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DiamondRock Hospitality Company Reports Third Quarter 2020 Results

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DiamondRock Hospitality Company (NYSE: DRH) reported substantial adverse impacts from the COVID-19 pandemic for Q3 2020, with a net loss of $79.6 million and comparable revenues down 79.2% year-over-year. The company's RevPAR plummeted by 81% compared to 2019. Despite these challenges, DiamondRock improved its cash burn rate, averaging $8.5 million per month, reflecting effective cost management. The company's liquidity rose to $434.5 million, benefiting from a recent preferred stock offering, while operational adjustments included converting five long-term management agreements to more flexible arrangements.

Positive
  • Improved cash burn rate to $8.5 million/month, a 19.8% improvement over Q2 2020.
  • Increased liquidity to $434.5 million amid ongoing pandemic challenges.
  • Converted five management agreements to flexible terminable-at-will agreements.
Negative
  • Net loss of $79.6 million, a $91.2 million decline compared to the previous year.
  • Comparable total revenues decreased by 79.2% year-over-year.
  • Adjust EBITDA of ($24.4) million, a drop of $91.9 million from 2019.

BETHESDA, Md., Nov. 5, 2020 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 31 premium hotels in the United States, today announced results of operations for the quarter ended September 30, 2020.

"Confronted with the disruption in travel demand caused by the COVID-19 pandemic, I want to commend the DiamondRock team for their unwavering dedication to executing our multi-prong pandemic response plan," said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. "Our quarterly cash burn rate significantly outperformed our original expectations as the result of relentless efforts by our asset managers and hotel operators. While our current focus remains centered on balance sheet strength, bolstered by our recent preferred equity offering, we are also taking steps to emerge from the pandemic as an even better company. During the quarter we converted five long-term management agreements to terminable-at-will agreements, distinguishing DiamondRock with the most flexible and least management-encumbered portfolio of any full-service hotel REIT."

Third Quarter 2020 Highlights:

  • Hotel Operations: The Company initially suspended operations at 20 of its 30 previously operating hotels throughout March and early April either under governmental orders or due to lack of travel demand caused by the pandemic. The Company reopened 12 hotels during the second quarter and 5 additional hotels during the third quarter as governmental orders were modified or lifted and leisure demand began to return.  The Company currently has 27 of its 30 operating hotels open.   
  • Net Loss: Net loss was $79.6 million and loss per diluted share was $0.40.
  • Comparable Revenues: Comparable total revenues decreased 79.2% from the comparable period of 2019.
  • Comparable RevPAR: RevPAR decreased 81.0% from the comparable period of 2019.
  • Hotel Adjusted EBITDA: Hotel Adjusted EBITDA was ($17.4) million, a 42.8% improvement from the second quarter 2020.
  • Adjusted EBITDA: Adjusted EBITDA was ($24.4) million, a decrease of $91.9 million from 2019.
  • Adjusted FFO: Adjusted FFO was ($43.5) million and Adjusted FFO per diluted share was ($0.22).  Adjusted FFO was negatively impacted by an income tax valuation allowance recognized in the quarter of $12.4 million, or $0.06 per diluted share.
  • Preferred Stock Offering: In August and September 2020, the Company issued a total of 4.8 million shares of 8.250% Series A Cumulative Redeemable Preferred Stock for net proceeds of approximately $114.5 million.
  • Liquidity: The Company's liquidity increased during the quarter by $70.6 million to $434.5 million, comprised of $110.6 million of unrestricted corporate cash, $23.9 million of unrestricted cash at its hotels and $300.0 million of capacity on the Company's revolving credit facility.

Please see "Non-GAAP Financial Measures" attached to this press release for an explanation of the terms "EBITDAre," "Adjusted EBITDA," "Hotel Adjusted EBITDA," "Hotel Adjusted EBITDA Margin," "FFO" and "Adjusted FFO" and a reconciliation of these measures to net income. Comparable operating results exclude Frenchman's Reef & Morning Star Marriott Beach Resort for all periods presented due to the closure of the hotel.  See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts.

For the quarter ended September 30, 2020, the Company reported the following:


Third Quarter



2020


2019

Change

Comparable Operating Results (1)





ADR

$201.82



$238.50


(15.4)

%

Occupancy

18.6

%


82.7

%

(64.1)

%

RevPAR

$37.55



$197.14


(81.0)

%

Total RevPAR

$56.69



$272.05


(79.2)

%

Revenues

$50.1 million


$240.3 million

(79.2)

%

Hotel Adjusted EBITDA

($17.4) million


$73.8 million

(123.6)

%

Hotel Adjusted EBITDA Margin

(34.69)

%


30.69

%

(6,538) basis points

Available Rooms

883,200



883,200


–         rooms






Actual Operating Results





Revenues

$50.1 million


$240.3 million

(79.2)

%

Net loss/income

($79.6) million


$11.6 million

($91.2) million

Loss/Earnings per diluted share

($0.40)



$0.06


($0.46)


Adjusted EBITDA

($24.4) million


$67.5 million

($91.9) million

Adjusted FFO

($43.5) million


$55.3 million

($98.8) million

Adjusted FFO per diluted share

($0.22)


$0.27


($0.49)









(1)   

Comparable operating results exclude Frenchman's Reef & Morning Star Marriott Beach Resort for all periods presented and does not adjust for hotels that have suspended operations.

 

 

For the nine months ended September 30, 2020, the Company reported the following:


Year to Date



2020


2019

Change

Comparable Operating Results (1)





ADR

$209.23



$235.89


(11.3)

%

Occupancy

28.7

%


79.7

%

(51.0)

%

RevPAR

$60.09



$187.96


(68.0)

%

Total RevPAR

$91.41



$267.43


(65.8)

%

Revenues

$240.4 million


$700.6 million

(65.7)

%

Hotel Adjusted EBITDA

($29.9) million


$209.2 million

(114.3)

%

Hotel Adjusted EBITDA Margin

(12.44)

%


29.87

%

(4,231) basis points

Available Rooms

2,630,400



2,619,609


10,791 rooms






Actual Operating Results





Revenues

$240.4 million


$700.6 million

(65.7)

%

Net loss/income

($187.7) million


$49.6 million

($237.3) million

Loss/Earnings per diluted share

($0.93)



$0.24


($1.17)


Adjusted EBITDA

($49.6) million


$197.8 million

($247.4) million

Adjusted FFO

($76.1) million


$162.3 million

($238.4) million

Adjusted FFO per diluted share

($0.38)



$0.80


($1.18)










(1) 

Comparable operating results exclude Frenchman's Reef & Morning Star Marriott Beach Resort for all periods presented and does not adjust for hotels that have suspended operations.

Net loss for the three and nine months ended September 30, 2020 includes $7.4 million and $7.8 million, respectively, of severance costs recognized in connection with the elimination of positions at the Company's hotels.  These severance costs are excluded from Hotel Adjusted EBITDA, Adjusted EBITDA and Adjusted FFO in accordance with the Company's definition of these metrics.

Hotel Operations Update

Due to the decline in travel demand from the impact of COVID-19, the Company temporarily suspended operations at 20 of its 30 previously operating properties (which excludes Frenchman's Reef & Morning Star Marriott Beach Resort, where redevelopment has been paused) throughout March and early April.  The Company resumed operations at 12 hotels by the end of the second quarter and another five hotels by the end of the third quarter as governmental orders were modified or lifted and leisure demand began to return.  The Company does not expect to reopen the remaining three closed hotels in 2020, all of which are located in New York City. The Company will continue to aggressively manage costs at its hotels ensure appropriate cleanliness and safety protocols.  The Company is carefully monitoring demand trends and adjusted sales strategies and staffing to respond rapidly in a changing environment.

The Company has successfully improved the cash burn rate at its hotels as a result of aggressive cost controls and increased demand.  The average burn rate for the Company's hotels during the third quarter 2020 was $8.5 million per month, a 19.8% improvement over the average burn rate of $10.6 million per month in the second quarter 2020.

The following table identifies each of the Company's hotels that has suspended operations and the date of reopening, if applicable:

Property


# of Rooms


Date of

Suspension


Date of

Reopening

Renaissance Charleston Historic District Hotel


166


4/6/2020


5/14/2020

Orchards Inn Sedona


70


3/31/2020


5/15/2020

Courtyard Denver Downtown


177


3/20/2020


6/1/2020

JW Marriott Denver Cherry Creek


199


3/22/2020


6/1/2020

Havana Cabana Key West


106


3/23/2020


6/1/2020

Barbary Beach House Key West


184


3/23/2020


6/1/2020

The Landing Lake Tahoe Resort & Spa


82


3/23/2020


6/5/2020

The Gwen Chicago


311


3/31/2020


6/10/2020

Vail Marriott Mountain Resort


344


3/20/2020


6/12/2020

Hotel Palomar Phoenix


242


3/31/2020


6/21/2020

Cavallo Point, The Lodge at the Golden Gate


142


3/17/2020


6/24/2020

Hotel Emblem San Francisco


96


3/23/2020


6/26/2020

The Lodge at Sonoma Renaissance Resort & Spa


182


3/21/2020


7/1/2020

Hilton Burlington Lake Champlain


258


3/31/2020


7/16/2020

Hilton Boston Downtown/Faneuil Hall


403


3/23/2020


7/31/2020

Chicago Marriott Downtown Magnificent Mile


1,200


4/10/2020


9/1/2020

Westin Boston Waterfront


793


3/25/2020


9/3/2020

Courtyard New York Manhattan/Fifth Avenue


189


3/27/2020


-

Hilton Garden Inn New York Times Square Central


282


3/29/2020


-

The Lexington Hotel


725


3/29/2020


-









The following tables provide operating information for the Company's portfolio throughout the third quarter:


July 2020


August 2020


September 2020


Third Quarter 2020

Hotels Open and Operating the Entire Period

Number of Hotels

23



23



23



23


Occupancy

25.8

%


28.1

%


31.1

%


28.3

%

ADR

$206.98



$200.78



$210.92



$206.32


RevPAR

$53.43



$56.40



$65.54



$58.38


Total RevPAR

$76.36



$84.68



$100.89



$87.16


 


July 2020


August 2020


September 2020


Third Quarter 2020

Resorts Open and Operating the Entire Period

Number of Hotels

11



11



11



11


Occupancy

39.8

%


44.1

%


45.1

%


43.0

%

ADR

$265.29



$258.48



$282.70



$268.89


RevPAR

$105.49



$114.10



$127.49



$115.57


Total RevPAR

$157.89



$176.87



$206.76



$180.22


 


July 2020


August 2020


September 2020


Third Quarter 2020

Hotels Open and Operating at Any Point During the Period

Number of Hotels

25



25



27



27


Occupancy

23.5

%


27.4

%


25.0

%


25.3

%

ADR

$206.35



$197.12



$202.53



$201.82


RevPAR

$48.55



$54.09



$50.64



$51.06


Total RevPAR

$69.50



$80.19



$77.36



$75.82


 

Capital Expenditures

The Company invested approximately $8.1 million and $39.9 million in capital improvements at its operating hotels during the three and nine months ended September 30, 2020, respectively. Due to the COVID-19 pandemic, the Company has canceled or deferred a significant portion of the planned capital improvements at its operating hotels.  The Company currently expects to invest approximately $10.0 million in the fourth quarter for a total of $50.0 million of investment in capital improvements at its operating hotels during 2020.  Separately, the Company has paused the rebuild of Frenchman's Reef & Morning Star Marriott Beach Resort. The Company spent approximately $38.3 million on the rebuild of Frenchman's Reef & Morning Star Marriott Beach Resort during the nine months ended September 30, 2020.

