10-Q 1 soho-10q_20150930.htm 10-Q soho-10q_20150930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

 

SOTHERLY HOTELS INC.

(Exact name of registrant as specified in its charter)

 

 

MARYLAND

001-32379

20-1531029

(State or Other Jurisdiction of

Incorporation or Organization)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

 

SOTHERLY HOTELS LP

(Exact name of registrant as specified in its charter)

 

 

DELAWARE

001-36091

20-1965427

(State or Other Jurisdiction of

Incorporation or Organization)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

 

410 West Francis Street

Williamsburg, Virginia 23185

(757) 229-5648

(Address and Telephone Number of Principal Executive Offices)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Sotherly Hotels Inc.    Yes  x    No  ¨     Sotherly Hotels LP    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.)

Sotherly Hotels Inc.    Yes  x    No  ¨     Sotherly Hotels LP    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Securities Exchange Act. (Check one):

Sotherly Hotels Inc.

 

Large Accelerated Filer

¨

 

 

Accelerated Filer

¨

 

 

 

 

 

 

Non-accelerated Filer

¨

 

 

Smaller Reporting Company

x

 

Sotherly Hotels LP

 

Large Accelerated Filer

¨

 

 

Accelerated Filer

¨

 

 

 

 

 

 

Non-accelerated Filer

x

 

 

Smaller Reporting Company

¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    

Sotherly Hotels Inc.    Yes  ¨    No  x Sotherly Hotels LP    Yes  ¨    No  x

As of November 10, 2015, there were 14,490,714 shares of Sotherly Hotels Inc.’s common stock issued and outstanding.  

 

 


EXPLANATORY NOTE

We refer to Sotherly Hotels Inc. as the “Company,” Sotherly Hotels LP as the “Operating Partnership,” the Company’s common stock as “Common Stock,” the Company’s preferred stock as “Preferred Stock,” and the Operating Partnership’s preferred interest as the “Preferred Interest.”  References to “we” and “our” mean the Company, its Operating Partnership and its subsidiaries and predecessors, collectively, unless the context otherwise requires or where otherwise indicated.

The Company conducts virtually all of its activities through the Operating Partnership and is its sole general partner. The partnership agreement provides that the Operating Partnership will assume and pay when due, or reimburse the Company for payment of, all costs and expenses relating to the ownership and operations of, or for the benefit of, the Operating Partnership. The partnership agreement further provides that all expenses of the Company are deemed to be incurred for the benefit of the Operating Partnership.

This report combines the Quarterly Reports on Form 10-Q for the period ended September 30, 2015 of the Company and the Operating Partnership. We believe combining the quarterly reports into this single report results in the following benefits:

 

·

combined reports better reflect how management and investors view the business as a single operating unit;

 

·

combined reports enhance investors' understanding of the Company and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management;

 

·

combined reports are more efficient for the Company and the Operating Partnership and result in savings in time, effort and expense; and

 

·

combined reports are more efficient for investors by reducing duplicative disclosure and providing a single document for their review.

To help investors understand the significant differences between the Company and the Operating Partnership, this report presents the following separate sections for each of the Company and the Operating Partnership:

 

·

Consolidated Financial Statements;

 

·

the following Notes to Consolidated Financial Statements:

 

·

Note 8 – Equity; and

 

·

Note 14 – Income (Loss) Per Share and Per Unit;

 

·

Item 4 - Controls and Procedures; and

 

·

Item 6 - Certifications of CEO and CFO Pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act.

 

 

2


SOTHERLY HOTELS INC.

SOTHERLY HOTELS LP

INDEX

 

 

 

 

 

Page

 

 

 

 

 

PART I

Item 1.

 

Financial Statements

 

4

 

 

Sotherly Hotels Inc.

 

4

 

 

Consolidated Balance Sheets as of September 30, 2015 (unaudited) and December 31, 2014

 

4

 

 

Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended September 30, 2015 and 2014

 

5

 

 

Consolidated Statement of Changes in Equity (unaudited) for the Nine Months Ended September 30, 2015

 

6

 

 

Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended September 30, 2015 and 2014

 

7

 

 

Sotherly Hotels LP

 

8

 

 

Consolidated Balance Sheets as of September 30, 2015 (unaudited) and December 31, 2014

 

8

 

 

Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended September 30, 2015 and 2014

 

9

 

 

Consolidated Statement of Changes in Partners’ Capital (unaudited) for the Nine Months Ended September 30, 2015

 

10

 

 

Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended September 30, 2015 and 2014

 

11

 

 

Notes to Consolidated Financial Statements

 

12

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

28

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

43

Item 4

 

Controls and Procedures

 

44

 

 

 

 

 

PART II

Item 1.

