Ashford Hospitality Prime Results

Ashford Prime Reports Third Quarter 2017 Results

Comparable RevPAR for all Hotels Not Under Renovation decreased 2.9% - Announced Further Progress on Non-Core Hotels Strategy

Ashford Hospitality Trust

Ashford Hospitality Prime, Inc. (NYSE:  AHP) today reported the following results and performance measures for the third quarter ended September 30, 2017.  The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA are comparable assuming each of the hotel properties in the Company's hotel portfolio as of September 30, 2017 were owned as of the beginning of each of the periods presented.  Unless otherwise stated, all reported results compare the third quarter ended September 30, 2017, with the third quarter ended September 30, 2016 (see discussion below).  The Company's Ritz-Carlton St. Thomas and Pier House Resort have been included in Hotels Under Renovation for the third quarter given the impact from the recent hurricanes. The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

STRATEGIC OVERVIEW

  • Focused strategy of investing in luxury hotels and resorts 
  • Targets conservative leverage levels of 45% Net Debt to Gross Assets 
  • Highly-aligned management team and advisory structure 
  • Dividend yield of approximately 6.7%

FINANCIAL AND OPERATING HIGHLIGHTS 

  • Net loss attributable to common stockholders for the quarter was $2.7 million or $0.09 per diluted share 
  • Comparable RevPAR for all hotels decreased 5.3% to $211.36 during the third quarter 
  • Comparable RevPAR for all hotels not under renovation decreased 2.9% to $204.72 during the third quarter 
  • Comparable Hotel EBITDA Margin for all hotels increased 13 basis points for the quarter 
  • Comparable Hotel EBITDA flow-through for all hotels was 72% for the quarter 
  • Adjusted funds from operations (AFFO) was $0.37 per diluted share for the quarter as compared with $0.38 per diluted share from the prior-year quarter 
  • Adjusted EBITDA was $26.0 million for the quarter reflecting 18.3% growth over the prior year quarter 
  • During the quarter, the Company announced that it had refinanced a mortgage loan on the Bardessono Hotel and Spa 
  • Capex invested during the quarter was $11.0 million

UPDATE ON IMPACT FROM HURRICANES 

The Company's third quarter 2017 results were impacted by the effects of recent hurricanes at its Ritz-Carlton St. Thomas hotel in St. Thomas, USVI and its Pier House Resort & Spa hotel in Key West, Florida.  

The Company's Ritz-Carlton St. Thomas resort received physical damage from Hurricane Irma and the Company continues to work with its insurers to assess the damage. Three of the six guestroom buildings on the property were damaged, and the Company, along with Ritz-Carlton, will be examining the implementation of a planned renovation program. The resort, which represents 6.8% of Ashford Prime's Hotel EBITDA on a trailing twelve-month basis through the third quarter, remains functioning and currently has 73 of its 180 guest rooms available for those taking part in the recovery effort.

The Company's Pier House Resort & Spa also sustained physical damage from Hurricane Irma. The property represents 7.2% of Ashford Prime's Hotel EBITDA on a trailing twelve-month basis through the third quarter.  The hotel is accepting reservations and has resumed operations with all of its 142 guest rooms available and in service.  The Company continues to work with its insurers to assess the damage and is underway with renovation projects to restore affected areas of the property.

The Company does not expect its uncovered losses from these natural disasters to exceed $5 million and also does not expect its covered losses to exceed its coverage cap.  For purposes of calculating Adjusted EBITDA and Adjusted Funds From Operations, the Company has added back the uninsured costs relating to the hurricanes.

UPDATE ON NON-CORE HOTELS STRATEGY

Consistent with the announcement of its refined strategy of focusing on luxury hotels and resorts, the Company has been exploring opportunities to either reposition its non-core hotels to better fit that strategy or to opportunistically sell them if conditions warrant.

To that end, as previously announced, the Company's Courtyard Philadelphia Downtown hotel is being converted to an Autograph Collection hotel by June 30, 2019 pursuant to a conversion Product Improvement Plan ("PIP") currently estimated to be approximately $23 million - including updates to the guestrooms, guest bathrooms, corridors, lobby, restaurant, and meeting space - which will create a distinctive theme and style for the property that is commensurate with the Autograph Collection product. Marriott will continue to manage the property after the conversion.

Also, on November 1, 2017, the Company announced plans to convert its Courtyard San Francisco Downtown hotel to an Autograph Collection hotel by December 2019 pursuant to a conversion PIP currently estimated to be approximately $30 million incremental to capital projects already underway - including updates to the guestrooms, guest bathrooms, corridors, lobby, restaurant, facade, and meeting space - which will create a distinctive theme and style for the property that is commensurate with the Autograph Collection product. Marriott will continue to manage the property after the conversion.

Additionally, on November 1, 2017, the Company announced that it had completed the sale of its Marriott Plano Legacy hotel in Plano, Texas for $104 million.  The Company also announced that it is in the process of marketing for sale its other non-core hotel, the Renaissance Tampa in Tampa, FL.  

CAPITAL STRUCTURE 

At September 30, 2017, the Company had total assets of $1.5 billion.  As of September 30, 2017, the Company had $914 million of mortgage debt of which $48 million related to its joint venture partner's share of debt on the Capital Hilton and Hilton La Jolla Torrey Pines.  The Company's total combined debt had a blended average interest rate of 4.0%.

On August 21, 2017, the Company announced it had refinanced a mortgage loan secured by the Bardessono Hotel and Spa with an existing outstanding balance totaling $40 million.  The new loan totals $40 million and has a five year term.  The loan is interest only and provides for a floating interest rate of LIBOR + 2.55%.   The new loan is expected to result in annual interest savings of approximately $1 million.  

PORTFOLIO REVPAR 

As of September 30, 2017, the portfolio consisted of thirteen properties.  During the third quarter of 2017, ten of the Company's hotels were not under renovation.  The Company believes reporting its operating metrics for its hotels on a comparable total basis (all 13 hotels) and comparable not under renovation basis (10 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio.  Details of each category are provided in the tables attached to this release.

  • Comparable RevPAR decreased 5.3% to $211.36 for all hotels on a 1.4% decrease in ADR and a 4.0% decrease in occupancy 
  • Comparable RevPAR decreased 2.9% to $204.72 for hotels not under renovation on a 1.9% decrease in ADR and 1.0% decrease in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

The Company believes year-over-year Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons.  Given the substantial seasonality in the Company's portfolio, to help investors better understand this seasonality, the Company provides quarterly detail on its Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company's portfolio as of the end of the current period.  As the Company's portfolio mix changes from time to time so will the seasonality for Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin.  The details of the quarterly calculations for the previous four quarters for the thirteen hotels are provided in the table attached to this release.

COMMON STOCK DIVIDEND 

On September 14, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.16per diluted share for the Company's common stock for the third quarter ending September 30, 2017.  The dividend, which equates to an annual rate of $0.64 per share, is payable on October 16, 2017, to shareholders of record as of September 30, 2017.

"While this was a challenging quarter for us on multiple fronts, we remain focused on the execution of our strategies to both grow our portfolio within the luxury chain scale segment as well as find value-enhancing opportunities within our non-core portfolio," commented Richard J. Stockton, Ashford Prime's President and Chief Executive Officer. "During the quarter we faced hurricanes, renovation disruption at our Courtyard San Francisco, and a difficult year-over-year comp at our Courtyard Philadelphia.  While these short term issues impacted our results, we do not believe it impacted the long-term value proposition of our high quality portfolio.  We made significant progress on our non-core hotel strategy as evidenced by our announcements that we will convert the Courtyard San Francisco to an Autograph Collection hotel, that we have sold the Marriott Plano, and that we began marketing for sale the Renaissance Tampa.  Progress on this front demonstrates our commitment to execute on our strategy in a manner that is accretive to long-term shareholder returns."  

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)

 

September 30,

 2017

December 31,

 2016

ASSETS

Investments in hotel properties, gross

$

1,529,111

$

1,258,412

Accumulated depreciation

(297,976)

(243,880)

Investments in hotel properties, net

1,231,135

1,014,532

Cash and cash equivalents

126,771

126,790

Restricted cash

31,609

37,855

Accounts receivable, net of allowance of $236 and $96, respectively

20,493

18,194

Insurance receivable

19,037

Inventories

1,739

1,479

Note receivable

8,098

8,098

Deferred costs, net

745

1,020

Prepaid expenses

4,493

3,669

Investment in Ashford Inc., at fair value

11,810

8,407

Derivative assets

758

1,149

Other assets

4,524

2,249

Intangible assets, net

22,615

22,846

Due from Ashford Trust OP, net

488

Due from AQUA U.S. Fund

2,289

Due from related party, net

645

377

Due from third-party hotel managers

7,492

7,555

Total assets

$

1,491,964

$

1,256,997

LIABILITIES AND EQUITY

Liabilities:

Indebtedness, net

$

906,820

$

764,616

Accounts payable and accrued expenses

59,912

44,791

Dividends and distributions payable

8,599

5,038

Due to Ashford Inc.

1,380

5,085

Due to affiliate

2,500

Due to third-party hotel managers

2,633

973

Intangible liability, net

3,583

3,625

Other liabilities

1,576

1,432

Total liabilities

984,503

828,060

5.50% Series B cumulative convertible preferred stock, $0.01 par value, 4,965,850 and 2,890,850 

   shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively

106,123

65,960

Redeemable noncontrolling interests in operating partnership

45,782

59,544

Equity:

Common stock, $0.01 par value, 200,000,000 shares authorized, 31,950,777 and 26,021,552 

   shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively

319

260

Additional paid-in capital

467,460

401,790

Accumulated deficit

(106,941)

(93,254)

Total stockholders' equity of the Company

360,838

308,796

Noncontrolling interest in consolidated entities

(5,282)

(5,363)

Total equity

355,556

303,433

Total liabilities and equity

$

1,491,964

$

1,256,997

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

2017

2016

REVENUE

Rooms

$

77,336

$

73,944

$

224,203

$

222,778

Food and beverage

23,147

20,106

75,600

72,022

Other

7,597

5,568

21,588

16,977

Total hotel revenue

108,080

99,618

321,391

311,777

Other

39

33

116

103

Total revenue

108,119

99,651

321,507

311,880

EXPENSES

Hotel operating expenses

Rooms

17,698

16,926

51,108

49,841

Food and beverage

17,766

15,944

53,890

51,656

Other expenses

35,182

28,249

94,934

86,923

Management fees

3,889

3,820

11,643

11,958

Total hotel operating expenses

74,535

64,939

211,575

200,378

Property taxes, insurance and other

5,197

5,120

15,641

14,677

Depreciation and amortization

14,133

11,175

39,573

34,342

Impairment charges

1,008

1,008

Advisory services fee:

Base advisory fee

2,300

2,103

6,579

6,334

Reimbursable expenses

462

730

1,541

2,027

Incentive fee

487

772

Non-cash stock/unit-based compensation

(948)

1,134

(2,298)

3,220

Contract modification cost

5,000

Transaction costs

244

63

6,638

501

Corporate, general and administrative:

Non-cash stock/unit-based compensation

50

245

271

Other general and administrative

1,602

2,603

6,762

16,143

Total operating expenses

98,533

88,404

292,264

278,665

OPERATING INCOME (LOSS)

9,586

11,247

29,243

33,215

Equity in earnings (loss) of unconsolidated entity

(2,587)

Interest income

198

50

475

132

Gain (loss) on sale of hotel property

26,359

26,359

Other income (expense)

(22)

(78)

(292)

(88)

Interest expense

(9,254)

(9,028)

(24,989)

(28,660)

Amortization of loan costs

(1,356)

(767)

(3,754)

(2,406)

Write-off of loan costs and exit fees

(380)

(2,595)

(2,343)

(2,595)

Unrealized gain (loss) on investments

1,875

(458)

3,403

(1,091)

Unrealized gain (loss) on derivatives

(531)

(3,912)

(1,529)

2,218

INCOME (LOSS) BEFORE INCOME TAXES

116

20,818

214

24,497

Income tax (expense) benefit

(333)

