DRH - DIAMONDROCK HOSPITALITY COMPANY REPORTS THIRD QUARTER RESULTS

November, 03 2022 04:05 PM Diamondrock Hospitality Company

PR Newswire

Record Third Quarter Revenue & Profits

Completed $1.2 Billion Financing

BETHESDA, Md. , Nov. 3, 2022 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 34 premium hotels and resorts in the United States , today announced results of operations for the quarter ended September 30, 2022 .

Third Quarter 2022 Highlights

Net Income: Net income was $28.6 million and earnings per diluted share was $0.12 .
Comparable Revenues: Comparable total revenues were $266.9 million , a 34.2% increase over 2021 and a 11.7% increase over 2019.
Comparable RevPAR: Comparable RevPAR was $211.40 , a 29.3% increase over 2021 and a 8.7% increase over 2019.
Comparable Hotel Adjusted EBITDA: Comparable Hotel Adjusted EBITDA was $84.2 million , which exceeded the comparable period of 2019 by 16.3%.
Comparable Hotel Adjusted EBITDA Margin: Comparable Hotel Adjusted EBITDA margin was 31.55%, which exceeded the comparable period of 2019 by 125 basis points.
Adjusted EBITDA: Adjusted EBITDA was $76.3 million , a 13.0% increase over 2019.
Adjusted FFO: Adjusted FFO was $60.6 million and Adjusted FFO per diluted share was $0.28 .
Credit Facility Refinancing: In September 2022 , the Company successfully completed a $1.2 billion refinancing of its primary unsecured credit facility to address its near-term debt maturities.
Share Repurchases: In October 2022 , the Company repurchased 1.6 million shares of its common stock at an average price of $7.81 per share.

"DiamondRock's portfolio once again delivered record-setting results as travel demand continues to remain robust," said Mark W. Brugger , President and Chief Executive Officer of DiamondRock Hospitality Company. "These outstanding results were enabled by our multi-year strategy to invest in the right types of hotels and resorts in the right types of markets for today's traveler. We continue to be set up favorably for the emerging travel demand trends."

Operating Results

Please see "Non-GAAP Financial Measures" attached to this press release for an explanation of the terms "EBITDAre," "Adjusted EBITDA," "Hotel Adjusted EBITDA," "Hotel Adjusted EBITDA Margin," "FFO" and "Adjusted FFO" and a reconciliation of these measures to net income. Comparable operating results include our 2021 and 2022 acquisitions and exclude our 2021 dispositions, as well as the Kimpton Fort Lauderdale Beach Resort, which opened in April 2021 , for all periods presented. See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts.


Quarter Ended September 30,

Change From

2022
2021
2019

2021
2019

($ amounts in millions, except hotel statistics and per share amounts)
Comparable Operating Results ⁽¹⁾






ADR
281.36
249.83
239.39

12.6 %
17.5 %
Occupancy
75.1 %
65.4 %
81.2 %

9.7 %
(6.1) %
RevPAR
211.40
163.45
194.40

29.3 %
8.7 %
Total RevPAR
306.35
228.71
274.93

33.9 %
11.4 %
Revenues
266.9
198.9
239.0

34.2 %
11.7 %
Hotel Adjusted EBITDA
84.2
53.5
72.4

57.4 %
16.3 %
Hotel Adjusted EBITDA Margin
31.55 %
26.89 %
30.30 %

466 bps
125 bps
Available Rooms
871,332
869,584
869,216

1,748
2,116







Actual Operating Results ⁽²⁾






Revenues
268.2
179.5
240.3

49.4 %
11.6 %
Net income (loss)
28.6
(1.8)
11.6

1688.9 %
146.6 %
Income (loss) per diluted share
0.12
(0.02)
0.06

700.0 %
100.0 %
Adjusted EBITDA
76.3
38.9
67.5

96.1 %
13.0 %
Adjusted FFO
60.6
20.9
55.3

190.0 %
9.6 %
Adjusted FFO per diluted share
0.28
0.10
0.27

180.0 %
3.7 %


Nine Months Ended September 30,

Change From

2022
2021
2019

2021
2019

($ amounts in millions, except hotel statistics and per share amounts)
Comparable Operating Results ⁽¹⁾






ADR
286.56
244.24
239.27

17.3 %
19.8 %
Occupancy
68.7 %
48.3 %
78.6 %

20.4 %
(9.9) %
RevPAR
196.84
117.85
188.15

67.0 %
4.6 %
Total RevPAR
287.91
167.80
273.66

71.6 %
5.2 %
Revenues
743.6
433.0
705.6

71.7 %
5.4 %
Hotel Adjusted EBITDA
236.3
91.6
212.7

158.0 %
11.1 %
Hotel Adjusted EBITDA Margin
31.78 %
21.15 %
30.15 %

1,063 bps
163 bps
Available Rooms
2,582,857
2,580,187
2,578,264

2,670
4,593







Actual Operating Results ⁽²⁾






Revenues
746.4
377.2
700.6

97.9 %
6.5 %
Net income (loss)
91.3
(192.5)
49.6

147.4 %
84.1 %
Income (loss) per diluted share
0.39
(0.94)
0.24

141.5 %
62.5 %
Adjusted EBITDA
213.2
49.1
197.8

334.2 %
7.8 %
Adjusted FFO
168.0
7.2
162.3

2233.3 %
3.5 %
Adjusted FFO per diluted share
0.78
0.03
0.80

2500.0 %
(2.5) %

⁽¹⁾

Amounts represent the pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021, Henderson Park Inn from January 1, 2019 to July 29, 2021, Henderson Beach Resort from January 1, 2019 to December 22, 2021 and Tranquility Bay Beachfront Resort from January 1, 2019 to January 5, 2022 and exclude the operating results of the Kimpton Fort Lauderdale Beach Resort as the hotel opened in April 2021. The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.

⁽²⁾

Actual operating results include the operating results of hotels acquired and disposed of for the Company's respective ownership periods.

The following tables provide comparable monthly operating information for the Company's portfolio:


January 2022

February 2022

March 2022

April 2022

May 2022

June 2022


Number of Hotels
33

33

33

33

33

33

Number of Rooms
9,454

9,454

9,454

9,454

9,454

9,471

Occupancy
41.3 %

57.9 %

68.4 %

72.4 %

72.9 %

79.4 %

ADR
$245.13

$283.49

$296.22

$291.71

$297.08

$302.78

RevPAR
$101.19

$164.25

$202.67

$211.29

$216.62

$240.37

Total RevPAR
$154.77

$242.91

$298.92

$304.35

$325.36

$344.28

2022 vs 2019
Occupancy change in bps
(2,216) bps

(1,633) bps

(1,062) bps

(882) bps

(740) bps

(634) bps

ADR Rate % change
20.6 %

29.1 %

21.7 %

17.5 %

16.1 %

19.3 %

RevPAR % change
(21.5) %

0.7 %

5.3 %

4.7 %

5.4 %

10.5 %

Total RevPAR % change
(22.2) %

(2.3) %

6.1 %

4.3 %

7.0 %

10.2 %


July 2022

August 2022

September 2022

Preliminary October 2022


Number of Hotels
33

33

33

33

Number of Rooms
9,471

9,471

9,471

9,471

Occupancy
74.9 %

74.6 %

75.9 %

74.8 %

ADR
$286.18

$261.49

$296.63

$306.32

RevPAR
$214.31

$195.19

$225.13

$229.24

Total RevPAR
$305.82

$285.29

$328.66

$337.21

2022 vs 2019
Occupancy change in bps
(750) bps

(677) bps

(386) bps

(670) bps

ADR Rate % change
21.7 %

15.2 %

15.4 %

16.2 %

RevPAR % change
10.6 %

5.6 %

9.8 %

6.7 %

Total RevPAR % change
12.4 %

9.5 %

12.2 %

7.8 %

Capital Expenditures

The Company invested approximately $44.6 million in capital improvements at its hotels during the nine months ended September 30 , 2022. The Company continues to expect to invest approximately $100 million on capital improvements at its hotels in 2022. Significant projects include the following:

Hotel Clio: The Company completed renovations in March 2022 to rebrand the JW Marriott Denver Cherry Creek as the Hotel Clio, a Luxury Collection Hotel.
Kimpton Hotel Palomar Phoenix: The Company is in the process of completing a comprehensive rebranding and repositioning of the rooftop bar and pool at the hotel.
Hilton Boston Downtown/Faneuil Hall: The Company expects to commence a comprehensive renovation in the fourth quarter of 2022 to reposition the hotel as an experiential lifestyle property with completion in mid-2023.
Hilton Burlington Lake Champlain : The Company has commenced a repositioning of the hotel to rebrand it as a Curio Collection hotel. The repositioning is expected to be completed in early 2023 and includes a new restaurant concept by a well-known and award-winning chef.

Credit Facility Refinancing

On September 27, 2022 , the Company entered into an amendment and restatement of its existing $750 million credit facility, increasing the total credit facility to $1.2 billion and extending the Company's maturity schedule. The credit facility is comprised of a $400 million revolving credit facility, a $300 million term loan with a maturity in January 2026 , inclusive of a one-year extension option, and a $500 million term loan maturing in January 2028. The revolving credit facility matures in September 2027 , inclusive of two six-month extension options. The facilities will bear interest pursuant to a leverage-based pricing grid ranging from 1.35% to 2.25% over the applicable adjusted term SOFR. Based upon the Company's current leverage, the pricing is at the lowest end of the grid.

The Company utilized the proceeds from the term loans to repay the $350 million term loan in the prior facility, the $50 million term loan facility that was scheduled to mature in October 2023 and the $150 million that was outstanding on its revolving credit facility . Subsequent to September 30, 2022 , the Company utilized the proceeds to repay the mortgage loans encumbering the Salt Lake City Marriott Downtown at City Creek, Westin Washington D.C . City Center and The Lodge at Sonoma Resort. The Company intends to repay the mortgage loan secured by the Westin San Diego Bayview in early December 2022 and will end the year with no debt maturities until August 2024 .

Balance Sheet and Liquidity

The Company ended the quarter with $843.4 million of liquidity, comprised of $313.9 million of unrestricted corporate cash, $129.5 million of unrestricted cash at its hotels and $400.0 million of capacity on its senior unsecured credit facility. As of September 30, 2022 , the Company had $1.4 billion of total debt outstanding, which consisted of $568.7 million of property-specific, non-recourse mortgage debt, $800.0 million of unsecured term loans and no outstanding borrowings on its $400.0 million senior unsecured credit facility.

