DiamondRock Hospitality Company Reports Second Quarter 2020 Results

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BETHESDA, Md., Aug. 6, 2020 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") DRH, a lodging-focused real estate investment trust that owns a portfolio of 31 premium hotels in the United States, today announced results of operations for the quarter ended June 30, 2020.

"As we expected, the second quarter was significantly impacted by the dramatic decline in travel demand caused by COVID-19.  I want to extend my gratitude to our team for continuing to execute on our action plan and identifying new and efficient ways to operate our hotels.  These actions resulted in mitigating our cash burn rate to beat our initial expectations.  Additionally, DiamondRock improved its already solid balance sheet by successfully closing on two key agreements with lenders to obtain financial covenant waivers on corporate debt and extend our only mortgage maturity in 2020 to 2022," said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. "We eagerly look forward to emerging on the other side of this pandemic and welcoming back customers to our hotels.  In the meantime, we will continue to prioritize the health and safety of our employees and guests and take prudent steps to reopen properties as demand improves."

Second Quarter 2020 Highlights:

  • Hotel Operations: The Company suspended operations at 20 of its 30 previously operating hotels (which excludes Frenchman's Reef) for at least some portion of the second quarter under governmental orders or due to lack of travel demand. The Company reopened 12 hotels during the second quarter as governmental orders were modified or lifted and leisure demand increased. Subsequent to June 30, 2020, the Company reopened three additional hotels and now has 25 of its 30 operating hotels open.
  • Net Loss: Net loss was $73.4 million and loss per diluted share was $0.36.
  • Comparable Revenues: Comparable total revenues decreased 92.1% from the comparable period of 2019.
  • Comparable RevPAR: RevPAR decreased 92.8% from the comparable period of 2019.
  • Adjusted EBITDA: Adjusted EBITDA was ($37.0) million, a decrease of $118.1 million from 2019.
  • Adjusted FFO: Adjusted FFO was ($41.0) million and Adjusted FFO per diluted share was ($0.20).
  • Debt Modifications: The Company successfully completed amendments to the agreements for its $400 million revolving credit facility and $400 million in unsecured term loans, which provided waivers of financial covenants through the first quarter of 2021. The Company also refinanced its only material near-term debt maturity, the mortgage loan secured by the Salt Lake City Marriott Downtown.
  • Liquidity: As of June 30, 2020, the Company's liquidity was $363.9 million, comprised of $87.8 million of unrestricted corporate cash, $25.1 million of unrestricted cash at its hotels and $251.0 million of capacity on the Company's revolving credit facility.

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

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



Second Quarter





2020



2019

Change

Comparable Operating Results (1)









ADR

$175.74





$250.23



(29.8)

%

Occupancy

8.5

%



83.1

%

(74.6)

%

RevPAR

$14.99





$208.02



(92.8)

%

Total RevPAR

$23.33





$295.39



(92.1)

%

Revenues

$20.4 million



$257.9 million

(92.1)

%

Hotel Adjusted EBITDA

($30.4) million



$88.3 million

(134.4)

%

Hotel Adjusted EBITDA Margin

(148.99)

%



34.26

%

(18,325) basis points

Available Rooms

873,676





873,145



531 rooms











Actual Operating Results









Revenues

$20.4 million



$257.9 million

(92.1)

%

Net loss/income

($73.4) million



$29.1 million

($102.5) million

Loss/Earnings per diluted share

($0.36)





$0.14



($0.50)



Adjusted EBITDA

($37.0) million



$81.1 million

($118.1) million

Adjusted FFO

($41.0) million



$65.1 million

($106.1) million

Adjusted FFO per diluted share

($0.20)



$0.32



($0.52)







(1)

Comparable operating results exclude Frenchman's Reef for all periods presented and does not adjust for hotels that have suspended operations.

For the six months ended June 30, 2020, the Company reported the following:



Year to Date





2020



2019

Change

Comparable Operating Results (1)









ADR

$211.29





$234.48



(9.9)

%

Occupancy

33.8

%



78.2

%

(44.4)

%

RevPAR

$71.48





$183.30



(61.0)

%

Total RevPAR

$108.95





$265.08



(58.9)

%

Revenues

$190.4 million



$460.3 million

(58.6)

%

Hotel Adjusted EBITDA

($12.5) million



$135.5 million

(109.2)

%

Hotel Adjusted EBITDA Margin

(6.59)

%



29.43

%

(3,602) basis points

Available Rooms

1,747,276





1,736,409



10,867 rooms











Actual Operating Results









Revenues

$190.4 million



$460.3 million

(58.6)

%

Net loss/income

($108.1) million



$38.1 million

($146.2) million

Loss/Earnings per diluted share

($0.53)





$0.19



($0.72)



Adjusted EBITDA

($25.2) million



$130.2 million

($155.4) million

Adjusted FFO

($32.6) million



$107.1 million

($139.7) million

Adjusted FFO per diluted share

($0.16)





$0.53



($0.69)







(1)

Comparable operating results exclude Frenchman's Reef for all periods presented and does not adjust for hotels that have suspended operations.

COVID-19 Pandemic

In response to the COVID-19 pandemic, the Company has taken the following aggressive actions at the property and corporate levels.

  • In coordination with its hotel operators, the Company suspended operations at 20 of its hotels throughout March and April 2020. The Company reopened 12 hotels during the second quarter. Subsequent to June 30, 2020, the Company reopened three additional hotels and now has 25 of its 30 previously operating hotels open.
  • The Company has developed and implemented action plans with its hotel operators to significantly reduce operating costs at each of its hotels.
  • The Company has canceled or deferred over 65% of its capital expenditures planned for the remainder of 2020.
  • The Company has paused the rebuild of Frenchman's Reef, which the Company had expected to open as two separate hotels in late 2020.
  • The Company has suspended its quarterly dividend commencing with the first quarter dividend that would have been paid in April 2020. The Company expects to pay a dividend in January 2021 sufficient to cover 100% of its taxable income, if any, for the year ending December 31, 2020.
  • On June 9, 2020, the Company finalized amendments to the credit agreements for its $400 million revolving credit facility and $400 million in unsecured term loans. The amendments include a waiver of the quarterly-tested financial covenants through the first quarter of 2021 and modified covenants thereafter through the fourth quarter of 2021.
  • On June 25, 2020, the Company refinanced its only material near-term debt maturity by closing on a $48.0 million mortgage loan secured by the Salt Lake City Marriott Downtown. The loan proceeds were used to repay the existing $52.5 million mortgage loan secured by the Salt Lake City Marriott Downtown that was scheduled to mature in November 2020, with the balance funded by corporate cash on hand.

