Company Results

Strategic Hotels & Resorts Full Year 2013 Revenues Up 13.9 Percent

Total North American portfolio RevPAR increased 9.6 percent in the fourth quarter of 2013, driven by a 6.1 percent increase in ADR and a 2.2 percentage point increase in occupancy compared to the fourth quarter of 2012. Total RevPAR increased 14.9 percent between periods. Excluding payments received pursuant to the JW Marriott Essex House NOI guarantee, Total RevPAR increased 10.6 percent in the fourth quarter of 2013 as compared to the fourth quarter of 2012.

Strategic Hotels

Strategic Hotels & Resorts, Inc. (NYSE: BEE) reported results for the fourth quarter and full year ended December 31, 2013. 

Fourth Quarter Highlights

  • Total consolidated revenues were $242.4 million in the fourth quarter of 2013, a 13.9 percent increase over the prior year period.
  • Total North American portfolio RevPAR increased 9.6 percent in the fourth quarter of 2013, driven by a 6.1 percent increase in ADR and a 2.2 percentage point increase in occupancy compared to the fourth quarter of 2012.  Total RevPAR increased 14.9 percent between periods.  Excluding payments received pursuant to the JW Marriott Essex House NOI guarantee, Total RevPAR increased 10.6 percent in the fourth quarter of 2013 as compared to the fourth quarter of 2012.
  • Comparable FFO was $0.14 per diluted share in the fourth quarter of 2013 compared with $0.06 per diluted share in the prior year period, a 133.3 percent increase over the prior year period.       
  • Comparable EBITDA was $58.3 million in the fourth quarter of 2013 compared with $44.7 million in the prior year period, a 30.6 percent increase.   
  • Net income attributable to common shareholders was $3.2 million, or $0.02 per diluted share, in the fourth quarter of 2013, compared with a net loss attributable to common shareholders of $36.4 million, or $0.18 per diluted share, in the fourth quarter of 2012.  Fourth quarter 2012 results include $18.8 million of impairment losses and other related charges, a $7.8 million charge related to the termination of the management agreement at the Hotel del Coronado and a $2.5 million severance charge.  These charges have been excluded from Comparable EBITDA, FFO and FFO per share.
  • Transient occupied room nights in the Total North American portfolio increased 5.0 percent, offsetting a 1.2 percent decline in group occupied rooms in the fourth quarter of 2013 compared to the fourth quarter of 2012.  Transient ADR increased 4.7 percent compared to the fourth quarter of 2012 and group ADR increased 6.2 percent compared to the fourth quarter of 2012.  Transient revenues increased 9.9 percent compared to the fourth quarter of 2012 and group revenues increased 4.9 percent, compared to the fourth quarter of 2012.
  • Total United States RevPAR increased 9.7 percent in the fourth quarter of 2013, driven by a 6.4 percent increase in ADR and a 2.2 percentage point increase in occupancy, compared to the fourth quarter of 2012.  Total RevPAR increased 15.1 percent between periods.  Excluding payments received pursuant to the JW Marriott Essex House NOI guarantee, Total RevPAR increased 10.6 percent in the fourth quarter of 2013 as compared to the fourth quarter of 2012.
  • North American same store RevPAR increased 9.7 percent in the fourth quarter of 2013, driven by a 6.2 percent increase in ADR and a 2.4 percentage point increase in occupancy, compared to the fourth quarter of 2012.  Total RevPAR increased 15.5 percent between periods.  Excluding payments received pursuant to the JW Marriott Essex House NOI guarantee, Total RevPAR increased 10.1 percent in the fourth quarter of 2013 as compared to the fourth quarter of 2012.
  • European RevPAR increased 4.4 percent (a 2.2 percent increase in constant dollars) in the fourth quarter of 2013, driven by a 1.1 percent increase in ADR (a 1.1 percent decline in constant dollars) and a 2.7 percentage point increase in occupancy. European Total RevPAR increased 5.8 percent in the fourth quarter of 2013 over the prior year period (a 3.8 percent increase in constant dollars).  
  • Total North American portfolio EBITDA margins expanded 460 basis points in the fourth quarter of 2013 compared to the fourth quarter of 2012.  North American same store EBITDA margins expanded 520 basis points between periods.  Excluding payments received pursuant to the JW Marriott Essex House NOI guarantee, EBITDA margins expanded 180 basis points and 160 basis points in the Total North American and North American same store portfolios, respectively, between periods.

