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DIAMONDROCK HOSPITALITY COMPANY REPORTS SECOND QUARTER RESULTS

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BETHESDA, Md., Aug. 3, 2023 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 36 premium hotels and resorts in the United States, today announced results of operations for the quarter ended June 30, 2023.

Second Quarter 2023 Highlights

  • Net Income: Net income was $39.1 million and earnings per diluted share was $0.17.
  • Comparable Revenues: Comparable total revenues were $289.3 million, a 0.9% increase over 2022 and a 9.3% increase over 2019.
  • Comparable RevPAR: Comparable RevPAR was $226.41, a 0.5% increase over 2022 and a 8.0% increase over 2019.
  • Comparable Hotel Adjusted EBITDA: Comparable Hotel Adjusted EBITDA was $93.6 million, a 9.7% decrease over 2022 and a 3.5% increase over 2019.
  • Comparable Hotel Adjusted EBITDA Margin: Comparable Hotel Adjusted EBITDA margin was 32.36%, a 381 basis point decrease over 2022 and a 178 basis point decrease over 2019.
  • Adjusted EBITDA: Adjusted EBITDA was $85.8 million, a 6.7% decrease over 2022 and a 5.8% increase over 2019.
  • Adjusted FFO: Adjusted FFO was $67.3 million and Adjusted FFO per diluted share was $0.32.
  • Share Repurchases: The Company repurchased 262,054 shares of its common stock at an average price of $7.67 per share for a total purchase price of $2.0 million during the second quarter.

Recent Developments

  • Hotel Acquisition: The Company acquired Chico Hot Springs Resort located in Paradise Valley, Montana for $33.0 million on August 1, 2023.
  • Hotel Rebranding: The Company completed the rebranding of the Hilton Boston Downtown/Faneuil Hall to The Dagny, an independent lifestyle boutique hotel, on August 1, 2023.

"The DiamondRock portfolio delivered a new record for comparable revenues in the quarter even as it made major investments into its portfolio to secure future performance. Our urban portfolio delivered strong total revenue growth of 7.1% with solid performance from group, but the rate of improvement in business transient demand appears to be moderating. Competition from international destinations and cruise lines led our smaller portfolio of resorts to rebalance to a 'new normal' with total revenues declining 8.3%. However, revenues from our resorts remained 33.1% ahead of the comparable period in 2019 as destination resorts remain the biggest winner from an acceleration in the secular demand for leisure travel.  After quarter end, we completed the major repositioning of The Dagny in Boston as well as acquiring a very attractive boutique resort in Montana," said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company.  

Operating Results 

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 include all hotels currently owned for all periods presented, except the Kimpton Fort Lauderdale Beach Resort, which opened in April 2021.  See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts.


Quarter Ended June 30,


Change From


2023


2022


2019


2022


2019


($ amounts in millions, except hotel statistics and per share amounts)

Comparable Operating Results (1)










ADR

$            294.66


$            300.68


$            254.63


(2.0) %


15.7 %

Occupancy

76.8 %


74.9 %


82.3 %


1.9 %


(5.5) %

RevPAR

$            226.41


$            225.19


$            209.59


0.5 %


8.0 %

Total RevPAR

$            333.88


$            331.56


$            306.75


0.7 %


8.8 %

Revenues

$              289.3


$              286.6


$              264.7


0.9 %


9.3 %

Hotel Adjusted EBITDA

$                93.6


$              103.7


$                90.4


(9.7) %


3.5 %

Hotel Adjusted EBITDA Margin

32.36 %


36.17 %


34.14 %


(381 bps)


(178 bps)

Available Rooms

866,411


864,323


863,014


2,088


3,397











Actual Operating Results (2)










Revenues

$              291.2


$              281.4


$              257.9


3.5 %


12.9 %

Net income

$                39.1


$                52.7


$                29.1


(25.8) %


34.4 %

Earnings per diluted share

$                0.17


$                0.23


$                0.14


(26.1) %


21.4 %

Adjusted EBITDA

$                85.8


$                92.0


$                81.1


(6.7) %


5.8 %

Adjusted FFO

$                67.3


$                76.5


$                65.1


(12.0) %


3.4 %

Adjusted FFO per diluted share

$                0.32


$                0.36


$                0.32


(11.1) %


— %

 


Six Months Ended June 30,


Change From


2023


2022


2019


2022


2019


($ amounts in millions, except hotel statistics and per share amounts)

Comparable Operating Results (1)










ADR

$            286.94


$            293.47


$            241.22


(2.2) %


19.0 %

Occupancy

71.8 %


65.4 %


77.3 %


6.4 %


(5.5) %

RevPAR

$            205.94


$            192.05


$            186.36


7.2 %


10.5 %

Total RevPAR

$            307.45


$            285.23


$            276.90


7.8 %


11.0 %

Revenues

$              529.7


$              490.3


$              475.2


8.0 %


11.5 %

Hotel Adjusted EBITDA

$              155.5


$              157.1


$              142.2


(1.0) %


9.4 %

Hotel Adjusted EBITDA Margin

29.37 %


32.04 %


29.91 %


(267 bps)


(54 bps)

Available Rooms

1,722,727


1,718,765


1,716,288


3,962


6,439











Actual Operating Results (2)










Revenues

$              534.8


$              478.2


$              460.3


11.8 %


16.2 %

Net income

$                48.3


$                62.8


$                38.1


(23.1) %


26.8 %

Earnings per diluted share

$                0.20


$                0.27


$                0.19


(25.9) %


5.3 %

Adjusted EBITDA

$              141.1


$              136.9


$              130.2


3.1 %


8.4 %

Adjusted FFO

$              105.3


$              107.3


$              107.1


(1.9) %


(1.7) %

Adjusted FFO per diluted share

$                0.49


$                0.50


$                0.53


(2.0) %


(7.5) %



(1)

Amounts represent the pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021, Henderson Park Inn from January 1, 2019 to July 29, 2021, Henderson Beach Resort from January 1, 2019 to December 22, 2021, Tranquility Bay Beachfront Resort from January 1, 2019 to January 5, 2022 and Lake Austin Spa Resort from January 1, 2019 to November 20, 2022 and exclude the operating results of the Kimpton Fort Lauderdale Beach Resort as the hotel opened in April 2021.  The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.

(2)

Actual operating results include the operating results of all hotels for the Company's respective ownership periods.

Ground Lease Buyout

On April 20, 2023, the Company acquired the fee simple interest in a land parcel underlying the parking structure at the Renaissance Worthington Hotel that had been subject to a ground lease. The purchase price of $1.8 million represents a 5.2% capitalization rate on the annual rent.

Capital Expenditures

The Company invested approximately $47.9 million in capital improvements at its hotels during the six months ended June 30, 2023. The Company continues to expect to spend $100 million to $115 million on capital improvements at its hotels in 2023.  Significant projects in 2023 include the following:

  • Hilton Boston Downtown/Faneuil Hall: The Company completed a comprehensive renovation to rebrand the hotel as The Dagny, an independent lifestyle hotel.
  • Salt Lake City Marriott: The Company is in the process of completing a renovation of the guestrooms, which is expected to be completed in the third quarter of 2023.
  • Hilton Burlington Lake Champlain: The Company commenced a repositioning of the hotel to rebrand it as a Curio Collection hotel. The repositioning is expected to be completed in the first quarter of 2024 and includes a new restaurant concept by a well-known, award-winning chef.

Share Repurchase Program

During the quarter ended June 30, 2023, the Company repurchased 262,054 shares of its common stock at an average price of $7.67 per share for a total purchase price of $2.0 million.  Since October 2022, the Company has repurchased 1.9 million shares of it common stock at an average price of $7.77 per share.

Balance Sheet and Liquidity

The Company ended the quarter with $604.8 million of liquidity, comprised of $98.6 million of unrestricted corporate cash, $106.2 million of unrestricted cash at its hotels and full capacity on its $400 million senior unsecured credit facility.  As of June 30, 2023, the Company had $1.2 billion of total debt outstanding, which consisted of $800.0 million of unsecured term loans and $383.0 million of property-specific, non-recourse mortgage debt.  

Dividends

The Company declared a quarterly cash dividend of $0.03 per common share, which was was paid on July 12, 2023 to shareholders of record as of June 30, 2023.  The Company paid a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock on June 30, 2023 to shareholders of record as of June 20, 2023.

Earnings Call 

The Company will host a conference call to discuss its second quarter results on Thursday, August 3, 2023, at 5:00 p.m. Eastern Time (ET).  The conference call will be accessible by telephone and through the internet.  Interested individuals are requested to register for the call by visiting https://investor.drhc.com. A replay of the conference call webcast will be archived and available online.

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 leisure destinations and top gateway markets.  The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent 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. 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; 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)



June 30, 2023


December 31, 2022

ASSETS

(unaudited)



Property and equipment, net

$                  2,740,395


$                 2,748,476

Right-of-use assets

97,834


99,047

Restricted cash

37,535


39,614

Due from hotel managers

164,193


176,708

Prepaid and other assets

86,224


76,131

Cash and cash equivalents

98,556


67,564

Total assets

$                  3,224,737


$                 3,207,540

LIABILITIES AND EQUITY




Liabilities:




Mortgage and other debt, net of unamortized debt issuance costs

$                      382,157


$                    386,655

Unsecured term loans, net of unamortized debt issuance costs

799,271


799,138

Senior unsecured credit facility


Total debt

1,181,428


1,185,793





Lease liabilities

111,233


110,875

Due to hotel managers

119,706


123,682

Deferred rent

67,260


65,097

Unfavorable contract liabilities, net

60,240


61,069

Accounts payable and accrued expenses

39,811


43,120

Distributions declared and unpaid

6,437


12,946

Deferred income related to key money, net

8,565


8,780

Total liabilities

1,594,680


1,611,362

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 shares issued and outstanding at June
     30, 2023 and December 31, 2022

48


48

   Common stock, $0.01 par value; 400,000,000 shares authorized; 209,589,638
     and 209,374,830 shares issued and outstanding at June 30, 2023 and December
     31, 2022, respectively

2,095


2,094

Additional paid-in capital

2,287,348


2,288,433

Accumulated other comprehensive income

3,830


Distributions in excess of earnings

(670,063)


(700,694)

