||||||
Operating income | (124 | ) | (709 | ) | 16,755 | — | 15,922 | ||||||||||||
Interest expense, net | (14,661 | ) | 9 | (5,068 | ) | — | (19,720 | ) | |||||||||||
Loss before equity in loss from unconsolidated entities | (14,785 | ) | (700 | ) | 11,687 | — | (3,798 | ) | |||||||||||
Equity in income from consolidated entities | 9,867 | — | — | (9,867 | ) | — | |||||||||||||
Equity in loss from unconsolidated entities | 64 | (207 | ) | (11 | ) | — | (154 | ) | |||||||||||
Loss from continuing operations before income tax expense | (4,854 | ) | (907 | ) | 11,676 | (9,867 | ) | (3,952 | ) | ||||||||||
Income tax expense | (116 | ) | (299 | ) | — | — | (415 | ) | |||||||||||
Loss from continuing operations before gain on sale of hotels | (4,970 | ) | (1,206 | ) | 11,676 | (9,867 | ) | (4,367 | ) | ||||||||||
Loss on sale of hotels, net | — | (457 | ) | (257 | ) | — | (714 | ) | |||||||||||
Net loss and comprehensive loss | (4,970 | ) | (1,663 | ) | 11,419 | (9,867 | ) | (5,081 | ) | ||||||||||
Loss attributable to noncontrolling interests | — | 369 | 102 | — | 471 | ||||||||||||||
Preferred distributions - consolidated joint venture | — | — | (360 | ) | — | (360 | ) | ||||||||||||
Net loss and comprehensive loss attributable to FelCor LP | (4,970 | ) | (1,294 | ) | 11,161 | (9,867 | ) | (4,970 | ) | ||||||||||
Preferred distributions | (6,279 | ) | — | — | — | (6,279 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (11,249 | ) | $ | (1,294 | ) | $ | 11,161 | $ | (9,867 | ) | $ | (11,249 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 213,285 | $ | — | $ | — | $ | 213,285 | |||||||||
Percentage lease revenue | — | — | 39,187 | (39,187 | ) | — | |||||||||||||
Other revenue | 1 | 348 | 61 | — | 410 | ||||||||||||||
Total revenues | 1 | 213,633 | 39,248 | (39,187 | ) | 213,695 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 143,636 | — | — | 143,636 | ||||||||||||||
Taxes, insurance and lease expense | (200 | ) | 49,071 | 5,123 | (39,187 | ) | 14,807 | ||||||||||||
Corporate expenses | 138 | 4,605 | 3,830 | — | 8,573 | ||||||||||||||
Depreciation and amortization | 41 | 13,165 | 14,566 | — | 27,772 | ||||||||||||||
Other expenses | — | 4,045 | 183 | — | 4,228 | ||||||||||||||
Total operating expenses | (21 | ) | 214,522 | 23,702 | (39,187 | ) | 199,016 | ||||||||||||
Operating income | 22 | (889 | ) | 15,546 | — | 14,679 | |||||||||||||
Interest expense, net | (13,740 | ) | 3 | (5,744 | ) | — | (19,481 | ) | |||||||||||
Debt extinguishment | — | — | (73 | ) | — | (73 | ) | ||||||||||||
Loss before equity in income from unconsolidated entities | (13,718 | ) | (886 | ) | 9,729 | — | (4,875 | ) | |||||||||||
Equity in income from consolidated entities | 20,359 | — | — | (20,359 | ) | — | |||||||||||||
Equity in income from unconsolidated entities | 346 | (186 | ) | (11 | ) | — | 149 | ||||||||||||
Loss from continuing operations before income tax expense | 6,987 | (1,072 | ) | 9,718 | (20,359 | ) | (4,726 | ) | |||||||||||
Income tax expense | (47 | ) | (122 | ) | — | — | (169 | ) | |||||||||||
Loss from continuing operations | 6,940 | (1,194 | ) | 9,718 | (20,359 | ) | (4,895 | ) | |||||||||||
Income from discontinued operations | — | 4 | — | — | 4 | ||||||||||||||
Loss before gain on sale of hotels | 6,940 | (1,190 | ) | 9,718 | (20,359 | ) | (4,891 | ) | |||||||||||
Gain on sale of hotels, net | (171 | ) | (10 | ) | 17,068 | — | 16,887 | ||||||||||||
Net income and comprehensive income | 6,769 | (1,200 | ) | 26,786 | (20,359 | ) | 11,996 | ||||||||||||
Income attributable to noncontrolling interests | — | 258 | (5,137 | ) | — | (4,879 | ) | ||||||||||||
Preferred distributions - consolidated joint venture | — | — | (348 | ) | — | (348 | ) | ||||||||||||
Net income and comprehensive income attributable to FelCor LP | 6,769 | (942 | ) | 21,301 | (20,359 | ) | 6,769 | ||||||||||||
Preferred distributions | (9,678 | ) | — | — | — | (9,678 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (2,909 | ) | $ | (942 | ) | $ | 21,301 | $ | (20,359 | ) | $ | (2,909 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Operating activities: | |||||||||||||||||||
Cash flows from operating activities | $ | (16,847 | ) | $ | 7,399 | $ | 29,101 | $ | — | $ | 19,653 | ||||||||
Investing activities: | |||||||||||||||||||
Improvements and additions to hotels | 3 | (6,104 | ) | (7,907 | ) | — | (14,008 | ) | |||||||||||
Net proceeds from asset sales | (66 | ) | (278 | ) | (122 | ) | — | (466 | ) | ||||||||||
Insurance proceeds | — | — | 94 | — | 94 | ||||||||||||||
Change in restricted cash - investing | — | (1,627 | ) | (1,768 | ) | — | (3,395 | ) | |||||||||||
Distributions from unconsolidated entities | 136 | — | — | — | 136 | ||||||||||||||
Intercompany financing | 51,999 | — | — | (51,999 | ) | — | |||||||||||||
Cash flows from investing activities | 52,072 | (8,009 | ) | (9,703 | ) | (51,999 | ) | (17,639 | ) | ||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from borrowings | — | — | 31,000 | — | 31,000 | ||||||||||||||
Repayment of borrowings | — | — | (496 | ) | — | (496 | ) | ||||||||||||
Payment of deferred financing fees | — | — | (10 | ) | — | (10 | ) | ||||||||||||
Contributions from noncontrolling interests | — | 68 | — | — | 68 | ||||||||||||||
Repurchase of common stock | (19,218 | ) | — | — | — | (19,218 | ) | ||||||||||||
Distributions paid to preferred unitholders | (6,279 | ) | — | — | — | (6,279 | ) | ||||||||||||
Distributions paid to common unitholders | (8,508 | ) | — | — | — | (8,508 | ) | ||||||||||||
Net proceeds from issuance of preferred capital - consolidated joint venture | — | — | 598 | — | 598 | ||||||||||||||
Intercompany financing | — | 1,331 | (53,330 | ) | 51,999 | — | |||||||||||||
Other | (628 | ) | — | (360 | ) | — | (988 | ) | |||||||||||
Cash flows from financing activities | (34,633 | ) | 1,399 | (22,598 | ) | 51,999 | (3,833 | ) | |||||||||||
Effect of exchange rate changes on cash | — | (9 | ) | — | — | (9 | ) | ||||||||||||
Change in cash and cash equivalents | 592 | 780 | (3,200 | ) | — | (1,828 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 21,219 | 34,294 | 4,273 | — | 59,786 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 21,811 | $ | 35,074 | $ | 1,073 | $ | — | $ | 57,958 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Operating activities: | |||||||||||||||||||
Cash flows from operating activities | $ | (13,290 | ) | $ | 5,777 | $ | 24,366 | $ | — | $ | 16,853 | ||||||||
Investing activities: | |||||||||||||||||||
Improvements and additions to hotels | (473 | ) | (7,551 | ) | (5,459 | ) | — | (13,483 | ) | ||||||||||
Hotel development | — | — | (10,108 | ) | — | (10,108 | ) | ||||||||||||
Net proceeds from asset sales | (98 | ) | 10 | 91,416 | — | 91,328 | |||||||||||||
Insurance proceeds | 274 | — | — | — | 274 | ||||||||||||||
Change in restricted cash - investing | — | (479 | ) | (1,197 | ) | — | (1,676 | ) | |||||||||||
Distributions from unconsolidated entities | 31 | — | — | — | 31 | ||||||||||||||
Intercompany financing | 42,392 | — | — | (42,392 | ) | — | |||||||||||||
Cash flows from investing activities | 42,126 | (8,020 | ) | 74,652 | (42,392 | ) | 66,366 | ||||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from borrowings | — | — | 36,000 | — | 36,000 | ||||||||||||||
