Company Results

RLJ Lodging Trust Second Quarter 2014 Pro Forma RevPAR Up 6.6%

Hotel EBITDA Margin achieved a record high at 38.5% - Raises guidance across the board to reflect strong performance and acquisitions - Announces 36% dividend increase to $0.30 per share

RLJ Lodging Trust

RLJ Lodging Trust (NYSE: RLJ) yesterday reported results for the three and six months ended June 30, 2014.

Second Quarter Highlights

  • Pro forma RevPAR increased 6.6%, Pro forma ADR increased 2.8%, and Pro forma Occupancy increased 3.6%
  • Pro forma Hotel EBITDA Margin increased 95 basis points to 38.5%
  • Pro forma Consolidated Hotel EBITDA increased 8.9% to $114.6 million
  • Adjusted FFO increased 25.3% to $93.6 million
  • Acquired three hotels in attractive high-growth markets for almost $200 million, and disposed of one hotel for $13.5 million
  • Declared a cash dividend of $0.22 per share for the quarter

“We are very pleased with the strong performance of our portfolio. Our EBITDA margin this quarter was a record high for us since our IPO,” commented Thomas J. Baltimore, Jr., President and Chief Executive Officer. “We continue to execute our growth strategy through both organic and external growth. In total, we have acquired more than $550 million of assets this year. As we look forward, we are better positioned than ever to deliver continued growth and value to our shareholders.”

Financial and Operating Results

Performance metrics such as Occupancy, Average Daily Rate (“ADR”), Revenue Per Available Room (“RevPAR”), Hotel EBITDA, and Hotel EBITDA Margin are pro forma. The prefix “pro forma” as defined by the Company, denotes operating results which include results for periods prior to its ownership. Pro forma RevPAR and Pro forma Hotel EBITDA Margin are reported on a comparable basis and therefore exclude hotels sold during the period and non-comparable hotels that were not open for operation or closed for renovations for comparable periods. Explanations of EBITDA, Adjusted EBITDA, Hotel EBITDA, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included at the end of this release.

Pro forma RevPAR for the three months ended June 30, 2014, increased 6.6% over the comparable period in 2013, driven by a Pro forma ADR increase of 2.8% and a Pro forma Occupancy increase of 3.6%. Among the Company’s top six markets, the best performers in the quarter were Houston, Denver, and Austin, which experienced RevPAR growth of 12.3%, 9.7%, and 7.3%, respectively. For the six months ended June 30, 2014, Pro forma RevPAR increased 6.3% over the comparable period in 2013, driven by a Pro forma ADR increase of 3.1% and a Pro forma Occupancy increase of 3.2%.

Pro forma Hotel EBITDA Margin for the three months ended June 30, 2014, increased 95 basis points over the comparable period in 2013 to 38.5%, adjusted to normalize 2013 ground rent at the Courtyard Waikiki Beach. For the six months ended June 30, 2014, Pro forma Hotel EBITDA margin increased 40 basis points over the comparable period in 2013 to 35.4%.

Pro forma Consolidated Hotel EBITDA includes the results of non-comparable hotels and is adjusted to normalize 2013 ground rent at the Courtyard Waikiki Beach. For the three months ended June 30, 2014, Pro forma Consolidated Hotel EBITDA increased $9.4 million to $114.6 million, representing an 8.9% increase over the comparable period in 2013. For the six months ended June 30, 2014, Pro forma Consolidated Hotel EBITDA increased $12.5 million to $194.0 million, representing a 6.9% increase over the comparable period in 2013.

Adjusted EBITDA for the three months ended June 30, 2014, increased $15.6 million to $107.6 million, representing a 16.9% increase over the comparable period in 2013. For the six months ended June 30, 2014, Adjusted EBITDA increased $21.6 million to $175.0 million, representing an increase of 14.1% over the comparable period in 2013.

Adjusted FFO for the three months ended June 30, 2014, increased $18.9 million to $93.6 million, representing a 25.3% increase over the comparable period in 2013. For the six months ended June 30, 2014, Adjusted FFO increased $28.4 million to $147.2 million, representing an increase of 23.9% over the comparable period in 2013.