Total stockholders' equity

1,623,258


1,589,881

Noncontrolling interests

6,799


6,297

Total equity

1,630,057


1,596,178

Total liabilities and equity

$                  3,224,737


$                 3,207,540

 

DIAMONDROCK HOSPITALITY COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts) 
(unaudited)



Three Months Ended June 30,


Six Months Ended June 30,


2023


2022


2023


2022

Revenues:








Rooms

$               197,318


$               193,025


$               357,991


$               325,195

Food and beverage

68,369


68,606


128,146


114,354

Other

25,560


19,776


48,663


38,691

Total revenues

291,247


281,407


534,800


478,240

Operating Expenses:








Rooms

45,116


42,645


85,319


76,475

Food and beverage

45,908


43,471


89,058


76,692

Other departmental and support expenses

65,445


59,521


127,413


108,058

Management fees

6,885


6,312


11,873


10,332

Franchise fees

9,403


8,693


17,480


14,503

Other property-level expenses

26,934


20,977


51,051


42,949

Depreciation and amortization

27,840


27,389


55,312


54,044

Impairment losses

941



941


2,843

Corporate expenses

8,284


8,726


16,151


14,759

Business interruption insurance income

(110)



(110)


(499)

Total operating expenses, net

236,646


217,734


454,488


400,156









Interest expense

15,567


9,675


32,739


13,794

Interest (income) and other (income) expense, net

(522)


606


(945)


892

  Total other expenses, net

15,045


10,281


31,794


14,686

Income before income taxes

39,556


53,392


48,518


63,398

Income tax expense

(422)


(691)


(196)


(637)

Net income

39,134


52,701


48,322


62,761

Less:  Net income attributable to noncontrolling
interests

(169)


(184)


(201)


(216)

Net income attributable to the Company

38,965


52,517


48,121


62,545

Distributions to preferred stockholders

(2,454)


(2,454)


(4,908)


(4,908)

Net income attributable to common
stockholders

$                 36,511


$                 50,063


$                 43,213


$                 57,637

Earnings per share:








Earnings per share available to common
stockholders - basic

$                      0.17


$                      0.24


$                      0.20


$                     0.27

Earnings per share available to common
stockholders - diluted

$                      0.17


$                      0.23


$                      0.20


$                     0.27









Weighted-average number of common shares
outstanding:








Basic

211,673,828


212,834,222


211,543,398


212,663,838

Diluted

212,161,950


213,520,706


212,092,590


213,279,174

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.
  • Hotel Pre-Opening Costs: We exclude the pre-opening costs associated with the redevelopment or rebranding of a hotel 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: 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 June 30,


2023


2022


2019

Net income

$               39,134


$               52,701


$               29,074

Interest expense

15,567


9,675


12,418

Income tax expense

422


691


4,571

Real estate related depreciation and amortization

27,840


27,389


29,335

EBITDA

82,963


90,456


75,398

Impairment losses

941



EBITDAre

83,904


90,456


75,398

Non-cash lease expense and other amortization

1,537


1,556


1,784

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



3,700

Hotel pre-opening costs

326



Hotel manager transition items


(13)


171

Adjusted EBITDA

$               85,767


$               91,999


$               81,053

 


Six Months Ended June 30,


2023


2022


2019

Net income

$               48,322


$               62,761


$               38,054

Interest expense

32,739


13,794


24,080

Income tax expense

196


637


722

Real estate related depreciation and amortization

55,312


54,044


58,331

EBITDA

136,569


131,236


121,187

Impairment losses

941


2,843


EBITDAre

137,510


134,079


121,187

Non-cash lease expense and other amortization

3,087


3,124


3,499

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



5,067

Hotel pre-opening costs

542



Severance costs (2)


(532)


Hotel manager transition items


236


468

Adjusted EBITDA

$             141,139


$             136,907


$             130,221



(1)

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

(2)

Consists of severance costs incurred, and adjustments thereto, associated 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 June 30,


2023


2022


2019

Net income

$               39,134


$               52,701


$              29,074

Interest expense

15,567


9,675


12,418

Income tax expense

422


691


4,571

Real estate related depreciation and amortization

27,840


27,389


29,335

EBITDA

82,963


90,456


75,398

Corporate expenses

8,284


8,726


7,403

Interest (income) and other (income) expense, net

(522)


606


(105)

Impairment losses

941



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



3,700

Hotel EBITDA

91,666


99,788


86,396

Non-cash lease expense and other amortization

1,537


1,556


1,784

Hotel pre-opening costs

326



Hotel manager transition items


(13)


171

Hotel Adjusted EBITDA

$               93,529


$             101,331


$              88,351

 


Six Months Ended June 30,


2023


2022


2019

Net income

$               48,322


$               62,761


$              38,054

Interest expense

32,739


13,794


24,080

Income tax expense

196


637


722

Real estate related depreciation and amortization

55,312


54,044


58,331

EBITDA

136,569


131,236


121,187

Corporate expenses

16,151


14,759


14,467

Interest (income) and other (income) expense, net

(945)


892


(408)

Impairment losses

941


2,843


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



5,067

Hotel EBITDA

152,716


149,730


140,313

Non-cash lease expense and other amortization

3,087


3,124


3,499

Hotel pre-opening costs

542



Hotel manager transition items


236


468

Severance costs (2)


(532)


Hotel Adjusted EBITDA

$             156,345


$             152,558


$            144,280



(1)

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

(2)

Consists of severance costs incurred, or adjustments thereto, associated 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 June 30,


2023


2022


2019

Net income

$               39,134


$               52,701


$               29,074

Real estate related depreciation and amortization

27,840


27,389


29,335

Impairment losses

941



FFO

67,915


80,090


58,409

Distribution to preferred stockholders

(2,454)


(2,454)


FFO available to common stock and unit holders

65,461


77,636


58,409

Non-cash lease expense and other amortization

1,537


1,556


1,784

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



3,700

Hotel pre-opening costs

326



Hotel manager transition items


(13)


171

Fair value adjustments to interest rate swaps

19


(2,720)


1,075

Adjusted FFO available to common stock and unit holders

$               67,343


$               76,459


$               65,139

Adjusted FFO available to common stock and unit holders, per
diluted share

$                   0.32


$                   0.36


$                   0.32

     


Six Months Ended June 30,


2023


2022


2019

Net income

$               48,322


$               62,761


$               38,054

Real estate related depreciation and amortization

55,312


54,044


58,331

Impairment losses

941


2,843


FFO

104,575


119,648


96,385

Distribution to preferred stockholders

(4,908)


(4,908)


FFO available to common stock and unit holders

99,667


114,740


96,385

Non-cash lease expense and other amortization

3,087


3,124


3,499

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



5,067

Hotel pre-opening costs

542



Hotel manager transition items


236


468

Severance costs (2)


(532)


Fair value adjustments to interest rate swaps

2,033


(10,222)


1,647

Adjusted FFO available to common stock and unit holders

$             105,329


$             107,346


$             107,066

Adjusted FFO available to common stock and unit holders, per
diluted share

$                   0.49


$                   0.50


$                   0.53



(1)

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

(2)

Consists of severance costs incurred, or adjustments thereto, associated 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 our 2021 dispositions (in thousands):      


Three Months Ended June 30,


2023


2022


2019

Revenues

$       291,247


$       281,407


$       257,918

Hotel revenues from prior ownership (1)

(1,971)


5,171


25,088

Hotel revenues from sold hotels (2)



(18,275)

Comparable Revenues

$       289,276


$       286,578


$       264,731







Hotel Adjusted EBITDA

$         93,529


$       101,331


$         88,351

Hotel Adjusted EBITDA from prior ownership (1)

91


2,323


6,936

Hotel Adjusted EBITDA from sold hotels (2)



(4,895)

Comparable Hotel Adjusted EBITDA

$         93,620


$       103,654


$         90,392







Hotel Adjusted EBITDA Margin

32.11 %


36.01 %


34.26 %

Comparable Hotel Adjusted EBITDA Margin

32.36 %


36.17 %


34.14 %

 


Six Months Ended June 30,


2023


2022


2019

Revenues

$       534,800


$       478,240


$       460,293

Hotel revenues from prior ownership (1)

(5,146)


12,010


44,475

Hotel revenues from sold hotels (2)



(29,534)

Comparable Revenues

$       529,654


$       490,250


$       475,234







Hotel Adjusted EBITDA

$       156,345


$       152,558


$       144,280

Hotel Adjusted EBITDA from prior ownership (1)

(796)


4,495


10,694

Hotel Adjusted EBITDA from sold hotels (2)



(12,815)

Comparable Hotel Adjusted EBITDA

$       155,549


$       157,053


$       142,159







Hotel Adjusted EBITDA Margin

29.23 %


31.90 %


31.35 %

Comparable Hotel Adjusted EBITDA Margin

29.37 %


32.04 %


29.91 %



(1)

Amounts represent the pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021, Henderson Park Inn from January 1, 2019 to July 29, 2021, Henderson Beach Resort from January 1, 2019 to December 22, 2021, Tranquility Bay Beachfront Resort from January 1, 2019 to January 5, 2022 and Lake Austin Spa Resort from January 1, 2019 to November 20, 2022.  The pre-acquisition operating results of the Kimpton Fort Lauderdale Beach Resort are excluded from all periods as the hotel opened in April 2021.  The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.

(2)

Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.

Selected Quarterly Comparable Operating Information

The following tables are presented to provide investors with selected quarterly comparable operating information.  The operating information includes historical quarterly operating results for our portfolio, excluding the Kimpton Fort Lauderdale Beach Resort since the hotel opened in April 2021.


