Maryland | 001-34572 | 27-0372343 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
4300 Wilson Boulevard, Suite 625 Arlington, VA | 22203 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Exhibit Description | |
Press release dated May 1, 2018. |
Date: May 1, 2018 | CHESAPEAKE LODGING TRUST | |||||
By: | /s/ Graham J. Wootten | |||||
Graham J. Wootten | ||||||
Senior Vice President and Chief Accounting Officer |
Exhibit 99.1 | ||
PRESS RELEASE For Immediate Release Contact: Douglas W. Vicari (571) 349-9452 | ||
• | Comparable RevPAR: 3.5% increase for the 21-hotel portfolio over the same period in 2017. |
• | Comparable Adjusted Hotel EBITDAre Margin: 90 basis point increase to 27.9% for the 21-hotel portfolio over the same period in 2017. |
• | Adjusted Hotel EBITDAre: $37.7 million. |
• | Adjusted Corporate EBITDAre: $32.3 million. |
• | Net income available to common shareholders: $6.5 million or $0.11 per diluted common share. |
• | Adjusted FFO: $25.7 million or $0.43 per diluted common share. |
PRESS RELEASE For Immediate Release Contact: Douglas W. Vicari (571) 349-9452 | ||
Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
Total revenue | $ | 135.0 | $ | 134.9 | ||||
Net income available to common shareholders | $ | 6.5 | $ | 5.6 | ||||
Net income per diluted common share | $ | 0.11 | $ | 0.09 | ||||
Adjusted Hotel EBITDAre(1) | $ | 37.7 | $ | 36.0 | ||||
Adjusted Corporate EBITDAre(1) | $ | 32.3 | $ | 31.1 | ||||
AFFO available to common shareholders(1) | $ | 25.7 | $ | 24.2 | ||||
AFFO per diluted common share | $ | 0.43 | $ | 0.41 | ||||
Weighted-average number of diluted common shares outstanding | 59,718,986 | 58,995,589 |
Three Months Ended March 31, | ||||||||||
2018 | 2017 | Change | ||||||||
Comparable Occupancy | 81.0 | % | 76.6 | % | 440 bps | |||||
Comparable ADR | $ | 213.07 | $ | 217.57 | (2.1)% | |||||
Comparable RevPAR | $ | 172.55 | $ | 166.68 | 3.5% | |||||
Comparable Adjusted Hotel EBITDAre(1) | $ | 37,664 | $ | 35,744 | 5.4% | |||||
Comparable Adjusted Hotel EBITDAre Margin(1) | 27.9 | % | 27.0 | % | 90 bps |
PRESS RELEASE For Immediate Release Contact: Douglas W. Vicari (571) 349-9452 | ||
Second Quarter 2018 Outlook | Full Year 2018 Outlook | ||||||||||||||
Low | High | Low | High | ||||||||||||
CONSOLIDATED: | |||||||||||||||
Net income available to common shareholders | $ | 22.4 | $ | 24.4 | $ | 62.9 | $ | 69.4 | |||||||
Net income per diluted common share | $ | 0.37 | $ | 0.41 | $ | 1.06 | $ | 1.17 | |||||||
Adjusted Corporate EBITDAre | $ | 52.6 | $ | 54.8 | $ | 175.5 | $ | 183.0 | |||||||
AFFO available to common shareholders | $ | 41.4 | $ | 43.4 | $ | 138.1 | $ | 144.6 | |||||||
AFFO per diluted common share | $ | 0.69 | $ | 0.73 | $ | 2.33 | $ | 2.43 | |||||||
Corporate cash general and administrative expense | $ | 2.8 | $ | 3.0 | $ | 10.8 | $ | 11.8 | |||||||
Corporate non-cash general and administrative expense | $ | 1.9 | $ | 1.9 | $ | 7.6 | $ | 7.6 | |||||||
Weighted-average number of diluted common shares outstanding | 59.8 | 59.8 | 59.4 | 59.4 | |||||||||||
HOTEL PORTFOLIO: | |||||||||||||||
RevPAR | $ | 208.00 | $ | 212.00 | $193.00 | $197.00 | |||||||||
RevPAR change as compared to 2017(1) | 2.5 | % | 4.5 | % | 3.0 | % | 5.0 | % | |||||||
Adjusted Hotel EBITDAre | $ | 57.2 | $ | 59.6 | $ | 193.8 | $ | 202.3 | |||||||
Adjusted Hotel EBITDAre Margin | 35.4 | % | 36.2 | % | 32.1 | % | 32.9 | % | |||||||
Adjusted Hotel EBITDAre Margin change as compared to 2017(1) | 25 bps | 100 bps | 50 bps | 125 bps |
PRESS RELEASE For Immediate Release Contact: Douglas W. Vicari (571) 349-9452 | ||
PRESS RELEASE For Immediate Release Contact: Douglas W. Vicari (571) 349-9452 | ||
