Date of Report (Date of earliest event reported) | October 30, 2014 |
FelCor Lodging Trust Incorporated | ||
(Exact name of registrant as specified in its charter) | ||
Maryland | 001-14236 | 75-2541756 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
545 E. John Carpenter Frwy., Suite 1300 Irving, Texas | 75062 |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code | (972) 444-4900 |
(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit Number | Description of Exhibit | ||
99.1 | Press release issued by FelCor Lodging Trust Incorporated on October 30, 2014, announcing its results of operations for the three and nine months ended September 30, 2014. |
FELCOR LODGING TRUST INCORPORATED | |||
Date: October 30, 2014 | By: | /s/ Jeffrey D. Symes | |
Name: | Jeffrey D. Symes | ||
Title: | Senior Vice President, Chief Accounting Officer and Controller |
Exhibit Number | Description of Exhibit | ||
99.1 | Press release issued by FelCor Lodging Trust Incorporated on October 30, 2014, announcing its results of operations for the three and nine months ended September 30, 2014. |
545 E. JOHN CARPENTER FREEWAY, SUITE 1300 IRVING, TX 75062 PH: 972-444-4900 F: 972-444-4949 WWW.FELCOR.COM NYSE: FCH |
• | Same-store RevPAR increased 12.3%; RevPAR for comparable core hotels increased 9.8%. |
• | Adjusted FFO per share improved to $0.21, a 50% increase from 2013. |
• | Adjusted EBITDA increased $6.3 million to $61.1 million, and Same-store Adjusted EBITDA increased $10.8 million, or 21.9%, to $60.0 million. |
• | Net income per share was $0.50, a $0.55 improvement from a loss of $0.05 in 2013. |
• | Sold three non-strategic hotels since the second quarter for aggregate gross proceeds of $37 million. Agreed to sell three other hotels (and have received a non-refundable deposit for one of these hotels) for aggregate gross proceeds of $102 million. |
• | Redeemed remaining $234 million of our 10% senior secured notes in August using proceeds from a new $140 million term loan, cash on hand and borrowings under our line of credit. |
Third Quarter | ||||||||||
2014 | 2013 | Change | ||||||||
Comparable hotels (39) | ||||||||||
RevPAR | $ | 135.63 | $ | 124.28 | 9.1 | % | ||||
Total hotel revenue, in millions | $ | 185.6 | $ | 170.2 | 9.0 | % | ||||
Hotel EBITDA, in millions | $ | 51.3 | $ | 43.0 | 19.3 | % | ||||
Hotel EBITDA margin | 27.7 | % | 25.3 | % | 238 bps | |||||
Wyndham Hotels (8) | ||||||||||
RevPAR | $ | 126.31 | $ | 96.31 | 31.1 | % | ||||
Total hotel revenue, in millions | $ | 34.7 | $ | 26.4 | 31.4 | % | ||||
Hotel EBITDA, in millions | $ | 12.3 | $ | 10.0 | 23.4 | % | ||||
Hotel EBITDA margin | 35.6 | % | 37.8 | % | (224) bps | |||||
Same-store hotels (47) | ||||||||||
RevPAR | $ | 133.98 | $ | 119.32 | 12.3 | % | ||||
Total hotel revenue, in millions | $ | 220.3 | $ | 196.6 | 12.1 | % | ||||
Hotel EBITDA, in millions | $ | 63.6 | $ | 53.0 | 20.1 | % | ||||
Hotel EBITDA margin | 28.9 | % | 27.0 | % | 195 bps |
Third Quarter | |||||||||||
$ in millions, except for per share information | 2014 | 2013 | Change | ||||||||
Same-store Adjusted EBITDA | $ | 60.0 | $ | 49.2 | 21.9 | % | |||||
Adjusted EBITDA | $ | 61.1 | $ | 54.8 | 11.5 | % | |||||
Adjusted FFO per share | $ | 0.21 | $ | 0.14 | $ | 0.07 | |||||
Net income (loss) per share | $ | 0.50 | $ | (0.05 | ) | $ | 0.55 |
• | RevPAR for same-store hotels will increase 9.25 - 9.5%, and RevPAR for comparable hotels (which excludes our Wyndham hotels) will increase 8.0 - 8.25%; |
• | Adjusted EBITDA will be $217.5 million - $219.5 million; |
• | Adjusted FFO per share will be $0.60 - $0.62; |
• | Net income attributable to FelCor will be $74.5 million - $76.5 million; and |
• | Interest expense, including our pro rata share from joint ventures, will be $95.5 million. |
Low | High | ||||||
Previous Adjusted EBITDA | $ | 211.5 | $ | 217.5 | |||
Operations | 2.5 | 2.0 | |||||
Updated timing of asset sales | 3.5 | — | |||||
Current Adjusted EBITDA | $ | 217.5 | $ | 219.5 | |||
Hotel dispositions(a) | (28.5 | ) | (28.5 | ) | |||
Core Adjusted EBITDA (39 hotels) | $ | 189.0 | $ | 191.0 |
(a) | EBITDA that is forecasted to be generated by the 20 hotels that we assume will be sold from January 1, 2014 through the actual or assumed dates of sale and the one hotel that we will begin marketing in early 2015. |
Page | ||
Consolidated Statements of Operations(a) | ||
Consolidated Balance Sheets(a) | ||
Consolidated Debt Summary | ||
Schedule of Encumbered Hotels | ||
Capital Expenditures | ||
Hotels Under Renovation During 2014 | ||
Supplemental Financial Data | ||
Hotel Portfolio Composition | ||
Hotel Operating Statistics by Brand | ||
Hotel Operating Statistics by Market | ||
Historical Quarterly Operating Statistics | ||
Non-GAAP Financial Measures |
(a) | Our consolidated statements of operations and balance sheets have been prepared without audit. Certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP have been omitted. The consolidated statements of operations and balance sheets should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent Annual Report on Form 10-K. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenues: | |||||||||||||||
Hotel operating revenue: | |||||||||||||||
Room | $ | 185,969 | $ | 183,657 | $ | 556,036 | $ | 528,491 | |||||||
Food and beverage | 34,287 | 33,118 | 119,543 | 112,222 | |||||||||||
Other operating departments | 12,193 | 12,070 | 36,171 | 35,475 | |||||||||||
