UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): May 8, 2014
ASHFORD HOSPITALITY PRIME, INC.
(Exact name of registrant as specified in its charter)
Maryland |
|
001-35972 |
|
46-2488594 |
(State or other jurisdiction of |
|
(Commission |
|
(IRS employer |
incorporation or organization) |
|
File Number) |
|
identification number) |
14185 Dallas Parkway, Suite 1100 |
|
|
Dallas, Texas |
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75254 |
(Address of principal executive offices) |
|
(Zip code) |
Registrants telephone number, including area code (972) 490-9600
Check the appropriated box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14-a-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))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 8, 2014, Ashford Hospitality Prime, Inc. (the Company) issued a press release announcing its financial results for the first quarter ended March 31, 2014. A copy of the press release is attached hereto as Exhibit 99.1.
The information in this Form 8-K and Exhibits attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
Exhibits
99.1 First Quarter 2014 Earnings Press Release of the Company, dated May 8, 2014.
SIGNATURE
Pursuant to the requirements of Section 12 of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: May 8, 2014 |
| |
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| |
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ASHFORD HOSPITALITY PRIME, INC. | |
|
| |
|
By: |
/s/ David J. Kimichik |
|
David J. Kimichik | |
|
Chief Financial Officer |
Exhibit 99.1
|
NEWS RELEASE |
Contact: |
David Kimichik |
Deric Eubanks |
Elise Chittick |
Scott Eckstein |
|
Chief Financial Officer |
SVP Finance |
Investor Relations |
Financial Relations Board |
|
(972) 490-9600 |
(972) 490-9600 |
(972) 778-9487 |
(212) 827-3766 |
ASHFORD PRIME REPORTS FIRST QUARTER 2014 RESULTS
RevPAR Increase of 7.4% for All Hotels Not Under Renovation
DALLAS, May 8, 2014 Ashford Hospitality Prime, Inc. (NYSE: AHP) (Ashford Prime or the Company) today reported the following results and performance measures for the first quarter ended March 31, 2014. On November 19, 2013, the Company completed its spin-off from Ashford Hospitality Trust, Inc. (NYSE: AHT) (Ashford Trust), but the Company has presented its prior year financial statements in accordance with GAAP, which requires that historical carve-out financial statements be presented. Accordingly, the Companys results for the prior year period may not be representative of results in future periods. In particular, the general & administrative expenses that are shown in the prior year historical carve-out financial statements do not reflect the expected general & administrative costs of the Company, but rather reflect an allocation of the actual general & administrative costs of Ashford Trust. The Company has general & administrative costs that it incurs as well as reimbursable costs that Ashford Trust incurs on its behalf. The Company also pays a base management fee to Ashford Trust equal to 0.70% times its total enterprise value. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) are pro forma. Unless otherwise stated, all reported results compare the first quarter ended March 31, 2014, with the first quarter ended March 31, 2013 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.
FINANCIAL AND OPERATING HIGHLIGHTS
· RevPAR for all Ashford Prime hotels increased 5.5% during the first quarter
· RevPAR for all Ashford Prime hotels not under renovation increased 7.4% during the quarter
· Excluding hotels under renovation and The Capital Hilton, which benefited from the Presidential Inauguration during the previous year, RevPAR increased 12.2%
· Net loss attributable to common shareholders for the Company was $2.9 million, or $0.13 per diluted share, compared with net loss attributable to common shareholders of $4.6 million, or $0.29 per diluted share, in the prior-year quarter
· Adjusted funds from operations (AFFO) for the Company was $0.18 per diluted share for the quarter compared to $0.16 from the prior-year quarter
· On January 29, 2014, the Company completed its underwritten public offering of 8,000,000 shares of common stock at a price of $16.50 per share with the underwriters fully exercising their option to purchase an additional 1,200,000 shares for total gross proceeds of $151.8 million
· On February 24, 2014, Ashford Prime closed on the acquisition of the 415-room Sofitel Chicago Water Tower for a total consideration of $153 million in cash ($369,000 per key) and financed it with an $80 million mortgage
· The Company completed the acquisition of the 142-room Pier House Resort from Ashford Trust on March 1, 2014, for a total consideration of $92.7 million ($653,000 per key) and assumed the existing $69 million mortgage
· At the end of the first quarter 2014, the Company had total net working capital of $182 million
-MORE-
CAPITAL EXPENDITURES
· Capex invested in the quarter for the Ashford Prime Portfolio was $10.3 million
CAPITAL STRUCTURE
At March 31, 2014, the Company had total assets of $1.2 billion in continuing operations. As of March 31, 2014, the Company had $769 million of mortgage debt in continuing operations of which $49 million related to our joint venture partners share of debt on the Capital Hilton and Hilton La Jolla Torrey Pines. Ashford Primes total combined debt had a blended average interest rate of 5.0%, with a weighted average debt maturity of 3.6 years.
On January 29, 2014, the Company closed its previously announced underwritten public offering of 8,000,000 shares of common stock. On February 4, 2014, the Company announced the full exercise of the underwriters option to purchase 1,200,000 additional shares of Ashford Primes common stock. Including the shares of common stock sold in connection with the underwriters option, a total of 9,200,000 shares of common stock were sold at a public offering price of $16.50 per share. Total gross proceeds to the Company from the offering, before deducting the underwriting discount and other estimated offering costs, were $151.8 million.
Ashford Prime announced on February 24, 2014 that it had closed on the acquisition of the 415-room Sofitel Chicago Water Tower for a total consideration of $153 million in cash ($369,000 per key). Located in the desirable Gold Coast submarket of Chicago, Illinois, the 415-room, four-star hotel features over 10,000 square feet of meeting space. The property will continue to be managed by Sofitel (Accor SA). The Company financed the property with $80.0 million of non-recourse mortgage debt priced at LIBOR + 2.30% with a 5-year term, including extension options.
The Company completed the acquisition of the 142-room Pier House Resort from Ashford Trust on March 1, 2014 for a total consideration of $92.7 million ($653,000 per key). In connection with the transaction, the Company assumed the existing $69 million property level debt financing. The balance of the purchase price was funded with proceeds from the Companys January equity offering. The Pier House Resort is located at the northern end of Duval Street in the heart of Key West, which is presently the nations 2nd highest RevPAR market. Ashford Prime expects to incur minimal expenses related to capital improvements given a $12 million renovation recently completed at the property. The Pier House Resort will continue to be managed by Remington Lodging. Remington currently manages four hotels in Key West, including the Pier House Resort, the Southernmost House, the Inn at Key West and the Crowne Plaza La Concha Hotel, which is owned by Ashford Trust.
