RLJ Lodging Trust Results

RLJ Lodging Trust Q3 2015 Pro Forma RevPAR Increased 2.9%, Pro Forma ADR Increased 5.2%, and Pro Forma Occupancy Decreased 2.2%

Pro forma RevPAR for the three months ended September 30, 2015, increased 2.9% over the comparable period in 2014, driven by a Pro forma ADR increase of 5.2%, which was offset by a Pro forma Occupancy decrease of 2.2%. Excluding Houston, which experienced softness in the quarter, Pro forma RevPAR growth was 3.9%.

RLJ Lodging Trust

RLJ Lodging Trust (NYSE: RLJ) yesterday reported results for the three and nine months ended September 30, 2015.

Highlights

  • Pro forma RevPAR increased 2.9%, Pro forma ADR increased 5.2%, and Pro forma Occupancy decreased 2.2%
  • Achieved Pro forma Hotel EBITDA Margin of 37.1%
  • Pro forma Consolidated Hotel EBITDA increased 2.6% to $105.9 million
  • Repurchased 5.0 million shares for $140.1 million
  • Completed and opened two hotel conversion properties located in San Francisco and Houston
  • Acquired three hotels in attractive high-growth markets for $175.9 million
  • Sold two non-strategic properties for $19.8 million, one of which was sold subsequent to quarter end

“We continued to deliver solid performance across our portfolio, despite softness in select markets and tough year-over-year comparisons to last year’s exceptional quarterly results. I am also particularly pleased with our ability to return value to our shareholders as we executed on our $200.0 million share repurchase program,” commented Thomas J. Baltimore, Jr., President and Chief Executive Officer. “We believe we have positioned the Company for continuous growth; our recent conversions, acquisitions, and renovations are providing strong catalysts to our high-quality portfolio and are expected to drive additional growth in 2016 and beyond.”

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 were closed for renovation 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 September 30, 2015, increased 2.9% over the comparable period in 2014, driven by a Pro forma ADR increase of 5.2%, which was offset by a Pro forma Occupancy decrease of 2.2%. Excluding Houston, which experienced softness in the quarter, Pro forma RevPAR growth was 3.9%. Five of the Company’s markets achieved double-digit RevPAR growth, including Portland, Dallas, Northern California, Southern California, and San Antonio, which experienced RevPAR growth of 17.5%, 16.4%, 13.7%, 11.3%, and 10.4%, respectively. For the nine months ended September 30, 2015, Pro forma RevPAR increased 4.3% over the comparable period in 2014, driven by a Pro forma ADR increase of 5.9%, which was offset by a Pro forma Occupancy decrease of 1.4%.

Pro forma Hotel EBITDA Margin for the three months ended September 30, 2015, increased eight basis points over the comparable period in 2014 to 37.1%. Excluding Houston, Pro forma Hotel EBITDA Margin increased 47 basis points. For the nine months ended September 30, 2015, Pro forma Hotel EBITDA Margin increased 22 basis points over the comparable period in 2014 to 36.6%.

Pro forma Consolidated Hotel EBITDA includes the results of non-comparable hotels. For the three months ended September 30, 2015, Pro forma Consolidated Hotel EBITDA increased $2.7 million to $105.9 million, representing a 2.6% increase over the comparable period in 2014. For the nine months ended September 30, 2015, Pro forma Consolidated Hotel EBITDA increased $19.8 million to $310.7 million, representing an increase of 6.8% over the comparable period in 2014.

Adjusted EBITDA for the three months ended September 30, 2015, decreased $2.9 million to $98.8 million, representing a 2.8% decrease over the comparable period in 2014. For the nine months ended September 30, 2015, Adjusted EBITDA increased $13.6 million to $290.3 million, representing an increase of 4.9% over the comparable period in 2014.

Adjusted FFO for the three months ended September 30, 2015, decreased $2.8 million to $84.6 million, representing a 3.2% decrease over the comparable period in 2014. For the nine months ended September 30, 2015, Adjusted FFO increased $15.4 million to $249.9 million, representing an increase of 6.5% over the comparable period in 2014.

Adjusted FFO per diluted share and unit for the three and nine months ended September 30, 2015, was $0.66 and $1.90, respectively, based on the Company’s diluted weighted-average common shares and units outstanding of 129.0 million and 131.3 million for each period, respectively.

Non-recurring items which were noteworthy for the three months ended September 30, 2015, included a gain of $0.8 million primarily associated with the sale of a hotel. For the nine months ended September 30, 2015, non-recurring items included gains totaling $23.8 million attributed to the sale of 22 hotels.

Non-recurring items are included in net income attributable to common shareholders but are excluded from Adjusted EBITDA and Adjusted FFO, as applicable. A complete listing of non-recurring items is provided in the Non-GAAP reconciliation tables in this press release for the three and nine months ended September 30, 2015 and 2014.

Net income attributable to common shareholders for the three months ended September 30, 2015, was $40.6 million, compared to $36.8 million for the comparable period in 2014. For the nine months ended September 30, 2015, net income attributable to common shareholders was $144.4 million, compared to $101.6 million for the comparable period in 2014.

