(Mark One) | ||
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the quarterly period ended June 30, 2013 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the transition period from to |
Commission file number: 001-14236 | (FelCor Lodging Trust Incorporated) | ||
Commission file number: 333-39595-01 | (FelCor Lodging Limited Partnership) |
Maryland | (FelCor Lodging Trust Incorporated) | 75-2541756 | |||
Delaware | (FelCor Lodging Limited Partnership) | 75-2544994 | |||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||
545 E. John Carpenter Freeway, Suite 1300, Irving, Texas | 75062 | |||
(Address of Principal Executive Offices) | (Zip Code) |
FelCor Lodging Trust Incorporated | þ | Yes | ¨ | No | ||
FelCor Lodging Limited Partnership | þ | Yes | ¨ | No |
FelCor Lodging Trust Incorporated | þ | Yes | ¨ | No | ||
FelCor Lodging Limited Partnership | þ | Yes | ¨ | No |
FelCor Lodging Trust Incorporated: | ||
Large accelerated filer o | Accelerated filer þ | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
FelCor Lodging Limited Partnership: | ||
Large accelerated filer o | Accelerated filer ¨ | |
Non-accelerated filer þ (Do not check if a smaller reporting company) | Smaller reporting company o |
FelCor Lodging Trust Incorporated | ¨ | Yes | þ | No | ||
FelCor Lodging Limited Partnership | ¨ | Yes | þ | No |
• | presents our business as a whole (the same way management views and operates the business); |
• | eliminates duplicative disclosure and provides a more streamlined presentation (a substantial portion of our disclosure applies to both FelCor and FelCor LP); and |
• | saves time and cost by preparing combined reports instead of separate reports. |
Page | |||
PART I − FINANCIAL INFORMATION | |||
Item 1. | Financial Statements | ||
FelCor Lodging Trust Incorporated: | |||
Consolidated Balance Sheets - June 30, 2013 and December 31, 2012 (unaudited) | |||
Consolidated Statements of Operations – For the Three and Six Months Ended June 30, 2013 and 2012 (unaudited) | |||
Consolidated Statements of Comprehensive Income (Loss) – For the Three and Six Months Ended June 30, 2013 and 2012 (unaudited) | |||
Consolidated Statements of Changes in Equity – For the Six Months Ended June 30, 2013 and 2012 (unaudited) | |||
Consolidated Statements of Cash Flows – For the Six Months Ended June 30, 2013 and 2012 (unaudited) | |||
FelCor Lodging Limited Partnership: | |||
Consolidated Balance Sheets - June 30, 2013 and December 31, 2012 (unaudited) | |||
Consolidated Statements of Operations – For the Three and Six Months Ended June 30, 2013 and 2012 (unaudited) | |||
Consolidated Statements of Comprehensive Income (Loss) – For the Three and Six Months Ended June 30, 2013 and 2012 (unaudited) | |||
Consolidated Statements of Partners’ Capital – For the Six Months Ended June 30, 2013 and 2012 (unaudited) | |||
Consolidated Statements of Cash Flows – For the Six Months Ended June 30, 2013 and 2012 (unaudited) | |||
Notes to Consolidated Financial Statements | |||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
General | |||
Results of Operations | |||
Non-GAAP Financial Measures | |||
Pro Rata Share of Rooms Owned | |||
Hotel Portfolio Composition | |||
Hotel Operating Statistics | |||
Hotel Portfolio | |||
Liquidity and Capital Resources | |||
Inflation | |||
Seasonality | |||
Disclosure Regarding Forward-Looking Statements | |||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | ||
Item 4. | Controls and Procedures | ||
PART II − OTHER INFORMATION | |||
Item 6. | Exhibits | ||
SIGNATURES |
Item 1. | Financial Statements. |
June 30, 2013 | December 31, 2012 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $945,192 and $929,298 at June 30, 2013 and December 31, 2012, respectively | $ | 1,718,269 | $ | 1,794,564 | |||
Hotel development | 170,084 | 146,079 | |||||
Investment in unconsolidated entities | 52,751 | 55,082 | |||||
Hotel held for sale | 19,252 | — | |||||
Cash and cash equivalents | 66,235 | 45,745 | |||||
Restricted cash | 77,881 | 77,927 | |||||
Accounts receivable, net of allowance for doubtful accounts of $212 and $469 at June 30, 2013 and December 31, 2012, respectively | 41,029 | 25,383 | |||||
Deferred expenses, net of accumulated amortization of $17,052 and $13,820 at June 30, 2013 and December 31, 2012, respectively | 32,543 | 34,262 | |||||
Other assets | 31,123 | 23,391 | |||||
Total assets | $ | 2,209,167 | $ | 2,202,433 | |||
Liabilities and Equity | |||||||
Debt, net of discount of $7,606 and $10,318 at June 30, 2013 and December 31, 2012, respectively | $ | 1,691,946 | $ | 1,630,525 | |||
Distributions payable | 8,545 | 8,545 | |||||
Accrued expenses and other liabilities | 149,868 | 138,442 | |||||
Total liabilities | 1,850,359 | 1,777,512 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests in FelCor LP, 621 units issued and outstanding at June 30, 2013 and December 31, 2012 | 3,672 | 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 June 30, 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 June 30, 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 June 30, 2013 and December 31, 2012, respectively | 1,241 | 1,241 | |||||
Additional paid-in capital | 2,354,659 | 2,353,581 | |||||
Accumulated other comprehensive income | 25,120 | 26,039 | |||||
Accumulated deficit | (2,529,192 | ) | (2,464,968 | ) | |||
Total FelCor stockholders’ equity | 330,602 | 394,667 | |||||
Noncontrolling interests in other partnerships | 24,534 | 27,352 | |||||
Total equity | 355,136 | 422,019 | |||||
Total liabilities and equity | $ | 2,209,167 | $ | 2,202,433 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues: | |||||||||||||||
Hotel operating revenue | $ | 247,977 | $ | 240,133 | $ | 464,642 | $ | 444,221 | |||||||
Other revenue | 1,050 | 956 | 1,449 | 1,231 | |||||||||||
Total revenues | 249,027 | 241,089 | 466,091 | 445,452 | |||||||||||
Expenses: | |||||||||||||||
Hotel departmental expenses | 88,011 | 83,336 | 171,216 | 160,825 | |||||||||||
Other property-related costs | 62,650 | 60,699 | 124,648 | 120,059 | |||||||||||
Management and franchise fees | 9,315 | 11,254 | 18,845 | 20,898 | |||||||||||
Taxes, insurance and lease expense | 25,245 | 24,423 | 47,754 | 45,990 | |||||||||||
Corporate expenses | 6,694 | 6,167 | 14,526 | 14,379 | |||||||||||
Depreciation and amortization | 31,132 | 29,773 | 62,146 | 59,310 | |||||||||||
Impairment loss | 27,706 | — | 27,706 | — | |||||||||||
Conversion expenses | 587 | — | 1,215 | — | |||||||||||
Other expenses | 3,916 | 800 | 4,737 | 1,763 | |||||||||||
Total operating expenses | 255,256 | 216,452 | 472,793 | 423,224 | |||||||||||
Operating income (loss) | (6,229 | ) | 24,637 | (6,702 | ) | 22,228 | |||||||||
Interest expense, net | (26,574 | ) | (30,933 | ) | (53,057 | ) | (61,328 | ) | |||||||
Debt extinguishment | — | (137 | ) | — | (144 | ) | |||||||||
Loss before equity in income from unconsolidated entities | (32,803 | ) | (6,433 | ) | (59,759 | ) | (39,244 | ) | |||||||
Equity in income from unconsolidated entities | 1,905 | 1,362 | 1,994 | 1,138 | |||||||||||
Loss from continuing operations | (30,898 | ) | (5,071 | ) | (57,765 | ) | (38,106 | ) | |||||||
Income from discontinued operations | 8,103 | 17,099 | 8,365 | 21,273 | |||||||||||
Net income (loss) | (22,795 | ) | 12,028 | (49,400 | ) | (16,833 | ) | ||||||||
Net loss (income) attributable to noncontrolling interests in other partnerships | 3,972 | (148 | ) | 4,212 | 54 | ||||||||||
Net loss (income) attributable to redeemable noncontrolling interests in FelCor LP | 140 | (11 | ) | 320 | 185 | ||||||||||
Net income (loss) attributable to FelCor | (18,683 | ) | 11,869 | (44,868 | ) | (16,594 | ) | ||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | (19,356 | ) | (19,356 | ) | |||||||
Net income (loss) attributable to FelCor common stockholders | $ | (28,361 | ) | $ | 2,191 | $ | (64,224 | ) | $ | (35,950 | ) | ||||
Basic and diluted per common share data: | |||||||||||||||
Loss from continuing operations | $ | (0.29 | ) | $ | (0.12 | ) | $ | (0.59 | ) | $ | (0.46 | ) | |||
Net income (loss) | $ | (0.23 | ) | $ | 0.02 | $ | (0.52 | ) | $ | (0.29 | ) | ||||
Basic and diluted weighted average common shares outstanding | 123,814 | 123,638 | 123,814 | 123,651 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss) | $ | (22,795 | ) | $ | 12,028 | $ | (49,400 | ) | $ | (16,833 | ) | ||||
Foreign currency translation adjustment | (567 | ) | (317 | ) | (924 | ) | (9 | ) | |||||||
Comprehensive income (loss) | (23,362 | ) | 11,711 | (50,324 | ) | (16,842 | ) | ||||||||
Comprehensive loss (income) attributable to noncontrolling interests in other partnerships | 3,972 | (148 | ) | 4,212 | 54 | ||||||||||
Comprehensive loss (income) attributable to redeemable noncontrolling interests in FelCor LP | 143 | (9 | ) | 325 | 185 | ||||||||||
Comprehensive income (loss) attributable to FelCor | $ | (19,247 | ) | $ | 11,554 | $ | (45,787 | ) | $ | (16,603 | ) |
Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Noncontrolling Interests in Other Partnerships | |||||||||||||||||||||||||||||||||
Number of Shares | Amount | Number of Shares | Amount | Accumulated Deficit | Comprehensive Loss | Total Equity | |||||||||||||||||||||||||||||||
Balance at December 31, 2011 | 12,948 | $ | 478,774 | 124,281 | $ | 1,243 | $ | 2,353,251 | $ | 25,738 | $ | (2,297,468 | ) | $ | 25,357 | $ | 586,895 | ||||||||||||||||||||
Amortization of stock awards | — | — | — | — | 432 | — | — | — | 432 | ||||||||||||||||||||||||||||
Forfeiture of stock awards | — | — | (63 | ) | (1 | ) | 193 | — | (199 | ) | — | (7 | ) | ||||||||||||||||||||||||
Conversion of operating partnership units into common shares | — | — | 9 | — | 33 | — | — | — | 33 | ||||||||||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | (512 | ) | — | — | — | (512 | ) | ||||||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | — | 2,310 | 2,310 | ||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | (620 | ) | (620 | ) | ||||||||||||||||||||||||||
Other | — | — | — | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||||||||||||
Preferred dividends: | |||||||||||||||||||||||||||||||||||||
$0.975 per Series A preferred share | — | — | — | — | — | — | (12,558 | ) | — | (12,558 | ) | ||||||||||||||||||||||||||
$1.00 per Series C depositary preferred share | — | — | — | — | — | — | (6,798 | ) | — | (6,798 | ) | ||||||||||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | — | — | — | (9 | ) | — | — | $ | (9 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (16,594 | ) | (54 | ) | (16,648 | ) | |||||||||||||||||||||||||
Comprehensive loss | $ | (16,657 | ) | (16,657 | ) | ||||||||||||||||||||||||||||||||
Balance at June 30, 2012 | 12,948 | $ | 478,774 | 124,227 | $ | 1,242 | $ | 2,353,397 | $ | 25,729 | $ | (2,333,621 | ) | $ | 26,993 | $ | 552,514 | ||||||||||||||||||||
Balance at December 31, 2012 | 12,948 | $ | 478,774 | 124,117 | $ | 1,241 | $ | 2,353,581 | $ | 26,039 | $ | (2,464,968 | ) | $ | 27,352 | $ | 422,019 | ||||||||||||||||||||
