RLJ Lodging Trust Reports Second Quarter 2017 Results

- Net income of $42.5 million

- Pro forma Hotel EBITDA Margin of 37.7%

- Pro forma Consolidated Hotel EBITDA of $110.3 million

BETHESDA, Md.--()--RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three and six months ended June 30, 2017.

Highlights

  • Net income decreased 27.7% to $42.5 million
  • Pro forma RevPAR decreased 3.4%, Pro forma Occupancy decreased 2.1%, and Pro forma ADR decreased 1.2%
  • Pro forma Hotel EBITDA Margin of 37.7%
  • Pro forma Consolidated Hotel EBITDA of $110.3 million

“As expected, the second quarter was soft as a result of a few transitory headwinds including convention center closures in three of our top markets and the Easter holiday shift, which was less favorable to our business centric customer mix,” commented Ross H. Bierkan, President and Chief Executive Officer. “Despite the revenue pressure, our margin decline of only 150 basis points was better than we anticipated and is a testament to our team’s hard work and our resilient operating model. With margins of 37.7%, we continue to produce one of the strongest margins in the lodging space while also generating significant cash flow. With our most challenging quarter now behind us, we look forward to lapping easier comps starting late in the third quarter and benefiting from a number of tailwinds next year.”

Financial and Operating Results

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

Net income for the three months ended June 30, 2017, decreased $16.3 million to $42.5 million, representing a 27.7% decrease over the comparable period in 2016. For the six months ended June 30, 2017, net income decreased $19.8 million to $64.2 million, representing a 23.6% decrease over the comparable period in 2016. Net income for the three and six months ended June 30, 2016, includes results from sold hotels.

Pro forma RevPAR for the three months ended June 30, 2017, decreased 3.4% over the comparable period in 2016, driven by a Pro forma Occupancy decrease of 2.1% and a Pro forma ADR decrease of 1.2%. For the six months ended June 30, 2017, Pro forma RevPAR decreased 2.1% over the comparable period in 2016, driven by a Pro forma Occupancy decrease of 1.5% and a Pro forma ADR decrease of 0.6%.

Pro forma Hotel EBITDA Margin for the three months ended June 30, 2017, decreased 150 basis points over the comparable period in 2016 to 37.7%. For the six months ended June 30, 2017, Pro forma Hotel EBITDA Margin decreased 148 basis points over the comparable period in 2016 to 35.4%.

Pro forma Consolidated Hotel EBITDA for the three months ended June 30, 2017, decreased $8.3 million to $110.3 million, representing a 7.0% decrease over the comparable period in 2016. For the six months ended June 30, 2017, Pro forma Consolidated Hotel EBITDA decreased $13.3 million to $195.8 million, representing a 6.4% decrease over the comparable period in 2016.

Adjusted FFO for the three months ended June 30, 2017, decreased $13.4 million to $88.8 million, representing a 13.1% decrease over the comparable period in 2016. For the six months ended June 30, 2017, Adjusted FFO decreased $19.7 million to $153.2 million, representing an 11.4% decrease over the comparable period in 2016. Adjusted FFO for the three and six months ended June 30, 2016, includes results from sold hotels.

Adjusted FFO per diluted common share and unit for the three months ended June 30, 2017, decreased $0.11 to $0.71, representing a 13.4% decrease over the comparable period in 2016. For the six months ended June 30, 2017, Adjusted FFO per diluted common share and unit decreased $0.16 to $1.23, representing an 11.5% decrease over the comparable period in 2016.

Adjusted EBITDA for the three months ended June 30, 2017, decreased $13.5 million to $103.7 million, representing an 11.5% decrease over the comparable period in 2016. Adjusted EBITDA for the three months ended June 30, 2016, includes results from sold hotels of approximately $5.4 million. For the six months ended June 30, 2017, Adjusted EBITDA decreased $20.5 million to $182.6 million, representing a 10.1% decrease over the comparable period in 2016. Adjusted EBITDA for the six months ended June 30, 2016, includes results from sold hotels of approximately $7.2 million.

Net cash flow from operating activities for the six months ended June 30, 2017, totaled $141.5 million, compared to $164.2 million for the comparable period in 2016.

Balance Sheet

As of June 30, 2017, the Company had $479.9 million of unrestricted cash on its balance sheet, $400.0 million available on its revolving credit facility, and $1.6 billion of debt outstanding. The Company’s ratio of net debt to Adjusted EBITDA, pro forma for dispositions, for the trailing twelve month period ended June 30, 2017, was 3.1 times.

Dividends

The Company’s Board of Trustees declared a cash dividend of $0.33 per common share of beneficial interest in the second quarter. The dividend was paid on July 14, 2017, to shareholders of record as of June 30, 2017.

