(Mark One) | ||
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the quarterly period ended September 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 - September 30, 2013 and December 31, 2012 (unaudited) | |||
Consolidated Statements of Operations – For the Three and Nine Months Ended September 30, 2013 and 2012 (unaudited) | |||
Consolidated Statements of Comprehensive Income (Loss) – For the Three and Nine Months Ended September 30, 2013 and 2012 (unaudited) | |||
Consolidated Statements of Changes in Equity – For the Nine Months Ended September 30, 2013 and 2012 (unaudited) | |||
Consolidated Statements of Cash Flows – For the Nine Months Ended September 30, 2013 and 2012 (unaudited) | |||
FelCor Lodging Limited Partnership: | |||
Consolidated Balance Sheets - September 30, 2013 and December 31, 2012 (unaudited) | |||
Consolidated Statements of Operations – For the Three and Nine Months Ended September 30, 2013 and 2012 (unaudited) | |||
Consolidated Statements of Comprehensive Income (Loss) – For the Three and Nine Months Ended September 30, 2013 and 2012 (unaudited) | |||
Consolidated Statements of Partners’ Capital – For the Nine Months Ended September 30, 2013 and 2012 (unaudited) | |||
Consolidated Statements of Cash Flows – For the Nine Months Ended September 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 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 6. | Exhibits | ||
SIGNATURES |
Item 1. | Financial Statements. |
September 30, 2013 | December 31, 2012 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $931,375 and $929,298 at September 30, 2013 and December 31, 2012, respectively | $ | 1,672,413 | $ | 1,794,564 | |||
Hotel development | 195,919 | 146,079 | |||||
Investment in unconsolidated entities | 51,069 | 55,082 | |||||
Hotel held for sale | 9,684 | — | |||||
Cash and cash equivalents | 68,589 | 45,745 | |||||
Restricted cash | 78,134 | 77,927 | |||||
Accounts receivable, net of allowance for doubtful accounts of $221 and $469 at September 30, 2013 and December 31, 2012, respectively | 38,892 | 25,383 | |||||
Deferred expenses, net of accumulated amortization of $18,690 and $13,820 at September 30, 2013 and December 31, 2012, respectively | 30,921 | 34,262 | |||||
Other assets | 26,741 | 23,391 | |||||
Total assets | $ | 2,172,362 | $ | 2,202,433 | |||
Liabilities and Equity | |||||||
Debt, net of discount of $6,181 and $10,318 at September 30, 2013 and December 31, 2012, respectively | $ | 1,648,165 | $ | 1,630,525 | |||
Distributions payable | 8,545 | 8,545 | |||||
Accrued expenses and other liabilities | 163,464 | 138,442 | |||||
Total liabilities | 1,820,174 | 1,777,512 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests in FelCor LP, 618 and 621 units issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 3,804 | 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 September 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 September 30, 2013 and December 31, 2012 | 169,412 | 169,412 | |||||
Common stock, $0.01 par value, 200,000 shares authorized; 124,126 and 124,117 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 1,241 | 1,241 | |||||
Additional paid-in capital | 2,355,086 | 2,353,581 | |||||
Accumulated other comprehensive income | 25,447 | 26,039 | |||||
Accumulated deficit | (2,535,640 | ) | (2,464,968 | ) | |||
Total FelCor stockholders’ equity | 324,908 | 394,667 | |||||
Noncontrolling interests in other partnerships | 23,476 | 27,352 | |||||
Total equity | 348,384 | 422,019 | |||||
Total liabilities and equity | $ | 2,172,362 | $ | 2,202,433 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues: | |||||||||||||||
Hotel operating revenue | $ | 230,979 | $ | 223,000 | $ | 682,927 | $ | 654,853 | |||||||
Other revenue | 1,584 | 1,441 | 3,034 | 2,672 | |||||||||||
Total revenues | 232,563 | 224,441 | 685,961 | 657,525 | |||||||||||
Expenses: | |||||||||||||||
Hotel departmental expenses | 82,609 | 80,144 | 249,752 | 236,986 | |||||||||||
Other property-related costs | 61,153 | 59,766 | 181,942 | 176,050 | |||||||||||
Management and franchise fees | 9,272 | 10,425 | 27,568 | 30,787 | |||||||||||
Taxes, insurance and lease expense | 25,957 | 24,771 | 73,209 | 70,257 | |||||||||||
Corporate expenses | 5,817 | 5,695 | 20,343 | 20,074 | |||||||||||
Depreciation and amortization | 30,124 | 30,050 | 90,407 | 87,305 | |||||||||||
Impairment loss | — | — | 24,441 | — | |||||||||||
Conversion expenses | (81 | ) | — | 1,134 | — | ||||||||||
Other expenses | 2,102 | 1,959 | 6,838 | 3,722 | |||||||||||
Total operating expenses | 216,953 | 212,810 | 675,634 | 625,181 | |||||||||||
Operating income | 15,610 | 11,631 | 10,327 | 32,344 | |||||||||||
Interest expense, net | (25,996 | ) | (30,568 | ) | (79,053 | ) | (91,013 | ) | |||||||
Debt extinguishment | — | (10,377 | ) | — | (10,498 | ) | |||||||||
Gain on involuntary conversion, net | 21 | — | 21 | — | |||||||||||
Loss before equity in income from unconsolidated entities | (10,365 | ) | (29,314 | ) | (68,705 | ) | (69,167 | ) | |||||||
Equity in income from unconsolidated entities | 2,100 | 1,536 | 4,095 | 2,674 | |||||||||||
Loss from continuing operations | (8,265 | ) | (27,778 | ) | (64,610 | ) | (66,493 | ) | |||||||
Income from discontinued operations | 12,054 | 8,223 | 18,999 | 30,105 | |||||||||||
Net income (loss) | 3,789 | (19,555 | ) | (45,611 | ) | (36,388 | ) | ||||||||
Net loss (income) attributable to noncontrolling interests in other partnerships | (591 | ) | 386 | 3,621 | 440 | ||||||||||
Net loss attributable to redeemable noncontrolling interests in FelCor LP | 32 | 144 | 352 | 329 | |||||||||||
Net income (loss) attributable to FelCor | 3,230 | (19,025 | ) | (41,638 | ) | (35,619 | ) | ||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | (29,034 | ) | (29,034 | ) | |||||||
Net loss attributable to FelCor common stockholders | $ | (6,448 | ) | $ | (28,703 | ) | $ | (70,672 | ) | $ | (64,653 | ) | |||
Basic and diluted per common share data: | |||||||||||||||
Loss from continuing operations | $ | (0.14 | ) | $ | (0.30 | ) | $ | (0.72 | ) | $ | (0.76 | ) | |||
Net loss | $ | (0.05 | ) | $ | (0.23 | ) | $ | (0.57 | ) | $ | (0.52 | ) | |||
Basic and diluted weighted average common shares outstanding | 123,817 | 123,640 | 123,815 | 123,648 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss) | $ | 3,789 | $ | (19,555 | ) | $ | (45,611 | ) | $ | (36,388 | ) | ||||
Foreign currency translation adjustment | 329 | 502 | (595 | ) | 493 | ||||||||||
Comprehensive income (loss) | 4,118 | (19,053 | ) | (46,206 | ) | (35,895 | ) | ||||||||
Comprehensive loss (income) attributable to noncontrolling interests in other partnerships | (591 | ) | 386 | 3,621 | 440 | ||||||||||
Comprehensive loss attributable to redeemable noncontrolling interests in FelCor LP | 30 | 141 | 355 | 326 | |||||||||||
Comprehensive income (loss) attributable to FelCor | $ | 3,557 | $ | (18,526 | ) | $ | (42,230 | ) | $ | (35,129 | ) |
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 | ||||||||||||||||||||
Stock awards - amortization | — | — | — | — | 630 | — | — | — | 630 | ||||||||||||||||||||||||||||
Forfeiture of stock awards | — | — | (63 | ) | (1 | ) | 193 | — | (199 | ) | — | (7 | ) | ||||||||||||||||||||||||
Conversion of operating partnership units into common shares | — | — | 11 | — | 45 | — | — | — | 45 | ||||||||||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | (581 | ) | — | — | — | (581 | ) | ||||||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | — | 2,756 | 2,756 | ||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | (931 | ) | (931 | ) | ||||||||||||||||||||||||||
Other | — | — | — | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||||||||||||
Preferred dividends: | |||||||||||||||||||||||||||||||||||||
$1.4625 per Series A preferred share | — | — | — | — | — | — | (18,837 | ) | — | (18,837 | ) | ||||||||||||||||||||||||||
$1.50 per Series C depositary preferred share | — | — | — | — | — | — | (10,197 | ) | — | (10,197 | ) | ||||||||||||||||||||||||||
Comprehensive loss (attributable to FelCor and noncontrolling interests in other partnerships): | |||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | — | — | — | 490 | — | — | $ | 490 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (35,619 | ) | (440 | ) | (36,059 | ) | |||||||||||||||||||||||||
Comprehensive loss | $ | (35,569 | ) | (35,569 | ) | ||||||||||||||||||||||||||||||||
Balance at September 30, 2012 | 12,948 | $ | 478,774 | 124,229 | $ | 1,242 | $ | 2,353,538 | $ | 26,228 | $ | (2,362,324 | ) | $ | 26,742 | $ | 524,200 | ||||||||||||||||||||
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 | — | — | — | — | 2,762 | — | — | — | 2,762 | ||||||||||||||||||||||||||||
Conversion of operating partnership units into common shares | — | — | 4 | — | 23 | — | — | — | 23 | ||||||||||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | (1,280 | ) | — | — | — | (1,280 | ) | ||||||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | — | 3,024 | 3,024 | ||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | (3,279 | ) | (3,279 | ) | ||||||||||||||||||||||||||
Preferred dividends: | |||||||||||||||||||||||||||||||||||||
$1.4625 per Series A preferred share | — | — | — | — | — | — | (18,837 | ) | — | (18,837 | ) | ||||||||||||||||||||||||||
$1.50 per Series C depositary preferred share | — | — | — | — | — | — | (10,197 | ) | — | (10,197 | ) | ||||||||||||||||||||||||||
Comprehensive loss (attributable to FelCor and noncontrolling interests in other partnerships): | |||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | — | — | — | (592 | ) | — | — | $ | (592 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (41,638 | ) | (3,621 | ) | (45,259 | ) | |||||||||||||||||||||||||
Comprehensive loss | $ | (45,851 | ) | (45,851 | ) | ||||||||||||||||||||||||||||||||
Balance at September 30, 2013 | 12,948 | $ | 478,774 | 124,126 | $ | 1,241 | $ | 2,355,086 | $ | 25,447 | $ | (2,535,640 | ) | $ | 23,476 | $ | 348,384 |