Adjusted FFO per diluted share and unit for the three and six months ended June 30, 2014, was $0.74 and $1.17, respectively, based on the Company’s diluted weighted-average common shares and units outstanding of 127.4 million and 125.6 million for each period, respectively.

Non-recurring items which are noteworthy for the three months ended June 30, 2014, include a gain of $1.3 million associated with the sale of a hotel. For the six months ended June 30, 2014, non-recurring items consisted of a loss on disposal of $1.3 million and approximately $1.1 million related to the loss on defeasance and accelerated amortization of deferred financing fees, both of which are associated with hotels that have been sold.

Non-recurring items are included in net income attributable to common shareholders but have been excluded from Adjusted EBITDA and Adjusted FFO, as applicable. A complete listing is provided in the Non-GAAP reconciliation tables for the three and six months ended June 30, 2014 and 2013.

Net income attributable to common shareholders for the three months ended June 30, 2014, was $52.9 million compared to $40.5 million for the comparable period in 2013. For the six months ended June 30, 2014, net income attributable to common shareholders was $64.8 million, compared to $49.0 million for the comparable period in 2013.

Net cash flow from operating activities for the six months ended June 30, 2014, totaled $132.0 million compared to $99.7 million for the comparable period in 2013.

Acquisitions / Dispositions

During the three months ended June 30, 2014, the Company acquired three hotels in attractive high-growth markets: the 256-room Courtyard Portland City Center in Portland, Oregon, the 293-room Embassy Suites Irvine Orange County in Irvine, California, and the 231-room Hilton Cabana Miami Beach in Miami, Florida.

On May 22, 2014, the Company acquired two hotels located on the West Coast: the 256-room Courtyard Portland City Center and the 293-room Embassy Suites Irvine Orange County in an off-market transaction for a total purchase price of $120.0 million, or approximately $219,000 per key. The purchase price represents a forward capitalization rate of approximately 7.4% on the hotels' combined projected 2015 net operating income.

On June 19, 2014, the Company completed the previously announced acquisition of the 231-room Hilton Cabana Miami Beach for a gross purchase price of $71.7 million, or approximately $310,000 per key. The purchase price represents a forward capitalization rate of approximately 8.5% on the hotel's projected 2015 net operating income.

On June 18, 2014, the Company sold the 194-room Holiday Inn Austin NW Arboretum Area in Austin, Texas for $13.5 million. The sale price represents a fully loaded capitalization rate of approximately 7.9% on the hotel's projected 2014 net operating income.

Balance Sheet

In May 2014, the Company completed an underwritten public offering of 9,200,000 common shares at a public offering price of $26.45 per share. The total shares include 1,200,000 shares sold pursuant to the underwriters' option to purchase additional shares. Net proceeds from the public offering after deducting the underwriting discount and other offering costs were approximately $232.8 million.

As of June 30, 2014, the Company had $373.7 million of unrestricted cash on its balance sheet, $300.0 million available on its revolving credit facility, and approximately $1.6 billion of debt outstanding. The Company’s ratio of net debt to Adjusted EBITDA for the trailing twelve month period ended June 30, 2014, was 3.4 times.

Dividends

The Company’s Board of Trustees declared a cash dividend of $0.22 per common share of beneficial interest. The dividend was paid on July 15, 2014, to shareholders of record as of June 30, 2014.

Subsequent Events

Subsequent to quarter end, the Company acquired the 194-room Hyatt Atlanta Midtown in Atlanta, Georgia for $49.5 million, or approximately $255,000 per key. The purchase price represents a forward capitalization rate of approximately 8.0% on the hotel's projected 2015 net operating income.

The Company’s Board of Trustees also approved an increase to the Company's upcoming third quarter dividend. The third quarter dividend distribution of $0.30 per common share of beneficial interest represents an increase of $0.08, or 36%, to the prior quarter. The increase is a result of the continuous improvements in operations and the more than $550.0 million of acquisitions completed in 2014.

If necessary, the Company may also pay a special dividend in the fourth quarter to meet its general policy of distributing 100% of its REIT taxable income. Future dividends are subject to approval by the Board of Trustees.

2014 Outlook

The Company’s outlook has been updated to include recent acquisitions, including the Hyatt Atlanta Midtown, and remove income from dispositions. The outlook excludes potential future acquisitions and dispositions, which could result in a material change to the Company’s outlook. The 2014 outlook is also based on a number of other assumptions, many of which are outside the Company’s control and all of which are subject to change.

