Maryland | 001-34572 | 27-0372343 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
4300 Wilson Boulevard, Suite 625 Arlington, VA | 22203 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Exhibit Description | |
99.1 | Press release dated April 25, 2017 |
Date: | April 25, 2017 | CHESAPEAKE LODGING TRUST | |||||
By: | /s/ Graham J. Wootten | ||||||
Graham J. Wootten | |||||||
Senior Vice President and Chief Accounting Officer |
Exhibit 99.1 | ||
![]() | PRESS RELEASE For Immediate Release Contact: Douglas W. Vicari (571) 349-9452 | |
• | RevPAR: 3.6% decrease for the 22-hotel portfolio and 2.5% decrease for the 15-hotel portfolio over the same period in 2016. |
• | Adjusted Hotel EBITDA Margin: 180 basis point decrease to 26.7% for the 22-hotel portfolio and 130 basis point decrease to 28.4% for the 15-hotel portfolio over the same period in 2016. |
• | Adjusted Hotel EBITDA: $36.0 million. |
• | Adjusted Corporate EBITDA: $31.1 million. |
• | Net income available to common shareholders: $5.6 million or $0.09 per diluted common share. |
• | Adjusted FFO: $24.2 million or $0.41 per diluted common share. |
• | Financing: Repaid $125.0 million secured term loan. Subsequent to quarter end, closed on a five-year, $225.0 million unsecured term loan. |
![]() | PRESS RELEASE For Immediate Release Contact: Douglas W. Vicari (571) 349-9452 | |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Total revenue | $ | 134.9 | $ | 140.6 | ||||
Net income available to common shareholders | $ | 5.6 | $ | 7.6 | ||||
Net income per diluted common share | $ | 0.09 | $ | 0.13 | ||||
Adjusted Hotel EBITDA | $ | 36.0 | $ | 40.1 | ||||
Adjusted Corporate EBITDA | $ | 31.1 | $ | 34.8 | ||||
AFFO available to common shareholders | $ | 24.2 | $ | 26.0 | ||||
AFFO per diluted common share | $ | 0.41 | $ | 0.44 | ||||
Weighted-average number of diluted common shares outstanding | 58,995,589 | 59,247,219 |
Three Months Ended March 31, | ||||||||||
2017 | 2016 | Change | ||||||||
22-Hotel Portfolio | ||||||||||
Occupancy | 76.5 | % | 78.8 | % | (230) bps | |||||
ADR | $ | 214.69 | $ | 216.28 | (0.7)% | |||||
RevPAR | $ | 164.16 | $ | 170.35 | (3.6)% | |||||
Adjusted Hotel EBITDA | $ | 35,987 | $ | 40,051 | (10.1)% | |||||
Adjusted Hotel EBITDA Margin | 26.7 | % | 28.5 | % | (180) bps | |||||
15-Hotel Portfolio | ||||||||||
Occupancy | 78.4 | % | 78.3 | % | 10 bps | |||||
ADR | $ | 199.50 | $ | 204.76 | (2.6)% | |||||
RevPAR | $ | 156.38 | $ | 160.43 | (2.5)% | |||||
Adjusted Hotel EBITDA | $ | 21,322 | $ | 23,091 | (7.7)% | |||||
Adjusted Hotel EBITDA Margin | 28.4 | % | 29.7 | % | (130) bps |
![]() | PRESS RELEASE For Immediate Release Contact: Douglas W. Vicari (571) 349-9452 | |
![]() | PRESS RELEASE For Immediate Release Contact: Douglas W. Vicari (571) 349-9452 | |
Second Quarter 2017 Outlook | Full Year 2017 Outlook | ||||||||||||||
Low | High | Low | High | ||||||||||||
CONSOLIDATED: | |||||||||||||||
Net income available to common shareholders | $ | 16.1 | $ | 18.0 | $ | 42.9 | $ | 48.9 | |||||||
Net income per diluted common share | $ | 0.27 | $ | 0.30 | $ | 0.73 | $ | 0.83 | |||||||
Adjusted Corporate EBITDA | $ | 49.8 | $ | 51.8 | $ | 169.3 | $ | 176.3 | |||||||
AFFO available to common shareholders | $ | 35.7 | $ | 37.5 | $ | 124.2 | $ | 130.2 | |||||||
AFFO per diluted common share | $ | 0.60 | $ | 0.64 | $ | 2.10 | $ | 2.20 | |||||||