504

(334)

(1,022)

NET INCOME (LOSS)

(217)

21,322

(120)

23,475

(Income) loss from consolidated entities attributable to noncontrolling 

interest

(1,143)

(2,504)

(2,736)

(2,569)

Net (income) loss attributable to redeemable noncontrolling interests in 

operating partnership

360

(1,960)

958

(1,994)

NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

(1,000)

16,858

(1,898)

18,912

Preferred dividends

(1,707)

(994)

(5,087)

(2,866)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(2,707)

$

15,864

$

(6,985)

$

16,046

INCOME (LOSS) PER SHARE – BASIC AND DILUTED

Basic:

Net income (loss) attributable to common stockholders

$

(0.09)

$

0.61

$

(0.25)

$

0.58

Weighted average common shares outstanding – basic

31,483

25,554

30,089

27,261

Diluted:

Net income (loss) attributable to common stockholders

$

(0.09)

$

0.55

$

(0.25)

$

0.56

Weighted average common shares outstanding – diluted

31,483

33,874

30,089

31,887

Dividends declared per common share:

$

0.16

$

0.12

$

0.48

$

0.34

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA

(in thousands)

(unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

2017

2016

Net income (loss)

$

(217)

$

21,322

$

(120)

$

23,475

(Income) loss from consolidated entities attributable to noncontrolling interest

(1,143)

(2,504)

(2,736)

(2,569)

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

360

(1,960)

958

(1,994)

Net income (loss) attributable to the Company

(1,000)

16,858

(1,898)

18,912

Interest income

(195)

(50)

(470)

(132)

Interest expense and amortization of loan costs

10,111

9,380

27,338

29,839

Depreciation and amortization

13,406

10,459

37,409

32,216

Income tax expense (benefit)

426

(504)

319

1,022

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

(360)

1,960

(958)

1,994

EBITDA available to the Company and OP unitholders

22,388

38,103

61,740

83,851

Amortization of favorable (unfavorable) contract assets (liabilities)

43

43

136

69

Transaction and management conversion costs

260

63

6,700

501

Other (income) expense

22

78

292

88

Gain (loss) on sale of hotel property

(26,359)

(26,359)

Write-off of loan costs and exit fees

380

2,595

2,343

2,595

Unrealized (gain) loss on investments

(1,875)

458

(3,403)

1,091

Unrealized (gain) loss on derivatives

531

3,912

1,529

(2,218)

Non-cash stock/unit-based compensation

(921)

1,234

(1,992)

3,541

Legal, advisory and settlement costs

560

1,830

3,508

14,056

Contract modification cost

5,000

Software implementation costs

79

Impairment and uninsured hurricane related costs

4,581

4,581

Company's portion of unrealized (gain) loss of investment in securities investment fund

2,587

Adjusted EBITDA available to the Company and OP unitholders

$

25,969

$

21,957

$

80,513

$

79,802

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO

(in thousands, except per share amounts)

(unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

2017

2016

Net income (loss)

$

(217)

$

21,322

$

(120)

$

23,475

(Income) loss from consolidated entities attributable to noncontrolling interest

(1,143)

(2,504)

(2,736)

(2,569)

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

360

(1,960)

958

(1,994)

Preferred dividends

(1,707)

(994)

(5,087)

(2,866)

Net income (loss) attributable to common stockholders

(2,707)

15,864

(6,985)

16,046

Depreciation and amortization on real estate

13,406

10,459

37,409

32,216

Impairment charges on real estate

1,008

1,008

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

(360)

1,960

(958)

1,994

Gain (loss) on sale of hotel property

(26,359)

(26,359)

FFO available to common stockholders and OP unitholders

11,347

1,924

30,474

23,897

Preferred dividends

1,707

994

5,087

2,866

Transaction and management conversion costs

260

63

6,700

501

Other (income) expense

22

78

292

88

Write-off of loan costs and exit fees

380

2,595

2,343

2,595

Unrealized (gain) loss on investments

(1,875)

458

(3,403)

1,091

Unrealized (gain) loss on derivatives

531

3,912

1,529

(2,218)

Non-cash stock/unit-based compensation

(921)

1,234

(1,992)

3,541

Legal, advisory and settlement costs

560

1,830

3,508

14,056

Contract modification cost

5,000

Software implementation costs

79

Uninsured hurricane related costs

3,573

3,573

Company's portion of unrealized (gain) loss of investment in securities investment fund

2,587

Adjusted FFO available to the Company and OP unitholders

$

15,584

$

13,088

$

53,190

$

49,004

Adjusted FFO per diluted share available to the Company and OP unitholders

$

0.37

$

0.38

$

1.31

$

1.38

Weighted average diluted shares

42,519

33,995

40,465

35,609

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

SEPTEMBER 30, 2017 

(dollars in thousands)

(unaudited)

 

Indebtedness

Maturity

Interest Rate

Fixed-

Rate

Debt

Floating-

Rate

Debt

Total

Debt

Comparable

TTM 

Hotel

EBITDA (8)

Comparable

TTM

EBITDA

Debt Yield

 Apollo Ritz-Carlton St. Thomas - 1 hotel

December 2017

LIBOR + 4.95%

$

$

42,000

(1)

$

42,000

$

9,432

22.5

%

 GACC Sofitel - 1 hotel

March 2018

LIBOR + 2.30%

80,000

(2)

80,000

6,390

8.0

%

 Credit Agricole Pier House - 1 hotel

March 2018

LIBOR + 2.25%

70,000

(3)

70,000

9,994

14.3

%

 TIF Philly CY - 1 hotel

June 2018

12.85%

8,098

8,098

N/A

N/A

 Morgan Stanley Pool - 5 hotels

February 2019

LIBOR + 2.58%

365,000

(4)

365,000

57,765

15.8

%

 JPMorgan Park Hyatt Beaver Creek - 1 hotel

April 2019

LIBOR + 2.75%

67,500

(1)

67,500

9,972

14.8

%

 Aareal - 2 hotels

November 2019

LIBOR + 2.65%

190,481

(5)

190,481

32,818

17.2

%

 Secured revolving credit facility - various

November 2019

Base Rate(7) + 1.25% to 2.50% or 

LIBOR + 2.25% to 3.50%

(6)

N/A

N/A

 BAML Hotel Yountville - 1 hotel

May 2022

LIBOR + 2.55%

51,000

51,000

6,233

12.2

%

 BAML Bardessono - 1 hotel

August 2022

LIBOR + 2.55%

40,000

40,000

5,378

13.4

%

 Total

$

8,098

$

905,981

$

914,079

$

137,982

15.1

%

 Percentage

0.9

%

99.1

%

100.0

%

 Weighted average interest rate

12.85

%

3.90

%

3.98

%

 

All indebtedness is non-recourse with the exception of the secured revolving credit facility.

(1)      This mortgage loan has three one-year extension options subject to satisfaction of certain conditions.

(2)      This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the second was exercised in March 2017.

(3)      This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in March 2017.

(4)      This mortgage loan has five one-year extension options subject to satisfaction of certain conditions.

(5)      This mortgage loan has two one-year extension options subject to satisfaction of certain conditions.

(6)      This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2019.

(7)      Base Rate, as defined in the secured revolving credit facility agreement, is the greater of (i) the prime rate set by Bank of America, or (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%.

(8)      See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

 

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

SEPTEMBER 30, 2017

(dollars in thousands)

(unaudited)

2017

2018

2019

2020

2021

Thereafter

Total

 Secured revolving credit facility - various

$

$

$

$

$

$

$

 TIF Philly CY - 1 hotel

8,098

8,098

 GACC Sofitel - 1 hotel

80,000

80,000

 Credit Agricole Pier House - 1 hotel

70,000

70,000

 Apollo Ritz-Carlton St. Thomas - 1 hotel

42,000

42,000

 Aareal - 2 hotels

177,486

177,486

 Morgan Stanley Pool - 5 hotels

365,000

365,000

 JPMorgan Park Hyatt Beaver Creek - 1 hotel

67,500

67,500

 BAML Hotel Yountville - 1 hotel

51,000

51,000

 BAML Bardessono - 1 hotel

40,000

40,000

 Principal due in future periods

$

$

8,098

$

80,000

$

112,000

$

177,486

$

523,500

$

901,084

 Scheduled amortization payments remaining

708

2,939

3,120

3,312

2,916

12,995

 Total indebtedness

$

708

$

11,037

$

83,120

$

115,312

$

180,402

$

523,500

$

914,079

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS

(unaudited)

ALL HOTELS:

Three Months Ended September 30,

Actual

Non-

comparable

Adjustments

Comparable

Actual

Non-

comparable

Adjustments

Comparable

Actual

Comparable

2017

2017

2017

2016

2016

2016

% Variance

% Variance

Rooms revenue (in thousands)

$

77,336

$

$

77,336

$

73,944

$

7,582

$

81,526

4.59

%

(5.14)

%

RevPAR

$

211.36

$

$

211.36

$

217.11

$

305.22

$

223.10

(2.65)

%

(5.26)

%

Occupancy

83.00

%

%

83.00

%

86.89

%

79.96

%

86.42

%

(4.48)

%

(3.96)

%

ADR

$

254.65

$

$

254.65

$

249.86

$

381.72

$

258.15

1.92

%

(1.36)

%

ALL HOTELS:

Nine Months Ended September 30,

Actual

Non-

comparable

Adjustments

Comparable

Actual

Non-

comparable

Adjustments

Comparable

Actual

Comparable

2017

2017

2017

2016

2016

2016

% Variance

% Variance

Rooms revenue (in thousands)

$

224,203

$

13,507

$

237,710

$

222,778

$

17,892

$

240,670

0.64

%

(1.23)

%

RevPAR

$

212.01

$

491.16

$

219.08

$

210.20

$

628.23

$

221.14

0.86

%

(0.93)

%

Occupancy

81.92

%

80.63

%

81.89

%

83.65

%

54.39

%

82.89

%

(2.07)

%

(1.21)

%

ADR

$

258.79

$

609.13

$

267.53

$

251.27

$

1,155.08

$

266.79

2.99

%

0.28

%

NOTES: 

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

ALL HOTELS     

NOT UNDER RENOVATION:

Three Months Ended September 30,

Actual

Non-

comparable

Adjustments

Comparable

Actual

Non-

comparable

Adjustments

Comparable

Actual

Comparable

2017

2017

2017

2016

2016

2016

% Variance

% Variance

Rooms revenue (in thousands)

$

61,156

$

$

61,156

$

55,347

$

7,582

$

62,929

10.50

%

(2.82)

%

RevPAR

$

204.72

$

$

204.72

$

202.22

$

305.22

$

210.79

1.24

%

(2.88)

%

Occupancy

84.91

%

%

84.91

%

86.30

%

79.96

%

85.77

%

(1.61)

%

(1.00)

%

ADR

$

241.10

$

$

241.10

$

234.32

$

381.72

$

245.75

2.89

%

(1.89)

%

ALL HOTELS     

NOT UNDER RENOVATION:

Nine Months Ended September 30,

Actual

Non-

comparable

Adjustments

Comparable

Actual

Non-

comparable

Adjustments

Comparable

Actual

Comparable

2017

2017

2017

2016

2016

2016

% Variance

% Variance

Rooms revenue (in thousands)

$

164,520

$

13,507

$

178,027

$

158,783

$

17,892

$

176,675

3.61

%

0.77

%

RevPAR

$

191.62

$

491.16

$

200.92

$

184.49

$

628.23

$

198.71

3.86

%

1.11

%

Occupancy

82.54

%

80.63

%

82.48

%

82.69

%

54.39

%

81.78

%

(0.18)

%

0.86

%

ADR

$

232.15

$

609.13

$

243.59

$

223.11

$

1,155.08

$

242.96

4.05

%

0.26

%

NOTES: 

(1)

The above comparable information assumes the ten hotel properties owned and included in the Company's operations at September 30, 2017, and not under renovation during the three months ended September 30, 2017, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

Excluded Hotels Under Renovation: 

Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

HOTEL EBITDA

(dollars in thousands)

(unaudited)

ALL HOTELS:

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

% Variance

2017

2016

% Variance

Total hotel revenue

$

108,080

$

99,618

8.49

%

$

321,391

$

311,777

3.08

%

Non-comparable adjustments

13,853

23,086

35,768

Comparable total hotel revenue

$

108,080

$

113,471

(4.75)

%

$

344,477

$

347,545

(0.88)

%

Hotel EBITDA

$

33,030

$

29,971

10.21

%

$

100,132

$

97,913

2.27

%

Non-comparable adjustments

4,561

8,191

10,163

Comparable hotel EBITDA

$

33,030

$

34,532

(4.35)

%

$

108,323

$

108,076

0.23

%

Hotel EBITDA margin

30.56

%

30.09

%

0.47

%

31.16

%

31.40

%

(0.24)

%

Comparable hotel EBITDA margin

30.56

%

30.43

%

0.13

%

31.45

%

31.10

%

0.35

%

Hotel EBITDA adjustments attributable to consolidated noncontrolling interests

$

1,618

$

1,688

(4.15)

%

$

6,483

$

5,864

10.55

%

Hotel EBITDA attributable to the Company and OP unitholders

$

31,412

$

28,283

11.07

%

$

93,649

$

92,049

1.74

%

Comparable hotel EBITDA attributable to the Company and OP unitholders

$

31,412

$

32,844

(4.36)

%

$

101,840

$

102,212

(0.36)

%

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-

comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

ALL HOTELS     

Three Months Ended

Nine Months Ended

NOT UNDER RENOVATION:

September 30,

September 30,

2017

2016

% Variance

2017

2016

% Variance

Total hotel revenue

$

85,390

$

74,040

15.33

%

$

237,295

$

222,471

6.66

%

Non-comparable adjustments

13,853

23,086

35,768

Comparable total hotel revenue

$

85,390

$

87,893

(2.85)

%

$

260,381

$

258,239

0.83

%

Hotel EBITDA

$

26,877

$

24,381

10.24

%

$

74,063

$

71,726

3.26

%

Non-comparable adjustments

4,561

8,191

10,163

Comparable hotel EBITDA

$

26,877

$

28,942

(7.13)

%

$

82,254

$

81,889

0.45

%

Hotel EBITDA margin

31.48

%

32.93

%

(1.45)

%

31.21

%

32.24

%

(1.03)

%

Comparable hotel EBITDA margin

31.48

%

32.93

%

(1.45)

%

31.59

%

31.71

%

(0.12)

%

Hotel EBITDA adjustments attributable to consolidated noncontrolling interests

$

1,618

$

1,688

(4.15)

%

$

6,483

$

5,864

10.55

%

Hotel EBITDA attributable to the Company and OP unitholders

$

25,259

$

22,693

11.31

%

$

67,580

$

65,862

2.61

%

Comparable hotel EBITDA attributable to the Company and OP unitholders

$

25,259

$

27,254

(7.32)

%

$

75,771

$

76,025

(0.33)

%

NOTES:

(1)

The above comparable information assumes the ten hotel properties owned and included in the Company's operations at September 30, 2017, and not under renovation during the three months ended September 30, 2017, 

were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the 

period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4)

Excluded Hotels Under Renovation:

Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

Three Months Ended September 30,

Actual

Non-

comparable

Adjustments

Comparable

Actual

Non-

comparable

Adjustments

Comparable

Actual

Comparable

2017

2017

2017

2016

2016

2016

% Variance

% Variance

CAPITAL HILTON WASHINGTON D.C.

Selected Financial Information:

Rooms revenue

$

9,518

$

$

9,518

$

9,720

$

$

9,720

(2.08)

%

(2.08)

%

Total hotel revenue

$

12,949

$

$

12,949

$

13,427

$

$

13,427

(3.56)

%

(3.56)

%

Hotel EBITDA

$

2,639

$

$

2,639

$

3,228

$

$

3,228

(18.25)

%

(18.25)

%

Hotel EBITDA margin

20.38

%

20.38

%

24.04

%

24.04

%

(3.66)

%

(3.66)

%

Selected Operating Information:

RevPAR

$

188.10

$

$

188.10

$

192.09

$

$

192.09

(2.08)

%

(2.08)

%

Occupancy

91.42

%

%

91.42

%

91.90

%

%

91.90

%

(0.52)

%

(0.52)

%

ADR

$

205.75

$

$

205.75

$

209.03

$

$

209.03

(1.57)

%

(1.57)

%

LA JOLLA HILTON TORREY PINES

Selected Financial Information:

Rooms revenue

$

7,279

$

$

7,279

$

6,748

$

$

6,748

7.87

%

7.87

%

Total hotel revenue

$

11,643

$

$

11,643

$

10,747

$

$

10,747

8.34

%

8.34

%

Hotel EBITDA

$

3,835

$

$

3,835

$

3,525

$

$

3,525

8.79

%

8.79

%

Hotel EBITDA margin

32.94

%

32.94

%

32.80

%

32.80

%

0.14

%

0.14

%

Selected Operating Information:

RevPAR

$

200.81

$

$

200.81

$

186.16

$

$

186.16

7.87

%

7.87

%

Occupancy

90.83

%

%

90.83

%

90.40

%

%

90.40

%

0.48

%

0.48

%

ADR

$

221.09

$

$

221.09

$

205.94

$

$

205.94

7.36

%

7.36

%

CHICAGO SOFITEL MAGNIFICENT MILE

Selected Financial Information:

Rooms revenue

$

7,144

$

$

7,144

$

8,050

$

$

8,050

(11.25)

%

(11.25)

%

Total hotel revenue

$

9,379

$

$

9,379

$

10,672

$

$

10,672

(12.12)

%

(12.12)

%

Hotel EBITDA

$

2,164

$

$

2,164

$

3,026

$

$

3,026

(28.49)

%

(28.49)

%

Hotel EBITDA margin

23.07

%

23.07

%

28.35

%

28.35

%

(5.28)

%

(5.28)

%

Selected Operating Information:

RevPAR

$

187.12

$

$

187.12

$

210.87

$

$

210.87

(11.26)

%

(11.26)

%

Occupancy

87.50

%

%

87.50

%

91.35

%

%

91.35

%

(4.21)

%

(4.21)

%

ADR

$

213.86

$

$

213.86

$

230.83

$

$

230.83

(7.35)

%

(7.35)

%

BARDESSONO HOTEL AND SPA

Selected Financial Information:

Rooms revenue

$

4,571

$

$

4,571

$

4,424

$

$

4,424

3.32

%

3.32

%

Total hotel revenue

$

5,722

$

$

5,722

$

5,614

$

$

5,614

1.92

%

1.92

%

Hotel EBITDA

$

2,143

$

$

2,143

$

1,916

$

$

1,916

11.85

%

11.85

%

Hotel EBITDA margin

37.45

%

37.45

%

34.13

%

34.13

%

3.32

%

3.32

%

Selected Operating Information:

RevPAR

$

801.33

$

$

801.33

$

775.56

$

$

775.56

3.32

%

3.32

%

Occupancy

87.54

%

%

87.54

%

91.83

%

%

91.83

%

(4.67)

%

(4.67)

%

ADR

$

915.44

$

$

915.44

$

844.55

$

$

844.55

8.39

%

8.39

%

KEY WEST PIER HOUSE RESORT

Selected Financial Information:

Rooms revenue

$

2,884

$

$

2,884

$

3,790

$

$

3,790

(23.91)

%

(23.91)

%

Total hotel revenue

$

3,729

$

$

3,729

$

4,888

$

$

4,888

(23.71)

%

(23.71)

%

Hotel EBITDA

$

1,148

$

$

1,148

$

1,676

$

$

1,676

(31.50)

%

(31.50)

%

Hotel EBITDA margin

30.79

%

30.79

%

34.29

%

34.29

%

(3.50)

%

(3.50)

%

Selected Operating Information:

RevPAR

$

220.73

$

$

220.73

$

290.06

$

$

290.06

(23.90)

%

(23.90)

%

Occupancy

64.34

%

%

64.34

%

87.91

%

%

87.91

%

(26.81)

%

(26.81)

%

ADR

$

343.08

$

$

343.08

$

329.97

$

$

329.97

3.97

%

3.97

%

HOTEL YOUNTVILLE

Selected Financial Information:

Rooms revenue

$

4,073

$

$

4,073

$

$

4,363

$

4,363

%

(6.65)

%

Total hotel revenue

$

4,698

$

$

4,698

$

$

5,097

$

5,097

%

(7.83)

%

Hotel EBITDA

$

2,449

$

$

2,449

$

$

2,746

$

2,746

%

(10.82)

%

Hotel EBITDA margin

52.13

%

52.13

%

%

53.87

%

52.13

%

(1.74)

%

Selected Operating Information:

RevPAR

$

553.38

$

$

553.38

$

$

592.81

$

592.81

%

(6.65)

%

Occupancy

84.02

%

%

84.02

%

%

91.75

%

91.75

%

%

(8.43)

%

ADR

$

658.62

$

$

658.62

$

$

646.10

$

646.10

%

1.94

%

PARK HYATT BEAVER CREEK

Selected Financial Information:

Rooms revenue

$

3,203

$

$

3,203

$

$

3,219

$

3,219

%

(0.50)

%

Total hotel revenue

$

8,714

$

$

8,714

$

$

8,756

$

8,756

%

(0.48)

%

Hotel EBITDA

$

1,685

$

$

1,685

$

$

1,811

$

1,811

%

(6.96)

%

Hotel EBITDA margin

19.34

%

19.34

%

%

20.68

%

19.34

%

(1.34)

%

Selected Operating Information:

RevPAR

$

183.24

$

$

183.24

$

$

184.13

$

184.13

%

(0.48)

%

Occupancy

71.12

%

%

71.12

%

%

74.99

%

74.99

%

%

(5.16)

%

ADR

$

257.66

$

$

257.66

$

$

245.53

$

245.53

%

4.94

%

PHILADELPHIA COURTYARD DOWNTOWN

Selected Financial Information:

Rooms revenue

$

6,341

$

$

6,341

$

8,209

$

$

8,209

(22.76)

%

(22.76)

%

Total hotel revenue

$

7,595

$

$

7,595

$

9,544

$

$

9,544

(20.42)

%

(20.42)

%

Hotel EBITDA

$

2,926

$

$

2,926

$

4,081

$

$

4,081

(28.30)

%

(28.30)

%

Hotel EBITDA margin

38.53

%

38.53

%

42.76

%

42.76

%

(4.23)

%

(4.23)

%

Selected Operating Information:

RevPAR

$

138.13

$

$

138.13

$

178.82

$

$

178.82

(22.75)

%

(22.75)

%

Occupancy

83.16

%

%

83.16

%

84.50

%

%

84.50

%

(1.59)

%

(1.59)

%

ADR

$

166.09

$

$

166.09

$

211.62

$

$

211.62

(21.51)

%

(21.51)

%

PLANO MARRIOTT LEGACY TOWN CENTER

Selected Financial Information:

Rooms revenue

$

4,581

$

$

4,581

$

4,739

$

$

4,739

(3.33)

%

(3.33)

%

Total hotel revenue

$

6,871

$

$

6,871

$

7,122

$

$

7,122

(3.52)

%

(3.52)

%

Hotel EBITDA

$

2,402

$

$

2,402

$

2,273

$

$

2,273

5.68

%

5.68

%

Hotel EBITDA margin

34.96

%

34.96

%

31.92

%

31.92

%

3.04

%

3.04

%

Selected Operating Information:

RevPAR

$

123.26

$

$

123.26

$

127.50

$

$

127.50

(3.33)

%

(3.33)

%

Occupancy

68.80

%

%

68.80

%

71.36

%

%

71.36

%

(3.59)

%

(3.59)

%

ADR

$

179.16

$

$

179.16

$

178.68

$

$

178.68

0.27

%

0.27

%

SAN FRANCISCO COURTYARD DOWNTOWN

Selected Financial Information:

