Chesapeake Lodging Trust Results

Chesapeake Lodging Trust Reports 3.7 Percent RevPAR Decrease for Second Quarter

Chesapeake Lodging Trust

Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate investment trust (REIT), reported today its financial results for the quarter ended June 30, 2017.

HIGHLIGHTS

  • RevPAR: 3.7% decrease for the 22-hotel portfolio and 0.2% increase for the 15-hotel portfolio over the same period in 2016.
  • Adjusted Hotel EBITDA Margin: 180 basis point decrease to 35.1% for the 22-hotel portfolio and 90 basis point decrease to 39.5% for the 15-hotel portfolio over the same period in 2016.
  • Adjusted Hotel EBITDA: $57.0 million.
  • Adjusted Corporate EBITDA: $52.3 million.
  • Net income available to common shareholders: $19.2 million or $0.32 per diluted common share.
  • Adjusted FFO: $38.2 million or $0.65 per diluted common share.
  • Financing: Closed on a five-year, $225.0 million unsecured term loan.
  • Preferred share redemption: Subsequent to quarter end, redeemed $125.0 million of 7.75% Series A Cumulative Redeemable Preferred Shares.

“We are pleased with our results for the second quarter which exceeded the high end of our expectations across all measures. Our asset managers in working with our hotel operators did an outstanding job controlling costs and maintaining house profit margin for our 15-hotel portfolio despite the challenging revenue environment we continue to operate in,” said James L. Francis, Chesapeake Lodging Trust’s President and Chief Executive Officer.

Mr. Francis continued, “Our renovations at the Denver Marriott City Center and the Boston Marriott Newton have now been completed and we are enthused based on the positive guest feedback we are receiving on the upgraded guestroom products. Our last remaining 2017 renovation at the JW Marriott San Francisco Union Square is currently underway, however, it was delayed by approximately 60 days as a result of a permit issue with the city. Given this delay along with a modest softening of expectations for banquet and catering revenue in the third quarter 2017 driven by less group business, we are making an adjustment to the high end of our full year 2017 hotel EBITDA outlook.”

CONSOLIDATED FINANCIAL RESULTS

The following is a summary of the consolidated financial results for the three and six months ended June 30, 2017 and 2016 (in millions, except share and per share amounts):

           
Three Months Ended June 30, Six Months Ended June 30,
2017       2016 2017       2016
Total revenue $ 162.5 $ 169.4 $ 297.3 $ 310.0
 
Net income available to common shareholders $ 19.2 $ 26.1 $ 24.8 $ 33.8
Net income per diluted common share $ 0.32 $ 0.44 $ 0.42 $ 0.57
 
Adjusted Hotel EBITDA $ 57.0 $ 62.6 $ 92.9 $ 102.6
 
Adjusted Corporate EBITDA $ 52.3 $ 57.9 $ 83.4 $ 92.6
 
AFFO available to common shareholders $ 38.2 $ 43.9 $ 62.4 $ 69.9
AFFO per diluted common share $ 0.65 $ 0.75 $ 1.06 $ 1.19
 

Weighted-average number of diluted common shares outstanding

59,033,952 58,864,050 59,014,876 58,836,746
 

HOTEL OPERATING RESULTS

During 2017, the Trust expects the following seven of its 22 hotels to be negatively impacted as a result of (1) the expected negative impact on lodging demand in San Francisco resulting from the temporary closure and expansion of the Moscone Center and/or (2) significant guestroom renovations undergoing during the year: Le Meridien San Francisco, JW Marriott San Francisco Union Square, Hyatt Centric Fisherman’s Wharf, Hotel Adagio San Francisco, Autograph Collection, Boston Marriott Newton, Denver Marriott City Center, and Hyatt Regency Mission Bay Spa and Marina. As such, the Trust is reporting key operating metrics for a 15-hotel portfolio in addition to the 22-hotel portfolio. Included in the following table are comparisons of the key operating metrics for the 22-hotel portfolio and the 15-hotel portfolio for the three and six months ended June 30, 2017 and 2016 (in thousands, except for ADR and RevPAR):

