Condor Hospitality Trust Reports First Quarter 2021 Results

Rhea-AI Summary

Condor Hospitality Trust (CDOR) reported a net loss of $2.4 million in Q1 2021, an improvement from a $3.2 million loss in Q1 2020. RevPAR for the portfolio decreased 33.1% to $53.16, with occupancy down 7.1% to 59.46%. Adjusted Funds from Operations were ($1.3 million) compared to $1.1 million in the prior year. Despite challenges due to the COVID-19 pandemic, hotel EBITDA remains positive since May 2020. The company experienced a cash burn of $1.4 million, consistent with previous quarters, and all hotels are operational with enhanced health measures.

Positive

• Net loss improved to ($2.4 million) from ($3.2 million) year-over-year.
• Portfolio RevPAR decline of 33.1% is less severe than the 34.3% national decline.
• Positive cash flow reported from May 2020 onwards.
• RevPAR penetration index averaged 108.9% for Q1 2021.
• All hotels reopened with enhanced health and sanitation measures.

Negative

• Same-Store RevPAR decreased 33.1% to $53.16.
• Adjusted EBITDAre fell 69.0% to $0.8 million.
• Same-Store occupancy declined 7.1% to 59.46%.
• Adjusted FFO decreased to ($1.3 million) from $1.1 million year-over-year.
• Going concern qualification issued by the auditor due to lender issues.

Condor Hospitality Trust, Inc. (NYSE American: CDOR) (the “Company”) today announced results of operations for the first quarter 2021.

FIRST QUARTER 2021 FINANCIAL HIGHLIGHTS

• Portfolio Revenue Per Available Room (RevPAR): The 15 hotels Same-Store RevPAR in the first quarter 2021 decreased 33.1% to $53.16 compared to the first quarter 2020. Same-Store Average Daily Rate (ADR) decreased 28.1% to $89.41 and Same-Store occupancy decreased 7.1% to 59.46% in the first quarter 2021 compared to the same period in 2020. April 2021 RevPAR was $73.80 based on an occupancy of 70.6% and a $104.56 ADR.
• Net Loss: Net Loss Attributable to Common Shareholders was ($2.4) million or ($0.20) per diluted share in the first quarter 2021 compared to ($3.2) million or ($0.27) per diluted share for the same period in 2020.
• Adjusted EBITDAre*: Adjusted EBITDAre decreased in the first quarter 2021 69.0% to $0.8 million from $2.7 million for the same period in 2020.
• Adjusted Funds from Operations*: Adjusted Funds from Operations decreased $2.4 million in the first quarter 2021 to ($1.3) million or ($0.11) per diluted share compared to $1.1 million or $0.09 per diluted share in the same period in 2020.
• Same-Store Hotel EBITDA*: Same-Store Hotel EBITDA was $2.0 million in the first quarter 2021, a decrease of 50.9% from the same period in 2020. Margin contracted 690 bps to 20.7% in the first quarter 2021 compared to 27.6% in the same period in 2020.

MANAGEMENT COMMENTARY

Bill Blackham, Condor’s Chief Executive Officer, commented: “The hospitality industry including Condor has faced unprecedented challenges appearing in the first quarter 2020 brought by the COVID-19 pandemic and the resulting near evaporation of demand. Beginning in March of 2020 Condor acted quickly to substantially reduce portfolio operating expenses, reduce corporate overhead and enhance our sales efforts to capture more than our fair share of greatly reduced demand. Our hotel portfolio returned to positive cash flow beginning in May 2020 and has remained positive throughout the remainder of 2020 and the first quarter of 2021. We undertook steps to enhance liquidity including the successful completion of an amendment to our credit facility providing important covenant compliance deferrals and access to $13.4 million of revolving credit availability through the January 2023 extended maturity.

In the first quarter 2021 our portfolio continued outperforming, as compared to the overall industry which recorded 34.3% RevPAR declines nationally in the upscale chain scale as reported by Smith Travel Research, and our select service public REIT peer group, by having one of the lowest first quarter RevPAR decline compared to the same period in 2020 and at 20.7% one of the highest hotel portfolio EBITDA margins. When eliminating the two Aloft hotels and the Indigo hotel in our portfolio which have larger food and beverage platforms the modified portfolio proforma margins increased to 26.9%. Seasonal lower demand early in the first quarter changed considerably in later February with increased leisure travel driving the portfolio occupancy to 59.5% and the portfolio is positioned to enjoy benefits from the continuing increase leisure demand that we are currently experiencing and that we expect into second quarter 2021 having achieved a 70.6% portfolio occupancy for the month of April 2021. We anticipate that business travel led initially by local business demand, and then regional demand, will begin late in the second quarter and improve over the remainder of 2021.

As a result of a lender that acquired the loan on our Leawood hotel late in December 2020 refusing to grant a financial covenants waiver for the fourth quarter 2020 that was granted by the previous lender for the first three quarters of 2020, the Company’s auditor issued an audit opinion with a going concern qualification. This waiver refusal on a technical covenant on a loan where all payments are current occurred in the midst of an environment where industry practice has lenders granting such waivers so as a result the Company is underway with a process to identify alternatives to refinance the loan.”