Pro forma operating statistics include results for periods prior to the Company’s ownership and therefore assume the hotels were owned since January 1, 2013. Pro forma Consolidated Hotel EBITDA includes approximately $8.8 million of prior ownership Hotel EBITDA for recently acquired hotels that is not included in the Company’s Adjusted EBITDA or Adjusted FFO. Pro forma guidance removes income from hotels that were sold. For the full year 2014, the Company anticipates:

About Us

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust focused on acquiring premium-branded, focused-service and compact full-service hotels. The Company owns 149 properties, comprised of 147 hotels with approximately 23,100 rooms and two planned hotel conversions, located in 21 states and the District of Columbia.

RLJ Lodging Trust

Non-GAAP and Accounting Commentary

Non-Generally Accepted Accounting Principles (“GAAP”) Financial Measures

The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) Adjusted EBITDA, and (5) Hotel EBITDA. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as a measure of its operating performance. FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, and Hotel EBITDA as calculated by the Company, may not be comparable to other companies that do not define such terms exactly as the Company.

Funds From Operations (“FFO”)

The Company calculates FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding gains or losses from sales of real estate, impairment, items classified by GAAP as extraordinary, the cumulative effect of changes in accounting principles, plus depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company’s operations. The Company believes that the presentation of FFO provides useful information to investors regarding the Company’s operating performance and can facilitate comparisons of operating performance between periods and between real estate investment trusts (“REITs”), even though FFO does not represent an amount that accrues directly to common shareholders.

The Company’s calculation of FFO may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. Additionally, FFO may not be helpful when comparing the Company to non-REITs. The Company presents FFO attributable to common shareholders, which includes unitholders of limited partnership interest (“OP units”) in RLJ Lodging Trust, L.P., the Company’s operating partnership, because the OP units are redeemable for common shares of the Company. The Company believes it is meaningful for the investor to understand FFO attributable to all common shares and OP units.

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)

EBITDA is defined as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sales of assets; and (3) depreciation and amortization. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions. The Company presents EBITDA attributable to common shareholders, which includes OP units, because the OP units are redeemable for common shares of the Company. The Company believes it is meaningful for the investor to understand EBITDA attributable to all common shares and OP units.

Hotel EBITDA

With respect to Hotel EBITDA, the Company believes that excluding the effect of corporate-level expenses and non-cash items provides a more complete understanding of the operating results over which individual hotels and operators have direct control. The Company believes property-level results provide investors with supplemental information about the ongoing operational performance of the Company’s hotels and the effectiveness of third-party management companies.

Pro forma Hotel EBITDA includes hotel results from prior ownership periods and excludes non-comparable hotels which were not open for operation or closed for renovations for comparable periods. Pro forma Consolidated Hotel EBITDA includes hotel results from prior ownership periods and includes the results of non-comparable hotels which were not open for operation or closed for renovations during the comparable periods.

Adjustments to FFO and EBITDA

The Company adjusts FFO and EBITDA for certain additional items, such as transaction and pursuit costs, the amortization of share-based compensation, and certain other expenses that the Company considers outside the normal course of business. The Company believes that Adjusted FFO and Adjusted EBITDA provide useful supplemental information to investors regarding its ongoing operating performance that, when considered with net income, FFO and EBITDA, is beneficial to an investor’s understanding of its operating performance. The Company adjusts FFO and EBITDA for the following items, as applicable:

  • Transaction and Pursuit Costs: The Company excludes transaction and pursuit costs expensed during the period because it believes they do not reflect the underlying performance of the Company.
  • Non-Cash Expenses: The Company excludes the effect of certain non-cash items because it believes they do not reflect the underlying performance of the Company. The Company has excluded the amortization of share based compensation, non-cash gain or loss on the disposal of assets, non-cash gain or loss on the extinguishment of indebtedness, and the accelerated amortization of deferred financing fees.
  • Other Non-operational Expenses: The Company excludes the effect of certain non-operational expenses because it believes they do not reflect the underlying performance of the Company. The Company has excluded legal expenses it considered outside the normal course of business.