Issuance of stock awards | — | — | 5 | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Stock awards - amortization and severance | — | — | — | — | 2,173 | — | — | — | 2,173 | ||||||||||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | (1,095 | ) | — | — | — | (1,095 | ) | ||||||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | — | 1,840 | 1,840 | ||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | (446 | ) | (446 | ) | ||||||||||||||||||||||||||
Preferred dividends: | |||||||||||||||||||||||||||||||||||||
$0.975 per Series A preferred share | — | — | — | — | — | — | (12,558 | ) | — | (12,558 | ) | ||||||||||||||||||||||||||
$1.00 per Series C depositary preferred share | — | — | — | — | — | — | (6,798 | ) | — | (6,798 | ) | ||||||||||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | — | — | — | (919 | ) | — | — | $ | (919 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (44,868 | ) | (4,212 | ) | (49,080 | ) | |||||||||||||||||||||||||
Comprehensive loss | $ | (49,999 | ) | (49,999 | ) | ||||||||||||||||||||||||||||||||
Balance at June 30, 2013 | 12,948 | $ | 478,774 | 124,122 | $ | 1,241 | $ | 2,354,659 | $ | 25,120 | $ | (2,529,192 | ) | $ | 24,534 | $ | 355,136 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (49,400 | ) | $ | (16,833 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 63,194 | 64,781 | |||||
Gain on sale of hotels, net | (7,259 | ) | (16,719 | ) | |||
Amortization of deferred financing fees and debt discount | 5,426 | 9,072 | |||||
Amortization of fixed stock and directors’ compensation | 3,150 | 2,538 | |||||
Equity based severance | 822 | — | |||||
Equity in income from unconsolidated entites | (1,994 | ) | (1,138 | ) | |||
Distributions of income from unconsolidated entities | 2,384 | 2,098 | |||||
Debt extinguishment | — | 812 | |||||
Impairment loss | 27,706 | 1,335 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (15,803 | ) | (3,776 | ) | |||
Other assets | (7,211 | ) | (8,765 | ) | |||
Accrued expenses and other liabilities | 8,256 | (3,458 | ) | ||||
Net cash flow provided by operating activities | 29,271 | 29,947 | |||||
Cash flows from investing activities: | |||||||
Improvements and additions to hotels | (47,023 | ) | (73,349 | ) | |||
Hotel development | (22,220 | ) | (10,317 | ) | |||
Net proceeds from asset dispositions | 20,479 | 100,406 | |||||
Change in restricted cash – investing | 46 | 463 | |||||
Distributions from unconsolidated entities | 3,441 | 9,103 | |||||
Contributions to unconsolidated entities | (1,500 | ) | — | ||||
Net cash flow provided by (used in) investing activities | (46,777 | ) | 26,306 | ||||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 127,245 | 71,000 | |||||
Repayment of borrowings | (68,535 | ) | (137,758 | ) | |||
Payment of deferred financing fees | (2,698 | ) | (1,453 | ) | |||
Distributions paid to noncontrolling interests | (446 | ) | (620 | ) | |||
Contributions from noncontrolling interests | 1,840 | 2,310 | |||||
Distributions paid to preferred stockholders | (19,356 | ) | (19,356 | ) | |||
Net cash flow provided by (used in) financing activities | 38,050 | (85,877 | ) | ||||
Effect of exchange rate changes on cash | (54 | ) | (35 | ) | |||
Net change in cash and cash equivalents | 20,490 | (29,659 | ) | ||||
Cash and cash equivalents at beginning of periods | 45,745 | 93,758 | |||||
Cash and cash equivalents at end of periods | $ | 66,235 | $ | 64,099 | |||
Supplemental cash flow information – interest paid, net of capitalized interest | $ | 38,301 | $ | 54,586 |
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $945,192 and $929,298 at June 30, 2013 and December 31, 2012, respectively | $ | 1,718,269 | $ | 1,794,564 | |||
Hotel development | 170,084 | 146,079 | |||||
Investment in unconsolidated entities | 52,751 | 55,082 | |||||
Hotel held for sale | 19,252 | — | |||||
Cash and cash equivalents | 66,235 | 45,745 | |||||
Restricted cash | 77,881 | 77,927 | |||||
Accounts receivable, net of allowance for doubtful accounts of $212 and $469 at June 30, 2013 and December 31, 2012, respectively | 41,029 | 25,383 | |||||
Deferred expenses, net of accumulated amortization of $17,052 and $13,820 at June 30, 2013 and December 31, 2012, respectively | 32,543 | 34,262 | |||||
Other assets | 31,123 | 23,391 | |||||
Total assets | $ | 2,209,167 | $ | 2,202,433 | |||
Liabilities and Partners’ Capital | |||||||
Debt, net of discount of $7,606 and $10,318 at June 30, 2013 and December 31, 2012, respectively | $ | 1,691,946 | $ | 1,630,525 | |||
Distributions payable | 8,545 | 8,545 | |||||
Accrued expenses and other liabilities | 149,868 | 138,442 | |||||
Total liabilities | 1,850,359 | 1,777,512 | |||||
Commitments and contingencies | |||||||
Redeemable units, 621 units issued and outstanding at June 30, 2013 and December 31, 2012 | 3,672 | 2,902 | |||||
Capital: | |||||||
Preferred units: | |||||||
Series A Cumulative Convertible Preferred Units, 12,880 units issued and outstanding at June 30, 2013 and December 31, 2012 | 309,362 | 309,362 | |||||
Series C Cumulative Redeemable Preferred Units, 68 units issued and outstanding at June 30, 2013 and December 31, 2012 | 169,412 | 169,412 | |||||
Common units, 124,122 and 124,117 units issued and outstanding at June 30, 2013 and December 31, 2012, respectively | (173,399 | ) | (110,258 | ) | |||
Accumulated other comprehensive income | 25,227 | 26,151 | |||||
Total FelCor LP partners’ capital | 330,602 | 394,667 | |||||
Noncontrolling interests | 24,534 | 27,352 | |||||
Total partners’ capital | 355,136 | 422,019 | |||||
Total liabilities and partners’ capital | $ | 2,209,167 | $ | 2,202,433 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues: | |||||||||||||||
Hotel operating revenue | $ | 247,977 | $ | 240,133 | $ | 464,642 | $ | 444,221 | |||||||
Other revenue | 1,050 | 956 | 1,449 | 1,231 | |||||||||||
Total revenues | 249,027 | 241,089 | 466,091 | 445,452 | |||||||||||
Expenses: | |||||||||||||||
Hotel departmental expenses | 88,011 | 83,336 | 171,216 | 160,825 | |||||||||||
Other property-related costs | 62,650 | 60,699 | 124,648 | 120,059 | |||||||||||
Management and franchise fees | 9,315 | 11,254 | 18,845 | 20,898 | |||||||||||
Taxes, insurance and lease expense | 25,245 | 24,423 | 47,754 | 45,990 | |||||||||||
Corporate expenses | 6,694 | 6,167 | 14,526 | 14,379 | |||||||||||
Depreciation and amortization | 31,132 | 29,773 | 62,146 | 59,310 | |||||||||||
Impairment loss | 27,706 | — | 27,706 | — | |||||||||||
Conversion expenses | 587 | — | 1,215 | — | |||||||||||
Other expenses | 3,916 | 800 | 4,737 | 1,763 | |||||||||||
Total operating expenses | 255,256 | 216,452 | 472,793 | 423,224 | |||||||||||
Operating income (loss) | (6,229 | ) | 24,637 | (6,702 | ) | 22,228 | |||||||||
Interest expense, net | (26,574 | ) | (30,933 | ) | (53,057 | ) | (61,328 | ) | |||||||
Debt extinguishment | — | (137 | ) | — | (144 | ) | |||||||||
Loss before equity in income from unconsolidated entities | (32,803 | ) | (6,433 | ) | (59,759 | ) | (39,244 | ) | |||||||
Equity in income from unconsolidated entities | 1,905 | 1,362 | 1,994 | 1,138 | |||||||||||
Loss from continuing operations | (30,898 | ) | (5,071 | ) | (57,765 | ) | (38,106 | ) | |||||||
Income from discontinued operations | 8,103 | 17,099 | 8,365 | 21,273 | |||||||||||
Net income (loss) | (22,795 | ) | 12,028 | (49,400 | ) | (16,833 | ) | ||||||||
Net loss (income) attributable to noncontrolling interests | 3,972 | (148 | ) | 4,212 | 54 | ||||||||||
Net income (loss) attributable to FelCor LP | (18,823 | ) | 11,880 | (45,188 | ) | (16,779 | ) | ||||||||
Preferred distributions | (9,678 | ) | (9,678 | ) | (19,356 | ) | (19,356 | ) | |||||||
Net income (loss) attributable to FelCor LP common unitholders | $ | (28,501 | ) | $ | 2,202 | $ | (64,544 | ) | $ | (36,135 | ) | ||||
Basic and diluted per common unit data: | |||||||||||||||
Loss from continuing operations | $ | (0.29 | ) | $ | (0.12 | ) | $ | (0.59 | ) | $ | (0.46 | ) | |||
Net income (loss) | $ | (0.23 | ) | $ | 0.02 | $ | (0.52 | ) | $ | (0.29 | ) | ||||
Basic and diluted weighted average common units outstanding | 124,435 | 124,266 | 124,435 | 124,283 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss) | $ | (22,795 | ) | $ | 12,028 | $ | (49,400 | ) | $ | (16,833 | ) | ||||
Foreign currency translation adjustment | (567 | ) | (317 | ) | (924 | ) | (9 | ) | |||||||
Comprehensive income (loss) | (23,362 | ) | 11,711 | (50,324 | ) | (16,842 | ) | ||||||||
Comprehensive loss (income) attributable to noncontrolling interests | 3,972 | (148 | ) | 4,212 | 54 | ||||||||||
Comprehensive income (loss) attributable to FelCor LP | $ | (19,390 | ) | $ | 11,563 | $ | (46,112 | ) | $ | (16,788 | ) |
Preferred Units | Common Units | Accumulated Other Comprehensive Income | Noncontrolling Interests | Comprehensive Loss | Total Partners’ Capital | ||||||||||||||||||
Balance at December 31, 2011 | $ | 478,774 | $ | 56,916 | $ | 25,848 | $ | 25,357 | $ | 586,895 | |||||||||||||
FelCor restricted stock compensation | — | 425 | — | — | 425 | ||||||||||||||||||
Contributions | — | — | — | 2,310 | 2,310 | ||||||||||||||||||
Distributions | — | (19,356 | ) | — | (620 | ) | (19,976 | ) | |||||||||||||||
Allocation to redeemable units | — | (294 | ) | — | — | (294 | ) | ||||||||||||||||
Other | — | (4 | ) | — | — | (4 | ) | ||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||
Foreign exchange translation | (9 | ) | $ | (9 | ) | ||||||||||||||||||
Net loss | (16,779 | ) | (54 | ) | (16,833 | ) | |||||||||||||||||
Comprehensive loss | $ | (16,842 | ) | (16,842 | ) | ||||||||||||||||||
Balance at June 30, 2012 | $ | 478,774 | $ | 20,908 | $ | 25,839 | $ | 26,993 | $ | 552,514 | |||||||||||||
Balance at December 31, 2012 | $ | 478,774 | $ | (110,258 | ) | $ | 26,151 | $ | 27,352 | $ | 422,019 | ||||||||||||
FelCor restricted stock compensation | — | 2,173 | — | — | 2,173 | ||||||||||||||||||
Contributions | — | — | — | 1,840 | 1,840 | ||||||||||||||||||
Distributions | — | (19,356 | ) | — | (446 | ) | (19,802 | ) | |||||||||||||||
Allocation to redeemable units | — | (770 | ) | — | — | (770 | ) | ||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||
Foreign exchange translation | (924 | ) | $ | (924 | ) | ||||||||||||||||||
Net loss | (45,188 | ) | (4,212 | ) | (49,400 | ) | |||||||||||||||||
Comprehensive loss | $ | (50,324 | ) | (50,324 | ) | ||||||||||||||||||
Balance at June 30, 2013 | $ | 478,774 | $ | (173,399 | ) | $ | 25,227 | $ | 24,534 | $ | 355,136 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (49,400 | ) | $ | (16,833 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 63,194 | 64,781 | |||||
Gain on sale of hotels, net | (7,259 | ) | (16,719 | ) | |||
Amortization of deferred financing fees and debt discount | 5,426 | 9,072 | |||||
Amortization of fixed stock and directors’ compensation | 3,150 | 2,538 | |||||
Equity based severance | 822 | — | |||||
Equity in income from unconsolidated entites | (1,994 | ) | (1,138 | ) | |||
Distributions of income from unconsolidated entities | 2,384 | 2,098 | |||||
