Date of Report (Date of earliest event reported) | August 2, 2011 |
FelCor Lodging Trust Incorporated | ||
(Exact name of registrant as specified in its charter) | ||
Maryland | 001-14236 | 75-2541756 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
545 E. John Carpenter Frwy., Suite 1300 Irving, Texas | 75062 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code | (972) 444-4900 |
(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit Number | Description of Exhibit | |||
99.1 | Press release issued by FelCor Lodging Trust Incorporated on August 2, 2011, announcing its results of operations for the three and six months ended June 30, 2011. |
FELCOR LODGING TRUST INCORPORATED | |||
Date: August 2, 2011 | By: | /s/ Lester C. Johnson | |
Name: | Lester C. Johnson | ||
Title: | Senior Vice President, Chief Accounting Officer |
Exhibit Number | Description of Exhibit | |||
99.1 | Press release issued by FelCor Lodging Trust Incorporated on August 2, 2011, announcing its results of operations for the three and six months ended June 30, 2011. |
![]() | 545 E. JOHN CARPENTER FREEWAY, SUITE 1300 IRVING, TX 75062 PH: 972-444-4900 F: 972-444-4949 WWW.FELCOR.COM NYSE: FCH |
• | Revenue per available room ("RevPAR") for 67 comparable hotels increased 6.2% for the quarter. |
• | Same-store Hotel EBITDA margin increased 144 basis points for the quarter. Hotel EBITDA increased 11% during the quarter, representing more than two times hotel revenue growth. |
• | Adjusted FFO per share was $0.13 and Adjusted EBITDA was $64.3 million for the quarter. Before asset sales and debt transactions, Adjusted FFO per share would have been $0.16. |
• | Sold six hotels during 2011, including three in July, for gross proceeds of $100 million. |
• | Repaid almost $450 million of debt this year, with proceeds from asset sales and the senior notes and equity offerings, reducing average interest rate by 50 basis points during the quarter. |
• | Purchased the Royalton and Morgans hotels in midtown Manhattan for $140 million. |
• | Net loss was $42.3 million for the quarter. |
• | RevPAR: increasing between 6% and 7.5%; |
• | Adjusted EBITDA: between $207 million and $213 million; |
• | Adjusted FFO per share: between $0.17 and $0.22; |
• | Net loss attributable to FelCor: between $121 million and $115 million; |
• | Interest expense: approximately $141 million; |
• | Capital expenditures: approximately $85 million; and |
• | Weighted average shares and units outstanding: 117.4 million. |
Page | ||
Consolidated Statements of Operations(a) | ||
Consolidated Balance Sheets(a) | ||
Consolidated Debt Summary | ||
Schedule of Encumbered Hotels | ||
Capital Expenditures | ||
Supplemental Financial Data | ||
Portfolio Summary | ||
Hotel Portfolio Composition | ||
Detailed Operating Statistics by Brand | ||
Comparable Hotels Operating Statistics for FelCor's Top Markets | ||
Non-GAAP Financial Measures |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues: | |||||||||||||||
Hotel operating revenue: | |||||||||||||||
Room | $ | 199,188 | $ | 179,004 | $ | 375,168 | $ | 341,835 | |||||||
Food and beverage | 42,576 | 34,756 | 79,711 | 67,411 | |||||||||||
Other operating departments | 14,591 | 13,944 | 26,969 | 26,518 | |||||||||||
Other revenue | 1,011 | 1,007 | 1,236 | 1,372 | |||||||||||
Total revenues | 257,366 | 228,711 | 483,084 | 437,136 | |||||||||||
Expenses: | |||||||||||||||
Hotel departmental expenses: | |||||||||||||||
Room | 52,433 | 46,308 | 99,633 | 89,689 | |||||||||||
Food and beverage | 31,534 | 26,488 | 60,692 | 52,013 | |||||||||||
Other operating departments | 6,651 | 6,191 | 12,549 | 11,996 | |||||||||||
Other property related costs | 67,646 | 61,222 | 133,946 | 120,862 | |||||||||||
Management and franchise fees | 11,849 | 10,970 | 22,332 | 20,699 | |||||||||||
Taxes, insurance and lease expense | 23,563 | 23,595 | 43,621 | 45,245 | |||||||||||
Corporate expenses | 6,910 | 6,510 | 16,447 | 16,357 | |||||||||||
