| DiamondRock Hospitality Company Reports Fourth Quarter and Full Year 2009 Results |
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| Mortgage Crisis | |||
| Friday, 26 February 2010 00:00 | |||
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BETHESDA, Md., Feb. 26 /PRNewswire-FirstCall/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH) today announced results of operations for its fourth fiscal quarter and the full fiscal year ended December 31, 2009. The Company is a lodging focused real estate investment trust that owns twenty premium hotels in North America. (Logo: www.drhc.com. This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "continue" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: national and local economic and business conditions that will affect occupancy rates at the Company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the Company's indebtedness and its ability to meet covenants in its debt agreements; relationships with property managers; the Company's ability to maintain its properties in a first-class manner, including meeting capital expenditure requirements; the Company's ability to complete planned renovations on budget; the Company's ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; the Company's ability to complete acquisitions; the Company's ability to raise equity capital; the performance of acquired properties after they are acquired; necessary capital expenditures on the acquired properties; and the Company's ability to continue to satisfy complex rules in order for it to qualify as a REIT for federal income tax purposes; and other risks and uncertainties associated with the Company's business described from time to time in its filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in its expectations. Reporting Periods for Statement of Operations The results reported in the Company's consolidated statements of operations are based on results of its hotels reported by hotel managers. The Company's hotel managers use different reporting periods. Marriott International, the manager of most of the Company's properties, uses a fiscal year ending on the Friday closest to December 31 and reports twelve weeks of operations for the first three quarters and sixteen or seventeen weeks for the fourth quarter of the year for its domestic managed hotels. In contrast, Marriott International for its non-domestic hotels (including Frenchman's Reef), Davidson Hotel Company, manager of the Westin Atlanta North, Vail Resorts, manager of the Vail Marriott, Hilton Hotels Corporation, manager of the Conrad Chicago, and Westin Hotel Management, L.P., manager of the Westin Boston Waterfront report results on a monthly basis. Additionally, the Company, as a REIT, is required by U.S. federal tax laws to report results on a calendar year basis. As a result, the Company has adopted the reporting periods used by Marriott International for its domestic hotels, except that the fiscal year always ends on December 31 to comply with REIT rules. The first three fiscal quarters end on the same day as Marriott International's fiscal quarters but the fourth quarter ends on December 31 and full year results, as reported in the statement of operations, always include the same number of days as the calendar year. Two consequences of the reporting cycle the Company has adopted are: (1) quarterly start dates will usually differ between years, except for the first quarter which always commences on January 1, and (2) the first and fourth quarters of operations and year-to-date operations may not include the same number of days as reflected in prior years. While the reporting calendar the Company adopted is more closely aligned with the reporting calendar used by the manager of most of its properties, one final consequence of the calendar is the Company is unable to report any results for Frenchman's Reef, Westin Atlanta North, Vail Marriott, Conrad Chicago, or the Westin Boston Waterfront for the month of operations that ends after its fiscal quarter-end because none of Vail Resorts, Davidson Hotel Company, Hilton Hotels Corporation, Westin Hotel Management, L.P., and Marriott International make mid-month results available. As a result, the quarterly results of operations include results from Frenchman's Reef, Westin Atlanta North, Vail Marriott, Conrad Chicago, and the Westin Boston Waterfront as follows: first quarter (January and February), second quarter (March to May), third quarter (June to August) and fourth quarter (September to December). While this does not affect full-year results, it does affect the reporting of quarterly results. Ground Leases Four of the Company's hotels are subject to ground leases: Bethesda Marriott Suites, Courtyard Manhattan Fifth Avenue, Salt Lake City Downtown Marriott, and the Westin Boston Waterfront. In addition, part of a parking structure at a fifth hotel and two golf courses at two additional hotels are also subject to ground leases. In accordance with GAAP, the Company records rent expense on a straight-line basis for ground leases that provide minimal rental payments that increase in pre-established amounts over the remaining term of the ground lease. For the fourth quarter 2009, contractual cash rent payable on the ground leases totaled $0.5 million and the Company recorded approximately $2.9 million in ground rent expense. The non-cash portion of ground rent expense recorded for the fourth quarter 2009 was $2.4 million.