Nine Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (45,611 | ) | $ | (36,388 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 94,102 | 97,477 | |||||
Gain on sale of hotels, net | (19,068 | ) | (26,641 | ) | |||
Gain on involuntary conversion, net | (87 | ) | — | ||||
Amortization of deferred financing fees and debt discount | 8,224 | 13,646 | |||||
Amortization of fixed stock and directors’ compensation | 4,547 | 3,748 | |||||
Equity based severance | 822 | — | |||||
Equity in income from unconsolidated entities | (4,095 | ) | (2,674 | ) | |||
Distributions of income from unconsolidated entities | 3,389 | 3,431 | |||||
Debt extinguishment | — | 12,598 | |||||
Impairment loss | 27,706 | 1,335 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (13,501 | ) | (7,649 | ) | |||
Other assets | (8,336 | ) | (6,194 | ) | |||
Accrued expenses and other liabilities | 20,279 | 20,118 | |||||
Net cash flow provided by operating activities | 68,371 | 72,807 | |||||
Cash flows from investing activities: | |||||||
Improvements and additions to hotels | (74,456 | ) | (99,985 | ) | |||
Hotel development | (46,724 | ) | (16,707 | ) | |||
Net proceeds from asset dispositions | 89,929 | 124,610 | |||||
Change in restricted cash – investing | (670 | ) | 2,598 | ||||
Insurance proceeds | 218 | — | |||||
Distributions from unconsolidated entities | 6,218 | 11,894 | |||||
Contributions to unconsolidated entities | (1,500 | ) | — | ||||
Net cash flow provided by (used in) investing activities | (26,985 | ) | 22,410 | ||||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 137,245 | 378,750 | |||||
Repayment of borrowings | (123,741 | ) | (395,355 | ) | |||
Payment of deferred financing fees | (2,723 | ) | (3,167 | ) | |||
Distributions paid to noncontrolling interests | (3,279 | ) | (931 | ) | |||
Contributions from noncontrolling interests | 3,024 | 2,756 | |||||
Distributions paid to preferred stockholders | (29,034 | ) | (59,021 | ) | |||
Net cash flow used in financing activities | (18,508 | ) | (76,968 | ) | |||
Effect of exchange rate changes on cash | (34 | ) | 112 | ||||
Net change in cash and cash equivalents | 22,844 | 18,361 | |||||
Cash and cash equivalents at beginning of periods | 45,745 | 93,758 | |||||
Cash and cash equivalents at end of periods | $ | 68,589 | $ | 112,119 | |||
Supplemental cash flow information – interest paid, net of capitalized interest | $ | 54,326 | $ | 61,700 |
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $931,375 and $929,298 at September 30, 2013 and December 31, 2012, respectively | $ | 1,672,413 | $ | 1,794,564 | |||
Hotel development | 195,919 | 146,079 | |||||
Investment in unconsolidated entities | 51,069 | 55,082 | |||||
Hotel held for sale | 9,684 | — | |||||
Cash and cash equivalents | 68,589 | 45,745 | |||||
Restricted cash | 78,134 | 77,927 | |||||
Accounts receivable, net of allowance for doubtful accounts of $221 and $469 at September 30, 2013 and December 31, 2012, respectively | 38,892 | 25,383 | |||||
Deferred expenses, net of accumulated amortization of $18,690 and $13,820 at September 30, 2013 and December 31, 2012, respectively | 30,921 | 34,262 | |||||
Other assets | 26,741 | 23,391 | |||||
Total assets | $ | 2,172,362 | $ | 2,202,433 | |||
Liabilities and Partners’ Capital | |||||||
Debt, net of discount of $6,181 and $10,318 at September 30, 2013 and December 31, 2012, respectively | $ | 1,648,165 | $ | 1,630,525 | |||
Distributions payable | 8,545 | 8,545 | |||||
Accrued expenses and other liabilities | 163,464 | 138,442 | |||||
Total liabilities | 1,820,174 | 1,777,512 | |||||
Commitments and contingencies | |||||||
Redeemable units, 618 and 621 units issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 3,804 | 2,902 | |||||
Capital: | |||||||
Preferred units: | |||||||
Series A Cumulative Convertible Preferred Units, 12,880 units issued and outstanding at September 30, 2013 and December 31, 2012 | 309,362 | 309,362 | |||||
Series C Cumulative Redeemable Preferred Units, 68 units issued and outstanding at September 30, 2013 and December 31, 2012 | 169,412 | 169,412 | |||||
Common units, 124,126 and 124,117 units issued and outstanding at September 30, 2013 and December 31, 2012, respectively | (179,422 | ) | (110,258 | ) | |||
Accumulated other comprehensive income | 25,556 | 26,151 | |||||
Total FelCor LP partners’ capital | 324,908 | 394,667 | |||||
Noncontrolling interests | 23,476 | 27,352 | |||||
Total partners’ capital | 348,384 | 422,019 | |||||
Total liabilities and partners’ capital | $ | 2,172,362 | $ | 2,202,433 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues: | |||||||||||||||
Hotel operating revenue | $ | 230,979 | $ | 223,000 | $ | 682,927 | $ | 654,853 | |||||||
Other revenue | 1,584 | 1,441 | 3,034 | 2,672 | |||||||||||
Total revenues | 232,563 | 224,441 | 685,961 | 657,525 | |||||||||||
Expenses: | |||||||||||||||
Hotel departmental expenses | 82,609 | 80,144 | 249,752 | 236,986 | |||||||||||
Other property-related costs | 61,153 | 59,766 | 181,942 | 176,050 | |||||||||||
Management and franchise fees | 9,272 | 10,425 | 27,568 | 30,787 | |||||||||||
Taxes, insurance and lease expense | 25,957 | 24,771 | 73,209 | 70,257 | |||||||||||
Corporate expenses | 5,817 | 5,695 | 20,343 | 20,074 | |||||||||||
Depreciation and amortization | 30,124 | 30,050 | 90,407 | 87,305 | |||||||||||
Impairment loss | — | — | 24,441 | — | |||||||||||
Conversion expenses | (81 | ) | — | 1,134 | — | ||||||||||
Other expenses | 2,102 | 1,959 | 6,838 | 3,722 | |||||||||||
Total operating expenses | 216,953 | 212,810 | 675,634 | 625,181 | |||||||||||
Operating income | 15,610 | 11,631 | 10,327 | 32,344 | |||||||||||
Interest expense, net | (25,996 | ) | (30,568 | ) | (79,053 | ) | (91,013 | ) | |||||||
Debt extinguishment | — | (10,377 | ) | — | (10,498 | ) | |||||||||
Gain on involuntary conversion, net | 21 | — | 21 | — | |||||||||||
Loss before equity in income from unconsolidated entities | (10,365 | ) | (29,314 | ) | (68,705 | ) | (69,167 | ) | |||||||
Equity in income from unconsolidated entities | 2,100 | 1,536 | 4,095 | 2,674 | |||||||||||
Loss from continuing operations | (8,265 | ) | (27,778 | ) | (64,610 | ) | (66,493 | ) | |||||||
Income from discontinued operations | 12,054 | 8,223 | 18,999 | 30,105 | |||||||||||
Net income (loss) | 3,789 | (19,555 | ) | (45,611 | ) | (36,388 | ) | ||||||||
Net loss (income) attributable to noncontrolling interests | (591 | ) | 386 | 3,621 | 440 | ||||||||||
Net income (loss) attributable to FelCor LP | 3,198 | (19,169 | ) | (41,990 | ) | (35,948 | ) | ||||||||
Preferred distributions | (9,678 | ) | (9,678 | ) | (29,034 | ) | (29,034 | ) | |||||||
Net loss attributable to FelCor LP common unitholders | $ | (6,480 | ) | $ | (28,847 | ) | $ | (71,024 | ) | $ | (64,982 | ) | |||
Basic and diluted per common unit data: | |||||||||||||||
Loss from continuing operations | $ | (0.14 | ) | $ | (0.30 | ) | $ | (0.72 | ) | $ | (0.76 | ) | |||
Net loss | $ | (0.05 | ) | $ | (0.23 | ) | $ | (0.57 | ) | $ | (0.52 | ) | |||
Basic and diluted weighted average common units outstanding | 124,435 | 124,266 | 124,435 | 124,278 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss) | $ | 3,789 | $ | (19,555 | ) | $ | (45,611 | ) | $ | (36,388 | ) | ||||
Foreign currency translation adjustment | 329 | 502 | (595 | ) | 493 | ||||||||||
Comprehensive income (loss) | 4,118 | (19,053 | ) | (46,206 | ) | (35,895 | ) | ||||||||
Comprehensive loss (income) attributable to noncontrolling interests | (591 | ) | 386 | 3,621 | 440 | ||||||||||
Comprehensive income (loss) attributable to FelCor LP | $ | 3,527 | $ | (18,667 | ) | $ | (42,585 | ) | $ | (35,455 | ) |
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 | — | 623 | — | — | 623 | ||||||||||||||||||
Contributions | — | — | — | 2,756 | 2,756 | ||||||||||||||||||
Distributions | — | (29,034 | ) | — | (931 | ) | (29,965 | ) | |||||||||||||||
Allocation to redeemable units | — | (210 | ) | — | — | (210 | ) | ||||||||||||||||
Other | — | (4 | ) | — | — | (4 | ) | ||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||
Foreign exchange translation | 493 | $ | 493 | ||||||||||||||||||||
Net loss | (35,948 | ) | (440 | ) | (36,388 | ) | |||||||||||||||||
Comprehensive loss | $ | (35,895 | ) | (35,895 | ) | ||||||||||||||||||
Balance at September 30, 2012 | $ | 478,774 | $ | (7,657 | ) | $ | 26,341 | $ | 26,742 | $ | 524,200 | ||||||||||||
Balance at December 31, 2012 | $ | 478,774 | $ | (110,258 | ) | $ | 26,151 | $ | 27,352 | $ | 422,019 | ||||||||||||
FelCor restricted stock compensation | — | 2,762 | — | — | 2,762 | ||||||||||||||||||
Contributions | — | — | — | 3,024 | 3,024 | ||||||||||||||||||
Distributions | — | (29,034 | ) | — | (3,279 | ) | (32,313 | ) | |||||||||||||||
Allocation to redeemable units | — | (902 | ) | — | — | (902 | ) | ||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||
Foreign exchange translation | (595 | ) | $ | (595 | ) | ||||||||||||||||||
Net loss | (41,990 | ) | (3,621 | ) | (45,611 | ) | |||||||||||||||||
Comprehensive loss | $ | (46,206 | ) | (46,206 | ) | ||||||||||||||||||
Balance at September 30, 2013 | $ | 478,774 | $ | (179,422 | ) | $ | 25,556 | $ | 23,476 | $ | 348,384 |
Nine Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (45,611 | ) | $ | (36,388 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 94,102 | 97,477 | |||||
Gain on sale of hotels, net | (19,068 | ) | (26,641 | ) | |||
Gain on involuntary conversion, net | (87 | ) | — | ||||
Amortization of deferred financing fees and debt discount | 8,224 | 13,646 | |||||
Amortization of fixed stock and directors’ compensation | 4,547 | 3,748 | |||||
Equity based severance | 822 | — | |||||
Equity in income from unconsolidated entities | (4,095 | ) | (2,674 | ) | |||
Distributions of income from unconsolidated entities | 3,389 | 3,431 | |||||
Debt extinguishment | — | 12,598 | |||||
Impairment loss | 27,706 | 1,335 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (13,501 | ) | (7,649 | ) | |||
Other assets | (8,336 | ) | (6,194 | ) | |||
Accrued expenses and other liabilities | 20,279 | 20,118 | |||||