Corporate cash general and administrative expense | $ | 2.7 | $ | 2.9 | $ | 10.3 | $ | 11.3 | |||||||
Corporate non-cash general and administrative expense | $ | 1.9 | $ | 1.9 | $ | 7.5 | $ | 7.5 | |||||||
Weighted-average number of diluted common shares outstanding | 59.1 | 59.1 | 59.1 | 59.1 | |||||||||||
HOTEL PORTFOLIO: | |||||||||||||||
22-Hotel Portfolio | |||||||||||||||
RevPAR | $ | 196.00 | $ | 200.00 | $ | 183.00 | $ | 187.00 | |||||||
RevPAR change as compared to 2016 | (6.0 | )% | (4.0 | )% | (3.5 | )% | (1.5 | )% | |||||||
Adjusted Hotel EBITDA | $ | 54.3 | $ | 56.5 | $ | 187.0 | $ | 195.0 | |||||||
Adjusted Hotel EBITDA Margin | 34.2 | % | 34.9 | % | 31.2 | % | 31.9 | % | |||||||
Adjusted Hotel EBITDA Margin change as compared to 2016 | (275) bps | (200) bps | (170) bps | (100) bps | |||||||||||
15-Hotel Portfolio | |||||||||||||||
RevPAR | $ | 207.00 | $ | 211.00 | $ | 185.00 | $ | 189.00 | |||||||
RevPAR change as compared to 2016 | (2.0 | )% | 0.0% | (1.0 | )% | 1.0 | % | ||||||||
Adjusted Hotel EBITDA | $ | 37.4 | $ | 38.8 | $ | 121.4 | $ | 126.6 | |||||||
Adjusted Hotel EBITDA Margin | 38.4 | % | 39.2 | % | 34.3 | % | 35.0 | % | |||||||
Adjusted Hotel EBITDA Margin change as compared to 2016 | (200) bps | (125) bps | (115) bps | (40) bps |
![]() | PRESS RELEASE For Immediate Release Contact: Douglas W. Vicari (571) 349-9452 | |
![]() | PRESS RELEASE For Immediate Release Contact: Douglas W. Vicari (571) 349-9452 | |
![]() | PRESS RELEASE For Immediate Release Contact: Douglas W. Vicari (571) 349-9452 | |
March 31, 2017 | December 31, 2016 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Property and equipment, net | $ | 1,880,471 | $ | 1,882,869 | ||||
Intangible assets, net | 35,690 | 35,835 | ||||||
Cash and cash equivalents | 40,960 | 43,060 | ||||||
Restricted cash | 34,169 | 36,128 | ||||||
Accounts receivable, net | 19,759 | 19,966 | ||||||
Prepaid expenses and other assets | 21,932 | 17,516 | ||||||
Total assets | $ | 2,032,981 | $ | 2,035,374 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Long-term debt | $ | 754,519 | $ | 737,310 | ||||
Accounts payable and accrued expenses | 62,582 | 64,581 | ||||||
Other liabilities | 44,670 | 44,808 | ||||||
Total liabilities | 861,771 | 846,699 | ||||||
Commitments and contingencies | ||||||||
Preferred shares, $.01 par value; 100,000,000 shares authorized; Series A Cumulative Redeemable Preferred Shares; 5,000,000 shares issued and outstanding ($127,422 liquidation preference) | 50 | 50 | ||||||
Common shares, $.01 par value; 400,000,000 shares authorized; 60,096,316 shares and 59,671,964 shares issued and outstanding, respectively | 601 | 597 | ||||||
Additional paid-in capital | 1,305,298 | 1,304,364 | ||||||
Cumulative dividends in excess of net income | (134,739 | ) | (116,297 | ) | ||||
Accumulated other comprehensive loss | — | (39 | ) | |||||
Total shareholders’ equity | 1,171,210 | 1,188,675 | ||||||
Total liabilities and shareholders’ equity | $ | 2,032,981 | $ | 2,035,374 | ||||
SUPPLEMENTAL CREDIT INFORMATION: | ||||||||
Fixed charge coverage ratio(1) | 3.16 | 3.24 | ||||||
Leverage ratio(1) | 33.3 | % | 31.9 | % |
(1) | Calculated as defined under the Trust’s revolving credit facility. |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
REVENUE | ||||||||
Rooms | $ | 98,901 | $ | 103,772 | ||||
Food and beverage | 29,312 | 30,555 | ||||||
Other | 6,661 | 6,284 | ||||||
Total revenue | 134,874 | 140,611 | ||||||
EXPENSES | ||||||||
