Date of Report (Date of earliest event reported) | April 29, 2015 |
FelCor Lodging Trust Incorporated | ||
(Exact name of registrant as specified in its charter) | ||
Maryland | 001-14236 | 75-2541756 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
545 E. John Carpenter Frwy., Suite 1300 Irving, Texas | 75062 |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code | (972) 444-4900 |
(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit Number | Description of Exhibit | ||
99.1 | Press release issued by FelCor Lodging Trust Incorporated on April 29, 2015, announcing its results of operations for the three months ended March 31, 2015. |
FELCOR LODGING TRUST INCORPORATED | |||
Date: April 29, 2015 | By: | /s/ Jeffrey D. Symes | |
Name: | Jeffrey D. Symes | ||
Title: | Senior Vice President, Chief Accounting Officer and Controller |
Exhibit Number | Description of Exhibit | ||
99.1 | Press release issued by FelCor Lodging Trust Incorporated on April 29, 2015, announcing its results of operations for the three months ended March 31, 2015. |
![]() | 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 13.1%; core RevPAR increased 13.5%. |
• | Adjusted FFO per share improved to $0.14 from $0.03 in the same quarter in 2014. |
• | Adjusted EBITDA increased by $8.8 million to $49.9 million; same-store Adjusted EBITDA increased by $13.6 million, or 37.7%, to $49.7 million. |
• | Net loss per share improved $0.18 to $0.02 compared to the same quarter in 2014. |
• | Opened The Knickerbocker on February 12, a luxury boutique hotel in Manhattan’s Times Square. |
• | Sold three non-strategic hotels for gross proceeds of $93.1 million in the quarter and four additional non-strategic hotels (two with a non-refundable deposit) are expected to be sold during the second quarter of 2015. |
• | On April 14, called for redemption of $170 million of 8% Series C Cumulative Preferred Stock. |
First Quarter | ||||||||||
2015 | 2014 | Change | ||||||||
Core hotels (39) | ||||||||||
RevPAR | $ | 135.78 | $ | 119.58 | 13.5 | % | ||||
Total hotel revenue, in millions | $ | 194.7 | $ | 170.6 | 14.2 | % | ||||
Hotel EBITDA, in millions | $ | 52.4 | $ | 39.5 | 32.7 | % | ||||
Hotel EBITDA margin | 26.9 | % | 23.1 | % | 376 bps | |||||
Same-store hotels (43) | ||||||||||
RevPAR | $ | 132.86 | $ | 117.46 | 13.1 | % | ||||
Total hotel revenue, in millions | $ | 205.5 | $ | 180.7 | 13.7 | % | ||||
Hotel EBITDA, in millions | $ | 55.9 | $ | 42.6 | 31.1 | % | ||||
Hotel EBITDA margin | 27.2 | % | 23.6 | % | 362 bps |
First Quarter | |||||||||||
$ in millions, except for per share information | 2015 | 2014 | Change | ||||||||
Same-store Adjusted EBITDA | $ | 49.7 | $ | 36.1 | 37.7 | % | |||||
Adjusted EBITDA | $ | 49.9 | $ | 41.1 | 21.4 | % | |||||
Adjusted FFO per share | $ | 0.14 | $ | 0.03 | $ | 0.11 | |||||
Net income (loss) per share | $ | (0.02 | ) | $ | (0.20 | ) | $ | 0.18 |
• | RevPAR for same-store hotels will increase 8.5 - 9.5%; |
• | Adjusted EBITDA will be $240.0 million - $248.5 million; |
• | Adjusted FFO per share will be $0.84 - $0.90; |
• | Net income attributable to FelCor will be $34.8 million - $43.1 million; and |
• | Interest expense, including our pro rata share from joint ventures, will be approximately $85.0 million. |
Low | Middle | High | |||||||||
Previous Adjusted EBITDA (40 hotels) | $ | 229.5 | $ | 233.0 | $ | 236.5 | |||||
Improved operations | 3.0 | 2.5 | 2.0 | ||||||||
Current Adjusted EBITDA (40 hotels) | $ | 232.5 | $ | 235.5 | $ | 238.5 | |||||
