Agreed to purchase two midtown Manhattan hotels, the Royalton and Morgans, for $140 million.
IRVING, Texas--()--FelCor Lodging Trust Incorporated (NYSE: FCH) reported operating results for the first quarter ended March 31, 2011.
First Quarter Operating Results:
Same-store RevPAR for our 80 consolidated hotels was $88.97 for the quarter, a 6.3% increase compared to the same period in 2010, an improvement over our fourth quarter 2010 RevPAR growth of 5.7%. The RevPAR increase for the quarter was driven by a 4.0% increase in average daily rate ("ADR") to $127.88 and a 2.3% increase in occupancy to 69.6%.
“Our portfolio RevPAR growth continues to accelerate as lodging industry fundamentals improve. We are very pleased with our first quarter results given the severe travel disruptions due to record setting storms in January and February. Our RevPAR grew 7.6% in March, which was ahead of our expectations. Economic data points that correlate to demand growth indicate a strong and lasting recovery, while limited supply growth further improves our ability to drive average rate and occupancy,” said Richard A. Smith, FelCor's President and Chief Executive Officer.
“We continue to execute our portfolio repositioning plan successfully. Our asset sale program is progressing as planned, with six hotels under contract. We have also agreed to purchase the Royalton and Morgans in midtown Manhattan at an attractive price per key, which will further improve our portfolio quality and future growth rates. We are excited to acquire these terrific hotels and expect they will generate above market growth. Our most recent acquisition, the Fairmont Copley Plaza, continues to perform very well and is exceeding our underwriting. RevPAR at this hotel grew 18% during the quarter, driven by a 15% increase in ADR. This performance reflects that hotel’s superior location and the impact of our unique asset management approach,” added Mr. Smith.
First quarter Hotel EBITDA was $55.2 million, compared to $47.8 million for the same period in 2010, a 15.3% increase. Hotel EBITDA represents EBITDA for 80 Same-store consolidated hotels prior to corporate expenses and joint venture adjustments. Hotel EBITDA margin was 23.5%, a 198 basis point increase compared to the same period in 2010.
Adjusted EBITDA (which includes our pro rata share of joint ventures) was $44.2 million for the quarter, compared to $38.5 million for the same period in 2010, a 14.7% increase, and met the high-end of our expectations. Same-store Adjusted EBITDA, which excludes EBITDA from discontinued operations, was $43.3 million for the quarter, a 20.1% increase, compared to the same period in 2010.
First quarter adjusted funds from operations (“FFO”) reflected a $2.3 million loss, or $0.02 per share, compared to a $10.6 million loss, or $0.17 per share, for the same period in 2010, a $0.15 improvement.
Net loss attributable to common stockholders was $41.3 million, or $0.43 per share for the quarter, compared to $72.1 million, or $1.14 per share, for the same period in 2010. Net loss in 2010 included a $21.1 million impairment charge.
RevPAR, Hotel EBITDA and other Same-store metrics reflect 80 consolidated hotels owned at the end of the quarter, including the Fairmont Copley Plaza, and excluding the Embassy Suites – Phoenix-Tempe, which is classified as held for sale.
EBITDA, Adjusted EBITDA, Same-store Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA margin, FFO, Adjusted FFO and Adjusted FFO per share are all non-GAAP financial measures. See our discussion of “Non-GAAP Financial Measures” beginning on page 14 for a reconciliation of each of these measures to the most comparable GAAP financial measure and for information regarding the use, limitations and importance of these non-GAAP financial measures.
Balance Sheet:
At March 31, 2011, we had $1.5 billion of consolidated debt (including $145 million drawn on our $225 million line of credit) and $91.0 million of cash and cash equivalents.
In March, we closed a $225 million secured, revolving line of credit with a group of seven banks. At closing, we repaid two secured loans, totaling $198.3 million and $28.8 million, with a combination of $52.1 million of cash on hand and funds drawn under the new line of credit. The repaid loans would have matured in 2013 and 2012 (including extensions), respectively, and were secured by mortgages on 11 hotels. Those same hotels now secure repayment of amounts outstanding under the line of credit. The credit facility bears interest equal to LIBOR, plus 4.5%, with no LIBOR floor.
