Date of Report (Date of earliest event reported) | November 1, 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 November 1, 2011, announcing its results of operations for the three and nine months ended September 30, 2011. |
FELCOR LODGING TRUST INCORPORATED | |||
Date: November 1, 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 November 1, 2011, announcing its results of operations for the three and nine months ended September 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 |
• | Modified our $178 million CMBS loan to extend the maturity date two years, including extensions, beyond the original November 2011 maturity date, and is fully prepayable without penalty. |
• | Revenue per available room ("RevPAR") for 67 comparable hotels increased 5.0%. Excluding two hotels under renovation, same-store RevPAR increased 5.8%. |
• | Same-store Hotel EBITDA margin increased 93 basis points to 24.5% for the quarter. |
• | Adjusted FFO per share was $0.05, and Adjusted EBITDA was $52.0 million. |
• | Sold three hotels in the third quarter and one hotel in October for aggregate gross proceeds of $60.5 million. |
• | Net loss was $23.4 million. |
• | Adjusted EBITDA: between $207 million and $210 million; |
• | Adjusted FFO per share: between $0.17 and $0.19; |
• | Net loss attributable to FelCor: between $124 million and $121 million; |
• | Interest expense: approximately $141 million; |
• | Capital expenditures: approximately $95 million; and |
• | Weighted average shares and units outstanding: 117.3 million. |
Page | ||
Consolidated Statements of Operations(a) | ||
Consolidated Balance Sheets(a) | ||
Consolidated Debt Summary | ||
Schedule of Encumbered Hotels | ||
Capital Expenditures | ||
Supplemental Financial Data | ||
Hotel Groups | ||
Hotel Portfolio Composition | ||
Detailed Operating Statistics by Brand | ||
Comparable Hotels Operating Statistics for FelCor's Top Markets | ||
Non-GAAP Financial Measures |
(a) | Our consolidated statements of operations and balance sheets have been prepared without audit. Certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP have been omitted. The consolidated statements of operations and balance sheets should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent Quarterly Report on Form 10-Q. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues: | |||||||||||||||
Hotel operating revenue: | |||||||||||||||
Room | $ | 196,776 | $ | 177,724 | $ | 568,148 | $ | 516,227 | |||||||
Food and beverage | 32,972 | 30,244 | 112,683 | 97,655 | |||||||||||
Other operating departments | 14,376 | 14,538 | 41,276 | 40,975 | |||||||||||
Other revenue | 1,394 | 1,421 | 2,630 | 2,793 | |||||||||||
Total revenues | 245,518 | 223,927 | 724,737 | 657,650 | |||||||||||
Expenses: | |||||||||||||||
Hotel departmental expenses: | |||||||||||||||
Room | 53,333 | 47,887 | 151,860 | 136,563 | |||||||||||
Food and beverage | 29,106 | 25,472 | 89,798 | 77,485 | |||||||||||
Other operating departments | 6,470 | 6,262 | 18,975 | 18,209 | |||||||||||
Other property-related costs | 69,393 | 63,828 | 202,165 | 183,561 | |||||||||||
Management and franchise fees | 11,320 | 10,703 | 33,434 | 31,208 | |||||||||||
Taxes, insurance and lease expense | 24,625 | 23,199 | 68,085 | 68,263 | |||||||||||
Corporate expenses | 6,258 | 6,564 | 22,705 | 22,921 | |||||||||||
Depreciation and amortization | 33,892 | 33,725 | 101,138 | 101,556 | |||||||||||
Impairment loss | — | 24,127 | 11,706 | 24,127 | |||||||||||
Other expenses | 1,208 | 1,331 | 3,455 | 2,693 | |||||||||||
Total operating expenses | 235,605 | 243,098 | 703,321 | 666,586 | |||||||||||
Operating income | 9,913 | (19,171 | ) | 21,416 | (8,936 | ) | |||||||||