Debt extinguishment | — | 812 | |||||
Impairment loss | 27,706 | 1,335 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (15,803 | ) | (3,776 | ) | |||
Other assets | (7,211 | ) | (8,765 | ) | |||
Accrued expenses and other liabilities | 8,256 | (3,458 | ) | ||||
Net cash flow provided by operating activities | 29,271 | 29,947 | |||||
Cash flows from investing activities: | |||||||
Improvements and additions to hotels | (47,023 | ) | (73,349 | ) | |||
Hotel development | (22,220 | ) | (10,317 | ) | |||
Net proceeds from asset dispositions | 20,479 | 100,406 | |||||
Change in restricted cash – investing | 46 | 463 | |||||
Distributions from unconsolidated entities | 3,441 | 9,103 | |||||
Contributions to unconsolidated entities | (1,500 | ) | — | ||||
Net cash flow provided by (used in) investing activities | (46,777 | ) | 26,306 | ||||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 127,245 | 71,000 | |||||
Repayment of borrowings | (68,535 | ) | (137,758 | ) | |||
Payment of deferred financing fees | (2,698 | ) | (1,453 | ) | |||
Distributions paid to noncontrolling interests | (446 | ) | (620 | ) | |||
Contributions from noncontrolling interests | 1,840 | 2,310 | |||||
Distributions paid to preferred unitholders | (19,356 | ) | (19,356 | ) | |||
Net cash flow provided by (used in) financing activities | 38,050 | (85,877 | ) | ||||
Effect of exchange rate changes on cash | (54 | ) | (35 | ) | |||
Net change in cash and cash equivalents | 20,490 | (29,659 | ) | ||||
Cash and cash equivalents at beginning of periods | 45,745 | 93,758 | |||||
Cash and cash equivalents at end of periods | $ | 66,235 | $ | 64,099 | |||
Supplemental cash flow information – interest paid, net of capitalized interest | $ | 38,301 | $ | 54,586 |
1. | Organization |
Brand | Hotels | Rooms | ||||||
Embassy Suites Hotels® | 35 | 9,116 | ||||||
Wyndham® and Wyndham Grand® | 8 | 2,526 | ||||||
Holiday Inn® | 4 | 1,702 | ||||||
Sheraton® and Westin® | 4 | 1,604 | ||||||
DoubleTree by Hilton® and Hilton® | 6 | 1,450 | ||||||
Marriott® and Renaissance® | 3 | 1,321 | ||||||
Fairmont® | 1 | 383 | ||||||
Morgans and Royalton | 2 | 282 | ||||||
Total | 63 | 18,384 |
2. | Investment in Unconsolidated Entities |
June 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Investment in hotels and other properties, net of accumulated depreciation | $ | 149,647 | $ | 155,888 | |||||
Total assets | $ | 165,898 | $ | 170,477 | |||||
Debt | $ | 147,381 | $ | 148,395 | |||||
Total liabilities | $ | 152,362 | $ | 154,139 | |||||
Equity | $ | 13,536 | $ | 16,338 |
2. | Investment in Unconsolidated Entities — (continued) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total revenues | $ | 20,543 | $ | 19,605 | $ | 34,151 | $ | 32,937 | |||||||||
Net income | $ | 4,740 | $ | 3,655 | $ | 5,848 | $ | 4,136 | |||||||||
Net income attributable to FelCor | $ | 2,370 | $ | 1,827 | $ | 2,924 | $ | 2,068 | |||||||||
Depreciation of cost in excess of book value | (465 | ) | (465 | ) | (930 | ) | (930 | ) | |||||||||
Equity in income from unconsolidated entities | $ | 1,905 | $ | 1,362 | $ | 1,994 | $ | 1,138 |
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
Hotel-related investments | $ | (2,058 | ) | $ | 246 | ||
Cost in excess of book value of hotel investments | 45,983 | 46,913 | |||||
Land and condominium investments | 8,826 | 7,923 | |||||
$ | 52,751 | $ | 55,082 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Hotel investments | $ | 1,883 | $ | 1,286 | $ | 2,591 | $ | 1,691 | |||||||
Other investments | 22 | 76 | (597 | ) | (553 | ) | |||||||||
Equity in income from unconsolidated entities | $ | 1,905 | $ | 1,362 | $ | 1,994 | $ | 1,138 |
3. | Debt |
Encumbered | Interest | Maturity | June 30, | December 31, | ||||||||||||
Hotels | Rate (%) | Date | 2013 | 2012 | ||||||||||||
Line of credit | 9 | L + 3.375 | June 2016(a) | $ | 117,000 | $ | 56,000 | |||||||||
Hotel mortgage debt | ||||||||||||||||
Mortgage debt(b) | 5 | 6.66 | June - August 2014 | 64,396 | 65,431 | |||||||||||
Mortgage debt | 1 | 5.81 | July 2016 | 10,157 | 10,405 | |||||||||||
Mortgage debt(b) | 4 | 4.95 | October 2022 | 127,289 | 128,066 | |||||||||||
Mortgage debt | 1 | 4.94 | October 2022 | 31,945 | 32,176 | |||||||||||
Senior notes | ||||||||||||||||
Senior secured notes | 11 | 10.00 | October 2014 | 226,298 | 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(c) | — | L + 1.25 | May 2016 | 64,861 | 64,861 | |||||||||||
Total | 47 | $ | 1,691,946 | $ | 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) | This loan is related to our Knickerbocker development 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. |
4. | Hotel Operating Revenue, Departmental Expenses, and Other Property-Related Costs |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Room revenue | $ | 191,982 | $ | 186,906 | $ | 359,293 | $ | 345,656 | |||||||||
Food and beverage revenue | 43,397 | 38,632 | 81,367 | 72,974 | |||||||||||||
Other operating departments | 12,598 | 14,595 | 23,982 | 25,591 | |||||||||||||
Total hotel operating revenue | $ | 247,977 | $ | 240,133 | $ | 464,642 | $ | 444,221 |
Three Months Ended June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||
Room | $ | 49,363 | 19.9 | % | $ | 47,694 | 19.9 | % | |||||||
Food and beverage | 32,610 | 13.2 | 29,799 | 12.4 | |||||||||||
Other operating departments | 6,038 | 2.4 | 5,843 | 2.4 | |||||||||||
Total hotel departmental expenses | $ | 88,011 | 35.5 | % | $ | 83,336 | 34.7 | % |
Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||
Room | $ | 96,091 | 20.7 | % | $ | 91,853 | 20.7 | % | |||||||
Food and beverage | 63,655 | 13.7 | 57,732 | 13.0 | |||||||||||
Other operating departments | 11,470 | 2.4 | 11,240 | 2.5 | |||||||||||
Total hotel departmental expenses | $ | 171,216 | 36.8 | % | $ | 160,825 | 36.2 | % |
4. | Hotel Operating Revenue, Departmental Expenses, and Other Property-Related Costs — (continued) |
Three Months Ended June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||
Hotel general and administrative expense | $ | 21,116 | 8.5 | % | $ | 20,762 | 8.6 | % | |||||||
Marketing | 20,424 | 8.2 | 19,191 | 8.0 | |||||||||||
Repair and maintenance | 11,755 | 4.7 | 11,562 | 4.8 | |||||||||||
Utilities | 9,355 | 3.9 | 9,184 | 3.9 | |||||||||||
Total other property-related costs | $ | 62,650 | 25.3 | % | $ | 60,699 | 25.3 | % |
Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||
Hotel general and administrative expense | $ | 41,896 | 9.0 | % | $ | 40,438 | 9.1 | % | |||||||
Marketing | 40,359 | 8.7 | 38,181 | 8.6 | |||||||||||
Repair and maintenance | 23,811 | 5.1 | 23,068 | 5.2 | |||||||||||
Utilities | 18,582 | 4.0 | 18,372 | 4.1 | |||||||||||
Total other property-related costs | $ | 124,648 | 26.8 | % | $ | 120,059 | 27.0 | % |
5. | Taxes, Insurance and Lease Expense |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Hotel lease expense(a) | $ | 12,166 | $ | 11,236 | $ | 21,723 | $ | 20,429 | |||||||
Land lease expense(b) | 2,772 | 2,800 | 5,166 | 5,187 | |||||||||||
Real estate and other taxes | 7,915 | 7,629 | 15,742 | 15,400 | |||||||||||
Property insurance, general liability insurance and other | 2,392 | 2,758 | 5,123 | 4,974 | |||||||||||
Total taxes, insurance and lease expense | $ | 25,245 | $ | 24,423 | $ | 47,754 | $ | 45,990 |
(a) | Hotel lease expense is recorded by the consolidated operating lessees of 12 hotels owned by unconsolidated entities and is partially (generally 49%) offset through noncontrolling interests in other partnerships. Our 50% share of the corresponding lease income is recorded through equity in income from unconsolidated entities. Hotel lease expense includes percentage rent of $6.7 million and $5.8 million for the three months ended June 30, 2013 and 2012, respectively, and $10.8 million and $9.6 million for the six months ended June 30, 2013 and 2012, respectively. |
(b) | Land lease expense includes percentage rent of $1.3 million and $1.5 million for the three months ended June 30, 2013 and 2012, respectively, and $2.3 million and $2.4 million for the six months ended June 30, 2013 and 2012, respectively. |
6. | Impairment |
6. | Impairment – (continued) |
• | with respect to one hotel, we used a discounted cash flow analysis with an estimated stabilized growth rate of 3.0%, a discounted cash flow term of five years, a terminal capitalization rate of 8.0%, and a discount rate of 10.0%; and |
• | with respect to the other hotel, we used information based on EBITDA multiples ranging from 10 to 12 times. |
7. | Discontinued Operations |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Hotel operating revenue | $ | 3,688 | $ | 23,804 | $ | 7,313 | $ | 55,247 | |||||||||||
Operating expenses(a) | (2,844 | ) | (21,511 | ) | (6,207 | ) | (47,413 | ) | |||||||||||
Operating income from discontinued operations | 844 | 2,293 | 1,106 | 7,834 | |||||||||||||||
Interest expense, net | — | (1,245 | ) | — | (2,612 | ) | |||||||||||||
Debt extinguishment | — | (668 | ) | — | (668 | ) | |||||||||||||
Gain on sale of hotels, net | 7,259 | 16,719 | 7,259 | 16,719 | |||||||||||||||
Income from discontinued operations | $ | 8,103 | $ | 17,099 | $ | 8,365 | $ | 21,273 |
8. | Income (Loss) Per Share/Unit |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Numerator: | |||||||||||||||
Net income (loss) attributable to FelCor | $ | (18,683 | ) | $ | 11,869 | $ | (44,868 | ) | $ | (16,594 | ) | ||||
Discontinued operations attributable to FelCor | (8,063 | ) | (17,014 | ) | (8,324 | ) | (21,166 | ) | |||||||
Loss from continuing operations attributable to FelCor | (26,746 | ) | (5,145 | ) | (53,192 | ) | (37,760 | ) | |||||||
Less: Preferred dividends | (9,678 | ) | (9,678 | ) | (19,356 | ) | (19,356 | ) | |||||||
Less: Undistributed earnings allocated to unvested restricted stock | — | (10 | ) | — | — | ||||||||||
Numerator for continuing operations attributable to FelCor common stockholders | (36,424 | ) | (14,833 | ) | (72,548 | ) | (57,116 | ) | |||||||
Discontinued operations attributable to FelCor | 8,063 | 17,014 | 8,324 | 21,166 | |||||||||||
Numerator for basic and diluted income (loss) attributable to FelCor common stockholders | $ | (28,361 | ) | $ | 2,181 | $ | (64,224 | ) | $ | (35,950 | ) | ||||
Denominator: | |||||||||||||||
Denominator for basic and diluted income (loss) per share | 123,814 | 123,638 | 123,814 | 123,651 | |||||||||||
Basic and diluted income (loss) per share data: | |||||||||||||||
Loss from continuing operations | $ | (0.29 | ) | $ | (0.12 | ) | $ | (0.59 | ) | $ | (0.46 | ) | |||
Discontinued operations | $ | 0.07 | $ | 0.14 | $ | 0.07 | $ | 0.17 | |||||||
Net income (loss) | $ | (0.23 | ) | $ | 0.02 | $ | (0.52 | ) | $ | (0.29 | ) |
8. | Income (Loss) Per Share/Unit — (continued) |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Numerator: | |||||||||||||||
Net income (loss) attributable to FelCor LP | $ | (18,823 | ) | $ | 11,880 | $ | (45,188 | ) | $ | (16,779 | ) | ||||
Discontinued operations attributable to FelCor LP | (8,103 | ) | (17,099 | ) | (8,365 | ) | (21,273 | ) | |||||||