Rooms revenue

$

8,655

$

$

8,655

$

9,602

$

$

9,602

(9.86)

%

(9.86)

%

Total hotel revenue

$

9,903

$

$

9,903

$

10,799

$

$

10,799

(8.30)

%

(8.30)

%

Hotel EBITDA

$

4,280

$

$

4,280

$

3,807

$

$

3,807

12.42

%

12.42

%

Hotel EBITDA margin

43.22

%

43.22

%

35.25

%

35.25

%

7.97

%

7.97

%

Selected Operating Information:

RevPAR

$

230.57

$

$

230.57

$

257.71

$

$

257.71

(10.53)

%

(10.53)

%

Occupancy

81.46

%

%

81.46

%

93.95

%

%

93.95

%

(13.29)

%

(13.29)

%

ADR

$

283.04

$

$

283.04

$

274.31

$

$

274.31

3.18

%

3.18

%

SEATTLE MARRIOTT WATERFRONT

Selected Financial Information:

Rooms revenue

$

10,850

$

$

10,850

$

10,186

$

$

10,186

6.52

%

6.52

%

Total hotel revenue

$

12,883

$

$

12,883

$

12,072

$

$

12,072

6.72

%

6.72

%

Hotel EBITDA

$

5,390

$

$

5,390

$

5,386

$

$

5,386

0.07

%

0.07

%

Hotel EBITDA margin

41.84

%

41.84

%

44.62

%

44.62

%

(2.78)

%

(2.78)

%

Selected Operating Information:

RevPAR

$

327.53

$

$

327.53

$

309.27

$

$

309.27

5.90

%

5.90

%

Occupancy

95.00

%

%

95.00

%

92.68

%

%

92.68

%

2.50

%

2.50

%

ADR

$

344.78

$

$

344.78

$

333.71

$

$

333.71

3.32

%

3.32

%

ST. THOMAS RITZ-CARLTON

Selected Financial Information:

Rooms revenue

$

4,641

$

$

4,641

$

5,205

$

$

5,205

(10.84)

%

(10.84)

%

Total hotel revenue

$

9,058

$

$

9,058

$

9,890

$

$

9,890

(8.41)

%

(8.41)

%

Hotel EBITDA

$

725

$

$

725

$

107

$

$

107

577.57

%

577.57

%

Hotel EBITDA margin

8.00

%

8.00

%

1.08

%

1.08

%

6.92

%

6.92

%

Selected Operating Information:

RevPAR

$

280.28

$

$

280.28

$

314.34

$

$

314.34

(10.84)

%

(10.84)

%

Occupancy

66.79

%

%

66.79

%

80.01

%

%

80.01

%

(16.52)

%

(16.52)

%

ADR

$

419.61

$

$

419.61

$

392.86

$

$

392.86

6.81

%

6.81

%

TAMPA RENAISSANCE

Selected Financial Information:

Rooms revenue

$

3,596

$

$

3,596

$

3,271

$

$

3,271

9.94

%

9.94

%

Total hotel revenue

$

4,936

$

$

4,936

$

4,843

$

$

4,843

1.92

%

1.92

%

Hotel EBITDA

$

1,244

$

$

1,244

$

950

$

$

950

30.95

%

30.95

%

Hotel EBITDA margin

25.20

%

25.20

%

19.62

%

19.62

%

5.58

%

5.58

%

Selected Operating Information:

RevPAR

$

133.39

$

$

133.39

$

121.33

$

$

121.33

9.94

%

9.94

%

Occupancy

82.50

%

%

82.50

%

77.84

%

%

77.84

%

5.99

%

5.99

%

ADR

$

161.68

$

$

161.68

$

155.87

$

$

155.87

3.73

%

3.73

%

PRIME PROPERTIES TOTAL

Selected Financial Information:

Rooms revenue

$

77,336

$

$

77,336

$

73,944

$

7,582

$

81,526

4.59

%

(5.14)

%

Total hotel revenue

$

108,080

$

$

108,080

$

99,618

$

13,853

$

113,471

8.49

%

(4.75)

%

Hotel EBITDA

$

33,030

$

$

33,030

$

29,971

$

4,561

$

34,532

10.21

%

(4.35)

%

Hotel EBITDA margin

30.56

%

30.56

%

30.09

%

30.43

%

0.47

%

0.13

%

Selected Operating Information:

RevPAR

$

211.36

$

$

211.36

$

217.11

$

305.22

$

223.10

(2.65)

%

(5.26)

%

Occupancy

83.00

%

%

83.00

%

86.89

%

79.96

%

86.42

%

(4.48)

%

(3.96)

%

ADR

$

254.65

$

$

254.65

$

249.86

$

381.72

$

258.15

1.92

%

(1.36)

%

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-comparable 

adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4)

Table excludes Seattle Courtyard Downtown which was sold on July 1, 2016. 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

Nine Months Ended September 30,

Actual

Non-

comparable

Adjustments

Comparable

Actual

Non-

comparable

Adjustments

Comparable

Actual

Comparable

2017

2017

2017

2016

2016

2016

% Variance

% Variance

CAPITAL HILTON WASHINGTON D.C.

Selected Financial Information:

Rooms revenue

$

32,908

$

$

32,908

$

31,082

$

$

31,082

5.87

%

5.87

%

Total hotel revenue

$

45,781

$

$

45,781

$

44,223

$

$

44,223

3.52

%

3.52

%

Hotel EBITDA

$

13,892

$

$

13,892

$

13,326

$

$

13,326

4.25

%

4.25

%

Hotel EBITDA margin

30.34

%

30.34

%

30.13

%

30.13

%

0.21

%

0.21

%

Selected Operating Information:

RevPAR

$

219.17

$

$

219.17

$

206.25

$

$

206.25

6.26

%

6.26

%

Occupancy

90.87

%

%

90.87

%

89.12

%

%

89.12

%

1.96

%

1.96

%

ADR

$

241.19

$

$

241.19

$

231.44

$

$

231.44

4.21

%

4.21

%

LA JOLLA HILTON TORREY PINES

Selected Financial Information:

Rooms revenue

$

19,528

$

$

19,528

$

18,380

$

$

18,380

6.25

%

6.25

%

Total hotel revenue

$

34,449

$

$

34,449

$

31,996

$

$

31,996

7.67

%

7.67

%

Hotel EBITDA

$

12,040

$

$

12,040

$

10,132

$

$

10,132

18.83

%

18.83

%

Hotel EBITDA margin

34.95

%

34.95

%

31.67

%

31.67

%

3.28

%

3.28

%

Selected Operating Information:

RevPAR

$

181.55

$

$

181.55

$

170.26

$

$

170.26

6.63

%

6.63

%

Occupancy

85.20

%

%

85.20

%

84.20

%

%

84.20

%

1.19

%

1.19

%

ADR

$

213.10

$

$

213.10

$

202.21

$

$

202.21

5.39

%

5.39

%

CHICAGO SOFITEL MAGNIFICENT MILE

Selected Financial Information:

Rooms revenue

$

18,441

$

$

18,441

$

19,994

$

$

19,994

(7.77)

%

(7.77)

%

Total hotel revenue

$

24,551

$

$

24,551

$

27,303

$

$

27,303

(10.08)

%

(10.08)

%

Hotel EBITDA

$

4,203

$

$

4,203

$

6,213

$

$

6,213

(32.35)

%

(32.35)

%

Hotel EBITDA margin

17.12

%

17.12

%

22.76

%

22.76

%

(5.64)

%

(5.64)

%

Selected Operating Information:

RevPAR

$

162.77

$

$

162.77

$

175.84

$

$

175.84

(7.43)

%

(7.43)

%

Occupancy

81.16

%

%

81.16

%

81.87

%

%

81.87

%

(0.87)

%

(0.87)

%

ADR

$

200.55

$

$

200.55

$

214.76

$

$

214.76

(6.62)

%

(6.62)

%

BARDESSONO HOTEL AND SPA

Selected Financial Information:

Rooms revenue

$

10,857

$

$

10,857

$

10,418

$

$

10,418

4.21

%

4.21

%

Total hotel revenue

$

14,259

$

$

14,259

$

14,066

$

$

14,066

1.37

%

1.37

%

Hotel EBITDA

$

3,947

$

$

3,947

$

3,598

$

$

3,598

9.70

%

9.70

%

Hotel EBITDA margin

27.68

%

27.68

%

25.58

%

25.58

%

2.10

%

2.10

%

Selected Operating Information:

RevPAR

$

641.46

$

$

641.46

$

613.24

$

$

613.24

4.60

%

4.60

%

Occupancy

81.73

%

%

81.73

%

84.64

%

%

84.64

%

(3.44)

%

(3.44)

%

ADR

$

784.89

$

$

784.89

$

724.56

$

$

724.56

8.33

%

8.33

%

KEY WEST PIER HOUSE RESORT

Selected Financial Information:

Rooms revenue

$

13,253

$

$

13,253

$

14,239

$

$

14,239

(6.92)

%

(6.92)

%

Total hotel revenue

$

16,867

$

$

16,867

$

17,756

$

$

17,756

(5.01)

%

(5.01)

%

Hotel EBITDA

$

7,525

$

$

7,525

$

7,760

$

$

7,760

(3.03)

%

(3.03)

%

Hotel EBITDA margin

44.61

%

44.61

%

43.70

%

43.70

%

0.91

%

0.91

%

Selected Operating Information:

RevPAR

$

341.85

$

$

341.85

$

365.96

$

$

365.96

(6.59)

%

(6.59)

%

Occupancy

79.44

%

%

79.44

%

89.41

%

%

89.41

%

(11.15)

%

(11.15)

%

ADR

$

430.34

$

$

430.34

$

409.30

$

$

409.30

5.14

%

5.14

%

HOTEL YOUNTVILLE

Selected Financial Information:

Rooms revenue

$

6,055

$

3,473

$

9,528

$

$

10,316

$

10,316

%

(7.64)

%

Total hotel revenue

$

7,053

$

4,276

$

11,329

$

$

12,399

$

12,399

%

(8.63)

%

Hotel EBITDA

$

3,433

$

1,233

$

4,666

$

$

5,393

$

5,393

%

(13.48)

%

Hotel EBITDA margin

48.67

%

41.19

%

%

43.50

%

48.67

%

(2.31)

%

Selected Operating Information:

RevPAR

$

529.26

$

333.88

$

436.22

$

$

470.64

$

470.64

%

(7.31)

%

Occupancy

81.63

%

75.52

%

78.72

%

%

87.68

%

87.68

%

%

(10.22)

%

ADR

$

648.33

$

442.11

$

554.13

$

$

536.76

$

536.76

%

3.24

%

PARK HYATT BEAVER CREEK

Selected Financial Information:

Rooms revenue

$

4,920

$

10,034

$

14,954

$

$

14,545

$

14,545

%

2.81

%

Total hotel revenue

$

13,660

$

18,810

$

32,470

$

$

31,364

$

31,364

%

3.53

%

Hotel EBITDA

$

1,238

$

6,968

$

8,206

$

$

7,934

$

7,934

%

3.43

%

Hotel EBITDA margin

9.06

%

25.27

%

%

25.30

%

9.06

%

(0.03)

%

Selected Operating Information:

RevPAR

$

141.49

$

586.82

$

288.30

$

$

279.38

$

279.38

%

3.19

%

Occupancy

57.59

%

83.74

%

66.21

%

%

66.02

%

66.02

%

%

0.29

%

ADR

$

245.70

$

700.74

$

435.44

$

$

423.20

$

423.20

%

2.89

%

PHILADELPHIA COURTYARD DOWNTOWN

Selected Financial Information:

Rooms revenue

$

19,082

$

$

19,082

$

21,010

$

$

21,010

(9.18)

%

(9.18)

%

Total hotel revenue

$

23,142

$

$

23,142

$

25,063

$

$

25,063

(7.66)

%

(7.66)

%

Hotel EBITDA

$

8,703

$

$

8,703

$

9,763

$

$

9,763

(10.86)