Share Buyback

For the three and six months ended June 30, 2017, the Company did not repurchase any shares. As of June 30, 2017, the Company's authorized share buyback program had a remaining capacity of $201.5 million.

Subsequent Events

In connection with the proposed merger with FelCor Lodging Trust Incorporated, the Company filed with the SEC a registration statement on Form S-4 (File No. 333-218439) that includes a joint proxy statement of the Company and FelCor that also constitutes a prospectus of the Company. The registration statement was declared effective by the Securities and Exchange Commission on July 18, 2017, and the joint proxy/prospectus has been mailed or otherwise disseminated to the Company’s shareholders.

2017 Outlook

The Company’s outlook has been updated to reflect a more cautionary outlook for the second half of the year. The updated outlook excludes potential future acquisitions and dispositions, which could result in a material change to the Company’s outlook. The 2017 outlook is also based on a number of other assumptions, many of which are outside the Company’s control and all of which are subject to change.

Pro forma guidance removes income from hotels that have been sold. During the six months ended June 30, 2017, the Company did not acquire or sell any hotels.

For the full year 2017, the Company anticipates:

         
    Current Outlook   Prior Outlook
Pro forma RevPAR growth  

-2.0% to -1.0%

  -1.0% to +1.0%
Pro forma Hotel EBITDA Margin 34.5% to 35.0% 34.5% to 35.5%
Pro forma Consolidated Hotel EBITDA $375.0M to $385.0M $380.0M to $400.0M
Corporate Cash General & Administrative   $27.5M to $28.5M   $27.5M to $28.5M

Earnings Call

The Company will conduct its quarterly analyst and investor conference call on August 4, 2017, at 10:00 a.m. (Eastern Time). The conference call can be accessed by dialing (877) 407-3982 or (201) 493-6780 for international participants and requesting RLJ Lodging Trust’s second quarter earnings conference call. Additionally, a live webcast of the conference call will be available through the Company’s website at http://rljlodgingtrust.com. A replay of the conference call webcast will be archived and available online through the Investor Relations page of the Company’s website.

About Us

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust focused on acquiring premium-branded, focused-service and compact full-service hotels. The Company owns 122 hotels with approximately 20,100 rooms, located in 21 states and the District of Columbia.

Forward Looking Statements

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

For additional information or to receive press releases via email, please visit our website:
http://rljlodgingtrust.com

RLJ Lodging Trust
Non-GAAP and Accounting Commentary

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

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

Funds From Operations (“FFO”)

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

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

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

EBITDA is defined as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sales of assets; and (3) depreciation and amortization. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results.

In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions. The Company presents EBITDA attributable to common shareholders, which includes OP units, because the OP units are redeemable for common shares of the Company. The Company believes it is meaningful for the investor to understand EBITDA attributable to all common shares and OP units.

Adjustments to FFO and EBITDA

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

  • Transaction and Pursuit Costs: The Company excludes transaction and pursuit costs expensed during the period.
  • Non-Cash Expenses: The Company excludes the effect of certain non-cash items. The Company has excluded the amortization of share-based compensation, non-cash gain or loss on the sale of assets, and certain non-cash income taxes.
  • Other Non-Operational Expenses: The Company excludes the effect of certain non-operational expenses. The Company excludes property-level severance costs, debt modification and extinguishment costs, and other income and expenses outside the normal course of operations.

Hotel EBITDA and Hotel EBITDA Margin

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

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

Pro forma adjustments: Sold hotels

Hotels sold during the year ended December 31, 2016, are noted below:

  • Holiday Inn Express Merrillville was sold in February 2016
  • SpringHill Suites Bakersfield was sold in November 2016
  • Hilton Garden Inn New York 35th Street was sold in December 2016
  • Hilton New York Fashion District was sold in December 2016
   

RLJ Lodging Trust

Consolidated Balance Sheets

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

 
June 30,
2017
December 31, 2016
(unaudited)
Assets
Investment in hotel properties, net $ 3,323,705 $ 3,368,674
Cash and cash equivalents 479,879 456,672
Restricted cash reserves 60,697 67,206
Hotel and other receivables, net of allowance of $181 and $182, respectively 34,408 26,018
Deferred income tax asset 42,353 44,614
Prepaid expense and other assets 60,624   60,209  
Total assets $ 4,001,666   $ 4,023,393  
Liabilities and Equity
Debt, net $ 1,582,114 $ 1,582,715
Accounts payable and other liabilities 127,064 137,066
Deferred income tax liability 11,430 11,430
Advance deposits and deferred revenue 10,492 11,975
Accrued interest 3,918 3,444
Distributions payable 41,914   41,486  
Total liabilities 1,776,932 1,788,116
Equity
Shareholders’ equity:
Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized; zero shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 124,639,939 and 124,364,178 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively 1,246 1,244
Additional paid-in capital 2,191,661 2,187,333
Accumulated other comprehensive loss (1,069 ) (4,902 )
Retained earnings 19,674   38,249  
Total shareholders’ equity 2,211,512 2,221,924
Noncontrolling interest:
Noncontrolling interest in consolidated joint venture 5,936 5,973
Noncontrolling interest in the Operating Partnership 7,286   7,380  
Total noncontrolling interest 13,222   13,353  
Total equity 2,224,734   2,235,277  
Total liabilities and equity $ 4,001,666   $ 4,023,393  