PORTFOLIO REVPAR
As of March 31, 2014, the Ashford Prime Portfolio consisted of direct hotel investments with ten properties classified in continuing operations. During the first quarter of 2014, eight of the Ashford Prime Portfolio hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for the Ashford Prime Portfolio hotels in continuing operations on a pro forma total basis (all 10 hotels) and pro forma not under renovation basis (8 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio. Details of each category are provided in the tables attached to this release.
· Pro forma RevPAR increased 5.5% to $147.69 for all hotels in the Ashford Prime Portfolio on a 4.4% increase in ADR and a 1.1% increase in occupancy
· Pro forma RevPAR increased 7.4% to $159.85 for hotels not under renovation in the Ashford Prime Portfolio on a 4.4% increase in ADR and a 2.8% increase in occupancy
HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
The Company believes year-over-year Hotel EBITDA and Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Companys hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Companys portfolio, to help investors better understand this seasonality, the Company provides quarterly detail on its Hotel EBITDA and Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Ashford Prime Portfolio as of the end of the current period. As the Companys portfolio mix changes from time to time so will the seasonality for Pro forma Hotel EBITDA and Pro forma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the 10 Ashford Prime Portfolio hotels included in continuing operations are provided in the table attached to this release.
COMMON STOCK DIVIDEND
On March 17, 2014, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.05 per diluted share for the Companys common stock for the first quarter ending March 31, 2014, payable on April 15, 2014, to shareholders of record as of March 31, 2014.
Our first quarter results demonstrate the strength of Ashford Primes portfolio assets and the rationale for the spin-off of Ashford Prime into a new, independent public entity. Additionally, we have made significant progress this quarter in building out the Ashford Prime portfolio while also strengthening our liquidity position, commented Monty J. Bennett, Ashford Primes Chairman and Chief Executive Officer. We completed an equity offering for total gross proceeds of $151.8 million, significantly increased the float of our stock, and acquired two high RevPAR hotels located in key U.S. gateway markets, the Sofitel Chicago Water Tower and the Pier House Resort in Key West. We will continue to execute on our investment strategy as long as we believe it is accretive to shareholder value and are open to exploring all options to maximize value for our shareholders.
INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Prime, Inc. will conduct a conference call on Friday, May 9, 2014, at 11:00 a.m. ET. The number to call for this interactive teleconference is (480) 629-9835. A replay of the conference call will be available through Friday, May 16, 2014, by dialing (303) 590-3030 and entering the confirmation number, 4678388.
The Company will also provide an online simulcast and rebroadcast of its first quarter 2014 earnings release conference call. The live broadcast of Ashford Hospitality Primes quarterly conference call will be available online at the Companys web site, www.ahpreit.com on Friday, May 9, 2014, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year.
Substantially all of our non-current assets consist of real estate investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate companys operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel Operating Profit. FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us. Neither FFO, AFFO, EBITDA, nor Hotel Operating Profit represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO,
EBITDA, and Hotel Operating Profit to be meaningful measures of a REITs performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.
* * * * *
Ashford Hospitality Prime is a real estate investment trust (REIT) focused on investing in high RevPAR full-service and urban select-service hotels and resorts located predominantly in domestic and international gateway markets.
Follow Chairman and CEO Monty Bennett on Twitter at www.twitter.com/MBennettAshford or @MBennettAshford.
Ashford has created an Ashford App for the hospitality REIT investor community. The Ashford App is available for free download at Apples App Store by searching Ashford.
Certain statements and assumptions in this press release contain or are based upon forward-looking information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. When we use the words will likely result, may, anticipate, estimate, should, expect, believe, intend, or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Primes control.
These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in Ashford Primes filings with the Securities and Exchange Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A capitalization rate is determined by dividing the propertys annual net operating income by the purchase price. Net operating income is the propertys funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues. Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues. Hotel EBITDA Margin is Hotel EBITDA divided by total revenues. Funds from operations (FFO), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (NAREIT) in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles (GAAP), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.