Loss from continuing operations attributable to FelCor LP | (26,926 | ) | (5,219 | ) | (53,553 | ) | (38,052 | ) | |||||||
Less: Preferred distributions | (9,678 | ) | (9,678 | ) | (19,356 | ) | (19,356 | ) | |||||||
Less: Undistributed earnings allocated to FelCor’s unvested restricted stock | — | (10 | ) | — | — | ||||||||||
Numerator for continuing operations attributable to FelCor LP common unitholders | (36,604 | ) | (14,907 | ) | (72,909 | ) | (57,408 | ) | |||||||
Discontinued operations attributable to FelCor LP | 8,103 | 17,099 | 8,365 | 21,273 | |||||||||||
Numerator for basic and diluted income (loss) attributable to FelCor common unitholders | $ | (28,501 | ) | $ | 2,192 | $ | (64,544 | ) | $ | (36,135 | ) | ||||
Denominator: | |||||||||||||||
Denominator for basic and diluted income (loss) per unit | 124,435 | 124,266 | 124,435 | 124,283 | |||||||||||
Basic and diluted income (loss) per unit data: | |||||||||||||||
Loss from continuing operations | $ | (0.29 | ) | $ | (0.12 | ) | $ | (0.59 | ) | $ | (0.46 | ) | |||
Discontinued operations | $ | 0.07 | $ | 0.14 | $ | 0.07 | $ | 0.17 | |||||||
Net income (loss) | $ | (0.23 | ) | $ | 0.02 | $ | (0.52 | ) | $ | (0.29 | ) |
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Series A convertible preferred shares/units | 9,985 | 9,985 | 9,985 | 9,985 | |||||||
FelCor restricted stock units | 576 | — | 373 | — |
9. | Fair Value of Financial Instruments |
10. | Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units |
10. | Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units - (continued) |
Six Months Ended | |||||||||
June 30, | |||||||||
2013 | 2012 | ||||||||
Balance at beginning of period | $ | 2,902 | $ | 3,026 | |||||
Conversion of units | — | (33 | ) | ||||||
Redemption value allocation | 1,095 | 512 | |||||||
Comprehensive loss: | |||||||||
Foreign exchange translation | (5 | ) | — | ||||||
Net loss | (320 | ) | (185 | ) | |||||
Balance at end of period | $ | 3,672 | $ | 3,320 |
11. | FelCor LP’s Consolidating Financial Information |
11. | FelCor LP’s Consolidating Financial Information – (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net investment in hotels | $ | 57,335 | $ | 1,076,243 | $ | 584,691 | $ | — | $ | 1,718,269 | |||||||||
Hotel development | — | — | 170,084 | — | 170,084 | ||||||||||||||
Equity investment in consolidated entities | 1,505,974 | — | — | (1,505,974 | ) | — | |||||||||||||
Investment in unconsolidated entities | 38,909 | 12,463 | 1,379 | — | 52,751 | ||||||||||||||
Hotel held for sale | — | 22 | 19,230 | — | 19,252 | ||||||||||||||
Cash and cash equivalents | 14,172 | 42,353 | 9,710 | — | 66,235 | ||||||||||||||
Restricted cash | — | 7,230 | 70,651 | — | 77,881 | ||||||||||||||
Accounts receivable, net | 206 | 39,905 | 918 | — | 41,029 | ||||||||||||||
Deferred expenses, net | 22,223 | — | 10,320 | — | 32,543 | ||||||||||||||
Other assets | 11,093 | 14,408 | 5,622 | — | 31,123 | ||||||||||||||
Total assets | $ | 1,649,912 | $ | 1,192,624 | $ | 872,605 | $ | (1,505,974 | ) | $ | 2,209,167 | ||||||||
Debt, net | $ | 1,276,298 | $ | — | $ | 415,648 | $ | — | $ | 1,691,946 | |||||||||
Distributions payable | 8,545 | — | — | — | 8,545 | ||||||||||||||
Accrued expenses and other liabilities | 30,795 | 108,237 | 10,836 | — | 149,868 | ||||||||||||||
Total liabilities | 1,315,638 | 108,237 | 426,484 | — | 1,850,359 | ||||||||||||||
Redeemable units | 3,672 | — | — | — | 3,672 | ||||||||||||||
Preferred units | 478,774 | — | — | — | 478,774 | ||||||||||||||
Common units | (148,172 | ) | 1,059,304 | 421,443 | (1,505,974 | ) | (173,399 | ) | |||||||||||
Accumulated other comprehensive income | — | 25,227 | — | — | 25,227 | ||||||||||||||
Total FelCor LP partners’ capital | 330,602 | 1,084,531 | 421,443 | (1,505,974 | ) | 330,602 | |||||||||||||
Noncontrolling interests | — | (144 | ) | 24,678 | — | 24,534 | |||||||||||||
Total partners’ capital | 330,602 | 1,084,387 | 446,121 | (1,505,974 | ) | 355,136 | |||||||||||||
Total liabilities and partners’ capital | $ | 1,649,912 | $ | 1,192,624 | $ | 872,605 | $ | (1,505,974 | ) | $ | 2,209,167 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net investment in hotels | $ | 66,945 | $ | 1,102,262 | $ | 625,357 | $ | — | $ | 1,794,564 | |||||||||
Hotel development | — | — | 146,079 | — | 146,079 | ||||||||||||||
Equity investment in consolidated entities | 1,551,377 | — | — | (1,551,377 | ) | — | |||||||||||||
Investment in unconsolidated entities | 42,508 | 11,173 | 1,401 | — | 55,082 | ||||||||||||||
Cash and cash equivalents | 8,312 | 30,425 | 7,008 | — | 45,745 | ||||||||||||||
Restricted cash | — | 9,186 | 68,741 | — | 77,927 | ||||||||||||||
Accounts receivable, net | 96 | 24,432 | 855 | — | 25,383 | ||||||||||||||
Deferred expenses, net | 22,657 | — | 11,605 | — | 34,262 | ||||||||||||||
Other assets | 8,122 | 10,322 | 4,947 | — | 23,391 | ||||||||||||||
Total assets | $ | 1,700,017 | $ | 1,187,800 | $ | 865,993 | $ | (1,551,377 | ) | $ | 2,202,433 | ||||||||
Debt, net | $ | 1,273,587 | $ | — | $ | 356,938 | $ | — | $ | 1,630,525 | |||||||||
Distributions payable | 8,545 | — | — | — | 8,545 | ||||||||||||||
Accrued expenses and other liabilities | 20,316 | 95,986 | 22,140 | — | 138,442 | ||||||||||||||
Total liabilities | 1,302,448 | 95,986 | 379,078 | — | 1,777,512 | ||||||||||||||
Redeemable units | 2,902 | — | — | — | 2,902 | ||||||||||||||
Preferred units | 478,774 | — | — | — | 478,774 | ||||||||||||||
Common units | (84,107 | ) | 1,065,938 | 459,288 | (1,551,377 | ) | (110,258 | ) | |||||||||||
Accumulated other comprehensive income | — | 26,151 | — | — | 26,151 | ||||||||||||||
Total FelCor LP partners’ capital | 394,667 | 1,092,089 | 459,288 | (1,551,377 | ) | 394,667 | |||||||||||||
Noncontrolling interests | — | (275 | ) | 27,627 | — | 27,352 | |||||||||||||
Total partners’ capital | 394,667 | 1,091,814 | 486,915 | (1,551,377 | ) | 422,019 | |||||||||||||
Total liabilities and partners’ capital | $ | 1,700,017 | $ | 1,187,800 | $ | 865,993 | $ | (1,551,377 | ) | $ | 2,202,433 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 247,977 | $ | — | $ | — | $ | 247,977 | |||||||||
Percentage lease revenue | 2,322 | — | 23,679 | (26,001 | ) | — | |||||||||||||
Other revenue | 2 | 918 | 130 | — | 1,050 | ||||||||||||||
Total revenues | 2,324 | 248,895 | 23,809 | (26,001 | ) | 249,027 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 159,976 | — | — | 159,976 | ||||||||||||||
Taxes, insurance and lease expense | 481 | 47,144 | 3,621 | (26,001 | ) | 25,245 | |||||||||||||
Corporate expenses | 272 | 4,811 | 1,611 | — | 6,694 | ||||||||||||||
Depreciation and amortization | 1,427 | 18,205 | 11,500 | — | 31,132 | ||||||||||||||
Impairment loss | 17,559 | — | 10,147 | — | 27,706 | ||||||||||||||
Conversion expenses | 4 | 292 | 291 | — | 587 | ||||||||||||||
Other expenses | 2,754 | 843 | 319 | — | 3,916 | ||||||||||||||
Total operating expenses | 22,497 | 231,271 | 27,489 | (26,001 | ) | 255,256 | |||||||||||||
Operating loss | (20,173 | ) | 17,624 | (3,680 | ) | — | (6,229 | ) | |||||||||||
Interest expense, net | (21,380 | ) | (319 | ) | (4,875 | ) | — | (26,574 | ) | ||||||||||
Loss before equity in income from unconsolidated entities | (41,553 | ) | 17,305 | (8,555 | ) | — | (32,803 | ) | |||||||||||
Equity in loss from consolidated entities | 21,183 | — | — | (21,183 | ) | — | |||||||||||||
Equity in income from unconsolidated entities | 1,547 | 369 | (11 | ) | — | 1,905 | |||||||||||||
Loss from continuing operations | (18,823 | ) | 17,674 | (8,566 | ) | (21,183 | ) | (30,898 | ) | ||||||||||
Income from discontinued operations | — | (194 | ) | 8,297 | — | 8,103 | |||||||||||||
Net loss | (18,823 | ) | 17,480 | (269 | ) | (21,183 | ) | (22,795 | ) | ||||||||||
Loss attributable to noncontrolling interests | — | (16 | ) | 3,988 | — | 3,972 | |||||||||||||
Net loss attributable to FelCor LP | (18,823 | ) | 17,464 | 3,719 | (21,183 | ) | (18,823 | ) | |||||||||||
Preferred distributions | (9,678 | ) | — | — | — | (9,678 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (28,501 | ) | $ | 17,464 | $ | 3,719 | $ | (21,183 | ) | $ | (28,501 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 240,133 | $ | — | $ | — | $ | 240,133 | |||||||||
Percentage lease revenue | 1,578 | — | 30,939 | (32,517 | ) | — | |||||||||||||
Other revenue | 4 | 823 | 129 | — | 956 | ||||||||||||||
Total revenues | 1,582 | 240,956 | 31,068 | (32,517 | ) | 241,089 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 155,289 | — | — | 155,289 | ||||||||||||||
Taxes, insurance and lease expense | 443 | 52,881 | 3,616 | (32,517 | ) | 24,423 | |||||||||||||
Corporate expenses | (1,650 | ) | 5,001 | 2,816 | — | 6,167 | |||||||||||||
Depreciation and amortization | 1,143 | 15,422 | 13,208 | — | 29,773 | ||||||||||||||
Other expenses | 59 | 672 | 69 | — | 800 | ||||||||||||||
Total operating expenses | (5 | ) | 229,265 | 19,709 | (32,517 | ) | 216,452 | ||||||||||||
Operating income | 1,587 | 11,691 | 11,359 | — | 24,637 | ||||||||||||||
Interest expense, net | (21,297 | ) | (3,991 | ) | (5,645 | ) | — | (30,933 | ) | ||||||||||
Debt extinguishment | — | (26 | ) | (111 | ) | — | (137 | ) | |||||||||||
Loss before equity in income from unconsolidated entities | (19,710 | ) | 7,674 | 5,603 | — | (6,433 | ) | ||||||||||||
Equity in loss from consolidated entities | 30,628 | — | — | (30,628 | ) | — | |||||||||||||
Equity in income from unconsolidated entities | 985 | 388 | (11 | ) | — | 1,362 | |||||||||||||
Loss from continuing operations | 11,903 | 8,062 | 5,592 | (30,628 | ) | (5,071 | ) | ||||||||||||
Income from discontinued operations | (23 | ) | (2,921 | ) | 20,043 | — | 17,099 | ||||||||||||
Net income | 11,880 | 5,141 | 25,635 | (30,628 | ) | 12,028 | |||||||||||||
Income attributable to noncontrolling interests | — | 24 | (172 | ) | — | (148 | ) | ||||||||||||
Net income attributable to FelCor LP | 11,880 | 5,165 | 25,463 | (30,628 | ) | 11,880 | |||||||||||||
Preferred distributions | (9,678 | ) | — | — | — | (9,678 | ) | ||||||||||||
Net income attributable to FelCor LP common unitholders | $ | 2,202 | $ | 5,165 | $ | 25,463 | $ | (30,628 | ) | $ | 2,202 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 464,642 | $ | — | $ | — | $ | 464,642 | |||||||||
Percentage lease revenue | 3,584 | — | 48,902 | (52,486 | ) | — | |||||||||||||
Other revenue | 5 | 1,251 | 193 | — | 1,449 | ||||||||||||||
Total revenues | 3,589 | 465,893 | 49,095 | (52,486 | ) | 466,091 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 314,709 | — | — | 314,709 | ||||||||||||||
Taxes, insurance and lease expense | 785 | 92,325 | 7,130 | (52,486 | ) | 47,754 | |||||||||||||
Corporate expenses | 380 | 10,355 | 3,791 | — | 14,526 | ||||||||||||||
Depreciation and amortization | 2,677 | 36,137 | 23,332 | — | 62,146 | ||||||||||||||
Impairment loss | 17,559 | — | 10,147 | — | 27,706 | ||||||||||||||
Conversion expenses | 24 | 682 | 509 | — | 1,215 | ||||||||||||||
Other expenses | 2,777 | 1,360 | 600 | — | 4,737 | ||||||||||||||
