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8-K
RLJ LODGING TRUST filed this Form 8-K on 08/07/2018
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Press Release



RLJ Lodging Trust Reports Second Quarter 2018 Results

- Sold Embassy Suites Napa Valley for $102 million (post quarter-end); valued at nearly 15x trailing EBITDA
- RevPAR growth of 1.3%
- Pro forma Hotel EBITDA Margin of 35.0%


Bethesda, MD, August 7, 2018 – RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three and six months ended June 30, 2018.
 
Highlights
Sold Embassy Suites Napa Valley for $102 million, representing a valuation of nearly 15x trailing EBITDA, subsequent to quarter-end
Pro forma RevPAR increased 1.3%, Pro forma ADR increased 1.0%, and Pro forma Occupancy increased 0.3%
Pro forma Hotel EBITDA Margin of 35.0%
Net income increased 51.6% to $64.4 million
Adjusted EBITDA increased 54.1% to $159.8 million
Adjusted FFO per diluted common share and unit increased 2.8% to $0.73

“We continued the successful execution of our asset disposition strategy with our recent sale of the Embassy Suites Napa Valley,” commented Ross H. Bierkan, President and Chief Executive Officer. “With an unwavering focus, we have made meaningful progress in accomplishing our strategic objectives. Over the past year, we have generated $400 million from assets sales at an average EBITDA multiple of approximately 15x. With a healthy disposition pipeline, we are on pace to meet our incremental asset sales objective for 2018. Our leverage continues to be at our target and we have nearly realized our G&A synergies. With solid momentum and a talented team in place, I am confident that RLJ is well positioned to unlock meaningful value for shareholders in the years to come.”
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, EBITDAre, 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, 2018, increased $21.9 million to $64.4 million, representing a 51.6% increase over the comparable period in 2017. For the six months ended June 30, 2018, net income increased $24.0 million to $88.3 million, representing a 37.4% increase over the comparable period in 2017.

Pro forma RevPAR for the three months ended June 30, 2018, increased 1.3% over the comparable period in 2017, driven by a Pro forma ADR increase of 1.0%, and by a Pro forma Occupancy increase of

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0.3%. Excluding Louisville, Austin, and Denver, which experienced softness in the quarter, Pro forma RevPAR growth was 2.6%. For the six months ended June 30, 2018, Pro forma RevPAR increased 0.4% over the comparable period in 2017, driven by a Pro forma ADR increase of 0.1% and by a Pro forma Occupancy increase of 0.2%.

Pro forma Hotel EBITDA Margin for the three months ended June 30, 2018, was 35.0%, a decrease of 79 basis points over the comparable period in 2017. Increases in real estate taxes and insurance expense impacted Pro forma Hotel EBITDA Margin by approximately 45 basis points. For the six months ended June 30, 2018, Pro forma Hotel EBITDA Margin decreased 122 basis points over the comparable period in 2017 to 32.3%.

Pro forma Hotel EBITDA for the three months ended June 30, 2018, was $169.3 million, largely flat with the comparable period in 2017. For the three months ended June 30, 2017, Pro forma Hotel EBITDA includes results from prior ownership of $60.0 million from the hotel properties acquired pursuant to the FelCor merger.

For the six months ended June 30, 2018, Pro forma Hotel EBITDA decreased $9.3 million to $293.3 million, representing a 3.1% decrease over the comparable period in 2017. For the six months ended June 30, 2018, Pro forma Hotel EBITDA includes results from prior ownership of $106.7 million from the hotel properties acquired pursuant to the FelCor merger.

Adjusted FFO for the three months ended June 30, 2018, increased $39.2 million to $127.9 million, representing a 44.1% increase over the comparable period in 2017. For the six months ended June 30, 2018, Adjusted FFO increased $56.2 million to $209.4 million, representing a 36.7% increase over the comparable period in 2017.

Adjusted FFO per diluted common share and unit for the three months ended June 30, 2018, increased $0.02 to $0.73, representing a 2.8% increase over the comparable period in 2017. For the six months ended June 30, 2018, Adjusted FFO per diluted common share and unit decreased $0.03 to $1.20, representing a 2.4% decrease over the comparable period in 2017.

Adjusted EBITDA for the three months ended June 30, 2018, increased $56.1 million to $159.8 million, representing a 54.1% increase over the comparable period in 2017. For the six months ended June 30, 2018, Adjusted EBITDA increased $93.0 million to $275.6 million, representing a 50.9% increase over the comparable period in 2017.

Non-recurring items and other adjustments which were noteworthy for the three months ended June 30, 2018, include $3.5 million of other expenses outside of the normal course of operations, including certain costs associated with shareholder activism. For the six months ended June 30, 2018, non-recurring items and other adjustments which were noteworthy also include a gain on extinguishment of indebtedness of $7.7 million.
 
Non-recurring items are included in net income but are excluded from Adjusted EBITDA and Adjusted FFO, as applicable. A complete listing of non-recurring items is provided in the Non-GAAP reconciliation tables located in this press release.


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Net cash flow from operating activities totaled $195.8 million for the six months ended June 30, 2018, representing a 38.3% increase over the comparable period in 2017.

Balance Sheet
As of June 30, 2018, the Company had $382.5 million of unrestricted cash on its balance sheet, $350.0 million available on its revolving credit facility, and $2.5 billion of debt outstanding.

The Company’s ratio of net debt to Adjusted EBITDA for the trailing twelve-month period ended June 30, 2018, was 3.9x.

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 13, 2018, to shareholders of record as of June 29, 2018.

The Company's Board of Trustees declared a preferred dividend of $0.4875 on its Series A cumulative convertible preferred shares. The dividend was paid on July 31, 2018, to shareholders of record as of June 29, 2018.

