Exhibit 99.2
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Supplemental Financial Information For the quarter ended September 30, 2023 November 7, 2023 | |||
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Supplemental Financial Information |
Table of Contents
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Corporate Profile And Disclosures Regarding Non-GAAP Financial Measures | 2 | |||||||
7 | ||||||||
19 | ||||||||
22 | ||||||||
Property-Level Revenues, Adjusted EBITDAre & Adjusted EBITDAre Margins | 28 |
Supplemental Financial Information |
CORPORATE PROFILE AND DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES
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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | | Page 2 | ||||||
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Supplemental Financial Information |
Sunstone Hotel Investors, Inc. (the “Company,” “we,” and “our”) (NYSE: SHO) is a lodging real estate investment trust (“REIT”) that as of November 7, 2023 owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone’s strategy is to create long-term stakeholder value through the acquisition, active ownership and disposition of well-located hotel and resort real estate.
This presentation contains unaudited information and should be read together with the consolidated financial statements and notes thereto included in our most recent reports on Form 10-K and Form 10-Q. Copies of these reports are available on our website at www.sunstonehotels.com and through the SEC’s Electronic Data Gathering Analysis and Retrieval System (“EDGAR”) at www.sec.gov.
Corporate Headquarters
15 Enterprise, Suite 200
Aliso Viejo, CA 92656
(949) 330-4000
Company Contacts
Bryan Giglia
Chief Executive Officer
(949) 382-3036
Aaron Reyes
Chief Financial Officer
(949) 382-3018
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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | | Page 3 | ||||||
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Supplemental Financial Information |
We present the following non-GAAP financial measures that we believe are useful to investors as key supplemental measures of our operating performance: earnings before interest expense, taxes, depreciation and amortization for real estate, or EBITDAre; Adjusted EBITDAre, excluding noncontrolling interest (as defined below); funds from operations attributable to common stockholders, or FFO attributable to common stockholders; Adjusted FFO attributable to common stockholders (as defined below); hotel Adjusted EBITDAre; and hotel Adjusted EBITDAre margins. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. In addition, our calculation of these measures may not be comparable to other companies that do not define such terms exactly the same as the Company. These non-GAAP measures are used in addition to and in conjunction with results presented in accordance with GAAP. They should not be considered as alternatives to net income (loss), cash flow from operations, or any other operating performance measure prescribed by GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.
We present EBITDAre in accordance with guidelines established by the National Association of Real Estate Investment Trusts (“Nareit”), as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate.” We believe EBITDAre is a useful performance measure to help investors evaluate and compare the results of our operations from period to period in comparison to our peers. Nareit defines EBITDAre as net income (calculated in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, gains or losses on the disposition of depreciated property (including gains or losses on change in control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property in the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates.
We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful information to investors regarding our operating performance, and that the presentation of Adjusted EBITDAre, excluding noncontrolling interest, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s complete understanding of our operating performance. In addition, we use both EBITDAre and Adjusted EBITDAre, excluding noncontrolling interest as measures in determining the value of hotel acquisitions and dispositions.
We believe that the presentation of FFO attributable to common stockholders provides useful information to investors regarding our operating performance because it is a measure of our operations without regard to specified noncash items such as real estate depreciation and amortization, any real estate impairment loss and any gain or loss on sale of real estate assets, all of which are based on historical cost accounting and may be of lesser significance in evaluating our current performance. Our presentation of FFO attributable to common stockholders conforms to Nareit’s definition of “FFO applicable to common shares.” Our presentation may not be comparable to FFO reported by other REITs that do not define the terms in accordance with the current Nareit definition, or that interpret the current Nareit definition differently than we do.
We also present Adjusted FFO attributable to common stockholders when evaluating our operating 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 may facilitate comparisons of operating performance between periods and our peer companies.
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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | | Page 4 | ||||||
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Supplemental Financial Information |
We adjust EBITDAre and FFO attributable to common stockholders for the following items, which may occur in any period, and refer to these measures as either Adjusted EBITDAre, excluding noncontrolling interest or Adjusted FFO attributable to common stockholders:
● | Amortization of deferred stock compensation: we exclude the noncash expense incurred with the amortization of deferred stock compensation as this expense is based on historical stock prices at the date of grant to our corporate employees and does not reflect the underlying performance of our hotels. |
● | Amortization of contract intangibles: we exclude the noncash amortization of any favorable or unfavorable contract intangibles recorded in conjunction with our hotel acquisitions. We exclude the noncash amortization of contract intangibles because it is based on historical cost accounting and is of lesser significance in evaluating our actual performance for the current period. |
● | Gains or losses from debt transactions: we exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of deferred financing costs from the original issuance of the debt being redeemed or retired because, like interest expense, their removal helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure. |
● | Cumulative effect of a change in accounting principle: from time to time, the FASB promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments, which include the accounting impact from prior periods, because they do not reflect our actual performance for that period. |
● | Other adjustments: we exclude other adjustments that we believe are outside the ordinary course of business because we do not believe these costs reflect our actual performance for the period and/or the ongoing operations of our hotels. Such items may include: lawsuit settlement costs; the write-off of development costs associated with abandoned projects; property-level restructuring, severance and management transition costs; debt resolution costs; lease terminations; property insurance restoration proceeds or uninsured losses; and other nonrecurring identified adjustments. |
In addition, to derive Adjusted EBITDAre, excluding noncontrolling interest we exclude the noncontrolling partner’s pro rata share of the net (income) loss allocated to the Hilton San Diego Bayfront partnership prior to our acquisition of the noncontrolling partner’s interest in June 2022, as well as the noncontrolling partner’s pro rata share of any EBITDAre and Adjusted EBITDAre components. We also exclude the amortization of our right-of-use assets and related lease obligations as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. Additionally, we include an adjustment for the cash finance lease expense recorded on the building lease at the Hyatt Centric Chicago Magnificent Mile (prior to the hotel’s sale in February 2022). We determined that the building lease was a finance lease, and, therefore, we included a portion of the lease payment each month in interest expense. We adjust EBITDAre for the finance lease in order to more accurately reflect the actual rent due to the hotel’s lessor in the respective period, as well as the operating performance of the hotel. We also exclude the effect of gains and losses on the disposition of undepreciated assets because we believe that including them in Adjusted EBITDAre, excluding noncontrolling interest is not consistent with reflecting the ongoing performance of our assets.
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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | | Page 5 | ||||||
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Supplemental Financial Information |
To derive Adjusted FFO attributable to common stockholders, we also exclude the noncash interest on our derivatives and finance lease obligation as we believe that these items are not reflective of our ongoing finance costs. Additionally, we exclude the noncontrolling partner’s pro rata share of any FFO adjustments related to our consolidated Hilton San Diego Bayfront partnership components prior to our acquisition of the noncontrolling partner’s interest in June 2022. We also exclude the real estate amortization of our right-of-use assets and related lease obligations, which includes the amortization of both our finance and operating lease intangibles (with the exception of our corporate operating lease), as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. In addition, we exclude preferred stock redemption charges, changes to deferred tax assets, liabilities or valuation allowances, and income tax benefits or provisions associated with the application of net operating loss carryforwards, uncertain tax positions or with the sale of assets other than real estate investments.
In presenting hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins, miscellaneous non-hotel items have been excluded. We believe the calculation of hotel Adjusted EBITDAre results in a more accurate presentation of the hotel Adjusted EBITDAre margins for our hotels, and that these non-GAAP financial measures are useful to investors in evaluating our property-level operating performance.
Reconciliations of net income to EBITDAre, Adjusted EBITDAre, excluding noncontrolling interest, FFO attributable to common stockholders, Adjusted FFO attributable to common stockholders, hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins are set forth in the following pages of this supplemental package.
The 15 Hotel Portfolio consists of all hotels owned by the Company as of September 30, 2023. The 15 Hotel Portfolio presented for the third quarter of 2019 and the first nine months of 2022 and 2019 includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022. The Company obtained prior ownership information from the prior owner of The Confidante Miami Beach during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition.
The 13 Hotel Portfolio consists of the 15 Hotel Portfolio, excluding the Montage Healdsburg and the Four Seasons Resort Napa Valley, which were acquired in April 2021 and December 2021, respectively. Both the Montage Healdsburg and the Four Seasons Resort Napa Valley were newly-developed hotels that were not open in 2019. The 13 Hotel Portfolio presented for the third quarter of 2019 and the first nine months of 2022 and 2019 includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022.