Repayment of borrowings | — | — | (78,428 | ) | — | (78,428 | ) | ||||||||||||
Payment of deferred financing fees | — | — | (81 | ) | — | (81 | ) | ||||||||||||
Distributions paid to preferred unitholders | (9,678 | ) | — | — | — | (9,678 | ) | ||||||||||||
Distributions paid to common unitholders | (5,034 | ) | — | — | — | (5,034 | ) | ||||||||||||
Distributions paid to noncontrolling interests | — | (81 | ) | (15,745 | ) | — | (15,826 | ) | |||||||||||
Contributions from noncontrolling interests | — | 10 | 780 | — | 790 | ||||||||||||||
Net proceeds from issuance of preferred capital- consolidated joint venture | — | — | 1,248 | — | 1,248 | ||||||||||||||
Intercompany financing | — | 7,050 | (49,442 | ) | 42,392 | — | |||||||||||||
Other | (31 | ) | — | (345 | ) | — | (376 | ) | |||||||||||
Cash flows from financing activities | (14,743 | ) | 6,979 | (106,013 | ) | 42,392 | (71,385 | ) | |||||||||||
Effect of exchange rate changes on cash | — | (51 | ) | — | — | (51 | ) | ||||||||||||
Change in cash and cash equivalents | 14,093 | 4,685 | (6,995 | ) | — | 11,783 | |||||||||||||
Cash and cash equivalents at beginning of period | 5,717 | 32,923 | 8,507 | — | 47,147 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 19,810 | $ | 37,608 | $ | 1,512 | $ | — | $ | 58,930 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Hotel operating revenue declined $3.8 million, including a $12.6 million net reduction in revenue for hotels that have been disposed of, classified as held for sale or recently opened. Excluding these hotels, hotel operating revenue increased 4.5% from last year. The increase was driven by a 4.7% increase in same-store RevPAR, reflecting a 3.4% increase in ADR and a 1.2% increase in occupancy. |
• | Hotel departmental expenses declined $218,000, including a $2.3 million net reduction in expense for hotels that have been disposed of, classified as held for sale or recently opened. Excluding these hotels, hotel departmental expenses decreased to 35.9% of hotel operating revenue from 36.5% last year. |
• | Other property-related costs declined $1.3 million, including a $3.7 million net reduction in expense for hotels that have been disposed of, classified as held for sale or recently opened. Excluding these hotels, other property-related costs increased slightly to 26.1% of hotel operating revenue from 26.0% last year. |
• | Management and franchise fees increased $140,000, including an $862,000 net reduction in expense for hotels that have been disposed of, classified as held for sale or recently opened. Excluding these hotels, these costs increased to 4.5% of hotel operating revenue from 4.2% last year. As a result of improved operations at our Wyndham hotels, we recorded a smaller reduction in our Wyndham management fees in the current year, accounting for the guaranty provided by Wyndham, as compared to the same period last year. |
• | Taxes, insurance and lease expense declined $1.2 million, including a $1.6 million net reduction in expense for hotels that have been disposed of, classified as held for sale or recently opened. Excluding these hotels, these expenses decreased slightly to 6.5% of hotel operating revenue from 6.6% last year. |
• | Depreciation and amortization expense increased $1.4 million primarily attributable to depreciation of The Knickerbocker after the hotel was placed in service during 2015, partially offset by depreciation of hotels sold in 2015. |
• | Other expenses declined $3.4 million from the same period last year. This change is primarily attributable to pre-opening costs incurred in 2015 for The Knickerbocker. |
• | Net interest expense increased $239,000. We completed certain renovation and redevelopment projects, including The Knickerbocker, in 2015 resulting in lower capitalized interest in the current year as compared to the same period last year. Excluding the change in capitalized interest, interest expense declined by $3.1 million. |
• | Equity in income from unconsolidated entities decreased $303,000, primarily reflecting the 2015 sale of a hotel owned by one of our unconsolidated joint ventures. |
Three Months Ended March 31, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net income (loss) | $ | (5,081 | ) | $ | 11,996 | ||||||||||||||||
Noncontrolling interests | 519 | (4,865 | ) | ||||||||||||||||||
Preferred dividends | (6,279 | ) | (9,678 | ) | |||||||||||||||||
Preferred distributions - consolidated joint venture | (360 | ) | (348 | ) | |||||||||||||||||
Net loss attributable to FelCor common stockholders | (11,201 | ) | (2,895 | ) | |||||||||||||||||
Less: Dividends declared on unvested restricted stock | (38 | ) | (13 | ) | |||||||||||||||||
Basic and diluted earnings per share data | (11,239 | ) | 139,678 | $ | (0.08 | ) | (2,908 | ) | 124,519 | $ | (0.02 | ) | |||||||||
Depreciation and amortization | 29,183 | — | 0.22 | 27,772 | — | 0.22 | |||||||||||||||
Depreciation, unconsolidated entities and other partnerships | 467 | — | — | 712 | — | 0.01 | |||||||||||||||
Loss (gain) on sale of hotels, net of noncontrolling interests in other partnerships | 714 | — | — | (11,881 | ) | — | (0.10 | ) | |||||||||||||
Noncontrolling interests in FelCor LP | (48 | ) | 611 | — | (14 | ) | 611 | — | |||||||||||||
Dividends declared on unvested restricted stock | 38 | — | — | 13 | — | — | |||||||||||||||
Conversion of unvested restricted stock and units | — | 627 | — | — | 1,213 | — | |||||||||||||||
FFO | 19,115 | 140,916 | 0.14 | 13,694 | 126,343 | 0.11 | |||||||||||||||
Debt extinguishment | — | — | — | 73 | — | — | |||||||||||||||
Variable stock compensation | 761 | — | — | 997 | — | — | |||||||||||||||
Abandoned projects | 232 | — | — | — | — | — | |||||||||||||||
Pre-opening costs, net of noncontrolling interests | 54 | — | — | 3,524 | — | 0.03 | |||||||||||||||
Adjusted FFO | $ | 20,162 | 140,916 | $ | 0.14 | $ | 18,288 | 126,343 | $ | 0.14 |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Net income (loss) | $ | (5,081 | ) | $ | 11,996 | ||
Depreciation and amortization | 29,183 | 27,772 | |||||
Depreciation, unconsolidated entities and other partnerships | 467 | 712 | |||||
Interest expense | 19,732 | 19,486 | |||||
Interest expense, unconsolidated entities and other partnerships | 99 | 202 | |||||
Income taxes | 415 | — | |||||
Noncontrolling interests in preferred distributions, consolidated joint venture | (18 | ) | — | ||||
Noncontrolling interests in other partnerships | 471 | (4,879 | ) | ||||
EBITDA | 45,268 | 55,289 | |||||
Debt extinguishment | — | 73 | |||||
Loss (gain) on sale of hotels, net of noncontrolling interests in other partnerships | 714 | (11,881 | ) | ||||
Amortization of fixed stock and directors’ compensation | 1,935 | 1,862 | |||||
Abandoned projects | 232 | — | |||||
Variable stock compensation | 761 | 997 | |||||
Pre-opening costs, net of noncontrolling interests | 54 | 3,524 | |||||
Adjusted EBITDA | 48,964 | 49,864 | |||||
Adjusted EBITDA from hotels disposed, held for sale or recently opened | 1,341 | (3,180 | ) | ||||