Subsequent Events
On July 13, 2018, the Company sold the Embassy Suites Napa Valley for $102.0 million and paid off $25.9 million in outstanding first mortgage associated with the asset.

On July 20, 2018, the Company paid down its revolving credit facility by $75.0 million. Following the payment, the remaining outstanding balance on the revolving credit facility was $175.0 million.

2018 Outlook
The Company’s outlook includes all hotels owned as of August 7, 2018. Potential future acquisitions or dispositions could result in a material change to the Company’s outlook. The 2018 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.

The Company's 2018 outlook revisions only reflect the sale of the Embassy Suites Napa Valley. No other adjustments have been made.

For the full year 2018, the Company anticipates:
 
Current Outlook
Prior Outlook
Pro forma RevPAR growth
-0.5% to +1.0%
-0.5% to +1.0%
Pro forma Hotel EBITDA Margin
31.25% to 32.5%
31.25% to 32.5%
Pro forma Consolidated Hotel EBITDA
$555M to $586M
$562M to $593M
Adjusted EBITDA
$519M to $550M
$524M to $555M
Corporate Cash General & Administrative
$37M to $39M
$37M to $39M



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Earnings Call
The Company will conduct its quarterly analyst and investor conference call on August 8, 2018, at 9:00 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://www.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 that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio consists of 154 hotels with approximately 30,000 rooms located in 26 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.

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 Securities and Exchange Commission. 



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###
 Additional Contacts:
Leslie D. Hale, Chief Operating Officer – (301) 280-7774
For additional information or to receive press releases via email, please visit our website:
 http://www.rljlodgingtrust.com


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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) EBITDAre, (5) Adjusted EBITDA, (6) Hotel EBITDA, and (7) 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, EBITDAre, 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.
 
FFO
The Company calculates Funds from Operations (“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.

EBITDA and EBITDAre
Earnings Before Interest, Taxes, Depreciation, and Amortization (“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.

In addition to EBITDA, the Company presents EBITDAre in accordance with NAREIT guidelines, which defines EBITDAre as net income or loss (calculated in accordance with GAAP) excluding interest expense, income tax expense, depreciation and amortization expense, gains or losses from sales

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of real estate, impairment, and adjustments for unconsolidated partnerships and joint ventures. The Company believes that the presentation of EBITDAre provides useful information to investors regarding the Company’s operating performance and can facilitate comparisons of operating performance between periods and between REITs.

Adjustments to FFO and EBITDAre
The Company adjusts FFO and EBITDAre 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 or loss, FFO, EBITDA, and EBITDAre, are beneficial to an investor’s understanding of its operating performance. The Company adjusts FFO and EBITDAre for the following items:

Transaction Costs: The Company excludes transaction costs expensed during the period.
Non-Cash Expenses: The Company excludes the effect of certain non-cash items such as the amortization of share-based compensation and non-cash income taxes.
Other Non-Operational Expenses: The Company excludes the effect of certain non-operational expenses representing income and expenses outside of the normal course of operations, including debt modification costs, hurricane-related costs that are not reimbursed by insurance, executive transition costs, and activist shareholder costs.

The Company previously presented Adjusted EBITDA in a similar manner, with the exception of the adjustments for noncontrolling interests in consolidated joint ventures. The rationale for including 100% of Adjusted EBITDA for consolidated joint ventures with noncontrolling interests is that the full amount of any debt of these consolidated joint ventures is reported in our consolidated balance sheet and metrics using debt to EBITDA provide a better understanding of the Company’s leverage. This is also consistent with NAREIT’s definition of EBITDAre.

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 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: Acquired hotels
For the six months ended June 30, 2018, no hotels were acquired.

The Company acquired the following hotels in August 2017 in conjunction with the FelCor merger:
DoubleTree Suites by Hilton Austin

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DoubleTree Suites by Hilton Orlando - Lake Buena Vista
Embassy Suites Atlanta - Buckhead
Embassy Suites Birmingham
Embassy Suites Boston - Marlborough
Embassy Suites Dallas - Love Field
Embassy Suites Deerfield Beach - Resort & Spa
Embassy Suites Fort Lauderdale 17th Street
Embassy Suites Los Angeles - International Airport/South
Embassy Suites Mandalay Beach - Hotel & Resort
Embassy Suites Miami - International Airport
Embassy Suites Milpitas Silicon Valley
Embassy Suites Minneapolis - Airport
Embassy Suites Myrtle Beach - Oceanfront Resort
Embassy Suites Napa Valley
Embassy Suites Orlando - International Drive South/Convention Center
Embassy Suites Phoenix - Biltmore
Embassy Suites San Francisco Airport - South San Francisco
Embassy Suites San Francisco Airport - Waterfront
Embassy Suites Secaucus - Meadowlands
Hilton Myrtle Beach Resort
Holiday Inn San Francisco - Fisherman's Wharf
San Francisco Marriott Union Square
DoubleTree by Hilton Burlington Vermont, formerly the Sheraton Burlington Hotel & Conference Center
Sheraton Philadelphia Society Hill Hotel
The Fairmont Copley Plaza
The Knickerbocker, New York
The Mills House Wyndham Grand Hotel, Charleston
The Vinoy Renaissance St. Petersburg Resort & Golf Club
Wyndham Boston Beacon Hill
Wyndham Houston - Medical Center Hotel & Suites
Wyndham New Orleans - French Quarter
Wyndham Philadelphia Historic District
Wyndham Pittsburgh University Center
Wyndham San Diego Bayside
Wyndham Santa Monica At the Pier

Pro forma adjustments: Sold hotels
For the six months ended June 30, 2018, the following hotels were sold:
Embassy Suites Boston - Marlborough was sold in February 2018
Sheraton Philadelphia Society Hill Hotel was sold in March 2018