Interest expense, net | (33,556 | ) | (34,453 | ) | (101,904 | ) | (105,035 | ) | |||||||
Debt extinguishment | (213 | ) | (214 | ) | (24,118 | ) | 45,972 | ||||||||
Gain on involuntary conversion, net | 109 | — | 280 | — | |||||||||||
Loss before equity in income (loss) from unconsolidated entities | (23,747 | ) | (53,838 | ) | (104,326 | ) | (67,999 | ) | |||||||
Equity in income (loss) from unconsolidated entities | 249 | 302 | (1,303 | ) | (886 | ) | |||||||||
Loss from continuing operations | (23,498 | ) | (53,536 | ) | (105,629 | ) | (68,885 | ) | |||||||
Discontinued operations | 122 | (35,744 | ) | 8,130 | (61,347 | ) | |||||||||
Net loss | (23,376 | ) | (89,280 | ) | (97,499 | ) | (130,232 | ) | |||||||
Net loss attributable to noncontrolling interests in other partnerships | 378 | 173 | 269 | 77 | |||||||||||
Net loss attributable to redeemable noncontrolling interests in FelCor LP | 166 | 297 | 469 | 571 | |||||||||||
Net loss attributable to FelCor | (22,832 | ) | (88,810 | ) | (96,761 | ) | (129,584 | ) | |||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | (29,034 | ) | (29,034 | ) | |||||||
Net loss attributable to FelCor common stockholders | $ | (32,510 | ) | $ | (98,488 | ) | $ | (125,795 | ) | $ | (158,618 | ) | |||
Basic and diluted per common share data: | |||||||||||||||
Loss from continuing operations | $ | (0.27 | ) | $ | (0.66 | ) | $ | (1.18 | ) | $ | (1.30 | ) | |||
Net loss | $ | (0.26 | ) | $ | (1.04 | ) | $ | (1.10 | ) | $ | (2.11 | ) | |||
Basic and diluted weighted average common shares outstanding | 123,062 | 95,034 | 113,908 | 75,135 |
September 30, | December 31, | ||||||
2011 | 2010 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $977,401 and $982,564 at September 30, 2011 and December 31, 2010, respectively | $ | 1,967,657 | $ | 1,985,779 | |||
Investment in unconsolidated entities | 71,697 | 75,920 | |||||
Hotel held for sale | 14,065 | — | |||||
Cash and cash equivalents | 117,183 | 200,972 | |||||
Restricted cash | 132,797 | 16,702 | |||||
Accounts receivable, net of allowance for doubtful accounts of $422 and $696 at September 30, 2011 and December 31, 2010, respectively | 35,058 | 27,851 | |||||
Deferred expenses, net of accumulated amortization of $13,366 and $17,892 at September 30, 2011 and December 31, 2010, respectively | 30,116 | 19,940 | |||||
Other assets | 28,732 | 32,271 | |||||
Total assets | $ | 2,397,305 | $ | 2,359,435 | |||
Liabilities and Equity | |||||||
Debt, net of discount of $34,444 and $53,193 at September 30, 2011 and December 31, 2010, respectively | $ | 1,552,575 | $ | 1,548,309 | |||
Distributions payable | 76,293 | 76,293 | |||||
Accrued expenses and other liabilities | 137,085 | 144,451 | |||||
Total liabilities | 1,765,953 | 1,769,053 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests in FelCor LP, 636 and 285 units issued and outstanding at September 30, 2011 and December 31, 2010, respectively | 2,954 | 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 September 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 September 30, 2011 and December 31, 2010 | 169,412 | 169,412 | |||||
Common stock, $0.01 par value, 200,000 shares authorized and 124,580 shares issued at September 30, 2011, and 101,038 shares issued, including shares in treasury, at December 31, 2010 | 1,246 | 1,010 | |||||
Additional paid-in capital | 2,352,468 | 2,190,308 | |||||
Accumulated other comprehensive income | 24,414 | 26,457 | |||||
Accumulated deficit | (2,253,808 | ) | (2,054,625 | ) | |||
Less: Common stock in treasury, at cost, of 4,156 shares at December 31, 2010 | — | (73,341 | ) | ||||