Condor Hospitality Trust
Selected Statistical and Financial Data
As of and for the three months ended March 31,
(in thousands except statistical and per share amounts)
		(Unaudited)
		Three months ended March 31,
		2021			2020
Net Loss		$	(2,187)		$	(3,025)
Diluted Earnings (Loss) per Share		$	(0.20)		$	(0.27)
Adjusted EBITDAre*		$	846		$	2,725
Hotel EBITDA - Same-Store*		$	1,996		$	4,067
Hotel EBITDA Margin - Same-Store*			20.7%			27.6%
Adjusted FFO*		$	(1,326)		$	1,049
Adjusted FFO per Diluted Share*		$	(0.11)		$	0.09
Same-Store RevPAR*		$	53.16		$	79.50
Same-Store Occupancy*			59.46%			63.97%
Same-Store ADR*		$	89.41		$	124.28

The following table summarizes key hotel statistics during the first quarter of 2021, amid the COVID-19 pandemic, compared to the first quarter of 2020:

		January 2021			February 2021			March 2021			Three Months ended March 31, 2021			January 2020			February 2020			March 2020			Three Months ended March 31, 2020
Same-Store ADR*		$	84.88		$	88.31		$	93.51		$	89.41		$	123.34		$	127.06		$	120.91		$	124.28
Same-Store Occupancy*			51.42%			56.37%			70.29%			59.46%			71.89%			79.40%			41.58%			63.97%
Same-Store RevPAR*		$	43.64		$	49.77		$	65.73		$	53.16		$	88.67		$	100.89		$	50.27		$	79.50
Hotel EBITDA – Same-Store*		$	299		$	532		$	1,165		$	1,996		$	1,702		$	2,244		$	121		$	4,067
Hotel EBITDA Margin – Same-Store*			11.0%			18.9%			28.4%			20.7%			30.3%			37.7%			3.8%			27.6%

*Please see the Reg. G reconciliation tables at the end of this release. Financial data presented above includes results from prior to our 100% ownership of Atlanta Aloft.

OPERATIONS UPDATE

• All Hotels Open: All of Condor’s hotels are open with expanded and repetitive health and sanitation measures in place. The Company in 2020 had closed 2 of its hotels in April but resumed full operations in July.
• Enhanced Asset Management Efforts: The Company working together with its third-party management companies has expanded sales efforts to include COVID-19 specific demand related to medical, hospital and university services and for the numerous disaster recovery and infrastructure improvement and reconstruction projects that create demand in our hotel markets. We continue to aggressively pursue leisure, government, athletic and local and regional business related to travel in our hotel markets. Since March 2020, the Company, working with our third-party management companies, have implemented cost elimination/cost reduction initiatives at our hotels through a variety of measures involving labor, services, amenities, contracts, and taxes. As a result of these initiatives, Hotel EBITDA has been positive each month from May 2020 through the end of March 2021 and our RevPAR penetration index has remained above 100% fair share averaging 108.9% for the first quarter 2021 compared to 111.3% the same quarter in the previous year.

		May 2020			June 2020			July 2020			August 2020			September 2020			October 2020			November 2020			December 2020			January 2021			February 2021			March 2021
Hotel EBITDA		$	14		$	438		$	385		$	772		$	405		$	701		$	180		$	164		$	299		$	532		$	1,165

		January 2020			February 2020			March 2020			Q1 2020			January 2021			February 2021			March 2021			Q1 2021
Hotel RevPAR Penetration Index			117.1%			110.1%			102.5%			111.3%			111.2%			103.2%			109.3%			108.9%

CASH BURN BEFORE CAPITAL EXPENDITURES

The Company had a first quarter 2021 cash burn of $1.4 million compared to $1.4 million in the third quarter and $2.1 million in the fourth quarter 2020. The majority of the cash burn was in the initial 60 days with March achieving breakeven before non-recurring expenses. The cash burn analysis includes $0.2 million of principal amortization for the quarter.

(in thousands)		Three months ended March 31, 2021			One month ended March 31, 2021
Hotel EBITDA		$	1,996		$	1,165
Less: recurring general and administrative expense, excluding stock compensation expense			(1,111)			(377)
Less: unallocated hotel and property operations expense			(31)			(4)
Adjusted Corporate EBITDA		$	854		$	784
Less: debt service costs			(2,210)			(771)
Cash burn		$	(1,356)		$	13

CORPORATE LOAN FACILITY

On November 19, 2020 the Company amended the credit agreement for its $130 million revolving credit facility. The key modifications and enhancements include:

• Loan maturity was extended to January 2, 2023
• Financial covenant compliance was suspended until September 30, 2021
• Debt yield and leverage ratio covenants were eliminated and replaced with a borrowing base debt service coverage ratio
• The debt service and fixed charge covenants, when applicable on September 30, 2021, were eased from 1.5X to 1.0X and ramp up to 1.5X on September 30, 2022. Importantly, beginning with the September 30, 2021 calculations, quarterly figures are annualized until the quarter ending June 30, 2022 which will use the trailing 12 months figures
• Borrowing availability was increased to $13.4 million
• Dividends suspension was modified to allow the payment of common and preferred dividends when defined financial conditions are achieved.

BALANCE SHEET AND CAPITAL MARKETS ACTIVITY

As of March 31, 2021, the Company had cash and cash equivalents (including restricted cash) of $7.7 million and available revolver borrowing capacity of $10.2 million. As of March 31, 2021, the Company had total outstanding long-term debt of $169.7 million associated with assets held for use with a weighted average maturity of 1.9 years and a weighted average interest rate of 3.79%.