For the year ended December 31, 2017, the following hotel was sold:
The Fairmont Copley Plaza was sold in December 2017





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RLJ Lodging Trust
Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(unaudited)
 
June 30,
2018
 
December 31, 2017
Assets
 

 
 

Investment in hotel properties, net
$
5,534,069

 
$
5,791,925

Investment in unconsolidated joint ventures
23,488

 
23,885

Cash and cash equivalents
382,455

 
586,470

Restricted cash reserves
78,222

 
72,606

Hotel and other receivables, net of allowance of $649 and $510, respectively
73,617

 
60,011

Deferred income tax asset, net
55,632

 
56,761

Intangible assets, net
125,453

 
133,211

Prepaid expense and other assets
74,870

 
69,936

Assets of hotel properties held for sale, net
99,415

 

Total assets
$
6,447,221

 
$
6,794,805

Liabilities and Equity
 

 
 

Debt, net
$
2,569,066

 
$
2,880,488

Accounts payable and other liabilities
208,336

 
225,664

Deferred income tax liability
5,547

 
5,547

Advance deposits and deferred revenue
31,725

 
30,463

Accrued interest
8,126

 
17,081

Distributions payable
65,852

 
65,284

Total liabilities
2,888,652

 
3,224,527

Equity
 

 
 

Shareholders’ equity:
 

 
 

Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized
 
 
 
Series A Cumulative Convertible Preferred Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475 shares issued and outstanding, liquidation value of $328,266, at June 30, 2018 and December 31, 2017
366,936

 
366,936

Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 175,278,298 and 174,869,046 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively
1,753

 
1,749

Additional paid-in capital
3,213,049

 
3,208,002

Accumulated other comprehensive income
33,639

 
8,846

Distributions in excess of net earnings
(123,808
)
 
(82,566
)
Total shareholders’ equity
3,491,569

 
3,502,967

Noncontrolling interest:
 

 
 

Noncontrolling interest in consolidated joint ventures
11,595

 
11,700

Noncontrolling interest in the Operating Partnership
10,975

 
11,181

Total noncontrolling interest
22,570

 
22,881

Preferred equity in a consolidated joint venture, liquidation value of $45,487 and $45,430 at June 30, 2018 and December 31, 2017, respectively
44,430

 
44,430

Total equity
3,558,569

 
3,570,278

Total liabilities and equity
$
6,447,221

 
$
6,794,805


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








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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,
 
2018
 
2017
 
2018
 
2017
Revenue
 

 
 

 
 

 
 

Operating revenue
 

 
 

 
 

 
 

Room revenue
$
403,232

 
$
253,739

 
$
760,877

 
$
478,704

Food and beverage revenue
58,444

 
29,121

 
110,639

 
55,812

Other revenue
23,015

 
9,424

 
42,769

 
18,000

Total revenue
$
484,691

 
$
292,284

 
$
914,285

 
$
552,516

Expense
 

 
 

 
 

 
 

Operating expense
 

 
 

 
 

 
 

Room expense
$
94,459

 
$
55,221

 
$
184,428

 
$
107,143

Food and beverage expense
42,406

 
20,101

 
83,669

 
39,398

Management and franchise fee expense
37,252

 
29,626

 
72,928

 
56,539

Other operating expense
108,556

 
59,058

 
214,679

 
116,880

Total property operating expense
282,673

 
164,006

 
555,704

 
319,960

Depreciation and amortization
61,648

 
38,240

 
123,056

 
76,905

Property tax, insurance and other
35,537

 
18,152

 
70,036

 
37,310

General and administrative
15,523

 
10,129

 
26,436

 
19,252

Transaction costs
247

 
3,691

 
1,920

 
4,316

Total operating expense
395,628

 
234,218

 
777,152

 
457,743

Operating income
89,063

 
58,066

 
137,133

 
94,773

Other income
565

 
73

 
1,657

 
214

Interest income
960

 
664

 
2,190

 
1,149

Interest expense
(25,443
)
 
(14,548
)
 
(54,144
)
 
(28,877
)
Gain on extinguishment of indebtedness
7

 

 
7,666

 

Income before equity in income from unconsolidated joint ventures
65,152

 
44,255

 
94,502

 
67,259

Equity in income from unconsolidated joint ventures
799

 

 
418

 

Income before income tax expense
65,951

 
44,255

 
94,920

 
67,259

Income tax expense
(2,354
)
 
(1,821
)
 
(3,696
)
 
(2,987
)
Income from operations
63,597

 
42,434

 
91,224

 
64,272

Gain (loss) on sale of hotel properties
796

 
30

 
(2,938
)
 
(30
)
Net income
64,393

 
42,464

 
88,286

 
64,242

Net (income) loss attributable to noncontrolling interests:
 

 
 

 
 

 
 

Noncontrolling interest in consolidated joint ventures
(55
)
 
(29
)
 
179

 
37

Noncontrolling interest in the Operating Partnership
(254
)
 
(189
)
 
(327
)
 
(275
)
Preferred distributions - consolidated joint venture
(370
)
 

 
(735
)
 

Net income attributable to RLJ
63,714

 
42,246

 
87,403

 
64,004

Preferred dividends
(6,279
)
 

 
(12,557
)
 

Net income attributable to common shareholders
$
57,435

 
$
42,246

 
$
74,846

 
$
64,004

Basic per common share data:
 
 
 
 
 

 
 

Net income per share attributable to common shareholders
$
0.33

 
$
0.34

 
$
0.43

 
$
0.51

Weighted-average number of common shares
174,238,854

 
123,785,735

 
174,216,387

 
123,760,096

Diluted per common share data:
 
 
 
