Date of Report (Date of earliest event reported) | April 30, 2013 |
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 April 30, 2013, announcing its results of operations for the three months ended March 31, 2013. |
FELCOR LODGING TRUST INCORPORATED | |||
Date: April 30, 2013 | By: | /s/ Jeffrey D. Symes | |
Name: | Jeffrey D. Symes | ||
Title: | Senior Vice President, Chief Accounting Officer and Controller |
Exhibit Number | Description of Exhibit | ||
99.1 | Press release issued by FelCor Lodging Trust Incorporated on April 30, 2013, announcing its results of operations for the three months ended March 31, 2013. |
![]() | 545 E. JOHN CARPENTER FREEWAY, SUITE 1300 IRVING, TX 75062 PH: 972-444-4900 F: 972-444-4949 WWW.FELCOR.COM NYSE: FCH |
• | RevPAR for 45 core hotels increased 6.7%. |
• | Total revenue increased 6.1%, driven by a 5.5% increase in RevPAR at 65 same-store hotels. |
• | Same-store Adjusted EBITDA was $37.7 million, a 13.3% increase. |
• | Adjusted FFO per share improved to a loss of $0.01 and net loss per share was $0.29. |
• | Currently under negotiations or have agreed to sell six non-strategic hotels. |
First Quarter | |||||||||
$ in millions, except for per share information | 2013 | 2012 | Change | ||||||
Total revenue | $ | 220.7 | $ | 208.0 | 6.1% | ||||
Same-store Adjusted EBITDA | $ | 37.7 | $ | 33.3 | 13.3% | ||||
Adjusted EBITDA | $ | 37.7 | $ | 41.4 | (9.0)% | ||||
Adjusted FFO per share | $ | (0.01 | ) | $ | (0.02 | ) | $0.01 | ||
Net loss per share | $ | (0.29 | ) | $ | (0.31 | ) | $0.02 |
First Quarter | |||||||||||
2013 | 2012 | Change | |||||||||
Hotel RevPAR | $ | 106.16 | $ | 99.47 | 6.7 | % | |||||
Hotel EBITDA, in millions | $ | 37.0 | $ | 32.8 | 12.6 | % | |||||
Hotel EBITDA margin | 21.0 | % | 20.1 | % | 91 | bps |
• | Same-store RevPAR to increase between 5-6%; |
• | Adjusted EBITDA to be between $190.5 million and $205.0 million; |
• | Adjusted FFO per share to be between $0.33 and $0.43; |
• | Net loss attributable to FelCor to be between $59 million and $51 million; and |
• | Interest expense, including pro rata share of joint ventures, to be between $104 million and $106 million. |
Low | High | ||||||
Previous Adjusted EBITDA Outlook (65 hotels) | $ | 203.5 | $ | 208.5 | |||
Improved Operations | 0.5 | — | |||||
Adjusted EBITDA Outlook (65 hotels) | $ | 204.0 | $ | 208.5 | |||
EBITDA of sold hotels from closing to December 31(a) | (13.5 | ) | (3.5 | ) | |||
Adjusted EBITDA Outlook (54 hotels) | $ | 190.5 | $ | 205.0 | |||
Discontinued Operations(b) | (12.5 | ) | (22.5 | ) | |||
Same-store Adjusted EBITDA (54 hotels) | $ | 178.0 | $ | 182.5 |
(a) | EBITDA of 11 hotels assumed to be sold during 2013 that would have been recognized from the dates of sale through December 31, 2013. |
(b) | EBITDA of 11 hotels assumed to be sold during 2013 that is forecasted to be generated from January 1, 2013 through the dates of sale. |
Page | ||
Consolidated Statements of Operations(a) | ||
Consolidated Balance Sheets(a) | ||
Consolidated Debt Summary | ||
Schedule of Encumbered Hotels | ||
Capital Expenditures | ||
Hotels Under Renovation or Redevelopment During 2013 | ||
Supplemental Financial Data | ||
Discontinued Operations | ||
Hotel Portfolio Composition | ||
Hotel Operating Statistics by Brand | ||
Hotel Operating Statistics by Market | ||
Historical Quarterly Operating Statistics | ||
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 Annual Report on Form 10-K. |
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2012 | |||||||
Revenues: | ||||||||
Hotel operating revenue: | ||||||||