Management and Franchise Agreement Amendments

On August 27, 2020, the Company entered into an agreement with Marriott International, Inc. modifying several franchise and management contracts.  Key benefits of the agreement include: (i) the conversion of five hotels from brand-managed to franchise with new terminable-at-will management agreements with third-party hotel operators, (ii) a new franchise agreement for the Vail Marriott Mountain Resort to upbrand the resort to a Luxury Collection hotel in 2021, (iii) an option to upbrand the JW Marriott Denver Cherry Creek to a Luxury Collection hotel and (iv) an amendment to the Autograph Collection franchise agreement for The Lexington Hotel to provide a termination right in 2021 subject to a fee.  The agreement results in the Company having 29 of its 31 hotels unencumbered by long-term brand management agreements.

Balance Sheet and Liquidity

As of September 30, 2020, the Company's liquidity was $434.5 million, an increase of $70.6 million during the quarter, and is comprised of $110.6 million of unrestricted corporate cash, $23.9 million of unrestricted cash at its hotels and $300.0 million of capacity on its senior unsecured credit facility.  As of September 30, 2020, the Company had $1.1 billion of total debt outstanding, which consisted of $604.5 million of property-specific, non-recourse mortgage debt, $400.0 million of unsecured term loans and $100.0 million outstanding on its $400.0 million senior unsecured credit facility.  The Company has no material debt maturities until 2022.

In August and September 2020, the Company completed a public offering of a total of 4.8 million shares of 8.250% Series A Cumulative Redeemable Preferred Stock with a $25.00 per share liquidation preference for net proceeds of approximately $114.5 million. 

Dividends

The Company declared an inaugural dividend of $0.1776 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock to shareholders of record as of September 20, 2020.  This dividend was paid on September 30, 2020 and calculated on a pro rata basis from, and including, the original issue date to, and including, September 30, 2020.  In order to preserve liquidity, the Company has suspended its quarterly dividend on common stock commencing with the dividend that would have been paid in April 2020.

Guidance

Given the high level of uncertainty surrounding the COVID-19 pandemic and its effect on hotel demand, the Company previously withdrew full year 2020 guidance originally issued on February 20, 2020 and is not providing updated guidance at this time.

Earnings Call

The Company will host a conference call to discuss its second quarter results on Friday, November 6, 2020, at 9:00 a.m. Eastern Time (ET).  To participate in the live call, investors are invited to dial 844-287-6622 (for domestic callers) or 530-379-4559 (for international callers).  The participant passcode is 2536596. A live webcast of the call will be available via the investor relations section of DiamondRock Hospitality Company's website at www.drhc.com or www.earnings.com. A replay of the webcast will also be archived on the website for one week.

About the Company

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations.  The Company owns 31 premium quality hotels with over 10,000 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families as well as unique boutique hotels in the lifestyle segment.  For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com.

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," "forecast," "plan" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made, including statements related to the expected duration of closure of Frenchman's Reef & Morning Star Marriott Beach Resort. These risks include, but are not limited to: the adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; national and local economic and business conditions, including the potential for additional terrorist attacks, that will affect occupancy rates at the Company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the Company's indebtedness and its ability to obtain covenant waivers on its credit agreements for its senior unsecured credit facility and unsecured term loans; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

 

DIAMONDROCK HOSPITALITY COMPANY

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)



September 30, 2020


December 31, 2019

ASSETS

(unaudited)



Property and equipment, net

$

3,013,989



$

3,026,769


Right-of-use assets

96,956



98,145


Restricted cash

31,478



57,268


Due from hotel managers

67,951



91,207


Prepaid and other assets (1)

33,194



29,853


Cash and cash equivalents

110,555



122,524


Total assets

$

3,354,123



$

3,425,766


LIABILITIES AND EQUITY




Liabilities:




Mortgage and other debt, net of unamortized debt issuance costs

$

601,715



$

616,329


Unsecured term loans, net of unamortized debt issuance costs

398,443



398,770


Senior unsecured credit facility

99,985



75,000


Total debt

1,100,143



1,090,099






Deferred income related to key money, net

11,045



11,342


Unfavorable contract liabilities, net

64,564



67,422


Deferred rent

55,270



52,012


Lease liabilities

104,275



103,625


Due to hotel managers

94,473



72,445


Distributions declared and unpaid

138



25,815


Accounts payable and accrued expenses (2)

82,026



81,944


Total liabilities

1,511,934



1,504,704


Equity:




Preferred stock, $0.01 par value; 10,000,000 shares authorized;




    8.250% Series A Cumulative Redeemable Preferred Stock (liquidation
    preference $25.00 per share), 4,760,000 and no shares issues and outstanding at
    September 30, 2020 and December 31, 2019, respectively

48



—


Common stock, $0.01 par value; 400,000,000 shares authorized; 199,518,880 and 200,207,795 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

1,995



2,002


Additional paid-in capital

2,198,376



2,089,349


Accumulated deficit

(366,635)



(178,861)


Total stockholders' equity

1,833,784



1,912,490


Noncontrolling interests

8,405



8,572


Total equity

1,842,189



1,921,062


Total liabilities and equity

$

3,354,123



$

3,425,766


 

(1)

Includes $10.7 million of insurance receivables as of December 31, 2019, $13.6 million and $9.8 million of prepaid expenses and $19.6 million and $9.4 million of other assets as of September 30, 2020 and December 31, 2019, respectively.



(2)

Includes $28.7 million of deferred tax liabilities, $18.4 million and $18.9 million of accrued property taxes, $8.9 million and $13.1 million of accrued capital expenditures and $26.0 million and $21.2 million of other accrued liabilities as of September 30, 2020 and December 31, 2019, respectively.

 

                

DIAMONDROCK HOSPITALITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)



Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Revenues:








Rooms

$

33,166



$

174,113



$

158,066



$

492,395


Food and beverage

9,586



50,624



56,529



161,803


Other

7,315



15,542



25,846



46,374


Total revenues

50,067



240,279



240,441



700,572


Operating Expenses:








Rooms

11,792



42,840



54,588



124,581


Food and beverage

10,043



34,262



45,845



103,868


Management fees

(755)



6,088



2,644



18,745


Franchise fees

1,813



6,894



8,402



19,961


Other hotel expenses

53,196



85,157



171,759



241,955


Depreciation and amortization

28,514



29,474



87,397



87,805


Corporate expenses

7,267



6,318



19,650



20,785


Business interruption insurance income

—



—



—



(8,822)


Total operating expenses, net

111,870



211,033



390,285



608,878










Interest and other (income) expense, net

(191)



(102)



58



(510)


Interest expense

10,818



14,184



43,665



38,264


Loss on early extinguishment of debt

—



2,373



—



2,373


  Total other expenses, net

10,627



16,455



43,723



40,127


(Loss) income before income taxes

(72,430)



12,791



(193,567)



51,567


Income tax (expense) benefit

(7,205)



(1,217)



5,853



(1,939)


Net (loss) income

(79,635)



11,574



(187,714)



49,628


Less:  Net loss (income) attributable to noncontrolling interests

43



(45)



781



(194)


Net (loss) income attributable to the Company

(79,592)



11,529



(186,933)



49,434


Distributions to preferred stockholders

(845)



—



(845)



—


Net (loss) income attributable to common stockholders

$

(80,437)



$

11,529



$

(187,778)



$

49,434


(Loss) earnings per share:








Net (loss) income per share available to common stockholders - basic

$

(0.40)



$

0.06



$

(0.93)



$

0.24


Net (loss) income per share available to common stockholders - diluted

$

(0.40)



$

0.06



$

(0.93)



$

0.24










Weighted-average number of common shares outstanding:








Basic

200,978,327



201,448,348



200,994,434



202,218,646

Diluted

200,978,327



201,992,289



200,994,434



202,682,588

 

Non-GAAP Financial Measures

We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP.  EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company.

Use and Limitations of Non-GAAP Financial Measures

Our management and Board of Directors use EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. The use of these non-GAAP financial measures has certain limitations. These non-GAAP financial measures as presented by us, may not be comparable to non-GAAP financial measures as calculated by other real estate companies. These measures do not reflect certain expenses or expenditures that we incurred and will incur, such as depreciation, interest and capital expenditures. We compensate 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 most comparable U.S. 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 U.S. GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by U.S. GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our U.S. GAAP results and the reconciliations to the corresponding U.S. GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.

EBITDA, EBITDAre and FFO

EBITDA represents net income (calculated in accordance with U.S. GAAP) excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization.  The Company computes EBITDAre in accordance with the National Association of Real Estate Investment Trusts ("Nareit") guidelines, as defined in its September 2017 white paper "Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate."  EBITDAre represents net income (calculated in accordance with U.S. GAAP) adjusted for: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; (4) gains or losses on the disposition of depreciated property including gains or losses on change of control; (5) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; and (6) adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates.