DIAMONDROCK HOSPITALITY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
2009 2008
---- ----
(In thousands, except
share amounts)
ASSETS
Property and equipment, at cost $2,171,311 $2,146,616
Less: accumulated depreciation (309,224) (226,400)
-------- --------
1,862,087 1,920,216
Restricted cash 31,274 30,060
Due from hotel managers 45,200 61,062
Favorable lease assets, net 37,319 40,619
Prepaid and other assets 58,607 33,414
Cash and cash equivalents 177,380 13,830
Deferred financing costs, net 3,624 3,335
----- -----
Total assets $2,215,491 $2,102,536
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage debt $786,777 $821,353
Senior unsecured credit facility - 57,000
- ------
Total debt 786,777 878,353
Deferred income related to key money, net 19,763 20,328
Unfavorable contract liabilities, net 82,684 84,403
Dividends declared and unpaid 41,810 -
Due to hotel managers 29,847 35,196
Accounts payable and accrued expenses 79,104 66,624
------ ------
Total other liabilities 253,208 206,551
------- -------
Stockholders' Equity:
Preferred stock, $.01 par value; 10,000,000
shares authorized; no shares issued and
outstanding - -
Common stock, $.01 par value; 200,000,000 shares
authorized; 124,299,423 and 90,050,264 shares
issued and outstanding at December 31, 2009 and
2008, respectively 1,243 901
Additional paid-in capital 1,311,053 1,100,541
Accumulated deficit (136,790) (83,810)
-------- -------
Total stockholders' equity 1,175,506 1,017,632
--------- ---------
Total liabilities and stockholders'
equity $2,215,491 $2,102,536
========== ==========
DIAMONDROCK HOSPITALITY COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal Quarters Ended December 31, 2009 and 2008
(in thousands, except share and per share amounts)
2009 2008
---- ----
(Unaudited)
Revenues:
Rooms $111,378 $135,929
Food and beverage 54,922 70,349
Other 9,430 11,681
----- ------
Total revenues 175,730 217,959
------- -------
Operating Expenses:
Rooms 30,222 33,037
Food and beverage 38,078 46,916
Management fees 6,313 8,712
Other hotel expenses 65,580 72,711
Impairment of favorable lease asset 1,256 695
Depreciation and amortization 25,417 25,144
Corporate expenses 7,222 4,440
----- -----
Total operating expenses 174,088 191,655
------- -------
Operating income 1,642 26,304
----- ------
Interest income (103) (582)
Interest expense 17,935 16,647
------ ------
Total other expenses (income) 17,832 16,065
------ ------
(Loss) income before income taxes (16,190) 10,239
Income tax benefit 7,175 3,546
----- -----
Net (loss) income $(9,015) $13,785
======= =======
(Loss) earnings per share:
Basic and diluted (loss) earnings per share $(0.07) $0.15
====== =====
Weighted-average number of common shares
outstanding:
Basic 120,602,279 90,517,083
=========== ==========
Diluted 120,602,279 90,517,083
=========== ==========
DIAMONDROCK HOSPITALITY COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended December 31, 2009 and 2008
(in thousands, except share and per share amounts)
2009 2008
---- ----
(In thousands, except
share amounts)
Revenues:
Rooms $365,039 $444,070
Food and beverage 177,345 211,475
Other 33,297 37,689
------ ------
Total revenues 575,681 693,234
------- -------
Operating Expenses:
Rooms 97,089 105,868
Food and beverage 124,046 145,181
Management fees 19,556 28,569
Other hotel expenses 212,282 228,469
Impairment of favorable lease asset 2,542 695
Depreciation and amortization 82,729 78,156
Corporate expenses 18,317 13,987
------ ------
Total operating expenses 556,561 600,925
------- -------
Operating income 19,120 92,309
------ ------
Interest income (368) (1,648)
Interest expense 51,609 50,404
------ ------
Total other expenses (income) 51,241 48,756
------ ------
(Loss) income before income taxes (32,121) 43,553
Income tax benefit 21,031 9,376
------ -----
Net (loss) income $(11,090) $52,929
======== =======
(Loss) earnings per share:
Basic and diluted (loss) earnings per share $(0.10) $0.56
====== =====
Weighted-average number of common shares
outstanding:
Basic 107,404,074 93,064,790
=========== ==========
Diluted 107,404,074 93,116,162
=========== ==========
DIAMONDROCK HOSPITALITY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2009 and 2008
(in thousands)
2009 2008
---- ----
(In thousands)
Cash flows from operating activities:
Net (loss) income $(11,090) $52,929
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Real estate depreciation 82,729 78,156
Corporate asset depreciation as corporate
expenses 145 164
Non-cash financing costs as interest 930 808
Non-cash ground rent 7,720 7,755
Impairment of favorable lease asset 2,542 695
Amortization of debt premium and unfavorable
contract liabilities (1,720) (1,720)
Amortization of deferred income (564) (557)
Yield support received - 797
Stock-based compensation 6,937 3,981
Deferred income tax benefit (21,566) (10,128)
Changes in assets and liabilities:
Prepaid expenses and other assets (430) (2,183)
Due to/from hotel managers 10,513 1,773
Restricted cash 520 (1,773)
Accounts payable and accrued expenses 3,872 (1,196)
----- ------
Net cash provided by operating activities 80,538 129,501
------ -------
Cash flows from investing activities:
Purchase of ground lease interest (874) -
Hotel capital expenditures (24,692) (65,116)
Receipt of deferred key money - 5,000
Change in restricted cash (2,465) 3,449
------ -----
Net cash used in investing activities (28,031) (56,667)
------- -------
Cash flows from financing activities:
Proceeds from mortgage debt 43,000 -
Repayments of mortgage debt (73,409) -
Repayments of credit facility (57,000) (116,000)
Draws on credit facility - 173,000
Scheduled mortgage debt principal payments (4,167) (3,173)
Payment of financing costs (1,219) (123)
Proceeds from sale of common stock 205,642 -
Payment of costs related to sale of common stock (667) -
Repurchase of shares (1,057) (49,434)
Payment of dividends (80) (93,047)
--- -------
Net cash provided by (used in) financing
activities 111,043 (88,777)
------- -------
Net increase (decrease) in cash and cash
equivalents 163,550 (15,943)
Cash and cash equivalents, beginning of year 13,830 29,773
------ ------
Cash and cash equivalents, end of year $177,380 $13,830
======== =======
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $47,595 $49,614
======= =======
Cash paid for income taxes $1,023 $1,080
====== ======
Capitalized interest $19 $259
=== ====
Non-cash Financing Activities:
Unpaid dividends $41,810 $-
======= ==
Non-GAAP Financial Measures We use the following four non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: (1) EBITDA, (2) Adjusted EBITDA, (3) FFO and (4) Adjusted FFO. EBITDA represents net income excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization. We believe EBITDA is useful to an investor in evaluating our operating performance because it helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization) from our operating results. We also use EBITDA as one measure in determining the value of hotel acquisitions and dispositions.