Net cash flow provided by operating activities | 68,371 | 72,807 | |||||
Cash flows from investing activities: | |||||||
Improvements and additions to hotels | (74,456 | ) | (99,985 | ) | |||
Hotel development | (46,724 | ) | (16,707 | ) | |||
Net proceeds from asset dispositions | 89,929 | 124,610 | |||||
Change in restricted cash – investing | (670 | ) | 2,598 | ||||
Insurance proceeds | 218 | — | |||||
Distributions from unconsolidated entities | 6,218 | 11,894 | |||||
Contributions to unconsolidated entities | (1,500 | ) | — | ||||
Net cash flow provided by (used in) investing activities | (26,985 | ) | 22,410 | ||||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 137,245 | 378,750 | |||||
Repayment of borrowings | (123,741 | ) | (395,355 | ) | |||
Payment of deferred financing fees | (2,723 | ) | (3,167 | ) | |||
Distributions paid to noncontrolling interests | (3,279 | ) | (931 | ) | |||
Contributions from noncontrolling interests | 3,024 | 2,756 | |||||
Distributions paid to preferred unitholders | (29,034 | ) | (59,021 | ) | |||
Net cash flow used in financing activities | (18,508 | ) | (76,968 | ) | |||
Effect of exchange rate changes on cash | (34 | ) | 112 | ||||
Net change in cash and cash equivalents | 22,844 | 18,361 | |||||
Cash and cash equivalents at beginning of periods | 45,745 | 93,758 | |||||
Cash and cash equivalents at end of periods | $ | 68,589 | $ | 112,119 | |||
Supplemental cash flow information – interest paid, net of capitalized interest | $ | 54,326 | $ | 61,700 |
1. | Organization |
Brand | Hotels | Rooms | |||||
Embassy Suites Hotels® | 33 | 8,617 | |||||
Wyndham® and Wyndham Grand® | 8 | 2,526 | |||||
Holiday Inn® | 4 | 1,702 | |||||
Sheraton® and Westin® | 4 | 1,604 | |||||
DoubleTree by Hilton® and Hilton® | 5 | 1,206 | |||||
Marriott® and Renaissance® | 3 | 1,321 | |||||
Fairmont® | 1 | 383 | |||||
Morgans and Royalton | 2 | 285 | |||||
Total | 60 | 17,644 |
2. | Investment in Unconsolidated Entities |
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Investment in hotels and other properties, net of accumulated depreciation | $ | 145,056 | $ | 155,888 | |||||
Total assets | $ | 163,602 | $ | 170,477 | |||||
Debt | $ | 146,872 | $ | 148,395 | |||||
Total liabilities | $ | 152,500 | $ | 154,139 | |||||
Equity | $ | 11,102 | $ | 16,338 |
2. | Investment in Unconsolidated Entities — (continued) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total revenues | $ | 21,844 | $ | 21,075 | $ | 55,995 | $ | 54,012 | |||||||||
Net income | $ | 5,131 | $ | 4,002 | $ | 10,980 | $ | 8,138 | |||||||||
Net income attributable to FelCor | $ | 2,565 | $ | 2,001 | $ | 5,490 | $ | 4,069 | |||||||||
Depreciation of cost in excess of book value | (465 | ) | (465 | ) | (1,395 | ) | (1,395 | ) | |||||||||
Equity in income from unconsolidated entities | $ | 2,100 | $ | 1,536 | $ | 4,095 | $ | 2,674 |
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
Hotel-related investments | $ | (3,243 | ) | $ | 246 | ||
Cost in excess of book value of hotel investments | 45,518 | 46,913 | |||||
Land and condominium investments | 8,794 | 7,923 | |||||
$ | 51,069 | $ | 55,082 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Hotel investments | $ | 1,632 | $ | 1,055 | $ | 4,223 | $ | 2,746 | |||||||
Other investments | 468 | 481 | (128 | ) | (72 | ) | |||||||||
Equity in income from unconsolidated entities | $ | 2,100 | $ | 1,536 | $ | 4,095 | $ | 2,674 |
3. | Debt |
Encumbered | Interest | Maturity | September 30, | December 31, | ||||||||||||
Hotels | Rate (%) | Date | 2013 | 2012 | ||||||||||||
Line of credit | 9 | LIBOR + 3.375 | June 2016(a) | $ | 73,000 | $ | 56,000 | |||||||||
Hotel mortgage debt | ||||||||||||||||
Mortgage debt(b) | 5 | 6.66 | June - August 2014 | 63,877 | 65,431 | |||||||||||
Mortgage debt | 1 | 5.81 | July 2016 | 10,032 | 10,405 | |||||||||||
Mortgage debt(b) | 4 | 4.95 | October 2022 | 126,839 | 128,066 | |||||||||||
Mortgage debt | 1 | 4.94 | October 2022 | 31,832 | 32,176 | |||||||||||
Senior notes | ||||||||||||||||
Senior secured notes | 11 | 10.00 | October 2014 | 227,724 | 223,586 | |||||||||||
Senior secured notes | 6 | 6.75 | June 2019 | 525,000 | 525,000 | |||||||||||
Senior secured notes | 9 | 5.625 | March 2023 | 525,000 | 525,000 | |||||||||||
Other(c) | — | LIBOR + 1.25 | May 2016 | 64,861 | 64,861 | |||||||||||
Total | 46 | $ | 1,648,165 | $ | 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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Room revenue | $ | 185,281 | $ | 179,085 | $ | 533,618 | $ | 514,029 | |||||||||
Food and beverage revenue | 33,460 | 31,968 | 113,380 | 103,578 | |||||||||||||
Other operating departments | 12,238 | 11,947 | 35,929 | 37,246 | |||||||||||||
Total hotel operating revenue | $ | 230,979 | $ | 223,000 | $ | 682,927 | $ | 654,853 |
Three Months Ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||
Room | $ | 48,436 | 21.0 | % | $ | 47,095 | 21.1 | % | |||||||
Food and beverage | 28,513 | 12.3 | 27,609 | 12.4 | |||||||||||
Other operating departments | 5,660 | 2.5 | 5,440 | 2.4 | |||||||||||
Total hotel departmental expenses | $ | 82,609 | 35.8 | % | $ | 80,144 | 35.9 | % |
Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||
Room | $ | 141,701 | 20.7 | % | $ | 136,221 | 20.8 | % | |||||||
Food and beverage | 91,061 | 13.3 | 84,250 | 12.9 | |||||||||||
Other operating departments | 16,990 | 2.6 | 16,515 | 2.5 | |||||||||||
Total hotel departmental expenses | $ | 249,752 | 36.6 | % | $ | 236,986 | 36.2 | % |
4. | Hotel Operating Revenue, Departmental Expenses, and Other Property-Related Costs — (continued) |
Three Months Ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||
Hotel general and administrative expense | $ | 20,228 | 8.8 | % | $ | 19,603 | 8.8 | % | |||||||
Marketing | 18,475 | 8.0 | 18,321 | 8.2 | |||||||||||
Repair and maintenance | 11,441 | 5.0 | 11,115 | 5.0 | |||||||||||
Utilities | 11,009 | 4.7 | 10,727 | 4.8 | |||||||||||
Total other property-related costs | $ | 61,153 | 26.5 | % | $ | 59,766 | 26.8 | % |
Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||
Hotel general and administrative expense | $ | 60,964 | 8.9 | % | $ | 58,891 | 9.0 | % | |||||||
Marketing | 57,494 | 8.4 | 55,257 | 8.4 | |||||||||||
Repair and maintenance | 34,489 | 5.1 | 33,405 | 5.1 | |||||||||||
Utilities | 28,995 | 4.2 | 28,497 | 4.4 | |||||||||||
Total other property-related costs | $ | 181,942 | 26.6 | % | $ | 176,050 | 26.9 | % |
5. | Taxes, Insurance and Lease Expense |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Hotel lease expense(a) | $ | 11,849 | $ | 10,910 | $ | 33,572 | $ | 31,339 | |||||||
Land lease expense(b) | 3,313 | 3,381 | 8,478 | 8,568 | |||||||||||
Real estate and other taxes | 8,596 | 7,937 | 24,022 | 23,012 | |||||||||||
Property insurance, general liability insurance and other | 2,199 | 2,543 | 7,137 | 7,338 | |||||||||||
Total taxes, insurance and lease expense | $ | 25,957 | $ | 24,771 | $ | 73,209 | $ | 70,257 |
(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 $6.4 million and $5.5 million for the three months ended September 30, 2013 and 2012, respectively, and $17.2 million and $15.0 million for the nine months ended September 30, 2013 and 2012, respectively. |
(b) | Land lease expense includes percentage rent of $1.9 million and $2.0 million for the three months ended September 30, 2013 and 2012, respectively, and $4.2 million and $4.3 million for the nine months ended September 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 | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Hotel operating revenue | $ | 5,038 | $ | 19,353 | $ | 25,045 | $ | 86,968 | |||||||||||
Operating expenses(a) | (4,859 | ) | (18,612 | ) | (25,180 | ) | (76,877 | ) | |||||||||||
Operating income (loss) from discontinued operations | 179 | 741 | (135 | ) | 10,091 | ||||||||||||||
Interest expense, net | — | (1,031 | ) | — | (4,527 | ) | |||||||||||||
Debt extinguishment | — | (1,409 | ) | — | (2,100 | ) | |||||||||||||
Gain on involuntary conversion, net | 66 | — | 66 | — | |||||||||||||||
Gain on sale of hotels, net | 11,809 | 9,922 | 19,068 | 26,641 | |||||||||||||||
Income from discontinued operations | $ | 12,054 | $ | 8,223 | $ | 18,999 | $ | 30,105 |
8. | Loss Per Share/Unit |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Numerator: | |||||||||||||||
Net income (loss) attributable to FelCor | $ | 3,230 | $ | (19,025 | ) | $ | (41,638 | ) | $ | (35,619 | ) | ||||
Discontinued operations attributable to FelCor | (11,121 | ) | (8,172 | ) | (17,945 | ) | (29,895 | ) | |||||||
Loss from continuing operations attributable to FelCor | (7,891 | ) | (27,197 | ) | (59,583 | ) | (65,514 | ) | |||||||
Less: Preferred dividends | (9,678 | ) | (9,678 | ) | (29,034 | ) | (29,034 | ) | |||||||
Numerator for continuing operations attributable to FelCor common stockholders | (17,569 | ) | (36,875 | ) | (88,617 | ) | (94,548 | ) | |||||||
Discontinued operations attributable to FelCor | 11,121 | 8,172 | 17,945 | 29,895 | |||||||||||
Numerator for basic and diluted loss attributable to FelCor common stockholders | $ | (6,448 | ) | $ | (28,703 | ) | $ | (70,672 | ) | $ | (64,653 | ) | |||
Denominator: | |||||||||||||||
Denominator for basic and diluted loss per share | 123,817 | 123,640 | 123,815 | 123,648 | |||||||||||
Basic and diluted loss per share data: | |||||||||||||||
Loss from continuing operations | $ | (0.14 | ) | $ | (0.30 | ) | $ | (0.72 | ) | $ | (0.76 | ) | |||
Discontinued operations | $ | 0.09 | $ | 0.07 | $ | 0.14 | $ | 0.24 | |||||||
Net loss | $ | (0.05 | ) | $ | (0.23 | ) | $ | (0.57 | ) | $ | (0.52 | ) |
8. | Loss Per Share/Unit — (continued) |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Numerator: | |||||||||||||||
Net income (loss) attributable to FelCor LP | $ | 3,198 | $ | (19,169 | ) | $ | (41,990 | ) | $ | (35,948 | ) | ||||
Discontinued operations attributable to FelCor LP | (11,176 | ) | (8,213 | ) | (18,033 | ) | (30,046 | ) | |||||||
Loss from continuing operations attributable to FelCor LP | (7,978 | ) | (27,382 | ) | (60,023 | ) | (65,994 | ) | |||||||