Same-store Adjusted EBITDA | $ | 50,305 | $ | 46,684 |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Same-store operating revenue: | |||||||
Room | $ | 154,430 | $ | 145,933 | |||
Food and beverage | 38,271 | 38,107 | |||||
Other operating departments | 10,798 | 10,649 | |||||
Same-store operating revenue | 203,499 | 194,689 | |||||
Same-store operating expense: | |||||||
Room | 40,407 | 37,959 | |||||
Food and beverage | 28,978 | 28,876 | |||||
Other operating departments | 3,767 | 4,242 | |||||
Other property related costs | 53,033 | 50,710 | |||||
Management and franchise fees | 9,095 | 8,093 | |||||
Taxes, insurance and lease expense | 12,811 | 12,430 | |||||
Same-store operating expense | 148,091 | 142,310 | |||||
Hotel EBITDA | $ | 55,408 | $ | 52,379 | |||
Hotel EBITDA Margin | 27.2 | % | 26.9 | % |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Same-store operating revenue | $ | 203,499 | $ | 194,689 | |||
Other revenue | 687 | 410 | |||||
Revenue from hotels disposed, held for sale and recently opened(a) | 5,958 | 18,596 | |||||
Total revenue | 210,144 | 213,695 | |||||
Same-store operating expense | 148,091 | 142,310 | |||||
Consolidated hotel lease expense(b) | 802 | 2,104 | |||||
Unconsolidated taxes, insurance and lease expense | (452 | ) | (741 | ) | |||
Corporate expenses | 8,400 | 8,573 | |||||
Depreciation and amortization | 29,183 | 27,772 | |||||
Expenses from hotels disposed, held for sale and recently opened(a) | 7,370 | 14,770 | |||||
Other expenses | 828 | 4,228 | |||||
Total operating expense | 194,222 | 199,016 | |||||
Operating income | $ | 15,922 | $ | 14,679 |
(a) | Under GAAP, we include the operating performance for disposed, held for sale and recently opened hotels in continuing operations in our statements of operations. 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 lease expense of our 51% owned operating lessees. The offsetting 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 expenses and costs - From time to time, we periodically incur expenses or transaction costs that are not indicative of ongoing operating performance. Such costs include, but are not limited to, conversion costs, acquisition costs, pre-opening costs, severance costs and certain non-cash adjustments. 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, 2016 | ||||||
Consolidated Hotels(a) | 40 | 12,272 | |||||
Unconsolidated hotel operations | 1 | 171 | |||||
Total hotels | 41 | 12,443 | |||||
50% joint ventures | 2 | (216 | ) | ||||
95% joint venture | 1 | (17 | ) | ||||
Pro rata rooms attributed to joint venture partners | (233 | ) | |||||
Pro rata share of rooms owned | 12,210 |
Occupancy (%) | ADR ($) | RevPar ($) | |||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||||||||||
Same-store Hotels(1) | 2016 | 2015 | %Change | 2016 | 2015 | %Change | 2016 | 2015 | %Change | ||||||||||||||||
Embassy Suites Atlanta-Buckhead | 80.9 | 78.8 | 2.7 | 159.13 | 151.40 | 5.1 | 128.79 | 119.30 | 8.0 | ||||||||||||||||
DoubleTree Suites by Hilton Austin | 82.8 | 82.1 | 0.9 | 240.06 | 249.64 | (3.8 | ) | 198.87 | 204.95 | (3.0 | ) | ||||||||||||||
Embassy Suites Birmingham | 80.7 | 77.1 | 4.7 | 133.82 | 135.66 | (1.4 | ) | 107.92 | 104.55 | 3.2 | |||||||||||||||
The Fairmont Copley Plaza, Boston | 64.0 | 61.6 | 4.0 | 252.18 | 250.51 | 0.7 | 161.36 | 154.20 | 4.6 | ||||||||||||||||
Wyndham Boston Beacon Hill | 63.8 | 68.2 | (6.4 | ) | 164.42 | 165.66 | (0.7 | ) | 104.87 | 112.93 | (7.1 | ) | |||||||||||||
Embassy Suites Boston-Marlborough | 64.8 | 72.5 | (10.6 | ) | 167.60 | 162.49 | 3.1 | 108.56 | 117.79 | (7.8 | ) | ||||||||||||||
Sheraton Burlington Hotel & Conference Center | 68.5 | 65.6 | 4.5 | 93.17 | 101.51 | (8.2 | ) | 63.86 | 66.58 | (4.1 | ) | ||||||||||||||
The Mills House Wyndham Grand Hotel, Charleston | 78.1 | 78.4 | (0.5 | ) | 205.75 | 199.53 | 3.1 | 160.63 | 156.48 | 2.6 | |||||||||||||||
Embassy Suites Dallas-Love Field | 85.3 | 91.8 | (7.1 | ) | 143.51 | 133.66 | 7.4 | 122.36 | 122.64 | (0.2 | ) | ||||||||||||||
Embassy Suites Deerfield Beach-Resort & Spa | 88.2 | 92.0 | (4.1 | ) | 269.69 | 260.39 | 3.6 | 237.96 | 239.58 | (0.7 | ) | ||||||||||||||
Embassy Suites Fort Lauderdale 17th Street | 93.4 | 93.4 | — | 231.31 | 214.51 | 7.8 | 215.99 | 200.33 | 7.8 | ||||||||||||||||
Wyndham Houston-Medical Center Hotel & Suites | 86 | 80.1 | 7.4 | 159.64 | 160.85 | (0.8 | ) | 137.32 | 128.81 | 6.6 | |||||||||||||||
Renaissance Esmeralda Indian Wells Resort & Spa | 68.6 | 72.5 | (5.3 | ) | 230.67 | 227.86 | 1.2 | 158.28 | 165.18 | (4.2 | ) | ||||||||||||||
Embassy Suites Los Angeles-International Airport/South | 90 | 80.7 | 11.5 | 162.70 | 148.02 | 9.9 | 146.41 | 119.50 | 22.5 | ||||||||||||||||
Embassy Suites Mandalay Beach-Hotel & Resort | 76.7 | 73.0 | 5.1 | 207.31 | 180.39 | 14.9 | 158.98 | 131.63 | 20.8 | ||||||||||||||||
Embassy Suites Miami-International Airport | 91.5 | 94.1 | (2.8 | ) | 197.22 | 199.66 | (1.2 | ) | 180.41 | 187.82 | (3.9 | ) | |||||||||||||
Embassy Suites Milpitas-Silicon Valley | 80.8 | 78.9 | 2.4 | 211.62 | 194.81 | 8.6 | 170.92 | 153.70 | 11.2 | ||||||||||||||||
Embassy Suites Minneapolis-Airport | 68.7 | 72.3 | (5.0 | ) | 143.73 | 142.01 | 1.2 | 98.80 | 102.72 | (3.8 | ) | ||||||||||||||
Embassy Suites Myrtle Beach-Oceanfront Resort | 68.6 | 62.0 | 10.7 | 129.48 | 124.77 | 3.8 | 88.83 | 77.34 | 14.9 | ||||||||||||||||
Hilton Myrtle Beach Resort | 48.1 | 48.6 | (1.0 | ) | 106.90 | 102.61 | 4.2 | 51.47 | 49.89 | 3.2 | |||||||||||||||
Embassy Suites Napa Valley | 79.9 | 77.2 | 3.5 | 182.08 | 180.14 | 1.1 | 145.56 | 139.12 | 4.6 | ||||||||||||||||
Holiday Inn Nashville Airport | 65.5 | 55.9 | 17.3 | 113.27 | 104.00 | 8.9 | 74.23 | 58.12 | 27.7 | ||||||||||||||||
Wyndham New Orleans-French Quarter | 73.7 | 66.2 | 11.4 | 155.37 | 167.67 | (7.3 | ) | 114.53 | 110.96 | 3.2 | |||||||||||||||
Morgans New York | 72.9 | 66.0 | 10.5 | 212.76 | 216.61 | (1.8 | ) | 155.01 | 142.87 | 8.5 | |||||||||||||||
Royalton New York | 76.2 | 79.2 | (3.7 | ) | 237.95 | 245.41 | (3.0 | ) | 181.40 | 194.36 | (6.7 | ) | |||||||||||||
Embassy Suites Orlando-International Drive South/Convention Center | 88.1 | 87.5 | 0.7 | 176.25 | 170.05 | 3.6 | 155.36 | 148.81 | 4.4 | ||||||||||||||||
DoubleTree Suites by Hilton Orlando-Lake Buena Vista | 92.3 | 92.8 | (0.6 | ) | 165.40 | 151.91 | 8.9 | 152.60 | 141.01 | 8.2 | |||||||||||||||
Wyndham Philadelphia Historic District | 55.0 | 45.4 | 21.2 | 125.93 | 126.65 | (0.6 | ) | 69.26 | 57.46 | 20.5 | |||||||||||||||
Sheraton Philadelphia Society Hill Hotel | 55.0 | 53.0 | 3.8 | 151.24 | 151.09 | 0.1 | 83.24 | 80.08 | 3.9 | ||||||||||||||||
Embassy Suites Phoenix-Biltmore | 78.0 | 84.1 | (7.2 | ) | 243.29 | 231.01 | 5.3 | 189.88 | 194.19 | (2.2 | ) | ||||||||||||||
Wyndham Pittsburgh University Center | 55.4 | 59.0 | (6.0 | ) | 132.08 | 132.17 | (0.1 | ) | 73.21 | 77.92 | (6.1 | ) | |||||||||||||
Wyndham San Diego Bayside | 77.5 | 77.6 | (0.2 | ) | 137.19 | 136.18 | 0.7 | 106.31 | 105.70 | 0.6 | |||||||||||||||
Embassy Suites San Francisco Airport-South San Francisco | 85.4 | 87.0 | (1.8 | ) | 197.13 | 178.29 | 10.6 | 168.39 | 155.08 | 8.6 | |||||||||||||||
Embassy Suites San Francisco Airport-Waterfront | 85.3 | 83.6 | 2.0 | 204.40 | 199.22 | 2.6 | 174.25 | 166.56 | 4.6 | ||||||||||||||||