                                   
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 Change 2017 2016 Change

22-Hotel Portfolio

Occupancy 86.7 % 88.1 % (140) bps 81.6 % 83.4 % (180) bps
ADR $ 231.62 $ 236.69 (2.1)% $ 223.73 $ 227.05 (1.5)%
RevPAR $ 200.72 $ 208.43 (3.7)% $ 182.54 $ 189.39 (3.6)%
Adjusted Hotel EBITDA $ 56,957 $ 62,597 (9.0)% $ 92,944 $ 102,648 (9.5)%
Adjusted Hotel EBITDA Margin 35.1 % 36.9 % (180) bps 31.3 % 33.1 % (180) bps

15-Hotel Portfolio

Occupancy 89.5 % 88.1 % 140 bps 84.0 % 83.2 % 80 bps
ADR $ 236.15 $ 239.30 (1.3)% $ 219.14 $ 223.04 (1.7)%
RevPAR $ 211.26 $ 210.86 0.2% $ 183.97 $ 185.65 (0.9)%
Adjusted Hotel EBITDA $ 38,853 $ 40,481 (4.0)% $ 60,175 $ 63,572 (5.3)%
Adjusted Hotel EBITDA Margin 39.5 % 40.4 % (90) bps 34.7 % 35.7 % (100) bps
 

Hotel EBITDA, Adjusted Hotel EBITDA, Adjusted Hotel EBITDA Margin, Corporate EBITDA, Adjusted Corporate EBITDA, FFO, FFO available to common shareholders and AFFO available to common shareholders are non-GAAP financial measures within the meaning of the rules of the Securities and Exchange Commission. See the discussion included in this press release for information regarding these non-GAAP financial measures.

FINANCING ACTIVITY

On April 21, 2017, the Trust closed on a five-year, $225.0 million unsecured term loan provided by a syndicate of banks. The term loan provides for the possibility of future increases, up to a maximum amount borrowed of $375.0 million, in accordance with the terms of the term loan agreement. The loan bears interest equal to LIBOR, plus 1.45% - 2.20% (the spread over LIBOR based on the Trust’s consolidated leverage ratio). Contemporaneous with the closing of the unsecured term loan, the Trust entered into an interest rate swap to fix LIBOR at 1.86% for the five-year term. As of August 2, 2017, the effective interest rate on the unsecured term loan was 3.31%. Proceeds from the term loan were used to repay outstanding borrowings under the revolving credit facility. The term loan agreement contains the same financial covenants as those contained in the Trust's revolving credit facility.

CAPITAL MARKETS ACTIVITY

On July 17, 2017, the Trust redeemed all 5,000,000 shares of its issued and outstanding 7.75% Series A Cumulative Redeemable Preferred Shares at a redemption amount of $25.00 per share, plus accrued and unpaid dividends, with a borrowing under its revolving credit facility.

The Trust has not sold any common shares under its continuous at-the-market (ATM) program or repurchased any common shares under its share repurchase program during 2017.

DIVIDENDS

On April 14, 2017, the Trust paid dividends in the amounts of $0.40 per share to its common shareholders and $0.484375 per share to its preferred shareholders, both of record as of March 31, 2017. On May 17, 2017, the Trust declared dividends in the amounts of $0.40 per share payable to its common shareholders and $0.484375 per share payable to its preferred shareholders, both of record as of June 30, 2017. Both dividends were paid on July 14, 2017.

2017 OUTLOOK

The Trust is updating its 2017 outlook to incorporate its second quarter results, recent trends and fundamentals, and the redemption of its 7.75% Series A Cumulative Redeemable Preferred Shares. The outlook assumes no future acquisitions, dispositions, or financing transactions (in millions, except RevPAR and per share amounts):

           

Third Quarter 2017

Outlook
Low High
CONSOLIDATED:
 
Net income available to common shareholders $ 12.6 $ 14.4
Net income per diluted common share $ 0.21 $ 0.24
 
Adjusted Corporate EBITDA $ 47.8 $ 49.8
 
AFFO available to common shareholders $ 36.9 $ 38.7
AFFO per diluted common share $ 0.62 $ 0.66
 
Corporate cash general and administrative expense $ 2.4 $ 2.6
Corporate non-cash general and administrative expense $ 1.8 $ 1.8
 
