EX-99 4 earnings8-k3q2007exh99_2.htm

Exhibit 99.2

 

 

 

 

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

 

 

 

Date of Issuance November 7, 2007

 

 

 

All dollar amounts shown in this report are in U.S. dollars unless otherwise noted.

This Supplemental Information is neither an offer to sell nor a solicitation to buy any securities of FelCor. Any offers to sell or solicitations to buy any securities of FelCor shall be made only by means of a prospectus.

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

TABLE OF CONTENTS

 

PAGE

CORPORATE DATA

 

About the Company

3

 

Board of Directors and Executive Officers

4

 

Equity Research Coverage

5

 

FINANCIAL HIGHLIGHTS

 

Supplemental Financial Data

6

 

Consolidated Statements of Operations

7

 

Discontinued Operations

8

 

Non-GAAP Financial Measures

8

 

Debt Summary

17

 

PORTFOLIO DATA

 

Portfolio Distribution

19

 

Detailed Operating Statistics by Brand

20

 

Detailed Operating Statistics for FelCor’s Top Markets

21

 

Pro Rata Share of Rooms Owned

22

 

Capital Expenditures

22

 

Renovation Completion Schedule

23

 

Projected Renovation Program Summary

25

 

Unconsolidated Operations

25

 

Hotels Sold in 2007

26

 

This supplement contains registered trademarks owned or licensed by companies other than us, which may include, but are not limited to, Crowne Plaza®, Disneyland®, Doubletree®, Doubletree Guest Suites®, Embassy Suites Hotels®, Hampton Inn®, Hilton®, Hilton Suites®, Holiday Inn®, Holiday Inn & Suites®, Holiday Inn Express & Suites®, Holiday Inn Select®, Sheraton®, Sheraton Suites®, Walt Disney World® and Westin®.

 

With the exception of historical information, the matters discussed in this news release include “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumption and forecasts of future results. Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties, and the occurrence of future events, may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. General economic conditions, operating risks associated with the hotel business, the impact of U.S. military involvement in the Middle East and elsewhere, future acts of terrorism, the impact on the travel industry of increased fuel prices and security precautions, the availability of capital, the ability to effect sales of non-strategic hotels at anticipated prices, the cyclical nature of the real estate markets, our ability to continue to qualify as a Real Estate Investment Trust for federal income tax purposes and numerous other factors may affect future results, performance and achievements. Certain of these risks and uncertainties are described in greater detail in our filings with the Securities and Exchange Commission. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially. We undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.

2

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

CORPORATE DATA

 

About the Company

 

In 1994, FelCor Lodging Trust Incorporated, a real estate investment trust (REIT), went public with six hotels, and a market capitalization of $120 million.  We are now the nation’s largest owner of upper upscale, all-suite hotels. At September 30, 2007, our portfolio was comprised of 83 consolidated hotels located in 23 states and Canada. For these hotels, the operating revenues and expenses are reflected in our consolidated statements of operations because of our majority ownership interests of the operating lessees of these hotels. We also owned 50 percent joint venture interests in four hotels whose operations were accounted for using the equity method. We owned 65 upper upscale hotels and were the largest owner of Embassy Suites Hotels and Doubletree Guest Suites hotels. We had an enterprise value of approximately $3.0 billion.

 

Strategy

 

Our long-term strategic plan is to own a diversified portfolio of high quality, upscale hotels flagged under leading brands and then increase shareholder value and return on invested capital by maximizing the use of our real estate and enhancing cash flow. We continually examine our portfolio to address issues of market supply and concentration of risk. In order to achieve our strategic objectives, we have identified three goals: Portfolio Repositioning and Debt Reduction; Internal Growth consisting of a comprehensive renovation program, redevelopment projects and a new asset management approach; and External Growth.

 

 

 

 

 

Public Ratings

 

 

 

 

 

Corporate

 

 

Senior Debt

 

Preferred Stock

Moody’s

 

Ba3

 

Ba3

 

B2

Standard & Poors

 

BB-

 

B+

 

B-

 

Stock Exchange Listing

Common Stock (NYSE: FCH)

$1.95 Series A Cumulative Convertible Preferred Stock (NYSE: FCHPRA)

8% Series C Cumulative Redeemable Preferred Stock (NYSE: FCHPRC)

 

Fiscal Year End

December 31

 

Number of employees

76

 

Corporate Headquarters

545 E. John Carpenter Frwy., Suite 1300

Irving, TX 75062

(972) 444-4900

 

Investor/Media Relations Contact

Stephen A. Schafer

Vice President Strategic Planning & Investor Relations

(972) 444-4912

sschafer@felcor.com

 

Information Request

information@felcor.com

 

3

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Board of Directors

 

Thomas J. Corcoran, Jr.

Chairman of the Board, FelCor Lodging Trust Incorporated

 

Melinda J. Bush, C.H.A.

Chairman and Chief Executive Officer, HRW Holdings, LLC

 

Robert F. Cotter

President, Kerzner International Holdings Limited

 

Richard S. Ellwood

Private Investor

 

Thomas C. Hendrick

Executive Vice President of Acquisitions and Development, Kor Group

 

David C. Kloeppel

Executive Vice President and Chief Financial Officer, Gaylord Entertainment Company

 

Charles A. Ledsinger, Jr.

Vice Chairman and Chief Executive Officer, Choice Hotels International

 

Robert H. Lutz, Jr.

President, RL Investments, Inc.

 

Robert A. Mathewson

President, RGC, Inc.

 

Richard A. Smith

President and Chief Executive Officer, FelCor Lodging Trust Incorporated

 

Executive Officers

 

Richard A. Smith, President and Chief Executive Officer

 

Michael A. DeNicola, Executive Vice President and Chief Investment Officer

 

Troy A. Pentecost, Executive Vice President, Director of Asset Management

 

Andrew J. Welch, Executive Vice President and Chief Financial Officer

 

Jonathan H. Yellen, Executive Vice President, General Counsel and Secretary

 

4

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Equity Research Coverage

 

 

Firm

Analyst

Telephone

 

Citigroup Smith Barney

Joshua Attie

(212) 816-1533

 

Deutsche Bank North America

Chris Woronka

(212) 250-5815

 

Friedman, Billings, Ramsey & Co.

Wilkes Graham

(703) 312-9737

 

Green Street Advisors

John V. Arabia

(949) 640-8780

 

JPMorgan

Harry C. Curtis

(212) 622-6610

 

Lehman Brothers

Felicia R. Hendrix

(212) 526-5562

 

Merrill Lynch

Amanda Bryant

(212) 449-2922

 

Morgan, Keegan & Co.