CAPITAL INVESTMENTS

The Company invested $0.3 million in capital improvements throughout the portfolio in the three months ended March 31, 2021 to upgrade its properties and maintain brand standards.

OUTLOOK AND GUIDANCE

The Company has suspended guidance until further notice.

DIVIDENDS

On November 19, 2020, the Company amended its credit facility to permit payment of cash dividends to common and preferred shareholder when defined financial conditions are achieved. The Company is not currently permitted to pay cash dividends pursuant to the terms of its credit facility.

EARNINGS CALL

The Company will not be conducting a first quarter earnings conference call.

About Condor Hospitality Trust, Inc.

Condor Hospitality Trust, Inc. (NYSE American: CDOR) is a self-administered real estate investment trust that specializes in the investment and ownership of upper midscale and upscale, premium-branded, select-service, extended-stay, and limited-service hotels in the top 100 Metropolitan Statistical Areas (“MSAs”) with a particular focus on the top 20 to 60 MSAs. The Company currently owns 15 hotels in 8 states. Condor’s hotels are franchised by a number of the industry’s most well-regarded brand families including Hilton, Marriott, and InterContinental Hotels.

Forward-Looking Statement

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “estimate”, “believe”, “continue”, “project”, “plan”, the negative version of these words or other similar expressions. Readers are cautioned not to place undue reliance on any such forward-looking statements.

All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Factors which could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in economic conditions generally and the real estate market specifically, legislative/regulatory changes (including changes to laws governing the taxation of real estate investment trusts), availability of capital, risks associated with debt financing, interest rates, competition, supply and demand for hotel rooms in our current and proposed market areas, policies and guidelines applicable to real estate investment trusts, risks related to uncertainty and disruption in global economic markets as a result of COVID-19 (commonly referred to as the coronavirus), and other risks and uncertainties described herein, and in our filings with the Securities and Exchange Commission (“SEC”) from time to time. These risks and uncertainties should be considered in evaluating any forward-looking statements.

The forward-looking statements represent Condor’s views as of the date on which such statements were made. Condor anticipates that subsequent events and developments may cause those views to change. These forward-looking statements should not be relied upon as representing Condor’s views as of any date subsequent to the date hereof. Condor expressly disclaims a duty to provide updates to forward-looking statements, whether as a result of new information, future events or other occurrences.

Additional factors that may affect the Company’s business or financial results are described in the risk factors included in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K

SELECTED FINANCIAL DATA:

Condor Hospitality Trust, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and per share data)
		As of
		March 31, 2021			December 31, 2020
Assets
Investment in hotel properties, net		$	263,506		$	265,831
Cash and cash equivalents			3,485			3,686
Restricted cash, property escrows			4,228			3,794
Accounts receivable, net			1,092			652
Prepaid expenses and other assets			956			1,230
Total Assets		$	273,267		$	275,193
Liabilities and Equity
Liabilities
Accounts payable, accrued expenses, and other liabilities		$	5,945		$	5,372
Dividends and distributions payable			924			762
Land option liability			8,497			8,497
Derivative liabilities, at fair value			744			880
Convertible debt, at fair value			15,022			16,875
Long-term debt, net of deferred financing costs			168,111			166,526
Total Liabilities			199,243			198,912
Equity
Shareholders' Equity
Preferred stock, 40,000,000 shares authorized:
6.25% Series E, 925,000 shares authorized, $.01 par value, 925,000 shares outstanding, liquidation preference of $10,174 and $10,012			10,050			10,050
Common stock, $.01 par value, 200,000,000 shares authorized; 12,019,769 and 12,014,743 shares outstanding			120			120
Additional paid-in capital			233,425			233,332
Accumulated deficit			(169,613)			(167,263)
Total Shareholders' Equity			73,982			76,239
Noncontrolling interest in consolidated partnership (Condor Hospitality Limited Partnership), redemption value of $15 and $17			42			42
Total Equity			74,024			76,281
Total Liabilities and Equity		$	273,267		$	275,193

Condor Hospitality Trust, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
		Three months ended March 31,
		2021			2020
Revenue
Room rentals and other hotel services		$	9,644		$	13,227
Operating Expenses
Hotel and property operations			7,679			9,815
Depreciation and amortization			2,643			2,710
General and administrative			1,260			1,193
Strategic alternatives, net			40			144
Total operating expenses			11,622			13,862
Operating loss			(1,978)			(635)
Net loss on disposition of assets			(3)			(9)
Equity in earnings of joint venture			-			80
Net gain (loss) on derivatives and convertible debt			1,988			(759)
Other income (expense), net			42			(28)
Interest expense			(2,209)			(1,980)
Loss before income taxes			(2,160)			(3,331)
Income tax benefit (expense)			(27)			306
Net loss			(2,187)			(3,025)
Loss attributable to noncontrolling interest			-			1
Net loss attributable to controlling interests			(2,187)			(3,024)
Dividends declared and undeclared on preferred stock			(163)			(145)
Net loss attributable to common shareholders		$	(2,350)		$	(3,169)
Earnings (Loss) per Share
Total - Basic Earnings (Loss) per Share		$	(0.20)		$	(0.27)
Total - Diluted Earnings (Loss) per Share		$	(0.20)		$	(0.27)

Reconciliation of Non-GAAP Financial Measures (Unaudited)

Non-GAAP financial measures are measures of our historical financial performance that are different from measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We report Funds from Operations (“FFO”), Adjusted FFO (“AFFO”), Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”), EBITDA for real estate (“EBITDAre”), Adjusted EBITDAre, and Hotel EBITDA as non-GAAP measures that we believe are useful to investors as key measures of our operating results and which management uses to facilitate a periodic evaluation of our operating results relative to those of our peers. Our non-GAAP measures should not be considered as an alternative to U.S. GAAP net earnings as an indication of financial performance or to U.S. GAAP cash flows from operating activities as a measure of liquidity. Additionally, these measures are not indicative of funds available to fund cash needs or our ability to make cash distributions as they have not been adjusted to consider cash requirements for capital expenditures, property acquisitions, debt service obligations, or other commitments.