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CORPORATE PROFILE AND DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES | | Page 6 | ||||||
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Supplemental Financial Information |
COMPARABLE CORPORATE FINANCIAL INFORMATION
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COMPARABLE CORPORATE FINANCIAL INFORMATION | | Page 7 | ||||||
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Supplemental Financial Information |
Comparable Consolidated Statements of Operations
Q3 2023 – Q4 2022, Trailing 12 Months
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| Quarter Ended (1) | | Trailing 12 Months (1) | ||||||||||||
(Unaudited and in thousands, except per share data) | September 30, | | June 30, | | March 31, | | December 31, | | Ended | ||||||
| 2023 |
| 2023 |
| 2023 |
| 2022 |
| September 30, 2023 | ||||||
Revenues | | | | | | | | | | | | | | | |
Room | $ | 158,467 | | $ | 173,399 | | $ | 152,438 | | $ | 147,277 | | $ | 631,581 | |
Food and beverage | | 64,007 | | | 78,815 | | | 70,812 | | | 65,847 | | | 279,481 | |
Other operating | | 25,226 | | | 23,898 | | | 20,193 | | | 31,020 | | | 100,337 | |
Total revenues | | 247,700 | | | 276,112 | | | 243,443 | | | 244,144 | | | 1,011,399 | |
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Operating Expenses | | | | | | | | | | | | | | | |
Room | | 41,034 | | | 42,658 | | | 39,064 | | | 38,691 | | | 161,447 | |
Food and beverage | | 47,777 | | | 51,997 | | | 48,535 | | | 48,187 | | | 196,496 | |
Other expenses | | 91,747 | | | 92,211 | | | 90,245 | | | 84,308 | | | 358,511 | |
Corporate overhead | | 7,127 | | | 8,396 | | | 8,468 | | | 7,936 | | | 31,927 | |
Depreciation and amortization | | 33,188 | | | 32,397 | | | 32,342 | | | 32,393 | | | 130,320 | |
Impairment loss | | — | | | — | | | — | | | 3,466 | | | 3,466 | |
Total operating expenses | | 220,873 | | | 227,659 | | | 218,654 | | | 214,981 | | | 882,167 | |
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Interest and other income | | 1,218 | | | 4,639 | | | 541 | | | 476 | | | 6,874 | |
Interest expense | | (11,894) | | | (9,223) | | | (13,794) | | | (11,717) | | | (46,628) | |
Income before income taxes | | 16,151 | | | 43,869 | | | 11,536 | | | 17,922 | | | 89,478 | |
Income tax provision, net | | (602) | | | (803) | | | (358) | | | (485) | | | (2,248) | |
Net income | $ | 15,549 | | $ | 43,066 | | $ | 11,178 | | $ | 17,437 | | $ | 87,230 | |
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Comparable Hotel Adjusted EBITDAre (2) | $ | 66,935 | | $ | 89,133 | | $ | 65,413 | | $ | 61,866 | | $ | 283,347 | |
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Comparable Adjusted EBITDAre (3) | $ | 63,712 | | $ | 85,057 | | $ | 60,029 | | $ | 68,777 | | $ | 277,575 | |
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Comparable Adjusted FFO attributable to common stockholders (4) | $ | 46,350 | | $ | 67,387 | | $ | 43,824 | | $ | 53,733 | | $ | 211,294 | |
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Comparable Adjusted FFO attributable to common stockholders per diluted share (4) | $ | 0.23 | | $ | 0.33 | | $ | 0.21 | | $ | 0.26 | | $ | 1.03 |
*Footnotes on page 11
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COMPARABLE CORPORATE FINANCIAL INFORMATION | | Page 8 | ||||||
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Supplemental Financial Information |
Comparable Consolidated Statements of Operations
Q4 2022 – Q1 2022, FY 2022
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| Quarter Ended (1) | | Year Ended (1) | ||||||||||||
(Unaudited and in thousands, except per share data) | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | ||||||
| 2022 |
| 2022 |
| 2022 |
| 2022 |
| 2022 | ||||||
Revenues | | | | | | | | | | | | | | | |
Room | $ | 147,277 | | $ | 158,400 | | $ | 167,194 | | $ | 115,515 | | $ | 588,386 | |
Food and beverage | | 65,847 | | | 63,476 | | | 74,307 | | | 42,911 | | | 246,541 | |
Other operating | | 31,020 | | | 22,438 | | | 18,711 | | | 24,360 | | | 96,529 | |
Total revenues | | 244,144 | | | 244,314 | | | 260,212 | | | 182,786 | | | 931,456 | |
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Operating Expenses | | | | | | | | | | | | | | | |
Room | | 38,691 | | | 38,791 | | | 38,626 | | | 30,425 | | | 146,533 | |
Food and beverage | | 48,187 | | | 47,181 | | | 48,304 | | | 34,233 | | | 177,905 | |
Other expenses | | 84,308 | | | 88,746 | | | 87,269 | | | 75,023 | | | 335,346 | |
Corporate overhead | | 7,936 | | | 7,879 | | | 8,717 | | | 10,714 | | | 35,246 | |
Depreciation and amortization | | 32,393 | | | 31,750 | | | 31,720 | | | 31,711 | | | 127,574 | |
Impairment loss | | 3,466 | | | — | | | — | | | — | | | 3,466 | |
Total operating expenses | | 214,981 | | | 214,347 | | | 214,636 | | | 182,106 | | | 826,070 | |
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Interest and other income | | 476 | | | 270 | | | 116 | | | 4,380 | | | 5,242 | |
Interest expense | | (11,717) | | | (9,269) | | | (5,938) | | | (4,964) | | | (31,888) | |
Loss on extinguishment of debt | | — | | | (784) | | | — | | | (230) | | | (1,014) | |
Income (loss) before income taxes | | 17,922 | | | 20,184 | | | 39,754 | | | (134) | | | 77,726 | |
Income tax (provision) benefit, net | | (485) | | | 290 | | | (28) | | | (136) | | | (359) | |
Net income (loss) | $ | 17,437 | | $ | 20,474 | | $ | 39,726 | | $ | (270) | | $ | 77,367 | |
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Comparable Hotel Adjusted EBITDAre (2) | $ | 61,866 | | $ | 69,422 | | $ | 87,308 | | $ | 42,687 | | $ | 261,283 | |
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Comparable Adjusted EBITDAre (3) | $ | 68,777 | | $ | 63,848 | | $ | 80,031 | | $ | 37,103 | | $ | 249,759 | |
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Comparable Adjusted FFO attributable to common stockholders (4) | $ | 53,733 | | $ | 51,264 | | $ | 69,051 | | $ | 26,183 | | $ | 200,231 | |
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Comparable Adjusted FFO attributable to common stockholders per diluted share (4) | $ | 0.26 | | $ | 0.25 | | $ | 0.34 | | $ | 0.13 | | $ | 0.98 |
*Footnotes on page 11
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COMPARABLE CORPORATE FINANCIAL INFORMATION | | Page 9 | ||||||
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Supplemental Financial Information |
Comparable Consolidated Statements of Operations
Q4 2019 – Q1 2019, FY 2019
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| Quarter Ended (1) | | Year Ended (1) | ||||||||||||
(Unaudited and in thousands, except per share data) | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | ||||||
| 2019 |
| 2019 |
| 2019 |
| 2019 |
| 2019 | ||||||
Revenues | | | | | | | | | | | | | | | |
Room | $ | 140,388 | | $ | 145,477 | | $ | 154,320 | | $ | 140,689 | | $ | 580,874 | |
Food and beverage | | 59,112 | | | 53,525 | | | 67,089 | | | 63,338 | | | 243,064 | |
Other operating | | 17,415 | | | 17,523 | | | 16,271 | | | 15,124 | | | 66,333 | |
Total revenues | | 216,915 | | | 216,525 | | | 237,680 | | | 219,151 | | | 890,271 | |
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Operating Expenses | | | | | | | | | | | | | | | |
Room | | 36,422 | | | 37,604 | | | 37,604 | | | 35,979 | | | 147,609 | |
Food and beverage | | 40,345 | | | 38,763 | | | 42,286 | | | 41,704 | | | 163,098 | |
Other expenses | | 73,100 | | | 71,415 | | | 73,549 | | | 73,328 | | | 291,392 | |
Corporate overhead | | 7,275 | | | 7,395 | | | 8,078 | | | 7,516 | | | 30,264 | |
Depreciation and amortization | | 28,231 | | | 28,315 | | | 27,684 | | | 27,541 | | | 111,771 | |
Total operating expenses | | 185,373 | | | 183,492 | | | 189,201 | | | 186,068 | | | 744,134 | |
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Interest and other income | | 3,060 | | | 3,762 | | | 4,811 | | | 4,924 | | | 16,557 | |
Interest expense | | (6,880) | | | (9,074) | | | (11,634) | | | (10,149) | | | (37,737) | |
Income before income taxes | | 27,722 | | | 27,721 | | | 41,656 | | | 27,858 | | | 124,957 | |
Income tax (provision) benefit, net | | (1,034) | | | 749 | | | (2,676) | | | 3,112 | | | 151 | |
Net income | $ | 26,688 | | $ | 28,470 | | $ | 38,980 | | $ | 30,970 | | $ | 125,108 | |
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Comparable Hotel Adjusted EBITDAre (2) | $ | 67,146 | | $ | 68,778 | | $ | 84,305 | | $ | 68,415 | | $ | 288,644 | |
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Comparable Adjusted EBITDAre (3) | $ | 64,653 | | $ | 66,936 | | $ | 82,652 | | $ | 67,767 | | $ | 282,008 |
*Footnotes on page 11
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COMPARABLE CORPORATE FINANCIAL INFORMATION | | Page 10 | ||||||||
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Supplemental Financial Information |
Comparable Consolidated Statements of Operations
Footnotes
(1) | Excludes results for the Courtyard by Marriott Los Angeles, the Renaissance Harborplace, the Renaissance Los Angeles Airport, the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in October 2019, July 2020, December 2020, October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022. Also excludes results and the gain on extinguishment of debt due to the resolution of potential employee-related obligations for the Hilton Times Square in connection with the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel’s mortgage holder which transferred the Company’s leasehold interest in the hotel to the mortgage holder, and the elimination of interest expense on the mortgage loan secured by the Renaissance Washington DC due to its repayment in December 2020. Includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022, adjusted for the Company's pro forma depreciation expense. |
