FelCor LP's Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheet

The following tables present the consolidating financial information for the Subsidiary Guarantors:

FelCor Lodging Limited Partnership

Condensed Consolidating Balance Sheet

March 31, 2018 (Successor)

(in thousands)

	FelCor LP		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Equity investment in consolidated entities	$	2,216,746	$	—	$	—	$	(2,216,746	)	$	—
Investment in hotel properties, net	—		727,113		1,637,227		—			2,364,340
Intangible assets, net	—		48,199		69,040		—			117,239
Investment in unconsolidated joint ventures	16,778		—		—		—			16,778
Cash and cash equivalents	9,214		—		3,811		—			13,025
Restricted cash reserves	436		—		4,281		—			4,717
Related party rent receivable	—		14,915		31,839		—			46,754
Prepaid expense and other assets	2,384		1,746		5,019		—			9,149
Total assets	$	2,245,558	$	791,973	$	1,751,217	$	(2,216,746	)	$	2,572,002
Debt, net	$	508,866	$	—	$	268,097	$	(32,709	)	$	744,254
Accounts payable and other liabilities	10,903		14,572		16,861		—			42,336
Related party lease termination fee payable	—		1,536		7,707		—			9,243
Accrued interest	9,588		—		—		—			9,588
Distributions payable	—		—		126		—			126
Total liabilities	529,357		16,108		292,791		(32,709		)	805,547
Partnership interests	1,716,201		775,865		1,408,172		(2,184,037		)	1,716,201
Total FelCor LP partners' capital	1,716,201		775,865		1,408,172		(2,184,037		)	1,716,201
Noncontrolling interests	—		—		5,824		—			5,824
Preferred capital in a consolidated joint venture	—		—		44,430		—			44,430
Total partners’ capital	1,716,201		775,865		1,458,426		(2,184,037		)	1,766,455
Total liabilities and partners’ capital	$	2,245,558	$	791,973	$	1,751,217	$	(2,216,746	)	$	2,572,002

FelCor Lodging Limited Partnership

Condensed Consolidating Balance Sheet

December 31, 2017 (Successor)

(in thousands)

	FelCor LP		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Investment in hotel properties, net	$	—	$	856,541	$	1,641,339	$	—		$	2,497,880
Intangible assets, net	—		48,846		69,324		—			118,170
Equity investment in consolidated entities	2,384,094		—		—		(2,384,094		)	—
Investment in unconsolidated joint ventures	16,912		—		—		—			16,912
Cash and cash equivalents	9,202		—		5,526		—			14,728
Restricted cash reserves	436		—		2,867		—			3,303
Related party rent receivable	—		32,200		47,890		—			80,090
Prepaid expense and other assets	4,405		3,292		4,994		—			12,691
Total assets	$	2,415,049	$	940,879	$	1,771,940	$	(2,384,094	)	$	2,743,774
Debt, net	$	1,062,716	$	—	$	269,098	$	(32,709	)	$	1,299,105
Accounts payable and other liabilities	20,018		13,605		20,568		—			54,191
Related party lease termination fee payable	—		—		7,707		—			7,707
Accrued interest	12,286		—		—		—			12,286
Distributions payable	—		—		126		—			126
Total liabilities	1,095,020		13,605		297,499		(32,709		)	1,373,415
Partnership interests	1,320,029		927,274		1,424,111		(2,351,385		)	1,320,029
Total FelCor LP partners’ capital	1,320,029		927,274		1,424,111		(2,351,385		)	1,320,029
Noncontrolling interests	—		—		5,900		—			5,900
Preferred capital in a consolidated joint venture	—		—		44,430		—			44,430
Total partners’ capital	1,320,029		927,274		1,474,441		(2,351,385		)	1,370,359
Total liabilities and partners’ capital	$	2,415,049	$	940,879	$	1,771,940	$	(2,384,094	)	$	2,743,774

Condensed Consolidating Statement of Operations and Comprehensive Loss

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Operations and Comprehensive Income

For the Three Months Ended March 31, 2018 (Successor)

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenue
Related party lease revenue	$	—		$	18,853		$	34,697		$	—		$	53,550
Total revenue	—			18,853			34,697			—			53,550
Expense
Depreciation and amortization	114			8,752			11,846			—			20,712
Property tax, insurance and other	42			7,485			7,304			—			14,831
General and administrative	481			40			87			—			608
Transaction costs	1,509			8			11			—			1,528
Total operating expense	2,146			16,285			19,248			—			37,679
Operating income	(2,146		)	2,568			15,449			—			15,871
Other income	8			—			—			—			8
Interest income	108			—			—			(78		)	30
Interest expense	(10,587		)	—			(2,638		)	78			(13,147		)
Gain on extinguishment of indebtedness	12,929			—			—			—			12,929
Income before equity in income from unconsolidated joint ventures	312			2,568			12,811			—			15,691
Equity in income from consolidated entities	5,723			—			—			(5,723		)	—
Equity in income from unconsolidated joint ventures	116			—			—			—			116
Income from operations	6,151			2,568			12,811			(5,723		)	15,807
Loss on sale of hotel properties	—			(9,399		)	33			—			(9,366		)
Net income and comprehensive income	6,151			(6,831		)	12,844			(5,723		)	6,441
Loss attributable to noncontrolling interests	—			—			76			—			76
Preferred distributions - consolidated joint venture	—			—			(366		)	—			(366		)
Net income and comprehensive income attributable to FelCor LP	$	6,151		$	(6,831	)	$	12,554		$	(5,723	)	$	6,151

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

For the Three Months Ended March 31, 2017 (Predecessor)