FFO and AFFO

The following table reconciles net loss to FFO and AFFO for the three months ended March 31, 2021 and 2020. (in thousands). All amounts presented include our portion of the results of our unconsolidated Atlanta JV.

		Three months ended March 31,
Reconciliation of Net loss to FFO and AFFO		2021			2020
Net loss		$	(2,187)		$	(3,025)
Depreciation and amortization expense			2,643			2,710
Depreciation and amortization expense from JV			-			145
Net loss on disposition of assets			3			9
FFO			459			(161)
Dividends declared and undeclared on preferred stock			(163)			(145)
FFO attributable to common shares and common units			296			(306)
Net (gain) loss on derivatives and convertible debt			(1,988)			759
Strategic alternatives expense, net			40			144
Stock-based compensation expense			99			84
Amortization of deferred financing fees			227			275
Amortization of deferred financing fees from JV			-			93
AFFO attributable to common shares and common units		$	(1,326)		$	1,049

FFO attributable to common shares and common units - Basic		$	296		$	(306)
2020 Note interest and fair value adjustments			(1,593)			-
FFO attributable to common shares and common units - Diluted		$	(1,297)		$	(306)
FFO per common share and common unit - Basic		$	0.02		$	(0.03)
FFO per common share and common unit - Diluted		$	(0.08)		$	(0.03)
Weighted average common shares and common units - Basic FFO			11,996,576			11,955,628
Weighted average common shares and common units - Diluted FFO			16,023,217			11,955,628

AFFO attributable to common shares and common units - Basic and Diluted		$	(1,326)		$	1,049
AFFO per common share and common unit - Basic		$	(0.11)		$	0.09
AFFO per common share and common unit - Diluted		$	(0.11)		$	0.09
Weighted average common shares and common units - Basic AFFO			11,996,576			11,955,628
Weighted average common shares and common units - Diluted AFFO			11,996,576			11,963,762

We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net earnings or loss computed in accordance with GAAP, excluding gains or losses from sales of real estate assets, impairment, and the depreciation and amortization of real estate assets. FFO is calculated both for the Company in total and as FFO attributable to common shares and common units, which is FFO reduced by preferred stock dividends. AFFO is FFO attributable to common shares and common units adjusted to exclude items we do not believe are representative of the results from our core operations, including non-cash gains or losses on derivatives and convertible debt, stock-based compensation expense, amortization of certain fees, losses on debt extinguishment, and in-kind dividends above stated rates, and cash charges for acquisition and equity transaction and strategic alternatives costs. All REITs do not calculate FFO and AFFO in the same manner; therefore, our calculation may not be the same as the calculation of FFO and AFFO for similar REITs.

We consider FFO to be a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, we believe that FFO provides a meaningful indication of our performance. We believe that AFFO provides useful supplemental information to investors regarding our ongoing operating performance that, when considered with net income and FFO, is beneficial to an investor’s understanding of our operating performance. We present FFO and AFFO per common share and common unit because our common units are redeemable for common shares. We believe it is meaningful for the investor to understand FFO and AFFO applicable to common shares and common units.

EBITDA, EBITDAre, Adjusted EBITDAre, Hotel EBITDA and Hotel EBITDA Proforma

The following table reconciles net loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA for the three months ended March 31, 2021 and 2020 (in thousands). All amounts presented our portion of the results of our unconsolidated Atlanta JV.

		Three months ended March 31,
Reconciliation of Net loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA		2021			2020
Net loss		$	(2,187)		$	(3,025)
Interest expense			2,209			1,980
Interest expense from JV			-			225
Income tax expense (benefit)			27			(306)
Depreciation and amortization expense			2,643			2,710
Depreciation and amortization expense from JV			-			145
EBITDA			2,692			1,729
Net loss on disposition of assets			3			9
EBITDAre			2,695			1,738
Net loss (gain) on derivatives and convertible debt			(1,988)			759
Stock-based compensation expense			99			84
Strategic alternatives, net			40			144
Adjusted EBITDAre			846			2,725
General and administrative expense, excluding stock compensation expense			1,161			1,109
Other (income) expense, net			(42)			28
Unallocated hotel and property operations expense			31			94
Hotel EBITDA		$	1,996		$	3,956
Revenue		$	9,644		$	13,227
JV revenue			-			1,218
Condor and JV revenue		$	9,644		$	14,445
Hotel EBITDA as a percentage of revenue			20.7%			27.4%

		Three months ended March 31,
Reconciliation of Hotel EBITDA to Hotel EBITDA Proforma		2021
Hotel EBITDA		$	1,996
Less: Proforma Property Exclusions			10
Hotel EBITDA Proforma**		$	2,006
Total Company and JV revenue		$	9,644
Less: Proforma Property Exclusions			(2,185)
Hotel Revenue Proforma**		$	7,459
Proforma Margin			26.9%
**Proforma amounts do not include results for full service food and beverage properties, Atlanta Aloft, Leawood Aloft, and College Park Hotel Indigo