March 31, 2018 | December 31, 2017 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Property and equipment, net | $ | 1,813,771 | $ | 1,823,217 | ||||
Intangible assets, net | 35,112 | 35,256 | ||||||
Cash and cash equivalents | 31,903 | 44,314 | ||||||
Restricted cash | 30,067 | 30,602 | ||||||
Accounts receivable, net | 25,365 | 20,769 | ||||||
Prepaid expenses and other assets | 27,981 | 21,202 | ||||||
Total assets | $ | 1,964,199 | $ | 1,975,360 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Long-term debt | $ | 831,684 | $ | 829,552 | ||||
Accounts payable and accrued expenses | 65,968 | 65,783 | ||||||
Other liabilities | 31,438 | 31,597 | ||||||
Total liabilities | 929,090 | 926,932 | ||||||
Commitments and contingencies | ||||||||
Preferred shares, $.01 par value; 100,000,000 shares authorized; no shares issued and outstanding, respectively | — | — | ||||||
Common shares, $.01 par value; 400,000,000 shares authorized; 60,381,164 and 59,941,088 shares issued and outstanding, respectively | 604 | 599 | ||||||
Additional paid-in capital | 1,191,047 | 1,190,250 | ||||||
Cumulative dividends in excess of net income | (162,337 | ) | (144,734 | ) | ||||
Accumulated other comprehensive income | 5,795 | 2,313 | ||||||
Total shareholders’ equity | 1,035,109 | 1,048,428 | ||||||
Total liabilities and shareholders’ equity | $ | 1,964,199 | $ | 1,975,360 | ||||
SUPPLEMENTAL CREDIT INFORMATION: | ||||||||
Fixed charge coverage ratio(1) | 3.10 | 3.00 | ||||||
Leverage ratio(1) | 39.1 | % | 39.2 | % |
(1) | Calculated as defined under the Trust’s revolving credit facility. |
Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
REVENUE | ||||||||
Rooms | $ | 100,613 | $ | 98,901 | ||||
Food and beverage | 27,633 | 29,312 | ||||||
Other | 6,779 | 6,661 | ||||||
Total revenue | 135,025 | 134,874 | ||||||
EXPENSES | ||||||||
Hotel operating expenses: | ||||||||
Rooms | 25,286 | 25,322 | ||||||
Food and beverage | 21,059 | 22,239 | ||||||
Other direct | 1,148 | 1,356 | ||||||
Indirect | 49,793 | 49,815 | ||||||
Total hotel operating expenses | 97,286 | 98,732 | ||||||
Depreciation and amortization | 19,208 | 18,787 | ||||||
Air rights contract amortization | 130 | 130 | ||||||
Corporate general and administrative | 5,378 | 4,935 | ||||||
Total operating expenses | 122,002 | 122,584 | ||||||
Operating income | 13,023 | 12,290 | ||||||
Interest expense | (8,844 | ) | (7,798 | ) | ||||
Income before income taxes | 4,179 | 4,492 | ||||||
Income tax benefit | 2,370 | 3,527 | ||||||
Net income | 6,549 | 8,019 | ||||||
Preferred share dividends | — | (2,422 | ) | |||||
Net income available to common shareholders | $ | 6,549 | $ | 5,597 | ||||
Net income per common share—basic and diluted | $ | 0.11 | $ | 0.09 | ||||
Weighted-average number of common shares outstanding: | ||||||||
Basic | 59,120,065 | 58,995,589 | ||||||
Diluted | 59,718,986 | 58,995,589 |
Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 6,549 | $ | 8,019 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 19,208 | 18,787 | ||||||
Air rights contract amortization | 130 | 130 | ||||||
Deferred financing costs amortization | 424 | 407 | ||||||
Share-based compensation | 1,948 | 1,990 | ||||||
Other | (75 | ) | (155 | ) | ||||
Changes in assets and liabilities: | ||||||||
Accounts receivable, net | (4,596 | ) | 207 | |||||
Prepaid expenses and other assets | (3,310 | ) | (4,429 | ) | ||||
Accounts payable and accrued expenses | 208 | (1,248 | ) | |||||
Other liabilities | (88 | ) | (13 | ) | ||||
Net cash provided by operating activities | 20,398 | 23,695 | ||||||
Cash flows from investing activities: | ||||||||
Improvements and additions to hotels | (10,165 | ) | (16,389 | ) | ||||
