EX-99.1 2 ahp2017q4earningsrelease.htm EXHIBIT 99.1 Exhibit

EXHIBIT 99.1

ahp_imagea01.gif
NEWS RELEASE

Contact:
Deric Eubanks
Jordan Jennings
Joe Calabrese
 
Chief Financial Officer
Investor Relations
Financial Relations Board
 
(972) 490-9600
(972) 778-9487
(212) 827-3772


ASHFORD PRIME REPORTS FOURTH QUARTER AND
YEAR END 2017 RESULTS
Insurance Recoveries Well Ahead of Previously Communicated Expectations
$4.1 Million in Business Interruption Income Booked in Fourth Quarter
Announced Agreement to Acquire the Ritz-Carlton Sarasota

DALLAS, February 28, 2018 -- Ashford Hospitality Prime, Inc. (NYSE: AHP) (“Ashford Prime” or the “Company”) today reported the following results and performance measures for the fourth quarter ended December 31, 2017. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA are comparable assuming each of the hotel properties in the Company’s hotel portfolio as of December 31, 2017 were owned as of the beginning of each of the periods presented. Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2017, with the fourth quarter ended December 31, 2016 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

STRATEGIC OVERVIEW
•
Focused strategy of investing in luxury hotels and resorts
•
Targets conservative leverage levels of 45% Net Debt to Gross Assets
•
Highly-aligned management team and advisory structure
•
Dividend yield of approximately 7.4%

FINANCIAL AND OPERATING HIGHLIGHTS
•
Net income attributable to common stockholders for the quarter was $23.2 million or $0.65 per diluted share. For the full year of 2017, net income attributable to common stockholders was $16.2 million or $0.51 per diluted share.
•
Comparable RevPAR for all hotels that did not incur business interruption claims decreased 1.1% to $174.39 during the fourth quarter
•
Comparable RevPAR for all hotels not under renovation decreased 2.7% to $181.23 during the fourth quarter
•
Comparable Hotel EBITDA Margin for all hotels increased 299 basis points to 30.3% for the quarter
•
Comparable Hotel EBITDA flow-through for all hotels was 101% for the quarter
•
Adjusted funds from operations (AFFO) was $0.31 per diluted share for the quarter as compared with $0.34 per diluted share from the prior-year quarter
•
Adjusted EBITDA was $22.0 million for the quarter, compared with $21.6 million for the prior year quarter
•
During the quarter, the Company booked $4.1 million of business interruption income related to lost profits at the Ritz-Carlton St. Thomas and the Pier House Resort during September, October and November 2017



AHP Reports Fourth Quarter Results
Page 2
February 28, 2018


•
During the quarter, the Company announced that it entered into an agreement with Marriott to convert its Courtyard San Francisco Downtown hotel to an Autograph Collection property
•
During the quarter, the Company announced that it had completed the sale of its Marriott Plano Legacy hotel in Plano, Texas for $104 million
•
Subsequent to the end of the quarter, the Company announced it has entered into a definitive agreement to acquire the 266-room Ritz-Carlton Sarasota in Sarasota, FL for $171 million ($643,000 per key)
•
Capex invested during the quarter was $10.3 million

UPDATE ON IMPACT FROM HURRICANES AND CALIFORNIA WILDFIRES
As previously announced, the Company’s Ritz-Carlton St. Thomas resort received physical damage from Hurricane Irma and the Company continues to work with its insurers to assess the damage and impact to operations. Three of the six guestroom buildings on the property were damaged, and the Company, along with Ritz-Carlton, continues to work on a comprehensive capital investment plan to rebuild the resort. The resort, which represents 8.3% of Ashford Prime's Hotel EBITDA on a trailing twelve-month basis through the fourth quarter, remains functioning and currently has 83 of its 180 guest rooms available for those taking part in the recovery effort. The resort has suspended online reservations until October 2018.

The Company's Pier House Resort & Spa sustained minor physical damage from Hurricane Irma, and the hotel is currently accepting reservations and has resumed operations with all of its 142 guest rooms available and in service.

In the fourth quarter, the Company recognized $4.1 million of business interruption income for these two properties related to lost profits for the period of September through November. The Company will continue to work with its insurers on the business interruption claim at these properties.

During the quarter, the Company’s two properties in Yountville, California - the Bardessono Hotel & Spa and the Hotel Yountville - were negatively impacted by the wildfires that affected Northern California. While neither property incurred any physical damage to their structures, the fires had a significant impact on the business operations of the hotels and the Company is in the process of working with its insurers on business interruption claims. As part of that effort, the Company expects to record $2.3 million in business interruption income in the first quarter for lost profits from the fourth quarter at these two hotels. The Company has a deductible of $500,000 associated with this claim.

RITZ-CARLTON SARASOTA ACQUISITION
On February 16, 2018, the Company announced it had entered into a definitive agreement to acquire the 266-room Ritz-Carlton Sarasota in Sarasota, FL for $171 million ($643,000 per key).  The purchase price represents a trailing twelve month cap rate, as of December 31, 2017, of 6.0% and the Company expects to realize a stabilized unleveraged yield of approximately 8% on its investment. To fund the acquisition, the Company plans to use cash on its balance sheet as well as either drawing on its revolving credit line or securing a non-recourse mortgage loan on the property. The acquisition is expected to close in April 2018, subject to customary closing conditions. Because the acquisition is subject to customary closing conditions, the Company can give no assurance that the transaction will be consummated by such date or at all. 

UPDATE ON NON-CORE HOTELS STRATEGY
During the fourth quarter, the Company announced the finalization of its strategy for its non-core hotels. On November 1, 2017, the Company announced plans to convert its Courtyard San Francisco Downtown hotel to an Autograph Collection hotel by December 2019 pursuant to a conversion PIP currently estimated to be approximately $30 million incremental to capital projects already underway - including updates to the guestrooms, guest bathrooms, corridors, lobby, restaurant, facade, and meeting space - which will create a distinctive theme and style for the property that is commensurate with the Autograph Collection product. Marriott will continue to manage the property after the conversion.



AHP Reports Fourth Quarter Results
Page 3
February 28, 2018


Additionally, on November 1, 2017, the Company announced that it had completed the sale of its Marriott Plano Legacy hotel in Plano, Texas for $104 million. The Company also announced that it is in the process of marketing for sale its other non-core hotel, the Renaissance Tampa in Tampa, FL.

CAPITAL STRUCTURE
At December 31, 2017, the Company had total assets of $1.4 billion. As of December 31, 2017, the Company had $826 million of mortgage debt of which $48 million related to its joint venture partner’s share of debt on the Capital Hilton and Hilton La Jolla Torrey Pines. The Company’s total combined debt had a blended average interest rate of 4.3%.
PORTFOLIO REVPAR
As of December 31, 2017, the portfolio consisted of twelve properties. During the fourth quarter of 2017, seven of the Company’s hotels were not under renovation. The Company believes reporting its operating metrics for its hotels on a comparable total basis (all 12 hotels) and comparable not under renovation basis (7 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.

•
Comparable RevPAR decreased 9.2% to $188.15 for all hotels on a 5.3% decrease in ADR and a 4.2% decrease in occupancy
•
Comparable RevPAR decreased 2.7% to $181.23 for hotels not under renovation on a 0.8% decrease in ADR and a 1.9% decrease in occupancy
•
Comparable RevPAR decreased 1.1% for all hotels that did not incur business interruption claims on a 2.2% increase in ADR and a 3.2% decrease in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
The Company believes year-over-year Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company’s hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company’s portfolio, to help investors better understand this seasonality, the Company provides quarterly detail on its Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company’s portfolio as of the end of the current period. As the Company’s portfolio mix changes from time to time so will the seasonality for Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin. The details of the quarterly calculations for the previous four quarters for the twelve hotels are provided in the table attached to this release.

COMMON STOCK DIVIDEND
On December 11, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.16 per diluted share for the Company's common stock for the fourth quarter ending December 31, 2017.  The dividend, which equates to an annual rate of $0.64 per share, was paid on January 16, 2018, to shareholders of record as of December 29, 2017.

The Board also approved the Company's dividend policy for 2018.  The Company expects to pay a quarterly cash dividend of $0.16 per share for 2018, or $0.64 per share on an annualized basis.  The Board will continue to review its dividend policy on a quarter-to-quarter basis.  The adoption of a dividend policy does not commit the Board of Directors to declare future dividends or the amount thereof.

“Hurricanes Irma and Maria as well as the wildfires in Northern California had a significant impact on the operations of four of our properties and on our overall results for the quarter,” said Richard J. Stockton, Ashford Prime's President and Chief Executive Officer. “However, on a positive note, we continue to work with our insurers on business interruption claims at the affected properties and during the quarter we were able to realize approximately $4.1 million in business interruption recoveries. We remain focused on the execution of our strategies within the luxury chain scale


AHP Reports Fourth Quarter Results
Page 4
February 28, 2018


segment and are excited about our pending acquisition of the Ritz-Carlton Sarasota. With the upbranding of the Courtyard San Francisco, the sale of the Marriott Plano and the announced listing for sale of the Tampa Renaissance, we are pleased to have made significant progress on our strategy for our non-core hotels and refining our portfolio. We will continue to look for ways to accretively grow our luxury hotel portfolio and maximize returns for our shareholders.”

INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Prime, Inc. will conduct a conference call on Thursday, March 1, 2018, at 11:00 a.m. ET. The number to call for this interactive teleconference is (719) 325-4821.  A replay of the conference call will be available through Thursday, March 8, 2018, by dialing (719) 457-0820 and entering the confirmation number, 5950335.

The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2017 earnings release conference call. The live broadcast of Ashford Prime's quarterly conference call will be available online at the Company's web site, www.ahpreit.com on Thursday, March 1, 2018, 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 company's operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel EBITDA. 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. None of FFO, AFFO, EBITDA or Hotel EBITDA 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 EBITDA to be meaningful measures of a REIT's 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 luxury hotels and resorts.

Ashford has created an Ashford App for the hospitality REIT investor community. The Ashford App is available for free download at Apple’s App Store and the Google Play 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. Forward-looking statements in this press release may include, among others, statements about the implied share price for the Company's common stock. 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 Prime's 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; our ability to successfully complete and integrate acquisitions, and manage our planned growth, and the degree and nature of our competition. These and other risk factors are more fully discussed in Ashford Prime's 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 property's annual net operating income by the purchase price. Net operating income is the property's funds from operations minus


AHP Reports Fourth Quarter Results
Page 5
February 28, 2018


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
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
(unaudited)

 
December 31,
2017
 
December 31,
2016
ASSETS
 
 
 
Investments in hotel properties, gross
$
1,403,110

 
$
1,258,412

Accumulated depreciation
(257,268
)
 
(243,880
)
Investments in hotel properties, net
1,145,842

 
1,014,532

Cash and cash equivalents
137,522

 
126,790

Restricted cash
47,820

 
37,855

Accounts receivable, net of allowance of $94 and $96, respectively
14,334

 
18,194

Insurance receivable
8,825

 
—

Inventories
1,425

 
1,479

Note receivable
8,098

 
8,098

Deferred costs, net
656

 
1,020

Prepaid expenses
3,670

 
3,669

Investment in Ashford Inc., at fair value
18,124

 
8,407

Derivative assets
594

 
1,149

Other assets
9,426

 
2,249

Intangible assets, net
22,545

 
22,846

Due from Ashford Trust OP, net
—

 
488

Due from AQUA U.S. Fund
—

 
2,289

Due from related party, net
349

 
377

Due from third-party hotel managers
4,589

 
7,555

Total assets
$
1,423,819

 
$
1,256,997

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Liabilities:
 
 
 
Indebtedness, net
$
820,959

 
$
764,616

Accounts payable and accrued expenses
56,803

 
44,791

Dividends and distributions payable
8,146

 
5,038

Due to Ashford Inc.
1,703

 
5,085

Due to affiliate
—

 
2,500

Due to third-party hotel managers
1,709

 
973

Intangible liability, net
3,569

 
3,625

Other liabilities
1,628

 
1,432

Total liabilities
894,517

 
828,060

 
 
 
 
5.50% Series B cumulative convertible preferred stock, $0.01 par value, 4,965,850 and 2,890,850 shares issued and outstanding at December 31, 2017 and 2016, respectively
106,123

 
65,960

Redeemable noncontrolling interests in operating partnership
46,627

 
59,544

Equity:
 
 
 
Common stock, $0.01 par value, 200,000,000 shares authorized, 32,120,210 and 26,021,552 shares issued and outstanding at December 31, 2017 and 2016, respectively
321

 
260

Additional paid-in capital
469,791

 
401,790

Accumulated deficit
(88,807
)
 