Historical (in 000s)
--------------------
Fiscal Quarter
Ended December 31,
-----------------
2009 2008
---- ----
(In thousands)
Net (loss) income $(9,015) $13,785
Interest expense 17,935 16,647
Income tax benefit (7,175) (3,546)
Real estate related depreciation 25,417 25,144
------ ------
EBITDA $27,162 $52,030
======= =======
Historical (in 000s)
--------------------
Year Ended
December 31,
-------------
2009 2008
---- ----
(In thousands)
Net (loss) income $(11,090) $52,929
Interest expense 51,609 50,404
Income tax benefit (21,031) (9,376)
Real estate related depreciation 82,729 78,156
------ ------
EBITDA $102,217 $172,113
======== ========
We also evaluate our performance by reviewing Adjusted EBITDA because we believe that the exclusion of certain additional recurring and non-recurring items described below provides useful supplemental information regarding our ongoing operating performance and that the presentation of Adjusted EBITDA, when combined with the primary GAAP presentation of net income, is beneficial to a complete understanding of our operating performance. We adjust EBITDA for the following items, which may occur in any period, and refer to this measure as Adjusted EBITDA:
-- Non-Cash Ground Rent: We exclude the non-cash expense incurred from
straight lining the rent from our ground lease obligations and the
non-cash amortization of our favorable lease assets.
-- The impact of the non-cash amortization of the unfavorable contract
liabilities recorded in conjunction with our acquisitions of the
Bethesda Marriott Suites and the Chicago Marriott Downtown. The
amortization of the unfavorable contract liabilities does not reflect
the underlying performance of the Company.
-- Cumulative effect of a change in accounting principle: Infrequently, the
Financial Accounting Standards Board (FASB) promulgates new accounting
standards that require the consolidated statement of operations to
reflect the cumulative effect of a change in accounting principle. We
exclude these one-time adjustments because they do not reflect our
actual performance for that period.
-- Gains from Early Extinguishment of Debt: We exclude the effect of gains
recorded on the early extinguishment of debt because we believe that
including them in EBITDA is not consistent with reflecting the ongoing
performance of our remaining assets.
-- Impairment Losses and Gains or Losses on Dispositions: We exclude the
effect of impairment losses and gains or losses on dispositions recorded
because we believe that including them in EBITDA is not consistent with
reflecting the ongoing performance of our remaining assets. In
addition, we believe that impairment charges are similar to depreciation
expense, which is also excluded from EBITDA.
-- Acquisition Costs: We exclude acquisition transaction costs expensed
during the period from EBITDA because we believe that including these
costs in EBITDA is not consistent with the underlying performance of the
Company. The GAAP accounting treatment of acquisition costs was
modified effective January 1, 2009 to require companies to expense
acquisition costs as incurred. The previous GAAP accounting treatment
was to capitalize acquisition costs.
-- Other Non-Cash and / or Non-Recurring Items: We exclude the effect of
certain non-cash and / or non-recurring items, including management
transition costs, from EBITDA because we believe that including these
costs in EBITDA is not consistent with the underlying performance of the
Company.
Historical (in 000s)
-------------------
Fiscal Quarter
Ended December 31,
-----------------
2009 2008
---- ----
(In thousands)
EBITDA $27,162 $52,030
Non-cash ground rent 2,370 2,434
Non-cash amortization of unfavorable contract
liabilities (529) (529)
Impairment of favorable lease asset 1,256 695
Management transition costs 2,597 -
----- --
Adjusted EBITDA $32,856 $54,630
======= =======
Historical (in
000s)
---------------
Year Ended
December 31,
-------------
2009 2008
---- ----
(In thousands)
EBITDA $102,217 $172,113
Non-cash ground rent 7,720 7,755
Non-cash amortization of unfavorable contract
liabilities (1,720) (1,719)
Impairment of favorable lease asset 2,542 695
Management transition costs 2,597 -
----- --
Adjusted EBITDA $113,356 $178,844
======== ========
We compute FFO in accordance with standards established by NAREIT (which defines FFO as net income determined in accordance with GAAP), excluding gains (losses) from sales of property, plus depreciation and amortization. We believe that the presentation of FFO provides useful information to investors regarding our operating performance because it is a measure of our operations without regard to specified non-cash items, such as real estate depreciation and amortization and gain or loss on sale of assets. We also use FFO as one measure in assessing our results.
