RLJ Lodging Trust Reports Third Quarter 2019 Results

Published

- Completed sale of 19 non-core hotels

- Repurchased 4.0 million common shares for approximately $68 million year-to-date

- Executed Wyndham termination agreement

BETHESDA, Md.--(BUSINESS WIRE)-- RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three and nine months ended September 30, 2019.

Highlights

  • Pro forma RevPAR decreased slightly by 0.3%, driven by a decline of 0.8% in ADR, partially offset by a 0.5% increase in Occupancy
  • Completed previously announced sale of 18 non-core hotels and sold one additional hotel
  • Repurchased approximately 2.8 million common shares for approximately $47.2 million during the third quarter
  • Executed final agreement to terminate Wyndham management and NOI guarantee agreements

“We had another successful quarter, coming on the heels of the recent achievement of several significant milestones in our portfolio evolution,” commented Leslie D. Hale, President and Chief Executive Officer. “We continued to build on this momentum by generating solid operating results in a slowing environment and executing on a number of fronts. Despite choppy fundamentals and impact from Hurricane Dorian, which affected South Florida and Charleston, we achieved operating results generally in-line with our expectations. With a fortress balance sheet and over $1 billion of investment capacity, RLJ is well positioned to create shareholder value.”

The prefix “Pro forma”, as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. Pro forma RevPAR and Pro forma Hotel EBITDA Margin are reported on a comparable basis and therefore exclude any hotels sold during the period and non-comparable hotels that were not open for operation or were closed for renovation for comparable periods. Explanations of EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included within this release.

Pro forma RevPAR for the third quarter declined 0.3%. Pro forma RevPAR was negatively impacted by approximately 40 basis points from Hurricane Dorian. The Company's top performing markets were Louisville and Austin with Pro forma RevPAR growth of 43.3% and 11.1%, respectively.

Net Income for the third quarter was $32.5 million, a decrease of $42.2 million from the comparable period in 2018. For the three months ended September 30, 2019 and September 30, 2018, net income included $1.0 million and $47.7 million respectively, from sold hotels. Net income for the three months ended September 30, 2018, included a gain on sale of hotel properties of $35.9 million.

Adjusted EBITDA for the third quarter was $106.3 million, a decrease of $26.4 million from the comparable period in 2018. Adjusted EBITDA was impacted by approximately $2.0 million from Hurricane Dorian, and reduced by approximately $1.0 million from the earlier than expected closing of 18 hotels, and by approximately $0.1 million from the sale of Residence Inn Columbia. For the three months ended September 30, 2019 and September 30, 2018, Adjusted EBITDA included $2.1 million and $26.0 million respectively, from sold hotels.

Financial and Operating Highlights

($ in thousands, except ADR, RevPAR, and per share amounts)

(unaudited)

 

For the three months ended September 30,

 

For the nine months ended September 30,

 

2019

2018

 

Change

 

2019

2018

 

Change

Operational Overview: (1)

 

 

 

 

 

 

 

 

 

Pro forma ADR

$

176.93

$

178.29

 

(0.8)%

 

$

182.94

$

181.68

 

0.7%

Pro forma Occupancy

80.8%

80.4%

 

0.5%

 

80.0%

79.7%

 

0.4%

Pro forma RevPAR

$

143.05

$

143.42

 

(0.3)%

 

$

146.39

$

144.78

 

1.1%

 

 

 

 

 

 

 

 

 

 

Financial Overview:

 

 

 

 

 

 

 

 

 

Total Revenues

$

371,124

$

447,042

 

(17.0)%

 

$

1,219,118

$

1,361,327

 

(10.4)%

Pro forma Hotel Revenue

$

361,437

$

359,167

 

0.6%

 

$

1,097,647

$

1,078,874

 

1.7%

 

 

 

 

 

 

 

 

 

 

Net Income (2)

$

32,455

$

74,657

 

(56.5)%

 

$

94,468

$

162,943

 

(42.0)%

 

 

 

 

 

 

 

 

 

 

Pro forma Hotel EBITDA

$

113,620

$

115,057

 

(1.2)%

 

$

354,786

$

351,965

 

0.8%

Pro forma Hotel EBITDA Margin

 

31.4%

 

32.0%

 

(60) bps

 

32.3%

 

32.6%

 

(30) bps

Adjusted EBITDA (3)

$

106,305

$

132,672

 

(19.9)%

 

$

366,236

$

408,302

 

(10.3)%

 

 

 

 

 

 

 

 

 

 

Adjusted FFO

$

79,184

$

101,387

 

(21.9)%

 

$

281,015

$

310,799

 

(9.6)%

Adjusted FFO Per Diluted Common Share and Unit

$

0.46

$

0.58

 

(20.7)%

 

$

1.63

$

1.77

 

(7.9)%

Note:

(1) Pro forma statistics reflect the Company's 108 hotel portfolio as of September 30, 2019.

(2) Net income for the three months ended September 30, 2019 and 2018, included $1.0 million and $47.7 million respectively, from sold hotels. Net Income for the nine months ended September 30, 2019 and 2018, included ($6.1) million and $70.6 million respectively, from sold hotels.

(3) Adjusted EBITDA for the three months ended September 30, 2019 and 2018, included $2.1 million and $26.0 million respectively, from sold hotels. Adjusted EBITDA for the nine months ended September 30, 2019 and 2018, included $39.0 million and $82.7 million respectively, from sold hotels.

Prior Quarterly Outlook Bridge

The following table reconciles the Company's results for the third quarter with the outlook issued as of August 7, 2019, which previously excluded Pro forma Consolidated Hotel EBITDA from the 18 non-core hotels sold during the third quarter.

 

 

Outlook as of August 7, 2019

 

Impact of Disposition(1)

 

Adjusted Outlook

 

Actual

Pro forma Consolidated Hotel EBITDA

$109.8M to $114.5M

 

($0.3M)

 

$109.5M to $114.2M

 

$113.6M

Note:  

(1) Represents loss of EBITDA from sale of Residence Inn Columbia

The Company's Pro forma Consolidated Hotel EBITDA outlook was impacted by approximately $2.0 million due to Hurricane Dorian and reduced by approximately $0.3 million from the sale of Residence Inn Columbia during the third quarter.

Dispositions

The Company closed on the previously announced sale of 18 non-core hotels on August 14, 2019. Separately, the Company also sold the 108-room Residence Inn Columbia in Columbia, MD on September 12, 2019 for approximately $12.7 million.

Share Repurchases

During the third quarter, the Company repurchased 2.8 million shares of its common shares for $47.2 million at an average price per share of $16.94. Year-to-date as of November 7, 2019, the Company repurchased approximately 4.0 million shares of its common shares for approximately $68.0 million at an average price per share of $17.08. As of November 7, 2019, the Company's share buyback program has a remaining capacity of approximately $192 million.

Balance Sheet

As of September 30, 2019, the Company had $845.9 million of unrestricted cash on its balance sheet, $600.0 million available on its revolving credit facility, and $2.2 billion of debt outstanding.