%

(10.86)

%

Hotel EBITDA margin

37.61

%

37.61

%

38.95

%

38.95

%

(1.34)

%

(1.34)

%

Selected Operating Information:

RevPAR

$

140.08

$

$

140.08

$

153.67

$

$

153.67

(8.84)

%

(8.84)

%

Occupancy

81.88

%

%

81.88

%

82.46

%

%

82.46

%

(0.70)

%

(0.70)

%

ADR

$

171.07

$

$

171.07

$

186.36

$

$

186.36

(8.20)

%

(8.20)

%

PLANO MARRIOTT LEGACY TOWN CENTER

Selected Financial Information:

Rooms revenue

$

14,905

$

$

14,905

$

15,257

$

$

15,257

(2.31)

%

(2.31)

%

Total hotel revenue

$

24,308

$

$

24,308

$

24,153

$

$

24,153

0.64

%

0.64

%

Hotel EBITDA

$

8,494

$

$

8,494

$

8,323

$

$

8,323

2.05

%

2.05

%

Hotel EBITDA margin

34.94

%

34.94

%

34.46

%

34.46

%

0.48

%

0.48

%

Selected Operating Information:

RevPAR

$

135.15

$

$

135.15

$

137.83

$

$

137.83

(1.94)

%

(1.94)

%

Occupancy

72.24

%

%

72.24

%

71.44

%

%

71.44

%

1.12

%

1.12

%

ADR

$

187.07

$

$

187.07

$

192.93

$

$

192.93

(3.04)

%

(3.04)

%

SAN FRANCISCO COURTYARD DOWNTOWN

Selected Financial Information:

Rooms revenue

$

24,717

$

$

24,717

$

28,102

$

$

28,102

(12.05)

%

(12.05)

%

Total hotel revenue

$

28,400

$

$

28,400

$

32,069

$

$

32,069

(11.44)

%

(11.44)

%

Hotel EBITDA

$

10,301

$

$

10,301

$

10,803

$

$

10,803

(4.65)

%

(4.65)

%

Hotel EBITDA margin

36.27

%

36.27

%

33.69

%

33.69

%

2.58

%

2.58

%

Selected Operating Information:

RevPAR

$

222.61

$

$

222.61

$

253.24

$

$

253.24

(12.10)

%

(12.10)

%

Occupancy

80.84

%

%

80.84

%

90.05

%

%

90.05

%

(10.23)

%

(10.23)

%

ADR

$

275.39

$

$

275.39

$

281.21

$

$

281.21

(2.07)

%

(2.07)

%

SEATTLE MARRIOTT WATERFRONT

Selected Financial Information:

Rooms revenue

$

25,024

$

$

25,024

$

23,055

$

$

23,055

8.54

%

8.54

%

Total hotel revenue

$

32,049

$

$

32,049

$

29,436

$

$

29,436

8.88

%

8.88

%

Hotel EBITDA

$

12,879

$

$

12,879

$

12,067

$

$

12,067

6.73

%

6.73

%

Hotel EBITDA margin

40.19

%

40.19

%

40.99

%

40.99

%

(0.80)

%

(0.80)

%

Selected Operating Information:

RevPAR

$

255.54

$

$

255.54

$

235.03

$

$

235.03

8.73

%

8.73

%

Occupancy

89.69

%

%

89.69

%

84.45

%

%

84.45

%

6.20

%

6.20

%

ADR

$

284.91

$

$

284.91

$

278.30

$

$

278.30

2.38

%

2.38

%

ST. THOMAS RITZ-CARLTON

Selected Financial Information:

Rooms revenue

$

21,713

$

$

21,713

$

21,654

$

$

21,654

0.27

%

0.27

%

Total hotel revenue

$

38,829

$

$

38,829

$

39,481

$

$

39,481

(1.65)

%

(1.65)

%

Hotel EBITDA

$

8,243

$

$

8,243

$

7,624

$

$

7,624

8.12

%

8.12

%

Hotel EBITDA margin

21.23

%

21.23

%

19.31

%

19.31

%

1.92

%

1.92

%

Selected Operating Information:

RevPAR

$

441.86

$

$

441.86

$

439.06

$

$

439.06

0.64

%

0.64

%

Occupancy

75.53

%

%

75.53

%

81.51

%

%

81.51

%

(7.34)

%

(7.34)

%

ADR

$

585.02

$

$

585.02

$

538.68

$

$

538.68

8.60

%

8.60

%

TAMPA RENAISSANCE

Selected Financial Information:

Rooms revenue

$

12,800

$

$

12,800

$

12,618

$

$

12,618

1.44

%

1.44

%

Total hotel revenue

$

18,043

$

$

18,043

$

18,236

$

$

18,236

(1.06)

%

(1.06)

%

Hotel EBITDA

$

5,224

$

$

5,224

$

5,140

$

$

5,140

1.63

%

1.63

%

Hotel EBITDA margin

28.95

%

28.95

%

28.19

%

28.19

%

0.76

%

0.76

%

Selected Operating Information:

RevPAR

$

160.02

$

$

160.02

$

157.16

$

$

157.16

1.82

%

1.82

%

Occupancy

83.03

%

%

83.03

%

82.51

%

%

82.51

%

0.63

%

0.63

%

ADR

$

192.74

$

$

192.74

$

190.49

$

$

190.49

1.18

%

1.18

%

PRIME PROPERTIES TOTAL

Selected Financial Information:

Rooms revenue

$

224,203

$

13,507

$

237,710

$

222,778

$

17,892

$

240,670

0.64

%

(1.23)

%

Total hotel revenue

$

321,391

$

23,086

$

344,477

$

311,777

$

35,768

$

347,545

3.08

%

(0.88)

%

Hotel EBITDA

$

100,132

$

8,191

$

108,323

$

97,913

$

10,163

$

108,076

2.27

%

0.23

%

Hotel EBITDA margin

31.16

%

31.45

%

31.40

%

31.10

%

(0.24)

%

0.35

%

Selected Operating Information:

RevPAR

$

212.01

$

491.16

$

219.08

$

210.20

$

628.23

$

221.14

0.86

%

(0.93)

%

Occupancy

81.92

%

80.63

%

81.89

%

83.65

%

54.39

%

82.89

%

(2.07)

%

(1.21)

%

ADR

$

258.79

$

609.13

$

267.53

$

251.27

$

1,155.08

$

266.79

2.99

%

0.28

%

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments 

include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4)

Table excludes Seattle Courtyard Downtown which was sold on July 1, 2016.

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

TTM Ended September 30,

Actual

Non-comparable

Adjustments

Comparable

2017

2017

2017

CAPITAL HILTON WASHINGTON D.C.

Selected Financial Information:

Rooms revenue

$

42,963

$

$

42,963

Total hotel revenue

$

60,170

$

$

60,170

Hotel EBITDA

$

17,988

$

$

17,988

Hotel EBITDA margin

29.90

%

29.90

%

Selected Operating Information:

RevPAR

$

214.01

$

$

214.01

Occupancy

89.90

%

%

89.90

%

ADR

$

238.06

$

$

238.06

LA JOLLA HILTON TORREY PINES

Selected Financial Information:

Rooms revenue

$

24,712

$

$

24,712

Total hotel revenue

$

44,511

$

$

44,511

Hotel EBITDA

$

14,830

$

$

14,830

Hotel EBITDA margin

33.32

%

33.32

%

Selected Operating Information:

RevPAR

$

171.84

$

$

171.84

Occupancy

84.57

%

%

84.57

%

ADR

$

203.18

$

$

203.18

CHICAGO SOFITEL MAGNIFICENT MILE

Selected Financial Information:

Rooms revenue

$

25,473

$

$

25,473

Total hotel revenue

$

34,128

$

$

34,128

Hotel EBITDA

$

6,390

$

$

6,390

Hotel EBITDA margin

18.72

%

18.72

%

Selected Operating Information:

RevPAR

$

168.16

$

$

168.16

Occupancy

81.88

%

%

81.88

%

ADR

$

205.37

$

$

205.37

BARDESSONO HOTEL AND SPA

Selected Financial Information:

Rooms revenue

$

14,486

$

$

14,486

Total hotel revenue

$

19,127

$

$

19,127

Hotel EBITDA

$

5,378

$

$

5,378

Hotel EBITDA margin

28.12

%

28.12

%

Selected Operating Information:

RevPAR

$

640.14

$

$

640.14

Occupancy

82.20

%

%

82.20

%

ADR

$

778.80

$

$

778.80

KEY WEST PIER HOUSE RESORT

Selected Financial Information:

Rooms revenue

$

17,780

$

$

17,780

Total hotel revenue

$

22,546

$

$

22,546

Hotel EBITDA

$

9,994

$

$

9,994

Hotel EBITDA margin

44.33

%

44.33

%

Selected Operating Information:

RevPAR

$

343.04

$

$

343.04

Occupancy

80.44

%

%

80.44

%

ADR

$

426.48

$

$

426.48

HOTEL YOUNTVILLE

Selected Financial Information:

Rooms revenue

$

6,055

$

6,855

$

12,910

Total hotel revenue

$

7,053

$

8,288

$

15,341

Hotel EBITDA

$

3,433

$

2,800

$

6,233

Hotel EBITDA margin

48.67

%

40.63

%

Selected Operating Information:

RevPAR

$

529.26

$

385.90

$

442.07

Occupancy

81.63

%

78.49

%

79.72

%

ADR

$

648.33

$

491.69

$

554.53

PARK HYATT BEAVER CREEK

Selected Financial Information:

Rooms revenue

$

4,920

$

14,266

$

19,186

Total hotel revenue

$

13,660

$

27,595

$

41,255

Hotel EBITDA

$

1,238

$

8,734

$

9,972

Hotel EBITDA margin

9.06

%

24.17

%

Selected Operating Information:

RevPAR

$

141.49

$

412.58

$

276.67

Occupancy

57.59

%

66.76

%

62.16

%

ADR

$

245.70

$

618.02

$

445.09

PHILADELPHIA COURTYARD DOWNTOWN

Selected Financial Information:

Rooms revenue

$

25,332

$

$

25,332

Total hotel revenue

$

30,722

$

$

30,722

Hotel EBITDA

$

11,497

$

$

11,497

Hotel EBITDA margin

37.42

%

37.42

%

Selected Operating Information:

RevPAR

$

139.09

$

$

139.09

Occupancy

81.37

%

%

81.37

%

ADR

$

170.93

$

$

170.93

PLANO MARRIOTT LEGACY TOWN CENTER

Selected Financial Information:

Rooms revenue

$

19,547

$

$

19,547

Total hotel revenue

$

32,156

$

$

32,156

Hotel EBITDA

$

11,192

$

$

11,192

Hotel EBITDA margin

34.81

%

34.81

%

Selected Operating Information:

RevPAR

$

132.56

$

$

132.56

Occupancy

71.17

%

%

71.17

%

ADR

$

186.26

$

$

186.26

SAN FRANCISCO COURTYARD DOWNTOWN

Selected Financial Information:

Rooms revenue

$

32,864

$

$

32,864

Total hotel revenue

$

37,695

$

$

37,695

Hotel EBITDA

$

12,288

$

$

12,288

Hotel EBITDA margin

32.60

%

32.60

%

Selected Operating Information:

RevPAR

$

221.61

$

$

221.61

Occupancy

82.65

%

%

82.65

%

ADR

$

268.12

$

$

268.12

SEATTLE MARRIOTT WATERFRONT

Selected Financial Information:

Rooms revenue

$

30,717

$

$

30,717

Total hotel revenue

$

40,261

$

$

40,261

Hotel EBITDA

$

15,927

$

$

15,927

Hotel EBITDA margin

39.56

%

39.56

%

Selected Operating Information:

RevPAR

$

234.73

$

$

234.73

Occupancy

86.99

%

%

86.99

%

ADR

$

269.83

$

$

269.83

ST. THOMAS RITZ-CARLTON

Selected Financial Information:

Rooms revenue

$

27,854

$

$

27,854

Total hotel revenue

$

49,626

$

$

49,626

Hotel EBITDA

$

9,432

$

$

9,432

Hotel EBITDA margin

19.01

%

19.01

%

Selected Operating Information:

RevPAR

$

423.95

$

$

423.95

Occupancy

73.98

%

%

73.98

%

ADR

$

573.07

$

$

573.07

TAMPA RENAISSANCE

Selected Financial Information:

Rooms revenue

$

16,566

$

$

16,566

Total hotel revenue

$

23,688

$

$

23,688

Hotel EBITDA

$

6,861

$

$

6,861

Hotel EBITDA margin

28.96

%

28.96

%

Selected Operating Information:

RevPAR

$

154.92

$

$

154.92

Occupancy

81.60

%

%

81.60

%

ADR

$

189.84

$

$

189.84

PRIME PROPERTIES TOTAL

Selected Financial Information:

Rooms revenue

$

289,269

$

21,121

$

310,390

Total hotel revenue

$

415,343

$

35,883

$

451,226

Hotel EBITDA

$

126,458

$

11,524

$

137,982

Hotel EBITDA margin

30.45

%

30.58

%

Selected Operating Information:

RevPAR

$

206.90

$

403.53

$

214.00

Occupancy

81.63

%

70.74

%

81.23

%

ADR

$

253.48

$

570.46

$

263.44

NOTES:  

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's  

operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-comparable

adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel 

properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the 

information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4)

Table excludes Seattle Courtyard Downtown which was sold on July 1, 2016.