Weighted-average number of diluted common shares outstanding 59.1 59.1
 
HOTEL PORTFOLIO:
 

22-Hotel Portfolio

RevPAR $ 198.00 $ 202.00
RevPAR change as compared to 2016 (4.5 )% (2.5 )%
Adjusted Hotel EBITDA $ 52.0 $ 54.3
Adjusted Hotel EBITDA Margin 33.1 % 33.9 %
Adjusted Hotel EBITDA Margin change as compared to 2016 (150) bps (75) bps
 

15-Hotel Portfolio

RevPAR $ 195.00 $ 199.00
RevPAR change as compared to 2016 (3.5 )% (1.5 )%
Adjusted Hotel EBITDA $ 32.4 $ 33.8
Adjusted Hotel EBITDA Margin 35.7 % 36.4 %
Adjusted Hotel EBITDA Margin change as compared to 2016 (100) bps (25) bps
 
                       

Full Year 2017

Updated Outlook Previous Outlook
Low High Low High
CONSOLIDATED:
 
Net income available to common shareholders $ 45.3 $ 49.8 $ 42.9 $ 48.9
Net income per diluted common share $ 0.77 $ 0.84 $ 0.73 $ 0.83
 
Adjusted Corporate EBITDA $ 169.0 $ 174.3 $ 169.3 $ 176.3
 
AFFO available to common shareholders $ 127.8 $ 132.3 $ 124.2 $ 130.2
AFFO per diluted common share $ 2.16 $ 2.24 $ 2.10 $ 2.20
 
Corporate cash general and administrative expense $ 10.5 $ 11.3 $ 10.3 $ 11.3
Corporate non-cash general and administrative expense $ 7.5 $ 7.5 $ 7.5 $ 7.5
 
Weighted-average number of diluted common shares outstanding 59.1 59.1 59.1 59.1
 
HOTEL PORTFOLIO:
 

22-Hotel Portfolio

RevPAR $ 183.00 $ 187.00 $ 183.00 $ 187.00
RevPAR change as compared to 2016 (3.5 )% (1.5 )% (3.5 )% (1.5 )%
Adjusted Hotel EBITDA $ 187.0 $ 193.0 $ 187.0 $ 195.0
Adjusted Hotel EBITDA Margin 31.4 % 31.8 % 31.2 % 31.9 %
Adjusted Hotel EBITDA Margin change as compared to 2016 (150) bps (110) bps (170) bps (100) bps
 

15-Hotel Portfolio

RevPAR $ 184.00 $ 188.00 $ 185.00 $ 189.00
RevPAR change as compared to 2016 (1.5 )% 0.5 % (1.0 )% 1.0 %
Adjusted Hotel EBITDA $ 121.4 $ 125.0 $ 121.4 $ 126.6
Adjusted Hotel EBITDA Margin 34.6 % 35.0 % 34.3 % 35.0 %
Adjusted Hotel EBITDA Margin change as compared to 2016 (80) bps (40) bps (115) bps (40) bps
 

NON-GAAP FINANCIAL MEASURES

The Trust reports the following eight non-GAAP financial measures that it believes are useful to investors as key measures of its operating performance: (1) Hotel EBITDA, (2) Adjusted Hotel EBITDA, (3) Adjusted Hotel EBITDA Margin, (4) Corporate EBITDA, (5) Adjusted Corporate EBITDA, (6) FFO, (7) FFO available to common shareholders and (8) AFFO available to common shareholders. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measure are included in the accompanying financial tables.

Hotel EBITDA – Hotel EBITDA is defined as net income before interest, income taxes, depreciation and amortization, air rights amortization, corporate general and administrative, and hotel acquisition costs. The Trust believes that Hotel EBITDA provides investors a useful financial measure to evaluate the Trust’s hotel operating performance, excluding the impact of the Trust’s capital structure (primarily interest), the Trust’s asset base (primarily depreciation and amortization), and the Trust’s corporate-level expenses (corporate general and administrative and hotel acquisition costs).