Depreciation and amortization | 34,011 | 34,158 | 67,861 | 68,639 | |||||||||||
Impairment loss | 11,706 | — | 11,706 | — | |||||||||||
Other expenses | 1,616 | 801 | 2,247 | 1,362 | |||||||||||
Total operating expenses | 247,919 | 216,243 | 471,034 | 426,862 | |||||||||||
Operating income | 9,447 | 12,468 | 12,050 | 10,274 | |||||||||||
Interest expense, net | (34,875 | ) | (35,856 | ) | (68,348 | ) | (70,582 | ) | |||||||
Debt extinguishment | (23,660 | ) | 46,186 | (23,905 | ) | 46,186 | |||||||||
Gain on involuntary conversion, net | 21 | — | 171 | — | |||||||||||
Income (loss) before equity in loss from unconsolidated entities | (49,067 | ) | 22,798 | (80,032 | ) | (14,122 | ) | ||||||||
Equity in income (loss) from unconsolidated entities | 31 | 286 | (1,552 | ) | (1,188 | ) | |||||||||
Income (loss) from continuing operations | (49,036 | ) | 23,084 | (81,584 | ) | (15,310 | ) | ||||||||
Discontinued operations | 6,639 | (1,094 | ) | 7,461 | (25,642 | ) | |||||||||
Net income (loss) | (42,397 | ) | 21,990 | (74,123 | ) | (40,952 | ) | ||||||||
Net income attributable to noncontrolling interests in other partnerships | (51 | ) | (325 | ) | (109 | ) | (96 | ) | |||||||
Net loss (income) attributable to redeemable noncontrolling interests in FelCor LP | 183 | (51 | ) | 303 | 274 | ||||||||||
Net income (loss) attributable to FelCor | (42,265 | ) | 21,614 | (73,929 | ) | (40,774 | ) | ||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | (19,356 | ) | (19,356 | ) | |||||||
Net income (loss) attributable to FelCor common stockholders | $ | (51,943 | ) | $ | 11,936 | $ | (93,285 | ) | $ | (60,130 | ) | ||||
Basic and diluted per common share data: | |||||||||||||||
Income (loss) from continuing operations | $ | (0.48 | ) | $ | 0.19 | $ | (0.92 | ) | $ | (0.53 | ) | ||||
Net income (loss) | $ | (0.42 | ) | $ | 0.17 | $ | (0.85 | ) | $ | (0.92 | ) | ||||
Basic and diluted weighted average common shares outstanding | 122,992 | 66,531 | 109,249 | 65,014 |
June 30, | December 31, | ||||||
2011 | 2010 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $964,606 and $982,564 at June 30, 2011 and December 31, 2010, respectively | $ | 1,998,232 | $ | 1,985,779 | |||
Investment in unconsolidated entities | 72,733 | 75,920 | |||||
Hotels held for sale | 43,846 | — | |||||
Cash and cash equivalents | 231,049 | 200,972 | |||||
Restricted cash | 41,609 | 16,702 | |||||
Accounts receivable, net of allowance for doubtful accounts of $344 and $696 at June 30, 2011 and December 31, 2010, respectively | 39,266 | 27,851 | |||||
Deferred expenses, net of accumulated amortization of $11,850 and $17,892 at June 30, 2011 and December 31, 2010, respectively | 31,811 | 19,940 | |||||
Other assets | 34,281 | 32,271 | |||||
Total assets | $ | 2,492,827 | $ | 2,359,435 | |||
Liabilities and Equity | |||||||
Debt, net of discount of $36,740 and $53,193 at June 30, 2011 and December 31, 2010, respectively | $ | 1,612,106 | $ | 1,548,309 | |||
Distributions payable | 76,293 | 76,293 | |||||
Accrued expenses and other liabilities | 142,967 | 144,451 | |||||
Total liabilities | 1,831,366 | 1,769,053 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests in FelCor LP, 640 and 285 units issued and outstanding at June 30, 2011 and December 31, 2010, respectively | 3,887 | 2,004 | |||||
Equity: | |||||||
Preferred stock, $0.01 par value, 20,000 shares authorized: | |||||||
Series A Cumulative Convertible Preferred Stock, 12,880 shares, liquidation value of $322,011, issued and outstanding at June 30, 2011 and December 31, 2010 | 309,362 | 309,362 | |||||
Series C Cumulative Redeemable Preferred Stock, 68 shares, liquidation value of $169,950, issued and outstanding at June 30, 2011 and December 31, 2010 | 169,412 | 169,412 | |||||
Common stock, $0.01 par value, 200,000 shares authorized and 124,569 shares issued at June 30, 2011, and 101,038 shares issued, including shares in treasury, at December 31, 2010 | 1,246 | 1,010 | |||||
Additional paid-in capital | 2,350,883 | 2,190,308 | |||||