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)

Actual

Non-

comparable

Adjustments

Comparable

Actual

Non-

comparable

Adjustments

Comparable

Actual

Non-

comparable

Adjustments

Comparable

Actual

Non-

comparable

Adjustments

Comparable

2017

2017

2017

2017

2017

2017

2017

2017

2017

2016

2016

2016

3rd Quarter

3rd Quarter

3rd Quarter

2nd Quarter

2nd Quarter

2nd Quarter

1st Quarter

1st Quarter

1st Quarter

4th Quarter

4th Quarter

4th Quarter

Total Hotel Revenue

$

108,080

$

$

108,080

$

116,055

$

1,571

$

117,626

$

97,256

$

21,515

$

118,771

$

93,952

$

12,797

$

106,749

Hotel EBITDA

$

33,030

$

$

33,030

$

38,371

$

562

$

38,933

$

28,731

$

7,629

$

36,360

$

26,326

$

3,333

$

29,659

Hotel EBITDA Margin

30.56

%

30.56

%

33.06

%

33.10

%

29.54

%

30.61

%

28.02

%

27.78

%

EBITDA % of Total TTM

26.1

%

23.9

%

30.4

%

28.2

%

22.7

%

26.4

%

20.8

%

21.5

%

JV Interests in EBITDA

$

1,618

$

$

1,618

$

2,642

$

$

2,642

$

2,223

$

$

2,223

$

1,722

$

$

1,722

Actual

Non-

comparable

Adjustments

Comparable

2017

2017

2017

TTM

TTM

TTM

Total Hotel Revenue

$

415,343

$

35,883

$

451,226

Hotel EBITDA

$

126,458

$

11,524

$

137,982

Hotel EBITDA Margin

30.45

%

30.58

%

EBITDA % of Total TTM

100.0

%

100.0

%

JV Interests in EBITDA

$

8,205

$

$

8,205

NOTES:

(1)    The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-comparable 

         adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)    All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

         Adjustments have been made to the pre-acquisition results as indicated below:

         (a) Management fee expense was adjusted to reflect current contractual rates.

(3)    See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

TOTAL ENTERPRISE VALUE

SEPTEMBER 30, 2017 

(in thousands, except share price)

(unaudited)

 

September 30, 2017

End of quarter common shares outstanding

31,951

Partnership units outstanding (common stock equivalents)

5,367

Combined common shares and partnership units outstanding

37,318

Common stock price at quarter end

$

9.50

Market capitalization at quarter end

$

354,521

Series B convertible preferred stock

$

124,146

Debt on balance sheet date

$

914,079

Joint venture partner's share of consolidated debt

$

(47,620)

Net working capital (see below)

$

(145,870)

Total enterprise value (TEV)

$

1,199,256

Ashford Inc. Investment:

Common stock owned at end of quarter

195

Common stock price at quarter end

$

60.60

Market value of Ashford Inc. investment

$

11,810

Cash and cash equivalents

$

123,051

Restricted cash

$

29,830

Accounts receivable, net

$

18,917

Insurance receivable

$

16,426

Prepaid expenses

$

4,269

Due from affiliates, net

$

(735)

Due from third-party hotel managers, net

$

5,098

Market value of Ashford Inc. investment

$

11,810

Total current assets

$

208,666

Accounts payable, net & accrued expenses

$

54,197

Dividends payable

$

8,599

Total current liabilities

$

62,796

Net working capital*

$

145,870

* Includes the Company's pro rata share of net working capital in joint ventures.

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

ANTICIPATED CAPITAL EXPENDITURES CALENDAR (a)

 

2017

2018

Rooms

1st

Quarter

2nd

Quarter

3rd

Quarter

4th

Quarter

1st

Quarter

2nd

Quarter

3rd

Quarter

4th

Quarter

Actual

Actual

Actual

Estimated

Estimated

Estimated

Estimated

Estimated

Capital Hilton Washington D.C.

550

x

x

x

x

Chicago Sofitel Magnificent Mile

415

x

x

x

x

Key West Pier House Resort

142

x

x

x

Philadelphia Courtyard Downtown

499

x

x

San Francisco Courtyard Downtown

405

x

x

x

x

x

x

x

St. Thomas Ritz-Carlton

180

x

x

x

x

x

x

Total

3

1

3

5

4

3

3

4

(a)   Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2017-2018 are included 

        in this table.

 

Exhibit 1

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

 

2017

2017

2017

2016

September 30, 2017

3rd Quarter

2nd Quarter

1st Quarter

4th Quarter

TTM

Net income (loss)

$

10,705

$

21,607

$

14,951

$

12,615

$

59,878

(Income) loss from consolidated entities attributable to noncontrolling interest

(872)

(1,825)

(1,444)

(971)

(5,112)

Net income (loss) attributable to the Company

9,833

19,782

13,507

11,644

54,766

Non-property adjustments

1,008

1

1,009

Interest income

(18)

(10)

(10)

(10)

(48)

Interest expense

2,744

2,204

1,280

1,672

7,900

Amortization of loan costs

307

271

130

135

843

Depreciation and amortization

14,134

13,468

11,851

11,555

51,008

Income tax expense (benefit)

(404)

366

133

(21)

74

Non-hotel EBITDA ownership expense

4,554

465

396

379

5,794

Income (loss) from consolidated entities attributable to noncontrolling interest

872

1,825

1,444

971

5,112

Hotel EBITDA including amounts attributable to noncontrolling interest

33,030

38,371

28,731

26,326

126,458

Non-comparable adjustments

562

7,629

3,333

11,524

Comparable hotel EBITDA

$

33,030

$

38,933

$

36,360

$

29,659

$

137,982

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Three Months Ended September 30, 2017

Capital

Hilton

Washington

D.C.

La Jolla

Hilton

Torrey

Pines

Chicago

Sofitel

Magnificent

Mile

Bardessono

Hotel & Spa

Key West

Pier House

Resort

Hotel

Yountville

Park Hyatt

Beaver

Creek

Philadelphia

Courtyard

Downtown

Plano

Marriott

Legacy

Town Center

San

Francisco

Courtyard

Downtown

Seattle

Courtyard

Downtown

Seattle

Marriott

Waterfront

St. Thomas

Ritz-

Carlton

Tampa

Renaissance

Hotel

Total

Corporate

/ Allocated

Ashford

Hospitality

Prime, Inc.

Net income (loss)

$          767

$      2,504

$          241

$        1,147

$     (1,139)

$       1,250

$         (23)

$      1,399

$        1,152

$      2,941

$            —

$     4,294

$    (4,081)

$         253

$     10,705

$  (10,922)

$        (217)

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(225)

(647)

(872)

(271)

(1,143)

Net (income) loss attributable to redeemable 

noncontrolling interests in operating partnership

360

360

Net income (loss) attributable to the Company

542

1,857

241

1,147

(1,139)

1,250

(23)

1,399

1,152

2,941

4,294

(4,081)

253

9,833

(10,833)

(1,000)

Non-property adjustments

318

680

10

1,008

(1,008)

Interest income

(9)

(4)

(1)

(3)

(1)

(18)

(180)

(198)

Interest expense

719

185

492

684

664

2,744

6,510

9,254

Amortization of loan cost

11

33

129

134

307

1,049

1,356

Depreciation and amortization

1,644

1,481

1,193

641

736

654

820

1,516

1,232

1,302

1,027

944

944

14,134

(1)

14,133

Income tax expense (benefit)

(184)

(187)

4

(37)

(404)

737

333

Non-hotel EBITDA ownership expense

421

41

11

159

1,233

20

75

8

18

37

72

2,422

37

4,554

(4,554)

Income (loss) from consolidated entities 

attributable to noncontrolling interest

225

647

872

(872)

Hotel EBITDA including amounts attributable 

to noncontrolling interest

2,639

3,835

2,164

2,143

1,148

2,449

1,685

2,926

2,402

4,280

5,390

725

1,244

33,030

(9,152)

23,878

Less: EBITDA adjustments attributable to 

noncontrolling interest

(435)

(311)

(746)

(384)

(1,130)

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(225)

(647)

(872)

872

Net income (loss) attributable to redeemable 

noncontrolling interests in operating partnership

(360)

(360)

Hotel EBITDA attributable to the Company and 

OP unitholders

$       1,979

$      2,877

$      2,164

$      2,143

$       1,148

$     2,449

$       1,685

$     2,926

$     2,402

$     4,280

$            —

$      5,390

$          725

$      1,244

$     31,412

$   (9,024)

$   22,388

Non-comparable adjustments

Comparable hotel EBITDA

$     2,639

$      3,835

$      2,164

$      2,143

$       1,148

$     2,449

$       1,685

$     2,926

$     2,402

$     4,280

$            —

$      5,390

$          725

$      1,244

$   33,030

ALL HOTELS NOT UNDER 

   RENOVATION:

Hotel EBITDA including amounts attributable 

to noncontrolling interest

$     2,639

$      3,835

$      2,164

$      2,143

$            —

$     2,449

$       1,685

$     2,926

$     2,402

$            —

$            —

$      5,390

$            —

$      1,244

$    26,877

Non-comparable adjustments

Comparable hotel EBITDA

$     2,639

$      3,835

$      2,164

$      2,143

$            —

$     2,449

$       1,685

$     2,926

$     2,402

$            —

$            —

$      5,390

$            —

$      1,244

$    26,877

HOTEL EBITDA BY LOAN POOL 

(in thousands) 

(unaudited)

GACC Sofitel - 1 hotel

$            —

$            —

$      2,164

$            —

$            —

$            —

$            —

$            —

$            —

$            —

$            —

$            —

$            —

$            —

$      2,164

Credit Agricole Pier House - 1 hotel

1,148

1,148

BAML Bardessono - 1 hotel

2,143

2,143

BAML Hotel Yountville - 1 hotel

2,449

2,449

Apollo Ritz-Carlton St Thomas - 1 hotel

725

725

Aareal - 2 hotels

2,639

3,835

6,474

Morgan Stanley Pool -5 hotels

2,926

2,402

4,280

5,390

1,244

16,242

JP Morgan Park Hyatt Beaver Creek -1 hotel

1,685

1,685

Total

$     2,639

$      3,835

$      2,164

$      2,143

$       1,148

$     2,449

$       1,685

$     2,926

$     2,402

$     4,280

$      5,390

$          725

$      1,244

$   33,030

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties

acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

Excluded Hotels Under Renovation:

Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Three Months Ended June 30, 2017

Capital

Hilton

Washington

D.C.