(93,254
)
Total stockholders' equity of the Company
381,305

 
308,796

Noncontrolling interest in consolidated entities
(4,753
)
 
(5,363
)
Total equity
376,552

 
303,433

Total liabilities and equity
$
1,423,819

 
$
1,256,997


6



ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2017
 
2016
 
2017
 
2016
REVENUE
 
 
 
 
 
 
 
Rooms
$
61,803

 
$
65,066

 
$
286,006

 
$
287,844

Food and beverage
20,815

 
23,596

 
96,415

 
95,618

Other
9,896

 
5,290

 
31,484

 
22,267

Total hotel revenue
92,514

 
93,952

 
413,905

 
405,729

Other
42

 
25

 
158

 
128

Total revenue
92,556

 
93,977

 
414,063

 
405,857

EXPENSES
 
 
 
 
 
 
 
Hotel operating expenses
 
 
 
 
 
 
 
Rooms
14,623

 
15,700

 
65,731

 
65,541

Food and beverage
14,579

 
16,815

 
68,469

 
68,471

Other expenses
27,388

 
26,191

 
122,322

 
113,114

Management fees
3,431

 
3,498

 
15,074

 
15,456

Total hotel operating expenses
60,021

 
62,204

 
271,596

 
262,582

Property taxes, insurance and other
5,696

 
5,862

 
21,337

 
20,539

Depreciation and amortization
12,689

 
11,555

 
52,262

 
45,897

Impairment charges
60

 
—

 
1,068

 
—

Advisory services fee:
 
 
 
 
 
 
 
Base advisory fee
2,221

 
2,009

 
8,800

 
8,343

Reimbursable expenses
476

 
771

 
2,017

 
2,798

Incentive fee
—

 
(772
)
 
—

 
—

Non-cash stock/unit-based compensation
615

 
594

 
(1,683
)
 
3,814

Contract modification cost
—

 
—

 
5,000

 
—

Transaction costs
40

 
(44
)
 
6,678

 
457

Corporate, general and administrative:
 
 
 
 
 
 
 
Non-cash stock/unit-based compensation
20

 
—

 
265

 
271

Other general and administrative
1,119

 
(2,128
)
 
7,881

 
14,015

Total operating expenses
82,957

 
80,051

 
375,221

 
358,716

OPERATING INCOME (LOSS)
9,599

 
13,926

 
38,842

 
47,141

Equity in earnings (loss) of unconsolidated entity
—

 
—

 
—

 
(2,587
)
Interest income
215

 
35

 
690

 
167

Gain (loss) on sale of hotel property
23,797

 
—

 
23,797

 
26,359

Other income (expense)
(85
)
 
(77
)
 
(377
)
 
(165
)
Interest expense
(9,045
)
 
(9,052
)
 
(34,034
)
 
(37,712
)
Amortization of loan costs
(1,149
)
 
(763
)
 
(4,903
)
 
(3,169
)
Write-off of loan costs and exit fees
(1,531
)
 
—

 
(3,874
)
 
(2,595
)
Unrealized gain (loss) on investments
6,314

 
(879
)
 
9,717

 
(1,970
)
Unrealized gain (loss) on derivatives
(527
)
 
(1,793
)
 
(2,056
)
 
425

INCOME (LOSS) BEFORE INCOME TAXES
27,588

 
1,397

 
27,802

 
25,894

Income tax (expense) benefit
856

 
(552
)
 
522

 
(1,574
)
NET INCOME (LOSS)
28,444

 
845

 
28,324

 
24,320

(Income) loss from consolidated entities attributable to noncontrolling interest
(528
)
 
(536
)
 
(3,264
)
 
(3,105
)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
(2,996
)
 
95

 
(2,038
)
 
(1,899
)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY
24,920

 
404

 
23,022

 
19,316

Preferred dividends
(1,708
)
 
(994
)
 
(6,795
)
 
(3,860
)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
$
23,212

 
$
(590
)
 
$
16,227

 
$
15,456

 
 
 
 
 
 
 
 
INCOME (LOSS) PER SHARE – BASIC AND DILUTED
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
$
0.73

 
$
(0.03
)
 
$
0.52

 
$
0.57

Weighted average common shares outstanding – basic
31,610

 
25,532

 
30,473

 
26,648

Diluted:
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
$
0.65

 
$
(0.03
)
 
$
0.51

 
$
0.55

Weighted average common shares outstanding – diluted
38,178

 
25,532

 
34,706

 
31,195

Dividends declared per common share:
$
0.16

 
$
0.12

 
$
0.64

 
$
0.46


7



ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(in thousands)
(unaudited)
 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2017
 
2016
 
2017
 
2016
Net income (loss)
$
28,444

 
$
845

 
$
28,324

 
$
24,320

(Income) loss from consolidated entities attributable to noncontrolling interest
(528
)
 
(536
)
 
(3,264
)
 
(3,105
)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
(2,996
)
 
95

 
(2,038
)
 
(1,899
)
Net income (loss) attributable to the Company
24,920

 
404

 
23,022

 
19,316

Interest income
(213
)
 
(35
)
 
(683
)
 
(167
)
Interest expense and amortization of loan costs
9,691

 
9,393

 
37,029

 
39,232

Depreciation and amortization
11,952

 
10,838

 
49,361

 
43,054

Income tax expense (benefit)
(708
)
 
552

 
(389
)
 
1,574

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership
2,996

 
(95
)
 
2,038

 
1,899

EBITDA available to the Company and OP unitholders
48,638

 
21,057

 
110,378

 
104,908

Amortization of favorable (unfavorable) contract assets (liabilities)
44

 
37

 
180

 
106

Transaction and management conversion costs
74

 
(44
)
 
6,774

 
457

Other (income) expense
85

 
77

 
377

 
165

(Gain) loss on sale of hotel property
(23,797
)
 
—

 
(23,797
)
 
(26,359
)
Write-off of loan costs and exit fees
1,531

 
—

 
3,874

 
2,595

Unrealized (gain) loss on investments
(6,314
)
 
879

 
(9,717
)
 
1,970

Unrealized (gain) loss on derivatives
524

 
1,791

 
2,053

 
(427
)
Non-cash stock/unit-based compensation
665

 
615

 
(1,327
)
 
4,156

Legal, advisory and settlement costs
203

 
(2,862
)
 
3,711

 
11,194

Contract modification cost
—

 
—

 
5,000

 
—

Software implementation costs
—

 
—

 
79

 
—

Impairment and uninsured hurricane related costs
308

 
—

 
4,889

 
—

Company’s portion of unrealized (gain) loss of investment in securities investment fund
—

 
—

 
—

 
2,587

Adjusted EBITDA available to the Company and OP unitholders
$
21,961

 
$
21,550

 
$
102,474

 
$
101,352

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO
(in thousands, except per share amounts)
(unaudited)
 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2017
 
2016
 
2017
 
2016
Net income (loss)
$
28,444

 
$
845

 
$
28,324

 
$
24,320

(Income) loss from consolidated entities attributable to noncontrolling interest
(528
)
 
(536
)
 
(3,264
)
 
(3,105
)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
(2,996
)
 
95

 
(2,038
)
 
(1,899
)
Preferred dividends
(1,708
)
 
(994
)
 
(6,795
)
 
(3,860
)
Net income (loss) attributable to common stockholders
23,212

 
(590
)
 
16,227

 
15,456

Depreciation and amortization on real estate
11,952

 
10,838

 
49,361

 
43,054

Impairment charges on real estate
60

 
—

 
1,068

 
—

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership
2,996

 
(95
)
 
2,038

 
1,899

(Gain) loss on sale of hotel property
(23,797
)
 
—

 
(23,797
)
 
(26,359
)
FFO available to common stockholders and OP unitholders
14,423

 
10,153

 
44,897

 
34,050

Preferred dividends
1,708

 
994

 
6,795

 
3,860

Transaction and management conversion costs
74

 
(44
)
 
6,774

 
457

Other (income) expense
85

 
77

 
377

 
165

Write-off of loan costs and exit fees
1,531

 
—

 
3,874

 
2,595

Unrealized (gain) loss on investments
(6,314
)
 
879

 
(9,717
)
 
1,970

Unrealized (gain) loss on derivatives
524

 
1,791

 
2,053

 
(427
)
Non-cash stock/unit-based compensation
665

 
615

 
(1,327
)
 
4,156

Legal, advisory and settlement costs
203

 
(2,862
)
 
3,711

 
11,194

Contract modification cost
—

 
—

 
5,000

 
—

Software implementation costs
—

 
—

 
79

 
—

Uninsured hurricane related costs
248

 
—

 
3,821

 
—

Tax reform
(161
)
 
—

 
(161
)
 
—

Company’s portion of unrealized (gain) loss of investment in securities investment fund
—

 
—

 
—

 
2,587

Adjusted FFO available to the Company and OP unitholders
$
12,986

 
$
11,603

 
$
66,176

 
$
60,607

Adjusted FFO per diluted share available to the Company and OP unitholders
$
0.31

 
$
0.34

 
$
1.62

 
$
1.73

Weighted average diluted shares
42,406

 
33,891

 
40,957

 
34,999


8



ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
SUMMARY OF INDEBTEDNESS
DECEMBER 31, 2017
(dollars in thousands)
(unaudited)

Indebtedness
 
Maturity
 
Interest Rate
 
Fixed-Rate
Debt
 
Floating-Rate
Debt
 
Total
Debt
 
Comparable TTM
Hotel EBITDA (9)
 
Comparable TTM EBITDA
Debt Yield
GACC Sofitel - 1 hotel
 
March 2018
 
LIBOR + 2.30%
 
$
—

 
$
80,000

(1)
$
80,000

 
$
5,778

 
7.2
%
Credit Agricole Pier House - 1 hotel
 
March 2018
 
LIBOR + 2.25%
 
—

 
70,000

(2)
70,000

 
10,982

 
15.7
%
TIF Philly CY - 1 hotel
 
June 2018
 
12.85%
 
8,098

 
—


8,098

 
N/A

 
N/A

Apollo Ritz-Carlton St. Thomas - 1 hotel
 
December 2018
 
LIBOR + 4.95%
 
—

 
42,000

(3)
42,000

 
10,595

 
25.2
%
Morgan Stanley Pool - 4 hotels
 
February 2019
 
LIBOR + 2.58%
 
—

 
277,628

(4)
277,628

 
48,169

 
17.4
%
JPMorgan Park Hyatt Beaver Creek - 1 hotel
 
April 2019
 
LIBOR + 2.75%
 
—

 
67,500

(5)
67,500

 
9,387

 
13.9
%
Aareal - 2 hotels
 
November 2019
 
LIBOR + 2.65%
 
—

 
190,010

(6)
190,010

 
32,412

 
17.1
%
Secured revolving credit facility - various
 
November 2019
 
Base Rate(8) + 1.25% to 2.50% or LIBOR + 2.25% to 3.50%
 
—

 
—

(7)
—

 
N/A

 
N/A

BAML Hotel Yountville - 1 hotel
 
May 2022
 
LIBOR + 2.55%
 
—

 
51,000


51,000

 
5,157

 
10.1
%
BAML Bardessono - 1 hotel
 
August 2022
 
LIBOR + 2.55%
 
—

 
40,000


40,000

 
4,441

 
11.1
%
Total
 
 
 
 
 
$
8,098

 
$
818,138

 
$
826,236

 
$
126,921

 
15.4
%
Percentage
 
 
 
 
 
1.0
%
 
99.0
%
 
100.0
%
 
 
 
 
Weighted average interest rate
 
 
 
 
 
12.85
%
 
4.24
%
 
4.32
%
 
 
 
 
All indebtedness is non-recourse with the exception of the secured revolving credit facility.
(1)    This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the second was exercised in March 2017.
(2)    This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in March 2017.
(3)    This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in December 2017.
(4)    This mortgage loan has five one-year extension options subject to satisfaction of certain conditions.
(5)    This mortgage loan has three one-year extension options subject to satisfaction of certain conditions.
(6)    This mortgage loan has two one-year extension options subject to satisfaction of certain conditions.
(7)    This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2019.
(8)    Base Rate, as defined in the secured revolving credit facility agreement, is the greater of (i) the prime rate set by Bank of America, or (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%.
(9)    See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

9



ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED
DECEMBER 31, 2017
(dollars in thousands)
(unaudited)
 
 
2018
 
2019
 
2020
 
2021
 
2022
 
Thereafter
 
Total
Secured revolving credit facility - various
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