Share Repurchase Program

On September 29, 2022 , the Company's Board of Directors approved a $200 million share repurchase program through February 28 , 2025. The share repurchase program may be suspended or terminated at any time without prior notice. Subsequent to September 30, 2022 , the Company repurchased 1.6 million shares of its common stock at an average price of $7.81 per share for a total purchase price of $12.3 million . The Company has $187.7 million of remaining authorized capacity under the share repurchase program.

Dividends

The Company declared a quarterly cash dividend of $0.03 per share on its common shares to shareholders of record as of September 30 , 2022. The dividend was paid on October 12 , 2022.

The Company declared a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock to shareholders of record as of September 16 , 2022. The dividend was paid on September 30, 2022 .

Earnings Call

The Company will host a conference call to discuss its third quarter results on Friday, November 4, 2022 , at 9:00 a.m. Eastern Time (ET). The conference call will be accessible by telephone and through the internet. Interested individuals are requested to register for the call by visiting https://investor.drhc.com . A replay of the conference call webcast will be archived and available online.

About the Company

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 34 premium quality hotels with over 9,500 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at 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 "believe," "expect," "intend," "project," "forecast," "plan" 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: the adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; national and local economic and business conditions, including the potential for additional terrorist attacks, 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; relationships with property managers; the 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; and other risk factors contained in the Company's 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 the Company's expectations.

DIAMONDROCK HOSPITALITY COMPANY CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts)


September 30, 2022

December 31, 2021
ASSETS
(unaudited)


Property and equipment, net
2,674,380

2,651,444
Right-of-use assets
99,332

100,212
Restricted cash
45,989

36,887
Due from hotel managers
182,845

120,671
Prepaid and other assets
69,792

17,472
Cash and cash equivalents
313,871

38,620
Total assets
3,386,209

2,965,306
LIABILITIES AND EQUITY



Liabilities:



Mortgage and other debt, net of unamortized debt issuance costs
567,369

578,651
Unsecured term loans, net of unamortized debt issuance costs
799,071

398,572
Senior unsecured credit facility
—

90,000
Total debt
1,366,440

1,067,223




Lease liabilities
110,287

108,605
Deferred rent
64,132

60,800
Due to hotel managers
123,837

85,493
Unfavorable contract liabilities, net
61,484

62,780
Accounts payable and accrued expenses
41,190

51,238
Distributions declared and unpaid
6,489

—
Deferred income related to key money, net
8,888

8,203
Total liabilities
1,782,747

1,444,342
Equity:



Preferred stock, $0.01 par value; 10,000,000 shares authorized;



8.250% Series A Cumulative Redeemable Preferred Stock (liquidation preference $25.00 per share), 4,760,000 shares issued and outstanding at September 30, 2022 and December 31, 2021
48

48
Common stock, $0.01 par value; 400,000,000 shares authorized; 210,944,517 and 210,746,895 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively
2,109

2,107
Additional paid-in capital
2,298,866

2,293,990
Distributions in excess of earnings
(703,747)

(780,931)
Total stockholders' equity
1,597,276

1,515,214
Noncontrolling interests
6,186

5,750
Total equity
1,603,462

1,520,964
Total liabilities and equity
3,386,209

2,965,306

DIAMONDROCK HOSPITALITY COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited)


Three Months Ended September 30,

Nine Months Ended September 30,

2022

2021

2022

2021
Revenues:







Rooms
184,994

128,743

510,189

266,051
Food and beverage
61,940

36,513

176,294

76,052
Other
21,274

14,216

59,965

35,097
Total revenues
268,208

179,472

746,448

377,200
Operating Expenses:







Rooms
43,899

32,442

120,374

67,736
Food and beverage
43,227

26,957

119,919

58,091
Management fees
6,697

3,104

17,029

6,514
Franchise fees
8,709

6,011

23,212

12,193
Other hotel expenses
83,318

66,399

234,325

167,208
Depreciation and amortization
27,053

25,555

81,097

77,209
Impairment losses
—

—

2,843

126,697
Corporate expenses
7,516

8,341

22,275

23,790
Business interruption insurance income
—

—

(499)

—
Total operating expenses, net
220,419

168,809

620,575

539,438








Interest and other expense (income), net
152

11

1,044

(460)
Interest expense
9,072

10,052

22,866

29,246
Loss on early extinguishment of debt
9,698

—

9,698

—
Total other expenses, net
18,922

10,063

33,608

28,786
Income (loss) before income taxes
28,867

600

92,265

(191,024)
Income tax expense
(312)

(2,371)

(949)

(1,433)
Net income (loss)
28,555

(1,771)

91,316

(192,457)
Less: Net (income) loss attributable to noncontrolling interests
(99)

6

(315)

812
Net income (loss) attributable to the Company
28,456

(1,765)

91,001

(191,645)
Distributions to preferred stockholders
(2,454)

(2,454)

(7,362)

(7,362)
Net income (loss) attributable to common stockholders
26,002

(4,219)

83,639

(199,007)
Earnings (loss) per share:







Earnings (loss) per share available to common stockholders - basic
0.12

(0.02)

0.39

(0.94)
Earnings (loss) per share available to common stockholders - diluted
0.12

(0.02)

0.39

(0.94)








Weighted-average number of common shares outstanding:







Basic
212,878,364

212,256,590

212,736,133

211,966,969
Diluted
214,145,329

212,256,590

213,459,354

211,966,969

Non-GAAP Financial Measures

We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDA re , Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP. EBITDA, EBITDA re , Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company.

Use and Limitations of Non-GAAP Financial Measures

Our management and Board of Directors use EBITDA, EBITDA re , Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. The use of these non-GAAP financial measures has certain limitations. These non-GAAP financial measures as presented by us, may not be comparable to non-GAAP financial measures as calculated by other real estate companies. These measures do not reflect certain expenses or expenditures that we incurred and will incur, such as depreciation, interest and capital expenditures. We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable U.S. GAAP financial measures, and our consolidated statements of operations and cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures.

These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with U.S. GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by U.S. GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our U.S. GAAP results and the reconciliations to the corresponding U.S. GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.

EBITDA, EBITDAre and FFO

EBITDA represents net income (calculated in accordance with U.S. GAAP) excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization. The Company computes EBITDA re in accordance with the National Association of Real Estate Investment Trusts ("Nareit") guidelines, as defined in its September 2017 white paper "Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate." EBITDA re represents net income (calculated in accordance with U.S. GAAP) adjusted for: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; (4) gains or losses on the disposition of depreciated property including gains or losses on change of control; (5) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; and (6) adjustments to reflect the entity's share of EBITDA re of unconsolidated affiliates.

We believe EBITDA and EBITDA re are useful to an investor in evaluating our operating performance because they help 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, and in the case of EBITDA re , impairment and gains or losses on dispositions of depreciated property) from our operating results. In addition, covenants included in our debt agreements use EBITDA as a measure of financial compliance. We also use EBITDA and EBITDA re as measures in determining the value of hotel acquisitions and dispositions.

The Company computes FFO in accordance with standards established by the Nareit, which defines FFO as net income determined in accordance with U.S. GAAP, excluding gains or losses from sales of properties and impairment losses, plus real estate related depreciation and amortization. The Company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it is a measure of the Company's operations without regard to specified non-cash items, such as real estate related depreciation and amortization and gains or losses on the sale of assets. The Company also uses FFO as one measure in assessing its operating results.

Hotel EBITDA

Hotel EBITDA represents net income excluding: (1) interest expense, (2) income taxes, (3) depreciation and amortization, (4) corporate general and administrative expenses (shown as corporate expenses on the consolidated statements of operations), and (5) hotel acquisition costs. We believe that Hotel EBITDA provides our investors a useful financial measure to evaluate our hotel operating performance, excluding the impact of our capital structure (primarily interest), our asset base (primarily depreciation and amortization), and our corporate-level expenses (corporate expenses and hotel acquisition costs). With respect to Hotel EBITDA, we believe that excluding the effect of corporate-level expenses provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control. We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis.

Adjustments to EBITDAre, FFO and Hotel EBITDA

We adjust EBITDA re , FFO and Hotel EBITDA when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted EBITDA, Adjusted FFO and Hotel Adjusted EBITDA when combined with U.S. GAAP net income, EBITDA re , FFO and Hotel EBITDA, is beneficial to an investor's complete understanding of our consolidated and property-level operating performance. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues. We adjust EBITDA re , FFO and Hotel EBITDA for the following items:

Non-Cash Lease Expense and Other Amortization : We exclude the non-cash expense incurred from the straight line recognition of expense from our ground leases and other contractual obligations and the non-cash amortization of our favorable and unfavorable contracts, originally recorded in conjunction with certain hotel acquisitions. We exclude these non-cash items because they do not reflect the actual cash amounts due to the respective lessors and service providers in the current period and they are of lesser significance in evaluating our actual performance for that period.
Cumulative Effect of a Change in Accounting Principle : The Financial Accounting Standards Board promulgates new accounting standards that require or permit the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude the effect of these adjustments, which include the accounting impact from prior periods, because they do not reflect the Company's actual underlying performance for the current period.
Gains or Losses from Early Extinguishment of Debt : We exclude the effect of gains or losses recorded on the early extinguishment of debt because these gains or losses result from transaction activity related to the Company's capital structure that we believe are not indicative of the ongoing operating performance of the Company or our hotels.
Hotel Acquisition Costs : We exclude hotel acquisition costs expensed during the period because we believe these transaction costs are not reflective of the ongoing performance of the Company or our hotels.
Severance Costs : We exclude corporate severance costs, or reversals thereof, incurred with the termination of corporate-level employees and severance costs incurred at our hotels related to lease terminations or structured severance programs because we believe these costs do not reflect the ongoing performance of the Company or our hotels.
Hotel Manager Transition Items : We exclude the transition items associated with a change in hotel manager because we believe these items do not reflect the ongoing performance of the Company or our hotels.
Other Items : From time to time we incur costs or realize gains that we consider outside the ordinary course of business and that we do not believe reflect the ongoing performance of the Company or our hotels. Such items may include, but are not limited to, the following: pre-opening costs incurred with newly developed hotels; lease preparation costs incurred to prepare vacant space for marketing; management or franchise contract termination fees; gains or losses from legal settlements; costs incurred related to natural disasters; and gains on property insurance claim settlements, other than income related to business interruption insurance.

In addition, to derive Adjusted FFO we exclude any fair value adjustments to interest rate swaps. We exclude these non-cash amounts because they do not reflect the underlying performance of the Company.