(2) | Comparable Hotel Adjusted EBITDAre reconciliations for the third quarters of 2023, 2022 and 2019 can be found later in this presentation. Additional details can be found in our earnings release, furnished in Exhibit 99.1 to our 8-K filed on November 7, 2023. Comparable Hotel Adjusted EBITDAre presented for the first, second and third quarters of 2023 and the four quarters and year ended December 31, 2022 includes the 15 Hotel Portfolio. Comparable Hotel Adjusted EBITDAre presented for the four quarters and year ended December 31, 2019 includes the 13 Hotel Portfolio. |
(3) | Comparable Adjusted EBITDAre reconciliations for each of the periods included in this presentation can be found in the following pages and reflect the adjustments noted in Footnote 1 above, along with the elimination of noncontrolling interest due to the Company's acquisition of the outside 25% ownership interest in the joint venture that owned the Hilton San Diego Bayfront in June 2022. |
(4) | Comparable Adjusted FFO attributable to common stockholders and Comparable Adjusted FFO attributable to common stockholders per diluted share reconciliations for the 2023 and 2022 periods included in this presentation can be found in the following pages and reflect the adjustments noted in Footnotes 1 and 3 above, along with repurchases totaling 10,245,324 shares of common stock in the first, second, third and fourth quarters of 2022 and 3,827,759 shares of common stock in the first, second and third quarters of 2023. |
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COMPARABLE CORPORATE FINANCIAL INFORMATION | | Page 11 | ||||||||
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Supplemental Financial Information |
Comparable Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre
Q3 2023 – Q4 2022, Trailing 12 Months
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| Quarter Ended | | Trailing 12 Months | |||||||||||
| September 30, | | June 30, | | March 31, | | December 31, | | Ended | |||||
(In thousands) | 2023 | | 2023 | | 2023 | | 2022 | | September 30, 2023 | |||||
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Net income | $ | 15,558 | | $ | 43,078 | | $ | 21,087 | | $ | 17,463 | | $ | 97,186 |
Operations held for investment: | | | | | | | | | | | | | | |
Depreciation and amortization | | 33,188 | | | 32,397 | | | 32,342 | | | 32,393 | | | 130,320 |
Interest expense | | 11,894 | | | 9,223 | | | 13,794 | | | 11,717 | | | 46,628 |
Income tax provision, net | | 602 | | | 803 | | | 358 | | | 485 | | | 2,248 |
Impairment loss - depreciable assets | | — | | | — | | | — | | | 1,379 | | | 1,379 |
EBITDAre | | 61,242 | | | 85,501 | | | 67,581 | | | 63,437 | | | 277,761 |
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Operations held for investment: | | | | | | | | | | | | | | |
Amortization of deferred stock compensation | | 2,511 | | | 3,325 | | | 2,427 | | | 2,230 | | | 10,493 |
Amortization of right-of-use assets and obligations | | (13) | | | (17) | | | (52) | | | (359) | | | (441) |
Amortization of contract intangibles, net | | (19) | | | (18) | | | (18) | | | (18) | | | (73) |
Gain on extinguishment of debt | | (9) | | | (12) | | | (9,909) | | | (26) | | | (9,956) |
Hurricane-related insurance restoration proceeds | | — | | | (3,722) | | | — | | | — | | | (3,722) |
Property-level severance | | — | | | — | | | — | | | 729 | | | 729 |
Costs associated with financing no longer pursued | | — | | | — | | | — | | | 697 | | | 697 |
Impairment loss - right-of-use asset | | — | | | — | | | — | | | 2,087 | | | 2,087 |
Adjustments to EBITDAre, net | | 2,470 | | | (444) | | | (7,552) | | | 5,340 | | | (186) |
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Comparable Adjusted EBITDAre | $ | 63,712 | | $ | 85,057 | | $ | 60,029 | | $ | 68,777 | | $ | 277,575 |
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COMPARABLE CORPORATE FINANCIAL INFORMATION | | Page 12 | ||||||||
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Supplemental Financial Information |
Comparable Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders
Q3 2023 – Q4 2022, Trailing 12 Months
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| Quarter Ended | | Trailing 12 Months | |||||||||||
| September 30, | | June 30, | | March 31, | | December 31, | | Ended | |||||
(In thousands, except per share data) | 2023 | | 2023 | | 2023 | | 2022 | | September 30, 2023 | |||||
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Net income | $ | 15,558 | | $ | 43,078 | | $ | 21,087 | | $ | 17,463 | | $ | 97,186 |
Preferred stock dividends | | (3,226) | | | (3,768) | | | (3,768) | | | (3,350) | | | (14,112) |
Operations held for investment: | | | | | | | | | | | | | | |
Real estate depreciation and amortization | | 33,025 | | | 32,240 | | | 32,191 | | | 32,023 | | | 129,479 |
FFO attributable to common stockholders | | 45,357 | | | 71,550 | | | 49,510 | | | 46,136 | | | 212,553 |
| | | | | | | | | | | | | | |
Operations held for investment: | | | | | | | | | | | | | | |
Amortization of deferred stock compensation | | 2,511 | | | 3,325 | | | 2,427 | | | 2,230 | | | 10,493 |
Real estate amortization of right-of-use assets and obligations | | (124) | | | (128) | | | (119) | | | (287) | | | (658) |
Amortization of contract intangibles, net | | 84 | | | 85 | | | 83 | | | 78 | | | 330 |
Noncash interest on derivatives, net | | (1,469) | | | (3,711) | | | 1,832 | | | 710 | | | (2,638) |
Gain on extinguishment of debt | | (9) | | | (12) | | | (9,909) | | | (26) | | | (9,956) |
Hurricane-related insurance restoration proceeds | | — | | | (3,722) | | | — | | | — | | | (3,722) |
Property-level severance | | — | | | — | | | — | | | 729 | | | 729 |
Costs associated with financing no longer pursued | | — | | | — | | | — | | | 697 | | | 697 |
Impairment losses - right-of-use and depreciable assets | | — | | | — | | | — | | | 3,466 | | | 3,466 |
Adjustments to FFO attributable to common stockholders, net | | 993 | | | (4,163) | | | (5,686) | | | 7,597 | | | (1,259) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Comparable Adjusted FFO attributable to common stockholders | $ | 46,350 | | $ | 67,387 | | $ | 43,824 | | $ | 53,733 | | $ | 211,294 |
| | | | | | | | | | | | | | |
Comparable Adjusted FFO attributable to common stockholders per diluted share | $ | 0.23 | | $ | 0.33 | | $ | 0.21 | | $ | 0.26 | | $ | 1.03 |
| | | | | | | | | | | | | | |
Basic weighted average shares outstanding | | 205,570 | | | 206,181 | | | 207,035 | | | 209,097 | | | 206,971 |
Shares associated with unvested restricted stock awards | | 411 | | | 733 | | | 501 | | | 449 | | | 524 |
Diluted weighted average shares outstanding | | 205,981 | | | 206,914 | | | 207,536 | | | 209,546 | | | 207,494 |
Equity transactions (1) | | (979) | | | (1,621) | | | (2,690) | | | (4,893) | | | (2,546) |
Comparable diluted weighted average shares outstanding | | 205,002 | | | 205,293 | | | 204,846 | | | 204,653 | | | 204,949 |
(1) | Equity transactions represent repurchases totaling 2,249,764 shares of common stock in the fourth quarter of 2022, along with the repurchases of 1,964,923, 301,461 and 1,561,375 shares of common stock in the first, second and third quarters of 2023, respectively. |
| | |||||||||
COMPARABLE CORPORATE FINANCIAL INFORMATION | | Page 13 | ||||||||
| | |
Supplemental Financial Information |
Comparable Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre
Q4 2022 – Q1 2022, FY 2022
| | | | | | | | | | | | | | |
| Quarter Ended | | Year Ended | |||||||||||
| December 31, | | September 30, | | June 30, | | March 31, | | December 31, | |||||
(In thousands) | 2022 | | 2022 | | 2022 | | 2022 | | 2022 | |||||
| | | | | | | | | | | | | | |
Net income | $ | 17,463 | | $ | 20,488 | | $ | 37,692 | | $ | 15,123 | | $ | 90,766 |
Operations held for investment: | | | | | | | | | | | | | | |
Depreciation and amortization | | 32,393 | | | 31,750 | | | 30,893 | | | 31,360 | | | 126,396 |
Interest expense | | 11,717 | | | 9,269 | | | 5,938 | | | 5,081 | | | 32,005 |
Income tax provision (benefit), net | | 485 | | | (290) | | | 28 | | | 136 | | | 359 |
Gain on sale of assets | | — | | | — | | | — | | | (22,946) | | | (22,946) |
Impairment loss - depreciable assets | | 1,379 | | | — | | | — | | | — | | | 1,379 |
EBITDAre | | 63,437 | | | 61,217 | | | 74,551 | | | 28,754 | | | 227,959 |
| | | | | | | | | | | | | | |
Operations held for investment: | | | | | | | | | | | | | | |
Amortization of deferred stock compensation | | 2,230 | | | 2,230 | | | 2,853 | | | 3,578 | | | 10,891 |
Amortization of right-of-use assets and obligations | | (359) | | | (350) | | | (354) | | | (346) | | | (1,409) |
Amortization of contract intangibles, net | | (18) | | | (19) | | | (18) | | | (6) | | | (61) |
Finance lease obligation interest - cash ground rent | | — | | | — | | | — | | | (117) | | | (117) |
(Gain) loss on extinguishment of debt, net | | (26) | | | 770 | | | (21) | | | 213 | | | 936 |
Hurricane-related losses net of insurance restoration proceeds | | — | | | — | | | 138 | | | (2,893) | | | (2,755) |
Property-level severance | | 729 | | | — | | | — | | | — | | | 729 |
Costs associated with financing no longer pursued | | 697 | | | — | | | — | | | — | | | 697 |
Impairment loss - right-of-use asset | | 2,087 | | | — | | | — | | | — | | | 2,087 |