In April, we sold 27.6 million shares of common stock at $6.00 per share. We received net proceeds of approximately $159.0 million from the offering, after underwriting discounts and commissions.
“We continue to improve the flexibility of our balance sheet, extend maturity dates and lower our overall cost of debt. The line of credit, combined with other recent financing activities, provides critical financial flexibility and capacity to acquire properties at attractive prices – including the Royalton and Morgans – in a competitive hotel transactions setting. We continue to look for ways to restructure our balance sheet to refinance or repay existing debt. In addition, we expect our leverage to decline significantly from improved operations and from asset sales,” stated Andrew J. Welch, FelCor's Executive Vice President and Chief Financial Officer.
Portfolio Management:
For the quarter, we spent $16.0 million on capital improvements at our hotels (including our pro rata share of joint venture expenditures).
We agreed to acquire two midtown Manhattan hotels, the Royalton and Morgans, for $140.0 million from Morgans Hotel Group Co. (“MHGC”). MHGC will continue to manage the properties, which have a total of 282 guest rooms. The hotels will require limited initial capital, as both hotels are in excellent condition and have been recently renovated. The purchase price of $496,000 per key is approximately 60% of replacement cost and is approximately ten times peak Hotel EBITDA. We expect to close this transaction in the second quarter. FelCor has identified opportunities to enhance the hotels’ value, including adding guest rooms, and improving the fitness center and guest lounge at the Morgans, as well as food and beverage offerings.
As part of our long-term strategic plan to improve our portfolio quality, growth rates and diversification, we began marketing 14 hotels for sale during the fourth quarter of 2010. We expect to sell a majority of those 14 hotels during 2011. We currently have agreements to sell six of the 14 hotels for total gross proceeds of approximately $114 million. We have also identified an additional 21 non-strategic hotels. We will continue to monitor the transaction environment and will bring these additional hotels to market at the appropriate time.
Outlook:
Lodging demand growth, particularly from corporate customers, continues to accelerate, and new hotel supply growth is moderating. Our hotels are taking advantage of this demand and supply imbalance to remix the customer base and opportunistically increase rates where appropriate. As a result, our RevPAR growth continues to accelerate, and we expect this trend to continue through 2011. We have updated our 2011 projections for first quarter actual results, the pending sale of the Embassy Suites – Phoenix-Tempe and the pending acquisition of the Royalton and Morgans, which should all occur during the second quarter. We assumed no additional acquisitions or dispositions in our 2011 outlook.
For 2011, we anticipate:
FelCor, a real estate investment trust, is the nation's largest owner of upper-upscale, all-suite hotels. FelCor owns interests in 82 properties located in major markets throughout 22 states. FelCor's diversified portfolio of hotels and resorts are flagged under global brands such as - Doubletree®, Embassy Suites Hotels®, Hilton®, Fairmont®, Marriott®, Renaissance®, Sheraton®, Westin® and Holiday Inn®.
INTRODUCTION
The following information is presented in order to help our investors understand FelCor's financial position as of and for the three month period ended March 31, 2011.