 
 

 
 

Net income per share attributable to common shareholders
$
0.33

 
$
0.34

 
$
0.43

 
$
0.51

Weighted-average number of common shares
174,364,547

 
123,871,762

 
174,316,348

 
123,856,388

 

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




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RLJ Lodging Trust
Reconciliation of Non-GAAP Measures
(Amounts in thousands, except per share data)
(unaudited)

FFO Attributable to Common Shareholders and Unitholders
 
For the three months ended June 30,
 
For the six months ended June 30,
 
2018
 
2017
 
2018
 
2017
Net income
$
64,393

 
$
42,464

 
$
88,286

 
$
64,242

Preferred dividends
(6,279
)
 

 
(12,557
)
 

Preferred distributions - consolidated joint venture
(370
)
 

 
(735
)
 

Depreciation and amortization
61,648

 
38,240

 
123,056

 
76,905

(Gain) loss on sale of hotel properties
(796
)
 
(30
)
 
2,938

 
30

Noncontrolling interest in consolidated joint ventures
(55
)
 
(29
)
 
179

 
37

Adjustments related to consolidated joint ventures (1)
(80
)
 
(30
)
 
(155
)
 
(62
)
Adjustments related to unconsolidated joint ventures (2)
669

 

 
1,337

 

FFO
119,130

 
80,615

 
202,349

 
141,152

Transaction costs
247

 
3,691

 
1,920

 
4,316

Gain on extinguishment of indebtedness
(7
)
 

 
(7,666
)
 

Amortization of share-based compensation
3,172

 
3,134

 
5,686

 
5,469

Non-cash income tax expense
1,826

 
1,323

 
2,929

 
2,261

Other expenses (3)
3,547

 

 
4,168

 

Adjusted FFO
$
127,915

 
$
88,763

 
$
209,386

 
$
153,198

 
 
 
 
 
 
 
 
Adjusted FFO per common share and unit-basic
$
0.73

 
$
0.71

 
$
1.20

 
$
1.23

Adjusted FFO per common share and unit-diluted
$
0.73

 
$
0.71

 
$
1.20

 
$
1.23

 
 
 
 
 
 
 
 
Basic weighted-average common shares and units outstanding (4)
175,013

 
124,344

 
174,990

 
124,319

Diluted weighted-average common shares and units outstanding (4)
175,138

 
124,431

 
175,090

 
124,415


Note:
(1) Includes depreciation and amortization expense allocated to the noncontrolling interest in the consolidated joint ventures.
(2)  Includes our ownership interest of the depreciation and amortization expense of the unconsolidated joint ventures.
(3) Represents income and expenses outside of the normal course of operations, including debt modification costs, hurricane-related costs that are not reimbursed by insurance, executive transition costs, and activist shareholder costs.
(4)  Includes 0.8 million and 0.6 million weighted-average operating partnership units for the three and six month periods ended June 30, 2018 and 2017, respectively.










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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,
 
2018
 
2017
 
2018
 
2017
Net income
$
64,393

 
$
42,464

 
$
88,286

 
$
64,242

Depreciation and amortization
61,648

 
38,240

 
123,056

 
76,905

Interest expense, net (1)
24,483

 
14,399

 
51,954

 
28,716

Income tax expense
2,354

 
1,821

 
3,696

 
2,987

Adjustments related to unconsolidated joint ventures (2)
796

 

 
1,591

 

EBITDA
153,674

 
96,924

 
268,583

 
172,850

(Gain) loss on sale of hotel properties
(796
)
 
(30
)
 
2,938

 
30

EBITDAre
152,878

 
96,894

 
271,521

 
172,880

Transaction costs
247

 
3,691

 
1,920

 
4,316

Gain on extinguishment of indebtedness
(7
)
 

 
(7,666
)
 

Amortization of share-based compensation
3,172

 
3,134

 
5,686

 
5,469

Other expenses (3)
3,547

 

 
4,168

 

Adjusted EBITDA
159,837

 
103,719

 
275,629

 
182,665

General and administrative (4)
12,351

 
6,995

 
20,750

 
13,783

Other corporate adjustments
(3,144
)
 
(356
)
 
(2,762
)
 
(356
)
Consolidated Hotel EBITDA
169,044

 
110,358

 
293,617

 
196,092

Pro forma adjustments - loss (income) from sold hotels
233

 
(76
)
 
(346
)
 
(249
)
Pro forma adjustments - income from prior ownership of acquired hotels (5)

 
59,966

 

 
106,724

Pro forma Consolidated Hotel EBITDA
169,277

 
170,248

 
293,271

 
302,567

Pro forma adjustments - income from non-comparable hotels

 

 

 

Pro forma Hotel EBITDA
$
169,277

 
$
170,248

 
$
293,271

 
$
302,567


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.
(2) Includes our ownership interest of the interest, depreciation, and amortization expense of the unconsolidated joint ventures.
(3) Represents income and expenses outside of the normal course of operations, including debt modification costs, hurricane-related costs that are not reimbursed by insurance, executive transition costs, and activist shareholder costs.
(4) General and administrative expenses exclude amortization of share-based compensation reflected in Adjusted EBITDA.
(5) The information above includes results for periods prior to the Company's ownership. The information has not been audited and is presented only for comparison purposes.