The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
COMBINED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
|
|
March 31, |
|
December 31, |
| ||
|
|
2014 |
|
2013 |
| ||
|
|
(unaudited) |
| ||||
ASSETS |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
176,418 |
|
$ |
143,776 |
|
Investment in hotel properties, net |
|
1,012,137 |
|
765,326 |
| ||
Restricted cash |
|
5,572 |
|
5,951 |
| ||
Accounts receivable, net of allowance of $36 and $34, respectively |
|
11,080 |
|
7,029 |
| ||
Inventories |
|
641 |
|
318 |
| ||
Note receivable |
|
8,098 |
|
8,098 |
| ||
Deferred costs, net |
|
5,084 |
|
4,064 |
| ||
Prepaid expenses |
|
4,064 |
|
2,233 |
| ||
Derivative assets, net |
|
98 |
|
|
| ||
Other assets |
|
1,954 |
|
4,501 |
| ||
Intangible asset, net |
|
2,609 |
|
2,631 |
| ||
Due from related party, net |
|
709 |
|
12 |
| ||
Due from third-party hotel managers |
|
20,635 |
|
18,480 |
| ||
|
|
|
|
|
| ||
Total assets |
|
$ |
1,249,099 |
|
$ |
962,419 |
|
|
|
|
|
|
| ||
LIABILITIES AND EQUITY |
|
|
|
|
| ||
Liabilities: |
|
|
|
|
| ||
Indebtedness |
|
$ |
769,054 |
|
$ |
621,882 |
|
Capital lease payable |
|
20 |
|
|
| ||
Accounts payable and accrued expenses |
|
29,833 |
|
17,279 |
| ||
Dividends payable |
|
1,705 |
|
1,245 |
| ||
Unfavorable management contract liabilities |
|
435 |
|
474 |
| ||
Intangible liability, net |
|
3,781 |
|
3,795 |
| ||
Due to Ashford Trust, net |
|
1,580 |
|
13,042 |
| ||
Due to third-party hotel managers |
|
769 |
|
649 |
| ||
Other liabilities |
|
928 |
|
926 |
| ||
|
|
|
|
|
| ||
Total liabilities |
|
808,105 |
|
659,292 |
| ||
|
|
|
|
|
| ||
Redeemable noncontrolling interests in operating partnership |
|
132,695 |
|
159,726 |
| ||
|
|
|
|
|
| ||
Equity: |
|
|
|
|
| ||
Common stock, $0.01 par value, 200,000,000 shares authorized, 25,329,112 and 16,129,112 shares issued and outstanding at March 31, 2014 and December 31, 2013 |
|
253 |
|
161 |
| ||
Additional paid-in capital |
|
390,859 |
|
246,928 |
| ||
Accumulated deficit |
|
(79,782 |
) |
(101,062 |
) | ||
Total stockholders equity of the Company |
|
311,330 |
|
146,027 |
| ||
Noncontrolling interest in consolidated entity |
|
(3,031 |
) |
(2,626 |
) | ||
|
|
|
|
|
| ||
Total equity |
|
308,299 |
|
143,401 |
| ||
|
|
|
|
|
| ||
Total liabilities and equity |
|
$ |
1,249,099 |
|
$ |
962,419 |
|
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
|
|
Three Months Ended |
| ||||
|
|
March 31, |
| ||||
|
|
2014 |
|
2013 |
| ||
|
|
(unaudited) |
| ||||
REVENUE |
|
|
|
|
| ||
Rooms |
|
$ |
43,971 |
|
$ |
38,618 |
|
Food and beverage |
|
15,181 |
|
13,094 |
| ||
Other |
|
2,636 |
|
2,374 |
| ||
|
|
|
|
|
| ||
Total hotel revenue |
|
61,788 |
|
54,086 |
| ||
Other |
|
18 |
|
|
| ||
|
|
|
|
|
| ||
Total Revenue |
|
61,806 |
|
54,086 |
| ||
|
|
|
|
|
| ||
EXPENSES |
|
|
|
|
| ||
Hotel operating expenses |
|
|
|
|
| ||
Rooms |
|
10,954 |
|
9,506 |
| ||
Food and beverage |
|
9,684 |
|
8,737 |
| ||
Other expenses |
|
16,624 |
|
14,255 |
| ||
Management fees |
|
2,518 |
|
2,255 |
| ||
|
|
|
|
|
| ||
Total hotel operating expenses |
|
39,780 |
|
34,753 |
| ||
|
|
|
|
|
| ||
Property taxes, insurance and other |
|
3,667 |
|
2,927 |
| ||
Depreciation and amortization |
|
8,773 |
|
7,450 |
| ||
Advisory services fee |
|
2,194 |
|
|
| ||
Transaction costs |
|
1,593 |
|
|
| ||
Corporate, general and administrative: |
|
|
|
|
| ||
Stock/unit-based compensation |
|
|
|
2,157 |
| ||
Other general and administrative |
|
1,024 |
|
1,622 |
| ||
|
|
|
|
|
| ||
Total operating expenses |
|
57,031 |
|
48,909 |
| ||
|
|
|
|
|
| ||
OPERATING INCOME |
|
4,775 |
|
5,177 |
| ||
|
|
|
|
|
| ||
Interest income |
|
4 |
|
10 |
| ||
Interest expense |
|
(8,618 |
) |
(7,644 |
) | ||
Amortization of loan costs |
|
(371 |
) |
(248 |
) | ||
Write-off of loan costs and exit fees |
|
|
|
(1,971 |
) | ||
Unrealized loss on derivatives |
|
(15 |
) |
(31 |
) | ||
|
|
|
|
|
| ||
LOSS BEFORE INCOME TAXES |
|
(4,225 |
) |
(4,707 |
) | ||
Income tax expense |
|
(226 |
) |
(619 |
) | ||
|
|
|
|
|
| ||
NET LOSS |
|
(4,451 |
) |
(5,326 |
) | ||
Loss from consolidated entities attributable to noncontrolling interests |
|
405 |
|
704 |
| ||
Net loss attributable to redeemable noncontrolling interests in operating partnership |
|
1,168 |
|
|
| ||
|
|
|
|
|
| ||
NET LOSS ATTRIBUTABLE TO THE COMPANY |
|
(2,878 |
) |
(4,622 |
) | ||
|
|
|
|
|
| ||
LOSS PER SHARE BASIC AND DILUTED |
|
|
|
|
| ||
Basic: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Net loss attributable to common shareholders |
|
$ |
(0.13 |
) |
$ |
(0.29 |
) |
Weighted average common shares outstanding basic |
|
22,308 |
|
16,045 |
| ||
|
|
|
|
|
| ||
Diluted: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Net loss attributable to common shareholders |
|
$ |
(0.13 |
) |
$ |
(0.29 |
) |
Weighted average common shares outstanding diluted |
|
22,308 |
|
16,045 |
| ||
|
|
|
|
|
| ||
Dividends declared per common share: |
|
$ |
0.05 |
|
$ |
|
|
ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO EBITDA
(in thousands)
(unaudited)
|
|
Three Months Ended |
| ||||
|
|
March 31, |
| ||||
|
|
2014 |
|
2013 |
| ||
|
|
|
|
|
| ||
Net loss |
|
$ |
(4,451 |
) |
$ |
(5,326 |
) |
Loss from consolidated entities attributable to noncontrolling interests |
|
405 |
|
704 |
| ||
Net loss attributable to redeemable noncontrolling interests in operating partnership |
|
1,168 |
|
|
| ||
Net loss attributable to the Company |
|
(2,878 |
) |