2015 EBITDA of non-strategic hotels(a) | 7.5 | 8.7 | 10.0 | ||||||||
2015 Adjusted EBITDA | $ | 240.0 | $ | 244.2 | $ | 248.5 |
(a) | Forecasted EBITDA for the eight non-strategic hotels from January 1, 2015 through the actual or assumed sale dates. |
Page | ||
Consolidated Statements of Operations(a) | ||
Consolidated Balance Sheets(a) | ||
Consolidated Debt Summary | ||
Schedule of Encumbered Hotels | ||
Capital Expenditures | ||
Hotels Under Renovation During 2015 | ||
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 | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Revenues: | |||||||
Hotel operating revenue: | |||||||
Room | $ | 162,306 | $ | 169,829 | |||
Food and beverage | 39,844 | 39,785 | |||||
Other operating departments | 11,135 | 11,408 | |||||
Other revenue | 410 | 327 | |||||
Total revenues | 213,695 | 221,349 | |||||
Expenses: | |||||||
Hotel departmental expenses: | |||||||
Room | 42,511 | 46,733 | |||||
Food and beverage | 30,696 | 31,187 | |||||
Other operating departments | 4,449 | 5,603 | |||||
Other property related costs | 56,895 | 61,578 | |||||
Management and franchise fees | 9,085 | 9,013 | |||||
Taxes, insurance and lease expense | 14,976 | 23,633 | |||||
Corporate expenses | 8,573 | 7,825 | |||||
Depreciation and amortization | 27,772 | 29,601 | |||||
Other expenses | 4,228 | 2,014 | |||||
Total operating expenses | 199,185 | 217,187 | |||||
Operating income | 14,510 | 4,162 | |||||
Interest expense, net | (19,481 | ) | (25,227 | ) | |||
Debt extinguishment | (73 | ) | (6 | ) | |||
Loss before equity in income from unconsolidated entities | (5,044 | ) | (21,071 | ) | |||
Equity in income from unconsolidated entities | 149 | 643 | |||||
Loss from continuing operations | (4,895 | ) | (20,428 | ) | |||
Income from discontinued operations | 4 | 135 | |||||
Loss before gain on sale of property | (4,891 | ) | (20,293 | ) | |||
Gain on sale of property, net | 16,887 | 5,457 | |||||
Net income (loss) | 11,996 | (14,836 | ) | ||||
Net loss (income) attributable to noncontrolling interests in other partnerships | (4,879 | ) | 78 | ||||
Net loss attributable to redeemable noncontrolling interests in FelCor LP | 14 | 121 | |||||
Preferred distributions - consolidated joint venture | (348 | ) | (181 | ) | |||
Net income (loss) attributable to FelCor | 6,783 | (14,818 | ) | ||||
Preferred dividends | (9,678 | ) | (9,678 | ) | |||
Net loss attributable to FelCor common stockholders | $ | (2,895 | ) | $ | (24,496 | ) | |
Basic and diluted per common share data: | |||||||
Loss from continuing operations | $ | (0.02 | ) | $ | (0.20 | ) | |
Net loss | $ | (0.02 | ) | $ | (0.20 | ) | |
Basic and diluted weighted average common shares outstanding | 124,519 | 124,146 |
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $861,796 and $850,687 at March 31, 2015 and December 31, 2014, respectively | $ | 1,714,000 | $ | 1,599,791 | |||
Hotel development | 143,779 | 297,466 | |||||
Investment in unconsolidated entities | 14,633 | 15,095 | |||||
Hotels held for sale | 16,618 | 47,145 | |||||
Cash and cash equivalents | 58,930 | 47,147 | |||||
Restricted cash | 22,172 | 20,496 | |||||
Accounts receivable, net of allowance for doubtful accounts of $185 and $241 at March 31, 2015 and December 31, 2014, respectively | 33,794 | 27,805 | |||||
Deferred expenses, net of accumulated amortization of $18,802 and $17,111 at March 31, 2015 and December 31, 2014, respectively | 24,119 | 25,827 | |||||
Other assets | 21,505 | 23,886 | |||||