Total FelCor stockholders’ equity | 603,094 | 568,583 | |||||
Noncontrolling interests in other partnerships | 25,304 | 19,795 | |||||
Total equity | 628,398 | 588,378 | |||||
Total liabilities and equity | $ | 2,397,305 | $ | 2,359,435 |
Encumbered Hotels | Interest Rate (%) | Maturity Date | September 30, 2011 | December 31, 2010 | |||||||||||||
Line of credit(a) | 11 hotels | L + 4.50 | August 2014(b) | $ | — | $ | — | ||||||||||
Mortgage debt | |||||||||||||||||
Mortgage debt | 9 hotels | L + 0.93 | (c) | November 2011(d) | 178,178 | 250,000 | |||||||||||
Mortgage debt | 8 hotels | L + 5.10 | (e) | April 2015 | 203,192 | 212,000 | |||||||||||
Mortgage debt | 7 hotels | 9.02 | April 2014 | 109,811 | 113,220 | ||||||||||||
Mortgage debt | 5 hotels | (f) | 6.66 | June - August 2014 | 67,848 | 69,206 | |||||||||||
Mortgage debt | 1 hotel | 5.81 | July 2016 | 10,990 | 11,321 | ||||||||||||
Senior notes | |||||||||||||||||
Senior secured notes | 6 hotels | 6.75 | June 2019 | 525,000 | — | ||||||||||||
Senior secured notes(g) | 13 hotels | (h) | 10.00 | October 2014 | 457,556 | 582,821 | |||||||||||
Retired debt | — | — | — | — | 309,741 | ||||||||||||
Total | 60 hotels | $ | 1,552,575 | $ | 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) | We purchased an interest rate cap ($250 million notional amount) that caps LIBOR at 7.8% and expires November 2011. |
(d) | In October 2011, we modified this loan and extended maturity up to two years. In conjunction with the modification, we repaid $20 million of the principal balance, reducing the outstanding balance to $158 million. The new interest rate is L + 2.20%. |
(e) | 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. |
(f) | The hotels securing this debt are subject to separate loan agreements and are not cross-collateralized. |
(g) | These notes have $492 million in aggregate principal outstanding ($144 million in aggregate principal amount was redeemed in June 2011) and were initially sold at a discount that provided an effective yield of 12.875% before transaction costs. |
(h) | One hotel was sold after September 30, 2011. |
September 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 | $ | 178 | Anaheim - ES, Bloomington - ES, Charleston Mills House - HI, Deerfield Beach - ES, Jacksonville - ES, Dallas Love Field - ES, Raleigh/Durham - DTGS, San Antonio Airport - HI and Tampa Rocky Point - DTGS | |||||
Mortgage debt | $ | 203 | Atlanta Buckhead - ES, Atlanta Galleria - SS, Boston Marlboro - ES, Burlington - SH, Ft. Lauderdale Cypress Creek - SS, Orlando South - ES, Philadelphia Society Hill - SH and South San Francisco - ES | |||||
Mortgage debt | $ | 110 | 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 | $ | 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 | $ | 458 | 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 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 | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Improvements and additions to majority-owned hotels | $ | 22,226 | $ | 9,448 | $ | 57,470 | $ | 27,841 | |||||||
Partners' pro rata share of additions to consolidated joint venture hotels | (286 | ) | (81 | ) | (726 | ) | (203 | ) | |||||||
Pro rata share of additions to unconsolidated hotels | 778 | 250 | 2,250 | 1,220 | |||||||||||
Total additions to hotels(a) | $ | 22,718 | $ | 9,617 | $ | 58,994 | $ | 28,858 |
September 30, | December 31, | |||||||
Total Enterprise Value | 2011 | 2010 | ||||||
Common shares outstanding | 124,580 | 96,882 | ||||||
Units outstanding | 636 | 285 | ||||||
Combined shares and units outstanding | 125,216 | 97,167 | ||||||
Common stock price | $ | 2.33 | $ | 7.04 | ||||