Other revenue | 1,607 | 1,584 | 3,170 | 3,034 | |||||||||||
Total revenues | 234,056 | 230,429 | 714,920 | 679,222 | |||||||||||
Expenses: | |||||||||||||||
Hotel departmental expenses: | |||||||||||||||
Room | 48,348 | 47,914 | 145,666 | 140,106 | |||||||||||
Food and beverage | 28,667 | 28,251 | 92,920 | 90,244 | |||||||||||
Other operating departments | 5,716 | 5,585 | 17,296 | 16,776 | |||||||||||
Other property-related costs | 59,441 | 60,497 | 183,931 | 179,955 | |||||||||||
Management and franchise fees | 9,632 | 9,171 | 28,805 | 27,248 | |||||||||||
Taxes, insurance and lease expense | 19,131 | 25,836 | 69,756 | 72,853 | |||||||||||
Corporate expenses | 6,442 | 5,817 | 21,914 | 20,343 | |||||||||||
Depreciation and amortization | 28,523 | 29,820 | 87,206 | 89,473 | |||||||||||
Impairment loss | — | — | — | 24,441 | |||||||||||
Conversion expenses | — | (81 | ) | — | 1,134 | ||||||||||
Other expenses | 9,746 | 2,102 | 13,874 | 6,838 | |||||||||||
Total operating expenses | 215,646 | 214,912 | 661,368 | 669,411 | |||||||||||
Operating income | 18,410 | 15,517 | 53,552 | 9,811 | |||||||||||
Interest expense, net | (21,922 | ) | (25,796 | ) | (71,644 | ) | (78,457 | ) | |||||||
Debt extinguishment | (4,730 | ) | — | (4,763 | ) | — | |||||||||
Gain on sale of investment in unconsolidated entities, net | 30,184 | — | 30,184 | — | |||||||||||
Gain from remeasurement of unconsolidated entities | 20,733 | — | 20,733 | — | |||||||||||
Other gains, net | — | 21 | 100 | 21 | |||||||||||
Income (loss) before equity in income from unconsolidated entities | 42,675 | (10,258 | ) | 28,162 | (68,625 | ) | |||||||||
Equity in income from unconsolidated entities | 1,347 | 2,100 | 4,756 | 4,095 | |||||||||||
Income (loss) from continuing operations | 44,022 | (8,158 | ) | 32,918 | (64,530 | ) | |||||||||
Income (loss) from discontinued operations | (8 | ) | 11,947 | 132 | 18,919 | ||||||||||
Income (loss) before gain on sale of property | 44,014 | 3,789 | 33,050 | (45,611 | ) | ||||||||||
Gain on sale of property, net | 29,556 | — | 50,639 | — | |||||||||||
Net income (loss) | 73,570 | 3,789 | 83,689 | (45,611 | ) | ||||||||||
Net loss (income) attributable to noncontrolling interests in other partnerships | (646 | ) | (591 | ) | (830 | ) | 3,621 | ||||||||
Net loss (income) attributable to redeemable noncontrolling interests in FelCor LP | (185 | ) | 32 | (135 | ) | 352 | |||||||||
Preferred distributions - consolidated joint venture | (348 | ) | — | (870 | ) | — | |||||||||
Net income (loss) attributable to FelCor | 72,391 | 3,230 | 81,854 | (41,638 | ) | ||||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | (29,034 | ) | (29,034 | ) | |||||||
Net income (loss) attributable to FelCor common stockholders | $ | 62,713 | $ | (6,448 | ) | $ | 52,820 | $ | (70,672 | ) | |||||
Basic per common share data: | |||||||||||||||
Income (loss) from continuing operations | $ | 0.50 | $ | (0.14 | ) | $ | 0.42 | $ | (0.72 | ) | |||||
Net income (loss) | $ | 0.50 | $ | (0.05 | ) | $ | 0.43 | $ | (0.57 | ) | |||||
Basic weighted average common shares outstanding | 124,168 | 123,817 | 124,159 | 123,815 | |||||||||||
Diluted per common share data: | |||||||||||||||
Income (loss) from continuing operations | $ | 0.50 | $ | (0.14 | ) | $ | 0.42 | $ | (0.72 | ) | |||||
Net income (loss) | $ | 0.50 | $ | (0.05 | ) | $ | 0.42 | $ | (0.57 | ) | |||||
Diluted weighted average common shares outstanding | 125,526 | 123,817 | 125,289 | 123,815 |
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $871,685 and $929,801 at September 30, 2014 and December 31, 2013, respectively | $ | 1,657,551 | $ | 1,653,267 | |||
Hotel development | 278,619 | 216,747 | |||||
Investment in unconsolidated entities | 17,741 | 46,943 | |||||
Hotels held for sale | 26,690 | 16,319 | |||||
Cash and cash equivalents | 60,110 | 45,645 | |||||
Restricted cash | 34,263 | 77,227 | |||||
Accounts receivable, net of allowance for doubtful accounts of $226 and $262 at September 30, 2014 and December 31, 2013, respectively | 34,696 | 35,747 | |||||
Deferred expenses, net of accumulated amortization of $15,415 and $20,362 at September 30, 2014 and December 31, 2013, respectively | 27,353 | 29,325 | |||||
Other assets | 22,924 | 23,060 | |||||
Total assets | $ | 2,159,947 | $ | 2,144,280 | |||
Liabilities and Equity | |||||||
Debt, net of discount of $4,714 at December 31, 2013 | $ | 1,621,644 | $ | 1,663,226 | |||
Distributions payable | 11,263 | 11,047 | |||||
Accrued expenses and other liabilities | 151,915 | 150,738 | |||||
Total liabilities | 1,784,822 | 1,825,011 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests in FelCor LP, 611 and 618 units issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 5,723 | 5,039 | |||||
Equity: | |||||||
Preferred stock, $0.01 par value, 20,000 shares authorized: | |||||||
Series A Cumulative Convertible Preferred Stock, 12,880 shares, liquidation value of $322,004 and $322,011, issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 309,354 | 309,362 | |||||
Series C Cumulative Redeemable Preferred Stock, 68 shares, liquidation value of $169,950, issued and outstanding at September 30, 2014 and December 31, 2013 | 169,412 | 169,412 | |||||
Common stock, $0.01 par value, 200,000 shares authorized; 124,289 and 124,051 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 1,243 | 1,240 | |||||
Additional paid-in capital | 2,353,304 | 2,354,328 | |||||