 

Legal Proceedings

 

46

Item 1A.

 

Risk Factors

 

46

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

46

Item 3.

 

Defaults Upon Senior Securities

 

46

Item 4.

 

Mine Safety Disclosures

 

46

Item 5.

 

Other Information

 

46

Item 6.

 

Exhibits

 

47

 

3


PART I

 

 

Item 1.

Financial Statements

SOTHERLY HOTELS INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

September 30, 2015

 

 

December 31, 2014

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Investment in hotel properties, net

 

$

354,933,161

 

 

$

260,192,153

 

Investment in joint venture

 

 

 

 

 

1,982,107

 

Cash and cash equivalents

 

 

15,470,385

 

 

 

16,634,499

 

Restricted cash

 

 

6,340,463

 

 

 

6,621,864

 

Accounts receivable, net

 

 

4,749,336

 

 

 

1,908,762

 

Accounts receivable-affiliate

 

 

287,328

 

 

 

197,674

 

Prepaid expenses, inventory and other assets

 

 

4,893,091

 

 

 

3,334,401

 

Deferred income taxes

 

 

4,027,172

 

 

 

3,543,295

 

Deferred financing costs, net

 

 

4,343,069

 

 

 

5,405,288

 

TOTAL ASSETS

 

$

395,044,005

 

 

$

299,820,043

 

LIABILITIES

 

 

 

 

 

 

 

 

Mortgage loans

 

$

269,094,175

 

 

$

205,291,657

 

Unsecured notes

 

 

52,900,000

 

 

 

52,900,000

 

Accounts payable and accrued expenses

 

 

14,591,112

 

 

 

12,044,886

 

Advance deposits

 

 

2,222,728

 

 

 

1,220,729

 

Dividends and distributions payable

 

 

1,335,323

 

 

 

852,914

 

TOTAL LIABILITIES

 

$

340,143,338

 

 

$

272,310,186

 

Commitments and contingencies

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

Sotherly Hotels Inc. stockholders’ equity

 

 

 

 

 

 

 

 

Preferred stock, par value $0.01, 972,350 shares authorized, 0 shares

   issued and outstanding

 

 

 

 

 

 

Common stock, par value $0.01, 49,000,000 shares authorized,

   14,490,714 shares and 10,570,932 shares issued and outstanding

   at September 30, 2015 and December 31, 2014, respectively

 

 

144,907

 

 

 

105,709

 

Additional paid in capital

 

 

82,766,931

 

 

 

58,659,799

 

Distributions in excess of retained earnings

 

 

(32,209,407

)

 

 

(35,388,313

)

Total Sotherly Hotels Inc. stockholders’ equity

 

 

50,702,431

 

 

 

23,377,195

 

Noncontrolling interest

 

 

4,198,236

 

 

 

4,132,662

 

TOTAL EQUITY

 

 

54,900,667

 

 

 

27,509,857

 

TOTAL LIABILITIES AND OWNERS' EQUITY

 

$

395,044,005

 

 

$

299,820,043

 

 

The accompanying notes are an integral part of these financial statements.

 

 

4


SOTHERLY HOTELS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2015

 

 

September 30, 2014

 

 

September 30, 2015

 

 

September 30, 2014

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms department

 

$

24,132,181

 

 

$

22,240,896

 

 

$

71,819,966

 

 

$

65,110,333

 

Food and beverage department

 

 

7,556,969

 

 

 

7,643,454

 

 

 

23,889,092

 

 

 

22,915,192

 

Other operating departments

 

 

2,252,725

 

 

 

1,880,103

 

 

 

6,073,555

 

 

 

5,089,017

 

Total revenue

 

 

33,941,875

 

 

 

31,764,453

 

 

 

101,782,613

 

 

 

93,114,542

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms department

 

 

6,657,947

 

 

 

6,175,342

 

 

 

18,998,964

 

 

 

17,205,451

 

Food and beverage department

 

 

5,562,404

 

 

 

5,417,434

 

 

 

16,668,025

 

 

 

15,424,254

 

Other operating departments

 

 

491,751

 

 

 

327,942

 

 

 

1,192,917

 

 

 

864,949

 

Indirect

 

 

13,245,062

 

 

 

12,190,045

 

 

 

37,046,275

 

 

 

33,863,830

 

Total hotel operating expenses

 

 

25,957,164

 

 

 

24,110,763

 

 

 

73,906,181

 

 

 

67,358,484

 

Depreciation and amortization

 

 

3,374,209

 

 

 

3,472,760

 