Noncontrolling interest: | | | | | | | | | | | | | | |
Income from consolidated joint venture attributable to noncontrolling interest | | — | | | — | | | (2,343) | | | (1,134) | | | (3,477) |
Depreciation and amortization | | — | | | — | | | (666) | | | (790) | | | (1,456) |
Interest expense | | — | | | — | | | (206) | | | (168) | | | (374) |
Amortization of right-of-use asset and obligation | | — | | | — | | | 60 | | | 72 | | | 132 |
Adjustments to EBITDAre, net | | 5,340 | | | 2,631 | | | (557) | | | (1,591) | | | 5,823 |
| | | | | | | | | | | | | | |
Adjusted EBITDAre, excluding noncontrolling interest | | 68,777 | | | 63,848 | | | 73,994 | | | 27,163 | | | 233,782 |
Sold hotel Adjusted EBITDAre (1) | | — | | | — | | | — | | | 2,172 | | | 2,172 |
Acquisition hotel Adjusted EBITDAre (2) | | — | | | — | | | 6,037 | | | 7,768 | | | 13,805 |
| | | | | | | | | | | | | | |
Comparable Adjusted EBITDAre | $ | 68,777 | | $ | 63,848 | | $ | 80,031 | | $ | 37,103 | | $ | 249,759 |
*Footnotes on page 16
| ||||||||
COMPARABLE CORPORATE FINANCIAL INFORMATION | | Page 14 | ||||||
| | |
Supplemental Financial Information |
Comparable Reconciliation of Net Income to FFO and Adjusted FFO Attributable to Common Stockholders
Q4 2022 – Q1 2022, FY 2022
| | | | | | | | | | | | | | |
| Quarter Ended | | Year Ended | |||||||||||
| December 31, | | September 30, | | June 30, | | March 31, | | December 31, | |||||
(In thousands, except per share data) | 2022 | | 2022 | | 2022 | | 2022 | | 2022 | |||||
| | | | | | | | | | | | | | |
Net income | $ | 17,463 | | $ | 20,488 | | $ | 37,692 | | $ | 15,123 | | $ | 90,766 |
Preferred stock dividends | | (3,350) | | | (3,351) | | | (3,773) | | | (3,773) | | | (14,247) |
Operations held for investment: | | | | | | | | | | | | | | |
Real estate depreciation and amortization | | 32,023 | | | 31,313 | | | 30,456 | | | 31,027 | | | 124,819 |
Gain on sale of assets | | — | | | — | | | — | | | (22,946) | | | (22,946) |
Noncontrolling interest: | | | | | | | | | | | | | | |
Income from consolidated joint venture attributable to noncontrolling interest | | — | | | — | | | (2,343) | | | (1,134) | | | (3,477) |
Real estate depreciation and amortization | | — | | | — | | | (666) | | | (790) | | | (1,456) |
FFO attributable to common stockholders | | 46,136 | | | 48,450 | | | 61,366 | | | 17,507 | | | 173,459 |
| | | | | | | | | | | | | | |
Operations held for investment: | | | | | | | | | | | | | | |
Amortization of deferred stock compensation | | 2,230 | | | 2,230 | | | 2,853 | | | 3,578 | | | 10,891 |
Real estate amortization of right-of-use assets and obligations | | (287) | | | (288) | | | (294) | | | (286) | | | (1,155) |
Amortization of contract intangibles, net | | 78 | | | 141 | | | 143 | | | 60 | | | 422 |
Noncash interest on derivatives, net | | 710 | | | (39) | | | (1,023) | | | (1,842) | | | (2,194) |
(Gain) loss on extinguishment of debt, net | | (26) | | | 770 | | | (21) | | | 213 | | | 936 |
Hurricane-related losses net of insurance restoration proceeds | | — | | | — | | | 138 | | | (2,893) | | | (2,755) |
Property-level severance | | 729 | | | — | | | — | | | — | | | 729 |
Costs associated with financing no longer pursued | | 697 | | | — | | | — | | | — | | | 697 |
Impairment losses - right-of-use and depreciable assets | | 3,466 | | | — | | | — | | | — | | | 3,466 |
Noncontrolling interest: | | | | | | | | | | | | | | |
Real estate amortization of right-of-use asset and obligation | | — | | | — | | | 60 | | | 72 | | | 132 |
Noncash interest on derivatives, net | | — | | | — | | | (2) | | | 2 | | | — |
Adjustments to FFO attributable to common stockholders, net | | 7,597 | | | 2,814 | | | 1,854 | | | (1,096) | | | 11,169 |
| | | | | | | | | | | | | | |
Adjusted FFO attributable to common stockholders | | 53,733 | | | 51,264 | | | 63,220 | | | 16,411 | | | 184,628 |
Sold hotel Adjusted FFO (1) | | — | | | — | | | — | | | 2,172 | | | 2,172 |
Acquisition hotel Adjusted FFO (2) | | — | | | — | | | 5,831 | | | 7,600 | | | 13,431 |
| | | | | | | | | | | | | | |
Comparable Adjusted FFO attributable to common stockholders | $ | 53,733 | | $ | 51,264 | | $ | 69,051 | | $ | 26,183 | | $ | 200,231 |
| | | | | | | | | | | | | | |
Comparable Adjusted FFO attributable to common stockholders per diluted share | $ | 0.26 | | $ | 0.25 | | $ | 0.34 | | $ | 0.13 | | $ | 0.98 |
| | | | | | | | | | | | | | |
Basic weighted average shares outstanding | | 209,097 | | | 211,010 | | | 213,183 | | | 217,271 | | | 212,613 |
Shares associated with unvested restricted stock awards | | 449 | | | 594 | | | 354 | | | 305 | | | 358 |
Diluted weighted average shares outstanding | | 209,546 | | | 211,604 | | | 213,537 | | | 217,576 | | | 212,971 |
Equity transactions (3) | | (4,893) | | | (6,806) | | | (8,996) | | | (13,332) | | | (8,479) |
Comparable diluted weighted average shares outstanding | | 204,653 | | | 204,798 | | | 204,541 | | | 204,244 | | | 204,492 |
*Footnotes on page 16
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COMPARABLE CORPORATE FINANCIAL INFORMATION | | Page 15 | ||||||
| | |
Supplemental Financial Information |
Comparable Reconciliation of Net Income to EBITDAre, Adjusted EBITDAre,
FFO and Adjusted FFO Attributable to Common Stockholders
Q4 2022 – Q1 2022, FY 2022 Footnotes
(1) | Sold hotel Adjusted EBITDAre and Adjusted FFO include results for the Hyatt Centric Chicago Magnificent Mile sold in February 2022, along with the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022. |
(2) | Acquisition hotel Adjusted EBITDAre and Adjusted FFO include prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022, along with the elimination of noncontrolling interest due to the Company's acquisition of the outside 25% ownership interest in the joint venture that owned the Hilton San Diego Bayfront in June 2022. |
(3) | Equity transactions represent repurchases totaling 3,879,025, 3,235,958, 880,577 and 2,249,764 shares of common stock in the first, second, third and fourth quarters of 2022, respectively, along with the repurchases of 1,964,923, 301,461 and 1,561,375 shares of common stock in the first, second and third quarters of 2023, respectively. |
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COMPARABLE CORPORATE FINANCIAL INFORMATION | | Page 16 | ||||||
| | |
Supplemental Financial Information |
Comparable Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre
Q4 2019 – Q1 2019, FY 2019
| | | | | | | | | | | | | | |
| Quarter Ended | | Year Ended | |||||||||||
| December 31, | | September 30, | | June 30, | | March 31, | | December 31, | |||||
(In thousands) | 2019 | | 2019 | | 2019 | | 2019 | | 2019 | |||||
| | | | | | | | | | | | | | |
Net income | $ | 45,414 | | $ | 33,545 | | $ | 45,918 | | $ | 17,916 | | $ | 142,793 |
Operations held for investment: | | | | | | | | | | | | | | |
Depreciation and amortization | | 37,264 | | | 37,573 | | | 36,524 | | | 36,387 | | | 147,748 |
Interest expense | | 10,822 | | | 13,259 | | | 15,816 | | | 14,326 | | | 54,223 |
Income tax provision (benefit), net | | 1,034 | | | (749) | | | 2,676 | | | (3,112) | | | (151) |
Gain on sale of assets | | (42,935) | | | — | | | — | | | — | | | (42,935) |
Impairment loss | | 24,713 | | | — | | | — | | | — | | | 24,713 |
EBITDAre | | 76,312 | | | 83,628 | | | 100,934 | | | 65,517 | | | 326,391 |
| | | | | | | | | | | | | | |
Operations held for investment: | | | | | | | | | | | | | | |
Amortization of deferred stock compensation | | 2,145 | | | 2,146 | | | 2,900 | | | 2,122 | | | 9,313 |
Amortization of right-of-use assets and obligations | | (259) | | | (253) | | | (251) | | | (19) | | | (782) |
Finance lease obligation interest - cash ground rent | | (407) | | | (589) | | | (590) | | | (589) | | | (2,175) |
Prior year property tax adjustments, net | | (121) | | | (9) | | | 109 | | | 189 | | | 168 |
Prior owner contingency funding | | — | | | — | | | (900) | | | — | | | (900) |
Noncontrolling interest: | | | | | | | | | | | | | | |
Income from consolidated joint venture attributable to noncontrolling interest | | (998) | | | (2,508) | | | (1,955) | | | (1,599) | | | (7,060) |
Depreciation and amortization | | (803) | | | (793) | | | (640) | | | (639) | | | (2,875) |
Interest expense | | (476) | | | (532) | | | (558) | | | (560) | | | (2,126) |
Amortization of right-of-use asset and obligation | | 73 | | | 72 | | | 73 | | | 72 | | | 290 |
Adjustments to EBITDAre, net | | (846) | | | (2,466) | | | (1,812) | | | (1,023) | | | (6,147) |
| | | | | | | | | | | | | | |
Adjusted EBITDAre, excluding noncontrolling interest | | 75,466 | | | 81,162 | | | 99,122 | | | 64,494 | | | 320,244 |
Sold/Disposed hotel Adjusted EBITDAre (1) | | (15,066) | | | (17,992) | | | (21,581) | | | (3,428) | | | (58,067) |
Acquisition hotel Adjusted EBITDAre (2) | | 4,253 | | | 3,766 | | | 5,111 | | | 6,701 | | | 19,831 |
| | | | | | | | | | | | | | |
Comparable Adjusted EBITDAre | $ | 64,653 | | $ | 66,936 | | $ | 82,652 | | $ | 67,767 | | $ | 282,008 |
*Footnotes on Page 18
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COMPARABLE CORPORATE FINANCIAL INFORMATION | | Page 17 | ||||||
| | |
Supplemental Financial Information |
Comparable Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre
Q4 2019 – Q1 2019, FY 2019 Footnotes