Napoleon Overton

(901) 579-4865

 

Stifel, Nicolaus & Company

Rod F. Petrik

(410) 454-4131

 

UBS (US)

William B. Truelove

(212) 713-8825

 

Wachovia Securities

Jeffrey J. Donnelly

(617) 603-4262

 

 

 

5

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

FINANCIAL HIGHLIGHTS

 

Supplemental Financial Data

(in thousands, except per share information, ratios and percentages)

 

 

 

September 30,

 

December 31,

Total Enterprise Value

2007

 

2006

Common shares outstanding

 

62,440

 

 

 

62,052

 

Units outstanding

 

1,354

 

 

 

1,355

 

Combined shares and units outstanding

 

63,794

 

 

 

63,407

 

Common stock price at end of period

$

19.93

 

 

$

21.84

 

Common equity capitalization

$

1,271,414

 

 

$

1,384,809

 

Series A preferred stock

 

309,362

 

 

 

309,362

 

Series C preferred stock

 

169,412

 

 

 

169,412

 

Consolidated debt

 

1,294,550

 

 

 

1,369,153

 

Minority interest of consolidated debt

 

(7,352

)

 

 

(8,150

)

Pro rata share of unconsolidated debt

 

95,191

 

 

 

98,731

 

Cash and cash equivalents

 

(155,583

)

 

 

(124,179

)

Total enterprise value (TEV)

$

2,976,994

 

 

$

3,199,138

 

 

 

 

 

 

 

 

 

Dividends Per Share

 

 

 

 

 

 

 

Dividends declared (year to date):

 

 

 

 

 

 

 

Common stock

$

0.85

 

 

$

0.80

 

Series A preferred stock

 

1.4625

 

 

 

1.95

 

Series C preferred stock (depositary shares)

 

1.50

 

 

 

2.00

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Data

 

 

 

 

 

 

 

Investment in hotels, net

$

2,163,812

 

 

$

2,044,285

 

Hotels held for sale

 

-   

 

 

 

133,801

 

Total cash and cash equivalents

 

155,583

 

 

 

124,179

 

Total assets

 

2,546,149

 

 

 

2,583,249

 

Total debt

 

1,294,550

 

 

 

1,369,153

 

Total stockholders’ equity

 

1,040,830

 

 

 

1,010,931

 

Total stockholders equity less preferred equity

 

562,056

 

 

 

532,157

 

Book value per common share outstanding

 

9.00

 

 

 

8.58

 

 

 

.

6

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

g

 

Consolidated Statements of Operations

(in thousands, except per share data)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2007

 

2006

 

2007

 

2006

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Room

$

212,347

 

 

$

205,009

 

 

$

633,483

 

 

$

623,974

 

Food and beverage

 

32,161

 

 

 

29,170

 

 

 

99,146

 

 

 

94,273

 

Other operating departments

 

12,188

 

 

 

13,272

 

 

 

38,137

 

 

 

39,821

 

Other revenue

 

468

 

 

 

13

 

 

 

921

 

 

 

68

 

Total revenues

 

257,164

 

 

 

247,464

 

 

 

771,687

 

 

 

758,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel departmental expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Room

 

52,553

 

 

 

50,617

 

 

 

154,394

 

 

 

151,593

 

Food and beverage

 

25,023

 

 

 

22,563

 

 

 

76,213

 

 

 

71,764

 

Other operating departments

 

4,745

 

 

 

5,879

 

 

 

15,527

 

 

 

17,833

 

Other property related costs

 

70,119

 

 

 

68,431

 

 

 

207,260

 

 

 

204,135

 

Management and franchise fees

 

13,652

 

 

 

12,026

 

 

 

40,718

 

 

 

39,463

 

Taxes, insurance and lease expense

 

31,736

 

 

 

28,726

 

 

 

92,387

 

 

 

84,126

 

Abandoned projects

 

-   

 

 

 

-   

 

 

 

22

 

 

 

-   

 

Corporate expenses

 

3,690

 

 

 

7,164

 

 

 

15,732

 

 

 

18,530

 

Depreciation

 

28,523

 

 

 

23,917

 

 

 

80,729

80

 

 

70,096

 

Total operating expenses

 

230,041

 

 

 

219,323

 

 

 

682,982

682,982

 

 

657,540

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

27,123

 

 

 

28,141

 

 

 

88,705

 

 

 

100,596

 

Interest expense, net

 

(22,655

)

 

 

(28,030

)

 

 

(68,734

)

 

 

(86,845

)

Charge-off of deferred financing costs

 

-   

 

 

 

-   

 

 

 

-   

 

 

 

(962

)

Early extinguishment of debt, net

 

-   

 

 

 

-   

 

 

 

-   

 

 

 

(438

)

Income before equity in income from unconsolidated

entities, minority interests and sale of assets

 

 

4,468

 

 

 

 

111

 

 

 

 

19,971

 

 

 

 

12,351

 

Equity in income from unconsolidated entities

 

3,030

 

 

 

3,948

 

 

 

19,511

 

 

 

9,708

 

Minority interests

 

347

 

 

 

305

 

 

 

463

 

 

 

1,590

 

Loss on sale of other assets

 

-   

 

 

 

(92

)

 

 

-   

 

 

 

(92

)

Gain on sale of condominiums

 

354

 

 

 

-   

 

 

 

18,493

 

 

 

-   

 

Income from continuing operations

 

8,199

 

 

 

4,272

 

 

 

58,438

 

 

 

23,557

 

Discontinued operations

 

(206

)

 

 

15,790

 

 

 

33,893

 

 

 

16,502

 

Net income

 

7,993

 

 

 

20,062

 

 

 

92,331

 

 

 

40,059

 

Preferred dividends

 

(9,678

)

 

 

(9,665

)

 

 

(29,034

)

 

 

(29,022

)

Net income (loss) applicable to common stockholders

$

(1,685

)

 

$

10,397

 

 

$

63,297

 

 

$

11,037

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic per common share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

$

(0.02

)

 

$

(0.09

)

 

$

0.48

 

 

$

(0.09

)

Net income (loss)

$

(0.03

)

 

$

0.17

 

 

$

1.03

 

 

$

0.18

 

Basic weighted average common shares outstanding

 

61,652

 

 

 

61,148

 

 

 

61,582

 

 

 

60,441

 

Diluted per common share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

$

(0.02

)

 

$

(0.09

)

 

$

0.47

 

 

$

(0.09

)

Net income (loss)

$

(0.03

)

 

$

0.17

 

 

$

1.02

 

 

$

0.18

 

Diluted weighted average common shares

outstanding

 

61,652

 

 

 

61,148

 

 

 

61,908

 

 

 

60,441

 

Cash dividends declared on common stock

$

0.30

 

 

$

0.20

 

 

$

0.85

 

 

$

0.55

 

 

 

7

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Discontinued Operations

(in thousands)

 

Discontinued operations include the results of operations of 11 hotels sold in 2007 and 31 hotels sold in 2006. Condensed financial information for the hotels included in discontinued operations is as follows:

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2007

 

2006

 

2007

 

2006

Operating revenue

$

74

 

 

$

50,136

 

 

$

26,522

 

$

172,226

 

Operating expenses

 

(276

)

 

 

(50,789

)

 

 

(18,371

)

 

(169,068

)

Operating income (loss)

 

(202

)

 

 

(653

)

 

 

8,151

 

 

3,158

 

Interest income (expense), net

 

4

 

 

 

(303

)

 

 

(15

)

 

(946

)

Gain on sale of hotels, net of income tax

 

-   

 

 

 

18,182

 

 

 

28,488

 

 

15,320

 

Debt extinguishment

 

-   

 

 

 

(240

)

 

 

(901

)

 

(240

)

Minority interests

 

(8

)

 

 

(1,196

)

 

 

(1,830

)

 

(790

)

Income (loss) from discontinued operations

 

(206

)

 

 

15,790

 

 

 

33,893

 

 

16,502

 

Depreciation and amortization, net of minority

interests

 

 

-   

 

 

 

 

3,786

 

 

 

 

14

 

 

 

12,904

 

Minority interest in FelCor LP

 

(4

)

 

 

345

 

 

 

736

 

 

282

 

Interest expense, net of minority interests

 

-   

 

 

 

300

 

 

 

29

 

 

929

 

EBITDA from discontinued operations

 

(210

)

 

 

20,221

 

 

 

34,672

 

 

30,617

 

Gain on sale of hotels, net of income tax and

minority interests

 

 

-   

 

 

 

 

(17,610

 

)

 

 

 

(27,830

 

)

 

 

(14,748

 

)

Impairment loss, net of minority interests

 

-   

 

 

 

5,874

 

 

 

-   

 

 

14,2155

 

Charges related to early extinguishment of debt,

net of minority interests

 

 

-   

 

 

 

 

240

 

 

 

 

811

 

 

 

240

 

Adjusted EBITDA from discontinued operations

$

(210

)

 

$

8,725

 

 

$

7,653

 

$

30,324

 

 

 

 

Non-GAAP Financial Measures

 

We refer in this supplement to certain “non-GAAP financial measures.” These measures, including FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, Hotel EBITDA and Hotel EBITDA margin, are measures of our financial performance that are not calculated and presented in accordance with generally accepted accounting principles (“GAAP”). The following tables reconcile each of these non-GAAP measures to the most comparable GAAP financial measure. Immediately following the reconciliations, we include a discussion of why we believe these measures are useful supplemental measures of our performance and the limitations of such measures.