Historical (in 000s)
-------------------
Fiscal Quarter
Ended December 31,
-----------------
2009 2008
---- ----
(In thousands)
Net (loss) income $(9,015) $13,785
Real estate related depreciation 25,417 25,144
------ ------
FFO $16,402 $38,929
======= =======
FFO per share (basic and diluted) $0.14 $0.43
===== =====
Historical (in 000s)
-------------------
Year Ended
December 31,
-------------
2009 2008
---- ----
(In thousands)
Net (loss) income $(11,090) $52,929
Real estate related depreciation 82,729 78,156
------ ------
FFO $71,639 $131,085
======= ========
FFO per share (basic and diluted) $0.67 $1.41
===== =====
We also evaluate our performance by reviewing Adjusted FFO because we believe that the exclusion of certain additional recurring and non-recurring items described below provides useful supplemental information regarding our ongoing operating performance and that the presentation of Adjusted FFO, when combined with the primary GAAP presentation of net income, is beneficial to a complete understanding of our operating performance. We adjust FFO for the following items, which may occur in any period, and refer to this measure as Adjusted FFO:
-- Non-Cash Ground Rent: We exclude the non-cash expense incurred from
straight lining the rent from our ground lease obligations and the
non-cash amortization of our favorable lease assets.
-- The impact of the non-cash amortization of the unfavorable contract
liabilities recorded in conjunction with our acquisitions of the
Bethesda Marriott Suites and the Chicago Marriott Downtown. The
amortization of the unfavorable contract liabilities does not reflect
the underlying performance of the Company.
-- Cumulative effect of a change in accounting principle: Infrequently, the
Financial Accounting Standards Board (FASB) promulgates new accounting
standards that require the consolidated statement of operations to
reflect the cumulative effect of a change in accounting principle. We
exclude these one-time adjustments because they do not reflect our
actual performance for that period.
-- Gains from Early Extinguishment of Debt: We exclude the effect of gains
recorded on the early extinguishment of debt because we believe that
including them in FFO is not consistent with reflecting the ongoing
performance of our remaining assets.
-- Impairment Losses: We exclude the effect of impairment losses recorded
because we believe that including them in FFO is not consistent with
reflecting the ongoing performance of our remaining assets. In
addition, we believe that impairment charges are similar to gains or
losses on dispositions and depreciation expense, both of which are also
excluded from FFO.
-- Acquisition Costs: We exclude acquisition transaction costs expensed
during the period from FFO because we believe that including these costs
in FFO is not consistent with the underlying performance of the Company.
The GAAP accounting treatment of acquisition costs was modified
effective January 1, 2009 to require companies to expense acquisition
costs as incurred. The previous GAAP accounting treatment was to
capitalize acquisition costs.
-- Other Non-Cash and / or Non-Recurring Items: We exclude the effect of
certain non-cash and / or non-recurring items, including management
transition costs, from FFO because we believe that including these costs
in FFO is not consistent with the underlying performance of the Company.
Historical (in 000s)
--------------------
Fiscal Quarter
Ended December 31,
------------------
2009 2008
---- ----
(In thousands)
FFO $16,402 $38,929
Non-cash ground rent 2,370 2,434
Non-cash amortization of unfavorable contract
liabilities (529) (529)
Impairment of favorable lease asset 1,256 695
Management transition costs 2,597 -
----- --
Adjusted FFO $22,096 $41,529
======= =======
Adjusted FFO per share (basic and diluted) $0.18 $0.46
===== =====
Historical (in 000s)
------------------
Year Ended
December 31,
-------------
2009 2008
---- ----
(In thousands)
FFO $71,639 $131,085
Non-cash ground rent 7,720 7,755
Non-cash amortization of unfavorable contract
liabilities (1,720) (1,719)
Impairment of favorable lease asset 2,542 695
Management transition costs 2,597 -
----- --
Adjusted FFO $82,778 $137,816
======= ========
Adjusted FFO per share (basic and diluted) $0.77 $1.48
===== =====
Certain Definitions In this release, when we discuss "Hotel Adjusted EBITDA," we exclude from Hotel EBITDA the non-cash expense incurred by the hotels due to the straight lining of the rent from our ground lease obligations, the non-cash amortization of our favorable lease assets, and the non-cash amortization of the unfavorable contract liabilities recorded in conjunction with the acquisitions of the Bethesda Marriott Suites and the Chicago Marriott Downtown. Hotel EBITDA represents hotel net income excluding: (1) interest expense; (2) income taxes; and (3) depreciation and amortization. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues.