Adjusted Hotel EBITDA – The Trust further adjusts Hotel EBITDA for certain additional recurring and non-recurring items. Specifically, the Trust adjusts for non-cash amortization of intangible assets and liabilities, including ground lease assets and unfavorable contract liabilities, deferred franchise costs, and deferred key money, all of which are recurring items, and gain (losses) from sales of real estate, which is a non-recurring item. The Trust believes that Adjusted Hotel EBITDA provides investors with another useful financial measure to evaluate the Trust’s hotel operating performance, excluding the effect of these non-cash items.

Adjusted Hotel EBITDA Margin – Adjusted Hotel EBITDA Margin is defined as Adjusted Hotel EBITDA as a percentage of total revenues. The Trust believes that Adjusted Hotel EBITDA Margin provides investors another useful financial measure to evaluate the Trust’s hotel operating performance.

Corporate EBITDA – Corporate EBITDA is defined as net income before interest, income taxes, and depreciation and amortization. The Trust believes that Corporate EBITDA provides investors a useful financial measure to evaluate the Trust’s operating performance, excluding the impact of the Trust’s capital structure (primarily interest expense) and the Trust’s asset base (primarily depreciation and amortization).

Adjusted Corporate EBITDA – The Trust further adjusts Corporate EBITDA for certain additional recurring and non-recurring items. Specifically, the Trust adjusts for hotel acquisition costs and non-cash amortization of intangible assets and liabilities, including air rights contracts, ground lease assets and unfavorable contract liabilities, deferred franchise costs, and deferred key money, all of which are recurring items, and gains (losses) from sales of real estate, which is a non-recurring item. The Trust believes that Adjusted Corporate EBITDA provides investors with another financial measure of its operating performance that provides for greater comparability of its core operating results between periods.

FFO – The Trust calculates FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (NAREIT), which defines FFO as net income (calculated in accordance with GAAP), excluding depreciation and amortization, impairment charges of depreciable real estate, gains (losses) from sales of real estate, the cumulative effect of changes in accounting principles, 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 industry investors consider presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. By excluding the effect of depreciation and amortization and gains (losses) from sales of real estate, both of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance, the Trust believes that FFO provides investors a useful financial measure to evaluate the Trust’s operating performance.

FFO available to common shareholders – The Trust reduces FFO for preferred share dividends, write-off of issuance costs of redeemed preferred shares, and dividends declared on and earnings allocated to unvested time-based awards (consistent with adjustments required by GAAP in reporting net income available to common shareholders and related per share amounts). FFO available to common shareholders provides investors another financial measure to evaluate the Trust’s operating performance after taking into account the interests of holders of the Trust’s preferred shares and unvested time-based awards.

AFFO available to common shareholders – The Trust further adjusts FFO available to common shareholders for certain additional recurring and non-recurring items that are not in NAREIT’s definition of FFO. Specifically, the Trust adjusts for hotel acquisition costs and non-cash amortization of intangible assets and liabilities, including air rights contracts, ground lease assets and unfavorable contract liabilities, deferred franchise costs, and deferred key money, all of which are recurring items, and the write-off of issuance costs of redeemed preferred shares, which is a non-recurring item. The Trust believes that AFFO available to common shareholders provides investors with another financial measure of its operating performance that provides for greater comparability of its core operating results between periods.

           

CHESAPEAKE LODGING TRUST

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

 
 
June 30, 2017 December 31, 2016
(unaudited)
 
ASSETS
Property and equipment, net $ 1,875,055 $ 1,882,869
Intangible assets, net 35,546 35,835
Cash and cash equivalents 59,940 43,060
Restricted cash 31,227 36,128
Accounts receivable, net 25,820 19,966
Prepaid expenses and other assets   21,666     17,516  
Total assets $ 2,049,254   $ 2,035,374  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Long-term debt $ 770,094 $ 737,310
Accounts payable and accrued expenses 66,238 64,581
Other liabilities   44,807     44,808  
Total liabilities   881,139     846,699  
 
Commitments and contingencies
 
Preferred shares, $.01 par value; 100,000,000 shares authorized;

Series A Cumulative Redeemable Preferred Shares; 5,000,000 shares

issued and outstanding ($127,422 liquidation preference)

50 50
Common shares, $.01 par value; 400,000,000 shares authorized;

60,114,283 shares and 59,671,964 shares issued and outstanding, respectively

601 597
Additional paid-in capital 1,307,141 1,304,364
Cumulative dividends in excess of net income (139,545 ) (116,297 )
Accumulated other comprehensive loss   (132 )   (39 )
Total shareholders’ equity   1,168,115     1,188,675  
Total liabilities and shareholders’ equity $ 2,049,254   $ 2,035,374  
 
 
SUPPLEMENTAL CREDIT INFORMATION:
Fixed charge coverage ratio(1) 2.96 3.24
Leverage ratio(1) 34.6 % 31.9 %
 

______________

(1) Calculated as defined under the Trust’s revolving credit facility.