Quarter 1, 2019

Quarter 2, 2019

Quarter 3, 2019

Quarter 4, 2019

Full Year 2019

ADR

$          225.75

$          254.63

$          241.37

$          244.35

$          242.03

Occupancy

72.1 %

82.3 %

81.2 %

75.1 %

77.7 %

RevPAR

$          162.86

$          209.59

$          195.88

$          183.60

$          188.07

Total RevPAR

$          246.70

$          306.75

$          278.99

$          268.73

$          275.36

Revenues (in thousands)

$        210,503

$        264,731

$        243,528

$        234,573

$        953,335

Hotel Adjusted EBITDA (in thousands)

$          51,767

$          90,392

$          73,486

$          65,779

$        281,424

Hotel Adjusted EBITDA Margin

24.59 %

34.14 %

30.18 %

28.04 %

29.52 %

Available Rooms

853,274

863,014

872,896

872,896

3,462,080

 


Quarter 1, 2022

Quarter 2, 2022

Quarter 3, 2022

Quarter 4, 2022

Full Year 2022

ADR

$          283.70

$          300.68

$          283.87

$          291.05

$          290.21

Occupancy

55.9 %

74.9 %

75.1 %

67.3 %

68.4 %

RevPAR

$          158.52

$          225.19

$          213.19

$          195.99

$          198.37

Total RevPAR

$          238.37

$          331.56

$          311.71

$          293.64

$          294.03

Revenues (in thousands)

$        203,672

$        286,578

$        272,659

$        256,938

$     1,019,847

Hotel Adjusted EBITDA (in thousands)

$          53,399

$        103,654

$          85,804

$          76,981

$        319,838

Hotel Adjusted EBITDA Margin

26.22 %

36.17 %

31.47 %

29.96 %

31.36 %

Available Rooms

854,442

864,323

874,702

875,012

3,468,479

 


Quarter 1, 2023

Quarter 2, 2023

ADR

$          277.92

$          294.66

Occupancy

66.7 %

76.8 %

RevPAR

$          185.26

$          226.41

Total RevPAR

$          280.77

$          333.88

Revenues (in thousands)

$        240,378

$        289,276

Hotel Adjusted EBITDA (in thousands)

$          61,929

$          93,620

Hotel Adjusted EBITDA Margin

25.76 %

32.36 %

Available Rooms

856,316

866,411

 

Market Capitalization as of June 30, 2023

(in thousands)

Enterprise Value






Common equity capitalization (at June 30, 2023 closing price of $8.01/share)


$              1,712,105

Preferred equity capitalization (at liquidation value of $25.00/share)


119,000

Consolidated debt (face amount)


1,182,990

Cash and cash equivalents


(98,556)

Total enterprise value


$              2,915,539

Share Reconciliation






Common shares outstanding


209,590

Operating partnership units


1,075

Unvested restricted stock held by management and employees


1,210

Share grants under deferred compensation plan


1,871

Combined shares and units


213,746

 

Debt Summary as of June 30, 2023

(dollars in thousands)

Loan


Interest Rate


Term


Outstanding
Principal


Maturity

Courtyard New York Manhattan / Midtown East


4.40 %


Fixed


75,255


August 2024

Worthington Renaissance Fort Worth Hotel


3.66 %


Fixed


74,681


May 2025

Hotel Clio


4.33 %


Fixed


56,784


July 2025

Westin Boston Seaport District


4.36 %


Fixed


176,270


November 2025

     Unamortized debt issuance costs






(833)



Total mortgage debt, net of unamortized debt
issuance costs






382,157












Unsecured term loan


SOFR + 1.35%


Variable


500,000


January 2028

Unsecured term loan


SOFR + 1.35%


Variable


300,000


January 2025 (1)

     Unamortized debt issuance costs






(729)



Unsecured term loans, net of unamortized debt
issuance costs




799,271












Senior unsecured credit facility


SOFR + 1.40%


Variable



September 2026 (1)










Total debt, net of unamortized debt issuance costs






$    1,181,428



Weighted-average interest rate of fixed rate debt


3.87 %







Total weighted-average interest rate (2)


4.88 %









(1)

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

(2)

Weighted-average interest rate includes effect of interest rate swaps.

 


Operating Statistics – Second Quarter


Number
of Rooms

ADR


Occupancy


RevPAR


2Q 2023

2Q 2022

B/(W) 2022


2Q 2023

2Q 2022

B/(W) 2022


2Q 2023

2Q 2022

B/(W) 2022



























Atlanta Marriott Alpharetta

318

$         150.26

$         152.51

(1.5) %


73.5 %

62.0 %

11.5 %


$         110.41

$          94.58

16.7 %

Bourbon Orleans Hotel

220

$         242.09

$         254.65

(4.9) %


83.7 %

65.8 %

17.9 %


$         202.69

$         167.61

20.9 %

Cavallo Point, The Lodge at the Golden Gate

142

$         613.11

$         729.78

(16.0) %


56.8 %

59.5 %

(2.7) %


$         348.54

$         434.41

(19.8) %

Chicago Marriott Downtown Magnificent Mile

1,200

$         273.80

$         258.98

5.7 %


70.8 %

60.9 %

9.9 %


$         193.76

$         157.74

22.8 %

Courtyard Denver Downtown

177

$         233.95

$         223.78

4.5 %


83.3 %

82.2 %

1.1 %


$         194.88

$         183.96

5.9 %

Courtyard New York Manhattan/Fifth Avenue

189

$         306.37

$         291.51

5.1 %


94.7 %

96.1 %

(1.4) %


$         290.00

$         280.01

3.6 %

Courtyard New York Manhattan/Midtown East

321

$         348.02

$         330.68

5.2 %


92.4 %

89.2 %

3.2 %


$         321.54

$         294.94

9.0 %

Embassy Suites by Hilton Bethesda

272

$         183.55

$         160.43

14.4 %


80.0 %

62.9 %

17.1 %


$         146.80

$         100.86

45.5 %

Havana Cabana Key West

106

$         293.87

$         330.95

(11.2) %


86.7 %

90.2 %

(3.5) %


$         254.75

$         298.59

(14.7) %

Henderson Beach Resort

243

$         500.73

$         528.34

(5.2) %


74.1 %

87.2 %

(13.1) %


$         370.82

$         460.58

(19.5) %

Henderson Park Inn

37

$         680.86

$         732.17

(7.0) %


87.2 %

90.9 %

(3.7) %


$         593.91

$         665.62

(10.8) %

Hilton Boston Downtown/Faneuil Hall

403

$         327.33

$         330.88

(1.1) %


89.1 %

85.4 %

3.7 %


$         291.81

$         282.69

3.2 %

Hilton Burlington Lake Champlain

258

$         242.28

$         233.43

3.8 %


79.0 %

76.7 %

2.3 %


$         191.35

$         178.98

6.9 %

Hilton Garden Inn New York/Times Square Central

282

$         283.37

$         284.89

(0.5) %


85.6 %

98.0 %

(12.4) %


$         242.70

$         279.23

(13.1) %

Hotel Clio

199

$         326.27

$         318.95

2.3 %


74.2 %

69.8 %

4.4 %


$         241.96

$         222.73

8.6 %

Hotel Emblem San Francisco

96

$         221.08

$         236.51

(6.5) %


66.8 %

85.7 %

(18.9) %


$         147.71

$         202.78

(27.2) %

Hotel Palomar Phoenix

242

$         204.26

$         218.59

(6.6) %


78.2 %

65.3 %

12.9 %


$         159.72

$         142.83

11.8 %

Kimpton Fort Lauderdale Beach Resort

96

$         202.15

$         236.33

(14.5) %


65.4 %

65.3 %

0.1 %


$         132.13

$         154.33

(14.4) %

Kimpton Shorebreak Resort

157

$         337.46

$         356.28

(5.3) %


83.3 %

85.2 %

(1.9) %


$         280.94

$         303.51

(7.4) %

L'Auberge de Sedona

88

$         979.53

$      1,068.06

(8.3) %


67.9 %

80.5 %

(12.6) %


$         664.92

$         859.86

(22.7) %

Lake Austin Spa Resort

40

$      1,101.21

$      1,078.62

2.1 %


66.9 %

75.5 %

(8.6) %


$         736.66

$         814.30

(9.5) %

Margaritaville Beach House Key West

186

$         396.70

$         450.34

(11.9) %


90.0 %

87.0 %

3.0 %


$         356.95

$         391.96

(8.9) %

Orchards Inn Sedona

70

$         303.14

$         354.54

(14.5) %


69.9 %

70.0 %

(0.1) %


$         211.91

$         248.13

(14.6) %

Salt Lake City Marriott Downtown at City Creek

510

$         190.99

$         181.35

5.3 %


61.1 %

63.4 %

(2.3) %


$         116.64

$         114.99

1.4 %

The Gwen Hotel

311

$         339.69

$         324.50

4.7 %


78.4 %

80.1 %

(1.7) %


$         266.27

$         259.81

2.5 %

The Hythe Vail

344

$         261.14

$         240.14

8.7 %


34.3 %

38.4 %

(4.1) %


$          89.56

$          92.28

(2.9) %

The Landing Lake Tahoe Resort & Spa

82

$         390.10

$         451.54

(13.6) %


50.6 %

48.7 %

1.9 %


$         197.24

$         219.78

(10.3) %

The Lindy Renaissance Charleston Hotel

167

$         393.54

$         412.06

(4.5) %


94.1 %

94.1 %

— %


$         370.39

$         387.87

(4.5) %

The Lodge at Sonoma Resort

182

$         497.28

$         490.14

1.5 %


65.2 %

71.3 %

(6.1) %


$         324.37

$         349.50

(7.2) %

Tranquility Bay Beachfront Resort

103

$         663.23

$         784.22

(15.4) %


79.9 %

81.7 %

(1.8) %


$         529.64

$         640.73

(17.3) %

Westin Boston Waterfront

793

$         267.62

$         255.07

4.9 %


91.4 %

85.9 %

5.5 %


$         244.72

$         219.10

11.7 %

Westin Fort Lauderdale Beach Resort

433

$         258.71

$         262.17

(1.3) %


73.7 %

82.3 %

(8.6) %


$         190.66

$         215.70

(11.6) %

Westin San Diego Bayview

436

$         205.93

$         208.76

(1.4) %


80.0 %

81.5 %

(1.5) %


$         164.71

$         170.19

(3.2) %

Westin Washington D.C. City Center

410

$         250.82

$         237.11

5.8 %


78.0 %

79.6 %

(1.6) %


$         195.73

$         188.68

3.7 %

Worthington Renaissance Fort Worth Hotel

504

$         198.93

$         188.25

5.7 %


79.1 %

73.9 %

5.2 %


$         157.31

$         139.06

13.1 %

Comparable Total (1)

9,521

$         294.66

$         300.68

(2.0) %


76.8 %

74.9 %

1.9 %


$         226.41

$         225.19

0.5 %














(1)

Amounts include the pre-acquisition operating results of hotels acquired in 2022 and exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021. 