($ in millions, except per share and operating metrics)

Fourth Quarter

Earnings Metrics

2013

2012

% Change

Net income (loss) attributable to common shareholders

$3.2

$(36.4)

N/A

Net income (loss) per diluted share

$0.02

$(0.18)

N/A

Comparable funds from operations (Comparable FFO) (a)

$28.7

$12.2

134.9%

Comparable FFO per diluted share (a)

$0.14

$0.06

133.3%

Comparable EBITDA (a)

$58.3

$44.7

30.6%

Total North American Portfolio Operating Metrics (b)

Average Daily Rate (ADR)

$293.19

$276.26

6.1%

Occupancy

71.3%

69.1%

2.2 pts

Revenue per Available Room (RevPAR)

$209.17

$190.82

9.6%

Total RevPAR

$419.59

$365.15

14.9%

EBITDA Margins

25.9%

21.3%

460 bps

North American Same Store Operating Metrics (c)

ADR

$292.75

$275.64

6.2%

Occupancy

73.7%

71.3%

2.4 pts

RevPAR

$215.75

$196.66

9.7%

Total RevPAR

$415.35

$359.73

15.5%

EBITDA Margins

26.7%

21.5%

 520 bps

Note: Fourth quarter and full year results include payments pursuant to the JW Marriott Essex House NOI guarantee of $1.4 million and $12.8 million in 2012 and 2013, respectively.

 

($ in millions, except per share and operating metrics)

Full Year

Earnings Metrics

2013

2012

% Change

Net loss attributable to common shareholders

$(13.2)

$(79.5)

N/A

Net loss per diluted share

$(0.06)

$(0.40)

N/A

Comparable FFO (a)

$89.5

$53.7

66.6%

Comparable FFO per diluted share (a)

$0.43

$0.26

65.4%

Comparable EBITDA (a)

$213.2

$175.4

21.5%

Total North American Portfolio Operating Metrics (b)

ADR

$289.90

$273.30

6.1%

Occupancy

74.2%

72.3%

1.9 pts

RevPAR

$214.98

$197.59

8.8%

Total RevPAR

$401.56

$365.43

9.9%

EBITDA Margins

24.4%

21.5%

290 bps

North American Same Store Operating Metrics (c)

ADR

$270.07

$254.06

6.3%

Occupancy

75.0%

73.2%

1.8 pts

RevPAR

$202.58

$186.05

8.9%

Total RevPAR

$373.90

$344.77

8.4%

EBITDA Margins

23.4%

22.0%

140 bps

Note:

Fourth quarter and full year results include payments pursuant to the JW Marriott Essex House NOI guarantee of $1.4 million and $12.8 million in 2012 and 2013, respectively.

(a)

Please refer to tables provided later in this press release for a reconciliation of net (loss)/income to Comparable FFO, Comparable FFO per share and Comparable EBITDA. Comparable FFO, Comparable FFO per share and Comparable EBITDA are non-GAAP measures and are further explained with the reconciliation tables.

(b)

Operating statistics reflect results from the Company's Total North American portfolio (see portfolio definitions later in this press release).

(c)

Operating statistics reflect results from the Company's North American same store portfolio (see portfolio definitions later in this press release).

"We achieved outstanding operating and financial results across the board in 2013, leading the industry in RevPAR growth and margin expansion," said Raymond L. "Rip" Gellein, Jr., Chairman and Chief Executive Officer of Strategic Hotels & Resorts, Inc.  "We have very positive expectations for 2014, based on our group outlook, continued strength from the transient traveler, and our ability to continue expanding margins across the portfolio.  We also look forward to continuing to deleverage the Company's balance sheet and reviewing growth opportunities that meet our strategic and financial thresholds.  The luxury sector is well positioned for continued strength given the dearth of competitive new supply in virtually all of our major markets," summarized Gellein.    