The Company’s ratio of net debt to Adjusted EBITDA for the trailing twelve-month period ended September 30, 2019, was 3.2x.

Dividends

The Company’s Board of Trustees declared a cash dividend of $0.33 per common share of beneficial interest in the third quarter. The dividend was paid on October 15, 2019, to shareholders of record as of September 30, 2019.

The Company's Board of Trustees declared a preferred dividend of $0.4875 on its Series A cumulative convertible preferred shares. The dividend was paid on October 31, 2019, to shareholders of record as of September 30, 2019.

Outlook

The Company's full-year outlook includes all hotels owned as of November 7, 2019. Potential future acquisitions, dispositions, financings, or share repurchases are not incorporated into the Company's outlook below and could result in a material change to the Company's outlook.

For the full year 2019, the Company is updating its outlook to incorporate actual third quarter operating results and the sale of Residence Inn Columbia.

 

 

Prior Outlook as of August 8, 2019

 

Impact of Dispositions

 

Adjusted Outlook

 

Outlook as of November 7, 2019

Pro forma RevPAR growth

0.0% to +2.0%

 

-

 

0.0% to +2.0%

 

0.0% to +1.0%

Pro forma Hotel EBITDA Margin

31.6% to 32.2%

 

-

 

31.6% to 32.2%

 

31.6% to 32.2%

Pro forma Consolidated Hotel EBITDA

$449.0M to $474.0M

 

($1.2M)

 

$447.8M to $472.8M

 

$448.0M to $460.0M

Corporate Cash General & Administrative

$35.0M to $36.0M

 

-

 

$35.0M to $36.0M

 

$35.0M to $36.0M

Adjusted EBITDA

$455.0M to $480.0M

 

($1.5M)

 

$453.5M to $478.5M

 

$453.5M to $460.5M

Adjusted FFO per Diluted Share and Unit

$1.98 to $2.10

 

($0.01)

 

$1.97 to $2.09

 

$1.98 to $2.04

 

Additionally, key assumptions underlying the Company's full year 2019 outlook include:

  • Net interest expense of $85 million to $87 million, which excludes the impact of unrealized gains or losses related to interest rate hedges
  • Capital expenditures related to renovations in the range of $90 million to $110 million and approximately 40 bps to 50 bps of renovation related RevPAR disruption
  • Cash income tax expense of $3 million to $4 million
  • Diluted weighted-average common shares and units of 172.2 million, assuming no additional share repurchases

Earnings Call

The Company will conduct its quarterly analyst and investor conference call on November 8, 2019, at 10:00 a.m. (Eastern Time). The conference call can be accessed by dialing (877) 407-3982 or (201) 493-6780 for international participants and requesting RLJ Lodging Trust’s third quarter earnings conference call. Additionally, a live webcast of the conference call will be available through the Company’s website at http://www.rljlodgingtrust.com. A replay of the conference call webcast will be archived and available online through the Investor Relations page of the Company’s website.

About Us

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio consists of 108 hotels with approximately 23,170 rooms located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.

Forward Looking Statements

The following information contains certain statements, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the use of the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “will continue,” “intend,” “should,” or similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs, and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and the Company’s actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: the current global economic uncertainty, increased direct competition, changes in government regulations or accounting rules, changes in local, national, and global real estate conditions, declines in the lodging industry, seasonality of the lodging industry, risks related to natural disasters, such as earthquakes and hurricanes, hostilities, including future terrorist attacks or fear of hostilities that affect travel, the Company’s ability to obtain lines of credit or permanent financing on satisfactory terms, changes in interest rates, access to capital through offerings of the Company’s common and preferred shares of beneficial interest, or debt, the Company’s ability to identify suitable acquisitions, the Company’s ability to close on identified acquisitions and integrate those businesses, and inaccuracies of the Company’s accounting estimates. Given these uncertainties, undue reliance should not be placed on such statements. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. The Company cautions investors not to place undue reliance on these forward-looking statements and urges investors to carefully review the disclosures the Company makes concerning risks and uncertainties in the sections entitled “Risk Factors,” “Forward-Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report, as well as risks, uncertainties, and other factors discussed in other documents filed by the Company with the Securities and Exchange Commission.

RLJ Lodging Trust Non-GAAP and Accounting Commentary

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

The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) EBITDAre, (5) Adjusted EBITDA, (6) Hotel EBITDA, and (7) Hotel EBITDA Margin. These Non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as a measure of its operating performance. FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, and Hotel EBITDA Margin as calculated by the Company, may not be comparable to other companies that do not define such terms exactly as the Company.

Funds From Operations (“FFO”)

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

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

EBITDA and EBITDAre

Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) is defined as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sales of assets; and (3) depreciation and amortization. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions.

In addition to EBITDA, the Company presents EBITDAre in accordance with NAREIT guidelines, which defines EBITDAre as net income or loss (calculated in accordance with GAAP) excluding interest expense, income tax expense, depreciation and amortization expense, gains or losses from sales of real estate, impairment, and adjustments for unconsolidated partnerships and joint ventures. The Company believes that the presentation of EBITDAre provides useful information to investors regarding the Company’s operating performance and can facilitate comparisons of operating performance between periods and between REITs.

Adjustments to FFO and EBITDAre

The Company adjusts FFO, EBITDA, and EBITDAre for certain items that the Company considers either outside the normal course of operations or extraordinary. The Company believes that Adjusted FFO, Adjusted EBITDA, and Adjusted EBITDAre provide useful supplemental information to investors regarding its ongoing operating performance that, when considered with net income or loss, FFO, EBITDA, and EBITDAre, are beneficial to an investor’s understanding of its operating performance. The Company adjusts FFO, EBITDA, and EBITDAre for the following items:

  • Transaction Costs: The Company excludes transaction costs expensed during the period
  • Non-Cash Expenses: The Company excludes the effect of certain non-cash items such as the amortization of share-based compensation, non-cash income taxes, and unrealized gains and loss related to interest rate hedges
  • Other Non-Operational Expenses: The Company excludes the effect of certain non-operational expenses representing income and expenses outside of the normal course of operations

The Company previously presented Adjusted EBITDA with adjustments for noncontrolling interests in consolidated joint ventures. The rationale for including 100% of Adjusted EBITDA for consolidated joint ventures with noncontrolling interests is that the full amount of any debt of these consolidated joint ventures is reported in our consolidated balance sheet and metrics using debt to EBITDA provide a better understanding of the Company’s leverage. This is also consistent with NAREIT’s definition of EBITDAre.

Hotel EBITDA and Hotel EBITDA Margin

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

Pro forma Consolidated Hotel EBITDA includes prior ownership information provided by the sellers of the hotels for periods prior to our acquisition of the hotels, which has not been audited and excludes results from sold hotels as applicable. Pro forma Hotel EBITDA and Pro forma Hotel EBITDA Margin exclude the results of any non-comparable hotels that were under renovation or not open for the entirety of the comparable periods. The following is a summary of pro forma hotel adjustments:

Pro forma adjustments: Acquired hotels

For the three and nine months ended September 30, 2019 and 2018, respectively, no hotels were acquired.