 

 

9,583,506

 

 

 

8,896,057

 

Loss on disposal of assets

 

 

207,235

 

 

 

 

 

 

201,835

 

 

 

 

Corporate general and administrative

 

 

2,437,428

 

 

 

1,039,318

 

 

 

5,379,032

 

 

 

3,738,314

 

Total operating expenses

 

 

31,976,036

 

 

 

28,622,841

 

 

 

89,070,554

 

 

 

79,992,855

 

NET OPERATING INCOME

 

 

1,965,839

 

 

 

3,141,612

 

 

 

12,712,059

 

 

 

13,121,687

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(4,245,679

)

 

 

(3,994,261

)

 

 

(11,860,649

)

 

 

(10,803,127

)

Interest income

 

 

15,480

 

 

 

6,630

 

 

 

40,888

 

 

 

13,785

 

Equity income (loss) in joint venture

 

 

8,173

 

 

 

(156,165

)

 

 

506,890

 

 

 

248,803

 

Loss on early debt extinguishment

 

 

(74,824

)

 

 

 

 

 

(772,907

)

 

 

 

Unrealized loss on hedging activities

 

 

(106,808

)

 

 

 

 

 

(106,808

)

 

 

 

Gain on change in control

 

 

6,560,958

 

 

 

 

 

 

6,560,958

 

 

 

 

Gain on involuntary conversion of asset

 

 

 

 

 

 

 

 

32,433

 

 

 

 

Net income (loss) before income taxes

 

 

4,123,139

 

 

 

(1,002,184

)

 

 

7,112,864

 

 

 

2,581,148

 

Income tax (provision) benefit

 

 

513,505

 

 

 

722,170

 

 

 

(3,255

)

 

 

893,706

 

Net income (loss)

 

 

4,636,644

 

 

 

(280,014

)

 

 

7,109,609

 

 

 

3,474,854

 

Less: Net (income) loss attributable to the

   noncontrolling interest

 

 

(764,250

)

 

 

65,112

 

 

 

(1,230,773

)

 

 

(740,065

)

Net income (loss) attributable to the Company

 

$

3,872,394

 

 

$

(214,902

)

 

$

5,878,836

 

 

$

2,734,789

 

Net income (loss) per share attributable to

   the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.27

 

 

$

(0.02

)

 

$

0.49

 

 

$

0.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

14,247,671

 

 

 

10,353,988

 

 

 

11,884,110

 

 

 

10,311,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

5


SOTHERLY HOTELS INC.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-

 

 

in Excess of

 

 

Noncontrolling

 

 

 

 

 

 

 

Shares

 

 

Par Value

 

 

In Capital

 

 

Retained Earnings

 

 

Interest

 

 

Total

 

Balances at December 31, 2014

 

 

10,570,932

 

 

$

105,709

 

 

$

58,659,799

 

 

$

(35,388,313

)

 

$

4,132,662

 

 

$

27,509,857

 

Issuance of unrestricted common stock awards

 

 

26,350

 

 

 

264

 

 

 

193,936

 

 

 

 

 

 

 

 

 

194,200

 

Issuance of restricted common stock awards

 

 

9,750

 

 

 

97

 

 

 

71,760

 

 

 

 

 

 

 

 

 

71,857

 

Issuance of common stock from ATM sales

 

 

98,682

 

 

 

987

 

 

 

681,222

 

 

 

 

 

 

 

 

 

682,209

 

Issuance of common stock from equity offering

 

 

3,435,000

 

 

 

34,350

 

 

 

22,534,259

 

 

 

 

 

 

 

 

 

22,568,609

 

Conversion of Operating Partnership units into shares of common stock

 

 

350,000

 

 

 

3,500

 

 

 

611,015

 

 

 

 

 

 

(614,515

)

 

 

 

Amortization of restricted stock award

 

 

 

 

 

 

 

 

14,940

 

 

 

 

 

 

 

 

 

14,940

 

Dividends and distributions declared

 

 

 

 

 

 

 

 

 

 

 

(2,699,930

)

 

 

(550,684

)

 

 

(3,250,614

)

Net income

 

 

 

 

 

 

 

 

 

 

 

5,878,836

 

 

 

1,230,773

 

 

 

7,109,609

 

Balances at September 30, 2015

 

 

14,490,714

 

 

$

144,907

 

 

$

82,766,931

 

 

$

(32,209,407

)

 

$

4,198,236

 

 

$

54,900,667

 

 

The accompanying notes are an integral part of these financial statements.