Hotel operating expenses: | ||||||||
Rooms | 25,322 | 25,501 | ||||||
Food and beverage | 22,239 | 22,766 | ||||||
Other direct | 1,356 | 1,558 | ||||||
Indirect | 49,815 | 50,580 | ||||||
Total hotel operating expenses | 98,732 | 100,405 | ||||||
Depreciation and amortization | 18,787 | 18,484 | ||||||
Air rights contract amortization | 130 | 130 | ||||||
Corporate general and administrative | 4,935 | 5,266 | ||||||
Total operating expenses | 122,584 | 124,285 | ||||||
Operating income | 12,290 | 16,326 | ||||||
Interest expense | (7,798 | ) | (8,210 | ) | ||||
Income before income taxes | 4,492 | 8,116 | ||||||
Income tax benefit | 3,527 | 1,954 | ||||||
Net income | 8,019 | 10,070 | ||||||
Preferred share dividends | (2,422 | ) | (2,422 | ) | ||||
Net income available to common shareholders | $ | 5,597 | $ | 7,648 | ||||
Net income per common share—basic and diluted | $ | 0.09 | $ | 0.13 | ||||
Weighted-average number of common shares outstanding: | ||||||||
Basic | 58,995,589 | 58,681,525 | ||||||
Diluted | 58,995,589 | 59,247,219 |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 8,019 | $ | 10,070 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 18,787 | 18,484 | ||||||
Air rights contract amortization | 130 | 130 | ||||||
Deferred financing costs amortization | 407 | 466 | ||||||
Share-based compensation | 1,990 | 2,374 | ||||||
Other | (155 | ) | (208 | ) | ||||
Changes in assets and liabilities: | ||||||||
Accounts receivable, net | 207 | (5,984 | ) | |||||
Prepaid expenses and other assets | (4,429 | ) | (2,575 | ) | ||||
Accounts payable and accrued expenses | (1,248 | ) | 2,323 | |||||
Other liabilities | (13 | ) | (11 | ) | ||||
Net cash provided by operating activities | 23,695 | 25,069 | ||||||
Cash flows from investing activities: | ||||||||
Improvements and additions to hotels | (16,389 | ) | (3,850 | ) | ||||
Change in restricted cash | 1,959 | (2,768 | ) | |||||
Net cash used in investing activities | (14,430 | ) | (6,618 | ) | ||||
Cash flows from financing activities: | ||||||||
Borrowings under revolving credit facility | 155,000 | 25,000 | ||||||
Repayments under revolving credit facility | (10,000 | ) | (15,000 | ) | ||||
Scheduled principal payments on mortgage debt | (128,162 | ) | (2,649 | ) | ||||
Payment of deferred financing costs | (36 | ) | — | |||||
Deposit on loan application | — | (3,200 | ) | |||||
Payment of dividends to common shareholders | (24,693 | ) | (23,575 | ) | ||||
Payment of dividends to preferred shareholders | (2,422 | ) | (2,422 | ) | ||||
Repurchase of common shares | (1,052 | ) | (194 | ) | ||||
Net cash used in financing activities | (11,365 | ) | (22,040 | ) | ||||
Net decrease in cash | (2,100 | ) | (3,589 | ) | ||||
Cash and cash equivalents, beginning of period | 43,060 | 50,544 | ||||||
Cash and cash equivalents, end of period | $ | 40,960 | $ | 46,955 |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Net income | $ | 8,019 | $ | 10,070 | ||||
Add: Interest expense | 7,798 | 8,210 | ||||||
Depreciation and amortization | 18,787 | 18,484 | ||||||
Air rights contract amortization | 130 | 130 | ||||||
Corporate general and administrative | 4,935 | 5,266 | ||||||
Less: Income tax benefit | (3,527 | ) | (1,954 | ) | ||||
Hotel EBITDA | 36,142 | 40,206 | ||||||
Less: Non-cash amortization(1) | (155 | ) | (155 | ) | ||||
Adjusted Hotel EBITDA | $ | 35,987 | $ | 40,051 | ||||
Total revenue | $ | 134,874 | $ | 140,611 | ||||