      


Operating Statistics – Second Quarter


Number
of Rooms

ADR


Occupancy


RevPAR


2Q 2023

2Q 2019

B/(W) 2019


2Q 2023

2Q 2019

B/(W) 2019


2Q 2023

2Q 2019

B/(W) 2019



























Atlanta Marriott Alpharetta

318

$         150.26

$         160.44

(6.3) %


73.5 %

74.8 %

(1.3) %


$         110.41

$         119.97

(8.0) %

Bourbon Orleans Hotel

220

$         242.09

$         218.43

10.8 %


83.7 %

90.8 %

(7.1) %


$         202.69

$         198.25

2.2 %

Cavallo Point, The Lodge at the Golden Gate

142

$         613.11

$         467.43

31.2 %


56.8 %

64.0 %

(7.2) %


$         348.54

$         299.11

16.5 %

Chicago Marriott Downtown Magnificent Mile

1,200

$         273.80

$         253.76

7.9 %


70.8 %

83.6 %

(12.8) %


$         193.76

$         212.22

(8.7) %

Courtyard Denver Downtown

177

$         233.95

$         207.53

12.7 %


83.3 %

83.8 %

(0.5) %


$         194.88

$         173.87

12.1 %

Courtyard New York Manhattan/Fifth Avenue

189

$         306.37

$         270.86

13.1 %


94.7 %

90.9 %

3.8 %


$         290.00

$         246.20

17.8 %

Courtyard New York Manhattan/Midtown East

321

$         348.02

$         274.26

26.9 %


92.4 %

97.3 %

(4.9) %


$         321.54

$         266.76

20.5 %

Embassy Suites by Hilton Bethesda

272

$         183.55

$         188.39

(2.6) %


80.0 %

83.3 %

(3.3) %


$         146.80

$         156.97

(6.5) %

Havana Cabana Key West

106

$         293.87

$         202.86

44.9 %


86.7 %

90.4 %

(3.7) %


$         254.75

$         183.30

39.0 %

Henderson Beach Resort

243

$         500.73

$         332.50

50.6 %


74.1 %

75.1 %

(1.0) %


$         370.82

$         249.74

48.5 %

Henderson Park Inn

37

$         680.86

$         515.16

32.2 %


87.2 %

90.8 %

(3.6) %


$         593.91

$         467.58

27.0 %

Hilton Boston Downtown/Faneuil Hall

403

$         327.33

$         375.21

(12.8) %


89.1 %

90.5 %

(1.4) %


$         291.81

$         339.67

(14.1) %

Hilton Burlington Lake Champlain

258

$         242.28

$         191.05

26.8 %


79.0 %

84.0 %

(5.0) %


$         191.35

$         160.56

19.2 %

Hilton Garden Inn New York/Times Square Central

282

$         283.37

$         275.97

2.7 %


85.6 %

98.7 %

(13.1) %


$         242.70

$         272.38

(10.9) %

Hotel Clio

199

$         326.27

$         265.01

23.1 %


74.2 %

79.2 %

(5.0) %


$         241.96

$         209.77

15.3 %

Hotel Emblem San Francisco

96

$         221.08

$         227.87

(3.0) %


66.8 %

87.1 %

(20.3) %


$         147.71

$         198.47

(25.6) %

Hotel Palomar Phoenix

242

$         204.26

$         174.16

17.3 %


78.2 %

86.5 %

(8.3) %


$         159.72

$         150.69

6.0 %

Kimpton Shorebreak Resort

157

$         337.46

$         258.74

30.4 %


83.3 %

78.9 %

4.4 %


$         280.94

$         204.07

37.7 %

L'Auberge de Sedona

88

$         979.53

$         669.18

46.4 %


67.9 %

83.8 %

(15.9) %


$         664.92

$         560.63

18.6 %

Lake Austin Spa Resort

40

$      1,101.21

$         896.53

22.8 %


66.9 %

59.0 %

7.9 %


$         736.66

$         528.56

39.4 %

Margaritaville Beach House Key West

186

$         396.70

$         244.49

62.3 %


90.0 %

86.4 %

3.6 %


$         356.95

$         211.26

69.0 %

Orchards Inn Sedona

70

$         303.14

$         267.91

13.1 %


69.9 %

85.0 %

(15.1) %


$         211.91

$         227.70

(6.9) %

Salt Lake City Marriott Downtown at City Creek

510

$         190.99

$         167.09

14.3 %


61.1 %

72.8 %

(11.7) %


$         116.64

$         121.65

(4.1) %

The Gwen Hotel

311

$         339.69

$         285.70

18.9 %


78.4 %

87.9 %

(9.5) %


$         266.27

$         251.18

6.0 %

The Hythe Vail

344

$         261.14

$         174.07

50.0 %


34.3 %

44.3 %

(10.0) %


$          89.56

$          77.08

16.2 %

The Landing Lake Tahoe Resort & Spa

82

$         390.10

$         270.62

44.2 %


50.6 %

55.1 %

(4.5) %


$         197.24

$         149.15

32.2 %

The Lindy Renaissance Charleston Hotel

167

$         393.54

$         301.89

30.4 %


94.1 %

90.3 %

3.8 %


$         370.39

$         272.57

35.9 %

The Lodge at Sonoma Resort

182

$         497.28

$         327.39

51.9 %


65.2 %

77.4 %

(12.2) %


$         324.37

$         253.52

27.9 %

Tranquility Bay Beachfront Resort

103

$         663.23

$         420.16

57.9 %


79.9 %

90.2 %

(10.3) %


$         529.64

$         379.06

39.7 %

Westin Boston Waterfront

793

$         267.62

$         278.41

(3.9) %


91.4 %

85.0 %

6.4 %


$         244.72

$         236.51

3.5 %

Westin Fort Lauderdale Beach Resort

433

$         258.71

$         198.53

30.3 %


73.7 %

80.7 %

(7.0) %


$         190.66

$         160.28

19.0 %

Westin San Diego Bayview

436

$         205.93

$         199.95

3.0 %


80.0 %

82.5 %

(2.5) %


$         164.71

$         164.92

(0.1) %

Westin Washington D.C. City Center

410

$         250.82

$         239.48

4.7 %


78.0 %

92.4 %

(14.4) %


$         195.73

$         221.35

(11.6) %

Worthington Renaissance Fort Worth Hotel

504

$         198.93

$         192.06

3.6 %


79.1 %

77.5 %

1.6 %


$         157.31

$         148.88

5.7 %

Comparable Total (1)

9,521

$         294.66

$         254.63

15.7 %


76.8 %

82.3 %

(5.5) %


$         226.41

$         209.59

8.0 %














(1)

Amounts include the pre-acquisition operating results of hotels acquired in 2021 and 2022 and exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021. 

 