 

8

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Non-GAAP Financial Measures (continued)

 

Reconciliation of Net Income to FFO and Adjusted FFO

(in thousands, except per share and unit data)

 

 

Three Months Ended September 30,

 

2007

 

2006

 

Dollars

 

Shares

 

Per Share Amount

 

Dollars

 

Shares

 

Per Share Amount

Net income

$

7,993

 

 

 

 

 

 

 

 

$

20,062

 

 

 

 

 

 

 

Preferred dividends

 

(9,678

)

 

 

 

 

 

 

 

 

(9,665

)

 

 

 

 

 

 

Net income (loss) applicable to common stockholders

 

 

(1,685

)

 

61,652

 

$

(0.03

)

 

 

 

10,397

 

 

 

61,148

 

$

 

0.17

 

Depreciation, continuing operations

 

28,523

 

 

-   

 

 

0.46

 

 

 

23,917

 

 

-   

 

 

0.39

 

Depreciation, unconsolidated entities and discontinued operations

 

2,895

 

 

-   

 

 

 

0.05

 

 

 

6,776

 

 

-   

 

 

 

0.11

 

Gain on sale of hotels, net of income tax and minority interests

 

 

-   

 

 

-   

 

 

 

-   

 

 

 

 

(17,610

)

 

-   

 

 

 

(0.29

)

Loss on sale of hotels in unconsolidated entities

 

189

 

 

-   

 

 

 

-   

 

 

 

-   

 

 

 

-   

 

 

-   

 

Minority interest in FelCor LP

 

(36

)

 

1,354

 

 

(0.01

)

 

 

227

 

 

1,355

 

 

-   

 

Conversion of options and unrestricted stock

 

 

-   

 

 

346

 

 

 

-   

 

 

 

 

-   

 

 

 

414

 

 

 

-   

 

FFO

 

29,886

 

 

63,352

 

 

0.47

 

 

 

23,707

 

 

62,917

 

 

0.38

 

Impairment loss, net of minority interests

 

-   

 

 

-   

 

 

-   

 

 

 

5,874

 

 

-   

 

 

0.09

 

Charges related to early extinguishment of debt, net of minority interests

 

-   

 

 

-   

 

 

-   

 

 

 

216

 

 

-   

 

 

-   

 

Adjusted FFO

$

29,886

 

 

63,352

 

$

0.47

 

 

$

29,797

 

 

62,917

 

$

0.47

 

 

 

9

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Non-GAAP Financial Measures (continued)

 

Reconciliation of Net Income to FFO and Adjusted FFO

(in thousands, except per share and unit data)

 

 

Nine Months Ended September 30,

 

2007

 

2006

 

Dollars

 

Shares

 

Per Share Amount

 

Dollars

 

Shares

 

Per Share Amount

Net income

$

92,331

 

 

 

 

 

 

 

 

$

40,059

 

 

 

 

 

 

 

Preferred dividends

 

(29,034

)

 

 

 

 

 

 

 

 

(29,022

)

 

 

 

 

 

 

Net income applicable to common stockholders

 

 

63,297

 

 

61,908

 

$

 

1.02

 

 

 

11,037

 

 

 

60,441

 

$

0.18

 

Depreciation, continuing operations

 

80,729

 

 

-   

 

 

1.30

 

 

 

70,096

 

 

-   

 

 

1.16

 

Depreciation, unconsolidated entities and discontinued operations

 

8,606

 

 

-   

 

 

0.14

 

 

 

21,378

 

 

-   

 

 

0.35

 

Gain on sale of hotels, net of income tax and minority interests

 

(27,830

)

 

-   

 

 

(0.45

)

 

 

(14,748

)

 

-   

 

 

(0.24

)

Gain on sale of hotels in unconsolidated entities

 

(10,993

)

 

-   

 

 

(0.18

)

 

 

-   

 

 

-   

 

 

-   

 

Minority interest in FelCor LP

 

1,375

 

 

1,354

 

 

(0.01

)

 

 

251

 

 

2,035

 

 

(0.05

)

Conversion of options and unvested restricted stock

 

-   

 

 

-   

 

 

-   

 

 

 

-   

 

 

356

 

 

-   

 

FFO

 

115,184

 

 

63,262

 

 

1.82

 

 

 

88,014

 

 

62,832

 

 

1.40

 

Impairment loss, net of minority interest

 

-   

 

 

-   

 

 

-   

 

 

 

14,215

 

 

-   

 

 

0.22

 

Abandoned projects

 

22

 

 

-   

 

 

-   

 

 

 

-   

 

 

-   

 

 

-   

 

Charges related to debt extinguishment, net of minority interest

 

811

 

 

-   

 

 

0.01

 

 

 

1,686

 

 

-   

 

 

0.03

 

Adjusted FFO

$

116,017

 

 

63,262

 

$

1.83

 

 

$

103,915

 

 

62,832

 

$

1.65

 

 

 

10

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Non-GAAP Financial Measures (continued)

 

Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Same-Store EBITDA

(in thousands)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2007

 

2006

 

2007

 

2006

Net income

$

7,993

 

 

$

20,062

 

 

$

92,331

 

 

$

40,059

 

Depreciation, continuing operations

 

28,523

 

 

 

23,917

 

 

 

80,729

 

 

 

70,096

 

Depreciation, unconsolidated entities and discontinued operations

 

2,895

 

 

 

6,776

 

 

 

8,606

 

 

 

21,378

 

Minority interest in FelCor Lodging LP

 

(36

)

 

 

227

 

 

 

1,375

 

 

 

251

 

Interest expense

 

24,865

 

 

 

28,919

 

 

 

73,611

 

 

 

89,371

 

Interest expense, unconsolidated entities
and discontinued operations

 

1,508

 

 

 

 

1,696

 

 

 

4,570

 

 

 

5,553

 

Amortization expense

 

516

 

 

 

2,442

 

 

 

3,130

 

 

 

4,339

 

EBITDA

 

66,264

 

 

 

84,039

 

 

 

264,352

 

 

 

231,047

 

Gain on sale of hotels, net of income tax and minority interests

 

-   

 

 

 

 

(17,610

)

 

 

(27,830

)

 

 

 

(14,748

)

Loss (gain) on sale of hotels in unconsolidated entities

 

189

 

 

 

-   

 

 

 

(10,993

)

 

 

-   

 

Impairment loss, discontinued operations

 

-   

 

 

 

5,874

 

 

 

-   

 

 

 

14,215

 

Abandoned projects

 

-   

 

 

 

-   

 

 

 

22

 

 

 

-   

 

Charges related to debt extinguishment, net of minority interests

 

-   

 

 

 

216

 

 

 

811

 

 

 

1,686

 

Adjusted EBITDA

 

66,453

 

 

 