Total assets | $ | 2,049,550 | $ | 2,104,658 | |||
Liabilities and Equity | |||||||
Debt | $ | 1,543,439 | $ | 1,585,867 | |||
Distributions payable | 13,867 | 13,827 | |||||
Accrued expenses and other liabilities | 138,095 | 135,481 | |||||
Total liabilities | 1,695,401 | 1,735,175 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests in FelCor LP, 611 units issued and outstanding at March 31, 2015 and December 31, 2014 | 7,026 | 6,616 | |||||
Equity: | |||||||
Preferred stock, $0.01 par value, 20,000 shares authorized: | |||||||
Series A Cumulative Convertible Preferred Stock, 12,879 shares, liquidation value of $321,987, issued and outstanding at March 31, 2015 and December 31, 2014 | 309,337 | 309,337 | |||||
Series C Cumulative Redeemable Preferred Stock, 68 shares, liquidation value of $169,950, issued and outstanding at March 31, 2015 and December 31, 2014 | 169,412 | 169,412 | |||||
Common stock, $0.01 par value, 200,000 shares authorized; 124,872 and 124,605 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 1,249 | 1,246 | |||||
Additional paid-in capital | 2,354,800 | 2,353,666 | |||||
Accumulated deficit | (2,538,643 | ) | (2,530,671 | ) | |||
Total FelCor stockholders’ equity | 296,155 | 302,990 | |||||
Noncontrolling interests in other partnerships | 8,278 | 18,435 | |||||
Preferred equity in consolidated joint venture, liquidation value of $43,371 and $42,094 at March 31, 2015 and December 31, 2014, respectively | 42,690 | 41,442 | |||||
Total equity | 347,123 | 362,867 | |||||
Total liabilities and equity | $ | 2,049,550 | $ | 2,104,658 |
Encumbered Hotels | Interest Rate (%) | Maturity Date | March 31, 2015 | December 31, 2014 | |||||||||||||
Line of credit | 8 | LIBOR + 3.375 | June 2016(a) | $ | 84,500 | $ | 111,500 | ||||||||||
Term loan | 3 | LIBOR + 2.50 | July 2017(b) | 140,000 | 140,000 | ||||||||||||
Mortgage debt | 3 | LIBOR + 3.00 | March 2017 | 49,067 | 51,008 | ||||||||||||
Mortgage debt(c) | 4 | 4.95 | October 2022 | 123,914 | 124,278 | ||||||||||||
Mortgage debt | 1 | 4.94 | October 2022 | 31,097 | 31,228 | ||||||||||||
Senior secured notes | 6 | 6.75 | June 2019 | 525,000 | 525,000 | ||||||||||||
Senior secured notes | 9 | 5.625 | March 2023 | 525,000 | 525,000 | ||||||||||||
The Knickerbocker loan:(d) | |||||||||||||||||
Construction tranche | 1 | LIBOR + 4.00 | May 2016 | 58,562 | 58,562 | ||||||||||||
Cash collateralized tranche | — | LIBOR + 1.25 | May 2016 | 6,299 | 6,299 | ||||||||||||
Retired debt | — | — | — | — | 12,992 | ||||||||||||
Total | 35 | $ | 1,543,439 | $ | 1,585,867 |
(a) | Our $225 million line of credit can be extended for one year (to 2017), subject to satisfying certain conditions. |
(b) | This debt can be extended up to two years, subject to satisfying certain conditions. |
(c) | This debt is comprised of separate non-cross-collateralized loans each secured by a mortgage of a single hotel. |
(d) | This construction loan (total capacity of $85.0 million) was obtained to finance the redevelopment of The Knickerbocker, and can be extended for one year subject to satisfying certain conditions. |
Consolidated | March 31, 2015 | |||||||
Debt | Balance | Encumbered Hotels | ||||||
Line of credit | $ | 85 | 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 | $ | 49 | Austin Airport - ES, Chicago Lombard - 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 | |||||
Construction loan | $ | 65 | The Knickerbocker |
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Improvements and additions to majority-owned hotels | $ | 13,483 | $ | 28,617 | |||