Accumulated other comprehensive income | — | 24,937 | |||||
Accumulated deficit | (2,524,017 | ) | (2,568,350 | ) | |||
Total FelCor stockholders’ equity | 309,296 | 290,929 | |||||
Noncontrolling interests in other partnerships | 18,663 | 23,301 | |||||
Preferred equity in consolidated joint venture, liquidation value of $42,067 | 41,443 | — | |||||
Total equity | 369,402 | 314,230 | |||||
Total liabilities and equity | $ | 2,159,947 | $ | 2,144,280 |
Encumbered Hotels | Interest Rate (%) | Maturity Date | September 30, 2014 | December 31, 2013 | |||||||||||||
Line of credit | 8 | LIBOR + 3.375 | June 2016(a) | $ | 146,500 | $ | 88,000 | ||||||||||
Term loan | 3 | LIBOR + 2.50 | July 2017 | 140,000 | — | ||||||||||||
Mortgage debt | 4 | LIBOR + 3.00 | March 2017 | 64,000 | — | ||||||||||||
Mortgage debt(b) | 4 | 4.95 | October 2022 | 124,930 | 126,220 | ||||||||||||
Mortgage debt | 1 | 4.94 | October 2022 | 31,353 | 31,714 | ||||||||||||
Senior secured notes | 6 | 6.75 | June 2019 | 525,000 | 525,000 | ||||||||||||
Senior secured notes | 9 | 5.625 | March 2023 | 525,000 | 525,000 | ||||||||||||
Knickerbocker loan:(c) | |||||||||||||||||
Construction tranche | — | LIBOR + 4.00 | May 2016 | 44,577 | — | ||||||||||||
Cash collateralized tranche | — | LIBOR + 1.25 | May 2016 | 20,284 | 64,861 | ||||||||||||
Retired debt | — | — | — | — | 302,431 | ||||||||||||
Total | 35 | $ | 1,621,644 | $ | 1,663,226 |
(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 single hotel. |
(c) | In November 2012, we obtained an $85.0 million construction loan to finance the redevelopment of the Knickerbocker Hotel. This loan can be extended for one year subject to satisfying certain conditions. In 2014, we drew $44.6 million of the cash collateral to fund construction costs, leaving $20.3 million of cash collateral to be drawn before drawing on the remaining $20.1 million available under the construction loan. |
Consolidated | September 30, 2014 | |||||||
Debt | Balance | Encumbered Hotels | ||||||
Line of credit | $ | 147 | Charleston Mills House - WYN, Houston Medical Center - WYN, Mandalay Beach - ES, Miami International Airport - ES, Myrtle Beach Resort - ES, Philadelphia Historic District - WYN, Pittsburgh University Center - WYN and Santa Monica at the Pier - WYN | |||||
Term loan | $ | 140 | New Orleans French Quarter - WYN, Phoenix Biltmore - ES, and San Francisco Union Square - MAR | |||||
Mortgage debt | $ | 64 | Austin Airport - ES, Chicago Lombard - ES, Raleigh - ES, and San Antonio NW - ES | |||||
Mortgage debt | $ | 28 | Napa Valley - ES | |||||
Mortgage debt | $ | 35 | Ft. Lauderdale - ES | |||||
Mortgage debt | $ | 24 | Birmingham - ES | |||||
Mortgage debt | $ | 38 | Minneapolis Airport - ES | |||||
Mortgage debt | $ | 31 | Deerfield Beach - ES | |||||
Senior secured notes (6.75%) | $ | 525 | Boston Copley - FMT, Indian Wells Esmeralda Resort & Spa - REN, LAX South - ES, Morgans, Royalton and St. Petersburg Vinoy Resort & Golf Club - REN | |||||
Senior secured notes (5.625%) | $ | 525 | Atlanta Buckhead - ES, Boston Marlboro - ES, Burlington - SH, Dallas Love Field - ES, Milpitas - ES, Myrtle Beach Resort - HIL, Orlando South - ES, Philadelphia Society Hill - SH and SF South San Francisco - ES |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Improvements and additions to majority-owned hotels | $ | 17,515 | $ | 27,433 | $ | 65,547 | $ | 74,456 | |||||||
Partners’ pro rata share of additions to consolidated joint venture hotels | (21 | ) | (126 | ) | (280 | ) | (434 | ) | |||||||
Pro rata share of additions to unconsolidated hotels | 480 | 299 | 1,884 | 1,101 | |||||||||||
Total additions to hotels(a) | $ | 17,974 | $ | 27,606 | $ | 67,151 | $ | 75,123 |
(a) | Includes capitalized interest, property taxes, property insurance, ground leases and certain employee costs. |
Primary Areas | Start Date | End Date | ||||
Burlington - SH | guestrooms, exterior | Nov-2013 | May-2014 | |||
San Francisco Fisherman’s Wharf - HI | guestrooms, public areas, F&B | Nov-2013 | Mar-2014 | |||
San Diego - WYN(a) | guestrooms, public areas | Nov-2013 | May-2014 | |||
San Francisco Waterfront-ES(b) | guestrooms, F&B | Dec-2013 | Jul-2014 | |||
LAX- ES(c) | public areas, F&B | Feb-2014 | May-2014 | |||
New Orleans - WYN(a) | guestrooms, public areas | May-2014 | Oct-2014 | |||
Dallas Love Field - ES | guestrooms, F&B | Jun-2014 | Sep-2014 | |||
Nashville - HI | public areas, F&B | Aug-2014 | Dec-2014 | |||
Ft. Lauderdale - ES(d) | guestrooms | July-2014 | Oct-2014 |
(a) | Repositioning from Holiday Inn to Wyndham. |
(b) | Public areas renovation completed in May 2013. |
(c) | Guestrooms renovation completed in February 2013. |
(d) | Public areas renovation completed in November 2013. |
September 30, | December 31, | |||||||
Total Enterprise Value | 2014 | 2013 | ||||||
Common shares outstanding | 124,289 | 124,051 | ||||||
Units outstanding | 611 | 618 | ||||||
Combined shares and units outstanding | 124,900 | 124,669 | ||||||
Common stock price | $ | 9.36 | $ | 8.16 | ||||
Market capitalization | $ | 1,169,064 | $ | 1,017,299 | ||||
Series A preferred stock(a) | 309,354 | 309,362 | ||||||
Series C preferred stock(a) | 169,412 | 169,412 | ||||||
Preferred equity - Knickerbocker joint venture, net(b) | 39,371 | — | ||||||
Consolidated debt(b) | 1,621,644 | 1,663,226 | ||||||
Noncontrolling interests of consolidated debt | (2,229 | ) | (2,719 | ) | ||||