 

Full Year Highlights

  • Total consolidated revenues were $900.0 million in 2013, a 16.1 percent increase over the prior year period.
  • Total North American RevPAR increased 8.8 percent in 2013, driven by a 6.1 percent increase in ADR and a 1.9 percentage point increase in occupancy, compared to the full year 2012.  Total RevPAR increased 9.9 percent between periods.  Excluding payments received pursuant to the JW Marriott Essex House NOI guarantee, Total RevPAR increased 8.8 percent in 2013 compared to 2012. 
  • Comparable FFO was $0.43 per diluted share in 2013 compared with $0.26 per diluted share in the prior year, a 65.4 percent increase.    
  • Comparable EBITDA was $213.2 million in 2013 compared with $175.4 million in the prior year, a 21.5 percent increase.
  • Net loss attributable to common shareholders was $13.2 million, or $0.06 per diluted share, in 2013 compared with a net loss attributable to common shareholders of $79.5 million, or $0.40 per diluted share, in the prior year.  Full year 2012 results include $18.8 million of impairment losses and other related charges, a $7.8 million charge related to the termination of the management agreement at the Hotel del Coronado, and a $2.5 million severance charge.  These charges have been excluded from Comparable EBITDA, FFO and FFO per share.
  • Transient occupied room nights in the Total North American portfolio increased 3.1 percent and group occupied room nights increased 1.6 percent in 2013 compared to 2012.  Transient ADR increased 6.1 percent in 2013 and group ADR increased 4.8 percent compared to 2012.  Transient revenues increased 9.4 percent in 2013 and group revenues increased 6.5 percent, compared to 2012.
  • Total United States RevPAR increased 8.6 percent in 2013, driven by a 5.9 percent increase in ADR and a 1.8 percentage point increase in occupancy, compared to the full year 2012.  Total RevPAR increased 9.7 percent between periods.  Excluding payments received pursuant to the JW Marriott Essex House NOI guarantee, Total RevPAR increased 8.6 percent in 2013 compared to 2012.
  • North American same store RevPAR increased 8.9 percent, driven by a 6.3 percent increase in ADR and a 1.8 percentage point increase in occupancy, compared to the full year 2012.  Total RevPAR increased 8.4 percent between periods. 
  • European RevPAR decreased 1.7 percent (2.1 percent in constant dollars) in 2013, driven by a 2.4 percentage decrease in ADR (2.8 percent in constant dollars) offsetting a 0.6 percentage point increase in occupancy between years. European Total RevPAR decreased 1.2 percent in between years (1.6 percent in constant dollars). 
  • Total North American portfolio EBITDA margins expanded 290 basis points in 2013 compared to the full year 2012.  Excluding payments received pursuant to the JW Marriott Essex House NOI guarantee, EBITDA margins expanded 210 basis points compared to the full year 2012.  North American same store EBITDA margins expanded 140 basis points between periods. 

Preferred Dividends

On November 27, 2013, the Company's Board of Directors declared a quarterly dividend of $0.53125 per share of 8.5 percent Series A Cumulative Redeemable Preferred Stock paid on December 31, 2013 to shareholders of record as of the close of business on December 16, 2013, a quarterly dividend of $0.51563 per share of 8.25 percent Series B Cumulative Redeemable Preferred Stock paid on December 31, 2013 to shareholders of record as of the close of business on December 16, 2013 and a quarterly dividend of $0.51563 per share of 8.25 percent Series C Cumulative Redeemable Preferred Stock paid on December 31, 2013 to shareholders of record as of the close of business on December 16, 2013.

2013 Transaction Activity

  • On December 12, 2013, the Company announced the signing of an agreement with Cascade Investment, L.L.C. to sell the Four Seasons Punta Mita Resort and adjacent La Solana land parcel for gross consideration of $200 million, subject to certain working capital adjustments.  The transaction is expected to close in the first quarter of 2014.
  • On October 16, 2013, the Company sold the Lakeshore Athletic Club property adjacent to the Fairmont Chicago hotel for $10.5 million to the owner of Lakeshore Sport & Fitness.
  • On September 9, 2013, the Company closed on amendments to the cross-collateralized mortgage agreements secured by the Westin St. Francis and Fairmont Chicago hotels, which eliminated future principal amortization payments totaling $37.2 million in scheduled payments from the signing the amendment through the remaining term of the two agreements.
  • On March 12, 2013, the Company, along with certain affiliates of Blackstone Real Estate Partners VI L.P., its joint-venture partner, closed on a $475 million loan secured by the Hotel del Coronado, bearing interest at LIBOR plus 365 basis points and has an initial two-year term with three, one-year extension options.