Operating Statistics – Year to Date


Number
of Rooms

ADR


Occupancy


RevPAR


YTD 2023

YTD 2022

B/(W) 2022


YTD 2023

YTD 2022

B/(W) 2022


YTD 2023

YTD 2022

B/(W) 2022



























Atlanta Marriott Alpharetta

318

$         154.36

$         148.27

4.1 %


68.0 %

51.9 %

16.1 %


$         105.04

$          76.90

36.6 %

Bourbon Orleans Hotel

220

$         250.91

$         250.51

0.2 %


82.3 %

57.8 %

24.5 %


$         206.55

$         144.75

42.7 %

Cavallo Point, The Lodge at the Golden Gate

142

$         591.51

$         709.90

(16.7) %


54.8 %

52.1 %

2.7 %


$         324.01

$         370.03

(12.4) %

Chicago Marriott Downtown Magnificent Mile

1,200

$         243.61

$         231.16

5.4 %


55.2 %

44.2 %

11.0 %


$         134.56

$         102.24

31.6 %

Courtyard Denver Downtown

177

$         209.18

$         193.32

8.2 %


76.2 %

71.2 %

5.0 %


$         159.47

$         137.56

15.9 %

Courtyard New York Manhattan/Fifth Avenue

189

$         254.77

$         231.54

10.0 %


94.1 %

89.5 %

4.6 %


$         239.68

$         207.26

15.6 %

Courtyard New York Manhattan/Midtown East

321

$         292.46

$         276.54

5.8 %


90.2 %

76.5 %

13.7 %


$         263.73

$         211.45

24.7 %

Embassy Suites by Hilton Bethesda

272

$         165.60

$         146.62

12.9 %


70.9 %

44.7 %

26.2 %


$         117.35

$          65.61

78.9 %

Havana Cabana Key West

106

$         336.84

$         371.86

(9.4) %


87.3 %

92.0 %

(4.7) %


$         294.11

$         342.09

(14.0) %

Henderson Park Resort

243

$         450.86

$         489.67

(7.9) %


58.7 %

66.0 %

(7.3) %


$         264.61

$         323.42

(18.2) %

Henderson Park Inn

37

$         615.29

$         644.64

(4.6) %


65.0 %

75.9 %

(10.9) %


$         399.75

$         488.99

(18.2) %

Hilton Boston Downtown/Faneuil Hall

403

$         292.45

$         264.87

10.4 %


69.2 %

74.3 %

(5.1) %


$         202.29

$         196.80

2.8 %

Hilton Burlington Lake Champlain

258

$         208.51

$         200.81

3.8 %


71.1 %

67.7 %

3.4 %


$         148.29

$         135.88

9.1 %

Hilton Garden Inn New York/Times Square Central

282

$         238.67

$         231.05

3.3 %


85.5 %

88.0 %

(2.5) %


$         204.00

$         203.24

0.4 %

Hotel Clio

199

$         313.65

$         290.80

7.9 %


68.0 %

66.2 %

1.8 %


$         213.28

$         192.37

10.9 %

Hotel Emblem San Francisco

96

$         252.09

$         217.86

15.7 %


65.3 %

69.9 %

(4.6) %


$         164.54

$         152.22

8.1 %

Hotel Palomar Phoenix

242

$         251.11

$         234.31

7.2 %


75.9 %

71.1 %

4.8 %


$         190.70

$         166.48

14.5 %

Kimpton Fort Lauderdale Beach Resort

96

$         242.58

$         262.57

(7.6) %


76.4 %

71.0 %

5.4 %


$         185.27

$         186.38

(0.6) %

Kimpton Shorebreak Resort

157

$         316.01

$         329.33

(4.0) %


79.5 %

78.5 %

1.0 %


$         251.10

$         258.69

(2.9) %

L'Auberge de Sedona

88

$         969.79

$      1,058.04

(8.3) %


62.7 %

74.5 %

(11.8) %


$         608.25

$         788.48

(22.9) %

Lake Austin Spa Resort

40

$      1,110.65

$      1,112.70

(0.2) %


61.3 %

73.0 %

(11.7) %


$         680.96

$         812.70

(16.2) %

Margaritaville Beach House Key West

186

$         444.25

$         516.31

(14.0) %


87.6 %

89.5 %

(1.9) %


$         388.99

$         462.06

(15.8) %

Orchards Inn Sedona

70

$         297.81

$         333.07

(10.6) %


64.7 %

66.9 %

(2.2) %


$         192.81

$         222.66

(13.4) %

Salt Lake City Marriott Downtown at City Creek

510

$         195.54

$         179.07

9.2 %


64.1 %

56.2 %

7.9 %


$         125.36

$         100.68

24.5 %

The Gwen Hotel

311

$         286.85

$         277.93

3.2 %


71.8 %

69.2 %

2.6 %


$         206.01

$         192.33

7.1 %

The Hythe Vail

344

$         520.67

$         508.11

2.5 %


59.1 %

52.7 %

6.4 %


$         307.67

$         267.53

15.0 %

The Landing Lake Tahoe Resort & Spa

82

$         379.67

$         430.83

(11.9) %


40.8 %

47.6 %

(6.8) %


$         155.02

$         204.96

(24.4) %

The Lindy Renaissance Charleston Hotel

167

$         365.12

$         366.12

(0.3) %


89.3 %

87.3 %

2.0 %


$         326.19

$         319.49

2.1 %

The Lodge at Sonoma Resort

182

$         435.66

$         440.93

(1.2) %


59.9 %

59.7 %

0.2 %


$         260.85

$         263.38

(1.0) %

Tranquility Bay Beachfront Resort 

103

$         735.05

$         864.42

(15.0) %


77.0 %

82.4 %

(5.4) %


$         565.82

$         712.19

(20.6) %

Westin Boston Waterfront

793

$         239.76

$         231.75

3.5 %


81.6 %

69.9 %

11.7 %


$         195.76

$         162.00

20.8 %

Westin Fort Lauderdale Beach Resort

433

$         307.21

$         300.54

2.2 %


80.8 %

85.0 %

(4.2) %


$         248.15

$         255.32

(2.8) %

Westin San Diego Bayview

436

$         210.13

$         195.54

7.5 %


77.0 %

67.4 %

9.6 %


$         161.75

$         131.71

22.8 %

Westin Washington D.C. City Center

410

$         234.16

$         218.49

7.2 %


73.0 %

57.5 %

15.5 %


$         171.01

$         125.70

36.0 %

Worthington Renaissance Fort Worth Hotel

504

$         197.81

$         191.00

3.6 %


76.6 %

69.1 %

7.5 %


$         151.51

$         132.02

14.8 %

Comparable Total (1)

9,521

$         286.94

$         293.47

(2.2) %


71.8 %

65.4 %

6.4 %


$         205.94

$         192.05

7.2 %



(1)

Amounts include the pre-acquisition operating results of hotels acquired in 2022 and exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021. 

 


Operating Statistics – Year to Date


Number
of Rooms

ADR


Occupancy


RevPAR


YTD 2023

YTD 2019

B/(W) 2019


YTD 2023

YTD 2019

B/(W) 2019


YTD 2023

YTD 2019

B/(W) 2019



























Atlanta Marriott Alpharetta

318

$         154.36

$         168.59

(8.4) %


68.0 %

72.6 %

(4.6) %


$         105.04

$         122.44

(14.2) %

Bourbon Orleans Hotel

220

$         250.91

$         227.80

10.1 %


82.3 %

86.6 %

(4.3) %


$         206.55

$         197.32

4.7 %

Cavallo Point, The Lodge at the Golden Gate

142

$         591.51

$         452.75

30.6 %


54.8 %

63.7 %

(8.9) %


$         324.01

$         288.31

12.4 %

Chicago Marriott Downtown Magnificent Mile

1,200

$         243.61

$         217.58

12.0 %


55.2 %

67.7 %

(12.5) %


$         134.56

$         147.36

(8.7) %

Courtyard Denver Downtown

177

$         209.18

$         191.01

9.5 %


76.2 %

78.6 %

(2.4) %


$         159.47

$         150.07

6.3 %

Courtyard New York Manhattan/Fifth Avenue

189

$         254.77

$         244.03

4.4 %


94.1 %

84.2 %

9.9 %


$         239.68

$         205.48

16.6 %

Courtyard New York Manhattan/Midtown East

321

$         292.46

$         233.54

25.2 %


90.2 %

94.7 %

(4.5) %


$         263.73

$         221.06

19.3 %

Embassy Suites by Hilton Bethesda

272

$         165.60

$         181.32

(8.7) %


70.9 %

74.4 %

(3.5) %


$         117.35

$         134.84

(13.0) %

Havana Cabana Key West

106

$         336.84

$         229.10

47.0 %


87.3 %

92.5 %

(5.2) %


$         294.11

$         211.96

38.8 %

Henderson Beach Resort

243

$         450.86

$         305.54

47.6 %


58.7 %

57.2 %

1.5 %


$         264.61

$         174.65

51.5 %

Henderson Park Inn

37

$         615.29

$         455.46

35.1 %


65.0 %

71.6 %

(6.6) %


$         399.75

$         326.31

22.5 %

Hilton Boston Downtown/Faneuil Hall

403

$         292.45

$         290.58

0.6 %


69.2 %

87.0 %

(17.8) %


$         202.29

$         252.94

(20.0) %

Hilton Burlington Lake Champlain

258

$         208.51

$         163.67

27.4 %


71.1 %

77.4 %

(6.3) %


$         148.29

$         126.66

17.1 %

Hilton Garden Inn New York/Times Square Central

282

$         238.67

$         228.97

4.2 %


85.5 %

98.4 %

(12.9) %


$         204.00

$         225.19

(9.4) %

Hotel Clio

199

$         313.65

$         256.26

22.4 %


68.0 %

63.1 %

4.9 %


$         213.28

$         161.57

32.0 %

Hotel Emblem San Francisco

96

$         252.09

$         235.46

7.1 %


65.3 %

72.4 %

(7.1) %


$         164.54

$         170.45

(3.5) %

Hotel Palomar Phoenix

242

$         251.11

$         203.74

23.3 %


75.9 %

87.4 %

(11.5) %


$         190.70

$         178.02

7.1 %

Kimpton Shorebreak Resort

157

$         316.01

$         248.09

27.4 %


79.5 %

77.1 %

2.4 %


$         251.10

$         191.22

31.3 %

L'Auberge de Sedona

88

$         969.79

$         623.67

55.5 %


62.7 %

82.1 %

(19.4) %


$         608.25

$         512.04

18.8 %

Lake Austin Spa Resort

40

$      1,110.65

$         842.67

31.8 %


61.3 %

61.0 %

0.3 %


$         680.96

$         513.63

32.6 %

Margaritaville Beach House Key West

186

$         444.25

$         278.48

59.5 %


87.6 %

90.2 %

(2.6) %


$         388.99

$         251.22

54.8 %

Orchards Inn Sedona

70

$         297.81

$         262.04

13.7 %


64.7 %

79.5 %

(14.8) %


$         192.81

$         208.25

(7.4) %

Salt Lake City Marriott Downtown at City Creek

510

$         195.54

$         170.00

15.0 %


64.1 %

66.0 %

(1.9) %


$         125.36

$         112.24

11.7 %

The Gwen Hotel

311

$         286.85

$         242.95

18.1 %


71.8 %

79.2 %

(7.4) %


$         206.01

$         192.44

7.1 %

The Hythe Vail

344

$         520.67

$         346.67

50.2 %


59.1 %

63.2 %

(4.1) %


$         307.67

$         219.14

40.4 %

The Landing Lake Tahoe Resort & Spa

82

$         379.67

$         273.14

39.0 %


40.8 %

54.1 %

(13.3) %


$         155.02

$         147.69

5.0 %

The Lindy Renaissance Charleston Hotel

167

$         365.12

$         270.69

34.9 %


89.3 %

87.1 %

2.2 %


$         326.19

$         235.71

38.4 %

The Lodge at Sonoma Resort

182

$         435.66

$         286.18

52.2 %


59.9 %

69.5 %

(9.6) %


$         260.85

$         198.88

31.2 %

Tranquility Bay Beachfront Resort

103

$         735.05

$         456.26

61.1 %


77.0 %

90.9 %

(13.9) %


$         565.82

$         414.93

36.4 %

Westin Boston Waterfront

793

$         239.76

$         245.47

(2.3) %


81.6 %

75.3 %

6.3 %


$         195.76

$         184.74

6.0 %

Westin Fort Lauderdale Beach Resort

433

$         307.21

$         228.58

34.4 %


80.8 %

88.1 %

(7.3) %


$         248.15

$         201.29

23.3 %

Westin San Diego Bayview

436

$         210.13

$         195.09

7.7 %


77.0 %

80.0 %

(3.0) %


$         161.75

$         156.11

3.6 %

Westin Washington D.C. City Center

410

$         234.16

$         222.10

5.4 %


73.0 %

85.0 %

(12.0) %


$         171.01

$         188.80

(9.4) %

Worthington Renaissance Fort Worth Hotel

504

$         197.81

$         190.08

4.1 %


76.6 %

78.5 %

(1.9) %


$         151.51

$         149.15

1.6 %

Comparable Total (1)

9,521

$         286.94

$         241.22

19.0 %


71.8 %

77.3 %

(5.5) %


$         205.94

$         186.36

10.5 %

(1)|Amounts include the pre-acquisition operating results of hotels acquired in 2021 and 2022 and exclude the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021. 