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

   

RLJ Lodging Trust

Consolidated Statements of Operations

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

(unaudited)

 

For the three months ended
June 30,

For the six months ended
June 30,

2017   2016 2017   2016
Revenue
Operating revenue
Room revenue $ 253,739 $ 277,039 $ 478,704 $ 516,552
Food and beverage revenue 29,121 30,047 55,812 56,601
Other operating department revenue 9,424   10,026   18,000   19,130  
Total revenue $ 292,284   $ 317,112   $ 552,516   $ 592,283  
Expense
Operating expense
Room expense $ 55,221 $ 59,085 $ 107,143 $ 114,113
Food and beverage expense 20,101 20,525 39,398 40,342
Management and franchise fee expense 29,626 32,762 56,539 61,263
Other operating expense 59,058   61,950   116,880   121,971  

Total property operating expense

164,006 174,322 319,960 337,689
Depreciation and amortization 38,240 40,849 76,905 81,579
Property tax, insurance and other 18,152 19,302 37,310 39,457
General and administrative 10,129 6,658 19,252 16,307
Transaction and pursuit costs 3,691   80   4,316   159  
Total operating expense 234,218   241,211   457,743   475,191  
Operating income 58,066 75,901 94,773 117,092
Other income (expense) 73 (326 ) 214 (24 )
Interest income 664 414 1,149 810
Interest expense (14,548 ) (14,789 ) (28,877 ) (29,681 )
Income before income tax expense 44,255 61,200 67,259 88,197
Income tax expense (1,821 ) (2,482 ) (2,987 ) (3,958 )
Income from operations 42,434 58,718 64,272 84,239
Gain (loss) on sale of hotel properties 30   22   (30 ) (150 )
Net income 42,464 58,740 64,242 84,089
Net (income) loss attributable to noncontrolling interests
Noncontrolling interest in consolidated joint venture (29 ) (37 ) 37 25
Noncontrolling interest in the Operating Partnership (189 ) (256 ) (275 ) (370 )
Net income attributable to common shareholders $ 42,246   $ 58,447   $ 64,004   $ 83,744  
Basic per common share data:
Net income per share attributable to common shareholders $ 0.34   $ 0.47   $ 0.51   $ 0.67  
Weighted-average number of common shares 123,785,735   123,544,034   123,760,096   123,641,928  
Diluted per common share data:
Net income per share attributable to common shareholders $ 0.34   $ 0.47   $ 0.51   $ 0.67  
Weighted-average number of common shares 123,871,762   123,942,846   123,856,388   124,051,956  

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

   

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands, except per share data)

(unaudited)

 

 

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

 

For the three months ended
June 30,

For the six months ended
June 30,

2017   2016 2017   2016
Net income $ 42,464 $ 58,740 $ 64,242 $ 84,089
Depreciation and amortization 38,240 40,849 76,905 81,579
(Gain) loss on sale of hotel properties (30 ) (22 ) 30 150
Noncontrolling interest in consolidated joint venture (29 ) (37 ) 37 25
Adjustments related to consolidated joint venture (1) (30 ) (39 ) (62 ) (78 )
FFO 80,615 99,491 141,152 165,765
Transaction and pursuit costs 3,691 80 4,316 159
Amortization of share-based compensation 3,134 (578 ) 5,469 2,014
Non-cash income tax expense 1,323 1,897 2,261 3,028
Loan related costs (2) 906 1,247
Other expenses (3)   330     686  
Adjusted FFO $ 88,763   $ 102,126   $ 153,198   $ 172,899  
 
Adjusted FFO per common share and unit-basic $ 0.71 $ 0.82 $ 1.23 $ 1.39
Adjusted FFO per common share and unit-diluted $ 0.71 $ 0.82 $ 1.23 $ 1.39
 
Basic weighted-average common shares and units outstanding (4) 124,344 124,103 124,319 124,296
Diluted weighted-average common shares and units outstanding (4) 124,431 124,502 124,415 124,706

Note:

(1)   Includes depreciation and amortization expense allocated to the noncontrolling interest in the joint venture.
(2) Represents debt modification costs.
(3) Represents expenses outside of the normal course of operations, including property-level severance costs.
(4)

Includes 0.6 million weighted-average operating partnership units for each of the three months ended June 30, 2017 and 2016, and 0.6 million and 0.7 million weighted-average operating partnership units for the six months ended June 30, 2017 and 2016, respectively.