We believe EBITDA and EBITDAre are useful to an investor in evaluating our operating performance because they help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization, and in the case of EBITDAre, impairment and gains or losses on dispositions of depreciated property) from our operating results. In addition, covenants included in our debt agreements use EBITDA as a measure of financial compliance. We also use EBITDA and EBITDAre as measures in determining the value of hotel acquisitions and dispositions.

The Company computes FFO in accordance with standards established by the Nareit, which defines FFO as net income determined in accordance with U.S. GAAP, excluding gains or losses from sales of properties and impairment losses, plus real estate related depreciation and amortization. The Company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it is a measure of the Company's operations without regard to specified non-cash items, such as real estate related depreciation and amortization and gains or losses on the sale of assets.  The Company also uses FFO as one measure in assessing its operating results.

Hotel EBITDA

Hotel EBITDA represents net income excluding:  (1) interest expense, (2) income taxes, (3) depreciation and amortization, (4) corporate general and administrative expenses (shown as corporate expenses on the consolidated statements of operations), and (5) hotel acquisition costs. We believe that Hotel EBITDA provides our investors a useful financial measure to evaluate our hotel operating performance, excluding the impact of our capital structure (primarily interest), our asset base (primarily depreciation and amortization), and our corporate-level expenses (corporate expenses and hotel acquisition costs).  With respect to Hotel EBITDA, we believe that excluding the effect of corporate-level expenses provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control.  We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis.

Adjustments to EBITDAre, FFO and Hotel EBITDA

We adjust EBITDAre, FFO and Hotel EBITDA when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted EBITDA, Adjusted FFO and Hotel Adjusted EBITDA when combined with U.S. GAAP net income, EBITDAre, FFO and Hotel EBITDA, is beneficial to an investor's complete understanding of our consolidated and property-level operating performance.  Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues.  We adjust EBITDAre, FFO and Hotel EBITDA for the following items:

  • Non-Cash Lease Expense and Other Amortization: We exclude the non-cash expense incurred from the straight line recognition of expense from our ground leases and other contractual obligations and the non-cash amortization of our favorable and unfavorable contracts, originally recorded in conjunction with certain hotel acquisitions.  We exclude these non-cash items because they do not reflect the actual cash amounts due to the respective lessors and service providers in the current period and they are of lesser significance in evaluating our actual performance for that period.
  • Cumulative Effect of a Change in Accounting Principle: The Financial Accounting Standards Board promulgates new accounting standards that require or permit the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle.  We exclude the effect of these adjustments, which include the accounting impact from prior periods, because they do not reflect the Company's actual underlying performance for the current period.
  • Gains or Losses from Early Extinguishment of Debt: We exclude the effect of gains or losses recorded on the early extinguishment of debt because these gains or losses result from transaction activity related to the Company's capital structure that we believe are not indicative of the ongoing operating performance of the Company or our hotels.
  • Hotel Acquisition Costs:  We exclude hotel acquisition costs expensed during the period because we believe these transaction costs are not reflective of the ongoing performance of the Company or our hotels.
  • Severance Costs:  We exclude corporate severance costs, or reversals thereof, incurred with the termination of corporate-level employees and severance costs incurred at our hotels related to lease terminations or structured severance programs because we believe these costs do not reflect the ongoing performance of the Company or our hotels.
  • Hotel Manager Transition Items:  We exclude the transition items associated with a change in hotel manager because we believe these items do not reflect the ongoing performance of the Company or our hotels.
  • Other Items:  From time to time we incur costs or realize gains that we consider outside the ordinary course of business and that we do not believe reflect the ongoing performance of the Company or our hotels.  Such items may include, but are not limited to, the following: pre-opening costs incurred with newly developed hotels; lease preparation costs incurred to prepare vacant space for marketing; management or franchise contract termination fees; gains or losses from legal settlements; costs incurred related to natural disasters; and gains on property insurance claim settlements, other than income related to business interruption insurance.

In addition, to derive Adjusted FFO we exclude any fair value adjustments to interest rate swaps.  We exclude these non-cash amounts because they do not reflect the underlying performance of the Company.

Reconciliations of Non-GAAP Measures

EBITDA, EBITDAre and Adjusted EBITDA

The following tables are reconciliations of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA (in thousands):          


Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Net (loss) income

$

(79,635)



$

11,574



$

(187,714)



$

49,628


Interest expense

10,818



14,184



43,665



38,264


Income tax expense (benefit)

7,205



1,217



(5,853)



1,939


Real estate related depreciation and amortization

28,514



29,474



87,397



87,805


EBITDA/EBITDAre

(33,098)



56,449



(62,505)



177,636


Non-cash lease expense and other amortization

1,715



1,750



5,172



5,249


Professional fees and pre-opening costs related to
Frenchman's Reef (1)

593


6,378



418


11,445


Hotel manager transition items (2)

(1,021)



582



(460)



1,050


Loss on early extinguishment of debt

—



2,373



—



2,373


Severance costs (3)

7,367



—



7,760



—


Adjusted EBITDA

$

(24,444)



$

67,532



$

(49,615)



$

197,753


 

(1)

Represents pre-opening costs related to the re-opening of Frenchman's Reef & Morning Star Marriott Beach Resort, as well as legal and professional fees and other costs incurred at Frenchman's Reef & Morning Star Marriott Beach Resort as a result of Hurricane Irma that are not covered by insurance.

(2)

Three months ended September 30, 2020 consists of manager transition costs of $0.4 million related to The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel. Nine months ended September 30, 2020 consists of manager transition costs of $1.5 million related to the L'Auberge de Sedona, Orchards Inn Sedona, the Westin Boston Waterfront, The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement and $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel.


Three months ended September 30, 2019 consist of (a) less than $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and manager transition costs related to the Westin Washington, D.C. City Center and (b) $0.6 million of manager termination fees for L'Auberge de Sedona and Orchards Inn Sedona. Nine months ended September 30, 2019 consists of (a) $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem, (b) $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center and (c) $0.6 million of manager termination fees for L'Auberge de Sedona and Orchards Inn Sedona.

(3)

Three and nine months ended September 30, 2020 consists of severance costs incurred with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.

 

Hotel EBITDA and Hotel Adjusted EBITDA

The following table is a reconciliation of our GAAP net income to Hotel EBITDA and Hotel Adjusted EBITDA (in thousands):      


Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Net (loss) income

$

(79,635)



$

11,574



$

(187,714)



$

49,628


Interest expense

10,818



14,184



43,665



38,264


Income tax expense (benefit)

7,205



1,217



(5,853)



1,939


Real estate related depreciation and amortization

28,514



29,474



87,397



87,805


EBITDA

(33,098)



56,449



(62,505)



177,636


Corporate expenses

7,267



6,318



19,650



20,785


Interest and other (income) expense, net

(191)



(102)



58



(510)


Loss on early extinguishment of debt

—



2,373



—



2,373


Professional fees and pre-opening costs related to Frenchman's Reef (1)

593


6,378



418



11,445


Hotel EBITDA

(25,429)



71,416



(42,379)



211,729


Non-cash lease expense and other amortization

1,715



1,750



5,172



5,249


Severance costs (3)

7,367



—



7,760



—


Hotel manager transition items (2)

(1,021)



582



(460)



1,050


Hotel Adjusted EBITDA

$

(17,368)



$

73,748



$

(29,907)



$

218,028


 

(1)

Represents pre-opening costs related to the re-opening of Frenchman's Reef & Morning Star Marriott Beach Resort, as well as legal and professional fees and other costs incurred at Frenchman's Reef & Morning Star Marriott Beach Resort as a result of Hurricane Irma that are not covered by insurance.

(2)

Three months ended September 30, 2020 consists of manager transition costs of $0.4 million related to The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel. Nine months ended September 30, 2020 consists of manager transition costs of $1.5 million related to the L'Auberge de Sedona, Orchards Inn Sedona, the Westin Boston Waterfront, The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement and $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel.


 Three months ended September 30, 2019 consist of (a) less than $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and manager transition costs related to the Westin Washington, D.C. City Center and (b) $0.6 million of manager termination fees for L'Auberge de Sedona and Orchards Inn Sedona. Nine months ended September 30, 2019 consists of (a) $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem, (b) $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center and (c) $0.6 million of manager termination fees for L'Auberge de Sedona and Orchards Inn Sedona.

(3)

Three and nine months ended September 30, 2020 consists of severance costs incurred with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.

 

FFO and Adjusted FFO

The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands):


Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Net (loss) income

$

(79,635)



$

11,574



$

(187,714)



$

49,628


Real estate related depreciation and amortization

28,514



29,474



87,397



87,805


FFO

(51,121)



41,048



(100,317)



137,433


Non-cash lease expense and other amortization

1,715



1,750



5,172



5,249


Professional fees and pre-opening costs related to Frenchman's Reef  (1)

593



6,378



418



11,445


Hotel manager transition items (2)

(1,021)



582



(460)



1,050


Loss on early extinguishment of debt

—



2,373



—



2,373


Severance costs (3)

7,367



—



7,760



—


Fair value adjustments to interest rate swaps

(983)



3,143



11,329



4,790


Adjusted FFO

$

(43,450)



$

55,274



$

(76,098)



$

162,340


Adjusted FFO per diluted share

$

(0.22)



$

0.27



$

(0.38)



$

0.80


 

(1)

Represents pre-opening costs related to the re-opening of Frenchman's Reef & Morning Star Marriott Beach Resort, as well as legal and professional fees and other costs incurred at Frenchman's Reef & Morning Star Marriott Beach Resort as a result of Hurricane Irma that are not covered by insurance.

(2)

Three months ended September 30, 2020 consists of manager transition costs of $0.4 million related to The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel. Nine months ended September 30, 2020 consists of manager transition costs of $1.5 million related to the L'Auberge de Sedona, Orchards Inn Sedona, the Westin Boston Waterfront, The Lodge at Sonoma Renaissance Resort & Spa, Salt Lake City Marriott Downtown at City Creek, and Renaissance Charleston Historic District Hotel, offset by a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement and $1.4 million of accelerated amortization of the unfavorable management agreement liability related to the manager transition at the Renaissance Charleston Historic District Hotel.