 



Hotel Adjusted EBITDA Reconciliation - Second Quarter 2023








Net Income /
(Loss)

Plus:

Plus:

Plus:

Equals: Hotel
Adjusted EBITDA



Total Revenues


Depreciation

Interest Expense

Adjustments (1)

Atlanta Marriott Alpharetta


$                   4,240


$                   1,122

$                      359

$                         —

$                         —

$                   1,481

Bourbon Orleans Hotel


$                   4,947


$                   1,326

$                      850

$                         —

$                           6

$                   2,182

Cavallo Point, The Lodge at the Golden Gate


$                 12,255


$                   2,205

$                   1,396

$                         —

$                         94

$                   3,695

Chicago Marriott Downtown Magnificent Mile


$                 31,983


$                   8,556

$                   3,538

$                           6

$                    (397)

$                 11,703

Courtyard Denver Downtown


$                   3,455


$                   1,238

$                      378

$                         —

$                         —

$                   1,616

Courtyard New York Manhattan/Fifth Avenue


$                   5,081


$                       849

$                      401

$                         —

$                      253

$                   1,503

Courtyard New York Manhattan/Midtown East


$                   9,763


$                   2,281

$                      504

$                       891

$                         —

$                   3,676

Embassy Suites by Hilton Bethesda


$                   4,187


$                     (989)

$                      568

$                         —

$                   1,467

$                   1,046

Havana Cabana Key West


$                   3,338


$                       786

$                      309

$                         —

$                         —

$                   1,095

Henderson Beach Resort


$                 14,243


$                   3,466

$                   1,034

$                         —

$                         —

$                   4,500

Henderson Park Inn


$                   3,126


$                   1,387

$                      250

$                         —

$                         —

$                   1,637

Hilton Boston Downtown/Faneuil Hall


$                 11,812


$                   3,122

$                   1,548

$                         —

$                         —

$                   4,670

Hilton Burlington Lake Champlain


$                   6,207


$                   1,711

$                      560

$                         —

$                         —

$                   2,271

Hilton Garden Inn New York/Times Square Central


$                   6,855


$                   1,216

$                      645

$                         —

$                         —

$                   1,861

Hotel Clio


$                   6,781


$                       203

$                      860

$                       633

$                           5

$                   1,701

Hotel Emblem San Francisco


$                   1,538


$                     (447)

$                      296

$                         —

$                         —

$                     (151)

Hotel Palomar Phoenix


$                   6,201


$                       944

$                      488

$                         —

$                      178

$                   1,610

Kimpton Fort Lauderdale Beach Resort


$                   1,971


$                     (397)

$                      306

$                         —

$                         —

$                       (91)

Kimpton Shorebreak Resort


$                   5,849


$                   1,834

$                      383

$                         —

$                         —

$                   2,217

L'Auberge de Sedona


$                   8,755


$                   2,546

$                      383

$                         —

$                         —

$                   2,929

Lake Austin Spa Resort


$                   5,970


$                   1,264

$                      641

$                         —

$                         —

$                   1,905

Margaritaville Beach House Key West


$                   8,201


$                   2,806

$                      791

$                         —

$                         —

$                   3,597

Orchards Inn Sedona


$                   2,591


$                       661

$                         89

$                         —

$                         42

$                       792

Salt Lake City Marriott Downtown at City Creek


$                   7,312


$                   2,021

$                      668

$                         —

$                         11

$                   2,700

The Gwen Hotel


$                 10,790


$                   2,300

$                   1,050

$                         —

$                         —

$                   3,350

The Hythe Vail


$                   5,412


$                 (1,177)

$                   1,200

$                         —

$                         —

$                         23

The Landing Lake Tahoe Resort & Spa


$                   2,754


$                       405

$                      309

$                         —

$                         —

$                       714

The Lindy Renaissance Charleston Hotel


$                   6,849


$                   2,912

$                      476

$                         —

$                         —

$                   3,388

The Lodge at Sonoma Resort


$                   8,960


$                   2,184

$                      641

$                         —

$                         —

$                   2,825

Tranquility Bay Beachfront Resort


$                   6,352


$                   1,649

$                      437

$                         —

$                         —

$                   2,086

Westin Boston Seaport District


$                 27,399


$                   4,001

$                   2,478

$                   1,990

$                    (122)

$                   8,347

Westin Fort Lauderdale Beach Resort


$                 16,236


$                   2,504

$                   1,015

$                         —

$                         —

$                   3,519

Westin San Diego Bayview


$                   8,418


$                   1,425

$                      855

$                         —

$                         —

$                   2,280

Westin Washington D.C. City Center


$                   8,948


$                   1,743

$                   1,024

$                         —

$                         —

$                   2,767

Worthington Renaissance Fort Worth Hotel


$                 12,468


$                   2,266

$                   1,110

$                       715

$                         —

$                   4,091

Total


$               291,247


$                 59,923

$                 27,840

$                   4,235

$                   1,537

$                 93,529

Less: Non Comparable Hotel (2)


$                 (1,971)


$                       397

$                    (306)

$                         —

$                         —

$                         91

Comparable Total


$               289,276


$                 60,320

$                 27,534

$                   4,235

$                   1,537

$                 93,620



(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 of intangible assets and liabilities.

(2)

Represents the operating results of the Kimpton Fort Lauderdale Beach Resort, which is non-comparable since the hotel opened during 2021.

 



Hotel Adjusted EBITDA Reconciliation - Second Quarter 2022





Net Income / (Loss)

Plus:

Plus:

Plus:

Equals: Hotel



Total Revenues


Depreciation

Interest Expense

Adjustments (1)

Adjusted EBITDA

Atlanta Marriott Alpharetta


$                   3,786


$                      888

$                      373

$                         —

$                         —

$                   1,261

Bourbon Orleans Hotel


$                   4,215


$                   1,135

$                      828

$                         —

$                           6

$                   1,969

Cavallo Point, The Lodge at the Golden Gate


$                 13,395


$                   2,872

$                   1,865

$                         —

$                         94

$                   4,831

Chicago Marriott Downtown Magnificent Mile


$                 27,279


$                   8,367

$                   3,855

$                           6

$                    (397)

$                 11,831

Courtyard Denver Downtown


$                   3,272


$                   1,338

$                      376

$                         —

$                         —

$                   1,714

Courtyard New York Manhattan/Fifth Avenue


$                   4,887


$                      544

$                      331

$                         —

$                      253

$                   1,128

Courtyard New York Manhattan/Midtown East


$                   8,877


$                   1,708

$                      487

$                      910

$                         —

$                   3,105

Embassy Suites by Hilton Bethesda


$                   2,915


$                 (1,811)

$                      561

$                         —

$                   1,481

$                      231

Havana Cabana Key West


$                   3,790


$                   1,336

$                      271

$                         —

$                         —

$                   1,607

Henderson Beach Resort


$                 15,388


$                   3,502

$                      970

$                         —

$                         —

$                   4,472

Henderson Park Inn


$                   3,060


$                   1,334

$                      223

$                         —

$                         —

$                   1,557

Hilton Boston Downtown/Faneuil Hall


$                 11,310


$                   3,756

$                   1,016

$                         —

$                         —

$                   4,772

Hilton Burlington Lake Champlain


$                   5,495


$                   1,465

$                      563

$                         —

$                         —

$                   2,028

Hilton Garden Inn New York/Times Square Central


$                   7,733


$                   2,056

$                      625

$                         —

$                         —

$                   2,681

Hotel Clio


$                   6,971


$                      291

$                      851

$                      647

$                           5

$                   1,794

Hotel Emblem San Francisco


$                   2,158


$                      230

$                      294

$                         —

$                         —

$                      524

Hotel Palomar Phoenix


$                   5,343


$                      722

$                      672

$                         —

$                      181

$                   1,575

Kimpton Fort Lauderdale Beach Resort


$                   1,962


$                         39

$                      314

$                         —

$                         —

$                      353

Kimpton Shorebreak Resort


$                   6,381


$                   2,240

$                      402

$                         —

$                         —

$                   2,642

L'Auberge de Sedona


$                 10,198


$                   4,064

$                      356

$                         —

$                         —

$                   4,420

Margaritaville Beach House Key West


$                   8,741


$                   3,521

$                      786

$                         —

$                         —

$                   4,307

Orchards Inn Sedona


$                   2,783


$                   1,107

$                         85

$                         —

$                         42

$                   1,234

Salt Lake City Marriott Downtown at City Creek


$                   6,786


$                   1,402

$                      564

$                      479

$                         11

$                   2,456

The Gwen Hotel


$                 11,136


$                   3,737

$                   1,070

$                         —

$                         —

$                   4,807

The Hythe Vail


$                   5,263


$                 (1,684)

$                   1,203

$                         —

$                         —

$                    (481)

The Landing Lake Tahoe Resort & Spa


$                   2,763


$                      556

$                      217

$                         —

$                         —

$                      773

The Lindy Renaissance Charleston Hotel


$                   7,178


$                   2,997

$                      462

$                         —

$                         —

$                   3,459

The Lodge at Sonoma Resort


$                   9,333


$                   2,466

$                      632

$                      261

$                         —

$                   3,359

Tranquility Bay Beachfront Resort


$                   7,173


$                   1,737

$                      732

$                         —

$                         —

$                   2,469

Westin Boston Seaport District


$                 25,423


$                   3,823

$                   2,442

$                   2,037

$                    (122)

$                   8,180

Westin Fort Lauderdale Beach Resort


$                 18,282


$                   5,295

$                      982

$                         —

$                         —

$                   6,277

Westin San Diego Bayview


$                   8,557


$                   2,009

$                      836

$                      585

$                         —

$                   3,430

Westin Washington D.C. City Center


$                   8,879


$                   1,427

$                   1,034

$                      592

$                         —

$                   3,053

Worthington Renaissance Fort Worth Hotel


$                 10,695


$                   1,668

$                   1,111

$                      732

$                           2

$                   3,513

Total


$               281,407


$                 66,137

$                 27,389

$                   6,249

$                   1,556

$               101,331

Add: Prior Ownership Results (2)


$                   5,171


$                   2,337

$                       (14)

$                         —

$                         —

$                   2,323

Comparable Total


$               286,578


$                 68,474

$                 27,375

$                   6,249

$                   1,556

$               103,654



(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 of intangible assets and liabilities.

(2)

Represents the pre-acquisition operating results of our 2022 acquisitions and excludes the Kimpton Fort Lauderdale Beach Resort.