 

 

6


SOTHERLY HOTELS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2015

 

 

September 30, 2014

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

7,109,609

 

 

$

3,474,854

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

9,583,506

 

 

 

8,896,057

 

Gain on change in control

 

 

(6,560,958

)

 

 

 

Equity income in joint venture

 

 

(506,890

)

 

 

(248,803

)

Amortization of deferred financing costs

 

 

991,858

 

 

 

1,117,373

 

Amortization of mortgage premium

 

 

(12,341

)

 

 

 

Gain on involuntary conversion

 

 

(32,433

)

 

 

 

Unrealized loss on derivative instrument

 

 

106,808

 

 

 

 

Loss on disposal of assets

 

 

201,835

 

 

 

 

Loss on early debt extinguishment

 

 

772,907

 

 

 

 

Charges related to equity-based compensation

 

 

280,996

 

 

 

240,585

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Restricted cash

 

 

(816,271

)

 

 

(896,342

)

Accounts receivable

 

 

(2,699,986

)

 

 

(529,763

)

Prepaid expenses, inventory and other assets

 

 

(955,695

)

 

 

(912,124

)

Deferred income taxes

 

 

(483,877

)

 

 

(1,037,181

)

Accounts payable and other accrued liabilities

 

 

1,443,460

 

 

 

6,260,015

 

Advance deposits

 

 

1,001,999

 

 

 

387,497

 

Accounts receivable - affiliate

 

 

(89,654

)

 

 

36,185

 

Net cash provided by operating activities

 

 

9,334,873

 

 

 

16,788,353

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Acquisition of hotel properties

 

 

(25,525,754

)

 

 

(61,106,085

)

Improvements and additions to hotel properties

 

 

(15,694,033

)

 

 

(5,265,006

)

Distributions from joint venture

 

 

600,000

 

 

 

750,000

 

Funding of restricted cash reserves

 

 

(3,539,948

)

 

 

(2,656,793

)

Proceeds of restricted cash reserves

 

 

5,797,378

 

 

 

1,788,612

 

Proceeds from sale of assets

 

 

2,027,113

 

 

 

 

Proceeds from insurance conversion

 

 

124,609

 

 

 

 

Net cash used in investing activities

 

 

(36,210,635

)

 

 

(66,489,272

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds of mortgage debt

 

 

125,000,000

 

 

 

45,600,000

 

Proceeds of loans

 

 

-

 

 

 

19,000,000

 

Proceeds from the sale of common stock

 

 

23,250,818

 

 

 

127,964

 

Dividends and distributions paid

 

 

(2,768,207

)

 

 

(1,833,493

)

Payment of deferred financing costs

 

 

(1,326,663

)

 

 

(1,755,002

)

Payments on mortgage debt and loans

 

 

(118,444,300

)

 

 

(3,898,698

)

Net cash provided by financing activities

 

 

25,711,648

 

 

 

57,240,771

 

Net (decrease) increase in cash and cash equivalents

 

 

(1,164,114

)

 

 

7,539,852

 

Cash and cash equivalents at the beginning of the period

 

 

16,634,499

 

 

 

9,376,628

 

Cash and cash equivalents at the end of the period

 

$

15,470,385

 

 

$

16,916,480

 

Supplemental disclosures:

 

 

 

 

 

 

 

 

Cash paid during the period for interest

 

$

10,702,488

 

 

$

8,976,785

 

Cash paid during the period for income taxes

 

$

570,762

 

 

$

238,639

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Proceeds of mortgage debt contributed to restricted cash reserves

 

$

 

 

$

1,500,000

 

Change from assumed loan on Crowne Plaza Hollywood Beach Resort acquisition

 

$

57,000,000

 

 

$

 

Change in loan premium on the Crowne Plaza Hollywood Beach Resort assumed loan

 

$

246,815

 

 

$

 

Change in amount of hotel property improvements in accounts payable and

   accrued liabilities

 

$

657,990

 

 

$

 

 

The accompanying notes are an integral part of these financial statements.

 

 

7


SOTHERLY HOTELS LP

CONSOLIDATED BALANCE SHEETS

 

 

 

September 30, 2015

 

 

December 31, 2014

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Investment in hotel properties, net

 

$

354,933,161

 

 

$

260,192,153

 

Investment in joint venture

 

 

 

 

 

1,982,107

 

Cash and cash equivalents

 

 

15,470,385

 

 

 

16,634,499

 

Restricted cash

 

 

6,340,463

 

 

 

6,621,864

 

Accounts receivable, net

 

 

4,749,336

 

 

 

1,908,762

 

Accounts receivable-affiliate

 

 

287,328

 

 

 

197,674

 

Prepaid expenses, inventory and other assets

 

 