   

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands)

(unaudited)

 

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

 

For the three months ended
June 30,

For the six months ended
June 30,

2017   2016 2017   2016
Net income $ 42,464 $ 58,740 $ 64,242 $ 84,089
Depreciation and amortization 38,240 40,849 76,905 81,579
Interest expense, net (1) 14,399 14,782 28,716 29,668
Income tax expense 1,821 2,482 2,987 3,958
Noncontrolling interest in consolidated joint venture (29 ) (37 ) 37 25
Adjustments related to consolidated joint venture (2) (30 ) (39 ) (62 ) (78 )
EBITDA 96,865 116,777 172,825 199,241
Transaction and pursuit costs 3,691 80 4,316 159
(Gain) loss on sale of hotel properties (30 ) (22 ) 30 150
Amortization of share-based compensation 3,134 (578 ) 5,469 2,014
Loan related costs (3) 582 924
Other expenses (4)   330     686  
Adjusted EBITDA 103,660 117,169 182,640 203,174
General and administrative (5) 6,995 7,069 13,783 13,784
Operating results from noncontrolling interest in joint venture 59 76 25 53
Other corporate adjustments (356 ) (359 ) (356 ) (623 )
Consolidated Hotel EBITDA 110,358   123,955   196,092   216,388  
Pro forma adjustments - income from sold hotels (76 ) (5,420 ) (249 ) (7,232 )
Pro forma Consolidated Hotel EBITDA 110,282   118,535   195,843   209,156  
Pro forma Hotel EBITDA $ 110,282   $ 118,535   $ 195,843   $ 209,156  

Note:

(1)  

Excludes amounts attributable to investment in loans of $0.5 million and $1.0 million for the three and six months ended June 30, 2017, respectively, and $0.4 million and $0.8 million for the three and six months ended June 30, 2016, respectively.

(2) Includes depreciation and amortization expense allocated to the noncontrolling interest in the joint venture.
(3) Represents debt modification costs.
(4) Represents expenses outside of the normal course of operations, including property-level severance costs.
(5) General and administrative expenses exclude amortization of share-based compensation and other non-recurring expenses reflected in Adjusted EBITDA.

   

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands)

(unaudited)

 

Pro forma Hotel EBITDA Margin

 

For the three months ended
June 30,

For the six months ended
June 30,

2017   2016 2017   2016
Total revenue $ 292,284 $ 317,112 $ 552,516 $ 592,283
Pro forma adjustments - revenue from sold hotels (14,934 ) (25,895 )
Other corporate adjustments (17 ) (15 ) (42 ) (30 )
Pro forma Hotel Revenue $ 292,267   $ 302,163   $ 552,474   $ 566,358  
 
Pro forma Hotel EBITDA $ 110,282   $ 118,535   $ 195,843   $ 209,156  
 
Pro forma Hotel EBITDA Margin 37.7 % 39.2 % 35.4 % 36.9 %
         

RLJ Lodging Trust

Consolidated Debt Summary

(Amounts in thousands)

(unaudited)

 
Loan  

Base Term
(Years)

 

Maturity
(incl. extensions)

 

Floating /
Fixed

 

Interest
Rate (1)

Balance as of
June 30, 2017 (2)

Secured Debt
Wells Fargo - 4 hotels 3 Oct 2021 Floating (3) 4.03 % $ 150,000
Wells Fargo - 4 hotels 2 Mar 2022 Floating (3) 4.04 % 144,750
Wells Fargo - 1 hotel (4) 10 Jun 2022 Fixed 5.25 % 32,347
PNC Bank - 5 hotels 5   Mar 2023   Floating   3.32 % 85,000
Weighted-Average / Secured Total 3.98 % $ 412,097
 
Unsecured Debt
Revolver (5) 4 Apr 2021 Floating 2.72 % $
$400 Million Term Loan Maturing 2019 5 Mar 2019 Floating (3) 2.72 % 400,000
$225 Million Term Loan Maturing 2019 7 Nov 2019 Floating (3) 4.04 % 225,000
$400 Million Term Loan Maturing 2021 5 Apr 2021 Floating (3)(6) 3.00 % 400,000
$150 Million Term Loan Maturing 2022 7   Jan 2022   Floating (3)   3.43 % 150,000
Weighted-Average / Unsecured Total 3.16 % $ 1,175,000
               
Weighted-Average / Total Debt             3.37 % $ 1,587,097

Note:

(1)   Interest rates as of June 30, 2017.
(2) Excludes deferred financing costs.
(3) The floating interest rate is hedged with an interest rate swap.
(4) Excludes the $0.9 million impact of a fair value adjustment.
(5) There is $400.0 million of borrowing capacity on the Revolver, which is charged an unused commitment fee of 0.30% annually.
(6) Reflects interest rate swap on $350.0 million.
     