TIF Philly CY - 1 hotel
 
8,098

 
—

 
—

 
—

 
—

 
—

 
8,098

GACC Sofitel - 1 hotel
 
—

 
80,000

 
—

 
—

 
—

 
—

 
80,000

Credit Agricole Pier House - 1 hotel
 
—

 
—

 
70,000

 
—

 
—

 
—

 
70,000

Apollo Ritz-Carlton St. Thomas - 1 hotel
 
—

 
—

 
42,000

 
—

 
—

 
—

 
42,000

Aareal - 2 hotels
 
—

 
—

 
—

 
177,486

 
—

 
—

 
177,486

JPMorgan Park Hyatt Beaver Creek - 1 hotel
 
—

 
—

 
—

 
—

 
67,500

 
—

 
67,500

BAML Hotel Yountville - 1 hotel
 
—

 
—

 
—

 
—

 
51,000

 
—

 
51,000

BAML Bardessono - 1 hotel
 
—

 
—

 
—

 
—

 
40,000

 
—

 
40,000

Morgan Stanley Pool - 4 hotels
 
—

 
—

 
—

 
—

 
—

 
277,628

 
277,628

Principal due in future periods
 
$
8,098

 
$
80,000

 
$
112,000

 
$
177,486

 
$
158,500

 
$
277,628

 
$
813,712

Scheduled amortization payments remaining
 
3,176

 
3,120

 
3,312

 
2,916

 
—

 
—

 
12,524

Total indebtedness
 
$
11,274

 
$
83,120

 
$
115,312

 
$
180,402

 
$
158,500

 
$
277,628

 
$
826,236



10



ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(unaudited)

ALL HOTELS:
 
 
 
Three Months Ended December 31,
 
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Comparable
 
 
2017
 
2017
 
2017
 
2016
 
2016
 
2016
 
% Variance
 
% Variance
 
Rooms revenue (in thousands)
$
61,803

 
$
(1,858
)
 
$
59,945

 
$
65,066

 
$
2,972

 
$
68,038

 
(5.01
)%
 
(11.89
)%
 
RevPAR
$
186.65

 
$
(148.30
)
 
$
188.15

 
$
191.04

 
$
(241.07
)
 
$
207.27

 
(2.30
)%
 
(9.22
)%
 
Occupancy
77.19
%
 
(77.32
)%
 
77.18
%
 
80.70
%
 
84.50
%
 
80.56
%
 
(4.35
)%
 
(4.20
)%
 
ADR
$
241.81

 
$
(191.81
)
 
$
243.78

 
$
236.73

 
$
(285.30
)
 
$
257.29

 
2.15
 %
 
(5.25
)%

ALL HOTELS:
 
 
 
Year Ended December 31,
 
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Comparable
 
 
2017
 
2017
 
2017
 
2016
 
2016
 
2016
 
% Variance
 
% Variance
 
Rooms revenue (in thousands)
$
286,006

 
$
(3,256
)
 
$
282,750

 
$
287,844

 
$
5,607

 
$
293,451

 
(0.64
)%
 
(3.65
)%
 
RevPAR
$
206.42

 
$
(34.16
)
 
$
219.15

 
$
205.54

 
$
(59.31
)
 
$
224.71

 
0.43
 %
 
(2.47
)%
 
Occupancy
80.97
%
 
(70.49
)%
 
81.75
%
 
82.94
%
 
78.28
%
 
83.27
%
 
(2.38
)%
 
(1.83
)%
 
ADR
$
254.92

 
$
(48.46
)
 
$
268.07

 
$
247.83

 
$
(75.76
)
 
$
269.85

 
2.86
 %
 
(0.66
)%
NOTES:
(1)
The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.
(2)
All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

ALL HOTELS
     NOT UNDER RENOVATION:
 
Three Months Ended December 31,
 
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Comparable
 
 
2017
 
2017
 
2017
 
2016
 
2016
 
2016
 
% Variance
 
% Variance
 
Rooms revenue (in thousands)
$
33,187

 
$
(1,858
)
 
$
31,329

 
$
29,164

 
$
2,972

 
$
32,136

 
13.79
 %
 
(2.51
)%
 
RevPAR
$
179.00

 
$
(148.30
)
 
$
181.23

 
$
157.72

 
$
(241.07
)
 
$
186.20

 
13.49
 %
 
(2.67
)%
 
Occupancy
75.81
%
 
(77.32
)%
 
75.70
%
 
77.63
%
 
84.50
%
 
77.14
%
 
(2.34
)%
 
(1.87
)%
 
ADR
$
236.13

 
$
(191.81
)
 
$
239.40

 
$
203.17

 
$
(285.30
)
 
$
241.39

 
16.22
 %
 
(0.82
)%

ALL HOTELS
     NOT UNDER RENOVATION:
 
Year Ended December 31,
 
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Comparable
 
 
2017
 
2017
 
2017
 
2016
 
2016
 
2016
 
% Variance
 
% Variance
 
Rooms revenue (in thousands)
$
146,358

 
$
(3,256
)
 
$
143,102

 
$
136,871

 
$
5,607

 
$
142,478

 
6.93
 %
 
0.44
%
 
RevPAR
$
187.51

 
$
(34.16
)
 
$
208.84

 
$
175.22

 
$
(59.31
)
 
$
207.51

 
7.01
 %
 
0.64
%
 
Occupancy
79.54
%
 
(70.49
)%
 
80.80
%
 
80.37
%
 
78.28
%
 
80.66
%
 
(1.03
)%
 
0.17
%
 
ADR
$
235.74

 
$
(48.46
)
 
$
258.47

 
$
218.01

 
$
(75.76
)
 
$
257.27

 
8.13
 %
 
0.47
%
NOTES:
(1)
The above comparable information assumes the seven hotel properties owned and included in the Company's operations at December 31, 2017, and not under renovation during the three months ended December 31, 2017, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.
(2)
All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
(3)
Excluded Hotels Under Renovation:
Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

11



ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
HOTEL EBITDA
(dollars in thousands)
(unaudited)
ALL HOTELS:
Three Months Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
% Variance
 
2017
 
2016
 
% Variance
 
Total hotel revenue
$
92,514

 
$
93,952

 
(1.53
)%
 
$
413,905

 
$
405,729

 
2.02
 %
 
Non-comparable adjustments
(2,942
)
 
4,948

 
 
 
(4,164
)
 
16,563

 
 
 
Comparable total hotel revenue
$
89,572

 
$
98,900

 
(9.43
)%
 
$
409,741

 
$
422,292

 
(2.97
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel EBITDA
$
28,168

 
$
26,326

 
7.00
 %
 
$
128,300

 
$
124,239

 
3.27
 %
 
Non-comparable adjustments
(1,076
)
 
635

 
 
 
(1,379
)
 
2,475

 
 
 
Comparable hotel EBITDA
$
27,092

 
$
26,961

 
0.49
 %
 
$
126,921

 
$
126,714

 
0.16
 %
 
Hotel EBITDA margin
30.45
%
 
28.02
%
 
2.43
 %
 
31.00
%
 
30.62
%
 
0.38
 %
 
Comparable hotel EBITDA margin
30.25
%
 
27.26
%
 
2.99
 %
 
30.98
%
 
30.01
%
 
0.97
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel EBITDA adjustments attributable to consolidated noncontrolling interests
$
1,620

 
$
1,722

 
(5.91
)%
 
$
8,103

 
$
7,586

 
6.82
 %
 
Hotel EBITDA attributable to the Company and OP unitholders
$
26,548

 
$
24,604

 
7.90
 %
 
$
120,197

 
$
116,653

 
3.04
 %
 
Comparable hotel EBITDA attributable to the Company and OP unitholders
$
25,472

 
$
25,239

 
0.92
 %
 
$
118,818

 
$
119,128

 
(0.26
)%
NOTES:
(1)
The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.
(2)
All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3)
See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.


ALL HOTELS
NOT UNDER RENOVATION:
Three Months Ended
 
Year Ended
December 31,
 
December 31,
 
 
2017
 
2016
 
% Variance
 
2017
 
2016
 
% Variance
 
Total hotel revenue
$
50,206

 
$
44,215

 
13.55
 %
 
$
217,169

 
$
195,160

 
11.28
 %
 
Non-comparable adjustments
(2,942
)
 
4,948

 
 
 
(4,164
)
 
16,563

 
 
 
Comparable total hotel revenue
$
47,264

 
$
49,163

 
(3.86
)%
 
$
213,005

 
$
211,723

 
0.61
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel EBITDA
$
14,568

 
$
14,398

 
1.18
 %
 
$
70,536

 
$
66,585

 
5.93
 %
 
Non-comparable adjustments
(1,076
)
 
635

 
 
 
(1,379
)
 
2,475

 
 
 
Comparable hotel EBITDA
$
13,492

 
$
15,033

 
(10.25
)%
 
$
69,157

 
$
69,060

 
0.14
 %
 
Hotel EBITDA margin
29.02
%
 
32.56
%
 
(3.54
)%
 
32.48
%
 
34.12
%
 
(1.64
)%
 
Comparable hotel EBITDA margin
28.55
%
 
30.58
%
 
(2.03
)%
 
32.47
%
 
32.62
%
 
(0.15
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel EBITDA adjustments attributable to consolidated noncontrolling interests
$
675

 
$
698

 
(3.24
)%
 
$
3,685

 
$
3,231

 
14.07
 %
 
Hotel EBITDA attributable to the Company and OP unitholders
$
13,893

 
$
13,700

 
1.41
 %
 
$
66,851

 
$
63,354

 
5.52
 %
 
Comparable hotel EBITDA attributable to the Company and OP unitholders
$
12,817

 
$
14,335

 
(10.59
)%
 
$
65,472

 
$
65,829

 
(0.54
)%
NOTES:
(1)
The above comparable information assumes the seven hotel properties owned and included in the Company's operations at December 31, 2017, and not under renovation during the three months ended December 31, 2017, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.
(2)
All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3)    See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.
(4)
Excluded Hotels Under Renovation:
Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton


12



ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY
(in thousands, except operating information)
(unaudited)
 
 
Three Months Ended December 31,
 
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Comparable
 
 
2017
 
2017
 
2017
 
2016
 
2016
 
2016
 
% Variance
 
% Variance
CAPITAL HILTON WASHINGTON D.C.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
9,417

 
$
—

 
$
9,417

 
$
10,055

 
$
—

 
$
10,055

 
(6.35
)%
 
(6.35
)%
 
Total hotel revenue
$
13,535

 
$
—

 
$
13,535

 
$
14,389

 
$
—

 
$
14,389

 
(5.94
)%
 
(5.94
)%
 
Hotel EBITDA
$
3,780

 
$
—

 
$
3,780

 
$
4,096

 
$
—

 
$
4,096

 
(7.71
)%
 
(7.71
)%
 
Hotel EBITDA margin
27.93
%
 
 
 
27.93
%
 
28.47
%
 
 
 
28.47
%
 
(0.54
)%
 
(0.54
)%
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
186.11

 
$
—

 
$
186.11

 
$
198.71

 
$
—

 
$
198.71

 
(6.34
)%
 
(6.34
)%
 
Occupancy
82.00
%
 
—
 %
 
82.00
%
 
87.00
%
 
—
 %
 
87.00
%
 
(5.75
)%
 
(5.75
)%
 
ADR
$
226.96

 
$
—

 
$
226.96

 
$
228.39

 
$
—

 
$
228.39

 
(0.63
)%
 
(0.63
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LA JOLLA HILTON TORREY PINES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
5,155

 
$
—

 
$
5,155

 
$
5,184

 
$
—

 
$
5,184

 
(0.56
)%
 
(0.56
)%
 
Total hotel revenue
$
9,500

 
$
—

 
$
9,500

 
$
10,062

 
$
—

 
$
10,062

 
(5.59
)%
 
(5.59
)%
 
Hotel EBITDA
$
2,700

 
$
—

 
$
2,700

 
$
2,790

 
$
—

 
$
2,790

 
(3.23
)%
 
(3.23
)%
 
Hotel EBITDA margin
28.42
%
 
 
 
28.42
%
 
27.73
%
 
 
 
27.73
%
 
0.69
 %
 
0.69
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
142.22

 
$
—

 
$
142.22

 
$
143.01

 
$
—

 
$
143.01

 
(0.55
)%
 
(0.55
)%
 
Occupancy
79.05
%
 
—
 %
 
79.05
%
 
82.73
%
 
—
 %
 
82.73
%
 
(4.45
)%
 
(4.45
)%
 
ADR
$
179.91

 
$
—

 
$
179.91

 
$
172.86

 
$
—

 
$
172.86

 
4.08
 %
 
4.08
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHICAGO SOFITEL MAGNIFICENT MILE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
6,400