Three months ended September 30, 2019 consist of (a) less than $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and manager transition costs related to the Westin Washington, D.C. City Center and (b) $0.6 million of manager termination fees for L'Auberge de Sedona and Orchards Inn Sedona. Nine months ended September 30, 2019 consists of (a) $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem, (b) $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center and (c) $0.6 million of manager termination fees for L'Auberge de Sedona and Orchards Inn Sedona.

(3)

Three and nine months ended September 30, 2020 consists of severance costs incurred with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.

 

Reconciliation of Comparable Operating Results

The following presents the revenues, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin together with comparable prior year results, which excludes the results for Frenchman's Reef & Morning Star Marriott Beach Resort due to the closure of the hotel (in thousands):         


Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Revenues

$

50,067



$

240,279



$

240,441



$

700,572


Hotel revenues from Frenchman's Reef & Morning Star
Marriott Beach Resort

—



(1)



—



—


Comparable Revenues

$

50,067



$

240,278



$

240,441



$

700,572










Hotel Adjusted EBITDA

$

(17,368)



$

73,748



$

(29,907)



$

218,028


Hotel Adjusted EBITDA from Frenchman's Reef & Morning Star Marriott Beach Resort

—



2



—



(8,798)


Comparable Hotel Adjusted EBITDA

$

(17,368)



$

73,750



$

(29,907)



$

209,230










Hotel Adjusted EBITDA Margin

(34.69)

%


30.69

%


(12.44)

%


31.12

%

Comparable Hotel Adjusted EBITDA Margin

(34.69)

%


30.69

%


(12.44)

%


29.87

%

 

Selected Quarterly Comparable Operating Information

The following tables are presented to provide investors with selected quarterly comparable operating information.  The operating information excludes Frenchman's Reef & Morning Star Marriott Beach Resort for all periods.


Quarter 1, 2020

Quarter 2, 2020

Quarter 3, 2020

ADR

$

216.42


$

175.74


$

201.82


Occupancy

59.1

%

8.5

%

18.6

%

RevPAR

$

127.98


$

14.99


$

37.55


Revenues (in thousands)

$

169,995


$

20,379


$

50,067


Hotel Adjusted EBITDA (in thousands)

$

17,819


$

(30,363)


$

(17,368)


Hotel Adjusted EBITDA Margin

10.48

%

(148.99)

%

(34.69)

%

Available Rooms

873,600


873,600


883,200


 


Quarter 1, 2019

Quarter 2, 2019

Quarter 3, 2019

Quarter 4, 2019

Full Year 2019

ADR

$

216.38


$

250.23


$

238.50


$

247.02


$

238.63


Occupancy

73.2

%

83.1

%

82.7

%

77.4

%

79.1

%

RevPAR

$

158.30


$

208.02


$

197.14


$

191.08


$

188.75


Revenues (in thousands)

$

202,375


$

257,918


$

240,279


$

237,519


$

938,091


Hotel Adjusted EBITDA (in thousands)

$

47,127


$

88,353


$

73,750


$

69,415


$

278,645


% of full Year

16.91

%

31.71

%

26.47

%

24.91

%

100.0

%

Hotel Adjusted EBITDA Margin

23.29

%

34.26

%

30.69

%

29.23

%

29.70

%

Available Rooms

863,264


873,145


883,200


883,200


3,502,809


 

 


Market Capitalization as of September 30, 2020

(in thousands)

Enterprise Value






Common equity capitalization (at September 30, 2020 closing price of $5.07/share)


1,021,861


Consolidated debt (face amount)


1,104,445


Cash and cash equivalents


(110,555)


Total enterprise value


$

2,015,751


Share Reconciliation






Common shares outstanding


199,519


Unvested restricted stock held by management and employees


573


Share grants under deferred compensation plan


1,458


Combined shares outstanding


201,550







 

Debt Summary as of September 30, 2020

(dollars in thousands)


Loan


Interest Rate as of

September 30, 2020


Term


Outstanding
Principal


Maturity

Salt Lake City Marriott Downtown at City Creek


LIBOR + 3.25 (1)


Variable


47,700



January 2022 (2)

Westin Washington D.C. City Center


3.99%


Fixed


58,860



January 2023

The Lodge at Sonoma Renaissance Resort & Spa


3.96%


Fixed


26,502



April 2023

Westin San Diego Downtown


3.94%


Fixed


60,668



April 2023

Courtyard New York Manhattan / Midtown East


4.40%


Fixed


79,940



August 2024

Worthington Renaissance Fort Worth Hotel


3.66%


Fixed


79,647



May 2025

JW Marriott Denver Cherry Creek


4.33%


Fixed


60,361



July 2025

Westin Boston Waterfront


4.36%


Fixed


187,839



November 2025

New Market Tax Credit loan (3)


5.17%


Fixed


2,943



December 2020

     Unamortized debt issuance costs






(2,745)




Total mortgage and other debt, net of unamortized debt issuance costs






601,715













Unsecured term loan


LIBOR + 2.35% (4)


Variable


350,000



July 2024

Unsecured term loan


LIBOR + 2.35% (5)


Fixed


50,000



October 2023

     Unamortized debt issuance costs






(1,557)




Unsecured term loans, net of unamortized debt issuance costs




398,443













Senior unsecured credit facility


LIBOR + 2.40% (6)


Variable


99,985



July 2023 (7)










Total debt, net of unamortized debt issuance costs






$

1,100,143




Weighted-average interest rate of fixed rate debt


4.23

%







Total weighted-average interest rate


3.84

%



















(1)

LIBOR is subject to a floor of 1.0%.

(2)

The loan may be extended for an additional year upon satisfaction of certain conditions.

(3)

Assumed in connection with the acquisition of the Hotel Palomar Phoenix in March 2018.

(4)

The Company entered into an interest rate swap agreement in July 2019 to fix LIBOR at 1.70% for $175 million of the term loan through July 2024.  Effective June 9, 2020, LIBOR is subject to a floor of 0.25%.

(5)

The Company entered into an interest rate swap agreement in January 2019 to fix LIBOR at 2.41% through October 2023.

(6)

Effective June 9, 2020, LIBOR is subject to a floor of 0.25%.

(7)

May be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.

 



Operating Statistics – July




Number
of Rooms

ADR


Occupancy


RevPAR


July 2020

July 2019

B/(W) 2019


July 2020

July 2019

B/(W) 2019


July 2020

July 2019

B/(W) 2019














Atlanta Marriott Alpharetta

318


$

93.92


$

162.46


(42.2)

%


15.6

%

73.9

%

(58.3)

%


$

14.63


$

120.04


(87.8)

%

Barbary Beach House Key West

184


$

222.62


$

220.45


1.0

%


36.0

%

87.1

%

(51.1)

%


$

80.13


$

192.08


(58.3)

%

Bethesda Marriott Suites

272


$

110.20


$

152.91


(27.9)

%


15.6

%

73.1

%

(57.5)

%


$

17.24


$

111.78


(84.6)

%

Cavallo Point, The Lodge at the Golden Gate

142


$

444.98


$

486.46


(8.5)

%


16.7

%

63.1

%

(46.4)

%


$

74.30


$

307.10


(75.8)

%

Courtyard Denver Downtown

177


$

108.13


$

208.67


(48.2)

%


24.7

%

89.3

%

(64.6)

%


$

26.72


$

186.38


(85.7)

%

Courtyard New York Manhattan/Midtown East

321


$

144.64


$

244.62


(40.9)

%


56.1

%

97.2

%

(41.1)

%


$

81.12


$

237.84


(65.9)

%

Havana Cabana Key West

106


$

186.78


$

191.71


(2.6)

%


60.6

%

93.0

%

(32.4)

%


$

113.11


$

178.24


(36.5)

%

Hotel Emblem San Francisco

96


$

136.90


$

205.59


(33.4)

%


11.3

%

90.8

%

(79.5)

%


$

15.46


$

186.66


(91.7)

%

Hotel Palomar Phoenix

242


$

119.36


$

131.36


(9.1)

%


21.0

%

67.0

%

(46.0)

%


$

25.06


$

88.08


(71.5)

%

JW Marriott Denver Cherry Creek

199


$

200.79


$

256.67


(21.8)

%


31.2

%

84.6

%

(53.4)

%


$

62.66


$

217.18


(71.1)

%

Kimpton Shorebreak Resort

157


$

284.70


$

335.66


(15.2)

%


48.5

%

85.5

%

(37.0)

%


$

138.17


$

286.83


(51.8)

%

L'Auberge de Sedona

88


$

552.85


$

484.63


14.1

%


68.3

%

68.8

%

(0.5)

%


$

377.35


$

333.45


13.2

%

Orchards Inn Sedona

70


$

165.55


$

186.63


(11.3)

%


61.8

%

75.3

%

(13.5)

%


$

102.38


$

140.53


(27.1)

%

Renaissance Charleston Historic District Hotel

166


$

163.95


$

227.40


(27.9)

%


37.1

%

85.5

%

(48.4)

%


$

60.79


$

194.39


(68.7)

%

Salt Lake City Marriott Downtown at City Creek

510


$

119.42


$

176.13


(32.2)

%


10.2

%

77.8

%

(67.6)

%


$

12.18


$

137.03


(91.1)

%

The Gwen Hotel

311


$

200.27


$

270.72


(26.0)

%


22.9

%

90.0

%

(67.1)

%


$

45.84


$

243.63


(81.2)

%

The Landing Lake Tahoe Resort & Spa

82


$

519.03


$

426.86


21.6

%


80.3

%

86.3

%

(6.0)

%


$

416.53


$

368.42


13.1

%

The Lodge at Sonoma Renaissance Resort & Spa

182


$

248.77


$

343.50


(27.6)

%


45.7

%

81.3

%

(35.6)

%


$

113.71


$

279.33


(59.3)

%

Vail Marriott Mountain Resort

344


$

216.06


$

220.87


(2.2)

%


34.9

%

76.3

%

(41.4)

%


$

75.39


$

168.57


(55.3)

%

Westin Fort Lauderdale Beach Resort

433


$

141.08


$

146.19


(3.5)

%


26.0

%

80.2

%

(54.2)

%


$

36.74


$

117.31


(68.7)

%

Westin San Diego Downtown

436


$

145.28


$

205.24


(29.2)

%


17.2

%

89.5

%

(72.3)

%


$

24.94


$

183.74


(86.4)

%

Westin Washington D.C. City Center

410


$

120.95


$

178.39


(32.2)

%


5.7

%

91.1

%

(85.4)

%


$

6.94


$

162.54


(95.7)

%

Worthington Renaissance Fort Worth Hotel

504


$

146.84


$

175.26


(16.2)

%


9.2

%

64.0

%

(54.8)

%


$

13.45


$

112.15


(88.0)

%

Total Open for Entire Period - 23 Hotels

5,750


$

206.98


$

217.88


(5.0)

%


25.8

%

80.9

%

(55.1)

%


$

53.43


$

176.25


(69.7)

%














Total Partially Open During Period - 2 Hotels

661


$

167.77


$

297.78


(43.7)

%


3.6

%

92.6

%

(89.0)

%


$

6.10


$

275.66


(97.8)

%














Total Closed for Entire Period - 5 Hotels

3,189


$

—


$

228.51


(100.0)

%


—

%

86.0

%

(86.0)

%


$

—


$

196.41


(100.0)

%














Resorts - 12 Hotels

2,212


$

262.78


$

255.45


2.9

%


36.1

%

81.7

%

(45.6)

%


$

94.88


$

208.75


(54.5)

%














Portfolio Total (1)

9,600


$

206.29


$

227.63


(9.4)

%


15.7

%

83.4

%

(67.7)

%


$

32.41


$

189.79


(82.9)

%

 

(1)

Amounts exclude the operating results of Frenchman's Reef & Morning Star Marriott Beach Resort for all periods presented.