Pro forma adjustments: Sold hotels

For the three and nine months ended September 30, 2019 and 2018, pro forma adjustments included the following sold hotels:

  • Courtyard Austin Airport
  • Courtyard Austin Northwest Arboretum
  • Courtyard Boulder Longmont
  • Courtyard Boulder Louisville
  • Courtyard Denver West Golden
  • Courtyard Fort Lauderdale SW Miramar
  • Courtyard Louisville Northeast
  • Courtyard Salt Lake City Airport
  • Courtyard South Bend Mishawaka
  • DoubleTree by Hilton Burlington Vermont
  • DoubleTree Columbia
  • Embassy Suites Boston - Marlborough
  • Embassy Suites Myrtle Beach Oceanfront Resort
  • Embassy Suites Napa Valley
  • Fairfield Inn & Suites San Antonio Downtown Market
  • Hampton Inn Fort Walton Beach
  • Hampton Inn Houston Near The Galleria
  • Hampton Inn West Palm Beach Airport Central
  • Hampton Inn & Suites Clearwater St. Petersburg Ulmerton Road
  • Hampton Inn & Suites Denver Tech Center
  • Hilton Garden Inn Bloomington
  • Hilton Garden Inn Durham Raleigh Research Triangle Park
  • Hilton Garden Inn West Palm Beach Airport
  • Hilton Myrtle Beach Resort
  • Holiday Inn San Francisco - Fisherman's Wharf
  • Hyatt House Austin Arboretum
  • Hyatt House Dallas Lincoln Park
  • Hyatt House Dallas Uptown
  • Hyatt House Houston Galleria
  • Residence Inn Austin North Parmer Lane
  • Residence Inn Austin Northwest Arboretum
  • Residence Inn Boulder Louisville
  • Residence Inn Chicago Oak Brook
  • Residence Inn Columbia
  • Residence Inn Denver West Golden
  • Residence Inn Detroit Novi
  • Residence Inn Fort Lauderdale Plantation
  • Residence Inn Fort Lauderdale SW Miramar
  • Residence Inn Longmont Boulder
  • Residence Inn Louisville Northeast
  • Residence Inn Salt Lake City Airport
  • Residence Inn San Antonio Downtown Market Square
  • Residence Inn Silver Spring
  • Sheraton Philadelphia Society Hill Hotel
  • SpringHill Suites Austin North Parmer Lane
  • SpringHill Suites Boulder Longmont
  • SpringHill Suites Louisville Hurstbourne North
  • SpringHill Suites South Bend Mishawaka
  • The Vinoy Renaissance St. Petersburg Resort & Golf Club
 

RLJ Lodging Trust

Consolidated Balance Sheets

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

(unaudited)

 

 

September 30, 2019

 

December 31, 2018

Assets

 

 

 

Investment in hotel properties, net

$

4,677,019

 

 

$

5,378,651

 

Investment in unconsolidated joint ventures

 

16,234

 

 

 

22,279

 

Cash and cash equivalents

 

845,882

 

 

 

320,147

 

Restricted cash reserves

 

48,610

 

 

 

64,695

 

Hotel and other receivables, net of allowance of $271 and $598, respectively

 

54,058

 

 

 

52,115

 

Lease right-of-use assets

 

145,695

 

 

 

Deferred income tax asset, net

 

44,445

 

 

 

47,395

 

Intangible assets, net

 

 

 

52,448

 

Prepaid expense and other assets

 

43,702

 

 

 

67,367

 

Total assets

$

5,875,645

 

 

$

6,005,097

 

Liabilities and Equity

 

 

 

Debt, net

$

2,199,301

 

 

$

2,202,676

 

Accounts payable and other liabilities

 

193,008

 

 

 

203,833

 

Deferred income tax liability

 

2,766

 

 

 

2,766

 

Advance deposits and deferred revenue

 

24,655

 

 

 

25,411

 

Lease liabilities

 

121,783

 

 

 

Accrued interest

 

13,706

 

 

 

7,913

 

Distributions payable

 

64,215

 

 

 

65,557

 

Total liabilities

 

2,619,434

 

 

 

2,508,156

 

Equity

 

 

 

Shareholders’ equity:

 

 

 

Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized

 

 

 

Series A Cumulative Convertible Preferred Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475 shares issued and outstanding, liquidation value of $328,266, at September 30, 2019 and December 31, 2018

 

366,936

 

 

 

366,936

 

Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 170,632,364 and 174,019,616 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively

 

1,706

 

 

 

1,740

 

Additional paid-in capital

 

3,137,736

 

 

 

3,195,381

 

Accumulated other comprehensive (loss) income

 

(27,515

)

 

 

16,195

 

Distributions in excess of net earnings

 

(246,914

)

 

 

(150,476

)

Total shareholders’ equity

 

3,231,949

 

 

 

3,429,776

 

Noncontrolling interest:

 

 

 

Noncontrolling interest in consolidated joint ventures

 

13,994

 

 

 

11,908

 

Noncontrolling interest in the Operating Partnership

 

10,268

 

 

 

10,827

 

Total noncontrolling interest

 

24,262

 

 

 

22,735

 

Preferred equity in a consolidated joint venture, liquidation value of $45,544 at December 31, 2018

 

 

 

44,430

 

Total equity

 

3,256,211

 

 

 

3,496,941

 

Total liabilities and equity

$

5,875,645

 

 

$

6,005,097

 

 

Note:

The corresponding notes to the consolidated financial statements can be found in the Company’s Quarterly Report on Form 10-Q.

 

RLJ Lodging Trust

Consolidated Statements of Operations

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

(unaudited)

 

 

For the three months ended September 30,

 

For the nine months ended September 30,

 

2019

 

2018

 

2019

 

2018

Revenues

 

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

 

Room revenue

$

314,195

 

 

$

377,237

 

 

$

1,030,722

 

 

$

1,138,115

 

Food and beverage revenue

 

39,447

 

 

 

47,211

 

 

 

133,151

 

 

 

157,850

 

Other revenue

 

17,482

 

 

 

22,594

 

 

 

55,245

 

 

 

65,362

 

Total revenues

 

371,124

 

 

 

447,042

 

 

 

1,219,118

 

 

 

1,361,327

 

Expenses

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Room expense

 

80,650

 

 

 

95,161

 

 

 

253,736

 

 

 

279,589

 

Food and beverage expense

 

31,425

 

 

 

37,780

 

 

 

101,544

 

 

 

121,450

 

Management and franchise fee expense

 

26,432

 

 

 

34,838

 

 

 

96,376

 

 

 

107,766

 

Other operating expense

 

90,048

 

 

 

105,646

 

 

 

288,761

 

 

 

320,325

 

Total property operating expenses

 

228,555

 

 

 

273,425

 

 

 

740,417

 

 

 

829,130

 

Depreciation and amortization

 

49,295

 

 

 

60,373

 

 

