Company Results

Summit Hotel Properties Reports Strong Revenue Growth for Fourth Quarter and Full Year 2013

2013 same-store RevPAR grew to $73.79, an increase of 7.0 percent over the same period in 2012. Same-store ADR grew to $102.03, an increase of 4.9 percent from 2012. Same-store occupancy grew by 140 basis points to 72.3 percent.

Summit Hotel Properties

Summit Hotel Properties, Inc. (NYSE: INN) today announced results for the fourth quarter and full year ended December 31, 2013.

“We are extremely pleased with the performance of our portfolio in 2013. Despite the significant revenue disruption we experienced as a result of the government shutdown in early October, our fourth quarter was particularly strong and finished well above our initial expectations. The uncertain and volatile economic conditions early in the quarter undoubtedly affected our outlook,” said Dan Hansen, Summit’s President and CEO. “We believe we are in a great position for revenue and earnings growth heading into what we consider the middle portion of the current lodging cycle. With our aggressive acquisition strategy and selective dispositions over the last several quarters, in addition to a solid balance sheet with ample liquidity, we believe our portfolio is in a prime position for outsized growth over the next several years.”

The Company’s results included the following:

  Three Months Ended December 31,   Twelve Months Ended December 31,
2013   2012 2013   2012
($ in thousands, except per unit and RevPAR data)
Total Revenues $ 77,956 $ 45,109 $ 298,958 $ 161,700
EBITDA ¹ $ 21,911 $ 11,656 $ 82,995 $ 47,041
Adjusted EBITDA ¹ $ 21,306 $ 11,423 $ 93,436 $ 52,113
FFO ¹ $ 4,568 $ 5,661 $ 48,556 $ 28,130
Adjusted FFO ¹ $ 12,021 $ 7,571 $ 59,290 $ 33,570
FFO per diluted unit ¹ $ 0.05 $ 0.11 $ 0.66 $ 0.69
Adjusted FFO per diluted unit ¹ $ 0.14 $ 0.15 $ 0.81 $ 0.82
 

Pro Forma ²

RevPAR $ 77.12 $ 72.13 $ 82.25 $ 77.83
RevPAR growth 6.9% 5.7%
Hotel EBITDA $ 24,100 $ 21,290 $ 113,522 $ 104,611
Hotel EBITDA margin 30.9% 29.3% 34.6% 33.6%
Hotel EBITDA margin growth 165 bps 92 bps
 

¹ See tables later in this press release for a reconciliation of net income (loss) to earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, funds from operations (“FFO”), FFO per diluted unit, adjusted FFO and adjusted FFO per diluted unit. EBITDA, adjusted EBITDA, FFO, FFO per diluted unit, adjusted FFO and adjusted FFO per diluted unit, as well as hotel EBITDA (hotel revenues less hotel operating expenses), are non-GAAP financial measures. See further discussions of these non-GAAP measures later in this press release.

² Unless expressly stated otherwise in this release, all pro forma information includes operating results for 84 hotels owned as of December 31, 2013 as if each hotel had been owned by the Company since January 1, 2012, which excludes the 213-guestroom Hyatt Place, Minneapolis, Minn. acquired on December 31, 2013, and also excludes the following three hotels located in Fort Smith, Ark. that were held for sale at December 31, 2013: the 89-guestroom AmericInn Hotel & Suites; the 57-guestroom Aspen Hotel & Suites; and the 178-guestroom Hampton Inn. As a result, these pro forma operating measures include operating results for certain hotels for periods prior to the Company’s ownership.