72,519

 

 

 

226,362

 

 

 

232,200

 

Adjusted EBITDA from discontinued operations

 

210

 

 

 

(8,725

)

 

 

(7,653

)

 

 

(30,324

)

Gain on sale of condominiums

 

(354

)

 

 

-   

 

 

 

(18,493

)

 

 

-   

 

Same-Store EBITDA

$

66,309

 

 

$

63,794

 

 

$

200,216

 

 

$

201,876

 

 

 

11

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Non-GAAP Financial Measures (continued)

 

Reconciliation of Adjusted EBITDA to Hotel EBITDA

(in thousands)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2007

 

2006

 

2007

 

2006

Adjusted EBITDA

$

66,453

 

 

$

72,519

 

 

$

226,362

 

 

$

232,200

 

Other revenue

 

(468

)

 

 

(13

)

 

 

(921

)

 

 

(68

)

Adjusted EBITDA from discontinued operations

 

210

 

 

 

(8,725

)

 

 

(7,653

)

 

 

(30,324

)

Equity in income from unconsolidated subsidiaries
(excluding interest and depreciation expense)

 

(8,018

)

 

 

(8,687

)

 

 

(22,860

)

 

 

(24,172

)

Minority interest in other partnerships
(excluding interest and depreciation expense)

 

80

 

 

 

191

 

 

 

108

 

 

 

(240

)

Consolidated hotel lease expense

 

16,204

 

 

 

15,861

 

 

 

47,729

 

 

 

45,864

 

Unconsolidated taxes, insurance and lease expense

 

(1,990

)

 

 

(1,747

)

 

 

(5,588

)

 

 

(4,896

)

Interest income

 

(2,210

)

 

 

(890

)

 

 

(4,878

)

 

 

(2,525

)

Corporate expenses (excluding amortization expense)

 

3,175

 

 

 

4,722

 

 

 

12,602

 

 

 

14,191

 

Loss on sale of other assets

 

-   

 

 

 

92

 

 

 

-   

 

 

 

92

 

Gain on sale of condominiums

 

(354

)

 

 

-   

 

 

 

(18,493

)

 

 

-   

 

Hotel EBITDA

$

73,082

 

 

$

73,323

 

 

$

226,408

 

 

$

230,122

 

 

 

Reconciliation of Net Income to Hotel EBITDA

(in thousands)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2007

 

2006

 

2007

 

2006

Net income

$

7,993

 

 

$

20,062

 

 

$

92,331

 

 

$

40,059

 

Discontinued operations

 

206

 

 

 

(15,790

)

 

 

(33,893

)

 

 

(16,502

)

Equity in income from unconsolidated entities

 

(3,030

)

 

 

(3,948

)

 

 

(19,511

)

 

 

(9,708

)

Minority interests

 

(347

)

 

 

(305

)

 

 

(463

)

 

 

(1,590

)

Consolidated hotel lease expense

 

16,204

 

 

 

15,861

 

 

 

47,729

 

 

 

45,864

 

Unconsolidated taxes, insurance and lease expense

 

(1,990

)

 

 

(1,747

)

 

 

(5,588

)

 

 

(4,896

)

Interest expense, net

 

22,655

 

 

 

28,030

 

 

 

68,734

 

 

 

86,845

 

Charge-off of deferred financing costs

 

-   

 

 

 

-   

 

 

 

-   

 

 

 

962

 

Early extinguishment of debt

 

-   

 

 

 

-   

 

 

 

-   

 

 

 

438

 

Corporate expenses

 

3,690

 

 

 

7,164

 

 

 

15,732

 

 

 

18,530

 

Depreciation

 

28,523

 

 

 

23,917

 

 

 

80,729

 

 

 

70,096

 

Abandoned projects

 

-   

 

 

 

-   

 

 

 

22

 

 

 

-   

 

Loss on sale of other assets

 

-   

 

 

 

92

 

 

 

-   

 

 

 

92

 

Gain on sale of condominiums

 

(354

)

 

 

-   

 

 

 

(18,493

)

 

 

-   

 

Other revenue

 

(468

)

 

 

(13

)

 

 

(921

)

 

 

(68

)

Hotel EBITDA

$

73,082

 

 

$

73,323

 

 

$

226,408

 

 

$

230,122

 

 

 

12

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Non-GAAP Financial Measures (continued)

 

Hotel EBITDA and Hotel EBITDA Margin

(dollars in thousands)

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

2007

 

2006

 

 

2007

 

2006

Total revenue

$

257,164

 

 

$

247,464

 

 

$

771,687

 

 

$

758,136

 

Other revenue

 

(468

)

 

 

(13

)

 

 

(921

)

 

 

(68

)

Hotel operating revenue

 

256,696

 

 

 

247,451

 

 

 

770,766

 

 

 

758,068

 

Hotel operating expenses

 

(183,614

)

 

 

(174,128

)

 

 

(544,358

)

 

 

(527,946

)

Hotel EBITDA

$

73,082

 

 

$

73,323

 

 

$

226,408

 

 

$

230,122

 

Hotel EBITDA margin(1)

 

28.5%

 

 

 

29.6%

 

 

 

29.4%

 

 

 

30.4%

 

 

 

 

(1)

Hotel EBITDA as a percentage of hotel operating revenue.

 

Reconciliation of Ratio of Operating Income to Total Revenue to Hotel EBITDA Margin

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2007

 

2006

 

2007

 

2006

Ratio of operating income to total revenue

10.5

%

 

11.4

%

 

11.5

%

 

13.3

%

Other revenue

(0.2

)

 

-   

 

 

(0.1

)

 

-   

 

Unconsolidated taxes, insurance and lease expense

(0.6

)

 

(0.8

)

 

(0.7

)

 

(0.6

)

Consolidated hotel lease expense

6.3

 

 

6.4

 

 

6.2

 

 

6.1

 

Corporate expenses

1.4

 

 

2.9

 

 

2.0

 

 

2.4

 

Depreciation

11.1

 

 

9.7

 

 

10.5

 

 

9.2

 

Hotel EBITDA margin

28.5

%

 

29.6

%

 

29.4

%

 

30.4

%

 

 

Reconciliation of Total Operating Expense to Hotel Operating Expense

(dollars in thousands)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2007

 

2006

 

2007

 

2006

 

Total operating expenses

$

230,041

 

 

$

219,323

 

 

$

682,982

 

 

$

657,540

 

Unconsolidated taxes, insurance and lease expense

 

1,990

 

 

 

1,747

 

 

 

5,588

 

 

 

4,896

 

Consolidated hotel lease expense

 

(16,204

)

 

 

(15,861

)

 

 

(47,729

)

 

 

(45,864

)

Corporate expenses

 

(3,690

)

 

 

(7,164

)

 

 

(15,732

)

 

 

(18,530

)

Abandoned projects

 

-   

 

 

 

-   

 

 

 

(22

)

 

 

-   

 

Depreciation

 

(28,523

)

 

 

(23,917

)

 

 

(80,729

)

 

 

(70,096

)

Hotel operating expenses

$

183,614

 

 

$

174,128

 

 

$

544,358

 

 

$

527,946

 

 

 

13

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Non-GAAP Financial Measures (continued)

 

Substantially all of our non-current assets consist of real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminish predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to be helpful in evaluating a real estate company’s operations. These supplemental measures, including FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, Hotel EBITDA and Hotel EBITDA margin, are not measures of operating performance under GAAP. However, we consider these non-GAAP measures to be supplemental measures of a hotel REIT’s performance and should be considered along with, but not as an alternative to, net income as a measure of our operating performance.