 
$
—

 
$
6,400

 
$
7,032

 
$
—

 
$
7,032

 
(8.99
)%
 
(8.99
)%
 
Total hotel revenue
$
8,751

 
$
—

 
$
8,751

 
$
9,577

 
$
—

 
$
9,577

 
(8.62
)%
 
(8.62
)%
 
Hotel EBITDA
$
1,575

 
$
—

 
$
1,575

 
$
2,187

 
$
—

 
$
2,187

 
(27.98
)%
 
(27.98
)%
 
Hotel EBITDA margin
18.00
%
 
 
 
18.00
%
 
22.84
%
 
 
 
22.84
%
 
(4.84
)%
 
(4.84
)%
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
167.65

 
$
—

 
$
167.65

 
$
184.17

 
$
—

 
$
184.17

 
(8.97
)%
 
(8.97
)%
 
Occupancy
80.23
%
 
—
 %
 
80.23
%
 
84.04
%
 
—
 %
 
84.04
%
 
(4.53
)%
 
(4.53
)%
 
ADR
$
208.96

 
$
—

 
$
208.96

 
$
219.15

 
$
—

 
$
219.15

 
(4.65
)%
 
(4.65
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BARDESSONO HOTEL AND SPA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
2,557

 
$
—

 
$
2,557

 
$
3,629

 
$
—

 
$
3,629

 
(29.54
)%
 
(29.54
)%
 
Total hotel revenue
$
3,442

 
$
—

 
$
3,442

 
$
4,868

 
$
—

 
$
4,868

 
(29.29
)%
 
(29.29
)%
 
Hotel EBITDA
$
494

 
$
—

 
$
494

 
$
1,431

 
$
—

 
$
1,431

 
(65.48
)%
 
(65.48
)%
 
Hotel EBITDA margin
14.35
%
 
 
 
14.35
%
 
29.40
%
 
 
 
29.40
%
 
(15.05
)%
 
(15.05
)%
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
448.27

 
$
—

 
$
448.27

 
$
636.22

 
$
—

 
$
636.22

 
(29.54
)%
 
(29.54
)%
 
Occupancy
62.83
%
 
—
 %
 
62.83
%
 
83.59
%
 
—
 %
 
83.59
%
 
(24.84
)%
 
(24.84
)%
 
ADR
$
713.43

 
$
—

 
$
713.43

 
$
761.11

 
$
—

 
$
761.11

 
(6.26
)%
 
(6.26
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
KEY WEST PIER HOUSE RESORT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
3,949

 
$
—

 
$
3,949

 
$
4,527

 
$
—

 
$
4,527

 
(12.77
)%
 
(12.77
)%
 
Total hotel revenue
$
6,365

 
$
—

 
$
6,365

 
$
5,679

 
$
—

 
$
5,679

 
12.08
 %
 
12.08
 %
 
Hotel EBITDA
$
3,457

 
$
—

 
$
3,457

 
$
2,469

 
$
—

 
$
2,469

 
40.02
 %
 
40.02
 %
 
Hotel EBITDA margin
54.31
%
 
 
 
54.31
%
 
43.48
%
 
 
 
43.48
%
 
10.83
 %
 
10.83
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
302.25

 
$
—

 
$
302.25

 
$
346.56

 
$
—

 
$
346.56

 
(12.79
)%
 
(12.79
)%
 
Occupancy
70.06
%
 
—
 %
 
70.06
%
 
83.40
%
 
—
 %
 
83.40
%
 
(16.00
)%
 
(16.00
)%
 
ADR
$
431.44

 
$
—

 
$
431.44

 
$
415.56

 
$
—

 
$
415.56

 
3.82
 %
 
3.82
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

13



 
 
Three Months Ended December 31,
 
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Comparable
 
 
2017
 
2017
 
2017
 
2016
 
2016
 
2016
 
% Variance
 
% Variance
HOTEL YOUNTVILLE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
2,085

 
$
—

 
$
2,085

 
$
—

 
$
3,382

 
$
3,382

 
—
 %
 
(38.35
)%
 
Total hotel revenue
$
2,546

 
$
—

 
$
2,546

 
$
—

 
$
4,011

 
$
4,011

 
—
 %
 
(36.52
)%
 
Hotel EBITDA
$
491

 
$
—

 
$
491

 
$
—

 
$
1,567

 
$
1,567

 
—
 %
 
(68.67
)%
 
Hotel EBITDA margin
19.29
%
 
 
 
19.29
%
 
—
%
 
 
 
39.07
%
 
19.29
 %
 
(19.78
)%
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
283.36

 
$
—

 
$
283.36

 
$
—

 
$
459.41

 
$
459.41

 
—
 %
 
(38.32
)%
 
Occupancy
56.47
%
 
—
 %
 
56.47
%
 
—
%
 
82.68
 %
 
82.68
%
 
—
 %
 
(31.70
)%
 
ADR
$
501.82

 
$
—

 
$
501.82

 
$
—

 
$
555.67

 
$
555.67

 
—
 %
 
(9.69
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PARK HYATT BEAVER CREEK
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
3,833

 
$
—

 
$
3,833

 
$
—

 
$
4,232

 
$
4,232

 
—
 %
 
(9.43
)%
 
Total hotel revenue
$
8,309

 
$
—

 
$
8,309

 
$
—

 
$
8,785

 
$
8,785

 
—
 %
 
(5.42
)%
 
Hotel EBITDA
$
1,181

 
$
—

 
$
1,181

 
$
—

 
$
1,766

 
$
1,766

 
—
 %
 
(33.13
)%
 
Hotel EBITDA margin
14.21
%
 
 
 
14.21
%
 
—
%
 
 
 
20.10
%
 
14.21
 %
 
(5.89
)%
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
219.25

 
$
—

 
$
219.25

 
$
—

 
$
242.13

 
$
242.13

 
—
 %
 
(9.45
)%
 
Occupancy
46.70
%
 
—
 %
 
46.70
%
 
—
%
 
50.14
 %
 
50.14
%
 
—
 %
 
(6.86
)%
 
ADR
$
469.50

 
$
—

 
$
469.50

 
$
—

 
$
482.89

 
$
482.89

 
—
 %
 
(2.77
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PHILADELPHIA COURTYARD DOWNTOWN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
7,255

 
$
—

 
$
7,255

 
$
6,250

 
$
—

 
$
6,250

 
16.08
 %
 
16.08
 %
 
Total hotel revenue
$
8,720

 
$
—

 
$
8,720

 
$
7,580

 
$
—

 
$
7,580

 
15.04
 %
 
15.04
 %
 
Hotel EBITDA
$
3,518

 
$
—

 
$
3,518

 
$
2,794

 
$
—

 
$
2,794

 
25.91
 %
 
25.91
 %
 
Hotel EBITDA margin
40.34
%
 
 
 
40.34
%
 
36.86
%
 
 
 
36.86
%
 
3.48
 %
 
3.48
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
158.04

 
$
—

 
$
158.04

 
$
136.15

 
$
—

 
$
136.15

 
16.08
 %
 
16.08
 %
 
Occupancy
81.69
%
 
—
 %
 
81.69
%
 
79.86
%
 
—
 %
 
79.86
%
 
2.29
 %
 
2.29
 %
 
ADR
$
193.47

 
$
—

 
$
193.47

 
$
170.49

 
$
—

 
$
170.49

 
13.48
 %
 
13.48
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PLANO MARRIOTT LEGACY TOWN CENTER
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
1,858

 
$
(1,858
)
 
$
—

 
$
4,642

 
$
(4,642
)
 
$
—

 
(59.97
)%
 
—
 %
 
Total hotel revenue
$
2,942

 
$
(2,942
)
 
$
—

 
$
7,848

 
$
(7,848
)
 
$
—

 
(62.51
)%
 
—
 %
 
Hotel EBITDA
$
1,076

 
$
(1,076
)
 
$
—

 
$
2,698

 
$
(2,698
)
 
$
—

 
(60.12
)%
 
—
 %
 
Hotel EBITDA margin
36.57
%
 
 
 
—
%
 
34.38
%
 
 
 
—
%
 
2.19
 %
 
—
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
148.30

 
$
(148.30
)
 
$
—

 
$
124.89

 
$
(124.89
)
 
$
—

 
18.74
 %
 
—
 %
 
Occupancy
77.32
%
 
(77.32
)%
 
—
%
 
67.98
%
 
(67.98
)%
 
—
%
 
13.74
 %
 
—
 %
 
ADR
$
191.81

 
$
(191.81
)
 
$
—

 
$
183.71

 
$
(183.71
)
 
$
—

 
4.41
 %
 
—
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SAN FRANCISCO COURTYARD DOWNTOWN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
7,392

 
$
—

 
$
7,392

 
$
8,147

 
$
—

 
$
8,147

 
(9.27
)%
 
(9.27
)%
 
Total hotel revenue
$
8,529

 
$
—

 
$
8,529

 
$
9,295

 
$
—

 
$
9,295

 
(8.24
)%
 
(8.24
)%
 
Hotel EBITDA
$
2,436

 
$
—

 
$
2,436

 
$
1,987

 
$
—

 
$
1,987

 
22.60
 %
 
22.60
 %
 
Hotel EBITDA margin
28.56
%
 
 
 
28.56
%
 
21.38
%
 
 
 
21.38
%
 
7.18
 %
 
7.18
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
196.93

 
$
—

 
$
196.93

 
$
218.63

 
$
—

 
$
218.63

 
(9.93
)%
 
(9.93
)%
 
Occupancy
77.26
%
 
—
 %
 
77.26
%
 
88.07
%
 
—
 %
 
88.07
%
 
(12.27
)%
 
(12.27
)%
 
ADR
$
254.89

 
$
—

 
$
254.89

 
$
248.26

 
$
—

 
$
248.26

 
2.67
 %
 
2.67
 %

14



 
 
Three Months Ended December 31,
 
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Comparable
 
 
2017
 
2017
 
2017
 
2016
 
2016
 
2016
 
% Variance
 
% Variance
SEATTLE MARRIOTT WATERFRONT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
6,385

 
$
—

 
$
6,385

 
$
5,693

 
$
—

 
$
5,693

 
12.16
 %
 
12.16
 %
 
Total hotel revenue
$
8,665

 
$
—

 
$
8,665

 
$
8,212

 
$
—

 
$
8,212

 
5.52
 %
 
5.52
 %
 
Hotel EBITDA
$
3,330

 
$
—

 
$
3,330

 
$
3,048

 
$
—

 
$
3,048

 
9.25
 %
 
9.25
 %
 
Hotel EBITDA margin
38.43
%
 
 
 
38.43
%
 
37.12
%
 
 
 
37.12
%
 
1.31
 %
 
1.31
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
192.21

 
$
—

 
$
192.21

 
$
172.85

 
$
—

 
$
172.85

 
11.20
 %
 
11.20
 %
 
Occupancy
82.98
%
 
—
 %
 
82.98
%
 
78.97
%
 
—
 %
 
78.97
%
 
5.08
 %
 
5.08
 %
 
ADR
$
231.63

 
$
—

 
$
231.63

 
$
218.89

 
$
—

 
$
218.89

 
5.82
 %
 
5.82
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ST. THOMAS RITZ-CARLTON
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
1,458

 
$
—

 
$
1,458

 
$
6,141

 
$
—

 
$
6,141

 
(76.26
)%
 
(76.26
)%
 
Total hotel revenue
$
5,128

 
$
—

 
$
5,128

 
$
10,797

 
$
—

 
$
10,797

 
(52.51
)%
 
(52.51
)%
 
Hotel EBITDA
$
2,352

 
$
—

 
$
2,352

 
$
1,189

 
$
—

 
$
1,189

 
97.81
 %
 
97.81
 %
 
Hotel EBITDA margin
45.87
%
 
 
 
45.87
%
 
11.01
%
 
 
 
11.01
%
 
34.86
 %
 
34.86
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
229.69

 
$
—

 
$
229.69

 
$
370.82

 
$
—

 
$
370.82

 
(38.06
)%
 
(38.06
)%
 
Occupancy
75.06
%
 
—
 %
 
75.06
%
 
69.38
%
 
—
 %
 
69.38
%
 
8.19
 %
 
8.19
 %
 
ADR
$
306.00

 
$
—

 
$
306.00

 
$
534.49

 
$
—

 
$
534.49

 
(42.75
)%
 
(42.75
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TAMPA RENAISSANCE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
4,059