 

162,654

 

 

 

183,429

 

Property tax, insurance and other

 

28,798

 

 

 

34,382

 

 

 

90,595

 

 

 

104,418

 

General and administrative

 

11,262

 

 

 

11,622

 

 

 

34,187

 

 

 

38,059

 

Transaction costs

 

(211

)

 

 

261

 

 

 

773

 

 

 

2,181

 

Total operating expenses

 

317,699

 

 

 

380,063

 

 

 

1,028,626

 

 

 

1,157,217

 

Other income

 

315

 

 

 

856

 

 

 

939

 

 

 

2,514

 

Interest income

 

2,691

 

 

 

1,149

 

 

 

4,935

 

 

 

3,339

 

Interest expense

 

(23,333

)

 

 

(24,629

)

 

 

(68,632

)

 

 

(78,772

)

(Loss) gain on sale of hotel properties, net

 

(1,037

)

 

 

35,895

 

 

 

(25,872

)

 

 

32,957

 

(Loss) gain on extinguishment of indebtedness, net

 

 

 

(1,656

)

 

 

 

 

6,010

 

Income before equity in (loss) income from unconsolidated joint ventures

 

32,061

 

 

 

78,594

 

 

 

101,862

 

 

 

170,158

 

Equity in (loss) income from unconsolidated joint ventures

 

(135

)

 

 

219

 

 

 

(2,919

)

 

 

637

 

Income before income tax expense

 

31,926

 

 

 

78,813

 

 

 

98,943

 

 

 

170,795

 

Income tax benefit (expense)

 

529

 

 

 

(4,156

)

 

 

(4,475

)

 

 

(7,852

)

Net income

 

32,455

 

 

 

74,657

 

 

 

94,468

 

 

 

162,943

 

Net loss (income) attributable to noncontrolling interests:

 

 

 

 

 

 

 

Noncontrolling interest in consolidated joint ventures

 

104

 

 

 

(9

)

 

 

360

 

 

 

170

 

Noncontrolling interest in the Operating Partnership

 

(96

)

 

 

(299

)

 

 

(329

)

 

 

(626

)

Preferred distributions - consolidated joint venture

 

 

 

(374

)

 

 

(186

)

 

 

(1,109

)

Redemption of preferred equity - consolidated joint venture

 

 

 

 

 

(1,153

)

 

 

Net income attributable to RLJ

 

32,463

 

 

 

73,975

 

 

 

93,160

 

 

 

161,378

 

Preferred dividends

 

(6,279

)

 

 

(6,279

)

 

 

(18,836

)

 

 

(18,836

)

Net income attributable to common shareholders

$

26,184

 

 

$

67,696

 

 

$

74,324

 

 

$

142,542

 

Basic per common share data:

 

 

 

 

 

 

 

Net income per share attributable to common shareholders

$

0.15

 

 

$

0.39

 

 

$

0.43

 

 

$

0.81

 

Weighted-average number of common shares

 

170,495,699

 

 

 

174,326,198

 

 

 

171,976,429

 

 

 

174,253,393

 

Diluted per common share data:

 

 

 

 

 

 

 

Net income per share attributable to common shareholders

$

0.15

 

 

$

0.39

 

 

$

0.43

 

 

$

0.81

 

Weighted-average number of common shares

 

170,600,787

 

 

 

174,479,341

 

 

 

172,066,473

 

 

 

174,365,101

 

 

Note:

The Statements of Comprehensive Income and corresponding notes to the consolidated financial statements can be found in the Company’s Quarterly Report on Form 10-Q.

 

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands, except per share data)

(unaudited)

 

Funds from Operations (FFO) Attributable to Common Shareholders and Unitholders

 

 

For the three months ended September 30,

 

For the nine months ended September 30,

 

2019

 

2018

 

2019

 

2018

Net income

$

32,455

 

 

$

74,657

 

 

$

94,468

 

 

$

162,943

 

Preferred dividends

 

(6,279

)

 

 

(6,279

)

 

 

(18,836

)

 

 

(18,836

)

Preferred distributions - consolidated joint venture

 

 

(374

)

 

 

(186

)

 

 

(1,109

)

Redemption of preferred equity - consolidated joint venture

 

 

 

 

 

(1,153

)

 

 

Depreciation and amortization

 

49,295

 

 

 

60,373

 

 

 

162,654

 

 

 

183,429

 

Loss (gain) on sale of hotel properties, net

 

1,037

 

 

 

(35,895

)

 

 

25,872

 

 

 

(32,957

)

Noncontrolling interest in consolidated joint ventures

 

104

 

 

 

(9

)

 

 

360

 

 

 

170

 

Adjustments related to consolidated joint ventures (1)

 

(75

)

 

 

(78

)

 

 

(224

)

 

 

(233

)

Adjustments related to unconsolidated joint ventures (2)

 

504

 

 

 

661

 

 

 

4,733

 

 

 

1,998

 

FFO

 

77,041

 

 

 

93,056

 

 

 

267,688

 

 

 

295,405

 

Transaction costs

 

(211

)

 

 

261

 

 

 

773

 

 

 

2,181

 

Loss (gain) on extinguishment of indebtedness, net

 

 

1,656

 

 

 

 

(6,010

)

Amortization of share-based compensation

 

2,948

 

 

 

4,036

 

 

 

8,708

 

 

 

9,722

 

Non-cash income tax (benefit) expense

 

(1,102

)

 

 

3,217

 

 

 

2,950

 

 

 

6,171

 

Other expenses (income) (3)

 

508

 

 

 

(839

)

 

 

896

 

 

 

3,330

 

Adjusted FFO

$

79,184

 

 

$

101,387

 

 

$

281,015

 

 

$

310,799

 

 

 

 

 

 

 

 

 

Adjusted FFO per common share and unit-basic

$

0.46

 

 

$

0.58

 

 

$

1.63

 

 

$

1.78

 

Adjusted FFO per common share and unit-diluted

$

0.46

 

 

$

0.58

 

 

$

1.63

 

 

$

1.77

 

 

 

 

 

 

 

 

 

Basic weighted-average common shares and units outstanding (4)

 

171,268

 

 

 

175,100

 

 

 

172,749

 

 

 

175,027

 

Diluted weighted-average common shares and units outstanding (4)

 

171,374

 

 

 

175,253

 

 

 

172,839

 

 

 

175,139

 

 

Note:

(1)

Includes depreciation and amortization expense allocated to the noncontrolling interest in the consolidated joint ventures.

(2)

Includes our ownership interest in the depreciation and amortization expense and loss on sale of the unconsolidated joint ventures.

(3)

Represents income and expenses outside of the normal course of operations, including debt modification costs, hurricane-related costs that were not reimbursed by insurance, executive transition costs, activist shareholder costs, and unrealized gains and losses on certain interest rate hedges.

(4)

Includes 0.8 million weighted-average operating partnership units for the three and nine month periods ended September 30, 2019 and 2018, respectively.