(1) | Sold/Disposed hotel Adjusted EBITDAre includes results for the Courtyard by Marriott Los Angeles, the Renaissance Harborplace, the Renaissance Los Angeles Airport, the Renaissance Westchester, the Embassy Suites La Jolla and the Hyatt Centric Chicago Magnificent Mile sold in October 2019, July 2020, December 2020, October 2021, December 2021 and February 2022, respectively, along with the Embassy Suites Chicago and Hilton Garden Inn Chicago Downtown/Magnificent Mile sold in March 2022. In addition, includes results for the Hilton Times Square due to the assignment-in-lieu agreement executed in December 2020 between the Company and the hotel's mortgage holder, which transferred the Company's leasehold interest in the hotel to the mortgage holder. |
(2) | Acquisition hotel Adjusted EBITDAre includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022, along with the elimination of noncontrolling interest due to the Company's acquisition of the outside 25% ownership interest in the joint venture that owned the Hilton San Diego Bayfront in June 2022. |
| ||||||||
COMPARABLE CORPORATE FINANCIAL INFORMATION | | Page 18 | ||||||
| | |
| |
Supplemental Financial Information |
| ||||||||
CAPITALIZATION | | Page 19 | ||||||
| | |
Supplemental Financial Information |
Comparative Capitalization
Q3 2023 – Q3 2022
| | | | | | | | | | | | | | | | |
| | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | | |||||
(In thousands, except per share data) |
| 2023 |
| 2023 |
| 2023 |
| 2022 |
| 2022 | | |||||
| | | | | | | | | | | | | | | | |
Common Share Price & Dividends | | | | | | | | | | | | | | | | |
At the end of the quarter | | $ | 9.35 | | $ | 10.12 | | $ | 9.88 | | $ | 9.66 | | $ | 9.42 | |
High during quarter ended | | $ | 10.50 | | $ | 10.79 | | $ | 11.26 | | $ | 11.19 | | $ | 12.22 | |
Low during quarter ended | | $ | 8.67 | | $ | 9.39 | | $ | 8.87 | | $ | 9.42 | | $ | 9.42 | |
Common dividends per share | | $ | 0.07 | | $ | 0.05 | | $ | 0.05 | | $ | 0.05 | | $ | 0.05 | |
| | | | | | | | | | | | | | | | |
Common Shares & Units | | | | | | | | | | | | | | | | |
Common shares outstanding | | | 205,623 | | | 207,185 | | | 207,410 | | | 209,320 | | | 211,570 | |
Units outstanding | | | — | | | — | | | — | | | — | | | — | |
Total common shares and units outstanding | | | 205,623 | | | 207,185 | | | 207,410 | | | 209,320 | | | 211,570 | |
| | | | | | | | | | | | | | | | |
Capitalization | | | | | | | | | | | | | | | | |
Market value of common equity | | $ | 1,922,578 | | $ | 2,096,709 | | $ | 2,049,211 | | $ | 2,022,036 | | $ | 1,992,991 | |
Liquidation value of preferred equity - Series G | | | 66,250 | | | 66,250 | | | 66,250 | | | 66,250 | | | 66,250 | |
Liquidation value of preferred equity - Series H | | | 115,000 | | | 115,000 | | | 115,000 | | | 115,000 | | | 115,000 | |
Liquidation value of preferred equity - Series I | | | 100,000 | | | 100,000 | | | 100,000 | | | 100,000 | | | 100,000 | |
Total debt | | | 819,582 | | | 820,100 | | | 815,612 | | | 816,136 | | | 816,647 | |
Total capitalization | | $ | 3,023,410 | | $ | 3,198,059 | | $ | 3,146,073 | | $ | 3,119,422 | | $ | 3,090,888 | |
| | | | | | | | | | | | | | | | |
Total debt to total capitalization | | | 27.1 | % | | 25.6 | % | | 25.9 | % | | 26.2 | % | | 26.4 | % |
Total debt and preferred equity to total capitalization | | | 36.4 | % | | 34.4 | % | | 34.9 | % | | 35.2 | % | | 35.5 | % |
| ||||||||
CAPITALIZATION | | Page 20 | ||||||
| | |
Supplemental Financial Information |
| | | | | | | | | | | |
(In thousands) | | | | Interest Rate / | | Maturity | | | September 30, 2023 | | |
Debt |
| Collateral |
| Spread |
| Date (1) |
| | Balance | | |
| | | | | | | | | | | |
Secured Mortgage Debt | | JW Marriott New Orleans | | 4.15% | | 12/11/2024 | | $ | 74,582 | | |
Series A Senior Notes | | Unsecured | | 4.69% | | 01/10/2026 | | | 65,000 | | |
Term Loan 3 (2) | | Unsecured | | 6.78% | | 05/01/2026 | | | 225,000 | | |
Term Loan 1 (3) | | Unsecured | | 5.25% | | 07/25/2027 | | | 175,000 | | |
Revolving Line of Credit | | Unsecured | | Adj. SOFR + 1.40% | | 07/25/2027 | | | — | | |
Series B Senior Notes | | Unsecured | | 4.79% | | 01/10/2028 | | | 105,000 | | |
Term Loan 2 (3) | | Unsecured | | 6.76% | | 01/25/2028 | | | 175,000 | | |
| | | | | | | | | | | |
Total Debt | | | | | | | | $ | 819,582 | | |
| | | | | | | | | | | |
Preferred Stock | | | | | | | | | | | |
Series G cumulative redeemable preferred (4) | | | | 1.878% | | perpetual | | $ | 66,250 | | |
Series H cumulative redeemable preferred | | | | 6.125% | | perpetual | | | 115,000 | | |
Series I cumulative redeemable preferred | | | | 5.70% | | perpetual | | | 100,000 | | |
Total Preferred Stock | | | | | | | | $ | 281,250 | | |
| | | | | | | | | | | |
Debt and Preferred Statistics | |||||||||||
| | | | | | | Debt Statistics | | Debt and Preferred Statistics | ||
% Fixed Rate Debt | | | | | | 51.2 | % | | 63.7 | % | |
% Floating Rate Debt | | | | | | 48.8 | % | | 36.3 | % | |
Average Interest Rate | | | | | | 5.79 | % | | 5.58 | % | |
Weighted Average Maturity of Debt | | | | | | 3.3 years | | | N/A | |
(1) | Maturity Date assumes the exercise of all available extensions for the Revolving Line of Credit and Term Loan 3. By extending these loans, the Company's weighted average maturity of debt increases from 3.0 years to 3.3 years. |
(2) | In May 2023, the Company entered into a new $225.0 million term loan agreement ("Term Loan 3"). Interest rates on Term Loan 3 are calculated on a leverage-based pricing grid ranging from 135 to 220 basis points over the applicable adjusted term SOFR. Term Loan 3 has an initial term of two years with one 12-month extension, which would result in an extended maturity of May 2026. |
(3) | Pursuant to the Second Amended Credit Agreement, interest rates on Term Loan 1 and Term Loan 2 are calculated on a leverage-based pricing grid ranging from 135 to 220 basis points over the applicable adjusted term SOFR. In May 2023, the pricing grid was reduced by 0.02% to a range of 133 to 218 basis points as the Company achieved the 2022 sustainability performance metric specified in the Second Amended Credit Agreement. The reduction in the pricing grid will be evaluated annually and is subject to the Company's continued ability to satisfy its sustainability metric. The interest rate for Term Loan 1 includes the effects of the Company's interest rate derivative swaps. |
(4) | The Series G cumulative redeemable preferred stock has an initial dividend rate equal to the Montage Healdsburg's annual net operating income yield on the Company's investment in the resort. Year to date through the date of this release, the Company declared cash dividends of $0.469437 per share, which equates to an annual yield of 1.878%. The annual dividend rate may increase in 2024 to the greater of 3.0% or the rate equal to the Montage Healdsburg's annual net operating income yield on the Company's total investment in the resort. |
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CAPITALIZATION | | Page 21 | ||||||
| | |
Supplemental Financial Information |
PROPERTY-LEVEL DATA AND OPERATING STATISTICS
| ||||||||
PROPERTY-LEVEL DATA AND OPERATING STATISTICS | | Page 22 | ||||||
| | |
Supplemental Financial Information |
Hotel Information as of November 7, 2023
| | | | | | | | | | | | | | |
Hotel |
| Location |
| Brand |
| Number of |
| % of Total |
| Interest |
| Year Acquired | ||
| | | | | | | | | | | | | | |
1 |
| Hilton San Diego Bayfront (1) (2) | | California | | Hilton | | 1,190 | | 18% | | Leasehold | | 2011 / 2022 |
2 | | Hyatt Regency San Francisco | | California | | Hyatt | | 821 | | 12% | | Fee Simple | | 2013 |
3 | | The Westin Washington, DC Downtown | | Washington DC | | Marriott | | 807 | | 12% | | Fee Simple | | 2005 |
4 | | Renaissance Orlando at SeaWorld® | | Florida | | Marriott | | 781 | | 12% | | Fee Simple | | 2005 |
5 | | Wailea Beach Resort | | Hawaii | | Marriott | | 547 | | 8% | | Fee Simple | | 2014 |
6 | | JW Marriott New Orleans (3) | | Louisiana | | Marriott | | 501 | | 8% | | Fee Simple | | 2011 |
7 | | Marriott Boston Long Wharf | | Massachusetts | | Marriott | | 415 | | 6% | | Fee Simple | | 2007 |
8 | | Renaissance Long Beach | | California | | Marriott | | 374 | | 6% | | Fee Simple | | 2005 |
9 | | The Confidante Miami Beach | | Florida | | Hyatt | | 339 | | 5% | | Fee Simple | | 2022 |
10 | | The Bidwell Marriott Portland | | Oregon | | Marriott | | 258 | | 4% | | Fee Simple | | 2000 |
11 | | Hilton New Orleans St. Charles | | Louisiana | | Hilton | | 252 | | 4% | | Fee Simple | | 2013 |
12 | | Oceans Edge Resort & Marina | | Florida | | Independent | | 175 | | 3% | | Fee Simple | | 2017 |
13 | | Montage Healdsburg | | California | | Montage | | 130 | | 2% | | Fee Simple | | 2021 |
14 | | Four Seasons Resort Napa Valley (4) | | California | | Four Seasons | | 85 | | 1% | | Fee Simple | | 2021 |
| | | | | | | | | | | | | | |
| | Total Portfolio | | | | | | 6,675 | | 100% | | | | |
(1) | In June 2022, the Company acquired the 25.0% noncontrolling partner's ownership interest in the Hilton San Diego Bayfront. Following this acquisition, the Company owns 100% of the hotel. |
(2) | The ground lease at the Hilton San Diego Bayfront matures in 2071. |
(3) | Hotel is subject to a municipal airspace lease that matures in 2044 and applies only to certain balcony space that is not integral to the hotel’s operations. |
(4) | The number of rooms at the Four Seasons Resort Napa Valley excludes rooms provided by owners of the separately owned Four Seasons Private Residences Napa Valley who may periodically elect to participate in the residential rental program. |
| ||||||||
PROPERTY-LEVEL DATA AND OPERATING STATISTICS | | Page 23 | ||||||
| | |