RLJ Lodging Trust

Pro forma Operating Statistics - Top 60 Assets

(unaudited)

 
Property   City/State   # of Rooms  

Pro forma Consolidated
Hotel EBITDA

Marriott Louisville Downtown Louisville, KY 616 $ 14,512
DoubleTree Metropolitan Hotel New York City New York, NY 764 10,446
Courtyard Austin Downtown Convention Center Austin, TX 270 9,494
Courtyard Portland City Center Portland, OR 256 8,712
DoubleTree Grand Key Resort Key West, FL 216 7,860
Embassy Suites Tampa Downtown Convention Center Tampa, FL 360 7,656
Courtyard Chicago Downtown Magnificent Mile Chicago, IL 306 7,243
Courtyard Waikiki Beach Honolulu, HI 403 6,913
Fairfield Inn & Suites Washington DC Downtown Washington, DC 198 6,728
Hyatt House Emeryville San Francisco Bay Area Emeryville, CA 234 6,437
Courtyard San Francisco San Francisco, CA 166 6,308
Residence Inn Palo Alto Los Altos Los Altos, CA 156 6,305
Embassy Suites Boston Waltham Waltham, MA 275 6,231
Hilton Garden Inn San Francisco Oakland Bay Brg Emeryville, CA 278 6,046
Hyatt House San Jose Silicon Valley San Jose, CA 164 6,040
Marriott Denver South @ Park Meadows Lone Tree, CO 279 5,954
Renaissance Pittsburgh Hotel Pittsburgh, PA 300 5,823
Courtyard Charleston Historic District Charleston, SC 176 5,390
Hilton Cabana Miami Beach Miami Beach, FL 231 5,371
Embassy Suites Los Angeles Downey Downey, CA 220 5,321
Residence Inn Austin Downtown Convention Center Austin, TX 179 5,118
Homewood Suites Washington DC Downtown Washington, DC 175 5,068
Renaissance Fort Lauderdale Plantation Hotel Plantation, FL 250 5,023
Hyatt House Santa Clara Santa Clara, CA 150 4,897
Residence Inn Bethesda Downtown Bethesda, MD 188 4,826
Marriott Denver Airport @ Gateway Park Aurora, CO 238 4,686
Hilton Garden Inn Los Angeles Hollywood Los Angeles, CA 160 4,650
Embassy Suites Irvine Orange County Irvine, CA 293 4,438
Hyatt Place Washington DC Downtown K Street Washington, DC 164 4,408
Hyatt House San Diego Sorrento Mesa San Diego, CA 193 4,223
Hilton Garden Inn New Orleans Convention Center New Orleans, LA 286 4,153
Renaissance Boulder Flatiron Hotel Broomfield, CO 232 4,104
Hyatt Place Fremont Silicon Valley Fremont, CA 151 4,075
Marriott Austin South Austin, TX 211 3,916
Residence Inn National Harbor Washington DC Oxon Hill, MD 162 3,881
Fairfield Inn & Suites Key West Key West, FL 106 3,718
Hyatt House Charlotte Center City Charlotte, NC 163 3,679
Hyatt Atlanta Midtown Atlanta, GA 194 3,546
Courtyard Atlanta Buckhead Atlanta, GA 181 3,420
Embassy Suites West Palm Beach Central West Palm Beach, FL 194 3,329
Residence Inn Indianapolis Downtown On The Canal Indianapolis, IN 134 3,238
Homewood Suites Seattle Lynnwood Lynnwood, WA 170 3,233
Courtyard Houston Downtown Convention Center Houston, TX 191 3,231
Courtyard Houston By The Galleria Houston, TX 190 3,059
SpringHill Suites Portland Hillsboro Hillsboro, OR 106 2,992
Residence Inn Houston Downtown Convention Center Houston, TX 171 2,984
Hyatt House San Ramon San Ramon, CA 142 2,978
Residence Inn Louisville Downtown Louisville, KY 140 2,918
Hilton Garden Inn Bloomington Bloomington, IN 168 2,899
Residence Inn Chicago Oak Brook Oak Brook, IL 156 2,868
Hyatt House Cypress Anaheim Cypress, CA 142 2,763
Hyatt Place Madison Downtown Madison, WI 151 2,758
Courtyard Indianapolis @ The Capitol Indianapolis, IN 124 2,758
Residence Inn Detroit Novi Novi, MI 107 2,462
Hampton Inn Garden City Garden City, NY 143 2,460
Residence Inn Fort Lauderdale Plantation Plantation, FL 138 2,428
Courtyard Austin Airport Austin, TX 150 2,424
Hyatt House Dallas Lincoln Park Dallas, TX 155 2,380
Hyatt House Dallas Uptown Dallas, TX 141 2,309
Hilton Garden Inn Pittsburgh University Place Pittsburgh, PA 202     2,261
Top 60 Assets 12,759 285,351
Other (62 Assets) 7,379     101,682
Total Portfolio 20,138     $ 387,033