Partners’ pro rata share of additions to consolidated joint venture hotels | (24 | ) | (93 | ) | |||
Pro rata share of additions to unconsolidated hotels | 304 | 623 | |||||
Total additions to hotels(a) | $ | 13,763 | $ | 29,147 |
(a) | Includes capitalized interest, property taxes, property insurance, ground leases and certain employee costs. |
Primary Areas | Start Date | End Date | ||||
Myrtle Beach - HLT | meeting space, new F&B outlet | Dec-2014 | Feb-2015 | |||
LAX- ES(a) | public areas, F&B, meeting space | Feb-2014 | May-2015 | |||
Nashville - HI | guestrooms, public areas, F&B | Aug-2014 | June-2015 | |||
New Orleans - French Quarter Chateau Lemoyne - HI | guestrooms, public areas, exterior | May-2015 | Dec-2015 | |||
Vinoy Resort & Golf Club - REN | meeting space, F&B, golf shop | Nov-2015 | Jan-2016 |
(a) | Guestrooms renovation completed in 2013. |
March 31, | December 31, | |||||||
Total Enterprise Value | 2015 | 2014 | ||||||
Common shares outstanding | 124,872 | 124,605 | ||||||
Units outstanding | 611 | 611 | ||||||
Combined shares and units outstanding | 125,483 | 125,216 | ||||||
Common stock price | $ | 11.49 | $ | 10.82 | ||||
Market capitalization | $ | 1,441,800 | $ | 1,354,837 | ||||
Series A preferred stock(a) | 309,337 | 309,337 | ||||||
Series C preferred stock(a) | 169,412 | 169,412 | ||||||
Preferred equity - Knickerbocker joint venture, net(b) | 40,555 | 39,370 | ||||||
Consolidated debt(b) | 1,543,439 | 1,585,867 | ||||||
Noncontrolling interests of consolidated debt | (2,928 | ) | (2,928 | ) | ||||
Pro rata share of unconsolidated debt | 16,951 | 17,096 | ||||||
Hotel development(c) | (143,779 | ) | (297,466 | ) | ||||
Cash, cash equivalents and restricted cash(d) | (81,102 | ) | (67,643 | ) | ||||
Total enterprise value (TEV) | $ | 3,293,685 | $ | 3,107,882 |
(a) | Book value based on issue price. |
(b) | Book value based on issue price, net of noncontrolling interest. |
(c) | A portion of the Knickerbocker investment was placed in service during the first quarter. |
(d) | Restricted cash includes $6.3 million of cash fully securing $6.3 million of outstanding debt assumed when we purchased The Knickerbocker. |
Brand | Hotels | Rooms | 2014 Hotel Operating Revenue (in thousands) | 2014 Hotel EBITDA (in thousands)(a) | ||||||||||||||
Embassy Suites Hotels | 18 | 4,982 | $ | 282,866 | $ | 94,990 | ||||||||||||
Wyndham and Wyndham Grand | 8 | 2,528 | 125,354 | 43,122 | ||||||||||||||
Renaissance and Marriott | 3 | 1,321 | 128,770 | 26,086 | ||||||||||||||
DoubleTree by Hilton and Hilton | 3 | 802 | 45,383 | 15,483 | ||||||||||||||
Sheraton | 2 | 673 | 39,639 | 10,622 | ||||||||||||||
Fairmont | 1 | 383 | 53,451 | 10,010 | ||||||||||||||
Holiday Inn | 2 | 968 | 51,511 | 8,966 | ||||||||||||||
Morgans and Royalton | 2 | 285 | 33,895 | 3,314 | ||||||||||||||
Core hotels | 39 | 11,942 | 760,869 | 212,593 | ||||||||||||||
Non-strategic hotels(b) | 4 | 1,084 | 40,148 | 12,428 | ||||||||||||||
Same-store hotels | 43 | 13,026 | $ | 801,017 | $ | 225,021 | ||||||||||||
Market | ||||||||||||||||||
San Francisco area | 5 | 1,903 | $ | 139,692 | $ | 39,466 | ||||||||||||
Boston | 3 | 916 | 85,670 | 21,832 | ||||||||||||||
South Florida | 3 | 923 | 55,561 | 17,007 | ||||||||||||||
Los Angeles area | 2 | 481 | 28,696 | 12,404 | ||||||||||||||
Myrtle Beach | 2 | 640 | 41,149 | 12,218 | ||||||||||||||
Philadelphia | 2 | 728 | 38,680 | 9,630 | ||||||||||||||
Tampa | 1 | 361 | 49,358 | 9,301 | ||||||||||||||