(4,622 |
) | ||
|
|
|
|
|
| ||
Interest income |
|
(3 |
) |
(10 |
) | ||
Interest expense and amortization of loan costs |
|
8,519 |
|
7,503 |
| ||
Depreciation and amortization |
|
7,973 |
|
6,670 |
| ||
Income tax expense |
|
226 |
|
619 |
| ||
Net loss attributable to redeemable noncontrolling interests in operating partnership |
|
(1,168 |
) |
|
| ||
|
|
|
|
|
| ||
EBITDA |
|
12,669 |
|
10,160 |
| ||
|
|
|
|
|
| ||
Amortization of unfavorable management contract liabilities |
|
(39 |
) |
(40 |
) | ||
Write-off of loan costs and exit fees |
|
|
|
1,971 |
| ||
Transaction costs |
|
1,593 |
|
|
| ||
Unrealized loss on derivatives |
|
15 |
|
31 |
| ||
Equity-based compensation |
|
|
|
|
| ||
|
|
|
|
|
| ||
Adjusted EBITDA |
|
$ |
14,238 |
|
$ |
12,122 |
|
RECONCILIATION OF NET LOSS TO FUNDS FROM OPERATIONS (FFO)
(in thousands, except per share amounts)
(unaudited)
|
|
Three Months Ended |
| ||||
|
|
March 31, |
| ||||
|
|
2014 |
|
2013 |
| ||
|
|
|
|
|
| ||
Net loss |
|
$ |
(4,451 |
) |
$ |
(5,326 |
) |
Loss from consolidated entities attributable to noncontrolling interests |
|
405 |
|
704 |
| ||
Net loss attributable to redeemable noncontrolling interests in operating partnership |
|
1,168 |
|
|
| ||
|
|
|
|
|
| ||
Net loss attributable to common shareholders |
|
(2,878 |
) |
(4,622 |
) | ||
|
|
|
|
|
| ||
Depreciation and amortization on real estate |
|
7,973 |
|
6,670 |
| ||
Net loss attributable to redeemable noncontrolling interests in operating partnership |
|
(1,168 |
) |
|
| ||
|
|
|
|
|
| ||
FFO available to common shareholders |
|
3,927 |
|
2,048 |
| ||
|
|
|
|
|
| ||
Unrealized loss on derivatives |
|
15 |
|
31 |
| ||
Transaction costs |
|
1,593 |
|
|
| ||
Write-off of loan costs and exit fees |
|
|
|
1,971 |
| ||
|
|
|
|
|
| ||
Adjusted FFO available to common shareholders |
|
$ |
5,535 |
|
$ |
4,050 |
|
|
|
|
|
|
| ||
Adjusted FFO per diluted share available to common shareholders |
|
$ |
0.18 |
|
$ |
0.16 |
|
|
|
|
|
|
| ||
Weighted average diluted shares |
|
31,145 |
|
24,905 |
|
ASHFORD HOSPITALITY PRIME, INC.
SUMMARY OF INDEBTEDNESS OF CONTINUING OPERATIONS
MARCH 31, 2014
(dollars in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Proforma |
|
Proforma |
| ||||
|
|
|
|
|
|
Fixed-Rate |
|
Floating-Rate |
|
Total |
|
TTM Hotel |
|
TTM EBITDA |
| ||||
Indebtedness |
|
Maturity |
|
Interest Rate |
|
Debt |
|
Debt |
|
Debt |
|
EBITDA |
|
Debt Yield |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
JPM Pier House - 1 hotel |
|
September 2015 |
|
LIBOR + 4.90% |
|
$ |
|
|
$ |
69,000 |
(2) |
$ |
69,000 |
|
8,212 |
|
11.9 |
% | |
GACC Sofitel - 1 hotel |
|
March 2016 |
|
LIBOR + 2.30% |
|
|
|
80,000 |
(3) |
80,000 |
|
10,279 |
|
12.8 |
% | ||||
Senior credit facility - Various |
|
November 2016 |
|
LIBOR + 2.25% to 3.75% |
|
|
|
|
(1) |
|
|
N/A |
|
N/A |
| ||||
Wachovia Philly CY - 1 hotel |
|
April 2017 |
|
5.91% |
|
34,193 |
|
|
|
34,193 |
|
9,890 |
|
28.9 |
% | ||||
Wachovia 3 - 2 hotels |
|
April 2017 |
|
5.95% |
|
125,322 |
|
|
|
125,322 |
|
17,867 |
|
14.3 |
% | ||||
Wachovia 7 - 3 hotels |
|
April 2017 |
|
5.95% |
|
255,020 |
|
|
|
255,020 |
|
26,023 |
|
10.2 |
% | ||||
Aareal - 2 hotels |
|
February 2018 |
|
LIBOR + 3.50% |
|
|
|
197,421 |
|
197,421 |
|
24,743 |
|
12.5 |
% | ||||
TIF Philly CY - 1 hotel |
|
June 2018 |
|
12.85% |
|
8,098 |
|
|
|
8,098 |
|
N/A |
|
N/A |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total |
|
|
|
|
|
$ |
422,633 |
|
$ |
346,421 |
|
$ |
769,054 |
|
$ |
97,014 |
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Percentage |
|
|
|
|
|
55.0 |
% |
45.0 |
% |
100.0 |
% |
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted average interest rate |
|
|
|
|
|
6.08 |
% |
3.65 |
% |
4.99 |
% |
|
|
|
| ||||
All indebtedness is non-recourse
(1) This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2016.
(2) This mortgage loan has three one-year extension options beginning September 2015, subject to satisfaction of certain conditions.
(3) This mortgage loan has three one-year extension options beginning March 2016, subject to satisfaction of certain conditions.
ASHFORD HOSPITALITY PRIME, INC.
INDEBTEDNESS BY MATURITY
MARCH 31, 2014
(in thousands)
(unaudited)
|
|
2014 |
|
2015 |
|
2016 |
|
2017 |
|
2018 |
|
Thereafter |
|
Total |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Senior credit facility - Various |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Wachovia Philly CY - 1 hotel |
|
|
|
|
|
|
|
32,532 |
|
|
|
|
|
32,532 |
| |||||||
Wachovia 3 - 2 hotels |
|
|
|
|
|
|
|
119,245 |
|
|
|
|
|
119,245 |
| |||||||
Wachovia 7 - 3 hotels |
|
|
|
|
|
|
|
242,201 |
|
|
|
|
|
242,201 |
| |||||||
Aareal - 2 hotels |
|
|
|
|
|
|
|
|
|
186,259 |
|
|
|
186,259 |
| |||||||
TIF Philly CY - 1 hotel |
|
|
|
|
|
|
|
|
|
8,098 |
|
|
|
8,098 |
| |||||||
JPM Pier House - 1 hotel |
|
|
|
|
|
|
|
|
|
69,000 |
|
|
|
69,000 |
| |||||||
GACC Sofitel - 1 hotel |
|
|
|
|
|
|
|
|
|
|
|
80,000 |
|
80,000 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Principal due in future periods |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
393,978 |
|
$ |
263,357 |
|
$ |
80,000 |
|
$ |
737,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Scheduled amortization payments remaining |
|
5,948 |
|
8,478 |
|
8,933 |
|
7,830 |
|
530 |
|
|
|
31,719 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total indebtedness of continuing operations |
|
$ |
5,948 |
|
$ |
8,478 |
|
$ |
8,933 |
|
$ |
401,808 |
|
$ |
263,887 |
|
$ |
80,000 |
|
$ |
769,054 |
|
ASHFORD HOSPITALITY PRIME, INC.