Market capitalization | $ | 291,753 | $ | 684,056 | ||||
Series A preferred stock | 309,362 | 309,362 | ||||||
Series C preferred stock | 169,412 | 169,412 | ||||||
Consolidated debt | 1,552,575 | 1,548,309 | ||||||
Noncontrolling interests of consolidated debt | (2,915 | ) | (3,754 | ) | ||||
Pro rata share of unconsolidated debt | 75,282 | 77,295 | ||||||
Cash and cash equivalents | (117,183 | ) | (200,972 | ) | ||||
Total enterprise value | $ | 2,278,286 | $ | 2,583,708 |
Description | Hotels | Rooms | |||||
Comparable hotels at September 30, 2011 | 67 | 19,513 | |||||
Hotels marketed for sale | 7 | 2,153 | |||||
Same-store hotels | 74 | 21,666 | |||||
Hotels acquired in 2011 (Royalton, Morgans) | 2 | 282 | |||||
Discontinued operations (sold in October) | 1 | 244 | |||||
Consolidated hotels | 77 | 22,192 | |||||
Unconsolidated hotels | 1 | 171 | |||||
Hotels owned at September 30, 2011 | 78 | 22,363 | |||||
Hotels sold in October | (1 | ) | (244 | ) | |||
Hotels owned at November 1, 2011 | 77 | 22,119 |
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 | 10 | 8 | ||||||||||||
Renaissance and Marriott | 3 | 1,321 | 7 | 3 | ||||||||||||
Fairmont | 1 | 383 | 1 | 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 20. |
(b) | Represents Hotel EBITDA from date of acquisition (August 2010). |
Occupancy (%) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2011 | 2010 | %Variance | 2011 | 2010 | %Variance | ||||||||||||||
Embassy Suites Hotels | 77.5 | 75.3 | 2.9 | 76.2 | 74.4 | 2.5 | |||||||||||||
Holiday Inn | 79.5 | 77.2 | 3.0 | 75.9 | 75.0 | 1.2 | |||||||||||||
Doubletree and Hilton | 75.2 | 75.9 | (0.9 | ) | 71.5 | 71.6 | (0.1 | ) | |||||||||||
Sheraton and Westin | 66.9 | 70.4 | (5.0 | ) | 68.4 | 68.4 | — | ||||||||||||
Renaissance and Marriott | 63.0 | 62.7 | 0.4 | 68.9 | 65.3 | 5.6 | |||||||||||||
Fairmont | 83.1 | 83.5 | (0.4 | ) | 73.5 | 73.4 | 0.2 | ||||||||||||
Comparable hotels | 75.9 | 74.7 | 1.6 | 74.4 | 73.1 | 1.8 | |||||||||||||
Hotels marketed for sale | 64.5 | 62.7 | 2.9 | 65.7 | 64.9 | 1.1 | |||||||||||||
Total same-store hotels | 74.8 | 73.5 | 1.7 | 73.5 | 72.3 | 1.8 | |||||||||||||
ADR ($) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2011 | 2010 | %Variance | 2011 | 2010 | %Variance | ||||||||||||||
Embassy Suites Hotels | 128.91 | 126.89 | 1.6 | 130.58 | 128.59 | 1.5 | |||||||||||||
Holiday Inn | 128.18 | 121.91 | 5.1 | 120.88 | 114.32 | 5.7 | |||||||||||||
Doubletree and Hilton | 124.48 | 120.40 | 3.4 | 125.93 | 118.10 | 6.6 | |||||||||||||
Sheraton and Westin | 106.69 | 103.43 | 3.1 | 108.87 | 104.75 | 3.9 | |||||||||||||
Renaissance and Marriott | 155.56 | 142.59 | 9.1 | 177.49 | 165.27 | 7.4 | |||||||||||||
Fairmont | 249.60 | 235.78 | 5.9 | 245.10 | 228.28 | 7.4 | |||||||||||||
Comparable hotels | 130.43 | 126.21 | 3.3 | 131.00 | 126.24 | 3.8 | |||||||||||||
Hotels marketed for sale | 106.86 | 102.75 | 4.0 | 109.76 | 108.30 | 1.4 | |||||||||||||
Total same-store hotels | 128.40 | 124.21 | 3.4 | 129.10 | 124.63 | 3.6 | |||||||||||||
RevPAR ($) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2011 | 2010 | %Variance | 2011 | 2010 | %Variance | ||||||||||||||
Embassy Suites Hotels | 99.93 | 95.60 | 4.5 | 99.48 | 95.62 | 4.0 | |||||||||||||
Holiday Inn | 101.95 | 94.14 | 8.3 | 91.72 | 85.69 | 7.0 | |||||||||||||
Doubletree and Hilton | 93.62 | 91.42 | 2.4 | 90.09 | 84.62 | 6.5 | |||||||||||||
Sheraton and Westin | 71.34 | 72.81 | (2.0 | ) | 74.42 | 71.60 | 3.9 | ||||||||||||
Renaissance and Marriott | 97.98 | 89.47 | 9.5 | 122.33 | 107.90 | 13.4 | |||||||||||||
Fairmont | 207.53 | 196.84 | 5.4 | 180.20 | 167.48 | 7.6 | |||||||||||||