2014 Guidance

For the full year 2014, the Company is providing the following guidance ranges for its Total United States and United States same-store portfolios.  Comparable EBITDA and Comparable FFO per share ranges assume the pending sale of the Four Seasons Punta Mita Resort and adjacent La Solana land parcel closes in the first quarter and proceeds are used to reduce the outstanding balance on the Company's revolving credit facility, partially redeem preferred equity, and other general corporate purposes.

 

Operating Metrics

 

5.0% - 7.0%

4.5% - 6.5%

120 – 200 basis points

RevPAR

Total RevPAR

EBITDA Margin expansion

Corporate Metrics

Comparable EBITDA

$220M - $240M

$0.53 - $0.63

Comparable FFO per diluted share

 

Full year 2014 RevPAR and Total RevPAR growth guidance ranges have been reduced by 100 basis points and the EBITDA margin expansion guidance range has been reduced by 20 basis points as the result of anticipated displacement related to renovation activity.

The Company is additionally providing the following guidance for 2014:

  • Corporate general and administrative expenses in the range of $22.0 million to $24.0 million, excluding costs associated with the Orange Capital activist campaign;
  • Consolidated interest expense in the range of $85 million to $90 million, including approximately $8 million of non-cash interest expense;
  • Preferred dividend expense of $17.6 million, which assumes the redemption of the Series A Preferred Equity at the end of the first quarter, contingent on the closing of the sale of the Four Seasons Punta Mita Resort;
  • Capital expenditures totaling approximately $75 million to $80 million, including spending of $40 million from property-level furniture, fixtures and equipment (FF&E) reserves and an additional $35 million to $40 million of owner-funded spending; and
  • No effect from any additional acquisition, disposition or capital raising activity that may occur during the year.

Portfolio Definitions

Total United States portfolio hotel comparisons for the fourth quarter and full year 2013 are derived from the Company's hotel portfolio at December 31, 2013, consisting of all 15 properties located in the United States, including unconsolidated joint ventures. 

North American same store hotel comparisons for the fourth quarter and full year 2013 are derived from the Company's hotel portfolio at December 31, 2013, consisting of properties located in North America and held for five or more quarters in the case of fourth quarter results and eight or more quarters for full year results, in which operations are included in the consolidated results of the Company.  As a result, same store comparisons contain 14 properties for the fourth quarter, including the Four Seasons Punta Mita Resort, but excluding the unconsolidated Hotel del Coronado and Fairmont Scottsdale Princess hotels. Same store comparisons for the full year contain 13 properties, also excluding the JW Marriott Essex House Hotel, which was acquired on September 14, 2012.

European hotel comparisons for the fourth quarter and full year 2013 are derived from the Company's European owned and leased hotel properties at December 31, 2013, consisting of the Marriott London Grosvenor Square and the Marriott Hamburg hotels. 

About the Company

Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) which owns and provides value-enhancing asset management of high-end hotels and resorts in the United States, Mexico and Europe. The Company currently has ownership interests in 18 properties with an aggregate of 8,271 rooms and 851,600 square feet of meeting space. 

The following tables reconcile projected 2014 net income attributable to common shareholders to projected Comparable EBITDA, Comparable FFO and Comparable FFO per diluted share ($ in millions, except per share data):

Low Range

High Range

Net Income Attributable to Common Shareholders

$52.9

$72.9

Depreciation and Amortization

112.8

112.8

Interest Expense

86.0

86.0

Income Taxes

2.3

2.3

Non-controlling Interests

0.4

0.4

Adjustments from Consolidated Affiliates

(15.5)

(15.5)

Adjustments from Unconsolidated Affiliates

23.5

23.5

Preferred Shareholder Dividends

17.6

17.6

Realized Portion of Deferred Gain on Sale Leasebacks

(0.2)

(0.2)

Gain on Sale of Assets

(59.8)

(59.8)

Comparable EBITDA

$220.0

$240.0

 

Low Range

High Range

Net Income Attributable to Common Shareholders

$52.9

$72.9

Depreciation and Amortization

112.0

112.0

Realized Portion of Deferred Gain on Sale Leasebacks

(0.2)

(0.2)

Gain on Sale of Assets

(59.8)

(59.8)

Non-controlling Interests

0.3

0.3

Adjustments from Consolidated Affiliates

(8.0)

(8.0)

Adjustments from Unconsolidated Affiliates

14.9

14.9

Comparable FFO

112.1

132.1

Comparable FFO per Diluted Share

$0.53

$0.63

 

 

 

Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)

Consolidated Statements of Operations

(in thousands, except per share data)

