DiamondRock Hospitality Company (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 33 premium hotels in the United States, yesterday announced results of operations for the quarter and year ended December 31, 2021.

Fourth Quarter 2021 Highlights

  • Net Loss: Net loss was $2.9 million and loss per diluted share was $0.03.
  • Comparable Revenues: Comparable total revenues were $196.8 million, which represents a 13.3% decline from the comparable period of 2019.
  • Comparable RevPAR: Comparable RevPAR was $158.53, which represents a 12.5% decline from the comparable period of 2019. Comparable ADR increased 7.6% from the comparable period in 2019.
  • Comparable Hotel Adjusted EBITDA: Comparable Hotel Adjusted EBITDA was $43.1 million, a 33.1% decline from the comparable period of 2019.
  • Adjusted EBITDA: Adjusted EBITDA was $34.4 million.
  • Adjusted FFO: Adjusted FFO was $19.1 million and Adjusted FFO per diluted share was $0.09.
  • Hotel Acquisition: The Company acquired the Henderson Beach Resort in Destin, Florida for $112.5 million on December 23, 2021.
  • Mortgage Loan Extension: The Company executed a one year extension of the mortgage loan secured by the Salt Lake City Marriott, which takes the maturity of this loan to January 2023.

Full Year 2021 Highlights

  • Net Loss: Net loss was $195.4 million and loss per diluted share was $0.96.
  • Comparable Revenues: Comparable total revenues were $611.7 million, which represents a 33.5% decline from the comparable period of 2019.
  • Comparable RevPAR: Comparable RevPAR was $124.74, which represents a 32.6% decline from the comparable period of 2019. Comparable ADR increased 2.4% from the comparable period in 2019.
  • Comparable Hotel Adjusted EBITDA: Comparable Hotel Adjusted EBITDA was $129.1 million, a $144.1 million decline from the comparable period of 2019.
  • Adjusted EBITDA: Adjusted EBITDA was $83.5 million.
  • Adjusted FFO: Adjusted FFO was $26.3 million and Adjusted FFO per diluted share was $0.12.
  • Liquidity: The Company ended 2021 with $441.3 million total liquidity. The Company has remained cash flow positive at the hotel level since March 2021.
  • Capital Recycling Transactions: Completed six transactions to recycle $220 million from low-yield, encumbered, capital-intensive properties into $293 million of high-quality, unencumbered, independent hotels and resorts.

Recent Developments

  • Hotel Acquisition: The Company acquired the Tranquility Bay Beachfront Resort in Marathon, Florida for $63.0 million on January 6, 2022.
  • Hotel Brand Conversions: The Company completed the conversion of the Bethesda Marriott Suites to the Embassy Suites by Hilton Bethesda in February 2022. The Company is currently completing renovations to rebrand the JW Marriott Denver Cherry Creek as Hotel Clio, a Luxury Collection Hotel at the end of the first quarter of 2022.
  • Loan Amendments: The Company executed further amendments to the credit agreements for its $400 million revolving credit facility and $400 million in unsecured term loans to extend the waiver of financial covenants through the first quarter of 2022 and the modification of certain financial covenants through the second quarter of 2023.

"The results for 2021 far exceeded our original expectations with Comparable Total RevPAR within 1.5% of 2019 levels in December.  Our strategic decision over 7 years ago to pivot to destination resorts and lifestyle hotels has paid off as those properties have collectively exceeded prior peak revenues from robust leisure demand.  Gateway hotels improved as well but due to restraints on corporate travel their best days lie ahead. Forward bookings into 2022 were strong, although the Omicron variant likely delayed the emerging business and group recovery by a few months," said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. "We are particularly proud of the $500 million in transformative real estate transactions completed over the last year.  These transactions are expected to add an incremental $20 million of Hotel Adjusted EBITDA in 2022 and continue to build the Company's resort and urban lifestyle hotel portfolio, which now comprises over 60% of the Company's hotels."

Operating Results

Quarter Ended December 31,

Change From

2021

2020

2019

2020

2019

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

Comparable Operating Results (1)

ADR

$            259.63

$            208.13

$            241.25

24.7%

7.6%

Occupancy

61.1%

23.7%

75.1%

37.4%

(14.0)%

RevPAR

$            158.53

$              49.41

$            181.27

220.8%

(12.5)%

Total RevPAR

$            228.81

$              77.28

$            264.12

196.1%

(13.4)%

Revenues

$              196.8

$                66.5

$              227.1

195.9%

(13.3)%

Hotel Adjusted EBITDA

$                43.1

$                 (4.5)

$                64.4

1057.8%

(33.1)%

Hotel Adjusted EBITDA Margin

21.90%

(6.79)%

28.37%

2,869 bps

(647) bps

Available Rooms

860,108

859,833

859,740

275

368

Actual Operating Results (2)

Revenues

$              189.9

$                59.0

$              237.5

221.9%

(20.0)%

Net (loss) income

$                 (2.9)

$             (208.3)

$              134.6

98.6%

(102.2)%

(Loss) income per diluted share

$               (0.03)

$               (1.04)

$                0.66

97.1%

(104.5)%

Adjusted EBITDA

$                34.4

$               (14.9)

$                62.7

330.9%

(45.1)%

Adjusted FFO

$                19.1

$                 (8.3)

$                54.7

330.1%

(65.1)%

Adjusted FFO per diluted share

$                0.09

$               (0.04)

$                0.27

325.0%

(66.7)%

Year Ended December 31,

Change From

2021

2020

2019

2020

2019

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

Comparable Operating Results (1)

ADR

$            243.71

$            216.83

$            238.10

12.4%

2.4%

Occupancy

51.2%

28.2%

77.7%

23.0%

(26.5)%

RevPAR

$            124.74

$              61.19

$            184.95

103.9%

(32.6)%

Total RevPAR

$            179.28

$              94.91

$            269.75

88.9%

(33.5)%

Revenues

$              611.7

$              324.7

$              919.8

88.4%

(33.5)%

Hotel Adjusted EBITDA

$              129.1

$               (21.5)

$              273.2

700.5%

(52.7)%

Hotel Adjusted EBITDA Margin

21.10%

(6.61)%

29.70%

2,771 bps

(860) bps

Available Rooms

3,412,176

3,420,783

3,409,885

(8,607)

2,291

Actual Operating Results (2)

Revenues

$              567.1

$              299.5

$              938.1

89.3%

(39.5)%

Net (loss) income

$             (195.4)

$             (396.0)

$              184.2

50.7%

(206.1)%

(Loss) income per diluted share

$               (0.96)

$               (1.97)

$                0.90

51.3%

(206.7)%

Adjusted EBITDA

$                83.5

$               (64.5)

$              260.4

229.5%

(67.9)%

Adjusted FFO

$                26.3

$               (85.3)

$              217.0

130.8%

(87.9)%

Adjusted FFO per diluted share

$                0.12

$               (0.42)

$                1.07

128.6%

(88.8)%

(1)  

The amounts for all periods presented does not adjust for hotels that had suspended operations.  The amounts for all

periods presented also include pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to

July 28, 2021, Henderson Park Inn from January 1, 2019 to July 29, 2021 and Henderson Beach Resort from

January 1, 2019 to December 22, 2021.  The pre-acquisition operating results were obtained from the sellers of the hotels

during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller.

The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.

(2) 

Actual operating results include the operating results of hotels acquired and disposed of for the Company's respective ownership periods.

The following tables provide comparable monthly operating information for the year ended December 31, 2021(1):

January

2021

February 

2021

March

2021

April 

2021

May

2021

June

2021

Number of Hotels

32

32

32

32

32

32

Number of Rooms

9,349

9,349

9,349

9,349

9,349

9,349

Occupancy

21.3%

29.2%

36.5%

39.4%

47.8%

59.5%

ADR

$193.61

$217.42

$241.35

$236.06

$232.30

$233.32

RevPAR

$41.18

$63.43

$88.08

$92.89

$111.00

$138.76

Total RevPAR

$63.14

$95.47

$126.23

$137.95

$164.37

$195.40

2021 vs 2019

Occupancy change in bps

(4,184) bps

(4,490) bps

(4,241) bps

(4,179) bps

(3,244) bps

(2,621) bps

ADR Rate % change

(3.4)%

0.6%

1.2%

(3.7)%

(8.8)%

(7.4)%

RevPAR % change

(67.4)%

(60.4)%

(53.2)%

(53.3)%

(45.7)%

(35.7)%

Total RevPAR % change

(67.8)%

(61.1)%

(54.4)%

(52.2)%

(45.8)%

(37.2)%

July

2021

August 

2021

September

2021

 October

2021

November

2021

December

2021

Number of Hotels

32

32

32

32

32

32

Number of Rooms

9,349

9,349

9,349

9,349

9,349

9,349

Occupancy

70.0%

63.5%

62.5%

66.7%

60.2%

56.3%

ADR

$253.06

$234.00

$249.61

$267.90

$238.98

$271.21

RevPAR

$177.06

$148.52

$155.90

$178.63

$143.93

$152.56

Total RevPAR

$244.78

$209.30

$222.31

$254.23

$210.57

$221.05

2021 vs 2019

Occupancy change in bps

(1,232) bps

(1,794) bps

(1,744) bps

(1,483) bps

(1,495) bps

(1,247) bps

ADR Rate % change

8.6%

3.7%

(3.0)%

1.6%

5.2%

18.2%

RevPAR % change

(7.7)%

(19.1)%

(24.2)%

(16.9)%

(15.7)%

(3.3)%

Total RevPAR % change

(9.3)%

(19.3)%

(24.4)%

(18.9)%

(17.1)%

(1.5)%

(1) 

The amounts for all periods presented exclude the two hotels sold during 2021, Frenchman's Reef and The Lexington Hotel and does not adjust for hotels that had

suspended operations.  The amounts for all periods presented also include pre-acquisition operating results for Bourbon Orleans Hotel, Henderson Park Inn and

Henderson Beach Resort.  The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have

made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent

auditors.

As a result of the spike in COVID-19 cases from the Omicron variant, we expect the change in total revenues and Hotel Adjusted EBITDA margins as compared to 2019 will be softer in the first quarter of 2022 than in the fourth quarter of 2021. Preliminary January 2022 total revenues are expected to be up 126% compared to January 2021 and down approximately 23% compared to January 2019.  January 2022 ADR is expected to be higher than 2019 by approximately 20%, but is offset by a 22-point decrease in occupancy due to the impact on demand from Omicron. The monthly sequential comparison to 2019 for portfolio total revenue is expected to increase for the balance of the first quarter 2022.

Hotel Acquisitions

The Company completed four acquisitions during 2021 and early 2022, which have shifted the Company's portfolio to almost two-thirds leisure-oriented hotels and resorts. 

  • Bourbon Orleans Hotel (New Orleans, Louisiana): This 220-room independent boutique lifestyle hotel, located at the heart of the French Quarter, was acquired in July 2021 for $89.9 million or a 7.0% capitalization rate on 2019 hotel net operating income ("NOI").
  • Henderson Park Inn (Destin, Florida): This 37-room beachfront resort Henderson Park Inn was acquired in July 2021 for $27.5 million. The resort has exceeded the Company's initial underwriting and generated a 9.0% yield on 2021 hotel NOI.
  • Henderson Beach Resort (Destin, Florida): This 170-room recently constructed luxury oceanfront resort was purchased in December 2021 for $112.5 million. The purchase price represents a 6.4% yield on 2021 hotel NOI and is expected to stabilize above an 8.0% yield.
  • Tranquility Bay Beachfront Resort (Marathon, Florida): This 103-unit luxury beachfront resort was purchased in January 2022 for $63.0 million. The resort has a total of 231 bedrooms in 87 two-bedroom and three-bedroom beach houses, as well as 16 tropical garden guest rooms. The purchase price represents an 11.6% yield on 2021 hotel NOI.