New York area | 3 | 546 | 48,456 | 7,259 | ||||||||||||||
Other markets | 18 | 5,444 | 273,607 | 83,476 | ||||||||||||||
Core hotels | 39 | 11,942 | 760,869 | 212,593 | ||||||||||||||
Non-strategic hotels(b) | 4 | 1,084 | 40,148 | 12,428 | ||||||||||||||
Same-store hotels | 43 | 13,026 | $ | 801,017 | $ | 225,021 | ||||||||||||
Location | ||||||||||||||||||
Urban | 17 | 5,310 | $ | 360,177 | $ | 97,584 | ||||||||||||
Resort | 9 | 2,733 | 203,370 | 51,679 | ||||||||||||||
Airport | 8 | 2,621 | 136,144 | 43,204 | ||||||||||||||
Suburban | 5 | 1,278 | 61,178 | 20,126 | ||||||||||||||
Core hotels | 39 | 11,942 | 760,869 | 212,593 | ||||||||||||||
Non-strategic hotels(b) | 4 | 1,084 | 40,148 | 12,428 | ||||||||||||||
Same-store hotels | 43 | 13,026 | $ | 801,017 | $ | 225,021 |
(a) | Hotel EBITDA is more fully described on page 24. |
(b) | Excludes one hotel held for sale as of March 31, 2015. |
Occupancy (%) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | %Variance | |||||||
Embassy Suites Hotels | 81.1 | 76.8 | 5.6 | ||||||
Wyndham and Wyndham Grand | 69.0 | 62.9 | 9.6 | ||||||
Renaissance and Marriott | 80.8 | 75.6 | 6.9 | ||||||
DoubleTree by Hilton and Hilton | 69.1 | 64.4 | 7.2 | ||||||
Sheraton | 58.8 | 56.4 | 4.1 | ||||||
Fairmont | 61.6 | 58.6 | 5.1 | ||||||
Holiday Inn | 70.1 | 64.5 | 8.6 | ||||||
Morgans and Royalton | 73.8 | 79.4 | (7.1 | ) | |||||
Core hotels (39)(a) | 74.7 | 70.2 | 6.4 | ||||||
Non-strategic hotels (4)(b) | 78.7 | 76.0 | 3.5 | ||||||
Same-store hotels (43) | 75.1 | 70.7 | 6.2 | ||||||
ADR ($) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | %Variance | |||||||
Embassy Suites Hotels | 179.02 | 166.71 | 7.4 | ||||||
Wyndham and Wyndham Grand | 158.09 | 144.62 | 9.3 | ||||||
Renaissance and Marriott | 251.96 | 236.72 | 6.4 | ||||||
DoubleTree by Hilton and Hilton | 162.48 | 156.22 | 4.0 | ||||||
Sheraton | 125.69 | 127.91 | (1.7 | ) | |||||
Fairmont | 250.51 | 238.07 | 5.2 | ||||||
Holiday Inn | 155.09 | 131.81 | 17.7 | ||||||
Morgans and Royalton | 234.84 | 258.62 | (9.2 | ) | |||||
Core hotels (39)(a) | 181.65 | 170.25 | 6.7 | ||||||
Non-strategic hotels (4)(b) | 128.02 | 123.81 | 3.4 | ||||||
Same-store hotels (43) | 176.97 | 166.09 | 6.5 | ||||||
RevPAR ($) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | %Variance | |||||||
Embassy Suites Hotels | 145.25 | 128.06 | 13.4 | ||||||
Wyndham and Wyndham Grand | 109.03 | 90.99 | 19.8 | ||||||
Renaissance and Marriott | 203.52 | 178.95 | 13.7 | ||||||
DoubleTree by Hilton and Hilton | 112.26 | 100.65 | 11.5 | ||||||
Sheraton | 73.88 | 72.20 | 2.3 | ||||||
Fairmont | 154.20 | 139.46 | 10.6 | ||||||
Holiday Inn | 108.67 | 85.01 | 27.8 | ||||||
Morgans and Royalton | 173.22 | 205.34 | (15.6 | ) | |||||
Core hotels (39)(a) | 135.78 | 119.58 | 13.5 | ||||||
Non-strategic hotels (4)(b) | 100.72 | 94.12 | 7.0 | ||||||
Same-store hotels (43) | 132.86 | 117.46 | 13.1 |
(a) | Excludes The Knickerbocker which opened in February 2015. |
(b) | Excludes one hotel held for sale as of March 31, 2015. |
Occupancy (%) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | %Variance | |||||||
San Francisco area | 82.5 | 72.0 | 14.6 | ||||||
Boston | 66.5 | 61.3 | 8.4 | ||||||
South Florida | 93.3 | 91.2 | 2.3 | ||||||
Los Angeles | 81.6 | 82.9 | (1.6 | ) | |||||
Myrtle Beach | 53.9 | 45.5 | 18.7 | ||||||
Philadelphia | 49.2 | 54.5 | (9.7 | ) | |||||
Tampa | 88.8 | 86.1 | 3.1 | ||||||
New York area | 70.2 | 71.7 | (2.0 | ) | |||||
Other markets | 75.1 | 70.3 | 6.8 | ||||||