Adjusted Hotel EBITDA Margin | 26.7 | % | 28.5 | % |
(1) | Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, and unfavorable contract liability. |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Net income | $ | 8,019 | $ | 10,070 | ||||
Add: Interest expense | 7,798 | 8,210 | ||||||
Depreciation and amortization | 18,787 | 18,484 | ||||||
Less: Income tax benefit | (3,527 | ) | (1,954 | ) | ||||
Corporate EBITDA | 31,077 | 34,810 | ||||||
Less: Non-cash amortization(1) | (25 | ) | (25 | ) | ||||
Adjusted Corporate EBITDA | $ | 31,052 | $ | 34,785 |
(1) | Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, unfavorable contract liability, and air rights contract. |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Net income | $ | 8,019 | $ | 10,070 | ||||
Add: Depreciation and amortization | 18,787 | 18,484 | ||||||
FFO | 26,806 | 28,554 | ||||||
Less: Preferred share dividends | (2,422 | ) | (2,422 | ) | ||||
Dividends declared on unvested time-based awards | (124 | ) | (144 | ) | ||||
Undistributed earnings allocated to unvested time-based awards | — | — | ||||||
FFO available to common shareholders | 24,260 | 25,988 | ||||||
Less: Non-cash amortization(1) | (25 | ) | (25 | ) | ||||
AFFO available to common shareholders | $ | 24,235 | $ | 25,963 | ||||
FFO per common share—basic and diluted | $ | 0.41 | $ | 0.44 | ||||
AFFO per common share—basic and diluted | $ | 0.41 | $ | 0.44 |
(1) | Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, unfavorable contract liability, and air rights contract. |
Three Months Ending June 30, 2017 | Year Ending December 31, 2017 | ||||||||||||||
Low | High | Low | High | ||||||||||||
Net income | $ | 18,650 | $ | 20,500 | $ | 53,100 | $ | 59,100 | |||||||
Add: Interest expense | 8,190 | 8,190 | 32,900 | 32,900 | |||||||||||
Income tax expense | 3,350 | 3,550 | 2,000 | 3,000 | |||||||||||
Depreciation and amortization | 19,590 | 19,590 | 81,350 | 81,350 | |||||||||||
Air rights contract amortization | 130 | 130 | 520 | 520 | |||||||||||
Corporate general and administrative | 4,500 | 4,700 | 17,750 | 18,750 | |||||||||||
Hotel EBITDA | 54,410 | 56,660 | 187,620 | 195,620 | |||||||||||
Less: Non-cash amortization(1) | (160 | ) | (160 | ) | (620 | ) | (620 | ) | |||||||
Adjusted Hotel EBITDA | $ | 54,250 | $ | 56,500 | $ | 187,000 | $ | 195,000 | |||||||
Total revenue | $ | 158,650 | $ | 161,700 | $ | 600,000 | $ | 612,000 | |||||||
Adjusted Hotel EBITDA Margin | 34.2 | % | 34.9 | % | 31.2 | % | 31.9 | % |
(1) | Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, and unfavorable contract liability. |
Three Months Ending June 30, 2017 | Year Ending December 31, 2017 | ||||||||||||||
Low | High | Low | High | ||||||||||||
Net income | $ | 18,650 | $ | 20,500 | $ | 53,100 | $ | 59,100 | |||||||
Add: Interest expense | 8,190 | 8,190 | 32,900 | 32,900 | |||||||||||
Income tax expense | 3,350 | 3,550 | 2,000 | 3,000 | |||||||||||
Depreciation and amortization | 19,590 | 19,590 | 81,350 | 81,350 | |||||||||||
Corporate EBITDA | 49,780 | 51,830 | 169,350 | 176,350 | |||||||||||
Less: Non-cash amortization(1) | (30 | ) | (30 | ) | (100 | ) | (100 | ) | |||||||
Adjusted Corporate EBITDA | $ | 49,750 | $ | 51,800 | $ | 169,250 | $ | 176,250 |
(1) | Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, unfavorable contract liability, and air rights contract. |
Three Months Ending June 30, 2017 | Year Ending December 31, 2017 | ||||||||||||||