 


Operating Statistics – August




Number
of Rooms

ADR


Occupancy


RevPAR


August
2020

August

2019

B/(W) 2019


August 2020

August 2019

B/(W) 2019


August
2020

August
2019

B/(W) 2019



























Atlanta Marriott Alpharetta

318


$

94.35


$

161.59


(41.6)

%


12.3

%

71.7

%

(59.4)

%


$

11.63


$

115.81


(90.0)

%

Barbary Beach House Key West

184


$

181.40


$

199.25


(9.0)

%


35.0

%

70.4

%

(35.4)

%


$

63.41


$

140.18


(54.8)

%

Bethesda Marriott Suites

272


$

102.62


$

149.39


(31.3)

%


20.4

%

66.1

%

(45.7)

%


$

20.97


$

98.72


(78.8)

%

Cavallo Point, The Lodge at the Golden Gate

142


$

489.25


$

457.46


6.9

%


26.5

%

70.7

%

(44.2)

%


$

129.48


$

323.51


(60.0)

%

Courtyard Denver Downtown

177


$

103.06


$

219.37


(53.0)

%


28.7

%

84.3

%

(55.6)

%


$

29.60


$

184.87


(84.0)

%

Courtyard New York Manhattan/Midtown East

321


$

122.13


$

241.09


(49.3)

%


27.9

%

98.8

%

(70.9)

%


$

34.10


$

238.13


(85.7)

%

Havana Cabana Key West

106


$

142.09


$

176.93


(19.7)

%


71.9

%

86.7

%

(14.8)

%


$

102.22


$

153.35


(33.3)

%

Hilton Boston Downtown/Faneuil Hall

403


$

136.22


$

306.70


(55.6)

%


17.5

%

91.7

%

(74.2)

%


$

23.84


$

281.12


(91.5)

%

Hilton Burlington Lake Champlain

258


$

175.06


$

253.47


(30.9)

%


28.5

%

92.7

%

(64.2)

%


$

49.97


$

235.05


(78.7)

%

Hotel Emblem San Francisco

96


$

142.37


$

253.93


(43.9)

%


14.9

%

93.9

%

(79.0)

%


$

21.14


$

238.49


(91.1)

%

Hotel Palomar Phoenix

242


$

113.72


$

124.88


(8.9)

%


26.2

%

75.7

%

(49.5)

%


$

29.80


$

94.52


(68.5)

%

JW Marriott Denver Cherry Creek

199


$

202.38


$

262.08


(22.8)

%


39.4

%

87.1

%

(47.7)

%


$

79.82


$

228.26


(65.0)

%

Kimpton Shorebreak Resort

157


$

289.23


$

313.84


(7.8)

%


56.4

%

80.6

%

(24.2)

%


$

163.01


$

252.84


(35.5)

%

L'Auberge de Sedona

88


$

523.87


$

478.33


9.5

%


80.2

%

71.8

%

8.4

%


$

419.98


$

343.67


22.2

%

Orchards Inn Sedona

70


$

174.43


$

188.47


(7.4)

%


56.1

%

69.5

%

(13.4)

%


$

97.82


$

130.97


(25.3)

%

Renaissance Charleston Historic District Hotel

166


$

172.70


$

235.20


(26.6)

%


38.6

%

86.2

%

(47.6)

%


$

66.72


$

202.66


(67.1)

%

Salt Lake City Marriott Downtown at City Creek

510


$

125.39


$

168.07


(25.4)

%


11.5

%

76.1

%

(64.6)

%


$

14.42


$

127.98


(88.7)

%

The Gwen Hotel

311


$

191.55


$

273.02


(29.8)

%


15.2

%

93.1

%

(77.9)

%


$

29.21


$

254.10


(88.5)

%

The Landing Lake Tahoe Resort & Spa

82


$

506.70


$

393.55


28.8

%


85.1

%

86.6

%

(1.5)

%


$

430.95


$

340.92


26.4

%

The Lodge at Sonoma Renaissance Resort & Spa

182


$

246.17


$

349.13


(29.5)

%


42.8

%

80.0

%

(37.2)

%


$

105.24


$

279.45


(62.3)

%

Vail Marriott Mountain Resort

344


$

217.30


$

225.07


(3.5)

%


38.7

%

70.3

%

(31.6)

%


$

84.16


$

158.16


(46.8)

%

Westin Fort Lauderdale Beach Resort

433


$

128.52


$

134.69


(4.6)

%


32.6

%

68.5

%

(35.9)

%


$

41.91


$

92.26


(54.6)

%

Westin San Diego Downtown

436


$

140.96


$

181.40


(22.3)

%


24.8

%

85.6

%

(60.8)

%


$

34.91


$

155.20


(77.5)

%

Westin Washington D.C. City Center

410


$

122.37


$

145.02


(15.6)

%


10.9

%

92.0

%

(81.1)

%


$

13.35


$

133.35


(90.0)

%

Worthington Renaissance Fort Worth Hotel

504


$

131.77


$

167.32


(21.2)

%


20.3

%

68.6

%

(48.3)

%


$

26.76


$

114.76


(76.7)

%

Total Open for Entire Period - 25 Hotels

6,411


$

197.12


$

220.19


(10.5)

%


27.4

%

80.5

%

(53.1)

%


$

54.09


$

177.25


(69.5)

%














Total Closed for Entire Period - 5 Hotels

3,189


$

—


$

230.10


(100.0)

%


—

%

87.7

%

(87.7)

%


$

—


$

201.78


(100.0)

%














Resorts - 12 Hotels

2,212


$

251.92


$

256.01


(1.6)

%


42.3

%

76.7

%

(34.4)

%


$

106.62


$

196.45


(45.7)

%














Portfolio Total (1)

9,600


$

197.17


$

223.67


(11.8)

%


18.3

%

82.9

%

(64.6)

%


$

36.13


$

185.40


(80.5)

%

 

(1)

Amounts exclude the operating results of Frenchman's Reef & Morning Star Marriott Beach Resort for all periods presented.

 


Operating Statistics – September




Number
of Rooms

ADR


Occupancy


RevPAR


September 2020

September 2019

B/(W) 2019


September 2020

September 2019

B/(W) 2019


September 2020

September 2019

B/(W) 2019



























Atlanta Marriott Alpharetta

318


$

103.77


$

167.43


(38.0)

%


11.9

%

73.2

%

(61.3)

%


$

12.38


$

122.49


(89.9)

%

Barbary Beach House Key West

184


$

176.62


$

170.36


3.7

%


29.7

%

25.6

%

4.1

%


$

52.51


$

43.55


20.6

%

Bethesda Marriott Suites

272


$

101.38


$

201.33


(49.6)

%


21.1

%

72.0

%

(50.9)

%


$

21.38


$

144.95


(85.3)

%

Cavallo Point, The Lodge at the Golden Gate

142


$

560.76


$

465.89


20.4

%


35.2

%

70.6

%

(35.4)

%


$

197.58


$

328.86


(39.9)

%

Chicago Marriott Downtown Magnificent Mile

1,200


$

159.09


$

272.68


(41.7)

%


5.6

%

85.5

%

(79.9)

%


$

8.88


$

233.19


(96.2)

%

Courtyard Denver Downtown

177


$

105.75


$

228.07


(53.6)

%


34.0

%

84.2

%

(50.2)

%


$

35.99


$

191.99


(81.3)

%

Courtyard New York Manhattan/Midtown East

321


$

121.87


$

315.86


(61.4)

%


32.2

%

96.3

%

(64.1)

%


$

39.19


$

304.15


(87.1)

%

Havana Cabana Key West

106


$

135.51


$

135.65


(0.1)

%


74.7

%

77.8

%

(3.1)

%


$

101.30


$

105.49


(4.0)

%

Hilton Boston Downtown/Faneuil Hall

403


$

142.47


$

385.01


(63.0)

%


19.0

%

94.2

%

(75.2)

%


$

27.01


$

362.59


(92.6)

%

Hilton Burlington Lake Champlain

258


$

179.05


$

239.09


(25.1)

%


30.6

%

84.1

%

(53.5)

%


$

54.71


$

201.00


(72.8)

%

Hotel Emblem San Francisco

96


$

143.64


$

282.77


(49.2)

%


16.8

%

90.2

%

(73.4)

%


$

24.19


$

255.18


(90.5)

%

Hotel Palomar Phoenix

242


$

120.48


$

173.31


(30.5)

%


39.6

%

77.5

%

(37.9)

%


$

47.74


$

134.23


(64.4)

%

JW Marriott Denver Cherry Creek

199


$

208.25


$

267.46


(22.1)

%


47.9

%

86.1

%

(38.2)

%


$

99.80


$

230.32


(56.7)

%

Kimpton Shorebreak Resort

157


$

297.92


$

266.43


11.8

%


55.6

%

79.3

%

(23.7)

%


$

165.79


$

211.22


(21.5)