New Accounting Treatment for Discontinued Operations

The Company adopted Financial Accounting Standards Board Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Going forward, the Company will only classify dispositions in discontinued operations if they represent a strategic shift in operations (e.g., disposal of a major line of business). The 14 assets sold during the six months ended June 30, 2014, do not represent a strategic shift in operations for the Company.

 
RLJ Lodging Trust
Consolidated Balance Sheets

(Amounts in thousands, except share and per share data)

             
  June 30,   December31,
2014 2013
    (unaudited)        
Assets
Investment in hotels and other properties, net $ 3,590,978 $ 3,241,163
Cash and cash equivalents 373,732 332,248
Restricted cash reserves 60,610 62,430
Hotel and other receivables, net of allowance of $178 and $234, respectively 35,009 22,762
Deferred financing costs, net 10,917 11,599
Deferred income tax asset 3,256 2,529
Purchase deposits 1,000 7,246
Prepaid expense and other assets 33,262   37,997  
Total assets $ 4,108,764   $ 3,717,974  
Liabilities and Equity
Mortgage loans $ 534,900 $ 559,665
Term loans 1,025,000 850,000
Accounts payable and accrued expense 117,857 115,011
Deferred income tax liability 3,494 3,548
Advance deposits and deferred revenue 10,950 9,851
Accrued interest 2,680 2,695
Distributions payable 30,919   30,870  
Total liabilities 1,725,800 1,571,640
Equity
Shareholders’ equity:
Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized; zero shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively.
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 132,084,354 and 122,640,042 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively. 1,321 1,226
Additional paid-in-capital 2,415,578 2,178,004
Accumulated other comprehensive loss (14,215 ) (5,941 )
Distributions in excess of net earnings (37,223 ) (45,522 )
Total shareholders’ equity 2,365,461 2,127,767
Noncontrolling interest
Noncontrolling interest in joint venture 6,169 7,306
Noncontrolling interest in Operating Partnership 11,334   11,261  
Total noncontrolling interest 17,503   18,567  
Total equity 2,382,964   2,146,334  
Total liabilities and equity $ 4,108,764   $ 3,717,974  
 
 
RLJ Lodging Trust
Consolidated Statements of Operations

(Amounts in thousands, except share and per share data)

(Unaudited)

         
  For the three months ended   For the six months ended
June 30, June 30,
    2014     2013     2014     2013  
Revenue    
Operating revenue
Room revenue $ 259,447 $ 228,390 $ 465,472 $ 413,839
Food and beverage revenue 27,481 25,088 50,848 48,299
Other operating department revenue 8,119   7,345   15,100   13,555  
Total revenue 295,047   260,823   531,420   475,693  
Expense
Operating expense
Room expense 54,136 47,065 101,657 90,162
Food and beverage expense 18,746 17,220 35,619 33,777
Management fee expense 11,957 9,370 21,070 16,751
Other operating expense 78,932   73,070   151,008   139,437  
Total property operating expense 163,771 146,725 309,354 280,127
Depreciation and amortization 35,422 31,853 68,298 63,197
Property tax, insurance and other 17,938 16,536 35,190 31,245
General and administrative 10,135 9,084 20,264 17,882
Transaction and pursuit costs 2,411   1,255   3,895   2,344  
Total operating expense 229,677   205,453   437,001   394,795  
Operating income 65,370 55,370 94,419 80,898
Other income 405 91 515 170
Interest income 962 240 1,285 536
Interest expense (14,142 ) (16,785 ) (28,788 ) (33,659 )
Income from continuing operations before income tax expense 52,595 38,916 67,431 47,945
Income tax expense (494 ) (345 ) (788 ) (571 )
Income from continuing operations 52,101 38,571 66,643 47,374
Income from discontinued operations 2,410 2,191
Gain (loss) on disposal of hotel properties 1,260     (1,297 )  
Net income 53,361 40,981 65,346 49,565
Net income attributable to non-controlling interests
Noncontrolling interest in consolidated joint venture (79 ) (203 ) (45 ) (155 )
Noncontrolling interest in common units of Operating Partnership (378 ) (268 ) (465 ) (407 )
Net income attributable to common shareholders $ 52,904   $ 40,510   $ 64,836   $ 49,003  
Basic per common share data
Income from continuing operations attributable to common shareholders, including loss on disposal of hotel properties $ 0.42 $ 0.31 $ 0.52 $ 0.41
Discontinued operations   0.02     0.02  
Net income per share attributable to common shareholders $ 0.42   $ 0.33   $ 0.52   $ 0.43  
Weighted-average number of common shares 125,260,607   121,520,253   123,510,507   114,208,435  
Diluted per common share data
Income from continuing operations attributable to common shareholders, including loss on disposal of hotel properties $ 0.42 $ 0.31 $ 0.52 $ 0.41
Discontinued operations   0.02     0.02  
Net income per share attributable to common shareholders $ 0.42   $ 0.33   $ 0.52   $ 0.43  
Weighted-average number of common shares 126,475,051   122,280,431   124,696,925   114,912,726  
 