Room | $ | 170,379 | $ | 161,779 | ||||
Food and beverage | 38,464 | 34,821 | ||||||
Other operating departments | 11,448 | 11,090 | ||||||
Other revenue | 399 | 275 | ||||||
Total revenues | 220,690 | 207,965 | ||||||
Expenses: | ||||||||
Hotel departmental expenses: | ||||||||
Room | 47,593 | 44,971 | ||||||
Food and beverage | 31,462 | 28,345 | ||||||
Other operating departments | 5,480 | 5,445 | ||||||
Other property-related costs | 63,108 | 60,482 | ||||||
Management and franchise fees | 9,654 | 9,778 | ||||||
Taxes, insurance and lease expense | 22,667 | 21,710 | ||||||
Corporate expenses | 7,832 | 8,212 | ||||||
Depreciation and amortization | 31,570 | 30,068 | ||||||
Conversion expenses | 628 | — | ||||||
Other expenses | 821 | 963 | ||||||
Total operating expenses | 220,815 | 209,974 | ||||||
Operating loss | (125 | ) | (2,009 | ) | ||||
Interest expense, net | (26,483 | ) | (30,814 | ) | ||||
Debt extinguishment | — | (7 | ) | |||||
Loss before equity in income (loss) from unconsolidated entities | (26,608 | ) | (32,830 | ) | ||||
Equity in income (loss) from unconsolidated entities | 89 | (224 | ) | |||||
Loss from continuing operations | (26,519 | ) | (33,054 | ) | ||||
Income (loss) from discontinued operations | (86 | ) | 4,193 | |||||
Net loss | (26,605 | ) | (28,861 | ) | ||||
Net loss attributable to noncontrolling interests in other partnerships | 240 | 202 | ||||||
Net loss attributable to redeemable noncontrolling interests in FelCor LP | 180 | 196 | ||||||
Net loss attributable to FelCor | (26,185 | ) | (28,463 | ) | ||||
Preferred dividends | (9,678 | ) | (9,678 | ) | ||||
Net loss attributable to FelCor common stockholders | $ | (35,863 | ) | $ | (38,141 | ) | ||
Basic and diluted per common share data: | ||||||||
Loss from continuing operations | $ | (0.29 | ) | $ | (0.34 | ) | ||
Net loss | $ | (0.29 | ) | $ | (0.31 | ) | ||
Basic and diluted weighted average common shares outstanding | 123,814 | 123,665 |
March 31, | December 31, | ||||||
2013 | 2012 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $948,095 and $929,298 at March 31, 2013 and December 31, 2012, respectively | $ | 1,787,016 | $ | 1,794,564 | |||
Hotel development | 156,081 | 146,079 | |||||
Investment in unconsolidated entities | 52,867 | 55,082 | |||||
Cash and cash equivalents | 61,796 | 45,745 | |||||
Restricted cash | 77,102 | 77,927 | |||||
Accounts receivable, net of allowance for doubtful accounts of $243 and $469 at March 31, 2013 and December 31, 2012, respectively | 34,293 | 25,383 | |||||
Deferred expenses, net of accumulated amortization of $15,438 and $13,820 at March 31, 2013 and December 31, 2012, respectively | 34,035 | 34,262 | |||||
Other assets | 26,096 | 23,391 | |||||
Total assets | $ | 2,229,286 | $ | 2,202,433 | |||
Liabilities and Equity | |||||||
Debt, net of discount of $8,985 and $10,318 at March 31, 2013 and December 31, 2012, respectively | $ | 1,683,756 | $ | 1,630,525 | |||
Distributions payable | 8,545 | 8,545 | |||||
Accrued expenses and other liabilities | 147,715 | 138,442 | |||||
Total liabilities | 1,840,016 | 1,777,512 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests in FelCor LP, 621 units issued and outstanding at March 31, 2013 and December 31, 2012 | 3,697 | 2,902 | |||||
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 March 31, 2013 and December 31, 2012 | 309,362 | 309,362 | |||||
Series C Cumulative Redeemable Preferred Stock, 68 shares, liquidation value of $169,950, issued and outstanding at March 31, 2013 and December 31, 2012 | 169,412 | 169,412 | |||||