Net cash flow from operating activities for the nine months ended September 30, 2015, totaled $232.9 million, compared to $224.1 million for the comparable period in 2014.

Acquisitions

On July 15, 2015, the Company acquired the 164-room Hyatt Place DC/Downtown/K Street in Washington, DC for $68.0 million, or approximately $415,000 per key. The Company expects that the purchase price will represent a forward capitalization rate of approximately 7.1% based on the hotel's projected 2016 net operating income.

On July 20, 2015, the Company acquired the 170-room Homewood Suites Seattle/Lynnwood in Lynnwood, WA for $37.9 million, or approximately $223,000 per key. The Company expects that the purchase price will represent a forward capitalization rate of approximately 8.0% based on the hotel's projected 2016 net operating income.

On September 25, 2015, the Company acquired the 156-room Residence Inn Palo Alto Los Altos in Los Altos, CA for $70.0 million, or approximately $449,000 per key. The Company expects that the purchase price will represent a forward capitalization rate of approximately 8.1% based on the hotel's projected 2016 net operating income.

Conversions

On August 24, 2015, the Company completed the conversion of the 167-room SpringHill Suites Houston Downtown / Convention Center in Houston, TX for an all-in investment of $32.6 million, or approximately $195,000 per key. The Company expects a forward capitalization rate of approximately 8.0% based on the hotel's projected 2016 net operating income.

On September 19, 2015, the Company completed the conversion of the 166-room Courtyard San Francisco Union Square in San Francisco, CA for an all-in investment of $56.5 million, or approximately $340,000 per key. The Company expects a forward capitalization rate of approximately 8.6% based on the hotel's projected 2016 net operating income.

Dispositions

On July 7, 2015, the Company sold the 80-room Residence Inn South Bend in South Bend, IN for $5.8 million.

Balance Sheet

As of September 30, 2015, the Company had $140.5 million of unrestricted cash on its balance sheet, $300.0 million available on its revolving credit facility, and $1.6 billion of debt outstanding. The Company’s ratio of net debt to Adjusted EBITDA, pro forma for recent acquisitions and dispositions, for the trailing twelve month period ended September 30, 2015, was 3.8 times.

During the three months ended September 30, 2015, the Company drew down the entire $150.0 million of funds available under the 2014 Seven-Year Term Loan. Additionally, the Company drew the remaining $7.0 million available under its first mortgage loan on the Marriott Louisville Downtown.

During the three months ended September 30, 2015, the Company paid down approximately $9.9 million of existing property-level CMBS debt and the Company also assumed approximately $33.4 million of property-level CMBS debt associated with the Residence Inn Palo Alto Los Altos.

Dividends

The Company’s Board of Trustees declared a cash dividend of $0.33 per common share of beneficial interest in the third quarter. The dividend was paid on October 15, 2015, to shareholders of record as of September 30, 2015.

Share Buyback

During the third quarter of 2015, the Company repurchased 5.0 million shares for $140.1 million at an average price per share of $28.03. In total, the Company repurchased 7.0 million shares for $199.9 million at an average price per share of $28.59. The Company’s initial authorized limit for the share buyback program has been exhausted.

Subsequent Events

On October 14, 2015, the Company sold the 221-room Embassy Suites Columbus in Columbus, OH for $14.1 million.

On October 30, 2015, the Board of Trustees authorized the Company to acquire up to an additional $200.0 million of the Company’s common shares under its share repurchase program.

2015 Outlook

The Company’s outlook has been updated to reflect the third quarter's performance in addition to recent acquisition and disposition activity. The outlook excludes potential future acquisitions and dispositions, which could result in a material change to the Company’s outlook. The 2015 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 assumes the hotels were owned since January 1, 2014. Pro forma Consolidated Hotel EBITDA includes approximately $4.8 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 have been sold.

For the full year 2015, the Company anticipates:

             
      Current Outlook     Prior Outlook
Pro forma RevPAR growth (1)     4.0% to 5.0%     4.5% to 5.5%
Pro forma Hotel EBITDA Margin (1)     36.0% to 36.5%     36.0% to 37.0%
Pro forma Consolidated Hotel EBITDA     $400.0M to $410.0M     $400.0M to $415.0M
Corporate Cash General & Administrative     $26.0M to $27.0M     $26.0M to $27.0M
             

(1) Excludes non-comparable hotels. Properties closed for renovations are considered non-comparable and therefore are excluded for periods in which they are closed.

 

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 126 hotels with approximately 20,900 rooms, 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, 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 Consolidated 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 Consolidated Hotel EBITDA includes results for periods prior to ownership, includes non-comparable hotels which were not open for operation or were closed for renovations for comparable periods, and excludes sold hotels. Pro forma Hotel EBITDA excludes the results of non-comparable hotels.

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 or extraordinary. 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 debt extinguishment costs, and the accelerated amortization of deferred financing fees.
 