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenue
Room revenue	$	—		$	144,933		$	—		$	—		$	144,933
Food and beverage revenue	—			32,074			—			—			32,074
Percentage lease revenue	—			—			38,044			(38,044		)	—
Other revenue	4			11,032			61			—			11,097
Total revenue	4			188,039			38,105			(38,044		)	188,104
Expense
Room expense	—			40,678			—			—			40,678
Food and beverage expense	—			26,222			—			—			26,222
Management and franchise fee expense	—			7,550			—			—			7,550
Other operating expense	—			54,388			—			—			54,388
Total property operating expense	—			128,838			—			—			128,838
Depreciation and amortization	115			10,858			16,865			—			27,838
Impairment loss	—			24,838			—			—			24,838
Property tax, insurance and other	40			46,693			6,000			(38,044		)	14,689
General and administrative	—			3,630			3,310			—			6,940
Transaction costs	473			—			—			—			473
Total operating expense	628			214,857			26,175			(38,044		)	203,616
Operating loss	(624		)	(26,818		)	11,930			—			(15,512		)
Intercompany interest income (expense)	95			—			(95		)	—			—
Interest income	18			15			—			—			33
Interest expense	(14,566		)	—			(4,753		)	—			(19,319		)
Loss before equity in loss from unconsolidated joint ventures	(15,077		)	(26,803		)	7,082			—			(34,798		)
Equity in loss from consolidated entities	(21,435		)	—			—			21,435			—
Equity in loss from unconsolidated joint ventures	441			(560		)	(11		)	—			(130		)
Loss before income tax expense	(36,071		)	(27,363		)	7,071			21,435			(34,928		)
Income tax expense	(26		)	(521		)	—			—			(547		)
Loss from operations	(36,097		)	(27,884		)	7,071			21,435			(35,475		)
Loss on sale of hotel properties	—			(526		)	(140		)	—			(666		)
Net loss and comprehensive loss	(36,097		)	(28,410		)	6,931			21,435			(36,141		)
Loss attributable to noncontrolling interests in consolidated joint ventures	—			266			138			—			404
Preferred distributions - consolidated joint venture	—			—			(360		)	—			(360		)
Net loss and comprehensive loss attributable to FelCor LP	(36,097		)	(28,144		)	6,709			21,435			(36,097		)
Preferred distributions	(6,279		)	—			—			—			(6,279		)
Net loss attributable to FelCor LP common unitholders	$	(42,376	)	$	(28,144	)	$	6,709		$	21,435		$	(42,376	)

Condensed Consolidating Statement of Cash Flows

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2018 (Successor)

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating activities:
Cash flows from operating activities	$	(24,317	)	$	31,603		$	42,012		$	—		$	49,298
Investing activities:
Improvements and additions to hotel properties	—			(5,416		)	(12,725		)	—			(18,141		)
Additions to property and equipment	(3		)	—			—			—			(3		)
Proceeds from the sale of hotel properties, net	—			116,591			33			—			116,624
Intercompany financing	171,272			—			—			(171,272		)	—
Cash flows from investing activities	171,269			111,175			(12,692		)	(171,272		)	98,480
Financing activities:
Repayments of borrowings	(538,760		)	—			(752		)	—			(539,512		)
Contributions from partners	598,033			—			—			—			598,033
Distributions to partners	(206,212		)	—			—			—			(206,212		)
Preferred distributions - consolidated joint venture	—			—			(366		)	—			(366		)
Payments of deferred financing costs	—			—			(10		)	—			(10		)
Intercompany financing	—			(142,778		)	(28,494		)	171,272			—
Cash flows from financing activities	(146,939		)	(142,778		)	(29,622		)	171,272			(148,067		)
Net change in cash, cash equivalents, and restricted cash reserves	13			—			(302		)	—			(289		)
Cash, cash equivalents, and restricted cash reserves, beginning of period	9,637			—			8,394			—			18,031
Cash, cash equivalents, and restricted cash reserves, end of period	$	9,650		$	—		$	8,092		$	—		$	17,742

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2017 (Predecessor)

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating activities:
Cash flows from operating activities	$	(16,563	)	$	17,875		$	24,652		$	—		$	25,964
Investing activities:
Improvements and additions to hotel properties	2			(5,719		)	(13,745		)	—			(19,462		)
Net payments related to asset sales	(306		)	(406		)	(100		)	—			(812		)
Distributions from unconsolidated joint ventures in excess of earnings	490			—			—			—			490
Intercompany financing	37,025			—			—			(37,025		)	—
Cash flows from investing activities	37,211			(6,125		)	(13,845		)	(37,025		)	(19,784		)
Financing activities:
Proceeds from borrowings	—			—			29,000			—			29,000
Repayments of borrowings	—			—			(13,717		)	—			(13,717		)
Contributions from noncontrolling interests	—			100			—			—			100
Distributions to preferred unitholders	(6,279		)	—			—			—			(6,279		)
Distributions to common unitholders	(8,326		)	—			—			—			(8,326		)
Intercompany financing	—			(12,403		)	(24,622		)	37,025			—
Other	(852		)	—			(360		)	—			(1,212		)
Cash flows from financing activities	(15,457		)	(12,303		)	(9,699		)	37,025			(434		)
Net change in cash, cash equivalents, and restricted cash reserves	5,191			(553		)	1,108			—			5,746
Cash, cash equivalents, and restricted cash reserves, beginning of period	13,532			45,574			7,702			—			66,808
Cash, cash equivalents, and restricted cash reserves, end of period	$	18,723		$	45,021		$	8,810		$	—		$	72,554