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

Property



# of Rooms



Date of

Suspension



Date of 

Reopening

Cavallo Point, The Lodge at the Golden Gate



142



3/17/2020



6/24/2020

Courtyard Denver Downtown



177



3/20/2020



6/1/2020

Vail Marriott Mountain Resort & Spa



344



3/20/2020



6/12/2020

The Lodge at Sonoma Renaissance Resort & Spa



182



3/21/2020



7/1/2020

JW Marriott Denver at Cherry Creek



199



3/22/2020



6/1/2020

Havana Cabana Key West



106



3/23/2020



6/1/2020

Hilton Boston Downtown/Faneuil Hall



403



3/23/2020



7/31/2020

Hotel Emblem San Francisco



96



3/23/2020



6/26/2020

Barbary Beach House Key West



184



3/23/2020



6/1/2020

The Landing Resort & Spa



82



3/23/2020



6/5/2020

Westin Boston Waterfront



793



3/25/2020



-

Courtyard New York Manhattan/Fifth Avenue



189



3/27/2020



-

Hilton Garden Inn New York Times Square Central



282



3/29/2020



-

The Lexington Hotel New York City



725



3/29/2020



-

Hilton Burlington



258



3/31/2020



7/16/2020

Hotel Palomar Phoenix



242



3/31/2020



6/21/2020

Orchards Inn Sedona



70



3/31/2020



5/15/2020

The Gwen Chicago



311



3/31/2020



6/10/2020

Renaissance Charleston Historic District



166



4/6/2020



5/14/2020

Chicago Marriott Downtown Magnificent Mile



1,200



4/10/2020



-

The timing of reopening the five remaining hotels will depend primarily on federal, state, and local government guidance, health official recommendations and market demand. The Company currently anticipates reopening these hotels later this year.  The Company will continue to aggressively asset manage its hotels and carefully assess staffing needs, cleanliness and safety protocols, business mix and other initiatives.

Capital Expenditures

The Company invested approximately $12.2 million and $31.8 million in capital improvements at its operating hotels during the three and six months ended June 30, 2020, respectively. Due to the COVID-19 pandemic, the Company has canceled or deferred a significant portion of the planned capital improvements at its operating hotels.  The Company currently expects to spend approximately $50.0 million on capital improvements at its operating hotels during 2020.  Additionally, the Company has paused the rebuild of Frenchman's Reef. The Company spent approximately $37.7 million on the rebuild of Frenchman's Reef during the six months ended June 30, 2020.

Balance Sheet and Liquidity

As of June 30, 2020, the Company's liquidity was $363.9 million, comprised of $87.8 million of unrestricted corporate cash, $25.1 million of unrestricted cash at its hotels and $251.0 million of capacity on its senior unsecured credit facility.  As of June 30, 2020, the Company had $1.2 billion of total debt outstanding, which consisted of $605.0 million of property-specific mortgage debt, $400.0 million of unsecured term loans and $149.0 million outstanding on its $400.0 million senior unsecured credit facility.  The Company has no material debt maturities until 2022.

Guidance

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

Earnings Call

The Company will host a conference call to discuss its second quarter results on Friday, August 7, 2020, at 9:00 a.m. Eastern Time (ET).  To participate in the live call, investors are invited to dial 844-287-6622 (for domestic callers) or 530-379-4559 (for international callers).  The participant passcode is 4445689. A live webcast of the call will be available via the investor relations section of DiamondRock Hospitality Company's website at www.drhc.com or www.earnings.com. A replay of the webcast will also be archived on the website for one week.

About the Company

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

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

 

DIAMONDROCK HOSPITALITY COMPANY 

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)





June 30, 2020



December 31, 2019

ASSETS

(unaudited)





Property and equipment, net

$

3,029,905





$

3,026,769



Right-of-use assets

97,242





98,145



Restricted cash

36,359





57,268



Due from hotel managers

62,129





91,207



Prepaid and other assets (1)

24,795





29,853



Cash and cash equivalents

87,837





122,524



Total assets

$

3,338,267





$

3,425,766



LIABILITIES AND EQUITY







Liabilities:







Mortgage and other debt, net of unamortized debt issuance costs

$

605,034





$

616,329



Unsecured term loans, net of unamortized debt issuance costs

398,267





398,770



Senior unsecured credit facility

148,985





75,000



Total debt

1,152,286





1,090,099











Deferred income related to key money, net

11,144





11,342



Unfavorable contract liabilities, net

66,412





67,422



Deferred rent

54,186





52,012



Lease liabilities

103,588





103,625



Due to hotel managers

80,524





72,445



Distributions declared and unpaid

138





25,815



Accounts payable and accrued expenses (2)

63,424





81,944



Total liabilities

1,531,702





1,504,704



Equity:







Preferred stock, $0.01 par value; 10,000,000 shares authorized; no shares issued and outstanding







Common stock, $0.01 par value; 400,000,000 shares authorized; 199,516,435 and 200,207,795 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively

1,995





2,002



Additional paid-in capital

2,082,601





2,089,349



Accumulated deficit

(286,198)





(178,861)



Total stockholders' equity

1,798,398





1,912,490



Noncontrolling interests

8,167





8,572



Total equity

1,806,565





1,921,062



Total liabilities and equity

$

3,338,267





$

3,425,766







(1)

Includes $10.7 million of insurance receivables as of December 31, 2019, $11.1 million and $9.8 million of prepaid expenses and $13.7 million and $9.4 million of other assets as of June 30, 2020 and December 31, 2019, respectively.





(2) 

Includes $28.7 million of deferred tax liabilities, $17.8 million and $18.9 million of accrued property taxes, $5.2 million and $13.1 million of accrued capital expenditures and $11.7 million and $21.2 million of other accrued liabilities as of June 30, 2020 and December 31, 2019, respectively.