RLJ Lodging Trust

Consolidated Balance Sheets

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

 
 

September 30,

2015

 

December 31,

2014

    (unaudited)    
Assets
Investment in hotel properties, net $ 3,677,386 $ 3,518,803
Cash and cash equivalents 140,461 262,458
Restricted cash reserves 57,487 63,054
Hotel and other receivables, net of allowance of $182 and $166, respectively 39,514 25,691
Deferred financing costs, net 8,976 11,421
Deferred income tax asset 7,517 7,502
Prepaid expense and other assets 35,128 42,115
Assets of hotel properties held for sale       197,335  
Total assets $ 3,966,469   $ 4,128,379  
Liabilities and Equity
Mortgage loans $ 407,389 $ 532,747
Term loans 1,175,000 1,025,000
Accounts payable and other liabilities 142,663 129,388
Deferred income tax liability 7,242 7,879
Advance deposits and deferred revenue 12,234 9,984
Accrued interest 4,589 2,783
Distributions payable   41,776     42,114  
Total liabilities 1,790,893 1,749,895
Equity
Shareholders’ equity:
Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized; zero shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 125,726,018 and 131,964,706 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively 1,257 1,319
Additional paid-in-capital 2,219,407 2,419,731
Accumulated other comprehensive loss (32,294 ) (13,644 )
Distributions in excess of net earnings   (30,217 )   (46,415 )
Total shareholders’ equity 2,158,153 2,360,991
Noncontrolling interest
Noncontrolling interest in joint venture 6,126 6,295
Noncontrolling interest in Operating Partnership   11,297     11,198  
Total noncontrolling interest   17,423     17,493  
Total equity   2,175,576     2,378,484  
Total liabilities and equity $ 3,966,469   $ 4,128,379  
 
 

RLJ Lodging Trust

Consolidated Statements of Operations

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

(unaudited)

 
 

For the three months ended

September 30,

 

For the nine months ended

September 30,

    2015   2014   2015   2014
Revenue    
Operating revenue
Room revenue $ 253,163 $ 261,895 $ 747,962 $ 727,367
Food and beverage revenue 27,027 27,076 85,607 77,924
Other operating department revenue   9,230     8,695     27,508     23,795  
Total revenue $ 289,420   $ 297,666   $ 861,077   $ 829,086  
Expense
Operating expense
Room expense $ 56,310 $ 57,012 $ 165,603 $ 158,669
Food and beverage expense 19,494 19,397 60,750 55,016
Management and franchise fee expense 28,985 30,709 88,704 86,574
Other operating expense   61,676     64,133     181,485     180,346  
Total property operating expense 166,465 171,251 496,542 480,605
Depreciation and amortization 39,847 37,243 114,828 105,541
Impairment loss 9,200 9,200
Property tax, insurance and other 19,458 17,874 57,782 53,064
General and administrative 8,249 11,029 29,041 31,293
Transaction and pursuit costs   2,017     480     3,005     4,375  
Total operating expense   236,036     247,077     701,198     684,078  
Operating income 53,384 50,589 159,879 145,008
Other income 557 48 1,103 563
Interest income 373 337 1,181 1,622
Interest expense   (14,042 )   (13,858 )   (39,885 )   (42,646 )
Income from continuing operations before income tax expense 40,272 37,116 122,278 104,547
Income tax expense   (151 )   (374 )   (615 )   (1,162 )
Income from continuing operations 40,121 36,742 121,663 103,385
Gain (loss) on disposal of hotel properties   812     322     23,782     (975 )
Net income 40,933 37,064 145,445 102,410
Net income attributable to noncontrolling interests
Noncontrolling interest in consolidated joint venture (49 ) (57 ) (26 ) (102 )
Noncontrolling interest in common units of Operating Partnership   (290 )   (247 )   (984 )   (712 )
Net income attributable to common shareholders $ 40,594   $ 36,760   $ 144,435   $ 101,596  
Basic per common share data
Net income per share attributable to common shareholders $ 0.32   $ 0.28   $ 1.10   $ 0.80  
Weighted-average number of common shares   127,663,480     131,106,440     129,855,686     126,070,309  
Diluted per common share data
Net income per share attributable to common shareholders $ 0.31   $ 0.28   $ 1.10   $ 0.79  
Weighted-average number of common shares   128,143,154     132,386,843     130,410,613     127,297,901  
 
 

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

September 30,

 

For the nine months ended

September 30,

    2015   2014   2015   2014
Net income $ 40,933   $ 37,064 $ 145,445   $ 102,410
Depreciation and amortization 39,847 37,243 114,828 105,541
(Gain) loss on disposal of hotel properties (812 ) (322 ) (23,782 ) 975
Impairment loss 9,200 9,200
Noncontrolling interest in consolidated joint venture (49 ) (57 ) (26 ) (102 )
Adjustments related to consolidated joint venture (1)   (43 )   (47 )   (128 )   (139 )
FFO 79,876 83,081 236,337 217,885
Transaction and pursuit costs 2,017 480 3,005 4,375
Amortization of share-based compensation 2,697 3,851 10,488 11,244
Loan related costs (2)           97     1,073  
Adjusted FFO $ 84,590   $ 87,412   $ 249,927   $ 234,577  
 