 

FFO and EBITDA

 

The White Paper on Funds From Operations approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), defines FFO as net income or loss (computed in accordance with GAAP), excluding gains or losses from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis.  We compute FFO in accordance with standards established by NAREIT.

This may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.

 

EBITDA is a commonly used measure of performance in many industries. We define EBITDA as net income or loss (computed in accordance with GAAP) plus interest expenses, income taxes, depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect EBITDA on the same basis.

 

Adjustments to FFO and EBITDA

 

We adjust FFO and EBITDA when evaluating our performance because management believes that the exclusion of certain additional recurring and non-recurring items such as those described below provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted FFO, Adjusted EBITDA and Same-Store EBITDA, when combined with GAAP net income, EBITDA and FFO, is beneficial to an investor’s better understanding of our operating performance.

 

 

•

Gains and losses related to early extinguishment of debt and interest rate swaps – We exclude gains and losses related to early 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.

 

14

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Non-GAAP Financial Measures (continued)

 

 

•

Impairment losses – We exclude the effect of impairment losses and gains or losses on disposition of assets in computing Adjusted FFO and Adjusted EBITDA because we believe that including these is not consistent with reflecting the ongoing performance of our remaining assets. Additionally, we believe that impairment charges and gains or losses on disposition of assets represent accelerated depreciation or excess depreciation, and depreciation is excluded from FFO by the NAREIT definition and 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.

 

In addition, to derive Adjusted EBITDA, we adjust EBITDA for gains or losses on the sale of assets because we believe that including them in EBITDA is not consistent with reflecting ongoing performance of our remaining assets. Additionally, the gain or loss on sale of depreciable assets represents either accelerated depreciation or excess depreciation in previous periods, and depreciation is excluded from EBITDA.

 

To derive Same-Store EBITDA, we make the same adjustments to EBITDA as for Adjusted EBITDA and, additionally, exclude EBITDA from discontinued operations and gains and losses from the disposition of non-hotel related assets.

 

Hotel EBITDA and Hotel EBITDA Margin

 

Hotel EBITDA and Hotel EBITDA margin are commonly used measures of performance in the industry and give investors a more complete understanding of the operating results over which our individual hotels and operating managers have direct control. We believe that Hotel EBITDA and Hotel EBITDA margin are useful to investors by providing greater transparency with respect to two significant measures used by us in our financial and operational decision-making. Additionally, these measures facilitate comparisons with other hotel REITs and hotel owners. We present Hotel EBITDA and Hotel EBITDA margin by eliminating corporate-level expenses, depreciation and expenses related to our capital structure. We eliminate corporate-level costs and expenses because we believe property-level results provide investors with supplemental information with respect to the ongoing operating performance of our hotels and the effectiveness of management on a property-level basis. We eliminate depreciation and amortization, even though they are property-level expenses, because we do not believe that these non-cash expenses, which are based on historical cost accounting for real estate assets and implicitly assume that the value of real estate assets diminish predictably over time, accurately reflect an adjustment in the value of our assets. We also eliminate consolidated percentage rent paid to unconsolidated entities, which is effectively eliminated by minority interest expense and equity in income from unconsolidated subsidiaries, and include the cost of unconsolidated taxes, insurance and lease expense, to reflect the entire operating costs applicable to our hotels.

 

15

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Non-GAAP Financial Measures (continued)

 

Limitations of Non-GAAP Measures

 

The use of these non-GAAP financial measures has certain limitations. FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, Hotel EBITDA and Hotel EBITDA margin, as presented by us, may not be comparable to FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, Hotel EBITDA and Hotel EBITDA margin as calculated by other real estate companies. These measures do not reflect certain expenses that we incurred and will incur, such as depreciation and interest or capital expenditures. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the GAAP financial measures, and our consolidated statements of operations and cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures.

 

These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by GAAP. Neither should FFO, FFO per share, Adjusted FFO, Adjusted FFO per share, EBITDA, Adjusted EBITDA or Same-Store EBITDA be considered as measures of our liquidity or indicative of funds available for our cash needs, including our ability to make cash distributions. FFO per share does not measure, and should not be used as a measure of, amounts that accrue directly to the benefit of stockholders. FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, Hotel EBITDA and Hotel EBITDA margin reflect additional ways of viewing our operations that we believe when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.

 

 

16

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Debt Summary

(dollars in thousands)

 

Debt Outstanding

 

 

Encumbered

Interest Rate at

Maturity

Consolidated

 

 

Hotels

 

 

September 30, 2007

 

 

Date

 

 

Debt

 

Line of credit(a)

none

 

L + 0.80

 

August 2011

$

-   

 

Senior term notes

none

 

8.50

 

June 2011

 

299,100

 

Senior term notes

none

 

L + 1.875

 

December 2011

 

215,000

 

Total line of credit and senior debt(b)

 

 

7.98

 

 

 

514,100

 

 

 

 

 

 

 

 

 

 

Mortgage debt(c)

 

12 hotels

 

 

L + 0.93

 

November 2008

 

250,000

 

Mortgage debt

 

7 hotels

 

 

6.57

 

June 2009-2014

 

89,560

 

Mortgage debt

 

7 hotels

 

 

7.32

 

March 2009

 

121,710

 

Mortgage debt

 

8 hotels

 

 

8.70

 

May 2010

 

166,884

 

Mortgage debt

 

6 hotels

 

 

8.73

 

May 2010

 

120,345

 

Mortgage debt

 

1 hotel

 

 

L + 2.85

 

August 2008

 

15,500

 

Mortgage debt

 

1 hotel

 

 

5.81

 

July 2016

 

12,600

 

Other

 

1 hotel   

 

 

9.17

 

August 2011

 

3,851

 

Total mortgage debt(b)

 

43 hotels

 

 

7.54

 

 

 

780,450

 

Total

 

 

7.72

%

 

 

$

1,294,550

 

 

 

(a)

We have a borrowing capacity of $250 million on our line of credit. The interest on this line can range from 80 to 150 basis points over LIBOR based on our leverage ratio as defined in our line of credit agreement. If we meet certain requirements under the agreement, we can exercise a one-year extension option.

 

(b)

Interest rates are calculated based on the average outstanding debt at September 30, 2007.

 

(c)

This debt has three one-year extension options.

 

Debt Statistics at September 30, 2007

 

Weighted average interest

7.72%

Fixed interest rate debt to total debt

62.9%

Weighted average maturity of debt

5 years

Mortgage debt to total assets

30.7%

 

 

17

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Debt Summary (continued)

 

At September 30, 2007, future scheduled principal payments on outstanding debt are as follows (in thousands):

 

 

Year

 

 

Secured

Debt

 

 

 

Unsecured

Debt

 

 

 

 

Total

 

2007

$

3,295

 

 

$

-   

 

 

$

3,295

 

2008

 

29,233

 

 

 

-   

 

 

 

29,233

 

2009

 

142,240

 

 

 

-   

 

 

 

142,240

 

2010

 

274,417

 

 

 

-   

 

 

 

274,417

 

2011(a)

 

253,030

 

 

 

515,000

 

 

 

768,030

 

2012 and thereafter

 

78,235

 

 

 

-   

 

 

 

78,235

 

Discount

 

-   

 

 

 

(900

)

 

 

(900

)

Total debt

$

780,450

 

 

$

514,100

 

 

$

1,294,550

 

 

 

(a)

Included in this amount is a $250,000 loan that has three, one-year extension options extending the maturity of this debt from 2008 to 2011.

 

At September 30, 2007, we had unconsolidated 50 percent investments in ventures that owned an aggregate of 17 hotels. These ventures had approximately $190 million of non-recourse mortgage debt, all of which is secured by hotel assets. Our pro rata share of this non-recourse debt was $95 million.