Pro rata share of unconsolidated debt | 17,236 | 73,179 | ||||||
Hotel development | (278,619 | ) | (216,747 | ) | ||||
Cash, cash equivalents and restricted cash(c) | (94,373 | ) | (122,872 | ) | ||||
Total enterprise value (TEV) | $ | 2,950,860 | $ | 2,890,140 |
(a) | Book value based on issue price. |
(b) | Book value based on issue price, net of noncontrolling interest. |
(c) | Restricted cash includes $20.3 million of cash fully securing $20.3 million of outstanding debt assumed when we purchased the Knickerbocker Hotel. |
Brand | Hotels | Rooms | 2013 Hotel Operating Revenue (in thousands) | 2013 Hotel EBITDA (in thousands)(a) | ||||||||||||||
Embassy Suites Hotels | 18 | 4,982 | $ | 255,746 | $ | 81,008 | ||||||||||||
Wyndham and Wyndham Grand(b) | 8 | 2,528 | 103,932 | 35,028 | ||||||||||||||
Renaissance and Marriott | 3 | 1,321 | 119,839 | 21,328 | ||||||||||||||
DoubleTree by Hilton and Hilton | 3 | 802 | 41,106 | 12,613 | ||||||||||||||
Sheraton and Westin | 2 | 673 | 37,996 | 10,167 | ||||||||||||||
Fairmont | 1 | 383 | 49,104 | 7,839 | ||||||||||||||
Holiday Inn | 2 | 968 | 46,403 | 6,402 | ||||||||||||||
Morgans and Royalton | 2 | 285 | 34,341 | 3,512 | ||||||||||||||
Core hotels | 39 | 11,942 | 688,467 | 177,897 | ||||||||||||||
Non-strategic hotels(c) | 8 | 2,322 | 81,804 | 22,310 | ||||||||||||||
Same-store hotels | 47 | 14,264 | $ | 770,271 | $ | 200,207 | ||||||||||||
Market | ||||||||||||||||||
San Francisco area | 5 | 1,903 | $ | 124,826 | $ | 31,567 | ||||||||||||
Boston | 3 | 916 | 76,510 | 17,783 | ||||||||||||||
South Florida | 3 | 923 | 50,011 | 14,296 | ||||||||||||||
Los Angeles area | 2 | 481 | 23,760 | 10,444 | ||||||||||||||
Myrtle Beach | 2 | 640 | 37,956 | 10,113 | ||||||||||||||
Philadelphia | 2 | 728 | 34,271 | 7,563 | ||||||||||||||
Tampa | 1 | 361 | 46,423 | 7,430 | ||||||||||||||
New York area | 3 | 546 | 48,046 | 6,756 | ||||||||||||||
Austin | 1 | 188 | 13,126 | 5,677 | ||||||||||||||
Atlanta | 1 | 316 | 14,016 | 5,487 | ||||||||||||||
Other markets | 16 | 4,940 | 219,522 | 60,781 | ||||||||||||||
Core hotels | 39 | 11,942 | 688,467 | 177,897 | ||||||||||||||
Non-strategic hotels(c) | 8 | 2,322 | 81,804 | 22,310 | ||||||||||||||
Same-store hotels | 47 | 14,264 | $ | 770,271 | $ | 200,207 | ||||||||||||
Location | ||||||||||||||||||
Urban | 17 | 5,310 | $ | 323,306 | $ | 81,303 | ||||||||||||
Resort | 9 | 2,733 | 185,266 | 41,267 | ||||||||||||||
Airport | 8 | 2,621 | 122,735 | 37,339 | ||||||||||||||
Suburban | 5 | 1,278 | 57,160 | 17,988 | ||||||||||||||
Core hotels | 39 | 11,942 | 688,467 | 177,897 | ||||||||||||||
Non-strategic hotels(c) | 8 | 2,322 | 81,804 | 22,310 | ||||||||||||||
Same-store hotels | 47 | 14,264 | $ | 770,271 | $ | 200,207 |
(a) | Hotel EBITDA is more fully described on page 26. |
(b) | These hotels were converted to Wyndham on March 1, 2013. |
(c) | Excludes two hotels held for sale as of September 30, 2014 (one sold in early October and one is expected to sell today). |
Occupancy (%) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | %Variance | 2014 | 2013 | %Variance | ||||||||||||||
Embassy Suites Hotels | 81.5 | 80.7 | 1.0 | 80.0 | 77.9 | 2.8 | |||||||||||||
Renaissance and Marriott | 70.0 | 66.9 | 4.7 | 74.0 | 71.6 | 3.2 | |||||||||||||
DoubleTree by Hilton and Hilton | 81.9 | 76.2 | 7.5 | 76.4 | 71.3 | 7.2 | |||||||||||||
Sheraton and Westin | 79.1 | 75.2 | 5.1 | 70.4 | 69.7 | 1.1 | |||||||||||||
Fairmont | 85.0 | 85.5 | (0.6 | ) | 75.9 | 75.5 | 0.6 | ||||||||||||
Holiday Inn | 86.5 | 85.3 | 1.3 | 78.8 | 80.7 | (2.4 | ) | ||||||||||||
Morgans and Royalton | 89.8 | 88.8 | 1.1 | 86.8 | 86.4 | 0.4 | |||||||||||||
Comparable core hotels (31) | 80.6 | 78.9 | 2.2 | 78.1 | 76.3 | 2.3 | |||||||||||||
Non-strategic hotels (8)(a) | 72.0 | 71.7 | 0.4 | 73.9 | 73.4 | 0.7 | |||||||||||||
Comparable hotels (39) | 78.9 | 77.5 | 1.9 | 77.3 | 75.7 | 2.0 | |||||||||||||
Wyndham and Wyndham Grand(b) | 78.9 | 68.7 | 14.8 | 73.1 | 67.8 | 7.8 | |||||||||||||
Same-store hotels (47) | 78.9 | 75.9 | 4.0 | 76.5 | 74.3 | 3.0 | |||||||||||||
ADR ($) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | %Variance | 2014 | 2013 | %Variance | ||||||||||||||
Embassy Suites Hotels | 167.65 | 154.63 | 8.4 | 165.46 | 154.09 | 7.4 | |||||||||||||
Renaissance and Marriott | 207.35 | 191.81 | 8.1 | 224.11 | 209.87 | 6.8 | |||||||||||||
DoubleTree by Hilton and Hilton | 155.89 | 148.69 | 4.8 | 157.57 | 151.80 | 3.8 | |||||||||||||
Sheraton and Westin | 153.46 | 146.73 | 4.6 | 146.57 | 145.40 | 0.8 | |||||||||||||
Fairmont | 319.97 | 290.21 | 10.3 | 303.03 | 280.17 | 8.2 | |||||||||||||
Holiday Inn | 192.61 | 176.59 | 9.1 | 164.50 | 144.64 | 13.7 | |||||||||||||
Morgans and Royalton | 294.02 | 299.78 | (1.9 | ) | 296.60 | 300.11 | (1.2 | ) | |||||||||||
Comparable core hotels (31) | 184.02 | 171.37 | 7.4 | 181.13 | 169.76 | 6.7 | |||||||||||||
Non-strategic hotels (8)(a) | 116.62 | 111.79 | 4.3 | 118.44 | 113.75 | 4.1 | |||||||||||||
Comparable hotels (39) | 171.86 | 160.45 | 7.1 | 169.26 | 159.03 | 6.4 | |||||||||||||
Wyndham and Wyndham Grand(b) | 160.19 | 140.19 | 14.3 | 157.44 | 142.94 | 10.1 | |||||||||||||
Same-store hotels (47) | 169.79 | 157.20 | 8.0 | 167.26 | 156.42 | 6.9 | |||||||||||||
RevPAR ($) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | %Variance | 2014 | 2013 | %Variance | ||||||||||||||
Embassy Suites Hotels | 136.57 | 124.74 | 9.5 | 132.36 | 119.97 | 10.3 | |||||||||||||