2013 Highlights

  • Same-Store RevPAR: 2013 same-store revenue per available room (“RevPAR”) grew to $73.79, an increase of 7.0 percent over the same period in 2012. Same-store average daily rate (“ADR”) grew to $102.03, an increase of 4.9 percent from 2012. Same-store occupancy grew by 140 basis points to 72.3 percent.
  • Pro Forma RevPAR: 2013 pro forma RevPAR grew to $82.25, an increase of 5.7 percent over the same period in 2012. Pro forma ADR grew to $112.23, an increase of 4.5 percent from 2012. Pro forma occupancy grew by 81 basis points to 73.3 percent.
  • Pro Forma Hotel EBITDA: 2013 pro forma hotel EBITDA was $113.5 million, an increase of 8.5 percent over 2012.
  • Pro Forma Hotel EBITDA Margin: Pro forma hotel EBITDA margin expanded by 92 basis points compared with the same period in 2012. Pro forma hotel EBITDA margin is defined as pro forma hotel EBITDA as a percentage of pro forma total revenue.
  • Adjusted EBITDA: Adjusted EBITDA increased to $93.4 million from $52.1 million in the same period in 2012, an increase of $41.3 million or 79.3 percent. Adjusted EBITDA for the year includes $0.6 million of charges associated with the consolidation of the Company’s corporate office to Austin, Texas.
  • Adjusted FFO: Adjusted funds from operations (“AFFO”) for the full year 2013 was $59.3 million or $0.81 per diluted unit.
  • Acquisitions: During the twelve months of 2013, the Company acquired 19 hotels comprising 3,033 guestrooms, for a total purchase price of $475.6 million.

“2013 was a great year for us and I am very pleased with all that our team accomplished,” Hansen stated. “After great results in 2012, during which our same-store hotels posted RevPAR growth of 11.7 percent, our 2013 same-store RevPAR growth of 7.0 percent highlights the strength and quality of our portfolio.”

Full Year 2013 INN vs. STR * Results
    Occupancy   ADR   RevPAR
INN Same-store   2.0%   4.9%   7.0%
Overall US *   1.5%   3.9%   5.4%
Upscale *   1.2%   4.1%   5.3%

* STR Quarterly Hotel Review, Volume 13, Issue Q4.

 

 

Fourth Quarter Highlights

  • Same-Store RevPAR: Same-store RevPAR in the fourth quarter of 2013 grew to $67.82, an increase of 6.1 percent over the same period in 2012. Same-store ADR improved to $99.76, an increase of 3.7 percent from the fourth quarter of 2012. Same-store occupancy grew by 157 basis points to 68.0 percent.
  • Pro Forma RevPAR: Pro forma RevPAR in the fourth quarter of 2013 grew to $77.12, an increase of 6.9 percent over the same period in 2012. Pro forma ADR grew to $110.68, an increase of 4.8 percent from the fourth quarter of 2012. Pro forma occupancy increased by 141 basis points to 69.7 percent.
  • Pro Forma Hotel EBITDA: Pro forma hotel EBITDA for the fourth quarter of 2013 was $24.1 million, an increase of 13.2 percent over the same period of 2012.
  • Pro Forma Hotel EBITDA Margin: Pro forma hotel EBITDA margin expanded by 165 basis points compared with the same period in 2012.
  • Adjusted EBITDA: Adjusted EBITDA increased to $21.3 million from $11.4 million in the same period in 2012, an increase of $9.9 million or 86.8 percent. Adjusted EBITDA for the quarter includes $0.2 million of charges associated with the consolidation of the Company’s corporate office to Austin, Texas.
  • Adjusted FFO: Adjusted FFO for the quarter was $12.0 million, or $0.14 per diluted unit.
  • Acquisitions: During the fourth quarter of 2013, the Company acquired three hotels comprising 436 guestrooms, for a total purchase price of $63.4 million.
  • Dividends: On January 30, 2014, the Company declared an $0.1125 per share quarterly dividend on its common stock, a $0.578125 per share quarterly dividend on its 9.25 percent Series A Cumulative Redeemable Preferred Stock, a $0.4921875 per share quarterly dividend on its 7.875 percent Series B Cumulative Redeemable Preferred Stock, and a $0.4453125 per share quarterly dividend on its 7.125 percent Series C Cumulative Redeemable Preferred Stock. Based on the closing price of the Company’s common stock on March 14, 2014, the annualized dividend yield on the Company’s common stock was 4.9 percent.

 

Capital Markets

During 2013, the Company raised $382.4 million in net proceeds from two common stock offerings and one preferred stock offering.