Note: For the trailing twelve months ended June 30, 2017. Results reflect 100% of DoubleTree Metropolitan Hotel New York City financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture. Amounts in thousands, except rooms.

       

RLJ Lodging Trust

Pro forma Operating Statistics

 

 

For the three months ended June 30, 2017

 

Top Markets

# of
Hotels

Occupancy ADR RevPAR
2017   2016   Var 2017   2016   Var 2017   2016   Var
Northern California 8 85.9 % 89.9 % (4.5 )% $ 214.76 $ 217.16 (1.1 )% $ 184.51 $ 195.27 (5.5 )%
South Florida 10 83.9 % 84.4 % (0.6 )% 157.85 152.24 3.7 % 132.38 128.47 3.0 %
Austin 13 78.5 % 83.8 % (6.4 )% 165.20 169.39 (2.5 )% 129.60 141.98 (8.7 )%
Denver 13 80.5 % 82.0 % (1.9 )% 145.28 142.43 2.0 % 116.96 116.84 0.1 %
Washington, DC 8 85.3 % 85.8 % (0.6

)%

208.74 203.63 2.5 % 178.15 174.79 1.9 %
Chicago 14 76.0 % 75.0 % 1.3 % 154.88 159.36 (2.8 )% 117.64 119.49 (1.6 )%
Louisville 5 75.4 % 80.2 % (5.9 )% 187.27 191.91 (2.4 )% 141.28 153.91 (8.2 )%
Southern California 5 87.6 % 86.7 % 1.1 % 173.87 167.17 4.0 % 152.32 144.88 5.1 %
Houston 10 68.4 % 69.5 % (1.6 )% 138.29 158.50 (12.7 )% 94.53 110.12 (14.2 )%
New York City 3 94.9 % 96.3 % (1.4 )% 227.84 235.81 (3.4 )% 216.32 227.14 (4.8 )%
Other 33   80.5 %   82.4 %   (2.3 )% 160.36     162.20     (1.1 )% 129.04     133.66     (3.5 )%
Total 122   80.8 %   82.6 %   (2.1 )% $ 171.28     $ 173.42     (1.2 )% $ 138.47     $ 143.28     (3.4 )%
 
Service Level

# of
Hotels

Occupancy ADR RevPAR
2017 2016 Var 2017 2016 Var 2017 2016 Var
Focused-Service 102 80.3 % 82.3 % (2.5 )% $ 165.65 $ 167.77 (1.3 )% $ 132.95 $ 138.11 (3.7 )%
Compact Full-Service 19 83.6 % 84.1 % (0.6 )% 182.11 184.39 (1.2 )% 152.31 155.13 (1.8 )%
Full-Service 1   72.9 %   78.0 %   (6.5 )% 221.76     222.99     (0.6 )% 161.62     173.83     (7.0 )%
Total 122   80.8 %   82.6 %   (2.1 )% $ 171.28     $ 173.42     (1.2 )% $ 138.47     $ 143.28     (3.4 )%
 
Chain Scale

# of
Hotels

Occupancy ADR RevPAR
2017 2016 Var 2017 2016 Var 2017 2016 Var
Upper Upscale 17 79.5 % 80.9 % (1.8 )% $ 175.74 $ 177.10 (0.8 )% $ 139.64 $ 143.26 (2.5 )%
Upscale 89 81.8 % 83.8 % (2.3 )% 172.07 174.32 (1.3 )% 140.75 146.01 (3.6 )%
Upper Midscale 15 76.9 % 79.5 % (3.2 )% 159.45 160.78 (0.8 )% 122.69 127.83 (4.0 )%
Midscale 1   81.1 %   61.8 %   31.2 % 97.47     114.38     (14.8 )% 79.08     70.71     11.8 %
Total 122   80.8 %   82.6 %   (2.1 )% $ 171.28     $ 173.42     (1.2 )% $ 138.47     $ 143.28     (3.4 )%
 