Low | High | Low | High | ||||||||||||
Net income | $ | 18,650 | $ | 20,500 | $ | 53,100 | $ | 59,100 | |||||||
Add: Depreciation and amortization | 19,590 | 19,590 | 81,350 | 81,350 | |||||||||||
FFO | 38,240 | 40,090 | 134,450 | 140,450 | |||||||||||
Less: Preferred share dividends | (2,420 | ) | (2,420 | ) | (9,690 | ) | (9,690 | ) | |||||||
Dividends declared on unvested time-based awards | (120 | ) | (120 | ) | (490 | ) | (490 | ) | |||||||
Undistributed earnings allocated to unvested time-based awards | — | — | — | — | |||||||||||
FFO available to common shareholders | 35,700 | 37,550 | 124,270 | 130,270 | |||||||||||
Less: Non-cash amortization(1) | (30 | ) | (30 | ) | (100 | ) | (100 | ) | |||||||
AFFO available to common shareholders | $ | 35,670 | $ | 37,520 | $ | 124,170 | $ | 130,170 | |||||||
FFO per common share: | |||||||||||||||
Basic | $ | 0.60 | $ | 0.64 | $ | 2.11 | $ | 2.21 | |||||||
Diluted | $ | 0.60 | $ | 0.64 | $ | 2.10 | $ | 2.20 | |||||||
AFFO per common share: | |||||||||||||||
Basic | $ | 0.60 | $ | 0.64 | $ | 2.10 | $ | 2.21 | |||||||
Diluted | $ | 0.60 | $ | 0.64 | $ | 2.10 | $ | 2.20 | |||||||
Weighted-average number of common shares outstanding: | |||||||||||||||
Basic | 59,033 | 59,033 | 59,024 | 59,024 | |||||||||||
Diluted | 59,082 | 59,082 | 59,093 | 59,093 |
(1) | Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, unfavorable contract liability, and air rights contract. |
Hotel | Location | Rooms | Acquisition Date | |||||
1 | Hyatt Regency Boston | Boston, MA | 502 | March 18, 2010 | ||||
2 | Hilton Checkers Los Angeles | Los Angeles, CA | 193 | June 1, 2010 | ||||
3 | Boston Marriott Newton | Newton, MA | 430 | July 30, 2010 | ||||
4 | Le Meridien San Francisco | San Francisco, CA | 360 | December 15, 2010 | ||||
5 | Homewood Suites Seattle Convention Center | Seattle, WA | 195 | May 2, 2011 | ||||
6 | W Chicago – City Center | Chicago, IL | 403 | May 10, 2011 | ||||
7 | Hotel Indigo San Diego Gaslamp Quarter | San Diego, CA | 210 | June 17, 2011 | ||||
8 | Courtyard Washington Capitol Hill/Navy Yard | Washington, DC | 204 | June 30, 2011 | ||||
9 | Hotel Adagio San Francisco, Autograph Collection | San Francisco, CA | 171 | July 8, 2011 | ||||
10 | Denver Marriott City Center | Denver, CO | 613 | October 3, 2011 | ||||
11 | Hyatt Herald Square New York | New York, NY | 122 | December 22, 2011 | ||||
12 | W Chicago – Lakeshore | Chicago, IL | 520 | August 21, 2012 | ||||
13 | Hyatt Regency Mission Bay Spa and Marina | San Diego, CA | 429 | September 7, 2012 | ||||
14 | The Hotel Minneapolis, Autograph Collection | Minneapolis, MN | 222 | October 30, 2012 | ||||
15 | Hyatt Place New York Midtown South | New York, NY | 185 | March 14, 2013 | ||||
16 | W New Orleans – French Quarter | New Orleans, LA | 97 | March 28, 2013 | ||||
17 | Le Meridien New Orleans | New Orleans, LA | 410 | April 25, 2013 | ||||
18 | Hyatt Centric Fisherman’s Wharf | San Francisco, CA | 316 | May 31, 2013 | ||||
19 | Hyatt Centric Santa Barbara | Santa Barbara, CA | 200 | June 27, 2013 | ||||
20 | JW Marriott San Francisco Union Square | San Francisco, CA | 337 | October 1, 2014 | ||||
21 | Royal Palm South Beach Miami, a Tribute Portfolio Resort | Miami Beach, FL | 393 | March 9, 2015 | ||||
22 | Ace Hotel and Theater Downtown Los Angeles | Los Angeles, CA | 182 | April 30, 2015 | ||||
6,694 |
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