Accumulated other comprehensive income | 27,931 | 26,457 | |||||
Accumulated deficit | (2,221,290 | ) | (2,054,625 | ) | |||
Less: Common stock in treasury, at cost, of 4,156 shares at December 31, 2010 | — | (73,341 | ) | ||||
Total FelCor stockholders’ equity | 637,544 | 568,583 | |||||
Noncontrolling interests in other partnerships | 20,030 | 19,795 | |||||
Total equity | 657,574 | 588,378 | |||||
Total liabilities and equity | $ | 2,492,827 | $ | 2,359,435 |
Encumbered Hotels | Interest Rate (%) | Maturity Date | June 30, 2011 | December 31, 2010 | |||||||||||||
Line of credit(a) | 11 hotels | L + 4.50 | August 2014(b) | $ | — | $ | — | ||||||||||
Mortgage debt | |||||||||||||||||
Mortgage debt(c) | 10 hotels | L + 0.93 | (d) | November 2011 | 204,714 | 250,000 | |||||||||||
Mortgage debt(e) | 9 hotels | L + 5.10 | (f) | April 2015 | 211,968 | 212,000 | |||||||||||
Mortgage debt | 7 hotels | 9.02 | April 2014 | 110,973 | 113,220 | ||||||||||||
Mortgage debt | 5 hotels | (g) | 6.66 | June - August 2014 | 68,300 | 69,206 | |||||||||||
Mortgage debt(h) | 1 hotel | L + 1.50 | June 2012 | 24,000 | 27,770 | ||||||||||||
Mortgage debt | 1 hotel | 5.81 | July 2016 | 11,100 | 11,321 | ||||||||||||
Other | — | 4.25 | August 2011 | 791 | 524 | ||||||||||||
Senior notes | |||||||||||||||||
Senior secured notes | 6 hotels | 6.75 | June 2019 | 525,000 | — | ||||||||||||
Senior secured notes(i) | 14 hotels | 10.00 | October 2014 | 455,260 | 582,821 | ||||||||||||
Retired debt | — | — | — | — | 281,447 | ||||||||||||
Total | 64 hotels | $ | 1,612,106 | $ | 1,548,309 |
(a) | We currently have full availability under our $225 million line of credit. |
(b) | The line of credit can be extended for one year (to 2015), subject to satisfying certain conditions. |
(c) | $26.5 million was repaid on this note after June 30, 2011 from proceeds of a hotel sale. |
(d) | We purchased an interest rate cap ($250 million notional amount) that caps LIBOR at 7.8% and expires November 2011. |
(e) | $8.6 million was repaid on this note after June 30, 2011 from proceeds of a hotel sale. |
(f) | LIBOR (for this loan) is subject to a 3% floor. We purchased an interest rate cap ($212 million notional amount) that caps LIBOR at 5.0% and expires May 2012. |
(g) | The hotels securing this debt are subject to separate loan agreements and are not cross-collateralized. |
(h) | This note was repaid after June 30, 2011. |
(i) | $492 million in aggregate principal outstanding (after redemption of $144 million in aggregate principal in June 2011) and were initially sold at a discount that provided an effective yield of 12.875% before transaction costs. |
June 30, 2011 | ||||||||
Consolidated Debt | Balance | Encumbered Hotels | ||||||
Line of credit | $ | — | Boca Raton - ES, Charlotte SouthPark - DT, Dana Point - DTGS, Houston Medical Center - HI, Myrtle Beach - HLT, Mandalay Beach - ES, Nashville Airport - ES, Philadelphia Independence Mall - HI, Pittsburgh University Center - HI, Santa Barbara Goleta - HI and Santa Monica at the Pier - HI | |||||
CMBS debt | $ | 205 | Anaheim - ES, Bloomington - ES, Charleston Mills House - HI, Dallas DFW South - ES, Deerfield Beach - ES, Jacksonville - ES, Dallas Love Field - ES, Raleigh/Durham - DTGS, San Antonio Airport - HI and Tampa Rocky Point - DTGS | |||||
Mortgage debt | $ | 212 | Atlanta Buckhead - ES, Atlanta Galleria - SS, Boston Marlboro - ES, Burlington - SH, Corpus Christi - ES, Ft. Lauderdale Cypress Creek - SS, Orlando South - ES, Philadelphia Society Hill - SH and South San Francisco - ES | |||||
Mortgage debt | $ | 111 | Baton Rouge - ES, Birmingham - ES, Ft. Lauderdale - ES, Miami Airport - ES, Milpitas - ES, Minneapolis Airport - ES and Napa Valley - ES | |||||
CMBS debt(a) | $ | 68 | Atlanta Airport - ES, Austin - DTGS, BWI Airport - ES, Orlando Airport - HI and Phoenix Biltmore - ES | |||||
CMBS debt | $ | 24 | New Orleans Convention Center - ES | |||||
CMBS debt | $ | 11 | Indianapolis North - ES | |||||