DIAMONDROCK HOSPITALITY COMPANY
HOTEL OPERATIONAL DATA
Schedule of Property Level Results
(in thousands)
(unaudited)
Fiscal Quarter Fiscal Year
Ended Ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Rooms $111,378 $135,929 $365,039 $444,070
Food and beverage 54,922 70,349 177,345 211,475
Other 9,430 11,681 33,297 37,689
----- ------ ------ ------
Total revenues 175,730 217,959 575,681 693,234
------- ------- ------- -------
Operating Expenses:
Rooms departmental expenses $30,222 $33,037 $97,089 $105,868
Food and beverage departmental
expenses 38,078 46,916 124,046 145,181
Other direct departmental 5,325 6,843 18,839 21,742
General and administrative 16,236 17,652 51,929 57,124
Utilities 7,603 8,580 24,549 27,773
Repairs and maintenance 8,914 9,861 28,629 30,432
Sales and marketing 13,347 14,877 42,105 47,583
Base management fees 4,682 5,939 15,236 18,893
Incentive management fees 1,631 2,773 4,320 9,676
Property taxes 7,645 8,133 25,763 23,912
Ground rent 2,933 3,011 9,579 9,805
Other fixed expenses 3,577 3,754 10,889 10,098
----- ----- ------ ------
Total hotel operating expenses $140,193 $161,376 $452,973 $508,087
-------- -------- -------- --------
Hotel EBITDA 35,537 56,583 122,708 185,147
------ ------ ------- -------
Non-cash ground rent 2,370 2,434 7,720 7,755
Non-cash amortization of
unfavorable contract
liabilities (529) (529) (1,720) (1,719)
---- ---- ------ ------
Hotel Adjusted EBITDA $37,378 $58,488 $128,708 $191,183
------- ------- -------- --------
Market Capitalization as of December 31, 2009
(in thousands, except per share data)
Enterprise Value
----------------
Common equity capitalization (at 12/31/09 closing
price of $8.47/share) $1,071,333
Consolidated debt 786,777
Cash and cash equivalents (177,380)
--------
Total enterprise value $1,680,730
==========
Share Reconciliation
--------------------
Common shares outstanding 124,299
Unvested restricted stock held by management and employees 1,719
Share grants under deferred compensation plan held by
corporate officers 467
---
Combined shares outstanding 126,485
=======
Debt Summary as of December 31, 2009
(dollars in thousands)
Interest Outstanding
Property Rate Term Principal Maturity
Courtyard Manhattan /Midtown
East 8.810% Fixed $42,949 October 2014
Salt Lake City Marriott
Downtown 5.500% Fixed 33,108 January 2015
Courtyard Manhattan /Fifth
Avenue 6.480% Fixed 51,000 June 2016
Los Angeles Airport Marriott 5.300% Fixed 82,600 July 2015
Marriott Frenchman's Reef 5.440% Fixed 61,422 August 2015
Renaissance Worthington 5.400% Fixed 57,103 July 2015
Orlando Airport Marriott 5.680% Fixed 59,000 January 2016
Chicago Marriott Downtown 5.975% Fixed 219,595 April 2016
Austin Renaissance Hotel 5.507% Fixed 83,000 December 2016
Waverly Renaissance Hotel 5.503% Fixed 97,000 December 2016
Senior Unsecured Credit LIBOR +
Facility 1.25% Variable - February 2011
--------
Total Debt $786,777
========
Operating Statistics - Fourth Fiscal Quarter 2009
ADR Occupancy
------------------- ---------------------
4Q 4Q 4Q 4Q
2009 2008 B/(W) 2009 2008 B/(W)
---- ---- ----- ---- ---- -----
Atlanta Alpharetta $118.29 $145.66 (18.8%) 59.7% 55.0% 4.7%
Westin Atlanta North
(1) $96.63 $124.51 (22.4%) 66.1% 61.0% 5.1%
Atlanta Waverly $128.97 $141.10 (8.6%) 54.0% 59.6% (5.6%)
Renaissance Austin $144.94 $166.44 (12.9%) 53.0% 66.0% (13.0%)
Bethesda Marriott
Suites $164.64 $191.04 (13.8%) 65.0% 64.7% 0.3%
Boston Westin (1) $199.70 $215.13 (7.2%) 66.4% 67.4% (1.0%)
Chicago Marriott $188.27 $216.57 (13.1%) 74.9% 72.9% 2.0%
Chicago Conrad (1) $202.32 $256.08 (21.0%) 76.4% 75.6% 0.8%
Courtyard Fifth Avenue $288.33 $326.51 (11.7%) 87.0% 84.7% 2.3%
Courtyard Midtown East $270.55 $333.70 (18.9%) 84.6% 83.7% 0.9%
Frenchman's Reef (1) $187.30 $197.91 (5.4%) 69.0% 68.9% 0.1%
Griffin Gate Marriott $128.69 $158.24 (18.7%) 62.3% 61.9% 0.4%
Los Angeles Airport $101.51 $113.43 (10.5%) 71.5% 79.9% (8.4%)
Oak Brook Hills $109.31 $130.64 (16.3%) 43.3% 51.2% (7.9%)
Orlando Airport
Marriott $96.04 $107.56 (10.7%) 68.6% 69.7% (1.1%)
Salt Lake City
Marriott $123.37 $135.27 (8.8%) 48.4% 54.5% (6.1%)
The Lodge at Sonoma $200.56 $222.85 (10.0%) 62.5% 67.1% (4.6%)
Torrance Marriott
South Bay $99.13 $119.57 (17.1%) 78.6% 69.8% 8.8%
Vail Marriott (1) $186.77 $194.78 (4.1%) 40.6% 53.9% (13.3%)
Renaissance
Worthington $160.88 $169.82 (5.3%) 65.2% 72.0% (6.8%)
Hotel Adjusted
RevPAR EBITDA Margin
------------------- --------------------
4Q 4Q 4Q 4Q
2009 2008 B/(W) 2009 2008 B/(W)
---- ---- ----- ---- ---- -----
Atlanta Alpharetta $70.64 $80.13 (11.8%) 25.4% 27.1% (1.7%)
Westin Atlanta North
(1) $63.89 $75.98 (15.9%) 12.3% 21.6% (9.3%)
Atlanta Waverly $69.65 $84.04 (17.1%) 21.0% 28.4% (7.4%)
Renaissance Austin $76.76 $109.77 (30.1%) 26.1% 31.4% (5.3%)
Bethesda Marriott
Suites $106.99 $123.67 (13.5%) 25.0% 29.7% (4.7%)
Boston Westin (1) $132.54 $145.08 (8.6%) 25.8% 31.9% (6.1%)
Chicago Marriott $141.00 $157.80 (10.6%) 23.7% 26.9% (3.2%)
Chicago Conrad (1) $154.55 $193.53 (20.1%) 28.6% 36.3% (7.7%)
Courtyard Fifth Avenue $250.85 $276.60 (9.3%) 36.7% 44.8% (8.1%)
Courtyard Midtown East $228.89 $279.38 (18.1%) 38.9% 46.4% (7.5%)
Frenchman's Reef (1) $129.32 $136.41 (5.2%) (4.1%) (4.7%) 0.6%
Griffin Gate Marriott $80.14 $97.92 (18.2%) 28.9% 32.9% (4.0%)
Los Angeles Airport $72.61 $90.65 (19.9%) 15.1% 23.5% (8.4%)
Oak Brook Hills $47.30 $66.85 (29.2%) 10.1% 19.1% (9.0%)
Orlando Airport
Marriott $65.86 $74.98 (12.2%) 21.3% 25.2% (3.9%)
Salt Lake City
Marriott $59.67 $73.77 (19.1%) 18.1% 22.5% (4.4%)
The Lodge at Sonoma $125.37 $149.54 (16.2%) 19.0% 21.1% (2.1%)
Torrance Marriott
South Bay $77.95 $83.44 (6.6%) 22.0% 26.0% (4.0%)
Vail Marriott (1) $75.90 $105.01 (27.7%) 2.0% 16.9% (14.9%)
Renaissance
Worthington $104.93 $122.35 (14.2%) 22.6% 29.8% (7.2%)
(1) The hotel reports results on a monthly basis. The data presented is
based upon the Company's reporting calendar for the fourth quarter
and includes the months of September, October, November and December.