 

18

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

PORTFOLIO DATA

 

Portfolio Distribution at September 30, 2007

(83 consolidated hotels, same store basis)

 

Brand

 

 

 

Hotels

 

 

Rooms

 

% of

Total Rooms

 

% of 2006

Hotel EBITDA(a)

Embassy Suites Hotels

 

47

 

12,127

 

51

 

57

 

Holiday Inn-branded

 

17

 

6,305

 

26

 

18

 

Sheraton and Westin

 

9

 

3,217

 

13

 

15

 

Doubletree-branded

 

7

 

1,471

 

6

 

7

 

Other

 

3

 

962

 

4

 

3

 

 

 

 

 

 

 

 

 

 

 

Top Markets

 

 

 

 

 

 

 

 

 

 

South Florida area

 

5

 

1,434

 

6

 

7

 

Atlanta

 

5

 

1,462

 

6

 

7

 

San Francisco Bay area

 

6

 

2,141

 

9

 

6

 

Los Angeles area

 

4

 

898

 

4

 

5

 

Orlando

 

5

 

1,690

 

7

 

5

 

Dallas

 

4

 

1,333

 

6

 

5

 

Phoenix

 

3

 

798

 

3

 

4

 

San Diego

 

1

 

600

 

2

 

4

 

Minneapolis

 

3

 

736

 

3

 

4

 

Northern New Jersey

 

3

 

756

 

3

 

3

 

Washington, D.C.

 

1

 

443

 

2

 

3

 

Philadelphia

 

2

 

729

 

3

 

3

 

Chicago

 

3

 

795

 

3

 

3

 

San Antonio

 

3

 

874

 

4

 

3

 

Boston

 

2

 

532

 

2

 

3

 

 

 

 

 

 

 

 

 

 

 

Location

 

 

 

 

 

 

 

 

 

 

Suburban

 

33

 

8,360

 

35

 

38

 

Urban

 

20

 

6,362

 

26

 

25

 

Airport

 

20

 

6,203

 

26

 

24

 

Resort

 

10

 

3,157

 

13

 

13

 

 

 

 

 

 

 

 

 

 

 

Segment

 

 

 

 

 

 

 

 

 

 

Upper-upscale

 

65

 

17,374

 

72

 

81

 

Full service

 

17

 

6,305

 

26

 

18

 

Upscale

 

1

 

403

 

2

 

1

 

 

 

(a)

Hotel EBITDA is more fully described on page 15 of this supplement.

 

19

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Detailed Operating Statistics by Brand

(83 consolidated hotels, same store basis)

 

 

Occupancy (%)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2007

 

2006

 

%Variance

 

2007

 

2006

 

%Variance

Embassy Suites

70.9

 

75.0

 

(5.5

)

 

72.9

 

76.3

 

(4.5

)

Holiday Inn

73.9

 

71.1

 

4.0

 

 

70.3

 

72.6

 

(3.2

)

Sheraton and Westin(a)

68.9

 

73.0

 

(5.6

)

 

69.8

 

72.2

 

(3.4

)

Doubletree

75.5

 

76.3

 

(1.1

)

 

72.8

 

76.5

 

(4.8

)

Other(b)

82.2

 

77.9

 

5.5

 

 

71.3

 

71.1

 

0.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

72.1

 

73.9

 

(2.4

)

 

71.7

 

74.6

 

(3.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADR ($)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2007

 

2006

 

%Variance

 

2007

 

2006

 

%Variance

Embassy Suites

141.35

 

132.27

 

6.9

 

 

143.55

 

134.45

 

6.8

 

Holiday Inn

120.11

 

112.46

 

6.8

 

 

116.87

 

109.53

 

6.7

 

Sheraton and Westin(a)

120.30

 

115.38

 

4.3

 

 

126.51

 

120.91

 

4.6

 

Doubletree

137.62

 

126.73

 

8.6

 

 

144.29

 

130.38

 

10.7

 

Other(b)

144.53

 

140.70

 

2.7

 

 

138.82

 

133.39

 

4.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

132.87

 

125.06

 

6.2

 

 

134.35

 

126.06

 

6.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RevPAR ($)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2007

 

2006

 

%Variance

 

2007

 

2006

 

%Variance

Embassy Suites

100.17

 

99.23

 

0.9

 

 

104.61

 

102.63

 

1.9

 

Holiday Inn

88.75

 

79.91

 

11.1

 

 

82.20

 

79.56

 

3.3

 

Sheraton and Westin(a)

82.89

 

84.23

 

(1.6

)

 

88.25

 

87.28

 

1.1

 

Doubletree

103.90

 

96.74

 

7.4

 

 

105.06

 

99.72

 

5.4

 

Other(b)

118.86

 

109.64

 

8.4

 

 

98.93

 

94.78

 

4.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

95.84

 

92.43

 

3.7

 

 

96.36

 

94.05

 

2.5

 

 

 

(a)

Includes eight Sheraton-branded hotels and one Westin hotel.

 

(b)

Other hotels include two Hilton-branded hotels and one Crowne Plaza hotel.

 

20

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Detailed Operating Statistics for FelCor’s Top Markets

(83 consolidated hotels, same store basis)

 

 

Occupancy (%)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2007

 

2006

 

%Variance

 

2007

 

2006

 

%Variance

South Florida area

61.5

 

72.6

 

(15.3

)

 

73.5

 

79.8

 

(8.0

)

Atlanta

74.3

 

75.0

 

(0.9

)

 

75.6

 

77.4

 

(2.3

)

San Francisco Bay area

85.6

 

84.0

 

2.0

 

 

77.2

 

77.9

 

(1.0

)

Los Angeles area

79.7

 

78.6

 

1.4

 

 

78.8

 

77.0

 

2.3

 

Orlando

73.2

 

72.6

 

0.8

 

 

77.6

 

78.9

 

(1.6

)

Dallas

59.0

 

69.0

 

(14.5

)

 

65.1

 

71.8

 

(9.4

)

Phoenix

56.1

 

64.5

 

(13.0

)

 

68.6

 

73.9

 

(7.2

)

San Diego

76.3

 

88.4

 

(13.7

)

 

76.2

 

83.7

 

(8.9

)

Minneapolis

84.0

 

77.9

 

7.8

 

 

77.3

 

71.5

 

8.1

 

Northern New Jersey

77.8

 

70.7

 

10.0

 

 

71.5

 

70.4

 

1.6

 

Washington, D.C.

66.6

 

69.6

 

(4.2

)

 

67.7

 

67.5

 

0.3

 

Philadelphia

77.6

 

82.1

 

(5.5

)

 

68.7

 

74.9

 

(8.2

)

Chicago

82.1

 

80.2

 

2.3

 

 

72.0

 

76.3

 

(5.7

)

San Antonio

78.7

 

77.0

 

2.2

 

 

78.0

 

79.3

 

(1.6

)

Boston

79.6

 

82.3

 

(3.2

)

 

67.3

 

76.4

 

(11.9

)

 

ADR ($)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2007

 

2006

 

%Variance

 

2007

 

2006

 

%Variance

South Florida area

111.43

 

105.94

 

5.2

 

 

153.29

 

141.89

 

8.0

 

Atlanta

119.91

 

114.86

 

4.4

 

 

122.05

 

118.78

 

2.7

 

San Francisco Bay area

149.81

 

137.42

 

9.0

 

 

140.64

 

130.40

 

7.8

 

Los Angeles area

170.50

 

154.15

 

10.6

 

 

159.98

 

143.86

 

11.2

 

Orlando

90.58

 

89.52

 

1.2

 

 

105.83

 

100.38

 

5.4

 

Dallas

119.49

 

108.51

 

10.1

 

 

124.41

 

112.61

 

10.5

 

Phoenix

109.45

 

104.57

 

4.7

 

 

146.23

 

131.46

 

11.2

 

San Diego

157.76

 

144.02

 

9.5

 

 

155.45

 

139.69

 

11.3

 

Minneapolis

147.92

 

142.85

 

3.5

 

 

143.61

 

137.73

 

4.3

 

Northern New Jersey

157.09

 

146.47

 

7.2

 

 

155.90

 

147.14

 

6.0

 

Washington, D.C.