KEY PERFORMANCE INDICATORS - PRO FORMA
(dollars in thousands)
(unaudited)
|
|
Three Months Ended |
| ||||||
|
|
March 31, |
| ||||||
|
|
2014 |
|
2013 |
|
% Variance |
| ||
|
|
|
|
|
|
|
| ||
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS: |
|
|
|
|
|
|
| ||
Room revenues (in thousands) |
|
$ |
49,222 |
|
$ |
47,594 |
|
3.42 |
% |
RevPAR |
|
$ |
147.69 |
|
$ |
140.03 |
|
5.47 |
% |
Occupancy |
|
74.24 |
% |
73.46 |
% |
1.06 |
% | ||
ADR |
|
$ |
198.92 |
|
$ |
190.62 |
|
4.35 |
% |
NOTES:
(1) The above pro forma table assumes the ten hotel properties owned and included in continuing operations at March 31, 2014 were owned as of the beginning of each of the periods presented.
(2) On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma tables reflects an extra 3 days in Marriott-managed properties for Q1 2013.
|
|
Three Months Ended |
| ||||||
|
|
March 31, |
| ||||||
|
|
2014 |
|
2013 |
|
% Variance |
| ||
|
|
|
|
|
|
|
| ||
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS: |
|
|
|
|
|
|
| ||
Room revenues (in thousands) |
|
$ |
40,298 |
|
$ |
38,121 |
|
5.71 |
% |
RevPAR |
|
$ |
159.85 |
|
$ |
148.91 |
|
7.35 |
% |
Occupancy |
|
76.57 |
% |
74.48 |
% |
2.80 |
% | ||
ADR |
|
$ |
208.78 |
|
$ |
199.92 |
|
4.43 |
% |
NOTES:
(1) The above pro forma table assumes the eight hotel properties included in continuing operations at March 31, 2014, but not under renovation for the three months ended March 31, 2014, were owned as of the beginning of each of the periods presented.
(2) Excluded Hotels Under Renovation:
Marriott Seattle Waterfront, Courtyard Philadelphia Downtown
(3) On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma tables reflects an extra 3 days in Marriott-managed properties for Q1 2013.
ASHFORD HOSPITALITY PRIME, INC.
PRO FORMA HOTEL OPERATING PROFIT MARGIN
(unaudited)
THE FOLLOWING PROFOMA EBITDA MARGIN TABLE REFLECTS THE TEN HOTELS INLCUDED IN THE COMPANYS CONTINUING OPERATIONS AS IF THESE HOTELS WERE OWNED AT THE BEGNNING OF THE FIRST COMPARATIVE REPORTING PERIOD.
|
|
10 Prime |
|
|
|
Properties |
|
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN: |
|
|
|
|
|
|
|
1st Quarter 2014 |
|
29.22 |
% |
1st Quarter 2013 |
|
29.21 |
% |
Variance |
|
0.01 |
% |
|
|
|
|
HOTEL OPERATING PROFIT (HOTEL EBITDA) MARGIN VARIANCE BREAKDOWN: |
|
|
|
|
|
|
|
Rooms |
|
-0.20 |
% |
Food & Beverage and Other Departmental |
|
0.98 |
% |
Administrative & General |
|
0.64 |
% |
Sales & Marketing |
|
0.03 |
% |
Hospitality |
|
0.00 |
% |
Repair & Maintenance |
|
-0.25 |
% |
Energy |
|
-0.30 |
% |
Franchise Fee |
|
0.00 |
% |
Management Fee |
|
0.17 |
% |
Incentive Management Fee |
|
-0.22 |
% |
Insurance |
|
0.10 |
% |
Property Taxes |
|
-0.86 |
% |
Other Taxes |
|
0.15 |
% |
Leases/Other |
|
-0.23 |
% |
Total |
|
0.01 |
% |
NOTE:
On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma tables reflects an extra 3 days in Marriott-managed properties for Q1 2013.
ASHFORD HOSPITALITY PRIME, INC.
Selected Pro Forma Financial and Operating Information by Property
(in thousands, except operating information)
(unaudited)
The following tables present selected financial and operating information by property for the ten properties included in Ashford Hospitality Prime, Inc.