Supplemental Financial Information |
Property-Level Operating Statistics
ADR, Occupancy and RevPAR
Q3 2023/2022/2019
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | ADR | | Occupancy | | | RevPAR | ||||||||||||||||||||||||
Hotels sorted by number of rooms | | For the Quarter Ended September 30, | | For the Quarter Ended September 30, | | For the Quarter Ended September 30, | |||||||||||||||||||||||||
|
| 2023 | |
| 2022 | | | 2019 |
| 2023 vs. |
| 2023 |
| 2022 | | 2019 |
| 2023 vs. |
| 2023 |
| 2022 | | | 2019 |
| 2023 vs. | ||||
Hilton San Diego Bayfront (1) | | $ | 285.02 | | $ | 286.56 | | $ | 262.84 | | (0.5)% | | 86.8% | | 87.9% | | 89.1% | | (110) | bps | | $ | 247.40 | | $ | 251.89 | | $ | 234.19 | | (1.8)% |
Boston Park Plaza | | $ | 259.25 | | $ | 238.87 | | $ | 239.18 | | 8.5% | | 95.1% | | 90.1% | | 96.3% | | 500 | bps | | $ | 246.55 | | $ | 215.22 | | $ | 230.33 | | 14.6% |
Hyatt Regency San Francisco (1) | | $ | 288.54 | | $ | 281.26 | | $ | 308.12 | | 2.6% | | 72.8% | | 62.4% | | 92.4% | | 1,040 | bps | | $ | 210.06 | | $ | 175.51 | | $ | 284.70 | | 19.7% |
The Westin Washington, DC Downtown (1) | | $ | 237.45 | | $ | 211.46 | | $ | 198.93 | | 12.3% | | 57.3% | | 47.9% | | 79.0% | | 940 | bps | | $ | 136.06 | | $ | 101.29 | | $ | 157.15 | | 34.3% |
Renaissance Orlando at SeaWorld® | | $ | 162.67 | | $ | 158.60 | | $ | 128.70 | | 2.6% | | 59.5% | | 69.5% | | 68.6% | | (1,000) | bps | | $ | 96.79 | | $ | 110.23 | | $ | 88.29 | | (12.2)% |
Wailea Beach Resort | | $ | 643.33 | | $ | 721.50 | | $ | 465.12 | | (10.8)% | | 75.1% | | 82.3% | | 88.8% | | (720) | bps | | $ | 483.14 | | $ | 593.79 | | $ | 413.03 | | (18.6)% |
JW Marriott New Orleans | | $ | 191.33 | | $ | 194.83 | | $ | 174.99 | | (1.8)% | | 63.8% | | 56.9% | | 78.3% | | 690 | bps | | $ | 122.07 | | $ | 110.86 | | $ | 137.02 | | 10.1% |
Marriott Boston Long Wharf | | $ | 422.30 | | $ | 412.47 | | $ | 380.36 | | 2.4% | | 84.4% | | 85.0% | | 94.0% | | (60) | bps | | $ | 356.42 | | $ | 350.60 | | $ | 357.54 | | 1.7% |
Renaissance Long Beach | | $ | 209.54 | | $ | 209.71 | | $ | 183.73 | | (0.1)% | | 82.8% | | 74.1% | | 83.8% | | 870 | bps | | $ | 173.50 | | $ | 155.40 | | $ | 153.97 | | 11.6% |
The Confidante Miami Beach (1) | | $ | 194.49 | | $ | 222.54 | | $ | 143.14 | | (12.6)% | | 43.1% | | 62.8% | | 71.0% | | (1,970) | bps | | $ | 83.83 | | $ | 139.76 | | $ | 101.63 | | (40.0)% |
The Bidwell Marriott Portland | | $ | 174.74 | | $ | 187.22 | | $ | 210.27 | | (6.7)% | | 58.4% | | 55.5% | | 88.3% | | 290 | bps | | $ | 102.05 | | $ | 103.91 | | $ | 185.67 | | (1.8)% |
Hilton New Orleans St. Charles | | $ | 136.08 | | $ | 150.49 | | $ | 139.90 | | (9.6)% | | 49.7% | | 55.6% | | 68.8% | | (590) | bps | | $ | 67.63 | | $ | 83.67 | | $ | 96.25 | | (19.2)% |
Oceans Edge Resort & Marina (1) | | $ | 265.08 | | $ | 350.96 | | $ | 180.60 | | (24.5)% | | 72.8% | | 65.3% | | 83.5% | | 750 | bps | | $ | 192.98 | | $ | 229.18 | | $ | 150.80 | | (15.8)% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
13 Hotel Portfolio (2) | | $ | 282.89 | | $ | 287.75 | | $ | 248.22 | | (1.7)% | | 73.2% | | 72.0% | | 84.8% | | 120 | bps | | $ | 207.08 | | $ | 207.18 | | $ | 210.49 | | 0.0% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Montage Healdsburg | | $ | 1,089.08 | | $ | 1,267.66 | | | N/A | | (14.1)% | | 56.8% | | 53.6% | | N/A | | 320 | bps | | $ | 618.60 | | $ | 679.47 | | | N/A | | (9.0)% |
Four Seasons Resort Napa Valley | | $ | 1,498.33 | | $ | 1,976.80 | | | N/A | | (24.2)% | | 59.7% | | 41.4% | | N/A | | 1,830 | bps | | $ | 894.50 | | $ | 818.40 | | | N/A | | 9.3% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
15 Hotel Portfolio (3) | | $ | 305.69 | | $ | 311.62 | | | N/A | | (1.9)% | | 72.8% | | 71.4% | | N/A | | 140 | bps | | $ | 222.54 | | $ | 222.50 | | | N/A | | 0.0% |
*Footnotes on page 27
| ||||||||
PROPERTY-LEVEL DATA AND OPERATING STATISTICS | | Page 24 | ||||||
| | |
Supplemental Financial Information |
Property-Level Operating Statistics
ADR, Occupancy and RevPAR
Q3 YTD 2023/2022/2019
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | ADR | | Occupancy | | | RevPAR | ||||||||||||||||||||||||
Hotels sorted by number of rooms | | For the Nine Months Ended September 30, | | For the Nine Months Ended September 30, | | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
|
| 2023 | |
| 2022 | | | 2019 |
| 2023 vs. |
| 2023 |
| 2022 | | 2019 |
| 2023 vs. |
| 2023 |
| 2022 | | | 2019 |
| 2023 vs. | ||||
Hilton San Diego Bayfront (1) | | $ | 282.39 | | $ | 274.76 | | $ | 257.32 | | 2.8% | | 85.1% | | 76.8% | | 81.1% | | 830 | bps | | $ | 240.31 | | $ | 211.02 | | $ | 208.69 | | 13.9% |
Boston Park Plaza | | $ | 241.79 | | $ | 222.50 | | $ | 217.24 | | 8.7% | | 83.9% | | 74.4% | | 91.4% | | 950 | bps | | $ | 202.86 | | $ | 165.54 | | $ | 198.56 | | 22.5% |
Hyatt Regency San Francisco (1) | | $ | 300.37 | | $ | 262.03 | | $ | 322.89 | | 14.6% | | 70.6% | | 55.3% | | 89.2% | | 1,530 | bps | | $ | 212.06 | | $ | 144.90 | | $ | 288.02 | | 46.3% |
The Westin Washington, DC Downtown (1) | | $ | 259.97 | | $ | 242.60 | | $ | 230.93 | | 7.2% | | 56.1% | | 51.6% | | 79.7% | | 450 | bps | | $ | 145.84 | | $ | 125.18 | | $ | 184.05 | | 16.5% |
Renaissance Orlando at SeaWorld® | | $ | 195.69 | | $ | 183.62 | | $ | 165.99 | | 6.6% | | 73.8% | | 68.0% | | 78.1% | | 580 | bps | | $ | 144.42 | | $ | 124.86 | | $ | 129.64 | | 15.7% |
Wailea Beach Resort | | $ | 688.44 | | $ | 684.67 | | $ | 469.49 | | 0.6% | | 76.6% | | 81.3% | | 91.7% | | (470) | bps | | $ | 527.35 | | $ | 556.64 | | $ | 430.52 | | (5.3)% |
JW Marriott New Orleans | | $ | 239.90 | | $ | 232.10 | | $ | 205.67 | | 3.4% | | 70.7% | | 59.2% | | 84.4% | | 1,150 | bps | | $ | 169.61 | | $ | 137.40 | | $ | 173.59 | | 23.4% |
Marriott Boston Long Wharf | | $ | 381.16 | | $ | 381.40 | | $ | 337.94 | | (0.1)% | | 74.5% | | 65.8% | | 87.5% | | 870 | bps | | $ | 283.96 | | $ | 250.96 | | $ | 295.70 | | 13.1% |
Renaissance Long Beach | | $ | 225.33 | | $ | 209.25 | | $ | 193.19 | | 7.7% | | 78.8% | | 74.8% | | 82.9% | | 400 | bps | | $ | 177.56 | | $ | 156.52 | | $ | 160.15 | | 13.4% |
The Confidante Miami Beach (1) | | $ | 292.60 | | $ | 309.49 | | $ | 199.68 | | (5.5)% | | 63.3% | | 72.7% | | 80.1% | | (940) | bps | | $ | 185.22 | | $ | 225.00 | | $ | 159.94 | | (17.7)% |
The Bidwell Marriott Portland | | $ | 172.92 | | $ | 171.19 | | $ | 190.04 | | 1.0% | | 56.7% | | 49.1% | | 85.2% | | 760 | bps | | $ | 98.05 | | $ | 84.05 | | $ | 161.91 | | 16.7% |
Hilton New Orleans St. Charles | | $ | 181.50 | | $ | 179.95 | | $ | 168.21 | | 0.9% | | 67.2% | | 56.0% | | 76.6% | | 1,120 | bps | | $ | 121.97 | | $ | 100.77 | | $ | 128.85 | | 21.0% |
Oceans Edge Resort & Marina (1) | | $ | 367.83 | | $ | 451.74 | | $ | 244.81 | | (18.6)% | | 76.6% | | 76.4% | | 90.2% | | 20 | bps | | $ | 281.76 | | $ | 345.13 | | $ | 220.82 | | (18.4)% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
13 Hotel Portfolio (2) | | $ | 293.86 | | $ | 290.10 | | $ | 254.13 | | 1.3% | | 73.8% | | 67.1% | | 84.6% | | 670 | bps | | $ | 216.87 | | $ | 194.66 | | $ | 214.99 | | 11.4% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Montage Healdsburg | | $ | 1,071.48 | | $ | 1,096.14 | | | N/A | | (2.2)% | | 54.0% | | 57.0% | | N/A | | (300) | bps | | $ | 578.60 | | $ | 624.80 | | | N/A | | (7.4)% |
Four Seasons Resort Napa Valley | | $ | 1,521.24 | | $ | 1,757.55 | | | N/A | | (13.4)% | | 46.7% | | 45.1% | | N/A | | 160 | bps | | $ | 710.42 | | $ | 792.66 | | | N/A | | (10.4)% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
15 Hotel Portfolio (3) | | $ | 313.08 | | $ | 313.10 | | | N/A | | 0.0% | | 73.2% | | 66.7% | | N/A | | 650 | bps | | $ | 229.17 | | $ | 208.84 | | | N/A | | 9.7% |
*Footnotes on page 27
| ||||||||
PROPERTY-LEVEL DATA AND OPERATING STATISTICS | | Page 25 | ||||||
| | |
Supplemental Financial Information |
Property-Level Operating Statistics
Total RevPAR (TRevPAR)
Q3 and YTD 2023/2022/2019
| | | | | | | | | | | | | | | | | | | | | | |
Hotels sorted by number of rooms | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | ||||||||||||||||||
|
| 2023 | | 2022 | |
| 2019 |
| 2023 vs. 2022 |
| 2023 | | 2022 |
| 2019 |
| 2023 vs. 2022 | |||||
Hilton San Diego Bayfront (1) | | $ | 447.35 | | $ | 435.88 | | $ | 394.00 | | 2.6% | | $ | 438.14 | | $ | 366.79 | | $ | 364.67 | | 19.5% |
Boston Park Plaza | | $ | 348.85 | | $ | 297.27 | | $ | 309.64 | | 17.4% | | $ | 295.74 | | $ | 234.58 | | $ | 275.05 | | 26.1% |
Hyatt Regency San Francisco (1) | | $ | 281.86 | | $ | 245.90 | | $ | 377.78 | | 14.6% | | $ | 300.65 | | $ | 212.29 | | $ | 407.67 | | 41.6% |
The Westin Washington, DC Downtown (1) | | $ | 209.61 | | $ | 166.29 | | $ | 254.73 | | 26.1% | | $ | 216.02 | | $ | 192.75 | | $ | 292.43 | | 12.1% |
Renaissance Orlando at SeaWorld® | | $ | 218.47 | | $ | 251.12 | | $ | 207.76 | | (13.0)% | | $ | 322.76 | | $ | 279.21 | | $ | 293.54 | | 15.6% |
Wailea Beach Resort | | $ | 672.95 | | $ | 854.83 | | $ | 594.74 | | (21.3)% | | $ | 768.37 | | $ | 816.98 | | $ | 614.80 | | (5.9)% |
JW Marriott New Orleans | | $ | 167.56 | | $ | 147.50 | | $ | 176.68 | | 13.6% | | $ | 232.28 | | $ | 174.71 | | $ | 228.09 | | 33.0% |
Marriott Boston Long Wharf | | $ | 488.13 | | $ | 477.65 | | $ | 478.49 | | 2.2% | | $ | 395.97 | | $ | 346.11 | | $ | 411.89 | | 14.4% |
Renaissance Long Beach | | $ | 227.11 | | $ | 194.45 | | $ | 210.53 | | 16.8% | | $ | 232.00 | | $ | 201.03 | | $ | 221.18 | | 15.4% |
The Confidante Miami Beach (1) | | $ | 150.65 | | $ | 241.78 | | $ | 189.96 | | (37.7)% | | $ | 302.38 | | $ | 357.01 | | $ | 282.64 | | (15.3)% |