Common stock, $0.01 par value, 200,000 shares authorized; 124,122 and 124,117 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively | 1,241 | 1,241 | |||||
Additional paid-in capital | 2,353,275 | 2,353,581 | |||||
Accumulated other comprehensive income | 25,684 | 26,039 | |||||
Accumulated deficit | (2,500,831 | ) | (2,464,968 | ) | |||
Total FelCor stockholders’ equity | 358,143 | 394,667 | |||||
Noncontrolling interests in other partnerships | 27,430 | 27,352 | |||||
Total equity | 385,573 | 422,019 | |||||
Total liabilities and equity | $ | 2,229,286 | $ | 2,202,433 |
Encumbered Hotels | Interest Rate (%) | Maturity Date | March 31, 2013 | December 31, 2012 | |||||||||||||
Line of credit | 9 | L + 3.375 | June 2016(a) | $ | 109,000 | $ | 56,000 | ||||||||||
Hotel mortgage debt | |||||||||||||||||
Mortgage debt(b) | 5 | 6.66 | June - August 2014 | 64,906 | 65,431 | ||||||||||||
Mortgage debt | 1 | 5.81 | July 2016 | 10,280 | 10,405 | ||||||||||||
Mortgage debt(b) | 4 | 4.95 | October 2022 | 127,733 | 128,066 | ||||||||||||
Mortgage debt | 1 | 4.94 | October 2022 | 32,057 | 32,176 | ||||||||||||
Senior notes | |||||||||||||||||
Senior secured notes(c) | 11 | 10.00 | October 2014 | 224,919 | 223,586 | ||||||||||||
Senior secured notes | 6 | 6.75 | June 2019 | 525,000 | 525,000 | ||||||||||||
Senior secured notes | 10 | 5.625 | March 2023 | 525,000 | 525,000 | ||||||||||||
Other(d) | — | L + 1.25 | May 2016 | 64,861 | 64,861 | ||||||||||||
Total | 47 | $ | 1,683,756 | $ | 1,630,525 |
(a) | Our $225 million line of credit can be extended for one year (to 2017), subject to satisfying certain conditions. |
(b) | This debt is comprised of separate non-cross-collateralized loans each secured by a mortgage of a different hotel. |
(c) | We originally issued $636 million (face amount) of these notes. After redemptions in 2011 and 2012, $234 million (face amount) of these notes were outstanding at March 31, 2013 and December 31, 2012. |
(d) | This loan is related to our Knickerbocker redevelopment project and is fully secured by restricted cash and a mortgage. Because we were able to assume an existing loan when we purchased this hotel, we were not required to pay any local mortgage recording tax. This loan, which allows us to borrow up to $85 million, can be extended for one year subject to satisfying certain conditions. |
Consolidated | March 31, 2013 | |||||||
Debt | Balance | Encumbered Hotels | ||||||
Line of credit | $ | 109 | Charleston Mills House - WYN, Charlotte SouthPark - DT, Dana Point - DTGS, Houston Medical Center - WYN, Mandalay Beach - ES, Miami International Airport - ES, Philadelphia Historic District - WYN, Pittsburgh University Center - WYN and Santa Monica at the Pier - WYN | |||||
CMBS debt(a) | $ | 65 | Atlanta Airport - ES, Austin - DTGS, BWI Airport - ES, Orlando Airport - HI and Phoenix Biltmore - ES | |||||
CMBS debt | $ | 10 | Indianapolis North - ES | |||||
CMBS debt(a) | $ | 128 | Birmingham - ES, Ft. Lauderdale - ES, Minneapolis Airport - ES and Napa Valley - ES | |||||
CMBS debt | $ | 32 | Deerfield Beach - ES | |||||
Senior secured notes (10.00%) | $ | 225 | Atlanta Airport - SH, Boston Beacon Hill - WYN, Myrtle Beach Resort - ES, Nashville Opryland -Airport - HI, New Orleans French Quarter - WYN, Orlando Walt Disney World® - DTGS, San Diego Bayside - WYN, San Francisco Waterfront - ES, San Francisco Fisherman’s Wharf - HI, San Francisco Union Square - MAR and Toronto Airport - HI | |||||