Net cash used in investing activities | (10,165 | ) | (16,389 | ) | ||||
Cash flows from financing activities: | ||||||||
Borrowings under revolving credit facility | 20,000 | 155,000 | ||||||
Repayments under revolving credit facility | (15,000 | ) | (10,000 | ) | ||||
Scheduled principal payments on mortgage debt | (3,292 | ) | (128,162 | ) | ||||
Payment of deferred financing costs | — | (36 | ) | |||||
Payment of dividends to common shareholders | (23,741 | ) | (24,693 | ) | ||||
Payment of dividends to preferred shareholders | — | (2,422 | ) | |||||
Repurchase of common shares | (1,146 | ) | (1,052 | ) | ||||
Net cash used in financing activities | (23,179 | ) | (11,365 | ) | ||||
Net decrease in cash, cash equivalents, and restricted cash | (12,946 | ) | (4,059 | ) | ||||
Cash, cash equivalents, and restricted cash, beginning of period | 74,916 | 79,188 | ||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 61,970 | $ | 75,129 |
Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
Net income | $ | 6,549 | $ | 8,019 | ||||
Add: Interest expense | 8,844 | 7,798 | ||||||
Depreciation and amortization | 19,208 | 18,787 | ||||||
Less: Income tax benefit | (2,370 | ) | (3,527 | ) | ||||
EBITDAre | 32,231 | 31,077 | ||||||
Add: Non-cash amortization(1) | 55 | (25 | ) | |||||
Adjusted Corporate EBITDAre | 32,286 | 31,052 | ||||||
Add: Corporate general and administrative | 5,378 | 4,935 | ||||||
Adjusted Hotel EBITDAre | 37,664 | 35,987 | ||||||
Less: Adjusted Hotel EBITDAre of hotel sold(2) | — | (243 | ) | |||||
Comparable Adjusted Hotel EBITDAre(3) | $ | 37,664 | $ | 35,744 | ||||
Total revenue | $ | 135,025 | $ | 134,874 | ||||
Less: Total revenue of hotel sold(2) | — | (2,389 | ) | |||||
Comparable total revenue(3) | $ | 135,025 | $ | 132,485 | ||||
Comparable Adjusted Hotel EBITDAre Margin(3) | 27.9 | % | 27.0 | % |
(1) | Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, unfavorable contract liability, and air rights contract. |
(2) | Reflects results of operations for The Hotel Minneapolis, Autograph Collection, which was sold on November 8, 2017. |
(3) | The Trust uses the term "comparable" to refer to metrics that include only those hotels owned for the entirety of the two periods being compared. |
Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
Net income | $ | 6,549 | $ | 8,019 | ||||
Add: Depreciation and amortization | 19,208 | 18,787 | ||||||
FFO | 25,757 | 26,806 | ||||||
Less: Preferred share dividends | — | (2,422 | ) | |||||
Dividends declared on unvested time-based awards | (121 | ) | (124 | ) | ||||
Undistributed earnings allocated to unvested time-based awards | — | — | ||||||
FFO available to common shareholders | 25,636 | 24,260 | ||||||
Add: Non-cash amortization(1) | 55 | (25 | ) | |||||
AFFO available to common shareholders | $ | 25,691 | $ | 24,235 | ||||
FFO per common share—basic and diluted | $ | 0.43 | $ | 0.41 | ||||
AFFO per common share—basic and diluted | $ | 0.43 | $ | 0.41 |
(1) | Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, unfavorable contract liability, and air rights contract. |
Three Months Ending June 30, 2018 | Year Ending December 31, 2018 | ||||||||||||||
Low | High | Low | High | ||||||||||||
Net income | $ | 22,520 | $ | 24,520 | $ | 63,380 | $ | 69,880 | |||||||
Add: Interest expense | 8,940 | 8,940 | 35,600 | 35,600 | |||||||||||
Income tax expense | 2,150 | 2,350 | 1,250 | 2,250 | |||||||||||
Depreciation and amortization | 18,940 | 18,940 | 75,000 | 75,000 | |||||||||||
EBITDAre | 52,550 | 54,750 | 175,230 | 182,730 | |||||||||||
Add: Non-cash amortization(1) | 50 | 50 | 220 | 220 | |||||||||||
Adjusted Corporate EBITDAre | 52,600 | 54,800 | 175,450 | 182,950 | |||||||||||