La Jolla

Hilton

Torrey

Pines

Chicago

Sofitel

Magnificent

Mile

Bardessono

Hotel & Spa

Key West

Pier House

Resort

Hotel

Yountville

Park

Hyatt

Beaver

Creek

Philadelphia

Courtyard

Downtown

Plano

Marriott

Legacy

Town Center

San

Francisco

Courtyard

Downtown

Seattle

Courtyard

Downtown

Seattle

Marriott

Waterfront

St. Thomas

Ritz-

Carlton

Tampa

Renaissance

Hotel

Total

Corporate

/ Allocated

Ashford

Hospitality

Prime, Inc.

Net income (loss)

$      4,433

$      2,643

$        1,416

$           785

$        1,995

$          297

$    (2,032)

$       2,548

$        1,792

$        1,605

$             10

$       3,895

$        1,435

$           785

$     21,607

$    (21,221)

$          386

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(1,141)

(684)

(1,825)

211

(1,614)

Net (income) loss attributable to redeemable 

noncontrolling interests in operating partnership

344

344

Net income (loss) attributable to the Company

3,292

1,959

1,416

785

1,995

297

(2,032)

2,548

1,792

1,605

10

3,895

1,435

785

19,782

(20,666)

(884)

Non-property adjustments

Interest income

(4)

(1)

(1)

(3)

(1)

(10)

(155)

(165)

Interest expense

669

258

644

633

2,204

6,378

8,582

Amortization of loan cost

11

128

132

271

1,078

1,349

Depreciation and amortization

1,582

1,509

1,123

627

713

365

812

1,519

1,241

1,141

1,013

885

938

13,468

1

13,469

Income tax expense (benefit)

184

154

5

23

366

113

479

Non-hotel EBITDA ownership expense

53

13

7

159

7

53

1

122

3

38

17

3

(11)

465

(465)

Income (loss) from consolidated entities 

attributable to noncontrolling interest

1,141

684

1,825

(1,825)

Hotel EBITDA including amounts attributable 

to noncontrolling interest

6,248

4,318

3,215

1,571

2,715

984

(447)

4,194

3,036

2,783

10

4,922

3,110

1,712

38,371

(15,541)

22,830

Less: EBITDA adjustments attributable to 

noncontrolling interest

(421)

(396)

(817)

(451)

(1,268)

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(1,141)

(684)

(1,825)

1,825

Net income (loss) attributable to redeemable 

noncontrolling interests in operating partnership

(344)

(344)

Hotel EBITDA attributable to the Company and 

OP unitholders

$      4,686

$      3,238

$        3,215

$         1,571

$        2,715

$          984

$        (447)

$       4,194

$      3,036

$       2,783

$             10

$      4,922

$        3,110

$         1,712

$     35,729

$     (14,511)

$      21,218

Non-comparable adjustments

572

(10)

562

Comparable hotel EBITDA

$      6,248

$       4,318

$        3,215

$         1,571

$        2,715

$        1,556

$        (447)

$       4,194

$      3,036

$       2,783

$             —

$      4,922

$        3,110

$         1,712

$    38,933

HOTEL EBITDA BY LOAN POOL

(in thousands)

(unaudited)

GACC Sofitel - 1 hotel

$             —

$             —

$        3,215

$             —

$             —

$             —

$             —

$             —

$             —

$             —

$             —

$             —

$             —

$             —

$        3,215

Credit Agricole Pier House - 1 hotel

2,715

2,715

BAML Bardessono - 1 hotel

1,571

1,571

BAML Hotel Yountville - 1 hotel

1,556

1,556

Apollo Ritz-Carlton St Thomas - 1 hotel

3,110

3,110

Aareal - 2 hotels

6,248

4,318

10,566

Morgan Stanley Pool -5 hotels

4,194

3,036

2,783

4,922

1,712

16,647

JP Morgan Park Hyatt Beaver Creek -1 hotel

(447)

(447)

Total

$      6,248

$       4,318

$        3,215

$         1,571

$        2,715

$        1,556

$        (447)

$       4,194

$      3,036

$       2,783

$             —

$      4,922

$        3,110

$         1,712

$    38,933

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Three Months Ended March 31, 2017

Capital

Hilton

Washington

D.C.

La Jolla

Hilton

Torrey

Pines

Chicago

Sofitel

Magnificent

Mile

Bardessono

Hotel & Spa

Key West

Pier House

Resort

Hotel

Yountville

Park Hyatt

Beaver

Creek

Philadelphia

Courtyard

Downtown

Plano

Marriott

Legacy

Town Center

San

Francisco

Courtyard

Downtown

Seattle

Courtyard

Downtown

Seattle

Marriott

Waterfront

St. Thomas

Ritz-

Carlton

Tampa

Renaissance

Hotel

Total

Corporate

/ Allocated

Ashford

Hospitality

Prime, Inc.

Net income (loss)

$     3,286

$      2,265

$    (2,768)

$        (547)

$     2,963

$            —

$            (7)

$            10

$       1,867

$       2,217

$            —

$       1,570

$      2,749

$      1,346

$     14,951

$  (15,240)

$       (289)

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(854)

(590)

(1,444)

1,465

21

Net (income) loss attributable to redeemable 

noncontrolling interests in operating partnership

255

255

Net income (loss) attributable to the Company

2,432

1,675

(2,768)

(547)

2,963

(7)

10

1,867

2,217

1,570

2,749

1,346

13,507

(13,520)

(13)

Non-property adjustments

Interest income

(2)

(1)

(3)

(3)

(1)

(10)

(102)

(112)

Interest expense

617

7

54

602

1,280

5,873

7,153

Amortization of loan cost

130

130

919

1,049

Depreciation and amortization

1,588

1,518

972

618

689

1,507

1,188

989

994

855

933

11,851

120

11,971

Income tax expense (benefit)

94

(1)

2

(1)

39

133

(611)

(478)

Non-hotel EBITDA ownership expense

133

11

4

162

10

10

2

35

6

34

(11)

396

(396)

Income (loss) from consolidated entities 

attributable to noncontrolling interest

854

590

1,444

(1,444)

Hotel EBITDA including amounts attributable 

to noncontrolling interest

5,005

3,887

(1,176)

233

3,662

1,583

3,056

3,238

2,567

4,408

2,268

28,731

(9,161)

19,570

Less: EBITDA adjustments attributable to 

noncontrolling interest

(397)

(382)

(779)

(402)

(1,181)

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(854)

(590)

(1,444)

1,444

Net income (loss) attributable to redeemable 

noncontrolling interests in operating partnership

(255)

(255)

Hotel EBITDA attributable to the Company and 

OP unitholders

$      3,754

$       2,915

$      (1,176)

$         233

$     3,662

$            —

$            —

$       1,583

$      3,056

$     3,238

$            —

$      2,567

$     4,408

$     2,268

$   26,508

$    (8,374)

$     18,134

Non-comparable adjustments

661

6,968

7,629

Comparable hotel EBITDA

$      5,005

$      3,887

$      (1,176)

$         233

$     3,662

$          661

$     6,968

$       1,583

$      3,056

$     3,238

$            —

$      2,567

$     4,408

$     2,268

$   36,360

HOTEL EBITDA BY LOAN POOL

(in thousands)

(unaudited)

GACC Sofitel - 1 hotel

$            —

$            —

$      (1,176)

$            —

$            —

$            —

$            —

$            —

$            —

$            —

$            —

$            —

$            —

$            —

$      (1,176)

Credit Agricole Pier House - 1 hotel

3,662

3,662

BAML Bardessono - 1 hotel

233

233

BAML Hotel Yountville - 1 hotel

661

661

Apollo Ritz-Carlton St Thomas - 1 hotel

4,408

4,408

Aareal - 2 hotels

5,005

3,887

8,892

Morgan Stanley Pool -5 hotels

1,583

3,056

3,238

2,567

2,268

12,712

JP Morgan Park Hyatt Beaver Creek -1 hotel

6,968

6,968

Total

$      5,005

$      3,887

$      (1,176)

$         233

$     3,662

$          661

$     6,968

$       1,583

$      3,056

$     3,238

$            —

$      2,567

$     4,408

$     2,268

$   36,360

 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Three Months Ended December 31, 2016

Capital

Hilton

Washington

D.C.

La Jolla

Hilton

Torrey

Pines

Chicago

Sofitel

Magnificent

Mile

Bardessono

Hotel & Spa

Key West

Pier House

Resort

Hotel

Yountville

Park Hyatt

Beaver

Creek

Philadelphia

Courtyard

Downtown

Plano

Marriott

Legacy

Town Center

San

Francisco

Courtyard

Downtown

Seattle

Courtyard

Downtown

Seattle

Marriott

Waterfront

St. Thomas

Ritz-

Carlton

Tampa

Renaissance

Hotel

Total

Corporate

/ Allocated

Ashford

Hospitality

Prime, Inc.

Net income (loss)

$      2,448

$       1,204

$          586

$          663

$         1,781

$             —

$             —

$           818

$        1,533

$        1,160

$             —

$       2,078

$        (353)

$          697

$      12,615

$     (11,770)

$          845

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(645)

(326)

(971)

435

(536)

Net (income) loss attributable to redeemable 

noncontrolling interests in operating partnership

95

95

Net income (loss) attributable to the Company

1,803

878

586

663

1,781

818

1,533

1,160

2,078

(353)

697

11,644

(11,240)

404

Non-property adjustments

1

1

(1)

Interest income

(1)

(1)

(4)

(3)

(1)

(10)

(25)

(35)

Interest expense

586

496

590

1,672

7,380

9,052

Amortization of loan cost

8

127

135

628

763

Depreciation and amortization

1,582

1,512

951

610

687

1,470

1,174

825

964

831

949

11,555

11,555

Income tax expense (benefit)

29

(32)

(2)

(16)

(21)

573

552

Non-hotel EBITDA ownership expense

37

106

64

158

1

5

(8)

6

9

10

(9)

379

(379)

Income (loss) from consolidated entities 

attributable to noncontrolling interest

645

326

971

(971)

Hotel EBITDA including amounts attributable 

to noncontrolling interest

4,096

2,790

2,187

1,431

2,469

2,794

2,698

1,987

3,048

1,189

1,637

26,326

(4,035)

22,291

Less: EBITDA adjustments attributable to 

noncontrolling interest

(379)

(372)

(751)

(388)

(1,139)

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(645)

(326)

(971)

971

Net income (loss) attributable to redeemable 

noncontrolling interests in operating partnership

(95)

(95)

Hotel EBITDA attributable to the Company and 

OP unitholders

$       3,072

$      2,092

$        2,187

$        1,431

$      2,469

$             —

$             —

$       2,794

$      2,698

$        1,987

$             —

$      3,048

$        1,189

$        1,637

$    24,604

$     (3,547)

$      21,057

Non-comparable adjustments

1,567

1,766

3,333

Comparable hotel EBITDA

$      4,096

$       2,790

$        2,187

$        1,431

$      2,469

$        1,567

$        1,766

$       2,794

$      2,698

$        1,987

$             —

$      3,048

$        1,189

$        1,637

$    29,659

HOTEL EBITDA BY LOAN POOL

(in thousands)

(unaudited)

GACC Sofitel - 1 hotel

$             —

$             —

$        2,187

$             —

$             —

$             —

$             —

$             —

$             —

$             —

$             —

$             —

$             —

$             —

$        2,187

Credit Agricole Pier House - 1 hotel

2,469

2,469

BAML Bardessono - 1 hotel

1,431

1,431

BAML Hotel Yountville - 1 hotel

1,567

1,567

Apollo Ritz-Carlton St Thomas - 1 hotel

1,189

1,189

Aareal - 2 hotels

4,096

2,790

6,886

Morgan Stanley Pool -5 hotels

2,794

2,698

1,987

3,048

1,637

12,164

JP Morgan Park Hyatt Beaver Creek -1 hotel

1,766

1,766

Total

$      4,096

$       2,790

$        2,187

$        1,431

$      2,469

$        1,567

$        1,766

$       2,794

$      2,698

$        1,987

$             —

$      3,048

$        1,189

$        1,637

$    29,659

 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Three Months Ended September 30, 2016

Capital

Hilton

Washington

D.C.