Less: Preferred distributions | (9,678 | ) | (9,678 | ) | (29,034 | ) | (29,034 | ) | |||||||
Numerator for continuing operations attributable to FelCor LP common unitholders | (17,656 | ) | (37,060 | ) | (89,057 | ) | (95,028 | ) | |||||||
Discontinued operations attributable to FelCor LP | 11,176 | 8,213 | 18,033 | 30,046 | |||||||||||
Numerator for basic and diluted loss attributable to FelCor common unitholders | $ | (6,480 | ) | $ | (28,847 | ) | $ | (71,024 | ) | $ | (64,982 | ) | |||
Denominator: | |||||||||||||||
Denominator for basic and diluted loss per unit | 124,435 | 124,266 | 124,435 | 124,278 | |||||||||||
Basic and diluted loss per unit data: | |||||||||||||||
Loss from continuing operations | $ | (0.14 | ) | $ | (0.30 | ) | $ | (0.72 | ) | $ | (0.76 | ) | |||
Discontinued operations | $ | 0.09 | $ | 0.07 | $ | 0.14 | $ | 0.24 | |||||||
Net loss | $ | (0.05 | ) | $ | (0.23 | ) | $ | (0.57 | ) | $ | (0.52 | ) |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Series A convertible preferred shares/units | 9,985 | 9,985 | 9,985 | 9,985 | |||||||
FelCor restricted stock units | 728 | — | 461 | — |
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) |
Nine Months Ended | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Balance at beginning of period | $ | 2,902 | $ | 3,026 | |||||
Conversion of units | (23 | ) | (45 | ) | |||||
Redemption value allocation | 1,280 | 581 | |||||||
Comprehensive loss: | |||||||||
Foreign exchange translation | (3 | ) | 3 | ||||||
Net loss | (352 | ) | (329 | ) | |||||
Balance at end of period | $ | 3,804 | $ | 3,236 |
11. | FelCor LP’s Consolidating Financial Information |
December 31, 2011 | $ | 21 | ||
December 31, 2012 | $ | 11 | ||
March 31, 2013 | $ | 12 | ||
June 30, 2013 | $ | 11 |
December 31, 2011 | $ | 21 | |
December 31, 2012 | $ | 21 | |
March 31, 2013 | $ | 21 | |
June 30, 2013 | $ | 21 |
For the years ended: | |||
December 31, 2012 | $ | 0.3 | |
December 31, 2011 | $ | (0.8 | ) |
December 31, 2010 | $ | 2.0 | |
For the: | |||
Three months ended March 31, 2013 | $ | (0.3 | ) |
Three months ended March 31, 2012 | $ | 0.3 | |
Three months ended June 30, 2013 | $ | (0.5 | ) |
Three months ended June 30, 2012 | $ | (0.2 | ) |
Three months ended September 30, 2012 | $ | 0.4 | |
Six months ended June 30, 2013 | $ | (0.7 | ) |
Six months ended June 30, 2012 | $ | — | |
Nine months ended September 30, 2012 | $ | 0.4 |
December 31, 2011 | $ | 26 | |
December 31, 2012 | $ | 26 | |
March 31, 2013 | $ | 26 | |
June 30, 2013 | $ | 25 |
For the years ended: | |||
December 31, 2012 | $ | 0.3 | |
December 31, 2011 | $ | (0.7 | ) |
December 31, 2010 | $ | 2.9 | |
For the: | |||
Three months ended March 31, 2013 | $ | (0.4 | ) |
Three months ended March 31, 2012 | $ | 0.3 | |
Three months ended June 30, 2013 | $ | (0.6 | ) |
Three months ended June 30, 2012 | $ | (0.3 | ) |
Three months ended September 30, 2012 | $ | 0.5 | |
Six months ended June 30, 2013 | $ | (0.9 | ) |
Six months ended June 30, 2012 | $ | — | |
Nine months ended September 30, 2012 | $ | 0.5 |
11. | FelCor LP’s Consolidating Financial Information – (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net investment in hotels | $ | 47,869 | $ | 1,057,396 | $ | 567,148 | $ | — | $ | 1,672,413 | |||||||||
Hotel development | — | — | 195,919 | — | 195,919 | ||||||||||||||
Equity investment in consolidated entities | 1,515,142 | — | — | (1,515,142 | ) | — | |||||||||||||
Investment in unconsolidated entities | 37,229 | 12,473 | 1,367 | — | 51,069 | ||||||||||||||
Hotel held for sale | 9,676 | 8 | — | — | 9,684 | ||||||||||||||
Cash and cash equivalents | 15,731 | 45,649 | 7,209 | — | 68,589 | ||||||||||||||
Restricted cash | — | 6,955 | 71,179 | — | 78,134 | ||||||||||||||
Accounts receivable, net | 160 | 38,186 | 546 | — | 38,892 | ||||||||||||||
Deferred expenses, net | 21,402 | — | 9,519 | — | 30,921 | ||||||||||||||
Other assets | 8,719 | 12,513 | 17,249 | (11,740 | ) | 26,741 | |||||||||||||
Total assets | $ | 1,655,928 | $ | 1,173,180 | $ | 870,136 | $ | (1,526,882 | ) | $ | 2,172,362 | ||||||||
Debt, net | $ | 1,277,723 | $ | 11,740 | $ | 370,442 | $ | (11,740 | ) | $ | 1,648,165 | ||||||||
Distributions payable | 8,545 | — | — | — | 8,545 | ||||||||||||||
Accrued expenses and other liabilities | 40,948 | 109,426 | 13,090 | — | 163,464 | ||||||||||||||
Total liabilities | 1,327,216 | 121,166 | 383,532 | (11,740 | ) | 1,820,174 | |||||||||||||
Redeemable units | 3,804 | — | — | — | 3,804 | ||||||||||||||
Preferred units | 478,774 | — | — | — | 478,774 | ||||||||||||||
Common units | (179,422 | ) | 1,047,816 | 441,770 | (1,489,586 | ) | (179,422 | ) | |||||||||||
Accumulated other comprehensive income | 25,556 | 4,630 | 20,926 | (25,556 | ) | 25,556 | |||||||||||||
Total FelCor LP partners’ capital | 324,908 | 1,052,446 | 462,696 | (1,515,142 | ) | 324,908 | |||||||||||||
Noncontrolling interests | — | (432 | ) | 23,908 | — | 23,476 | |||||||||||||
Total partners’ capital | 324,908 | 1,052,014 | 486,604 | (1,515,142 | ) | 348,384 | |||||||||||||
Total liabilities and partners’ capital | $ | 1,655,928 | $ | 1,173,180 | $ | 870,136 | $ | (1,526,882 | ) | $ | 2,172,362 |
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 | 16,187 | (11,240 | ) | 23,391 | |||||||||||||
Total assets | $ | 1,700,017 | $ | 1,187,800 | $ | 877,233 | $ | (1,562,617 | ) | $ | 2,202,433 | ||||||||
Debt, net | $ | 1,273,587 | $ | 11,240 | $ | 356,938 | $ | (11,240 | ) | $ | 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 | 107,226 | 379,078 | (11,240 | ) | 1,777,512 | |||||||||||||
Redeemable units | 2,902 | — | — | — | 2,902 | ||||||||||||||
Preferred units | 478,774 | — | — | — | 478,774 | ||||||||||||||
Common units | (110,258 | ) | 1,076,067 | 449,159 | (1,525,226 | ) | (110,258 | ) | |||||||||||
Accumulated other comprehensive income | 26,151 | 4,782 | 21,369 | (26,151 | ) | 26,151 | |||||||||||||
Total FelCor LP partners’ capital | 394,667 | 1,080,849 | 470,528 | (1,551,377 | ) | 394,667 | |||||||||||||
Noncontrolling interests | — | (275 | ) | 27,627 | — | 27,352 | |||||||||||||
Total partners’ capital | 394,667 | 1,080,574 | 498,155 | (1,551,377 | ) | 422,019 | |||||||||||||
Total liabilities and partners’ capital | $ | 1,700,017 | $ | 1,187,800 | $ | 877,233 | $ | (1,562,617 | ) | $ | 2,202,433 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 230,979 | $ | — | $ | — | $ | 230,979 | |||||||||
Percentage lease revenue | 2,756 | — | 21,567 | (24,323 | ) | — | |||||||||||||
Other revenue | 1 | 1,401 | 182 | — | 1,584 | ||||||||||||||
Total revenues | 2,757 | 232,380 | 21,749 | (24,323 | ) | 232,563 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 153,034 | — | — | 153,034 | ||||||||||||||
Taxes, insurance and lease expense | 1,066 | 45,836 | 3,378 | (24,323 | ) | 25,957 | |||||||||||||
Corporate expenses | (212 | ) | 4,694 | 1,335 | — | 5,817 | |||||||||||||
Depreciation and amortization | 1,004 | 18,045 | 11,075 | — | 30,124 | ||||||||||||||
Conversion expenses | — | (17 | ) | (64 | ) | — | (81 | ) | |||||||||||
Other expenses | 105 | 1,174 | 823 | — | 2,102 | ||||||||||||||
Total operating expenses | 1,963 | 222,766 | 16,547 | (24,323 | ) | 216,953 | |||||||||||||
Operating income | 794 | 9,614 | 5,202 | — | 15,610 | ||||||||||||||
Interest expense, net | (20,976 | ) | (317 | ) | (4,703 | ) | — | (25,996 | ) | ||||||||||
Gain on involuntary conversion, net | — | — | 21 | — | 21 | ||||||||||||||
Loss before equity in income from unconsolidated entities | (20,182 | ) | 9,297 | 520 | — | (10,365 | ) | ||||||||||||
Equity in income from consolidated entities | 21,537 | — | — | (21,537 | ) | — | |||||||||||||
Equity in income from unconsolidated entities | 1,602 | 509 | (11 | ) | — | 2,100 | |||||||||||||
Loss from continuing operations | 2,957 | 9,806 | 509 | (21,537 | ) | (8,265 | ) | ||||||||||||
Income from discontinued operations | 241 | 2,122 | 9,691 | — | 12,054 | ||||||||||||||
Net income | 3,198 | 11,928 | 10,200 | (21,537 | ) | 3,789 | |||||||||||||
Income attributable to noncontrolling interests | — | 319 | (910 | ) | — | (591 | ) | ||||||||||||
Net income attributable to FelCor LP | 3,198 | 12,247 | 9,290 | (21,537 | ) | 3,198 | |||||||||||||
Preferred distributions | (9,678 | ) | — | — | — | (9,678 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (6,480 | ) | $ | 12,247 | $ | 9,290 | $ | (21,537 | ) | $ | (6,480 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 223,000 | $ | — | $ | — | $ | 223,000 | |||||||||
Percentage lease revenue | 2,575 | — | 29,718 | (32,293 | ) | — | |||||||||||||
Other revenue | 7 | 1,269 | 165 | — | 1,441 | ||||||||||||||
Total revenues | 2,582 | 224,269 | 29,883 | (32,293 | ) | 224,441 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 150,335 | — | — | 150,335 | ||||||||||||||
Taxes, insurance and lease expense | 319 | 52,721 | 4,024 | (32,293 | ) | 24,771 | |||||||||||||
Corporate expenses | 139 | 3,643 | 1,913 | — | 5,695 | ||||||||||||||
Depreciation and amortization | 1,248 | 16,142 | 12,660 | — | 30,050 | ||||||||||||||
Other expenses | 88 | 1,584 | 287 | — | 1,959 | ||||||||||||||
Total operating expenses | 1,794 | 224,425 | 18,884 | (32,293 | ) | 212,810 | |||||||||||||
Operating income | 788 | (156 | ) | 10,999 | — | 11,631 | |||||||||||||
Interest expense, net | (21,532 | ) | (3,997 | ) | (5,039 | ) | — | (30,568 | ) | ||||||||||
Debt extinguishment | — | — | (10,377 | ) | — | (10,377 | ) | ||||||||||||
Loss before equity in income from unconsolidated entities | (20,744 | ) | (4,153 | ) | (4,417 | ) | — | (29,314 | ) | ||||||||||
Equity in income from consolidated entities | 559 | — | — | (559 | ) | — | |||||||||||||
Equity in income from unconsolidated entities | 1,040 | 507 | (11 | ) | — | 1,536 | |||||||||||||
Loss from continuing operations | (19,145 | ) | (3,646 | ) | (4,428 | ) | (559 | ) | (27,778 | ) | |||||||||
Income from discontinued operations | (24 | ) | (3,375 | ) | 11,622 | — | 8,223 | ||||||||||||
Net loss | (19,169 | ) | (7,021 | ) | 7,194 | (559 | ) | (19,555 | ) | ||||||||||