156.22

 

152.17

 

2.7

 

 

166.00

 

161.03

 

3.1

 

Philadelphia

137.41

 

128.58

 

6.9

 

 

136.45

 

127.48

 

7.0

 

Chicago

133.57

 

128.36

 

4.1

 

 

131.51

 

122.57

 

7.3

 

San Antonio

110.80

 

107.27

 

3.3

 

 

110.49

 

104.40

 

5.8

 

Boston

164.62

 

159.21

 

3.4

 

 

156.12

 

151.17

 

3.3

 

 

RevPAR ($)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2007

 

2006

 

%Variance

 

2007

 

2006

 

%Variance

South Florida area

68.52

 

76.88

 

(10.9

)

 

112.61

 

113.27

 

(0.6

)

Atlanta

89.14

 

86.15

 

3.5

 

 

92.31

 

91.95

 

0.4

 

San Francisco Bay area

128.30

 

115.42

 

11.2

 

 

108.53

 

101.61

 

6.8

 

Los Angeles area

135.86

 

121.19

 

12.1

 

 

126.03

 

110.75

 

13.8

 

Orlando

66.29

 

65.01

 

2.0

 

 

82.15

 

79.19

 

3.7

 

Dallas

70.55

 

74.89

 

(5.8

)

 

80.95

 

80.91

 

0.1

 

Phoenix

61.45

 

67.48

 

(8.9

)

 

100.30

 

97.13

 

3.3

 

San Diego

120.38

 

127.32

 

(5.5

)

 

118.50

 

116.87

 

1.4

 

Minneapolis

124.22

 

111.25

 

11.7

 

 

110.95

 

98.46

 

12.7

 

Northern New Jersey

122.14

 

103.55

 

18.0

 

 

111.43

 

103.53

 

7.6

 

Washington, D.C.

104.12

 

105.91

 

(1.7

)

 

112.39

 

108.65

 

3.4

 

Philadelphia

106.62

 

105.55

 

1.0

 

 

93.74

 

95.44

 

(1.8

)

Chicago

109.60

 

102.93

 

6.5

 

 

94.69

 

93.54

 

1.2

 

San Antonio

87.16

 

82.57

 

5.6

 

 

86.16

 

82.76

 

4.1

 

Boston

131.01

 

130.96

 

0.0

 

 

105.10

 

115.49

 

(9.0

)

 

 

21

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Pro Rata Share of Rooms Owned

 

 

 

Hotels

 

Room Count at

September 30, 2007

Consolidated hotels in continuing operations

83

 

 

 

24,082

 

Unconsolidated hotel operations

4

 

 

 

647

 

Total hotels

87

 

 

 

24,729

 

 

 

 

 

 

 

 

50% joint ventures

17

 

 

 

(2,032

)

60% joint ventures

1

 

 

 

(214

)

75% joint ventures

1

 

 

 

(55

)

90% joint ventures

3

 

 

 

(68

)

97% joint venture

1

 

 

 

(10

)

Total owned rooms by joint venture partners

 

 

 

 

(2,379

)

Pro rata share of rooms owned

 

 

 

 

22,350

 

 

Capital Expenditures (dollars in thousands)

 

 

Three Months Ended September 30,

 

Nine Months Ended

September 30,

 

2007

 

2006

 

2007

 

2006

Improvements and additions to consolidated hotels

$47,984

 

 

$38,550

 

 

$187,942

 

 

$108,999

 

Joint venture partners’ prorata share of additions to hotels

(477

)

 

(511

)

 

(2,558

)

 

(1,029

)

Prorata share of unconsolidated additions to hotels

9,568

 

 

2,344

 

 

19,076

 

 

8,830

 

Total additions to hotels(1)

$57,075

 

 

$40,383

 

 

$204,460

 

 

$116,800

 

 

 

(1)

Includes capitalized interest, property taxes, ground leases and certain employee costs.

 

 

22

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

 

 

Rooms

 

% Owned(a)

Renovation Completion Schedule

 

 

 

 

 

 

 

 

Completed 2006

 

 

 

Charleston (Mills House - Historic Downtown), SC - Holiday Inn(b)

214

 

 

Dana Point (Doheny Beach), CA - Doubletree Guest Suites

195

 

 

Minneapolis (Airport), MN - Embassy Suites(b)

310

 

 

Napa Valley, CA - Embassy Suites(b)

205

 

 

Nashville (Airport/Opryland Area), TN - Embassy Suites

296

 

 

Nashville (Opryland/Airport Briley Parkway), TN - Holiday Inn Select

383

 

 

Piscataway (Somerset), NJ - Embassy Suites(b)

221

 

 

Vienna (Tysons Corner), VA - Sheraton(b)

443

 

50%

 

 

 

 

Completed First Quarter 2007

 

 

 

Atlanta (Airport), GA - Embassy Suites(b)

232

 

 

Atlanta (Galleria), GA - Sheraton Suites(b)

278

 

 

Austin, TX - Doubletree Guest Suites(b)

189

 

90%

Baltimore (BWI Airport), MD - Embassy Suites(b)

251

 

90%

Charlotte (Southpark), NC - Doubletree Guest Suites

208

 

 

Chicago (Northshore/Deerfield-Northbrook), IL - Embassy Suites(b)

237

 

 

Houston (Medical Center), TX - Holiday Inn & Suites

287

 

 

Lexington (Lexington Green), KY - Hilton Suites(b)

174

 

 

Orlando (International Airport), FL - Holiday Inn Select(b)

288

 

 

Orlando (Walt Disney World Resort), FL - Doubletree Guest Suites

229

 

 

San Antonio (International Airport), TX - Holiday Inn Select(b)

397

 

 

San Francisco (Burlingame Airport), CA - Embassy Suites

340

 

 

San Francisco (Fisherman's Wharf), CA - Holiday Inn

585

 

 

San Francisco (South San Francisco Airport), CA - Embassy Suites(b)

312

 

 

St. Paul (Downtown), MN - Embassy Suites(b)

208

 

 

Secaucus (Meadowlands), NJ - Embassy Suites(b)

261

 

50%

Toronto (Yorkdale), CAN - Holiday Inn

370

 

 

 

 

 

 

Completed Second Quarter 2007

 

 

 

Atlanta (Gateway-Atlanta Airport), GA - Sheraton

395

 

 

Baton Rouge, LA - Embassy Suites(b)

223

 

 

Boston (Beacon Hill), MA - Holiday Inn Select

303

 

 

Chicago (Lombard/Oak Brook), IL - Embassy Suites(b)

262

 

50%

Chicago (O'Hare Airport), IL - Sheraton Suites(b)

296

 

 

Dallas (Market Center), TX – Embassy Suites

244

 

 

Parsippany, NJ - Embassy Suites(b)

274

 

50%

Philadelphia (Historic District), PA - Holiday Inn

364

 

 

Pittsburgh (At University Center-Oakland), PA - Holiday Inn Select(b)

251

 

 