Senior secured notes (6.75%) | $ | 525 | Boston Copley - FMT, Indian Wells Esmeralda Resort & Spa - REN, Los Angeles International Airport - ES, Morgans, Royalton and St. Petersburg Vinoy Resort & Golf Club - REN | |||||
Senior secured notes (5.625%) | $ | 525 | Atlanta Buckhead - ES, Baton Rouge - ES, Boston Marlboro - ES, Burlington - SH, Dallas Love Field - ES, Milpitas - ES, Myrtle Beach Resort - HIL, Orlando South - ES, Philadelphia Society Hill - SH and SF South San Francisco - ES |
(a) | This debt is comprised of separate non-cross-collateralized loans each secured by a mortgage of a different hotel. |
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2012 | |||||||
Improvements and additions to majority-owned hotels | $ | 23,342 | $ | 41,385 | ||||
Partners’ pro rata share of additions to consolidated joint venture hotels | (158 | ) | (360 | ) | ||||
Pro rata share of additions to unconsolidated hotels | 337 | 562 | ||||||
Total additions to hotels(a) | $ | 23,521 | $ | 41,587 |
(a) | Includes capitalized interest, property taxes, property insurance, ground leases and certain employee costs. |
Renovations | Primary Areas | Start Date | End Date |
Myrtle Beach Resort-HIL | guestrooms | Oct-2012 | Mar-2013 |
Napa Valley-ES | public areas(a) | Nov-2012 | Mar-2013 |
Mandalay Beach-ES | public areas, meeting rooms, F&B(b) | Jan-2013 | May-2013 |
San Francisco Waterfront-ES | public areas | Feb-2013 | May-2013 |
Santa Monica Beach - at the Pier-WYN | guestrooms, corridors, public areas | May-2013 | Aug-2013 |
Ft. Lauderdale-ES | public areas | Aug-2013 | Oct-2013 |
Orlando - Walt Disney World Resort-DT | guestrooms, corridors(c) | May-2013 | Nov-2013 |
LAX South - ES | public areas, corridors(d) | Sep-2013 | Dec-2013 |
Houston Medical Center-WYN | guestrooms, corridors, public areas | Jul-2013 | Dec-2013 |
Philadelphia - Historic District-WYN | guestrooms, corridors, public areas | Aug-2013 | Jan-2014 |
Charleston Mills House-WYN | guestrooms, corridors, public areas | Aug-2013 | Jan-2014 |
Redevelopments | |||
Morgans | guestroom additions, public areas, fitness area, re-concept F&B | Feb-2012 | June-2013 |
(a) | Guestroom renovations were completed in April 2012. |
(b) | Guestroom renovations were completed in May 2012. |
(c) | Public area renovations were completed in June 2012. |
(d) | Guest room renovations were completed in February 2013. |
March 31, | December 31, | |||||||
Total Enterprise Value | 2013 | 2012 | ||||||
Common shares outstanding | 124,122 | 124,117 | ||||||
Units outstanding | 621 | 621 | ||||||
Combined shares and units outstanding | 124,743 | 124,738 | ||||||
Common stock price | $ | 5.95 | $ | 4.67 | ||||
Market capitalization | $ | 742,221 | $ | 582,526 | ||||
Series A preferred stock(a) | 309,362 | 309,362 | ||||||
Series C preferred stock(a) | 169,412 | 169,412 | ||||||
Consolidated debt(b) | 1,683,756 | 1,630,525 | ||||||
Noncontrolling interests of consolidated debt | (2,787 | ) | (2,810 | ) | ||||
Pro rata share of unconsolidated debt | 73,943 | 74,198 | ||||||
Hotel development | (156,081 | ) | (146,079 | ) | ||||
Cash, cash equivalents and restricted cash(b) | (138,898 | ) | (123,672 | ) | ||||
Total enterprise value (TEV) | $ | 2,680,928 | $ | 2,493,462 |
(a) | Book value based on issue price. |
(b) | Restricted cash includes $64.9 million of cash fully securing $64.9 million of debt that was assumed when we purchased the Knickerbocker. |
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2012 | |||||||
Operating revenue | $ | — | $ | 27,840 | ||||
Operating expenses | (86 | ) | (22,699 | ) | ||||
Operating income (loss) | (86 | ) | 5,141 | |||||
Interest expense, net | — | (948 | ) | |||||