Renaissance and Marriott | 145.21 | 128.29 | 13.2 | 165.75 | 150.36 | 10.2 | |||||||||||||
DoubleTree by Hilton and Hilton | 127.71 | 113.28 | 12.7 | 120.46 | 108.29 | 11.2 | |||||||||||||
Sheraton and Westin | 121.31 | 110.33 | 10.0 | 103.23 | 101.30 | 1.9 | |||||||||||||
Fairmont | 271.87 | 248.05 | 9.6 | 230.03 | 211.43 | 8.8 | |||||||||||||
Holiday Inn | 166.52 | 150.64 | 10.5 | 129.55 | 116.76 | 11.0 | |||||||||||||
Morgans and Royalton | 264.03 | 266.15 | (0.8 | ) | 257.33 | 259.43 | (0.8 | ) | |||||||||||
Comparable core hotels (31) | 148.38 | 135.17 | 9.8 | 141.42 | 129.51 | 9.2 | |||||||||||||
Non-strategic hotels (8)(a) | 83.95 | 80.15 | 4.7 | 87.57 | 83.49 | 4.9 | |||||||||||||
Comparable hotels (39) | 135.63 | 124.28 | 9.1 | 130.76 | 120.42 | 8.6 | |||||||||||||
Wyndham and Wyndham Grand(b) | 126.31 | 96.31 | 31.1 | 115.10 | 96.95 | 18.7 | |||||||||||||
Same-store hotels (47) | 133.98 | 119.32 | 12.3 | 127.99 | 116.25 | 10.1 |
(a) | Excludes two hotels held for sale as of September 30, 2014 (one sold in early October and one is expected to sell today). |
(b) | These hotels were converted to Wyndham on March 1, 2013. |
Occupancy (%) | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | %Variance | 2014 | 2013 | %Variance | ||||||||||||||||||
San Francisco area | 90.4 | 89.3 | 1.2 | 82.6 | 83.4 | (1.0 | ) | ||||||||||||||||
Boston | 82.3 | 82.1 | 0.3 | 75.5 | 75.1 | 0.6 | |||||||||||||||||
South Florida | 76.4 | 77.1 | (0.9 | ) | 84.1 | 82.4 | 2.1 | ||||||||||||||||
Los Angeles area | 84.9 | 88.1 | (3.7 | ) | 84.2 | 84.1 | 0.1 | ||||||||||||||||
Myrtle Beach | 87.9 | 88.6 | (0.8 | ) | 70.8 | 67.3 | 5.2 | ||||||||||||||||
Philadelphia | 79.0 | 70.4 | 12.3 | 72.5 | 67.5 | 7.3 | |||||||||||||||||
Tampa | 74.2 | 77.6 | (4.4 | ) | 81.7 | 81.0 | 0.8 | ||||||||||||||||
New York area | 86.9 | 85.7 | 1.3 | 82.2 | 82.3 | (0.1 | ) | ||||||||||||||||
Austin | 80.8 | 75.2 | 7.5 | 80.5 | 80.8 | (0.5 | ) | ||||||||||||||||
Atlanta | 82.1 | 81.5 | 0.6 | 78.2 | 76.1 | 2.7 | |||||||||||||||||
Other markets | 73.5 | 69.6 | 5.7 | 74.4 | 70.7 | 5.1 | |||||||||||||||||
Comparable core hotels (31) | 80.6 | 78.9 | 2.2 | 78.1 | 76.3 | 2.3 | |||||||||||||||||
ADR ($) | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | %Variance | 2014 | 2013 | %Variance | ||||||||||||||||||
San Francisco area | 235.29 | 211.50 | 11.2 | 210.81 | 185.99 | 13.3 | |||||||||||||||||
Boston | 265.29 | 241.44 | 9.9 | 249.56 | 231.03 | 8.0 | |||||||||||||||||
South Florida | 123.87 | 114.98 | 7.7 | 161.23 | 148.76 | 8.4 | |||||||||||||||||
Los Angeles area | 154.92 | 141.13 | 9.8 | 146.24 | 138.56 | 5.5 | |||||||||||||||||
Myrtle Beach | 185.24 | 174.58 | 6.1 | 163.72 | 158.18 | 3.5 | |||||||||||||||||
Philadelphia | 160.08 | 155.73 | 2.8 | 161.55 | 165.08 | (2.1 | ) | ||||||||||||||||
Tampa | 167.93 | 155.99 | 7.7 | 197.24 | 185.51 | 6.3 | |||||||||||||||||
New York area | 243.04 | 241.38 | 0.7 | 246.95 | 241.34 | 2.3 | |||||||||||||||||
Austin | 194.77 | 175.49 | 11.0 | 212.08 | 196.85 | 7.7 | |||||||||||||||||
Atlanta | 141.70 | 139.99 | 1.2 | 143.17 | 142.27 | 0.6 | |||||||||||||||||
Other markets | 147.52 | 138.87 | 6.2 | 152.20 | 144.77 | 5.1 | |||||||||||||||||
Comparable core hotels (31) | 184.02 | 171.37 | 7.4 | 181.13 | 169.76 | 6.7 | |||||||||||||||||
RevPAR ($) | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | %Variance | 2014 | 2013 | %Variance | ||||||||||||||||||
San Francisco area | 212.62 | 188.94 | 12.5 | 174.03 | 155.04 | 12.3 | |||||||||||||||||
Boston | 218.33 | 198.14 | 10.2 | 188.38 | 173.39 | 8.6 | |||||||||||||||||
South Florida | 94.67 | 88.66 | 6.8 | 135.60 | 122.53 | 10.7 | |||||||||||||||||
Los Angeles area | 131.52 | 124.38 | 5.7 | 123.10 | 116.50 | 5.7 | |||||||||||||||||
Myrtle Beach | 162.89 | 154.70 | 5.3 | 115.85 | 106.39 | 8.9 | |||||||||||||||||
Philadelphia | 126.54 | 109.65 | 15.4 | 117.05 | 111.48 | 5.0 | |||||||||||||||||
Tampa | 124.61 | 121.02 | 3.0 | 161.08 | 150.35 | 7.1 | |||||||||||||||||
New York area | 211.13 | 206.90 | 2.0 | 203.05 | 198.69 | 2.2 | |||||||||||||||||
Austin | 157.41 | 131.96 | 19.3 | 170.64 | 159.14 | 7.2 | |||||||||||||||||
Atlanta | 116.29 | 114.16 | 1.9 | 111.95 | 108.27 | 3.4 | |||||||||||||||||
Other markets | 108.48 | 96.59 | 12.3 | 113.16 | 102.40 | 10.5 | |||||||||||||||||
Comparable core hotels (31) | 148.38 | 135.17 | 9.8 | 141.42 | 129.51 | 9.2 |
Occupancy (%) | |||||||||||||
Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | ||||||||||
Comparable core hotels (31) | 70.4 | 72.2 | 81.3 | 80.6 | |||||||||
Non-strategic hotels (8)(a) | 68.3 | 72.9 | 77.0 | 72.0 | |||||||||
Comparable hotels (39) | 70.0 | 72.3 | 80.4 | 78.9 | |||||||||
Wyndham and Wyndham Grand (8)(b) | 59.1 | 62.9 | 77.4 | 78.9 | |||||||||
Same-store hotels (47) | 68.1 | 70.7 | 79.9 | 78.9 | |||||||||
ADR ($) | |||||||||||||
Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | ||||||||||
Comparable core hotels (31) | 170.40 | 176.24 | 182.53 | 184.02 | |||||||||
Non-strategic hotels (8)(a) | 111.95 | 120.44 | 118.30 | 116.62 | |||||||||
Comparable hotels (39) | 159.11 | 165.12 | 170.37 | 171.86 | |||||||||
Wyndham and Wyndham Grand (8)(b) | 149.34 | 144.62 | 164.91 | 160.19 | |||||||||
Same-store hotels (47) | 157.62 | 161.89 | 169.43 | 169.79 | |||||||||
RevPAR ($) | |||||||||||||
Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | ||||||||||