 

		Three months ended March 31, 2021			Three months ended December 31, 2020			Three months ended September 30, 2020
Reconciliation of Hotel EBITDA to Cash Burn
Hotel EBITDA		$	1,996		$	1,045		$	1,562
Less: recurring general and administrative expense, excluding stock compensation expense			(1,111)			(968)			(1,013)
Less: unallocated hotel and property operations expense			(31)			(61)			(57)
Adjusted Corporate EBITDA		$	854		$	16		$	492
Less: debt service costs			(2,210)			(2,108)			(1,865)
Cash burn		$	(1,356)		$	(2,092)		$	(1,373)

We calculate EBITDA, EBITDAre, and Adjusted EBITDAre by adding back to net earnings or loss certain non-operating expenses and certain non-cash charges which are based on historical cost accounting that we believe may be of limited significance in evaluating current performance. We believe these adjustments can help eliminate the accounting effects of depreciation and amortization and financing decisions and facilitate comparisons of core operating profitability between periods. In calculating EBITDA, we add back to net earnings or loss interest expense, loss on debt extinguishment, income tax expense, and depreciation and amortization expense. NAREIT adopted EBITDAre in order to promote an industry-wide measure of REIT operating performance. We adjust EBITDA by adding back net gain/loss on disposition of assets and impairment charges to calculate EBITDAre. To calculate Adjusted EBITDAre, we adjust EBITDAre to add back acquisition and terminated transactions expense and equity transactions and strategic alternatives expense, which are cash charges. We also add back stock –based compensation expense and gain/loss on derivatives and convertible debt, which are non-cash charges. EBITDA, EBITDAre, and Adjusted EBITDAre, as presented, may not be comparable to similarly titled measures of other companies.

We believe EBITDA, EBITDAre, and Adjusted EBITDAre to be useful additional measures of our operating performance, excluding the impact of our capital structure (primarily interest expense), our asset base (primarily depreciation and amortization expense), and other items we do not believe are representative of the results from our core operations.

The Company further excludes general and administrative expenses, other non-operating income or expense, and certain hotel and property operations expenses that are not allocated to individual properties in assessing hotel performance (primarily certain general liability and other insurance costs, land lease costs, and office and banking fees) from Adjusted EBITDAre to calculate Hotel EBITDA. Hotel EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

Hotel EBITDA is intended to isolate property level operational performance over which the Company’s hotel operators have direct control. We believe Hotel EBITDA is helpful to investors as it better communicates the comparability of our hotels’ operating results for all of the Company’s hotel properties and is used by management to measure the performance of the Company’s hotels and the effectiveness of the operators of the hotels.

Same-Store Revenue and Hotel EBITDA

The following tables present our same-store revenue, Hotel EBITDA, and Hotel EBITDA margin broken down by property type for the three months ended March 31, 2021 and 2020 (in thousands) and reconcile these same-store measures to total revenue and Hotel EBITDA as presented above. Same-store results include all our hotels owned at December 31, 2020. Results for the hotels for periods prior to our ownership were provided to us by prior owners and have not been adjusted by us or audited or reviewed by our independent auditors. All amounts presented include our portion of the results of our unconsolidated Atlanta Aloft JV. Results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included here only for comparison purposes.

		Revenue - Reconciliation of Actual to Same-Store
		Three months ended March 31,
		2021			2020
Condor and JV Revenue - Actual		$	9,644		$	14,445
Revenue earned on properties disposed of prior to March 31, 2021 during the period of ownership			-			-
Revenue earned related to joint venture interest in the Atlanta JV prior to acquisition of this interest on February 14, 2020			-			304
Total Revenue - Same-Store		$	9,644		$	14,749

		Hotel EBITDA - Reconciliation of Actual to Same-Store
		Three months ended March 31,
		2021			2020
Condor and JV Hotel EBITDA - Actual		$	1,996		$	3,956
Hotel EBITDA earned on properties disposed of prior to March 31, 2021 during the period of ownership			-			-
Hotel EBITDA earned related to joint venture interest in the Atlanta JV prior to acquisition of this interest on February 14, 2020			-			111
Total Hotel EBITDA - Same-Store		$	1,996		$	4,067

		Hotel EBITDA Margin
		Three months ended March 31,
		2021			2020
Total Hotel EBITDA Margin			20.7%			27.6%

The following tables present our monthly results presented reconciling net income (loss) to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA, as well as Hotel EBITDA Same-Store and Hotel EBITDA Same-Store margins.