|
|
Three Months Ended |
| ||||||
|
|
March 31, |
| ||||||
|
|
2014 |
|
2013 |
|
% Variance |
| ||
|
|
|
|
|
|
|
| ||
CAPITAL HILTON WASHINGTON DC |
|
|
|
|
|
|
| ||
Selected Financial Information: |
|
|
|
|
|
|
| ||
Room Revenue |
|
$ |
8,043 |
|
$ |
8,827 |
|
-8.88 |
% |
Total Revenue |
|
$ |
11,644 |
|
$ |
12,599 |
|
-7.58 |
% |
EBITDA |
|
$ |
2,717 |
|
$ |
3,710 |
|
-26.77 |
% |
EBITDA Margin |
|
23.33 |
% |
29.45 |
% |
-6.11 |
% | ||
Selected Operating Information: |
|
|
|
|
|
|
| ||
RevPAR |
|
$ |
164.28 |
|
$ |
180.29 |
|
-8.88 |
% |
Occupancy |
|
73.14 |
% |
76.50 |
% |
-4.39 |
% | ||
ADR |
|
$ |
224.61 |
|
$ |
235.67 |
|
-4.69 |
% |
LA JOLLA HILTON TORREY PINES |
|
|
|
|
|
|
| ||
Selected Financial Information: |
|
|
|
|
|
|
| ||
Room Revenue |
|
$ |
5,279 |
|
$ |
4,067 |
|
29.80 |
% |
Total Revenue |
|
$ |
9,174 |
|
$ |
7,016 |
|
30.76 |
% |
EBITDA |
|
$ |
2,857 |
|
$ |
1,716 |
|
66.49 |
% |
EBITDA Margin |
|
31.14 |
% |
24.46 |
% |
6.68 |
% | ||
Selected Operating Information: |
|
|
|
|
|
|
| ||
RevPAR |
|
$ |
148.87 |
|
$ |
114.70 |
|
29.79 |
% |
Occupancy |
|
80.96 |
% |
65.62 |
% |
23.38 |
% | ||
ADR |
|
$ |
183.88 |
|
$ |
174.80 |
|
5.19 |
% |
CHICAGO SOFITEL WATER TOWER |
|
|
|
|
|
|
| ||
Selected Financial Information: |
|
|
|
|
|
|
| ||
Room Revenue |
|
$ |
3,703 |
|
$ |
4,273 |
|
-13.34 |
% |
Total Revenue |
|
$ |
5,908 |
|
$ |
6,792 |
|
-13.02 |
% |
EBITDA |
|
$ |
(71 |
) |
$ |
497 |
|
-114.29 |
% |
EBITDA Margin |
|
-1.20 |
% |
7.32 |
% |
-8.52 |
% | ||
Selected Operating Information: |
|
|
|
|
|
|
| ||
RevPAR |
|
$ |
99.13 |
|
$ |
114.39 |
|
-13.34 |
% |
Occupancy |
|
65.68 |
% |
70.15 |
% |
-6.36 |
% | ||
ADR |
|
$ |
150.93 |
|
$ |
163.08 |
|
-7.45 |
% |
KEY WEST PIER HOUSE RESORT |
|
|
|
|
|
|
| ||
Selected Financial Information: |
|
|
|
|
|
|
| ||
Room Revenue |
|
$ |
5,412 |
|
$ |
4,704 |
|
15.05 |
% |
Total Revenue |
|
$ |
6,735 |
|
$ |
5,952 |
|
13.16 |
% |
EBITDA |
|
$ |
3,123 |
|
$ |
2,478 |
|
26.03 |
% |
EBITDA Margin |
|
46.37 |
% |
41.63 |
% |
4.74 |
% | ||
Selected Operating Information: |
|
|
|
|
|
|
| ||
RevPAR |
|
$ |
423.51 |
|
$ |
368.04 |
|
15.07 |
% |
Occupancy |
|
92.41 |
% |
84.66 |
% |
9.16 |
% | ||
ADR |
|
$ |
458.30 |
|
$ |
434.75 |
|
5.42 |
% |
PHILADELPHIA COURTYARD DOWNTOWN |
|
|
|
|
|
|
| ||
Selected Financial Information: |
|
|
|
|
|
|
| ||
Room Revenue |
|
$ |
4,386 |
|
$ |
5,039 |
|
-12.96 |
% |
Total Revenue |
|
$ |
5,520 |
|
$ |
6,028 |
|
-8.43 |
% |
EBITDA |
|
$ |
1,452 |
|
$ |
1,932 |
|
-24.84 |
% |
EBITDA Margin |
|
26.30 |
% |
32.05 |
% |
-5.75 |
% | ||
Selected Operating Information: |
|
|
|
|
|
|
| ||
RevPAR |
|
$ |
97.83 |
|
$ |
108.81 |
|
-10.09 |
% |
Occupancy |
|
65.65 |
% |
71.30 |
% |
-7.92 |
% | ||
ADR |
|
$ |
149.02 |
|
$ |
152.60 |
|
-2.35 |
% |
PLANO MARRIOTT LEGACY TOWN CENTER |
|
|
|
|
|
|
| ||
Selected Financial Information: |
|
|
|
|
|
|
| ||
Room Revenue |
|
$ |
4,538 |
|
$ |
4,434 |
|
2.35 |
% |
Total Revenue |
|
$ |
7,229 |
|
$ |
7,154 |
|
1.05 |
% |
EBITDA |
|
$ |
2,502 |
|
$ |
2,481 |
|
0.85 |
% |
EBITDA Margin |
|
34.61 |
% |
34.68 |
% |
-0.07 |
% | ||
Selected Operating Information: |
|
|
|
|
|
|
| ||
RevPAR |
|
$ |
124.80 |
|
$ |
118.01 |
|
5.75 |
% |
Occupancy |
|
68.74 |
% |
69.12 |
% |
-0.55 |
% | ||
ADR |
|
$ |
181.55 |
|
$ |
170.72 |
|
6.35 |
% |
SAN FRANCISCO COURTYARD DOWNTOWN |
|
|
|
|
|
|
| ||
Selected Financial Information: |
|
|
|
|
|
|
| ||
Room Revenue |
|
$ |
7,078 |
|
$ |
6,398 |
|
10.63 |
% |
Total Revenue |
|
$ |
8,197 |
|
$ |
7,522 |
|
8.97 |
% |
EBITDA |
|
$ |
2,469 |
|
$ |
2,278 |
|
8.38 |
% |
EBITDA Margin |
|
30.12 |
% |
30.28 |
% |
-0.16 |
% | ||
Selected Operating Information: |
|
|
|
|
|
|
| ||
RevPAR |
|
$ |
194.19 |
|
$ |
169.85 |
|
14.33 |
% |
Occupancy |
|
80.94 |
% |
84.18 |
% |
-3.84 |
% | ||
ADR |
|
$ |
239.91 |
|
$ |
201.78 |
|
18.90 |
% |
|
|
Three Months Ended |
| ||||||
|
|
March 31, |
| ||||||
|
|
2014 |
|
2013 |
|
% Variance |
| ||
|
|
|
|
|
|