Senior secured notes | $ | 525 | Boston Copley - FMT, Los Angeles International Airport - ES, Indian Wells Esmeralda Resort & Spa - REN, St. Petersburg Vinoy Resort & Golf Club - REN, Morgans and Royalton | |||||
Senior secured notes | $ | 455 | Atlanta Airport - SH, Boston Beacon Hill - HI, Dallas Market Center - ES, Myrtle Beach Resort - ES, Nashville Opryland -Airport - HI, New Orleans French Quarter - HI, Orlando North - ES, Orlando Walt Disney World® - DTGS, San Diego on the Bay - HI, San Francisco Waterfront - ES, San Francisco Fisherman's Wharf - HI, San Francisco Union Square - MAR, Toronto Airport - HI and Toronto Yorkdale - HI |
(a) | The hotels under this debt are subject to separate loan agreements and are not cross-collateralized. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Improvements and additions to majority-owned hotels | $ | 20,206 | $ | 10,194 | $ | 35,244 | $ | 18,393 | |||||||
Partners' pro rata share of additions to consolidated joint venture hotels | (251 | ) | (87 | ) | (440 | ) | (122 | ) | |||||||
Pro rata share of additions to unconsolidated hotels | 339 | 543 | 1,472 | 970 | |||||||||||
Total additions to hotels(a) | $ | 20,294 | $ | 10,650 | $ | 36,276 | $ | 19,241 |
June 30, | December 31, | ||||||
Total Enterprise Value | 2011 | 2010 | |||||
Common shares outstanding | 124,569 | 96,882 | |||||
Units outstanding | 640 | 285 | |||||
Combined shares and units outstanding | 125,209 | 97,167 | |||||
Common stock price | $ | 5.33 | $ | 7.04 | |||
Market capitalization | $ | 667,364 | $ | 684,056 | |||
Series A preferred stock | 309,362 | 309,362 | |||||
Series C preferred stock | 169,412 | 169,412 | |||||
Consolidated debt | 1,612,106 | 1,548,309 | |||||
Noncontrolling interests of consolidated debt | (2,934 | ) | (3,754 | ) | |||
Pro rata share of unconsolidated debt | 76,447 | 77,295 | |||||
Cash and cash equivalents | (231,049 | ) | (200,972 | ) | |||
Total enterprise value | $ | 2,600,708 | $ | 2,583,708 |
Description | Hotels | Rooms | |||||
Comparable hotels at June 30, 2011 | 67 | 19,513 | |||||
Hotels marketed for sale | 8 | 2,397 | |||||
Same-store hotels | 75 | 21,910 | |||||
Hotels acquired in 2011 (Royalton, Morgans) | 2 | 282 | |||||
Discontinued operations (sold in July) | 3 | 732 | |||||
Consolidated hotels | 80 | 22,924 | |||||
Unconsolidated hotels | 1 | 171 | |||||
Total hotels at June 30, 2011 | 81 | 23,095 | |||||
Hotels sold July | (3 | ) | (732 | ) | |||
Hotels owned at August 1, 2011 | 78 | 22,363 |
Brand | Hotels | Rooms | % of Total Rooms | % of 2010 Hotel EBITDA(a) | ||||||||||||
Embassy Suites Hotels | 37 | 9,757 | 50 | 58 | ||||||||||||
Holiday Inn | 13 | 4,338 | 22 | 19 | ||||||||||||
Doubletree and Hilton | 8 | 1,856 | 10 | 10 | ||||||||||||
Sheraton and Westin | 5 | 1,858 | 9 | 8 | ||||||||||||
Renaissance and Marriott | 3 | 1,321 | 7 | 3 | ||||||||||||
Fairmont | 1 | 383 | 2 | 2 | (b) | |||||||||||
Market | ||||||||||||||||
South Florida | 5 | 1,439 | 7 | 8 | ||||||||||||
Los Angeles area | 4 | 899 | 5 | 7 | ||||||||||||
San Francisco area | 6 | 2,138 | 11 | 7 | ||||||||||||
Boston | 3 | 915 | 5 | 5 | ||||||||||||
Atlanta | 3 | 952 | 5 | 5 | ||||||||||||
Philadelphia | 2 | 729 | 4 | 4 | ||||||||||||
Central California Coast | 2 | 408 | 2 | 4 | ||||||||||||
Myrtle Beach | 2 | 640 | 3 | 4 | ||||||||||||
New Orleans | 2 | 744 | 4 | 4 | ||||||||||||
San Antonio | 3 | 874 | 5 | 4 | ||||||||||||
Orlando | 3 | 761 | 4 | 4 | ||||||||||||
Minneapolis | 2 | 528 | 3 | 4 | ||||||||||||
San Diego | 1 | 600 | 3 | 3 | ||||||||||||
Dallas | 2 | 784 | 4 | 3 | ||||||||||||
Other | 27 | 7,102 | 35 | 34 | ||||||||||||
Location | ||||||||||||||||
Urban | 18 | 5,919 | 30 | 33 | ||||||||||||
Suburban | 25 | 6,158 | 32 | 28 | ||||||||||||
Airport | 14 | 4,509 | 23 | 22 | ||||||||||||
Resort | 10 | 2,927 | 15 | 17 |
(a) | Hotel EBITDA is more fully described on page 22. |
(b) | Represents Hotel EBITDA from date of acquisition (August 2010). |
Occupancy (%) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