 



Hotel Adjusted EBITDA Reconciliation - Second Quarter 2019





Net Income /
(Loss)

Plus:

Plus:

Plus:

Equals: Hotel



Total Revenues


Depreciation

Interest Expense

Adjustments (1)

Adjusted EBITDA

Atlanta Marriott Alpharetta


$                   4,862


$                   1,188

$                      459

$                         —

$                         —

$                   1,647

Cavallo Point, The Lodge at the Golden Gate


$                 10,721


$                   1,268

$                   1,789

$                         —

$                      110

$                   3,167

Chicago Marriott Downtown Magnificent Mile


$                 34,590


$                   9,306

$                   4,166

$                         47

$                    (397)

$                 13,122

Courtyard Denver Downtown


$                   3,291


$                   1,466

$                      287

$                         —

$                         —

$                   1,753

Courtyard New York Manhattan/Fifth Avenue


$                   4,341


$                      283

$                      440

$                         —

$                      253

$                      976

Courtyard New York Manhattan/Midtown East


$                   8,048


$                      981

$                      688

$                      964

$                         —

$                   2,633

Embassy Suites by Hilton Bethesda


$                   5,234


$                         18

$                      474

$                         —

$                   1,517

$                   2,009

Frenchman's Reef & Morning Star Marriott Beach Resort


$                         —


$                         (2)

$                         —

$                         —

$                         —

$                         (2)

Havana Cabana Key West


$                   2,438


$                      746

$                      235

$                         —

$                         —

$                      981

Hilton Boston Downtown/Faneuil Hall


$                 13,161


$                   4,939

$                   1,233

$                         —

$                         —

$                   6,172

Hilton Burlington Lake Champlain


$                   4,993


$                   1,422

$                      515

$                         —

$                         —

$                   1,937

Hilton Garden Inn New York/Times Square Central


$                   7,090


$                   1,457

$                      826

$                         —

$                         —

$                   2,283

Hotel Clio


$                   5,797


$                      265

$                      688

$                      687

$                           6

$                   1,646

Hotel Emblem San Francisco


$                   1,995


$                      180

$                      297

$                         —

$                         —

$                      477

Hotel Palomar Phoenix


$                   6,070


$                      668

$                      663

$                         38

$                      295

$                   1,664

Kimpton Shorebreak Resort


$                   4,483


$                   1,192

$                      349

$                         —

$                         40

$                   1,581

L'Auberge de Sedona


$                   7,668


$                   2,101

$                      508

$                         —

$                         —

$                   2,609

Margaritaville Beach House Key West


$                   4,446


$                   1,217

$                      344

$                         —

$                         —

$                   1,561

Orchards Inn Sedona


$                   2,414


$                      622

$                      237

$                         —

$                         42

$                      901

Salt Lake City Marriott Downtown at City Creek


$                   7,863


$                   1,695

$                      574

$                      606

$                         —

$                   2,875

The Gwen Hotel


$                   9,881


$                   2,332

$                   1,149

$                         —

$                         —

$                   3,481

The Hythe Vail


$                   4,485


$                 (1,622)

$                   1,035

$                         —

$                         —

$                    (587)

The Landing Lake Tahoe Resort & Spa


$                   1,804


$                    (332)

$                      385

$                         —

$                         —

$                         53

The Lexington Hotel


$                 18,275


$                   1,324

$                   3,557

$                           8

$                           8

$                   4,897

The Lindy Renaissance Charleston Hotel


$                   4,685


$                   1,906

$                      418

$                         —

$                       (32)

$                   2,292

The Lodge at Sonoma Resort


$                   6,946


$                   1,501

$                      529

$                      280

$                         —

$                   2,310

Westin Boston Seaport District


$                 29,239


$                   5,918

$                   2,436

$                   2,169

$                       (60)

$                 10,463

Westin Fort Lauderdale Beach Resort


$                 12,614


$                   2,220

$                   1,633

$                         —

$                         —

$                   3,853

Westin San Diego Bayview


$                   9,033


$                   1,629

$                   1,136

$                      634

$                         —

$                   3,399

Westin Washington D.C. City Center


$                 10,316


$                   2,030

$                   1,317

$                      662

$                         —

$                   4,009

Worthington Renaissance Fort Worth Hotel


$                 11,135


$                   2,548

$                      968

$                      780

$                           2

$                   4,298

Total


$               257,918


$                 50,466

$                 29,335

$                   6,875

$                   1,784

$                 88,351

Add: Prior Ownership Results (2)


$                 25,088


$                   4,897

$                   2,039

$                         —

$                         —

$                   6,936

Less: Sold Hotels (3)


$               (18,275)


$                 (1,322)

$                 (3,557)

$                         (8)

$                         (8)

$                 (4,895)

Comparable Total


$               264,731


$                 54,041

$                 27,817

$                   6,867

$                   1,776

$                 90,392



(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 of intangible assets and liabilities.

(2)

Represents the pre-acquisition operating results of our 2021 and 2022 acquisitions (excluding the Kimpton Fort Lauderdale Beach Resort).

(3)

Represents the operating results of Frenchman's Reef and The Lexington Hotel.

 



Hotel Adjusted EBITDA Reconciliation - Year to Date 2023



Total Revenues


Net Income /
(Loss)

Plus:
Depreciation

Plus:
Interest Expense

Plus:
Adjustments (1)

Equals: Hotel
Adjusted EBITDA




Atlanta Marriott Alpharetta


$                 8,257


$                   2,062

$                      724

$                         —

$                             —

$                   2,786

Bourbon Orleans Hotel


$              10,011


$                   2,755

$                   1,687

$                         —

$                             13

$                   4,455

Cavallo Point, The Lodge at the Golden Gate


$              22,648


$                   3,099

$                   2,788

$                         —

$                          187

$                   6,074

Chicago Marriott Downtown Magnificent Mile


$              47,267


$                   5,961

$                   7,192

$                         12

$                        (795)

$                 12,370

Courtyard Denver Downtown


$                 5,653


$                   1,514

$                      754

$                         —

$                             —

$                   2,268

Courtyard New York Manhattan/Fifth Avenue


$                 8,344


$                         94

$                      746

$                         —

$                          507

$                   1,347

Courtyard New York Manhattan/Midtown East


$              15,969


$                   1,279

$                   1,005

$                   1,777

$                             —

$                   4,061

Embassy Suites by Hilton Bethesda


$                 6,752


$                 (3,152)

$                   1,143

$                         —

$                       2,946

$                       937

Havana Cabana Key West


$                 7,339


$                   2,329

$                      587

$                         —

$                             —

$                   2,916

Henderson Beach Resort


$              20,800


$                   2,458

$                   2,033

$                         —

$                             —

$                   4,491

Henderson Park Inn


$                 4,198


$                   1,139

$                      502

$                         —

$                             —

$                   1,641

Hilton Boston Downtown/Faneuil Hall


$              16,598


$                   1,578

$                   2,672

$                         —

$                             —

$                   4,250

Hilton Burlington Lake Champlain


$                 9,479


$                   1,281

$                   1,128

$                         —

$                             —

$                   2,409

Hilton Garden Inn New York/Times Square Central


$              11,608


$                       981

$                   1,284

$                         —

$                             —

$                   2,265

Hotel Clio


$              12,135


$                     (717)

$                   1,722

$                   1,262

$                             10

$                   2,277

Hotel Emblem San Francisco


$                 3,539


$                     (477)

$                      594

$                         —

$                             —

$                       117

Hotel Palomar Phoenix


$              13,855


$                   2,924

$                   1,149

$                         —

$                          359

$                   4,432

Kimpton Fort Lauderdale Beach Resort


$                 5,146


$                       187

$                      609

$                         —

$                             —

$                       796

Kimpton Shorebreak Resort


$              10,376


$                   2,614

$                      796

$                         —

$                             —

$                   3,410

L'Auberge de Sedona


$              15,616


$                   3,982

$                      744

$                         —

$                             —

$                   4,726

Lake Austin Spa Resort


$              10,919


$                   1,719

$                   1,269

$                         —

$                             —

$                   2,988

Margaritaville Beach House Key West


$              17,422


$                   6,884

$                   1,591

$                         —

$                             —

$                   8,475

Orchards Inn Sedona


$                 4,639


$                   1,100

$                      180

$                         —

$                             84

$                   1,364

Salt Lake City Marriott Downtown at City Creek


$              15,604


$                   4,514

$                   1,234

$                         —

$                             21

$                   5,769

The Gwen Hotel


$              16,379


$                       786

$                   2,133

$                         —

$                             —

$                   2,919

The Hythe Vail


$              27,307


$                   9,477

$                   2,402

$                         —

$                             —

$                 11,879

The Landing Lake Tahoe Resort & Spa


$                 4,307


$                     (155)

$                      532

$                         —

$                             —

$                       377

The Lindy Renaissance Charleston Hotel


$              12,250


$                   4,786

$                      941

$                         —

$                             —

$                   5,727

The Lodge at Sonoma Resort


$              15,066


$                   2,581

$                   1,298

$                         —

$                             —

$                   3,879

Tranquility Bay Beachfront Resort


$              13,334


$                   3,688

$                      866

$                         —

$                             —

$                   4,554

Westin Boston Seaport District


$              45,431


$                   2,135

$                   4,949

$                   3,970

$                        (245)

$                 10,809

Westin Fort Lauderdale Beach Resort


$              39,219


$                 10,810

$                   2,068

$                         —

$                             —

$                 12,878

Westin San Diego Bayview


$              17,118


$                   3,437

$                   1,710

$                         —

$                             —

$                   5,147

Westin Washington D.C. City Center


$              15,655


$                   1,679

$                   2,044

$                         —

$                             —

$                   3,723

Worthington Renaissance Fort Worth Hotel


$              24,560


$                   4,173

$                   2,236

$                   1,427

$                             —

$                   7,836

Total


$            534,800


$                 89,505

$                 55,312

$                   8,448

$                       3,087

$               156,345

Less: Non-Comparable Hotel (2)


$               (5,146)


$                     (187)

$                    (609)

$                         —

$                             —

$                     (796)

Comparable Total


$            529,654


$                 89,318

$                 54,703

$                   8,448

$                       3,087

$               155,549



(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 of intangible assets and liabilities.

(2)

Represents the operating results of the Kimpton Fort Lauderdale Beach Resort, which is non-comparable since the hotel opened during 2021.