|
| ||
SEATTLE COURTYARD DOWNTOWN |
|
|
|
|
|
|
| ||
Selected Financial Information: |
|
|
|
|
|
|
| ||
Room Revenue |
|
$ |
2,315 |
|
$ |
1,892 |
|
22.36 |
% |
Total Revenue |
|
$ |
2,823 |
|
$ |
2,282 |
|
23.71 |
% |
EBITDA |
|
$ |
1,127 |
|
$ |
800 |
|
40.88 |
% |
EBITDA Margin |
|
39.92 |
% |
35.06 |
% |
4.87 |
% | ||
Selected Operating Information: |
|
|
|
|
|
|
| ||
RevPAR |
|
$ |
102.90 |
|
$ |
81.37 |
|
26.46 |
% |
Occupancy |
|
77.04 |
% |
65.59 |
% |
17.46 |
% | ||
ADR |
|
$ |
133.56 |
|
$ |
124.05 |
|
7.67 |
% |
SEATTLE MARRIOTT WATERFRONT |
|
|
|
|
|
|
| ||
Selected Financial Information: |
|
|
|
|
|
|
| ||
Room Revenue |
|
$ |
4,269 |
|
$ |
3,937 |
|
8.43 |
% |
Total Revenue |
|
$ |
5,798 |
|
$ |
5,635 |
|
2.89 |
% |
EBITDA |
|
$ |
1,852 |
|
$ |
1,644 |
|
12.65 |
% |
EBITDA Margin |
|
31.94 |
% |
29.17 |
% |
2.77 |
% | ||
Selected Operating Information: |
|
|
|
|
|
|
| ||
RevPAR |
|
$ |
132.50 |
|
$ |
118.24 |
|
12.06 |
% |
Occupancy |
|
71.39 |
% |
69.84 |
% |
2.22 |
% | ||
ADR |
|
$ |
185.59 |
|
$ |
169.30 |
|
9.62 |
% |
TAMPA RENAISSANCE |
|
|
|
|
|
|
| ||
Selected Financial Information: |
|
|
|
|
|
|
| ||
Room Revenue |
|
$ |
4,198 |
|
$ |
4,025 |
|
4.30 |
% |
Total Revenue |
|
$ |
6,150 |
|
$ |
5,851 |
|
5.11 |
% |
EBITDA |
|
$ |
2,188 |
|
$ |
1,986 |
|
10.17 |
% |
EBITDA Margin |
|
35.58 |
% |
33.94 |
% |
1.63 |
% | ||
Selected Operating Information: |
|
|
|
|
|
|
| ||
RevPAR |
|
$ |
159.18 |
|
$ |
147.70 |
|
7.77 |
% |
Occupancy |
|
84.62 |
% |
83.43 |
% |
1.42 |
% | ||
ADR |
|
$ |
188.12 |
|
$ |
177.03 |
|
6.27 |
% |
PRIME PROPERTIES TOTAL (10) |
|
|
|
|
|
|
| ||
Selected Financial Information: |
|
|
|
|
|
|
| ||
Room Revenue |
|
$ |
49,222 |
|
$ |
47,594 |
|
3.42 |
% |
Total Revenue |
|
$ |
69,179 |
|
$ |
66,830 |
|
3.51 |
% |
EBITDA |
|
$ |
20,217 |
|
$ |
19,523 |
|
3.55 |
% |
EBITDA Margin |
|
29.22 |
% |
29.21 |
% |
0.01 |
% | ||
Selected Operating Information: |
|
|
|
|
|
|
| ||
RevPAR |
|
$ |
147.69 |
|
$ |
140.03 |
|
5.47 |
% |
Occupancy |
|
74.24 |
% |
73.46 |
% |
1.06 |
% | ||
ADR |
|
$ |
198.92 |
|
$ |
190.62 |
|
4.35 |
% |
NOTES:
(1) The above pro forma table assumes the ten hotel properties included in continuing operations at March 31, 2014 were owned as of the beginning of each of the periods presented.
ASHFORD HOSPITALITY PRIME, INC.
PRO FORMA HOTEL OPERATING PROFIT
(dollars in thousands)
(unaudited)
ALL HOTELS INCLUDED IN CONTINUING OPERATIONS:
|
|
Three Months Ended |
| ||||||
|
|
March 31, |
| ||||||
|
|
2014 |
|
2013 |
|
% Variance |
| ||
REVENUE |
|
|
|
|
|
|
| ||
Rooms |
|
$ |
49,222 |
|
$ |
47,594 |
|
3.4 |
% |
Food and beverage |
|
16,770 |
|
16,084 |
|
4.3 |
% | ||
Other |
|
3,187 |
|
3,152 |
|
1.1 |
% | ||
Total hotel revenue |
|
69,179 |
|
66,830 |
|
3.5 |
% | ||
|
|
|
|
|
|
|
| ||
EXPENSES |
|
|
|
|
|
|
| ||
Rooms |
|
12,217 |
|
11,671 |
|
4.7 |
% | ||
Food and beverage |
|
11,076 |
|
11,155 |
|
-0.7 |
% | ||
Other direct |
|
1,396 |
|
1,549 |
|
-9.9 |
% | ||
Indirect |
|
16,773 |
|
16,143 |
|
3.9 |
% | ||
Management fees, includes base and incentive fees |
|
3,167 |
|
3,022 |
|
4.8 |
% | ||
Total hotel operating expenses |
|
44,629 |
|
43,540 |
|
2.5 |
% | ||
Property taxes, insurance, and other |
|
4,333 |
|
3,767 |
|
15.0 |
% | ||
HOTEL OPERATING PROFIT (Hotel EBITDA) |
|
20,217 |
|
19,523 |
|
3.6 |
% | ||
Hotel EBITDA Margin |
|
29.22 |
% |
29.21 |
% |
0.01 |
% | ||
|
|
|
|
|
|
|
| ||
Minority interest in earnings of consolidated joint ventures |
|
1,394 |
|
1,357 |
|
2.7 |
% | ||
HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures |
|
$ |
18,823 |
|
$ |
18,166 |
|
3.6 |
% |
NOTES:
(1) The above pro forma table assumes the ten hotel properties owned and included in continuing operations at March 31, 2014 were owned as of each of the beginning of the periods presented.
(2) On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma tables reflects an extra 3 days in Marriott-managed properties for Q1 2013.