Reconciliations of Non-GAAP Measures

*EBITDA, EBITDAre and Adjusted EBITDA* The following tables are reconciliations of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA (in thousands):


Three Months Ended September 30,

2022

2021

2019
Net income (loss)
28,555

(1,771)

11,574
Interest expense
9,072

10,052

14,184
Income tax expense
312

2,371

1,217
Real estate related depreciation and amortization
27,053

25,555

29,474
EBITDA re
64,992

36,207

56,449
Professional fees and pre-opening costs related to Frenchman's Reef ⁽¹⁾
—

335

6,378
Non-cash lease expense and other amortization
1,551

1,664

1,750
Hotel manager transition items
11

523

582
Uninsured costs related to natural disasters
—

187

—
Loss on early extinguishment of debt
9,698

—

2,373
Adjusted EBITDA
76,252

38,916

67,532


Nine Months Ended September 30,

2022

2021

2019
Net income (loss)
91,316

(192,457)

49,628
Interest expense
22,866

29,246

38,264
Income tax expense
949

1,433

1,939
Real estate related depreciation and amortization
81,097

77,209

87,805
EBITDA
196,228

(84,569)

177,636
Impairment losses
2,843

126,697

—
EBITDA re
199,071

42,128

177,636
Non-cash lease expense and other amortization
4,675

5,007

5,249
Professional fees and pre-opening costs related to Frenchman's Reef ⁽¹⁾
—

1,388

11,445
Uninsured costs related to natural disasters
—

187

—
Loss on early extinguishment of debt
9,698

—

2,373
Severance costs ⁽²⁾
(532)

(216)

—
Hotel manager transition items
247

651

1,050
Adjusted EBITDA
213,159

49,145

197,753

⁽¹⁾

Represents pre-opening costs related to the re-opening of Frenchman's Reef, as well as legal and professional fees and other costs incurred at Frenchman's Reef as a result of Hurricane Irma that are not covered by insurance.

⁽²⁾

Consists of severance costs incurred, and adjustments thereto, associated with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.

Hotel EBITDA and Hotel Adjusted EBITDA

The following table is a reconciliation of our GAAP net income to Hotel EBITDA and Hotel Adjusted EBITDA (in thousands):


Three Months Ended September 30,

2022

2021

2019
Net income (loss)
28,555

(1,771)

11,574
Interest expense
9,072

10,052

14,184
Income tax expense
312

2,371

1,217
Real estate related depreciation and amortization
27,053

25,555

29,474
EBITDA
64,992

36,207

56,449
Corporate expenses
7,516

8,341

6,318
Interest and other expense (income), net
152

11

(102)
Uninsured costs related to natural disasters
—

187

—
Professional fees and pre-opening costs related to Frenchman's Reef ⁽¹⁾
—

335

6,378
Loss on early extinguishment of debt
9,698

—

2,373
Hotel EBITDA
82,358

45,081

71,416
Non-cash lease expense and other amortization
1,551

1,664

1,750
Hotel manager transition items
11

523

582
Hotel Adjusted EBITDA
83,920

47,268

73,748


Nine Months Ended September 30,

2022

2021

2019
Net income (loss)
91,316

(192,457)

49,628
Interest expense
22,866

29,246

38,264
Income tax expense
949

1,433

1,939
Real estate related depreciation and amortization
81,097

77,209

87,805
EBITDA
196,228

(84,569)

177,636
Corporate expenses
22,275

23,790

20,785
Interest and other expense (income), net
1,044

(460)

(510)
Uninsured costs related to natural disasters
—

187

—
Loss on early extinguishment of debt
9,698

—

2,373
Professional fees and pre-opening costs related to Frenchman's Reef ⁽¹⁾
—

1,388

11,445
Impairment losses
2,843

126,697

—
Hotel EBITDA
232,088

67,033

211,729
Non-cash lease expense and other amortization
4,675

5,007

5,249
Hotel manager transition items
247

651

1,050
Severance costs ⁽²⁾
(532)

(216)

—
Hotel Adjusted EBITDA
236,478

72,475

218,028

⁽¹⁾

⁽²⁾

Consists of severance costs incurred, or adjustments thereto, associated with the elimination of positions at our hotels, which are classified within other hotel expenses on the consolidated statement of operations.

FFO and Adjusted FFO

The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands):


Three Months Ended September 30,

2022

2021

2019
Net income (loss)
28,555

(1,771)

11,574
Real estate related depreciation and amortization
27,053

25,555

29,474
Impairment losses, net of tax
—

(2,215)

—
FFO
55,608

21,569

41,048
Distribution to preferred stockholders
(2,454)

(2,454)

—
FFO available to common stock and unit holders
53,154

19,115

41,048
Non-cash lease expense and other amortization
1,551

1,664

1,750
Uninsured costs related to natural disasters
—

187

—
Professional fees and pre-opening costs related to Frenchman's Reef ⁽¹⁾
—

335

6,378
Loss on early extinguishment of debt
9,698

—

2,373
Hotel manager transition items
11

523

582
Fair value adjustments to interest rate swaps
(3,780)

(919)

3,143
Adjusted FFO available to common stock and unit holders
60,634

20,905

55,274
Adjusted FFO available to common stock and unit holders, per diluted share
0.28

0.10

0.27


Nine Months Ended September 30,

2022

2021

2019
Net income (loss)
91,316

(192,457)

49,628
Real estate related depreciation and amortization
81,097

77,209

87,805
Impairment losses, net of tax
2,843

127,282

—
FFO
175,256

12,034

137,433
Distribution to preferred stockholders
(7,362)

(7,362)

—
FFO available to common stock and unit holders
167,894

4,672

137,433
Non-cash lease expense and other amortization
4,675

5,007

5,249
Uninsured costs related to natural disasters
—

187

—
Professional fees and pre-opening costs related to Frenchman's Reef ⁽¹⁾
—

1,388

11,445
Hotel manager transition items
247

651

1,050
Loss on early extinguishment of debt
9,698

(216)

2,373
Severance costs ⁽²⁾
(532)

—

—
Fair value adjustments to interest rate swaps
(14,002)

(4,488)

4,790
Adjusted FFO available to common stock and unit holders
167,980

7,201

162,340
Adjusted FFO available to common stock and unit holders, per diluted share
0.78

0.03

0.80

⁽¹⁾

⁽²⁾

R econciliation of Comparable Operating Results

The following presents the revenues, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin together with comparable prior year results, which excludes the results for our 2021 dispositions (in thousands):


Three Months Ended September 30,

2022

2021

2019
Revenues
268,208

179,472

240,279
Hotel revenues from prior ownership ⁽¹⁾
(1,275)

19,413

17,036
Hotel revenues from sold hotels ⁽²⁾
—

—

(18,338)
Comparable Revenues
266,933

198,885

238,977






Hotel Adjusted EBITDA
83,920

47,268

73,748
Hotel Adjusted EBITDA from prior ownership ⁽¹⁾
291

6,026

3,601
Hotel Adjusted EBITDA from sold hotels ⁽²⁾
—

178

(4,938)
Comparable Hotel Adjusted EBITDA
84,211

53,472

72,411






Hotel Adjusted EBITDA Margin
31.29 %

26.34 %

30.69 %
Comparable Hotel Adjusted EBITDA Margin
31.55 %

26.89 %

30.30 %


Nine Months Ended September 30,

2022

2021

2019
Revenues
746,448

377,200

700,572
Hotel revenues from prior ownership ⁽¹⁾
(3,237)

55,816

52,876
Hotel revenues from sold hotels ⁽²⁾
430

(60)

(47,872)
Comparable Revenues
743,641

432,956

705,576






Hotel Adjusted EBITDA
236,478

72,475

218,028
Hotel Adjusted EBITDA from prior ownership ⁽¹⁾
(62)

14,445

12,426
Hotel Adjusted EBITDA from sold hotels ⁽²⁾
(106)

4,664

(17,758)
Comparable Hotel Adjusted EBITDA
236,310

91,584

212,696






Hotel Adjusted EBITDA Margin
31.68 %

19.21 %

31.12 %
Comparable Hotel Adjusted EBITDA Margin
31.78 %

21.15 %

30.15 %

⁽¹⁾

Amounts represent the pre-acquisition operating results for Bourbon Orleans Hotel from January 1, 2019 to July 28, 2021, Henderson Park Inn from January 1, 2019 to July 29, 2021, Henderson Beach Resort from January 1, 2019 to December 22, 2021 and Tranquility Bay Beachfront Resort from January 1, 2019 to January 5, 2022. The pre-acquisition operating results were obtained from the sellers of the hotels during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors.

⁽²⁾

Amounts represent the operating results of Frenchman's Reef and The Lexington Hotel.

Selected Quarterly Comparable Operating Information

The following tables are presented to provide investors with selected quarterly comparable operating information. The operating information includes historical quarterly operating results for our portfolio, excluding the Kimpton Fort Lauderdale Beach Resort as the hotel opened in April 2021 .


Quarter 1, 2019
Quarter 2, 2019
Quarter 3, 2019
Quarter 4, 2019
Full Year 2019
ADR
223.66
252.68
239.39
242.68
240.10
Occupancy
72.2 %
82.4 %
81.2 %
75.2 %
77.8 %
RevPAR
161.44
208.24
194.40
182.52
186.73
Total RevPAR
242.88
302.81
274.93
265.26
271.55
Revenues (in thousands)
206,370
260,227
238,977
230,571
936,145
Hotel Adjusted EBITDA (in thousands)
50,975
89,310
72,411
65,196
277,892
Hotel Adjusted EBITDA Margin
24.70 %
34.32 %
30.30 %
28.28 %
29.68 %
Available Rooms
849,674
859,374
869,216
869,216
3,447,480


Quarter 1, 2021
Quarter 2, 2021
Quarter 3, 2021
Quarter 4, 2021
Full Year 2021
ADR
236.48
241.35
249.83
265.54
250.62
Occupancy
29.6 %
49.3 %
65.4 %
61.2 %
51.5 %
RevPAR
70.08
119.00
163.45
162.47
129.10
Total RevPAR
101.74
171.53
228.71
233.25
184.30
Revenues (in thousands)
86,534
147,537
198,885
202,826
635,782
Hotel Adjusted EBITDA (in thousands)
2,156
35,956
53,472
45,017
136,601
Hotel Adjusted EBITDA Margin
2.49 %
24.37 %
26.89 %
22.19 %
21.49 %
Available Rooms
850,500
860,103
869,584
869,584
3,449,771