 

 

 

 

 

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands)

(unaudited)

 

 

 

 

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

 

 

 

 

 

For the three months ended September 30,

 

For the nine months ended September 30,

 

2019

 

2018

 

2019

 

2018

Net income

$

32,455

 

 

$

74,657

 

 

$

94,468

 

 

$

162,943

 

Depreciation and amortization

49,295

 

 

60,373

 

 

162,654

 

 

183,429

 

Interest expense, net of interest income

20,642

 

 

23,479

 

 

63,697

 

 

75,433

 

Income tax (benefit) expense

(529

)

 

4,156

 

 

4,475

 

 

7,852

 

Adjustments related to unconsolidated joint ventures (1)

628

 

 

788

 

 

2,182

 

 

2,379

 

EBITDA

102,491

 

 

163,453

 

 

327,476

 

 

432,036

 

Loss (gain) on sale of hotel properties, net

1,037

 

 

(35,895

)

 

25,872

 

 

(32,957

)

Loss on sale of unconsolidated joint ventures (2)

 

 

 

 

2,923

 

 

 

EBITDAre

103,528

 

 

127,558

 

 

356,271

 

 

399,079

 

Transaction costs

(211

)

 

261

 

 

773

 

 

2,181

 

Loss (gain) on extinguishment of indebtedness, net

 

 

1,656

 

 

 

 

(6,010

)

Amortization of share-based compensation

2,948

 

 

4,036

 

 

8,708

 

 

9,722

 

Other expenses (income) (3)

40

 

 

(839

)

 

484

 

 

3,330

 

Adjusted EBITDA

106,305

 

 

132,672

 

 

366,236

 

 

408,302

 

General and administrative (4)

8,314

 

 

7,763

 

 

25,470

 

 

25,209

 

Other corporate adjustments (5)

1,125

 

 

584

 

 

2,099

 

 

1,124

 

Consolidated Hotel EBITDA

115,744

 

 

141,019

 

 

393,805

 

 

434,635

 

Pro forma adjustments - income from sold hotels

(2,124

)

 

(25,962

)

 

(39,019

)

 

(82,670

)

Pro forma Consolidated Hotel EBITDA

113,620

 

 

115,057

 

 

354,786

 

 

351,965

 

Pro forma adjustments - income from non-comparable hotels

 

 

 

 

 

 

 

Pro forma Hotel EBITDA

$

113,620

 

 

$

115,057

 

 

$

354,786

 

 

$

351,965

 

 

 

 

 

Note:

(1)

Includes our ownership interest in the interest, depreciation, and amortization expense of the unconsolidated joint ventures.

(2)

Includes our ownership interest in the loss on sale of the unconsolidated joint ventures associated with two resort hotel properties owned by the Company in Myrtle Beach, SC.

(3)

Represents income and expenses outside of the normal course of operations, including debt modification costs, hurricane-related costs that were not reimbursed by insurance, executive transition costs, and activist shareholder costs.

(4)

Excludes amortization of share-based compensation and activist shareholder costs reflected in Adjusted EBITDA.

(5)

Other corporate adjustments include property-level adjustments and certain revenues and expenses at corporate entities. These items include interest income, amortization of deferred management fees, key money amortization, ground rent amortization, legal fees, revenues and expenses associated with non-hotel properties, income (loss) from unconsolidated entities, internal lease rent expense, and other items.

 
 

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands)

(unaudited)

 

Pro forma Hotel EBITDA Margin

 

 

For the three months ended September 30,

 

For the nine months ended September 30,

 

2019

 

2018

 

2019

 

2018

Total revenue

$

371,124

 

 

$

447,042

 

 

$

1,219,118

 

 

$

1,361,327

 

Pro forma adjustments - revenue from sold hotels

 

(9,732

)

 

 

(86,206

)

 

 

(120,148

)

 

 

(279,158

)

Other corporate adjustments / non-hotel revenue

 

45

 

 

 

(1,669

)

 

 

(1,323

)

 

 

(3,295

)

Pro forma Hotel Revenue

$

361,437

 

 

$

359,167

 

 

$

1,097,647

 

 

$

1,078,874

 

 

 

 

 

 

 

 

 

Pro forma Hotel EBITDA

$

113,620

 

 

$

115,057

 

 

$

354,786

 

 

$

351,965

 

 

 

 

 

 

 

 

 

Pro forma Hotel EBITDA Margin

 

31.4

%

 

 

32.0

%

 

 

32.3

%

 

 

32.6

%

 

RLJ Lodging Trust

Consolidated Debt Summary

(Amounts in thousands)

(unaudited)

 

Loan

Base Term (Years)

Maturity (incl. extensions)

Floating / Fixed

Interest Rate (1)

 

Balance as of September 30, 2019 (2)

Secured Debt

 

 

 

 

 

 

Mortgage loan - 1 hotel

10

 

Jun 2022

 

Fixed

5.25

%

 

$

30,926

 

Mortgage loan - 2 hotels

10

 

Oct 2022

 

Fixed

4.95

%

 

 

56,144

 

Mortgage loan - 1 hotel

10

 

Oct 2022

 

Fixed

4.95

%

 

 

32,271

 

Mortgage loan - 1 hotel

10

 

Oct 2022

 

Fixed

4.94

%

 

 

28,508

 

Mortgage loan - 7 hotels

3

 

Apr 2024

 

Floating (3)

3.33

%

 

 

200,000

 

Mortgage loan - 3 hotels

5

 

Apr 2026

 

Floating (3)

2.88

%

 

 

96,000

 

Mortgage loan - 4 hotels

5

 

Apr 2026

 

Floating (3)

3.38

%

 

 

85,000

 

Weighted-Average / Secured Total

 

 

 

 

 

3.73

%

 

$

528,849

 

 

 

 

 

 

 

 

 

 

Unsecured Debt

 

 

 

 

 

 

 

 

Revolver (4)

4

 

Apr 2021

 

Floating

3.52

%

 

$

 

$400 Million Term Loan Maturing 2021

5

 

Apr 2021

 

Floating (3)(5)

2.97

%

 

 

400,000

 

$150 Million Term Loan Maturing 2022

7

 

Jan 2022

 

Floating (3)

3.08

%

 

 

150,000

 

$400 Million Term Loan Maturing 2023

5

 

Jan 2023

 

Floating (3)

3.78

%

 

 

400,000

 

$225 Million Term Loan Maturing 2023

5

 

Jan 2023

 

Floating (3)

3.78

%

 

 

225,000

 

Senior Unsecured Notes

10

 

Jun 2025

 

Fixed

6.00

%

 

 

475,000

 

Weighted-Average / Unsecured Total

 

 

 

4.16

%

 

$

1,650,000

 

 

 

 

 

 

 

 

Weighted-Average / Gross Debt

 

 

 

4.05

%

 

$

2,178,849

 

 

Note:

(1)

Interest rates as of September 30, 2019.

(2)

Excludes the impact of fair value adjustments and deferred financing costs.

(3)

The floating interest rate is hedged with an interest rate swap.