Adjusted FFO per common share and unit-basic $ 0.66 $ 0.66 $ 1.91 $ 1.85
Adjusted FFO per common share and unit-diluted $ 0.66 $ 0.66 $ 1.90 $ 1.83
 
Basic weighted-average common shares and units outstanding (3) 128,557 132,000 130,750 126,964
Diluted weighted-average common shares and units outstanding (3) 129,037 133,281 131,305 128,192
 

Note:

(1)   Includes depreciation and amortization expense allocated to the noncontrolling interest in the joint venture.
(2) Represents debt extinguishment costs and accelerated amortization of deferred financing fees.
(3) 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

September 30,

 

For the nine months ended

September 30,

    2015   2014   2015   2014
Net income $ 40,933   $ 37,064 $ 145,445   $ 102,410
Depreciation and amortization 39,847 37,243 114,828 105,541
Interest expense, net (1) 14,035 13,850 39,859 41,991
Income tax expense 151 374 615 1,162
Noncontrolling interest in consolidated joint venture (49 ) (57 ) (26 ) (102 )
Adjustments related to consolidated joint venture (2)   (43 )   (47 )   (128 )   (139 )
EBITDA 94,874 88,427 300,593 250,863
Transaction and pursuit costs 2,017 480 3,005 4,375
Impairment loss 9,200 9,200
(Gain) loss on disposal of hotel properties (812 ) (322 ) (23,782 ) 975
Amortization of share-based compensation   2,697     3,851     10,488     11,244  
Adjusted EBITDA 98,776 101,636 290,304 276,657
General and administrative (3) 5,552 7,178 18,553 20,049
Operating results from noncontrolling interest in joint venture 92 104 154 241
Other corporate adjustments   286     93     (436 )   (48 )
Consolidated Hotel EBITDA   104,706     109,011     308,575     296,899  
Pro forma adjustments - Income from sold properties (33 ) (8,833 ) (2,651 ) (23,603 )
Pro forma adjustments - Income from prior ownership   1,180     2,968     4,785     17,622  
Pro forma Consolidated Hotel EBITDA   105,853     103,146     310,709     290,918  
Non-comparable hotels (4)   (1,146 )   (1,907 )   (9,321 )   (4,960 )
Pro forma Hotel EBITDA $ 104,707   $ 101,239   $ 301,388   $ 285,958  
 

Note:

(1)   Interest expense is net of interest income, excluding amounts attributable to investment in loans of $0.4 million and $1.2 million for the three and nine months ended September 30, 2015, respectively, and $0.3 million and $1.0 million for the three and nine months ended September 30, 2014, respectively.
(2) Includes depreciation, amortization, and interest expense allocated to the noncontrolling interest in the joint venture.
(3) General and administrative expenses exclude amortization of share based compensation, which is reflected in Adjusted EBITDA.
(4) Reflects the results of eight non-comparable hotels that were not open for the entirety of certain comparable periods: Residence Inn Atlanta Midtown/Georgia Tech, Courtyard Waikiki Beach, Hilton Cabana Miami Beach, Fairfield Inn & Suites Key West, Courtyard San Francisco Union Square, SpringHill Suites Houston Downtown/Convention Center, Homewood Suites Seattle/Lynnwood, and Hyatt Place DC/Downtown/K Street.
 
 

RLJ Lodging Trust

Consolidated Debt Summary

(Amounts in thousands)

(unaudited)

 
Loan  

Base Term

(Years)

 

Maturity

(incl. extensions)

 

Floating /

Fixed

 

Interest

Rate (1)

 

Balance as of

September 30, 2015

Secured Debt          
PNC Bank - 5 hotels 4 May 2017 Floating 2.54% $ 74,000
Wells Fargo - 4 hotels 3 Sep 2020 Floating (2) 4.19% 150,000
Wells Fargo - 4 hotels 3 Oct 2021 Floating (2) 3.98% 150,000
Wells Fargo - 1 hotel 10   Jun 2022   Fixed   5.25%   33,389
Weighted Average / Secured Total 3.90% $ 407,389
 
Unsecured Debt
Credit Facility (3) 4 Nov 2017 Floating 1.94% $
2013 Five-Year Term Loan 5 Aug 2018 Floating (2)(4) 3.07% 400,000
2012 Five-Year Term Loan 5 Mar 2019 Floating (2) 2.72% 400,000
2012 Seven-Year Term Loan 7 Nov 2019 Floating (2) 4.04% 225,000
2014 Seven-Year Term Loan 7   Jan 2022   Floating (2)   3.43%   150,000
Weighted Average / Unsecured Total 3.18% $ 1,175,000
                 
Weighted Average / Total Debt             3.37%   $ 1,582,389
 

Note:

(1)   Interest rates as of September 30, 2015.
(2) The floating interest rate is hedged with an interest rate swap.
(3) There is $300.0 million of borrowing capacity on the Credit Facility, which is charged an unused commitment fee of 0.35% annually.
(4) Reflects interest rate swap on $350.0 million.
 