 
$
—

 
$
4,059

 
$
3,766

 
$
—

 
$
3,766

 
7.78
 %
 
7.78
 %
 
Total hotel revenue
$
6,082

 
$
—

 
$
6,082

 
$
5,645

 
$
—

 
$
5,645

 
7.74
 %
 
7.74
 %
 
Hotel EBITDA
$
1,778

 
$
—

 
$
1,778

 
$
1,637

 
$
—

 
$
1,637

 
8.61
 %
 
8.61
 %
 
Hotel EBITDA margin
29.23
%
 
 
 
29.23
%
 
29.00
%
 
 
 
29.00
%
 
0.23
 %
 
0.23
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
150.59

 
$
—

 
$
150.59

 
$
139.77

 
$
—

 
$
139.77

 
7.74
 %
 
7.74
 %
 
Occupancy
78.80
%
 
—
 %
 
78.80
%
 
77.38
%
 
—
 %
 
77.38
%
 
1.84
 %
 
1.84
 %
 
ADR
$
191.10

 
$
—

 
$
191.10

 
$
180.63

 
$
—

 
$
180.63

 
5.80
 %
 
5.80
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PRIME PROPERTIES TOTAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
61,803

 
$
(1,858
)
 
$
59,945

 
$
65,066

 
$
2,972

 
$
68,038

 
(5.01
)%
 
(11.89
)%
 
Total hotel revenue
$
92,514

 
$
(2,942
)
 
$
89,572

 
$
93,952

 
$
4,948

 
$
98,900

 
(1.53
)%
 
(9.43
)%
 
Hotel EBITDA
$
28,168

 
$
(1,076
)
 
$
27,092

 
$
26,326

 
$
635

 
$
26,961

 
7.00
 %
 
0.49
 %
 
Hotel EBITDA margin
30.45
%
 
 
 
30.25
%
 
28.02
%
 
 
 
27.26
%
 
2.43
 %
 
2.99
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
186.65

 
$
(148.30
)
 
$
188.15

 
$
191.04

 
$
(241.07
)
 
$
207.27

 
(2.30
)%
 
(9.22
)%
 
Occupancy
77.19
%
 
(77.32
)%
 
77.18
%
 
80.70
%
 
84.50
 %
 
80.56
%
 
(4.35
)%
 
(4.20
)%
 
ADR
$
241.81

 
$
(191.81
)
 
$
243.78

 
$
236.73

 
$
(285.30
)
 
$
257.29

 
2.15
 %
 
(5.25
)%
NOTES:
(1)
The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.
(2)
All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3)
See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.
(4)
Table excludes Seattle Courtyard Downtown which was sold on July 1, 2016.


15



ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY
(in thousands, except operating information)
(unaudited)
 
 
Year Ended December 31,
 
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Comparable
 
 
2017
 
2017
 
2017
 
2016
 
2016
 
2016
 
% Variance
 
% Variance
CAPITAL HILTON WASHINGTON D.C.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
42,325

 
$
—

 
$
42,325

 
$
41,137

 
$
—

 
$
41,137

 
2.89
 %
 
2.89
 %
 
Total hotel revenue
$
59,316

 
$
—

 
$
59,316

 
$
58,612

 
$
—

 
$
58,612

 
1.20
 %
 
1.20
 %
 
Hotel EBITDA
$
17,672

 
$
—

 
$
17,672

 
$
17,422

 
$
—

 
$
17,422

 
1.43
 %
 
1.43
 %
 
Hotel EBITDA margin
29.79
%
 
 
 
29.79
%
 
29.72
%
 
 
 
29.72
%
 
0.07
 %
 
0.07
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
210.83

 
$
—

 
$
210.83

 
$
204.36

 
$
—

 
$
204.36

 
3.17
 %
 
3.17
 %
 
Occupancy
88.63
%
 
—
 %
 
88.63
%
 
88.59
%
 
—
 %
 
88.59
%
 
0.05
 %
 
0.05
 %
 
ADR
$
237.87

 
$
—

 
$
237.87

 
$
230.69

 
$
—

 
$
230.69

 
3.11
 %
 
3.11
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LA JOLLA HILTON TORREY PINES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
24,683

 
$
—

 
$
24,683

 
$
23,564

 
$
—

 
$
23,564

 
4.75
 %
 
4.75
 %
 
Total hotel revenue
$
43,949

 
$
—

 
$
43,949

 
$
42,058

 
$
—

 
$
42,058

 
4.50
 %
 
4.50
 %
 
Hotel EBITDA
$
14,740

 
$
—

 
$
14,740

 
$
12,922

 
$
—

 
$
12,922

 
14.07
 %
 
14.07
 %
 
Hotel EBITDA margin
33.54
%
 
 
 
33.54
%
 
30.72
%
 
 
 
30.72
%
 
2.82
 %
 
2.82
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
171.64

 
$
—

 
$
171.64

 
$
163.41

 
$
—

 
$
163.41

 
5.04
 %
 
5.04
 %
 
Occupancy
83.65
%
 
—
 %
 
83.65
%
 
83.83
%
 
—
 %
 
83.83
%
 
(0.21
)%
 
(0.21
)%
 
ADR
$
205.19

 
$
—

 
$
205.19

 
$
194.93

 
$
—

 
$
194.93

 
5.26
 %
 
5.26
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHICAGO SOFITEL MAGNIFICENT MILE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
24,841

 
$
—

 
$
24,841

 
$
27,026

 
$
—

 
$
27,026

 
(8.08
)%
 
(8.08
)%
 
Total hotel revenue
$
33,302

 
$
—

 
$
33,302

 
$
36,879

 
$
—

 
$
36,879

 
(9.70
)%
 
(9.70
)%
 
Hotel EBITDA
$
5,778

 
$
—

 
$
5,778

 
$
8,400

 
$
—

 
$
8,400

 
(31.21
)%
 
(31.21
)%
 
Hotel EBITDA margin
17.35
%
 
 
 
17.35
%
 
22.78
%
 
 
 
22.78
%
 
(5.43
)%
 
(5.43
)%
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
164.00

 
$
—

 
$
164.00

 
$
177.93

 
$
—

 
$
177.93

 
(7.83
)%
 
(7.83
)%
 
Occupancy
80.92
%
 
—
 %
 
80.92
%
 
82.42
%
 
—
 %
 
82.42
%
 
(1.82
)%
 
(1.82
)%
 
ADR
$
202.66

 
$
—

 
$
202.66

 
$
215.89

 
$
—

 
$
215.89

 
(6.13
)%
 
(6.13
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BARDESSONO HOTEL AND SPA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
13,414

 
$
—

 
$
13,414

 
$
14,047

 
$
—

 
$
14,047

 
(4.51
)%
 
(4.51
)%
 
Total hotel revenue
$
17,701

 
$
—

 
$
17,701

 
$
18,934

 
$
—

 
$
18,934

 
(6.51
)%
 
(6.51
)%
 
Hotel EBITDA
$
4,441

 
$
—

 
$
4,441

 
$
5,029

 
$
—

 
$
5,029

 
(11.69
)%
 
(11.69
)%
 
Hotel EBITDA margin
25.09
%
 
 
 
25.09
%
 
26.56
%
 
 
 
26.56
%
 
(1.47
)%
 
(1.47
)%
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
592.77

 
$
—

 
$
592.77

 
$
619.02

 
$
—

 
$
619.02

 
(4.24
)%
 
(4.24
)%
 
Occupancy
76.96
%
 
—
 %
 
76.96
%
 
84.37
%
 
—
 %
 
84.37
%
 
(8.78
)%
 
(8.78
)%
 
ADR
$
770.19

 
$
—

 
$
770.19

 
$
733.66

 
$
—

 
$
733.66

 
4.98
 %
 
4.98
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
KEY WEST PIER HOUSE RESORT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
17,202

 
$
—

 
$
17,202

 
$
18,766

 
$
—

 
$
18,766

 
(8.33
)%
 
(8.33
)%
 
Total hotel revenue
$
23,232

 
$
—

 
$
23,232

 
$
23,435

 
$
—

 
$
23,435

 
(0.87
)%
 
(0.87
)%
 
Hotel EBITDA
$
10,982

 
$
—

 
$
10,982

 
$
10,229

 
$
—

 
$
10,229

 
7.36
 %
 
7.36
 %
 
Hotel EBITDA margin
47.27
%
 
 
 
47.27
%
 
43.65
%
 
 
 
43.65
%
 
3.62
 %
 
3.62
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
331.87

 
$
—

 
$
331.87

 
$
361.08

 
$
—

 
$
361.08

 
(8.09
)%
 
(8.09
)%
 
Occupancy
77.07
%
 
—
 %
 
77.07
%
 
87.90
%
 
—
 %
 
87.90
%
 
(12.32
)%
 
(12.32
)%
 
ADR
$
430.59

 
$
—

 
$
430.59

 
$
410.79

 
$
—

 
$
410.79

 
4.82
 %
 
4.82
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

16



 
 
Year Ended December 31,
 
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Comparable
 
 
2017
 
2017
 
2017
 
2016
 
2016
 
2016
 
% Variance
 
% Variance
HOTEL YOUNTVILLE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
8,140

 
$
3,473

 
$
11,613

 
$
—

 
$
13,698

 
$
13,698

 
—
 %
 
(15.22
)%
 
Total hotel revenue
$
9,599

 
$
4,276

 
$
13,875

 
$
—

 
$
16,410

 
$
16,410

 
—
 %
 
(15.45
)%
 
Hotel EBITDA
$
3,924

 
$
1,233

 
$
5,157

 
$
—

 
$
6,960

 
$
6,960

 
—
 %
 
(25.91
)%
 
Hotel EBITDA margin
40.88
%
 
 
 
37.17
%
 
—
%
 
 
 
42.41
%
 
40.88
 %
 
(5.24
)%
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
433.00

 
$
333.88

 
$
397.69

 
$
—

 
$
467.82

 
$
467.82

 
—
 %
 
(14.99
)%
 
Occupancy
71.78
%
 
75.52
 %
 
73.11
%
 
—
%
 
86.42
 %
 
86.42
%
 
—
 %
 
(15.40
)%
 
ADR
$
603.21

 
$
442.11

 
$
543.95

 
$
—

 
$
541.31

 
$
541.31

 
—
 %
 
0.49
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PARK HYATT BEAVER CREEK
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
8,753

 
$
10,034

 
$
18,787

 
$
—

 
$
18,777

 
$
18,777

 
—
 %
 
0.05
 %
 
Total hotel revenue
$
21,969

 
$
18,810

 
$
40,779

 
$
—

 
$
40,149

 
$
40,149

 
—
 %
 
1.57
 %
 
Hotel EBITDA
$
2,419

 
$
6,968

 
$
9,387

 
$
—

 
$
9,700

 
$
9,700

 
—
 %
 
(3.23
)%
 
Hotel EBITDA margin
11.01
%
 
 
 
23.02
%
 
—
%
 
 
 
24.16
%
 
11.01
 %
 
(1.14
)%
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
167.51

 
$
586.82

 
$
270.90

 
$
—

 
$
270.02

 
$
270.02

 
—
 %
 
0.33
 %
 
Occupancy
53.94
%
 
83.74
 %
 
61.29
%
 
—
%
 
62.03
 %
 
62.03
%
 
—
 %
 
(1.19
)%
 
ADR
$
310.52

 
$
700.74

 
$
441.98

 
$
—

 
$
435.33

 
$
435.33

 
—
 %
 
1.53
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PHILADELPHIA COURTYARD DOWNTOWN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
26,337

 
$
—

 
$
26,337

 
$
27,260

 
$
—

 
$
27,260

 
(3.39
)%
 
(3.39
)%
 
Total hotel revenue
$
31,862

 
$
—

 
$
31,862

 
$
32,643

 
$
—

 
$
32,643

 
(2.39
)%
 
(2.39
)%
 
Hotel EBITDA
$
12,221

 
$
—

 
$
12,221

 
$
12,557

 
$
—

 
$
12,557

 
(2.68
)%
 
(2.68
)%
 
Hotel EBITDA margin
38.36
%
 
 
 
38.36
%
 
38.47
%
 
 
 
38.47
%
 
(0.11
)%
 
(0.11
)%
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
144.60

 
$
—

 
$
144.60

 
$
149.26

 
$
—

 
$
149.26

 
(3.12
)%
 
(3.12
)%
 
Occupancy
81.83
%
 
—
 %
 
81.83
%
 
81.80
%
 
—
 %
 
81.80
%
 
0.04
 %
 
0.04
 %
 
ADR
$
176.71

 
$
—

 
$
176.71

 
$
182.46

 
$
—

 
$
182.46

 
(3.15
)%
 
(3.15
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PLANO MARRIOTT LEGACY TOWN CENTER
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
16,763

 
$
(16,763
)
 
$
—

 
$
19,899

 
$
(19,899
)
 