 

Three Months Ended

December 31,

Years Ended

December 31,

2013

2012

2013

2012

Revenues:

Rooms

$

126,917

$

117,255

$

506,348

$

429,689

Food and beverage

81,426

73,483

294,969

264,893

Other hotel operating revenue

32,709

20,799

93,535

75,857

Lease revenue

1,385

1,273

5,161

4,778

Total revenues

242,437

212,810

900,013

775,217

Operating Costs and Expenses:

Rooms

36,160

33,288

144,464

121,794

Food and beverage

59,504

54,794

225,213

193,431

Other departmental expenses

56,226

55,189

220,523

200,219

Management fees

7,829

6,227

27,126

23,085

Other hotel expenses

15,239

15,221

60,618

53,117

Lease expense

1,234

1,155

4,818

4,580

Depreciation and amortization

24,507

26,055

101,943

99,458

Impairment losses and other charges

18,406

728

18,406

Corporate expenses

7,161

8,150

25,807

31,578

Total operating costs and expenses

207,860

218,485

811,240

745,668

Operating income (loss)

34,577

(5,675)

88,773

29,549

Interest expense

(20,405)

(16,862)

(84,276)

(75,489)

Interest income

14

95

59

213

Equity in (losses) earnings of unconsolidated affiliates

(265)

(11,431)

2,987

(13,485)

Foreign currency exchange gain (loss)

8

15

44

(1,258)

Other (expenses) income, net

(359)

455

(314)

1,820

Income (loss) before income taxes and discontinued operations

13,570

(33,403)

7,273

(58,650)

Income tax expense

(153)

(257)

(557)

(800)

Income (loss) from continuing operations

13,417

(33,660)

6,716

(59,450)

Income from discontinued operations, net of tax

2,248

1,362

3,171

1,189

Net Income (Loss)

15,665

(32,298)

9,887

(58,261)

Net (income) loss attributable to the noncontrolling interests in SHR's operating partnership

(60)

58

(38)

184

Net (income) loss attributable to the noncontrolling interests in consolidated affiliates

(6,341)

1,880

1,126

2,771

Net Income (Loss) Attributable to SHR

9,264

(30,360)

10,975

(55,306)

Preferred shareholder dividends

(6,041)

(6,041)

(24,166)

(24,166)

Net Income (Loss) Attributable to SHR Common Shareholders

$

3,223

$

(36,401)

$

(13,191)

$

(79,472)

Basic Income (Loss) Per Share:

Income (loss) from continuing operations attributable to SHR common shareholders

$

0.01

$

(0.18)

$

(0.08)

$

(0.40)

Income from discontinued operations attributable to SHR common shareholders

0.01

0.02

Net income (loss) attributable to SHR common shareholders

$

0.02

$

(0.18)

$

(0.06)

$

(0.40)

Weighted average common shares outstanding

206,814

206,836

206,334

201,109

Diluted Income (Loss) Per Share:

Income (loss) from continuing operations attributable to SHR common shareholders

$

0.01

$

(0.18)

$

(0.08)

$

(0.40)

Income from discontinued operations attributable to SHR common shareholders

0.01

0.02

Net income (loss) attributable to SHR common shareholders

$

0.02

$

(0.18)

$

(0.06)

$

(0.40)

Weighted average common shares outstanding

208,986

206,836

206,334

201,109

 

 

 

Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)

Consolidated Balance Sheets

(in thousands, except share data)

 

December 31,

2013

2012

Assets

Investment in hotel properties, net

$

1,795,338

$

1,970,560

Goodwill

38,128

40,359

Intangible assets, net of accumulated amortization of $12,213 and $10,812

29,502

30,631

Assets held for sale

135,901

Investment in unconsolidated affiliates

104,973

112,488

Cash and cash equivalents

73,655

80,074

Restricted cash and cash equivalents

75,916

58,579

Accounts receivable, net of allowance for doubtful accounts of $1,745 and $1,602

39,660

45,620

Deferred financing costs, net of accumulated amortization of $12,354 and $7,049

8,478

11,695

Deferred tax assets

2,203

Prepaid expenses and other assets

35,600

54,208

Total assets

$

2,337,151

$

2,406,417

Liabilities, Noncontrolling Interests and Equity

Liabilities:

