Belmond Ltd. Reports Fourth Quarter and Full Year 2014 Results

Fourth Quarter 2014 Highlights

  • Same store revenue per available room (“RevPAR”) of $244 down 7% in U.S. dollars as compared to the fourth quarter of 2013
  • Total revenue of $126.9 million down 8% from the prior-year quarter
  • Total adjusted EBITDA of $21.6 million up 1% over the prior-year quarter
  • Excluding the impact of currency movements, Belmond brand costs and Inn at Perry Cabin, which the Company sold in March 2014:
  • RevPAR up 7% as compared to the prior-year quarter
  • Total revenue up $2.5 million or 2% over the prior-year quarter
  • Adjusted EBITDA up $5.0 million or 24% over the prior-year quarter

Full Year 2014 Highlights

  • Same store RevPAR of $313 consistent with 2013 RevPAR in U.S. dollars
  • Total revenue of $594.5 million down 1% from the prior year
  • Total adjusted EBITDA of $117.7 million down 2% from the prior year
  • Excluding the impact of currency movements; Belmond brand costs; Inn at Perry Cabin; Belmond Grand Hotel Europe, which was negatively impacted by the economic situation in Russia; and Belmond Miraflores Park, which was closed for several months for planned renovation:
  • RevPAR up 6% over the prior year
  • Total revenue up $27.3 million or 5% over the prior year
  • Adjusted EBITDA up $17.1 million or 17% over the prior year

During the year, the Company made significant progress on its long-term strategy by:

  • Launching the Belmond brand
  • Strengthening its balance sheet with its first corporate debt facility
  • Optimizing its portfolio with the sale of Inn at Perry Cabin for gross proceeds of $39.7 million
  • Entering into its first third-party management agreements for Inn at Perry Cabin in Maryland and Belmond Cadogan Hotel in the key gateway city of London

To view full quarterly and 2014 financial results please visit:

http://otp.investis.com/clients/us/belmond/usn/usnews-story.aspx?cid=884&newsid=28722

Hospitality Properties Trust Announces 2014 Fourth Quarter and Year End Results Compared to Last Year

Fourth Quarter Normalized FFO Per Share Increases 15.7% to $0.81

Q4 Comparable Property RevPAR Growth of 11.3% for Hotels Not Under Renovation

Results for the Three Months and Year Ended December 31, 2014 and Recent Activities:

  • Net Income Available for Common Shareholders: Net income available for common shareholders for the quarter ended December 31, 2014 was $51.4 million, or $0.34 per basic and diluted share, compared to $27.6 million, or $0.19 per basic and diluted share, for the quarter ended December 31, 2013. The weighted average number of basic and diluted common shares outstanding was 149.8 million for the quarter ended December 31, 2014 and 144.9 million and 145.0 million, respectively, for the quarter ended December 31, 2013.

Net income available for common shareholders for the year ended December 31, 2014 was $176.5 million, or $1.18 per basic and diluted share, compared to $101.0 million, or $0.73 per basic and diluted share, for the year ended December 31, 2013. The weighted average number of basic and diluted common shares outstanding was 149.7 million and 149.8 million, respectively, for the year ended December 31, 2014 and 137.4 million and 137.5 million, respectively, for the year ended December 31, 2013.

  • Adjusted EBITDA: Adjusted EBITDA for the quarter ended December 31, 2014 compared to the same period in 2013 increased 11.8% to $164.2 million.

Adjusted EBITDA for the year ended December 31, 2014 compared to the same period in 2013 increased 12.2% to $661.8 million.

  • Normalized FFO: Normalized FFO for the quarter ended December 31, 2014 were $121.5 million, or $0.81 per basic and diluted share, compared to Normalized FFO for the quarter ended December 31, 2013 of $101.3 million, or $0.70 per basic and diluted share. The $0.11, or 15.7%, increase in Normalized FFO per basic and diluted share is due primarily to: (i) increases in annual minimum returns and rents that resulted from HPT’s funding of improvements to its hotels and travel centers; (ii) increases in FF&E reserve income and deposits under HPT’s hotel agreements; and (iii) lower interest expense as a result of HPT’s debt refinancings in 2014.

Normalized FFO for the year ended December 31, 2014 were $493.4 million, or $3.30 and $3.29 per share, basic and diluted, respectively, compared to Normalized FFO for the year ended December 31, 2013 of $410.4 million, or $2.99 and $2.98 per share, basic and diluted, respectively.

  • Comparable Hotel RevPAR: For the quarter ended December 31, 2014 compared to the same period in 2013 for HPT’s 290 hotels that were owned continuously since October 1, 2013: average daily rate, or ADR, increased 7.4% to $113.20; occupancy increased 1.9 percentage points to 70.7%; and revenue per available room, or RevPAR, increased 10.4% to $80.03.

For the year ended December 31, 2014 compared to year ended December 31, 2013 for HPT’s 288 comparable hotels that were owned continuously since January 1, 2013: ADR increased 6.1% to $112.97; occupancy increased 2.8 percentage points to 74.9%; and RevPAR increased 10.2% to $84.61.

  • Comparable RevPAR for Hotels Not Under Renovation: During the quarter ended December 31, 2014, HPT had 16 comparable hotels under renovation for all or part of the quarter. For the quarter ended December 31, 2014 compared to the same period in 2013 for HPT’s 274 comparable hotels not under renovation that were owned continuously since October 1, 2013: ADR increased 7.2% to $113.38; occupancy increased 2.6 percentage points to 71.5%; and RevPAR increased 11.3% to $81.07.