“The capital transactions we completed in 2013 allowed us to continue executing on our strategic growth,” said Executive Vice President and CFO Stuart Becker. “We have a solid balance sheet with ample runway to execute on additional acquisitions which, in addition to our high quality portfolio today, we anticipate will help continue per share growth for our shareholders.”

At December 31, 2013, the Company had total outstanding debt of $435.6 million. During 2013, the Company:

  • Closed on $187.7 million of term debt at an average interest rate of 4.83 percent. This amount excludes the $92.0 million interim loan with KeyBank N.A., which was closed in May 2013 and subsequently repaid in full in October 2013.
  • Retired $43.7 million of debt bearing an average interest rate of 5.40 percent. This also excludes the $92.0 million interim loan with KeyBank N.A.

As of March 14, 2014, the Company has $161.0 million drawn, including the $75.0 million term loan and $14.0 million in standby letters of credit, and has $117.3 million available to borrow on its revolving credit facility.

Capital Investment

Acquisitions

During 2013, the Company completed 19 acquisitions, comprising a total 3,033 guestrooms, for a total purchase price of $475.6 million. Full year 2013 pro forma RevPAR among the 19 hotels was $97.31 as compared to the Company’s same-store RevPAR of $73.79 for the same period.

“We have built a portfolio of premium assets in strong growth markets, including 47 acquisitions since our 2011 IPO. These acquisitions are helping to create long-term shareholder value,” Hansen said. “We are thrilled with our expansion on the West Coast over the last twelve months and look forward to the strong growth these properties will bring to our portfolio.”

 
2013
        Purchase  

Date

Hotel

Location

Rooms

Price *

Manager

01/22/13 Hyatt Place Chicago (Hoffman Estates), Ill. 126 $ 9.2 Hyatt
01/22/13 Hyatt Place Orlando (Convention), Fla. 149 $ 12.3 Hyatt
01/22/13 Hyatt Place Orlando (Universal), Fla. 151 $ 11.8 Hyatt
02/11/13 Holiday Inn Express & Suites San Francisco, Calif. 252 $ 60.5 IHG
03/11/13 Courtyard by Marriott New Orleans (French Quarter), La. 140 $ 25.7 Marriott
03/11/13 Courtyard by Marriott New Orleans (Convention), La. 202 $ 30.8 Marriott
03/11/13 Courtyard by Marriott New Orleans (Metairie), La. 153 $ 23.5 Marriott
03/11/13 Residence Inn New Orleans (Metairie), La. 120 $ 19.9 Marriott
03/11/13 SpringHill Suites New Orleans (Convention), La. 208 $ 33.1 Marriott
04/30/13 Hilton Garden Inn Greenville, S.C. 120 $ 15.3 Kana
05/21/13 Holiday Inn Express & Suites Minneapolis (Minnetonka), Minn. 93 $ 6.9 Interstate Hotels
05/21/13 Hilton Garden Inn Minneapolis (Eden Prairie), Minn. 97 $ 10.2 Interstate Hotels
05/23/13 Fairfield Inn & Suites Louisville, Ky. 135 $ 25.0 White Lodging
05/23/13 SpringHill Suites Louisville, Ky. 198 $ 39.1 White Lodging
05/23/13 Courtyard by Marriott Indianapolis, Ind. 297 $ 58.7 White Lodging
05/23/13 SpringHill Suites Indianapolis, Ind. 156 $ 30.2 White Lodging
10/01/13 Hampton Inn & Suites Ventura (Camarillo), Calif. 115 $ 15.8 Tsunami Hotel Mgmt.
10/08/13 Hampton Inn & Suites San Diego (Poway), Calif. 108 $ 15.2 Tsunami Hotel Mgmt.
12/31/13   Hyatt Place   Minneapolis, Minn.   213   $ 32.5   Hyatt
    Total       3,033   $ 475.6    

*in millions

 

Renovation Capital

The Company invested $46.9 million on renovations in 2013; $18.4 million was deployed in the fourth quarter. Among the 17 major renovations completed in 2013, projects ranged from lobby and public space improvements to complete guestroom renovations, including furniture, soft goods and guest bathrooms.