Core hotels (39)(a) | 74.7 | 70.2 | 6.4 | ||||||
ADR ($) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | %Variance | |||||||
San Francisco area | 206.63 | 188.07 | 9.9 | ||||||
Boston | 197.64 | 184.06 | 7.4 | ||||||
South Florida | 221.32 | 205.26 | 7.8 | ||||||
Los Angeles | 170.33 | 159.17 | 7.0 | ||||||
Myrtle Beach | 112.76 | 108.73 | 3.7 | ||||||
Philadelphia | 139.82 | 130.99 | 6.7 | ||||||
Tampa | 251.81 | 226.08 | 11.4 | ||||||
New York area | 208.91 | 229.08 | (8.8 | ) | |||||
Other markets | 163.82 | 153.47 | 6.7 | ||||||
Core hotels (39)(a) | 181.65 | 170.25 | 6.7 | ||||||
RevPAR ($) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | %Variance | |||||||
San Francisco area | 170.52 | 135.42 | 25.9 | ||||||
Boston | 131.40 | 112.85 | 16.4 | ||||||
South Florida | 206.40 | 187.18 | 10.3 | ||||||
Los Angeles | 138.98 | 131.96 | 5.3 | ||||||
Myrtle Beach | 60.83 | 49.43 | 23.1 | ||||||
Philadelphia | 68.77 | 71.38 | (3.7 | ) | |||||
Tampa | 223.53 | 194.74 | 14.8 | ||||||
New York area | 146.76 | 164.18 | (10.6 | ) | |||||
Other markets | 122.97 | 107.85 | 14.0 | ||||||
Core hotels (39)(a) | 135.78 | 119.58 | 13.5 |
(a) | Excludes The Knickerbocker which opened in February 2015. |
Occupancy (%) | |||||||||||
Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | ||||||||
Core hotels (39)(a) | 80.5 | 80.3 | 72.0 | 74.7 | |||||||
Non-strategic hotels (4)(b) | 79.3 | 74.8 | 72.3 | 78.7 | |||||||
Same-store hotels (43) | 80.4 | 79.8 | 72.0 | 75.1 | |||||||
ADR ($) | |||||||||||
Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | ||||||||
Core hotels (39)(a) | 178.94 | 179.06 | 175.83 | 181.65 | |||||||
Non-strategic hotels (4)(b) | 121.38 | 120.04 | 120.66 | 128.02 | |||||||
Same-store hotels (43) | 174.22 | 174.46 | 171.22 | 176.97 | |||||||
RevPAR ($) | |||||||||||
Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | ||||||||
Core hotels (39)(a) | 143.98 | 143.71 | 126.57 | 135.78 | |||||||
Non-strategic hotels (4)(b) | 96.27 | 89.82 | 87.24 | 100.72 | |||||||
Same-store hotels (43) | 140.01 | 139.22 | 123.30 | 132.86 |
(a) | Excludes The Knickerbocker which opened in February 2015. |
(b) | Excludes one hotel held for sale as of March 31, 2015. |
Three Months Ended March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net income (loss) | $ | 11,996 | $ | (14,836 | ) | ||||||||||||||||
Noncontrolling interests | (4,865 | ) | 199 | ||||||||||||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | |||||||||||||||||
Preferred distributions - consolidated joint venture | (348 | ) | (181 | ) | |||||||||||||||||
Net loss attributable to FelCor common stockholders | (2,895 | ) | (24,496 | ) | |||||||||||||||||
Less: Dividends declared on unvested restricted stock | (13 | ) | — | ||||||||||||||||||
Basic and diluted earnings per share data | (2,908 | ) | 124,519 | $ | (0.02 | ) | (24,496 | ) | 124,146 | $ | (0.20 | ) | |||||||||
Depreciation and amortization | 27,772 | — | 0.22 | 29,601 | — | 0.24 | |||||||||||||||
Depreciation, unconsolidated entities and other partnerships | 712 | — | 0.01 | 2,675 | — | 0.02 | |||||||||||||||
Gain on sale of hotels, net of noncontrolling interests in other partnerships | (11,881 | ) | — | (0.10 | ) | (5,851 | ) | — | (0.05 | ) | |||||||||||
Loss on sale, unconsolidated entities | — | — | — | 33 | — | — | |||||||||||||||
Noncontrolling interests in FelCor LP | (14 | ) | 611 | — | (121 | ) | 618 | — | |||||||||||||
Dividends declared on unvested restricted stock | 13 | — | — | — | — | — | |||||||||||||||