|
Consolidated Statements of Operations (in thousands, except per share data) |
||||||||
| Three Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
|
Revenues: |
||||||||
| Hotel operating revenue: | ||||||||
| Room | $ | 184,366 | $ | 170,287 | ||||
| Food and beverage | 38,039 | 33,555 | ||||||
| Other operating departments | 12,700 | 12,916 | ||||||
| Other revenue | 225 | 365 | ||||||
| Total revenues | 235,330 | 217,123 | ||||||
| Expenses: | ||||||||
| Hotel departmental expenses: | ||||||||
| Room | 49,528 | 45,480 | ||||||
| Food and beverage | 29,859 | 26,254 | ||||||
| Other operating departments | 6,035 | 5,938 | ||||||
| Other property related costs | 69,457 | 62,702 | ||||||
| Management and franchise fees | 10,942 | 10,145 | ||||||
| Taxes, insurance and lease expense | 20,723 | 22,379 | ||||||
| Corporate expenses | 9,537 | 9,847 | ||||||
| Depreciation and amortization | 35,317 | 36,284 | ||||||
| Other expenses | 631 | 561 | ||||||
| Total operating expenses | 232,029 | 219,590 | ||||||
| Operating income (loss) | 3,301 |
(2,467 |
) |
|||||
| Interest expense, net |
(33,765 |
) |
(35,403 |
) |
||||
| Extinguishment of debt |
(245 |
) |
— | |||||
| Loss before equity in loss from unconsolidated entities |
(30,709 |
) |
(37,870 |
) |
||||
| Equity in loss from unconsolidated entities |
(1,583 |
) |
(1,474 |
) |
||||
| Gain on involuntary conversion | 150 | — | ||||||
| Loss from continuing operations |
(32,142 |
) |
(39,344 |
) |
||||
| Discontinued operations | 416 |
(23,598 |
) |
|||||
| Net loss |
(31,726 |
) |
(62,942 |
) |
||||
| Net loss (income) attributable to noncontrolling interests in other partnerships |
(58 |
) |
229 | |||||
| Net loss attributable to redeemable noncontrolling interests in FelCor LP | 120 | 325 | ||||||
| Net loss attributable to FelCor |
(31,664 |
) |
(62,388 |
) |
||||
| Preferred dividends |
(9,678 |
) |
(9,678 |
) |
||||
| Net loss attributable to FelCor common stockholders |
$ |
(41,342 |
) |
$ |
(72,066 |
) |
||
| Basic and diluted per common share data: | ||||||||
| Loss from continuing operations |
$ |
(0.44 |
) |
$ |
(0.77 |
) |
||
| Net loss |
$ |
(0.43 |
) |
$ |
(1.14 |
) |
||
| Basic and diluted weighted average common shares outstanding | 95,350 | 63,475 | ||||||
|
Consolidated Balance Sheets (in thousands) |
||||||||
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
| Assets | ||||||||
| Investment in hotels, net of accumulated depreciation of $998,506 at March 31, 2011 and $982,564 at December 31, 2010 |
$ | 1,960,848 | $ | 1,985,779 | ||||
| Investment in unconsolidated entities | 73,972 | 75,920 | ||||||
| Hotel held for sale | 18,533 | — | ||||||
| Cash and cash equivalents | 91,040 | 200,972 | ||||||
| Restricted cash | 19,254 | 16,702 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $683 at March 31, 2011 and $696 at December 31, 2010 |
36,878 | 27,851 | ||||||
| Deferred expenses, net of accumulated amortization of $14,863 at March 31, 2011 and $17,892 at December 31, 2010 |
22,245 | 19,940 | ||||||
| Other assets | 25,438 | 32,271 | ||||||
| Total assets | $ | 2,248,208 | $ | 2,359,435 | ||||
| Liabilities and Equity | ||||||||
| Debt, net of discount of $50,432 at March 31, 2011 and $53,193 at December 31, 2010 |
$ | 1,466,798 | $ | 1,548,309 | ||||
| Distributions payable | 76,293 | 76,293 | ||||||
| Accrued expenses and other liabilities | 154,478 | 144,451 | ||||||
| Total liabilities | 1,697,569 | 1,769,053 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable noncontrolling interests in FelCor LP at redemption value, 285 units issued and outstanding at March 31, 2011 and December 31, 2010 |
1,745 | 2,004 | ||||||
| Equity: | ||||||||
| Preferred stock, $0.01 par value, 20,000 shares authorized: | ||||||||