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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,
 
2018
 
2017
 
2018
 
2017
Total revenue
$
484,691

 
$
292,284

 
$
914,285

 
$
552,516

Pro forma adjustments - net revenue from sold hotels
142

 
(2
)
 
(5,755
)
 
(12
)
Pro forma adjustments - revenue from prior ownership of acquired hotels (1)

 
183,436

 

 
349,215

Other corporate adjustments / non-hotel revenue
(1,212
)
 
(15
)
 
(1,626
)
 
(29
)
Pro forma Hotel Revenue
$
483,621

 
$
475,703

 
$
906,904

 
$
901,690

 
 
 
 
 
 
 
 
Pro forma Hotel EBITDA
$
169,277

 
$
170,248

 
$
293,271

 
$
302,567

 
 
 
 
 
 
 
 
Pro forma Hotel EBITDA Margin
35.0
%
 
35.8
%
 
32.3
%
 
33.6
%

Note:
(1) The information above includes results for periods prior to the Company's ownership. The information has not been audited and is presented only
for comparison purposes.



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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, 2018 (2)
Secured Debt
 
 
 
 
 
 
Scotiabank - 1 hotel
4
Nov 2018
Floating
4.76
%
 
$
85,000

Wells Fargo - 4 hotels
3
Oct 2021
Floating (3)
4.07
%
 
150,000

Wells Fargo - 4 hotels
2
Mar 2022
Floating (3)
4.04
%
 
141,750

Wells Fargo - 1 hotel
10
Jun 2022
Fixed
5.25
%
 
31,735

PNC - 3 hotels
10
Oct 2022
Fixed
4.95
%
 
83,522

Wells Fargo - 1 hotel
10
Oct 2022
Fixed
4.95
%
 
33,137

Prudential - 1 hotel
10
Oct 2022
Fixed
4.94
%
 
29,273

PNC - 5 hotels
5
Mar 2023
Floating
4.19
%
 
85,000

Weighted-Average / Secured Total
 
 
 
4.43
%
 
$
639,417

 
 
 
 
 
 
 
Unsecured Debt
 
 
 
 
 
 
Revolver (4)
4
Apr 2021
Floating
3.59
%
 
$
250,000

$400 Million Term Loan Maturing 2021
5
Apr 2021
Floating (3)(5)
3.06
%
 
400,000

$150 Million Term Loan Maturing 2022
7
Jan 2022
Floating (3)
3.08
%
 
150,000

$400 Million Term Loan Maturing 2023
5
Jan 2023
Floating (3)(5)
3.17
%
 
400,000

$225 Million Term Loan Maturing 2023
5
Jan 2023
Floating (3)
3.44
%
 
225,000

Senior Unsecured Notes
10
Jun 2025
Fixed
6.00
%
 
475,000

Weighted-Average / Unsecured Total
 
 
 
3.93
%
 
$
1,900,000

 
 
 
 
 
 
 
Weighted-Average / Gross Debt
 
 
 
4.06
%
 
$
2,539,417

 
 
 
 
 
 
 

Note:
(1) Interest rates as of June 30, 2018.
(2) Excludes the impact of fair value adjustments and deferred financing costs.
(3) The floating interest rate is hedged with an interest rate swap.
(4) As of June 30, 2018, there was $350.0 million of borrowing capacity on the revolver, which is charged an unused commitment fee of 0.30%
annually.
(5) Reflects interest rate swap on $350.0 million.





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RLJ Lodging Trust
Pro forma Operating Statistics - Top 60 Assets
(unaudited)
Property
City/State
 # of Rooms
Pro forma Consolidated Hotel EBITDA
The Knickerbocker New York
New York, NY
330
$12,487
Marriott Louisville Downtown
Louisville, KY
616
11,623
Wyndham San Diego Bayside
San Diego, CA
600
9,954
The Vinoy Renaissance St. Petersburg Resort & Golf Club
St Petersburg, FL
362
9,428
San Francisco Marriott Union Square
San Francisco, CA
401
9,354
The Mills House Wyndham Grand Hotel
Charleston, SC
216
9,172
Wyndham Boston Beacon Hill
Boston, MA
304
9,093
DoubleTree Metropolitan Hotel New York City
New York, NY
764
9,068
Embassy Suites San Francisco Airport - Waterfront