Income (loss) from discontinued operations | (86 | ) | 4,193 | |||||
Depreciation and amortization | — | 2,924 | ||||||
Interest expense | — | 948 | ||||||
Adjusted EBITDA from discontinued operations | $ | (86 | ) | $ | 8,065 |
Brand | Hotels | Rooms | 2012 Hotel Operating Revenue (in thousands) | 2012 Hotel EBITDA (in thousands)(a) | ||||||||||||||
Embassy Suites Hotels | 20 | 5,433 | $ | 256,200 | $ | 78,389 | ||||||||||||
Wyndham and Wyndham Grand(b) | 8 | 2,526 | 120,354 | 37,960 | ||||||||||||||
Renaissance and Marriott | 3 | 1,321 | 111,976 | 17,912 | ||||||||||||||
DoubleTree by Hilton and Hilton | 5 | 1,206 | 56,071 | 16,706 | ||||||||||||||
Sheraton and Westin | 4 | 1,604 | 68,369 | 14,540 | ||||||||||||||
Fairmont | 1 | 383 | 41,255 | 4,286 | ||||||||||||||
Holiday Inn | 2 | 968 | 40,512 | 4,218 | ||||||||||||||
Morgans and Royalton | 2 | 282 | 32,129 | 3,458 | ||||||||||||||
Core hotels | 45 | 13,723 | 726,866 | 177,469 | ||||||||||||||
Non-strategic hotels | 20 | 5,099 | 179,474 | 48,044 | ||||||||||||||
Same-store hotels | 65 | 18,822 | $ | 906,340 | $ | 225,513 | ||||||||||||
Market | ||||||||||||||||||
San Francisco area | 4 | 1,637 | $ | 99,659 | $ | 21,036 | ||||||||||||
Los Angeles area | 3 | 677 | 33,287 | 13,760 | ||||||||||||||
South Florida | 3 | 923 | 47,298 | 13,257 | ||||||||||||||
Boston | 3 | 916 | 68,121 | 12,126 | ||||||||||||||
New York area | 4 | 817 | 57,052 | 9,733 | ||||||||||||||
Myrtle Beach | 2 | 640 | 36,973 | 9,429 | ||||||||||||||
Atlanta | 3 | 952 | 35,410 | 9,230 | ||||||||||||||
Philadelphia | 2 | 728 | 36,122 | 8,882 | ||||||||||||||
Tampa | 1 | 361 | 45,152 | 7,957 | ||||||||||||||
San Diego | 1 | 600 | 26,445 | 6,688 | ||||||||||||||
Other markets | 19 | 5,472 | 241,347 | 65,371 | ||||||||||||||
Core hotels | 45 | 13,723 | 726,866 | 177,469 | ||||||||||||||
Non-strategic hotels | 20 | 5,099 | 179,474 | 48,044 | ||||||||||||||
Same-store hotels | 65 | 18,822 | $ | 906,340 | $ | 225,513 | ||||||||||||
Location | ||||||||||||||||||
Urban | 17 | 5,305 | $ | 316,354 | $ | 74,446 | ||||||||||||
Resort | 10 | 2,928 | 183,807 | 41,475 | ||||||||||||||
Airport | 9 | 2,957 | 126,906 | 33,742 | ||||||||||||||
Suburban | 9 | 2,533 | 99,799 | 27,806 | ||||||||||||||
Core hotels | 45 | 13,723 | 726,866 | 177,469 | ||||||||||||||
Non-strategic hotels | 20 | 5,099 | 179,474 | 48,044 | ||||||||||||||
Same-store hotels | 65 | 18,822 | $ | 906,340 | $ | 225,513 |
(a) | Hotel EBITDA is more fully described on page 24. |
(b) | These hotels converted from Holiday Inn on March 1, 2013. |
Occupancy (%) | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2013 | 2012 | %Variance | ||||||||
Embassy Suites Hotels | 73.1 | 74.0 | (1.2 | ) | ||||||
Wyndham and Wyndham Grand(a) | 63.6 | 71.6 | (11.3 | ) | ||||||
Renaissance and Marriott | 74.8 | 73.5 | 1.7 | |||||||
DoubleTree by Hilton and Hilton | 61.4 | 62.9 | (2.4 | ) | ||||||
Sheraton and Westin | 63.4 | 57.6 | 10.1 | |||||||
Fairmont | 60.3 | 27.7 | 118.2 | |||||||
Holiday Inn | 68.4 | 60.5 | 13.0 | |||||||
Morgans and Royalton | 81.0 | 76.0 | 6.7 | |||||||
Core hotels (45) | 68.8 | 68.4 | 0.6 | |||||||
Non-strategic hotels (20) | 71.7 | 71.6 | 0.1 | |||||||
Same-store hotels (65) | 69.6 | 69.3 | 0.5 | |||||||
ADR ($) | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2013 | 2012 | %Variance | ||||||||
Embassy Suites Hotels | 153.28 | 146.52 | 4.6 | |||||||
Wyndham and Wyndham Grand(a) | 139.38 | 133.20 | 4.6 | |||||||
Renaissance and Marriott | 221.01 | 210.58 | 5.0 | |||||||
DoubleTree by Hilton and Hilton | 146.97 | 133.10 | 10.4 | |||||||