San Rafael (Marin County/Conference Center), CA - Embassy Suites(b)

235

 

50%

Tampa (On Tampa Bay), FL - Doubletree Guest Suites(b)

203

 

 

Toronto (Airport), CAN - Holiday Inn Select

445

 

 

 

 

23

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Renovation Completion Schedule – (continued)

 

 

Rooms

 

% Owned(a)

Completed Third Quarter 2007

 

 

 

Boca Raton, FL - Embassy Suites(b)

263

 

 

Boston (Marlborough), MA – Embassy Suites(b)

229

 

 

Burlington (Hotel & Conference Center), VT - Sheraton(b)

309

 

 

Dallas (DFW International Airport-South), TX - Embassy Suites(b)

305

 

 

Jacksonville (Baymeadows), FL - Embassy Suites(b)

277

 

 

Miami (International Airport), FL - Embassy Suites(b)

316

 

 

Milpitas (Silicon Valley), CA - Embassy Suites(b)

266

 

 

Orlando (International Drive South), FL - Embassy Suites(b)

244

 

 

Orlando (North), FL - Embassy Suites

277

 

 

Phoenix (Tempe), AZ - Embassy Suites(b)

224

 

 

Raleigh, NC - Doubletree Guest Suites(b)

203

 

 

Santa Barbara (Goleta), CA - Holiday Inn

160

 

 

 

 

 

 

Fourth Quarter 2007 Completions

 

 

 

Atlanta (Perimeter Center), GA - Embassy Suites(b)

241

 

50%

Cocoa Beach (Oceanfront), FL - Holiday Inn

500

 

 

Corpus Christi, TX - Embassy Suites(b)

150

 

 

Dallas (Love Field), TX - Embassy Suites(b)

248

 

 

Ft. Lauderdale (17th Street), FL - Embassy Suites(b)

358

 

 

Ft. Lauderdale (Cypress Creek), FL - Sheraton Suites(b)

253

 

 

Los Angeles (Anaheim Located near Disneyland Park), CA - Embassy Suites(b)

222

 

 

Los Angeles (El Segundo International Airport South), CA - Embassy Suites

349

 

97%

Orlando (International Drive Resort), FL - Holiday Inn

652

 

 

Philadelphia (Society Hill), PA - Sheraton(b)

365

 

 

Phoenix (Biltmore), AZ - Embassy Suites(b)

232

 

 

Raleigh (Crabtree), NC - Embassy Suites(b)

225

 

50%

San Antonio (International Airport), TX - Embassy Suites(b)

261

 

50%

San Diego (On the Bay), CA - Holiday Inn

600

 

 

Wilmington, DE - Doubletree(b)

244

 

90%

 

 

 

 

 

 

24

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Renovation Completion Schedule – (continued)

 

 

Rooms

 

% Owned(a)

2008 Completions

 

 

 

Atlanta (Buckhead), GA – Embassy Suites(b)

316

 

 

Austin (Central), TX - Embassy Suites(b)

260

 

50%

Birmingham, AL - Embassy Suites(b)

242

 

 

Bloomington, MN - Embassy Suites(b)

218

 

 

Charlotte, NC – Embassy Suites(b)

274

 

50%

Dallas (Park Central), TX – Westin

536

 

60%

Deerfield Beach (Boca Raton/Deerfield Beach Resort), FL - Embassy Suites(b)

244

 

 

Indianapolis (North), IN - Embassy Suites(b)

221

 

75%

Kansas City (Overland Park), KS – Embassy Suites(b)

199

 

50%

Kansas City (Plaza), MO - Embassy Suites(b)

266

 

50%

Myrtle Beach (At Kingston Plantation), SC - Embassy Suites

255

 

 

Myrtle Beach Resort, SC - Hilton

385

 

 

New Orleans, LA – Embassy Suites(b)

370

 

 

New Orleans (French Quarter), LA – Holiday Inn

374

 

 

Oxnard (Mandalay Beach Resort & Conference Center), CA – Embassy Suites

248

 

 

Phoenix (Crescent Hotel), AZ – Sheraton(b)

342

 

 

San Antonio (N.W. I-10), TX - Embassy Suites(b)

216

 

50%

San Francisco (Union Square), CA – Crowne Plaza

403

 

 

Santa Monica (Beach at the Pier), CA – Holiday Inn

132

 

 

 

 

Projected Renovation Program Summary ($ in millions)

 

 

Completion Date

 

Project Cost

 

Hotels Completed

 

Rooms Completed

Fourth Quarter 2006

 

 

$

46

 

 

 

8

 

 

 

2,267

 

First Quarter 2007

 

 

 

85

 

 

 

17

 

 

 

4,846

 

Second Quarter 2007

 

 

 

60

 

 

 

12

 

 

 

3,495

 

Third Quarter 2007

 

 

 

66

 

 

 

12

 

 

 

3,073

 

Fourth Quarter 2007

 

 

 

83

 

 

 

15

 

 

 

4,900

 

2008

 

 

 

100

 

 

 

19

 

 

 

5,501

 

Total(1)

 

 

$

440

 

 

 

83

 

 

 

24,082

 

 

 

(1)

Does not include redevelopment costs and represents our prorata share of project costs.

 

Unconsolidated Operations

 

Rooms

 

% Owned(a)

Hays, KS – Holiday Inn(b)

191

 

50%

New Orleans (Chateau LeMoyne -In French Quarter/Historic Area), LA –
Holiday Inn(b)


171

 

50%

Salina, KS – Holiday Inn(b)

192

 

50%

Salina (I-70), KS – Holiday Inn Express & Suites(b)

93

 

50%

 

 

(a)

We own 100% of the real estate interests unless otherwise noted.

 

(b)

This hotel is encumbered by mortgage debt or capital lease obligation.

 

25

FelCor Lodging Trust Incorporated

Supplemental Information

Three and Nine Months Ended September 30, 2007

 

 

Hotels Sold in 2007

 

 

 

Property

 

 

Date

Sold

 

 

 

Rooms

 

Total Gross Sales

Price Per Quarter

(in millions)

Hotels sold during the quarter ended March 31, 2007:

 

 

 

 

 

 

 

 

Los Angeles (Covina/I-10) Covina, CA – Embassy Suites(a)

Feb 2007

 

155

 

 

 

 

 

Palm Desert (Palm Desert Resort), CA – Embassy Suites

Feb 2007

 

202

 

 

 

 

 

Stamford, CT – Holiday Inn Select

March 2007

 

198

 

 

 

 

 

 

 

 

555

 

 

$

64.7

 

Hotels sold during the quarter ended June 30, 2007:

 

 

 

 

 

 

 

 

Houston (Intercontinental Airport), TX – Holiday Inn

May 2007

 

415

 

 

 

 

 

Dallas (Park Central), TX – Sheraton

May 2007

 

438

 

 

 

 

 

Dallas (Park Central Area), TX – Embassy Suites

June 2007

 

279

 

 

 

 

 

Dallas (West End/Convention Center) TX – Hampton Inn

June 2007

 

309

 

 

 

 

 

Lexington, KY – Sheraton Suites

June 2007

 

155

 

 

 

 

 

Brunswick, GA – Embassy Suites

June 2007

 

130

 

 

 

 

 

Troy – (North - Auburn Hills), MI – Embassy Suites

June 2007

 

251

 

 

 

 

 

Tulsa (I-44), OK – Embassy Suites

June 2007

 

244

 

 

 

 

 

 

 

 

2,221

 

 

$

126.3

 

 

 

(a)

This hotel was sold by one of our 50% owned unconsolidated joint ventures for gross proceeds of $22.0 million.

 

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