Reconciliation of Net loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA		Month ending May 31, 2020			Month ending June 30, 2020			Month ending July 31, 2020			Month ending Aug 31, 2020			Month ending Sept 30, 2020			Month ending Oct 31, 2020			Month ending Nov 30, 2020			Month ending Dec 31, 2020			Month ending January 30, 2021			Month ending February 28, 2021			Month ending March 31, 2021
Net income (loss)		$	(1,999)		$	(1,571)		$	(1,670)		$	(1,816)		$	(1,321)		$	4,365		$	(1,826)		$	(7,578)		$	(1,662)		$	(1,529)		$	1,004
Interest expense			698			676			707			708			688			743			794			791			755			693			761
Interest expense from JV			-			-			-			-			-			-			-			-			-			-			-
Income tax expense (benefit)			9			(79)			9			9			9			9			9			(53)			9			9			9
Depreciation and amortization expense			926			926			926			926			927			903			904			882			880			881			882
Depreciation and amortization expense from JV			-			-			-			-			-			-			-			-			-			-			-
EBITDA		$	(366)		$	(48)		$	(28)		$	(173)		$	303		$	6,020		$	(119)		$	(5,958)		$	(18)		$	54		$	2,656
Net loss on disposition of assets			-			-			-			1			1			1			2			2			1			2			-
EBITDAre		$	(366)		$	(48)		$	(28)		$	(172)		$	304		$	6,021		$	(117)		$	(5,956)		$	(17)		$	56		$	2,656
Net loss (gain) on derivatives and convertible debt			-			(18)			(3)			(3)			(126)			(3)			(3)			5,728			-			-			(1,988)
Stock-based compensation expense			18			46			10			23			37			(123)			17			43			17			17			65
Acquisition and terminated transactions expense			-			-			-			-			-			-			-			-			-			-			-
Strategic alternatives, net			17			52			40			494			602			(5,577)			-			11			-			-			40
Adjusted EBITDAre		$	(331)		$	32		$	19		$	342		$	817		$	318		$	(103)		$	(174)		$	-		$	73		$	773
General and administrative expense, excluding stock compensation expense			313			276			337			405			81			324			318			326			278			456			427
Other expense (income), net			(2)			58			2			1			(499)			34			(61)			2			(2)			(1)			(39)
Unallocated hotel and property operations expense			34			72			27			24			6			25			26			10			23			4			4
Hotel EBITDA		$	14		$	438		$	385		$	772		$	405		$	701		$	180		$	164		$	299		$	532		$	1,165
Hotel EBITDA earned on properties owned at December 31, 2020 prior to ownership			-			-			-			-			-			-			-			-			-			-			-
Hotel EBITDA - Same-Store		$	14		$	438		$	385		$	772		$	405		$	701		$	180		$	164		$	299		$	532		$	1,165
Revenue		$	1,706		$	2,280		$	2,782		$	3,058		$	3,001		$	3,215		$	2,560		$	2,534		$	2,729		$	2,817		$	4,098
JV Revenue			-			-			-			-			-			-			-			-			-			-			-
Condor and JV Revenue			1,706			2,280			2,782			3,058			3,001			3,215			2,560			2,534			2,729			2,817			4,098
Revenue earned on properties owned at December 31, 2020 prior to ownership			-		-	-			-			-			-			-			-			-			-			-			-
Total Revenue - Same-Store		$	1,706		$	2,280		$	2,782		$	3,058		$	3,001		$	3,215		$	2,560		$	2,534		$	2,729		$	2,817		$	4,098
Hotel EBITDA - Same-Store as a percentage of revenue			0.8%			19.2%			13.8%			25.2%			13.5%			21.8%			7.0%			6.5%			11.0%			18.9%			28.4%

Reconciliation of Net income (loss) to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA		Month ending January 30, 2020			Month ending February 28, 2020			Month ending March 31, 2020
Net income (loss)		$	(724)		$	124		$	(2,425)
Interest expense			606			664			710
Interest expense from JV			169			56			-
Income tax expense (benefit)			5			5			(316)
Depreciation and amortization expense			804			952			954
Depreciation and amortization expense from JV			109			36			-
EBITDA		$	969		$	1,837		$	(1,077)
Net loss on disposition of assets			2			1			6
EBITDAre		$	971		$	1,838		$	(1,071)
Net loss on derivatives and convertible debt			-			-			759
Stock-based compensation expense			32			30			22
Strategic alternatives, net			235			(137)			46
Adjusted EBITDAre		$	1,238		$	1,731		$	(244)
General and administrative expense, excluding stock compensation expense			350			457			302
Other expense, net			10			9			9
Unallocated hotel and property operations expense			18			22			54
Hotel EBITDA		$	1,616		$	2,219		$	121
Hotel EBITDA earned on properties owned at December 31, 2020 prior to ownership			86			25			-
Hotel EBITDA - Same-Store		$	1,702		$	2,244		$	121
Revenue		$	4,511		$	5,542		$	3,174
JV Revenue			890			328			-
Condor and JV Revenue			5,401			5,870			3,174
Revenue earned on properties owned at December 31, 2020 prior to ownership			223			81			-
Total Revenue - Same-Store		$	5,624		$	5,951		$	3,174
Hotel EBITDA - Same-Store as a percentage of revenue			30.3%			37.7%			3.8%

Condor Hospitality Trust, Inc. Operating Statistics

The following tables present our same-store occupancy, ADR, and RevPAR for all our hotels owned at December 31, 2020. Same-store occupancy, ADR, and RevPAR reflect the performance of hotels during the entire period, regardless of our ownership during the period presented. Results for the hotels for periods prior to our ownership were provided to us by prior owners and have not been adjusted by us or audited or reviewed by our independent auditors. The performance metrics for the hotel acquired through our Atlanta JV, also presented below, reflect 100% of the operating results of the property, including our interest and the interest of our partner.