Conversion of unvested restricted stock and units | — | 1,213 | — | — | 858 | — | |||||||||||||||
FFO | 13,694 | 126,343 | 0.11 | 1,841 | 125,622 | 0.01 | |||||||||||||||
Debt extinguishment, including discontinued operations | 73 | — | — | 251 | — | — | |||||||||||||||
Severance costs | — | — | — | 400 | — | — | |||||||||||||||
Variable stock compensation | 997 | — | — | 564 | — | 0.01 | |||||||||||||||
Pre-opening costs, net of noncontrolling interests | 3,524 | — | 0.03 | 1,053 | — | 0.01 | |||||||||||||||
Adjusted FFO | $ | 18,288 | 126,343 | $ | 0.14 | $ | 4,109 | 125,622 | $ | 0.03 |
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Net income (loss) | $ | 11,996 | $ | (14,836 | ) | ||
Depreciation and amortization | 27,772 | 29,601 | |||||
Depreciation, unconsolidated entities and other partnerships | 712 | 2,675 | |||||
Interest expense | 19,486 | 25,242 | |||||
Interest expense, discontinued operations and unconsolidated entities | 202 | 744 | |||||
Noncontrolling interests in other partnerships | (4,879 | ) | 78 | ||||
EBITDA | 55,289 | 43,504 | |||||
Debt extinguishment, including discontinued operations | 73 | 251 | |||||
Gain on sale of hotels, net of noncontrolling interests in other partnerships | (11,881 | ) | (5,851 | ) | |||
Loss on sale, unconsolidated entities | — | 33 | |||||
Amortization of fixed stock and directors’ compensation | 1,862 | 1,122 | |||||
Severance costs | — | 400 | |||||
Variable stock compensation | 997 | 564 | |||||
Pre-opening costs, net of noncontrolling interests | 3,524 | 1,053 | |||||
Adjusted EBITDA | 49,864 | 41,076 | |||||
Adjusted EBITDA from hotels disposed, held for sale and recently opened | (137 | ) | (4,956 | ) | |||
Same-store Adjusted EBITDA | $ | 49,727 | $ | 36,120 |
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Same-store operating revenue: | |||||||
Room | $ | 155,759 | $ | 137,696 | |||
Food and beverage | 38,847 | 33,005 | |||||
Other operating departments | 10,894 | 10,044 | |||||
Same-store operating revenue | 205,500 | 180,745 | |||||
Same-store operating expense: | |||||||
Room | 40,347 | 37,782 | |||||
Food and beverage | 29,407 | 26,263 | |||||
Other operating departments | 4,326 | 4,896 | |||||
Other property related costs | 53,817 | 49,150 | |||||
Management and franchise fees | 8,749 | 7,278 | |||||
Taxes, insurance and lease expense | 12,946 | 12,730 | |||||
Same-store operating expense | 149,592 | 138,099 | |||||
Hotel EBITDA | $ | 55,908 | $ | 42,646 | |||
Hotel EBITDA Margin | 27.2 | % | 23.6 | % |
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Hotel EBITDA - Core (39)(a) | $ | 52,380 | $ | 39,464 | |||
Hotel EBITDA - Non-strategic (4)(b) | 3,528 | 3,182 | |||||
Hotel EBITDA Same-store (43) | $ | 55,908 | $ | 42,646 | |||
Hotel EBITDA Margin - Core (39)(a) | 26.9 | % | 23.1 | % | |||
Hotel EBITDA Margin - Non-strategic (4)(b) | 32.6 | % | 31.2 | % | |||
Hotel EBITDA Margin Same-store (43) | 27.2 | % | 23.6 | % |
(a) | Excludes The Knickerbocker which opened in February 2015. |
(b) | Excludes one hotel held for sale as of March 31, 2015. |
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Same-store operating revenue | $ | 205,500 | $ | 180,745 | |||
Other revenue | 410 | 327 | |||||
Revenue from hotels disposed, held for sale and recently opened(a) | 7,785 | 40,277 | |||||
Total revenue | 213,695 | 221,349 | |||||
Same-store operating expense | 149,592 | 138,099 | |||||
Consolidated hotel lease expense(b) | 2,104 | 10,391 | |||||