| Series A Cumulative Convertible Preferred Stock, 12,880 shares, liquidation value of $322,011, issued and outstanding at March 31, 2011 and December 31, 2010 |
309,362 | 309,362 | ||||||
| Series C Cumulative Redeemable Preferred Stock, 68 shares, liquidation value of $169,950, issued and outstanding at March 31, 2011 and December 31, 2010 |
169,412 | 169,412 | ||||||
| Common stock, $0.01 par value, 200,000 shares authorized and 96,872 shares issued at March 31, 2011, and 101,038 shares issued, including shares in treasury, at December 31, 2010 |
969 | 1,010 | ||||||
| Additional paid-in capital | 2,191,278 | 2,190,308 | ||||||
| Accumulated other comprehensive income | 27,745 | 26,457 | ||||||
| Accumulated deficit |
(2,169,344 |
) |
(2,054,625 |
) |
||||
| Less: Common stock in treasury, at cost, of 4,156 shares at December 31, 2010 | — |
(73,341 |
) |
|||||
| Total FelCor stockholders’ equity | 529,422 | 568,583 | ||||||
| Noncontrolling interests in other partnerships | 19,472 | 19,795 | ||||||
| Total equity | 548,894 | 588,378 | ||||||
|
Total liabilities and equity |
$ | 2,248,208 | $ | 2,359,435 | ||||
|
Capital Expenditures (in thousands) |
||||||||
| Three Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
| Improvements and additions to majority-owned hotels | $ | 15,038 | $ | 8,200 | ||||
| Partners' pro rata share of additions to consolidated joint venture hotels |
(189 |
) |
(36 |
) |
||||
| Pro rata share of additions to unconsolidated hotels | 1,133 | 426 | ||||||
| Total additions to hotels(a) | $ | 15,982 | $ | 8,590 | ||||
(a) Includes capitalized interest, property taxes, ground leases and certain employee costs.
|
Supplemental Financial Data (in thousands, except per share information) |
||||||||
| March 31, | December 31, | |||||||
| Total Enterprise Value | 2011 | 2010 | ||||||
| Common shares outstanding | 96,872 | 96,882 | ||||||
| Units outstanding | 285 | 285 | ||||||
| Combined shares and units outstanding | 97,157 | 97,167 | ||||||
| Common stock price | $ | 6.13 | $ | 7.04 | ||||
| Market capitalization | $ | 595,572 | $ | 684,056 | ||||
| Series A preferred stock | 309,362 | 309,362 | ||||||
| Series C preferred stock | 169,412 | 169,412 | ||||||
| Consolidated debt | 1,466,798 | 1,548,309 | ||||||
| Noncontrolling interests of consolidated debt |
(3,701 |
) |
(3,754 |
) |
||||
| Pro rata share of unconsolidated debt | 76,811 | 77,295 | ||||||
| Cash and cash equivalents |
(91,040 |
) |
(200,972 |
) |
||||
| Total enterprise value (TEV) | $ | 2,523,214 | $ | 2,583,708 | ||||
|
Consolidated Debt Summary (dollars in thousands) |
|||||||||||||
| Interest Rate (%) | Maturity Date | March 31, 2011 | December 31, 2010 | ||||||||||
| Secured line of credit(a) | L + 4.50 | August 2014(b) | $ | 145,000 | $ | — | |||||||
| Mortgage debt | |||||||||||||
| Mortgage debt | L + 0.93 |
(c) |
November 2011 | 250,000 | 250,000 | ||||||||
| Mortgage debt | L + 5.10 |
(d) |
April 2015 | 212,000 | 212,000 | ||||||||
| Mortgage debt | 9.02 | April 2014 | 112,109 | 113,220 | |||||||||
| Mortgage debt(e) | 6.66 | June - August 2014 | 68,744 | 69,206 | |||||||||
| Mortgage debt | 8.77 | May 2013 | 27,770 | 27,770 | |||||||||
| Mortgage debt | 5.81 | July 2016 | 11,210 | 11,321 | |||||||||
| Mortgage debt | 6.15 | June 2011 | 7,473 | 7,800 | |||||||||
| Other | 4.25 | May 2011 | 563 | 524 | |||||||||
| Senior notes | |||||||||||||
| Senior secured notes(f) | 10.00 | October 2014 | 585,573 | 582,821 | |||||||||
| Senior notes | 8.50 |
(g) |
June 2011 | 46,356 | 46,347 | ||||||||
| Retired debt | — | — | — | 227,300 | |||||||||
| Total | $ | 1,466,798 | $ | 1,548,309 | |||||||||
(a) The outstanding balance on the line of credit was paid subsequent to March 31, 2011. We currently have full availability under our $225 million line of credit.
