Same-store(4) RevPAR for all managed hotels in the third quarter of 2009 decreased 20.8 percent to $78.97. Average daily rate (ADR) declined 15.1 percent to $115.29, and occupancy was off 6.7 percent to 68.5 percent.
Third Quarter Year-to-Date (YTD)
2009 2008 2009 2008
---- ---- ---- ----
Total revenue (1) $30.8 $36.8 $95.3 $116.2
Net loss $(10.3) $(1.4) $(29.5) $(1.6)
Diluted loss per share $(0.32) $(0.05) $(0.92) $(0.05)
Adjusted EBITDA (2) (3) $6.4 $8.3 $22.6 $26.2
Adjusted net loss (2) $(5.4) $(1.2) $(6.8) $(2.3)
Adjusted diluted EPS (2) $(0.17) $(0.04) $(0.21) $(0.07)
(1) Total revenue excludes other revenue from managed properties
(reimbursable costs).
(2) Adjusted EBITDA, Adjusted net loss, and Adjusted diluted EPS are
non-GAAP financial measures and should not be considered as an
alternative to any measures of operating results under GAAP. See
the definition and further discussion of non-GAAP financial measures
and reconciliation to net loss later in this press release.
(3) Includes the company's share of EBITDA from unconsolidated entities
in the amounts of $1.0 million and $1.9 million in the third quarters
of 2009 and 2008, respectively, and $4.0 million and $6.0 million in
the first nine months of 2009 and 2008, respectively.
Highlights for the third quarter and through today include:
-- Extended senior secured credit facility to March 2012;
-- Common stock resumed trading on the NYSE effective July 29, 2009;
-- Added 10 properties to third-party management portfolio, including
first hotel in India, the new-build Four Points by Sheraton in Jaipur;
-- Secured mortgage financing for Westin Atlanta Airport;
-- Signed purchase and sale agreement to sell wholly owned Hilton Garden
Inn Baton Rouge; IHR to retain management of hotel with new ownership.
"The hotel business climate continued to be among the most challenging the industry has ever experienced," said Thomas F. Hewitt, chairman and chief executive officer. "Shrinking corporate travel budgets continue to impact hotel performance, despite some offset from price-motivated leisure travel this summer."
"Throughout this downturn, we have continued to focus on growth in third party management contracts, cost containment, preservation of capital and maintaining liquidity. We have made significant progress with our capital structure by extending the maturity of our debt and taking the necessary steps to meet our first amortization payment hurdle ahead of schedule."
Hotel Management Results
Same-store(4) RevPAR for all managed hotels in the third quarter of 2009 decreased 20.8 percent to $78.97. Average daily rate (ADR) declined 15.1 percent to $115.29, and occupancy was off 6.7 percent to 68.5 percent.
Same-store RevPAR for all full-service managed hotels dropped 22.2 percent to $87.75, based on a 17.1 percent fall in ADR to $125.35, and a 6.3 percent decline in occupancy to 70.0 percent.
Same-store RevPAR for all select-service managed hotels fell 16.6 percent to $62.09, reflecting a 9.7 percent decrease in ADR to $94.63, and a 7.6 percent decline in occupancy to 65.6 percent.
"Lodging fundamentals continued in a similar pattern during the quarter, as our overall RevPAR declined nearly 21 percent led by an ADR decrease of over 15 percent," Hewitt said. "However, occupancy declines seem to be lessening across the portfolio, with only a 6.7 percent decrease this quarter.
"Despite the difficult economy, we added six contracts to our managed portfolio in the quarter and four in October as owners and investors continue to seek operators with the resources and expertise to effectively manage hotels through this economic downturn. With these additions, today we have a total of 228 hotels in our managed portfolio.
"Our management contract pipeline remains quite active. We are beginning to see distressed hotel opportunities and believe this will be an important source of new contracts in the coming year," Hewitt added. "We have also opened four newly built properties this year and currently have signed contracts to manage another 13 to be built hotels."
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