Sheraton and Westin | 108.13 | 102.24 | 5.8 | |||||||
Fairmont | 221.26 | 213.15 | 3.8 | |||||||
Holiday Inn | 112.44 | 109.95 | 2.3 | |||||||
Morgans and Royalton | 260.05 | 249.85 | 4.1 | |||||||
Core hotels (45) | 154.23 | 145.45 | 6.0 | |||||||
Non-strategic hotels (20) | 117.07 | 115.80 | 1.1 | |||||||
Same-store hotels (65) | 143.90 | 137.10 | 5.0 | |||||||
RevPAR ($) | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2013 | 2012 | %Variance | ||||||||
Embassy Suites Hotels | 112.08 | 108.45 | 3.3 | |||||||
Wyndham and Wyndham Grand(a) | 88.60 | 95.43 | (7.2 | ) | ||||||
Renaissance and Marriott | 165.32 | 154.82 | 6.8 | |||||||
DoubleTree by Hilton and Hilton | 90.18 | 83.72 | 7.7 | |||||||
Sheraton and Westin | 68.51 | 58.86 | 16.4 | |||||||
Fairmont | 133.52 | 58.96 | 126.5 | |||||||
Holiday Inn | 76.89 | 66.52 | 15.6 | |||||||
Morgans and Royalton | 210.76 | 189.78 | 11.1 | |||||||
Core hotels (45) | 106.16 | 99.47 | 6.7 | |||||||
Non-strategic hotels (20) | 83.98 | 82.97 | 1.2 | |||||||
Same-store hotels (65) | 100.17 | 94.97 | 5.5 |
Occupancy (%) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2013 | 2012 | %Variance | ||||||||||
San Francisco area | 75.0 | 73.8 | 1.7 | |||||||||
Los Angeles area | 69.5 | 81.0 | (14.2 | ) | ||||||||
South Florida | 90.8 | 86.0 | 5.5 | |||||||||
Boston | 64.6 | 49.0 | 31.8 | |||||||||
New York area | 70.7 | 68.3 | 3.6 | |||||||||
Myrtle Beach | 37.0 | 42.9 | (13.7 | ) | ||||||||
Atlanta | 74.4 | 72.0 | 3.3 | |||||||||
Philadelphia | 50.6 | 48.7 | 3.9 | |||||||||
Tampa | 83.7 | 84.4 | (0.8 | ) | ||||||||
San Diego | 66.5 | 79.8 | (16.7 | ) | ||||||||
Other markets | 68.1 | 68.3 | (0.3 | ) | ||||||||
Core hotels (45) | 68.8 | 68.4 | 0.6 | |||||||||
Non-strategic hotels (20) | 71.7 | 71.6 | 0.1 | |||||||||
Same-store hotels (65) | 69.6 | 69.3 | 0.5 | |||||||||
ADR ($) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2013 | 2012 | %Variance | ||||||||||
San Francisco area | 162.99 | 156.02 | 4.5 | |||||||||
Los Angeles area | 149.72 | 141.27 | 6.0 | |||||||||
South Florida | 190.78 | 184.16 | 3.6 | |||||||||
Boston | 167.50 | 151.02 | 10.9 | |||||||||
New York area | 194.37 | 186.66 | 4.1 | |||||||||
Myrtle Beach | 108.94 | 106.24 | 2.5 | |||||||||
Atlanta | 113.51 | 110.84 | 2.4 | |||||||||
Philadelphia | 131.03 | 120.14 | 9.1 | |||||||||
Tampa | 215.29 | 201.21 | 7.0 | |||||||||
San Diego | 121.51 | 121.18 | 0.3 | |||||||||
Other markets | 146.74 | 138.15 | 6.2 | |||||||||
Core hotels (45) | 154.23 | 145.45 | 6.0 | |||||||||
Non-strategic hotels (20) | 117.07 | 115.80 | 1.1 | |||||||||
Same-store hotels (65) | 143.90 | 137.10 | 5.0 | |||||||||
RevPAR ($) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2013 | 2012 | %Variance | ||||||||||
San Francisco area | 122.28 | 115.14 | 6.2 | |||||||||
Los Angeles area | 104.03 | 114.41 | (9.1 | ) | ||||||||
South Florida | 173.22 | 158.44 | 9.3 | |||||||||
Boston | 108.19 | 74.02 | 46.1 | |||||||||
New York area | 137.42 | 127.41 | 7.9 | |||||||||
Myrtle Beach | 40.30 | 45.55 | (11.5 | ) | ||||||||
Atlanta | 84.45 | 79.82 | 5.8 | |||||||||
Philadelphia | 66.25 | 58.49 | 13.3 | |||||||||
Tampa | 180.26 | 169.79 | 6.2 | |||||||||
San Diego | 80.75 | 96.66 | (16.5 | ) | ||||||||
Other markets | 99.89 | 94.32 | 5.9 | |||||||||
Core hotels (45) | 106.16 | 99.47 | 6.7 | |||||||||
Non-strategic hotels (20) | 83.98 | 82.97 | 1.2 | |||||||||
Same-store hotels (65) | 100.17 | 94.97 | 5.5 |
Occupancy (%) | |||||||||||||
Q2 2012 | Q3 2012 | Q4 2012 | Q1 2013 | ||||||||||
Core hotels (45) | 77.7 | 76.5 | 66.8 | 68.8 | |||||||||