 

 

DIAMONDROCK HOSPITALITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)





Three Months Ended June 30,



Six Months Ended June 30,



2020



2019



2020



2019

Revenues:















Rooms

$

13,099





$

181,629





$

124,900





$

318,282



Food and beverage

3,038





60,714





46,943





111,179



Other

4,242





15,575





18,531





30,832



Total revenues

20,379





257,918





190,374





460,293



Operating Expenses:















Rooms

7,143





42,922





42,796





81,741



Food and beverage

4,715





36,456





35,802





69,606



Management fees

(78)





7,317





3,399





12,657



Franchise fees

793





7,208





6,589





13,067



Other hotel expenses

40,720





81,319





118,563





156,798



Depreciation and amortization

28,783





29,335





58,883





58,331



Corporate expenses

6,826





7,403





12,383





14,467



Business interruption insurance income













(8,822)



Total operating expenses, net

88,902





211,960





278,415





397,845



















Interest and other (income) expense, net

(150)





(105)





249





(408)



Interest expense

11,629





12,418





32,847





24,080



  Total other expenses, net

11,479





12,313





33,096





23,672



(Loss) income before income taxes

(80,002)





33,645





(121,137)





38,776



Income tax benefit (expense)

6,615





(4,571)





13,058





(722)



Net (loss) income

(73,387)





29,074





(108,079)





38,054



Less:  Net loss (income) attributable to noncontrolling interests

605





(114)





738





(149)



Net (loss) income attributable to common stockholders

$

(72,782)





$

28,960





$

(107,341)





$

37,905



(Loss) earnings per share:















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

$

(0.36)





$

0.14





$

(0.53)





$

0.19



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

$

(0.36)





$

0.14





$

(0.53)





$

0.19



















Weighted-average number of common shares outstanding:















Basic

200,797,317





202,405,507





201,002,576





202,610,178

Diluted

200,797,317





202,900,639





201,002,576





203,106,490

Non-GAAP Financial Measures

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

Use and Limitations of Non-GAAP Financial Measures

Our management and Board of Directors use EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. The use of these non-GAAP financial measures has certain limitations. These non-GAAP financial measures as presented by us, may not be comparable to non-GAAP financial measures as calculated by other real estate companies. These measures do not reflect certain expenses or expenditures that we incurred and will incur, such as depreciation, interest and capital expenditures. We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable U.S. GAAP financial measures, and our consolidated statements of operations and cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures.

These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with U.S. GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by U.S. GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our U.S. GAAP results and the reconciliations to the corresponding U.S. GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.

EBITDA, EBITDAre and FFO

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

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

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

Hotel EBITDA

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

Adjustments to EBITDAre, FFO and Hotel EBITDA

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

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

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

Reconciliations of Non-GAAP Measures

EBITDA, EBITDAre and Adjusted EBITDA

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



Three Months Ended June 30,



Six Months Ended June 30,



2020



2019



2020



2019

Net (loss) income

$

(73,387)





$

29,074





$

(108,079)





$

38,054



Interest expense

11,629





12,418





32,847





24,080



Income tax (benefit) expense

(6,615)





4,571





(13,058)





722



Real estate related depreciation and amortization

28,783





29,335





58,883





58,331



EBITDA/EBITDAre

(39,590)





75,398





(29,407)





121,187



Non-cash lease expense and other amortization

1,708





1,784





3,458





3,499



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

122





3,700





(175)





5,067



Hotel manager transition costs (2)

334





171





561





468



Severance costs (3)

393









393







Adjusted EBITDA

$

(37,033)





$

81,053





$

(25,170)





$

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)

Three months ended June 30, 2020 consists of manager transition costs of $0.3 million related to the Westin Boston Waterfront Hotel.  Six months ended June 30, 2020 consists of manager transition costs of $1.1 million related to the L'Auberge de Sedona, Orchards Inn Sedona and the Westin Boston Waterfront Hotel and a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement.  Three months ended June 30, 2019 consist of $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center. Six months ended June 30, 2019 consists of $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center.





(3)

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

Hotel EBITDA and Hotel Adjusted EBITDA

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



Three Months Ended June 30,



Six Months Ended June 30,



2020



2019



2020



2019

Net (loss) income

$

(73,387)





$

29,074





$

(108,079)





$

38,054



Interest expense

11,629





12,418





32,847





24,080



Income tax (benefit) expense

(6,615)





4,571





(13,058)





722



Real estate related depreciation and amortization

28,783





29,335





58,883





58,331



EBITDA

(39,590)





75,398





(29,407)





121,187



Corporate expenses

6,826





7,403





12,383





14,467



Interest and other (income) expense, net

(150)





(105)





249





(408)



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

122





3,700





(175)





5,067



Hotel EBITDA

(32,792)





86,396





(16,950)





140,313



Non-cash lease expense and other amortization

1,708





1,784





3,458





3,499



Severance costs

393









393







Hotel manager transition costs (2)

334





171





561





468



Hotel Adjusted EBITDA

$

(30,357)





$

88,351





$

(12,538)





$

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) 

Three months ended June 30, 2020 consists of manager transition costs of $0.3 million related to the Westin Boston Waterfront Hotel.  Six months ended June 30, 2020 consists of manager transition costs of $1.1 million related to the L'Auberge de Sedona, Orchards Inn Sedona and the Westin Boston Waterfront Hotel and a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement.  Three months ended June 30, 2019 consist of $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center. Six months ended June 30, 2019 consists of $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center.





(3)

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

FFO and Adjusted FFO

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



Three Months Ended June 30,



Six Months Ended June 30,



2020



2019



2020



2019

Net (loss) income

$

(73,387)





$

29,074





$

(108,079)





$

38,054



Real estate related depreciation and amortization

28,783





29,335





58,883





58,331



FFO

(44,604)





58,409





(49,196)





96,385



Non-cash lease expense and other amortization

1,708





1,784





3,458





3,499



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

122





3,700





(175)





5,067



Hotel manager transition costs (2)

334





171





561





468



Severance costs (3)

393









393







Fair value adjustments to interest rate swaps

1,000





1,075





12,312





1,647



Adjusted FFO

$

(41,047)





$

65,139





$

(32,647)





$

107,066



Adjusted FFO per diluted share

$

(0.20)





$

0.32





$

(0.16)





$

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)  

Three months ended June 30, 2020 consists of manager transition costs of $0.3 million related to the Westin Boston Waterfront Hotel.  Six months ended June 30, 2020 consists of manager transition costs of $1.1 million related to the L'Auberge de Sedona, Orchards Inn Sedona and the Westin Boston Waterfront Hotel and a downward adjustment of $0.6 million to the termination fees for the Sheraton Suites Key West franchise agreement.  Three months ended June 30, 2019 consist of $0.1 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center. Six months ended June 30, 2019 consists of $0.4 million of pre-opening costs related to the reopening of the Hotel Emblem and $0.1 million of manager transition costs related to the Westin Washington, D.C. City Center.





(3)

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

Reconciliation of Comparable Operating Results

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



Three Months Ended June 30,



Six Months Ended June 30,



2020



2019



2020



2019

Revenues

$

20,379





$

257,918





$

190,374





$

460,293



Hotel revenues from Frenchman's Reef















Comparable Revenues

$

20,379





$

257,918





$

190,374





$

460,293



















Hotel Adjusted EBITDA

$

(30,357)





$

88,351





$

(12,538)





$

144,280



Hotel Adjusted EBITDA from Frenchman's Reef

(6)





2









(8,800)



Comparable Hotel Adjusted EBITDA

$

(30,363)





$

88,353





$

(12,538)





$

135,480



















Hotel Adjusted EBITDA Margin

(148.96)

%



34.26

%



(6.59)

%



31.35

%

Comparable Hotel Adjusted EBITDA Margin

(148.99)

%



34.26

%



(6.59)

%



29.43

%

Selected Quarterly Comparable Operating Information

The following table is presented to provide investors with selected quarterly comparable operating information.  The operating information excludes Frenchman's Reef for all periods.