Flags

# of
Hotels

Occupancy ADR RevPAR
2017 2016 Var 2017 2016 Var 2017 2016 Var
Courtyard 24 81.9 % 82.8 % (1.1 )% $ 173.95 $ 177.16 (1.8 )% $ 142.38 $ 146.65 (2.9 )%
Residence Inn 29 80.8 % 84.0 % (3.9 )% 158.25 158.65 (0.2 )% 127.82 133.29 (4.1 )%
Hyatt House 11 83.4 % 86.7 % (3.8 )% 174.83 173.38 0.8 % 145.88 150.32 (3.0 )%
Marriott 5 75.8 % 79.2 % (4.3 )% 183.11 185.70 (1.4 )% 138.79 147.06 (5.6 )%
Embassy Suites 6 83.3 % 84.1 % (0.9 )% 170.37 167.30 1.8 % 141.90 140.62 0.9 %
Hilton Garden Inn 8 77.7 % 80.8 % (3.9 )% 162.27 168.59 (3.7 )% 126.04 136.24 (7.5 )%
DoubleTree 3 93.7 % 93.1 % 0.7 % 219.46 226.10 (2.9 )% 205.65 210.50 (2.3 )%
Fairfield Inn & Suites 7 79.7 % 80.7 % (1.3 )% 175.83 175.40 0.2 % 140.08 141.59 (1.1 )%
Renaissance 3 79.3 % 78.5 % 1.0 % 165.86 169.75 (2.3 )% 131.48 133.19 (1.3 )%
SpringHill Suites 8 73.4 % 76.3 % (3.8 )% 135.15 139.78 (3.3 )% 99.21 106.66 (7.0 )%
Hampton Inn 7 76.5 % 80.4 % (4.8 )% 143.02 146.49 (2.4 )% 109.43 117.77 (7.1 )%
Hyatt Place 3 86.3 % 88.3 % (2.2 )% 194.99 191.87 1.6 % 168.35 169.37 (0.6 )%
Homewood Suites 2 85.4 % 81.2 % 5.1 % 201.82 206.06 (2.1 )% 172.29 167.42 2.9 %
Hilton 1 80.6 % 84.7 % (4.8 )% 186.97 184.27 1.5 % 150.71 156.10 (3.5 )%
Hyatt 2 78.8 % 76.9 % 2.5 % 185.80 201.21 (7.7 )% 146.32 154.64 (5.4 )%
Other 3   71.3 %   65.4 %   9.1 % 141.31     157.63     (10.4 )% 100.75     103.03     (2.2 )%
Total 122   80.8 %   82.6 %   (2.1 )% $ 171.28     $ 173.42     (1.2 )% $ 138.47     $ 143.28     (3.4 )%

Note: Results reflect 100% of DoubleTree Metropolitan Hotel New York City financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture.

       

RLJ Lodging Trust

Pro forma Operating Statistics

 

For the six months ended June 30, 2017

 
Top Markets

# of
Hotels

Occupancy ADR RevPAR
2017   2016   Var 2017   2016   Var 2017   2016   Var
Northern California 8 81.9 % 87.5 % (6.4 )% $ 216.71 $ 218.49 (0.8 )% $ 177.48 $ 191.15 (7.2 )%
South Florida 10 86.6 % 86.7 % (0.1 )% 186.58 186.15 0.2 % 161.62 161.38 0.2 %
Austin 13 78.7 % 81.6 % (3.6 )% 170.14 173.47 (1.9 )% 133.87 141.60 (5.5 )%
Denver 13 74.9 % 75.3 % (0.5 )% 137.02 135.85 0.9 % 102.68 102.31 0.4 %
Washington, DC 8 77.8 % 76.3 % 2.0 % 201.07 191.66 4.9 % 156.42 146.23 7.0 %
Chicago 14 65.1 % 64.8 % 0.5 % 140.80 146.70 (4.0 )% 91.61 94.99 (3.6 )%
Louisville 5 68.1 % 76.9 % (11.5 )% 170.25 173.25 (1.7 )% 115.89 133.22 (13.0 )%
Southern California 5 86.7 % 84.0 % 3.1 % 171.13 166.12 3.0 % 148.31 139.59 6.2 %
Houston 10 69.9 % 70.3 % (0.7 )% 151.79 159.96 (5.1 )% 106.03 112.53 (5.8 )%
New York City 3 91.2 % 93.2 % (2.1 )% 190.94 198.43 (3.8 )% 174.10 184.88 (5.8 )%
Other 33   78.6 %   78.8 %   (0.4 )% 160.10     158.97     0.7 % 125.76     125.34     0.3 %
Total 122   77.6 %   78.8 %   (1.5 )% $ 169.15     $ 170.18     (0.6 )% $ 131.34     $ 134.10     (2.1 )%
 