2011 | 2010 | %Variance | 2011 | 2010 | %Variance | |||||||||||||
Embassy Suites Hotels | 78.7 | 76.6 | 2.8 | 75.5 | 73.9 | 2.2 | ||||||||||||
Holiday Inn | 79.2 | 78.1 | 1.4 | 74.0 | 73.8 | 0.3 | ||||||||||||
Doubletree and Hilton | 75.9 | 75.5 | 0.5 | 69.7 | 69.5 | 0.3 | ||||||||||||
Sheraton and Westin | 71.2 | 70.0 | 1.7 | 69.1 | 67.3 | 2.7 | ||||||||||||
Renaissance and Marriott | 72.8 | 67.8 | 7.4 | 71.9 | 66.6 | 8.0 | ||||||||||||
Fairmont | 84.1 | 84.6 | (0.6 | ) | 68.6 | 68.2 | 0.6 | |||||||||||
Comparable hotels | 77.6 | 75.8 | 2.4 | 73.6 | 72.2 | 2.0 | ||||||||||||
Hotels marketed for sale | 66.0 | 67.8 | (2.7 | ) | 67.2 | 66.4 | 1.1 | |||||||||||
Total same-store hotels | 76.3 | 74.9 | 1.9 | 72.9 | 71.6 | 1.9 | ||||||||||||
ADR ($) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
2011 | 2010 | %Variance | 2011 | 2010 | %Variance | |||||||||||||
Embassy Suites Hotels | 129.86 | 127.12 | 2.2 | 131.46 | 129.48 | 1.5 | ||||||||||||
Holiday Inn | 122.69 | 116.33 | 5.5 | 116.89 | 110.29 | 6.0 | ||||||||||||
Doubletree and Hilton | 126.28 | 118.61 | 6.5 | 126.72 | 116.83 | 8.5 | ||||||||||||
Sheraton and Westin | 109.05 | 106.79 | 2.1 | 109.94 | 105.45 | 4.3 | ||||||||||||
Renaissance and Marriott | 177.78 | 168.37 | 5.6 | 187.10 | 175.96 | 6.3 | ||||||||||||
Fairmont | 268.90 | 253.54 | 6.1 | 242.34 | 223.61 | 8.4 | ||||||||||||
Comparable hotels | 131.86 | 127.13 | 3.7 | 131.29 | 126.25 | 4.0 | ||||||||||||
Hotels marketed for sale | 108.91 | 110.28 | (1.2 | ) | 111.62 | 110.79 | 0.7 | |||||||||||
Total same-store hotels | 129.68 | 125.45 | 3.4 | 129.30 | 124.68 | 3.7 | ||||||||||||
RevPAR ($) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
2011 | 2010 | %Variance | 2011 | 2010 | %Variance | |||||||||||||
Embassy Suites Hotels | 102.22 | 97.32 | 5.0 | 99.25 | 95.63 | 3.8 | ||||||||||||
Holiday Inn | 97.16 | 90.86 | 6.9 | 86.51 | 81.39 | 6.3 | ||||||||||||
Doubletree and Hilton | 95.82 | 89.51 | 7.1 | 88.29 | 81.16 | 8.8 | ||||||||||||
Sheraton and Westin | 77.64 | 74.75 | 3.9 | 75.98 | 70.99 | 7.0 | ||||||||||||
Renaissance and Marriott | 129.46 | 114.15 | 13.4 | 134.50 | 117.12 | 14.8 | ||||||||||||
Fairmont | 226.12 | 214.52 | 5.4 | 166.30 | 152.56 | 9.0 | ||||||||||||
Comparable hotels | 102.28 | 96.34 | 6.2 | 96.68 | 91.19 | 6.0 | ||||||||||||
Hotels marketed for sale | 71.87 | 74.76 | (3.9 | ) | 74.96 | 73.57 | 1.9 | |||||||||||
Total same-store hotels | 98.94 | 93.97 | 5.3 | 94.29 | 89.25 | 5.7 |
Occupancy (%) | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2011 | 2010 | %Variance | 2011 | 2010 | %Variance | ||||||||||||||||||
South Florida | 76.5 | 75.6 | 1.2 | 79.8 | 80.3 | (0.6 | ) | ||||||||||||||||
Los Angeles area | 83.0 | 77.7 | 6.9 | 78.4 | 74.1 | 5.8 | |||||||||||||||||
San Francisco area | 80.7 | 78.8 | 2.4 | 74.5 | 72.1 | 3.4 | |||||||||||||||||
Boston | 84.2 | 84.9 | (0.8 | ) | 76.4 | 75.7 | 0.9 | ||||||||||||||||
Atlanta | 79.4 | 76.8 | 3.4 | 77.1 | 76.3 | 1.2 | |||||||||||||||||
Philadelphia | 82.4 | 80.4 | 2.5 | 70.2 | 70.5 | (0.4 | ) | ||||||||||||||||
Central California Coast | 76.3 | 80.4 | (5.1 | ) | 72.5 | 75.1 | (3.5 | ) | |||||||||||||||
Myrtle Beach | 72.8 | 73.4 | (0.9 | ) | 56.9 | 58.9 | (3.4 | ) | |||||||||||||||
New Orleans | 79.0 | 73.7 | 7.2 | 74.5 | 71.2 | 4.6 | |||||||||||||||||
San Antonio | 75.6 | 76.7 | (1.5 | ) | 74.8 | 75.7 | (1.3 | ) | |||||||||||||||
Orlando | 82.5 | 77.9 | 5.9 | 84.2 | 82.7 | 1.7 | |||||||||||||||||
Minneapolis | 78.9 | 77.6 | 1.7 | 77.1 | 73.7 | 4.6 | |||||||||||||||||
San Diego | 79.3 | 78.8 | 0.7 | 76.6 | 75.2 | 1.9 | |||||||||||||||||
Dallas | 64.4 | 64.7 | (0.5 | ) | 67.0 | 63.1 | 6.2 | ||||||||||||||||
ADR ($) | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2011 | 2010 | %Variance | 2011 | 2010 | %Variance | ||||||||||||||||||
South Florida | 120.27 | 114.69 | 4.9 | 139.85 | 140.49 | (0.5 | ) | ||||||||||||||||
Los Angeles area | 139.67 | 136.03 | 2.7 | 139.01 | 134.27 | 3.5 | |||||||||||||||||