Quarter 1, 2022
Quarter 2, 2022
Quarter 3, 2022
ADR
279.09
297.36
281.36
Occupancy
55.8 %
74.9 %
75.1 %
RevPAR
155.76
222.70
211.40
Total RevPAR
231.84
324.68
306.35
Revenues (in thousands)
197,263
279,445
266,933
Hotel Adjusted EBITDA (in thousands)
51,121
100,978
84,211
Hotel Adjusted EBITDA Margin
25.92 %
36.14 %
31.55 %
Available Rooms
850,842
860,683
871,332

Market Capitalization as of September 30, 2022
(in thousands)
Enterprise Value





Common equity capitalization (at September 30, 2022 closing price of $7.51/share)

1,615,230
Preferred equity capitalization (at liquidation value of $25.00/share)

119,000
Consolidated debt (face amount)

1,368,651
Cash and cash equivalents

(313,871)
Total enterprise value

2,789,010
Share Reconciliation





Common shares outstanding

210,945
Operating partnership units

817
Unvested restricted stock held by management and employees

1,365
Share grants under deferred compensation plan

1,950
Combined shares and units

215,077

Debt Summary as of November 3, 2022

(dollars in thousands)

Loan

Interest Rate

Term

Outstanding
Principal

Maturity

Westin San Diego Bayview

3.94 %

Fixed

57,163

April 2023

Courtyard New York Manhattan / Midtown East

4.40 %

Fixed

76,445

August 2024

Worthington Renaissance Fort Worth Hotel

3.66 %

Fixed

75,933

May 2025

Hotel Clio

4.33 %

Fixed

57,692

July 2025

Westin Boston Seaport District

4.36 %

Fixed

179,208

November 2025

Unamortized debt issuance costs

(1,218)

Total mortgage debt, net of unamortized debt
issuance costs

445,223

Unsecured term loan

SOFR + 1.35%

Variable

500,000

January 2028

Unsecured term loan

SOFR + 1.35%

Variable

300,000

January 2025 ⁽¹⁾

Unamortized debt issuance costs

(907)

Unsecured term loans, net of unamortized debt
issuance costs

799,093

Senior unsecured credit facility

SOFR + 1.40%

Variable

—

September 2026 ⁽¹⁾

Total debt, net of unamortized debt issuance costs

1,244,316

Weighted-average interest rate of fixed rate debt

3.92 %

Total weighted-average interest rate ⁽²⁾

4.54 %

⁽¹⁾

May be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.

⁽²⁾

Weighted-average interest rate includes effect of interest rate swaps.


Monthly Operating Statistics ⁽¹⁾

Number of Rooms
ADR

Occupancy

RevPAR

July 2022
July 2021
B/(W) 2021

July 2022
July 2021
B/(W) 2021

July 2022
July 2021
B/(W) 2021













Total - 33 Hotels
9,471
286.18
259.43
10.3 %

74.9 %
70.2 %
4.7 %

214.31
182.00
17.8 %













Resort/Lifestyle - 20 Hotels
3,656
373.15
371.90
0.3 %

74.1 %
75.3 %
(1.2) %

276.43
280.02
(1.3) %


Number of Rooms
ADR
July 2019
B/(W) 2019

Occupancy
July 2019
B/(W) 2019

RevPAR
July 2019
B/(W) 2019













Total - 33 Hotels
9,471
286.18
235.11
21.7 %

74.9 %
82.4 %
(7.5) %

214.31
193.72
10.6 %













Resort/Lifestyle - 20 Hotels
3,656
373.15
262.65
42.1 %

74.1 %
81.6 %
(7.5) %

276.43
214.40
28.9 %


Number of Rooms
ADR
August 2021
B/(W) 2021

Occupancy
August 2021
B/(W) 2021

RevPAR
August 2021
B/(W) 2021


























Total - 33 Hotels
9,471
261.49
237.99
9.9 %

74.6 %
63.6 %
11.0 %

195.19
151.37
28.9 %













Resort/Lifestyle - 20 Hotels
3,656
333.49
335.02
(0.5) %

72.5 %
64.3 %
8.2 %

241.79
215.31
12.3 %


Number of Rooms
ADR
August 2019
B/(W) 2019

Occupancy
August 2019
B/(W) 2019

RevPAR
August 2019
B/(W) 2019


























Total - 33 Hotels
9,471
261.49
226.98
15.2 %

74.6 %
81.4 %
(6.8) %

195.19
184.80
5.6 %













Resort/Lifestyle - 20 Hotels
3,656
333.49
252.70
32.0 %

72.5 %
78.6 %
(6.1) %

241.79
198.53
21.8 %


Number of Rooms
ADR
September 2021
B/(W) 2021

Occupancy
September 2021
B/(W) 2021

RevPAR
September 2021
B/(W) 2021


























Total - 33 Hotels
9,471
296.63
251.13
18.1 %

75.9 %
62.4 %
13.5 %

225.13
156.76
43.6 %













Resort/Lifestyle - 20 Hotels
3,656
343.17
328.84
4.4 %

70.3 %
63.0 %
7.3 %

241.14
207.21
16.4 %


Number of Rooms
ADR
September 2019
B/(W) 2019

Occupancy
September 2019
B/(W) 2019

RevPAR
September 2019
B/(W) 2019


























Total - 33 Hotels
9,471
296.63
257.04
15.4 %

75.9 %
79.8 %
(3.9) %

225.13
205.01
9.8 %













Resort/Lifestyle - 20 Hotels
3,656
343.17
257.73
33.2 %

70.3 %
72.0 %
(1.7) %

241.14
185.66
29.9 %

⁽¹⁾

All periods presented include the pre-acquisition operating results of hotels acquired in 2021 and 2022 and excludes hotels sold in 2021 and the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021.


Operating Statistics – Third Quarter

Number of Rooms
ADR

Occupancy

RevPAR

3Q 2022
3Q 2021
B/(W) 2021

3Q 2022
3Q 2021
B/(W) 2021

3Q 2022
3Q 2021
B/(W) 2021


























Atlanta Marriott Alpharetta
318
155.35
119.77
29.7 %

60.7 %
63.2 %
(2.5) %

94.35
75.75
24.6 %
Bourbon Orleans Hotel
220
198.82
185.94
6.9 %

67.0 %
57.4 %
9.6 %

133.24
106.65
24.9 %
Cavallo Point, The Lodge at the Golden Gate
142
723.68
697.33
3.8 %

50.8 %
58.6 %
(7.8) %

367.33
408.40
(10.1) %
Chicago Marriott Downtown Magnificent Mile
1,200
253.84
204.01
24.4 %

72.9 %
54.4 %
18.5 %

185.02
110.97
66.7 %
Courtyard Denver Downtown
177
232.76
198.04
17.5 %

83.0 %
77.0 %
6.0 %

193.21
152.42
26.8 %
Courtyard New York Manhattan/Fifth Avenue
189
288.20
188.42
53.0 %

96.8 %
94.3 %
2.5 %

279.10
177.64
57.1 %
Courtyard New York Manhattan/Midtown East
321
338.74
221.26
53.1 %

90.7 %
77.5 %
13.2 %

307.21
171.52
79.1 %
Embassy Suites by Hilton Bethesda
272
140.80
118.48
18.8 %

56.9 %
41.1 %
15.8 %

80.12
48.73
64.4 %
Havana Cabana Key West
106
259.31
289.47
(10.4) %

80.0 %
85.6 %
(5.6) %

207.40
247.92
(16.3) %
Henderson Beach Resort
233
501.78
518.47
(3.2) %

75.6 %
74.8 %
0.8 %

379.49
387.81
(2.1) %
Henderson Park Inn
37
711.75
728.19
(2.3) %

81.3 %
93.7 %
(12.4) %

578.98
681.98
(15.1) %
Hilton Boston Downtown/Faneuil Hall
403
334.30
236.15
41.6 %

88.2 %
82.3 %
5.9 %

294.90
194.26
51.8 %
Hilton Burlington Lake Champlain
258
315.25
304.18
3.6 %

88.5 %
83.1 %
5.4 %

279.11
252.78
10.4 %
Hilton Garden Inn New York/Times Square Central
282
276.98
178.29
55.4 %

98.4 %
89.6 %
8.8 %

272.65
159.71
70.7 %
Hotel Clio
199
329.77
291.32
13.2 %

76.3 %
77.5 %
(1.2) %

251.56
225.78
11.4 %
Hotel Emblem San Francisco
96
244.50
163.36
49.7 %

80.7 %
61.4 %
19.3 %

197.39
100.30
96.8 %
Hotel Palomar Phoenix
242
172.35
166.94
3.2 %

61.7 %
56.3 %
5.4 %

106.41
93.95
13.3 %
Kimpton Fort Lauderdale Beach Resort
96
157.26
182.66
(13.9) %

57.5 %
46.9 %
10.6 %

90.40
85.67
5.5 %
Kimpton Shorebreak Resort
157
406.55
390.89
4.0 %

88.0 %
79.9 %
8.1 %

357.63
312.46
14.5 %
L'Auberge de Sedona
88
766.54
833.84
(8.1) %

68.8 %
73.0 %
(4.2) %

527.38
609.01
(13.4) %
Margaritaville Beach House Key West
186
353.53
382.97
(7.7) %

70.5 %
76.3 %
(5.8) %

249.32
292.20
(14.7) %
Orchards Inn Sedona
70
228.40
263.02
(13.2) %

65.4 %
66.1 %
(0.7) %

149.38
173.86
(14.1) %
Renaissance Charleston Historic District Hotel
167
340.67
322.94
5.5 %

85.6 %
89.8 %
(4.2) %

291.51
290.15
0.5 %
Salt Lake City Marriott Downtown at City Creek
510
173.45
166.22
4.3 %

67.9 %
56.4 %
11.5 %

117.76
93.79
25.6 %
The Gwen Hotel
311
329.43
271.16
21.5 %

78.7 %
71.3 %
7.4 %

259.15
193.23
34.1 %
The Hythe Vail
344
269.70
262.06
2.9 %

64.9 %
45.9 %
19.0 %

174.94
120.41
45.3 %
The Landing Lake Tahoe Resort & Spa
82
670.73
725.58
(7.6) %

63.1 %
42.1 %
21.0 %

423.03
305.18
38.6 %
The Lodge at Sonoma Resort
182
502.90
424.58
18.4 %

70.5 %
72.0 %
(1.5) %

354.59
305.73
16.0 %
Tranquility Bay Beachfront Resort
103
588.88
576.74
2.1 %

63.7 %
74.0 %
(10.3) %

375.17
427.01
(12.1) %
Westin Boston Waterfront
793
249.19
210.10
18.6 %

86.4 %
63.9 %
22.5 %

215.40
134.26
60.4 %
Westin Fort Lauderdale Beach Resort
433
201.15
200.44
0.4 %

67.8 %
57.6 %
10.2 %

136.47
115.37
18.3 %
Westin San Diego Bayview
436
216.33
174.42
24.0 %

87.4 %
74.2 %
13.2 %

189.13
129.40
46.2 %
Westin Washington D.C. City Center
410
196.28
143.36
36.9 %

61.3 %
43.7 %
17.6 %

120.35
62.66
92.1 %
Worthington Renaissance Fort Worth Hotel
504
176.37
146.48
20.4 %

65.8 %
62.7 %
3.1 %

115.99
91.79
26.4 %
Comparable Total ⁽¹⁾
9,471
281.36
249.83
12.6 %

75.1 %
65.4 %
9.7 %

211.40
163.45
29.3 %

⁽¹⁾

Amounts include the pre-acquisition operating results of hotels acquired in 2021 and 2022 and excludes hotels sold in 2021 and the Kimpton Fort Lauderdale Beach Resort as the hotel opened during 2021.