Service Level

# of
Hotels

Occupancy ADR RevPAR
2017 2016 Var 2017 2016 Var 2017 2016 Var
Focused-Service 102 76.8 % 78.2 % (1.8 )% $ 163.64 $ 164.48 (0.5 )% $ 125.71 $ 128.62 (2.3 )%
Compact Full-Service 19 81.8 % 81.0 % 1.0 % 181.80 183.82 (1.1 )% 148.71 148.93 (0.1 )%
Full-Service 1   64.7 %   75.6 %   (14.4 )% 199.88     196.27     1.8 % 129.26     148.32     (12.8 )%
Total 122   77.6 %   78.8 %   (1.5 )% $ 169.15     $ 170.18     (0.6 )% $ 131.34     $ 134.10     (2.1 )%
 
Chain Scale

# of
Hotels

Occupancy ADR RevPAR
2017 2016 Var 2017 2016 Var 2017 2016 Var
Upper Upscale 17 77.0 % 77.7 % (0.9 )% $ 178.88 $ 179.36 (0.3 )% $ 137.76 $ 139.42 (1.2 )%
Upscale 89 78.5 % 79.8 % (1.6 )% 168.03 169.25 (0.7 )% 131.96 135.11 (2.3 )%
Upper Midscale 15 73.4 % 75.3 % (2.5 )% 158.83 158.47 0.2 % 116.52 119.28 (2.3 )%
Midscale 1   63.9 %   53.0 %   20.7 % 92.94     107.10     (13.2 )% 59.40     56.73     4.7 %
Total 122   77.6 %   78.8 %   (1.5 )% $ 169.15     $ 170.18     (0.6 )% $ 131.34     $ 134.10     (2.1 )%
 
Flags # of Hotels Occupancy ADR RevPAR
2017 2016 Var 2017 2016 Var 2017 2016 Var
Courtyard 24 78.1 % 78.2 % (0.2 )% $ 168.68 $ 170.81 (1.2 )% $ 131.79 $ 133.65 (1.4 )%
Residence Inn 29 78.1 % 79.3 % (1.6 )% 157.93 157.84 0.1 % 123.28 125.21 (1.5 )%
Hyatt House 11 80.8 % 85.9 % (6.0 )% 174.40 172.79 0.9 % 140.92 148.45 (5.1 )%
Marriott 5 69.8 % 75.1 % (7.0 )% 172.81 173.94 (0.7 )% 120.67 130.62 (7.6 )%
Embassy Suites 6 84.1 % 82.4 % 2.0 % 182.62 178.16 2.5 % 153.58 146.89 4.6 %
Hilton Garden Inn 8 74.2 % 76.3 % (2.7 )% 163.23 167.17 (2.4 )% 121.19 127.55 (5.0 )%
DoubleTree 3 90.7 % 90.6 % 0.1 % 198.28 204.04 (2.8 )% 179.83 184.81 (2.7 )%
Fairfield Inn & Suites 7 76.0 % 77.2 % (1.5 )% 174.76 171.40 2.0 % 132.88 132.30 0.4 %
Renaissance 3 74.8 % 72.2 % 3.5 % 167.72 170.14 (1.4 )% 125.38 122.88 2.0 %
SpringHill Suites 8 70.5 % 72.6 % (2.9 )% 134.94 137.28 (1.7 )% 95.19 99.70 (4.5 )%
Hampton Inn 7 73.7 % 76.2 % (3.3 )% 144.01 145.97 (1.3 )% 106.11 111.24 (4.6 )%
Hyatt Place 3 82.0 % 85.1 % (3.6 )% 186.88 179.36 4.2 % 153.24 152.59 0.4 %
Homewood Suites 2 78.5 % 71.5 % 9.7 % 191.61 193.42 (0.9 )% 150.32 138.30 8.7 %
Hilton 1 84.2 % 85.7 % (1.7 )% 206.14 218.88 (5.8 )% 173.63 187.50 (7.4 )%
Hyatt 2 79.4 % 75.9 % 4.6 % 193.49 205.11 (5.7 )% 153.60 155.62 (1.3 )%
Other 3   62.0 %   58.6 %   5.8 % 144.01     157.20     (8.4 )% 89.25     92.08     (3.1 )%
Total 122   77.6 %   78.8 %   (1.5 )% $ 169.15     $ 170.18     (0.6 )% $ 131.34     $ 134.10     (2.1 )%

Note: Results reflect 100% of DoubleTree Metropolitan Hotel New York City financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture.

Contacts

RLJ Lodging Trust
Leslie D. Hale, Chief Operating Officer and Chief Financial Officer
301-280-7774

Release Summary

RLJ Lodging Trust Reports Second Quarter 2017 Results

Contacts

RLJ Lodging Trust
Leslie D. Hale, Chief Operating Officer and Chief Financial Officer
301-280-7774