(4)

As of September 30, 2019, there was $600.0 million of borrowing capacity on the revolver, which is charged an unused commitment fee of 0.30% annually.

(5)

Reflects an interest rate swap of $399.0 million on the $400.0 million term loan.

 

RLJ Lodging Trust

Pro forma Operating Statistics - Top 60 Assets

(unaudited)

 

 

Property

City/State

# of Rooms

Pro forma Consolidated Hotel EBITDA

Marriott Louisville Downtown

Louisville, KY

620

$15,166

The Knickerbocker New York

New York, NY

330

13,405

Wyndham San Diego Bayside

San Diego, CA

600

11,279

San Francisco Marriott Union Square

San Francisco, CA

401

10,911

Wyndham Boston Beacon Hill

Boston, MA

304

9,740

Courtyard Austin Downtown Convention Center

Austin, TX

270

9,395

The Mills House Wyndham Grand Hotel

Charleston, SC

216

9,361

Embassy Suites San Francisco Airport - Waterfront

Burlingame, CA

340

8,839

Embassy Suites San Francisco Airport - South San Francisco

South San Francisco, CA

312

8,257

Embassy Suites Los Angeles - International Airport South

El Segundo, CA

349

8,153

Wyndham New Orleans - French Quarter

New Orleans, LA

374

8,056

DoubleTree Grand Key Resort

Key West, FL

216

7,782

Embassy Suites Fort Lauderdale 17th Street

Fort Lauderdale, FL

361

7,644

Embassy Suites Mandalay Beach - Hotel & Resort

Oxnard, CA

250

7,439

Courtyard San Francisco

San Francisco, CA

166

7,253

Courtyard Portland City Center

Portland, OR

256

7,205

Residence Inn Palo Alto Los Altos

Los Altos, CA

156

6,918

Wyndham Philadelphia Historic District

Philadelphia, PA

364

6,909

Courtyard Waikiki Beach

Honolulu, HI

403

6,621

Hilton Garden Inn San Francisco Oakland Bay Brg

Emeryville, CA

278

6,564

Renaissance Pittsburgh Hotel

Pittsburgh, PA

300

6,517

Hyatt House Emeryville San Francisco Bay Area

Emeryville, CA

234

6,373

Embassy Suites Deerfield Beach - Resort & Spa

Deerfield Beach, FL

244

6,211

Embassy Suites Tampa Downtown Convention Center

Tampa, FL

360

6,185

Fairfield Inn & Suites Washington DC Downtown

Washington, DC

198

6,035

DoubleTree Metropolitan Hotel New York City

New York, NY

764

5,931

Wyndham Santa Monica At The Pier

Santa Monica, CA

132

5,914

Hyatt House Santa Clara

Santa Clara, CA

150

5,780

Hyatt House San Jose Silicon Valley

San Jose, CA

164

5,647

DoubleTree Suites by Hilton Austin

Austin, TX

188

5,602

Embassy Suites Atlanta - Buckhead

Atlanta, GA

316

5,494

Courtyard Charleston Historic District

Charleston, SC

176

5,430

Wyndham Houston - Medical Center Hotel & Suites

Houston, TX

287

5,365

Embassy Suites Milpitas Silicon Valley

Milpitas, CA

266

5,259

Courtyard Chicago Downtown Magnificent Mile

Chicago, IL

306

5,070

Residence Inn Bethesda Downtown

Bethesda, MD

188

4,987

Marriott Denver South @ Park Meadows

Lone Tree, CO

279

4,877

Embassy Suites Boston Waltham

Waltham, MA

275

4,829

Hyatt House San Diego Sorrento Mesa

San Diego, CA

193

4,695

Residence Inn Austin Downtown Convention Center

Austin, TX

179

4,592

Homewood Suites Washington DC Downtown

Washington, DC

175

4,544

Embassy Suites Irvine Orange County

Irvine, CA

293

4,493

Hyatt Centric Midtown Atlanta

Atlanta, GA

194

4,444

Renaissance Fort Lauderdale Plantation Hotel

Plantation, FL

250

4,297

Hilton Cabana Miami Beach

Miami Beach, FL

231

4,186

Embassy Suites Orlando - International Drive South/Convention Center

Orlando, FL

244

4,154

Embassy Suites Dallas - Love Field

Dallas, TX

248

4,148

Hilton Garden Inn New Orleans Convention Center

New Orleans, LA

286

4,123

Hilton Garden Inn Los Angeles Hollywood

Los Angeles, CA

160

4,111

Hyatt Place Washington DC Downtown K Street

Washington, DC

164

4,026

Embassy Suites Los Angeles Downey

Downey, CA

220

3,885

Embassy Suites Miami - International Airport

Miami, FL

318

3,877

Hyatt House San Ramon

San Ramon, CA

142

3,848

Renaissance Boulder Flatiron Hotel

Broomfield, CO

232

3,787

Embassy Suites Phoenix - Biltmore

Phoenix, AZ

232

3,722

Residence Inn National Harbor Washington DC

Oxon Hill, MD

162

3,717

Marriott Denver Airport @ Gateway Park

Aurora, CO

238

3,707

Embassy Suites Minneapolis - Airport

Bloomington, MN

310

3,540

Wyndham Pittsburgh University Center

Pittsburgh, PA

251

3,442

Hyatt Place Fremont Silicon Valley

Fremont, CA

151

3,350

Top 60 Assets

 

16,266

367,091

Other (48 Assets)

 

6,913

95,578

Total Portfolio

 

23,179

$462,669

 

Note: For the trailing twelve months ended September 30, 2019. Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an unconsolidated hotel. Amounts in thousands, except rooms. Unaudited information presented only for comparison purposes.

 

RLJ Lodging Trust

Pro forma Operating Statistics

(unaudited)

For the three months ended September 30, 2019 and 2018

 

Top Markets

 

# of Hotels

 

Occupancy

 

ADR

 

RevPAR

2019

2018

Var

2019

2018

Var

2019

2018

Var

Northern California

 

12

 

87.8

%

88.8

%

(1.1

)%

 

$

236.86

$

241.95

(2.1

)%

 

$

207.99

$

214.77

(3.2

)%

Southern California

 

9

 

89.7

%

88.8

%

1.1

%

 

 

192.41

 

192.73

(0.2

)%

 

 

172.66

 

171.11

0.9

%

South Florida

 

8

 

74.9

%

81.0

%

(7.5

)%

 

 

138.18

 

137.63

0.4

%

 

 

103.52

 

111.47

(7.1

)%

Austin

 

8

 

72.2

%

68.1

%

6.0

%

 

 

164.40

 

156.96

4.7

%

 

 

118.72

 

106.88

11.1

%

New York City

 

5

 

93.1

%

92.7

%

0.5

%

 

 

230.84

 

237.67

(2.9

)%

 

 

214.90

 

220.26

(2.4

)%

Washington, DC

 

5

 

83.2

%

82.8

%

0.5

%

 

 

190.95

 

185.95

2.7

%

 

 

158.80

 

153.90

3.2

%

Chicago

 