Burlingame, CA
340
8,591
Embassy Suites Tampa Downtown Convention Center
Tampa, FL
360
8,471
Embassy Suites Los Angeles - International Airport South
El Segundo, CA
349
8,443
Courtyard Austin Downtown Convention Center
Austin, TX
270
8,427
Embassy Suites Mandalay Beach - Hotel & Resort
Oxnard, CA
250
8,188
Courtyard Portland City Center
Portland, OR
256
8,182
Embassy Suites Fort Lauderdale 17th Street
Fort Lauderdale, FL
361
8,055
Wyndham New Orleans - French Quarter
New Orleans, LA
374
7,856
Hilton Myrtle Beach Resort
Myrtle Beach, SC
385
7,758
DoubleTree Grand Key Resort
Key West, FL
216
7,506
Embassy Suites Myrtle Beach - Oceanfront Resort
Myrtle Beach, SC
255
7,088
Residence Inn Palo Alto Los Altos
Los Altos, CA
156
6,873
Courtyard San Francisco
San Francisco, CA
166
6,829
Wyndham Santa Monica At the Pier
Santa Monica, CA
132
6,722
Wyndham Philadelphia Historic District
Philadelphia, PA
364
6,669
Courtyard Chicago Downtown Magnificent Mile
Chicago, IL
306
6,431
Embassy Suites Deerfield Beach - Resort & Spa
Deerfield Beach, FL
244
6,411
Embassy Suites San Francisco Airport - South San Francisco
South San Francisco, CA
312
6,242
Hilton Garden Inn San Francisco Oakland Bay Brg
Emeryville, CA
278
6,213
Hyatt House Emeryville San Francisco Bay Area
Emeryville, CA
234
6,183
Renaissance Pittsburgh Hotel
Pittsburgh, PA
300
6,143
Fairfield Inn & Suites Washington DC Downtown
Washington, DC
198
6,058
Hyatt House Santa Clara
Santa Clara, CA
150
5,995
Wyndham Houston - Medical Center Hotel & Suites
Houston, TX
287
5,877
Hyatt House San Jose Silicon Valley
San Jose, CA
164
5,861
Hilton Cabana Miami Beach
Miami Beach, FL
231
5,729
Marriott Denver South @ Park Meadows
Lone Tree, CO
279
5,470
Courtyard Waikiki Beach
Honolulu, HI
403
5,460
Embassy Suites Boston Waltham
Waltham, MA
275
5,375
Embassy Suites Atlanta - Buckhead
Atlanta, GA
316
5,355
Renaissance Fort Lauderdale Plantation Hotel
Plantation, FL
250
5,316
Residence Inn Bethesda Downtown
Bethesda, MD
188
5,249
DoubleTree Suites by Hilton Austin
Austin, TX
188
5,235
Embassy Suites Irvine Orange County
Irvine, CA
293
5,030
Embassy Suites Los Angeles Downey
Downey, CA
220
5,019
Hyatt House San Diego Sorrento Mesa
San Diego, CA
193
4,833
Residence Inn Austin Downtown Convention Center
Austin, TX
179
4,776
Embassy Suites Milpitas Silicon Valley
Milpitas, CA
266
4,746
Hilton Garden Inn Los Angeles Hollywood
Los Angeles, CA
160
4,716
Courtyard Charleston Historic District
Charleston, SC
176
4,680
Marriott Denver Airport @ Gateway Park
Aurora, CO
238
4,645
Homewood Suites Washington DC Downtown
Washington, DC
175
4,636
Renaissance Boulder Flatiron Hotel
Broomfield, CO
232
4,635
Embassy Suites Orlando - International Drive South/Convention Center
Orlando, FL
244
4,606
Hyatt Place Washington DC Downtown K Street
Washington, DC
164
4,293
Embassy Suites Dallas - Love Field
Dallas, TX
248
4,288
Embassy Suites Minneapolis - Airport
Bloomington, MN
310
4,190
Hyatt Place Fremont Silicon Valley
Fremont, CA
151
4,057
Hilton Garden Inn New Orleans Convention Center
New Orleans, LA
286
4,019
Residence Inn National Harbor Washington DC
Oxon Hill, MD
162
3,881
Wyndham Pittsburgh University Center
Pittsburgh, PA
251
3,765
Embassy Suites Phoenix - Biltmore
Phoenix, AZ
232
3,684
Top 60 Assets
 