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING OPERATIONS:
|
|
Three Months Ended |
| ||||||
|
|
March 31, |
| ||||||
|
|
2014 |
|
2013 |
|
% Variance |
| ||
REVENUE |
|
|
|
|
|
|
| ||
Rooms |
|
$ |
40,298 |
|
$ |
38,121 |
|
5.7 |
% |
Food and beverage |
|
13,387 |
|
12,831 |
|
4.3 |
% | ||
Other |
|
2,745 |
|
2,696 |
|
1.8 |
% | ||
Total hotel revenue |
|
56,430 |
|
53,648 |
|
5.2 |
% | ||
|
|
|
|
|
|
|
| ||
EXPENSES |
|
|
|
|
|
|
| ||
Rooms |
|
10,110 |
|
9,550 |
|
5.9 |
% | ||
Food and beverage |
|
9,284 |
|
9,337 |
|
-0.6 |
% | ||
Other direct |
|
1,254 |
|
1,397 |
|
-10.2 |
% | ||
Indirect |
|
13,353 |
|
12,827 |
|
4.1 |
% | ||
Management fees, includes base and incentive fees |
|
2,278 |
|
2,111 |
|
7.9 |
% | ||
Total hotel operating expenses |
|
36,279 |
|
35,222 |
|
3.0 |
% | ||
Property taxes, insurance, and other |
|
3,888 |
|
3,316 |
|
17.2 |
% | ||
HOTEL OPERATING PROFIT (Hotel EBITDA) |
|
16,263 |
|
15,110 |
|
7.6 |
% | ||
Hotel EBITDA Margin |
|
28.82 |
% |
28.17 |
% |
0.65 |
% | ||
|
|
|
|
|
|
|
| ||
Minority interest in earnings of consolidated joint ventures |
|
1,394 |
|
1,357 |
|
2.7 |
% | ||
HOTEL OPERATING PROFIT (Hotel EBITDA), excluding minority interest in joint ventures |
|
$ |
14,869 |
|
$ |
13,753 |
|
8.1 |
% |
NOTES:
(1) The above pro forma table assumes the eight hotel properties owned and included in continuing operations at March 31, 2014 but not under renovation for three months ended March 31, 2014, were owned as of the beginning of each of the periods presented.
(2) Excluded Hotels Under Renovation:
Marriott Seattle Waterfront, Courtyard Philadelphia Downtown
(3) On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma tables reflects an extra 3 days in Marriott-managed properties for Q1 2013.
ASHFORD HOSPITALITY PRIME, INC.
PRO FORMA HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS
(dollars in thousands)
(unaudited)
THE FOLLOWING PRO FORMA SEASONALITY TABLE REFLECTS THE EIGHT HOTELS INCLUDED IN THE COMPANYS CONTINUING OPERATIONS AS IF THESE HOTELS WERE OWNED AT THE BEGINNING OF THE FIRST COMPARATIVE REPORTING PERIOD.
|
|
2014 |
|
2013 |
|
2013 |
|
2013 |
|
|
| |||||
|
|
1st Quarter |
|
4th Quarter |
|
3rd Quarter |
|
2nd Quarter |
|
TTM |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Prime Portfolio |
|
|
|
|
|
|
|
|
|
|
| |||||
Total Hotel Revenue |
|
$ |
69,179 |
|
$ |
69,980 |
|
$ |
76,350 |
|
$ |
81,090 |
|
$ |
296,599 |
|
Hotel EBITDA |
|
$ |
20,217 |
|
$ |
20,501 |
|
$ |
25,742 |
|
$ |
30,554 |
|
$ |
97,014 |
|
Hotel EBITDA Margin |
|
29.22 |
% |
29.30 |
% |
33.72 |
% |
37.68 |
% |
32.71 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
EBITDA % of Total TTM |
|
20.8 |
% |
21.1 |
% |
26.5 |
% |
31.5 |
% |
100.0 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
JV Interests in EBITDA |
|
$ |
1,394 |
|
$ |
1,387 |
|
$ |
1,349 |
|
$ |
2,056 |
|
$ |
6,186 |
|
NOTE:
On January 1, 2013, Marriott converted from a fiscal year with 12 weeks of operations in each of the first three quarters of the year and 16 weeks in the fourth quarter of the year, to calendar quarters. The above proforma tables reflects an extra 3 days in Marriott-managed properties for Q1 2013.
ASHFORD HOSPITALITY PRIME, INC.
TOTAL ENTERPRISE VALUE
MARCH 31, 2014
(in thousands except share price)
(unaudited)
|
|
March 31, |
| |
|
|
2014 |
| |
End of quarter common shares outstanding |
|
25,329 |
| |
Partnership units outstanding (common share equivalents) |
|
8,776 |
| |
Combined common shares and partnership units outstanding |
|
34,105 |
| |
Common stock price at quarter end |
|
$ |
15.12 |
|
Market capitalization at quarter end |
|
$ |
515,669 |
|
Debt on balance sheet date |
|
$ |
769,054 |
|
Joint venture partners share of consolidated debt |
|
$ |
(49,355 |
) |
Net working capital (see below) |
|
$ |
(182,493 |
) |
Total enterprise value (TEV)* |
|
$ |
1,052,875 |
|
|
|
|
| |
Cash & cash equivalents |
|
$ |
172,407 |
|
Restricted cash |
|
5,163 |
| |
Accounts receivable, net |
|
10,253 |
| |
Prepaid expenses |
|
3,685 |
| |
Due from affiliates, net |
|
(875 |
) | |
Due from 3rd party hotel managers, net |
|
20,058 |
| |
Total current assets |
|
$ |
210,692 |
|
|
|
|
| |
Accounts payable, net & accrued expenses |
|
$ |
26,494 |
|
Dividends payable |
|
1,705 |
| |
Total current liabilities |
|
$ |
28,199 |
|
|
|
|
| |
Net working capital** |
|
$ |
182,493 |
|
* Calculation varies from TEV in the Advisory Agreement by utilizing shares outstanding and share price at period end in lieu of average diluted shares outstanding and average share price. In addition, the calculation above reduces TEV by Net Working Capital.
** Calculation only includes our portion of the Hilton joint venture.
Ashford Hospitality Prime, Inc.
Anticipated Capital Expenditures Calendar (a)
|
|
|
|
2014 |
| ||||||
|
|
|
|
1st Quarter |
|
2nd Quarter |
|
3rd Quarter |
|
4th Quarter |
|
|
|
Rooms |
|
Actual |
|
Estimated |
|
Estimated |
|
Estimated |
|
Courtyard Philadelphia Downtown |
|
498 |
|
x |
|
|
|
|
|
|
|
Marriott Seattle Waterfront |
|
358 |
|
x |
|
|
|
|
|
|
|
Renaissance Tampa |
|
293 |
|
|
|
|
|
|
|
x |
|
Courtyard Seattle |
|
250 |
|
|
|
|
|
|
|
x |
|
(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement during 2014 are included in this table.