(b) This loan can be extended for one year (to 2015), subject to satisfying certain conditions.
(c) We purchased an interest rate cap that caps LIBOR at 7.8% and expires November 2011 for a $250 million notional amount.
(d) LIBOR for this loan is subject to a 3% floor. We purchased an interest rate cap that caps LIBOR at 5.0% and expires May 2012 for a $212 million notional amount.
(e) The hotels securing this debt are subject to separate loan agreements and are not cross-collateralized.
(f) These notes have $636 million in aggregate principal outstanding and were sold at a discount that provides an effective yield of 12.875% before transaction costs.
(g) As a result of a rating down-grade in February 2009, the interest rate on the 8½% senior notes increased to 9%.
|
Schedule of Encumbered Hotels (dollars in millions) |
||||||||
| March 31, 2011 | ||||||||
| Consolidated Debt | Balance | Encumbered Hotels | ||||||
|
Secured line of credit |
$ | 145 |
Boca Raton - ES, Charlotte SouthPark - DT, Dana Point - DTGS, Houston Medical Center - HI, Myrtle Beach - HLT, Mandalay Beach - ES, Nashville Airport - ES, Philadelphia Independence Mall - HI, Pittsburgh University Center - HI, Santa Barbara, Goleta - HI and Santa Monica at the Pier - HI |
|||||
| CMBS debt | $ | 250 |
Anaheim - ES, Bloomington - ES, Charleston Mills House - HI, Dallas DFW South - ES, Deerfield Beach - ES, Jacksonville - ES, Lexington - HS, Dallas Love Field - ES, Raleigh/Durham - DTGS, San Antonio Airport - HI, Tampa Rocky Point - DTGS and Phoenix Tempe - ES |
|||||
| Mortgage debt | $ | 212 |
Atlanta Buckhead - ES, Atlanta Galleria - SS, Boston Marlboro - ES, Burlington - SH, Corpus Christi - ES, Ft. Lauderdale Cypress Creek - SS, Orlando South - ES, Philadelphia Society Hill - SH and South San Francisco - ES |
|||||
| Mortgage debt | $ | 112 | Baton Rouge - ES, Birmingham - ES, Ft. Lauderdale - ES, Miami Airport - ES, Milpitas - ES, Minneapolis Airport - ES and Napa Valley - ES | |||||
| CMBS debt(a) | $ | 69 | Atlanta Airport - ES, Austin - DTGS, BWI Airport - ES, Orlando Airport - HI and Phoenix Biltmore - ES | |||||
| CMBS debt | $ | 28 | New Orleans Convention Center - ES | |||||
| CMBS debt | $ | 11 | Indianapolis North - ES | |||||
| CMBS debt | $ | 7 | Wilmington - DT | |||||
| Senior secured notes | $ | 586 |
Atlanta Airport - SH, Boston Beacon Hill - HI, Dallas Market Center - ES, Myrtle Beach Resort - ES, Nashville Opryland - Airport - HI, New Orleans French Quarter - HI, Orlando North - ES, Orlando Walt Disney World® - DTGS, San Diego on the Bay - HI, San Francisco Burlingame - ES, San Francisco Fisherman's Wharf - HI, San Francisco Union Square - MAR, Toronto Airport - HI and Toronto Yorkdale - HI |
|||||
(a) The hotels under this debt are subject to separate loan agreements and are not cross-collateralized.