Quarter 1, 2019

Quarter 2, 2019

Quarter 3, 2019

Quarter 4, 2019

Full Year 2019

ADR

$

216.38



$

250.23



$

238.50



$

247.02



$

238.63



Occupancy

73.2

%

83.1

%

82.7

%

77.4

%

79.1

%

RevPAR

$

158.30



$

208.02



$

197.14



$

191.08



$

188.75



Revenues (in thousands)

$

202,375



$

257,918



$

240,279



$

237,519



$

938,091



Hotel Adjusted EBITDA (in thousands)

$

47,127



$

88,353



$

73,750



$

69,415



$

278,645



        % of full Year

16.91

%

31.71

%

26.47

%

24.91

%

100.0

%

Hotel Adjusted EBITDA Margin

23.29

%

34.26

%

30.69

%

29.23

%

29.70

%

Available Rooms

863,264



873,145



883,200



883,200



3,502,809



 

Market Capitalization as of June 30, 2020

(in thousands)

Enterprise Value











Common equity capitalization (at June 30, 2020 closing price of $5.53/share)



$

1,114,580

Consolidated debt (face amount)



1,156,954

Cash and cash equivalents



(87,837)

Total enterprise value



$

2,183,697

Share Reconciliation











Common shares outstanding



199,516

Unvested restricted stock held by management and employees



573

Share grants under deferred compensation plan



1,462

Combined shares outstanding



201,551

 

Debt Summary as of June 30, 2020

(dollars in thousands)

Loan



Interest Rate as of

June 30, 2020



Term



Outstanding

Principal



Maturity

Marriott Salt Lake City Downtown



LIBOR + 3.25 (1)



Variable



$

48,000





January 2022 (2)

Westin Washington D.C. City Center



3.99%



Fixed



59,427





January 2023

The Lodge at Sonoma Renaissance Resort & Spa



3.96%



Fixed



26,675





April 2023

Westin San Diego



3.94%



Fixed



61,064





April 2023

Courtyard New York Manhattan / Midtown East



4.40%



Fixed



80,330





August 2024

Worthington Renaissance Fort Worth Hotel



3.66%



Fixed



80,067





May 2025

JW Marriott Denver Cherry Creek



4.33%



Fixed



60,659





July 2025

Westin Boston Waterfront



4.36%



Fixed



188,804





November 2025

New Market Tax Credit loan (3)



5.17%



Fixed



2,943





December 2020

     Unamortized debt issuance costs











(2,935)







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











605,034

























Unsecured term loan



LIBOR + 2.35% (4)



Variable



350,000





July 2024

Unsecured term loan



LIBOR + 2.35% (5)



Fixed



50,000





October 2023

     Unamortized debt issuance costs











(1,733)







Unsecured term loans, net of unamortized debt issuance costs







398,267

























Senior unsecured credit facility



LIBOR + 2.40% (6)



Variable



148,985





July 2023 (7)



















Total debt, net of unamortized debt issuance costs











$

1,152,286







Weighted-average interest rate of fixed rate debt



4.23

%













Total weighted-average interest rate



3.80

%



















(1)

LIBOR is subject to a floor of 1.0%.

(2) 

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

(3) 

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

(4) 

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

(5) 

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

(6) 

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

(7)

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



 



Operating Statistics – April



Number

of Rooms

ADR



Occupancy



RevPAR



April 2020

April 2019

B/(W) 2019



April 2020

April 2019

B/(W) 2019



April 2020

April 2019

B/(W) 2019



























Atlanta Marriott Alpharetta

318



$

154.89



$

162.01



(4.4)

%



1.0

%

78.8

%

(77.8)

%



$

1.57



$

127.65



(98.8)

%

Bethesda Marriott Suites

272



$

158.67



$

186.41



(14.9)

%



2.2

%

80.7

%

(78.5)

%



$

3.46



$

150.45



(97.7)

%

Courtyard New York Manhattan/Midtown East

321



$

120.21



$

272.33



(55.9)

%



46.9

%

96.2

%

(49.3)

%



$

56.43



$

262.01



(78.5)

%

Kimpton Shorebreak Hotel Huntington Beach

157



$

94.71



$

254.27



(62.8)

%



65.6

%

73.8

%

(8.2)

%



$

62.11



$

187.71



(66.9)

%

L'Auberge de Sedona Resort & Spa

88



$

470.88



$

797.91



(41.0)

%



9.1

%

87.2

%

(78.1)

%



$

42.99



$

695.45



(93.8)

%

Salt Lake City Marriott Downtown

510



$

156.77



$

163.98



(4.4)

%



1.4

%

67.0

%

(65.6)

%



$

2.18



$

109.94



(98.0)

%

Westin Fort Lauderdale Beach Resort

433



$

131.73



$

252.92



(47.9)

%



5.3

%

89.7

%

(84.4)

%



$

6.92



$

226.76



(96.9)

%

Westin San Diego

436



$

172.62



$

202.87



(14.9)

%



40.3

%

78.2

%

(37.9)

%



$

69.49



$

158.70



(56.2)

%

Westin Washington D.C. City Center

410



$

177.89



$

245.73



(27.6)

%



1.1

%

91.0

%

(89.9)

%



$

1.94



$

223.73



(99.1)

%

Worthington Renaissance Fort Worth Hotel

504



$

107.66



$

196.01



(45.1)

%



6.9

%

81.3

%

(74.4)

%



$

7.45



$

159.40



(95.3)

%

Total Open for Entire Period - 10 Hotels

3,449



$

139.74



$

230.66



(39.4)

%



14.9

%

81.9

%

(67.0)

%



$

20.89



$

188.99



(88.9)

%



























Total Closed for Entire Period - 20 Hotels

6,151



$



$

251.77



(100.0)

%



%

82.2

%

(82.2)

%



$



$

206.88



(100.0)

%



























Portfolio Total (1)

9,600



$

122.82



$

244.20



(49.7)

%



5.4

%

82.1

%

(76.7)

%



$

6.67



$

200.45



(96.7)

%





(1)

Amounts exclude the operating results of Frenchman's Reef for all periods presented.