The Bidwell Marriott Portland | | $ | 143.04 | | $ | 140.22 | | $ | 212.05 | | 2.0% | | $ | 136.40 | | $ | 113.84 | | $ | 186.06 | | 19.8% |
Hilton New Orleans St. Charles | | $ | 82.30 | | $ | 99.10 | | $ | 111.71 | | (17.0)% | | $ | 149.44 | | $ | 131.01 | | $ | 146.35 | | 14.1% |
Oceans Edge Resort & Marina (1) | | $ | 345.39 | | $ | 371.84 | | $ | 256.39 | | (7.1)% | | $ | 447.13 | | $ | 510.27 | | $ | 343.32 | | (12.4)% |
| | | | | | | | | | | | | | | | | | | | | | |
13 Hotel Portfolio (2) | | $ | 316.76 | | $ | 317.37 | | $ | 313.35 | | (0.2)% | | $ | 339.03 | | $ | 300.40 | | $ | 328.42 | | 12.9% |
| | | | | | | | | | | | | | | | | | | | | | |
Montage Healdsburg | | $ | 1,135.83 | | $ | 1,143.87 | | | N/A | | (0.7)% | | $ | 1,051.09 | | $ | 1,100.20 | | | N/A | | (4.5)% |
Four Seasons Resort Napa Valley | | $ | 1,710.40 | | $ | 1,319.24 | | | N/A | | 29.7% | | $ | 1,309.98 | | $ | 1,296.27 | | | N/A | | 1.1% |
| | | | | | | | | | | | | | | | | | | | | | |
15 Hotel Portfolio (3) | | $ | 347.60 | | $ | 343.03 | | | N/A | | 1.3% | | $ | 362.86 | | $ | 325.29 | | | N/A | | 11.5% |
*Footnotes on page 27
| ||||||||
PROPERTY-LEVEL DATA AND OPERATING STATISTICS | | Page 26 | ||||||
| | |
Supplemental Financial Information |
Property-Level Operating Statistics
Q3 and YTD 2023/2022/2019 Footnotes
(1) | Operating statistics for the third quarter and first nine months of 2023 are impacted by renovation activity at The Confidante Miami Beach. Operating statistics for the third quarter and first nine months of 2023 and 2022 are impacted by renovation activity at The Westin Washington, DC Downtown. Operating statistics for the third quarter and first nine months of 2022 are also impacted by renovation activity at the Hyatt Regency San Francisco. Operating statistics for the third quarter and first nine months of 2019 are impacted by renovation activity at the Hilton San Diego Bayfront, the Hyatt Regency San Francisco and the Oceans Edge Resort & Marina. |
(2) | The 13 Hotel Portfolio consists of the 15 Hotel Portfolio (defined below), excluding the Montage Healdsburg and the Four Seasons Resort Napa Valley, which were acquired in April 2021 and December 2021, respectively. Both the Montage Healdsburg and the Four Seasons Resort Napa Valley were newly-developed hotels that were not open in 2019. The 13 Hotel Portfolio presented for the third quarter of 2019 and the first nine months of 2022 and 2019 includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022. The Company obtained prior ownership information from the prior owner of The Confidante Miami Beach during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition. |
(3) | The 15 Hotel Portfolio consists of all hotels owned by the Company as of September 30, 2023. The 15 Hotel Portfolio presented for the first nine months of 2022 includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022. |
| ||||||||
PROPERTY-LEVEL DATA AND OPERATING STATISTICS | | Page 27 | ||||||
| | |
Supplemental Financial Information |
PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre &
ADJUSTED EBITDAre MARGINS
| ||||||||
PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | | Page 28 | ||||||
| | |
Supplemental Financial Information |
Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins
Q3 2023/2022
| | | | | | | | | | | | | | | | | | | |
Hotels sorted by number of rooms | | For the Three Months Ended September 30, | |||||||||||||||||
| | 2023 | | 2022 | | | | ||||||||||||
(In thousands) | | | | | | Hotel Adjusted | | | | | | Hotel Adjusted | | Hotel Adjusted | |||||
| | Total | | Hotel Adjusted | | EBITDAre | | Total | | Hotel Adjusted | | EBITDAre | | EBITDAre | |||||
|
| Revenues |
| EBITDAre |
| Margins |
| Revenues |
| EBITDAre |
| Margins |
| Margin Change | |||||
Hilton San Diego Bayfront | | $ | 48,975 | | $ | 16,101 | | 32.9% | | $ | 47,720 | | $ | 17,244 | | 36.1% | | (320) | bps |
Boston Park Plaza | | | 34,020 | | | 12,926 | | 38.0% | | | 28,989 | | | 9,086 | | 31.3% | | 670 | bps |
Hyatt Regency San Francisco (1) | | | 21,289 | | | 2,060 | | 9.7% | | | 18,574 | | | 1,657 | | 8.9% | | 80 | bps |
The Westin Washington, DC Downtown (1) | | | 15,563 | | | 1,813 | | 11.6% | | | 12,346 | | | 1,335 | | 10.8% | | 80 | bps |
Renaissance Orlando at SeaWorld® | | | 15,697 | | | 3,336 | | 21.3% | | | 18,043 | | | 4,685 | | 26.0% | | (470) | bps |
Wailea Beach Resort | | | 33,866 | | | 12,513 | | 36.9% | | | 43,019 | | | 17,860 | | 41.5% | | (460) | bps |
JW Marriott New Orleans | | | 7,724 | | | 1,759 | | 22.8% | | | 6,798 | | | 1,449 | | 21.3% | | 150 | bps |
Marriott Boston Long Wharf | | | 18,637 | | | 8,182 | | 43.9% | | | 18,237 | | | 8,236 | | 45.2% | | (130) | bps |
Renaissance Long Beach | | | 7,814 | | | 1,963 | | 25.1% | | | 6,691 | | | 1,815 | | 27.1% | | (200) | bps |
The Confidante Miami Beach (1) | | | 4,699 | | | (986) | | (21.0)% | | | 7,540 | | | 756 | | 10.0% | | (3,100) | bps |
The Bidwell Marriott Portland | | | 3,395 | | | 732 | | 21.6% | | | 3,328 | | | 792 | | 23.8% | | (220) | bps |
Hilton New Orleans St. Charles | | | 1,908 | | | 35 | | 1.8% | | | 2,298 | | | 343 | | 14.9% | | (1,310) | bps |
Oceans Edge Resort & Marina | | | 5,561 | | | 1,202 | | 21.6% | | | 5,986 | | | 1,571 | | 26.2% | | (460) | bps |
Montage Healdsburg | | | 13,584 | | | 2,259 | | 16.6% | | | 13,681 | | | 2,146 | | 15.7% | | 90 | bps |
Four Seasons Resort Napa Valley | | | 14,949 | | | 3,040 | | 20.3% | | | 11,045 | | | 447 | | 4.0% | | 1,630 | bps |
| | | | | | | | | | | | | | | | | | | |
15 Hotel Portfolio (2) | | | 247,681 | | | 66,935 | | 27.0% | | | 244,295 | | | 69,422 | | 28.4% | | (140) | bps |
| | | | | | | | | | | | | | | | | | | |
Actual Portfolio (3) | | $ | 247,681 | | $ | 66,935 | | 27.0% | | $ | 244,295 | | $ | 69,422 | | 28.4% | | (140) | bps |
*Footnotes on page 33
| ||||||||
PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | | Page 29 | ||||||
| | |
Supplemental Financial Information |
Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins
Q3 2023/2019
| | | | | | | | | | | | | | | | | | | |
Hotels sorted by number of rooms | | For the Three Months Ended September 30, | |||||||||||||||||
| | 2023 | | 2019 | | | | ||||||||||||
(In thousands) | | | | | | Hotel Adjusted | | | | | | Hotel Adjusted | | Hotel Adjusted | |||||
| | Total | | Hotel Adjusted | | EBITDAre | | Total | | Hotel Adjusted | | EBITDAre | | EBITDAre | |||||
|
| Revenues |
| EBITDAre |
| Margins |
| Revenues |
| EBITDAre |
| Margins |
| Margin Change | |||||
Hilton San Diego Bayfront (1) | | $ | 48,975 | | $ | 16,101 | | 32.9% | | $ | 43,134 | | $ | 15,020 | | 34.8% | | (190) | bps |
Boston Park Plaza | | | 34,020 | | | 12,926 | | 38.0% | | | 30,195 | | | 11,289 | | 37.4% | | 60 | bps |
Hyatt Regency San Francisco (1) | | | 21,289 | | | 2,060 | | 9.7% | | | 27,985 | | | 7,116 | | 25.4% | | (1,570) | bps |
The Westin Washington, DC Downtown (1) | | | 15,563 | | | 1,813 | | 11.6% | | | 18,912 | | | 4,136 | | 21.9% | | (1,030) | bps |
Renaissance Orlando at SeaWorld® | | | 15,697 | | | 3,336 | | 21.3% | | | 14,928 | | | 3,625 | | 24.3% | | (300) | bps |
Wailea Beach Resort | | | 33,866 | | | 12,513 | | 36.9% | | | 29,932 | | | 11,644 | | 38.9% | | (200) | bps |
JW Marriott New Orleans | | | 7,724 | | | 1,759 | | 22.8% | | | 8,143 | | | 2,465 | | 30.3% | | (750) | bps |
Marriott Boston Long Wharf | | | 18,637 | | | 8,182 | | 43.9% | | | 18,269 | | | 7,994 | | 43.8% | | 10 | bps |
Renaissance Long Beach | | | 7,814 | | | 1,963 | | 25.1% | | | 7,243 | | | 2,216 | | 30.6% | | (550) | bps |
The Confidante Miami Beach (1) | | | 4,699 | | | (986) | | (21.0)% | | | 6,187 | | | 5 | | 0.1% | | (2,110) | bps |
The Bidwell Marriott Portland | | | 3,395 | | | 732 | | 21.6% | | | 4,858 | | | 2,181 | | 44.9% | | (2,330) | bps |
Hilton New Orleans St. Charles | | | 1,908 | | | 35 | | 1.8% | | | 2,589 | | | 392 | | 15.1% | | (1,330) | bps |
Oceans Edge Resort & Marina (1) | | | 5,561 | | | 1,202 | | 21.6% | | | 4,128 | | | 695 | | 16.8% | | 480 | bps |
| | | | | | | | | | | | | | | | | | | |
13 Hotel Portfolio (4) | | | 219,148 | | | 61,636 | | 28.1% | | | 216,503 | | | 68,778 | | 31.8% | | (370) | bps |
| | | | | | | | | | | | | | | | | | | |
Montage Healdsburg | | | 13,584 | | | 2,259 | | 16.6% | | | N/A | | | N/A | | N/A | | N/A | |
Four Seasons Resort Napa Valley | | | 14,949 | | | 3,040 | | 20.3% | | | N/A | | | N/A | | N/A | | N/A | |
| | | | | | | | | | | | | | | | | | | |
15 Hotel Portfolio (2) | | | 247,681 | | | 66,935 | | 27.0% | | | 216,503 | | | 68,778 | | 31.8% | | N/A | |
| | | | | | | | | | | | | | | | | | | |
Less: Prior Ownership (5) | | | | | | | | | | | | | | | | | | | |
The Confidante Miami Beach | | | N/A | | | N/A | | N/A | | | (6,187) | | | (5) | | 0.1% | | N/A | |
| | | | | | | | | | | | | | | | | | | |
Add: Sold/Disposed Hotels (6) | | | N/A | | | N/A | | N/A | | | 71,301 | | | 17,992 | | 25.2% | | N/A | |
| | | | | | | | | | | | | | | | | | | |
Actual Portfolio (3) | | $ | 247,681 | | $ | 66,935 | | 27.0% | | $ | 281,617 | | $ | 86,765 | | 30.8% | | N/A | |
*Footnotes on page 33
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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | | Page 30 | ||||||
| | |
Supplemental Financial Information |
Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins
Q3 YTD 2023/2022
| | | | | | | | | | | | | | | | | | | |
Hotels sorted by number of rooms | | For the Nine Months Ended September 30, | |||||||||||||||||