Loss attributable to noncontrolling interests | — | 286 | 100 | — | 386 | ||||||||||||||
Net loss attributable to FelCor LP | (19,169 | ) | (6,735 | ) | 7,294 | (559 | ) | (19,169 | ) | ||||||||||
Preferred distributions | (9,678 | ) | — | — | — | (9,678 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (28,847 | ) | $ | (6,735 | ) | $ | 7,294 | $ | (559 | ) | $ | (28,847 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 682,927 | $ | — | $ | — | $ | 682,927 | |||||||||
Percentage lease revenue | 5,633 | — | 67,918 | (73,551 | ) | — | |||||||||||||
Other revenue | 6 | 2,653 | 375 | — | 3,034 | ||||||||||||||
Total revenues | 5,639 | 685,580 | 68,293 | (73,551 | ) | 685,961 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 459,262 | — | — | 459,262 | ||||||||||||||
Taxes, insurance and lease expense | 1,756 | 134,714 | 10,290 | (73,551 | ) | 73,209 | |||||||||||||
Corporate expenses | 169 | 15,048 | 5,126 | — | 20,343 | ||||||||||||||
Depreciation and amortization | 3,439 | 53,534 | 33,434 | — | 90,407 | ||||||||||||||
Impairment loss | 14,294 | — | 10,147 | — | 24,441 | ||||||||||||||
Conversion expenses | 23 | 666 | 445 | — | 1,134 | ||||||||||||||
Other expenses | 2,883 | 2,533 | 1,422 | — | 6,838 | ||||||||||||||
Total operating expenses | 22,564 | 665,757 | 60,864 | (73,551 | ) | 675,634 | |||||||||||||
Operating income | (16,925 | ) | 19,823 | 7,429 | — | 10,327 | |||||||||||||
Interest expense, net | (63,961 | ) | (940 | ) | (14,152 | ) | — | (79,053 | ) | ||||||||||
Gain on involuntary conversion, net | — | — | 21 | — | 21 | ||||||||||||||
Loss before equity in income from unconsolidated entities | (80,886 | ) | 18,883 | (6,702 | ) | — | (68,705 | ) | |||||||||||
Equity in income from consolidated entities | 38,096 | — | — | (38,096 | ) | — | |||||||||||||
Equity in income from unconsolidated entities | 3,454 | 675 | (34 | ) | — | 4,095 | |||||||||||||
Loss from continuing operations | (39,336 | ) | 19,558 | (6,736 | ) | (38,096 | ) | (64,610 | ) | ||||||||||
Income from discontinued operations | (2,654 | ) | 1,763 | 19,890 | — | 18,999 | |||||||||||||
Net loss | (41,990 | ) | 21,321 | 13,154 | (38,096 | ) | (45,611 | ) | |||||||||||
Loss attributable to noncontrolling interests | — | 558 | 3,063 | — | 3,621 | ||||||||||||||
Net loss attributable to FelCor LP | (41,990 | ) | 21,879 | 16,217 | (38,096 | ) | (41,990 | ) | |||||||||||
Preferred distributions | (29,034 | ) | — | — | — | (29,034 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (71,024 | ) | $ | 21,879 | $ | 16,217 | $ | (38,096 | ) | $ | (71,024 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 654,853 | $ | — | $ | — | $ | 654,853 | |||||||||
Percentage lease revenue | 5,401 | — | 85,866 | (91,267 | ) | — | |||||||||||||
Other revenue | 12 | 2,311 | 349 | — | 2,672 | ||||||||||||||
Total revenues | 5,413 | 657,164 | 86,215 | (91,267 | ) | 657,525 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 443,823 | — | — | 443,823 | ||||||||||||||
Taxes, insurance and lease expense | 1,065 | 149,101 | 11,358 | (91,267 | ) | 70,257 | |||||||||||||
Corporate expenses | 333 | 12,601 | 7,140 | — | 20,074 | ||||||||||||||
Depreciation and amortization | 3,523 | 46,667 | 37,115 | — | 87,305 | ||||||||||||||
Other expenses | 564 | 2,765 | 393 | — | 3,722 | ||||||||||||||
Total operating expenses | 5,485 | 654,957 | 56,006 | (91,267 | ) | 625,181 | |||||||||||||
Operating income | (72 | ) | 2,207 | 30,209 | — | 32,344 | |||||||||||||
Interest expense, net | (63,906 | ) | (12,078 | ) | (15,029 | ) | — | (91,013 | ) | ||||||||||
Debt extinguishment | (7 | ) | (26 | ) | (10,465 | ) | — | (10,498 | ) | ||||||||||
Loss before equity in income from unconsolidated entities | (63,985 | ) | (9,897 | ) | 4,715 | — | (69,167 | ) | |||||||||||
Equity in income from consolidated entities | 26,048 | — | — | (26,048 | ) | — | |||||||||||||
Equity in income from unconsolidated entities | 2,058 | 650 | (34 | ) | — | 2,674 | |||||||||||||
Loss from continuing operations | (35,879 | ) | (9,247 | ) | 4,681 | (26,048 | ) | (66,493 | ) | ||||||||||
Income from discontinued operations | (69 | ) | (7,488 | ) | 37,662 | — | 30,105 | ||||||||||||
Net loss | (35,948 | ) | (16,735 | ) | 42,343 | (26,048 | ) | (36,388 | ) | ||||||||||
Loss attributable to noncontrolling interests | — | 575 | (135 | ) | — | 440 | |||||||||||||
Net loss attributable to FelCor LP | (35,948 | ) | (16,160 | ) | 42,208 | (26,048 | ) | (35,948 | ) | ||||||||||
Preferred distributions | (29,034 | ) | — | — | — | (29,034 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (64,982 | ) | $ | (16,160 | ) | $ | 42,208 | $ | (26,048 | ) | $ | (64,982 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net income | $ | 3,198 | $ | 11,928 | $ | 10,200 | $ | (21,537 | ) | $ | 3,789 | ||||||||
Foreign currency translation adjustment | 329 | 54 | 275 | (329 | ) | 329 | |||||||||||||
Comprehensive income | 3,527 | 11,982 | 10,475 | (21,866 | ) | 4,118 | |||||||||||||
Comprehensive income attributable to noncontrolling interests | — | 319 | (910 | ) | — | (591 | ) | ||||||||||||
Comprehensive income attributable to FelCor LP | $ | 3,527 | $ | 12,301 | $ | 9,565 | $ | (21,866 | ) | $ | 3,527 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (19,169 | ) | $ | (7,021 | ) | $ | 7,194 | $ | (559 | ) | $ | (19,555 | ) | |||||
Foreign currency translation adjustment | 502 | 113 | 389 | (502 | ) | 502 | |||||||||||||
Comprehensive loss | (18,667 | ) | (6,908 | ) | 7,583 | (1,061 | ) | (19,053 | ) | ||||||||||
Comprehensive loss attributable to noncontrolling interests | — | 286 | 100 | — | 386 | ||||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (18,667 | ) | $ | (6,622 | ) | $ | 7,683 | $ | (1,061 | ) | $ | (18,667 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (41,990 | ) | $ | 21,321 | $ | 13,154 | $ | (38,096 | ) | $ | (45,611 | ) | ||||||
Foreign currency translation adjustment | (595 | ) | (153 | ) | (442 | ) | 595 | (595 | ) | ||||||||||
Comprehensive loss | (42,585 | ) | 21,168 | 12,712 | (37,501 | ) | (46,206 | ) | |||||||||||
Comprehensive loss attributable to noncontrolling interests | — | 558 | 3,063 | — | 3,621 | ||||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (42,585 | ) | $ | 21,726 | $ | 15,775 | $ | (37,501 | ) | $ | (42,585 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (35,948 | ) | $ | (16,735 | ) | $ | 42,343 | $ | (26,048 | ) | $ | (36,388 | ) | |||||
Foreign currency translation adjustment | 493 | 63 | 430 | (493 | ) | 493 | |||||||||||||
Comprehensive loss | (35,455 | ) | (16,672 | ) | 42,773 | (26,541 | ) | (35,895 | ) | ||||||||||
Comprehensive loss attributable to noncontrolling interests | — | 575 | (135 | ) | — | 440 | |||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (35,455 | ) | $ | (16,097 | ) | $ | 42,638 | $ | (26,541 | ) | $ | (35,455 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Operating activities: | |||||||||||||||||||
Cash flows from operating activities | $ | (33,236 | ) | $ | 73,336 | $ | 28,271 | $ | — | $ | 68,371 | ||||||||
Investing activities: | |||||||||||||||||||
Improvements and additions to hotels | 2,467 | (46,230 | ) | (30,693 | ) | — | (74,456 | ) | |||||||||||
Hotel development | — | — | (46,724 | ) | — | (46,724 | ) | ||||||||||||
Net proceeds from asset dispositions | (24 | ) | 18,277 | 71,676 | — | 89,929 | |||||||||||||
Distributions from unconsolidated entities | 5,343 | 875 | — | — | 6,218 | ||||||||||||||
Contributions to unconsolidated entities | — | (1,500 | ) | — | — | (1,500 | ) | ||||||||||||
Intercompany financing | 64,238 | — | — | (64,238 | ) | — | |||||||||||||
Other | — | 2,006 | (2,458 | ) | — | (452 | ) | ||||||||||||
Cash flows from investing activities | 72,024 | (26,572 | ) | (8,199 | ) | (64,238 | ) | (26,985 | ) | ||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from borrowings | — | — | 137,245 | — | 137,245 | ||||||||||||||
Repayment of borrowings | — | — | (123,741 | ) | — | (123,741 | ) | ||||||||||||
Distributions paid to preferred unitholders | (29,034 | ) | — | — | — | (29,034 | ) | ||||||||||||
Intercompany financing | — | (31,907 | ) | (32,331 | ) | 64,238 | — | ||||||||||||
Other | (2,335 | ) | 401 | (1,044 | ) | — | (2,978 | ) | |||||||||||
Cash flows from financing activities | (31,369 | ) | (31,506 | ) | (19,871 | ) | 64,238 | (18,508 | ) | ||||||||||
Effect of exchange rate changes on cash | — | (34 | ) | — | — | (34 | ) | ||||||||||||
Change in cash and cash equivalents | 7,419 | 15,224 | 201 | — | 22,844 | ||||||||||||||
Cash and cash equivalents at beginning of period | 8,312 | 30,425 | 7,008 | — | 45,745 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 15,731 | $ | 45,649 | $ | 7,209 | $ | — | $ | 68,589 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Operating activities: | |||||||||||||||||||
Cash flows from operating activities | $ | (36,423 | ) | $ | 25,768 | $ | 83,462 | $ | — | $ | 72,807 | ||||||||
Investing activities: | |||||||||||||||||||
Improvements and additions to hotels | (7,158 | ) | (64,516 | ) | (28,311 | ) | — | (99,985 | ) | ||||||||||
Hotel development | — | — | (16,707 | ) | — | (16,707 | ) | ||||||||||||
Net proceeds from asset dispositions | (14 | ) | 7,931 | 116,693 | — | 124,610 | |||||||||||||
Distributions from unconsolidated entities | 11,269 | 625 | — | — | 11,894 | ||||||||||||||
Intercompany financing | 140,154 | — | — | (140,154 | ) | — | |||||||||||||
Other | — | 3,351 | (753 | ) | — | 2,598 | |||||||||||||
Cash flows from investing activities | 144,251 | (52,609 | ) | 70,922 | (140,154 | ) | 22,410 | ||||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from borrowings | — | — | 378,750 | — | 378,750 | ||||||||||||||
Repayment of borrowings | (96 | ) | (16,452 | ) | (378,807 | ) | — | (395,355 | ) | ||||||||||
Distributions paid to preferred unitholders | (59,021 | ) | — | — | — | (59,021 | ) | ||||||||||||
Intercompany financing | — | 10,272 | (150,426 | ) | 140,154 | — | |||||||||||||
Other | — | 1,796 | (3,138 | ) | — | (1,342 | ) | ||||||||||||