Holiday Inn San Francisco-Fisherman’s Wharf | 82.0 | 79.4 | 3.3 | 194.67 | 178.64 | 9.0 | 159.58 | 141.77 | 12.6 | ||||||||||||||||
San Francisco Marriott Union Square | 88.6 | 85.2 | 4.1 | 319.58 | 280.82 | 13.8 | 283.21 | 239.14 | 18.4 | ||||||||||||||||
Wyndham Santa Monica At the Pier | 87.8 | 83.9 | 4.6 | 258.44 | 227.12 | 13.8 | 226.83 | 190.49 | 19.1 | ||||||||||||||||
Embassy Suites Secaucus-Meadowlands | 54.6 | 66.4 | (17.8 | ) | 171.47 | 177.47 | (3.4 | ) | 93.62 | 117.86 | (20.6 | ) | |||||||||||||
The Vinoy Renaissance St. Petersburg Resort & Golf Club | 88.2 | 88.8 | (0.7 | ) | 256.26 | 251.81 | 1.8 | 225.92 | 223.53 | 1.1 | |||||||||||||||
Same-store Hotels | 75.7 | 74.7 | 1.2 | 187.78 | 181.65 | 3.4 | 142.11 | 135.78 | 4.7 |
Consolidated Hotels | Rooms | |||
Embassy Suites Atlanta-Buckhead | 316 | |||
DoubleTree Suites by Hilton Austin | 188 | |||
Embassy Suites Birmingham | 242 | |||
The Fairmont Copley Plaza, Boston | 383 | |||
Wyndham Boston Beacon Hill | 304 | |||
Embassy Suites Boston-Marlborough | 229 | |||
Sheraton Burlington Hotel & Conference Center | 309 | |||
The Mills House Wyndham Grand Hotel, Charleston | 216 | |||
Embassy Suites Dallas-Love Field | 248 | |||
Embassy Suites Deerfield Beach-Resort & Spa | 244 | |||
Embassy Suites Fort Lauderdale 17th Street | 361 | |||
Wyndham Houston-Medical Center Hotel & Suites | 287 | |||
Renaissance Esmeralda Indian Wells Resort & Spa | 560 | |||
Embassy Suites Los Angeles-International Airport/South | 349 | |||
Embassy Suites Mandalay Beach-Hotel & Resort | 250 | |||
Embassy Suites Miami-International Airport | 318 | |||
Embassy Suites Milpitas-Silicon Valley | 266 | |||
Embassy Suites Minneapolis-Airport | 310 | |||
Embassy Suites Myrtle Beach-Oceanfront Resort | 255 | |||
Hilton Myrtle Beach Resort | 385 | |||
Embassy Suites Napa Valley | 205 | |||
Holiday Inn Nashville Airport | 383 | |||
Wyndham New Orleans-French Quarter | 374 | |||
The Knickerbocker New York | 330 | |||
Morgans New York | 117 | |||
Royalton New York | 168 | |||
Embassy Suites Orlando-International Drive South/Convention Center | 244 | |||
DoubleTree Suites by Hilton Orlando-Lake Buena Vista | 229 | |||
Wyndham Philadelphia Historic District | 364 | |||
Sheraton Philadelphia Society Hill Hotel | 364 | |||
Embassy Suites Phoenix-Biltmore | 232 | |||
Wyndham Pittsburgh University Center | 251 | |||
Wyndham San Diego Bayside | 600 | |||
Embassy Suites San Francisco Airport-South San Francisco | 312 | |||
Embassy Suites San Francisco Airport-Waterfront | 340 | |||
Holiday Inn San Francisco-Fisherman’s Wharf | 585 | |||
San Francisco Marriott Union Square | 400 | |||
Wyndham Santa Monica At the Pier | 132 | |||
Embassy Suites Secaucus-Meadowlands(a) | 261 | |||
The Vinoy Renaissance St. Petersburg Resort & Golf Club | 361 | |||
12,272 | ||||
Unconsolidated Hotel | ||||
Chateau LeMoyne-French Quarter, New Orleans(a) | 171 |
(a) | We own a 50% interest in this property. |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk. |
Expected Maturity Date | |||||||||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Fixed-rate: | |||||||||||||||||||||||||||||||
Debt | $ | 2,164 | $ | 2,637 | $ | 2,954 | $ | 3,106 | $ | 3,245 | $ | 1,138,352 | $ | 1,152,458 | $ | 1,191,212 | |||||||||||||||
Average interest rate | 4.95 | % | 4.95 | % | 4.95 | % | 4.95 | % | 4.95 | % | 5.70 | % | 5.69 | % | |||||||||||||||||
Floating-rate: | |||||||||||||||||||||||||||||||
Debt | — | 85,000 | — | 221,000 | — | — | 306,000 | 304,679 | |||||||||||||||||||||||
Average interest rate (a) | — | 3.91 | % | — | 4.03 | % | — | — | 4.00 | % | |||||||||||||||||||||
Total debt | $ | 2,164 | $ | 87,637 | $ | 2,954 | $ | 224,106 | $ | 3,245 | $ | 1,138,352 | $ | 1,458,458 | |||||||||||||||||
Average interest rate | 4.95 | % | 3.94 | % | 4.95 | % | 4.05 | % | 4.95 | % | 5.70 | % | 5.33 | % | |||||||||||||||||
Unamortized debt issuance costs | (17,666 | ) | |||||||||||||||||||||||||||||
Debt, net of unamortized debt issuance costs | $ | 1,440,792 |
(a) | The average floating interest rate considers the implied forward rates in the yield curve at March 31, 2016. |
Item 4. | Controls and Procedures. |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plan | ||||||||||
January 1, 2016 - January 31, 2016 | 2,345,246 | $ | 6.19 | 2,345,246 | $ | 71,175,138 | ||||||||
February 1, 2016 - February 29, 2016 | — | $ | — | — | $ | 71,175,138 | ||||||||
March 1, 2016 - March 31, 2016 | 602,562 | $ | 7.65 | 602,562 | $ | 66,565,347 | ||||||||
Total | 2,947,808 | $ | 6.49 | 2,947,808 | ||||||||||
Exhibit Number | Description of Exhibit | |
10.1 | Incentive Compensation Program for Executive Officers (filed as Exhibit 10.1 to FelCor’s Form 8-K, dated February 22, 2016, and incorporated herein by reference). | |
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 | |||
a Maryland Corporation | |||
Date: May 2, 2016 | By: | /s/ Jeffrey D. Symes | |
Name: | Jeffrey D. Symes | ||
Title: | Senior Vice President, Chief Accounting Officer and Treasurer |
FELCOR LODGING LIMITED PARTNERSHIP | |||
a Delaware limited partnership | |||
By: | FelCor Lodging Trust Incorporated | ||
Its General Partner | |||
Date: May 2, 2016 | By: | /s/ Jeffrey D. Symes | |
Name: | Jeffrey D. Symes | ||
Title: | Senior Vice President, Chief Accounting Officer and Treasurer |
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, 2016 | /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, 2016 | /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, 2016 | /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, 2016 | /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 |
Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2016 |
Apr. 25, 2016 |
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Document and Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FCH | |
Entity Registrant Name | FelCor Lodging Trust Incorporated | |
Entity Central Index Key | 0000923603 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 139,009,016 | |
FelCor Lodging LP [Member] | ||
Document and Entity Information [Line Items] | ||
Entity Registrant Name | FelCor Lodging LP | |
Entity Central Index Key | 0001048789 | |
Entity Filer Category | Non-accelerated Filer |
Consolidated Statements of Changes in Equity (Parentheticals) - $ / shares |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Common Stock, Dividends, Per Share, Declared | $ 0.06 | $ 0.04 |
Series A Preferred Stock [Member] | ||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | 0.4875 | 0.4875 |
Series C Preferred Stock [Member] | ||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $ 0.00 | $ 0.50 |
Consolidated Statements of Partners' Capital - USD ($) $ in Thousands |
Total |
FelCor Lodging LP [Member] |
FelCor Lodging LP [Member]
Preferred Units
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FelCor Lodging LP [Member]
Common Units
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FelCor Lodging LP [Member]
Noncontrolling Interests
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FelCor Lodging LP [Member]
Preferred Capital in Consolidated Joint Venture
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Preferred Equity in Consolidated Joint Venture |