Operating Statistics – Third Quarter

Number of Rooms
ADR

Occupancy

RevPAR

3Q 2022
3Q 2019
B/(W) 2019

3Q 2022
3Q 2019
B/(W) 2019

3Q 2022
3Q 2019
B/(W) 2019


























Atlanta Marriott Alpharetta
318
155.35
163.80
(5.2) %

60.7 %
72.9 %
(12.2) %

94.35
119.41
(21.0) %
Bourbon Orleans Hotel
220
198.82
193.21
2.9 %

67.0 %
75.3 %
(8.3) %

133.24
145.55
(8.5) %
Cavallo Point, The Lodge at the Golden Gate
142
723.68
469.36
54.2 %

50.8 %
68.1 %
(17.3) %

367.33
319.72
14.9 %
Chicago Marriott Downtown Magnificent Mile
1,200
253.84
239.22
6.1 %

72.9 %
82.5 %
(9.6) %

185.02
197.32
(6.2) %
Courtyard Denver Downtown
177
232.76
218.40
6.6 %

83.0 %
85.9 %
(2.9) %

193.21
187.70
2.9 %
Courtyard New York Manhattan/Fifth Avenue
189
288.20
256.72
12.3 %

96.8 %
91.6 %
5.2 %

279.10
235.21
18.7 %
Courtyard New York Manhattan/Midtown East
321
338.74
266.37
27.2 %

90.7 %
97.4 %
(6.7) %

307.21
259.56
18.4 %
Embassy Suites by Hilton Bethesda
272
140.80
167.95
(16.2) %

56.9 %
70.4 %
(13.5) %

80.12
118.20
(32.2) %
Havana Cabana Key West
106
259.31
170.13
52.4 %

80.0 %
85.9 %
(5.9) %

207.40
146.13
41.9 %
Henderson Beach Resort
233
501.78
333.54
50.4 %

75.6 %
65.7 %
9.9 %

379.49
219.30
73.0 %
Henderson Park Inn
37
711.75
520.73
36.7 %

81.3 %
87.7 %
(6.4) %

578.98
456.78
26.8 %
Hilton Boston Downtown/Faneuil Hall
403
334.30
342.48
(2.4) %

88.2 %
92.6 %
(4.4) %

294.90
317.16
(7.0) %
Hilton Burlington Lake Champlain
258
315.25
244.03
29.2 %

88.5 %
90.1 %
(1.6) %

279.11
219.97
26.9 %
Hilton Garden Inn New York/Times Square Central
282
276.98
249.41
11.1 %

98.4 %
98.7 %
(0.3) %

272.65
246.24
10.7 %
Hotel Clio
199
329.77
262.04
25.8 %

76.3 %
85.9 %
(9.6) %

251.56
225.20
11.7 %
Hotel Emblem San Francisco
96
244.50
247.06
(1.0) %

80.7 %
91.7 %
(11.0) %

197.39
226.47
(12.8) %
Hotel Palomar Phoenix
242
172.35
143.55
20.1 %

61.7 %
73.4 %
(11.7) %

106.41
105.30
1.1 %
Kimpton Shorebreak Resort
157
406.55
306.54
32.6 %

88.0 %
81.8 %
6.2 %

357.63
250.72
42.6 %
L'Auberge de Sedona
88
766.54
533.79
43.6 %

68.8 %
71.7 %
(2.9) %

527.38
382.61
37.8 %
Margaritaville Beach House Key West
186
353.53
205.47
72.1 %

70.5 %
61.4 %
9.1 %

249.32
126.16
97.6 %
Orchards Inn Sedona
70
228.40
207.09
10.3 %

65.4 %
74.3 %
(8.9) %

149.38
153.97
(3.0) %
Renaissance Charleston Historic District Hotel
167
340.67
239.40
42.3 %

85.6 %
77.9 %
7.7 %

291.51
186.38
56.4 %
Salt Lake City Marriott Downtown at City Creek
510
173.45
179.29
(3.3) %

67.9 %
76.1 %
(8.2) %

117.76
136.50
(13.7) %
The Gwen Hotel
311
329.43
280.57
17.4 %

78.7 %
91.3 %
(12.6) %

259.15
256.27
1.1 %
The Hythe Vail
344
269.70
212.25
27.1 %

64.9 %
70.4 %
(5.5) %

174.94
149.45
17.1 %
The Landing Lake Tahoe Resort & Spa
82
670.73
376.60
78.1 %

63.1 %
86.4 %
(23.3) %

423.03
325.43
30.0 %
The Lodge at Sonoma Resort
182
502.90
349.59
43.9 %

70.5 %
83.8 %
(13.3) %

354.59
292.92
21.1 %
Tranquility Bay Beachfront Resort
103
588.88
331.66
77.6 %

63.7 %
80.5 %
(16.8) %

375.17
267.05
40.5 %
Westin Boston Waterfront
793
249.19
261.88
(4.8) %

86.4 %
84.5 %
1.9 %

215.40
221.26
(2.6) %
Westin Fort Lauderdale Beach Resort
433
201.15
144.14
39.6 %

67.8 %
69.6 %
(1.8) %

136.47
100.29
36.1 %
Westin San Diego Bayview
436
216.33
192.85
12.2 %

87.4 %
86.0 %
1.4 %

189.13
165.84
14.0 %
Westin Washington D.C. City Center
410
196.28
178.69
9.8 %

61.3 %
90.7 %
(29.4) %

120.35
162.01
(25.7) %
Worthington Renaissance Fort Worth Hotel
504
176.37
177.73
(0.8) %

65.8 %
69.5 %
(3.7) %

115.99
123.48
(6.1) %
Comparable Total ⁽¹⁾
9,471
281.36
239.39
17.5 %

75.1 %
81.2 %
(6.1) %

211.40
194.40
8.7 %

⁽¹⁾


Operating Statistics – Year to Date

Number of Rooms
ADR

Occupancy

RevPAR

YTD 2022
YTD 2021
B/(W) 2021

YTD 2022
YTD 2021
B/(W) 2021

YTD 2022
YTD 2021
B/(W) 2021


























Atlanta Marriott Alpharetta
318
150.91
109.44
37.9 %

54.9 %
45.3 %
9.6 %

82.78
49.60
66.9 %
Bourbon Orleans Hotel
220
231.33
186.55
24.0 %

60.9 %
25.3 %
35.6 %

140.87
47.19
198.5 %
Cavallo Point, The Lodge at the Golden Gate
142
714.46
634.83
12.5 %

51.7 %
41.3 %
10.4 %

369.12
262.11
40.8 %
Chicago Marriott Downtown Magnificent Mile
1,200
241.50
194.21
24.3 %

53.9 %
25.1 %
28.8 %

130.14
48.76
166.9 %
Courtyard Denver Downtown
177
208.00
152.90
36.0 %

75.2 %
59.5 %
15.7 %

156.32
91.05
71.7 %
Courtyard New York Manhattan/Fifth Avenue
189
251.64
181.14
38.9 %

92.0 %
40.9 %
51.1 %

231.47
74.06
212.5 %
Courtyard New York Manhattan/Midtown East
321
299.94
171.24
75.2 %

81.3 %
75.4 %
5.9 %

243.72
129.17
88.7 %
Embassy Suites by Hilton Bethesda
272
144.33
111.73
29.2 %

48.8 %
30.6 %
18.2 %

70.50
34.20
106.1 %
Havana Cabana Key West
106
337.36
284.07
18.8 %

87.9 %
91.1 %
(3.2) %

296.70
258.91
14.6 %
Henderson Park Resort
233
494.31
456.26
8.3 %

69.4 %
68.9 %
0.5 %

343.16
314.53
9.1 %
Henderson Park Inn
37
668.31
525.19
27.3 %

77.7 %
88.6 %
(10.9) %

519.31
465.14
11.6 %
Hilton Boston Downtown/Faneuil Hall
403
291.00
193.40
50.5 %

79.0 %
52.9 %
26.1 %

229.86
102.27
124.8 %
Hilton Burlington Lake Champlain
258
246.52
230.48
7.0 %

74.7 %
59.4 %
15.3 %

184.15
136.85
34.6 %
Hilton Garden Inn New York/Times Square Central
282
247.70
169.24
46.4 %

91.5 %
44.2 %
47.3 %

226.63
74.86
202.7 %
Hotel Clio
199
305.20
256.72
18.9 %

69.6 %
61.9 %
7.7 %

212.32
158.94
33.6 %
Hotel Emblem San Francisco
96
227.72
152.78
49.1 %

73.5 %
38.3 %
35.2 %

167.44
58.49
186.3 %
Hotel Palomar Phoenix
242
215.33
158.13
36.2 %

67.9 %
55.6 %
12.3 %

146.24
87.86
66.4 %
Kimpton Fort Lauderdale Beach Resort ⁽¹⁾
96
199.10
196.52
1.3 %

61.4 %
42.5 %
18.9 %

122.19
83.62
46.1 %
Kimpton Shorebreak Resort
157
357.34
322.91
10.7 %

81.7 %
66.0 %
15.7 %

292.03
213.24
36.9 %
L'Auberge de Sedona
88
964.94
855.47
12.8 %

72.6 %
80.9 %
(8.3) %

700.49
692.17
1.2 %
Margaritaville Beach House Key West
186
469.76
384.06
22.3 %

83.1 %
85.2 %
(2.1) %

390.37
327.16
19.3 %
Orchards Inn Sedona
70
298.31
287.73
3.7 %

66.4 %
69.9 %
(3.5) %

197.97
201.15
(1.6) %
Renaissance Charleston Historic District Hotel
167
357.66
299.52
19.4 %