Non-strategic hotels (20) | 75.1 | 73.0 | 67.3 | 71.7 | |||||||||
Same-store hotels (65) | 77.0 | 75.5 | 66.9 | 69.6 | |||||||||
ADR ($) | |||||||||||||
Q2 2012 | Q3 2012 | Q4 2012 | Q1 2013 | ||||||||||
Core hotels (45) | 155.03 | 153.45 | 152.54 | 154.23 | |||||||||
Non-strategic hotels (20) | 117.02 | 119.71 | 116.10 | 117.07 | |||||||||
Same-store hotels (65) | 144.93 | 144.57 | 142.76 | 143.90 | |||||||||
RevPAR ($) | |||||||||||||
Q2 2012 | Q3 2012 | Q4 2012 | Q1 2013 | ||||||||||
Core hotels (45) | 120.49 | 117.40 | 101.92 | 106.16 | |||||||||
Non-strategic hotels (20) | 87.89 | 87.37 | 78.13 | 83.98 | |||||||||
Same-store hotels (65) | 111.61 | 109.22 | 95.57 | 100.17 |
Three Months Ended March 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net loss | $ | (26,605 | ) | $ | (28,861 | ) | |||||||||||||||
Noncontrolling interests | 420 | 398 | |||||||||||||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | |||||||||||||||||
Net loss attributable to FelCor common stockholders | (35,863 | ) | 123,814 | $ | (0.29 | ) | (38,141 | ) | 123,665 | $ | (0.31 | ) | |||||||||
Depreciation and amortization | 31,570 | — | 0.25 | 30,068 | — | 0.24 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 2,706 | — | 0.02 | 5,761 | — | 0.05 | |||||||||||||||
Noncontrolling interests in FelCor LP | (180 | ) | 621 | 0.01 | (196 | ) | 636 | — | |||||||||||||
FFO | (1,767 | ) | 124,435 | (0.01 | ) | (2,508 | ) | 124,301 | (0.02 | ) | |||||||||||
Acquisition costs | 23 | — | — | 38 | — | — | |||||||||||||||
Debt extinguishment | — | — | — | 7 | — | — | |||||||||||||||
Severance costs | — | — | — | 380 | — | — | |||||||||||||||
Conversion expenses | 628 | — | — | — | — | — | |||||||||||||||
Pre-opening costs, net of noncontrolling interests | 241 | — | — | — | — | — | |||||||||||||||
Variable stock compensation | 102 | — | — | — | — | — | |||||||||||||||
Adjusted FFO | $ | (773 | ) | 124,435 | $ | (0.01 | ) | $ | (2,083 | ) | 124,301 | $ | (0.02 | ) |
Three Months Ended | |||||||
March 31, | |||||||
2013 | 2012 | ||||||
Net loss | $ | (26,605 | ) | $ | (28,861 | ) | |
Depreciation and amortization | 31,570 | 30,068 | |||||
Depreciation, discontinued operations and unconsolidated entities | 2,706 | 5,761 | |||||
Interest expense | 26,505 | 30,862 | |||||
Interest expense, discontinued operations and unconsolidated entities | 672 | 1,625 | |||||
Noncontrolling interests in other partnerships | 240 | 202 | |||||
EBITDA | 35,088 | 39,657 | |||||
Debt extinguishment | — | 7 | |||||
Acquisition costs | 23 | 38 | |||||
Amortization of fixed stock and directors’ compensation | 1,578 | 1,296 | |||||
Severance costs | — | 380 | |||||
Conversion expenses | 628 | — | |||||
Pre-opening costs, net of noncontrolling interests | 241 | — | |||||
Variable stock compensation | 102 | — | |||||
Adjusted EBITDA | 37,660 | 41,378 | |||||
Adjusted EBITDA from discontinued operations | 86 | (8,065 | ) | ||||
Same-store Adjusted EBITDA | $ | 37,746 | $ | 33,313 |
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2012 | |||||||
Same-store operating revenue: | ||||||||
Room | $ | 170,379 | $ | 161,779 | ||||
Food and beverage | 38,464 | 34,821 | ||||||
Other operating departments | 11,448 | 11,090 | ||||||
Same-store operating revenue | 220,291 | 207,690 | ||||||
Same-store operating expense: | ||||||||
Room | 47,593 | 44,971 | ||||||
Food and beverage | 31,462 | 28,345 | ||||||
Other operating departments | 5,480 | 5,445 | ||||||
Other property related costs | 63,108 | 60,482 | ||||||
Management and franchise fees | 9,654 | 9,778 | ||||||