16,610
384,939
Other (94 Assets)
 
13,395
195,357
Total Portfolio
 
30,005
$580,296
Note: For the trailing twelve months ended June 30, 2018. Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an unconsolidated hotel, and the Embassy Suites Napa Valley, which was sold subsequent to June 30, 2018. Amounts in thousands, except rooms. The information above includes results for periods prior to the Company's ownership. The information has not been audited and is presented only for comparison purposes.

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RLJ Lodging Trust
Pro forma Operating Statistics

For the three months ended June 30, 2018 and June 30, 2017
Top Markets
 
# of Hotels
 
Occupancy
 
ADR
 
RevPAR
2018
2017
Var
2018
2017
Var
2018
2017
Var
Northern California
 
14
 
85.0
%
87.8
%
(3.2
)%
 
$
228.31

$
214.95

6.2
 %
 
$
193.96

$
188.71

2.8
 %
South Florida
 
13
 
86.5
%
83.1
%
4.1
 %
 
158.72

154.55

2.7
 %
 
137.23

128.42

6.9
 %
Southern California
 
9
 
86.5
%
86.4
%
0.1
 %
 
182.54

181.26

0.7
 %
 
157.88

156.68

0.8
 %
Austin
 
14
 
80.3
%
79.3
%
1.2
 %
 
162.73

171.56

(5.1
)%
 
130.63

136.05

(4.0
)%
Houston
 
11
 
74.3
%
69.3
%
7.2
 %
 
143.43

138.68

3.4
 %
 
106.58

96.09

10.9
 %
Washington, DC
 
8
 
87.7
%
85.3
%
2.7
 %
 
208.11

208.74

(0.3
)%
 
182.42

178.15

2.4
 %
Denver
 
13
 
78.5
%
80.5
%
(2.5
)%
 
143.95

145.28

(0.9
)%
 
112.97

116.96

(3.4
)%
Chicago
 
14
 
78.4
%
76.0
%
3.2
 %
 
152.40

154.88

(1.6
)%
 
119.49

117.64

1.6
 %
Louisville
 
5
 
67.1
%
75.4
%
(11.0
)%
 
181.37

187.27

(3.2
)%
 
121.72

141.28

(13.8
)%
New York City
 
5
 
91.7
%
91.1
%
0.7
 %
 
250.44

243.91

2.7
 %
 
229.71

222.21

3.4
 %
Other
 
49
 
80.9
%
80.6
%
0.4
 %
 
167.60

166.52

0.6
 %
 
135.60

134.18

1.1
 %
Total
 
155
 
81.9
%
81.7
%
0.3
 %
 
$
179.06

$
177.28

1.0
 %
 
$
146.72

$
144.78

1.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service Level
 
# of Hotels
 
Occupancy
 
ADR
 
RevPAR
2018
2017
Var
2018
2017
Var
2018
2017
Var
Focused-Service
 
102
 
82.0
%
80.3
%
2.1
 %
 
$
165.60

$
165.65

0.0
 %
 
$
135.71

$
132.95

2.1
 %
Compact Full-Service
 
48
 
83.5
%
83.9
%
(0.5
)%
 
190.82

187.15

2.0
 %
 
159.37

157.05

1.5
 %
Full-Service
 
5
 
70.7
%
76.5
%
(7.6
)%
 
200.08

194.06

3.1
 %
 
141.37

148.43

(4.8
)%
Total
 
155
 
81.9
%
81.7
%
0.3
 %
 
$
179.06

$
177.28

1.0
 %
 
$
146.72

$
144.78

1.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chain Scale
 
# of Hotels
 
Occupancy
 
ADR
 
RevPAR
2018
2017
Var
2018
2017
Var
2018
2017
Var
Upper Upscale
 
39
 
80.3
%
81.5
%
(1.4
)%
 
$
186.14

$
182.82

1.8
 %
 
$
149.53

$
148.96

0.4
 %
Upscale
 
98
 
82.9
%
81.9
%
1.2
 %
 
173.11

172.33

0.5
 %
 
143.49

141.10

1.7
 %
Upper Midscale
 
16
 
82.4
%
80.6
%
2.2
 %
 
167.95

166.70

0.7
 %
 
138.39

134.36

3.0
 %
Other
 
2
 
81.8
%
83.9
%
(2.6
)%
 
300.88

286.11

5.2
 %
 
245.99

240.08

2.5
 %
Total
 
155
 
81.9
%
81.7
%
0.3
 %
 
$
179.06

$
177.28

1.0
 %
 
$
146.72

$
144.78

1.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flags
 
# of Hotels
 
Occupancy
 
ADR
 
RevPAR
2018
2017
Var
2018
2017
Var
2018
2017
Var
Residence Inn
 
29
 
83.2
%
80.8
%
2.9
 %
 
$
155.78

$
158.25

(1.6
)%
 
$
129.54

$
127.82

1.3
 %
Courtyard
 
24
 
81.8
%
81.9
%
(0.1
)%
 
175.78

173.95

1.1
 %
 
143.77

142.38

1.0
 %
Embassy Suites
 
23
 
82.7
%
83.2
%
(0.7
)%
 
178.26

174.67

2.1
 %
 
147.35

145.39

1.3
 %
Hyatt House
 
11
 
85.9
%
83.4
%
3.0
 %
 
178.41

174.83

2.0
 %
 
153.33

145.88

5.1
 %
Hilton Garden Inn
 
8
 
81.0
%
77.7
%
4.3
 %
 
164.74

162.27

1.5
 %
 
133.52

126.04

5.9
 %
SpringHill Suites
 
8
 
74.1
%
73.4
%
1.0
 %
 
132.45

135.15

(2.0
)%
 
98.17

99.21

(1.0
)%
Wyndham
 
8
 
83.5
%
82.5
%
1.1
 %
 
185.71

185.67

0.0
 %
 
154.99

153.21

1.2
 %
Fairfield Inn & Suites
 
7
 
82.7
%
79.7
%
3.9
 %
 
166.33

175.83

(5.4
)%
 
137.64

140.08

(1.7
)%
Hampton Inn
 
7
 
81.4
%
76.5
%
6.3
 %
 
142.36

143.02

(0.5
)%
 
115.84

109.43

5.9
 %
Marriott
 
6
 
73.4
%
78.1
%
(6.1
)%
 
202.65

202.27

0.2
 %
 
148.76

158.05

(5.9
)%
DoubleTree
 
6
 
87.5
%
88.8
%
(1.5
)%
 
202.55

198.61

2.0
 %
 
177.17

176.40

0.4
 %
Renaissance
 
4
 
80.5
%
80.5
%
0.0
 %
 
188.56

182.97

3.1
 %
 
151.82

147.37

3.0
 %
Hyatt Place
 
3
 
84.7
%
86.3
%
(1.9
)%
 
203.11

194.99

4.2
 %
 
171.95

168.35

2.1
 %
Homewood Suites
 
2
 
84.9
%
85.4
%
(0.6
)%
 
203.33

201.82

0.7
 %
 
172.55

172.29

0.2
 %
Hilton
 
2
 
76.4
%
76.8
%
(0.5
)%
 
178.08

176.08

1.1
 %
 
136.05

135.21

0.6
 %
Hyatt
 
2
 
80.6
%
78.8
%
2.4
 %
 
196.85

185.80

5.9
 %
 
158.71

146.32

8.5
 %
Other
 
5
 
81.9
%
84.5
%
(3.1
)%
 
234.14

218.76

7.0
 %
 
191.67

184.81

3.7
 %
Total
 
155
 
81.9
%
81.7
%
0.3
 %
 
$
179.06

$
177.28

1.0
 %
 
$
146.72

$
144.78

1.3
 %
Note: Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an
unconsolidated hotel. The information above includes results for periods prior to the Company's ownership. The information has not been audited and is presented
only for comparison purposes.


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RLJ Lodging Trust
Pro forma Operating Statistics