 

RLJ Lodging Trust

Acquisitions

(unaudited)

 
Acquisitions   Location  

Acquisition

Date

 

Management

Company

  Rooms  

Gross

Purchase Price

($ in millions)

 

%

Interest

2015 Acquisitions            
Hyatt Place DC/Downtown/K Street Washington, DC Jul 15, 2015 Aimbridge Hospitality 164 $ 68.0 100 %
Homewood Suites Seattle/Lynnwood Lynnwood, WA Jul 20, 2015 InnVentures 170 37.9 100 %
Residence Inn Palo Alto Los Altos Los Altos, CA Sep 25, 2015 InnVentures 156     70.0   100 %
2015 Acquisitions 490   $ 175.9   100 %
2014 Acquisitions
Hyatt House Charlotte Center City Charlotte, NC Mar 12, 2014 Hyatt Affiliate 163 $ 32.5 100 %
Hyatt House Cypress Anaheim Cypress, CA Mar 12, 2014 Hyatt Affiliate 142 14.8 100 %
Hyatt House Emeryville SF Bay Area Emeryville, CA Mar 12, 2014 Hyatt Affiliate 234 39.3 100 %
Hyatt House San Diego Sorrento Mesa San Diego, CA Mar 12, 2014 Hyatt Affiliate 193 36.0 100 %
Hyatt House San Jose Silicon Valley San Jose, CA Mar 12, 2014 Hyatt Affiliate 164 44.2 100 %
Hyatt House San Ramon San Ramon, CA Mar 12, 2014 Hyatt Affiliate 142 20.8 100 %
Hyatt House Santa Clara Santa Clara, CA Mar 12, 2014 Hyatt Affiliate 150 40.6 100 %
Hyatt Market Street The Woodlands The Woodlands, TX Mar 12, 2014 Hyatt Corporation 70 25.8 100 %
Hyatt Place Fremont Silicon Valley Fremont, CA Mar 12, 2014 Hyatt Affiliate 151 23.5 100 %
Hyatt Place Madison Downtown Madison, WI Mar 12, 2014 Hyatt Affiliate 151 35.1 100 %
Courtyard Portland City Center Portland, OR May 22, 2014 Sage Hospitality 256 67.0 100 %
Embassy Suites Irvine Orange County Irvine, CA May 22, 2014 Sage Hospitality 293 53.0 100 %
Hilton Cabana Miami Beach Miami Beach, FL Jun 19, 2014 Highgate Hotels 231 71.7 100 %
Hyatt Atlanta Midtown Atlanta, GA Jul 14, 2014 Interstate Hotels and Resorts 194 49.5 100 %
DoubleTree Grand Key Resort (2) Key West, FL Sep 11, 2014 Interstate Hotels and Resorts 215     77.0   100 %
2014 Acquisitions (1) 2,749   $ 630.7   100 %
Total Acquisitions 3,239   $ 806.6   100 %
 

Note:

(1)   Amounts are rounded for presentation purposes.
(2) Purchase price does not include $1.3 million paid for five condominium units.
 
 

RLJ Lodging Trust

Pro forma Operating Statistics — Top 50 Assets

(Amounts in thousands, except rooms)

(unaudited)

 

For the trailing twelve months ended September 30, 2015

 
Property   City/State   # of Rooms  

Pro forma Consolidated

Hotel EBITDA

Marriott Louisville Downtown   Louisville, KY   616   $ 16,523
DoubleTree NYC Metropolitan New York, NY 764 15,921
Courtyard Austin Dtwn Conv Ctr Austin, TX 270 10,072
Hilton New York Fashion District New York, NY 280 9,737
Hilton Garden Inn New York W 35th St New York, NY 298 9,436
Courtyard Portland City Center Portland, OR 256 8,040
Courtyard Chicago Downtown Mag Mile Chicago, IL 306 7,966
Embassy Suites Tampa Dtwn Conv Ctr Tampa, FL 360 6,838
Hilton Cabana Miami Beach Miami Beach, FL 231 6,697
Renaissance Pittsburgh Hotel Pittsburgh, PA 300 6,546
Hilton Garden Inn SF Oakland Bay Bridge Emeryville, CA 278 6,283