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Partners' Capital, Beginning Balance at Dec. 31, 2014 | $ 362,867 | $ 478,749 | $ (175,759) | $ 18,435 | $ 41,442 | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
FelCor restricted stock compensation | 1,576 | 1,576 | |||||
Contributions | 790 | 790 | |||||
Distributions | (30,944) | (14,770) | (15,826) | (348) | |||
Allocation to redeemable units | (410) | (410) | |||||
Issuance of preferred equity - consolidated joint venture | $ 1,248 | 1,248 | 1,248 | $ 1,248 | |||
Net income (loss) and comprehensive income (loss) | 11,996 | 11,996 | 6,769 | 4,879 | 348 | ||
Partners' Capital, Ending Balance at Mar. 31, 2015 | 347,123 | 478,749 | (182,594) | 8,278 | 42,690 | ||
Partners' Capital, Beginning Balance at Dec. 31, 2015 | 311,145 | 309,337 | (49,184) | 7,806 | 43,186 | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Stock Repurchased During Period, Value | (19,218) | (19,218) | (19,218) | 0 | |||
FelCor restricted stock compensation | 1,687 | 1,687 | |||||
Contributions | 68 | 68 | |||||
Distributions | (15,107) | (14,747) | 0 | (360) | |||
Allocation to redeemable units | (501) | (501) | |||||
Issuance of preferred equity - consolidated joint venture | 598 | 598 | 598 | $ 598 | |||
Net income (loss) and comprehensive income (loss) | $ (5,081) | (5,081) | (4,970) | (471) | 360 | ||
Partners' Capital, Ending Balance at Mar. 31, 2016 | $ 273,591 | $ 309,337 | $ (86,933) | $ 7,403 | $ 43,784 |
Organization |
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Organization [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization | Organization FelCor Lodging Trust Incorporated (NYSE:FCH), or FelCor, is a Maryland corporation, operating as a real estate investment trust, or REIT. FelCor is the sole general partner of, and the owner of a greater than 99.5% partnership interest in, FelCor Lodging Limited Partnership, or FelCor LP, through which we held ownership interests in 41 hotels as of March 31, 2016. At March 31, 2016, we had an aggregate of 139,918,201 shares and units outstanding, consisting of 139,306,739 shares of FelCor common stock and 611,462 FelCor LP units not owned by FelCor. Of our 41 hotels as of March 31, 2016, we owned 100% interests in 38 hotels, a 95% interest in one hotel (The Knickerbocker) and 50% interests in entities owning two hotels. We consolidate our real estate interests in the 39 hotels in which we hold majority interests, and we record the real estate interests of the two hotels in which we hold indirect 50% interests using the equity method. We lease 40 of the 41 hotels to our taxable REIT subsidiaries, of which we own a controlling interest. We operate one 50%-owned hotel without a lease. Because we own controlling interests in our operating lessees, we consolidate our interests in all 40 leased hotels (which we refer to as our Consolidated Hotels) and reflect their operating revenues and expenses in our statements of operations and comprehensive income (loss). We own 50% of the real estate interest in one Consolidated Hotel (we account for our real estate interest of this hotel by the equity method) and majority real estate interests in our remaining 39 Consolidated Hotels (we consolidate our real estate interests in these hotels). The following table illustrates the distribution of our 40 Consolidated Hotels at March 31, 2016:
At March 31, 2016, our Consolidated Hotels were located in 15 states, with concentrations in California (11 hotels), Florida (six hotels) and Massachusetts (three hotels). Approximately 66% of our revenue was generated from hotels in these three states during the first three months of 2016. At March 31, 2016, of our Consolidated Hotels: (i) subsidiaries of Hilton Worldwide, or Hilton, managed 20 hotels; (ii) subsidiaries of Wyndham Worldwide, or Wyndham, managed eight hotels; (iii) subsidiaries of Marriott International Inc., or Marriott, managed three hotels; (iv) subsidiaries of InterContinental Hotels Group, or IHG, managed two hotels; (v) subsidiaries of Starwood Hotels & 1. Organization — (continued) Resorts Worldwide Inc., or Starwood, managed two hotels; (vi) a subsidiary of Fairmont Raffles Hotels International, or Fairmont, managed one hotel; (vii) a subsidiary of Highgate Hotels, or Highgate, managed one hotel; (viii) a subsidiary of Morgans Hotel Group Corporation, or Morgans, managed two hotels; and (ix) Aimbridge Hospitality managed one hotel. On January 1, 2016, we adopted accounting guidance under ASU 2015-2, modifying the analysis performed to determine whether we should consolidate certain types of legal entities. The guidance does not amend the existing disclosure requirements for variable interest entities (“VIEs”) or voting interest model entities. The guidance, however, modified the requirements to qualify under the voting interest model. Under the revised guidance, FelCor LP will be a variable interest entity of FelCor. As FelCor LP is already consolidated in the balance sheets of FelCor, the identification of this entity as a variable interest entity has no impact on the consolidated financial statements of FelCor. There were no other legal entities under the scope of the revised guidance that were consolidated as a result of the adoption. The information in our consolidated financial statements for the three months ended March 31, 2016 and 2015 is unaudited. Preparing financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The accompanying financial statements for the three months ended March 31, 2016 and 2015, include adjustments based on management’s estimates (consisting of normal and recurring accruals), which we consider necessary for a fair statement of the results for the periods. Income taxes in prior periods have been reclassified from taxes, insurance and lease expense to conform to the current period presentation of a single line for income tax expense on our consolidated statement of operations. The financial information should be read in conjunction with the consolidated financial statements for the year ended December 31, 2015, included in our Annual Report on Form 10-K. Operating results for the three months ended March 31, 2016 are not necessarily indicative of actual operating results for the entire year. |
Investment in Unconsolidated Entities |
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Investment in Unconsolidated Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Unconsolidated Entities | Investment in Unconsolidated Entities At March 31, 2016 and December 31, 2015, we owned 50% interests in joint ventures that owned two hotels. We also own 50% interests in entities that own real estate in Myrtle Beach, South Carolina and provide condominium management services there. We account for our investments in these unconsolidated entities under the equity method. We consolidate all of our majority-owned subsidiaries in our financial statements. We make adjustments to our equity in income from unconsolidated entities related to the difference between our basis in investment in unconsolidated entities compared to the historical basis of the assets recorded by the joint ventures.