One of the Company’s largest capital projects in 2013 included two Hyatt Place properties acquired in January 2013 and located in Orlando, Fla. These properties were updated to include completely re-designed lobbies and common areas. They both now feature new bars and lounge areas for guests to enjoy. As well, all public restrooms were remodeled. All guestrooms were updated with new beds, carpeting and wall coverings. An additional guestroom was added at the Convention Center property to better utilize previously unused space. However, the Universal property was lacking the necessary office space for staff. The Company converted a guestroom at this property into an office, resulting in a net-zero change in guestroom count among the two properties. The swimming pools were also completely renovated with replastering, new outdoor pool decks and new poolside furniture. The fitness centers were renovated and updated with new equipment. These renovations were completed with a new roof and fresh exterior paint. The renovations totaled $3.7 million and were completed in the fourth quarter of 2013.

Another large project completed was the full renovation of the Courtyard by Marriott in New Orleans (Metairie), La. The guestrooms were updated with the new Marriott “Gen Next CYnergy Package.” The new guestroom design features the new color palette and included all new furniture, beds, wall coverings, lighting, bath tile and wall paint. The renovation also included an exterior refinish and a complete renovation of the courtyard and garden area. The exercise room was updated with all new finishes and fitness equipment. While the lobby and bistro were renovated with the “Courtyard Refreshing Business” package in 2012, the common areas were updated to include new lighting, hallway carpet, tile and wall coverings. This renovation totaled approximately $2.8 million and was completed in September 2013.

“We continue to proactively deploy renovation capital into our portfolio where we see opportunities for improvement,” Hansen said. “Our team has done an excellent job of executing on renovation projects and we are thrilled with the increased revenues, better margins and the improvement in competitive set index rankings we are realizing among our renovated properties.”

Dispositions

During 2013, the Company sold fifteen hotels with a total of 1,143 guestrooms, and five parcels of land that it no longer considers strategic, for a total sale price of $58.6 million.

“We have now closed nine of the previously announced planned dispositions and feel great about the position of our portfolio,” Hansen stated. “The capital we have generated through the sales of less strategic properties helps strengthen our balance sheet and enables us to continue executing on deals that are accretive to our portfolio and will create earnings growth.”

Balance Sheet

  • At December 31, 2013, the Company had total outstanding debt of $435.6 million and $46.7 million of cash and cash equivalents. Subject to the borrowing base as of December 31, 2013, maximum borrowing capacity was $270.7 million under the senior unsecured credit facility, including both the revolver and term portions of the facility. At December 31, 2013, the Company had $75.0 million outstanding on its senior unsecured term facility, $0.2 million in standby letters of credit and $195.5 million available to borrow. In addition, the Company had 13 unencumbered hotels.
  • The Company’s weighted average interest rate on its debt outstanding at December 31, 2013 was 5.03 percent.
  • At December 31, 2013, the Company’s total net debt to trailing twelve month adjusted EBITDA was 4.2x.
  • Management identified a material weakness in controls related to individual hotels’ balance sheets that largely resulted in reclassification entries within certain balance sheet line items.

Subsequent Events

  • On January 9, 2014, the Company acquired the 182-guestroom Hilton Garden Inn located in Houston, Texas for a purchase price of $37.5 million.
  • On January 10, 2014, the Company acquired the 98-guestroom Hampton Inn located in Santa Barbara (Goleta), Calif., for a purchase price of $27.9 million.

  • On January 17, 2014, the Company completed the disposition of the 89-guestroom AmericInn Hotel & Suites and the 57-guestroom Aspen Hotel & Suites located in Fort Smith, Ark. for a total sales price of $3.1 million.
  • On January 24, 2014, the Company acquired the 101-guestroom Four Points by Sheraton located in San Francisco, Calif., for a purchase price of $21.3 million.
  • On March 14, 2014, the Company acquired the 210-guestroom DoubleTree by Hilton located in San Francisco, Calif., for a purchase price of $39.1 million.