Cash flows from financing activities | (59,117 | ) | (4,384 | ) | (153,621 | ) | 140,154 | (76,968 | ) | ||||||||||
Effect of exchange rate changes on cash | — | 112 | — | — | 112 | ||||||||||||||
Change in cash and cash equivalents | 48,711 | (31,113 | ) | 763 | — | 18,361 | |||||||||||||
Cash and cash equivalents at beginning of period | 23,503 | 67,001 | 3,254 | — | 93,758 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 72,214 | $ | 35,888 | $ | 4,017 | $ | — | $ | 112,119 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Total revenue was $232.6 million, 3.6% more than last year. The increase was driven by a 2.8% increase in same-store RevPAR, reflecting a 2.6% increase in ADR and a 10 basis point increase in occupancy. |
• | Hotel departmental expenses increased $2.5 million. As a percentage of total revenue, hotel departmental expenses decreased from 35.7% last year to 35.5% in the current period. This decrease reflects favorable profitability margins in the rooms department, resulting from revenue increases driven primarily by ADR as opposed to occupancy. |
• | Other property-related costs increased $1.4 million. As a percentage of total revenue, other property-related costs decreased from 26.6% to 26.3%. This decrease primarily results from |
• | Management and franchise fees decreased $1.2 million. As a percentage of total revenue, these costs decreased from 4.6% last year to 4.0% in the current period. We converted eight hotels to Wyndham brands and management on March 1, 2013. Wyndham earns lower management fees than the previous management company. In addition, Wyndham’s guaranty of a minimum level of net operating income has reduced Wyndham’s contractual management fees during the current period. These arrangements with Wyndham more than offset increases in fees resulting from higher revenue. |
• | Taxes, insurance and lease expense increased $1.2 million and increased as a percent of total revenue from 11.0% last year to 11.2% in the current period. 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 and other taxes (last year we achieved significant reductions after appeals), partially offset by lower general liability insurance (reflecting more favorable claims experience). |
• | Net interest expense decreased $4.6 million. The decrease reflects our lower average interest rate and increased capitalized interest, partially offset by an increase in average debt for the period. |
• | Debt extinguishment. For the three months ended September 30, 2013, no debt extinguishment charges were included in continuing operations, while continuing operations for the same period last year included $10.4 million in debt extinguishment charges. The charges incurred in the prior year include prepayment penalties and the write-off of deferred loan costs related to the repayment of $143.5 million in debt secured by properties included in continuing operations. |
• | Discontinued operations include the results of operations for one hotel designated as held for sale at September 30, 2013, four hotels sold in 2013 and ten hotels sold in 2012. Discontinued operations in 2013 included a $11.8 million net gain on sale of hotels. Discontinued operations for 2012 primarily consisted of a $9.9 million net gain on the sale of one hotel and $1.4 million of debt extinguishment charges (related to $49.0 million in repayment of debt). |
• | Total revenue was $686.0 million, 4.3% more than last year. The increase was driven by a 3.4% increase in same-store RevPAR, reflecting a 3.4% increase in ADR and a 10 basis point increase in occupancy. |
• | Hotel departmental expenses increased $12.8 million. As a percentage of total revenue, hotel departmental expenses increased from 36.0% last year to 36.4% in the current period. This increase was primarily driven by low profitability at the eight transitioning Wyndham hotels. |
• | Other property-related costs increased $5.9 million. As a percentage of total revenue, other property-related costs decreased from 26.8% last year to 26.5% in the current period. This improvement primarily reflects revenue increases driven by ADR as opposed to occupancy. |
• | Management and franchise fees decreased $3.2 million. As a percentage of total revenue, these costs decreased from 4.7% last year to 4.0% in the current period. We converted eight hotels to Wyndham brands and management on March 1, 2013. Wyndham earns lower management fees than the previous management company. In addition, Wyndham’s guaranty of a minimum level of net operating income has reduced Wyndham’s contractual management fees during the current period. These arrangements with Wyndham more than offset increases in fees resulting from higher revenue. |
• | Taxes, insurance and lease expense increased $3.0 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 and other taxes (last year we achieved significant reductions after appeals). These higher expenses are partially offset by lower general liability insurance (reflecting more favorable claims experience). |
• | Depreciation and amortization expense increased $3.1 million, primarily reflecting additional depreciation after investing $121.5 million of capital in our hotels in 2012. |
• | Impairment loss. For the nine months ended September 30, 2013, we recorded $24.4 million of impairment charges for two hotels included in continuing operations after we reduced their 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 related to severance costs for two employees and pre-opening costs on our hotel development. |
• | Net interest expense decreased $12.0 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. |
• | Debt extinguishment. For the nine months ended September 30, 2013, no debt extinguishment charges were included in continuing operations, while continuing operations for the same period last year included $10.5 million in debt extinguishment charges. The charges incurred in the prior year include prepayment penalties and the write-off of deferred loan costs related to the repayment of $143.5 million in debt secured by properties included in continuing operations. |
• | Discontinued operations include the results of operations for one hotel designated as held for sale at September 30, 2013, four hotels sold in 2013 and ten hotels sold in 2012. Discontinued operations in 2013 included a $19.1 million net gain (primarily related to the sale of four hotels), offset by a $3.3 million impairment charge for the one hotel designated as held for sale. Discontinued operations for 2012 primarily consisted of a $26.6 million net gain on the sales of seven hotels, a $1.3 million impairment loss for one hotel and $2.1 million of debt extinguishment charges (related to $118.2 million in repayment of debt). |
Three Months Ended September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net income (loss) | $ | 3,789 | $ | (19,555 | ) | ||||||||||||||||
Noncontrolling interests | (559 | ) | 530 | ||||||||||||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | |||||||||||||||||
Net loss attributable to FelCor common stockholders | (6,448 | ) | 123,817 | $ | (0.05 | ) | (28,703 | ) | 123,640 | $ | (0.23 | ) | |||||||||
Depreciation and amortization | 30,124 | — | 0.24 | 30,050 | — | 0.25 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 3,461 | — | 0.03 | 5,363 | — | 0.04 | |||||||||||||||
Gain on involuntary conversion | (21 | ) | — | — | — | — | — | ||||||||||||||
Gain on involuntary conversion, discontinued operations, net of noncontrolling interests in other partnerships | (57 | ) | — | — | — | — | — | ||||||||||||||
Gain on sale of hotels, net of noncontrolling interests in other partnerships | (10,958 | ) | — | (0.09 | ) | (9,922 | ) | — | (0.08 | ) | |||||||||||
Noncontrolling interests in FelCor LP | (32 | ) | 618 | — | (144 | ) | 626 | (0.01 | ) | ||||||||||||
Conversion of unvested restricted stock | — | 983 | — | — | — | — | |||||||||||||||
FFO | 16,069 | 125,418 | 0.13 | (3,356 | ) | 124,266 | (0.03 | ) | |||||||||||||
Acquisition costs | — | — | — | 16 | — | — | |||||||||||||||
Hurricane loss | — | — | — | 646 | — | 0.01 | |||||||||||||||
Hurricane loss, discontinued operations and unconsolidated entities | — | — | — | 436 | — | — | |||||||||||||||
Debt extinguishment, including discontinued operations | — | — | — | 11,786 | — | 0.09 | |||||||||||||||
Severance costs | 106 | — | — | 71 | — | — | |||||||||||||||
Conversion expenses | (81 | ) | — | — | — | — | — | ||||||||||||||
Variable stock compensation | 151 | — | — | — | — | — | |||||||||||||||
Abandoned projects | — | — | — | 219 | — | — | |||||||||||||||
Pre-opening costs, net of noncontrolling interests | 814 | — | 0.01 | 202 | — | — | |||||||||||||||
Conversion of unvested restricted stock | — | — | — | — | 358 | 0.01 | |||||||||||||||
Adjusted FFO | $ | 17,059 | 125,418 | $ | 0.14 | $ | 10,020 | 124,624 | $ | 0.08 |
Nine Months Ended September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net loss | $ | (45,611 | ) | $ | (36,388 | ) | |||||||||||||||
Noncontrolling interests | 3,973 | 769 | |||||||||||||||||||
Preferred dividends | (29,034 | ) | (29,034 | ) | |||||||||||||||||
Net loss attributable to FelCor common stockholders | (70,672 | ) | 123,815 | $ | (0.57 | ) | (64,653 | ) | 123,648 | $ | (0.52 | ) | |||||||||
Depreciation and amortization | 90,407 | — | 0.73 | 87,305 | — | 0.71 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 11,800 | — | 0.10 | 18,554 | — | 0.15 | |||||||||||||||
Gain on involuntary conversion | (21 | ) | — | — | — | — | — | ||||||||||||||
Gain on involuntary conversion, discontinued operations, net of noncontrolling interests in other partnerships | (57 | ) | — | — | — | — | — | ||||||||||||||
Impairment loss, net of noncontrolling interests in other partnerships | 20,382 | — | 0.16 | — | — | — | |||||||||||||||
Impairment loss, discontinued operations | 3,265 | — | 0.03 | 1,335 | — | 0.01 | |||||||||||||||
Gain on sale of hotels, net of noncontrolling interests in other partnerships | (18,217 | ) | — | (0.15 | ) | (26,641 | ) | — | (0.22 | ) | |||||||||||