Taxes, insurance and lease expense | 15,007 | 14,347 | ||||||
Same-store operating expense | 172,304 | 163,368 | ||||||
Hotel EBITDA | $ | 47,987 | $ | 44,322 | ||||
Hotel EBITDA Margin | 21.8 | % | 21.3 | % |
Three Months Ended | |||||||
March 31, | |||||||
2013 | 2012 | ||||||
Hotel EBITDA - Core (45) | $ | 36,952 | $ | 32,822 | |||
Hotel EBITDA - Non-strategic (20) | 11,035 | 11,500 | |||||
Hotel EBITDA | $ | 47,987 | $ | 44,322 | |||
Hotel EBITDA Margin - Core (45) | 21.0 | % | 20.1 | % | |||
Hotel EBITDA Margin - Non-strategic (20) | 24.9 | % | 26.0 | % |
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2012 | |||||||
Same-store operating revenue | $ | 220,291 | $ | 207,690 | ||||
Other revenue | 399 | 275 | ||||||
Total revenue | 220,690 | 207,965 | ||||||
Same-store operating expense | 172,304 | 163,368 | ||||||
Consolidated hotel lease expense(a) | 9,558 | 9,194 | ||||||
Unconsolidated taxes, insurance and lease expense | (1,898 | ) | (1,831 | ) | ||||
Corporate expenses | 7,832 | 8,212 | ||||||
Depreciation and amortization | 31,570 | 30,068 | ||||||
Conversion expenses | 628 | — | ||||||
Other expenses | 821 | 963 | ||||||
Total operating expense | 220,815 | 209,974 | ||||||
Operating loss | $ | (125 | ) | $ | (2,009 | ) |
(a) | Consolidated hotel lease expense represents the percentage lease expense of our 51% owned operating lessees. The offsetting percentage lease revenue is included in equity in income from unconsolidated entities. |
Full Year 2013 Guidance | |||||||||||||||
Low | High | ||||||||||||||
Dollars | Per Share Amount(a) | Dollars | Per Share Amount(a) | ||||||||||||
Net loss attributable to FelCor(b) | $ | (59.0 | ) | $ | (51.0 | ) | |||||||||
Preferred dividends | (39.0 | ) | (39.0 | ) | |||||||||||
Net loss attributable to FelCor common stockholders | (98.0 | ) | $ | (0.79 | ) | (90.0 | ) | $ | (0.73 | ) | |||||
Depreciation(c) | 138.5 | 143.0 | |||||||||||||
FFO | $ | 40.5 | $ | 0.32 | $ | 53.0 | $ | 0.43 | |||||||
Pre-opening and conversion costs | 1.0 | 1.0 | |||||||||||||
Adjusted FFO | $ | 41.5 | $ | 0.33 | $ | 54.0 | $ | 0.43 | |||||||
Net loss attributable to FelCor(b) | $ | (59.0 | ) | $ | (51.0 | ) | |||||||||
Depreciation(c) | 138.5 | 143.0 | |||||||||||||
Interest expense(c) | 104.0 | 106.0 | |||||||||||||
Amortization expense | 6.0 | 6.0 | |||||||||||||
EBITDA | 189.5 | 204.0 | |||||||||||||
Pre-opening and conversion costs | 1.0 | 1.0 | |||||||||||||
Adjusted EBITDA | $ | 190.5 | $ | 205.0 |
(a) | Weighted average shares are 125.0 million. |
(b) | For guidance, we have assumed no gains or losses on future asset sales. |
(c) | Includes pro rata portion of unconsolidated entities. |
• | Gains and losses related to extinguishment of debt and interest rate swaps - We exclude gains and losses related to extinguishment of debt 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. |
• | 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. |
• | Other transaction costs - From time to time, we periodically incur costs that are not indicative of ongoing operating performance. Such costs include, but are not limited to, conversion costs, acquisition costs, pre-opening costs and severance costs. We exclude these costs from the calculation of Adjusted FFO and Adjusted EBITDA. |
• | Variable stock compensation - We exclude the cost associated with our variable stock compensation. This cost is subject to volatility related to the price and dividends of our common stock that does not necessarily correspond to our operating performance. |
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