The following table summarizes combined balance sheet information for our unconsolidated entities (in thousands):
Our unconsolidated entities’ debt at March 31, 2016 and December 31, 2015 consisted entirely of non-recourse mortgage debt. The following table sets forth summarized combined statement of operations information for our unconsolidated entities (in thousands):
The following table summarizes the components of our investments in unconsolidated entities (in thousands):
The following table summarizes the components of our equity in income (loss) from unconsolidated entities (in thousands):
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Debt |
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Debt | Debt Consolidated debt consisted of the following (dollars in thousands):
In connection with the adoption of ASU 2015-03, deferred financing costs of $17.7 million and $18.1 million as of March 31, 2016 and December 31, 2015, respectively, are now classified within the debt on our consolidated balance sheets. Deferred financing costs of $18.1 million at December 31, 2015 had previously been classified as an asset on our consolidated balance sheets. In accordance with ASU 2015-15, deferred financing costs associated with our line of credit remain as an asset on our consolidated balance sheets. We reported $19.7 million and $19.5 million of interest expense for the three months ended March 31, 2016 and 2015, respectively, which is net of: (i) interest income of $12,000 and $5,000 and (ii) capitalized interest of $141,800 and $3.5 million, respectively. |
Hotel Operating Revenue, Departmental Expenses and Other Property-Related Costs |
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Hotel Operating Revenue, Departmental Expenses and Other Property-Related Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hotel Operating Revenue, Departmental Expenses and Other Property-Related Costs | Hotel Operating Revenue, Departmental Expenses, and Other Property-Related Costs Hotel operating revenue from continuing operations was comprised of the following (in thousands):
Nearly all of our revenue is comprised of hotel operating revenue. These revenues are recorded net of any sales or occupancy taxes collected from our guests. We record all rebates or discounts, when allowed, as a reduction in revenue, and there are no material contingent obligations with respect to rebates or discounts offered by us. All revenues are recorded on an accrual basis, as earned. We make appropriate allowances for doubtful accounts, which we record as bad debt expense. The remainder of our revenue was from condominium management fee income and other sources. Hotel departmental expenses from continuing operations were comprised of the following (in thousands):
Other property-related costs from continuing operations were comprised of the following amounts (in thousands):
Wyndham has guaranteed minimum levels of annual net operating income at each of the hotels it manages for us. We recorded $48,000 and $411,000 for the pro rata portions of the projected aggregate full-year guaranties for the three months ended March 31, 2016 and 2015, respectively. We record these amounts as a reduction of Wyndham's contractual management and other fees. |
Taxes, Insurance and Lease Expense |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes, Insurance and Lease Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes, Insurance and Lease Expense | Taxes, Insurance and Lease Expense Taxes, insurance and lease expense from continuing operations were comprised of the following (in thousands):
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Hotel Dispositions |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hotel Dispositions | Hotel Dispositions During the three months ended March 31, 2015, we sold three hotels and had one hotel held for sale at March 31, 2015. We designate a hotel as held for sale when the sale is probable within the next twelve months. Generally, we consider a sale to be probable when a buyer completes its due diligence review, we have an executed contract for sale and we have received a substantial non-refundable deposit. We included operations for the sold hotels, and the hotel designated as held for sale, in income (loss) from continuing operations as shown in the statements of operations and comprehensive income (loss) for the three months ended March 31, 2015, as disposition of these hotels did not represent a strategic shift in our business. Additionally, included in the gain (loss) on the sale of hotels are selling costs, which are expensed as incurred. The following table includes condensed financial information primarily related to hotels sold in 2015 included in continuing operations (in thousands):
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Income (Loss) Per Share/Unit |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) Per Share/Unit | Loss Per Share/Unit The following tables set forth the computation of basic and diluted loss per share/unit (in thousands, except per share/unit data): FelCor Loss Per Share
FelCor LP Loss Per Unit
We include the net gain (loss) on sale of hotels attributable to FelCor/FelCor LP in income (loss) from continuing operations attributable to FelCor/FelCor LP share/unit calculations. We do not include the following securities because they would have been antidilutive for the periods presented (in thousands):
Series A preferred dividends (distributions) that would be excluded from net income (loss) attributable to FelCor common stockholders (or FelCor LP common unitholders), if these preferred shares/units were dilutive, were $6.3 million for the three months ended March 31, 2016 and 2015. We grant our executive officers restricted stock units each year, which provides them with the potential to earn shares of our common stock in three increments over three to four years. A portion of the actual number of shares that vest is determined based on total stockholder return relative to a group of ten lodging REIT peers and a portion is related to service. We amortize the fixed cost of these grants over the vesting period. We calculate the potential dilutive impact of these awards on our earnings per share using the treasury stock method. |
Fair Value of Financial Instruments |
3 Months Ended |
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Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Disclosures about fair value of our financial instruments are based on pertinent information available to management as of March 31, 2016 and December 31, 2015. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize on disposition of the financial instruments. Different market assumptions and/or estimation methodologies may have a material effect on estimated fair value amounts. Our estimates of the fair value of (i) cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses approximate carrying value due to the relatively short maturity of these instruments; (ii) our debt for which trading prices are publicly available is based on observable market data (a Level 2 input) and has an estimated fair value of $1.0 billion at March 31, 2016 and December 31, 2015; and (iii) our debt for which trading prices are not publicly available is based on a discounted cash flow model using effective borrowing rates for debt with similar terms, loan to estimated fair value of collateral and remaining maturities (a Level 3 input) and has an estimated fair value of $466.0 million and $438.8 million at March 31, 2016 and December 31, 2015, respectively. The estimated fair value of all our debt was $1.5 billion at March 31, 2016 and December 31, 2015. The carrying value of our debt was $1.4 billion at March 31, 2016 and December 31, 2015. |
Redeemable Noncontrolling Interests in FelCor LP/Redeemable Units |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units | Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units We record redeemable noncontrolling interests in FelCor LP, in the case of FelCor, and redeemable units, in the case of FelCor LP, in the mezzanine section (between liabilities and equity or partners’ capital) of our consolidated balance sheets because of the redemption feature of these units. Additionally, FelCor’s consolidated statements of operations and comprehensive income (loss) separately present earnings attributable to redeemable noncontrolling interests. We adjust redeemable noncontrolling interests in FelCor LP (or redeemable units) each period to reflect the greater of its carrying value based on the accumulation of historical cost or its redemption value. The historical cost is based on the proportionate relationship between the carrying value of equity associated with FelCor’s common stockholders relative to that of FelCor LP’s unitholders. Redemption value is based on the closing price of FelCor’s common stock at period end. FelCor allocates net income (loss) to FelCor LP’s noncontrolling partners based on their weighted average ownership percentage during the period. At March 31, 2016, we had 611,462 limited partnership units outstanding carried at $5.0 million. The value of these outstanding units is based on the closing price of FelCor’s common stock at March 31, 2016 ($8.12 per share).