 
RLJ Lodging Trust
Reconciliation of Net Income to Non-GAAP Measures

(Amounts in thousands, except per share data)

(Unaudited)

 
Funds From Operations (FFO)
         
 

For the three months ended

 

For the six months ended

June 30,

June 30,

    2014     2013     2014     2013  
Net income $ 53,361   $ 40,981 $ 65,346   $ 49,565
Depreciation and amortization 35,422 31,853 68,298 63,197
(Gain) Loss on disposal of hotel properties (1,260 ) 1,297
Gain on extinguishment of indebtedness (2,425 ) (2,425 )
Noncontrolling interest in joint venture (79 ) (203 ) (45 ) (155 )
Adjustments related to discontinued operations (1) 65 156
Adjustments related to joint venture (2) (46 ) (121 ) (93 ) (242 )
FFO attributable to common shareholders 87,398 70,150 134,803 110,096
Transaction and pursuit costs 2,411 1,255 3,895 2,344
Amortization of share based compensation 3,820 3,334 7,393 6,348
Loan related costs (3) 1,073
Other expenses (4)   11     24  
Adjusted FFO $ 93,629   $ 74,750   $ 147,164   $ 118,812  
 
Adjusted FFO per common share and unit-basic $ 0.74 $ 0.61 $ 1.18 $ 1.03
Adjusted FFO per common share and unit-diluted $ 0.74 $ 0.61 $ 1.17 $ 1.03
 
Basic weighted-average common shares and units outstanding (5) 126,155 122,414 124,405 115,102
Diluted weighted-average common shares and units outstanding (5) 127,369 123,174 125,591 115,807
 

Note:

(1)   Includes depreciation and amortization expense from discontinued operations.
(2) Includes depreciation and amortization expense allocated to the noncontrolling interest in the joint venture.
(3) Represents loss on defeasance and accelerated amortization of deferred financing fees.
(4) Represents legal expenses outside the normal course of operations.
(5) Includes 0.9 million operating partnership units.
 
 
RLJ Lodging Trust
Reconciliation of Net Income to Non-GAAP Measures

(Amounts in thousands)

(Unaudited)

 
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
         
 

For the three months ended

 

For the six months ended

June 30,

June 30,

    2014     2013     2014     2013  
Net income $ 53,361   $ 40,981 $ 65,346   $ 49,565
Depreciation and amortization 35,422 31,853 68,298 63,197
Interest expense, net (1) 13,502 16,779 28,140 33,646
Income tax expense 494 345 788 571
Noncontrolling interest in joint venture (79 ) (203 ) (45 ) (155 )
Adjustments related to discontinued operations (2) 247 498
Adjustments related to joint venture (3) (46 ) (121 ) (93 ) (242 )
EBITDA 102,654 89,881 162,434 147,080
Transaction and pursuit costs 2,411 1,255 3,895 2,344
Gain on extinguishment of indebtedness (2,425 ) (2,425 )
(Gain) loss on disposal of hotel properties (1,260 ) 1,297
Amortization of share based compensation 3,820 3,334 7,393 6,348
Other expenses (4)   11     24  
Adjusted EBITDA $ 107,625   $ 92,056   $ 175,019   $ 153,371  
General and administrative (5) 6,315 5,750 12,871 11,534
Operating results from noncontrolling interest in joint venture 125 324 138 397
Apartment income (15 ) (189 ) 34 (232 )
Pro forma adjustments (6) 1,075 11,565 7,311 23,845
Income from sold properties (364 ) (4,459 ) (1,210 ) (7,609 )
Other corporate adjustments (154 ) 200   (140 ) 266  
Pro forma Consolidated Hotel EBITDA 114,607   105,247   194,023   181,572  
Non-comparable hotels (7) 130   (96 ) 119   (286 )
Pro forma Hotel EBITDA $ 114,737   $ 105,151   $ 194,142   $ 181,286  
 