 



Operating Statistics – May



Number

of Rooms

ADR



Occupancy



RevPAR



May 2020

May 2019

B/(W) 2019



May 2020

May 2019

B/(W) 2019



May 2020

May 2019

B/(W) 2019





















































Atlanta Marriott Alpharetta

318



$

136.10



$

157.94



(13.8)

%



1.9

%

74.3

%

(72.4)

%



$

2.62



$

117.31



(97.8)

%

Bethesda Marriott Suites

272



$

160.17



$

191.12



(16.2)

%



2.3

%

83.7

%

(81.4)

%



$

3.61



$

160.02



(97.7)

%

Courtyard New York Manhattan/Midtown East

321



$

145.36



$

270.70



(46.3)

%



93.6

%

97.6

%

(4.0)

%



$

136.10



$

264.25



(48.5)

%

Kimpton Shorebreak Huntington Beach Resort

157



$

261.12



$

259.80



0.5

%



32.2

%

77.2

%

(45.0)

%



$

84.02



$

200.65



(58.1)

%

L'Auberge de Sedona Resort & Spa

88



$

660.62



$

656.42



0.6

%



30.7

%

89.7

%

(59.0)

%



$

202.93



$

588.56



(65.5)

%

Salt Lake City Marriott Downtown

510



$

118.25



$

161.04



(26.6)

%



4.0

%

71.2

%

(67.2)

%



$

4.71



$

114.71



(95.9)

%

Westin Fort Lauderdale Beach Resort

433



$

150.42



$

176.07



(14.6)

%



14.4

%

80.6

%

(66.2)

%



$

21.73



$

141.97



(84.7)

%

Westin San Diego

436



$

169.01



$

195.65



(13.6)

%



29.2

%

77.9

%

(48.7)

%



$

49.32



$

152.35



(67.6)

%

Westin Washington D.C. City Center

410



$

134.90



$

250.12



(46.1)

%



1.3

%

91.2

%

(89.9)

%



$

1.75



$

228.01



(99.2)

%

Worthington Renaissance Fort Worth Hotel

504



$

137.15



$

198.00



(30.7)

%



9.1

%

72.2

%

(63.1)

%



$

12.44



$

142.95



(91.3)

%

Total Open for Entire Period - 10 Hotels

3,449



$

179.36



$

217.16



(17.4)

%



18.9

%

80.2

%

(61.3)

%



$

33.88



$

174.22



(80.6)

%



























Total Partially Open During Period - 2 Hotels

236



$

191.44



$

305.11



(37.3)

%



10.1

%

87.9

%

(77.8)

%



$

19.26



$

268.12



(92.8)

%



























Total Closed for Entire Period - 18 Hotels

5,915



$



$

274.12



(100.0)

%



%

81.5

%

(81.5)

%



$



$

223.38



(100.0)

%



























Portfolio Total (1)

9,600



$

182.39



$

254.71



(28.4)

%



7.1

%

81.2

%

(74.1)

%



$

12.93



$

206.81



(93.7)

%





 (1)

Amounts exclude the operating results of Frenchman's Reef for all periods presented.

 



Operating Statistics – June



Number

of Rooms

ADR



Occupancy



RevPAR



June 2020

June 2019

B/(W) 2019



June 2020

June 2019

B/(W) 2019



June 2020

June 2019

B/(W) 2019





















































Atlanta Marriott Alpharetta

318



$

116.69



$

161.39



(27.7)

%



17.5

%

71.3

%

(53.8)

%



$

20.40



$

115.02



(82.3)

%

Barbary Beach House Key West

184



$

219.64



$

207.73



5.7

%



28.8

%

87.0

%

(58.2)

%



$

63.23



$

180.83



(65.0)

%

Bethesda Marriott Suites

272



$

125.72



$

187.51



(33.0)

%



8.7

%

85.5

%

(76.8)

%



$

10.89



$

160.35



(93.2)

%

Courtyard Denver Downtown

177



$

105.50



$

230.10



(54.2)

%



17.0

%

88.0

%

(71.0)

%



$

17.96



$

202.50



(91.1)

%

Courtyard New York Manhattan/Midtown East

321



$

149.07



$

279.81



(46.7)

%



86.2

%

98.0

%

(11.8)

%



$

128.49



$

274.11



(53.1)

%

Havana Cabana Key West

106



$

196.11



$

172.44



13.7

%



49.7

%

90.0

%

(40.3)

%



$

97.56



$

155.14



(37.1)

%

JW Marriott Denver Cherry Creek

199



$

206.16



$

279.70



(26.3)

%



20.5

%

87.5

%

(67.0)

%



$

42.30



$

244.71



(82.7)

%

Kimpton Shorebreak Huntington Beach Resort

157



$

265.80



$

261.61



1.6

%



51.5

%

85.6

%

(34.1)

%



$

137.02



$

223.95



(38.8)

%

L'Auberge de Sedona Resort & Spa

88



$

580.46



$

534.13



8.7

%



70.3

%

74.3

%

(4.0)

%



$

408.08



$

396.95



2.8

%

Orchards Inn Sedona

70



$

185.07



$

202.82



(8.8)

%



48.0

%

83.0

%

(35.0)

%



$

88.75



$

168.34



(47.3)

%

Renaissance Charleston Historic District

166



$

186.05



$

261.51



(28.9)

%



34.6

%

88.7

%

(54.1)

%



$

64.43



$

231.90



(72.2)

%

Salt Lake City Marriott Downtown

510



$

129.15



$

175.24



(26.3)

%



8.5

%

80.2

%

(71.7)

%



$

10.93



$

140.52



(92.2)

%

Westin Fort Lauderdale Beach Resort

433



$

139.18



$

156.75



(11.2)

%



35.7

%

71.9

%

(36.2)

%



$

49.63



$

112.73



(56.0)

%

Westin San Diego

436



$

160.35



$

201.25



(20.3)

%



14.1

%

91.5

%

(77.4)

%



$

22.66



$

184.12



(87.7)

%

Westin Washington D.C. City Center

410



$

142.02



$

222.97



(36.3)

%



3.0

%

95.1

%

(92.1)

%



$

4.19



$

212.09



(98.0)

%

Worthington Renaissance Fort Worth Hotel

504



$

166.92



$

182.41



(8.5)

%



18.1

%

79.2

%

(61.1)

%



$

30.16



$

144.48



(79.1)

%

Total Open for Entire Period - 16 Hotels

4,351



$

188.23



$

213.29



(11.7)

%



25.9

%

84.4

%

(58.5)

%



$

48.83



$

180.04



(72.9)

%



























Total Partially Open During Period - 6 Hotels

1,217



$

246.53



$

255.25



(3.4)

%



10.7

%

77.9

%

(67.2)

%



$

26.48



$

198.87



(86.7)

%



























Total Closed for Entire Period - 8 Hotels

4,032



$



$

289.22



(100.0)

%



%

90.6

%

(90.6)

%



$



$

261.94



(100.0)

%



























Portfolio Total (1)

9,600



$

193.92



$

251.62



(22.9)

%



13.1

%

86.2

%

(73.1)

%



$

25.44



$

216.83



(88.3)

%





  (1)

Amounts exclude the operating results of Frenchman's Reef for all periods presented.