Comparable core hotels (31) | 120.03 | 127.25 | 148.39 | 148.38 | |||||||||
Non-strategic hotels (8)(a) | 76.51 | 87.75 | 91.04 | 83.95 | |||||||||
Comparable hotels (39) | 111.42 | 119.44 | 137.04 | 135.63 | |||||||||
Wyndham and Wyndham Grand (8)(b) | 88.30 | 90.99 | 127.59 | 126.31 | |||||||||
Same-store hotels (47) | 107.37 | 114.40 | 135.37 | 133.98 |
(a) | Excludes two hotels held for sale as of September 30, 2014 (one sold in early October and one is expected to sell today). |
(b) | These hotels were converted to Wyndham on March 1, 2013. |
Three Months Ended September 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net income | $ | 73,570 | $ | 3,789 | |||||||||||||||||
Noncontrolling interests | (831 | ) | (559 | ) | |||||||||||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | |||||||||||||||||
Preferred distributions - consolidated joint venture | (348 | ) | — | ||||||||||||||||||
Net income (loss) attributable to FelCor common stockholders | 62,713 | (6,448 | ) | ||||||||||||||||||
Less: Dividends declared on unvested restricted stock | (2 | ) | — | ||||||||||||||||||
Less: Undistributed earnings allocated to unvested restricted stock | (48 | ) | — | ||||||||||||||||||
Basic earnings per share data | 62,663 | 124,168 | $ | 0.50 | (6,448 | ) | 123,817 | $ | (0.05 | ) | |||||||||||
Restricted stock units | — | 1,358 | — | — | — | — | |||||||||||||||
Diluted earnings per share data | 62,663 | 125,526 | 0.50 | (6,448 | ) | 123,817 | (0.05 | ) | |||||||||||||
Depreciation and amortization | 28,523 | — | 0.23 | 29,820 | — | 0.24 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 1,021 | — | 0.01 | 3,765 | — | 0.03 | |||||||||||||||
Gain on sale of hotels, net of noncontrolling interests in other partnerships | (28,410 | ) | — | (0.23 | ) | (10,958 | ) | — | (0.09 | ) | |||||||||||
Gain on sale of investment in unconsolidated entities, net | (30,184 | ) | — | (0.24 | ) | — | — | — | |||||||||||||
Gain from remeasurement of unconsolidated entities | (20,733 | ) | — | (0.17 | ) | — | — | — | |||||||||||||
Other gains, net | — | — | — | (21 | ) | — | — | ||||||||||||||
Other gains, discontinued operations | — | — | — | (57 | ) | — | — | ||||||||||||||
Noncontrolling interests in FelCor LP | 185 | 613 | — | (32 | ) | 618 | — | ||||||||||||||
Dividends declared on unvested restricted stock | 2 | — | — | — | — | — | |||||||||||||||
Undistributed earnings allocated to unvested restricted stock | 48 | — | — | — | — | — | |||||||||||||||
Conversion of unvested restricted stock and units | — | 26 | — | — | 983 | — | |||||||||||||||
FFO | 13,115 | 126,165 | 0.10 | 16,069 | 125,418 | 0.13 | |||||||||||||||
Debt extinguishment | 4,566 | — | 0.04 | — | — | — | |||||||||||||||
Debt extinguishment, unconsolidated entities | 155 | — | — | — | — | — | |||||||||||||||
Contract dispute contingency | 5,850 | — | 0.05 | — | — | — | |||||||||||||||
Severance costs | 426 | — | — | 106 | — | — | |||||||||||||||
Conversion expenses | — | — | — | (81 | ) | — | — | ||||||||||||||
Variable stock compensation | 201 | — | — | 151 | — | — | |||||||||||||||
Pre-opening costs, net of noncontrolling interests | 2,346 | — | 0.02 | 814 | — | 0.01 | |||||||||||||||
Adjusted FFO | $ | 26,659 | 126,165 | $ | 0.21 | $ | 17,059 | 125,418 | $ | 0.14 |
Nine Months Ended September 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net income (loss) | $ | 83,689 | $ | (45,611 | ) | ||||||||||||||||
Noncontrolling interests | (965 | ) | 3,973 | ||||||||||||||||||
Preferred distributions - consolidated joint venture | (870 | ) | — | ||||||||||||||||||
Preferred dividends | (29,034 | ) | (29,034 | ) | |||||||||||||||||
Net income (loss) attributable to FelCor common stockholders | 52,820 | (70,672 | ) | ||||||||||||||||||
Less: Dividends declared on unvested restricted stock | (5 | ) | — | ||||||||||||||||||
Less: Undistributed earnings allocated to unvested restricted stock | (18 | ) | — | ||||||||||||||||||
Basic earnings per share data | 52,797 | 124,159 | $ | 0.43 | (70,672 | ) | 123,815 | $ | (0.57 | ) | |||||||||||
Restricted stock units | — | 1,130 | (0.01 | ) | — | — | — | ||||||||||||||
Diluted earnings per share data | 52,797 | 125,289 | 0.42 | (70,672 | ) | 123,815 | (0.57 | ) | |||||||||||||
Depreciation and amortization | 87,206 | — | 0.70 | 89,473 | — | 0.73 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 6,395 | — | 0.05 | 12,734 | — | 0.10 | |||||||||||||||
Gain on sale of investment in unconsolidated entities, net | (30,184 | ) | — | (0.24 | ) | — | — | — | |||||||||||||
Gain from remeasurement of unconsolidated entities | (20,733 | ) | — | (0.17 | ) | — | — | — | |||||||||||||
Other gains, net | (100 | ) | — | — | (21 | ) | — | — | |||||||||||||
Other gains, discontinued operations | — | — | — | (57 | ) | — | — | ||||||||||||||
Impairment loss, net of noncontrolling interests in other partnerships | — | — | — | 20,382 | — | 0.16 | |||||||||||||||
Impairment loss, discontinued operations | — | — | — | 3,265 | — | 0.03 | |||||||||||||||
Gain on sale of hotels, net of noncontrolling interests in other partnerships | (49,771 | ) | — | (0.40 | ) | (18,217 | ) | — | (0.15 | ) | |||||||||||
Noncontrolling interests in FelCor LP | 135 | 615 | — | (352 | ) | 620 | (0.01 | ) | |||||||||||||
Dividends declared on unvested restricted stock | 5 | — | — | — | — | — | |||||||||||||||
Conversion of unvested restricted stock and units | 18 | 12 | — | — | 672 | — | |||||||||||||||