DoubleTree Grand Key Resort

Key West, FL 216 5,866
Courtyard Charleston Historic District Charleston, SC 176 5,700
Marriott Denver South @ Park Meadows Lone Tree, CO 279 5,661
Fairfield Inn & Suites DC Downtown Washington, DC 198 5,628
Residence Inn Palo Alto Los Altos Los Altos, CA 156 5,624
Embassy Suites Boston Waltham Waltham, MA 275 5,618
Residence Inn Austin Dtwn Conv Ctr Austin, TX 179 5,362
Hyatt House San Jose Silicon Valley San Jose, CA 164 5,329
Hilton Garden Inn New Orleans Conv Ctr New Orleans, LA 286 5,164
Renaissance Ft Lauderdale Plantation Plantation, FL 250 5,085
Marriott Denver Airport @ Gateway Park Aurora, CO 238 5,044
Courtyard Waikiki Beach Waikiki, HI 403 4,892
Courtyard New York Manhattan Upper East New York, NY 226 4,742
Hilton Garden Inn Los Angeles Hollywood Los Angeles, CA 160 4,731
Hyatt House Emeryville SF Bay Area Emeryville, CA 234 4,721
Residence Inn Bethesda Downtown Bethesda, MD 188 4,661
Hyatt House Santa Clara Santa Clara, CA 150 4,548
Homewood Suites Washington DC Downtown Washington, DC 175 4,526
Marriott Austin South Austin, TX 211 4,266
Embassy Suites Los Angeles Downey Downey, CA 220 4,153
Courtyard Houston By The Galleria Houston, TX 190 4,040
Embassy Suites Irvine Orange Cnty Arprt Irvine, CA 293 3,990
Hyatt Atlanta Midtown Atlanta, GA 194 3,827
Renaissance Boulder Flatiron Hotel Broomfield, CO 232 3,606
Hyatt Place Fremont Silicon Valley Fremont, CA 151 3,592
Residence Inn National Harbor DC Oxon Hill, MD 162 3,403
Residence Inn Houston By The Galleria Houston, TX 146 3,392
Embassy Suites West Palm Beach Central West Palm Beach, FL 194 3,376
Hyatt House Charlotte Center City Charlotte, NC 163 3,325
Fairfield Inn & Suites Key West Key West, FL 106 3,281
Courtyard Houston Dtwn Conv Ctr Houston, TX 191 3,226
Residence Inn Louisville Downtown Louisville, KY 140 3,191
Hyatt House San Diego Sorrento Mesa San Diego, CA 193 3,172
Residence Inn Chicago Oak Brook Oak Brook, IL 156 3,156
Hyatt Market Street The Woodlands The Woodlands, TX 70 3,103
Residence Inn Houston Dtwn Conv Ctr Houston, TX 171 3,073
Hampton Inn Houston Near The Galleria Houston, TX 176 2,824
Marriott Chicago Midway Chicago, IL 200 2,799
Hilton Garden Inn Bloomington Bloomington, IN 168     2,584
Top 50 Assets 11,639 268,340
Other (1) 8,982     136,260
Total Portfolio       20,621   $ 404,600
 

Note:

The information above includes results for periods prior to the Company's ownership. The information above has not been audited and is presented only for comparison purposes. Results reflect 100% of DoubleTree NYC Metropolitan financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture.

(1)   Reflects 74 hotels, excludes two hotel conversions opened in the third quarter of 2015 and one hotel opened in the second quarter of 2015.
 

RLJ Lodging Trust

Pro forma Operating Statistics

(unaudited)

 

For the three months ended September 30, 2015

 
Top Markets       Occupancy   ADR   RevPAR  

% of

Hotel

EBITDA

  # of Hotels   2015   2014   Var   2015   2014   Var   2015   2014   Var   Q3
NYC 5 97.6 %   97.3 %   0.3 % $ 252.62   $ 247.22   2.2 % $ 246.65   $ 240.66   2.5 % 12 %
Chicago 15 77.8 % 85.1 % (8.5 )% 155.39 145.30 6.9 % 120.94 123.64 (2.2 )% 10 %
Austin 13 79.6 % 79.1 % 0.6 % 146.79 138.60 5.9 % 116.79 109.59 6.6 % 8 %
Denver 13 87.9 % 88.8 % (1.0 )% 142.00 134.50 5.6 % 124.85 119.44 4.5 % 10 %
Houston 9 67.8 % 81.6 % (16.8 )% 154.59 148.74 3.9 % 104.86 121.32 (13.6 )% 5 %
DC 7 76.3 % 82.3 % (7.3 )% 167.78 166.70 0.6 % 127.95 137.20 (6.7 )% 5 %
Other 59 81.2 %   80.8 %   0.4 %   156.00     147.06   6.1 %   126.60     118.88   6.5 % 50 %
Total 121 81.6 %   83.4 %   (2.2 )% $ 164.17   $ 156.11   5.2 % $ 133.95   $ 130.20   2.9 % 100 %
 
Service Level       Occupancy   ADR   RevPAR  

% of

Hotel

EBITDA

# of Hotels 2015   2014   Var 2015   2014   Var 2015   2014   Var Q3
Focused-Service 99 81.4 % 84.0 % (3.1 )% $ 157.99 $ 148.61 6.3 % $ 128.56 $ 124.80 3.0 % 71 %
Compact Full-Service 21 84.2 % 83.1 % 1.3 % 180.11 174.73 3.1 % 151.70 145.25 4.4 % 26 %
Full-Service 1 63.6 %   72.5 %   (12.2 )%   162.54     170.02   (4.4 )%   103.45     123.29   (16.1 )% 3 %
Total 121 81.6 %   83.4 %   (2.2 )% $ 164.17   $ 156.11   5.2 % $ 133.95   $ 130.20   2.9 % 100 %
 