 

2014 Outlook

The Company provides guidance for the first quarter and full year 2014 based on 89 current hotels.¹ This outlook includes activity subsequent to December 31, 2013. Except as described in footnote 1 below, it assumes no additional hotels are acquired or sold and no additional issuances of equity securities.

¹ In addition to the Company’s portfolio of 88 hotels (10,908 guestrooms) at December 31, 2013, includes the following four properties purchased subsequent to December 31, 2013: the 98-guestroom Hampton Inn, Santa Barbara (Goleta), Calif.; the 182-guestroom Hilton Garden Inn, Houston, Texas; the 101-guestroom Four Points by Sheraton, San Francisco, Calif.; and the 210-guestroom DoubleTree by Hilton San Francisco, Calif. Also excludes the following three properties located in Fort Smith, Ark. that were sold subsequent to or held for sale at December 31, 2013: the 89-guestroom AmericInn Hotel & Suites; the 57-guestroom Aspen Hotel & Suites; and the 178-guestroom Hampton Inn.

² First quarter RevPAR guidance anticipates 150 to 200 basis points of RevPAR disruption and $0.7 million to $0.9 million of EBITDA disruption in the first quarter due to renovation work at eleven hotels.

³ The Company includes the 178-guestroom Hampton Inn, Fort Smith, Ark. in Adjusted FFO calculations; this property however is excluded from all pro forma calculations as noted.

4 Assumed weighted average diluted common units of 86,585,000 for first quarter 2014; 86,616,000 for full year 2014.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused primarily on acquiring and owning premium-branded select-service hotels in the upscale and upper midscale segments of the lodging industry. As of March 17, 2014, the Company’s portfolio consisted of 90 hotels with a total of 11,353 guestrooms located in 22 states. Since its initial public offering in February 2011, the Company has acquired 47 hotel properties, totaling 6,539 guestrooms for a total purchase price of $917.3 million.

SUMMIT HOTEL PROPERTIES, INC.
Consolidated Balance Sheets
December 31, 2013 and December 31, 2012

Amounts in thousands

 
  December 31,   December 31,
2013 2012
ASSETS
ASSETS
Investment in hotel properties, net $ 1,149,967 $ 734,362
Investment in hotel properties under development - 10,303
Land held for development 13,748 15,802
Assets held for sale 12,224 4,836
Cash and cash equivalents 46,706 13,980
Restricted cash 38,498 3,624
Trade receivables 7,231 5,478
Prepaid expenses and other 8,876 5,311
Derivative financial instruments 253 -
Deferred charges, net 10,270 8,895
Deferred tax asset 49 3,997
Other assets   6,654   4,201
TOTAL ASSETS $ 1,294,476 $ 810,789
 
LIABILITIES AND EQUITY
 
LIABILITIES
Debt $ 435,589 $ 312,613
Accounts payable 7,583 5,013
Accrued expenses 27,154 18,985
Derivative financial instruments 1,772 641
Deferred tax liability   -   -
TOTAL LIABILITIES 472,098 337,252
 
 
COMMITMENTS AND CONTINGENCIES
Total shareholders' equity 809,840 436,819
Noncontrolling interests in operating partnership 4,722 36,718
Noncontrolling interests in joint venture   7,816   -
EQUITY 822,378 473,537
   
TOTAL LIABILITIES AND EQUITY $ 1,294,476 $ 810,789
 

 

SUMMIT HOTEL PROPERTIES, INC.
Consolidated Statements of Operations

Amounts in thousands

(Unaudited)

 
  Three months ended December 31,   Twelve months ended December 31,
2013   2012 2013   2012
REVENUE
Room revenue $ 73,505 $ 42,923 $ 283,279 $ 154,600
Other hotel operations revenue   4,451   2,186   15,679   7,100
Total revenues   77,956   45,109   298,958   161,700
 