|
Hotel Portfolio Composition |
|||||||||
|
The following table illustrates the distribution of 80 same-store consolidated hotels by brand, market and location at March 31, 2011. |
|||||||||
| Brand | Hotels | Rooms |
% of Total Rooms |
% of 2010 Hotel EBITDA(a) |
|||||
| Embassy Suites Hotels | 44 | 11,450 | 50 | 58 | |||||
| Holiday Inn | 15 | 5,154 | 22 | 18 | |||||
| Sheraton and Westin | 8 | 2,774 | 12 | 9 | |||||
| Doubletree | 7 | 1,471 | 6 | 7 | |||||
| Renaissance and Marriott | 3 | 1,321 | 6 | 3 | |||||
| Hilton | 2 | 559 | 2 | 3 | |||||
| Fairmont | 1 | 383 | 2 | 2 | |||||
| Market | |||||||||
| South Florida | 5 | 1,439 | 6 | 7 | |||||
| Los Angeles area | 4 | 899 | 4 | 6 | |||||
| San Francisco area | 6 | 2,138 | 9 | 6 | |||||
| Atlanta | 5 | 1,462 | 6 | 6 | |||||
| Dallas | 4 | 1,333 | 6 | 5 | |||||
| Boston | 3 | 915 | 4 | 5 | |||||
| Minneapolis | 3 | 736 | 3 | 4 | |||||
| Philadelphia | 2 | 729 | 3 | 4 | |||||
| Orlando | 4 | 1,038 | 5 | 4 | |||||
| Central California Coast | 2 | 408 | 2 | 4 | |||||
| Myrtle Beach | 2 | 640 | 3 | 4 | |||||
| New Orleans | 2 | 744 | 3 | 4 | |||||
| San Antonio | 3 | 874 | 4 | 3 | |||||
| San Diego | 1 | 600 | 3 | 3 | |||||
| Other | 34 | 9,157 | 39 | 35 | |||||
| Location | |||||||||
| Urban | 21 | 6,741 | 29 | 32 | |||||
| Suburban | 31 | 7,656 | 33 | 29 | |||||
| Airport | 18 | 5,788 | 25 | 23 | |||||
| Resort | 10 | 2,927 | 13 | 16 | |||||
(a) Hotel EBITDA is more fully described on page 19.
The following tables set forth occupancy, ADR and RevPAR for the three months ended March 31, 2011 and 2010, and the percentage changes thereto between the periods presented, for 80 same-store consolidated hotels.
|
Detailed Operating Statistics by Brand |
|||||||
| Occupancy (%) | |||||||
| Three Months Ended March 31, | |||||||
| 2011 | 2010 | %Variance | |||||
| Embassy Suites Hotels | 72.5 | 70.8 | 2.3 | ||||
| Holiday Inn | 68.0 | 67.6 | 0.6 | ||||
| Sheraton and Westin | 66.7 | 64.0 | 4.3 | ||||
| Doubletree | 71.4 | 70.0 | 1.9 | ||||
| Renaissance and Marriott | 71.0 | 65.3 | 8.6 | ||||
| Hilton | 42.5 | 46.2 |
(8.0 |
) |
|||
| Fairmont | 53.0 | 51.7 | 2.6 | ||||
| Total hotels | 69.6 | 68.0 | 2.3 | ||||
| ADR ($) | |||||||
| Three Months Ended March 31, | |||||||
| 2011 | 2010 | %Variance | |||||
| Embassy Suites Hotels | 130.49 | 129.42 | 0.8 | ||||
| Holiday Inn | 110.89 | 104.30 | 6.3 | ||||
| Sheraton and Westin | 109.51 | 103.71 | 5.6 | ||||
| Doubletree | 131.94 | 118.75 | 11.1 | ||||
| Renaissance and Marriott | 196.66 | 183.84 | 7.0 | ||||
| Hilton | 98.10 | 95.75 | 2.4 | ||||
| Fairmont | 199.71 | 174.05 | 14.7 | ||||
| Total hotels | 127.88 | 123.02 | 4.0 | ||||
| RevPAR ($) | |||||||
| Three Months Ended March 31, | |||||||
| 2011 | 2010 | %Variance | |||||
| Embassy Suites Hotels | 94.57 | 91.66 | 3.2 | ||||