 
 

CHESAPEAKE LODGING TRUST

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)

 
 

 

      Three Months Ended June 30,       Six Months Ended June 30,
2017       2016 2017       2016
REVENUE
Rooms $ 122,268 $ 126,967 $ 221,169 $ 230,739
Food and beverage 33,136 35,664 62,448 66,219
Other   7,057     6,800     13,718     13,084  
Total revenue   162,461     169,431     297,335     310,042  
 
EXPENSES
Hotel operating expenses:
Rooms 27,368 27,876 52,690 53,377
Food and beverage 23,149 24,111 45,388 46,877
Other direct 1,300 1,589 2,656 3,147
Indirect   53,532     53,103     103,347     103,683  
Total hotel operating expenses 105,349 106,679 204,081 207,084
Depreciation and amortization 19,096 18,610 37,883 37,094
Air rights contract amortization 130 130 260 260
Corporate general and administrative   4,647     4,734     9,582     10,000  
Total operating expenses   129,222     130,153     251,806     254,438  
 
Operating income 33,239 39,278 45,529 55,604
 
Interest expense (8,171 ) (7,560 ) (15,969 ) (15,770 )
Gain on sale of hotel       598         598  
 
Income before income taxes 25,068 32,316 29,560 40,432
 
Income tax benefit (expense)   (3,407 )   (3,774 )   120     (1,820 )
 
Net income 21,661 28,542 29,680 38,612
 
Preferred share dividends   (2,422 )   (2,422 )   (4,844 )   (4,844 )
Net income available to common shareholders $ 19,239   $ 26,120   $ 24,836   $ 33,768  
 
Net income per common share—basic and diluted $ 0.32 $ 0.44 $ 0.42 $ 0.57
 
Weighted-average number of common shares outstanding:
Basic 59,033,952 58,722,104 59,014,876 58,701,815
Diluted 59,033,952 58,864,050 59,014,876 58,836,746
 
           

CHESAPEAKE LODGING TRUST

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Six Months Ended June 30,
2017 2016
 
Cash flows from operating activities:
Net income $ 29,680 $ 38,612
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 37,883 37,094
Air rights contract amortization 260 260
Deferred financing costs amortization 815 936
Gain on sale of hotel (598 )
Share-based compensation 3,846 4,764
Other (310 ) (442 )
Changes in assets and liabilities:
Accounts receivable, net (5,854 ) (9,704 )
Prepaid expenses and other assets (4,177 ) (3,126 )
Accounts payable and accrued expenses 975 4,407
Other liabilities   169     (22 )
Net cash provided by operating activities   63,287     72,181  
 
Cash flows from investing activities:
Disposition of hotel 2,028
Improvements and additions to hotels (28,941 ) (9,217 )
Change in restricted cash   4,901     (3,870 )
Net cash used in investing activities   (24,040 )   (11,059 )
 
Cash flows from financing activities:
Borrowings under revolving credit facility 175,000 130,000
Repayments under revolving credit facility (235,000 ) (190,000 )
Proceeds from issuance of unsecured term loan 225,000
Proceeds from issuance of mortgage debt 150,000
Principal prepayments on mortgage debt (88,190 )
Scheduled principal payments on mortgage debt (131,282 ) (4,877 )
Payment of deferred financing costs (1,749 ) (844 )
Payment of dividends to common shareholders (48,427 ) (47,205 )
Payment of dividends to preferred shareholders (4,844 ) (4,844 )
Repurchase of common shares   (1,065 )   (194 )
Net cash used in financing activities   (22,367 )   (56,154 )
Net increase in cash 16,880 4,968
Cash and cash equivalents, beginning of period   43,060     50,544  
Cash and cash equivalents, end of period $ 59,940   $ 55,512  
 