Loan Amendments

On December 27, 2021, the Company extended its only near-term debt maturity, the mortgage loan secured by the Salt Lake City Marriott, to January 2023.

On February 4, 2022, the Company further amended the credit agreements for its $400 million revolving credit facility and $400 million in unsecured term loans to extend the waiver period for the testing of financial covenants from December 31, 2021 to March 31, 2022, unless terminated early at the Company's option. The amendments also extend the modification of certain financial covenants, once quarterly testing resumes, to June 30, 2023.  The amendments also provide the Company with the ability to acquire up to $550 million of unencumbered properties upon certain conditions.

Capital Expenditures

The Company invested approximately $44.5 million on capital improvements at its hotels during the year ended December 31, 2021.  In addition, the Company spent approximately $2.7 million on the rebuild of Frenchman's Reef during the year ended December 31, 2021, but has no further obligation to fund any additional amounts related to the rebuild following the sale of the property on April 30, 2021.  Significant projects in 2021 include the following:

  • The Lodge at Sonoma: The Company completed a renovation to reposition and rebrand the hotel to an Autograph Collection Hotel in July of 2021. The renovation includes a new restaurant by celebrity chef Michael Mina.
  • The Hythe Vail, a Luxury Collection Resort: The Company completed the final phase of a multi-year renovation to rebrand the Vail Marriott Mountain Resort as The Hythe Vail, a Luxury Collection Resort, in the fourth quarter of 2021.
  • Margaritaville Beach House Key West: The Company converted the Barbary Beach House Key West to the Margaritaville Beach Resort Key West in the fourth quarter of 2021.

The Company expects to spend approximately $100 million on capital improvements at its hotels in 2022, which includes the completion of certain projects that commenced in 2021. Significant projects in 2022 include the following:

  • JW Marriott Denver Cherry Creek: The Company is completing renovations to rebrand the hotel as Hotel Clio, a Luxury Collection Hotel at the end of the first quarter of 2022.
  • Hilton Boston Downtown/Faneuil Hall: The Company expects to commence a comprehensive renovation and repositioning of the hotel commencing in the fourth quarter of 2022. The hotel's franchise agreement expires in 2023.
  • Orchards Inn Sedona: The Company expects to commence the first phase of the upgrade renovation of the resort in mid-2022.
  • Hilton Burlington Lake Champlain: The Company expects to complete a renovation of the hotel to rebrand it as a Curio Collection Hotel in late 2022. The renovation is expected to include a new restaurant concept by a local renowned chef.

Balance Sheet and Liquidity

As of December 31, 2021, the Company's liquidity was $441.3 million, comprised of $38.6 million of unrestricted corporate cash, $92.7 million of unrestricted cash at its hotels and $310.0 million of capacity on its senior unsecured credit facility.  As of December 31, 2021, the Company had $1.1 billion of total debt outstanding, which consisted of $580.5 million of property-specific, non-recourse mortgage debt, $400.0 million of unsecured term loans and $90.0 million of outstanding borrowings on its $400.0 million senior unsecured credit facility.  Subsequent to December 31, 2021, the Company drew an additional $70.0 million on its senior unsecured credit facility to fund the Tranquility Bay Beachfront Resort acquisition.  

Dividends

The Company declared a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock to shareholders of record as of December 20, 2021.  This dividend was paid on December 31, 2021.  The Company has suspended its quarterly common stock cash dividends. The resumption in quarterly common dividends will be determined by the Company's Board of Directors after considering the Company's obligations under its various financing agreements, projected taxable income, compliance with its debt covenants, long-term operating projections, expected capital requirements and risks affecting the Company's business.

About the Company

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets.  The Company currently owns 33 premium quality hotels with over 9,400 rooms.

 

DIAMONDROCK HOSPITALITY COMPANY

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

 

December 31, 2021

December 31, 2020

ASSETS

(unaudited)

Property and equipment, net

$                  2,651,444

$                 2,817,356

Right-of-use assets

100,212

96,673

Restricted cash

36,887

23,050

Due from hotel managers

120,671

69,495

Prepaid and other assets

17,472

28,403

Cash and cash equivalents

38,620

111,796

Total assets

$                  2,965,306

$                 3,146,773

LIABILITIES AND EQUITY

Liabilities:

Mortgage and other debt, net of unamortized debt issuance costs

$                      578,651

$                    595,149

Unsecured term loans, net of unamortized debt issuance costs

398,572

398,550

Senior unsecured credit facility

90,000

55,000

Total debt

1,067,223

1,048,699

Lease liabilities

108,605

104,973

Deferred rent

60,800

56,344

Due to hotel managers

85,493

95,548

Unfavorable contract liabilities, net

62,780

64,796

Accounts payable and accrued expenses

51,238

46,542

Deferred income related to key money, net

8,203

10,946

Total liabilities

1,444,342

1,427,848

Equity:

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

    8.250% Series A Cumulative Redeemable Preferred Stock (liquidation

preference $25.00 per share), 4,760,000 shares issued and outstanding at

December 31, 2021 and 2020

48

48

Common stock, $0.01 par value; 400,000,000 shares authorized; 210,746,895

and 210,073,514  shares issued and outstanding at December 31, 2021 and

2020, respectively

2,107

2,101

Additional paid-in capital

2,293,990

2,285,491

Deficit

(780,931)

(576,531)

Total stockholders' equity

1,515,214

1,711,109

Noncontrolling interests

5,750

7,816

Total equity

1,520,964

1,718,925

Total liabilities and equity

$                  2,965,306

$                 3,146,773

 

DIAMONDROCK HOSPITALITY COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

 

Three Months Ended December 31,

Year Ended December 31,

2021

2020

2021

2020

Revenues:

Rooms

$               133,004

$                 38,670

$               399,055

$              196,736

Food and beverage

41,690

12,037

117,742

68,566

Other

15,240

8,340

50,337

34,186

Total revenues

189,934

59,047

567,134

299,488

Operating Expenses:

Rooms

34,447

14,015

102,183

68,603

Food and beverage

31,704

12,546

89,795

58,391

Management fees

3,694

934

10,208

3,578

Franchise fees

6,472

1,729

18,665

10,131

Other hotel expenses

73,610

41,872

240,818

213,631

Depreciation and amortization

25,754

27,319

102,963

114,716

Impairment losses

—

174,120

126,697

174,120

Corporate expenses

8,762

7,751

32,552

27,401

Business interruption insurance income

(705)

(2,208)

(705)

(2,208)

Total operating expenses, net

183,738

278,078

723,176

668,363

Interest and other income, net

(487)

(449)

(947)

(391)

Interest expense

7,797

10,330

37,043

53,995

  Total other expenses, net

7,310

9,881

36,096

53,604

Loss before income taxes

(1,114)

(228,912)

(192,138)

(422,479)

Income tax (expense) benefit

(1,834)

20,599

(3,267)

26,452

Net loss

(2,948)

(208,313)

(195,405)

(396,027)

Less:  Net loss attributable to noncontrolling

interests

9

871

821

1,652

Net loss attributable to the Company

(2,939)

(207,442)

(194,584)

(394,375)

Distributions to preferred stockholders

(2,455)

(2,455)

(9,817)

(3,300)

Net loss attributable to common

stockholders

$                  (5,394)

$             (209,897)

$             (204,401)

$            (397,675)

Loss per share:

Net loss per share available to common

stockholders - basic

$                    (0.03)

$                    (1.04)

$                    (0.96)

$                   (1.97)

Net loss per share available to common

stockholders - diluted

$                    (0.03)

$                    (1.04)

$                    (0.96)

$                   (1.97)

Weighted-average number of common

shares outstanding:

Basic

212,323,852

203,684,881

212,056,923

201,670,721

Diluted

212,323,852

203,684,881

212,056,923

201,670,721

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 December 31,

2021

2020

2019

Net (loss) income

$                (2,948)

$           (208,313)

$             134,583

Interest expense

7,797

10,330

8,320

Income tax expense (benefit)

1,834

(20,599)

20,089

Real estate related depreciation and amortization

25,754

27,319

30,305

EBITDA

32,437

(191,263)

193,297

Impairment losses

—

174,120

—

EBITDAre

32,437

(17,143)

193,297

Non-cash lease expense and other amortization

1,666

1,737

1,765

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

$                       —

594

9,079

Hotel manager transition items

—

27

2,708

Uninsured costs related to natural disasters (2)

111

—

—

Gain on property insurance settlement

—

—

(144,192)

Severance costs (3)

179

(112)

—

Adjusted EBITDA

$               34,393

$             (14,897)

$               62,657

Year Ended December 31,

2021

2020

2019

Net (loss) income

$           (195,405)

$           (396,027)

$             184,211

Interest expense

37,043

53,995

46,584

Income tax expense (benefit)

3,267

(26,452)

22,028

Real estate related depreciation and amortization

102,963

114,716

118,110

EBITDA

(52,132)

(253,768)

370,933

Impairment losses

126,697

174,120

—

EBITDAre

74,565

(79,648)

370,933

Non-cash lease expense and other amortization

6,673

6,910

7,013

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

1,388

1,012

20,524

Hotel manager transition items

651

(434)

3,758

Uninsured costs related to natural disasters (2)

298

—

—

Gain on property insurance settlement

—

—

(144,192)

Loss on early extinguishment of debt

—

—

2,373

Severance costs (3)

(37)

7,648

—

Adjusted EBITDA

$               83,538

$             (64,512)

$             260,409

(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) 

Represents costs incurred at the Bourbon Orleans Hotel as a result of Hurricane Ida, which are not covered by insurance.

(3) 

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 December 31,

2021

2020

2019

Net (loss) income

$                (2,948)

$           (208,313)

$            134,583

Interest expense

7,797

10,330

8,320

Income tax expense (benefit)

1,834

(20,599)

20,089

Real estate related depreciation and amortization

25,754

27,319

30,305

EBITDA

32,437

(191,263)

193,297

Corporate expenses

8,762

7,751

7,446

Interest and other income, net

(487)

(449)

(687)

Uninsured costs related to natural disasters (1)

111

—

—

Professional fees and pre-opening costs related to Frenchman's Reef (2)

—

594

9,079

Impairment losses

—

174,120

—

Gain on property insurance settlement

—

—

(144,192)

Hotel EBITDA

40,823

(9,247)

64,943

Non-cash lease expense and other amortization

1,666

1,737

1,765

Hotel manager transition items

—

27

2,708

Severance costs (3)

179

(112)

—

Hotel Adjusted EBITDA

$               42,668

$                (7,595)

$              69,416

Year Ended December 31,

2021

2020

2019

Net (loss) income

$           (195,405)

$           (396,027)

$            184,211

Interest expense

37,043

53,995

46,584

Income tax expense (benefit)

3,267

(26,452)

22,028

Real estate related depreciation and amortization

102,963

114,716

118,110

EBITDA

(52,132)

(253,768)

370,933

Corporate expenses

32,552

27,401

28,231

Interest and other income, net

(947)

(391)

(1,197)

Uninsured costs related to natural disasters (1)

298

—

—

Loss on early extinguishment of debt

—

—

2,373

Professional fees and pre-opening costs related to Frenchman's Reef (2)

1,388

1,012

20,524

Impairment losses

126,697

174,120

—

Gain on property insurance settlement

—

—

(144,192)

Hotel EBITDA

107,856

(51,626)

276,672

Non-cash lease expense and other amortization

6,673

6,910

7,013

Hotel manager transition items

651

(434)

3,758

Severance costs (3)

(37)

7,648

—

Hotel Adjusted EBITDA

$             115,143

$             (37,502)

$            287,443

(1)

Represents costs incurred at the Bourbon Orleans Hotel as a result of Hurricane Ida, which are not covered by insurance.

(2)

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.