EXPENSES
Hotel operating expenses
Rooms 21,210 13,640 80,391 45,130
Other direct 11,480 6,236 39,815 21,284
Other indirect 21,221 12,472 77,392 43,377
Other   201   177   744   651
Total hotel operating expenses 54,112 32,525 198,342 110,442
Depreciation and amortization 13,934 8,768 51,184 30,645
Corporate general and administrative
Salaries and other compensation 1,629 2,476 8,218 6,039
Other 1,255 776 4,711 3,534
Hotel property acquisition costs 332 1,478 1,886 3,050
Loss on impairment of assets   -   660   1,369   660
Total expenses   71,262   46,683   265,710   154,370
Income (loss) from operations   6,694   (1,574)   33,248   7,330
 
OTHER INCOME (EXPENSE)
Interest income 32 15 83 35
Other income (463) 234 (343) 731
Interest expense (5,260) (3,760) (20,137) (14,909)
Debt transaction costs (1,585) (10) (1,697) (661)
Gain (loss) on disposal of assets 352 - 363 (199)
Gain (loss) on derivative financial instruments   -   -   2   (2)
Total Other Income (Expense)   (6,924)   (3,521)   (21,729)   (15,005)
Income (loss) from continuing operations before income taxes (230) (5,095) 11,519 (7,675)
Income tax (expense) benefit   (3,625)   743   (4,894)   728
Income (loss) from continuing operations (3,855) (4,352) 6,625 (6,947)
Income (loss) from discontinued operations   1,780   3,603   (728)   4,677
Net income (loss) (2,075) (749) 5,897 (2,270)
Net income (loss) attributable to noncontrolling interests in:
Operating partnership (208) 72 (297) (1,194)
Joint venture   (8)   -   316   -
Net income (loss) attributable to Summit Hotel OP, LP (1,859) (821) 5,878 (1,076)
Preferred dividends   (4,147)   (1,156)   (14,590)   (4,625)
Net income (loss) attributable to common unit holders   (6,006)   (1,977)   (8,712)   (5,701)
Weighted average common units outstanding
Basic   84,767   45,667   70,327   33,717
Diluted   85,224   45,860   70,737   33,849
 

 

SUMMIT HOTEL PROPERTIES, INC.
Discontinued Operations Summary

Amounts in thousands

(Unaudited)

 
  Three months ended December 31,   Twelve months ended December 31,
2013   2012 2013   2012
 
REVENUE $ 2,329 $ 6,994 $ 19,458 $ 33,193
Hotel operating expenses 1,944 5,559 14,859 24,701
Depreciation and amortization (30) 941 1,960 4,226
Loss on impairment of assets   390   207   7,675   2,305
Income (loss) from hotel operations 25 287 (5,036) 1,961
Interest expense - 126 174 855
(Gain) loss on disposal of assets   (3,068)   (3,010)   (3,945)   (3,010)
Income (loss) before taxes 3,093 3,171 (1,265) 4,116
Income tax (expense) benefit   (1,313)   432   537   561
 
Income (loss) from discontinued operations $ 1,780 $ 3,603 $ (728) $ 4,677
 

 

SUMMIT HOTEL PROPERTIES, INC.
Reconciliation of Net Income to Non-GAAP Measures – Funds From Operations

Amounts in thousands, except per common unit

(Unaudited)

 
  Three months ended December 31,   Twelve months ended December 31,
2013   2012 2013   2012
NET INCOME (LOSS) (2,075) (749) 5,897 (2,270)
Preferred dividends (4,147) (1,156) (14,590) (4,625)
Depreciation and amortization 13,904 9,709 53,144 34,871
Loss on impairment of assets 390 867 9,044 2,965
(Gain) loss on disposal of assets (3,420) (3,010) (4,308) (2,811)
Noncontrolling interest in joint venture 8 - (316) -
Adjustments related to joint venture   (92)   -     (315)     -
Funds From Operations $ 4,568 $ 5,661 $ 48,556 $ 28,130
Per common unit $ 0.05 $ 0.11 $ 0.66 $ 0.69
 
Equity based compensation 508 422 2,124 1,205
Hotel property acquisition costs 332 1,478 1,886 3,050
Debt transaction costs 1,585 10 1,697 661
(Gain) loss on derivative - - (2) 2
Interest expense related to prepayment penalties - - - 522
Increase in deferred tax asset valuation allowance ¹   5,029   -   5,029   -
Adjusted Funds From Operations $ 12,021 $ 7,571 $ 59,290 $ 33,570
Per common unit $ 0.14 $ 0.15 $ 0.81 $ 0.82
 
Weighted average diluted common units ² 86,212 51,086 73,241 40,912
 

¹ Represents a non-cash valuation allowance related to deferred tax assets resulting from net operating loss carry forwards.