Operating Statistics - Year Ended December 31, 2009
ADR Occupancy
------------------- -------------------
YTD YTD YTD YTD
2009 2008 B/(W) 2009 2008 B/(W)
---- ---- ----- ---- ---- -----
Atlanta Alpharetta $122.60 $147.89 (17.1%) 60.0% 59.6% 0.4%
Westin Atlanta North $100.29 $136.74 (26.7%) 67.7% 61.5% 6.2%
Atlanta Waverly $131.96 $142.19 (7.2%) 60.8% 66.8% (6.0%)
Renaissance Austin $146.03 $161.09 (9.3%) 59.4% 68.6% (9.2%)
Bethesda Marriott
Suites $167.61 $191.34 (12.4%) 63.7% 69.8% (6.1%)
Boston Westin $194.46 $203.40 (4.4%) 67.9% 69.1% (1.2%)
Chicago Marriott $175.12 $208.74 (16.1%) 74.2% 73.1% 1.1%
Chicago Conrad $187.34 $238.42 (21.4%) 74.8% 75.6% (0.8%)
Courtyard Fifth Avenue $232.61 $300.36 (22.6%) 88.7% 87.8% 0.9%
Courtyard Midtown East $222.50 $302.57 (26.5%) 85.3% 88.3% (3.0%)
Frenchman's Reef $212.52 $238.09 (10.7%) 81.6% 79.8% 1.8%
Griffin Gate Marriott $124.57 $145.33 (14.3%) 62.6% 64.1% (1.5%)
Los Angeles Airport $106.58 $114.51 (6.9%) 73.5% 84.5% (11.0%)
Oak Brook Hills $114.92 $132.39 (13.2%) 43.0% 52.2% (9.2%)
Orlando Airport
Marriott $102.77 $117.43 (12.5%) 73.1% 72.8% 0.3%
Salt Lake City
Marriott $131.66 $135.49 (2.8%) 52.0% 65.4% (13.4%)
The Lodge at Sonoma $193.23 $224.47 (13.9%) 61.9% 69.3% (7.4%)
Torrance Marriott
South Bay $107.82 $124.03 (13.1%) 73.5% 78.3% (4.8%)
Vail Marriott $205.19 $237.18 (13.5%) 56.2% 64.4% (8.2%)
Renaissance
Worthington $161.48 $174.46 (7.4%) 65.0% 73.3% (8.3%)
Hotel Adjusted
RevPAR EBITDA Margin
------------------- -----------------
YTD YTD YTD YTD
2009 2008 B/(W) 2009 2008 B/(W)
---- ---- ----- ---- ---- -----
Atlanta Alpharetta $73.53 $88.20 (16.6%) 25.6% 30.1% (4.5%)
Westin Atlanta North $67.91 $84.13 (19.3%) 12.5% 25.4% (12.9%)
Atlanta Waverly $80.25 $94.95 (15.5%) 22.6% 25.9% (3.3%)
Renaissance Austin $86.68 $110.50 (21.6%) 28.6% 29.3% (0.7%)
Bethesda Marriott
Suites $106.83 $133.61 (20.0%) 24.2% 28.7% (4.5%)
Boston Westin $132.05 $140.55 (6.0%) 26.6% 29.7% (3.1%)
Chicago Marriott $129.92 $152.51 (14.8%) 21.1% 26.1% (5.0%)
Chicago Conrad $140.10 $180.35 (22.3%) 24.7% 31.9% (7.2%)
Courtyard Fifth Avenue $206.28 $263.80 (21.8%) 26.9% 38.9% (12.0%)
Courtyard Midtown East $189.72 $267.17 (29.0%) 30.2% 42.6% (12.4%)
Frenchman's Reef $173.39 $190.07 (8.8%) 18.8% 18.8% 0.0%
Griffin Gate Marriott $78.00 $93.10 (16.2%) 25.0% 27.9% (2.9%)
Los Angeles Airport $78.39 $96.79 (19.0%) 15.9% 23.9% (8.0%)
Oak Brook Hills $49.47 $69.12 (28.4%) 13.2% 20.2% (7.0%)
Orlando Airport
Marriott $75.08 $85.48 (12.2%) 25.4% 29.0% (3.6%)
Salt Lake City
Marriott $68.40 $88.67 (22.9%) 21.7% 27.9% (6.2%)
The Lodge at Sonoma $119.52 $155.54 (23.2%) 13.6% 20.4% (6.8%)
Torrance Marriott
South Bay $79.22 $97.10 (18.4%) 22.3% 28.8% (6.5%)
Vail Marriott $115.30 $152.80 (24.5%) 19.8% 29.2% (9.4%)
Renaissance
Worthington $104.91 $127.82 (17.9%) 26.8% 28.4% (1.6%)
Hotel Adjusted EBITDA Reconciliation
(in thousands)
4th Quarter 2009
----------------
Plus: Plus: Plus: Equals:
Non-
Net Cash Hotel
Total Income / Deprec- Interest Adjust- Adjusted
Revenues (Loss) iation Expense ments (1) EBITDA
-------- --------- ------- --------- --------- ---------
Atlanta
Alpharetta $3,715 $567 $375 $- $- $942
Westin Atlanta