(3) 

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 December 31,

2021

2020

2019

Net (loss) income

$                (2,948)

$           (208,313)

$             134,583

Real estate related depreciation and amortization

25,754

27,319

30,305

Impairment losses, net of tax

—

174,120

—

FFO

22,806

(6,874)

164,888

Distribution to preferred stockholders

(2,455)

(2,455)

—

FFO available to common stock and unit holders

20,351

(9,329)

164,888

Non-cash lease expense and other amortization

1,666

1,737

1,765

Uninsured costs related to natural disasters (1)

111

—

—

Professional fees and pre-opening costs related to Frenchman's Reef  (2)

—

594

9,079

Hotel manager transition items

—

27

2,708

Gain on property insurance settlement, net of income tax

—

—

(121,525)

Severance costs (3)

179

(112)

—

Fair value adjustments to interest rate swaps

(3,202)

(1,257)

(2,245)

Adjusted FFO available to common stock and unit holders

$               19,105

$                (8,340)

$               54,670

Adjusted FFO available to common stock and unit holders, per

diluted share

$                   0.09

$                  (0.04)

$                   0.27

Year Ended December 31,

2021

2020

2019

Net (loss) income

$           (195,405)

$           (396,027)

$             184,211

Real estate related depreciation and amortization

102,963

114,716

118,110

Impairment losses, net of tax

127,282

174,120

—

FFO

34,840

(107,191)

302,321

Distribution to preferred stockholders

(9,817)

(3,300)

—

FFO available to common stock and unit holders

25,023

(110,491)

302,321

Non-cash lease expense and other amortization

6,673

6,910

7,013

Uninsured costs related to natural disasters (1)

298

—

—

Professional fees and pre-opening costs related to Frenchman's Reef (2)

1,388

1,012

20,524

Hotel manager transition items

651

(434)

3,758

Gain on property insurance settlement, net of income tax

—

—

(121,525)

Loss on early extinguishment of debt

—

—

2,373

Severance costs (3)

(37)

7,648

—

Fair value adjustments to interest rate swaps

(7,690)

10,072

2,545

Adjusted FFO available to common stock and unit holders

$               26,306

$             (85,283)

$             217,009

Adjusted FFO available to common stock and unit holders, per

diluted share

$                   0.12

$                  (0.42)

$                   1.07

(1) 

Represents costs incurred at the Bourbon Orleans Hotel as a result of Hurricane Ida, which are not covered by insurance.

(2) 

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.

(3)  

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 our 2021 dispositions (in thousands):         

Three Months Ended December 31,

2021

2020

2019

Revenues

$       189,934

$         59,047

$       237,519

Hotel revenues from prior ownership (1)

6,867

7,477

10,570

Hotel revenues from sold hotels (2)

—

(73)

(21,013)

Comparable Revenues

$       196,801

$         66,451

$       227,076

Hotel Adjusted EBITDA

$         42,668

$          (7,595)

$         69,416

Hotel Adjusted EBITDA from prior ownership (1)

429

11

1,147

Hotel Adjusted EBITDA from sold hotels (2)

12

3,069

(6,148)

Comparable Hotel Adjusted EBITDA

$         43,109

$          (4,515)

$         64,415

Hotel Adjusted EBITDA Margin

22.46%

(12.86)%

29.23%

Comparable Hotel Adjusted EBITDA Margin

21.90%

(6.79)%

28.37%

Year Ended December 31,

2021

2020

2019

Revenues

$       567,134

$       299,488

$       938,091

Hotel revenues from prior ownership (1)

44,664

34,095

50,618

Hotel revenues from sold hotels (2)

(60)

(8,930)

(68,886)

Comparable Revenues

$       611,738

$       324,653

$       919,823

Hotel Adjusted EBITDA

$       115,143

$        (37,502)

$       287,443

Hotel Adjusted EBITDA from prior ownership (1)

9,248

2,902

9,685

Hotel Adjusted EBITDA from sold hotels (2)

4,675

13,148

(23,904)

Comparable Hotel Adjusted EBITDA

$       129,066

$        (21,452)

$       273,224

Hotel Adjusted EBITDA Margin

20.30%

(12.52)%

30.64%

Comparable Hotel Adjusted EBITDA Margin

21.10%

(6.61)%

29.70%

(1) 

Amounts represent the pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021,  Henderson Park Inn from January 1, 2019 to July 29, 2021 and Henderson Beach Resort from January 1, 2019 to December 22, 2021.  The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.

(2) 

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

Selected Quarterly Comparable Operating Information

The following tables are presented to provide investors with selected quarterly comparable operating information.  The operating information includes historical quarterly operating results for our 33-hotel portfolio owned as of the date of this press release.

Quarter 1, 2019

Quarter 2, 2019

Quarter 3, 2019

Quarter 4, 2019

Full Year 2019

ADR

$          223.66

$          252.68

$          239.39

$          242.68

$          240.10

Occupancy

72.2%

82.4%

81.2%

75.2%

77.8%

RevPAR

$          161.44

$          208.24

$          194.40

$          182.52

$          186.73

Total RevPAR

$          242.88

$          302.81

$          274.93

$          265.26

$          271.55

Revenues (in thousands)

$        206,370

$        260,230

$        238,977

$        230,571

$        936,148

Hotel Adjusted EBITDA (in thousands)

$          50,975

$          89,310

$          72,411

$          65,196

$        277,892

Hotel Adjusted EBITDA Margin

24.70%

34.32%

30.30%

28.28%

29.68%

Available Rooms

849,674

859,374

869,216

869,216

3,447,480

Quarter 1, 2020

Quarter 2, 2020

Quarter 3, 2020

Quarter 4, 2020

Full Year 2020

ADR

$          223.79

$          207.25

$           229.07

$           215.43

$           221.58

Occupancy

58.5%

9.9%

21.9%

24.4%

28.7%

RevPAR

$          130.96

$            20.61

$             50.10

$             52.62

$             63.51

Total RevPAR

$          202.29

$            31.96

$             75.53

$             81.12

$             97.62

Revenues (in thousands)

$        173,931

$          27,486

$           65,669

$           70,519

$         337,605

Hotel Adjusted EBITDA (in thousands)

$          22,943

$         (27,075)

$          (10,644)

$           (3,460)

$            (18,236)

Hotel Adjusted EBITDA Margin

13.19%

(98.50)%

(16.21)%

(4.91)%

(5.40)%

Available Rooms

859,819

859,950

869,403

869,309

3,458,481

Quarter 1, 2021

Quarter 2, 2021

Quarter 3, 2021

Quarter 4, 2021

Full Year 2021

ADR

$           236.48

$          241.35

$          249.83

$          265.54

$          250.62

Occupancy

29.6%

49.3%

65.4%

61.2%

51.5%

RevPAR

$             70.08

$          119.00

$          163.45

$          162.47

$          129.10

Total RevPAR

$           101.74

$          171.53

$          228.71

$          233.25

$          184.30

Revenues (in thousands)

$           86,534

$        147,537

$        198,885

$        202,826

$        635,782

Hotel Adjusted EBITDA (in thousands)

$             2,156

$          35,956

$          53,472

$          45,017

$        136,601

Hotel Adjusted EBITDA Margin

2.49%

24.37%

26.89%

22.19%

21.49%

Available Rooms

850,500

860,103

869,584

869,584

3,449,771

Market Capitalization as of December 31, 2021

(in thousands)

Enterprise Value

Common equity capitalization (at December 31, 2021 closing price of $9.61/share)

$              2,061,681

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

119,000

Consolidated debt (face amount)

1,070,504

Cash and cash equivalents

(38,620)

Total enterprise value

$              3,212,565

Share Reconciliation

Common shares outstanding

210,747

Operating partnership units

775

Unvested restricted stock held by management and employees

1,433

Share grants under deferred compensation plan

1,580

Combined shares and units

214,535

Debt Summary as of December 31, 2021

(dollars in thousands)

Loan

Interest Rate as of

December 31, 2021

Term

Outstanding

Principal

Maturity

Salt Lake City Marriott Downtown at City Creek

LIBOR + 3.25 (1)

Variable

43,570

January 2023

Westin Washington D.C. City Center

3.99%

Fixed

55,913

January 2023

The Lodge at Sonoma Resort

3.96%

Fixed

25,542

April 2023

Westin San Diego Downtown

3.94%

Fixed

58,600

April 2023

Courtyard New York Manhattan / Midtown East

4.40%

Fixed

77,882

August 2024

Worthington Renaissance Fort Worth Hotel

3.66%

Fixed

77,453

May 2025

JW Marriott Denver Cherry Creek

4.33%

Fixed

58,789

July 2025

Westin Boston Seaport District

4.36%

Fixed

182,755

November 2025

     Unamortized debt issuance costs

(1,853)

Total mortgage and other debt, net of unamortized

debt issuance costs

578,651

Unsecured term loan

LIBOR + 2.40% (2)

Variable

350,000

July 2024

Unsecured term loan

LIBOR + 2.40% (3)

Fixed

50,000

October 2023

     Unamortized debt issuance costs

(1,428)

Unsecured term loans, net of unamortized debt

issuance costs

398,572

Senior unsecured credit facility

LIBOR + 2.55% (4)

Variable

90,000

July 2023 (5)

Total debt, net of unamortized debt issuance costs

$    1,067,223

Weighted-average interest rate of fixed rate debt

4.25%

Total weighted-average interest rate

3.88%

(1)

LIBOR is subject to a floor of 1.0%.

(2)

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.  LIBOR is subject to a floor of 0.25%.

(3)

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

(4)

LIBOR is subject to a floor of 0.25%. 

(5)

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

Monthly Operating Statistics (1)

Number

of Rooms

ADR

Occupancy

RevPAR

October

2021

October

2020

B/(W) 2020

October

2021

October

2020

B/(W) 2020

October

2021

October

2020

B/(W) 2020

Total - 32 Hotels

9,349

$         267.90

$         211.45

26.7%

66.7%

28.3%

38.4%

$         178.63

$          59.85

198.5%

Resorts - 15 Hotels

2,686

$         385.55

$         297.65

29.5%

64.7%

46.0%

18.7%

$         249.28

$         136.78

82.2%

     

Number

of Rooms

October

2021

October

2019

B/(W) 2019

October

2021

October

2019

B/(W) 2019

October

2021

October

2019

B/(W) 2019

Total - 32 Hotels

9,349

$         267.90

$         263.80

1.6%

66.7%

81.5%

(14.8)%

$         178.63

$         215.02

(16.9)%

Resorts - 15 Hotels

2,686

$         385.55

$         277.19

39.1%

64.7%

70.2%

(5.5)%

$         249.28

$         194.66

28.1%

     

Number

of Rooms

November

2021

November

2020

B/(W) 2020

November

2021

November

2020

B/(W) 2020

November

2021

November

2020

B/(W) 2020

Total - 32 Hotels

9,349

$         238.98

$         200.72

19.1%

60.2%

20.6%

39.6%

$         143.93

$          41.40

247.7%

Resorts - 15 Hotels

2,686

$         343.61

$         275.94

24.5%

59.9%

35.5%

24.4%

$         205.89

$          97.92

110.3%

     

Number

of Rooms

November

2021

November

2019

B/(W) 2019

November

2021

November

2019

B/(W) 2019

November

2021

November

2019

B/(W) 2019

Total - 32 Hotels

9,349

$         238.98

$         227.12

5.2%

60.2%

75.2%

(15.0)%

$         143.93

$         170.76

(15.7)%

Resorts - 15 Hotels

2,686

$         343.61

$         249.71

37.6%

59.9%

69.9%

(10.0)%

$         205.89

$         174.48

18.0%

Number

of Rooms

December

2021

December

2020

B/(W) 2020

December

2021

December

2020

B/(W) 2020

December

2021

December

2020

B/(W) 2020

Total - 32 Hotels

9,349

$         271.21

$         210.58

28.8%

56.3%

22.2%

34.1%

$         152.56

$          46.73

226.5%

Resorts - 15 Hotels

2,686

$         411.23

$         297.37

38.3%

64.1%

37.9%

26.2%

$         263.42

$         112.59

134.0%

   

Number

of Rooms

December

2021

December

2019

B/(W) 2019

December

2021

December

2019

B/(W) 2019

December

2021

December

2019

B/(W) 2019

Total - 32 Hotels

9,349

$         271.21

$         229.47

18.2%

56.3%

68.7%

(12.4)%

$         152.56

$         157.69

(3.3)%

Resorts - 15 Hotels

2,686

$         411.23

$         295.62

39.1%

64.1%

67.2%

(3.1)%

$         263.42

$         198.70

32.6%

 (1) 

All periods presented include the pre-acquisition operating results of the three hotels acquired in 2021 and exclude the two hotels sold in 2021.