 

CHESAPEAKE LODGING TRUST

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except share and per share data)

(unaudited)

 
 
The following table reconciles net income to Hotel EBITDA, Adjusted Hotel EBITDA, and Adjusted Hotel EBITDA Margin for the 22-hotel portfolio for the three and six months ended June 30, 2017 and 2016:
                       
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016
Net income $ 21,661 $ 28,542 $ 29,680 $ 38,612
Add: Interest expense 8,171 7,560 15,969 15,770
Income tax expense (benefit) 3,407 3,774 (120 ) 1,820
Depreciation and amortization 19,096 18,610 37,883 37,094
Air rights contract amortization 130 130 260 260
Corporate general and administrative   4,647     4,734     9,582     10,000  
Hotel EBITDA 57,112 63,350 93,254 103,556
 
Less: Non-cash amortization(1) (155 ) (155 ) (310 ) (310 )
Gain on sale of hotel       (598 )       (598 )
Adjusted Hotel EBITDA $ 56,957   $ 62,597   $ 92,944   $ 102,648  
Total revenue $ 162,461 $ 169,431 $ 297,335 $ 310,042
 
Adjusted Hotel EBITDA Margin 35.1 % 36.9 % 31.3 % 33.1 %

 

 
      Three Months Ended June 30,       Six Months Ended June 30,
2017       2016 2017       2016
Net income $ 21,661 $ 28,542 $ 29,680 $ 38,612
Add: Interest expense 8,171 7,560 15,969 15,770
Income tax expense (benefit) 3,407 3,774 (120 ) 1,820
Depreciation and amortization   19,096     18,610     37,883     37,094  
Corporate EBITDA 52,335 58,486 83,412 93,296
Less: Non-cash amortization(1) (25 ) (25 ) (50 ) (50 )
Gain on sale of hotel       (598 )       (598 )
Adjusted Corporate EBITDA $ 52,310   $ 57,863   $ 83,362   $ 92,648  
 
                         
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016
Net income $ 21,661 $ 28,542 $ 29,680 $ 38,612

Add:

Depreciation and amortization

19,096 18,610 37,883 37,094

Less:

Gain on sale of hotel

      (598 )       (598 )
FFO 40,757 46,554 67,563 75,108
 

Less:

Preferred share dividends

(2,422 ) (2,422 ) (4,844 ) (4,844 )
Dividends declared on unvested time-based awards (123 ) (146 ) (247 ) (289 )
Undistributed earnings allocated to unvested time-based awards       (15 )        
FFO available to common shareholders 38,212 43,971 62,472 69,975
 

Less:

Non-cash amortization(1)

  (25 )   (25 )   (50 )   (50 )
AFFO available to common shareholders $ 38,187   $ 43,946   $ 62,422   $ 69,925  
 
FFO per common share—basic and diluted $ 0.65 $ 0.75 $ 1.06 $ 1.19
 
AFFO per common share—basic and diluted $ 0.65 $ 0.75 $ 1.06 $ 1.19
 
                         

Three Months Ending

September 30, 2017

Year Ending

December 31, 2017

Low High Low High
Net income $ 17,560 $ 19,410 $ 55,440 $ 59,940

Add:

Interest expense

9,050 9,050 34,220 34,220
Income tax expense 1,300 1,500 1,250 2,000
Depreciation and amortization 19,900 19,900 78,190 78,190
Air rights contract amortization 130 130 520 520
Corporate general and administrative   4,220     4,420     18,000     18,750  
Hotel EBITDA 52,160 54,410 187,620 193,620
 

Less:

Non-cash amortization(1)

  (160 )   (160 )   (620 )   (620 )
Adjusted Hotel EBITDA $ 52,000   $ 54,250   $ 187,000   $ 193,000  
 
Total revenue $ 156,950 $ 160,100 $ 596,100 $ 607,500
 
Adjusted Hotel EBITDA Margin 33.1 % 33.9 % 31.4 % 31.8 %
 
                         