		Three months ended March 31,
		2021								2020
		Occupancy		ADR			RevPAR			Occupancy		ADR			RevPAR
Solomons Hilton Garden Inn		54.82%		$	93.12		$	51.05		59.12%		$	123.08		$	72.77
Atlanta Hotel Indigo		49.66%		$	82.83		$	41.14		67.47%		$	102.33		$	69.05
Jacksonville Courtyard by Marriott		69.27%		$	84.85		$	58.78		70.20%		$	121.25		$	85.12
San Antonio SpringHill Suites		44.60%		$	87.10		$	38.85		62.04%		$	132.12		$	81.97
Leawood Aloft		35.55%		$	77.49		$	27.54		51.52%		$	123.39		$	63.57
Lexington Home2 Suites		63.27%		$	81.74		$	51.72		60.30%		$	102.32		$	61.70
Round Rock Home2 Suites		66.65%		$	74.03		$	49.34		59.47%		$	109.07		$	64.87
Tallahassee Home2 Suites		79.81%		$	101.74		$	81.20		68.32%		$	135.96		$	92.88
South Haven Home2 Suites		86.34%		$	93.80		$	80.99		75.95%		$	111.65		$	84.80
Lake Mary Hampton Inn & Suites		67.06%		$	104.13		$	69.83		68.78%		$	149.89		$	103.10
Austin Residence Inn		71.27%		$	80.51		$	57.38		68.63%		$	129.18		$	88.65
El Paso Fairfield Inn		66.25%		$	75.01		$	49.70		74.22%		$	109.43		$	81.22
Austin TownePlace Suites		70.71%		$	79.11		$	55.94		61.93%		$	108.54		$	67.23
Summerville Home2 Suites		61.59%		$	99.89		$	61.52		67.26%		$	119.67		$	80.48
Atlanta Aloft		38.82%		$	110.70		$	42.97		55.46%		$	154.36		$	85.60
Total Same-Store Portfolio		59.46%		$	89.41		$	53.16		63.97%		$	124.28		$	79.50

Condor Hospitality Trust, Inc.

Property List | As of March 31, 2021

New Investment Platform | Acquired from January 1, 2012 - March 31, 2021

Hotel Name

City

State

Rooms

Acquisition Date

Purchase Price (in millions)

1

Hilton Garden Inn

Dowell/Solomons

MD

100

05/25/2012

$11.5

2

SpringHill Suites

San Antonio

TX

116

10/01/2015

$17.5

3

Courtyard by Marriott

Jacksonville

FL

120

10/02/2015

$14.0

4

Hotel Indigo

College Park

GA

142

10/02/2015

$11.0

5

Aloft1

Atlanta

GA

254

08/22/2016

$43.6

6

Aloft

Leawood

KS

156

12/14/2016

$22.5

7

Home2 Suites

Lexington

KY

103

03/24/2017

$16.5

8

Home2 Suites

Round Rock

TX

91

03/24/2017

$16.8

9

Home2 Suites

Tallahassee

FL

132

03/24/2017

$21.5

10

Home2 Suites

Southaven

MS

105

04/14/2017

$19.0

11

Hampton Inn & Suites

Lake Mary

FL

130

06/19/2017

$19.3

12

Fairfield Inn & Suites

El Paso

TX

124

08/31/2017

$16.4

13

Residence Inn

Austin

TX

120

08/31/2017

$22.4

14

TownePlace Suites

Austin

TX

122

01/18/2018

$19.8

15

Home2 Suites

Summerville

SC

93

02/21/2018

$16.3

Total Portfolio | March 31, 2021

1,908

$288.1

1 | Represents the purchase statistics from the purchase of this hotel by the originally 80% owned unconsolidated joint venture. The Company purchased the remaining 20% interest in the joint venture from our joint venture partner on February 14, 2020 for $7.3 million.