San Francisco area | 139.78 | 129.18 | 8.2 | 137.18 | 126.28 | 8.6 | |||||||||||||||||
Boston | 204.13 | 188.61 | 8.2 | 178.61 | 166.41 | 7.3 | |||||||||||||||||
Atlanta | 103.22 | 102.77 | 0.4 | 104.98 | 103.81 | 1.1 | |||||||||||||||||
Philadelphia | 140.67 | 131.80 | 6.7 | 133.90 | 123.10 | 8.8 | |||||||||||||||||
Central California Coast | 152.74 | 157.51 | (3.0 | ) | 143.86 | 148.58 | (3.2 | ) | |||||||||||||||
Myrtle Beach | 154.56 | 144.16 | 7.2 | 134.64 | 126.35 | 6.6 | |||||||||||||||||
New Orleans | 140.19 | 128.85 | 8.8 | 141.64 | 130.57 | 8.5 | |||||||||||||||||
San Antonio | 94.20 | 98.55 | (4.4 | ) | 94.70 | 98.44 | (3.8 | ) | |||||||||||||||
Orlando | 110.99 | 107.63 | 3.1 | 116.33 | 111.12 | 4.7 | |||||||||||||||||
Minneapolis | 131.30 | 125.63 | 4.5 | 125.85 | 124.06 | 1.4 | |||||||||||||||||
San Diego | 113.59 | 118.10 | (3.8 | ) | 117.64 | 116.68 | 0.8 | ||||||||||||||||
Dallas | 106.50 | 110.58 | (3.7 | ) | 114.77 | 111.42 | 3.0 | ||||||||||||||||
RevPAR ($) | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2011 | 2010 | %Variance | 2011 | 2010 | %Variance | ||||||||||||||||||
South Florida | 92.00 | 86.68 | 6.1 | 111.65 | 112.86 | (1.1 | ) | ||||||||||||||||
Los Angeles area | 115.90 | 105.64 | 9.7 | 108.99 | 99.47 | 9.6 | |||||||||||||||||
San Francisco area | 112.77 | 101.79 | 10.8 | 102.20 | 91.00 | 12.3 | |||||||||||||||||
Boston | 171.97 | 160.18 | 7.4 | 136.54 | 126.04 | 8.3 | |||||||||||||||||
Atlanta | 81.95 | 78.94 | 3.8 | 80.99 | 79.16 | 2.3 | |||||||||||||||||
Philadelphia | 115.84 | 105.94 | 9.3 | 93.93 | 86.74 | 8.3 | |||||||||||||||||
Central California Coast | 116.55 | 126.61 | (7.9 | ) | 104.25 | 111.55 | (6.5 | ) | |||||||||||||||
Myrtle Beach | 112.44 | 105.87 | 6.2 | 76.58 | 74.38 | 3.0 | |||||||||||||||||
New Orleans | 110.77 | 94.97 | 16.6 | 105.57 | 93.01 | 13.5 | |||||||||||||||||
San Antonio | 71.21 | 75.62 | (5.8 | ) | 70.80 | 74.55 | (5.0 | ) | |||||||||||||||
Orlando | 91.61 | 83.87 | 9.2 | 97.89 | 91.94 | 6.5 | |||||||||||||||||
Minneapolis | 103.56 | 97.47 | 6.2 | 97.01 | 91.39 | 6.1 | |||||||||||||||||
San Diego | 90.14 | 93.04 | (3.1 | ) | 90.11 | 87.71 | 2.7 | ||||||||||||||||
Dallas | 68.55 | 71.55 | (4.2 | ) | 76.96 | 70.36 | 9.4 |
Three Months Ended June 30, | |||||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net income (loss) | $ | (42,397 | ) | $ | 21,990 | ||||||||||||||||
Noncontrolling interests | 132 | (376 | ) | ||||||||||||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | |||||||||||||||||
Net income (loss) attributable to FelCor common stockholders | (51,943 | ) | 11,936 | ||||||||||||||||||
Less: undistributed earnings allocated to unvested restricted stock | — | (352 | ) | ||||||||||||||||||
Numerator for basic and diluted income (loss) attributable to common stockholders | (51,943 | ) | 122,992 | (0.42 | ) | 11,584 | 66,531 | 0.17 | |||||||||||||
Depreciation and amortization | 34,011 | — | 0.26 | 34,158 | — | 0.50 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 4,402 | — | 0.04 | 6,566 | — | 0.10 | |||||||||||||||
Gain on sale of hotels, net | (6,660 | ) | — | (0.05 | ) | — | — | — | |||||||||||||
Gain on involuntary conversion, net | (21 | ) | — | — | — | — | — | ||||||||||||||
Noncontrolling interests in FelCor LP | (183 | ) | 433 | — | 51 | 295 | — | ||||||||||||||
Undistributed earnings allocated to restricted stock | — | — | — | 352 | — | 0.01 | |||||||||||||||
Conversion of options and unvested restricted stock | — | — | — | — | 828 | — | |||||||||||||||
FFO | (20,394 | ) | 123,425 | (0.17 | ) | 52,711 | 67,654 | 0.78 | |||||||||||||
Impairment loss | 11,706 | — | 0.09 | — | — | — | |||||||||||||||
Impairment loss, discontinued operations | 598 | — | — | — | — | — | |||||||||||||||
Acquisition costs | 827 | — | 0.01 | — | — | — | |||||||||||||||
Debt extinguishment, including discontinued operations | 23,710 | — | 0.19 | (46,060 | ) | — | (0.68 | ) | |||||||||||||
Conversion of options and unvested restricted stock | — | 855 | 0.01 | — | — | — | |||||||||||||||