| | 2023 | | 2022 | | | | ||||||||||||
(In thousands) | | | | | | Hotel Adjusted | | | | | | Hotel Adjusted | | Hotel Adjusted | |||||
| | Total | | Hotel Adjusted | | EBITDAre | | Total | | Hotel Adjusted | | EBITDAre | | EBITDAre | |||||
|
| Revenues |
| EBITDAre |
| Margins |
| Revenues |
| EBITDAre |
| Margins |
| Margin Change | |||||
Hilton San Diego Bayfront | | $ | 142,337 | | $ | 46,973 | | 33.0% | | $ | 119,160 | | $ | 40,225 | | 33.8% | | (80) | bps |
Boston Park Plaza | | | 85,582 | | | 26,604 | | 31.1% | | | 67,884 | | | 16,395 | | 24.2% | | 690 | bps |
Hyatt Regency San Francisco (1) | | | 67,385 | | | 10,483 | | 15.6% | | | 47,581 | | | 3,278 | | 6.9% | | 870 | bps |
The Westin Washington, DC Downtown (1) | | | 47,593 | | | 8,386 | | 17.6% | | | 42,465 | | | 8,763 | | 20.6% | | (300) | bps |
Renaissance Orlando at SeaWorld® | | | 68,817 | | | 22,757 | | 33.1% | | | 59,530 | | | 18,725 | | 31.5% | | 160 | bps |
Wailea Beach Resort | | | 114,742 | | | 43,969 | | 38.3% | | | 122,001 | | | 51,541 | | 42.2% | | (390) | bps |
JW Marriott New Orleans | | | 31,770 | | | 12,504 | | 39.4% | | | 23,895 | | | 8,081 | | 33.8% | | 560 | bps |
Marriott Boston Long Wharf | | | 44,861 | | | 16,136 | | 36.0% | | | 39,212 | | | 14,159 | | 36.1% | | (10) | bps |
Renaissance Long Beach | | | 23,687 | | | 6,960 | | 29.4% | | | 20,526 | | | 6,393 | | 31.1% | | (170) | bps |
The Confidante Miami Beach (1) | | | 27,985 | | | 6,101 | | 21.8% | | | 33,040 | | | 9,947 | | 30.1% | | (830) | bps |
The Bidwell Marriott Portland | | | 9,607 | | | 1,776 | | 18.5% | | | 8,018 | | | 1,531 | | 19.1% | | (60) | bps |
Hilton New Orleans St. Charles | | | 10,281 | | | 3,537 | | 34.4% | | | 9,013 | | | 3,077 | | 34.1% | | 30 | bps |
Oceans Edge Resort & Marina | | | 21,362 | | | 7,969 | | 37.3% | | | 24,378 | | | 9,806 | | 40.2% | | (290) | bps |
Montage Healdsburg | | | 37,303 | | | 4,314 | | 11.6% | | | 39,046 | | | 4,647 | | 11.9% | | (30) | bps |
Four Seasons Resort Napa Valley | | | 33,888 | | | 3,012 | | 8.9% | | | 31,506 | | | 2,849 | | 9.0% | | (10) | bps |
| | | | | | | | | | | | | | | | | | | |
15 Hotel Portfolio (2) | | | 767,200 | | | 221,481 | | 28.9% | | | 687,255 | | | 199,417 | | 29.0% | | (10) | bps |
| | | | | | | | | | | | | | | | | | | |
Less: Prior Ownership (5) | | | | | | | | | | | | | | | | | | | |
The Confidante Miami Beach | | | N/A | | | N/A | | N/A | | | (22,637) | | | (8,630) | | 38.1% | | N/A | |
| | | | | | | | | | | | | | | | | | | |
Add: Sold Hotels (6) | | | N/A | | | N/A | | N/A | | | 3,234 | | | (2,172) | | (67.2)% | | N/A | |
| | | | | | | | | | | | | | | | | | | |
Actual Portfolio (3) | | $ | 767,200 | | $ | 221,481 | | 28.9% | | $ | 667,852 | | $ | 188,615 | | 28.2% | | N/A | |
*Footnotes on page 33
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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | | Page 31 | ||||||
| | |
Supplemental Financial Information |
Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins
Q3 YTD 2023/2019
| | | | | | | | | | | | | | | | | | | |
Hotels sorted by number of rooms | | For the Nine Months Ended September 30, | |||||||||||||||||
| | 2023 | | 2019 | | | | ||||||||||||
(In thousands) | | | | | | Hotel Adjusted | | | | | | Hotel Adjusted | | Hotel Adjusted | |||||
| | Total | | Hotel Adjusted | | EBITDAre | | Total | | Hotel Adjusted | | EBITDAre | | EBITDAre | |||||
|
| Revenues |
| EBITDAre |
| Margins |
| Revenues |
| EBITDAre |
| Margins |
| Margin Change | |||||
Hilton San Diego Bayfront (1) | | $ | 142,337 | | $ | 46,973 | | 33.0% | | $ | 118,470 | | $ | 38,209 | | 32.3% | | 70 | bps |
Boston Park Plaza | | | 85,582 | | | 26,604 | | 31.1% | | | 79,594 | | | 25,329 | | 31.8% | | (70) | bps |
Hyatt Regency San Francisco (1) | | | 67,385 | | | 10,483 | | 15.6% | | | 89,524 | | | 24,284 | | 27.1% | | (1,150) | bps |
The Westin Washington, DC Downtown (1) | | | 47,593 | | | 8,386 | | 17.6% | | | 64,426 | | | 18,291 | | 28.4% | | (1,080) | bps |
Renaissance Orlando at SeaWorld® | | | 68,817 | | | 22,757 | | 33.1% | | | 62,586 | | | 21,395 | | 34.2% | | (110) | bps |
Wailea Beach Resort | | | 114,742 | | | 43,969 | | 38.3% | | | 91,809 | | | 37,016 | | 40.3% | | (200) | bps |
JW Marriott New Orleans | | | 31,770 | | | 12,504 | | 39.4% | | | 31,197 | | | 12,983 | | 41.6% | | (220) | bps |
Marriott Boston Long Wharf | | | 44,861 | | | 16,136 | | 36.0% | | | 46,665 | | | 17,770 | | 38.1% | | (210) | bps |
Renaissance Long Beach | | | 23,687 | | | 6,960 | | 29.4% | | | 22,582 | | | 7,226 | | 32.0% | | (260) | bps |
The Confidante Miami Beach (1) | | | 27,985 | | | 6,101 | | 21.8% | | | 27,315 | | | 6,011 | | 22.0% | | (20) | bps |
The Bidwell Marriott Portland | | | 9,607 | | | 1,776 | | 18.5% | | | 12,648 | | | 5,109 | | 40.4% | | (2,190) | bps |
Hilton New Orleans St. Charles | | | 10,281 | | | 3,537 | | 34.4% | | | 10,068 | | | 2,734 | | 27.2% | | 720 | bps |
Oceans Edge Resort & Marina (1) | | | 21,362 | | | 7,969 | | 37.3% | | | 16,402 | | | 5,141 | | 31.3% | | 600 | bps |
| | | | | | | | | | | | | | | | | | | |
13 Hotel Portfolio (4) | | | 696,009 | | | 214,155 | | 30.8% | | | 673,286 | | | 221,498 | | 32.9% | | (210) | bps |
| | | | | | | | | | | | | | | | | | | |
Montage Healdsburg | | | 37,303 | | | 4,314 | | 11.6% | | | N/A | | | N/A | | N/A | | N/A | |
Four Seasons Resort Napa Valley | | | 33,888 | | | 3,012 | | 8.9% | | | N/A | | | N/A | | N/A | | N/A | |
| | | | | | | | | | | | | | | | | | | |
15 Hotel Portfolio (2) | | | 767,200 | | | 221,481 | | 28.9% | | | 673,286 | | | 221,498 | | 32.9% | | N/A | |
| | | | | | | | | | | | | | | | | | | |
Less: Prior Ownership (5) | | | | | | | | | | | | | | | | | | | |
The Confidante Miami Beach | | | N/A | | | N/A | | N/A | | | (27,315) | | | (6,011) | | 22.0% | | N/A | |
| | | | | | | | | | | | | | | | | | | |
Add: Sold/Disposed Hotels (6) | | | N/A | | | N/A | | N/A | | | 196,174 | | | 43,001 | | 21.9% | | N/A | |
| | | | | | | | | | | | | | | | | | | |
Actual Portfolio (3) | | $ | 767,200 | | $ | 221,481 | | 28.9% | | $ | 842,145 | | $ | 258,488 | | 30.7% | | N/A | |
*Footnotes on page 33
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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | | Page 32 | ||||||
| | |
Supplemental Financial Information |
Property-Level Revenues, Adjusted EBITDAre and Adjusted EBITDAre Margins
Q3 and YTD 2023/2022/2019 Footnotes
(1) | Hotel Adjusted EBITDAre for the third quarter and first nine months of 2023 is impacted by renovation activity at The Confidante Miami Beach. Hotel Adjusted EBITDAre for the third quarters and first nine months of 2023 and 2022 is impacted by renovation activity at The Westin Washington, DC Downtown. Hotel Adjusted EBITDAre for the third quarter and first nine months of 2022 is also impacted by renovation activity at the Hyatt Regency San Francisco. Hotel Adjusted EBITDAre for the third quarter and first nine months of 2019 is impacted by renovation activity at the Hilton San Diego Bayfront, the Hyatt Regency San Francisco and the Oceans Edge Resort & Marina. |
(2) | The 15 Hotel Portfolio consists of all hotels owned by the Company as of September 30, 2023. The 15 Hotel Portfolio presented for the third quarter of 2019 and the first nine months of 2022 and 2019 includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022. The Company obtained prior ownership information from the prior owner of The Confidante Miami Beach during the due diligence period before acquiring the hotel. The Company performed a limited review of the information as part of its analysis of the acquisition. |
(3) | Actual Portfolio includes results for the 15 hotels owned by the Company during the third quarter and first nine months of 2023, the 15 hotels and 18 hotels owned by the Company during the third quarter and first nine months of 2022, respectively, and the 21 hotels owned by the Company during the third quarter and first nine months of 2019. |
(4) | The 13 Hotel Portfolio consists of the 15 Hotel Portfolio, excluding the Montage Healdsburg and the Four Seasons Resort Napa Valley, which were acquired in April 2021 and December 2021, respectively. Both the Montage Healdsburg and the Four Seasons Resort Napa Valley were newly-developed hotels that were not open in 2019. The 13 Hotel Portfolio presented for the third quarter and first nine months of 2019 includes prior ownership results for The Confidante Miami Beach acquired by the Company in June 2022. |
(5) | Prior Ownership includes results for The Confidante Miami Beach prior to the Company’s acquisition of the hotel in June 2022. |
(6) | Sold Hotels for the first nine months of 2022 and the third quarter and first nine months of 2019 include results for the Hyatt Centric Chicago Magnificent Mile, sold in February 2022, and the Embassy Suites Chicago and Hilton Garden Inn Chicago Downtown/Magnificent Mile, sold in March 2022. Sold/Disposed Hotels for the third quarter and first nine months of 2019 also include results for the Embassy Suites La Jolla and the Renaissance Westchester, sold in December 2021 and October 2021, respectively, the Renaissance Los Angeles Airport sold in December 2020, the Hilton Times Square assigned to its mortgage holder in December 2020, the Renaissance Harborplace sold in July 2020, and the Courtyard by Marriott Los Angeles sold in October 2019. |
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PROPERTY-LEVEL REVENUES, ADJUSTED EBITDAre & ADJUSTED EBITDAre MARGINS | | Page 33 | ||||||
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