 



Operating Statistics – Second Quarter



Number

of Rooms

ADR



Occupancy



RevPAR



2Q 2020

2Q 2019

B/(W) 2019



2Q 2020

2Q 2019

B/(W) 2019



2Q 2020

2Q 2019

B/(W) 2019





















































Atlanta Marriott Alpharetta

318



$

120.47



$

160.44



(24.9)

%



6.8

%

74.8

%

(68.0)

%



$

8.14



$

119.97



(93.2)

%

Bethesda Marriott Suites

272



$

137.27



$

188.39



(27.1)

%



4.3

%

83.3

%

(79.0)

%



$

5.96



$

156.97



(96.2)

%

Courtyard New York Manhattan/Midtown East

321



$

141.61



$

274.26



(48.4)

%



75.8

%

97.3

%

(21.5)

%



$

107.33



$

266.76



(59.8)

%

Kimpton Shorebreak Huntington Beach Resort

157



$

190.15



$

258.74



(26.5)

%



49.6

%

78.9

%

(29.3)

%



$

94.27



$

204.07



(53.8)

%

L'Auberge de Sedona Resort & Spa

88



$

594.35



$

669.18



(11.2)

%



36.7

%

83.8

%

(47.1)

%



$

217.83



$

560.63



(61.1)

%

Salt Lake City Marriott Downtown

510



$

128.69



$

167.09



(23.0)

%



4.6

%

72.8

%

(68.2)

%



$

5.93



$

121.65



(95.1)

%

Westin Fort Lauderdale Beach Resort

433



$

141.48



$

198.53



(28.7)

%



18.4

%

80.7

%

(62.3)

%



$

26.04



$

160.28



(83.8)

%

Westin San Diego

436



$

169.28



$

199.95



(15.3)

%



27.9

%

82.5

%

(54.6)

%



$

47.18



$

164.92



(71.4)

%

Westin Washington D.C. City Center

410



$

147.51



$

239.48



(38.4)

%



1.8

%

92.4

%

(90.6)

%



$

2.62



$

221.35



(98.8)

%

Worthington Renaissance Fort Worth Hotel

504



$

146.86



$

192.06



(23.5)

%



11.3

%

77.5

%

(66.2)

%



$

16.64



$

148.88



(88.8)

%

Total Open for Entire Period - 10 Hotels

3,449



$

173.08



$

218.45



(20.8)

%



19.6

%

81.9

%

(62.3)

%



$

33.91



$

178.89



(81.0)

%



























Total Partially Open During Period - 13 Hotels

3,319



$

184.86



$

251.67



(26.5)

%



4.3

%

79.2

%

(74.9)

%



$

7.98



$

199.39



(96.0)

%



























Total Closed for Entire Period - 7 Hotels

2,832



$



$

284.26



(100.0)

%



%

89.2

%

(89.2)

%



$



$

253.59



(100.0)

%



























Portfolio Total (1)

9,600



$

175.74



$

250.23



(29.8)

%



8.5

%

83.1

%

(74.6)

%



$

14.99



$

208.02



(92.8)

%





(1)

Amounts exclude the operating results of Frenchman's Reef for all periods presented.

 



Operating Statistics – Year to Date



Number

of Rooms

ADR



Occupancy



RevPAR



YTD 2020

YTD 2019

B/(W) 2019



YTD 2020

YTD 2019

B/(W) 2019



YTD 2020

YTD 2019

B/(W) 2019





















































Atlanta Marriott Alpharetta

318



$

167.54



$

168.59



(0.6)

%



29.1

%

72.6

%

(43.5)

%



$

48.74



$

122.44



(60.2)

%

Bethesda Marriott Suites

272



$

168.34



$

181.32



(7.2)

%



25.9

%

74.4

%

(48.5)

%



$

43.57



$

134.84



(67.7)

%

Courtyard New York Manhattan/Midtown East

321



$

154.60



$

233.54



(33.8)

%



76.2

%

94.7

%

(18.5)

%



$

117.86



$

221.06



(46.7)

%

Kimpton Shorebreak Huntington Beach Resort

157



$

211.59



$

248.09



(14.7)

%



55.2

%

77.1

%

(21.9)

%



$

116.73



$

191.22



(39.0)

%

L'Auberge de Sedona Resort & Spa

88



$

568.53



$

623.67



(8.8)

%



50.3

%

82.1

%

(31.8)

%



$

286.00



$

512.04



(44.1)

%

Salt Lake City Marriott Downtown

510



$

167.49



$

170.00



(1.5)

%



28.0

%

66.0

%

(38.0)

%



$

46.81



$

112.24



(58.3)

%

Westin Fort Lauderdale Beach Resort

433



$

251.18



$

228.58



9.9

%



49.5

%

88.1

%

(38.6)

%



$

124.30



$

201.29



(38.2)

%

Westin San Diego

436



$

182.76



$

195.09



(6.3)

%



47.3

%

80.0

%

(32.7)

%



$

86.53



$

156.11



(44.6)

%

Westin Washington D.C. City Center

410



$

191.70



$

222.10



(13.7)

%



31.0

%

85.0

%

(54.0)

%



$

59.48



$

188.80



(68.5)

%

Worthington Renaissance Fort Worth Hotel

504



$

187.14



$

190.08



(1.5)

%



34.4

%

78.5

%

(44.1)

%



$

64.47



$

149.15



(56.8)

%

Total Open for Entire Period - 10 Hotels

3,449



$

200.33



$

214.03



(6.4)

%



40.7

%

79.5

%

(38.8)

%



$

81.47



$

170.11



(52.1)

%



























Total Partially Open During Period - 20 Hotels

6,151



$

219.62



$

246.27



(10.8)

%



30.0

%

77.4

%

(47.4)

%



$

65.88



$

190.71



(65.5)

%



























Portfolio Total (1)

9,600



$

211.29



$

234.48



(9.9)

%



33.8

%

78.2

%

(44.4)

%



$

71.48



$

183.30



(61.0)

%





(1)

  Amounts exclude the operating results of Frenchman's Reef for all periods presented.