$
—

 
(15.76
)%
 
—
 %
 
Total hotel revenue
$
27,250

 
$
(27,250
)
 
$
—

 
$
32,001

 
$
(32,001
)
 
$
—

 
(14.85
)%
 
—
 %
 
Hotel EBITDA
$
9,570

 
$
(9,570
)
 
$
—

 
$
11,021

 
$
(11,021
)
 
$
—

 
(13.17
)%
 
—
 %
 
Hotel EBITDA margin
35.12
%
 
 
 
—
%
 
34.44
%
 
 
 
—
%
 
0.68
 %
 
—
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
136.49

 
$
(136.49
)
 
$
—

 
$
134.58

 
$
(134.58
)
 
$
—

 
1.42
 %
 
—
 %
 
Occupancy
72.76
%
 
(72.76
)%
 
—
%
 
70.57
%
 
(70.57
)%
 
—
%
 
3.10
 %
 
—
 %
 
ADR
$
187.59

 
$
(187.59
)
 
$
—

 
$
190.70

 
$
(190.70
)
 
$
—

 
(1.63
)%
 
—
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SAN FRANCISCO COURTYARD DOWNTOWN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
32,109

 
$
—

 
$
32,109

 
$
36,249

 
$
—

 
$
36,249

 
(11.42
)%
 
(11.42
)%
 
Total hotel revenue
$
36,929

 
$
—

 
$
36,929

 
$
41,365

 
$
—

 
$
41,365

 
(10.72
)%
 
(10.72
)%
 
Hotel EBITDA
$
12,737

 
$
—

 
$
12,737

 
$
12,790

 
$
—

 
$
12,790

 
(0.41
)%
 
(0.41
)%
 
Hotel EBITDA margin
34.49
%
 
 
 
34.49
%
 
30.92
%
 
 
 
30.92
%
 
3.57
 %
 
3.57
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
216.12

 
$
—

 
$
216.12

 
$
244.54

 
$
—

 
$
244.54

 
(11.62
)%
 
(11.62
)%
 
Occupancy
79.93
%
 
—
 %
 
79.93
%
 
89.55
%
 
—
 %
 
89.55
%
 
(10.74
)%
 
(10.74
)%
 
ADR
$
270.38

 
$
—

 
$
270.38

 
$
273.07

 
$
—

 
$
273.07

 
(0.99
)%
 
(0.99
)%

17



 
 
Year Ended December 31,
 
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Comparable
 
 
2017
 
2017
 
2017
 
2016
 
2016
 
2016
 
% Variance
 
% Variance
SEATTLE MARRIOTT WATERFRONT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
31,409

 
$
—

 
$
31,409

 
$
28,748

 
$
—

 
$
28,748

 
9.26
 %
 
9.26
 %
 
Total hotel revenue
$
40,714

 
$
—

 
$
40,714

 
$
37,648

 
$
—

 
$
37,648

 
8.14
 %
 
8.14
 %
 
Hotel EBITDA
$
16,209

 
$
—

 
$
16,209

 
$
15,115

 
$
—

 
$
15,115

 
7.24
 %
 
7.24
 %
 
Hotel EBITDA margin
39.81
%
 
 
 
39.81
%
 
40.15
%
 
 
 
40.15
%
 
(0.34
)%
 
(0.34
)%
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
239.50

 
$
—

 
$
239.50

 
$
219.40

 
$
—

 
$
219.40

 
9.16
 %
 
9.16
 %
 
Occupancy
87.99
%
 
—
 %
 
87.99
%
 
83.07
%
 
—
 %
 
83.07
%
 
5.92
 %
 
5.92
 %
 
ADR
$
272.19

 
$
—

 
$
272.19

 
$
264.10

 
$
—

 
$
264.10

 
3.06
 %
 
3.06
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ST. THOMAS RITZ-CARLTON
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
23,171

 
$
—

 
$
23,171

 
$
27,795

 
$
—

 
$
27,795

 
(16.64
)%
 
(16.64
)%
 
Total hotel revenue
$
43,957

 
$
—

 
$
43,957

 
$
50,278

 
$
—

 
$
50,278

 
(12.57
)%
 
(12.57
)%
 
Hotel EBITDA
$
10,595

 
$
—

 
$
10,595

 
$
8,813

 
$
—

 
$
8,813

 
20.22
 %
 
20.22
 %
 
Hotel EBITDA margin
24.10
%
 
 
 
24.10
%
 
17.53
%
 
 
 
17.53
%
 
6.57
 %
 
6.57
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
442.26

 
$
—

 
$
442.26

 
$
421.90

 
$
—

 
$
421.90

 
4.83
 %
 
4.83
 %
 
Occupancy
79.94
%
 
—
 %
 
79.94
%
 
78.46
%
 
—
 %
 
78.46
%
 
1.89
 %
 
1.89
 %
 
ADR
$
553.27

 
$
—

 
$
553.27

 
$
537.75

 
$
—

 
$
537.75

 
2.89
 %
 
2.89
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TAMPA RENAISSANCE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
16,859

 
$
—

 
$
16,859

 
$
16,384

 
$
—

 
$
16,384

 
2.90
 %
 
2.90
 %
 
Total hotel revenue
$
24,125

 
$
—

 
$
24,125

 
$
23,881

 
$
—

 
$
23,881

 
1.02
 %
 
1.02
 %
 
Hotel EBITDA
$
7,002

 
$
—

 
$
7,002

 
$
6,777

 
$
—

 
$
6,777

 
3.32
 %
 
3.32
 %
 
Hotel EBITDA margin
29.02
%
 
 
 
29.02
%
 
28.38
%
 
 
 
28.38
%
 
0.64
 %
 
0.64
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
157.65

 
$
—

 
$
157.65

 
$
152.79

 
$
—

 
$
152.79

 
3.18
 %
 
3.18
 %
 
Occupancy
81.96
%
 
—
 %
 
81.96
%
 
81.22
%
 
—
 %
 
81.22
%
 
0.91
 %
 
0.91
 %
 
ADR
$
192.34

 
$
—

 
$
192.34

 
$
188.12

 
$
—

 
$
188.12

 
2.24
 %
 
2.24
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PRIME PROPERTIES TOTAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rooms revenue
$
286,006

 
$
(3,256
)
 
$
282,750

 
$
287,844

 
$
5,607

 
$
293,451

 
(0.64
)%
 
(3.65
)%
 
Total hotel revenue
$
413,905

 
$
(4,164
)
 
$
409,741

 
$
405,729

 
$
16,563

 
$
422,292

 
2.02
 %
 
(2.97
)%
 
Hotel EBITDA
$
128,300

 
$
(1,379
)
 
$
126,921

 
$
124,239

 
$
2,475

 
$
126,714

 
3.27
 %
 
0.16
 %
 
Hotel EBITDA margin
31.00
%
 
 
 
30.98
%
 
30.62
%
 
 
 
30.01
%
 
0.38
 %
 
0.97
 %
 
Selected Operating Information:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
206.42

 
$
(34.16
)
 
$
219.15

 
$
205.54

 
$
(59.31
)
 
$
224.71

 
0.43
 %
 
(2.47
)%
 
Occupancy
80.97
%
 
(70.49
)%
 
81.75
%
 
82.94
%
 
78.28
 %
 
83.27
%
 
(2.38
)%
 
(1.83
)%
 
ADR
$
254.92

 
$
(48.46
)
 
$
268.07

 
$
247.83

 
$
(75.76
)
 
$
269.85

 
2.86
 %
 
(0.66
)%
NOTES:
(1)
The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.
(2)
All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3)
See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.
(4)
Table excludes Seattle Courtyard Downtown which was sold on July 1, 2016.


18



ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS
(dollars in thousands)
(unaudited)

 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
2017
 
2017
 
2017
 
2017
 
2017
 
2017
 
2017
 
2017
 
2017
 
2017
 
2017
 
2017
 
4th Quarter
 
4th Quarter
 
4th Quarter
 
3rd Quarter
 
3rd Quarter
 
3rd Quarter
 
2nd Quarter
 
2nd Quarter
 
2nd Quarter
 
1st Quarter
 
1st Quarter
 
1st Quarter
Total Hotel Revenue
$
92,514

 
$
(2,942
)
 
$
89,572

 
$
108,080

 
$
(6,871
)
 
$
101,209

 
$
116,055

 
$
(7,307
)
 
$
108,748

 
$
97,256

 
$
12,956

 
$
110,212

Hotel EBITDA
$
28,168

 
$
(1,076
)
 
$
27,092

 
$
33,030

 
$
(2,402
)
 
$
30,628

 
$
38,371

 
$
(2,474
)
 
$
35,897

 
$
28,731

 
$
4,573

 
$
33,304

Hotel EBITDA Margin
30.45
%
 
 
 
30.25
%
 
30.56
%
 
 
 
30.26
%
 
33.06
%
 
 
 
33.01
%
 
29.54
%
 
 
 
30.22
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA % of Total TTM
22.0
%
 
 
 
21.4
%
 
25.7
%
 
 
 
24.1
%
 
29.9
%
 
 
 
28.3
%
 
22.4
%
 
 
 
26.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
JV Interests in EBITDA
$
1,620

 
$
—

 
$
1,620

 
$
1,618

 
$
—

 
$
1,618

 
$
2,642

 
$
—

 
$
2,642

 
$
2,223

 
$
—

 
$
2,223

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Actual
 
Non-comparable Adjustments
 
Comparable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
2017
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TTM
 
TTM
 
TTM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Hotel Revenue
$
413,905

 
$
(4,164
)
 
$
409,741

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel EBITDA
$
128,300

 
$
(1,379
)
 
$
126,921

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel EBITDA Margin
31.00
%
 
 
 
30.98
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA % of Total TTM
100.0
%
 
 
 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
JV Interests in EBITDA
$
8,103

 
$
—

 
$
8,103

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES:
(1)
The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.
(2)    All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3)    See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.


19



ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
TOTAL ENTERPRISE VALUE
DECEMBER 31, 2017
(in thousands, except share price)
(unaudited)

 
December 31, 2017
End of quarter common shares outstanding
32,120

Partnership units outstanding (common stock equivalents)
4,790

Combined common shares and partnership units outstanding
36,910

Common stock price at quarter end
$
9.73

Market capitalization at quarter end
$
359,134

Series B convertible preferred stock
$
124,146

Debt on balance sheet date
$
826,236

Joint venture partner's share of consolidated debt
$
(47,503
)
Net working capital (see below)
$
(161,359
)
Total enterprise value (TEV)
$
1,100,654

 
 
Ashford Inc. Investment:
 
Common stock owned at end of quarter
195

Common stock price at quarter end
$
93.00

Market value of Ashford Inc. investment
$
18,124

 
 
Cash and cash equivalents
$
131,827

Restricted cash
$
46,142

Accounts receivable, net
$
13,545

Insurance receivable
$
8,825

Prepaid expenses
$
3,525

Due from third-party hotel managers, net
$
3,015

Market value of Ashford Inc. investment
$
18,124

Total current assets
$
225,003




Accounts payable, net & accrued expenses
$
54,143

Dividends payable
$
8,146

Due to affiliates, net
$
1,355

Total current liabilities
$
63,644

 
 
Net working capital*
$
161,359

* Includes the Company's pro rata share of net working capital in joint ventures.

20



ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
ANTICIPATED CAPITAL EXPENDITURES CALENDAR (a)

 
 
2017
2018
 
Rooms
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
 
 
Actual
Actual
Actual
Actual
Estimated
Estimated
Estimated
Estimated
Capital Hilton Washington D.C.
550

 
 
 
x
x
 
x
x
Chicago Sofitel Magnificent Mile
415

x
 
 
x
x
x
 

Key West Pier House Resort
142

 
 
x
x

 


Philadelphia Courtyard Downtown
499

x
 
 
 

 
 
x
San Francisco Courtyard Downtown
405

x
x
x
x
x
x
x
x
St. Thomas Ritz-Carlton
180


 
x
x
x
x
x
x
Total

3
1
3
5
4
3
3
4
(a)
Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2017-2018 are included in this table.