Total operating expenses | 24,202 | 455,568 | 45,509 | (52,486 | ) | 472,793 | |||||||||||||
Operating loss | (20,613 | ) | 10,325 | 3,586 | — | (6,702 | ) | ||||||||||||
Interest expense, net | (42,985 | ) | (622 | ) | (9,450 | ) | — | (53,057 | ) | ||||||||||
Loss before equity in income from unconsolidated entities | (63,598 | ) | 9,703 | (5,864 | ) | — | (59,759 | ) | |||||||||||
Equity in loss from consolidated entities | 16,558 | — | — | (16,558 | ) | — | |||||||||||||
Equity in income from unconsolidated entities | 1,852 | 165 | (23 | ) | — | 1,994 | |||||||||||||
Loss from continuing operations | (45,188 | ) | 9,868 | (5,887 | ) | (16,558 | ) | (57,765 | ) | ||||||||||
Income from discontinued operations | — | (474 | ) | 8,839 | — | 8,365 | |||||||||||||
Net loss | (45,188 | ) | 9,394 | 2,952 | (16,558 | ) | (49,400 | ) | |||||||||||
Loss attributable to noncontrolling interests | — | 240 | 3,972 | — | 4,212 | ||||||||||||||
Net loss attributable to FelCor LP | (45,188 | ) | 9,634 | 6,924 | (16,558 | ) | (45,188 | ) | |||||||||||
Preferred distributions | (19,356 | ) | — | — | — | (19,356 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (64,544 | ) | $ | 9,634 | $ | 6,924 | $ | (16,558 | ) | $ | (64,544 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 444,221 | $ | — | $ | — | $ | 444,221 | |||||||||
Percentage lease revenue | 2,826 | — | 60,871 | (63,697 | ) | — | |||||||||||||
Other revenue | 5 | 1,043 | 183 | — | 1,231 | ||||||||||||||
Total revenues | 2,831 | 445,264 | 61,054 | (63,697 | ) | 445,452 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 301,782 | — | — | 301,782 | ||||||||||||||
Taxes, insurance and lease expense | 746 | 101,185 | 7,756 | (63,697 | ) | 45,990 | |||||||||||||
Corporate expenses | 194 | 8,958 | 5,227 | — | 14,379 | ||||||||||||||
Depreciation and amortization | 2,275 | 30,583 | 26,452 | — | 59,310 | ||||||||||||||
Other expenses | 477 | 1,180 | 106 | — | 1,763 | ||||||||||||||
Total operating expenses | 3,692 | 443,688 | 39,541 | (63,697 | ) | 423,224 | |||||||||||||
Operating income | (861 | ) | 1,576 | 21,513 | — | 22,228 | |||||||||||||
Interest expense, net | (42,374 | ) | (8,082 | ) | (10,872 | ) | — | (61,328 | ) | ||||||||||
Debt extinguishment | (7 | ) | (26 | ) | (111 | ) | — | (144 | ) | ||||||||||
Loss before equity in income from unconsolidated entities | (43,242 | ) | (6,532 | ) | 10,530 | — | (39,244 | ) | |||||||||||
Equity in loss from consolidated entities | 25,490 | — | — | (25,490 | ) | — | |||||||||||||
Equity in income from unconsolidated entities | 1,018 | 143 | (23 | ) | — | 1,138 | |||||||||||||
Loss from continuing operations | (16,734 | ) | (6,389 | ) | 10,507 | (25,490 | ) | (38,106 | ) | ||||||||||
Income from discontinued operations | (45 | ) | (3,324 | ) | 24,642 | — | 21,273 | ||||||||||||
Net loss | (16,779 | ) | (9,713 | ) | 35,149 | (25,490 | ) | (16,833 | ) | ||||||||||
Loss attributable to noncontrolling interests | — | 289 | (235 | ) | — | 54 | |||||||||||||
Net loss attributable to FelCor LP | (16,779 | ) | (9,424 | ) | 34,914 | (25,490 | ) | (16,779 | ) | ||||||||||
Preferred distributions | (19,356 | ) | — | — | — | (19,356 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (36,135 | ) | $ | (9,424 | ) | $ | 34,914 | $ | (25,490 | ) | $ | (36,135 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (18,823 | ) | $ | 17,480 | $ | (269 | ) | $ | (21,183 | ) | $ | (22,795 | ) | |||||
Foreign currency translation adjustment | — | (567 | ) | — | — | (567 | ) | ||||||||||||
Comprehensive loss | (18,823 | ) | 16,913 | (269 | ) | (21,183 | ) | (23,362 | ) | ||||||||||
Comprehensive loss attributable to noncontrolling interests | — | (16 | ) | 3,988 | — | 3,972 | |||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (18,823 | ) | $ | 16,897 | $ | 3,719 | $ | (21,183 | ) | $ | (19,390 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net income | $ | 11,880 | $ | 5,141 | $ | 25,635 | $ | (30,628 | ) | $ | 12,028 | ||||||||
Foreign currency translation adjustment | — | (317 | ) | — | — | (317 | ) | ||||||||||||
Comprehensive income | 11,880 | 4,824 | 25,635 | (30,628 | ) | 11,711 | |||||||||||||
Comprehensive income attributable to noncontrolling interests | — | 24 | (172 | ) | — | (148 | ) | ||||||||||||
Comprehensive income attributable to FelCor LP | $ | 11,880 | $ | 4,848 | $ | 25,463 | $ | (30,628 | ) | $ | 11,563 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (45,188 | ) | $ | 9,394 | $ | 2,952 | $ | (16,558 | ) | $ | (49,400 | ) | ||||||
Foreign currency translation adjustment | — | (924 | ) | — | — | (924 | ) | ||||||||||||
Comprehensive loss | (45,188 | ) | 8,470 | 2,952 | (16,558 | ) | (50,324 | ) | |||||||||||
Comprehensive loss attributable to noncontrolling interests | — | 240 | 3,972 | — | 4,212 | ||||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (45,188 | ) | $ | 8,710 | $ | 6,924 | $ | (16,558 | ) | $ | (46,112 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (16,779 | ) | $ | (9,713 | ) | $ | 35,149 | $ | (25,490 | ) | $ | (16,833 | ) | |||||
Foreign currency translation adjustment | — | (9 | ) | — | — | (9 | ) | ||||||||||||
Comprehensive loss | (16,779 | ) | (9,722 | ) | 35,149 | (25,490 | ) | (16,842 | ) | ||||||||||
Comprehensive loss attributable to noncontrolling interests | — | 289 | (235 | ) | — | 54 | |||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (16,779 | ) | $ | (9,433 | ) | $ | 34,914 | $ | (25,490 | ) | $ | (16,788 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Operating activities: | |||||||||||||||||||
Cash flows from operating activities | $ | (30,682 | ) | $ | 40,893 | $ | 19,060 | $ | — | $ | 29,271 | ||||||||
Investing activities: | |||||||||||||||||||
Improvements and additions to hotels | 2,689 | (30,529 | ) | (19,183 | ) | — | (47,023 | ) | |||||||||||
Hotel development | — | — | (22,220 | ) | — | (22,220 | ) | ||||||||||||
Net proceeds from asset dispositions | (5 | ) | (1,252 | ) | 21,736 | — | 20,479 | ||||||||||||
Distributions from unconsolidated entities | 3,066 | 375 | — | — | 3,441 | ||||||||||||||
Contributions to unconsolidated entities | — | (1,500 | ) | — | — | (1,500 | ) | ||||||||||||
Intercompany financing | 52,477 | — | — | (52,477 | ) | — | |||||||||||||
Other | — | 1,824 | (1,778 | ) | — | 46 | |||||||||||||
Cash flows from investing activities | 58,227 | (31,082 | ) | (21,445 | ) | (52,477 | ) | (46,777 | ) | ||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from borrowings | — | — | 127,245 | — | 127,245 | ||||||||||||||
Repayment of borrowings | — | — | (68,535 | ) | — | (68,535 | ) | ||||||||||||
Distributions paid to preferred unitholders | (19,356 | ) | — | — | — | (19,356 | ) | ||||||||||||
Intercompany financing | — | 1,799 | (54,276 | ) | 52,477 | — | |||||||||||||
Other | (2,329 | ) | 372 | 653 | — | (1,304 | ) | ||||||||||||
Cash flows from financing activities | (21,685 | ) | 2,171 | 5,087 | 52,477 | 38,050 | |||||||||||||
Effect of exchange rate changes on cash | — | (54 | ) | — | — | (54 | ) | ||||||||||||
Change in cash and cash equivalents | 5,860 | 11,928 | 2,702 | — | 20,490 | ||||||||||||||
Cash and cash equivalents at beginning of period | 8,312 | 30,425 | 7,008 | — | 45,745 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 14,172 | $ | 42,353 | $ | 9,710 | $ | — | $ | 66,235 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Operating activities: | |||||||||||||||||||
Cash flows from operating activities | $ | (43,758 | ) | $ | 20,608 | $ | 53,097 | $ | — | $ | 29,947 | ||||||||
Investing activities: | |||||||||||||||||||
Improvements and additions to hotels | (6,478 | ) | (44,236 | ) | (22,635 | ) | — | (73,349 | ) | ||||||||||
Hotel development | — | — | (10,317 | ) | — | (10,317 | ) | ||||||||||||
Net proceeds from asset dispositions | (14 | ) | 8,190 | 92,230 | — | 100,406 | |||||||||||||
Distributions from unconsolidated entities | 8,728 | 375 | — | — | 9,103 | ||||||||||||||
Intercompany financing | 59,353 | — | — | (59,353 | ) | — | |||||||||||||
Other | — | 1,769 | (1,306 | ) | — | 463 | |||||||||||||
Cash flows from investing activities | 61,589 | (33,902 | ) | 57,972 | (59,353 | ) | 26,306 | ||||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from borrowings | — | — | 71,000 | — | 71,000 | ||||||||||||||
Repayment of borrowings | (96 | ) | (16,312 | ) | (121,350 | ) | — | (137,758 | ) | ||||||||||
Distributions paid to preferred unitholders | (19,356 | ) | — | — | — | (19,356 | ) | ||||||||||||
Intercompany financing | — | 304 | (59,657 | ) | 59,353 | — | |||||||||||||
Other | — | 1,559 | (1,322 | ) | — | 237 | |||||||||||||
Cash flows from financing activities | (19,452 | ) | (14,449 | ) | (111,329 | ) | 59,353 | (85,877 | ) | ||||||||||
Effect of exchange rate changes on cash | — | (35 | ) | — | — | (35 | ) | ||||||||||||
Change in cash and cash equivalents | (1,621 | ) | (27,778 | ) | (260 | ) | — | (29,659 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 23,503 | 67,001 | 3,254 | — | 93,758 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 21,882 | $ | 39,223 | $ | 2,994 | $ | — | $ | 64,099 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Total revenue was $249.0 million, 3.3% more than last year. The increase was driven by a 2.1% increase in same-store RevPAR, reflecting a 2.5% increase in ADR offset by a 30 basis point decrease in occupancy. |
• | Hotel departmental expenses increased $4.7 million. As a percentage of total revenue, hotel departmental expenses increased from 34.6% last year to 35.3% in the current period. This increase was primarily driven by low profitability margins at the eight transitioning Wyndham hotels. |
• | Other property-related costs increased $2.0 million due to higher costs associated with our sales efforts and marketing programs, in addition to higher credit card commissions resulting from a shift in customer mix at our hotels. As a percentage of total revenue, other property-related costs was 25.2%, which is consistent with last year. |
• | Management and franchise fees decreased $1.9 million. While revenue increased in 2013, fees declined because fewer properties paid incentive fees as a consequence of converting eight hotels to Wyndham brands and management on March 1, 2013. Wyndham charges lower management fees than the previous management company. In addition, Wyndham’s guarantee of a minimum level of net operating profit reduces Wyndham’s contractual management fees. As a percentage of total revenue, these costs decreased from 4.7% last year to 3.7% in the current period. |
• | Taxes, insurance and lease expense increased $822,000 and remained relatively flat as a percentage of total revenue. The increase reflects a combination of higher percentage lease expense (computed as a percentage of hotel revenues in excess of base rent; as revenue increases, percentage rent increases at a faster rate than other expenses), higher property taxes (last year we achieved significant reductions after appeals), and lower general liability insurance (reflecting a more favorable claims experience). |