Operating Statistics – Fourth Quarter

Number

of Rooms

ADR

Occupancy

RevPAR

4Q 2021

4Q 2020

B/(W) 2020

4Q 2021

4Q 2020

B/(W) 2020

4Q 2021

4Q 2020

B/(W) 2020

Atlanta Marriott Alpharetta

318

$         127.04

$           92.73

37.0%

43.9%

16.1%

27.8%

$          55.71

$          14.95

272.6%

Bethesda Marriott Suites

272

$         118.24

$         104.53

13.1%

46.3%

17.5%

28.8%

$          54.70

$          18.28

199.2%

Bourbon Orleans Hotel

218

$         240.42

$                —

100.0%

54.9%

—%

54.9%

$        132.04

$               —

100.0%

Cavallo Point, The Lodge at the Golden Gate

142

$         688.59

$         545.66

26.2%

58.1%

26.1%

32.0%

$        400.33

$        142.43

181.1%

Chicago Marriott Downtown Magnificent Mile

1,200

$         201.94

$         132.34

52.6%

49.2%

6.9%

42.3%

$          99.41

$            9.13

988.8%

Courtyard Denver Downtown

177

$         167.00

$           96.36

73.3%

61.5%

28.6%

32.9%

$        102.73

$          27.60

272.2%

Courtyard New York Manhattan/Fifth Avenue

189

$         251.62

$                —

100.0%

94.1%

—%

94.1%

$        236.81

$               —

100.0%

Courtyard New York Manhattan/Midtown East

321

$         285.50

$         118.55

140.8%

81.3%

31.6%

49.7%

$        232.12

$          37.40

520.6%

Havana Cabana Key West

106

$         290.90

$         183.60

58.4%

87.5%

73.9%

13.6%

$        254.45

$        135.65

87.6%

Henderson Beach Resort (1)

216

$         437.94

$         243.42

79.9%

55.9%

27.6%

28.3%

$        244.88

$          67.22

264.3%

Henderson Park Inn

37

$         530.83

$         433.09

22.6%

76.6%

81.5%

(4.9)%

$        406.38

$        353.06

15.1%

Hilton Boston Downtown/Faneuil Hall

403

$         225.47

$         128.66

75.2%

81.8%

16.1%

65.7%

$        184.42

$          20.71

790.5%

Hilton Burlington Lake Champlain

258

$         253.04

$         165.57

52.8%

64.9%

25.4%

39.5%

$        164.34

$          42.13

290.1%

Hilton Garden Inn New York/Times Square Central

282

$         252.83

$                —

100.0%

95.0%

—%

95.0%

$        240.11

$               —

100.0%

Hotel Emblem San Francisco

96

$         168.26

$         140.34

19.9%

62.8%

12.3%

50.5%

$        105.66

$          17.27

511.8%

Hotel Palomar Phoenix

242

$         197.76

$         135.59

45.9%

68.2%

36.4%

31.8%

$        134.95

$          49.30

173.7%

JW Marriott Denver Cherry Creek

199

$         272.93

$         205.28

33.0%

69.6%

33.9%

35.7%

$        190.06

$          69.55

173.3%

Kimpton Shorebreak Resort

157

$         277.50

$         221.69

25.2%

69.6%

46.6%

23.0%

$        193.06

$        103.40

86.7%

L'Auberge de Sedona

88

$      1,120.22

$         867.12

29.2%

77.4%

79.5%

(2.1)%

$        867.42

$        689.44

25.8%

Margaritaville Beach House Key West

186

$         386.14

$         245.65

57.2%

83.0%

47.6%

35.4%

$        320.61

$        116.92

174.2%

Orchards Inn Sedona

70

$         350.14

$         284.85

22.9%

77.6%

67.8%

9.8%

$        271.58

$        193.25

40.5%

Renaissance Charleston Historic District Hotel

167

$         332.51

$         197.41

68.4%

88.2%

64.8%

23.4%

$        293.43

$        127.92

129.4%

Salt Lake City Marriott Downtown at City Creek

510

$         157.49

$         103.83

51.7%

43.4%

23.3%

20.1%

$          68.33

$          24.20

182.4%

The Gwen Hotel

311

$         265.16

$         167.49

58.3%

71.0%

17.7%

53.3%

$        188.28

$          29.70

533.9%

The Hythe Vail, a Luxury Collection Resort

344

$         480.03

$         315.63

52.1%

43.0%

32.7%

10.3%

$        206.53

$        103.22

100.1%

The Landing Lake Tahoe Resort & Spa

82

$         472.96

$         329.56

43.5%

29.9%

53.6%

(23.7)%

$        141.19

$        176.70

(20.1)%

The Lodge at Sonoma Resort

182

$         396.54

$         235.20

68.6%

66.7%

27.2%

39.5%

$        264.58

$          64.02

313.3%

Westin Boston Waterfront

793

$         224.12

$         128.55

74.3%

62.5%

12.6%

49.9%

$        140.09

$          16.18

765.8%

Westin Fort Lauderdale Beach Resort

433

$         257.68

$         174.35

47.8%

60.7%

38.8%

21.9%

$        156.33

$          67.70

130.9%

Westin San Diego Downtown

436

$         163.59

$         135.51

20.7%

56.1%

25.4%

30.7%

$          91.76

$          34.42

166.6%

Westin Washington D.C. City Center

410

$         171.38

$         119.32

43.6%

40.5%

7.7%

32.8%

$          69.43

$            9.17

657.1%

Worthington Renaissance Fort Worth Hotel

504

$         172.91

$         143.19

20.8%

60.6%

33.5%

27.1%

$        104.70

$          47.97

118.3%

Comparable Total (2)

9,349

$         259.63

$         208.13

24.7%

61.1%

23.7%

37.4%

$         158.53

$          49.41

220.8%

Resorts - 15 Hotels

2,686

$         381.70

$         290.80

31.3%

63.9%

39.3%

24.6%

$         244.05

$        114.19

113.7%

(1)

Hotel was acquired on December 23, 2021.  Amounts reflect the operating results for the period from December 23, 2021 to December 31, 2021 and December 23, 2020 to December 31, 2020.

(2)

Amounts include the pre-acquisition operating results of the three hotels acquired in 2021 and exclude the two hotels sold in 2021.

       

Operating Statistics – Fourth Quarter

Number

of Rooms

ADR

Occupancy

RevPAR

4Q 2021

4Q 2019

B/(W) 2019

4Q 2021

4Q 2019

B/(W) 2019

4Q 2021

4Q 2019

B/(W) 2019

Atlanta Marriott Alpharetta

318

$         127.04

$         160.31

(20.8)%

43.9%

65.9%

(22.0)%

$           55.71

$         105.72

(47.3)%

Bethesda Marriott Suites

272

$         118.24

$         171.89

(31.2)%

46.3%

71.4%

(25.1)%

$           54.70

$         122.69

(55.4)%

Bourbon Orleans Hotel

218

$         240.42

$         224.82

6.9%

54.9%

80.5%

(25.6)%

$         132.04

$         181.06

(27.1)%

Cavallo Point, The Lodge at the Golden Gate

142

$         688.59

$         490.30

40.4%

58.1%

63.5%

(5.4)%

$         400.33

$         311.28

28.6%

Chicago Marriott Downtown Magnificent Mile

1,200

$         201.94

$         231.59

(12.8)%

49.2%

74.0%

(24.8)%

$           99.41

$         171.27

(42.0)%

Courtyard Denver Downtown

177

$         167.00

$         189.47

(11.9)%

61.5%

70.7%

(9.2)%

$         102.73

$         133.97

(23.3)%

Courtyard New York Manhattan/Fifth Avenue

189

$         251.62

$         289.47

(13.1)%

94.1%

92.1%

2.0%

$         236.81

$         266.52

(11.1)%

Courtyard New York Manhattan/Midtown East

321

$         285.50

$         310.44

(8.0)%

81.3%

97.5%

(16.2)%

$         232.12

$         302.61

(23.3)%

Havana Cabana Key West

106

$         290.90

$         212.18

37.1%

87.5%

88.1%

(0.6)%

$         254.45

$         186.96

36.1%

Henderson Beach Resort (1)

216

$         437.94

$         212.53

106.1%

55.9%

27.0%

28.9%

$         244.88

$           57.37

326.8%

Henderson Park Inn

37

$         530.83

$         397.77

33.5%

76.6%

65.7%

10.9%

$         406.38

$         261.29

55.5%

Hilton Boston Downtown/Faneuil Hall

403

$         225.47

$         278.31

(19.0)%

81.8%

87.3%

(5.5)%

$         184.42

$         243.07

(24.1)%

Hilton Burlington Lake Champlain

258

$         253.04

$         181.60

39.3%

64.9%

79.2%

(14.3)%

$         164.34

$         143.81

14.3%

Hilton Garden Inn New York/Times Square Central

282

$         252.83

$         311.91

(18.9)%

95.0%

99.1%

(4.1)%

$         240.11

$         309.21

(22.3)%

Hotel Emblem San Francisco

96

$         168.26

$         244.13

(31.1)%

62.8%

84.0%

(21.2)%

$         105.66

$         204.96

(48.4)%

Hotel Palomar Phoenix

242

$         197.76

$         192.45

2.8%

68.2%

82.8%

(14.6)%

$         134.95

$         159.40

(15.3)%

JW Marriott Denver Cherry Creek

199

$         272.93

$         239.49

14.0%

69.6%

77.0%

(7.4)%

$         190.06

$         184.42

3.1%

Kimpton Shorebreak Resort

157

$         277.50

$         229.55

20.9%

69.6%

68.2%

1.4%

$         193.06

$         156.62

23.3%

L'Auberge de Sedona

88

$      1,120.22

$         724.32

54.7%

77.4%

76.5%

0.9%

$         867.42

$         553.98

56.6%

Margaritaville Beach House Key West

186

$         386.14

$         262.62

47.0%

83.0%

57.9%

25.1%

$         320.61

$         152.03

110.9%

Orchards Inn Sedona

70

$         350.14

$         268.22

30.5%

77.6%

69.4%

8.2%

$         271.58

$         186.13

45.9%

Renaissance Charleston Historic District Hotel

167

$         332.51

$         272.57

22.0%

88.2%

85.0%

3.2%

$         293.43

$         231.57

26.7%

Salt Lake City Marriott Downtown at City Creek

510

$         157.49

$         168.38

(6.5)%

43.4%

65.5%

(22.1)%

$           68.33

$         110.37

(38.1)%

The Gwen Hotel

311

$         265.16

$         265.22

—%

71.0%

83.9%

(12.9)%

$         188.28

$         222.61

(15.4)%

The Hythe Vail, a Luxury Collection Resort

344

$         480.03

$         342.90

40.0%

43.0%

51.5%

(8.5)%

$         206.53

$         176.63

16.9%

The Landing Lake Tahoe Resort & Spa

82

$         472.96

$         327.30

44.5%

29.9%

50.9%

(21.0)%

$         141.19

$         166.60

(15.3)%

The Lodge at Sonoma Resort

182

$         396.54

$         302.54

31.1%

66.7%

71.9%

(5.2)%

$         264.58

$         217.47

21.7%

Westin Boston Waterfront

793

$         224.12

$         244.57

(8.4)%

62.5%

74.6%

(12.1)%

$         140.09

$         182.36

(23.2)%

Westin Fort Lauderdale Beach Resort

433

$         257.68

$         197.38

30.6%

60.7%

84.2%

(23.5)%

$         156.33

$         166.20

(5.9)%

Westin San Diego Downtown

436

$         163.59

$         175.45

(6.8)%

56.1%

69.9%

(13.8)%

$           91.76

$         122.63

(25.2)%

Westin Washington D.C. City Center

410

$         171.38

$         205.91

(16.8)%

40.5%

84.4%

(43.9)%

$           69.43

$         173.78

(60.0)%

Worthington Renaissance Fort Worth Hotel

504

$         172.91

$         185.65

(6.9)%

60.6%

71.8%

(11.2)%

$         104.70

$         133.25

(21.4)%

Comparable Total (2)

9,349

$         259.63

$         241.25

7.6%

61.1%

75.1%

(14.0)%

$         158.53

$         181.27

(12.5)%

Resorts - 15 Hotels

2,686

$         381.70

$         275.66

38.5%

63.9%

71.5%

(7.6)%

$         244.05

$         197.03

23.9%

(1)

Hotel was acquired on December 23, 2021.  Amounts reflect the operating results for the period from December 23, 2021 to December 31, 2021 and December 23, 2019 to December 31, 2019.