North (2) $4,759 $44 $543 $- $- $587
Atlanta
Waverly $8,290 $(1,242) $1,330 $1,653 $- $1,741
Renaissance
Austin $8,270 $(512) $1,255 $1,417 $- $2,160
Bethesda
Marriott
Suites $4,310 $(1,604) $669 $68 $1,945 $1,078
Boston
Westin (2) $21,885 $1,651 $3,844 $- $156 $5,651
Chicago
Marriott $28,559 $(966) $4,149 $4,084 $(486) $6,781
Chicago
Conrad (2) $7,733 $683 $1,527 $- $- $2,210
Courtyard
Fifth Avenue $5,209 $207 $584 $1,056 $64 $1,911
Courtyard
Midtown East $8,231 $1,289 $693 $1,220 $- $3,202
Frenchman's
Reef (2) $12,079 $(5,795) $1,123 $4,175 $- $(497)
Griffin Gate
Marriott $7,419 $1,014 $1,047 $84 $(1) $2,144
Los Angeles
Airport $13,955 $(971) $1,715 $1,367 $- $2,111
Oak Brook Hills $5,582 $(611) $1,006 $- $167 $562
Orlando $5,734 $(789) $975 $1,037 $- $1,223
Salt Lake City
Marriott $5,370 $(609) $1,011 $571 $- $973
The Lodge at
Sonoma $4,485 $312 $538 $- $- $850
Torrance
Marriott South
Bay $6,501 $419 $1,012 $- $- $1,431
Vail
Marriott (2) $4,555 $(885) $976 $- $- $91
Renaissance
Worthington $9,093 $40 $1,047 $963 $4 $2,054
(1) The non-cash adjustments include expenses incurred by the hotels due
to the straight lining of the rent from our ground lease obligations,
the non-cash amortization of our favorable lease assets and the
non-cash amortization of our unfavorable contract liabilities.
(2) The hotel reports results on a monthly basis. The data presented is
based upon the Company's reporting calendar for the fourth quarter
and includes the months of September, October, November, and December.
Hotel Adjusted EBITDA Reconciliation
(in thousands)
4th Quarter 2008
----------------
Plus: Plus: Plus: Equals:
Non-
Net Cash Hotel
Total Income / Deprec- Interest Adjust- Adjusted
Revenues (Loss) iation Expense ments (1) EBITDA
-------- --------- ------- --------- --------- ---------
Atlanta
Alpharetta $4,603 $891 $355 $- $- $1,246
Westin Atlanta
North (2) $5,921 $396 $885 $- $- $1,281
Atlanta
Waverly $10,826 $49 $1,293 $1,728 $- $3,070
Renaissance
Austin $11,547 $939 $1,195 $1,494 $- $3,628
Bethesda
Marriott
Suites $5,390 $(1,108) $649 $108 $1,952 $1,601
Boston
Westin (2) $26,676 $4,574 $3,786 $- $157 $8,517
Chicago
Marriott $32,443 $646 $4,271 $4,287 $(486) $8,718
Chicago
Conrad (2) $9,717 $2,096 $1,428 $- $- $3,524
Courtyard
Fifth Avenue $6,049 $890 $592 $1,111 $116 $2,709
Courtyard
Midtown East $10,491 $3,469 $695 $709 $- $4,873
Frenchman's
Reef (2) $13,530 $(2,704) $954 $1,112 $- $(638)
Griffin Gate
Marriott $9,863 $1,711 $1,052 $479 $(2) $3,240
Los Angeles
Airport $18,008 $1,140 $1,648 $1,442 $- $4,230
Oak Brook Hills $7,568 $211 $1,064 $- $167 $1,442
Orlando $6,901 $(333) $977 $1,093 $- $1,737
Salt Lake City
Marriott $6,794 $264 $684 $584 $- $1,532
The Lodge at
Sonoma $5,492 $475 $682 $- $- $1,157
Torrance
Marriott South
Bay $7,098 $853 $995 $- $- $1,848
Vail
Marriott (2) $6,921 $238 $932 $- $- $1,170
Renaissance
Worthington $12,119 $1,591 $1,007 $1,007 $3 $3,608
(1) The non-cash adjustments include expenses incurred by the hotels due
to the straight lining of the rent from our ground lease obligations,
the non-cash amortization of our favorable lease assets and the
non-cash amortization of our unfavorable contract liabilities.