For the six months ended June 30, 2018 and June 30, 2017

Top Markets
 
# of Hotels
 
Occupancy
 
ADR
 
RevPAR
2018
2017
Var
2018
2017
Var
2018
2017
Var
Northern California
 
14
 
81.9
%
84.3
%
(2.9
)%
 
$
222.21

$
217.34

2.2
 %
 
$
181.97

$
183.28

(0.7
)%
South Florida
 
13
 
89.0
%
85.6
%
4.1
 %
 
192.63

186.44

3.3
 %
 
171.52

159.54

7.5
 %
Southern California
 
9
 
85.2
%
84.9
%
0.4
 %
 
177.39

177.19

0.1
 %
 
151.22

150.45

0.5
 %
Austin
 
14
 
78.5
%
79.4
%
(1.2
)%
 
170.26

177.31

(4.0
)%
 
133.59

140.82

(5.1
)%
Houston
 
11
 
73.8
%
70.8
%
4.1
 %
 
144.15

151.90

(5.1
)%
 
106.32

107.61

(1.2
)%
Washington, DC
 
8
 
81.2
%
77.8
%
4.3
 %
 
191.91

201.07

(4.6
)%
 
155.78

156.42

(0.4
)%
Denver
 
13
 
73.1
%
74.9
%
(2.5
)%
 
137.17

137.02

0.1
 %
 
100.26

102.68

(2.4
)%
Chicago
 
14
 
69.0
%
65.1
%
6.0
 %
 
139.31

140.80

(1.1
)%
 
96.12

91.61

4.9
 %
Louisville
 
5
 
62.9
%
68.1
%
(7.6
)%
 
162.38

170.25

(4.6
)%
 
102.15

115.89

(11.9
)%
New York City
 
5
 
87.7
%
85.5
%
2.5
 %
 
214.50

210.65

1.8
 %
 
188.04

180.12

4.4
 %
Other
 
49
 
76.9
%
77.4
%
(0.7
)%
 
165.25

163.90

0.8
 %
 
127.06

126.87

0.1
 %
Total
 
155
 
78.6
%
78.4
%
0.2
 %
 
$
176.12

$
175.90

0.1
 %
 
$
138.41

$
137.91

0.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service Level
 
# of Hotels
 
Occupancy
 
ADR
 
RevPAR
2018
2017
Var
2018
2017
Var
2018
2017
Var
Focused-Service
 
102
 
78.0
%
76.8
%
1.6
 %
 
$
161.48

$
163.64

(1.3
)%
 
$
126.01

$
125.71

0.2
 %
Compact Full-Service
 
48
 
81.1
%
81.4
%
(0.3
)%
 
190.12

187.65

1.3
 %
 
154.23

152.74

1.0
 %
Full-Service
 
5
 
64.9
%
69.4
%
(6.4
)%
 
186.99

182.10

2.7
 %
 
121.37

126.34

(3.9
)%
Total
 
155
 
78.6
%
78.4
%
0.2
 %
 
$
176.12

$
175.90

0.1
 %
 
$
138.41

$
137.91

0.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chain Scale
 
# of Hotels
 
Occupancy
 
ADR
 
RevPAR
2018
2017
Var
2018
2017
Var
2018
2017
Var
Upper Upscale
 
39
 
78.1
%
78.8
%
(0.9
)%
 
$
190.14

$
187.53

1.4
 %
 
$
148.46

$
147.70

0.5
 %
Upscale
 
98
 
79.1
%
78.5
%
0.7
 %
 
166.79

167.70

(0.5
)%
 
131.93

131.67

0.2
 %
Upper Midscale
 
16
 
77.7
%
77.0
%
0.9
 %
 
163.75

166.21

(1.5
)%
 
127.26

127.99

(0.6
)%
Other
 
2
 
76.1
%
73.7
%
3.3
 %
 
268.06

263.76

1.6
 %
 
204.04

194.36

5.0
 %
Total
 
155
 
78.6
%
78.4
%
0.2
 %
 
$
176.12

$
175.90

0.1
 %
 
$
138.41

$
137.91

0.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flags
 
# of Hotels
 
Occupancy
 
ADR
 
RevPAR
2018
2017
Var
2018
2017
Var
2018
2017
Var
Residence Inn
 
29
 
79.6
%
78.1
%
1.9
 %
 
$
155.20

$
157.93

(1.7
)%
 
$
123.48

$
123.28

0.2
 %
Courtyard
 
24
 
78.2
%
78.1
%
0.1
 %
 
166.94

168.68

(1.0
)%
 
130.60

131.79

(0.9
)%
Embassy Suites
 
23
 
81.3
%
81.7
%
(0.4
)%
 
184.63

181.67

1.6
 %
 
150.12

148.37

1.2
 %
Hyatt House
 
11
 
83.7
%
80.8
%
3.6
 %
 
176.10

174.40

1.0
 %
 
147.43

140.92

4.6
 %
Hilton Garden Inn
 
8
 
77.3
%
74.2
%
4.2
 %
 
163.49

163.23

0.2
 %
 
126.45

121.19

4.3
 %
SpringHill Suites
 
8
 
68.9
%
70.5
%
(2.3
)%
 
129.31

134.94

(4.2
)%
 
89.10

95.19

(6.4
)%
Wyndham
 
8
 
78.9
%
78.1
%
1.0
 %
 
173.99

175.11

(0.6
)%
 
137.22

136.72

0.4
 %
Fairfield Inn & Suites
 
7
 
77.7
%
76.0
%
2.1
 %
 
163.27

174.76

(6.6
)%
 
126.78

132.88

(4.6
)%
Hampton Inn
 
7
 
77.7
%
73.7
%
5.4
 %
 
143.18

144.01

(0.6
)%
 
111.24

106.11

4.8
 %
Marriott
 
6
 
69.1
%
73.0
%
(5.3
)%
 
199.67

201.73

(1.0
)%
 
137.98

147.26

(6.3
)%
DoubleTree
 
6
 
83.8
%
86.3
%
(2.8
)%
 
190.64

185.30

2.9
 %
 
159.84

159.86

0.0
 %
Renaissance
 
4
 
79.2
%
77.9
%
1.6
 %
 
197.40

193.08

2.2
 %
 
156.28

150.44

3.9
 %
Hyatt Place
 
3
 
80.1
%
82.0
%
(2.4
)%
 
187.37

186.88

0.3
 %
 
150.01

153.24

(2.1
)%
Homewood Suites
 
2
 
75.9
%
78.5
%
(3.2
)%
 
185.27

191.61

(3.3
)%
 
140.70

150.32

(6.4
)%
Hilton
 
2
 
70.4
%
69.2
%
1.8
 %
 
181.73