Mortgages and other debt payable

$

1,163,696

$

1,176,297

Bank credit facility

110,000

146,000

Liabilities of assets held for sale

17,027

Accounts payable and accrued expenses

189,889

228,397

Deferred tax liabilities

46,137

47,275

Total liabilities

1,526,749

1,597,969

Commitments and contingencies

Noncontrolling interests in SHR's operating partnership

7,534

5,463

Equity:

SHR's shareholders' equity:

8.50% Series A Cumulative Redeemable Preferred Stock ($0.01 par value per share; 4,148,141 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $103,704 in the aggregate)

99,995

99,995

8.25% Series B Cumulative Redeemable Preferred Stock ($0.01 par value per share; 3,615,375 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $90,384 in the aggregate)

87,064

87,064

8.25% Series C Cumulative Redeemable Preferred Stock ($0.01 par value per share; 3,827,727 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $95,693 in the aggregate)

92,489

92,489

Common stock ($0.01 par value per share; 350,000,000 shares of common stock authorized; 205,582,838 and 204,308,710 shares of common stock issued and outstanding)

2,056

2,043

Additional paid-in capital

1,705,306

1,730,535

Accumulated deficit

(1,234,952)

(1,245,927)

Accumulated other comprehensive loss

(41,445)

(58,871)

Total SHR's shareholders' equity

710,513

707,328

Noncontrolling interests in consolidated affiliates

92,355

95,657

Total equity

802,868

802,985

Total liabilities, noncontrolling interests and equity

$

2,337,151

$

2,406,417

 

 

 

Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)

Financial Highlights

Supplemental Financial Data

(in thousands, except per share information)

 

December 31, 2013

Pro Rata Share

Consolidated

Capitalization

Shares of common stock outstanding

205,583

205,583

Operating partnership units outstanding

797

797

Restricted stock units outstanding

1,699

1,699

Combined shares and units outstanding

208,079

208,079

Common stock price at end of period

$

9.45

$

9.45

Common equity capitalization

$

1,966,347

$

1,966,347

Preferred equity capitalization (at $25.00 face value)

289,102

289,102

Consolidated debt

1,273,696

1,273,696

Pro rata share of unconsolidated debt

231,400

Pro rata share of consolidated debt

(132,794)

Cash and cash equivalents

(73,655)

(73,655)

Total enterprise value

$

3,554,096

$

3,455,490

Net Debt / Total Enterprise Value

36.6

%

34.7

%

Preferred Equity / Total Enterprise Value

8.1

%

8.4

%

Common Equity / Total Enterprise Value

55.3

%

56.9

%

 

 

 

 

Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)

Discontinued Operations

 

 

The results of operations of hotels sold or held for sale are classified as discontinued operations and segregated in the consolidated statements of operations for all periods presented. On December 12, 2013, we entered into an agreement to sell the Four Seasons Punta Mita Resort and the adjacent La Solana land parcel for $200,000,000.

 

 

The following is a summary of income from discontinued operations for the three months and years ended December 31, 2013 and 2012 (in thousands):

 

 

 

Three Months Ended December 31,

Years Ended December 31,

2013

2012

2013

2012

Hotel operating revenues

$

12,300

$

11,262

$

37,964

$

33,100

Operating costs and expenses

9,061

8,010

30,203

26,909

Depreciation and amortization

1,052

993

4,075

4,006

Impairment losses and other charges

437

437

Total operating costs and expenses

10,113

9,440

34,278

31,352

Operating income

2,187

1,822

3,686

1,748

Interest income

4

Foreign currency exchange (loss) gain

(142)

79

(1)

(352)

Other income, net

375

375

Income tax expense

(172)

(539)

(889)

(211)

Income from discontinued operations

$

2,248

$

1,362

$

3,171

$

1,189

 

 

Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)

Investments in Unconsolidated Affiliates

(in thousands)

 

We have a 36.4% and 50.0% ownership interest in the Hotel del Coronado and the Fairmont Scottsdale Princess hotel, respectively. We account for these investments using the equity method of accounting.

 

Three Months Ended December 31, 2013

Three Months Ended December 31, 2012

Hotel del

Coronado

Fairmont Scottsdale

Princess

Total

Hotel del

Coronado

Fairmont Scottsdale

Princess

Total

Total revenues (100%)

$

33,115

$

23,634

$

56,749

$

29,888

$

20,546

$

50,434

Property EBITDA (100%)

$

8,668

$

4,111

$

12,779

$

7,201

$

3,034



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