Add: Corporate general and administrative | 4,600 | 4,800 | 18,300 | 19,300 | |||||||||||
Adjusted Hotel EBITDAre | $ | 57,200 | $ | 59,600 | $ | 193,750 | $ | 202,250 | |||||||
Total revenue | $ | 161,400 | $ | 164,700 | $ | 603,000 | $ | 615,250 | |||||||
Adjusted Hotel EBITDAre Margin | 35.4 | % | 36.2 | % | 32.1 | % | 32.9 | % |
(1) | Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, and air rights contract. |
Three Months Ending June 30, 2018 | Year Ending December 31, 2018 | ||||||||||||||
Low | High | Low | High | ||||||||||||
Net income | $ | 22,520 | $ | 24,520 | $ | 63,380 | $ | 69,880 | |||||||
Add: Depreciation and amortization | 18,940 | 18,940 | 75,000 | 75,000 | |||||||||||
FFO | 41,460 | 43,460 | 138,380 | 144,880 | |||||||||||
Less: Dividends declared on unvested time-based awards | (120 | ) | (120 | ) | (480 | ) | (480 | ) | |||||||
Undistributed earnings allocated to unvested time-based awards | — | — | — | — | |||||||||||
FFO available to common shareholders | 41,340 | 43,340 | 137,900 | 144,400 | |||||||||||
Add: Non-cash amortization(1) | 50 | 50 | 220 | 220 | |||||||||||
AFFO available to common shareholders | $ | 41,390 | $ | 43,390 | $ | 138,120 | $ | 144,620 | |||||||
FFO per common share: | |||||||||||||||
Basic | $ | 0.70 | $ | 0.73 | $ | 2.33 | $ | 2.44 | |||||||
Diluted | $ | 0.69 | $ | 0.73 | $ | 2.32 | $ | 2.43 | |||||||
AFFO per common share: | |||||||||||||||
Basic | $ | 0.70 | $ | 0.73 | $ | 2.34 | $ | 2.45 | |||||||
Diluted | $ | 0.69 | $ | 0.73 | $ | 2.33 | $ | 2.43 | |||||||
Weighted-average number of common shares outstanding: | |||||||||||||||
Basic | 59,140 | 59,140 | 59,145 | 59,145 | |||||||||||
Diluted | 59,779 | 59,779 | 59,394 | 59,394 |
(1) | Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, and air rights contract. |
Hotel | Location | Rooms | Acquisition Date | |||||
1 | Hyatt Regency Boston | Boston, MA | 502 | March 18, 2010 | ||||
2 | Hilton Checkers Los Angeles | Los Angeles, CA | 193 | June 1, 2010 | ||||
3 | Boston Marriott Newton | Newton, MA | 430 | July 30, 2010 | ||||
4 | Le Meridien San Francisco | San Francisco, CA | 360 | December 15, 2010 | ||||
5 | Homewood Suites Seattle Convention Center | Seattle, WA | 195 | May 2, 2011 | ||||
6 | W Chicago – City Center | Chicago, IL | 403 | May 10, 2011 | ||||
7 | Hotel Indigo San Diego Gaslamp Quarter | San Diego, CA | 210 | June 17, 2011 | ||||
8 | Courtyard Washington Capitol Hill/Navy Yard | Washington, DC | 204 | June 30, 2011 | ||||
9 | Hotel Adagio San Francisco, Autograph Collection | San Francisco, CA | 171 | July 8, 2011 | ||||
10 | Hilton Denver City Center | Denver, CO | 613 | October 3, 2011 | ||||
11 | Hyatt Herald Square New York | New York, NY | 122 | December 22, 2011 | ||||
12 | W Chicago – Lakeshore | Chicago, IL | 520 | August 21, 2012 | ||||
13 | Hyatt Regency Mission Bay Spa and Marina | San Diego, CA | 429 | September 7, 2012 | ||||
14 | Hyatt Place New York Midtown South | New York, NY | 185 | March 14, 2013 | ||||
15 | W New Orleans – French Quarter | New Orleans, LA | 97 | March 28, 2013 | ||||
16 | Le Meridien New Orleans | New Orleans, LA | 410 | April 25, 2013 | ||||
17 | Hyatt Centric Fisherman’s Wharf | San Francisco, CA | 316 | May 31, 2013 | ||||
18 | Hyatt Centric Santa Barbara | Santa Barbara, CA | 200 | June 27, 2013 | ||||
19 | JW Marriott San Francisco Union Square | San Francisco, CA | 344 | October 1, 2014 | ||||
20 | Royal Palm South Beach Miami, a Tribute Portfolio Resort | Miami Beach, FL | 393 | March 9, 2015 | ||||
21 | Ace Hotel and Theater Downtown Los Angeles | Los Angeles, CA | 182 | April 30, 2015 | ||||
6,479 |
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