During the year ended December 31, 2014, HPT had 34 comparable hotels under renovation for all or part of the year. For the year ended December 31, 2014 compared to the year ended December 31, 2013 for HPT’s 254 comparable hotels not under renovation that were owned continuously since January 1, 2013: ADR increased 5.5% to $111.57; occupancy increased 4.1 percentage points to 76.7%; and RevPAR increased 11.4% to $85.57.

  • RevPAR (all hotels): For the quarter ended December 31, 2014 compared to the same period in 2013 for HPT’s 291 hotels: ADR increased 7.4% to $113.50; occupancy increased 1.9 percentage points to 70.7%; and RevPAR increased 10.4% to $80.24.

For the year ended December 31, 2014 compared to the year ended December 31, 2013 for HPT’s 291 hotels: ADR increased 6.0% to $113.27; occupancy increased 2.8 percentage points to 74.7%; and RevPAR increased 10.1% to $84.61.

  • Hotel Coverage of Minimum Returns and Rents: For the three months ended December 31, 2014, the aggregate coverage ratio of (x) total property level revenues minus FF&E reserve escrows, if any, and all property level expenses which are not subordinated to minimum returns and minimum rent payments to HPT to (y) HPT’s minimum returns and rents due from hotels increased to 0.82x from 0.75x for the three months ended December 31, 2013.

For the year ended December 31, 2014, the aggregate coverage ratio of (x) total property level revenues minus FF&E reserve escrows, if any, and all property level expenses which are not subordinated to minimum returns and minimum rent payments to HPT to (y) HPT’s minimum returns and rents due from hotels increased to 0.93x from 0.85x for the year ended December 31, 2013.

As of December 31, 2014, approximately 68% of HPT’s aggregate annual minimum returns and rents from its hotels were secured by guarantees or security deposits from HPT’s managers and tenants pursuant to the terms of HPT’s hotel operating agreements.

  • Recent Investment and Sales Activity: During the three months ended December 31, 2014, HPT began marketing for sale its Courtyard by Marriott hotel in Norcross, GA with a net book value of $4.1 million at December 31, 2014.

In January 2015, HPT entered an agreement to acquire a 300 room full service hotel located in Rosemont, IL for $35.5 million, excluding closing costs. HPT plans to add this “Holiday Inn & Suites” branded hotel to its management agreement with a subsidiary of InterContinental Hotels Group, plc (LON: IHG; NYSE: IHG (ADRs)), or InterContinental.

To view full quarterly and 2014 financial results please visit:

http://investor.shareholder.com/hptreit/releasedetail.cfm?releaseid=898854

Ashford Trust Reports Fourth Quarter And Year End 2014 Results

11.3% RevPAR Increase for All Hotels for the Fourth Quarter

Hotel EBITDA Margin Increase of 194 basis points for All Hotels

Completes Spin-Off of Ashford Inc.

Announces Formation of Ashford Hospitality Select

FINANCIAL AND OPERATING HIGHLIGHTS

  • During the quarter, the Company completed the spin-off of Ashford Inc., which started trading under the ticker symbol “AINC” on November 13, 2014, on the NYSE MKT Exchange
  • RevPAR for all Ashford Trust hotels increased 11.3% during the quarter
  • RevPAR for all Ashford Trust hotels not under renovation increased 12.6% during the quarter
  • Hotel EBITDA increased 17.6% for all Ashford Trust hotels
  • Hotel EBITDA Margin increased 194 basis points for all Ashford Trust hotels
  • Hotel EBITDA flow-through was 49% for all Ashford Trust hotels
  • Net loss attributable to common stockholders for the Company was $22.4 million, or $0.25 per diluted share, compared with net loss attributable to common stockholders of $25.9 million, or $0.32 per diluted share, in the prior-year quarter
  • Adjusted funds from operations (AFFO) for the Company was $0.17 per diluted share for the quarter as compared with $0.14 from the prior-year quarter
    • The prior year results include the operations of the Ashford Prime Portfolio prior to its spin-off from Ashford Trust completed on November 19, 2013
  • On December 19, 2014, the Company announced a definitive agreement in which Ashford Trust will acquire the remaining 28.26% ownership interest of the Highland Hospitality Portfolio from its joint venture partner, Prudential Real Estate Investors
  • Subsequent to the quarter end, on January 5, 2015 the Company announced it had refinanced two mortgage loans with an outstanding balance of approximately $354 million with new loans totaling $478 million resulting in over $100 million of excess proceeds after closing costs and reserves
  • On January 29, 2014, the Company announced a plan to form Ashford Hospitality Select (“Ashford Select”), dedicated to investing primarily in premium-branded select-service hotels, including extended stay hotels in the U.S.
  • On January 30, 2015 the Company priced a follow-on public offering of 9,500,000 shares of common stock at $10.65 per share. The underwriter subsequently exercised its option in part and purchased an additional 1,029,450 shares from the Company. In total, the Company issued 10,529,450 shares of common stock at $10.65 per share for net proceeds of $111.1 million.
  • On February 9, 2015, the Company closed on the acquisition of the 168-room Lakeway Resort & Spa in Austin, TX for a total consideration of $33.5 million ($199,000 per key)
  • On February 25, 2015, Ashford Trust closed on the acquisition of the 232-room Marriott Memphis East hotel for total consideration of $43.5 million in cash ($187,500 per key)

To view full quarterly and 2014 financial results please visit:

http://www.ahtreit.com/resourcefiles/pdf/aht-reports-fourth-quarter-and-year-end.pdf