Noncontrolling interests in FelCor LP | (352 | ) | 620 | (0.01 | ) | (329 | ) | 630 | — | ||||||||||||
Conversion of unvested restricted stock | — | 672 | — | — | 280 | — | |||||||||||||||
FFO | 36,535 | 125,107 | 0.29 | 15,571 | 124,558 | 0.13 | |||||||||||||||
Acquisition costs | 23 | — | — | 114 | — | — | |||||||||||||||
Hurricane loss | — | — | — | 646 | — | 0.01 | |||||||||||||||
Hurricane loss, discontinued operations and unconsolidated entities | — | — | — | 436 | — | — | |||||||||||||||
Debt extinguishment, including discontinued operations | — | — | — | 12,598 | — | 0.10 | |||||||||||||||
Severance costs | 2,896 | — | 0.02 | 451 | — | — | |||||||||||||||
Conversion expenses | 1,134 | — | 0.01 | — | — | — | |||||||||||||||
Variable stock compensation | 374 | — | — | — | — | — | |||||||||||||||
Abandoned projects | — | — | — | 219 | — | — | |||||||||||||||
Pre-opening costs, net of noncontrolling interests | 1,376 | — | 0.02 | 245 | — | — | |||||||||||||||
Adjusted FFO | $ | 42,338 | 125,107 | $ | 0.34 | $ | 30,280 | 124,558 | $ | 0.24 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss) | $ | 3,789 | $ | (19,555 | ) | $ | (45,611 | ) | $ | (36,388 | ) | ||||
Depreciation and amortization | 30,124 | 30,050 | 90,407 | 87,305 | |||||||||||
Depreciation, discontinued operations and unconsolidated entities | 3,461 | 5,363 | 11,800 | 18,554 | |||||||||||
Interest expense | 26,011 | 30,602 | 79,113 | 91,129 | |||||||||||
Interest expense, discontinued operations and unconsolidated entities | 681 | 1,725 | 2,032 | 6,595 | |||||||||||
Noncontrolling interests in other partnerships | (591 | ) | 386 | 3,621 | 440 | ||||||||||
EBITDA | 63,475 | 48,571 | 141,362 | 167,635 | |||||||||||
Impairment loss, net of noncontrolling interests in other partnerships | — | — | 20,382 | — | |||||||||||
Impairment loss, discontinued operations | — | — | 3,265 | 1,335 | |||||||||||
Hurricane loss | — | 646 | — | 646 | |||||||||||
Hurricane loss, discontinued operations and unconsolidated entities | — | 436 | — | 436 | |||||||||||
Debt extinguishment, including discontinued operations | — | 11,786 | — | 12,598 | |||||||||||
Acquisition costs | — | 16 | 23 | 114 | |||||||||||
Gain on sale of hotels, net of noncontrolling interests in other partnerships | (10,958 | ) | (9,922 | ) | (18,217 | ) | (26,641 | ) | |||||||
Gain on involuntary conversion | (21 | ) | — | (21 | ) | — | |||||||||
Gain on involuntary conversion, discontinued operations, net of noncontrolling interests in other partnerships | (57 | ) | — | (57 | ) | — | |||||||||
Amortization of fixed stock and directors’ compensation | 1,397 | 1,210 | 4,547 | 3,748 | |||||||||||
Severance costs | 106 | 71 | 2,896 | 451 | |||||||||||
Abandoned projects | — | 219 | — | 219 | |||||||||||
Conversion expenses | (81 | ) | — | 1,134 | — | ||||||||||
Variable stock compensation | 151 | — | 374 | — | |||||||||||
Pre-opening costs, net of noncontrolling interests | 814 | 202 | 1,376 | 245 | |||||||||||
Adjusted EBITDA | $ | 54,826 | $ | 53,235 | 157,064 | 160,786 | |||||||||
Adjusted EBITDA from discontinued operations | (908 | ) | (3,773 | ) | (6,610 | ) | (21,855 | ) | |||||||
Same-store Adjusted EBITDA | $ | 53,918 | $ | 49,462 | $ | 150,454 | $ | 138,931 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Income from discontinued operations | $ | 12,054 | $ | 8,223 | $ | 18,999 | $ | 30,105 | |||||||
Depreciation and amortization, net of noncontrolling interests in other partnerships | 747 | 2,609 | 3,586 | 10,055 | |||||||||||
Interest expense | — | 1,031 | — | 4,527 | |||||||||||
Noncontrolling interests in other partnerships | (878 | ) | (10 | ) | (966 | ) | (59 | ) | |||||||
EBITDA from discontinued operations | $ | 11,923 | $ | 11,853 | $ | 21,619 | $ | 44,628 | |||||||
Impairment loss | — | — | 3,265 | 1,335 | |||||||||||
Hurricane loss | — | 433 | — | 433 | |||||||||||
Debt extinguishment | — | 1,409 | — | 2,100 | |||||||||||
Gain on involuntary conversion, net of noncontrolling interests in other partnerships | (57 | ) | — | (57 | ) | — | |||||||||
Gain on sale, net of noncontrolling interests in other partnerships | (10,958 | ) | (9,922 | ) | (18,217 | ) | (26,641 | ) | |||||||
Adjusted EBITDA from discontinued operations | $ | 908 | $ | 3,773 | $ | 6,610 | $ | 21,855 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Same-store operating revenue: | |||||||||||||||
Room | $ | 185,281 | $ | 179,085 | $ | 533,618 | $ | 514,029 | |||||||
Food and beverage | 33,460 | 31,968 | 113,380 | 103,578 | |||||||||||
Other operating departments | 12,238 | 11,947 | 35,929 | 37,246 | |||||||||||
Same-store operating revenue | 230,979 | 223,000 | 682,927 | 654,853 | |||||||||||
Same-store operating expense: | |||||||||||||||
Room | 48,436 | 47,095 | 141,701 | 136,221 | |||||||||||
Food and beverage | 28,513 | 27,609 | 91,061 | 84,250 | |||||||||||
Other operating departments | 5,660 | 5,440 | 16,990 | 16,515 | |||||||||||
Other property related costs | 61,153 | 59,766 | 181,942 | 176,050 | |||||||||||
Management and franchise fees | 9,272 | 10,425 | 27,568 | 30,787 | |||||||||||
Taxes, insurance and lease expense | 15,907 | 15,588 | 45,374 | 44,410 | |||||||||||
Same-store operating expense | 168,941 | 165,923 | 504,636 | 488,233 | |||||||||||
Hotel EBITDA | $ | 62,038 | $ | 57,077 | $ | 178,291 | $ | 166,620 | |||||||
Hotel EBITDA Margin | 26.9 | % | 25.6 | % | 26.1 | % | 25.4 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Hotel EBITDA - Comparable core (37) | $ | 41,659 | $ | 36,549 | $ | 121,495 | $ | 107,689 | |||||||
Hotel EBITDA - Non-strategic (15) | 10,377 | 9,613 | 30,507 | 28,838 | |||||||||||
Hotel EBITDA - Comparable (52) | 52,036 | 46,162 | 152,002 | 136,527 | |||||||||||
Hotel EBITDA - Wyndham (8) | 10,002 | 10,915 | 26,289 | 30,093 | |||||||||||
Hotel EBITDA (60) | $ | 62,038 | $ | 57,077 | $ | 178,291 | $ | 166,620 | |||||||
Hotel EBITDA Margin - Comparable core (37) | 25.0 | % | 23.7 | % | 24.7 | % | 23.7 | % | |||||||
Hotel EBITDA Margin - Non-strategic (15) | 27.3 | % | 26.7 | % | 27.5 | % | 27.0 | % | |||||||
Hotel EBITDA Margin - Comparable (52) | 25.4 | % | 24.3 | % | 25.2 | % | 24.3 | % | |||||||
Hotel EBITDA Margin - Wyndham (8) | 37.8 | % | 33.4 | % | 33.1 | % | 32.5 | % | |||||||
Hotel EBITDA Margin (60) | 26.9 | % | 25.6 | % | 26.1 | % | 25.4 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Same-store operating revenue | $ | 230,979 | $ | 223,000 | $ | 682,927 | $ | 654,853 | |||||||
Other revenue | 1,584 | 1,441 | 3,034 | 2,672 | |||||||||||
Total revenue | 232,563 | 224,441 | 685,961 | 657,525 | |||||||||||
Same-store operating expense | 168,941 | 165,923 | 504,636 | 488,233 | |||||||||||
Consolidated hotel lease expense(a) | 11,849 | 10,910 | 33,572 | 31,339 | |||||||||||
Unconsolidated taxes, insurance and lease expense | (1,799 | ) | (1,727 | ) | (5,737 | ) | (5,492 | ) | |||||||
Corporate expenses | 5,817 | 5,695 | 20,343 | 20,074 | |||||||||||
Depreciation and amortization | 30,124 | 30,050 | 90,407 | 87,305 | |||||||||||
Impairment loss | — | — | 24,441 | — | |||||||||||
Hurricane loss | — | 646 | — | 646 | |||||||||||
Conversion expenses | (81 | ) | — | 1,134 | — | ||||||||||
Other expenses | 2,102 | 1,313 | 6,838 | 3,076 | |||||||||||
Total operating expense | 216,953 | 212,810 | 675,634 | 625,181 | |||||||||||
Operating income | $ | 15,610 | $ | 11,631 | $ | 10,327 | $ | 32,344 |
(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 September 30, 2013 | ||||||
Consolidated Hotels | 60 | 17,644 | |||||
Unconsolidated hotel operations | 1 | 171 | |||||
Total hotels | 61 | 17,815 | |||||
50% joint ventures | 13 | (1,573 | ) | ||||
60% joint venture | 1 | (214 | ) | ||||
82% joint venture | 1 | (40 | ) | ||||
90% joint ventures | 2 | (44 | ) | ||||
Pro rata rooms attributed to joint venture partners | (1,871 | ) | |||||
Pro rata share of rooms owned | 15,944 |
Brand | Hotels | Rooms | 2012 Hotel Operating Revenue (in thousands) | 2012 Hotel EBITDA (in thousands)(a) | ||||||||||||||
Embassy Suites Hotels | 20 | 5,434 | $ | 256,201 | $ | 78,370 | ||||||||||||
Wyndham and Wyndham Grand(b) | 8 | 2,526 | 120,355 | 37,951 | ||||||||||||||
Renaissance and Marriott | 3 | 1,321 | 111,976 | 17,908 | ||||||||||||||
DoubleTree by Hilton and Hilton | 5 | 1,206 | 56,071 | 16,702 | ||||||||||||||
Sheraton and Westin | 4 | 1,604 | 68,369 | 14,536 | ||||||||||||||
Fairmont | 1 | 383 | 41,255 | 4,285 | ||||||||||||||
Holiday Inn | 2 | 968 | 40,512 | 4,217 | ||||||||||||||
Morgans and Royalton | 2 | 285 | 32,129 | 3,457 | ||||||||||||||
Core hotels | 45 | 13,727 | 726,868 | 177,426 | ||||||||||||||
Non-strategic hotels | 15 | 3,917 | 140,475 | 37,367 | ||||||||||||||
Same-store hotels | 60 | 17,644 | $ | 867,343 | $ | 214,793 | ||||||||||||
Market | ||||||||||||||||||
San Francisco area | 4 | 1,637 | $ | 99,659 | $ | 21,030 | ||||||||||||
Los Angeles area | 3 | 677 | 33,287 | 13,757 | ||||||||||||||
South Florida | 3 | 923 | 47,298 | 13,253 | ||||||||||||||
Boston | 3 | 916 | 68,121 | 12,123 | ||||||||||||||
New York area | 4 | 820 | 57,052 | 9,731 | ||||||||||||||
Myrtle Beach | 2 | 640 | 36,974 | 9,427 | ||||||||||||||
Atlanta | 3 | 952 | 35,410 | 9,228 | ||||||||||||||
Philadelphia | 2 | 728 | 36,122 | 8,880 | ||||||||||||||
Tampa | 1 | 361 | 45,152 | 7,955 | ||||||||||||||
San Diego | 1 | 600 | 26,445 | 6,687 | ||||||||||||||
Other markets | 19 | 5,473 | 241,348 | 65,355 | ||||||||||||||
Core hotels | 45 | 13,727 | 726,868 | 177,426 | ||||||||||||||
Non-strategic hotels | 15 | 3,917 | 140,475 | 37,367 | ||||||||||||||
Same-store hotels | 60 | 17,644 | $ | 867,343 | $ | 214,793 | ||||||||||||
Location | ||||||||||||||||||
Urban | 17 | 5,308 | $ | 316,355 | $ | 74,428 | ||||||||||||
Resort | 10 | 2,929 | 183,808 | 41,465 | ||||||||||||||
Airport | 9 | 2,957 | 126,906 | 33,734 | ||||||||||||||
Suburban | 9 | 2,533 | 99,799 | 27,799 | ||||||||||||||
Core hotels | 45 | 13,727 | 726,868 | 177,426 | ||||||||||||||
Non-strategic hotels | 15 | 3,917 | 140,475 | 37,367 | ||||||||||||||
Same-store hotels | 60 | 17,644 | $ | 867,343 | $ | 214,793 |