Comparable hotels | 99.04 | 94.31 | 5.0 | 97.48 | 92.24 | 5.7 | |||||||||||||
Hotels marketed for sale | 68.89 | 64.39 | 7.0 | 72.09 | 70.33 | 2.5 | |||||||||||||
Total same-store hotels | 96.03 | 91.32 | 5.2 | 94.94 | 90.05 | 5.4 |
Occupancy (%) | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2011 | 2010 | %Variance | 2011 | 2010 | %Variance | ||||||||||||||||||
South Florida | 72.0 | 72.4 | (0.5 | ) | 77.2 | 77.7 | (0.6 | ) | |||||||||||||||
Los Angeles area | 85.0 | 79.5 | 6.9 | 80.6 | 75.9 | 6.2 | |||||||||||||||||
San Francisco area | 85.8 | 83.2 | 3.1 | 78.3 | 75.8 | 3.3 | |||||||||||||||||
Boston | 84.5 | 84.2 | 0.4 | 79.2 | 78.6 | 0.7 | |||||||||||||||||
Atlanta | 75.9 | 76.6 | (0.9 | ) | 76.7 | 76.4 | 0.5 | ||||||||||||||||
Philadelphia | 75.6 | 79.2 | (4.5 | ) | 72.0 | 73.4 | (1.9 | ) | |||||||||||||||
Central California Coast | 83.0 | 83.1 | (0.1 | ) | 76.0 | 77.8 | (2.3 | ) | |||||||||||||||
Myrtle Beach | 80.4 | 82.7 | (2.7 | ) | 64.8 | 66.9 | (3.1 | ) | |||||||||||||||
New Orleans | 64.3 | 62.3 | 3.1 | 71.1 | 68.2 | 4.2 | |||||||||||||||||
San Antonio | 78.1 | 77.9 | 0.2 | 75.9 | 76.5 | (0.8 | ) | ||||||||||||||||
Orlando | 75.7 | 73.4 | 3.1 | 81.3 | 79.6 | 2.1 | |||||||||||||||||
Minneapolis | 83.0 | 85.3 | (2.7 | ) | 79.1 | 77.6 | 1.9 | ||||||||||||||||
San Diego | 87.9 | 82.6 | 6.5 | 80.4 | 77.7 | 3.5 | |||||||||||||||||
Dallas | 61.2 | 61.7 | (0.8 | ) | 65.1 | 62.7 | 3.9 | ||||||||||||||||
ADR ($) | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2011 | 2010 | %Variance | 2011 | 2010 | %Variance | ||||||||||||||||||
South Florida | 101.25 | 100.25 | 1.0 | 127.71 | 127.84 | (0.1 | ) | ||||||||||||||||
Los Angeles area | 152.18 | 146.10 | 4.2 | 143.69 | 138.45 | 3.8 | |||||||||||||||||
San Francisco area | 159.42 | 144.56 | 10.3 | 145.38 | 133.03 | 9.3 | |||||||||||||||||
Boston | 197.56 | 184.60 | 7.0 | 185.42 | 172.97 | 7.2 | |||||||||||||||||
Atlanta | 104.65 | 105.42 | (0.7 | ) | 104.87 | 104.36 | 0.5 | ||||||||||||||||
Philadelphia | 131.40 | 128.12 | 2.6 | 133.01 | 124.93 | 6.5 | |||||||||||||||||
Central California Coast | 180.66 | 189.59 | (4.7 | ) | 157.40 | 163.34 | (3.6 | ) | |||||||||||||||
Myrtle Beach | 169.53 | 166.08 | 2.1 | 149.24 | 142.90 | 4.4 | |||||||||||||||||
New Orleans | 103.02 | 101.74 | 1.3 | 129.87 | 121.70 | 6.7 | |||||||||||||||||
San Antonio | 92.18 | 98.46 | (6.4 | ) | 93.83 | 98.45 | (4.7 | ) | |||||||||||||||
Orlando | 95.40 | 93.23 | 2.3 | 109.76 | 105.56 | 4.0 | |||||||||||||||||
Minneapolis | 139.22 | 129.00 | 7.9 | 130.58 | 125.89 | 3.7 | |||||||||||||||||
San Diego | 127.11 | 123.95 | 2.6 | 121.13 | 119.28 | 1.5 | |||||||||||||||||
Dallas | 99.74 | 103.70 | (3.8 | ) | 110.01 | 108.86 | 1.1 | ||||||||||||||||
RevPAR ($) | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2011 | 2010 | %Variance | 2011 | 2010 | %Variance | ||||||||||||||||||
South Florida | 72.94 | 72.61 | 0.5 | 98.60 | 99.29 | (0.7 | ) | ||||||||||||||||
Los Angeles area | 129.35 | 116.19 | 11.3 | 115.85 | 105.10 | 10.2 | |||||||||||||||||
San Francisco area | 136.74 | 120.31 | 13.7 | 113.82 | 100.86 | 12.8 | |||||||||||||||||
Boston | 166.90 | 155.37 | 7.4 | 146.77 | 135.92 | 8.0 | |||||||||||||||||
Atlanta | 79.44 | 80.77 | (1.6 | ) | 80.47 | 79.70 | 1.0 | ||||||||||||||||
Philadelphia | 99.33 | 101.42 | (2.1 | ) | 95.75 | 91.69 | 4.4 | ||||||||||||||||
Central California Coast | 149.97 | 157.51 | (4.8 | ) | 119.66 | 127.04 | (5.8 | ) | |||||||||||||||
Myrtle Beach | 136.38 | 137.31 | (0.7 | ) | 96.73 | 95.58 | 1.2 | ||||||||||||||||
New Orleans | 66.21 | 63.39 | 4.4 | 92.31 | 83.03 | 11.2 | |||||||||||||||||
San Antonio | 71.96 | 76.72 | (6.2 | ) | 71.19 | 75.28 | (5.4 | ) | |||||||||||||||