21



Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)

 
2017
 
2017
 
2017
 
2017
 
December 31, 2017
 
4th Quarter
 
3rd Quarter
 
2nd Quarter
 
1st Quarter
 
TTM
Net income (loss)
$
35,206

 
$
10,705

 
$
21,607

 
$
14,951

 
$
82,469

(Income) loss from consolidated entities attributable to noncontrolling interest
(1,035
)
 
(872
)
 
(1,825
)
 
(1,444
)
 
(5,176
)
Net income (loss) attributable to the Company
34,171

 
9,833

 
19,782

 
13,507

 
77,293

Non-property adjustments
(23,720
)
 
1,008

 
—

 
—

 
(22,712
)
Interest income
(13
)
 
(18
)
 
(10
)
 
(10
)
 
(51
)
Interest expense
2,986

 
2,744

 
2,204

 
1,280

 
9,214

Amortization of loan costs
310

 
307

 
271

 
130

 
1,018

Depreciation and amortization
12,705

 
14,134

 
13,468

 
11,851

 
52,158

Income tax expense (benefit)
(607
)
 
(404
)
 
366

 
133

 
(512
)
Non-hotel EBITDA ownership expense
1,301

 
4,554

 
465

 
396

 
6,716

Income (loss) from consolidated entities attributable to noncontrolling interest
1,035

 
872

 
1,825

 
1,444

 
5,176

Hotel EBITDA including amounts attributable to noncontrolling interest
28,168

 
33,030

 
38,371

 
28,731

 
128,300

Non-comparable adjustments
(1,076
)
 
(2,402
)
 
(2,474
)
 
4,573

 
(1,379
)
Comparable hotel EBITDA
$
27,092

 
$
30,628

 
$
35,897

 
$
33,304

 
$
126,921



22

Exhibit 1


ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)
 
Three Months Ended December 31, 2017
 
Capital Hilton Washington D.C.
 
La Jolla Hilton Torrey Pines
 
Chicago Sofitel Magnificent Mile
 
Bardessono Hotel & Spa
 
Key West Pier House Resort
 
Hotel Yountville
 
Park Hyatt Beaver Creek
 
Philadelphia Courtyard Downtown
 
Plano Marriott Legacy Town Center
 
San Francisco Courtyard Downtown
 
Seattle Courtyard Downtown
 
Seattle Marriott Waterfront
 
St. Thomas Ritz-Carlton
 
Tampa Renaissance
 
Hotel Total
 
Corporate / Allocated
 
Ashford Hospitality Prime, Inc.
Net income (loss)
$
2,003

 
$
1,921

 
$
(502
)
 
$
(745
)
 
$
2,416

 
$
(744
)
 
$
(484
)
 
$
1,927

 
$
24,587

 
$
512

 
$
—

 
$
2,240

 
$
1,226

 
$
849

 
$
35,206

 
$
(6,762
)
 
$
28,444

(Income) loss from consolidated entities attributable to noncontrolling interest
(534
)
 
(501
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(1,035
)
 
507

 
(528
)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(2,996
)
 
(2,996
)
Net income (loss) attributable to the Company
1,469

 
1,420

 
(502
)
 
(745
)
 
2,416

 
(744
)
 
(484
)
 
1,927

 
24,587

 
512

 
—

 
2,240

 
1,226

 
849

 
34,171

 
(9,251
)
 
24,920

Non-property adjustments
—

 
—

 
—

 
—

 
505

 
—

 
—

 
—

 
(23,797
)
 
—

 
—

 
—

 
(428
)
 
—

 
(23,720
)
 
23,720

 
—

Interest income
(2
)
 
(6
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(3
)
 
(1
)
 
(1
)
 
(13
)
 
(202
)
 
(215
)
Interest expense
—

 
—

 
733

 
388

 
—

 
499

 
697

 
—

 
—

 
—

 
—

 
—

 
669

 
—

 
2,986

 
6,059

 
9,045

Amortization of loan cost
—

 
—

 
—

 
35

 
—

 
34

 
131

 
—

 
—

 
—

 
—

 
—

 
110

 
—

 
310

 
839

 
1,149

Depreciation and amortization
1,696

 
1,468

 
1,290

 
647

 
712

 
655

 
824

 
1,540

 
135

 
1,486

 
—

 
1,047

 
265

 
940

 
12,705

 
(16
)
 
12,689

Income tax expense (benefit)
—

 
(593
)
 
—

 
—

 
—

 
—

 
—

 
11

 
—

 
—

 
—

 
—

 
(25
)
 
—

 
(607
)
 
(249
)
 
(856
)
Non-hotel EBITDA ownership expense
83

 
(90
)
 
54

 
169

 
(176
)
 
47

 
13

 
40

 
151

 
438

 
—

 
46

 
536

 
(10
)
 
1,301

 
(1,301
)
 
—

Income (loss) from consolidated entities attributable to noncontrolling interest
534

 
501

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1,035

 
(1,035
)
 
—

Hotel EBITDA including amounts attributable to noncontrolling interest
3,780

 
2,700

 
1,575

 
494

 
3,457

 
491

 
1,181

 
3,518

 
1,076

 
2,436

 
—

 
3,330

 
2,352

 
1,778

 
28,168

 
18,564

 
46,732

Less: EBITDA adjustments attributable to noncontrolling interest
(411
)
 
(174
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(585
)
 
(505
)
 
(1,090
)
(Income) loss from consolidated entities attributable to noncontrolling interest
(534
)
 
(501
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(1,035
)
 
1,035

 
—

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
2,996

 
2,996

Hotel EBITDA attributable to the Company and OP unitholders
$
2,835

 
$
2,025

 
$
1,575

 
$
494

 
$
3,457

 
$
491

 
$
1,181

 
$
3,518

 
$
1,076

 
$
2,436

 
$
—

 
$
3,330

 
$
2,352

 
$
1,778

 
$
26,548

 
$
22,090

 
$
48,638

Non-comparable adjustments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(1,076
)
 
—

 
—

 
—

 
—

 
—

 
(1,076
)
 
 
 
 
Comparable hotel EBITDA
$
3,780

 
$
2,700

 
$
1,575

 
$
494

 
$
3,457

 
$
491

 
$
1,181

 
$
3,518

 
$
—

 
$
2,436

 
$
—

 
$
3,330

 
$
2,352

 
$
1,778

 
$
27,092

 
 
 
 
ALL HOTELS NOT UNDER RENOVATION:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel EBITDA including amounts attributable to noncontrolling interest
$
—

 
$
2,700

 
$
—

 
$
494

 
$
—

 
$
491

 
$
1,181

 
$
3,518

 
$
1,076

 
$
—

 
$
—

 
$
3,330

 
$
—

 
$
1,778

 
$
14,568

 
 
 
 
Non-comparable adjustments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(1,076
)
 
—

 
—

 
—

 
—

 
—

 
(1,076
)
 
 
 
 
Comparable hotel EBITDA
$
—

 
$
2,700

 
$
—

 
$
494

 
$
—

 
$
491

 
$
1,181

 
$
3,518

 
$
—

 
$
—

 
$
—

 
$
3,330

 
$
—

 
$
1,778

 
$
13,492

 
 
 
 
NOTES:
(1)
The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.
(2)    All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3)
Excluded Hotels Under Renovation:
Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


23

Exhibit 1


ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)
 
Three Months Ended December 31, 2016
 
Capital Hilton Washington D.C.
 
La Jolla Hilton Torrey Pines
 
Chicago Sofitel Magnificent Mile
 
Bardessono Hotel & Spa
 
Key West Pier House Resort
 
Hotel Yountville
 
Park Hyatt Beaver Creek
 
Philadelphia Courtyard Downtown
 
Plano Marriott Legacy Town Center
 
San Francisco Courtyard Downtown
 
Seattle Courtyard Downtown
 
Seattle Marriott Waterfront
 
St. Thomas Ritz-Carlton
 
Tampa Renaissance
 
Hotel Total
 
Corporate / Allocated
 
Ashford Hospitality Prime, Inc.
Net income (loss)
$
2,448

 
$
1,204

 
$
586

 
$
663

 
$
1,781

 
$
—

 
$
—

 
$
818

 
$
1,533

 
$
1,160

 
$
—

 
$
2,078

 
$
(353
)
 
$
697

 
$
12,615

 
$
(11,770
)
 
$
845

(Income) loss from consolidated entities attributable to noncontrolling interest
(645
)
 
(326
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(971
)
 
435

 
(536
)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
95

 
95

Net income (loss) attributable to the Company
1,803

 
878

 
586

 
663

 
1,781

 
—

 
—

 
818

 
1,533

 
1,160

 
—

 
2,078

 
(353
)
 
697

 
11,644

 
(11,240
)
 
404

Non-property adjustments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
1

 
(1
)
 
—

Interest income
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(1
)
 
(1
)
 
(4
)
 
—

 
(3
)
 
(1
)
 
—

 
(10
)
 
(25
)
 
(35
)
Interest expense
—

 
—

 
586

 
—

 
—

 
—

 
—

 
496

 
—

 
—

 
—

 
—

 
590

 
—

 
1,672

 
7,380

 
9,052

Amortization of loan cost
—

 
—

 
—

 
—

 
—

 
—

 
—

 
8

 
—

 
—

 
—

 
—

 
127

 
—

 
135

 
628

 
763

Depreciation and amortization
1,582

 
1,512

 
951

 
610

 
687

 
—

 
—

 
1,470

 
1,174

 
825

 
—

 
964

 
831

 
949

 
11,555

 
—

 
11,555

Income tax expense (benefit)
29

 
(32
)
 
—

 
—

 
—

 
—

 
—

 
(2
)
 
—

 
—

 
—

 
—

 
(16
)
 
—

 
(21
)
 
573

 
552

Non-hotel EBITDA ownership expense
37

 
106

 
64

 
158

 
1

 
—

 
—

 
5

 
(8
)
 
6

 
—

 
9

 
10

 
(9
)
 
379

 
(379
)
 
—

Income (loss) from consolidated entities attributable to noncontrolling interest
645

 
326

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
971

 
(971
)
 
—

Hotel EBITDA including amounts attributable to noncontrolling interest
4,096

 
2,790

 
2,187

 
1,431

 
2,469

 
—

 
—

 
2,794

 
2,698

 
1,987

 
—

 
3,048

 
1,189

 
1,637

 
26,326

 
(4,035
)
 
22,291

Less: EBITDA adjustments attributable to noncontrolling interest
(379
)
 
(372
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(751
)
 
(388
)
 
(1,139
)
(Income) loss from consolidated entities attributable to noncontrolling interest
(645
)
 
(326
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(971
)
 
971

 
—

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(95
)
 
(95
)
Hotel EBITDA attributable to the Company and OP unitholders
$
3,072

 
$
2,092

 
$
2,187

 
$
1,431

 
$
2,469

 
$
—

 
$
—

 
$
2,794

 
$
2,698

 
$
1,987

 
$
—

 
$
3,048

 
$
1,189

 
$
1,637

 
$
24,604

 
$
(3,547
)
 
$
21,057

Non-comparable adjustments
—

 
—

 
—

 
—

 
—

 
1,567

 
1,766

 
—

 
(2,698
)
 
—

 
—

 
—

 
—

 
—

 
635

 
 
 
 
Comparable hotel EBITDA
$
4,096

 
$
2,790

 
$
2,187

 
$
1,431

 
$
2,469

 
$
1,567

 
$
1,766

 
$
2,794

 
$
—

 
$
1,987

 
$
—

 
$
3,048

 
$
1,189

 
$
1,637

 
$
26,961

 
 
 
 
ALL HOTELS NOT UNDER RENOVATION:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel EBITDA including amounts attributable to noncontrolling interest
$
—

 
$
2,790

 
$
—

 
$
1,431

 
$
—

 
$
—

 
$
—

 
$
2,794

 
$
2,698

 
$
—

 
$
—

 
$
3,048

 
$
—

 
$
1,637

 
$
14,398

 
 
 
 
Non-comparable adjustments
—

 
—

 
—

 
—

 
—

 
1,567

 
1,766

 
—

 
(2,698
)
 
—

 
—

 
—

 
—

 
—

 
635

 
 
 
 
Comparable hotel EBITDA
$
—

 
$
2,790

 
$
—

 
$
1,431

 
$
—

 
$
1,567

 
$
1,766

 
$
2,794

 
$
—

 
$
—

 
$
—

 
$
3,048

 
$
—

 
$
1,637

 
$
15,033

 
 
 
 
NOTES:
(1)
The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.
(2)    All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3)
Excluded Hotels Under Renovation:
Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton


24

Exhibit 1


ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)
 
Year Ended December 31, 2017
 
Capital Hilton Washington D.C.
 