Changes in redeemable noncontrolling interests (or redeemable units) for the three months ended March 31, 2016 and 2015 are shown below (in thousands):
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Consolidated Joint Venture Preferred Equity/Capital Consolidated Joint Venture Preferred Equity/Capital |
3 Months Ended |
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Mar. 31, 2016 | |
Equity [Abstract] | |
Consolidated Joint Venture Preferred Equity/Capital | Consolidated Joint Venture Preferred Equity/Capital Our joint venture that redeveloped The Knickerbocker raised $45 million through the sale of redeemable preferred equity under the EB-5 immigrant investor program. The purchasers receive a 3.25% current annual return (which increases to 8% if we do not redeem this equity interest before the fifth anniversary of its issuance), plus a 0.25% non-compounding annual return payable at redemption. To date, the venture has received $44.4 million in gross proceeds ($43.8 million net of issuance costs), including $600,000 and $1.3 million in gross proceeds received in the first three months of 2016 and 2015, respectively. The venture will receive the remaining $600,000 as investors’ visas are approved. |
Commercial Dispute (Notes) |
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Mar. 31, 2016 | |
Commercial Dispute [Abstract] | |
Contingencies Disclosure [Text Block] | One of our consolidated subsidiaries was engaged in a commercial dispute with a third party. Under generally accepted accounting principles, we recorded $5.9 million in other expenses during the third quarter of 2014 to establish a provision for our estimate of our maximum exposure for this contingency. We paid the disputed amount in January 2015 but continued asserting our contractual rights. In June 2015, we settled the commercial dispute and recovered $3.7 million (net of legal costs). |
Contingency (Notes) |
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Mar. 31, 2016 | |
Contingency [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | In April 2016, an affiliate of InterContinental Hotels Group PLC, or IHG, which had formerly operated three hotels on our behalf (two of which we sold in 2006 and one of which we converted to Wyndham operation and flag in 2013), notified us that the pension fund in which the employees at those hotels had participated is seeking an $8.3 million contribution from IHG in connection with the termination of its operation of those hotels. Under our hotel management agreements with IHG, we may be obligated to indemnify and hold IHG harmless for some or all of any amount ultimately contributed to the pension fund with respect to these hotels. Nevertheless, we believe that we are not responsible for a significant portion (and perhaps any) of the contribution sought by the pension fund and that any cost we incur with respect to this matter will be immaterial. Consequently, we will vigorously defend against the underlying claims and, where appropriate, IHG’s demand for indemnification. We are in the earliest stage of investigating the matter, which involves significant legal, actuarial and factual analysis with respect to each hotel, and have not determined whether any loss to us is probable or that any such loss is estimable. |
Recently Issue Accounting Standards Recently Issue Accounting Standards |
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Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. Additionally, this guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2017, and early adoption is permitted but not before the original effective date (for annual reporting periods beginning after December 15, 2016). We are evaluating what impact (if any) ASU 2014-09 will have on our financial position or results of operations. In February 2016, the FASB issued ASU 2016-02 - Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The ASU is expected to impact our consolidated financial statements as we have certain operating lease arrangements. ASC 842 supersedes the previous leases standard, ASC 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. We are in the process of evaluating the impact of this new guidance. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which is intended to improve the accounting for share-based payment transactions. Under the new standard, companies can withhold shares up to the maximum individual statutory tax rate in the applicable jurisdiction as participants vest in stock and maintain equity classification of the entire award. Also under the new standard, forfeitures for stock awards may be recorded when they occur (the prior guidance required estimating forfeitures when recording stock compensation costs). Finally, the standard requires classifying cash paid when remitting cash to the tax authorities for stock compensation withholding as financing activity in the statement of cash flows. We adopted this standard effective January 1, 2016. Upon adoption, we revised our policy to account for stock compensation forfeitures as they occur, which resulted in a $185,000 increase in our accumulated deficit for the cumulative effect of change in accounting principle. Also, we will be reclassifying in our statement of cash flows, from operating activities to financing activities, $2.1 million and $3.1 million for the years ended December 31, 2015 and 2014, respectively, for cash paid to taxing authorities for shares withheld. |
FelCor LP's Consolidating Financial Information |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FelCor Lodging LP [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FelCor LP's Consolidating Financial Information | FelCor LP’s Consolidating Financial Information Certain of FelCor LP’s 100% owned subsidiaries (FCH/PSH, L.P.; FelCor/CMB Buckhead Hotel, L.L.C.; FelCor/CMB Marlborough Hotel, L.L.C.; FelCor/CMB Orsouth Holdings, L.P.; FelCor/CMB SSF Holdings, L.P.; FelCor/CSS Holdings, L.P.; FelCor Dallas Love Field Owner, L.L.C.; FelCor Milpitas Owner, L.L.C.; FelCor TRS Borrower 4, L.L.C.; FelCor TRS Holdings, L.L.C.; FelCor Canada Co.; FelCor Hotel Asset Company, L.L.C.; FelCor St. Pete (SPE), L.L.C.; FelCor Esmeralda (SPE), L.L.C.; FelCor S-4 Hotels (SPE), L.L.C.; Madison 237 Hotel, L.L.C.; Myrtle Beach Owner, L.L.C.; and Royalton 44 Hotel, L.L.C., collectively, “Subsidiary Guarantors”), together with FelCor, guaranty, fully and unconditionally, except where subject to customary release provisions as described below, and jointly and severally, our senior debt. The guaranties by the Subsidiary Guarantors may be automatically and unconditionally released upon (i) the sale or other disposition of all of the capital stock of the Subsidiary Guarantor or the sale or disposition of all or substantially all of the assets of the Subsidiary Guarantor, if, in each case, as a result of such sale or disposition, such Subsidiary Guarantor ceases to be a subsidiary of FelCor LP, (ii) the consolidation or merger of any such Subsidiary Guarantor with any person other than FelCor LP, or a subsidiary of FelCor LP, if, as a result of such consolidation or merger, such Subsidiary Guarantor ceases to be a subsidiary of FelCor LP, (iii) a legal defeasance or covenant defeasance of the indenture, (iv) the unconditional and complete release of such Subsidiary Guarantor in accordance with the modification and waiver provisions of the indenture, or (v) the designation of a restricted subsidiary that is a Subsidiary Guarantor as an unrestricted subsidiary under and in compliance with the indenture.
The following tables present consolidating information for the Subsidiary Guarantors. FELCOR LODGING LIMITED PARTNERSHIP CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2016 (in thousands)
14. FelCor LP’s Consolidating Financial Information — (continued) FELCOR LODGING LIMITED PARTNERSHIP CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 (in thousands)
. FelCor LP’s Consolidating Financial Information — (continued) FELCOR LODGING LIMITED PARTNERSHIP CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS For the Three Months Ended March 31, 2016 (in thousands)
14. FelCor LP’s Consolidating Financial Information — (continued) FELCOR LODGING LIMITED PARTNERSHIP CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2015 (in thousands)
14. FelCor LP’s Consolidating Financial Information — (continued) FELCOR LODGING LIMITED PARTNERSHIP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2016 (in thousands)
14. FelCor LP’s Consolidating Financial Information — (continued) FELCOR LODGING LIMITED PARTNERSHIP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2015 (in thousands)
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Organization (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Distribution of Consolidated Hotels | The following table illustrates the distribution of our 40 Consolidated Hotels at March 31, 2016:
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Investment in Unconsolidated Entities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Unconsolidated Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Combined Balance Sheet Information of Unconsolidated Entities | The following table summarizes combined balance sheet information for our unconsolidated entities (in thousands):
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Schedule of Combined Statement of Operations Information of Unconsolidated Entities | The following table sets forth summarized combined statement of operations information for our unconsolidated entities (in thousands):
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Schedule of Components of Investment In Unconsolidated Entities | The following table summarizes the components of our investments in unconsolidated entities (in thousands):
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Schedule of Components of Equity In Income (Loss) from Unconsolidated Entities | The following table summarizes the components of our equity in income (loss) from unconsolidated entities (in thousands):
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Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Consolidated debt consisted of the following (dollars in thousands):
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Hotel Operating Revenue, Departmental Expenses and Other Property-Related Costs (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hotel Operating Revenue, Departmental Expenses and Other Property-Related Costs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Hotel Operating Revenue | Hotel operating revenue from continuing operations was comprised of the following (in thousands):