13

 

80.9

%

78.7

%

2.8

%

 

 

146.42

 

154.50

(5.2

)%

 

 

118.41

 

121.60

(2.6

)%

Houston

 

9

 

68.0

%

67.6

%

0.7

%

 

 

132.80

 

137.39

(3.3

)%

 

 

90.37

 

92.82

(2.6

)%

Louisville

 

2

 

74.5

%

54.8

%

36.1

%

 

 

159.75

 

151.73

5.3

%

 

 

119.09

 

83.11

43.3

%

Denver

 

5

 

84.0

%

82.7

%

1.6

%

 

 

153.60

 

151.14

1.6

%

 

 

129.08

 

125.04

3.2

%

Other

 

32

 

77.9

%

78.7

%

(1.0

)%

 

 

161.06

 

161.23

(0.1

)%

 

 

125.42

 

126.82

(1.1

)%

Total

 

108

 

80.8

%

80.4

%

0.5

%

 

$

176.93

$

178.29

(0.8

)%

 

$

143.05

$

143.42

(0.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Level

 

# of Hotels

 

Occupancy

 

ADR

 

RevPAR

2019

2018

Var

2019

2018

Var

2019

2018

Var

Focused-Service

 

62

 

80.9

%

79.5

%

1.7

%

 

$

171.89

$

173.99

(1.2

)%

 

$

139.03

$

138.40

0.5

%

Compact Full-Service

 

45

 

81.2

%

82.6

%

(1.7

)%

 

 

181.34

 

182.06

(0.4

)%

 

 

147.34

 

150.46

(2.1

)%

Full-Service

 

1

 

72.0

%

49.7

%

45.0

%

 

 

166.10

 

160.23

3.7

%

 

 

119.64

 

79.59

50.3

%

Total

 

108

 

80.8

%

80.4

%

0.5

%

 

$

176.93

$

178.29

(0.8

)%

 

$

143.05

$

143.42

(0.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chain Scale

 

# of Hotels

 

Occupancy

 

ADR

 

RevPAR

2019

2018

Var

2019

2018

Var

2019

2018

Var

Upper Upscale

 

35

 

78.2

%

78.6

%

(0.5

)%

 

$

173.94

$

174.39

(0.3

)%

 

$

136.01

$

136.99

(0.7

)%

Upscale

 

62

 

82.7

%

81.7

%

1.2

%

 

 

177.28

 

179.34

(1.1

)%

 

 

146.58

 

146.59

(0.0

) %

Upper Midscale

 

9

 

80.0

%

80.2

%

(0.2

)%

 

 

152.89

 

152.27

0.4

%

 

 

122.33

 

122.10

0.2

%

Other

 

2

 

88.2

%

85.1

%

3.6

%

 

 

277.50

 

286.75

(3.2

)%

 

 

244.76

 

244.02

0.3

%

Total

 

108

 

80.8

%

80.4

%

0.5

%

 

$

176.93

$

178.29

(0.8

)%

 

$

143.05

$

143.42

(0.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flags

 

# of Hotels

 

Occupancy

 

ADR

 

RevPAR

2019

2018

Var

2019

2018

Var

2019

2018

Var

Embassy Suites

 

21

 

78.9

%

81.6

%

(3.3

)%

 

$

167.25

$

168.52

(0.8

)%

 

$

131.94

$

137.49

(4.0

)%

Courtyard

 

15

 

81.1

%

78.6

%

3.2

%

 

 

182.42

 

184.63

(1.2

)%

 

 

147.97

 

145.17

1.9

%

Residence Inn

 

15

 

78.2

%

77.6

%

0.8

%

 

 

159.81

 

161.37

(1.0

)%

 

 

124.95

 

125.15

(0.2

)%

Wyndham

 

8

 

83.2

%

83.7

%

(0.7

)%

 

 

175.65

 

173.45

1.3

%

 

 

146.07

 

145.26

0.6

%

Hyatt House

 

7

 

87.6

%

89.2

%

(1.8

)%

 

 

205.99

 

206.09

(0.1

)%

 

 

180.43

 

183.83

(1.9

)%

Marriott

 

6

 

79.1

%

70.1

%

12.8

%

 

 

193.20

 

194.67

(0.8

)%

 

 

152.82

 

136.49

12.0

%

Fairfield Inn & Suites

 

6

 

82.5

%

82.2

%

0.4

%

 

 

149.39

 

145.39

2.8

%

 

 

123.26

 

119.44

3.2

%

Hilton Garden Inn

 

5

 

80.2

%

76.6

%

4.6

%

 

 

168.15

 

175.53

(4.2

)%

 

 

134.80

 

134.49

0.2

%

DoubleTree

 

4

 

90.0

%

89.3

%

0.8

%

 

 

191.85

 

199.72

(3.9

)%

 

 

172.74

 

178.38

(3.2

)%

SpringHill Suites

 

4

 

78.8

%

73.4

%

7.4

%

 

 

134.39

 

130.91

2.7

%

 

 

105.93

 

96.08

10.3

%

Hyatt Place

 

3

 

83.6

%

85.1

%

(1.8

)%

 

 

182.35

 

188.85

(3.4

)%

 

 

152.41

 

160.77

(5.2

)%

Renaissance

 

3

 

78.7

%

81.4

%

(3.3

)%

 

 

169.00

 

167.04

1.2

%

 

 

133.04

 

135.95

(2.1

)%

Hampton Inn

 

2

 

79.5

%

80.0

%

(0.7

)%

 

 

158.34

 

163.75

(3.3

)%

 

 

125.80

 

131.05

(4.0

)%

Homewood Suites

 

2

 

84.1

%

84.9

%

(1.0

)%

 

 

179.68

 

174.95

2.7

%

 

 

151.08

 

148.58

1.7

%

Hyatt

 

2

 

77.7

%

79.2

%

(1.8

)%

 

 

183.18

 

189.81

(3.5

)%

 

 

142.39

 

150.31

(5.3

)%

Hilton

 

1

 

59.3

%

75.8

%

(21.7

)%

 

 

164.55

 

161.27

2.0

%

 

 

97.62

 

122.23

(20.1

)%

Other

 

4

 

78.7

%

76.6

%

2.7

%

 

 

242.24

 

249.91

(3.1

)%

 

 

190.63

 

191.40

(0.4

)%

Total

 

108

 

80.8

%

80.4

%

0.5

%

 

$

176.93

$

178.29

(0.8

)%

 

$

143.05

$

143.42

(0.3

)%

 

Note: Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an unconsolidated hotel. Unaudited information presented only for comparison purposes.