Chain Scale       Occupancy   ADR   RevPAR  

% of

Hotel

EBITDA

# of Hotels 2015   2014   Var 2015   2014   Var 2015   2014   Var Q3
Upper Upscale 19 80.5 % 79.4 % 1.4 % $ 165.35 $ 161.81 2.2 % $ 133.09 $ 128.46 3.6 % 23 %
Upscale 86 82.5 % 85.1 % (3.1 )% 167.26 157.74 6.0 % 137.94 134.26 2.7 % 69 %
Upper Midscale 15 78.8 % 80.9 % (2.6 )% 140.39 134.17 4.6 % 110.66 108.59 1.9 % 8 %
Midscale 1 71.1 %   92.1 %   (22.8 )%   115.79     86.45   33.9 %   82.34     79.66   3.4 % %
Total 121 81.6 %   83.4 %   (2.2 )% $ 164.17   $ 156.11   5.2 % $ 133.95   $ 130.20   2.9 % 100 %
 
Flags       Occupancy   ADR   RevPAR  

% of

Hotel

EBITDA

# of Hotels 2015   2014   Var 2015   2014   Var 2015   2014   Var Q3
Residence Inn 28 80.4 % 86.0 % (6.5 )% $ 149.08 $ 141.54 5.3 % $ 119.81 $ 121.66 (1.5 )% 16 %
Courtyard 22 79.4 % 84.4 % (5.9 )% 166.62 156.54 6.4 % 132.28 132.05 0.2 % 19 %
Hyatt House 11 88.5 % 86.0 % 2.9 % 168.37 152.05 10.7 % 149.06 130.82 13.9 % 11 %
Hilton Garden Inn 9 81.1 % 82.1 % (1.2 )% 180.11 174.16 3.4 % 146.06 143.00 2.1 % 9 %
SpringHill Suites 7 84.1 % 80.7 % 4.2 % 147.60 142.03 3.9 % 124.18 114.67 8.3 % 6 %
Embassy Suites 7 78.8 % 80.3 % (1.9 )% 138.42 131.59 5.2 % 109.01 105.61 3.2 % 4 %
Hampton Inn 6 80.9 % 83.3 % (2.9 )% 140.90 136.06 3.6 % 113.92 113.34 0.5 % 3 %
Fairfield Inn & Suites 8 85.0 % 83.4 % 1.9 % 123.42 113.47 8.8 % 104.91 94.63 10.9 % 4 %
Marriott 5 73.6 % 77.7 % (5.3 )% 157.01 157.35 (0.2 )% 115.54 122.23 (5.5 )% 8 %
Renaissance 3 83.5 % 82.3 % 1.4 % 159.08 155.52 2.3 % 132.76 127.98 3.7 % 4 %
DoubleTree 3 88.9 % 93.3 % (4.6 )% 230.04 219.53 4.8 % 204.60 204.77 (0.1 )% 6 %
Hyatt 2 75.6 % 73.6 % 2.8 % 208.04 196.80 5.7 % 157.34 144.78 8.7 % 2 %
Hyatt Place 2 90.4 % 90.5 % (0.1 )% 173.66 153.49 13.1 % 156.97 138.93 13.0 % 2 %
Hilton 2 87.1 % 78.6 % 10.8 % 234.18 236.36 (0.9 )% 203.92 185.75 9.8 % 3 %
Homewood Suites 2 85.2 % 80.6 % 5.8 % 175.96 182.90 (3.8 )% 150.00 147.40 1.8 % 2 %
Other 4 65.4 %   73.9 %   (11.5 )%   137.78     121.36   13.5 %   90.10     89.72   0.4 % 1 %
Total 121 81.6 %   83.4 %   (2.2 )% $ 164.17   $ 156.11   5.2 % $ 133.95   $ 130.20   2.9 % 100 %
 
 

RLJ Lodging Trust

Pro forma Operating Statistics

(unaudited)

 

For the nine months ended September 30, 2015

 
Top Markets       Occupancy   ADR   RevPAR  

% of

Hotel

EBITDA

  # of Hotels   2015   2014   Var   2015   2014   Var   2015   2014   Var   Q3YTD
NYC 5 95.4 %   96.0 %   (0.6 )% $ 226.83   $ 231.69   (2.1 )% $ 216.35   $ 222.42   (2.7 )% 9 %
Chicago 15 72.5 % 76.9 % (5.8 )% 151.10 135.80 11.3 % 109.50 104.45 4.8 % 8 %
Austin 13 81.0 % 81.6 % (0.9 )% 160.91 150.43 7.0 % 130.26 122.82 6.1 % 10 %
Denver 13 78.6 % 79.8 % (1.6 )% 137.04 129.57 5.8 % 107.66 103.44 4.1 % 9 %
Houston 9 71.6 % 79.1 % (9.5 )% 164.54 159.78 3.0 % 117.84 126.45 (6.8 )% 6 %
Washington, DC 7 77.2 % 78.5 % (1.6 )% 177.46 172.23 3.0 % 137.06 135.23 1.4 % 6 %
Other 60 80.2 %   80.0 %   0.2 % 160.51     148.80     7.9 % 128.71     119.07     8.1 % 52 %
Total 122 79.9 %   81.1 %   (1.4 )% $ 165.48     $ 156.33     5.9 % $ 132.21     $ 126.73     4.3 % 100 %
 