(2)

Comparable total includes the pre-acquisition operating results of the three hotels acquired in 2021 and excludes the two hotels sold in 2021.       

 

Operating Statistics – Year to Date

Number

of Rooms

ADR

Occupancy

RevPAR

YTD 2021

YTD 2020

B/(W) 2020

YTD 2021

YTD 2020

B/(W) 2020

YTD 2021

YTD 2020

B/(W) 2020

Atlanta Marriott Alpharetta

318

$         113.77

$         142.88

(20.4)%

44.9%

21.9%

23.0%

$           51.14

$           31.24

63.7%

Bethesda Marriott Suites

272

$         113.93

$         141.72

(19.6)%

34.6%

22.0%

12.6%

$           39.37

$           31.25

26.0%

Bourbon Orleans Hotel (1)

218

$         219.19

$                 —

100.0%

55.3%

—%

55.3%

$         121.25

$                —

100.0%

Cavallo Point, The Lodge at the Golden Gate

142

$         652.13

$         489.27

33.3%

45.5%

24.8%

20.7%

$         296.95

$         121.25

144.9%

Chicago Marriott Downtown Magnificent Mile

1,200

$         197.29

$         159.81

23.5%

31.2%

12.9%

18.3%

$           61.53

$           20.58

199.0%

Courtyard Denver Downtown

177

$         156.54

$         130.23

20.2%

60.0%

27.4%

32.6%

$           93.99

$           35.74

163.0%

Courtyard New York Manhattan/Fifth Avenue

189

$         211.93

$         206.17

2.8%

54.3%

15.3%

39.0%

$         115.08

$           31.57

264.5%

Courtyard New York Manhattan/Midtown East

321

$         201.68

$         145.67

38.4%

76.9%

55.6%

21.3%

$         155.12

$           80.98

91.6%

Havana Cabana Key West

106

$         285.74

$         209.96

36.1%

90.2%

60.1%

30.1%

$         257.78

$         126.27

104.1%

Henderson Park Resort (2)

216

$         437.94

$         243.42

79.9%

55.9%

27.6%

28.3%

$         244.88

$           67.22

264.3%

Henderson Park Inn (3)

37

$         575.63

$         486.33

18.4%

82.8%

84.4%

(1.6)%

$         476.67

$         410.38

16.2%

Hilton Boston Downtown/Faneuil Hall

403

$         204.39

$         174.04

17.4%

60.2%

23.5%

36.7%

$         122.97

$           40.82

201.2%

Hilton Burlington Lake Champlain

258

$         236.55

$         154.13

53.5%

60.8%

21.8%

39.0%

$         143.78

$           33.65

327.3%

Hilton Garden Inn New York/Times Square Central

282

$         204.33

$         154.35

32.4%

57.0%

19.1%

37.9%

$         116.51

$           29.54

294.4%

Hotel Emblem San Francisco

96

$         158.29

$         222.62

(28.9)%

44.5%

23.5%

21.0%

$           70.38

$           52.42

34.3%

Hotel Palomar Phoenix

242

$         169.73

$         179.93

(5.7)%

58.8%

35.0%

23.8%

$           99.73

$           62.97

58.4%

JW Marriott Denver Cherry Creek

199

$         261.17

$         215.70

21.1%

63.9%

34.1%

29.8%

$         166.79

$           73.63

126.5%

Kimpton Shorebreak Resort

157

$         311.01

$         234.09

32.9%

66.9%

52.6%

14.3%

$         208.15

$         123.14

69.0%

L'Auberge de Sedona

88

$         920.04

$         672.88

36.7%

80.0%

64.2%

15.8%

$         736.34

$         432.27

70.3%

Margaritaville Beach House Key West

186

$         384.58

$         272.86

40.9%

84.6%

43.6%

41.0%

$         325.51

$         118.88

173.8%

Orchards Inn Sedona

70

$         304.71

$         231.35

31.7%

71.8%

50.5%

21.3%

$         218.91

$         116.87

87.3%

Renaissance Charleston Historic District Hotel

167

$         308.52

$         203.60

51.5%

81.5%

47.5%

34.0%

$         251.36

$           96.79

159.7%

Salt Lake City Marriott Downtown at City Creek

510

$         145.42

$         144.88

0.4%

43.3%

23.0%

20.3%

$           63.04

$           33.33

89.1%

The Gwen Hotel

311

$         251.51

$         189.46

32.8%

54.3%

25.5%

28.8%

$         136.68

$           48.29

183.0%

The Hythe Vail, a Luxury Collection Resort

344

$         356.33

$         354.89

0.4%

45.2%

33.7%

11.5%

$         161.20

$         119.48

34.9%

The Landing Lake Tahoe Resort & Spa

82

$         484.40

$         384.80

25.9%

45.0%

49.7%

(4.7)%

$         217.76

$         191.20

13.9%

The Lodge at Sonoma Resort

182

$         360.12

$         239.40

50.4%

59.2%

29.2%

30.0%

$         213.28

$           69.95

204.9%

Westin Boston Waterfront

793

$         196.14

$         182.76

7.3%

44.6%

19.0%

25.6%

$           87.51

$           34.73

152.0%

Westin Fort Lauderdale Beach Resort

433

$         242.16

$         212.84

13.8%

60.3%

41.8%

18.5%

$         146.01

$           88.96

64.1%

Westin San Diego Downtown

436

$         159.11

$         168.15

(5.4)%

52.5%

35.7%

16.8%

$           83.49

$           60.04

39.1%

Westin Washington D.C. City Center

410

$         150.37

$         176.61

(14.9)%

29.5%

19.6%

9.9%

$           44.34

$           34.65

28.0%

Worthington Renaissance Fort Worth Hotel

504

$         155.68

$         168.14

(7.4)%

53.6%

29.9%

23.7%

$           83.37

$           50.31

65.7%

Comparable Total (4)

9,349

$         243.71

$         216.83

12.4%

51.2%

28.2%

23.0%

$         124.74

$           61.19

103.9%

Resorts - 15 Hotels

2,686

$         353.06

$         288.03

22.6%

62.9%

38.5%

24.4%

$         222.09

$         110.81

100.4%

(1)

Hotel was acquired on July 29, 2021.  Amounts reflect the operating results for the period from July 29, 2021 to December 31, 2021 and July 29, 2020 to December 31, 2020.

(2)

Hotel was acquired on December 23, 2021. Amounts reflect the operating results for the period from December 23, 2021 to December 31, 2021 and December 23, 2020 to December 31, 2020.

(3)

Hotel was acquired on July 30, 2021.  Amounts reflect the operating results for the period from July 30, 2021 to December 31, 2021 and July 30, 2020 to December 31, 2020.

(4)

Comparable total includes the pre-acquisition operating results of the three hotels acquired in 2021 and excludes the two hotels sold in 2021.          

Operating Statistics – Year to Date

Number

of Rooms

ADR

Occupancy

RevPAR

YTD 2021

YTD 2019

B/(W) 2019

YTD 2021

YTD 2019

B/(W) 2019

YTD 2021

YTD 2019

B/(W) 2019

Atlanta Marriott Alpharetta

318

$         113.77

$         165.41

(31.2)%

44.9%

71.0%

(26.1)%

$           51.14

$         117.46

(56.5)%

Bethesda Marriott Suites

272

$         113.93

$         175.72

(35.2)%

34.6%

72.6%

(38.0)%

$           39.37

$         127.58

(69.1)%

Bourbon Orleans Hotel (1)

218

$         219.19

$         211.19

3.8%

55.3%

79.2%

(23.9)%

$         121.25

$         167.23

(27.5)%

Cavallo Point, The Lodge at the Golden Gate

142

$         652.13

$         466.43

39.8%

45.5%

64.8%

(19.3)%

$         296.95

$         302.02

(1.7)%

Chicago Marriott Downtown Magnificent Mile

1,200

$         197.29

$         227.32

(13.2)%

31.2%

73.0%

(41.8)%

$           61.53

$         165.98

(62.9)%

Courtyard Denver Downtown

177

$         156.54

$         198.23

(21.0)%

60.0%

78.4%

(18.4)%

$           93.99

$         155.50

(39.6)%

Courtyard New York Manhattan/Fifth Avenue

189

$         211.93

$         259.33

(18.3)%

54.3%

88.1%

(33.8)%

$         115.08

$         228.35

(49.6)%

Courtyard New York Manhattan/Midtown East

321

$         201.68

$         261.60

(22.9)%

76.9%

96.1%

(19.2)%

$         155.12

$         251.32

(38.3)%

Havana Cabana Key West

106

$         285.74

$         210.68

35.6%

90.2%

89.7%

0.5%

$         257.78

$         189.07

36.3%

Henderson Beach Resort (2)

216

$         437.94

$         212.53

106.1%

55.9%

27.0%

28.9%

$         244.88

$           57.37

326.8%

Henderson Park Inn (3)