(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 brand and management from Holiday Inn on March 1, 2013. |
Occupancy (%) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | %Variance | 2013 | 2012 | %Variance | ||||||||||||||
Embassy Suites Hotels | 79.3 | 76.4 | 3.8 | 77.0 | 76.4 | 0.8 | |||||||||||||
Renaissance and Marriott | 66.9 | 68.3 | (2.1 | ) | 71.6 | 71.3 | 0.5 | ||||||||||||
DoubleTree by Hilton and Hilton | 76.1 | 78.1 | (2.6 | ) | 71.5 | 71.9 | (0.6 | ) | |||||||||||
Sheraton and Westin | 70.0 | 69.0 | 1.5 | 67.7 | 65.8 | 2.9 | |||||||||||||
Fairmont | 85.5 | 81.7 | 4.6 | 75.5 | 62.0 | 21.7 | |||||||||||||
Holiday Inn | 85.3 | 80.9 | 5.5 | 80.7 | 74.1 | 8.9 | |||||||||||||
Morgans and Royalton | 88.8 | 85.6 | 3.7 | 86.4 | 83.2 | 3.9 | |||||||||||||
Comparable core hotels (37) | 77.1 | 75.5 | 2.2 | 74.9 | 73.3 | 2.3 | |||||||||||||
Non-strategic hotels (15) | 77.6 | 73.7 | 5.3 | 76.0 | 73.8 | 2.9 | |||||||||||||
Comparable hotels (52) | 77.3 | 75.0 | 3.0 | 75.2 | 73.4 | 2.4 | |||||||||||||
Wyndham and Wyndham Grand(a) | 68.7 | 81.1 | (15.3 | ) | 67.8 | 78.3 | (13.4 | ) | |||||||||||
Same-store hotels (60) | 76.0 | 75.9 | 0.2 | 74.2 | 74.1 | — | |||||||||||||
ADR ($) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | %Variance | 2013 | 2012 | %Variance | ||||||||||||||
Embassy Suites Hotels | 151.02 | 146.40 | 3.2 | 150.30 | 145.40 | 3.4 | |||||||||||||
Renaissance and Marriott | 191.81 | 171.56 | 11.8 | 209.87 | 194.01 | 8.2 | |||||||||||||
DoubleTree by Hilton and Hilton | 147.65 | 142.08 | 3.9 | 147.72 | 139.02 | 6.3 | |||||||||||||
Sheraton and Westin | 116.63 | 114.61 | 1.8 | 115.95 | 112.28 | 3.3 | |||||||||||||
Fairmont | 290.21 | 275.15 | 5.5 | 280.17 | 281.34 | (0.4 | ) | ||||||||||||
Holiday Inn | 176.59 | 159.36 | 10.8 | 144.64 | 134.56 | 7.5 | |||||||||||||
Morgans and Royalton | 299.78 | 295.74 | 1.4 | 300.11 | 289.76 | 3.6 | |||||||||||||
Comparable core hotels (37) | 162.42 | 154.53 | 5.1 | 160.67 | 152.78 | 5.2 | |||||||||||||
Non-strategic hotels (15) | 121.13 | 120.87 | 0.2 | 120.47 | 119.15 | 1.1 | |||||||||||||
Comparable hotels (52) | 151.66 | 145.89 | 4.0 | 150.15 | 143.95 | 4.3 | |||||||||||||
Wyndham and Wyndham Grand(a) | 140.19 | 149.07 | (6.0 | ) | 142.94 | 146.51 | (2.4 | ) | |||||||||||
Same-store hotels (60) | 150.18 | 146.38 | 2.6 | 149.20 | 144.34 | 3.4 | |||||||||||||
RevPAR ($) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | %Variance | 2013 | 2012 | %Variance | ||||||||||||||
Embassy Suites Hotels | 119.77 | 111.89 | 7.0 | 115.71 | 111.03 | 4.2 | |||||||||||||
Renaissance and Marriott | 128.29 | 117.18 | 9.5 | 150.36 | 138.32 | 8.7 | |||||||||||||
DoubleTree by Hilton and Hilton | 112.41 | 111.00 | 1.3 | 105.65 | 99.99 | 5.7 | |||||||||||||
Sheraton and Westin | 81.65 | 79.09 | 3.2 | 78.53 | 73.91 | 6.3 | |||||||||||||
Fairmont | 248.05 | 224.93 | 10.3 | 211.43 | 174.41 | 21.2 | |||||||||||||
Holiday Inn | 150.64 | 128.85 | 16.9 | 116.76 | 99.75 | 17.0 | |||||||||||||
Morgans and Royalton | 266.15 | 253.11 | 5.2 | 259.43 | 241.05 | 7.6 | |||||||||||||
Comparable core hotels (37) | 125.28 | 116.60 | 7.4 | 120.41 | 111.96 | 7.5 | |||||||||||||
Non-strategic hotels (15) | 94.04 | 89.10 | 5.5 | 91.55 | 87.96 | 4.1 | |||||||||||||
Comparable hotels (52) | 117.18 | 109.42 | 7.1 | 112.94 | 105.70 | 6.9 | |||||||||||||
Wyndham and Wyndham Grand(a) | 96.31 | 120.90 | (20.3 | ) | 96.95 | 114.69 | (15.5 | ) | |||||||||||
Same-store hotels (60) | 114.19 | 111.08 | 2.8 | 110.65 | 107.00 | 3.4 |
Occupancy (%) | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | %Variance | 2013 | 2012 | %Variance | ||||||||||||||||||
San Francisco area | 90.7 | 89.7 | 1.2 | 84.4 | 82.4 | 2.5 | |||||||||||||||||
Los Angeles area | 82.2 | 78.9 | 4.2 | 77.1 | 80.3 | (4.0 | ) | ||||||||||||||||
South Florida | 77.1 | 72.7 | 6.0 | 82.4 | 78.5 | 4.9 | |||||||||||||||||
Boston | 82.1 | 77.6 | 5.8 | 75.1 | 65.7 | 14.2 | |||||||||||||||||
New York area | 82.5 | 78.5 | 5.1 | 79.4 | 76.8 | 3.3 | |||||||||||||||||
Myrtle Beach | 88.6 | 82.1 | 8.0 | 67.3 | 66.5 | 1.2 | |||||||||||||||||
Atlanta | 76.4 | 75.6 | 1.1 | 74.7 | 75.0 | (0.4 | ) | ||||||||||||||||
Philadelphia | 70.4 | 68.3 | 3.2 | 67.5 | 62.6 | 7.9 | |||||||||||||||||
Tampa | 77.6 | 80.7 | (3.8 | ) | 81.0 | 83.7 | (3.1 | ) | |||||||||||||||
Other markets | 68.7 | 68.6 | 0.1 | 70.0 | 69.0 | 1.4 | |||||||||||||||||
Comparable core hotels (37) | 77.1 | 75.5 | 2.2 | 74.9 | 73.3 | 2.3 | |||||||||||||||||
ADR ($) | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | %Variance | 2013 | 2012 | %Variance | ||||||||||||||||||
San Francisco area | 219.88 | 190.07 | 15.7 | 190.42 | 171.84 | 10.8 | |||||||||||||||||
Los Angeles area | 149.50 | 149.88 | (0.3 | ) | 142.91 | 137.77 | 3.7 | ||||||||||||||||
South Florida | 114.98 | 115.28 | (0.3 | ) | 148.76 | 147.52 | 0.8 | ||||||||||||||||
Boston | 241.44 | 230.59 | 4.7 | 231.03 | 225.32 | 2.5 | |||||||||||||||||
New York area | 211.12 | 205.13 | 2.9 | 210.47 | 202.24 | 4.1 | |||||||||||||||||
Myrtle Beach | 174.58 | 174.37 | 0.1 | 158.18 | 153.84 | 2.8 | |||||||||||||||||
Atlanta | 112.49 | 107.82 | 4.3 | 113.12 | 108.54 | 4.2 | |||||||||||||||||
Philadelphia | 155.73 | 157.43 | (1.1 | ) | 165.08 | 163.95 | 0.7 | ||||||||||||||||
Tampa | 155.99 | 151.48 | 3.0 | 185.51 | 178.36 | 4.0 | |||||||||||||||||
Other markets | 133.83 | 131.46 | 1.8 | 140.01 | 134.74 | 3.9 | |||||||||||||||||
Comparable core hotels (37) | 162.42 | 154.53 | 5.1 | 160.67 | 152.78 | 5.2 | |||||||||||||||||
RevPAR ($) | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | %Variance | 2013 | 2012 | %Variance | ||||||||||||||||||
San Francisco area | 199.50 | 170.41 | 17.1 | 160.76 | 141.59 | 13.5 | |||||||||||||||||
Los Angeles area | 122.88 | 118.23 | 3.9 | 110.14 | 110.57 | (0.4 | ) | ||||||||||||||||
South Florida | 88.66 | 83.83 | 5.8 | 122.53 | 115.85 | 5.8 | |||||||||||||||||
Boston | 198.14 | 178.94 | 10.7 | 173.39 | 148.06 | 17.1 | |||||||||||||||||
New York area | 174.14 | 160.99 | 8.2 | 167.08 | 155.35 | 7.6 | |||||||||||||||||
Myrtle Beach | 154.70 | 143.13 | 8.1 | 106.39 | 102.26 | 4.0 | |||||||||||||||||
Atlanta | 85.93 | 81.46 | 5.5 | 84.52 | 81.43 | 3.8 | |||||||||||||||||
Philadelphia | 109.65 | 107.45 | 2.0 | 111.48 | 102.59 | 8.7 | |||||||||||||||||
Tampa | 121.02 | 122.21 | (1.0 | ) | 150.35 | 149.25 | 0.7 | ||||||||||||||||
Other markets | 91.94 | 90.24 | 1.9 | 97.98 | 92.99 | 5.4 | |||||||||||||||||
Comparable core hotels (37) | 125.28 | 116.60 | 7.4 | 120.41 | 111.96 | 7.5 |
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 | 250 | ||||
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 | 117 | ||||
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 | 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 | % | |||||
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 | % | |||||
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 – International 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) | ||||||||||
Jacksonville – Baymeadows | Embassy Suites Hotel | FL | 277 |
(a) | We own 100% of each hotel except where 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 | $ | 1,259 | $ | 300,192 | $ | 3,107 | $ | 11,461 | $ | 2,810 | $ | 1,197,656 | $ | 1,516,485 | $ | 1,534,154 | |||||||||||||||
Average interest rate | 5.77 | % | 9.25 | % | 5.11 | % | 5.61 | % | 4.95 | % | 6.03 | % | 6.66 | % | |||||||||||||||||
Floating-rate: | |||||||||||||||||||||||||||||||
Debt | — | — | — | 137,861 | — | — | 137,861 | $ | 137,861 | ||||||||||||||||||||||
Average interest rate (a) | — | — | — | 5.31 | % | — | — | 5.31 | % | ||||||||||||||||||||||
Total debt | $ | 1,259 | $ | 300,192 | $ | 3,107 | $ | 149,322 | $ | 2,810 | $ | 1,197,656 | $ | 1,654,346 | |||||||||||||||||
Average interest rate | 5.77 | % | 9.25 | % | 5.11 | % | 5.33 | % | 4.95 | % | 6.03 | % | 6.55 | % | |||||||||||||||||
Net discount | (6,181 | ) | |||||||||||||||||||||||||||||
Total debt | $ | 1,648,165 |
(a) | The average floating interest rate considers the implied forward rates in the yield curve at September 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: November 5, 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: November 5, 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: | November 5, 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: | November 5, 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: | November 5, 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: | November 5, 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 |
Income (loss) Per Share/Unit
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2013
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) Per Share/Unit | Loss Per Share/Unit The following tables set forth the computation of basic and diluted income (loss) per share/unit (in thousands, except per share/unit data): FelCor Loss Per Share
FelCor LP Loss Per Unit
Securities that could potentially dilute earnings per share/unit in the future that were not included in the computation of diluted loss per share/unit, because they would have been antidilutive for the periods presented, are as follows (in thousands):
Series A preferred dividends (distributions) that would be excluded from net income (loss) attributable to FelCor common stockholders (or FelCor LP common unitholders), if these preferred shares/units were dilutive, were $6.3 million for the three months ended September 30, 2013 and 2012, and $18.8 million for the nine months ended September 30, 2013 and 2012. In February 2013, our executive officers were granted restricted stock units providing them with the potential to earn up to 1,250,000 common shares, collectively, vesting in three increments over four years, based on total stockholder return relative to a group of 10 lodging REIT peers. The fixed cost of these grants is amortized over the vesting period, and the potential impact of these restricted stock units on our earnings per share, had they been dilutive, was calculated using the treasury stock method. |
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