86.7 %
79.2 %
7.5 %

310.06
237.18
30.7 %
Salt Lake City Marriott Downtown at City Creek
510
176.93
141.35
25.2 %

60.2 %
43.3 %
16.9 %

106.44
61.25
73.8 %
The Gwen Hotel
311
296.79
244.80
21.2 %

72.4 %
48.7 %
23.7 %

214.85
119.29
80.1 %
The Hythe Vail
344
416.30
317.33
31.2 %

56.8 %
46.0 %
10.8 %

236.33
145.93
61.9 %
The Landing Lake Tahoe Resort & Spa
82
527.40
486.70
8.4 %

52.8 %
50.0 %
2.8 %

278.45
243.57
14.3 %
The Lodge at Sonoma Resort
182
464.17
345.68
34.3 %

63.4 %
56.7 %
6.7 %

294.12
195.99
50.1 %
Tranquility Bay Beachfront Resort ⁽²⁾
103
784.86
626.58
25.3 %

76.0 %
84.4 %
(8.4) %

596.75
528.93
12.8 %
Westin Boston Waterfront
793
238.48
180.87
31.9 %

75.5 %
38.6 %
36.9 %

180.00
69.80
157.9 %
Westin Fort Lauderdale Beach Resort
433
271.85
236.88
14.8 %

79.2 %
60.2 %
19.0 %

215.27
142.53
51.0 %
Westin San Diego Bayview
436
203.80
157.46
29.4 %

74.1 %
51.3 %
22.8 %

151.06
80.71
87.2 %
Westin Washington D.C. City Center
410
210.68
139.24
51.3 %

58.8 %
25.8 %
33.0 %

123.90
35.88
245.3 %
Worthington Renaissance Fort Worth Hotel
504
186.23
148.82
25.1 %

68.0 %
51.2 %
16.8 %

126.62
76.19
66.2 %
Comparable Total ⁽³⁾
9,471
286.56
244.24
17.3 %

68.7 %
48.3 %
20.4 %

196.84
117.85
67.0 %

⁽¹⁾

Hotel was acquired on April 1, 2022. Amounts reflect the operating results for the period from April 1, 2022 to September 30, 2022 and April 1, 2021 to September 30, 2021.

⁽²⁾

Hotel was acquired on January 6, 2022. Amounts reflect the operating results for the period from January 6, 2022 to September 30, 2022 and January 6, 2021 to September 30, 2021.

⁽³⁾


Operating Statistics – Year to Date

Number of Rooms
ADR

Occupancy

RevPAR

YTD 2022
YTD 2019
B/(W) 2019

YTD 2022
YTD 2019
B/(W) 2019

YTD 2022
YTD 2019
B/(W) 2019


























Atlanta Marriott Alpharetta
318
150.91
166.97
(9.6) %

54.9 %
72.7 %
(17.8) %

82.78
121.42
(31.8) %
Bourbon Orleans Hotel
220
231.33
217.20
6.5 %

60.9 %
82.8 %
(21.9) %

140.87
179.87
(21.7) %
Cavallo Point, The Lodge at the Golden Gate
142
714.46
458.60
55.8 %

51.7 %
65.2 %
(13.5) %

369.12
298.90
23.5 %
Chicago Marriott Downtown Magnificent Mile
1,200
241.50
225.86
6.9 %

53.9 %
72.7 %
(18.8) %

130.14
164.20
(20.7) %
Courtyard Denver Downtown
177
208.00
200.80
3.6 %

75.2 %
81.1 %
(5.9) %

156.32
162.75
(4.0) %
Courtyard New York Manhattan/Fifth Avenue
189
251.64
248.54
1.2 %

92.0 %
86.7 %
5.3 %

231.47
215.49
7.4 %
Courtyard New York Manhattan/Midtown East
321
299.94
244.82
22.5 %

81.3 %
95.6 %
(14.3) %

243.72
234.03
4.1 %
Embassy Suites by Hilton Bethesda
272
144.33
176.98
(18.4) %

48.8 %
73.0 %
(24.2) %

70.50
129.23
(45.4) %
Havana Cabana Key West
106
337.36
210.19
60.5 %

87.9 %
90.3 %
(2.4) %

296.70
189.78
56.3 %
Henderson Beach Resort
233
494.31
315.85
56.5 %

69.4 %
60.0 %
9.4 %

343.16
189.66
80.9 %
Henderson Park Inn
37
668.31
480.49
39.1 %

77.7 %
77.1 %
0.6 %

519.31
370.28
40.2 %
Hilton Boston Downtown/Faneuil Hall
403
291.00
308.79
(5.8) %

79.0 %
88.9 %
(9.9) %

229.86
274.58
(16.3) %
Hilton Burlington Lake Champlain
258
246.52
193.56
27.4 %

74.7 %
81.7 %
(7.0) %

184.15
158.11
16.5 %
Hilton Garden Inn New York/Times Square Central
282
247.70
235.87
5.0 %

91.5 %
98.5 %
(7.0) %

226.63
232.29
(2.4) %
Hotel Clio
199
305.20
258.63
18.0 %

69.6 %
70.8 %
(1.2) %

212.32
183.12
15.9 %
Hotel Emblem San Francisco
96
227.72
240.00
(5.1) %

73.5 %
78.9 %
(5.4) %

167.44
189.34
(11.6) %
Hotel Palomar Phoenix
242
215.33
185.74
15.9 %

67.9 %
82.7 %
(14.8) %

146.24
153.51
(4.7) %
Kimpton Shorebreak Resort
157
357.34
268.57
33.1 %

81.7 %
78.7 %
3.0 %

292.03
211.27
38.2 %
L'Auberge de Sedona
88
964.94
596.05
61.9 %

72.6 %
78.6 %
(6.0) %

700.49
468.42
49.5 %
Margaritaville Beach House Key West
186
469.76
259.71
80.9 %

83.1 %
80.5 %
2.6 %

390.37
209.08
86.7 %
Orchards Inn Sedona
70
298.31
244.33
22.1 %

66.4 %
77.7 %
(11.3) %

197.97
189.96
4.2 %
Renaissance Charleston Historic District Hotel
167
357.66
260.92
37.1 %

86.7 %
84.0 %
2.7 %

310.06
219.09
41.5 %
Salt Lake City Marriott Downtown at City Creek
510
176.93
173.43
2.0 %

60.2 %
69.4 %
(9.2) %

106.44
120.42
(11.6) %
The Gwen Hotel
311
296.79
256.86
15.5 %

72.4 %
83.3 %
(10.9) %

214.85
213.95
0.4 %
The Hythe Vail
344
416.30
298.07
39.7 %

56.8 %
65.6 %
(8.8) %

236.33
195.66
20.8 %
The Landing Lake Tahoe Resort & Spa
82
527.40
321.13
64.2 %

52.8 %
65.4 %
(12.6) %

278.45
210.11
32.5 %
The Lodge at Sonoma Resort
182
464.17
310.27
49.6 %

63.4 %
74.3 %
(10.9) %

294.12
230.57
27.6 %
Tranquility Bay Beachfront Resort ⁽¹⁾
103
784.86
418.48
87.6 %

76.0 %
87.3 %
(11.3) %

596.75
365.46
63.3 %
Westin Boston Waterfront
793
238.48
251.43
(5.2) %

75.5 %
78.4 %
(2.9) %

180.00
197.05
(8.7) %
Westin Fort Lauderdale Beach Resort
433
271.85
204.38
33.0 %

79.2 %
81.8 %
(2.6) %

215.27
167.26
28.7 %
Westin San Diego Bayview
436
203.80
194.30
4.9 %

74.1 %
82.0 %
(7.9) %

151.06
159.39
(5.2) %
Westin Washington D.C. City Center
410
210.68
206.84
1.9 %

58.8 %
86.9 %
(28.1) %

123.90
179.77
(31.1) %
Worthington Renaissance Fort Worth Hotel
504
186.23
186.24
— %

68.0 %
75.4 %
(7.4) %

126.62
140.50
(9.9) %













Comparable Total ⁽²⁾
9,471
286.56
239.27
19.8 %

68.7 %
78.6 %
(9.9) %

196.84
188.15
4.6 %

⁽¹⁾

Hotel was acquired on January 6, 2022. Amounts reflect the operating results for the period from January 6, 2022 to September 30, 2022 and January 6, 2019 to September 30, 2019.

⁽²⁾



Hotel Adjusted EBITDA Reconciliation - Third Quarter 2022






Days of Operation


Net Income / (Loss)
Plus:
Plus:
Plus:
Equals: Hotel Adjusted EBITDA


Total Revenues

Depreciation
Interest Expense
Adjustments ⁽¹⁾
Atlanta Marriott Alpharetta

92
3,654

843
369
—
—
1,212
Bourbon Orleans Hotel

92
3,763

218
838
—
6
1,062
Cavallo Point, The Lodge at the Golden Gate

92
10,963

808
1,844
—
94
2,746
Chicago Marriott Downtown Magnificent Mile

92
31,715

10,640
3,838
6
(397)
14,087
Courtyard Denver Downtown

92
3,448

1,398
377
—
—
1,775
Courtyard New York Manhattan/Fifth Avenue

92
4,907

490
332
—
253
1,075
Courtyard New York Manhattan/Midtown East

92
9,332

1,742
485
915
—
3,142
Embassy Suites by Hilton Bethesda

92
2,378

(2,396)
567
—
1,477
(352)
Havana Cabana Key West

92
2,715

526
276
—
—
802
Henderson Beach Resort

92
13,113

2,703
990
—
—
3,693
Henderson Park Inn

92
2,750

1,010
228
—
—
1,238
Hilton Boston Downtown/Faneuil Hall

92
11,999

3,846
1,000
—
—
4,846
Hilton Burlington Lake Champlain

92
8,088

3,323
574
—
—
3,897
Hilton Garden Inn New York/Times Square Central

92
7,727

1,903
634
—
—
2,537
Hotel Clio

92
7,683

864
876
650
5
2,395
Hotel Emblem San Francisco

92
2,065

132
296
—
—
428
Hotel Palomar Phoenix

92
3,609

(551)
649
—
181
279
Kimpton Fort Lauderdale Beach Resort

92
1,275

(585)
294
—
—
(291)
Kimpton Shorebreak Resort

92
6,941

2,657
396
—
—
3,053
L'Auberge de Sedona

92
6,727

614
352
—
—
966
Margaritaville Beach House Key West

92
5,834

766
795
—
—
1,561
Orchards Inn Sedona

92
1,772

27
85
—
42
154
Renaissance Charleston Historic District Hotel

92
5,571

1,910
454
—
—
2,364
Salt Lake City Marriott Downtown at City Creek

92
7,649

1,620
571
621
11
2,823
The Gwen Hotel

92
11,129

3,115
1,062
—
—
4,177
The Hythe Vail

92
9,529

1,248
1,207
—
—
2,455
The Landing Lake Tahoe Resort & Spa

92
5,007

2,144
218
—
—
2,362
The Lodge at Sonoma Resort

92
9,203

1,966
645
261
—
2,872
Tranquility Bay Beachfront Resort

92
4,429

714
412
—
—
1,126
Westin Boston Seaport District

92
24,663

2,904
2,448
2,048
(122)
7,278
Westin Fort Lauderdale Beach Resort

92
13,223

987
967
—
—
1,954
Westin San Diego Bayview

92
9,415

1,808
842
587
—
3,237
Westin Washington D.C. City Center

92
6,019

(1,189)
1,026
597
—
434
Worthington Renaissance Fort Worth Hotel

92
9,913

690
1,106
736
1
2,533
Total


268,208

48,895
27,053
6,421
1,551
83,920
Less: Non Comparable Hotel ⁽²⁾


(1,275)

585
(294)
—
—
291
Comparable Total


266,933

49,480
26,759
6,421
1,551
84,211

⁽¹⁾

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

⁽²⁾

Represents the operating results of the Kimpton Fort Lauderdale Beach Resort since the hotel opened during 2021.