Service Level       Occupancy   ADR   RevPAR  

% of

Hotel

EBITDA

# of Hotels 2015   2014   Var 2015   2014   Var 2015   2014   Var Q3YTD
Focused-Service 100 79.3 % 80.9 % (2.0 )% $ 159.02 $ 148.32 7.2 % $ 126.10 $ 120.02 5.1 % 70 %
Compact Full-Service 21 82.8 % 82.6 % 0.2 % 180.33 174.93 3.1 % 149.23 144.43 3.3 % 26 %
Full-Service 1 69.5 %   71.8 %   (3.3 )% 184.97     182.12     1.6 % 128.46     130.78     (1.8 )% 4 %
Total 122 79.9 %   81.1 %   (1.4 )% $ 165.48     $ 156.33     5.9 % $ 132.21     $ 126.73     4.3 % 100 %
 
Chain Scale       Occupancy   ADR   RevPAR  

% of

Hotel

EBITDA

# of Hotels 2015   2014   Var 2015   2014   Var 2015   2014   Var Q3YTD
Upper Upscale 19 79.2 % 78.5 % 0.9 % $ 171.43 $ 164.72 4.1 % $ 135.76 $ 129.26 5.0 % 25 %
Upscale 86 80.6 % 82.3 % (2.0 )% 166.00 156.53 6.1 % 133.87 128.81 3.9 % 67 %
Upper Midscale 16 77.4 % 78.6 % (1.4 )% 149.81 140.09 6.9 % 115.98 110.05 5.4 % 8 %
Midscale 1 64.9 %   87.0 %   (25.4 )% 108.23     73.77     46.7 % 70.23     64.19     9.4 % 0
Total 122 79.9 %   81.1 %   (1.4 )% $ 165.48     $ 156.33     5.9 % $ 132.21     $ 126.73     4.3 % 100 %
 
Flags       Occupancy   ADR   RevPAR  

% of

Hotel

EBITDA

# of Hotels 2015   2014   Var 2015   2014   Var 2015   2014   Var Q3YTD
Residence Inn 28 79.7 % 83.2 % (4.2 )% $ 152.89 $ 143.29 6.7 % $ 121.85 $ 119.16 2.3 % 16 %
Courtyard 22 78.3 % 80.1 % (2.3 )% 166.39 155.75 6.8 % 130.25 124.83 4.3 % 19 %
Hyatt House 11 82.0 % 83.1 % (1.4 )% 164.40 148.33 10.8 % 134.84 123.32 9.3 % 9 %
Hilton Garden Inn 9 80.7 % 80.8 % (0.1 )% 174.97 168.46 3.9 % 141.19 136.05 3.8 % 9 %
SpringHill Suites 7 82.2 % 80.6 % 1.9 % 158.53 149.80 5.8 % 130.30 120.81 7.9 % 7 %
Embassy Suites 7 77.5 % 79.8 % (2.8 )% 142.63 134.68 5.9 % 110.58 107.44 2.9 % 4 %
Hampton Inn 6 79.7 % 78.8 % 1.2 % 158.66 148.02 7.2 % 126.46 116.57 8.5 % 4 %
Fairfield Inn & Suites 9 79.0 % 78.2 % 0.9 % 123.17 114.53 7.5 % 97.26 89.59 8.6 % 4 %
Marriott 5 73.3 % 75.5 % (2.9 )% 167.71 160.77 4.3 % 122.99 121.42 1.3 % 9 %
Renaissance 3 78.8 % 76.3 % 3.2 % 162.63 157.17 3.5 % 128.14 119.97 6.8 % 4 %
DoubleTree 3 90.2 % 93.6 % (3.6 )% 214.44 213.22 0.6 % 193.37 199.47 (3.1 )% 5 %
Hyatt 2 76.9 % 73.5 % 4.6 % 206.80 193.64 6.8 % 158.94 142.24 11.7 % 2 %
Hyatt Place 2 86.8 % 86.7 % 0.2 % 160.67 140.21 14.6 % 139.52 121.54 14.8 % 2 %
Hilton 2 92.7 % 89.2 % 4.0 % 233.53 240.29 (2.8 )% 216.58 214.28 1.1 % 3 %
Homewood Suites 2 81.3 % 76.7 % 6.0 % 202.41 201.93 0.2 % 164.56 154.88 6.2 % 2 %
Other 4 64.5 %   72.2 %   (10.7 )% 145.07     123.40     17.6 % 93.61     89.13     5.0 % 1 %
Total 122 79.9 %   81.1 %   (1.4 )% $ 165.48     $ 156.33     5.9 % $ 132.21     $ 126.73     4.3 % 100 %
 



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