(2) The hotel reports results on a monthly basis. The data presented is
based upon the Company's reporting calendar for the fourth quarter
and includes the months of September, October, November, and December.
Hotel Adjusted EBITDA Reconciliation
(in thousands)
Full Year 2009
--------------
Plus: Plus: Plus: Equals:
Non-
Net Cash Hotel
Total Income / Deprec- Interest Adjust- Adjusted
Revenues (Loss) iation Expense ments (1) EBITDA
-------- --------- ------- --------- --------- ---------
Atlanta
Alpharetta $12,455 $2,010 $1,181 $- $- $3,191
Westin Atlanta
North $14,730 $(265) $2,102 $- $- $1,837
Atlanta
Waverly $29,562 $(3,025) $4,277 $5,436 $- $6,688
Renaissance
Austin $29,152 $(344) $4,019 $4,660 $- $8,335
Bethesda
Marriott
Suites $14,126 $(5,251) $2,165 $182 $6,321 $3,417
Boston Westin $65,517 $4,548 $12,398 $- $507 $17,453
Chicago
Marriott $86,686 $(7,511) $13,905 $13,435 $(1,581) $18,248
Chicago Conrad $21,834 $579 $4,814 $- $- $5,393
Courtyard
Fifth Avenue $14,111 $(1,767) $1,889 $3,471 $207 $3,800
Courtyard
Midtown East $22,561 $1,815 $2,238 $2,764 $- $6,817
Frenchman's
Reef $48,159 $(833) $3,317 $6,564 $- $9,048
Griffin Gate
Marriott $23,325 $1,315 $3,416 $1,111 $(4) $5,838
Los Angeles
Airport $47,712 $(2,448) $5,555 $4,493 $- $7,600
Oak Brook Hills $19,605 $(1,232) $3,283 $- $542 $2,593
Orlando $20,765 $(1,334) $3,196 $3,410 $- $5,272
Salt Lake City
Marriott $19,513 $(693) $3,052 $1,883 $- $4,242
The Lodge at
Sonoma $13,889 $(201) $2,094 $- $- $1,893
Torrance
Marriott South
Bay $20,772 $1,318 $3,304 $- $- $4,622
Vail Marriott $20,683 $950 $3,151 $- $- $4,101
Renaissance
Worthington $30,526 $1,616 $3,372 $3,175 $11 $8,174
(1) The non-cash adjustments include expenses incurred by the hotels due
to the straight lining of the rent from our ground lease obligations,
the non-cash amortization of our favorable lease assets and the
non-cash amortization of our unfavorable contract liabilities.
Hotel Adjusted EBITDA Reconciliation
(in thousands)
Full Year 2008
--------------
Plus: Plus: Plus: Equals:
Non-
Net Cash Hotel
Total Income / Deprec- Interest Adjust- Adjusted
Revenues (Loss) iation Expense ments (1) EBITDA
-------- --------- ------- --------- --------- ---------
Atlanta
Alpharetta $14,909 $3,466 $1,028 $- $- $4,494
Westin Atlanta
North $18,346 $1,810 $2,846 $- $- $4,656
Atlanta
Waverly $35,173 $(457) $4,112 $5,468 $- $9,123
Renaissance
Austin $35,686 $2,212 $3,582 $4,674 $- $10,468
Bethesda
Marriott
Suites $17,584 $(3,729) $2,109 $325 $6,348 $5,053
Boston Westin $72,993 $9,201 $11,987 $- $507 $21,695
Chicago
Marriott $96,238 $1,125 $12,277 $13,308 $(1,581) $25,129
Chicago Conrad $27,440 $4,356 $4,410 $- $- $8,766
Courtyard
Fifth Avenue $18,054 $1,421 $1,906 $3,480 $207 $7,014
Courtyard
Midtown East $31,671 $9,016 $2,224 $2,239 $- $13,479
Frenchman's
Reef $54,715 $3,820 $2,971 $3,484 $- $10,275
Griffin Gate
Marriott $28,219 $3,107 $3,254 $1,504 $2 $7,867
Los Angeles
Airport $59,065 $4,207 $5,363 $4,528 $- $14,098
Oak Brook Hills $24,562 $1,028 $3,385 $- $542 $4,955
Orlando $24,357 $567 $3,076 $3,424 $- $7,067
Salt Lake City
Marriott $24,915 $2,962 $2,057 $1,938 $- $6,957
The Lodge at
Sonoma $18,140 $1,515 $2,192 $- $- $3,707
Torrance
Marriott South
Bay $25,110 $4,046 $3,197 $- $- $7,243
Vail Marriott $27,800 $5,124 $2,993 $- $- $8,117
Renaissance
Worthington $38,256 $4,488 $3,186 $3,176 $12 $10,862
(1) The non-cash adjustments include expenses incurred by the hotels due
to the straight lining of the rent from our ground lease obligations,
the non-cash amortization of our favorable lease assets and the
non-cash amortization of our unfavorable contract liabilities.
SOURCE DiamondRock Hospitality Company
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