• | Corporate expenses increased $527,000 (increasing as a percentage of total revenue from 2.6% to 2.7%). This increase primarily reflects additional fixed and variable stock compensation expense associated with our incentive compensation awards. |
• | Depreciation and amortization expense increased $1.4 million, primarily reflecting additional depreciation after investing $121.5 million of capital in our hotels in 2012. |
• | Impairment loss. For the three months ended June 30, 2013, we recorded $27.7 million of impairment charges for three hotels, one of which is currently under contract to be sold. The charges incurred for the remaining two hotels result from reduced estimated hold periods. |
• | Conversion expenses. We converted eight hotels to Wyndham brands and management in March 2013. We classified those expenses as conversion expense in our 2013 statements of operations. |
• | Other expenses increased $3.1 million compared to the same period in 2012, primarily due to severance costs for a departing executive officer. |
• | Net interest expense decreased $4.4 million, primarily reflecting our lower average interest rate. Lower interest rates in 2013 are partially offset by an increase in average debt for the period, as well as less capitalized interest attributable to renovation and redevelopment projects. |
• | Discontinued operations include the results of operations for one hotel designated as held for sale at June 30, 2013, one hotel sold in 2013 and ten hotels sold in 2012. Discontinued operations in 2013 included a $7.3 million net gain (primarily related to the sale of one hotel). Discontinued operations for 2012 primarily consisted of a $16.7 million net gain on the sales of six hotels, a $1.3 million impairment loss and $668,000 of debt extinguishment charges. |
• | Total revenue was $466.1 million, 4.6% more than last year. The increase was driven by a 3.7% increase in same-store RevPAR, reflecting a 3.6% increase in ADR and a 10 basis point increase in occupancy. |
• | Hotel departmental expenses increased $10.4 million. As a percentage of total revenue, hotel departmental expenses increased from 36.1% last year to 36.7% in the current period. This increase was primarily driven by low profitability margins at the eight transitioning Wyndham hotels and the reopening of our food and beverage outlets at the Fairmont Copley Plaza. Food and beverage operations generally have much higher expenses as a percentage of revenue than the rooms department. |
• | Other property-related costs increased $4.6 million due to a combination of higher costs associated with our sales efforts and marketing programs, in addition to higher credit card commissions resulting from a shift in customer mix at our hotels. As a percentage of total revenue, other property-related costs decreased from 27.0% last year to 26.7% in the current period. This improvement primarily reflects revenue increases driven by ADR as opposed to occupancy. |
• | Management and franchise fees decreased $2.1 million. While revenue increased in 2013, fees declined because fewer properties paid incentive fees as a consequence of converting eight hotels to Wyndham brands and management on March 1, 2013. Wyndham charges lower management fees than the previous management company. In addition, Wyndham’s guarantee of a minimum level of net operating profit reduces Wyndham’s contractual management fees. As a percentage of total revenue, these costs decreased from 4.7% last year to 4.0% in the current period. |
• | Taxes, insurance and lease expense increased $1.8 million and remained relatively flat as a percentage of total revenue. The increase reflects a combination of higher percentage lease expense (computed as a percentage of hotel revenues in excess of base rent; as revenue increases, percentage rent increases at a faster rate than other expenses) and higher property taxes (last year we achieved significant reductions after appeals). |
• | Depreciation and amortization expense increased $2.8 million, primarily reflecting additional depreciation after investing $121.5 million of capital in our hotels in 2012. |
• | Impairment loss. For the six months ended June 30, 2013, we recorded $27.7 million of impairment charges for three hotels, one of which is currently under contract to be sold. The charges incurred for the remaining two hotels result from reduced estimated hold periods. |
• | Conversion expenses. We converted eight hotels to Wyndham brands and management in March 2013. We classified those expenses as conversion expense in our 2013 statements of operations. |
• | Other expenses increased $3.0 million compared to the same period in 2012, primarily due to severance costs for a departing executive officer. |
• | Net interest expense decreased $8.3 million, primarily reflecting our lower average interest rate. Lower interest rates in 2013 are partially offset by an increase in average debt for the period, as well as less capitalized interest attributable to renovation and redevelopment projects. |
• | Discontinued operations include the results of operations for one hotel designated as held for sale at June 30, 2013, one hotel sold in 2013 and ten hotels sold in 2012. Discontinued operations in 2013 included a $7.3 million net gain (primarily related to the sale of one hotel). Discontinued operations for 2012 primarily consisted of a $16.7 million net gain on the sales of six hotels, a $1.3 million impairment loss and $668,000 of debt extinguishment charges. |
Three Months Ended June 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net income (loss) | $ | (22,795 | ) | $ | 12,028 | ||||||||||||||||
Noncontrolling interests | 4,112 | (159 | ) | ||||||||||||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | |||||||||||||||||
Net income (loss) attributable to FelCor common stockholders | (28,361 | ) | 2,191 | ||||||||||||||||||
Less: Undistributed earnings allocated to unvested restricted stock | — | (10 | ) | ||||||||||||||||||
Numerator for basic and diluted income (loss) available to common stockholders | (28,361 | ) | 123,814 | $ | (0.23 | ) | 2,181 | 123,638 | $ | 0.02 | |||||||||||
Depreciation and amortization | 31,132 | — | 0.25 | 29,773 | — | 0.24 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 3,214 | — | 0.03 | 4,844 | — | 0.04 | |||||||||||||||
Impairment loss, net of noncontrolling interests in other partnerships | 23,647 | — | 0.19 | — | — | — | |||||||||||||||
Impairment loss, discontinued operations | — | — | — | 1,335 | — | 0.01 | |||||||||||||||
Gain on sale of hotels, net | (7,259 | ) | — | (0.06 | ) | (16,719 | ) | — | (0.14 | ) | |||||||||||
Noncontrolling interests in FelCor LP | (140 | ) | 621 | — | 11 | 628 | — | ||||||||||||||
Undistributed earnings allocated to unvested restricted stock | — | — | — | 10 | — | — | |||||||||||||||
Conversion of unvested restricted stock | — | 792 | — | — | 278 | — | |||||||||||||||
FFO | 22,233 | 125,227 | 0.18 | 21,435 | 124,544 | 0.17 | |||||||||||||||
Acquisition costs | — | — | — | 59 | — | — | |||||||||||||||
Debt extinguishment, including discontinued operations | — | — | — | 805 | — | 0.01 | |||||||||||||||
Severance costs | 2,791 | — | 0.02 | — | — | — | |||||||||||||||
Conversion expenses | 587 | — | 0.01 | — | — | — | |||||||||||||||
Variable stock compensation | 121 | — | — | — | — | — | |||||||||||||||
Pre-opening costs, net of noncontrolling interests | 322 | — | — | 43 | — | — | |||||||||||||||
Adjusted FFO | $ | 26,054 | 125,227 | $ | 0.21 | $ | 22,342 | 124,544 | $ | 0.18 |
Six Months Ended June 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net loss | $ | (49,400 | ) | $ | (16,833 | ) | |||||||||||||||
Noncontrolling interests | 4,532 | 239 | |||||||||||||||||||
Preferred dividends | (19,356 | ) | (19,356 | ) | |||||||||||||||||
Net loss attributable to FelCor common stockholders | (64,224 | ) | 123,814 | $ | (0.52 | ) | (35,950 | ) | 123,651 | $ | (0.29 | ) | |||||||||
Depreciation and amortization | 62,146 | — | 0.50 | 59,310 | — | 0.48 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 6,478 | — | 0.05 | 11,136 | — | 0.09 | |||||||||||||||
Impairment loss, net of noncontrolling interests in other partnerships | 23,647 | — | 0.19 | — | — | — | |||||||||||||||
Impairment loss, discontinued operations | — | — | — | 1,335 | — | 0.01 | |||||||||||||||
Gain on sale of hotels, net | (7,259 | ) | — | (0.06 | ) | (16,719 | ) | — | (0.14 | ) | |||||||||||
Noncontrolling interests in FelCor LP | (320 | ) | 621 | — | (185 | ) | 632 | — | |||||||||||||
Conversion of unvested restricted stock | — | 565 | — | — | 233 | — | |||||||||||||||
FFO | 20,468 | 125,000 | 0.16 | 18,927 | 124,516 | 0.15 | |||||||||||||||
Acquisition costs | 23 | — | — | 97 | — | — | |||||||||||||||
Debt extinguishment, including discontinued operations | — | — | — | 812 | — | 0.01 | |||||||||||||||
Severance costs | 2,791 | — | 0.02 | 380 | — | — | |||||||||||||||
Conversion expenses | 1,215 | — | 0.01 | — | — | — | |||||||||||||||
Variable stock compensation | 223 | — | — | — | — | — | |||||||||||||||
Pre-opening costs, net of noncontrolling interests | 563 | — | 0.01 | 43 | — | — | |||||||||||||||
Adjusted FFO | $ | 25,283 | 125,000 | $ | 0.20 | $ | 20,259 | 124,516 | $ | 0.16 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss) | $ | (22,795 | ) | $ | 12,028 | $ | (49,400 | ) | $ | (16,833 | ) | ||||
Depreciation and amortization | 31,132 | 29,773 | 62,146 | 59,310 | |||||||||||
Depreciation, discontinued operations and unconsolidated entities | 3,214 | 4,844 | 6,478 | 11,136 | |||||||||||
Interest expense | 26,596 | 30,968 | 53,102 | 61,411 | |||||||||||
Interest expense, discontinued operations and unconsolidated entities | 680 | 1,943 | 1,352 | 3,987 | |||||||||||
Noncontrolling interests in other partnerships | 3,972 | (148 | ) | 4,212 | 54 | ||||||||||
EBITDA | 42,799 | 79,408 | 77,890 | 119,065 | |||||||||||
Impairment loss, net of noncontrolling interests in other partnerships | 23,647 | — | 23,647 | — | |||||||||||
Impairment loss, discontinued operations | — | 1,335 | — | 1,335 | |||||||||||
Debt extinguishment, including discontinued operations | — | 805 | — | 812 | |||||||||||
Acquisition costs | — | 59 | 23 | 97 | |||||||||||
Gain on sale of hotels, net | (7,259 | ) | (16,719 | ) | (7,259 | ) | (16,719 | ) | |||||||
Amortization of fixed stock and directors’ compensation | 1,572 | 1,242 | 3,150 | 2,538 | |||||||||||
Severance costs | 2,791 | — | 2,791 | 380 | |||||||||||
Conversion expenses | 587 | — | 1,215 | — | |||||||||||
Variable stock compensation | 121 | — | 223 | — | |||||||||||
Pre-opening costs, net of noncontrolling interests | 322 | 43 | 563 | 43 | |||||||||||
Adjusted EBITDA | $ | 64,580 | $ | 66,173 | 102,243 | 107,551 | |||||||||
Adjusted EBITDA from discontinued operations | (1,335 | ) | (5,643 | ) | (2,155 | ) | (14,640 | ) | |||||||
Same-store Adjusted EBITDA | $ | 63,245 | $ | 60,530 | $ | 100,088 | $ | 92,911 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Income from discontinued operations | $ | 8,103 | $ | 17,099 | $ | 8,365 | $ | 21,273 | |||||||