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Schedule of Hotel Departmental Expenses | Hotel departmental expenses from continuing operations were comprised of the following (in thousands):
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Schedule of Other Property-Related Costs | Other property-related costs from continuing operations were comprised of the following amounts (in thousands):
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Taxes, Insurance and Lease Expense (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes, Insurance and Lease Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Taxes, Insurance and Lease Expense | Taxes, insurance and lease expense from continuing operations were comprised of the following (in thousands):
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Hotel Dispositions (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups | The following table includes condensed financial information primarily related to hotels sold in 2015 included in continuing operations (in thousands):
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Income (Loss) Per Share/Unit (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share/Unit [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Income (Loss) Per Share/Unit | The following tables set forth the computation of basic and diluted loss per share/unit (in thousands, except per share/unit data): FelCor Loss Per Share
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Schedule Securities Excluded from Computation of Earnings Per Share | We do not include the following securities because they would have been antidilutive for the periods presented (in thousands):
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FelCor Lodging LP [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share/Unit [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Income (Loss) Per Share/Unit | FelCor LP Loss Per Unit
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Redeemable Noncontrolling Interests in FelCor LP/Redeemable Units (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Redeemable Noncontrolling Interests | Changes in redeemable noncontrolling interests (or redeemable units) for the three months ended March 31, 2016 and 2015 are shown below (in thousands):
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Investment in Unconsolidated Entities (Schedule of Combined Balance Sheet Information of Unconsolidated Entities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Investment in Unconsolidated Entities [Abstract] | ||
Investment in hotels and other properties, net of accumulated depreciation | $ 22,773 | $ 23,047 |
Total assets | 28,484 | 29,033 |
Debt, net of unamortized debt issuance costs | 22,439 | 22,563 |
Total liabilities | 24,606 | 24,541 |
Equity | 3,878 | 4,492 |
Long-term Debt | $ 1,440,792 | $ 1,409,889 |
Investment in Unconsolidated Entities (Schedule of Combined Statement of Operations Information of Unconsolidated Entities) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Real Estate Properties [Line Items] | ||
Total revenues | $ 5,503 | $ 6,569 |
Net income (loss) | (114) | 551 |
Net income (loss) attributable to FelCor | (57) | 276 |
Depreciation of cost in excess of book value | (97) | (127) |
Equity in income (loss) from unconsolidated entities | $ (154) | $ 149 |
Investment in Unconsolidated Entities (Schedule of Components of Investment In Unconsolidated Entities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
Investment in unconsolidated entities | $ 9,171 | $ 9,575 |
Equity basis of hotel joint venture investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | (3,995) | (4,216) |
Cost of hotel investments in excess of joint venture book value | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 7,232 | 7,329 |
Equity basis of land and condominium joint venture investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 5,934 | $ 6,462 |
Investment in Unconsolidated Entities (Schedule of Components of Equity In Income (Loss) from Unconsolidated Entities) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Schedule of Equity Method Investments [Line Items] | ||
Equity in income (loss) from unconsolidated entities | $ (154) | $ 149 |
Hotel investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity in income (loss) from unconsolidated entities | 375 | 748 |
Other investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity in income (loss) from unconsolidated entities | $ (529) | $ (599) |
Hotel Operating Revenue, Departmental Expenses and Other Property-Related Costs (Schedule of Hotel Operating Revenue) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Hotel Operating Revenue, Departmental Expenses and Other Property-Related Costs [Abstract] | ||
Room revenue | $ 159,076 | $ 162,306 |
Food and beverage revenue | 39,532 | 39,844 |
Other operating departments | 10,849 | 11,135 |
Total hotel operating revenue | $ 209,457 | $ 213,285 |
Hotel Operating Revenue, Departmental Expenses and Other Property-Related Costs (Schedule of Hotel Departmental Expenses) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Hotel Operating Revenue, Departmental Expenses and Other Property-Related Costs [Abstract] | ||
Room | $ 42,699 | $ 42,511 |
Room as a percent of total hotel operating revenue | 20.40% | 19.90% |
Food and beverage | $ 30,956 | $ 30,696 |
Food and beverage as a percent of total hotel operating revenue | 14.80% | 14.40% |
Other operating departments | $ 3,783 | $ 4,449 |
Other operating departments as a percent of total hotel operating revenue | 1.80% | 2.10% |
Hotel departmental expenses | $ 77,438 | $ 77,656 |
Hotel departmental expenses as a percent of total hotel operating revenue | 37.00% | 36.40% |
Hotel Operating Revenue, Departmental Expenses and Other Property-Related Costs Wyndham Narrative (Details) - USD ($) |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Hotel Operating Revenue, Departmental Expenses, and Other Property-Related Costs [Line Items] | ||
Management Company NOI Guaranty, Amount Recorded | $ 48,000 | $ 411,000 |
Taxes, Insurance and Lease Expense (Schedule of Taxes, Insurance and Lease Expense) (Details) - USD ($) |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Taxes, Insurance and Lease Expense [Line Items] | ||
Real estate and other taxes | $ 7,575,000 | $ 7,691,000 |
Property insurance, general liability insurance and other | 1,943,000 | 1,953,000 |
Total taxes, insurance and lease expense | 13,582,000 | 14,807,000 |
Hotel Lease [Member] | ||
Taxes, Insurance and Lease Expense [Line Items] | ||
Lease expense | 802,000 | 2,104,000 |
Percentage rent | 936,000 | |
Land Lease [Member] | ||
Taxes, Insurance and Lease Expense [Line Items] | ||
Lease expense | 3,262,000 | 3,059,000 |
Percentage rent | $ 1,600,000 | $ 1,500,000 |
One Hotel [Member] | Forty-Nine Percent Owned by Non-Controlling Interest [Member] | Unconsolidated Properties (Lessor) and Consolidated Operations (Lessee) [Member] | ||
Taxes, Insurance and Lease Expense [Line Items] | ||
Ownership percentage of lessee | 49.00% | |
Equity method ownership percentage of lessor | 50.00% |
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ 1,440,792 | $ 1,409,889 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | 1,500,000 | 1,500,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | 1,000,000 | 1,000,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 466,000 | $ 438,800 |
Redeemable Noncontrolling Interests in FelCor LP/Redeemable Units (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Noncontrolling Interest [Line Items] | ||||
Units of noncontrolling interests in FelCor LP outstanding (in shares) | 611,000 | 611,000 | ||
Redeemable units | $ 4,965 | $ 4,464 | $ 7,026 | $ 6,616 |
FelCor Lodging LP [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Units of noncontrolling interests in FelCor LP outstanding (in shares) | 611,462 | |||
Redeemable units | $ 4,965 | $ 4,464 | ||
Closing Price of FelCor's Common Stock [Member] | FelCor Lodging LP [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Redeemable units | $ 5,000 | |||
Closing price of common stock | $ 8.12 |
Redeemable Noncontrolling Interests in FelCor LP/Redeemable Units (Schedule of Changes in Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Balance at beginning of period | $ 4,464 | $ 6,616 |
Redemption value allocation | 585 | 447 |
Distributions paid to unitholders | (36) | (23) |
Net loss attributable to redeemable noncontrolling interests in FelCor LP | (48) | (14) |
Balance at end of period | 4,965 | 7,026 |
Preferred dividends | (6,279) | (9,678) |
FelCor Lodging LP [Member] | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Balance at beginning of period | 4,464 | |
Balance at end of period | 4,965 | |
Preferred dividends | (6,279) | $ (9,678) |
Closing Price of FelCor's Common Stock [Member] | FelCor Lodging LP [Member] | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Balance at end of period | $ 5,000 |
Consolidated Joint Venture Preferred Equity/Capital (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Schedule of Equity Method Investments [Line Items] | |||
Preferred capital in consolidated joint venture | $ 43,784,000 | $ 43,186,000 | |
The Knickerbocker® | |||
Schedule of Equity Method Investments [Line Items] | |||
Total Proceeds from Sale of Preferred Equity Under the EB5 Immigrant Investor Program | $ 45,000,000 | ||
Current Annual Return | 3.25% | ||
Non-compounding Annual Return | 0.25% | ||
Total gross proceeds received to date from sale of preferred equity under the Immigrant Investor Program | $ 44,400,000 | ||
Current Return Increase | 8.00% | ||
Gross Proceeds received from sale of preferred equity under the Immigrant Investor Program | $ 600,000 | $ 1,300,000 | |
Gross Proceeds Net of Issuance Costs from Sale of Preferred Equity Under the Immigrant Investor Program | 43,800,000 | ||
Proceeds not yet received from Immigrant Investor Program | $ 600,000 |
Commercial Dispute (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended |
---|---|---|
Jun. 30, 2015 |
Sep. 30, 2014 |
|
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual, Payments | $ 5.9 | |
Loss Contingency, Receivable, Additions | $ 3.7 |
Contingency (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Loss Contingencies [Line Items] | |
Loss Contingency, Damages Sought, Value | $ 8.3 |
Recently Issue Accounting Standards Recently Issued Accounting Standards (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accounting Changes [Abstract] | ||||
Cumulative effect of change in accounting for stock compensation forfeitures | $ 185,000 | |||
Payments Related to Tax Withholding for Share-based Compensation | $ 592,000 | $ 8,000 | $ 2,100,000 | $ 3,100,000 |
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