Hotel Adjusted EBITDA Reconciliation - Third Quarter 2021


Days of Operation


Net Income / (Loss)
Plus:
Plus:
Plus:
Equals: Hotel


Total Revenues

Depreciation
Interest Expense
Adjustments ⁽¹⁾
Adjusted EBITDA
Atlanta Marriott Alpharetta

92
2,843

426
342
—
—
768
Bourbon Orleans Hotel

64
1,646

(91)
543
—
4
456
Cavallo Point, The Lodge at the Golden Gate

92
11,455

1,697
2,023
—
94
3,814
Chicago Marriott Downtown Magnificent Mile

92
17,320

1,508
4,069
6
(397)
5,186
Courtyard Denver Downtown

92
2,755

959
376
—
—
1,335
Courtyard New York Manhattan/Fifth Avenue

92
3,146

(973)
329
—
253
(391)
Courtyard New York Manhattan/Midtown East

92
5,211

(938)
479
934
—
475
Embassy Suites by Hilton Bethesda

92
1,553

(2,390)
532
—
1,490
(368)
Frenchman's Reef & Morning Star Marriott Beach Resort

—
—

—
—
—
—
—
Havana Cabana Key West

92
3,282

1,129
267
—
—
1,396
Henderson Park Inn

63
1,813

696
150
—
—
846
Hilton Boston Downtown/Faneuil Hall

92
7,748

980
1,052
—
—
2,032
Hilton Burlington Lake Champlain

92
6,529

2,683
571
—
—
3,254
Hilton Garden Inn New York/Times Square Central

92
4,236

(918)
765
—
—
(153)
Hotel Clio

92
6,507

757
779
665
5
2,206
Hotel Emblem San Francisco

92
1,027

(305)
307
—
—
2
Hotel Palomar Phoenix

92
3,416

(410)
672
—
282
544
Kimpton Shorebreak Resort

92
6,345

2,121
410
—
—
2,531
L'Auberge de Sedona

92
7,298

1,790
371
—
—
2,161
Margaritaville Beach House Key West

92
6,354

2,103
728
—
—
2,831
Orchards Inn Sedona

92
1,932

298
82
—
42
422
Renaissance Charleston Historic District Hotel

92
5,729

1,933
462
—
—
2,395
Salt Lake City Marriott Downtown at City Creek

92
5,932

1,017
513
520
11
2,061
The Gwen Hotel

92
8,616

1,605
1,085
—
—
2,690
The Hythe Vail

92
4,971

(224)
1,064
—
—
840
The Landing Lake Tahoe Resort & Spa

92
3,501

1,055
434
—
—
1,489
The Lexington Hotel

—
—

(178)
—
—
—
(178)
The Lodge at Sonoma Resort

92
7,674

1,452
620
268
—
2,340
Westin Boston Seaport District

92
14,033

(2,624)
2,531
2,094
(122)
1,879
Westin Fort Lauderdale Beach Resort

92
10,875

515
1,064
—
—
1,579
Westin San Diego Bayview

92
6,335

551
802
604
—
1,957
Westin Washington D.C. City Center

92
2,858

(2,011)
1,019
617
—
(375)
Worthington Renaissance Fort Worth Hotel

92
6,532

(626)
1,114
753
2
1,243
Total


179,472

13,587
25,555
6,461
1,664
47,268
Add: Prior Ownership Results ⁽²⁾


19,413

4,662
1,364
—
—
6,026
Less: Sold Hotels ⁽³⁾


—

178
—
—
—
178
Comparable Total


198,885

18,427
26,919
6,461
1,664
53,472

⁽¹⁾

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

⁽²⁾

Represents the pre-acquisition operating results of our 2021 and 2022 acquisitions (excluding the Kimpton Fort Lauderdale Beach Resort).

⁽³⁾

Represents the operating results of Frenchman's Reef and The Lexington Hotel.



Hotel Adjusted EBITDA Reconciliation - Third Quarter 2019


Days of Operation


Net Income / (Loss)
Plus:
Plus:
Plus:
Equals: Hotel


Total Revenues

Depreciation
Interest Expense
Adjustments ⁽¹⁾
Adjusted EBITDA
Atlanta Marriott Alpharetta

92
4,787

1,123
455
—
—
1,578
Cavallo Point, The Lodge at the Golden Gate

92
10,633

1,327
1,828
—
79
3,234
Chicago Marriott Downtown Magnificent Mile

92
32,503

6,887
4,166
(8)
(397)
10,648
Courtyard Denver Downtown

92
3,344

1,393
298
—
—
1,691
Courtyard New York Manhattan/Fifth Avenue

92
4,191

103
449
—
253
805
Courtyard New York Manhattan/Midtown East

92
7,909

570
697
970
—
2,237
Embassy Suites by Hilton Bethesda

92
3,880

(1,078)
471
—
1,514
907
Frenchman's Reef & Morning Star Marriott Beach Resort

—
1

(2)
—
—
—
(2)
Havana Cabana Key West

92
1,996

87
260
—
—
347
Hilton Boston Downtown/Faneuil Hall

92
12,504

4,271
1,231
—
—
5,502
Hilton Burlington Lake Champlain

92
6,121

2,451
486
—
—
2,937
Hilton Garden Inn New York/Times Square Central

92
6,508

944
838
—
—
1,782
Hotel Clio

92
5,907

269
746
692
6
1,713
Hotel Emblem San Francisco

92
2,305

399
297
—
—
696
Hotel Palomar Phoenix

92
4,325

(424)
662
39
295
572
Kimpton Shorebreak Resort

92
5,281

1,808
348
—
40
2,196
L'Auberge de Sedona

92
5,636

727
508
—
—
1,235
Margaritaville Beach House Key West

92
2,666

(55)
351
—
—
296
Orchards Inn Sedona

92
1,598

(11)
238
—
42
269
Renaissance Charleston Historic District Hotel

92
3,398

642
421
—
(32)
1,031
Salt Lake City Marriott Downtown at City Creek

92
8,849

2,368
575
608
—
3,551
The Gwen Hotel

92
10,771

3,256
1,077
—
—
4,333
The Hythe Vail

92
8,109

1,140
1,011
—
—
2,151
The Landing Lake Tahoe Resort & Spa

92
4,060

1,086
418
—
—
1,504
The Lexington Hotel

92
18,337

1,319
3,607
6
8
4,940
The Lodge at Sonoma Resort

92
7,549

2,070
508
281
—
2,859
Westin Boston Seaport District

92
24,009

2,413
2,418
2,182
(60)
6,953
Westin Fort Lauderdale Beach Resort

92
8,131

(949)
1,675
—
—
726
Westin San Diego Bayview

92
8,654

1,439
1,135
637
—
3,211
Westin Washington D.C. City Center

92
7,829

280
1,310
663
—
2,253
Worthington Renaissance Fort Worth Hotel

92
8,488

(132)
990
784
2
1,644
Total


240,279

35,721
29,474
6,854
1,750
73,748
Add: Prior Ownership Results ⁽²⁾


17,036

1,862
1,739
—
—
3,601
Less: Sold Hotels ⁽³⁾


(18,338)

(1,317)
(3,607)
(6)
(8)
(4,938)
Comparable Total


238,977

36,266
27,606
6,848
1,742
72,411

⁽¹⁾

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

⁽²⁾

Represents the pre-acquisition operating results of our 2021 and 2022 acquisitions (excluding the Kimpton Fort Lauderdale Beach Resort).

⁽³⁾

Represents the operating results of Frenchman's Reef and The Lexington Hotel.




Hotel Adjusted EBITDA Reconciliation - Year to Date 2022


Days of Operation
Total Revenues

Net Income / (Loss)
Plus: Depreciation
Plus: Interest Expense
Plus: Adjustments ⁽¹⁾
Equals: Hotel Adjusted EBITDA