37

$         575.63

$         448.08

28.5%

82.8%

73.4%

9.4%

$         476.67

$         329.12

44.8%

Hilton Boston Downtown/Faneuil Hall

403

$         204.39

$         301.21

(32.1)%

60.2%

88.5%

(28.3)%

$         122.97

$         266.64

(53.9)%

Hilton Burlington Lake Champlain

258

$         236.55

$         190.61

24.1%

60.8%

81.1%

(20.3)%

$         143.78

$         154.50

(6.9)%

Hilton Garden Inn New York/Times Square Central

282

$         204.33

$         255.13

(19.9)%

57.0%

98.6%

(41.6)%

$         116.51

$         251.68

(53.7)%

Hotel Emblem San Francisco

96

$         158.29

$         241.09

(34.3)%

44.5%

80.2%

(35.7)%

$           70.38

$         193.28

(63.6)%

Hotel Palomar Phoenix

242

$         169.73

$         187.43

(9.4)%

58.8%

82.7%

(23.9)%

$           99.73

$         155.00

(35.7)%

JW Marriott Denver Cherry Creek

199

$         261.17

$         253.48

3.0%

63.9%

72.4%

(8.5)%

$         166.79

$         183.45

(9.1)%

Kimpton Shorebreak Resort

157

$         311.01

$         259.74

19.7%

66.9%

76.0%

(9.1)%

$         208.15

$         197.50

5.4%

L'Auberge de Sedona

88

$         920.04

$         627.73

46.6%

80.0%

78.1%

1.9%

$         736.34

$         489.99

50.3%

Margaritaville Beach House Key West

186

$         384.58

$         260.28

47.8%

84.6%

74.8%

9.8%

$         325.51

$         194.70

67.2%

Orchards Inn Sedona

70

$         304.71

$         249.86

22.0%

71.8%

75.6%

(3.8)%

$         218.91

$         188.99

15.8%

Renaissance Charleston Historic District Hotel

167

$         308.52

$         263.88

16.9%

81.5%

84.2%

(2.7)%

$         251.36

$         222.23

13.1%

Salt Lake City Marriott Downtown at City Creek

510

$         145.42

$         172.21

(15.6)%

43.3%

68.5%

(25.2)%

$           63.04

$         117.88

(46.5)%

The Gwen Hotel

311

$         251.51

$         258.98

(2.9)%

54.3%

83.5%

(29.2)%

$         136.68

$         216.13

(36.8)%

The Hythe Vail, a Luxury Collection Resort

344

$         356.33

$         307.45

15.9%

45.2%

62.1%

(16.9)%

$         161.20

$         190.86

(15.5)%

The Landing Lake Tahoe Resort & Spa

82

$         484.40

$         322.45

50.2%

45.0%

61.7%

(16.7)%

$         217.76

$         198.80

9.5%

The Lodge at Sonoma Resort

182

$         360.12

$         308.37

16.8%

59.2%

73.7%

(14.5)%

$         213.28

$         227.27

(6.2)%

Westin Boston Waterfront

793

$         196.14

$         249.76

(21.5)%

44.6%

77.4%

(32.8)%

$           87.51

$         193.34

(54.7)%

Westin Fort Lauderdale Beach Resort

433

$         242.16

$         202.58

19.5%

60.3%

82.4%

(22.1)%

$         146.01

$         166.99

(12.6)%

Westin San Diego Downtown

436

$         159.11

$         190.09

(16.3)%

52.5%

79.0%

(26.5)%

$           83.49

$         150.12

(44.4)%

Westin Washington D.C. City Center

410

$         150.37

$         206.61

(27.2)%

29.5%

86.3%

(56.8)%

$           44.34

$         178.26

(75.1)%

Worthington Renaissance Fort Worth Hotel

504

$         155.68

$         186.10

(16.3)%

53.6%

74.5%

(20.9)%

$           83.37

$         138.67

(39.9)%

Comparable Total (4)

9,349

$         243.71

$         238.10

2.4%

51.2%

77.7%

(26.5)%

$         124.74

$         184.95

(32.6)%

Resorts - 15 Hotels

2,686

$         353.06

$         273.02

29.3%

62.9%

75.5%

(12.6)%

$         222.09

$         206.20

7.7%

(1)

Hotel was acquired on July 29, 2021.  Amounts reflect the operating results for the period from July 29, 2021 to December 31, 2021 and July 29, 2019 to December 31, 2019.

(2)

Hotel was acquired on December 23, 2021.  Amounts reflect the operating results for the period from December 23, 2021 to December 31, 2021 and December 23, 2019 to December 31, 2019.

(3)

Hotel was acquired on July 30, 2021.  Amounts reflect the operating results for the period from July 30, 2021 to December 31, 2021 and July 30, 2019 to December 31, 2019.

(4)

Comparable total includes the pre-acquisition operating results of the two hotels acquired in 2021 and excludes the two hotels sold in 2021.   

Hotel Adjusted EBITDA Reconciliation

Fourth Quarter 2021

Days of

Operation

Net Income /

(Loss)

Plus:

Plus:

Plus:

Equals: Hotel

Adjusted EBITDA

Total Revenues

Depreciation

Interest Expense

Adjustments (1)

Atlanta Marriott Alpharetta

92

$                   2,466

$                        472

$                      337

$                         —

$                         —

$                       809

Bethesda Marriott Suites

92

$                   1,778

$                   (2,224)

$                      546

$                         —

$                    1,489

$                      (189)

Bourbon Orleans Hotel

92

$                   3,306

$                        361

$                      807

$                         —

$                           7

$                    1,175

Cavallo Point, The Lodge at the Golden Gate

92

$                 11,833

$                     1,756

$                   1,884

$                         —

$                         94

$                    3,734

Chicago Marriott Downtown Magnificent Mile

92

$                 16,085

$                   (2,764)

$                   4,063

$                           6

$                     (397)

$                       908

Courtyard Denver Downtown

92

$                   1,995

$                        298

$                      377

$                         —

$                         —

$                       675

Courtyard New York Manhattan/Fifth Avenue

92

$                   4,232

$                      (575)

$                      331

$                         —

$                       253

$                           9

Courtyard New York Manhattan/Midtown East

92

$                   7,077

$                        174

$                      501

$                       929

$                         —

$                    1,604

Frenchman's Reef & Morning Star Marriott Beach Resort

—

$                        —

$                          —

$                        —

$                         —

$                         —

$                         —

Havana Cabana Key West

92

$                   3,288

$                     1,039

$                      268

$                         —

$                         —

$                   1,307

Henderson Beach Resort

9

$                      788

$                        212

$                        —

$                         —

$                         —

$                      212

Henderson Park Inn

92

$                   1,864

$                        414

$                      214

$                         —

$                         —

$                      628

Hilton Boston Downtown/Faneuil Hall

92

$                   7,600

$                     1,160

$                   1,057

$                         —

$                         —

$                   2,217

Hilton Burlington Lake Champlain

92

$                   4,703

$                     1,156

$                      569

$                         —

$                         —

$                   1,725

Hilton Garden Inn New York/Times Square Central

92

$                   6,391

$                        650

$                      641

$                         —

$                         —

$                   1,291

Hotel Emblem San Francisco

92

$                   1,172

$                      (409)

$                      307

$                         —

$                         —

$                     (102)

Hotel Palomar Phoenix

92

$                   5,303

$                       716

$                      671

$                         —

$                       282

$                   1,669

JW Marriott Denver Cherry Creek

92

$                   5,683

$                      (226)

$                      786

$                       661

$                           5

$                   1,226

Kimpton Shorebreak Resort

92

$                   4,248

$                       673

$                      410

$                         —

$                         —

$                   1,083

L'Auberge de Sedona

92

$                   9,894

$                    2,886

$                      417

$                         —

$                         —

$                   3,303

Margaritaville Beach House Key West

92

$                   6,697

$                    1,797

$                      745

$                         —

$                         —

$                   2,542

Orchards Inn Sedona

92

$                   2,793

$                       762

$                        86

$                         —

$                         42

$                      890

Renaissance Charleston Historic District Hotel

92

$                   5,638

$                    1,787

$                      460

$                         —

$                         —

$                   2,247

Salt Lake City Marriott Downtown at City Creek

92

$                   4,861

$                         13

$                      508

$                       513

$                         11

$                   1,045

The Gwen Hotel

92

$                   7,860

$                   (1,111)

$                   1,088

$                         —

$                         —

$                       (23)

The Hythe Vail, a Luxury Collection Resort

92

$                   8,210

$                          (2)

$                   1,144

$                         —

$                         —

$                   1,142

The Landing Lake Tahoe Resort & Spa

92

$                   1,816

$                       578

$                      428

$                         —

$                         —

$                   1,006

The Lexington Hotel

—

$                        —

$                        (12)

$                        —

$                         —

$                         —

$                       (12)

The Lodge at Sonoma Resort

92

$                   6,857

$                       754

$                      624

$                       268

$                         —

$                   1,646

Westin Boston Seaport District

92

$                 15,547

$                  (2,344)

$                   2,490

$                    2,083

$                     (122)

$                   2,107

Westin Fort Lauderdale Beach Resort

92

$                 13,144

$                    1,848

$                   1,083

$                         —

$                         —

$                   2,931

Westin San Diego Downtown

92

$                   4,904

$                     (398)

$                      801

$                       600

$                         —

$                   1,003

Westin Washington D.C. City Center

92

$                   3,289

$                  (1,902)

$                   1,003

$                       611

$                         —

$                     (288)

Worthington Renaissance Fort Worth Hotel

92

$                   8,612

$                    1,287

$                   1,108

$                       748

$                           2

$                   3,145

Total

$               189,934

$                    8,826

$                 25,754

$                    6,419

$                    1,666

$                  42,668

Prior Ownership Results (2)

$                   6,867

$                      (647)

$                   1,076

$                         —

$                         —

$                       429

Less: Sold Hotels (3)

$                        —

$                         12

$                        —

$                         —

$                         —

$                         12

Comparable Total

$               196,801

$                    8,191

$                 26,830

$                    6,419

$                    1,666

$                  43,109

(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.

(2)

Amounts represent the pre-acquisition operating results of the Henderson Beach Resort from October 1, 2021 to December 22, 2021.

(3)

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

Hotel Adjusted EBITDA Reconciliation

Fourth Quarter 2020

Days of

Operation

Total Revenues

Net Income /

(Loss)

Depreciation

 

Plus:

Interest Expense

 

Plus:

Adjustments (1)

 

Equals: Hotel

Adjusted EBITDA

Atlanta Marriott Alpharetta

92

$                      534

$                     (782)

$                      355

$                         —

$                         —

$                     (427)

Bethesda Marriott Suites

92

$                      526

$                  (2,668)

$                      518

$                         —

$                    1,503

$                     (647)

Cavallo Point, The Lodge at the Golden Gate

92

$                   3,876

$                  (1,968)

$                   1,839

$                         —

$                         94

$                       (35)

Chicago Marriott Downtown Magnificent Mile

92

$                   1,520

$                  (3,966)

$                   4,122

$                         79

$                     (397)

$                     (162)

Courtyard Denver Downtown

92

$                      600

$                     (543)

$                      376

$                         —

$                         —

$                     (167)

Courtyard New York Manhattan/Fifth Avenue

—

$                        45

$                  (1,909)

$                      330

$                         —

$                       253

$                  (1,326)

Courtyard New York Manhattan/Midtown East

92

$                   1,122

$                  (3,483)

$                      473

$                       948

$                         —

$                  (2,062)

Frenchman's Reef & Morning Star Marriott Beach Resort

—

$                         —

$                         —

$                         —

$                         —

$                         —

$                         —

Havana Cabana Key West

92

$                   1,920

$                       199

$                      266

$                         —

$                         —

$                      465

Hilton Boston Downtown/Faneuil Hall

92

$                   1,178

$                  (2,228)

$                   1,200

$                         —

$                         —

$                  (1,028)

Hilton Burlington Lake Champlain

92

$                      928

$                     (700)

$                      638

$                         —

$                         —

$                       (62)

Hilton Garden Inn New York/Times Square Central

—

$                     (104)

$                  (2,347)

$                      844

$                         —

$                         —

$                  (1,503)

Hotel Emblem San Francisco

92

$                      184

$                     (858)

$                      309

$                         —

$                         —

$                     (549)

Hotel Palomar Phoenix

92

$                   1,845

$                     (899)

$                      672

$                         28

$                       286

$                        87

JW Marriott Denver Cherry Creek

92

$                   2,247

$                  (1,734)

$                      789

$                       675

$                           6

$                     (264)

Kimpton Shorebreak Resort

92

$                   2,216

$                     (109)

$                      410

$                         —

$                         —

$                      301

L'Auberge de Sedona

92

$                   7,897

$                   2,856

$                      646

$                         —

$                         —

$                   3,502

Margaritaville Beach House Key West

92

$                   2,624

$                      391

$                      171

$                         —

$                         —

$                      562

Orchards Inn Sedona

92

$                   1,749

$                      529

$                        85

$                         —

$                         42

$                      656

Renaissance Charleston Historic District Hotel

92

$                   2,301

$                      115

$                      460

$                         —

$                         —

$                      575

Salt Lake City Marriott Downtown at City Creek

92

$                   1,623

$                  (1,345)

$                      548

$                       533

$                         —

$                     (264)

The Gwen Hotel

92

$                   1,320

$                  (1,625)

$                   1,097

$                         —

$                         —

$                     (528)

The Hythe Vail, a Luxury Collection Resort

92

$                   4,835

$                         (4)

$                   1,110

$                         —

$                         —

$                   1,106

The Landing Lake Tahoe Resort & Spa

92

$                   1,999

$                       (29)

$                      416

$                         —

$                         —

$                      387

The Lexington Hotel

—

$                        73

$                  (5,060)

$                   1,977

$                           6

$                           8

$                  (3,069)

The Lodge at Sonoma Resort

92

$                   2,005

$                  (1,414)

$                      507

$                       273

$                         —

$                     (634)

Westin Boston Seaport District

92

$                   2,269

$                  (5,260)

$                   2,552

$                    2,128

$                       (60)

$                     (640)

Westin Fort Lauderdale Beach Resort

92

$                   6,041

$                  (1,051)

$                   1,074

$                          —

$                         —

$                        23

Westin San Diego Downtown

92

$                   1,701

$                  (2,348)

$                   1,076

$                       617

$                         —

$                     (655)

Westin Washington D.C. City Center

92

$                      409

$                  (2,971)

$                   1,319

$                       635

$                         —

$                  (1,017)

Worthington Renaissance Fort Worth Hotel

92

$                   3,564

$                  (2,126)

$                   1,140

$                       765

$                           2

$                     (219)

Total

$                 59,047

$                (43,337)

$                 27,319

$                    6,687

$                    1,737

$                  (7,595)

Add: Prior Ownership Results (2)

$                   7,477

$                  (1,628)

$                   1,639

$                          —

$                         —

$                         11

Less: Sold Hotels (3)

$                       (73)

$                   5,060

$                  (1,977)

$                          (6)

$                         (8)

$                    3,069

Comparable Total

$                 66,451

$                (39,905)

$                 26,981

$                    6,681

$                    1,729

$                  (4,515)

(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.