Orlando | 72.19 | 68.44 | 5.5 | 89.23 | 84.02 | 6.2 | |||||||||||||||||
Minneapolis | 115.49 | 110.04 | 5.0 | 103.24 | 97.67 | 5.7 | |||||||||||||||||
San Diego | 111.78 | 102.33 | 9.2 | 97.41 | 92.64 | 5.2 | |||||||||||||||||
Dallas | 61.03 | 63.96 | (4.6 | ) | 71.59 | 68.20 | 5.0 |
(a) | Excludes seven hotels in continuing operations that are currently being marketed for sale, as well as Royalton and Morgans, which were acquired in May 2011. |
Three Months Ended September 30, | |||||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net loss | $ | (23,376 | ) | $ | (89,280 | ) | |||||||||||||||
Noncontrolling interests | 544 | 470 | |||||||||||||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | |||||||||||||||||
Net loss attributable to FelCor common stockholders | (32,510 | ) | 123,062 | $ | (0.26 | ) | (98,488 | ) | 95,034 | $ | (1.04 | ) | |||||||||
Depreciation and amortization | 33,892 | — | 0.27 | 33,725 | — | 0.36 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 3,507 | — | 0.03 | 6,805 | — | 0.07 | |||||||||||||||
Gain on sale of hotels, net | (701 | ) | — | (0.01 | ) | — | — | — | |||||||||||||
Gain on involuntary conversion, net | (109 | ) | — | — | — | — | — | ||||||||||||||
Noncontrolling interests in FelCor LP | (166 | ) | 638 | — | (297 | ) | 295 | — | |||||||||||||
Conversion of options and unvested restricted stock | — | 709 | — | — | — | — | |||||||||||||||
FFO | 3,913 | 124,409 | 0.03 | (58,255 | ) | 95,329 | (0.61 | ) | |||||||||||||
Impairment loss | — | — | — | 24,127 | — | 0.25 | |||||||||||||||
Impairment loss, discontinued operations | 946 | — | 0.02 | 41,722 | — | 0.44 | |||||||||||||||
Acquisition costs | 413 | — | — | 403 | — | — | |||||||||||||||
Debt extinguishment, including discontinued operations | 355 | — | — | (8,036 | ) | — | (0.08 | ) | |||||||||||||
Adjusted FFO | $ | 5,627 | 124,409 | $ | 0.05 | $ | (39 | ) | 95,329 | $ | — |
Nine Months Ended September 30, | |||||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net loss | $ | (97,499 | ) | $ | (130,232 | ) | |||||||||||||||
Noncontrolling interests | 738 | 648 | |||||||||||||||||||
Preferred dividends | (29,034 | ) | (29,034 | ) | |||||||||||||||||
Net loss attributable to FelCor common stockholders | (125,795 | ) | 113,908 | $ | (1.10 | ) | (158,618 | ) | 75,135 | $ | (2.11 | ) | |||||||||
Depreciation and amortization | 101,138 | — | 0.87 | 101,556 | — | 1.35 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 13,572 | — | 0.12 | 20,958 | — | 0.28 | |||||||||||||||
Noncontrolling interests in FelCor LP | (469 | ) | 453 | — | (571 | ) | 295 | — | |||||||||||||
Gain on sale of hotels, net | (7,362 | ) | — | (0.06 | ) | — | — | — | |||||||||||||
Gain on involuntary conversion, net | (280 | ) | — | — | — | — | — | ||||||||||||||
Gain on sale of unconsolidated entities | — | — | — | (559 | ) | — | (0.01 | ) | |||||||||||||
FFO | (19,196 | ) | 114,361 | (0.17 | ) | (37,234 | ) | 75,430 | (0.49 | ) | |||||||||||
Impairment loss | 11,706 | — | 0.10 | 24,127 | — | 0.32 | |||||||||||||||
Impairment loss, discontinued operations | 1,544 | — | 0.01 | 62,782 | — | 0.83 | |||||||||||||||
Acquisition costs | 1,359 | — | 0.01 | 419 | — | 0.01 | |||||||||||||||
Debt extinguishment, including discontinued operations | 24,316 | — | 0.21 | (54,096 | ) | — | (0.72 | ) | |||||||||||||
Conversion of options and unvested restricted stock | — | 828 | 0.01 | — | — | — | |||||||||||||||
Adjusted FFO | $ | 19,729 | 115,189 | $ | 0.17 | $ | (4,002 | ) | 75,430 | $ | (0.05 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Net loss | $ | (23,376 | ) | $ | (89,280 | ) | $ | (97,499 | ) | $ | (130,232 | ) | |||