FFO | 45,768 | 125,916 | 0.36 | 36,535 | 125,107 | 0.29 | |||||||||||||||
Acquisition costs | — | — | — | 23 | — | — | |||||||||||||||
Debt extinguishment, including discontinued operations | 4,843 | — | 0.04 | — | — | — | |||||||||||||||
Debt extinguishment, unconsolidated entities | 155 | — | — | — | — | — | |||||||||||||||
Contract dispute contingency | 5,850 | — | 0.05 | — | — | — | |||||||||||||||
Severance costs | 829 | — | 0.01 | 2,896 | — | 0.02 | |||||||||||||||
Conversion expenses | — | — | — | 1,134 | — | 0.01 | |||||||||||||||
Variable stock compensation | 1,620 | — | 0.01 | 374 | — | — | |||||||||||||||
Pre-opening costs, net of noncontrolling interests | 4,605 | — | 0.04 | 1,376 | — | 0.02 | |||||||||||||||
Adjusted FFO | $ | 63,670 | 125,916 | $ | 0.51 | $ | 42,338 | 125,107 | $ | 0.34 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income (loss) | $ | 73,570 | $ | 3,789 | $ | 83,689 | $ | (45,611 | ) | ||||||
Depreciation and amortization | 28,523 | 29,820 | 87,206 | 89,473 | |||||||||||
Depreciation, discontinued operations and unconsolidated entities | 1,021 | 3,765 | 6,395 | 12,734 | |||||||||||
Interest expense | 21,935 | 25,811 | 71,685 | 78,517 | |||||||||||
Interest expense, discontinued operations and unconsolidated entities | 290 | 881 | 1,681 | 2,628 | |||||||||||
Noncontrolling interests in other partnerships | (646 | ) | (591 | ) | (830 | ) | 3,621 | ||||||||
EBITDA | 124,693 | 63,475 | 249,826 | 141,362 | |||||||||||
Impairment loss, net of noncontrolling interests in other partnerships | — | — | — | 20,382 | |||||||||||
Impairment loss, discontinued operations | — | — | — | 3,265 | |||||||||||
Debt extinguishment, including discontinued operations | 4,566 | — | 4,843 | — | |||||||||||
Debt extinguishment, unconsolidated entities | 155 | — | 155 | — | |||||||||||
Acquisition costs | — | — | — | 23 | |||||||||||
Gain on sale of hotels, net of noncontrolling interests in other partnerships | (28,410 | ) | (10,958 | ) | (49,771 | ) | (18,217 | ) | |||||||
Gain on sale of investment in unconsolidated entities, net | (30,184 | ) | — | (30,184 | ) | — | |||||||||
Gain from remeasurement of unconsolidated entities | (20,733 | ) | — | (20,733 | ) | — | |||||||||
Other gains, net | — | (21 | ) | (100 | ) | (21 | ) | ||||||||
Other gains, discontinued operations | — | (57 | ) | — | (57 | ) | |||||||||
Contract dispute contingency | 5,850 | — | 5,850 | — | |||||||||||
Amortization of fixed stock and directors’ compensation | 2,198 | 1,397 | 4,490 | 4,547 | |||||||||||
Severance costs | 426 | 106 | 829 | 2,896 | |||||||||||
Conversion expenses | — | (81 | ) | — | 1,134 | ||||||||||
Variable stock compensation | 201 | 151 | 1,620 | 374 | |||||||||||
Pre-opening costs, net of noncontrolling interests | 2,346 | 814 | 4,605 | 1,376 | |||||||||||
Adjusted EBITDA | 61,108 | 54,826 | 171,430 | 157,064 | |||||||||||
Adjusted EBITDA from hotels, sold and held for sale | (1,090 | ) | (4,891 | ) | (6,445 | ) | (18,230 | ) | |||||||
Adjusted EBITDA from joint venture exchange | (43 | ) | (741 | ) | 212 | (330 | ) | ||||||||
Same-store Adjusted EBITDA | $ | 59,975 | $ | 49,194 | $ | 165,197 | $ | 138,504 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Same-store operating revenue: | |||||||||||||||
Room | $ | 175,823 | $ | 156,479 | $ | 498,380 | $ | 453,306 | |||||||
Food and beverage | 32,543 | 29,047 | 109,118 | 98,946 | |||||||||||
Other operating departments | 11,858 | 11,072 | 34,160 | 32,603 | |||||||||||
Same-store operating revenue | 220,224 | 196,598 | 641,658 | 584,855 | |||||||||||
Same-store operating expense: | |||||||||||||||
Room | 45,251 | 40,765 | 129,527 | 119,794 | |||||||||||
Food and beverage | 27,093 | 24,967 | 84,560 | 80,072 | |||||||||||
Other operating departments | 5,527 | 5,112 | 16,267 | 15,388 | |||||||||||
Other property related costs | 55,403 | 50,976 | 162,315 | 152,606 | |||||||||||
Management and franchise fees | 9,122 | 7,646 | 25,651 | 23,006 | |||||||||||
Taxes, insurance and lease expense | 14,182 | 14,142 | 41,639 | 39,927 | |||||||||||
Same-store operating expense | 156,578 | 143,608 | 459,959 | 430,793 | |||||||||||
Hotel EBITDA | $ | 63,646 | $ | 52,990 | $ | 181,699 | $ | 154,062 | |||||||
Hotel EBITDA Margin | 28.9 | % | 27.0 | % | 28.3 | % | 26.3 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Hotel EBITDA - Comparable core (31) | $ | 45,936 | $ | 37,825 | $ | 130,530 | $ | 110,365 | |||||||
Hotel EBITDA - Non-strategic (8)(a) | 5,376 | 5,168 | 18,898 | 17,416 | |||||||||||
Hotel EBITDA - Comparable (39) | 51,312 | 42,993 | 149,428 | 127,781 | |||||||||||
Hotel EBITDA - Wyndham (8) | 12,334 | 9,997 | 32,271 | 26,281 | |||||||||||
Hotel EBITDA Same-store (47) | $ | 63,646 | $ | 52,990 | $ | 181,699 | $ | 154,062 | |||||||
Hotel EBITDA Margin - Comparable core (31) | 27.9 | % | 25.2 | % | 27.1 | % | 24.9 | % | |||||||
Hotel EBITDA Margin - Non-strategic (8)(a) | 25.9 | % | 25.6 | % | 28.7 | % | 27.8 | % | |||||||
Hotel EBITDA Margin - Comparable (39) | 27.7 | % | 25.3 | % | 27.3 | % | 25.3 | % | |||||||
Hotel EBITDA Margin - Wyndham (8) | 35.6 | % | 37.8 | % | 34.1 | % | 33.1 | % | |||||||
Hotel EBITDA Margin Same-store(47) | 28.9 | % | 27.0 | % | 28.3 | % | 26.3 | % |
(a) | Excludes two hotels held for sale as of September 30, 2014 (one sold in early October and one is expected to sell today). |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Same-store operating revenue | $ | 220,224 | $ | 196,598 | $ | 641,658 | $ | 584,855 | |||||||