(2)

Amounts represent the pre-acquisition operating results of the Bourbon Orleans Hotel, Henderson Park Inn and Henderson Beach Resort from October 1, 2020 to December 31, 2020.

(3)

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

Hotel Adjusted EBITDA Reconciliation

Fourth Quarter 2019

Days of

Operation

Total Revenues

Net Income /

(Loss)

 

Plus:

Depreciation

 

Plus:

Interest Expense

 

Plus:

Adjustments (1)

 

Equals: Hotel

Adjusted EBITDA

Atlanta Marriott Alpharetta

92

$                   4,627

$                    1,159

$                      407

$                         —

$                         —

$                   1,566

Bethesda Marriott Suites

92

$                   4,288

$                     (660)

$                      468

$                         —

$                    1,516

$                   1,324

Cavallo Point, The Lodge at the Golden Gate

92

$                 10,010

$                      924

$                   1,814

$                         —

$                         94

$                   2,832

Chicago Marriott Downtown Magnificent Mile

92

$                 29,038

$                   4,750

$                   4,248

$                           5

$                      (397)

$                   8,606

Courtyard Denver Downtown

92

$                   2,425

$                      726

$                      325

$                         —

$                          —

$                   1,051

Courtyard New York Manhattan/Fifth Avenue

92

$                   4,770

$                      545

$                      451

$                         —

$                       253

$                   1,249

Courtyard New York Manhattan/Midtown East

92

$                   9,211

$                   1,385

$                      704

$                       965

$                         —

$                   3,054

Frenchman's Reef & Morning Star Marriott Beach Resort

—

$                         —

$                         —

$                         —

$                         —

$                         —

$                         —

Havana Cabana Key West

92

$                   2,420

$                      412

$                      238

$                         —

$                         —

$                      650

Hilton Boston Downtown/Faneuil Hall

92

$                 10,002

$                   2,660

$                   1,223

$                         —

$                         —

$                   3,883

Hilton Burlington Lake Champlain

92

$                   4,542

$                   1,217

$                      501

$                         —

$                         —

$                   1,718

Hilton Garden Inn New York/Times Square Central

92

$                   8,153

$                   2,185

$                      840

$                         —

$                         —

$                   3,025

Hotel Emblem San Francisco

92

$                   2,254

$                      320

$                      285

$                         —

$                         —

$                      605

Hotel Palomar Phoenix

92

$                   6,693

$                   1,159

$                      681

$                         38

$                       293

$                   2,171

JW Marriott Denver Cherry Creek

92

$                   5,049

$                     (235)

$                      823

$                       688

$                           6

$                   1,282

Kimpton Shorebreak Resort

92

$                   3,661

$                      246

$                      439

$                         —

$                         40

$                      725

L'Auberge de Sedona

92

$                   7,610

$                   1,936

$                      594

$                         —

$                         —

$                   2,530

Margaritaville Beach House Key West

92

$                   2,989

$                     (177)

$                      534

$                         —

$                         —

$                      357

Orchards Inn Sedona

92

$                   1,840

$                      176

$                      238

$                         —

$                         42

$                      456

Renaissance Charleston Historic District Hotel

92

$                   4,172

$                   1,225

$                      423

$                         —

$                       (32)

$                   1,616

Salt Lake City Marriott Downtown at City Creek

92

$                   7,968

$                   1,676

$                      549

$                       603

$                         —

$                   2,828

The Gwen Hotel

92

$                   8,722

$                   1,156

$                   1,157

$                         —

$                         —

$                   2,313

The Hythe Vail, a Luxury Collection Resort

92

$                   8,139

$                      764

$                   1,098

$                         —

$                         —

$                   1,862

The Landing Lake Tahoe Resort & Spa

92

$                   1,904

$                     (176)

$                      411

$                         —

$                         —

$                      235

The Lexington Hotel

92

$                 21,013

$                   2,524

$                   3,610

$                          6

$                           8

$                   6,148

The Lodge at Sonoma Resort

92

$                   5,622

$                      537

$                      505

$                      279

$                         —

$                   1,321

Westin Boston Seaport District

92

$                 22,364

$                      796

$                   2,551

$                   2,171

$                       (60)

$                   5,458

Westin Fort Lauderdale Beach Resort

92

$                 12,746

$                   1,860

$                   1,634

$                        —

$                         —

$                   3,494

Westin San Diego Downtown

92

$                   7,227

$                      170

$                   1,151

$                      633

$                         —

$                   1,954

Westin Washington D.C. City Center

92

$                   8,004

$                      444

$                   1,370

$                      658

$                         —

$                   2,472

Worthington Renaissance Fort Worth Hotel

92

$                 10,056

$                      781

$                   1,033

$                      781

$                           2

$                   2,597

Total

$               237,519

$                 30,485

$                 30,305

$                   6,827

$                    1,765

$                 69,416

Add: Prior Ownership Results (2)

$                 10,570

$                     (492)

$                   1,639

$                         —

$                         —

$                   1,147

Less: Sold Hotels (3)

$               (21,013)

$                  (2,524)

$                  (3,610)

$                         (6)

$                         (8)

$                  (6,148)

Comparable Total

$               227,076

$                 27,469

$                 28,334

$                   6,821

$                    1,757

$                 64,415

(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.

(2)

Amounts represent the pre-acquisition operating results of the Bourbon Orleans Hotel, Henderson Park Inn and Henderson Beach Resort from October 1, 2019 to December 31, 2019.

(3)

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

Hotel Adjusted EBITDA Reconciliation

Year to Date 2021

Days of

Operation

Total Revenues

Net Income /

(Loss)

Plus:

Depreciation

Plus:

Interest Expense

Plus:

Adjustments (1)

Equals: Hotel

Adjusted EBITDA

Atlanta Marriott Alpharetta

365

$                 7,840

$                       164

$                   1,373

$                         —

$                             —

$                   1,537

Bethesda Marriott Suites

365

$                 4,897

$                   (9,707)

$                   2,116

$                         —

$                       5,976

$                  (1,615)

Bourbon Orleans Hotel

156

$                 4,951

$                       270

$                   1,350

$                         —

$                            11

$                   1,631

Cavallo Point, The Lodge at the Golden Gate

365

$               33,511

$                    2,641

$                   7,583

$                         —

$                          375

$                 10,599

Chicago Marriott Downtown Magnificent Mile

263

$               38,629

$                 (13,058)

$                 16,310

$                         59

$                      (1,589)

$                   1,722

Courtyard Denver Downtown

365

$                 7,036

$                       994

$                   1,512

$                         —

$                             —

$                   2,506

Courtyard New York Manhattan/Fifth Avenue

214

$                 8,212

$                   (4,759)

$                   1,317

$                         —

$                       1,014

$                  (2,428)

Courtyard New York Manhattan/Midtown East

365

$               18,617

$                   (5,052)

$                   1,940

$                   3,716

$                             —

$                       604

Frenchman's Reef & Morning Star Marriott Beach Resort

—

$                      —

$                          —

$                        —

$                         —

$                             —

$                         —

Havana Cabana Key West

365

$               13,523

$                    5,028

$                   1,075

$                         —

$                             —

$                   6,103

Henderson Beach Resort

9

$                    788

$                       212

$                        —

$                         —

$                             —

$                      212

Henderson Park Inn

155

$                 3,677

$                    1,110

$                      365

$                         —

$                             —

$                   1,475

Hilton Boston Downtown/Faneuil Hall

365

$               19,999

$                   (1,475)

$                   4,251

$                         —

$                             —

$                   2,776

Hilton Burlington Lake Champlain

365

$               15,188

$                    3,342

$                   2,389

$                         —

$                             —

$                   5,731

Hilton Garden Inn New York/Times Square Central

243

$               12,260

$                   (4,305)

$                   3,086

$                         —

$                             —

$                  (1,219)

Hotel Emblem San Francisco

365

$                 2,971

$                   (2,070)

$                   1,229

$                         —

$                             —

$                     (841)

Hotel Palomar Phoenix

365

$               14,794

$                      (202)

$                   2,697

$                         —

$                       1,133

$                   3,628

JW Marriott Denver Cherry Creek

365

$               19,613

$                   (1,045)

$                   3,137

$                   2,645

$                             19

$                   4,756

Kimpton Shorebreak Resort

365

$               17,349

$                    4,092

$                   1,645

$                         —

$                             —

$                   5,737

L'Auberge de Sedona

365

$               33,791

$                  10,696

$                   1,701

$                         —

$                             —

$                 12,397

Margaritaville Beach House Key West

365

$               27,639

$                  10,845

$                   2,905

$                         —

$                             —

$                 13,750

Orchards Inn Sedona

365

$                 9,285

$                    2,664

$                      332

$                         —

$                          168

$                   3,164

Renaissance Charleston Historic District Hotel

365

$               19,129

$                    5,806

$                   1,838

$                         —

$                             —

$                   7,644

Salt Lake City Marriott Downtown at City Creek

365

$               16,356

$                     (194)

$                   2,064

$                   2,068

$                             32

$                   3,970

The Gwen Hotel

365

$               23,517

$                  (2,022)

$                   4,361

$                         —

$                             —

$                   2,339

The Hythe Vail, a Luxury Collection Resort

365

$               26,393

$                   3,210

$                   4,163

$                         —

$                             —

$                   7,373

The Landing Lake Tahoe Resort & Spa

365

$                 9,844

$                   2,745

$                   1,696

$                         —

$                             —

$                   4,441

The Lexington Hotel

—

$                      60

$                  (6,629)

$                   1,925

$                         13

$                             16

$                  (4,675)

The Lodge at Sonoma Resort

365

$               21,478

$                   1,474

$                   2,253

$                   1,067

$                             —

$                   4,794

Westin Boston Seaport District

365

$               37,211

$                (18,188)

$                 10,097

$                   8,333

$                         (490)

$                     (248)

Westin Fort Lauderdale Beach Resort

365

$               48,956

$                   8,144

$                   4,303

$                         —

$                             —

$                 12,447

Westin San Diego Downtown

365

$               16,676

$                  (2,740)

$                   3,268

$                   2,406

$                             —

$                   2,934

Westin Washington D.C. City Center

365

$                 7,953

$                  (9,528)

$                   4,231

$                   2,459

$                             —

$                  (2,838)

Worthington Renaissance Fort Worth Hotel

365

$               24,991

$                  (2,764)

$                   4,451

$                   2,995

$                               8

$                   4,690

Total

$             567,134

$                (20,301)

$               102,963

$                 25,761

$                       6,673

$               115,143

Add: Prior Ownership Results (2)

$               44,664

$                   3,631

$                   5,617

$                         —

$                             —

$                   9,248

Less: Sold Hotels (2)

$                     (60)

$                   6,629

$                  (1,925)

$                       (13)

$                           (16)

$                   4,675

Comparable Total

$             611,738

$                (10,041)

$               106,655

$                 25,748

$                       6,657

$               129,066

(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.