Depreciation and amortization | 33,892 | 33,725 | 101,138 | 101,556 | |||||||||||
Depreciation, discontinued operations and unconsolidated entities | 3,507 | 6,805 | 13,572 | 20,958 | |||||||||||
Interest expense | 33,614 | 34,557 | 102,056 | 105,339 | |||||||||||
Interest expense, discontinued operations and unconsolidated entities | 1,319 | 2,321 | 4,283 | 7,865 | |||||||||||
Amortization of stock compensation | 1,766 | 1,644 | 5,343 | 4,901 | |||||||||||
Noncontrolling interests in other partnerships | 378 | 173 | 269 | 77 | |||||||||||
EBITDA | 51,100 | (10,055 | ) | 129,162 | 110,464 | ||||||||||
Impairment loss | — | 24,127 | 11,706 | 24,127 | |||||||||||
Impairment loss, discontinued operations | 946 | 41,722 | 1,544 | 62,782 | |||||||||||
Debt extinguishment, including discontinued operations | 355 | (8,036 | ) | 24,316 | (54,096 | ) | |||||||||
Acquisition costs | 413 | 403 | 1,359 | 419 | |||||||||||
Gain on sale of hotels, net | (701 | ) | — | (7,362 | ) | — | |||||||||
Gain on involuntary conversion, net | (109 | ) | — | (280 | ) | — | |||||||||
Gain on sale of unconsolidated subsidiary | — | — | — | (559 | ) | ||||||||||
Adjusted EBITDA | 52,004 | 48,161 | 160,445 | 143,137 | |||||||||||
Adjusted EBITDA from discontinued operations | (943 | ) | (2,739 | ) | (7,263 | ) | (9,646 | ) | |||||||
Adjusted EBITDA from acquired hotels(a) | (881 | ) | 4 | (1,449 | ) | 319 | |||||||||
Same-store Adjusted EBITDA | 50,180 | 45,426 | 151,733 | 133,810 | |||||||||||
Other revenue | (1,394 | ) | (1,421 | ) | (2,630 | ) | (2,793 | ) | |||||||
Equity in income from unconsolidated entities (excluding interest and depreciation expense) | (5,206 | ) | (5,014 | ) | (13,493 | ) | (12,871 | ) | |||||||
Noncontrolling interests in other partnerships (excluding interest and depreciation expense) | 187 | 424 | 1,425 | 1,751 | |||||||||||
Consolidated hotel lease expense | 10,582 | 10,053 | 29,383 | 27,826 | |||||||||||
Unconsolidated taxes, insurance and lease expense | (1,716 | ) | (1,651 | ) | (5,152 | ) | (5,015 | ) | |||||||
Interest income | (58 | ) | (104 | ) | (152 | ) | (304 | ) | |||||||
Other expenses (excluding acquisition costs) | 795 | 928 | 2,096 | 2,274 | |||||||||||
Corporate expenses (excluding amortization expense of stock compensation) | 4,492 | 4,920 | 17,362 | 18,020 | |||||||||||
Hotel EBITDA | $ | 57,862 | $ | 53,561 | $ | 180,572 | $ | 162,698 |
(a) | For same-store metrics, we have included the hotel acquired in August 2010 and excluded the two hotels acquired in May 2011 for all periods presented. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Total revenues | $ | 245,518 | $ | 223,927 | $ | 724,737 | $ | 657,650 | |||||||
Other revenue | (1,394 | ) | (1,421 | ) | (2,630 | ) | (2,793 | ) | |||||||
Hotel operating revenue | 244,124 | 222,506 | 722,107 | 654,857 | |||||||||||
Revenue from acquired hotels(a) | (7,517 | ) | 5,220 | (10,861 | ) | 23,109 | |||||||||
Same-store hotel operating revenue | 236,607 | 227,726 | 711,246 | 677,966 | |||||||||||
Same-store hotel operating expenses | (178,745 | ) | (174,165 | ) | (530,674 | ) | (515,268 | ) | |||||||
Hotel EBITDA | $ | 57,862 | $ | 53,561 | $ | 180,572 | $ | 162,698 | |||||||
Hotel EBITDA margin(b) | 24.5 | % | 23.5 | % | 25.4 | % | 24.0 | % |
(a) | For same-store metrics, we have included the hotel acquired in August 2010 and excluded the two hotels acquired in May 2011 for all periods presented. |
(b) | Hotel EBITDA as a percentage of same-store hotel operating revenue. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Total operating expenses | $ | 235,605 | $ | 243,098 | $ | 703,321 | $ | 666,586 | |||||||