 

RLJ Lodging Trust

Pro forma Operating Statistics

(unaudited)

For the nine months ended September 30, 2019 and 2018

 

Top Markets

# of Hotels

Occupancy

ADR

RevPAR

2019

2018

Var

2019

2018

Var

2019

2018

Var

Northern California

12

85.9

%

84.3

%

1.8

%

$

241.02

$

232.05

3.9

%

$

206.93

$

195.66

5.8

%

Southern California

9

85.0

%

86.4

%

(1.7

)%

 

182.94

 

182.70

0.1

%

 

155.51

 

157.92

(1.5

)%

South Florida

8

82.7

%

86.4

%

(4.3

)%

 

181.36

 

181.44

(0.0

)%

 

150.00

 

156.77

(4.3

)%

Austin

8

77.9

%

74.7

%

4.3

%

 

182.39

 

179.56

1.6

%

 

142.13

 

134.15

5.9

%

New York City

5

89.2

%

89.4

%

(0.2

)%

 

221.13

 

222.60

(0.7

)%

 

197.14

 

198.90

(0.9

)%

Washington, DC

5

81.0

%

82.1

%

(1.2

)%

 

209.27

 

207.87

0.7

%

 

169.60

 

170.57

(0.6

)%

Chicago

13

74.6

%

71.9

%

3.8

%

 

139.95

 

145.39

(3.7

)%

 

104.35

 

104.48

(0.1

)%

Houston

9

70.7

%

71.0

%

(0.4

)%

 

141.84

 

146.30

(3.0

)%

 

100.29

 

103.86

(3.4

)%

Louisville

2

72.6

%

58.3

%

24.5

%

 

178.02

 

173.87

2.4

%

 

129.23

 

101.34

27.5

%

Denver

5

75.5

%

76.7

%

(1.7

)%

 

146.92

 

145.60

0.9

%

 

110.86

 

111.71

(0.8

)%

Other

32

78.2

%

78.6

%

(0.5

)%

 

168.60

 

167.07

0.9

%

 

131.81

 

131.25

0.4

%

Total

108

80.0

%

79.7

%

0.4

%

$

182.94

$

181.68

0.7

%

$

146.39

$

144.78

1.1

%

 

 

 

 

 

 

 

 

 

 

 

Service Level

# of Hotels

Occupancy

ADR

RevPAR

2019

2018

Var

2019

2018

Var

2019

2018

Var

Focused-Service

62

79.1

%

78.7

%

0.5

%

$

174.64

$

174.31

0.2

%

$

138.09

$

137.20

0.7

%

Compact Full-Service

45

81.2

%

81.7

%

(0.6

)%

 

189.06

 

187.12

1.0

%

 

153.59

 

152.89

0.5

%

Full-Service

1

70.4

%

54.0

%

30.5

%

 

187.69

 

185.47

1.2

%

 

132.21

 

100.15

32.0

%

Total

108

80.0

%

79.7

%

0.4

%

$

182.94

$

181.68

0.7

%

$

146.39

$

144.78

1.1

%

 

 

 

 

 

 

 

 

 

 

 

Chain Scale

# of Hotels

Occupancy

ADR

RevPAR

2019

2018

Var

2019

2018

Var

2019

2018

Var

Upper Upscale

35

78.9

%

78.7

%

0.3

%

$

186.43

$

183.64

1.5

%

$

147.15

$

144.48

1.8

%

Upscale

62

81.0

%

80.8

%

0.2

%

 

178.92

 

178.73

0.1

%

 

144.90

 

144.42

0.3

%

Upper Midscale

9

78.3

%

76.2

%

2.8

%

 

159.24

 

160.14

(0.6

)%

 

124.65

 

121.98

2.2

%

Other

2

81.0

%

79.1

%

2.3

%

 

278.36

 

274.83

1.3

%

 

225.41

 

217.51

3.6

%

Total

108

80.0

%

79.7

%

0.4

%

$

182.94

$

181.68

0.7

%

$

146.39

$

144.78

1.1

%

 

 

 

 

 

 

 

 

 

 

 

Flags

# of Hotels

Occupancy

ADR

RevPAR

2019

2018

Var

2019

2018

Var

2019

2018

Var

Embassy Suites

21

80.6

%

81.7

%

(1.4

)%

$

179.94

$

178.17

1.0

%

$

145.00

$

145.60

(0.4

)%

Courtyard

15

80.3

%

79.2

%

1.4

%

 

180.81

 

180.51

0.2

%

 

145.19

 

143.00

1.5

%

Residence Inn

15

77.2

%

77.7

%

(0.6

)%

 

166.80

 

167.42

(0.4

)%

 

128.80

 

130.02

(0.9

)%

Wyndham

8

81.0

%

80.5

%

0.6

%

 

173.82

 

173.80

0.0

%

 

140.81

 

139.93

0.6

%

Hyatt House

7

85.4

%

87.2

%

(2.1

)%

 

205.96

 

200.60

2.7

%

 

175.89

 

174.92

0.6

%

Marriott

6

75.9

%

69.4

%

9.3

%

 

204.48

 

197.97

3.3

%

 

155.21

 

137.48

12.9

%

Fairfield Inn & Suites

6

81.3

%

79.1

%

2.7

%

 

163.39

 

162.85

0.3

%

 

132.77

 

128.86

3.0

%

Hilton Garden Inn

5

77.5

%

77.2

%

0.4

%

 

170.51

 

171.49

(0.6

)%

 

132.23

 

132.41

(0.1

)%

DoubleTree

4

90.9

%

90.2

%

0.8

%

 

200.41

 

203.64

(1.6

)%

 

182.20

 

183.64

(0.8

)%

SpringHill Suites

4

74.4

%

72.0

%

3.3

%

 

137.75

 

135.25

1.9

%

 

102.42

 

97.35

5.2

%

Hyatt Place

3

77.9

%

81.8

%

(4.8

)%

 

188.55

 

187.89

0.4

%

 

146.83

 

153.64

(4.4

)%

Renaissance

3

75.8

%

78.7

%

(3.7

)%

 

170.88

 

169.42

0.9

%

 

129.46

 

133.28

(2.9

)%

Hampton Inn

2

77.1

%

75.7

%

1.9

%

 

150.78

 

153.75

(1.9

)%

 

116.29

 

116.34

0.0

%

Homewood Suites

2

80.9

%

79.0

%

2.5

%

 

182.71

 

181.53

0.7

%

 

147.85

 

143.36

3.1

%

Hyatt

2

79.2

%

80.5

%

(1.6

)%

 

205.63

 

195.70

5.1

%

 

162.95

 

157.58

3.4

%

Hilton

1

74.1

%

83.2

%

(10.9

)%

 

199.93

 

205.10

(2.5

)%

 

148.17

 

170.55

(13.1

)%

Other

4

75.5

%

73.4

%

2.8

%

 

241.73

 

241.42

0.1

%

 

182.40

 

177.21

2.9

%

Total

108

80.0

%

79.7

%

0.4

%

$

182.94

$

181.68

0.7

%

$

146.39

$

144.78

1.1

%

 

Note: Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an unconsolidated hotel. Unaudited information presented only for comparison purposes.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20191107006105/en/

Sean M. Mahoney, Executive Vice President and Chief Financial Officer – (301) 280-7774 For additional information or to receive press releases via email, please visit our website: http://www.rljlodgingtrust.com

Source: RLJ Lodging Trust

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