 

Hotel Adjusted EBITDA Reconciliation







Second Quarter 2020











Plus:

Plus:

Plus:

Equals:





Days of

Operation

Total Revenues



Net Income /

(Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted

EBITDA

Atlanta Marriott Alpharetta



91

$

279





$

(969)



$

360



$



$



$

(609)



Barbary Beach House Key West



30

$

523





$

(1,416)



$

680



$



$



$

(736)



Bethesda Marriott Suites



91

$

243





$

(2,958)



$

677



$



$

1,506



$

(775)



Cavallo Point, The Lodge at the Golden Gate



7

$

141





$

(2,940)



$

1,837



$



$

94



$

(1,009)



Chicago Marriott Downtown Magnificent Mile



9

$

242





$

(9,622)



$

4,179



$

55



$

(397)



$

(5,785)



Courtyard Denver Downtown



30

$

196





$

(713)



$

376



$



$



$

(337)



Courtyard New York Manhattan/Fifth Avenue



$

46





$

(2,036)



$

329



$



$

253



$

(1,454)



Courtyard New York Manhattan/Midtown East



91

$

3,138





$

(1,175)



$

569



$

972



$



$

366



Frenchman's Reef



$





$

6



$



$



$



$

6



Havana Cabana Key West



30

$

447





$

(586)



$

272



$



$



$

(314)



Hilton Boston Downtown/Faneuil Hall



$

254





$

(2,339)



$

1,220



$



$



$

(1,119)



Hilton Burlington



$





$

(1,162)



$

500



$



$



$

(662)



Hilton Garden Inn New York/Times Square Central



$

41





$

(2,312)



$

843



$



$



$

(1,469)



Hotel Emblem San Francisco



5

$

7





$

(797)



$

289



$



$



$

(508)



Hotel Palomar Phoenix



10

$

427





$

(1,622)



$

672



$

39



$

286



$

(625)



JW Marriott Denver Cherry Creek



30

$

256





$

(2,252)



$

535



$

675



$

6



$

(1,036)



Kimpton Shorebreak Huntington Beach Resort



91

$

1,824





$

(137)



$

408



$



$



$

271



L'Auberge de Sedona Resort & Spa



91

$

2,544





$

92



$

622



$



$



$

714



Orchards Inn Sedona



47

$

357





$

(181)



$

80



$



$

42



$

(59)



Renaissance Charleston Historic District



53

$

798





$

(452)



$

419



$



$

(32)



$

(65)



Salt Lake City Marriott Downtown



91

$

903





$

(1,690)



$

552



$

582



$



$

(556)



The Gwen Chicago



21

$

318





$

(2,411)



$

1,110



$



$



$

(1,301)



The Landing Resort & Spa



26

$

733





$

(413)



$

425



$



$



$

12



The Lexington New York City



$

56





$

(6,664)



$

3,043



$

7



$

8



$

(3,606)



The Lodge at Sonoma Renaissance Resort & Spa



$

50





$

(1,636)



$

444



$

273



$



$

(919)



Vail Marriott Mountain Resort & Spa



19

$

81





$

(2,829)



$

1,121



$



$



$

(1,708)



Westin Boston Waterfront



$

543





$

(7,553)



$

2,559



$

2,128



$

(60)



$

(2,926)



Westin Fort Lauderdale Beach Resort



91

$

2,286





$

(2,321)



$

1,093



$



$



$

(1,228)



Westin San Diego



91

$

2,484





$

(1,551)



$

1,124



$

618



$



$

191



Westin Washington D.C. City Center



91

$

174





$

(3,456)



$

1,324



$

640



$



$

(1,492)



Worthington Renaissance Fort Worth Hotel



91

$

988





$

(3,507)



$

1,121



$

765



$

2



$

(1,619)



Total





$

20,379





$

(67,602)



$

28,783



$

6,754



$

1,708



$

(30,357)



Less: Frenchman's Reef





$





$

(6)



$



$



$



$

(6)



Comparable Total





$

20,379





$

(67,608)



$

28,783



$

6,754



$

1,708



$

(30,363)







(1)

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

 

Hotel Adjusted EBITDA Reconciliation





Second Quarter 2019











Plus:

Plus:

Plus:

Equals:





Total Revenues



Net Income /

(Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted

EBITDA

Atlanta Marriott Alpharetta



$

4,862





$

1,188



$

459



$



$



$

1,647



Barbary Beach House Key West



$

4,446





$

1,217



$

344



$



$



$

1,561



Bethesda Marriott Suites



$

5,234





$

18



$

474



$



$

1,517



$

2,009



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



Frenchman's Reef



$





$

(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



$

4,993





$

1,422



$

515



$



$



$

1,937



Hilton Garden Inn New York/Times Square Central



$

7,090





$

1,457



$

826



$



$



$

2,283



Hotel Emblem San Francisco



$

1,995





$

180



$

297



$



$



$

477



Hotel Palomar Phoenix



$

6,070





$

668



$

663



$

38



$

294



$

1,663



JW Marriott Denver Cherry Creek



$

5,797





$

265



$

688



$

687



$

6



$

1,646



Kimpton Shorebreak Huntington Beach Resort



$

4,483





$

1,192



$

349



$



$

40



$

1,581



L'Auberge de Sedona Resort & Spa



$

7,668





$

2,101



$

508



$



$



$

2,609



Orchards Inn Sedona



$

2,414





$

622



$

237



$



$

42



$

901



Renaissance Charleston Historic District



$

4,685





$

1,906



$

418



$



$

(32)



$

2,292



Salt Lake City Marriott Downtown



$

7,863





$

1,695



$

574



$

606



$



$

2,875



The Gwen Chicago



$

9,881





$

2,332



$

1,149



$



$



$

3,481



The Landing Resort & Spa



$

1,804





$

(332)



$

385



$



$



$

53



The Lexington New York City



$

18,275





$

1,324



$

3,557



$

8



$

8



$

4,897



The Lodge at Sonoma Renaissance Resort & Spa



$

6,946





$

1,501



$

529



$

280



$



$

2,310



Vail Marriott Mountain Resort & Spa



$

4,485





$

(1,622)



$

1,035



$



$



$

(587)



Westin Boston Waterfront



$

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



$

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



$

1,783



$

88,351



Less: Frenchman's Reef



$





$

2



$



$



$



$

2



Comparable Total



$

257,918





$

50,468



$

29,335



$

6,875



$

1,783



$

88,353







(1)

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

 

Hotel Adjusted EBITDA Reconciliation







Year to Date 2020













Plus:

Plus:

Plus:

Equals:





Days of

Operation

Total Revenues



Net Income /

(Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted

EBITDA

Atlanta Marriott Alpharetta



182

$

4,258





$

(225)