Atlanta Marriott Alpharetta

273
9,908

2,010
1,112
—
—
3,122
Bourbon Orleans Hotel

273
11,027

1,429
2,486
—
19
3,934
Cavallo Point, The Lodge at the Golden Gate

273
33,993

4,712
5,535
—
281
10,528
Chicago Marriott Downtown Magnificent Mile

273
67,600

12,805
11,686
17
(1,192)
23,316
Courtyard Denver Downtown

273
8,453

2,917
1,129
—
—
4,046
Courtyard New York Manhattan/Fifth Avenue

273
12,144

(141)
994
—
760
1,613
Courtyard New York Manhattan/Midtown East

273
22,049

1,178
1,456
2,730
—
5,364
Embassy Suites by Hilton Bethesda

273
6,233

(7,305)
1,681
—
4,449
(1,175)
Havana Cabana Key West

273
11,119

4,044
830
—
—
4,874
Henderson Beach Resort

273
35,406

5,599
2,913
—
—
8,512
Henderson Park Inn

273
7,187

2,261
666
—
—
2,927
Hilton Boston Downtown/Faneuil Hall

273
28,099

6,564
3,072
—
—
9,636
Hilton Burlington Lake Champlain

273
16,350

4,689
1,698
—
—
6,387
Hilton Garden Inn New York/Times Square Central

273
19,138

3,348
1,878
—
—
5,226
Hotel Clio

273
19,594

709
2,527
1,941
14
5,191
Hotel Emblem San Francisco

273
5,297

(112)
891
—
—
779
Hotel Palomar Phoenix

273
15,334

1,978
1,995
—
548
4,521
Kimpton Fort Lauderdale Beach Resort

183
3,237

(547)
609
—
—
62
Kimpton Shorebreak Resort

273
17,721

5,892
1,201
—
—
7,093
L'Auberge de Sedona

273
25,120

7,056
1,101
—
—
8,157
Margaritaville Beach House Key West

273
25,524

9,623
2,387
—
—
12,010
Orchards Inn Sedona

273
6,788

1,724
254
—
126
2,104
Renaissance Charleston Historic District Hotel

273
17,672

6,528
1,372
—
—
7,900
Salt Lake City Marriott Downtown at City Creek

273
20,333

4,064
1,657
1,578
32
7,331
The Gwen Hotel

273
27,302

5,168
3,207
—
—
8,375
The Hythe Vail

273
32,526

7,491
3,607
—
—
11,098
The Landing Lake Tahoe Resort & Spa

273
9,947

3,256
793
—
—
4,049
The Lodge at Sonoma Resort

273
23,733

4,335
1,905
782
—
7,022
Tranquility Bay Beachfront Resort

268
19,650

5,325
1,277
—
—
6,602
Westin Boston Seaport District

273
63,111

2,872
7,346
6,112
(367)
15,963
Westin Fort Lauderdale Beach Resort

273
53,957

16,539
2,942
—
—
19,481
Westin San Diego Bayview

273
22,978

3,507
2,484
1,756
—
7,747
Westin Washington D.C. City Center

273
17,814

(1,145)
3,078
1,781
—
3,714
Worthington Renaissance Fort Worth Hotel

273
30,104

3,440
3,328
2,196
5
8,969
Total


746,448

131,813
81,097
18,893
4,675
236,478
Less: Non-Comparable Hotel ⁽²⁾


(3,237)

547
(609)
—
—
(62)
Add: Prior Ownership Results ⁽³⁾


430

(116)
10
—
—
(106)
Comparable Total


743,641

132,244
80,498
18,893
4,675
236,310

⁽¹⁾

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

⁽²⁾

Represents the operating results of the Kimpton Fort Lauderdale Beach Resort since the hotel opened during 2021.

⁽³⁾

Represents the pre-acquisition operating results of our 2021 and 2022 acquisitions (excluding the Kimpton Fort Lauderdale Beach Resort).



Hotel Adjusted EBITDA Reconciliation - Year to Date 2021






Plus:
Plus:
Plus:
Equals:


Days of Operation
Total Revenues

Net Income / (Loss)
Depreciation
Interest Expense
Adjustments ⁽¹⁾
Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta

273
5,374

(308)
1,037
—
—
729
Bourbon Orleans Hotel

64
1,646

(91)
543
—
4
456
Cavallo Point, The Lodge at the Golden Gate

273
21,678

885
5,698
—
281
6,864
Chicago Marriott Downtown Magnificent Mile

171
22,544

(10,294)
12,247
54
(1,192)
815
Courtyard Denver Downtown

273
5,042

696
1,135
—
—
1,831
Courtyard New York Manhattan/Fifth Avenue

122
3,980

(4,184)
986
—
760
(2,438)
Courtyard New York Manhattan/Midtown East

273
11,540

(5,226)
1,439
2,786
—
(1,001)
Embassy Suites by Hilton Bethesda

273
3,119

(7,484)
1,570
—
4,486
(1,428)
Frenchman's Reef & Morning Star Marriott Beach Resort

—
—

—
—
—
—
—
Havana Cabana Key West

273
10,234

3,990
808
—
—
4,798
Henderson Park Inn

63
1,813

696
150
—
—
846
Hilton Boston Downtown/Faneuil Hall

273
12,399

(2,635)
3,194
—
—
559
Hilton Burlington Lake Champlain

273
10,485

2,186
1,819
—
—
4,005
Hilton Garden Inn New York/Times Square Central

151
5,870

(4,955)
2,444
—
—
(2,511)
Hotel Clio

273
13,930

(819)
2,352
1,983
14
3,530
Hotel Emblem San Francisco

273
1,799

(1,660)
922
—
—
(738)
Hotel Palomar Phoenix

273
9,491

(919)
2,027
—
852
1,960
Kimpton Shorebreak Resort

273
13,101

3,419
1,235
—
—
4,654
L'Auberge de Sedona

273
23,897

7,810
1,284
—
—
9,094
Margaritaville Beach House Key West

273
20,942

9,049
2,159
—
—
11,208
Orchards Inn Sedona

273
6,492

1,902
246
—
126
2,274
Renaissance Charleston Historic District Hotel

273
13,491

4,019
1,378
—
—
5,397
Salt Lake City Marriott Downtown at City Creek

273
11,495

(206)
1,557
1,555
21
2,927
The Gwen Hotel

273
15,657

(910)
3,273
—
—
2,363
The Hythe Vail

273
18,183

3,211
3,019
—
—
6,230
The Landing Lake Tahoe Resort & Spa

273
8,028

2,167
1,268
—
—
3,435
The Lexington Hotel

—
60

(6,618)
1,925
13
16
(4,664)
The Lodge at Sonoma Resort

273
14,621

720
1,629
799
—
3,148
Westin Boston Seaport District

273
21,664

(15,845)
7,608
6,250
(367)
(2,354)
Westin Fort Lauderdale Beach Resort

273
35,810

6,296
3,217
—
—
9,513
Westin San Diego Bayview

273
11,772

(2,341)
2,468
1,806
—
1,933
Westin Washington D.C. City Center

273
4,664

(7,625)
3,229
1,849
—
(2,547)
Worthington Renaissance Fort Worth Hotel

273
16,379

(4,051)
3,343
2,246
6
1,544
Total


377,200

(29,125)
77,209
19,341
5,007
72,475
Add: Prior Ownership Results ⁽²⁾


55,816

9,604
4,841
—
—
14,445
Less: Sold Hotels ⁽³⁾


(60)

6,618
(1,925)
(13)
(16)
4,664
Comparable Total


432,956

(12,903)
80,125
19,328
4,991
91,584

⁽¹⁾

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

⁽²⁾

Represents the pre-acquisition operating results of our 2021 and 2022 acquisitions (excluding the Kimpton Fort Lauderdale Beach Resort).

⁽³⁾

Represents the operating results of Frenchman's Reef and The Lexington Hotel.



Hotel Adjusted EBITDA Reconciliation - Year to Date 2019






Plus:
Plus:
Plus:
Equals:


Days of Operation
Total Revenues

Net Income / (Loss)
Depreciation
Interest Expense
Adjustments ⁽¹⁾
Hotel Adjusted EBITDA
Atlanta Marriott Alpharetta

273
14,959

3,891
1,389
—
—
5,280
Cavallo Point, The Lodge at the Golden Gate

273
30,600

2,374
5,557
—
221
8,152
Chicago Marriott Downtown Magnificent Mile

273
83,224

12,127
12,461
110
(1,192)
23,506
Courtyard Denver Downtown

273
8,881

3,407
881
—
—
4,288
Courtyard New York Manhattan/Fifth Avenue

273
11,417

(519)
1,330
—
760
1,571
Courtyard New York Manhattan/Midtown East

273
21,213

(70)
2,077
2,891
—
4,898
Embassy Suites by Hilton Bethesda

273
13,051

(2,031)
1,422
—
4,555
3,946
Frenchman's Reef & Morning Star Marriott Beach Resort

—
—

8,798
—
—
—
8,798
Havana Cabana Key West

273
7,351

2,035
740
—
—
2,775
Hilton Boston Downtown/Faneuil Hall

273
32,337

9,124
3,708
—
—
12,832
Hilton Burlington Lake Champlain

273
14,031

3,917
1,500
—
—
5,417
Hilton Garden Inn New York/Times Square Central

273
18,222

1,731
2,509
—
—
4,240
Hotel Clio

273
14,380

(944)
1,975
2,062
18
3,111
Hotel Emblem San Francisco

273
5,649

323
868
—
—
1,191
Hotel Palomar Phoenix

273
18,008

2,319
1,991
116
885
5,311
Kimpton Shorebreak Resort

273
13,704

3,586
1,046
—
121
4,753
L'Auberge de Sedona

273
19,259

3,688
1,525
—
—
5,213
Margaritaville Beach House Key West

273
12,906

3,557
1,033
—
—
4,590
Orchards Inn Sedona

273
5,890

884
713
—
126
1,723
Renaissance Charleston Historic District Hotel

273
11,566

3,438
1,242
—
(95)
4,585
Salt Lake City Marriott Downtown at City Creek

273
23,586

5,120
1,680
1,818
—
8,618
The Gwen Hotel

273
25,709

4,030
3,285
—
—
7,315
The Hythe Vail, a Luxury Collection Resort

273
27,989

6,063
3,035
—
—
9,098
The Landing Lake Tahoe Resort & Spa

273
7,618

294
1,179
—
—
1,473
The Lexington Hotel

273
47,872

(1,778)
10,697
17
24
8,960
The Lodge at Sonoma Resort

273
19,023

3,234
1,571
840
—
5,645
Westin Boston Seaport District

273
70,991

6,286
7,266
6,506
(180)
19,878
Westin Fort Lauderdale Beach Resort

273
38,246

7,223
4,853
—
—
12,076
Westin San Diego Bayview

273
26,333

4,769
3,397
1,901
—
10,067
Westin Washington D.C. City Center

273
25,238

2,075
3,948
1,986
—
8,009
Worthington Renaissance Fort Worth Hotel

273
31,319

5,597
2,927
2,340
6
10,870
Total


700,572

104,548
87,805
20,587
5,249
218,028
Add: Prior Ownership Results ⁽²⁾


52,876

7,210
5,216
—
—
12,426
Less: Sold Hotels ⁽³⁾


(47,872)

(7,020)
(10,697)
(17)
(24)
(17,758)
Comparable Total


705,576

104,738
82,324
20,570
5,225
212,696

⁽¹⁾

Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization favorable and unfavorable contract liabilities.

⁽²⁾

Represents the pre-acquisition operating results of our 2021 and 2022 acquisitions (excluding the Kimpton Fort Lauderdale Beach Resort).

⁽³⁾

Represents the operating results of Frenchman's Reef and The Lexington Hotel.

SOURCE DiamondRock Hospitality Company

Company Name:	Diamondrock Hospitality Company
Stock Symbol:	DRH
Market:	NYSE
Website:	drhc.com

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