Note:

(1)   Interest expense is net of interest income, excludes amounts attributable to investment in loans of $0.3 million and $0.6 million for the three and six months ended June 30, 2014, respectively, and $0.2 million and $0.5 million for the three and six months ended June 30, 2013, respectively.
(2) Includes depreciation, amortization and interest expense from discontinued operations.
(3) Includes depreciation, amortization and interest expense allocated to the noncontrolling interest in the joint venture.
(4) Represents legal expenses outside the normal course of operations.
(5) General and administrative expenses exclude amortization of share based compensation, which is reflected in Adjusted EBITDA.
(6) Reflects prior ownership results of recent acquisitions and normalizes ground rent for the Courtyard Waikiki Beach. For the three and six months ended June 30, 2013, Pro forma Hotel EBITDA for the Courtyard Waikiki Beach was reduced by $0.7 million and $1.6 million, respectively.
(7) Reflects primarily the results of Residence Inn Atlanta Midtown Historic, which is currently closed for a comprehensive renovation.
 
 

RLJ Lodging Trust

Consolidated Debt Summary

(Amounts in thousands)

(Unaudited)

 
 
  Base Term   Maturity   Floating /   Interest Rate   Balance as of June
Loan   (Years)   (incl. extensions)   Fixed   (1)   30, 2014
Secured Debt
Capmark Financial Group - 1 hotel 10 May 2015 Fixed 5.55 % $ 10,716
Capmark Financial Group - 1 hotel 10 Jun 2015 Fixed 5.55 % 4,648

Barclays Bank - 12 hotels

10 Jun 2015 Fixed 5.55 % 109,592

Barclays Bank - 4 hotels

10 Jun 2015 Fixed 5.60 % 27,281
Capmark Financial Group - 1 hotel 10 Jul 2015 Fixed 5.50 % 6,332

Barclays Bank - 1 hotel

10 Sep 2015 Fixed 5.44 % 10,331
Wells Fargo - 5 hotels 3 Oct 2016 Floating 3.76 % 142,000
PNC Bank - 5 hotels 4 May 2017 Floating 2.51 % 74,000
Wells Fargo - 4 hotels 3   Sep 2020   Floating (2)   4.19 %     150,000

Weighted Average / Secured Total

4.27 % $ 534,900
 
Unsecured Debt
Credit Facility 4 Nov 2017 Floating 1.91 % $
2013 Five-Year Term Loan 5 Aug 2018 Floating (2)(3) 3.07 % 400,000
2012 Five-Year Term Loan 5 Mar 2019 Floating (2)(4) 1.71 % 400,000
Seven-Year Term Loan 7   Nov 2019   Floating (2)   4.04 %     225,000

Weighted Average / Unsecured Total

2.75 % $ 1,025,000
                 

Weighted Average / Total Debt

            3.27 %   $ 1,559,900
                     
 

Note:

(1)   Interest rates as of June 30, 2014.
(2) The floating interest rate is hedged with an interest rate swap.
(3) Reflects interest rate swap on $350.0 million.
(4) Interest rate does not reflect forward interest rate swap. Forward swap only applicable to $275.0 million.
 

 

RLJ Lodging Trust

Acquisitions

 
          Gross Purchase  
Price %
2014 Acquisitions   Location   Acquisition Date   Management Company   Rooms   ($ in millions) (1)   Interest
Hyatt House Charlotte Center City Charlotte, NC March 12, 2014 Hyatt Affiliate 163 $ 32.5 100 %
Hyatt House Cypress Anaheim Cypress, CA March 12, 2014 Hyatt Affiliate 142 14.8 100 %
Hyatt House Emeryville SF Bay Area Emeryville, CA March 12, 2014 Hyatt Affiliate 234 39.3 100 %
Hyatt House San Diego Sorrento Mesa San Diego, CA March 12, 2014 Hyatt Affiliate 193 36.0 100 %<



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