4,893,091

 

 

 

3,334,401

 

Deferred income taxes

 

 

4,027,172

 

 

 

3,543,295

 

Deferred financing costs, net

 

 

4,343,069

 

 

 

5,405,288

 

TOTAL ASSETS

 

$

395,044,005

 

 

$

299,820,043

 

LIABILITIES

 

 

 

 

 

 

 

 

Mortgage loans

 

$

269,094,175

 

 

$

205,291,657

 

Unsecured notes

 

 

52,900,000

 

 

 

52,900,000

 

Accounts payable and other accrued liabilities

 

 

14,591,112

 

 

 

12,044,886

 

Advance deposits

 

 

2,222,728

 

 

 

1,220,729

 

Dividends and distributions payable

 

 

1,335,323

 

 

 

852,914

 

TOTAL LIABILITIES

 

$

340,143,338

 

 

$

272,310,186

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (see Note 6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PARTNERS’ CAPITAL

 

 

 

 

 

 

 

 

General Partner: 166,916 and 131,218 units issued and outstanding as of

   September 30, 2015 and December 31, 2014, respectively

 

 

794,767

 

 

 

520,791

 

Limited Partners: 16,524,625 and 12,990,541 units issued and outstanding

   as of September 30, 2015 and December 31, 2014, respectively

 

 

54,105,900

 

 

 

26,989,066

 

TOTAL PARTNERS’ CAPITAL

 

 

54,900,667

 

 

 

27,509,857

 

TOTAL LIABILITIES AND PARTNERS’ CAPITAL

 

$

395,044,005

 

 

$

299,820,043

 

 

The accompanying notes are an integral part of these financial statements.

 

 

8


SOTHERLY HOTELS LP

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2015

 

 

September 30, 2014

 

 

September 30, 2015

 

 

September 30, 2014

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms department

 

$

24,132,181

 

 

$

22,240,896

 

 

$

71,819,966

 

 

$

65,110,333

 

Food and beverage department

 

 

7,556,969

 

 

 

7,643,454

 

 

 

23,889,092

 

 

 

22,915,192

 

Other operating departments

 

 

2,252,725

 

 

 

1,880,103

 

 

 

6,073,555

 

 

 

5,089,017

 

Total revenue

 

 

33,941,875

 

 

 

31,764,453

 

 

 

101,782,613

 

 

 

93,114,542

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms department

 

 

6,657,947

 

 

 

6,175,342

 

 

 

18,998,964

 

 

 

17,205,451

 

Food and beverage department

 

 

5,562,404

 

 

 

5,417,434

 

 

 

16,668,025

 

 

 

15,424,254

 

Other operating departments

 

 

491,751

 

 

 

327,942

 

 

 

1,192,917

 

 

 

864,949

 

Indirect

 

 

13,245,062

 

 

 

12,190,045

 

 

 

37,046,275

 

 

 

33,863,830

 

Total hotel operating expenses

 

 

25,957,164

 

 

 

24,110,763

 

 

 

73,906,181

 

 

 

67,358,484

 

Depreciation and amortization

 

 

3,374,209

 

 

 

3,472,760

 

 

 

9,583,506

 

 

 

8,896,057

 

Loss on disposal of assets

 

 

207,235

 

 

 

 

 

 

201,835

 

 

 

 

Corporate general and administrative

 

 

2,437,428

 

 

 

1,039,318

 

 

 

5,379,032

 

 

 

3,738,314

 

Total operating expenses

 

 

31,976,036

 

 

 

28,622,841

 

 

 

89,070,554

 

 

 

79,992,855

 

NET OPERATING INCOME

 

 

1,965,839

 

 

 

3,141,612

 

 

 

12,712,059

 

 

 

13,121,687

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(4,245,679

)

 

 

(3,994,261

)

 

 

(11,860,649

)

 

 

(10,803,127

)

Interest income

 

 

15,480

 

 

 

6,630

 

 

 

40,888

 

 

 

13,785

 

Equity income(loss) in joint venture

 

 

8,173

 

 

 

(156,165

)

 

 

506,890

 

 

 

248,803

 

Loss on early debt extinguishment

 

 

(74,824

)

 

 

 

 

 

(772,907

)

 

 

 

Unrealized loss on hedging activities

 

 

(106,808

)

 

 

 

 

 

(106,808

)

 

 

 

Gain on change in control

 

 

6,560,958

 

 

 

 

 

 

6,560,958

 

 

 

 

Gain on involuntary conversion of asset

 

 

 

 

 

 

 

 

32,433

 

 

 

 

Net income (loss) before income taxes

 

 

4,123,139