Adjusted FFO | $ | 16,447 | 124,280 | $ | 0.13 | $ | 6,651 | 67,654 | $ | 0.10 |
Six Months Ended June 30, | |||||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net loss | $ | (74,123 | ) | $ | (40,952 | ) | |||||||||||||||
Noncontrolling interests | 194 | 178 | |||||||||||||||||||
Preferred dividends | (19,356 | ) | (19,356 | ) | |||||||||||||||||
Net loss attributable to FelCor common stockholders | (93,285 | ) | 109,249 | $ | (0.85 | ) | (60,130 | ) | 65,014 | $ | (0.92 | ) | |||||||||
Depreciation and amortization | 67,861 | — | 0.61 | 68,639 | — | 1.04 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 9,448 | — | 0.09 | 13,346 | — | 0.21 | |||||||||||||||
Noncontrolling interests in FelCor LP | (303 | ) | 359 | — | (274 | ) | 295 | — | |||||||||||||
Gain on sale of hotels, net | (6,660 | ) | — | (0.06 | ) | — | — | — | |||||||||||||
Gain on involuntary conversion, net | (171 | ) | — | — | — | — | — | ||||||||||||||
Gain on sale of unconsolidated entities | — | — | — | (559 | ) | — | (0.01 | ) | |||||||||||||
Conversion of options and unvested restricted stock | — | — | — | — | 651 | — | |||||||||||||||
FFO | (23,110 | ) | 109,608 | (0.21 | ) | 21,022 | 65,960 | 0.32 | |||||||||||||
Impairment loss | 11,706 | — | 0.11 | — | — | — | |||||||||||||||
Impairment loss, discontinued operations | 598 | — | 0.01 | 21,060 | — | 0.32 | |||||||||||||||
Acquisition costs | 946 | — | 0.01 | — | — | — | |||||||||||||||
Debt extinguishment, including discontinued operations | 23,961 | — | 0.22 | (46,060 | ) | — | (0.70 | ) | |||||||||||||
Conversion of options and unvested restricted stock | — | 860 | (0.01 | ) | — | (651 | ) | — | |||||||||||||
Adjusted FFO | $ | 14,101 | 110,468 | $ | 0.13 | $ | (3,978 | ) | 65,309 | $ | (0.06 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Net income (loss) | $ | (42,397 | ) | $ | 21,990 | $ | (74,123 | ) | $ | (40,952 | ) | ||||
Depreciation and amortization | 34,011 | 34,158 | 67,861 | 68,639 | |||||||||||
Depreciation, discontinued operations and unconsolidated entities | 4,402 | 6,566 | 9,448 | 13,346 | |||||||||||
Interest expense | 34,928 | 35,952 | 68,442 | 70,782 | |||||||||||
Interest expense, discontinued operations and unconsolidated entities | 1,462 | 2,529 | 2,964 | 5,543 | |||||||||||
Amortization of stock compensation | 1,774 | 1,642 | 3,577 | 3,257 | |||||||||||
Noncontrolling interests in other partnerships | (51 | ) | (325 | ) | (109 | ) | (96 | ) | |||||||
EBITDA | 34,129 | 102,512 | 78,060 | 120,519 | |||||||||||
Impairment loss | 11,706 | — | 11,706 | — | |||||||||||
Impairment loss, discontinued operations | 598 | — | 598 | 21,060 | |||||||||||
Debt extinguishment, including discontinued operations | 23,710 | (46,060 | ) | 23,961 | (46,060 | ) | |||||||||
Acquisition costs | 827 | — | 946 | — | |||||||||||
Gain on sale of hotels, net | (6,660 | ) | — | (6,660 | ) | — | |||||||||
Gain on involuntary conversion, net | (21 | ) | — | (171 | ) | — | |||||||||
Gain on sale of unconsolidated subsidiary | — | — | — | (559 | ) | ||||||||||
Adjusted EBITDA | 64,289 | 56,452 | 108,440 | 94,960 | |||||||||||
Adjusted EBITDA from discontinued operations | (2,134 | ) | (4,149 | ) | (5,156 | ) | (6,060 | ) | |||||||
Adjusted EBITDA from acquired hotels(a) | (567 | ) | 2,394 | (567 | ) | 315 | |||||||||
Same-store Adjusted EBITDA | 61,588 | 54,697 | 102,717 | 89,215 | |||||||||||
Other revenue | (1,011 | ) | (1,007 | ) | (1,236 | ) | (1,372 | ) | |||||||
Equity in income from unconsolidated entities (excluding interest and depreciation expense) | (4,947 | ) | (4,874 | ) | (8,287 | ) | (7,857 | ) | |||||||
Noncontrolling interests in other partnerships (excluding interest and depreciation expense) | 610 | 935 | 1,237 | 1,327 | |||||||||||
Consolidated hotel lease expense | 10,497 | 10,015 | 18,801 | 17,773 | |||||||||||
Unconsolidated taxes, insurance and lease expense | (1,753 | ) | (1,671 | ) | (3,436 | ) | (3,363 | ) | |||||||
Interest income | (53 | ) | (96 | ) | (94 | ) | (200 | ) | |||||||