Three Months Ending

September 30, 2017

Year Ending

December 31, 2017

Low High Low High
Net income $ 17,560 $ 19,410 $ 55,440 $ 59,940

Add:

Interest expense

9,050 9,050 34,220 34,220
Income tax expense 1,300 1,500 1,250 2,000
Depreciation and amortization   19,900     19,900     78,190     78,190  
Corporate EBITDA 47,810 49,860 169,100 174,350
 

Less:

Non-cash amortization(1)

  (30 )   (30 )   (100 )   (100 )
Adjusted Corporate EBITDA $ 47,780   $ 49,830   $ 169,000   $ 174,250  
 
                         

Three Months Ending

September 30, 2017

Year Ending

December 31, 2017

Low High Low High
Net income $ 17,560 $ 19,410 $ 55,440 $ 59,940

Add:

Depreciation and amortization

  19,900     19,900     78,190     78,190  
FFO 37,460 39,310 133,630 138,130
 

Less:

Preferred share dividends

(430 ) (430 ) (5,270 ) (5,270 )
Write-off of issuance costs of redeemed preferred shares (4,420 ) (4,420 ) (4,420 ) (4,420 )
Dividends declared on unvested time-based awards (120 ) (120 ) (490 ) (490 )
Undistributed earnings allocated to unvested time-based awards                
FFO available to common shareholders 32,490 34,340 123,450 127,950
 

Add:

Write-off of issuance costs of redeemed preferred shares

4,420 4,420 4,420 4,420

Less:

Non-cash amortization(1)

  (30 )   (30 )   (100 )   (100 )
AFFO available to common shareholders $ 36,880   $ 38,730   $ 127,770   $ 132,270  
 
FFO per common share - basic and diluted $ 0.55 $ 0.58 $ 2.09 $ 2.17
 
AFFO per common share - basic and diluted $ 0.62 $ 0.66 $ 2.16 $ 2.24
 
Weighted-average number of common shares outstanding:
Basic 59,043 59,043 59,025 59,025
Diluted 59,102 59,102 59,094 59,094
 
                 

CHESAPEAKE LODGING TRUST

CURRENT HOTEL PORTFOLIO

 
 
Hotel Location Rooms Acquisition Date
1       Hyatt Regency Boston Boston, MA 502 March 18, 2010
2 Hilton Checkers Los Angeles Los Angeles, CA 193 June 1, 2010
3 Boston Marriott Newton Newton, MA 430 July 30, 2010
4 Le Meridien San Francisco San Francisco, CA 360 December 15, 2010
5 Homewood Suites Seattle Convention Center Seattle, WA 195 May 2, 2011
6 W Chicago – City Center Chicago, IL 403 May 10, 2011
7 Hotel Indigo San Diego Gaslamp Quarter San Diego, CA 210 June 17, 2011
8 Courtyard Washington Capitol Hill/Navy Yard Washington, DC 204 June 30, 2011
9 Hotel Adagio San Francisco, Autograph Collection San Francisco, CA 171 July 8, 2011
10 Denver Marriott City Center Denver, CO 613 October 3, 2011
11 Hyatt Herald Square New York New York, NY 122 December 22, 2011
12 W Chicago – Lakeshore Chicago, IL 520 August 21, 2012
13 Hyatt Regency Mission Bay Spa and Marina San Diego, CA 429 September 7, 2012
14 The Hotel Minneapolis, Autograph Collection Minneapolis, MN 222 October 30, 2012
15 Hyatt Place New York Midtown South New York, NY 185 March 14, 2013
16 W New Orleans – French Quarter New Orleans, LA 97 March 28, 2013
17 Le Meridien New Orleans New Orleans, LA 410 April 25, 2013
18 Hyatt Centric Fisherman’s Wharf San Francisco, CA 316 May 31, 2013
19 Hyatt Centric Santa Barbara Santa Barbara, CA 200 June 27, 2013
20 JW Marriott San Francisco Union Square San Francisco, CA 337 October 1, 2014
21 Royal Palm South Beach Miami, a Tribute Portfolio Resort Miami Beach, FL 393 March 9, 2015
22 Ace Hotel and Theater Downtown Los Angeles Los Angeles, CA 182 April 30, 2015
6,694
 



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