La Jolla

Hilton

Torrey

Pines

Chicago

Sofitel

Magnificent

Mile

Bardessono

Hotel & Spa

Key West

Pier House

Resort

Hotel

Yountville

Park Hyatt

Beaver

Creek

Philadelphia

Courtyard

Downtown

Plano

Marriott

Legacy

Town Center

San

Francisco

Courtyard

Downtown

Seattle

Courtyard

Downtown

Seattle

Marriott

Waterfront

St. Thomas

Ritz-Carlton

Tampa

Renaissance

Hotel

Total

Corporate

/ Allocated

Ashford

Hospitality

Prime, Inc.

Net income (loss)

$       1,697

$       1,937

$        1,515

$        1,137

$         987

$            —

$            —

$     2,090

$        1,211

$       3,114

$   26,356

$     4,426

$    (1,488)

$             17

$   42,999

$   (21,677)

$    21,322

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(457)

(508)

(965)

(1,539)

(2,504)

Net (income) loss attributable to redeemable 

noncontrolling interests in operating partnership

(1,960)

(1,960)

Net income (loss) attributable to the Company

1,240

1,429

1,515

1,137

987

2,090

1,211

3,114

26,356

4,426

(1,488)

17

42,034

(25,176)

16,858

Non-property adjustments

(26,359)

1

(26,358)

26,358

Interest income

(1)

(1)

(4)

(2)

(1)

(9)

(41)

(50)

Interest expense

572

499

584

1,655

7,373

9,028

Amortization of loan cost

8

125

133

634

767

Depreciation and amortization

1,586

1,504

931

605

678

1,467

1,055

673

952

778

946

11,175

11,175

Income tax expense (benefit)

71

13

(31)

53

(557)

(504)

Non-hotel EBITDA ownership expense

(55)

13

8

174

11

5

8

24

(1)

10

139

(13)

323

(323)

Income (loss) from consolidated entities attributable 

to noncontrolling interest

457

508

965

(965)

Hotel EBITDA including amounts attributable 

to noncontrolling interest

3,228

3,525

3,026

1,916

1,676

4,081

2,273

3,807

(4)

5,386

107

950

29,971

7,303

37,274

Less: EBITDA adjustments attributable to 

noncontrolling interest

(372)

(352)

(724)

(407)

(1,131)

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(457)

(508)

(965)

965

Net income (loss) attributable to redeemable 

noncontrolling interests in operating partnership

1,960

1,960

Hotel EBITDA attributable to the Company and 

OP unitholders

$     2,399

$      2,665

$     3,026

$       1,916

$       1,676

$            —

$            —

$      4,081

$      2,273

$      3,807

$            (4)

$      5,386

$          107

$         950

$   28,282

$      9,821

$    38,103

Non-comparable adjustments

2,746

1,811

4

4,561

Comparable hotel EBITDA

$     3,228

$      3,525

$     3,026

$       1,916

$       1,676

$      2,746

$        1,811

$      4,081

$      2,273

$      3,807

$            —

$      5,386

$          107

$         950

$   34,532

ALL HOTELS NOT UNDER 

   RENOVATION:

Hotel EBITDA including amounts attributable 

to noncontrolling interest

$     3,228

$      3,525

$     3,026

$       1,916

$            —

$            —

$            —

$      4,081

$      2,273

$            —

$            (4)

$      5,386

$            —

$         950

$    24,381

Non-comparable adjustments

2,746

1,811

4

4,561

Comparable hotel EBITDA

$     3,228

$      3,525

$     3,026

$       1,916

$            —

$      2,746

$        1,811

$      4,081

$      2,273

$            —

$            —

$      5,386

$            —

$         950

$   28,942

 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

Excluded Hotels Under Renovation:

Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Nine Months Ended September 30, 2017

Capital

Hilton

Washington

D.C.

La Jolla

Hilton

Torrey

Pines

Chicago

Sofitel

Magnificent

Mile

Bardessono

Hotel & Spa

Key West

Pier House

Resort

Hotel

Yountville

Park Hyatt

Beaver

Creek

Philadelphia

Courtyard

Downtown

Plano

Marriott

Legacy

Town Center

San

Francisco

Courtyard

Downtown

Seattle

Courtyard

Downtown

Seattle

Marriott

Waterfront

St. Thomas

Ritz-

Carlton

Tampa

Renaissance

Hotel

Total

Corporate

/ Allocated

Ashford

Hospitality

Prime, Inc.

Net income (loss)

$     8,486

$      7,412

$       (1,111)

$      1,385

$      3,819

$       1,547

$   (2,062)

$      3,957

$       4,811

$     6,763

$            10

$      9,759

$         103

$     2,384

$   47,263

$ (47,383)

$       (120)

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(2,220)

(1,921)

(4,141)

1,405

(2,736)

Net (income) loss attributable to redeemable 

noncontrolling interests in operating 

partnership

958

958

Net income (loss) attributable to the 

Company

6,266

5,491

(1,111)

1,385

3,819

1,547

(2,062)

3,957

4,811

6,763

10

9,759

103

2,384

43,122

(45,020)

(1,898)

Non-property adjustments

318

680

10

1,008

(1,008)

Interest income

(15)

(6)

(1)

(4)

(9)

(3)

(38)

(437)

(475)

Interest expense

2,005

185

750

1,335

54

1,899

6,228

18,761

24,989

Amortization of loan cost

11

44

257

396

708

3,046

3,754

Depreciation and amortization

4,814

4,508

3,288

1,886

2,138

1,019

1,632

4,542

3,661

3,432

3,034

2,684

2,815

39,453

120

39,573

Income tax expense (benefit)

61

(1)

11

(1)

25

95

239

334

Non-hotel EBITDA ownership expense

607

65

22

480

1,250

73

76

140

23

110

95

2,459

15

5,415

(5,415)

Income (loss) from consolidated entities 

attributable to noncontrolling interest

2,220

1,921

4,141

(4,141)

Hotel EBITDA including amounts 

attributable to noncontrolling interest

13,892

12,040

4,203

3,947

7,525

3,433

1,238

8,703

8,494

10,301

10

12,879

8,243

5,224

100,132

(33,855)

66,277

Less: EBITDA adjustments attributable to 

noncontrolling interest

(1,253)

(1,089)

(2,342)

(1,237)

(3,579)

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(2,220)

(1,921)

(4,141)

4,141

Net income (loss) attributable to redeemable 

noncontrolling interests in operating 

partnership

(958)

(958)

Hotel EBITDA attributable to the Company 

and OP unitholders

$    10,419

$     9,030

$     4,203

$     3,947

$      7,525

$     3,433

$      1,238

$     8,703

$     8,494

$    10,301

$            10

$    12,879

$     8,243

$     5,224

$  93,649

$ (31,909)

$    61,740

Non-comparable adjustments

1,233

6,968

(10)

8,191

Comparable hotel EBITDA

$   13,892

$   12,040

$     4,203

$     3,947

$      7,525

$     4,666

$     8,206

$     8,703

$     8,494

$    10,301

$            —

$    12,879

$     8,243

$     5,224

$ 108,323

ALL HOTELS NOT UNDER 

   RENOVATION:

Hotel EBITDA including amounts 

attributable to noncontrolling interest

$   13,892

$   12,040

$     4,203

$     3,947

$            —

$     3,433

$      1,238

$     8,703

$     8,494

$            —

$            10

$    12,879

$            —

$     5,224

$   74,063

Non-comparable adjustments

1,233

6,968

(10)

8,191

Comparable hotel EBITDA

$   13,892

$   12,040

$     4,203

$     3,947

$            —

$     4,666

$     8,206

$     8,703

$     8,494

$            —

$            —

$    12,879

$            —

$     5,224

$   82,254

 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

Excluded Hotels Under Renovation:

Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Nine Months Ended September 30, 2016

Capital

Hilton

Washington

D.C.

La Jolla

Hilton

Torrey

Pines

Chicago

Sofitel

Magnificent

Mile

Bardessono

Hotel & Spa

Key West

Pier House

Resort

Hotel

Yountville

Park Hyatt

Beaver

Creek

Philadelphia

Courtyard

Downtown

Plano

Marriott

Legacy

Town Center

San

Francisco

Courtyard

Downtown

Seattle

Courtyard

Downtown

Seattle

Marriott

Waterfront

St. Thomas

Ritz-

Carlton

Tampa

Renaissance

Hotel

Total

Corporate

/ Allocated

Ashford

Hospitality

Prime, Inc.

Net income (loss)

$      8,786

$      5,678

$       1,180

$       1,279

$      5,730

$            —

$            —

$      3,616

$        5,116

$     8,930

$    28,725

$     9,209

$       3,017

$     2,322

$   83,588

$   (60,113)

$    23,475

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(2,295)

(1,490)

(3,785)

1,216

(2,569)

Net (income) loss attributable to redeemable 

noncontrolling interests in operating partnership 

(1,994)

(1,994)

Net income (loss) attributable to the Company

6,491

4,188

1,180

1,279

5,730

3,616

5,116

8,930

28,725

9,209

3,017

2,322

79,803

(60,891)

18,912

Non-property adjustments

(26,359)

42

(26,317)

26,317

Interest income

(3)

(2)

(12)

(6)

(2)

(25)

(107)

(132)

Interest expense

1,676

1,481

1,728

4,885

23,775

28,660

Amortization of loan cost

119

24

376

519

1,887

2,406

Depreciation and amortization

4,687

4,497

3,198

1,789

2,016

4,384

3,150

1,851

834

2,838

2,318

2,780

34,342

34,342

Income tax expense (benefit)

(88)

20

(1)

(69)

1,091

1,022

Non-hotel EBITDA ownership expense

(147)

45

40

530

14

241

59

34

(36)

26

146

38

990

(990)

Income (loss) from consolidated entities 

attributable to noncontrolling interest

2,295

1,490

3,785

(3,785)

Hotel EBITDA including amounts 

attributable to noncontrolling interest

13,326

10,132

6,213

3,598

7,760

9,763

8,323

10,803

3,164

12,067

7,624

5,140

97,913

(12,703)

85,210

Less: EBITDA adjustments attributable to 

noncontrolling interest

(1,042)

(1,038)

(2,080)

(1,273)

(3,353)

(Income) loss from consolidated entities 

attributable to noncontrolling interest

(2,295)

(1,490)

(3,785)

3,785

Net income (loss) attributable to redeemable 

noncontrolling interests in operating 

partnership

1,994

1,994

Hotel EBITDA attributable to the Company 

and OP unitholders

$     9,989

$      7,604

$      6,213

$      3,598

$      7,760

$            —

$            —

$      9,763

$     8,323

$    10,803

$      3,164

$    12,067

$      7,624

$       5,140

$   92,048

$     (8,197)

$    83,851

Non-comparable adjustments

5,393

7,934

(3,164)

10,163

Comparable hotel EBITDA

$    13,326

$     10,132

$      6,213

$      3,598

$      7,760

$      5,393

$      7,934

$      9,763

$     8,323

$    10,803

$            —

$    12,067

$      7,624

$       5,140

$  108,076

ALL HOTELS NOT UNDER 

   RENOVATION:

Hotel EBITDA including amounts 

attributable to noncontrolling interest

$    13,326

$     10,132

$      6,213

$      3,598

$            —

$            —

$            —

$      9,763

$     8,323

$            —

$      3,164

$    12,067

$            —

$       5,140

$     71,726

Non-comparable adjustments

5,393

7,934

(3,164)

10,163

Comparable hotel EBITDA

$    13,326

$     10,132

$      6,213

$      3,598

$            —

$      5,393

$      7,934

$      9,763

$     8,323

$            —

$            —

$    12,067

$            —

$       5,140

$    81,889

 

NOTES:

(1)

The above comparable information assumes the thirteen hotel properties owned and included in the Company's operations at September 30, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

Excluded Hotels Under Renovation:

Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton



Logos, product and company names mentioned are the property of their respective owners.