² The Company includes the outstanding units of limited partnership interest (“OP units”) in Summit Hotel OP, LP, the Company’s operating partnership, because the OP units are redeemable for shares of the Company’s common stock.

SUMMIT HOTEL PROPERTIES, INC.
Reconciliation of Net Income to Non-GAAP Measures – EBITDA

Amounts in thousands

(Unaudited)

 
Three months ended December 31,   Twelve months ended December 31,
2013   2012 2013   2012
NET INCOME (LOSS) $ (2,075) $ (749) $ 5,897 $ (2,270)
Depreciation and amortization 13,904 9,709 53,144 34,871
Interest expense 5,260 3,886 20,311 15,764
Interest income (32) (15) (83) (35)
Income tax expense (benefit) 4,938 (1,175) 4,357 (1,289)
Noncontrolling interest in joint venture 8 - (316) -
Adjustments related to joint venture   (92)   -   (315)   -
EBITDA $ 21,911 $ 11,656 $ 82,995 $ 47,041
 
Equity based compensation 508 422 2,124 1,205
Hotel property acquisition costs 332 1,478 1,886 3,050
Loss on impairment of assets 390 867 9,044 2,965
Debt transaction costs 1,585 10 1,697 661
(Gain) loss on disposal of assets (3,420) (3,010) (4,308) (2,811)
(Gain) loss on derivatives   -   -   (2)   2
Adjusted EBITDA $ 21,306 $ 11,423 $ 93,436 $ 52,113
 

 

SUMMIT HOTEL PROPERTIES, INC.
Pro Forma¹ Operational Data

Amounts in thousands

(Unaudited)

 
  Three months ended December 31,   Twelve months ended December 31,
2013   2012 2013   2012
REVENUE
Room revenue $ 73,578 $ 68,796 $ 311,347 $ 295,469
Other hotel operations revenue   4,336   3,914   17,132   15,472
Total revenue   77,914   72,710   328,479   310,941
 
EXPENSES
Hotel operating expenses
Rooms 21,093 20,155 87,126 84,313
Other direct 11,417 10,909 43,150 39,763
Other indirect 21,104 20,166 83,875 81,038
Other   200   191   806   1,216
Total operating expenses   53,814   51,421   214,957   206,330
 
Hotel EBITDA $ 24,100 $ 21,289 $ 113,522 $ 104,611
 

¹ Pro forma information includes operating results for 84 hotels owned as of December 31, 2013 as if each hotel had been owned by the Company since January 1, 2012, which excludes the 213-guestroom Hyatt Place, Minneapolis, Minn. acquired on December 31, 2013 and also excludes the following three properties located in Fort Smith, Ark. that were sold subsequent to or held for sale at December 31, 2013: the 89-guestroom AmericInn Hotel & Suites; the 57-guestroom Aspen Hotel & Suites; and the 178-guestroom Hampton Inn. As a result, these pro forma operating measures include operating results for certain hotels for periods prior to the Company’s ownership.

SUMMIT HOTEL PROPERTIES, INC.
Pro Forma¹ Statistical Data

(Unaudited)

 
Pro forma three months ended December 31,   Pro forma twelve months ended December 31,
2013   2012 2013   2012
Pro forma (84 hotels)
Rooms occupied 664,805 651,174 2,774,289 2,751,359
Rooms available 954,101 953,835 3,785,504 3,796,158
Occupancy 69.7% 68.3% 73.3% 72.5%
ADR $ 110.68 $ 105.65 $ 112.23 $ 107.39
RevPAR $ 77.12 $ 72.13 $ 82.25 $ 77.83
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