| Holiday Inn | 75.41 | 70.52 | 6.9 | ||||
| Sheraton and Westin | 73.07 | 66.37 | 10.1 | ||||
| Doubletree | 94.15 | 83.12 | 13.3 | ||||
| Renaissance and Marriott | 139.54 | 120.08 | 16.2 | ||||
| Hilton | 41.65 | 44.21 |
(5.8 |
) |
|||
| Fairmont | 105.82 | 89.91 | 17.7 | ||||
| Total hotels | 88.97 | 83.67 | 6.3 | ||||
|
Detailed Operating Statistics for FelCor's Top Markets |
|||||||
| Occupancy (%) | |||||||
| Three Months Ended March 31, | |||||||
| 2011 | 2010 | %Variance | |||||
| South Florida | 83.2 | 85.1 |
(2.3 |
) |
|||
| Los Angeles area | 73.8 | 70.5 | 4.7 | ||||
| San Francisco area | 68.3 | 65.3 | 4.6 | ||||
| Atlanta | 73.9 | 75.2 |
(1.8 |
) |
|||
| Dallas | 72.9 | 65.4 | 11.4 | ||||
| Minneapolis | 72.7 | 67.0 | 8.4 | ||||
| Philadelphia | 57.8 | 60.4 |
(4.3 |
) |
|||
| Orlando | 82.9 | 80.9 | 2.4 | ||||
| Central California Coast | 68.6 | 69.7 |
(1.6 |
) |
|||
| Myrtle Beach | 40.8 | 44.1 |
(7.5 |
) |
|||
| New Orleans | 70.0 | 68.7 | 1.8 | ||||
| Boston | 68.6 | 66.5 | 3.2 | ||||
| San Antonio | 73.9 | 74.7 |
(1.0 |
) |
|||
| San Diego | 73.8 | 71.5 | 3.2 | ||||
| ADR ($) | |||||||
| Three Months Ended March 31, | |||||||
| 2011 | 2010 | %Variance | |||||
| South Florida | 158.05 | 163.64 |
(3.4 |
) |
|||
| Los Angeles area | 138.26 | 132.32 | 4.5 | ||||
| San Francisco area | 134.09 | 122.73 | 9.3 | ||||
| Atlanta | 106.06 | 105.48 | 0.6 | ||||
| Dallas | 123.63 | 112.99 | 9.4 | ||||
| Minneapolis | 122.52 | 125.73 |
(2.6 |
) |
|||
| Philadelphia | 124.14 | 111.42 | 11.4 | ||||
| Orlando | 118.54 | 114.47 | 3.6 | ||||
| Central California Coast | 133.87 | 138.16 |
(3.1 |
) |
|||
| Myrtle Beach | 98.75 | 96.37 | 2.5 | ||||
| New Orleans | 143.29 | 132.43 | 8.2 | ||||
| Boston | 146.90 | 137.72 | 6.7 | ||||
| San Antonio | 95.21 | 98.33 |
(3.2 |
) |
|||
| San Diego | 122.03 | 115.09 | 6.0 | ||||
| RevPAR ($) | |||||||
| Three Months Ended March 31, | |||||||
| 2011 | 2010 | %Variance | |||||
| South Florida | 131.51 | 139.33 |
(5.6 |
) |
|||
| Los Angeles area | 101.99 | 93.23 | 9.4 | ||||
| San Francisco area | 91.53 | 80.11 | 14.3 | ||||
| Atlanta | 78.40 | 79.36 |
(1.2 |
) |
|||
| Dallas | 90.09 | 73.89 | 21.9 | ||||
| Minneapolis | 89.01 | 84.26 | 5.6 | ||||
| Philadelphia | 71.77 | 67.34 | 6.6 | ||||
| Orlando | 98.27 | 92.65 | 6.1 | ||||
| Central California Coast | 91.81 | 96.33 |
(4.7 |
) |
|||
| Myrtle Beach | 40.31 | 42.53 |
(5.2 |
) |
|||
| New Orleans | 100.32 | 91.04 | 10.2 | ||||
| Boston | 100.72 | 91.52 | 10.1 | ||||
| San Antonio | 70.39 | 73.46 |
(4.2 |
) |
|||
| San Diego | 90.08 | 82.33 | 9.4 | ||||
|
Reconciliation of Net Loss to FFO and Adjusted FFO (in thousands, except per share data) |
||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| Dollars | Shares |
Per Share Amount |