Other expenses (excluding acquisition costs) | 789 | 801 | 1,301 | 1,362 | |||||||||||
Corporate expenses (excluding amortization expense of stock compensation) | 5,136 | 4,868 | 12,870 | 13,100 | |||||||||||
Hotel EBITDA | $ | 70,856 | $ | 63,668 | $ | 123,873 | $ | 109,985 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Total revenues | $ | 257,366 | $ | 228,711 | $ | 483,084 | $ | 437,136 | |||||||
Other revenue | (1,011 | ) | (1,007 | ) | (1,236 | ) | (1,372 | ) | |||||||
Hotel operating revenue | 256,355 | 227,704 | 481,848 | 435,764 | |||||||||||
Revenue from acquired hotels(a) | (3,343 | ) | 12,034 | (3,343 | ) | 17,889 | |||||||||
Same-store hotel operating revenue | 253,012 | 239,738 | 478,505 | 453,653 | |||||||||||
Same-store hotel operating expenses | (182,156 | ) | (176,070 | ) | (354,632 | ) | (343,668 | ) | |||||||
Hotel EBITDA | $ | 70,856 | $ | 63,668 | $ | 123,873 | $ | 109,985 | |||||||
Hotel EBITDA margin(b) | 28.0 | % | 26.6 | % | 25.9 | % | 24.2 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Total operating expenses | $ | 247,919 | $ | 216,243 | $ | 471,034 | $ | 426,862 | |||||||
Unconsolidated taxes, insurance and lease expense | 1,753 | 1,671 | 3,436 | 3,363 | |||||||||||
Consolidated hotel lease expense | (10,497 | ) | (10,015 | ) | (18,801 | ) | (17,773 | ) | |||||||
Corporate expenses | (6,910 | ) | (6,510 | ) | (16,447 | ) | (16,357 | ) | |||||||
Depreciation and amortization | (34,011 | ) | (34,158 | ) | (67,861 | ) | (68,639 | ) | |||||||
Impairment loss | (11,706 | ) | — | (11,706 | ) | — | |||||||||
Other expenses | (1,616 | ) | (801 | ) | (2,247 | ) | (1,362 | ) | |||||||
Expenses from acquired hotels(a) | (2,776 | ) | 9,640 | (2,776 | ) | 17,574 | |||||||||
Same-store hotel operating expenses | $ | 182,156 | $ | 176,070 | $ | 354,632 | $ | 343,668 |
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||
Ratio of operating income to total revenues | 3.7 | % | 5.5 | % | 2.5 | % | 2.4 | % | |||
Other revenue | (0.4 | ) | (0.4 | ) | (0.3 | ) | (0.3 | ) | |||
Revenue from acquired hotels(a) | (1.1 | ) | 4.8 | (0.5 | ) | 3.8 | |||||
Unconsolidated taxes, insurance and lease expense | (0.7 | ) | (0.7 | ) | (0.7 | ) | (0.7 | ) | |||
Consolidated hotel lease expense | 4.1 | 4.2 | 3.9 | 3.9 | |||||||
Other expenses | 0.6 | 0.3 | 0.5 | 0.3 | |||||||
Corporate expenses | 2.7 | 2.7 | 3.4 | 3.6 | |||||||
Depreciation and amortization | 13.4 | 14.2 | 14.1 | 15.1 | |||||||
Impairment loss | 4.6 | — | 2.4 | — | |||||||
Expenses from acquired hotels(a) | 1.1 | (4.0 | ) | 0.6 | (3.9 | ) | |||||
Hotel EBITDA margin | 28.0 | % | 26.6 | % | 25.9 | % | 24.2 | % |
Full Year 2011 Guidance | |||||||||||||||
Low Guidance | High Guidance | ||||||||||||||
Dollars | Per Share Amount(a) | Dollars | Per Share Amount(a) | ||||||||||||
Net loss | $ | (121 | ) | $ | (115 | ) | |||||||||
Preferred dividends | (39 | ) | (39 | ) | |||||||||||
Net loss attributable to FelCor common stockholders | (160 | ) | $ | (1.38 | ) | (154 | ) | $ | (1.33 | ) | |||||
Depreciation(b) | 154 | 154 | |||||||||||||
Gain on sale of hotels, net | (8 | ) | (8 | ) | |||||||||||
Noncontrolling interests in FelCor LP | (1 | ) | (1 | ) | |||||||||||
FFO | (15 | ) | $ | (0.13 | ) | (9 | ) | $ | (0.08 | ) | |||||
Debt extinguishment | 22 | 22 | |||||||||||||
Impairment | 12 | 12 | |||||||||||||
Acquisition costs | 1 | 1 | |||||||||||||
Adjusted FFO | $ | 20 | $ | 0.17 | $ | 26 | $ | 0.22 | |||||||
Net loss | $ | (121 | ) | $ | (115 | ) | |||||||||
Depreciation(b) | 154 | 154 | |||||||||||||
Interest expense(b) | 141 | 141 | |||||||||||||
Amortization expense | 7 | 7 | |||||||||||||
Noncontrolling interests in FelCor LP | (1 | ) | (1 | ) | |||||||||||
EBITDA | 180 | 186 | |||||||||||||
Debt extinguishment | 22 | 22 | |||||||||||||
Impairment | 12 | 12 | |||||||||||||
Gain on sale of hotels, net | (8 | ) | (8 | ) | |||||||||||
Acquisition costs | 1 | 1 | |||||||||||||
Adjusted EBITDA | $ | 207 | $ | 213 |
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