%

L'Auberge de Sedona

88


$

737.92


$

636.01


16.0

%


81.4

%

74.5

%

6.9

%


$

600.40


$

473.63


26.8

%

Orchards Inn Sedona

70


$

254.04


$

244.47


3.9

%


60.5

%

78.4

%

(17.9)

%


$

153.63


$

191.62


(19.8)

%

Renaissance Charleston Historic District Hotel

166


$

181.95


$

262.76


(30.8)

%


58.3

%

61.4

%

(3.1)

%


$

106.07


$

161.30


(34.2)

%

Salt Lake City Marriott Downtown at City Creek

510


$

121.61


$

194.57


(37.5)

%


17.2

%

74.4

%

(57.2)

%


$

20.86


$

144.76


(85.6)

%

The Gwen Hotel

311


$

195.31


$

298.63


(34.6)

%


24.3

%

90.9

%

(66.6)

%


$

47.39


$

271.59


(82.6)

%

The Landing Lake Tahoe Resort & Spa

82


$

448.50


$

307.08


46.1

%


69.9

%

86.3

%

(16.4)

%


$

313.40


$

265.01


18.3

%

The Lodge at Sonoma Renaissance Resort & Spa

182


$

249.97


$

355.67


(29.7)

%


42.3

%

90.2

%

(47.9)

%


$

105.80


$

320.89


(67.0)

%

Vail Marriott Mountain Resort

344


$

223.43


$

187.25


19.3

%


39.2

%

64.5

%

(25.3)

%


$

87.68


$

120.70


(27.4)

%

Westin Fort Lauderdale Beach Resort

433


$

141.06


$

152.48


(7.5)

%


30.0

%

59.7

%

(29.7)

%


$

42.28


$

91.02


(53.5)

%

Westin San Diego Downtown

436


$

147.81


$

191.24


(22.7)

%


27.2

%

82.8

%

(55.6)

%


$

40.19


$

158.33


(74.6)

%

Westin Washington D.C. City Center

410


$

123.46


$

214.99


(42.6)

%


10.3

%

88.9

%

(78.6)

%


$

12.77


$

191.08


(93.3)

%

Worthington Renaissance Fort Worth Hotel

504


$

148.80


$

189.59


(21.5)

%


22.9

%

76.1

%

(53.2)

%


$

34.07


$

144.20


(76.4)

%

Total Open for Entire Period - 26 Hotels

7,611


$

205.34


$

251.10


(18.2)

%


26.4

%

79.1

%

(52.7)

%


$

54.20


$

198.52


(72.7)

%














Total Partially Open During Period - 1 Hotel

793


$

141.34


$

291.30


(51.5)

%


11.6

%

86.7

%

(75.1)

%


$

16.46


$

252.45


(93.5)

%














Total Closed for Entire Period - 3 Hotels

1,196


$

—


$

326.45


(100.0)

%


—

%

94.9

%

(94.9)

%


$

—


$

309.96


(100.0)

%














Resorts - 12 Hotels

2,212


$

274.19


$

261.08


5.0

%


43.4

%

68.2

%

(24.8)

%


$

119.00


$

178.05


(33.2)

%














Portfolio Total (1)

9,600


$

202.53


$

265.54


(23.7)

%


21.9

%

81.7

%

(59.8)

%


$

44.33


$

216.86


(79.6)

%

 

(1) 

Amounts exclude the operating results of Frenchman's Reef & Morning Star Marriott Beach Resort for all periods presented.

 

     


Operating Statistics – Third Quarter




Number
of Rooms

ADR


Occupancy


RevPAR


3Q 2020

3Q 2019

B/(W) 2019


3Q 2020

3Q 2019

B/(W) 2019


3Q 2020

3Q 2019

B/(W) 2019



























Atlanta Marriott Alpharetta

318


$

96.94


$

163.80


(40.8)

%


13.3

%

72.9

%

(59.6)

%


$

12.89


$

119.41


(89.2)

%

Barbary Beach House Key West

184


$

194.90


$

205.47


(5.1)

%


33.6

%

61.4

%

(27.8)

%


$

65.49


$

126.16


(48.1)

%

Bethesda Marriott Suites

272


$

104.27


$

167.95


(37.9)

%


19.0

%

70.4

%

(51.4)

%


$

19.85


$

118.20


(83.2)

%

Cavallo Point, The Lodge at the Golden Gate

142


$

511.24


$

469.36


8.9

%


26.0

%

68.1

%

(42.1)

%


$

133.09


$

319.72


(58.4)

%

Courtyard Denver Downtown

177


$

105.53


$

218.40


(51.7)

%


29.1

%

85.9

%

(56.8)

%


$

30.71


$

187.70


(83.6)

%

Courtyard New York Manhattan/Midtown East

321


$

133.02


$

266.37


(50.1)

%


38.8

%

97.4

%

(58.6)

%


$

51.60


$

259.56


(80.1)

%

Havana Cabana Key West

106


$

152.98


$

170.13


(10.1)

%


69.0

%

85.9

%

(16.9)

%


$

105.59


$

146.13


(27.7)

%

Hotel Emblem San Francisco

96


$

141.40


$

247.06


(42.8)

%


14.3

%

91.7

%

(77.4)

%


$

20.22


$

226.47


(91.1)

%

Hotel Palomar Phoenix

242


$

118.13


$

143.55


(17.7)

%


28.8

%

73.4

%

(44.6)

%


$

34.05


$

105.30


(67.7)

%

JW Marriott Denver Cherry Creek

199


$

204.28


$

262.04


(22.0)

%


39.4

%

85.9

%

(46.5)

%


$

80.55


$

225.20


(64.2)

%

Kimpton Shorebreak Resort

157


$

290.80


$

306.54


(5.1)

%


53.5

%

81.8

%

(28.3)

%


$

155.54


$

250.72


(38.0)

%

L'Auberge de Sedona

88


$

606.77


$

533.79


13.7

%


76.5

%

71.7

%

4.8

%


$

464.45


$

382.61


21.4

%

Orchards Inn Sedona

70


$

197.72


$

207.09


(4.5)

%


59.5

%

74.3

%

(14.8)

%


$

117.56


$

153.97


(23.6)

%

Renaissance Charleston Historic District Hotel

166


$

174.20


$

239.40


(27.2)

%


44.5

%

77.9

%

(33.4)

%


$

77.55


$

186.38


(58.4)

%

Salt Lake City Marriott Downtown at City Creek

510


$

122.16


$

179.29


(31.9)

%


12.9

%

76.1

%

(63.2)

%


$

15.76


$

136.50


(88.5)

%

The Gwen Hotel

311


$

196.22


$

280.57


(30.1)

%


20.8

%

91.3

%

(70.5)

%


$

40.74


$

256.27


(84.1)

%

The Landing Lake Tahoe Resort & Spa

82


$

494.05


$

376.60


31.2

%


78.5

%

86.4

%

(7.9)

%


$

387.76


$

325.43


19.2

%

The Lodge at Sonoma Renaissance Resort & Spa

182


$

248.29


$

349.59


(29.0)

%


43.6

%

83.8

%

(40.2)

%


$

108.28


$

292.92


(63.0)

%

Vail Marriott Mountain Resort

344


$

219.00


$

212.25


3.2

%


37.6

%

70.4

%

(32.8)

%


$

82.35


$

149.45


(44.9)

%

Westin Fort Lauderdale Beach Resort

433


$

136.40


$

144.14


(5.4)

%


29.5

%

69.6

%

(40.1)

%


$

40.29


$

100.29


(59.8)

%

Westin San Diego Downtown

436


$

144.69


$

192.85


(25.0)

%


23.0

%

86.0

%

(63.0)

%


$

33.27


$

165.84


(79.9)

%

Westin Washington D.C. City Center

410


$

122.48


$

178.69


(31.5)

%


9.0

%

90.7

%

(81.7)

%


$

11.00


$

162.01


(93.2)

%

Worthington Renaissance Fort Worth Hotel

504


$

141.75


$

177.73


(20.2)

%


17.4

%

69.5

%

(52.1)

%


$

24.66


$

123.48


(80.0)

%

Total Open for Entire Period - 23 Hotels

5,750


$

206.32


$

221.13


(6.7)

%


28.3

%

78.9

%

(50.6)

%


$

58.38


$

174.38


(66.5)

%














Total Partially Open During Period - 4 Hotels

2,654


$

155.86


$

263.43


(40.8)

%


6.0

%

85.4

%

(79.4)

%


$

9.35


$

224.87


(95.8)

%














Total Closed for Entire Period - 3 Hotels

1,196


$

—


$

258.16


(100.0)

%


—

%

94.9

%

(94.9)

%


$

—


$

245.02


(100.0)

%














Resorts - 12 Hotels

2,212


$

262.94


$

257.29


2.2

%


40.6

%

75.6

%

(35.0)

%


$

106.70


$

194.59


(45.2)

%














Portfolio Total (1)

9,600


$

201.82


$

238.50


(15.4)

%


18.6

%

82.7

%

(64.1)

%


$

37.55


$

197.14


(81.0)

%

 

(1)

Amounts exclude the operating results of Frenchman's Reef & Morning Star Marriott Beach Resort for all periods presented.