$

734



$



$



$

509



Barbary Beach House Key West



112

$

5,923





$

(84)



$

1,357



$



$



$

1,273



Bethesda Marriott Suites



182

$

2,979





$

(5,055)



$

1,206



$



$

3,020



$

(829)



Cavallo Point, The Lodge at the Golden Gate



83

$

7,857





$

(4,007)



$

3,706



$



$

187



$

(114)



Chicago Marriott Downtown Magnificent Mile



100

$

13,844





$

(17,186)



$

8,404



$

108



$

(795)



$

(9,469)



Courtyard Denver Downtown



109

$

1,665





$

(715)



$

719



$



$



$

4



Courtyard New York Manhattan/Fifth Avenue



86

$

2,324





$

(3,530)



$

780



$



$

507



$

(2,243)



Courtyard New York Manhattan/Midtown East



182

$

7,118





$

(3,930)



$

1,291



$

1,923



$



$

(716)



Frenchman's Reef



$





$



$



$



$



$



Havana Cabana Key West



112

$

3,164





$

291



$

525



$



$



$

816



Hilton Boston Downtown/Faneuil Hall



82

$

5,519





$

(3,383)



$

2,447



$



$



$

(936)



Hilton Burlington



90

$

1,697





$

(1,986)



$

1,005



$



$



$

(981)



Hilton Garden Inn New York/Times Square Central



88

$

3,221





$

(4,239)



$

1,690



$



$



$

(2,549)



Hotel Emblem San Francisco



87

$

1,842





$

(792)



$

576



$



$



$

(216)



Hotel Palomar Phoenix



100

$

6,844





$

(221)



$

1,345



$

77



$

579



$

1,780



JW Marriott Denver Cherry Creek



111

$

3,661





$

(3,545)



$

1,342



$

1,353



$

12



$

(838)



Kimpton Shorebreak Huntington Beach Resort



182

$

5,035





$

(44)



$

819



$



$

27



$

802



L'Auberge de Sedona Resort & Spa



182

$

7,182





$

(513)



$

1,360



$



$



$

847



Orchards Inn Sedona



137

$

1,609





$

(371)



$

297



$



$

84



$

10



Renaissance Charleston Historic District



144

$

3,692





$

(237)



$

846



$



$

(63)



$

546



Salt Lake City Marriott Downtown



182

$

7,628





$

(698)



$

1,111



$

1,174



$



$

1,587



The Gwen Chicago



111

$

5,005





$

(3,960)



$

2,223



$



$



$

(1,737)



The Landing Resort & Spa



108

$

2,447





$

(828)



$

835



$



$



$

7



The Lexington New York City



88

$

8,703





$

(13,995)



$

6,664



$

12



$

16



$

(7,303)



The Lodge at Sonoma Renaissance Resort & Spa



80

$

3,604





$

(2,738)



$

897



$

548



$



$

(1,293)



Vail Marriott Mountain Resort & Spa



98

$

12,561





$

1,073



$

2,231



$



$



$

3,304



Westin Boston Waterfront



84

$

16,674





$

(11,334)



$

5,168



$

4,266



$

(120)



$

(2,020)



Westin Fort Lauderdale Beach Resort



182

$

19,073





$

3,625



$

2,145



$



$



$

5,770



Westin San Diego



182

$

10,084





$

(940)



$

2,261



$

1,240



$



$

2,561



Westin Washington D.C. City Center



182

$

5,536





$

(5,029)



$

2,642



$

1,285



$



$

(1,102)



Worthington Renaissance Fort Worth Hotel



182

$

9,625





$

(3,804)



$

2,257



$

1,533



$

4



$

(10)



Total





$

190,374





$

(88,400)



$

58,883



$

13,519



$

3,458



$

(12,538)



Less: Frenchman's Reef





$





$



$



$



$



$



Comparable Total





$

190,374





$

(88,400)



$

58,883



$

13,519



$

3,458



$

(12,538)







(1)

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

 

Hotel Adjusted EBITDA Reconciliation





Year to Date 2019











Plus:

Plus:

Plus:

Equals:





Total Revenues



Net Income /

(Loss)

Depreciation

Interest Expense

Adjustments (1)

Hotel Adjusted

EBITDA

Atlanta Marriott Alpharetta



$

10,172





$

2,768



$

934



$



$



$

3,702



Barbary Beach House Key West



$

10,240





$

3,612



$

682



$



$



$

4,294



Bethesda Marriott Suites



$

9,171





$

(954)



$

951



$



$

3,042



$

3,039



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



Frenchman's Reef



$





$

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



$

7,910





$

1,466



$

1,015



$



$



$

2,481



Hilton Garden Inn New York/Times Square Central



$

11,714





$

787



$

1,671



$



$



$

2,458



Hotel Emblem San Francisco



$

3,344





$

(77)



$

572



$



$



$

495



Hotel Palomar Phoenix



$

13,683





$

2,743



$

1,329



$

76



$

590



$

4,738



JW Marriott Denver Cherry Creek



$

8,474





$

(1,213)



$

1,229



$

1,370



$

12



$

1,398



Kimpton Shorebreak Huntington Beach Resort



$

8,424





$

1,778



$

698



$



$

81



$

2,557



L'Auberge de Sedona Resort & Spa



$

13,622





$

2,960



$

1,017



$



$



$

3,977



Orchards Inn Sedona



$

4,292





$

896



$

475



$



$

84



$

1,455



Renaissance Charleston Historic District



$

8,168





$

2,796



$

821



$



$

(63)



$

3,554



Salt Lake City Marriott Downtown



$

14,737





$

2,752



$

1,104



$

1,210



$



$

5,066



The Gwen Chicago



$

14,937





$

773



$

2,208



$



$



$

2,981



The Landing Resort & Spa



$

3,558





$

(792)



$

761



$



$



$

(31)



The Lexington New York City



$

29,534





$

(3,098)



$

7,085



$

12



$

16



$

4,015



The Lodge at Sonoma Renaissance Resort & Spa



$

11,475





$

1,165



$

1,064



$

558



$



$

2,787



Vail Marriott Mountain Resort & Spa



$

19,880





$

4,923



$

2,025



$



$



$

6,948



Westin Boston Waterfront



$

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



$

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



$

3,500



$

144,280



Less: Frenchman's Reef



$





$

(8,800)



$



$



$



$

(8,800)



Comparable Total



$

460,293





$

60,024



$

58,331



$

13,731



$

3,500



$

135,480







(1)

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

 

Cision View original content:http://www.prnewswire.com/news-releases/diamondrock-hospitality-company-reports-second-quarter-2020-results-301107945.html

SOURCE DiamondRock Hospitality Company

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