Dollars | Shares |
Per Share Amount |
|||||||||||||||
| Net loss |
$ |
(31,726 |
) |
$ |
(62,942 |
) |
||||||||||||||
| Noncontrolling interests | 62 | 554 | ||||||||||||||||||
| Preferred dividends |
(9,678 |
) |
(9,678 |
) |
||||||||||||||||
| Net loss attributable to FelCor common stockholders |
(41,342 |
) |
95,350 |
$ |
(0.43 |
) |
(72,066 |
) |
63,475 |
$ |
(1.14 |
) |
||||||||
| Depreciation and amortization | 35,317 | — | 0.37 | 36,284 | — | 0.57 | ||||||||||||||
| Depreciation, discontinued operations and unconsolidated entities |
3,581 | — | 0.04 | 4,977 | — | 0.08 | ||||||||||||||
| Gain on sale of unconsolidated entities | — | — | — |
(559 |
) |
— |
(0.01 |
) |
||||||||||||
| Noncontrolling interests in FelCor LP |
(120 |
) |
285 |
(0.01 |
) |
(325 |
) |
295 | — | |||||||||||
| Gain on involuntary conversion |
(150 |
) |
— | — | — | — | — | |||||||||||||
| FFO |
(2,714 |
) |
95,635 |
(0.03 |
) |
(31,689 |
) |
63,770 |
(0.50 |
) |
||||||||||
| Impairment loss, discontinued operations and unconsolidated entities |
— | — | — | 21,060 | — | 0.33 | ||||||||||||||
| Acquisition costs | 119 | — | — | — | — | — | ||||||||||||||
| Extinguishment of debt, including
discontinued operations |
252 | — | 0.01 | — | — | — | ||||||||||||||
| Adjusted FFO |
$ |
(2,343 |
) |
95,635 |
$ |
(0.02 |
) |
$ |
(10,629 |
) |
63,770 |
$ |
(0.17 |
) |
||||||
|
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA (in thousands) |
||||||||
|
Three Months Ended March 31, |
||||||||
| 2011 | 2010 | |||||||
| Net loss | $ | (31,726 | ) | $ | (62,942 | ) | ||
| Depreciation and amortization | 35,317 | 36,284 | ||||||
| Depreciation, discontinued operations and unconsolidated entities | 3,581 | 4,977 | ||||||
| Interest expense | 33,806 | 35,508 | ||||||
| Interest expense, discontinued operations and unconsolidated entities | 1,209 | 2,337 | ||||||
| Amortization of stock compensation | 1,803 | 1,616 | ||||||
| Noncontrolling interests in other partnerships | (58 | ) | 229 | |||||
| EBITDA | 43,932 | 18,009 | ||||||
| Impairment loss, discontinued operations and unconsolidated entities | — | 21,060 | ||||||
| Extinguishment of debt, including discontinued operations | 252 | — | ||||||
| Acquisition costs | 119 | — | ||||||
| Gain on involuntary conversion | (150 | ) | — | |||||
| Gain on sale of unconsolidated subsidiary | — | (559 | ) | |||||
| Adjusted EBITDA | 44,153 | 38,510 | ||||||
| Adjusted EBITDA from discontinued operations | (857 | ) | (380 | ) | ||||
| Adjusted EBITDA from acquired hotels | — | (2,078 | ) | |||||
| Same-store Adjusted EBITDA | 43,296 | 36,052 | ||||||
| Other revenue | (225 | ) | (365 | ) | ||||
| Equity in income from unconsolidated entities (excluding interest,
depreciation and impairment expense) |
(3,341 | ) | (2, | |||||