Depreciation and amortization | 491 | 2,015 | 1,049 | 5,471 | |||||||||||
Interest expense | — | 1,245 | — | 2,612 | |||||||||||
EBITDA from discontinued operations | $ | 8,594 | $ | 20,359 | $ | 9,414 | $ | 29,356 | |||||||
Impairment loss | — | 1,335 | — | 1,335 | |||||||||||
Debt extinguishment | — | 668 | — | 668 | |||||||||||
Gain on sale, net | (7,259 | ) | (16,719 | ) | (7,259 | ) | (16,719 | ) | |||||||
Adjusted EBITDA from discontinued operations | $ | 1,335 | $ | 5,643 | $ | 2,155 | $ | 14,640 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Same-store operating revenue: | |||||||||||||||
Room | $ | 191,982 | $ | 186,906 | $ | 359,293 | $ | 345,656 | |||||||
Food and beverage | 43,397 | 38,632 | 81,367 | 72,974 | |||||||||||
Other operating departments | 12,598 | 14,595 | 23,982 | 25,591 | |||||||||||
Same-store operating revenue | 247,977 | 240,133 | 464,642 | 444,221 | |||||||||||
Same-store operating expense: | |||||||||||||||
Room | 49,363 | 47,694 | 96,091 | 91,853 | |||||||||||
Food and beverage | 32,610 | 29,799 | 63,655 | 57,732 | |||||||||||
Other operating departments | 6,038 | 5,843 | 11,470 | 11,240 | |||||||||||
Other property related costs | 62,650 | 60,699 | 124,648 | 120,059 | |||||||||||
Management and franchise fees | 9,315 | 11,254 | 18,845 | 20,898 | |||||||||||
Taxes, insurance and lease expense | 15,119 | 15,120 | 29,969 | 29,326 | |||||||||||
Same-store operating expense | 175,095 | 170,409 | 344,678 | 331,108 | |||||||||||
Hotel EBITDA | $ | 72,882 | $ | 69,724 | $ | 119,964 | $ | 113,113 | |||||||
Hotel EBITDA Margin | 29.4 | % | 29.0 | % | 25.8 | % | 25.5 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Hotel EBITDA - Comparable core (37) | $ | 47,988 | $ | 44,745 | $ | 79,841 | $ | 71,158 | |||||||
Hotel EBITDA - Non-strategic (18) | 13,694 | 12,216 | 23,835 | 22,770 | |||||||||||
Hotel EBITDA - Comparable (55) | 61,682 | 56,961 | 103,676 | 93,928 | |||||||||||
Hotel EBITDA - Wyndham (8) | 11,200 | 12,763 | 16,288 | 19,185 | |||||||||||
Hotel EBITDA (63) | $ | 72,882 | $ | 69,724 | $ | 119,964 | $ | 113,113 | |||||||
Hotel EBITDA Margin - Comparable core (37) | 27.6 | % | 27.4 | % | 24.5 | % | 23.6 | % | |||||||
Hotel EBITDA Margin - Non-strategic (18) | 30.4 | % | 28.7 | % | 27.8 | % | 27.3 | % | |||||||
Hotel EBITDA Margin - Comparable (55) | 28.2 | % | 27.6 | % | 25.2 | % | 24.4 | % | |||||||
Hotel EBITDA Margin - Wyndham (8) | 38.7 | % | 37.5 | % | 30.8 | % | 32.1 | % | |||||||
Hotel EBITDA Margin (63) | 29.4 | % | 29.0 | % | 25.8 | % | 25.5 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Same-store operating revenue | $ | 247,977 | $ | 240,133 | $ | 464,642 | $ | 444,221 | |||||||
Other revenue | 1,050 | 956 | 1,449 | 1,231 | |||||||||||
Total revenue | 249,027 | 241,089 | 466,091 | 445,452 | |||||||||||
Same-store operating expense | 175,095 | 170,409 | 344,678 | 331,108 | |||||||||||
Consolidated hotel lease expense(a) | 12,166 | 11,236 | 21,723 | 20,429 | |||||||||||
Unconsolidated taxes, insurance and lease expense | (2,040 | ) | (1,933 | ) | (3,938 | ) | (3,765 | ) | |||||||
Corporate expenses | 6,694 | 6,167 | 14,526 | 14,379 | |||||||||||
Depreciation and amortization | 31,132 | 29,773 | 62,146 | 59,310 | |||||||||||
Impairment loss | 27,706 | — | 27,706 | — | |||||||||||
Conversion expenses | 587 | — | 1,215 | — | |||||||||||
Other expenses | 3,916 | 800 | 4,737 | 1,763 | |||||||||||
Total operating expense | 255,256 | 216,452 | 472,793 | 423,224 | |||||||||||
Operating income (loss) | $ | (6,229 | ) | $ | 24,637 | $ | (6,702 | ) | $ | 22,228 |
(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. |
• | 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, conversions 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. |
Hotels | Room Count at June 30, 2013 | ||||||
Consolidated Hotels | 63 | 18,384 | |||||
Unconsolidated hotel operations | 1 | 171 | |||||
Total hotels | 64 | 18,555 | |||||
50% joint ventures | 13 | (1,573 | ) | ||||
60% joint venture | 1 | (214 | ) | ||||
82% joint venture | 1 | (40 | ) | ||||
90% joint ventures | 3 | (68 | ) | ||||
Pro rata rooms attributed to joint venture partners | (1,895 | ) | |||||
Pro rata share of rooms owned | 16,660 |
Brand | Hotels | Rooms | 2012 Hotel Operating Revenue (in thousands) | 2012 Hotel EBITDA (in thousands)(a) | ||||||||||||||
Embassy Suites Hotels | 20 | 5,433 | $ | 256,200 | $ | 78,381 | ||||||||||||
Wyndham and Wyndham Grand(b) | 8 | 2,526 | 120,354 | 37,957 | ||||||||||||||
Renaissance and Marriott | 3 | 1,321 | 111,976 | 17,911 | ||||||||||||||
DoubleTree by Hilton and Hilton | 5 | 1,206 | 56,071 | 16,705 | ||||||||||||||
Sheraton and Westin | 4 | 1,604 | 68,369 | 14,539 | ||||||||||||||
Fairmont | 1 | 383 | 41,255 | 4,286 | ||||||||||||||
Holiday Inn | 2 | 968 | 40,512 | 4,218 | ||||||||||||||
Morgans and Royalton | 2 | 282 | 32,129 | 3,457 | ||||||||||||||
Core hotels | 45 | 13,723 | 726,866 | 177,454 | ||||||||||||||
Non-strategic hotels | 18 | 4,661 | 164,498 | 44,071 | ||||||||||||||
Same-store hotels | 63 | 18,384 | $ | 891,364 | $ | 221,525 | ||||||||||||
Market | ||||||||||||||||||
San Francisco area | 4 | 1,637 | $ | 99,659 | $ | 21,034 | ||||||||||||
Los Angeles area | 3 | 677 | 33,287 | 13,759 | ||||||||||||||
South Florida | 3 | 923 | 47,298 | 13,255 | ||||||||||||||
Boston | 3 | 916 | 68,121 | 12,125 | ||||||||||||||
New York area | 4 | 817 | 57,052 | 9,732 | ||||||||||||||
Myrtle Beach | 2 | 640 | 36,973 | 9,428 | ||||||||||||||
Atlanta | 3 | 952 | 35,410 | 9,229 | ||||||||||||||
Philadelphia | 2 | 728 | 36,122 | 8,882 | ||||||||||||||
Tampa | 1 | 361 | 45,152 | 7,956 | ||||||||||||||
San Diego | 1 | 600 | 26,445 | 6,688 | ||||||||||||||
Other markets | 19 | 5,472 | 241,347 | 65,366 | ||||||||||||||
Core hotels | 45 | 13,723 | 726,866 | 177,454 | ||||||||||||||
Non-strategic hotels | 18 | 4,661 | 164,498 | 44,071 | ||||||||||||||
Same-store hotels | 63 | 18,384 | $ | 891,364 | $ | 221,525 | ||||||||||||
Location | ||||||||||||||||||
Urban | 17 | 5,305 | $ | 316,354 | $ | 74,439 | ||||||||||||
Resort | 10 | 2,928 | 183,807 | 41,472 | ||||||||||||||
Airport | 9 | 2,957 | 126,906 | 33,739 | ||||||||||||||
Suburban | 9 | 2,533 | 99,799 | 27,804 | ||||||||||||||
Core hotels | 45 | 13,723 | 726,866 | 177,454 | ||||||||||||||
Non-strategic hotels | 18 | 4,661 | 164,498 | 44,071 | ||||||||||||||
Same-store hotels | 63 | 18,384 | $ | 891,364 | $ | 221,525 |
(a) | Hotel EBITDA is a non-GAAP financial measure. A detailed reconciliation and further discussion of Hotel EBITDA is contained in the “Non-GAAP Financial Measures” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of this Quarterly Report on Form 10-Q. |
(b) | These hotels converted from Holiday Inn (brand and management) on March 1, 2013. |
Occupancy (%) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||
2013 | 2012 | %Variance | 2013 | 2012 | %Variance | ||||||||||||||
Embassy Suites Hotels | 78.5 | 78.6 | (0.2 | ) | 75.8 | 76.3 | (0.7 | ) | |||||||||||
Renaissance and Marriott | 73.2 | 72.1 | 1.6 | 74.0 | 72.8 | 1.7 | |||||||||||||
DoubleTree by Hilton and Hilton | 76.9 | 74.7 | 3.0 | 69.2 | 68.8 | 0.6 | |||||||||||||
Sheraton and Westin | 69.7 | 70.9 | (1.6 | ) | 66.6 | 64.2 | 3.7 | ||||||||||||
Fairmont | 80.3 | 76.3 | 5.2 | 70.4 | 52.0 | 35.3 | |||||||||||||
Holiday Inn | 88.3 | 81.0 | 9.0 | 78.4 | 70.7 | 10.8 | |||||||||||||
Morgans and Royalton | 89.4 | 88.0 | 1.6 | 85.3 | 82.0 | 4.0 | |||||||||||||
Comparable core hotels (37) | 77.6 | 76.7 | 1.2 | 73.8 | 72.2 | 2.3 | |||||||||||||
Non-strategic hotels (18) | 78.0 | 75.2 | 3.7 | 74.8 | 73.4 | 2.0 | |||||||||||||
Comparable hotels (55) | 77.7 | 76.3 | 1.9 | 74.1 | 72.5 | 2.2 | |||||||||||||
Wyndham and Wyndham Grand(a) | 71.2 | 82.1 | (13.2 | ) | 67.4 | 76.9 | (12.3 | ) | |||||||||||
Same-store hotels (63) | 76.8 | 77.1 | (0.3 | ) | 73.2 | 73.1 | 0.1 | ||||||||||||
ADR ($) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||
2013 | 2012 | %Variance | 2013 | 2012 | %Variance | ||||||||||||||
Embassy Suites Hotels | 146.80 | 143.36 | 2.4 | 149.91 | 144.90 | 3.5 | |||||||||||||
Renaissance and Marriott | 214.91 | 198.38 | 8.3 | 218.02 | 204.53 | 6.6 | |||||||||||||
DoubleTree by Hilton and Hilton | 148.39 | 140.78 | 5.4 | 147.76 | 137.27 | 7.6 | |||||||||||||
Sheraton and Westin | 122.30 | 118.13 | 3.5 | 115.59 | 111.01 | 4.1 | |||||||||||||
Fairmont | 313.17 | 312.75 | 0.1 | 273.98 | 286.27 | (4.3 | ) | ||||||||||||
Holiday Inn | 138.09 | 127.93 | 7.9 | 126.97 | 120.24 | 5.6 | |||||||||||||
Morgans and Royalton | 336.33 | 318.31 | 5.7 | 300.28 | 286.60 | 4.8 | |||||||||||||
Comparable core hotels (37) | 161.92 | 154.90 | 4.5 | 159.74 | 151.86 | 5.2 | |||||||||||||
Non-strategic hotels (18) | 119.38 | 117.63 | 1.5 | 118.78 | 117.31 | 1.3 | |||||||||||||
Comparable hotels (55) | 149.38 | 144.03 | 3.7 | 147.61 | 141.52 | 4.3 | |||||||||||||
Wyndham and Wyndham Grand(a) | 148.81 | 155.56 | (4.3 | ) | 144.36 | 145.14 | (0.5 | ) | |||||||||||
Same-store hotels (63) | 149.31 | 145.73 | 2.5 | 147.19 | 142.05 | 3.6 | |||||||||||||
RevPAR ($) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||
2013 | 2012 | %Variance | 2013 | 2012 | %Variance | ||||||||||||||
Embassy Suites Hotels | 115.19 | 112.75 | 2.2 | 113.65 | 110.60 | 2.8 | |||||||||||||
Renaissance and Marriott | 157.39 | 142.95 | 10.1 | 161.40 | 148.88 | 8.4 | |||||||||||||
DoubleTree by Hilton and Hilton | 114.13 | 105.12 | 8.6 | 102.22 | 94.42 | 8.3 | |||||||||||||
Sheraton and Westin | 85.29 | 83.72 | 1.9 | 76.94 | 71.29 | 7.9 | |||||||||||||
Fairmont | 251.44 | 238.79 | 5.3 | 192.81 | 148.87 | 29.5 | |||||||||||||
Holiday Inn | 121.92 | 103.58 | 17.7 | 99.53 | 85.05 | 17.0 | |||||||||||||
Morgans and Royalton | 300.74 | 280.12 | 7.4 | 256.00 | 234.95 | 9.0 | |||||||||||||
Comparable core hotels (37) | 125.68 | 118.85 | 5.7 | 117.95 | 109.62 | 7.6 | |||||||||||||
Non-strategic hotels (18) | 93.13 | 88.51 | 5.2 | 88.86 | 86.07 | 3.2 | |||||||||||||
Comparable hotels (55) | 116.12 | 109.88 | 5.7 | 109.41 | 102.65 | 6.6 | |||||||||||||
Wyndham and Wyndham Grand(a) | 105.95 | 127.67 | (17.0 | ) | 97.27 | 111.55 | (12.8 | ) | |||||||||||
Same-store hotels (63) | 114.72 | 112.34 | 2.1 | 107.74 | 103.88 | 3.7 |
Occupancy (%) | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2013 | 2012 | %Variance | 2013 | 2012 | %Variance | ||||||||||||||||||
San Francisco area | 87.4 | 83.7 | 4.5 | 81.2 | 78.7 | 3.2 | |||||||||||||||||
Los Angeles area | 80.7 | 81.1 | (0.6 | ) | 74.5 | 80.9 | (8.0 | ) | |||||||||||||||
South Florida | 79.3 | 76.9 | 3.2 | 85.0 | 81.5 | 4.4 | |||||||||||||||||
Boston | 79.9 | 76.6 | 4.3 | 71.5 | 59.7 | 19.7 | |||||||||||||||||
New York area | 84.8 | 83.7 | 1.4 | 77.8 | 76.0 | 2.4 | |||||||||||||||||
Myrtle Beach | 75.7 | 74.3 | 1.9 | 56.5 | 58.6 | (3.5 | ) | ||||||||||||||||
Atlanta | 73.3 | 77.5 | (5.3 | ) | 73.9 | 74.7 | (1.2 | ) | |||||||||||||||
Philadelphia | 79.0 | 79.0 | — | 66.1 | 59.7 | 10.7 | |||||||||||||||||