 


Operating Statistics – Year to Date




Number
of Rooms

ADR


Occupancy


RevPAR


YTD 2020

YTD 2019

B/(W) 2019


YTD 2020

YTD 2019

B/(W) 2019


YTD 2020

YTD 2019

B/(W) 2019



























Atlanta Marriott Alpharetta

318


$

154.29


$

166.97


(7.6)

%


23.8

%

72.7

%

(48.9)

%


$

36.70


$

121.42


(69.8)

%

Bethesda Marriott Suites

272


$

150.98


$

176.98


(14.7)

%


23.6

%

73.0

%

(49.4)

%


$

35.60


$

129.23


(72.5)

%

Courtyard New York Manhattan/Midtown East

321


$

150.19


$

244.82


(38.7)

%


63.7

%

95.6

%

(31.9)

%


$

95.61


$

234.03


(59.1)

%

Kimpton Shorebreak Resort

157


$

237.64


$

268.57


(11.5)

%


54.6

%

78.7

%

(24.1)

%


$

129.77


$

211.27


(38.6)

%

L'Auberge de Sedona

88


$

585.16


$

596.05


(1.8)

%


59.1

%

78.6

%

(19.5)

%


$

345.92


$

468.42


(26.2)

%

Salt Lake City Marriott Downtown at City Creek

510


$

158.91


$

173.43


(8.4)

%


22.9

%

69.4

%

(46.5)

%


$

36.39


$

120.42


(69.8)

%

Westin Fort Lauderdale Beach Resort

433


$

224.57


$

204.38


9.9

%


42.8

%

81.8

%

(39.0)

%


$

96.09


$

167.26


(42.6)

%

Westin San Diego Downtown

436


$

175.26


$

194.30


(9.8)

%


39.2

%

82.0

%

(42.8)

%


$

68.65


$

159.39


(56.9)

%

Westin Washington D.C. City Center

410


$

182.86


$

206.84


(11.6)

%


23.6

%

86.9

%

(63.3)

%


$

43.20


$

179.77


(76.0)

%

Worthington Renaissance Fort Worth Hotel

504


$

177.91


$

186.24


(4.5)

%


28.7

%

75.4

%

(46.7)

%


$

51.10


$

140.50


(63.6)

%

Total Open for Entire Period - 10 Hotels

3,449


$

197.62


$

209.05


(5.5)

%


34.7

%

79.2

%

(44.5)

%


$

68.55


$

165.59


(58.6)

%














Total Partially Open During Period - 20 Hotels

6,151


$

218.13


$

250.81


(13.0)

%


25.4

%

79.9

%

(54.5)

%


$

55.35


$

200.52


(72.4)

%














Resorts - 12 Hotels

2,212


$

283.93


$

272.92


4.0

%


38.9

%

77.0

%

(38.1)

%


$

110.53


$

210.13


(47.4)

%














Portfolio Total (1)

9,600


$

209.23


$

235.89


(11.3)

%


28.7

%

79.7

%

(51.0)

%


$

60.09


$

187.96


(68.0)

%

 

(1)

Amounts exclude the operating results of Frenchman's Reef & Morning Star Marriott Beach Resort for all periods presented.

 

 

Hotel Adjusted EBITDA Reconciliation





Third Quarter 2020







Plus:

Plus:

Plus:

Equals:



Days of Operation

Total Revenues


Net Income / (Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted EBITDA

Atlanta Marriott Alpharetta


92

$

434



$

(958)


$

357


$

—


$

—


$

(601)


Barbary Beach House Key West


92

$

1,586



$

(924)


$

669


$

—


$

—


$

(255)


Bethesda Marriott Suites


92

$

577



$

(2,735)


$

522


$

—


$

1,502


$

(711)


Cavallo Point, The Lodge at the Golden Gate


92

$

3,565



$

(1,755)


$

1,841


$

—


$

94


$

180


Chicago Marriott Downtown Magnificent Mile


30

$

615



$

(8,789)


$

4,155


$

62


$

(397)


$

(4,969)


Courtyard Denver Downtown


92

$

674



$

(452)


$

373


$

—


$

—


$

(79)


Courtyard New York Manhattan/Fifth Avenue


—

$

52



$

(2,108)


$

331


$

—


$

253


$

(1,524)


Courtyard New York Manhattan/Midtown East


92

$

1,551



$

(2,680)


$

488


$

952


$

—


$

(1,240)


Frenchman's Reef & Morning Star Marriott Beach Resort


—

$

—



$

—


$

—


$

—


$

—


$

—


Havana Cabana Key West


92

$

1,668



$

77


$

274


$

—


$

—


$

351


Hilton Boston Downtown/Faneuil Hall


62

$

1,070



$

(1,840)


$

1,239


$

—


$

—


$

(601)


Hilton Burlington Lake Champlain


77

$

1,135



$

(680)


$

627


$

—


$

—


$

(53)


Hilton Garden Inn New York/Times Square Central


—

$

55



$

(2,103)


$

846


$

—


$

—


$

(1,257)


Hotel Emblem San Francisco


92

$

220



$

(642)


$

386


$

—


$

—


$

(256)


Hotel Palomar Phoenix


92

$

1,192



$

(1,298)


$

672


$

39


$

286


$

(301)


JW Marriott Denver Cherry Creek


92

$

2,382



$

(1,655)


$

782


$

679


$

6


$

(188)


Kimpton Shorebreak Resort


92

$

3,265



$

687


$

411


$

—


$

—


$

1,098


L'Auberge de Sedona


92

$

5,461



$

1,476


$

640


$

—


$

—


$

2,116


Orchards Inn Sedona


92

$

1,046



$

(16)


$

80


$

—


$

42


$

106


Renaissance Charleston Historic District Hotel


92

$

1,409



$

(495)


$

432


$

—


$

(21)


$

(84)


Salt Lake City Marriott Downtown at City Creek


92

$

1,038



$

(1,826)


$

552


$

538


$

—


$

(736)


The Gwen Hotel


92

$

1,867



$

(1,830)


$

1,104


$

—


$

—


$

(726)


The Landing Lake Tahoe Resort & Spa


92

$

4,217



$

1,730


$

416


$

—


$

—


$

2,146


The Lexington Hotel


—

$

153



$

(5,235)


$

2,445


$

6


$

8


$

(2,776)


The Lodge at Sonoma Renaissance Resort & Spa


92

$

2,329



$

(1,421)


$

478


$

274


$

—


$

(669)


Vail Marriott Mountain Resort


92

$

3,851



$

(601)


$

1,117


$

—


$

—


$

516


Westin Boston Waterfront


28

$

877



$

(7,859)


$

2,593


$

2,140


$

(60)


$

(3,186)


Westin Fort Lauderdale Beach Resort


92

$

4,003



$

(1,966)


$

1,118


$

—


$

—


$

(848)


Westin San Diego Downtown


92

$

1,600



$

(2,444)


$

1,124


$

621


$

—


$

(699)


Westin Washington D.C. City Center


92

$

486



$

(3,290)


$

1,316


$

640


$

—


$

(1,334)


Worthington Renaissance Fort Worth Hotel


92

$

1,689



$

(2,685)


$

1,126


$

769


$

2


$

(788)


Total



$

50,067



$

(54,317)


$

28,514


$

6,720


$

1,715


$

(17,368)


Less: Frenchman's Reef & Morning Star Marriott Beach Resort



$

—



$

—


$

—


$

—


$

—


$

—


Comparable Total



$

50,067



$

(54,317)


$

28,514


$

6,720


$

1,715


$

(17,368)


 

(1)

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

 

 

 

Hotel Adjusted EBITDA Reconciliation




Third Quarter 2019






Plus:

Plus:

Plus:

Equals:



Total Revenues


Net Income / (Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted EBITDA

Atlanta Marriott Alpharetta


$

4,787



$

1,123


$

455


$

—


$

—


$

1,578


Barbary Beach House Key West


$

2,666



$

(55)


$

351


$

—


$

—


$

296


Bethesda Marriott Suites


$

3,880



$

(1,078)


$

471


$

—


$

1,514


$

907


Cavallo Point, The Lodge at the Golden Gate


$

10,633



$

1,327


$

1,828


$

—


$

79


$

3,234


Chicago Marriott Downtown Magnificent Mile


$

32,503



$

6,887


$

4,166


$

(8)


$

(397)


$

10,648


Courtyard Denver Downtown


$

3,344



$

1,393


$

298


$

—


$

—


$

1,691


Courtyard New York Manhattan/Fifth Avenue


$

4,191



$

103


$

449


$

—


$

253


$

805


Courtyard New York Manhattan/Midtown East


$

7,909



$

570


$

697


$

970


$

—


$

2,237


Frenchman's Reef & Morning Star Marriott Beach Resort


$

1



$

(2)


$

—


$

—


$

—


$

(2)


Havana Cabana Key West


$

1,996



$

87


$

260


$

—


$

—


$

347


Hilton Boston Downtown/Faneuil Hall


$

12,504



$

4,271


$

1,231


$

—


$

—


$

5,502


Hilton Burlington Lake Champlain


$

6,121



$

2,451


$

486


$

—


$

—


$

2,937


Hilton Garden Inn New York/Times Square Central


$

6,508



$

944


$

838


$

—


$

—


$

1,782


Hotel Emblem San Francisco


$

2,305



$

399


$

297


$

—


$

—


$

696


Hotel Palomar Phoenix


$

4,325



$

(424)


$

662


$

39


$

293


$

570


JW Marriott Denver Cherry Creek


$

5,907



$

269


$

746


$

692


$

6


$

1,713


Kimpton Shorebreak Resort


$

5,281



$

1,808


$

348


$

—


$

40


$

2,196


L'Auberge de Sedona


$

5,636



$

727


$

508


$

—


$

—


$

1,235


Orchards Inn Sedona


$

1,598



$

(11)


$

238


$

—


$

42


$

269


Renaissance Charleston Historic District Hotel


$

3,398



$

642


$

421


$

—


$

(32)


$

1,031


Salt Lake City Marriott Downtown at City Creek


$

8,849



$

2,368


$

575


$

608


$

—


$

3,551


The Gwen Hotel


$

10,771



$

3,256


$

1,077


$

—


$

—


$

4,333


The Landing Lake Tahoe Resort & Spa


$

4,060



$

1,086


$

418


$

—


$

—


$

1,504


The Lexington Hotel


$

18,337



$

1,319


$

3,607


$

6


$

8


$

4,940


The Lodge at Sonoma Renaissance Resort & Spa


$

7,549



$

2,070


$

508


$

281


$

—


$

2,859


Vail Marriott Mountain Resort


$

8,109



$

1,140


$

1,011


$

—


$

—


$

2,151


Westin Boston Waterfront


$

24,009



$

2,413


$

2,418


$

2,182


$

(60)


$

6,953


Westin Fort Lauderdale Beach Resort


$

8,131



$

(949)


$

1,675


$

—


$

—


$

726


Westin San Diego Downtown


$

8,654



$

1,439


$

1,135


$

637


$

—


$

3,211


Westin Washington D.C. City Center


$

7,829



$

280


$

1,310


$

663


$

—


$

2,253


Worthington Renaissance Fort Worth Hotel


$

8,488



$

(132)


$

990


$

784


$

2


$

1,644


Total


$

240,279



$

35,721


$

29,474


$

6,854


$

1,748


$

73,748


Less: Frenchman's Reef & Morning Star Marriott Beach Resort


$

(1)