55 Dispositions | For Period January 1, 2015 - March 31, 2021
		Hotel Name		City		State		Rooms		Disposition Date		Gross Proceeds (in millions)
1		Super 8		West Plains		MO		49		01/15/2015		$1.5
2		Super 8		Green Bay		WI		83		01/29/2015		$2.2
3		Super 8		Columbus		GA		74		03/16/2015		$0.9
4		Sleep Inn & Suites		Omaha		NE		90		03/19/2015		$2.9
5		Savannah Suites		Chamblee		GA		120		04/01/2015		$4.4
6		Savannah Suites		Augusta		GA		172		04/01/2015		$3.4
7		Super 8		Batesville		AR		49		04/30/2015		$1.5
8		Days Inn		Ashland		KY		63		07/01/2015		$2.2
9		Comfort Inn		Alexandria		VA		150		07/13/2015		$12.0
10		Days Inn		Alexandria		VA		200		07/13/2015		$6.5
11		Super 8		Manhattan		KS		85		08/28/2015		$3.2
12		Quality Inn		Sheboygan		WI		59		10/06/2015		$2.3
13		Super 8		Hays		KS		76		10/14/2015		$1.9
14		Days Inn		Glasgow		KY		58		10/16/2015		$1.8
15		Super 8		Tomah		WI		65		10/21/2015		$1.4
16		Rodeway Inn		Fayetteville		NC		120		11/03/2015		$2.6
17		Savannah Suites		Savannah		GA		160		12/22/2015		$4.0
		Total 2015						1,673				$54.7
18		Super 8		Kirksville		MO		61		01/04/2016		$1.5
19		Super 8		Lincoln		NE		133		01/07/2016		$2.8
20		Savannah Suites		Greenville		SC		170		01/08/2016		$2.7
21		Super 8		Portage		WI		61		03/30/2016		$2.4
22		Super 8		O'Neill		NE		72		04/25/2016		$1.7
23		Quality Inn		Culpeper		VA		49		05/10/2016		$2.2
24		Super 8		Storm Lake		IA		59		05/19/2016		$2.8
25		Clarion Inn		Cleveland		TN		59		05/24/2016		$2.2
26		Super 8		Coralville		IA		84		05/26/2016		$3.4
27		Super 8		Keokuk		IA		61		05/27/2016		$2.2
28		Comfort Inn		Chambersburg		PA		63		06/06/2016		$2.1
29		Super 8		Pittsburg		KS		64		08/08/2016		$1.6
30		Super 8		Mount Pleasant		IA		54		09/09/2016		$1.9
31		Quality Inn		Danville		KY		63		09/19/2016		$2.3
32		Super 8		Menomonie		WI		81		09/26/2016		$3.0
33		Comfort Inn		Glasgow		KY		60		10/14/2016		$2.4
34		Days Inn		Sioux Falls		SD		86		11/04/2016		$2.1
35		Comfort Inn		Shelby		NC		76		11/07/2016		$4.1
36		Comfort Inn		Rocky Mount		VA		61		11/17/2016		$2.2
37		Days Inn		Farmville		VA		59		11/17/2016		$2.4
38		Comfort Suites		Marion		IN		62		11/18/2016		$3.0
39		Comfort Inn		Farmville		VA		50		11/30/2016		$2.6
40		Quality Inn		Princeton		WV		50		12/05/2016		$2.1
41		Super 8		Burlington		IA		62		12/21/2016		$2.8
42		Savannah Suites		Atlanta		GA		164		12/22/2016		$2.9
		Total 2016						1,864				$61.4
43		Comfort Inn		New Castle		PA		79		03/27/2017		$2.5
44		Super 8		Billings		MT		106		03/28/2017		$4.2
45		Comfort Inn		Harlan		KY		61		04/03/2017		$1.9
46		Comfort Suites		Lafayette		IN		62		04/18/2017		$3.9
47		Key West Inn		Key Largo		FL		40		05/17/2017		$7.6
48		Quality Inn		Morgantown		WV		81		08/30/2017		$2.6
49		Days Inn		Bossier City		LA		176		09/13/2017		$1.4
50		Comfort Inn & Suites		Warsaw		IN		71		12/20/2017		$5.0
		Total 2017						676				$29.1
51		Supertel Inn/Conference Center		Creston		IA		41		01/25/2018		$2.1
52		Comfort Suites		South Bend		IN		135		03/15/2018		$6.1
53		Comfort Suites		Ft. Wayne		IN		127		05/30/2018		$7.1
54		Super 8		Creston		IA		121		08/30/2018		$5.1
		Total 2018						424				$20.4
55		Quality Inn		Solomons		MD		59		03/22/2019		$4.3
		Total 2019						59				$4.3
		Total Dispositions						4,696				$169.9

Acquisitions | For Period January 1, 2015 – March 31, 2021
		Hotel Name		City		State		Rooms		Acquisition Date		Purchase Price (in millions)
1		SpringHill Suites		San Antonio		TX		116		10/01/2015		$17.5
2		Courtyard by Marriott		Jacksonville		FL		120		10/02/2015		$14.0
3		Hotel Indigo		College Park		GA		142		10/02/2015		$11.0
4		Aloft1		Atlanta		GA		254		08/22/2016		$43.6
5		Aloft		Leawood		KS		156		12/14/2016		$22.5
6		Home2 Suites		Lexington		KY		103		03/24/2017		$16.5
7		Home2 Suites		Round Rock		TX		91		03/24/2017		$16.8
8		Home2 Suites		Tallahassee		FL		132		03/24/2017		$21.5
9		Home2 Suites		Southaven		MS		105		04/14/2017		$19.0
10		Hampton Inn & Suites		Lake Mary		FL		130		06/19/2017		$19.3
11		Fairfield Inn & Suites		El Paso		TX		124		08/31/2017		$16.4
12		Residence Inn		Austin		TX		120		08/31/2017		$22.4
13		TownePlace Suites		Austin		TX		122		01/18/2018		$19.8
14		Home2 Suites		Summerville		SC		93		02/21/2018		$16.3
		Total Acquisitions						1,808				$276.6
1 | Represents the purchase statistics from the purchase of this hotel by the originally 80% owned unconsolidated joint venture. The Company purchased the remaining 20% interest in the joint venture from our joint venture partner on February 14, 2020 for $7.3 million.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210510005960/en/

FAQ

What were Condor Hospitality Trust's Q1 2021 financial results?

Condor Hospitality Trust reported a net loss of $2.4 million and a revenue per available room (RevPAR) decrease of 33.1% to $53.16.

How did Condor's performance compare to the industry in Q1 2021?

Condor's RevPAR decline of 33.1% was less than the overall industry decline of 34.3%.

What is the current occupancy rate for Condor's portfolio?

The same-store occupancy rate for Q1 2021 was 59.46%, down 7.1% from Q1 2020.

Did Condor Hospitality Trust experience cash burn in Q1 2021?

Yes, Condor reported a cash burn of $1.4 million in Q1 2021.

Is Condor Hospitality Trust currently paying dividends?

No, Condor is not permitted to pay cash dividends as per the terms of its credit facility.