Tampa | 81.8 | 86.0 | (4.8 | ) | 82.8 | 85.2 | (2.8 | ) | |||||||||||||||
Other markets | 72.3 | 71.5 | 1.0 | 70.6 | 69.2 | 2.1 | |||||||||||||||||
Comparable core hotels (37) | 77.6 | 76.7 | 1.2 | 73.8 | 72.2 | 2.3 | |||||||||||||||||
ADR ($) | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2013 | 2012 | %Variance | 2013 | 2012 | %Variance | ||||||||||||||||||
San Francisco area | 182.98 | 166.10 | 10.2 | 173.76 | 161.38 | 7.7 | |||||||||||||||||
Los Angeles area | 141.67 | 137.24 | 3.2 | 139.22 | 131.81 | 5.6 | |||||||||||||||||
South Florida | 134.39 | 137.36 | (2.2 | ) | 164.33 | 162.07 | 1.4 | ||||||||||||||||
Boston | 251.75 | 249.28 | 1.0 | 224.95 | 221.86 | 1.4 | |||||||||||||||||
New York area | 223.10 | 212.20 | 5.1 | 210.12 | 200.73 | 4.7 | |||||||||||||||||
Myrtle Beach | 162.69 | 158.37 | 2.7 | 145.28 | 139.29 | 4.3 | |||||||||||||||||
Atlanta | 113.40 | 107.12 | 5.9 | 113.45 | 108.91 | 4.2 | |||||||||||||||||
Philadelphia | 182.05 | 179.46 | 1.4 | 170.15 | 167.72 | 1.4 | |||||||||||||||||
Tampa | 182.67 | 181.15 | 0.8 | 199.34 | 191.09 | 4.3 | |||||||||||||||||
Other markets | 140.96 | 135.67 | 3.9 | 143.07 | 136.39 | 4.9 | |||||||||||||||||
Comparable core hotels (37) | 161.92 | 154.90 | 4.5 | 159.74 | 151.86 | 5.2 | |||||||||||||||||
RevPAR ($) | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2013 | 2012 | %Variance | 2013 | 2012 | %Variance | ||||||||||||||||||
San Francisco area | 159.95 | 138.97 | 15.1 | 141.14 | 127.05 | 11.1 | |||||||||||||||||
Los Angeles area | 114.30 | 111.34 | 2.7 | 103.66 | 106.70 | (2.8 | ) | ||||||||||||||||
South Florida | 106.63 | 105.64 | 0.9 | 139.74 | 132.04 | 5.8 | |||||||||||||||||
Boston | 201.17 | 191.05 | 5.3 | 160.81 | 132.45 | 21.4 | |||||||||||||||||
New York area | 189.28 | 177.59 | 6.6 | 163.49 | 152.50 | 7.2 | |||||||||||||||||
Myrtle Beach | 123.19 | 117.65 | 4.7 | 82.16 | 81.60 | 0.7 | |||||||||||||||||
Atlanta | 83.16 | 82.99 | 0.2 | 83.80 | 81.41 | 2.9 | |||||||||||||||||
Philadelphia | 143.82 | 141.84 | 1.4 | 112.41 | 100.13 | 12.3 | |||||||||||||||||
Tampa | 149.46 | 155.73 | (4.0 | ) | 165.02 | 162.76 | 1.4 | ||||||||||||||||
Other markets | 101.85 | 97.02 | 5.0 | 101.04 | 94.38 | 7.1 | |||||||||||||||||
Comparable core hotels (37) | 125.68 | 118.85 | 5.7 | 117.95 | 109.62 | 7.6 |
Core Hotels | Brand | State | Rooms | % Owned | (a) | ||
Birmingham | Embassy Suites Hotel | AL | 242 | ||||
Phoenix – Biltmore | Embassy Suites Hotel | AZ | 232 | ||||
Dana Point – Doheny Beach | DoubleTree Suites by Hilton | CA | 196 | ||||
Indian Wells – Esmeralda Resort & Spa | Renaissance Resort | CA | 560 | ||||
Los Angeles – International Airport/South | Embassy Suites Hotel | CA | 349 | ||||
Napa Valley | Embassy Suites Hotel | CA | 205 | ||||
Mandalay Beach – Hotel & Resort | Embassy Suites Hotel | CA | 249 | ||||
San Diego Bayside | Wyndham | CA | 600 | ||||
San Francisco – Airport/Waterfront | Embassy Suites Hotel | CA | 340 | ||||
San Francisco – Airport/South San Francisco | Embassy Suites Hotel | CA | 312 | ||||
San Francisco – Fisherman’s Wharf | Holiday Inn | CA | 585 | ||||
San Francisco – Union Square | Marriott | CA | 400 | ||||
Santa Monica | Wyndham | CA | 132 | ||||
Deerfield Beach – Resort & Spa | Embassy Suites Hotel | FL | 244 | ||||
Ft. Lauderdale – 17th Street | Embassy Suites Hotel | FL | 361 | ||||
Miami – International Airport | Embassy Suites Hotel | FL | 318 | ||||
Orlando – International Drive South/Convention | Embassy Suites Hotel | FL | 244 | ||||
Orlando – Walt Disney World Resort | DoubleTree Suites by Hilton | FL | 229 | ||||
St. Petersburg – Vinoy Resort & Golf Club | Renaissance Resort | FL | 361 | ||||
Atlanta – Buckhead | Embassy Suites Hotel | GA | 316 | ||||
Atlanta – Gateway – Atlanta Airport | Sheraton | GA | 395 | ||||
Atlanta – Perimeter Center | Embassy Suites Hotel | GA | 241 | 50 | % | ||
Chicago – Lombard/Oak Brook | Embassy Suites Hotel | IL | 262 | 50 | % | ||
Boston – at Beacon Hill | Wyndham | MA | 304 | ||||
Boston – Copley Plaza | Fairmont | MA | 383 | ||||
Boston – Marlborough | Embassy Suites Hotel | MA | 229 | ||||
Baltimore – at BWI Airport | Embassy Suites Hotel | MD | 251 | 90 | % | ||
New Orleans – French Quarter | Wyndham | LA | 374 | ||||
Charlotte – SouthPark | DoubleTree Suites by Hilton | NC | 208 | ||||
Parsippany | Embassy Suites Hotel | NJ | 274 | 50 | % | ||
Secaucus – Meadowlands | Embassy Suites Hotel | NJ | 261 | 50 | % | ||
New York – Morgans | Independent | NY | 114 | ||||
New York – Royalton | Independent | NY | 168 | ||||
Philadelphia – Historic District | Wyndham | PA | 364 | ||||
Philadelphia – Society Hill | Sheraton | PA | 364 | ||||
Pittsburgh – at University Center (Oakland) | Wyndham | PA | 251 | ||||
Charleston – The Mills House | Wyndham Grand | SC | 214 | ||||
Myrtle Beach – Oceanfront Resort | Embassy Suites Hotel | SC | 255 | ||||
Myrtle Beach Resort | Hilton | SC | 385 | ||||
Nashville – Opryland – Airport (Briley Parkway) | Holiday Inn | TN | 383 |
Core Hotels | Brand | State | Rooms | % Owned | (a) | |||||
Austin | DoubleTree Suites by Hilton | TX | 188 | 90 | % | |||||
Dallas – Love Field | Embassy Suites Hotel | TX | 248 | |||||||
Dallas – Park Central | Westin | TX | 536 | 60 | % | |||||
Houston – Medical Center | Wyndham | TX | 287 | |||||||
Burlington Hotel & Conference Center | Sheraton | VT | 309 | |||||||
Unconsolidated Hotel | ||||||||||
New Orleans – French Quarter – Chateau LeMoyne | Holiday Inn | LA | 171 | 50 | % | |||||
Hotel under Development | ||||||||||
New York – Knickerbocker Hotel | Independent | NY | 330 | 95 | % | |||||
Non-strategic Hotels | ||||||||||
Milpitas – Silicon Valley | Embassy Suites Hotel | CA | 266 | |||||||
San Rafael – Marin County | Embassy Suites Hotel | CA | 235 | 50 | % | |||||
Wilmington | DoubleTree by Hilton | DE | 244 | 90 | % | |||||
Jacksonville – Baymeadows | Embassy Suites Hotel | FL | 277 | |||||||
Orlando – International Airport | Holiday Inn | FL | 288 | |||||||
Atlanta – Airport | Embassy Suites Hotel | GA | 232 | |||||||
Kansas City – Overland Park | Embassy Suites Hotel | KS | 199 | 50 | % | |||||
Indianapolis – North | Embassy Suites Hotel | IN | 221 | 82 | % | |||||
Baton Rouge | Embassy Suites Hotel | LA | 223 | |||||||
Minneapolis – Airport | Embassy Suites Hotel | MN | 310 | |||||||
Bloomington | Embassy Suites Hotel | MN | 218 | |||||||
Kansas City – Plaza | Embassy Suites Hotel | MO | 266 | 50 | % | |||||
Charlotte | Embassy Suites Hotel | NC | 274 | 50 | % | |||||
Raleigh – Crabtree | Embassy Suites Hotel | NC | 225 | 50 | % | |||||
Toronto – Airport | Holiday Inn | Ontario | 446 | |||||||
Austin – Central | Embassy Suites Hotel | TX | 260 | 50 | % | |||||
San Antonio – International Airport | Embassy Suites Hotel | TX | 261 | 50 | % | |||||
San Antonio – NW I-10 | Embassy Suites Hotel | TX | 216 | 50 | % | |||||
Non-strategic Hotel Held for Sale (included in discontinued operations) | ||||||||||
Atlanta – Galleria | Sheraton Suites | GA | 278 |
(a) | We own 100% of the real estate interests unless otherwise noted. |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk. |
Expected Maturity Date | |||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Fixed-rate: | |||||||||||||||||||||||||||||||
Debt | $ | 2,464 | $ | 300,192 | $ | 3,107 | $ | 11,462 | $ | 2,810 | $ | 1,197,656 | $ | 1,517,691 | $ | 1,562,188 | |||||||||||||||
Average interest rate | 5.77 | % | 9.25 | % | 5.11 | % | 5.61 | % | 4.95 | % | 6.03 | % | 6.66 | % | |||||||||||||||||
Floating-rate: | |||||||||||||||||||||||||||||||
Debt | — | — | — | 181,861 | — | — | 181,861 | $ | 181,861 | ||||||||||||||||||||||
Average interest rate (a) | — | — | — | 5.51 | % | — | — | 5.51 | % | ||||||||||||||||||||||
Total debt | $ | 2,464 | $ | 300,192 | $ | 3,107 | $ | 193,323 | $ | 2,810 | $ | 1,197,656 | $ | 1,699,552 | |||||||||||||||||
Average interest rate | 5.77 | % | 9.25 | % | 5.11 | % | 5.51 | % | 4.95 | % | 6.03 | % | 6.54 | % | |||||||||||||||||
Net discount | (7,606 | ) | |||||||||||||||||||||||||||||
Total debt | $ | 1,691,946 |
(a) | The average floating interest rate considers the implied forward rates in the yield curve at June 30, 2013. |
Item 4. | Controls and Procedures. |
Item 6. | Exhibits. |
Exhibit Number | Description of Exhibit | |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor. | |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor. | |
31.3 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor LP. | |
31.4 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor LP. |
32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for FelCor. | |
32.2 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for FelCor LP. | |
101.INS | XBRL Instance Document. Submitted electronically with this report. | |
101.SCH | XBRL Taxonomy Extension Schema Document. Submitted electronically with this report. | |
101.CAL | XBRL Taxonomy Calculation Linkbase Document. Submitted electronically with this report. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. Submitted electronically with this report. | |
101.LAB | XBRL Taxonomy Label Linkbase Document. Submitted electronically with this report. | |
101.PRE | XBRL Taxonomy Presentation Linkbase Document. Submitted electronically with this report. |
FELCOR LODGING TRUST INCORPORATED | |||
Date: August 2, 2013 | By: | /s/ Jeffrey D. Symes | |
Name: | Jeffrey D. Symes | ||
Title: | Senior Vice President, Chief Accounting Officer and Controller |
FELCOR LODGING LIMITED PARTNERSHIP | |||
a Delaware limited partnership | |||
By: | FelCor Lodging Trust Incorporated | ||
Its General Partner | |||
Date: August 2, 2013 | By: | /s/ Jeffrey D. Symes | |
Name: | Jeffrey D. Symes | ||
Title: | Senior Vice President, Chief Accounting Officer and Controller |
1. | I have reviewed this Quarterly Report on Form 10-Q of FelCor Lodging Trust Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 2, 2013 | /s/ Richard A. Smith | |
Richard A. Smith Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of FelCor Lodging Trust Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 2, 2013 | /s/ Michael C. Hughes | |
Michael C. Hughes Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of FelCor Lodging Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 2, 2013 | /s/ Richard A. Smith | ||
Richard A. Smith Chief Executive Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership |
1. | I have reviewed this Quarterly Report on Form 10-Q of FelCor Lodging Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 2, 2013 | /s/ Michael C. Hughes | ||
Michael C. Hughes Chief Financial Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership |
/s/ Richard A. Smith | |
Richard A. Smith | |
Chief Executive Officer | |
/s/ Michael C. Hughes | |
Michael C. Hughes | |
Chief Financial Officer |
/s/ Richard A. Smith | |
Richard A. Smith | |
Chief Executive Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership | |
/s/ Michael C. Hughes | |
Michael C. Hughes | |
Chief Financial Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership |
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