Unconsolidated taxes, insurance and lease expense | 1,716 | 1,651 | 5,152 | 5,015 | |||||||||||
Consolidated hotel lease expense | (10,582 | ) | (10,053 | ) | (29,383 | ) | (27,826 | ) | |||||||
Corporate expenses | (6,258 | ) | (6,564 | ) | (22,705 | ) | (22,921 | ) | |||||||
Depreciation and amortization | (33,892 | ) | (33,725 | ) | (101,138 | ) | (101,556 | ) | |||||||
Impairment loss | — | (24,127 | ) | (11,706 | ) | (24,127 | ) | ||||||||
Other expenses | (1,208 | ) | (1,331 | ) | (3,455 | ) | (2,693 | ) | |||||||
Expenses from acquired hotels(a) | (6,636 | ) | 5,216 | (9,412 | ) | 22,790 | |||||||||
Same-store hotel operating expenses | $ | 178,745 | $ | 174,165 | $ | 530,674 | $ | 515,268 |
(a) | For same-store metrics, we have included the hotel acquired in August 2010 and excluded the two hotels acquired in May 2011 for all periods presented. |
Full Year 2011 Guidance | |||||||||||||||
Low Guidance | High Guidance | ||||||||||||||
Dollars | Per Share Amount(a) | Dollars | Per Share Amount(a) | ||||||||||||
Net loss | $ | (124 | ) | $ | (121 | ) | |||||||||
Preferred dividends | (39 | ) | (39 | ) | |||||||||||
Net loss attributable to FelCor common stockholders | (163 | ) | $ | (1.41 | ) | (160 | ) | $ | (1.38 | ) | |||||
Depreciation(b) | 153 | 153 | |||||||||||||
Gain on sale of hotels, net | (8 | ) | (8 | ) | |||||||||||
Noncontrolling interests in FelCor LP | (1 | ) | (1 | ) | |||||||||||
FFO | (19 | ) | $ | (0.17 | ) | (16 | ) | $ | (0.13 | ) | |||||
Debt extinguishment | 25 | 25 | |||||||||||||
Impairment | 13 | 13 | |||||||||||||
Acquisition costs | 1 | 1 | |||||||||||||
Adjusted FFO | $ | 20 | $ | 0.17 | $ | 23 | $ | 0.19 | |||||||
Net loss | $ | (124 | ) | $ | (121 | ) | |||||||||
Depreciation(b) | 153 | 153 | |||||||||||||
Interest expense(b) | 141 | 141 | |||||||||||||
Amortization expense | 7 | 7 | |||||||||||||
Noncontrolling interests in FelCor LP | (1 | ) | (1 | ) | |||||||||||
EBITDA | 176 | 179 | |||||||||||||
Debt extinguishment | 25 | 25 | |||||||||||||
Impairment | 13 | 13 | |||||||||||||
Gain on sale of hotels, net | (8 | ) | (8 | ) | |||||||||||
Acquisition costs | 1 | 1 | |||||||||||||
Adjusted EBITDA | $ | 207 | $ | 210 |
(a) | Weighted average shares and units are 117.3 million. |
(b) | Includes pro rata portion of unconsolidated entities. |
• | Gains and losses related to debt extinguishment and interest rate swaps - We exclude gains and losses related to debt extinguishment and interest rate swaps from FFO and EBITDA because we believe that it is not indicative of ongoing operating performance of our hotel assets. This also represents an acceleration of interest expense or a reduction of interest expense, and interest expense is excluded from EBITDA. |
• | Impairment losses - We exclude the effect of impairment losses and gains or losses on disposition of assets in computing Adjusted FFO and Adjusted EBITDA because we believe that including these is not consistent with reflecting the ongoing performance of our remaining assets. Additionally, we believe that impairment charges and gains or losses on disposition of assets represent accelerated depreciation, or excess depreciation, and depreciation is excluded from FFO by the NAREIT definition and from EBITDA. |
• | Cumulative effect of a change in accounting principle - Infrequently, the Financial Accounting Standards Board promulgates new accounting standards that require the consolidated statements of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments in computing Adjusted FFO and Adjusted EBITDA because they do not reflect our actual performance for that period. |
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