Unconsolidated taxes, insurance and lease expense | (572 | ) | (1,965 | ) | |||
Corporate expenses | 8,573 | 7,825 | |||||
Depreciation and amortization | 27,772 | 29,601 | |||||
Expenses from hotels disposed, held for sale and recently opened(a) | 7,488 | 31,222 | |||||
Other expenses | 4,228 | 2,014 | |||||
Total operating expense | 199,185 | 217,187 | |||||
Operating income | $ | 14,510 | $ | 4,162 |
(a) | Under GAAP, we include the operating performance for disposed, held for sale and recently opened hotels in continuing operations in our Consolidated Statements of Operations. 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 2015 Guidance | |||||||||||||||
Low | High | ||||||||||||||
Dollars | Per Share Amount(a) | Dollars | Per Share Amount(a) | ||||||||||||
Net income attributable to FelCor(b) | $ | 34.8 | $ | 43.1 | |||||||||||
Preferred dividends | (30.1 | ) | (30.1 | ) | |||||||||||
Net income attributable to FelCor common stockholders | 4.7 | $ | 0.03 | 13.0 | $ | 0.09 | |||||||||
Gains on hotel sales, net(b) | (11.9 | ) | (11.9 | ) | |||||||||||
Depreciation(c) | 119.3 | 119.5 | |||||||||||||
FFO | $ | 112.1 | $ | 0.80 | $ | 120.6 | $ | 0.86 | |||||||
Pre-opening costs | 3.5 | 3.5 | |||||||||||||
Variable stock compensation | 1.0 | 1.0 | |||||||||||||
Early extinguishment of debt | 0.1 | 0.1 | |||||||||||||
Adjusted FFO | $ | 116.7 | $ | 0.84 | $ | 125.2 | $ | 0.90 | |||||||
Net income attributable to FelCor(b) | $ | 34.8 | $ | 43.1 | |||||||||||
Depreciation(c) | 119.3 | 119.5 | |||||||||||||
Interest expense(c) | 85.0 | 85.0 | |||||||||||||
Preferred distributions - consolidated joint venture | 1.5 | 1.5 | |||||||||||||
EBITDA | $ | 240.6 | $ | 249.1 | |||||||||||
Amortization of stock compensation | 6.7 | 6.7 | |||||||||||||
Gains on hotel sales, net(b) | (11.9 | ) | (11.9 | ) | |||||||||||
Pre-opening costs | 3.5 | 3.5 | |||||||||||||
Variable stock compensation | 1.0 | 1.0 | |||||||||||||
Early extinguishment of debt | 0.1 | 0.1 | |||||||||||||
Adjusted EBITDA | $ | 240.0 | $ | 248.5 |
(a) | Weighted average shares are 139.2 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. |
W&N@.]*YCJWP?HNV6AKMKE[7TKZQ?4?H^"S`Z=DB
MC%J+BRO;>Z"]QL?[K6/?]-W[RS^K6?XL>M9GV[J9;D9.P5^H?M+?:V=K=M6Q
MGYR;'FL0)]<:)OY@NE`2`UV?.?J0]M?UOZ2Y^@.0&Z^+F/8S_I.7H]_1.H=1
M^N_5WT9^7TNMN-B'U<<`-LTL$.?:US?T>QWT/Y:J5]._Q1U6,MJ:*[:W!]=C
M'9@ K
M=/ZEAWX8SJV^G<]HVZ-LIL$S_.-]5KV-_/3(`\6S/S.2!Q$"0.HV/]9H_6G7
M_%G]79_TF-_YXR%P2]/^NG0>H-^J_2/J_P!.HNZA;AOK<^ZM@#=M-;Z)?[O8
M^U]WZ.O<]<1_S/\`K5_Y5Y'^:/\`R260&]NB.5R0&/60%RD=2]U]4LG)R?J9
MB5?5NVNKJ/3;FOSL1X;-PW/?;COLL:_T/MU?OHRVM_X'?_.^EPOUMZB.I==O
MRG8+NG70VO)QWD%WJLEKK';6L^DSTUW?U>^J!'3>F9^'79T/K6-8UN>]X>XW
M5M]N12^IUGI.KROT=[7+&^O_`$/K'5/K)9D=-Z9?92RFNI]S6`-LL;N<;&;B
MUSFL8]E._P#X).D#PACPS@,\NQXO5+0C_OGC,',OP '!A
M8VME="!B96=I;CTB[[N_(B!I9#TB5S5-,$UP0V5H:4AZ \V[2+/?Q&BNG@O`YH*HSQR'5JTD`&@JH%,=(3^:+\5?A;\H.
MIME8WYX=_P"1Z1Z-VKO:EK\9'6=X[-Z*V#N#L.MQF2IL`V>SV[*:*#.9^BQ(
MK_X91_=J%1ZB1868:T;WFSV^\M53=+CP[0,.+A`6\JDX^S^72WVVYDYMY;W>
M[EY)V1;S>Y(2#2WDN95C!J^E4-54XUG3Z`GJC7_AI'_A-3_WGQU[_P"G#NC/
M_J_V&?W#R;_T;U#ZN8?27Y3!D8
MQJ]3(V$M?Z32SZ&_=N?_`%UXNQV58]M=;K;+'G:QC'/K]'Q?M>0:KL<$"Q])<2R3M:Y[;&L]F[\]JQ5V&3B=1
M_P";W5\JKJ+'8;\C+?D81J#WAWK/:ZK[4;=U3M&O_FO8N/3N9QQA*/"#$2%Z
MZJ+H]/Z#G=1P,OJ&.^IM&%N]86.<'G:SUW>FUK'M^A^\Y9P,B?%=A]4O_$IU
M[X6_^V[5QS?HCX!-RPC&&,C>4;*NSI]%^K_4.MF\83JFG_P!5SFSOW[-F
MQEG^BE]TUAZ'<7
;5[>;
MKRS9?52PWUO*0!4")X'1G-/(!^/E6O0NG$A%JT2ZM,BD_8003^7'JK[_`(4G
MD_8?$!220,CW20I/%S1]<`L!]`6"_P"\>X4^]A4PFW/^_(9"\@?YBK'2?/HTM@
MZI,KJ0`QI\P