$

2


$

—


$

—


$

—


$

2


Comparable Total


$

240,278



$

35,723


$

29,474


$

6,854


$

1,748


$

73,750


 

(1)

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

 

Hotel Adjusted EBITDA Reconciliation





Year to Date 2020







Plus:

Plus:

Plus:

Equals:



Days of Operation

Total Revenues


Net Income / (Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted EBITDA

Atlanta Marriott Alpharetta


274

$

4,693



$

(1,183)


$

1,091


$

—


$

—


$

(92)


Barbary Beach House Key West


204

$

7,510



$

(1,008)


$

2,026


$

—


$

—


$

1,018


Bethesda Marriott Suites


274

$

3,555



$

(7,790)


$

1,728


$

—


$

4,522


$

(1,540)


Cavallo Point, The Lodge at the Golden Gate


175

$

11,417



$

(5,762)


$

5,547


$

—


$

281


$

66


Chicago Marriott Downtown Magnificent Mile


130

$

14,459



$

(25,975)


$

12,559


$

170


$

(1,192)


$

(14,438)


Courtyard Denver Downtown


201

$

2,338



$

(1,167)


$

1,092


$

—


$

—


$

(75)


Courtyard New York Manhattan/Fifth Avenue


86

$

2,377



$

(5,638)


$

1,111


$

—


$

760


$

(3,767)


Courtyard New York Manhattan/Midtown East


274

$

8,670



$

(6,610)


$

1,779


$

2,875


$

—


$

(1,956)


Frenchman's Reef & Morning Star Marriott Beach Resort


—

$

—



$

—


$

—


$

—


$

—


$

—


Havana Cabana Key West


204

$

4,832



$

368


$

799


$

—


$

—


$

1,167


Hilton Boston Downtown/Faneuil Hall


144

$

6,589



$

(5,223)


$

3,686


$

—


$

—


$

(1,537)


Hilton Burlington Lake Champlain


167

$

2,832



$

(2,666)


$

1,632


$

—


$

—


$

(1,034)


Hilton Garden Inn New York/Times Square Central


88

$

3,276



$

(6,342)


$

2,536


$

—


$

—


$

(3,806)


Hotel Emblem San Francisco


179

$

2,062



$

(1,434)


$

962


$

—


$

—


$

(472)


Hotel Palomar Phoenix


192

$

8,036



$

(1,519)


$

2,017


$

116


$

865


$

1,479


JW Marriott Denver Cherry Creek


203

$

6,043



$

(5,200)


$

2,124


$

2,031


$

18


$

(1,027)


Kimpton Shorebreak Resort


274

$

8,301



$

643


$

1,230


$

—


$

27


$

1,900


L'Auberge de Sedona


274

$

12,643



$

963


$

2,000


$

—


$

—


$

2,963


Orchards Inn Sedona


229

$

2,655



$

(387)


$

377


$

—


$

126


$

116


Renaissance Charleston Historic District Hotel


236

$

5,101



$

(732)


$

1,279


$

—


$

(85)


$

462


Salt Lake City Marriott Downtown at City Creek


274

$

8,666



$

(2,524)


$

1,663


$

1,712


$

—


$

851


The Gwen Hotel


203

$

6,872



$

(5,790)


$

3,327


$

—


$

—


$

(2,463)


The Landing Lake Tahoe Resort & Spa


200

$

6,664



$

903


$

1,251


$

—


$

—


$

2,154


The Lexington Hotel


88

$

8,857



$

(19,230)


$

9,107


$

18


$

24


$

(10,081)


The Lodge at Sonoma Renaissance Resort & Spa


172

$

5,934



$

(4,159)


$

1,375


$

822


$

—


$

(1,962)


Vail Marriott Mountain Resort


190

$

16,413



$

472


$

3,348


$

—


$

—


$

3,820


Westin Boston Waterfront


112

$

17,551



$

(19,193)


$

7,762


$

6,405


$

(180)


$

(5,206)


Westin Fort Lauderdale Beach Resort


274

$

23,075



$

1,659


$

3,263


$

—


$

—


$

4,922


Westin San Diego Downtown


274

$

11,684



$

(3,383)


$

3,385


$

1,861


$

—


$

1,863


Westin Washington D.C. City Center


274

$

6,022



$

(8,319)


$

3,958


$

1,925


$

—


$

(2,436)


Worthington Renaissance Fort Worth Hotel


274

$

11,314



$

(6,490)


$

3,383


$

2,302


$

6


$

(799)


Total



$

240,441



$

(142,716)


$

87,397


$

20,237


$

5,172


$

(29,907)


Less: Frenchman's Reef & Morning Star Marriott Beach Resort



$

—



$

—


$

—


$

—


$

—


$

—


Comparable Total



$

240,441



$

(142,716)


$

87,397


$

20,237


$

5,172


$

(29,907)


 

(1)

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

 

 

Hotel Adjusted EBITDA Reconciliation




Year to Date 2019






Plus:

Plus:

Plus:

Equals:



Total Revenues


Net Income / (Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted EBITDA

Atlanta Marriott Alpharetta


$

14,959



$

3,891


$

1,389


$

—


$

—


$

5,280


Barbary Beach House Key West


$

12,906



$

3,557


$

1,033


$

—


$

—


$

4,590


Bethesda Marriott Suites


$

13,051



$

(2,031)


$

1,422


$

—


$

4,555


$

3,946


Cavallo Point, The Lodge at the Golden Gate


$

30,600



$

2,374


$

5,557


$

—


$

221


$

8,152


Chicago Marriott Downtown Magnificent Mile


$

83,224



$

12,127


$

12,461


$

110


$

(1,192)


$

23,506


Courtyard Denver Downtown


$

8,881



$

3,407


$

881


$

—


$

—


$

4,288


Courtyard New York Manhattan/Fifth Avenue


$

11,417



$

(519)


$

1,330


$

—


$

760


$

1,571


Courtyard New York Manhattan/Midtown East


$

21,213



$

(70)


$

2,077


$

2,891


$

—


$

4,898


Frenchman's Reef & Morning Star Marriott Beach Resort


$

—



$

8,798


$

—


$

—


$

—


$

8,798


Havana Cabana Key West


$

7,351



$

2,035


$

740


$

—


$

—


$

2,775


Hilton Boston Downtown/Faneuil Hall


$

32,337



$

9,124


$

3,708


$

—


$

—


$

12,832


Hilton Burlington Lake Champlain


$

14,031



$

3,917


$

1,500


$

—


$

—


$

5,417


Hilton Garden Inn New York/Times Square Central


$

18,222



$

1,731


$

2,509


$

—


$

—


$

4,240


Hotel Emblem San Francisco


$

5,649



$

323


$

868


$

—


$

—


$

1,191


Hotel Palomar Phoenix


$

18,008



$

2,319


$

1,991


$

116


$

883


$

5,309


JW Marriott Denver Cherry Creek


$

14,380



$

(944)


$

1,975


$

2,062


$

18


$

3,111


Kimpton Shorebreak Resort


$

13,704



$

3,586


$

1,046


$

—


$

121


$

4,753


L'Auberge de Sedona


$

19,259



$

3,688


$

1,525


$

—


$

—


$

5,213


Orchards Inn Sedona


$

5,890



$

884


$

713


$

—


$

126


$

1,723


Renaissance Charleston Historic District Hotel


$

11,566



$

3,438


$

1,242


$

—


$

(95)


$

4,585


Salt Lake City Marriott Downtown at City Creek


$

23,586



$

5,120


$

1,680


$

1,818


$

—


$

8,618


The Gwen Hotel


$

25,709



$

4,030


$

3,285


$

—


$

—


$

7,315


The Landing Lake Tahoe Resort & Spa


$

7,618



$

294


$

1,179


$

—


$

—


$

1,473


The Lexington Hotel


$

47,872



$

(1,778)


$

10,697


$

17


$

24


$

8,960


The Lodge at Sonoma Renaissance Resort & Spa


$

19,023



$

3,234


$

1,571


$

840


$

—


$

5,645


Vail Marriott Mountain Resort


$

27,989



$

6,063


$

3,035


$

—


$

—


$

9,098


Westin Boston Waterfront


$

70,991



$

6,286


$

7,266


$

6,506


$

(180)


$

19,878


Westin Fort Lauderdale Beach Resort


$

38,246



$

7,223


$

4,853


$

—


$

—


$

12,076


Westin San Diego Downtown


$

26,333



$

4,769


$

3,397


$

1,901


$

—


$

10,067


Westin Washington D.C. City Center


$

25,238



$

2,075


$

3,948


$

1,986


$

—


$

8,009


Worthington Renaissance Fort Worth Hotel


$

31,319



$

5,597


$

2,927


$

2,340


$

6


$

10,870


Total


$

700,572



$

104,548


$

87,805


$

20,587


$

5,247


$

218,028


Less: Frenchman's Reef & Morning Star Marriott Beach Resort


$

—



$

(8,798)


$

—


$

—


$

—


$

(8,798)


Comparable Total


$

700,572



$

95,750


$

87,805


$

20,587


$

5,247


$

209,230


 

(1)

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

         

Cision View original content:http://www.prnewswire.com/news-releases/diamondrock-hospitality-company-reports-third-quarter-2020-results-301167527.html

SOURCE DiamondRock Hospitality Company

FAQ

What were DiamondRock Hospitality's financial results for Q3 2020?

For Q3 2020, DiamondRock reported a net loss of $79.6 million and total revenues of $50.1 million, a decrease of 79.2% from Q3 2019.

How did COVID-19 affect DiamondRock Hospitality's operations?

COVID-19 led to the suspension of operations at 20 of DiamondRock's hotels and a significant decline in RevPAR, down 81% compared to 2019.

What is the current liquidity situation of DiamondRock Hospitality?

As of September 30, 2020, DiamondRock's liquidity increased to $434.5 million, including unrestricted corporate cash and cash at hotels.

What steps is DiamondRock Hospitality taking to improve its business post-pandemic?

DiamondRock is focusing on balance sheet strength and has converted five management agreements to more flexible options to enhance operational efficiency.

What was the impact of DiamondRock's preferred stock offering?

The preferred stock offering generated approximately $114.5 million in net proceeds, bolstering the company's liquidity during the pandemic.

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