 



Hotel Adjusted EBITDA Reconciliation - Year to Date 2022





Net Income /
(Loss)

Plus:

Plus:

Plus:

Equals: Hotel



Total Revenues


Depreciation

Interest Expense

Adjustments (1)

Adjusted EBITDA

Atlanta Marriott Alpharetta


$                   6,254


$                   1,167

$                      743

$                         —

$                         —

$                   1,910

Bourbon Orleans Hotel


$                   7,264


$                   1,210

$                   1,648

$                         —

$                         13

$                   2,871

Cavallo Point, The Lodge at the Golden Gate


$                 23,030


$                   3,904

$                   3,691

$                         —

$                      187

$                   7,782

Chicago Marriott Downtown Magnificent Mile


$                 35,885


$                   2,165

$                   7,848

$                         11

$                    (795)

$                   9,229

Courtyard Denver Downtown


$                   5,005


$                   1,520

$                      752

$                         —

$                         —

$                   2,272

Courtyard New York Manhattan/Fifth Avenue


$                   7,237


$                    (631)

$                      661

$                         —

$                      507

$                      537

Courtyard New York Manhattan/Midtown East


$                 12,717


$                    (564)

$                      971

$                   1,816

$                         —

$                   2,223

Embassy Suites by Hilton Bethesda


$                   3,855


$                 (4,910)

$                   1,114

$                         —

$                   2,972

$                    (824)

Havana Cabana Key West


$                   8,405


$                   3,518

$                      554

$                         —

$                         —

$                   4,072

Henderson Beach Resort


$                 22,294


$                   2,896

$                   1,923

$                         —

$                         —

$                   4,819

Henderson Park Inn


$                   4,437


$                   1,251

$                      438

$                         —

$                         —

$                   1,689

Hilton Boston Downtown/Faneuil Hall


$                 16,100


$                   2,719

$                   2,073

$                         —

$                         —

$                   4,792

Hilton Burlington Lake Champlain


$                   8,263


$                   1,367

$                   1,124

$                         —

$                         —

$                   2,491

Hilton Garden Inn New York/Times Square Central


$                 11,411


$                   1,445

$                   1,245

$                         —

$                         —

$                   2,690

Hotel Clio


$                 11,911


$                    (155)

$                   1,652

$                   1,291

$                         10

$                   2,798

Hotel Emblem San Francisco


$                   3,232


$                    (243)

$                      594

$                         —

$                         —

$                      351

Hotel Palomar Phoenix


$                 11,725


$                   2,529

$                   1,347

$                         —

$                      366

$                   4,242

Kimpton Fort Lauderdale Beach Resort


$                   1,962


$                         39

$                      314

$                         —

$                         —

$                      353

Kimpton Shorebreak Resort


$                 10,780


$                   3,235

$                      805

$                         —

$                         —

$                   4,040

L'Auberge de Sedona


$                 18,393


$                   6,442

$                      749

$                         —

$                         —

$                   7,191

Margaritaville Beach House Key West


$                 19,690


$                   8,857

$                   1,592

$                         —

$                         —

$                 10,449

Orchards Inn Sedona


$                   5,016


$                   1,698

$                      169

$                         —

$                         84

$                   1,951

Salt Lake City Marriott Downtown at City Creek


$                 12,684


$                   2,444

$                   1,086

$                      957

$                         21

$                   4,508

The Gwen Hotel


$                 16,174


$                   2,053

$                   2,145

$                         —

$                         —

$                   4,198

The Hythe Vail


$                 22,996


$                   6,243

$                   2,400

$                         —

$                         —

$                   8,643

The Landing Lake Tahoe Resort & Spa


$                   4,939


$                   1,112

$                      575

$                         —

$                         —

$                   1,687

The Lindy Renaissance Charleston Hotel


$                 12,102


$                   4,618

$                      918

$                         —

$                         —

$                   5,536

The Lodge at Sonoma Resort


$                 14,530


$                   2,369

$                   1,260

$                      521

$                         —

$                   4,150

Tranquility Bay Beachfront Resort


$                 15,222


$                   4,611

$                      865

$                         —

$                         —

$                   5,476

Westin Boston Seaport District


$                 38,447


$                       (38)

$                   4,898

$                   4,065

$                    (245)

$                   8,680

Westin Fort Lauderdale Beach Resort


$                 40,731


$                 15,555

$                   1,974

$                         —

$                         —

$                 17,529

Westin San Diego Bayview


$                 13,562


$                   1,698

$                   1,642

$                   1,169

$                         —

$                   4,509

Westin Washington D.C. City Center


$                 11,796


$                         44

$                   2,052

$                   1,184

$                         —

$                   3,280

Worthington Renaissance Fort Worth Hotel


$                 20,191


$                   2,750

$                   2,222

$                   1,461

$                           4

$                   6,437

Total


$               478,240


$                 82,918

$                 54,044

$                 12,475

$                   3,124

$               152,558

Add: Prior Ownership Results (2)


$                 12,010


$                   4,199

$                      296

$                         —

$                         —

$                   4,495

Comparable Total


$               490,250


$                 87,117

$                 54,340

$                 12,475

$                   3,124

$               157,053



(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 of intangible assets and liabilities.

(2)

Represents the pre-acquisition operating results of our 2022 acquisitions and excludes the Kimpton Fort Lauderdale Beach Resort.

 



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


$                 10,172


$                   2,768

$                      934

$                         —

$                         —

$                   3,702

Cavallo Point, The Lodge at the Golden Gate


$                 19,967


$                   1,047

$                   3,729

$                         —

$                      142

$                   4,918

Chicago Marriott Downtown Magnificent Mile


$                 50,721


$                   5,239

$                   8,295

$                      118

$                    (795)

$                 12,857

Courtyard Denver Downtown


$                   5,537


$                   2,014

$                      584

$                         —

$                         —

$                   2,598

Courtyard New York Manhattan/Fifth Avenue


$                   7,226


$                    (622)

$                      881

$                         —

$                      507

$                      766

Courtyard New York Manhattan/Midtown East


$                 13,303


$                    (640)

$                   1,379

$                   1,922

$                         —

$                   2,661

Embassy Suites by Hilton Bethesda


$                   9,171


$                    (954)

$                      951

$                         —

$                   3,042

$                   3,039

Frenchman's Reef & Morning Star Marriott Beach Resort


$                         —


$                   8,800

$                         —

$                         —

$                         —

$                   8,800

Havana Cabana Key West


$                   5,354


$                   1,949

$                      480

$                         —

$                         —

$                   2,429

Hilton Boston Downtown/Faneuil Hall


$                 19,833


$                   4,853

$                   2,477

$                         —

$                         —

$                   7,330

Hilton Burlington Lake Champlain


$                   7,910


$                   1,466

$                   1,015

$                         —

$                         —

$                   2,481

Hilton Garden Inn New York/Times Square Central


$                 11,714


$                      787

$                   1,671

$                         —

$                         —

$                   2,458

Hotel Clio


$                   8,474


$                 (1,213)

$                   1,229

$                   1,370

$                         12

$                   1,398

Hotel Emblem San Francisco


$                   3,344


$                       (77)

$                      572

$                         —

$                         —

$                      495

Hotel Palomar Phoenix


$                 13,683


$                   2,743

$                   1,329

$                         76

$                      589

$                   4,737

Kimpton Shorebreak Resort


$                   8,424


$                   1,778

$                      698

$                         —

$                         81

$                   2,557

L'Auberge de Sedona


$                 13,622


$                   2,960

$                   1,017

$                         —

$                         —

$                   3,977

Margaritaville Beach House Key West


$                 10,240


$                   3,612

$                      682

$                         —

$                         —

$                   4,294

Orchards Inn Sedona


$                   4,292


$                      896

$                      475

$                         —

$                         84

$                   1,455

Salt Lake City Marriott Downtown at City Creek


$                 14,737


$                   2,752

$                   1,104

$                   1,210

$                         —

$                   5,066

The Gwen Hotel


$                 14,937


$                      773

$                   2,208

$                         —

$                         —

$                   2,981

The Hythe Vail, a Luxury Collection Resort


$                 19,880


$                   4,923

$                   2,025

$                         —

$                         —

$                   6,948

The Landing Lake Tahoe Resort & Spa


$                   3,558


$                    (792)

$                      761

$                         —

$                         —

$                       (31)

The Lexington Hotel


$                 29,534


$                 (3,098)

$                   7,085

$                         12

$                         16

$                   4,015

The Lindy Renaissance Charleston Hotel


$                   8,168


$                   2,796

$                      821

$                         —

$                       (63)

$                   3,554

The Lodge at Sonoma Resort


$                 11,475


$                   1,165

$                   1,064

$                      558

$                         —

$                   2,787

Westin Boston Seaport District


$                 46,982


$                   3,873

$                   4,849

$                   4,324

$                    (120)

$                 12,926

Westin Fort Lauderdale Beach Resort


$                 30,115


$                   8,172

$                   3,178

$                         —

$                         —

$                 11,350

Westin San Diego Bayview


$                 17,679


$                   3,330

$                   2,262

$                   1,264

$                         —

$                   6,856

Westin Washington D.C. City Center


$                 17,410


$                   1,795

$                   2,639

$                   1,322

$                         —

$                   5,756

Worthington Renaissance Fort Worth Hotel


$                 22,831


$                   5,729

$                   1,937

$                   1,555

$                           4

$                   9,225

Total


$               460,293


$                 68,824

$                 58,331

$                 13,731

$                   3,499

$               144,280

Add: Prior Ownership Results (2)


$                 44,475


$                   6,617

$                   4,077

$                         —

$                         —

$                 10,694

Less: Sold Hotels (3)


$               (29,534)


$                 (5,702)

$                 (7,085)

$                       (12)

$                       (16)

$               (12,815)

Comparable Total


$               475,234


$                 69,739

$                 55,323

$                 13,719

$                   3,483

$               142,159



(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 of intangible assets and liabilities.

(2)

Represents the pre-acquisition operating results of our 2021 and 2022 acquisitions (excluding the Kimpton Fort Lauderdale Beach Resort).

(3)

Represents the operating results of Frenchman's Reef and The Lexington Hotel.

 

Cision View original content:https://www.prnewswire.com/news-releases/diamondrock-hospitality-company-reports-second-quarter-results-301892967.html

SOURCE DiamondRock Hospitality Company

DiamondRock Hospitality Company

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