La Jolla Hilton Torrey Pines
 
Chicago Sofitel Magnificent Mile
 
Bardessono Hotel & Spa
 
Key West Pier House Resort
 
Hotel Yountville
 
Park Hyatt Beaver Creek
 
Philadelphia Courtyard Downtown
 
Plano Marriott Legacy Town Center
 
San Francisco Courtyard Downtown
 
Seattle Courtyard Downtown
 
Seattle Marriott Waterfront
 
St. Thomas Ritz-Carlton
 
Tampa Renaissance
 
Hotel Total
 
Corporate / Allocated
 
Ashford Hospitality Prime, Inc.
Net income (loss)
$
10,489

 
$
9,333

 
$
(1,613
)
 
$
640

 
$
6,235

 
$
803

 
$
(2,546
)
 
$
5,884

 
$
29,398

 
$
7,275

 
$
10

 
$
11,999

 
$
1,329

 
$
3,233

 
$
82,469

 
$
(54,145
)
 
$
28,324

(Income) loss from consolidated entities attributable to noncontrolling interest
(2,754
)
 
(2,422
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(5,176
)
 
1,912

 
(3,264
)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(2,038
)
 
(2,038
)
Net income (loss) attributable to the Company
7,735

 
6,911

 
(1,613
)
 
640

 
6,235

 
803

 
(2,546
)
 
5,884

 
29,398

 
7,275

 
10

 
11,999

 
1,329

 
3,233

 
77,293

 
(54,271
)
 
23,022

Non-property adjustments
—

 
—

 
—

 
—

 
823

 
—

 
—

 
—

 
(23,797
)
 
—

 
—

 
—

 
252

 
10

 
(22,712
)
 
22,712

 
—

Interest income
(17
)
 
(12
)
 
—

 
—

 
—

 
—

 
—

 
(1
)
 
—

 
(4
)
 
—

 
(12
)
 
(4
)
 
(1
)
 
(51
)
 
(639
)
 
(690
)
Interest expense
—

 
—

 
2,738

 
573

 
—

 
1,249

 
2,032

 
54

 
—

 
—

 
—

 
—

 
2,568

 
—

 
9,214

 
24,820

 
34,034

Amortization of loan cost
—

 
—

 
—

 
46

 
—

 
78

 
388

 
—

 
—

 
—

 
—

 
—

 
506

 
—

 
1,018

 
3,885

 
4,903

Depreciation and amortization
6,510

 
5,976

 
4,578

 
2,533

 
2,850

 
1,674

 
2,456

 
6,082

 
3,796

 
4,918

 
—

 
4,081

 
2,949

 
3,755

 
52,158

 
104

 
52,262

Income tax expense (benefit)
—

 
(532
)
 
(1
)
 
—

 
—

 
—

 
—

 
22

 
(1
)
 
—

 
—

 
—

 
—

 
—

 
(512
)
 
(10
)
 
(522
)
Non-hotel EBITDA ownership expense
690

 
(25
)
 
76

 
649

 
1,074

 
120

 
89

 
180

 
174

 
548

 
—

 
141

 
2,995

 
5

 
6,716

 
(6,716
)
 
—

Income (loss) from consolidated entities attributable to noncontrolling interest
2,754

 
2,422

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5,176

 
(5,176
)
 
—

Hotel EBITDA including amounts attributable to noncontrolling interest
17,672

 
14,740

 
5,778

 
4,441

 
10,982

 
3,924

 
2,419

 
12,221

 
9,570

 
12,737

 
10

 
16,209

 
10,595

 
7,002

 
128,300

 
(15,291
)
 
113,009

Less: EBITDA adjustments attributable to noncontrolling interest
(1,664
)
 
(1,263
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(2,927
)
 
(1,742
)
 
(4,669
)
(Income) loss from consolidated entities attributable to noncontrolling interest
(2,754
)
 
(2,422
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(5,176
)
 
5,176

 
—

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
2,038

 
2,038

Hotel EBITDA attributable to the Company and OP unitholders
$
13,254

 
$
11,055

 
$
5,778

 
$
4,441

 
$
10,982

 
$
3,924

 
$
2,419

 
$
12,221

 
$
9,570

 
$
12,737

 
$
10

 
$
16,209

 
$
10,595

 
$
7,002

 
$
120,197

 
$
(9,819
)
 
$
110,378

Non-comparable adjustments
—

 
—

 
—

 
—

 
—

 
1,233

 
6,968

 
—

 
(9,570
)
 
—

 
(10
)
 
—

 
—

 
—

 
(1,379
)
 
 
 
 
Comparable hotel EBITDA
$
17,672

 
$
14,740

 
$
5,778

 
$
4,441

 
$
10,982

 
$
5,157

 
$
9,387

 
$
12,221

 
$
—

 
$
12,737

 
$
—

 
$
16,209

 
$
10,595

 
$
7,002

 
$
126,921

 
 
 
 
ALL HOTELS NOT UNDER RENOVATION:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel EBITDA including amounts attributable to noncontrolling interest
$
—

 
$
14,740

 
$
—

 
$
4,441

 
$
—

 
$
3,924

 
$
2,419

 
$
12,221

 
$
9,570

 
$
—

 
$
10

 
$
16,209

 
$
—

 
$
7,002

 
$
70,536

 
 
 
 
Non-comparable adjustments
—

 
—

 
—

 
—

 
—

 
1,233

 
6,968

 
—

 
(9,570
)
 
—

 
(10
)
 
—

 
—

 
—

 
(1,379
)
 
 
 
 
Comparable hotel EBITDA
$
—

 
$
14,740

 
$
—

 
$
4,441

 
$
—

 
$
5,157

 
$
9,387

 
$
12,221

 
$
—

 
$
—

 
$
—

 
$
16,209

 
$
—

 
$
7,002

 
$
69,157

 
 
 
 

HOTEL EBITDA BY LOAN POOL
(in thousands)
(unaudited)
GACC Sofitel - 1 hotel
$
—

 
$
—

 
$
5,778

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
5,778

Credit Agricole Pier House - 1 hotel
—

 
—

 
—

 
—

 
10,982

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
10,982

BAML Bardessono - 1 hotel
—

 
—

 
—

 
4,441

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
4,441

BAML Hotel Yountville - 1 hotel
—

 
—

 
—

 
—

 
—

 
5,157

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5,157

Apollo Ritz-Carlton St Thomas - 1 hotel
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
10,595

 
—

 
10,595

Aareal - 2 hotels
17,672

 
14,740

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
32,412

Morgan Stanley Pool -4 hotels
—

 
—

 
—

 
—

 
—

 
—

 
—

 
12,221

 
—

 
12,737

 
—

 
16,209

 
—

 
7,002

 
48,169

JP Morgan Park Hyatt Beaver Creek -1 hotel
—

 
—

 
—

 
—

 
—

 
—

 
9,387

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
9,387

Total
$
17,672

 
$
14,740

 
$
5,778

 
$
4,441

 
$
10,982

 
$
5,157

 
$
9,387

 
$
12,221

 
$
—

 
$
12,737

 
$
—

 
$
16,209

 
$
10,595

 
$
7,002

 
$
126,921

NOTES:
(1)
The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.
(2)    All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3)
Excluded Hotels Under Renovation:
Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

25

Exhibit 1


ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA
(in thousands)
(unaudited)
 
Year Ended December 31, 2016
 
Capital Hilton Washington D.C.
 
La Jolla Hilton Torrey Pines
 
Chicago Sofitel Magnificent Mile
 
Bardessono Hotel & Spa
 
Key West Pier House Resort
 
Hotel Yountville
 
Park Hyatt Beaver Creek
 
Philadelphia Courtyard Downtown
 
Plano Marriott Legacy Town Center
 
San Francisco Courtyard Downtown
 
Seattle Courtyard Downtown
 
Seattle Marriott Waterfront
 
St. Thomas Ritz-Carlton
 
Tampa Renaissance
 
Hotel Total
 
Corporate / Allocated
 
Ashford Hospitality Prime, Inc.
Net income (loss)
$
11,234

 
$
6,883

 
$
1,766

 
$
1,942

 
$
7,511

 
$
—

 
$
—

 
$
4,434

 
$
6,649

 
$
10,091

 
$
28,725

 
$
11,288

 
$
2,661

 
$
3,019

 
$
96,203

 
$
(71,883
)
 
$
24,320

(Income) loss from consolidated entities attributable to noncontrolling interest
(2,940
)
 
(1,816
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(4,756
)
 
1,651

 
(3,105
)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(1,899
)
 
(1,899
)
Net income (loss) attributable to the Company
8,294

 
5,067

 
1,766

 
1,942

 
7,511

 
—

 
—

 
4,434

 
6,649

 
10,091

 
28,725

 
11,288

 
2,661

 
3,019

 
91,447

 
(72,131
)
 
19,316

Non-property adjustments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(26,359
)
 
—

 
43

 
—

 
(26,316
)
 
26,316

 
—

Interest income
(1
)
 
(1
)
 
—

 
—

 
—

 
—

 
—

 
(3
)
 
(2
)
 
(15
)
 
—

 
(10
)
 
(3
)
 
—

 
(35
)
 
(132
)
 
(167
)
Interest expense
—

 
—

 
2,261

 
—

 
—

 
—

 
—

 
1,977

 
—

 
—

 
—

 
—

 
2,319

 
—

 
6,557

 
31,155

 
37,712

Amortization of loan cost
—

 
—

 
119

 
—

 
—

 
—

 
—

 
31

 
—

 
—

 
—

 
—

 
504

 
—

 
654

 
2,515

 
3,169

Depreciation and amortization
6,269

 
6,008

 
4,152

 
2,398

 
2,703

 
—

 
—

 
5,853

 
4,324

 
2,676

 
834

 
3,803

 
3,147

 
3,730

 
45,897

 
—

 
45,897

Income tax expense (benefit)
29

 
(121
)
 
—

 
—

 
—

 
—

 
—

 
18

 
—

 
—

 
—

 
—

 
(16
)
 
—

 
(90
)
 
1,664

 
1,574

Non-hotel EBITDA ownership expense
(109
)
 
153

 
102

 
689

 
15

 
—

 
—

 
247

 
50

 
38

 
(36
)
 
34

 
158

 
28

 
1,369

 
(1,369
)
 
—

Income (loss) from consolidated entities attributable to noncontrolling interest
2,940

 
1,816

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
4,756

 
(4,756
)
 
—

Hotel EBITDA including amounts attributable to noncontrolling interest
17,422

 
12,922

 
8,400

 
5,029

 
10,229

 
—

 
—

 
12,557

 
11,021

 
12,790

 
3,164

 
15,115

 
8,813

 
6,777

 
124,239

 
(16,738
)
 
107,501

Less: EBITDA adjustments attributable to noncontrolling interest
(1,415
)
 
(1,415
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(2,830
)
 
(1,662
)
 
(4,492
)
(Income) loss from consolidated entities attributable to noncontrolling interest
(2,940
)
 
(1,816
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(4,756
)
 
4,756

 
—

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1,899

 
1,899

Hotel EBITDA attributable to the Company and OP unitholders
$
13,067

 
$
9,691

 
$
8,400

 
$
5,029

 
$
10,229

 
$
—

 
$
—

 
$
12,557

 
$
11,021

 
$
12,790

 
$
3,164

 
$
15,115

 
$
8,813

 
$
6,777

 
$
116,653

 
$
(11,745
)
 
$
104,908

Non-comparable adjustments
—

 
—

 
—

 
—

 
—

 
6,960

 
9,700

 
—

 
(11,021
)
 
—

 
(3,164
)
 
—

 
—

 
—

 
2,475

 
 
 
 
Comparable hotel EBITDA
$
17,422

 
$
12,922

 
$
8,400

 
$
5,029

 
$
10,229

 
$
6,960

 
$
9,700

 
$
12,557

 
$
—

 
$
12,790

 
$
—

 
$
15,115

 
$
8,813

 
$
6,777

 
$
126,714

 
 
 
 
ALL HOTELS NOT UNDER RENOVATION:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel EBITDA including amounts attributable to noncontrolling interest
$
—

 
$
12,922

 
$
—

 
$
5,029

 
$
—

 
$
—

 
$
—

 
$
12,557

 
$
11,021

 
$
—

 
$
3,164

 
$
15,115

 
$
—

 
$
6,777

 
$
66,585

 
 
 
 
Non-comparable adjustments
—

 
—

 
—

 
—

 
—

 
6,960

 
9,700

 
—

 
(11,021
)
 
—

 
(3,164
)
 
—

 
—

 
—

 
2,475

 
 
 
 
Comparable hotel EBITDA
$
—

 
$
12,922

 
$
—

 
$
5,029

 
$
—

 
$
6,960

 
$
9,700

 
$
12,557

 
$
—

 
$
—

 
$
—

 
$
15,115

 
$
—

 
$
6,777

 
$
69,060

 
 
 
 
NOTES:
(1)
The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.
(2)    All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.
Adjustments have been made to the pre-acquisition results as indicated below:
(a) Management fee expense was adjusted to reflect current contractual rates.
(3)
Excluded Hotels Under Renovation:
Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton


26