(2)

 Amounts represent the pre-acquisition operating results of the Bourbon Orleans Hotel from January 1, 2021 to July 28, 2021, Henderson Park Inn from January 1, 2021 to July 29, 2021 and Henderson Beach Resort from January 1, 2021 to December 22, 2021.

(3)

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

Hotel Adjusted EBITDA Reconciliation

Year to Date 2020

Days of

Operation

Total Revenues

Net Income /

(Loss)

 

Plus:

Depreciation

 

Plus:

Interest Expense

 

Plus:

Adjustments (1)

 

Equals:

Hotel Adjusted

EBITDA

Atlanta Marriott Alpharetta

366

$                   5,227

$                  (1,965)

$                   1,446

$                         —

$                         —

$                     (519)

Bethesda Marriott Suites

366

$                   4,081

$                (10,458)

$                   2,245

$                         —

$                   6,024

$                  (2,189)

Cavallo Point, The Lodge at the Golden Gate

267

$                 15,295

$                  (7,731)

$                   7,385

$                         —

$                      375

$                         29

Chicago Marriott Downtown Magnificent Mile

222

$                 15,979

$                (29,941)

$                 16,681

$                      249

$                  (1,589)

$                (14,600)

Courtyard Denver Downtown

293

$                   2,938

$                  (1,710)

$                   1,469

$                         —

$                         —

$                     (241)

Courtyard New York Manhattan/Fifth Avenue

86

$                   2,421

$                  (7,547)

$                   1,441

$                         —

$                   1,014

$                  (5,092)

Courtyard New York Manhattan/Midtown East

366

$                   9,792

$                (10,092)

$                   2,251

$                   3,823

$                         —

$                  (4,018)

Frenchman's Reef & Morning Star Marriott Beach Resort

—

$                         —

$                         —

$                         —

$                         —

$                         —

$                         —

Havana Cabana Key West

296

$                   6,752

$                      567

$                   1,065

$                         —

$                         —

$                   1,632

Hilton Boston Downtown/Faneuil Hall

236

$                   7,767

$                  (7,451)

$                   4,886

$                         —

$                         —

$                  (2,565)

Hilton Burlington Lake Champlain

259

$                   3,760

$                  (3,366)

$                   2,271

$                         —

$                         —

$                  (1,095)

Hilton Garden Inn New York/Times Square Central

88

$                   3,172

$                  (8,689)

$                   3,380

$                         —

$                         —

$                  (5,309)

Hotel Emblem San Francisco

271

$                   2,247

$                  (2,292)

$                   1,271

$                         —

$                         —

$                  (1,021)

Hotel Palomar Phoenix

284

$                   9,881

$                  (2,418)

$                   2,689

$                      144

$                   1,152

$                   1,567

JW Marriott Denver Cherry Creek

295

$                   8,291

$                  (6,934)

$                   2,912

$                   2,706

$                         24

$                  (1,292)

Kimpton Shorebreak Resort

366

$                 10,517

$                      534

$                   1,641

$                         —

$                         27

$                   2,202

L'Auberge de Sedona

366

$                 20,540

$                   3,819

$                   2,646

$                         —

$                         —

$                   6,465

Margaritaville Beach House Key West

296

$                 10,133

$                     (617)

$                   2,198

$                         —

$                         —

$                   1,581

Orchards Inn Sedona

321

$                   4,404

$                      142

$                      462

$                         —

$                      168

$                      772

Renaissance Charleston Historic District Hotel

328

$                   7,403

$                     (617)

$                   1,738

$                         —

$                       (85)

$                   1,036

Salt Lake City Marriott Downtown at City Creek

366

$                 10,289

$                  (3,869)

$                   2,211

$                   2,244

$                         —

$                      586

The Gwen Hotel

295

$                   8,192

$                  (7,415)

$                   4,424

$                         —

$                         —

$                  (2,991)

The Hythe Vail, a Luxury Collection Resort

282

$                 21,247

$                      469

$                   4,457

$                         —

$                         —

$                   4,926

The Landing Lake Tahoe Resort & Spa

292

$                   8,662

$                      874

$                   1,668

$                         —

$                         —

$                   2,542

The Lexington Hotel

88

$                   8,930

$                (24,290)

$                 11,085

$                         25

$                         32

$               (13,148)

The Lodge at Sonoma Resort

264

$                   7,939

$                  (5,573)

$                   1,882

$                   1,095

$                         —

$                  (2,596)

Westin Boston Seaport District

204

$                 19,820

$                (24,453)

$                 10,314

$                   8,533

$                     (240)

$                  (5,846)

Westin Fort Lauderdale Beach Resort

366

$                 29,116

$                      608

$                   4,336

$                         —

$                         —

$                   4,944

Westin San Diego Downtown

366

$                 13,384

$                  (5,731)

$                   4,461

$                   2,478

$                         —

$                   1,208

Westin Washington D.C. City Center

366

$                   6,431

$                (11,290)

$                   5,278

$                   2,560

$                         —

$                  (3,452)

Worthington Renaissance Fort Worth Hotel

366

$                 14,878

$                  (8,616)

$                   4,523

$                   3,067

$                           8

$                  (1,018)

Total

$               299,488

$              (186,052)

$               114,716

$                 26,924

$                   6,910

$                (37,502)

Add: Prior Ownership Results (2)

$                 34,095

$                  (3,652)

$                   6,554

$                         —

$                         —

$                   2,902

Less: Sold Hotels (3)

$                  (8,930)

$                 24,290

$               (11,085)

$                       (25)

$                       (32)

$                 13,148

Comparable Total

$               324,653

$              (165,414)

$               110,185

$                 26,899

$                   6,878

$               (21,452)

(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.

(2)

Amounts represent the pre-acquisition operating results of the Bourbon Orleans Hotel, Henderson Park Inn and Henderson Beach Resort from January 1, 2020 to December 31, 2020.

(3)

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

Hotel Adjusted EBITDA Reconciliation

Year to Date 2019

Days of

Operation

Total Revenues

Net Income /

(Loss)

 

Plus:

Depreciation

 

Plus:

Interest Expense

 

Plus:

Adjustments (1)

 

Equals:

Hotel Adjusted

EBITDA

Atlanta Marriott Alpharetta

365

$                 19,586

$                   5,050

$                   1,796

$                         —

$                         —

$                   6,846

Bethesda Marriott Suites

365

$                 17,339

$                  (2,691)

$                   1,890

$                         —

$                   6,068

$                   5,267

Cavallo Point, The Lodge at the Golden Gate

365

$                 40,610

$                   3,298

$                   7,371

$                         —

$                      315

$                 10,984

Chicago Marriott Downtown Magnificent Mile

365

$               112,262

$                 16,876

$                 16,710

$                       116

$                  (1,589)

$                 32,113

Courtyard Denver Downtown

365

$                 11,306

$                   4,133

$                   1,206

$                         —

$                         —

$                   5,339

Courtyard New York Manhattan/Fifth Avenue

365

$                 16,187

$                        26

$                   1,781

$                         —

$                    1,014

$                   2,821

Courtyard New York Manhattan/Midtown East

365

$                 30,424

$                   1,315

$                   2,781

$                    3,856

$                         —

$                   7,952

Frenchman's Reef & Morning Star Marriott Beach Resort

—

$                         —

$                   8,799

$                         —

$                         —

$                         —

$                   8,799

Havana Cabana Key West

365

$                   9,771

$                   2,447

$                      979

$                         —

$                         —

$                   3,426

Hilton Boston Downtown/Faneuil Hall

365

$                 42,339

$                 11,784

$                   4,931

$                         —

$                         —

$                 16,715

Hilton Burlington Lake Champlain

365

$                 18,572

$                   5,134

$                   2,002

$                         —

$                         —

$                   7,136

Hilton Garden Inn New York/Times Square Central

365

$                 26,375

$                   3,916

$                   3,349

$                         —

$                         —

$                   7,265

Hotel Emblem San Francisco

365

$                   7,904

$                      643

$                   1,153

$                         —

$                         —

$                   1,796

Hotel Palomar Phoenix

365

$                 24,701

$                   3,478

$                   2,671

$                       154

$                    1,177

$                   7,480

JW Marriott Denver Cherry Creek

365

$                 19,429

$                  (1,179)

$                   2,798

$                    2,751

$                         24

$                   4,394

Kimpton Shorebreak Resort

365

$                 17,365

$                   3,832

$                   1,485

$                         —

$                       162

$                   5,479

L'Auberge de Sedona

365

$                 26,868

$                   5,623

$                   2,119

$                         —

$                         —

$                   7,742

Margaritaville Beach House Key West

365

$                 15,895

$                   3,380

$                   1,567

$                         —

$                         —

$                   4,947

Orchards Inn Sedona

365

$                   7,730

$                   1,061

$                      951

$                         —

$                       168

$                   2,180

Renaissance Charleston Historic District Hotel

365

$                 15,738

$                   4,663

$                   1,665

$                         —

$                     (126)

$                   6,202

Salt Lake City Marriott Downtown at City Creek

365

$                 31,554

$                   6,796

$                   2,228

$                    2,421

$                         —

$                 11,445

The Gwen Hotel

365

$                 34,431

$                   5,185

$                   4,442

$                         —

$                         —

$                   9,627

The Hythe Vail, a Luxury Collection Resort

365

$                 36,128

$                   6,827

$                   4,133

$                         —

$                         —

$                 10,960

The Landing Lake Tahoe Resort & Spa

365

$                   9,522

$                      118

$                   1,590

$                         —

$                         —

$                   1,708

The Lexington Hotel

365

$                 68,886

$                      745

$                 14,305

$                         23

$                         32

$                 15,105

The Lodge at Sonoma Resort

365

$                 24,645

$                   3,771

$                   2,076

$                    1,119

$                         —

$                   6,966

Westin Boston Seaport District

365

$                 93,355

$                   7,082

$                   9,817

$                    8,677

$                     (240)

$                 25,336

Westin Fort Lauderdale Beach Resort

365

$                 50,992

$                   9,083

$                   6,487

$                         —

$                         —

$                 15,570

Westin San Diego Downtown

365

$                 33,560

$                   4,939

$                   4,548

$                    2,534

$                         —

$                 12,021

Westin Washington D.C. City Center

365

$                 33,242

$                   2,518

$                   5,319

$                    2,643

$                         —

$                 10,480

Worthington Renaissance Fort Worth Hotel

365

$                 41,375

$                   6,378

$                   3,960

$                    3,120

$                           8

$                 13,466

Total

$               938,091

$               135,030

$               118,110

$                  27,414

$                    7,013

$               287,443

Add: Prior Ownership Results (2)

$                 50,618

$                   3,131

$                   6,554

$                         —

$                         —

$                   9,685

Less: Sold Hotels (3)

$               (68,886)

$                  (9,544)

$               (14,305)

$                       (23)

$                       (32)

$                (23,904)

Comparable Total

$               919,823

$               128,617

$               110,359

$                  27,391

$                    6,981

$               273,224

(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.

(2)

Amounts represent the pre-acquisition operating results of the Bourbon Orleans Hotel, Henderson Park Inn and Henderson Beach Resort from January 1, 2019 to December 31, 2019.

(3)

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

SOURCE DiamondRock Hospitality Company