Other revenue | 1,607 | 1,584 | 3,170 | 3,034 | |||||||||||
Revenue from hotels, disposed and held for sale(a) | 12,225 | 32,247 | 70,092 | 91,333 | |||||||||||
Total revenue | 234,056 | 230,429 | 714,920 | 679,222 | |||||||||||
Same-store operating expense | 156,578 | 143,608 | 459,959 | 430,793 | |||||||||||
Consolidated hotel lease expense(b) | 5,537 | 11,849 | 29,224 | 33,572 | |||||||||||
Unconsolidated taxes, insurance and lease expense | (916 | ) | (1,800 | ) | (4,867 | ) | (5,737 | ) | |||||||
Corporate expenses | 6,442 | 5,817 | 21,914 | 20,343 | |||||||||||
Depreciation and amortization | 28,523 | 29,820 | 87,206 | 89,473 | |||||||||||
Impairment loss | — | — | — | 24,441 | |||||||||||
Conversion expenses | — | (81 | ) | — | 1,134 | ||||||||||
Expenses from hotels, disposed and held for sale(a) | 9,736 | 23,597 | 54,058 | 68,554 | |||||||||||
Other expenses | 9,746 | 2,102 | 13,874 | 6,838 | |||||||||||
Total operating expense | 215,646 | 214,912 | 661,368 | 669,411 | |||||||||||
Operating income | $ | 18,410 | $ | 15,517 | $ | 53,552 | $ | 9,811 |
(a) | During the nine months ended September 30, 2014, we disposed of ten hotels, which were not held for sale at December 31, 2013. Subsequent to September 30, 2014, we sold one hotel for $7.8 million, and we have agreed to sell one hotel for $37.0 million which is expected to close today. These hotels are considered held for sale on our September 30, 2014 balance sheet, as the purchasers each paid a non-refundable deposit toward the purchase price. Under recently issued GAAP accounting guidance, we included the operating performance for these hotels in continuing operations in our Consolidated Statements of Operations for the three and nine months ended September 30, 2014 and 2013. However, for purposes of our Non-GAAP reporting metrics, we have excluded the results of these hotels to provide a meaningful same-store comparison. |
(b) | Consolidated hotel lease expense represents the percentage lease expense of our 51% owned operating lessees. The offsetting percentage lease revenue is included in equity in income from unconsolidated entities. |
Full Year 2014 Guidance | |||||||||||||||
Low | High | ||||||||||||||
Dollars | Per Share Amount(a) | Dollars | Per Share Amount(a) | ||||||||||||
Net income attributable to FelCor(b) | $ | 74.5 | $ | 76.5 | |||||||||||
Preferred dividends | (39.0 | ) | (39.0 | ) | |||||||||||
Net income attributable to FelCor common stockholders | 35.5 | $ | 0.29 | 37.5 | $ | 0.31 | |||||||||
Gains on hotel transactions | (100.0 | ) | (100.0 | ) | |||||||||||
Depreciation(c) | 122.5 | 122.5 | |||||||||||||
FFO | $ | 58.0 | $ | 0.46 | $ | 60.0 | $ | 0.48 | |||||||
Contract dispute contingency | 6.0 | 6.0 | |||||||||||||
Pre-opening costs | 4.6 | 4.6 | |||||||||||||
Variable stock compensation | 1.6 | 1.6 | |||||||||||||
Severance costs | 0.8 | 0.8 | |||||||||||||
Early extinguishment of debt | 5.0 | 5.0 | |||||||||||||
Adjusted FFO | $ | 76.0 | $ | 0.60 | $ | 78.0 | $ | 0.62 | |||||||
Net income attributable to FelCor(b) | $ | 74.5 | $ | 76.5 | |||||||||||
Depreciation(c) | 122.5 | 122.5 | |||||||||||||
Interest expense(c) | 95.5 | 95.5 | |||||||||||||
Amortization expense | 1.0 | 1.0 | |||||||||||||
EBITDA | $ | 293.5 | $ | 295.5 | |||||||||||
Gains on hotel transactions | (100.0 | ) | (100.0 | ) | |||||||||||
Contract dispute contingency | 6.0 | 6.0 | |||||||||||||
Early extinguishment of debt | 5.0 | 5.0 | |||||||||||||
Amortization of stock compensation | 6.0 | 6.0 | |||||||||||||
Pre-opening costs | 4.6 | 4.6 | |||||||||||||
Variable stock compensation | 1.6 | 1.6 | |||||||||||||
Severance costs | 0.8 | 0.8 | |||||||||||||
Adjusted EBITDA | $ | 217.5 | $ | 219.5 |
(a) | Weighted average shares are 125.8 million. |
(b) | Excludes any gains or losses on future asset sales. |
(c) | Includes pro rata portion of unconsolidated entities. |
• | Gains and losses related to extinguishment of debt and interest rate swaps - We exclude gains and losses related to extinguishment of debt and interest rate swaps from FFO and EBITDA because we believe that it is not indicative of ongoing operating performance of our hotel assets. This also represents an acceleration of interest expense or a reduction of interest expense, and interest expense is excluded from EBITDA. |
• | Cumulative effect of a change in accounting principle - Infrequently, the Financial Accounting Standards Board promulgates new accounting standards that require the consolidated statements of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments in computing Adjusted FFO and Adjusted EBITDA because they do not reflect our actual performance for that period. |
• | Other transaction costs - From time to time, we periodically incur costs that are not indicative of ongoing operating performance. Such costs include, but are not limited to, conversion costs, acquisition costs, pre-opening costs and severance costs. We exclude these costs from the calculation of Adjusted FFO and Adjusted EBITDA. |
• | Variable stock compensation - We exclude the cost associated with our variable stock compensation. This cost is subject to volatility related to the price and dividends of our common stock that does not necessarily correspond to our operating performance. |
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