Chatham Lodging Trust reports third quarter net income of $14.4 million compared to $8.8 million in the year ago quater. Portfolio RevPAR increased 5.3 percent to $146 for Chatham’s 38, wholly owned hotels

Chatham Lodging Trust (NYSE: CLDT), a lodging real estate investment trust (REIT) that invests in upscale, extended-stay hotels and premium-branded, select-service hotels and owns 134 hotels wholly or through joint ventures, today announced results for the third quarter ended September 30, 2015. In addition, the company provided initial guidance for the 2015 fourth quarter and updated its 2015 full-year guidance.

Highlights:

  • Portfolio RevPAR – Increased hotel RevPAR 5.3 percent to $146 for Chatham’s 38, wholly owned hotels, within the company’s guidance range of 5-6 percent.
  • Adjusted EBITDA – Advanced 38 percent to $39.4 million.
  • Adjusted FFO – Jumped 46 percent to $29.3 million. Adjusted FFO per diluted share rose to $0.76, within the company’s guidance range of $0.75-$0.78 per share.
  • Operating Margins – Expanded industry leading hotel EBITDA margins 20 basis points to 46.7 percent, within the company’s guidance range of 46.5 to 47.5 percent.
  • Acquisitions – Acquired three, high-quality, urban, in-fill located hotels for approximately $100 million (or approximately $312,500 per room) comprised of the 81-room Residence Inn Boston (Dedham), Mass., the 105-room Residence Inn Fort Lauderdale Intracoastal/ Il Lugano and the 134-room Hilton Garden Inn Marina del Rey, Calif. RevPAR for the three hotels rose 6.7 percent in the 2015 third quarter.

High Quality Infill Portfolio Generates Consistent Revenue Growth and Continues Margin Expansion

“The high-quality of our portfolio serves as the foundation of our financial performance, a portfolio where high demand, targeted marketing and solid operating execution results in attractive RevPAR growth, allowing us to generate the best operating margins of all lodging REITs,” said Jeffrey H. Fisher, Chatham’s chairman, president and chief executive officer.

“We delivered RevPAR and FFO per share for the quarter within our guidance range, and we remain positive about top-line growth for the balance of 2015 and 2016.

“Although sentiment for lodging companies is bearish at the moment, fundamentals for quality, select-service portfolios such as ours remain strong because our higher RevPAR growth, combined with a lack of major food and beverage or other non-essential amenities, gives us the strength to continue to improve margins and grow FFO on a relative basis better than other REITs,” Fisher noted.

Additional data points on the portfolio’s third quarter RevPAR performance include:

  • Eight hotels produced double digit RevPAR increases.
  • Four Silicon Valley hotels saw overall RevPAR increase of 8.4 percent to $199.
  • RevPAR at the four hotels acquired from the Inland portfolio rose 4.6 percent to $110 despite one of the four hotels undergoing renovation throughout the quarter.
  • Four Houston area hotels increased RevPAR 1.0 percent, impacted by one hotel under renovation throughout the quarter. The two medical center-area hotels again outperformed the overall Houston market with RevPAR up 4.8 percent.

“Our portfolio performance remains strong year-to-date, Silicon Valley maintains its excellence, and we had strong RevPAR gains across our broader portfolio with the following markets seeing double digit RevPAR growth: Anaheim, Boston, Carlsbad, Dallas (Addison), Fort Lauderdale and Maitland.

“We continue to generate the highest operating margins among all lodging REITs with operating margins of 52 percent and hotel EBITDA margins of 47 percent in the quarter,” Fisher highlighted. “Year-over-year, our third quarter gross operating margins were up 40 basis points, and our hotel EBITDA margins were up 20 basis points. Our portfolio operates at high margins due to strong operating efficiencies combined with high absolute RevPAR for our class of hotels. As RevPAR continues to grow, we expect to drive comparable margins even higher.

“The acquisition of approximately $200 million of high quality hotels in great markets this year gives us confidence in our ability to generate meaningful EBITDA and FFO per share growth in 2016. With our Silicon Valley expansions coming on line over the next 18 months, we believe the same will hold true for 2017. We are optimistic about our future growth and have proven since our IPO that we reward our shareholders by increasing our dividend in tandem with FFO per share growth,” Fisher concluded.

Joint Venture Investment Performance

The Innkeepers joint-venture portfolio produced 2015 third quarter RevPAR growth of 8.2 percent to $121 on a 6.2 percent increase in average daily rate to $142 and a 1.9 percent increase in occupancy to 85 percent. Gross operating margins rose 280 basis points to 46.3 percent. The Innkeepers joint venture contributed adjusted EBITDA and adjusted funds from operations to Chatham during the third quarter of approximately $3.1 million and $2.1 million, respectively. Chatham received distributions of $2.1 million during the quarter and $4.6 million year-to-date through the end of the quarter.

“The RevPAR growth performance in the Innkeepers portfolio was outstanding. Similar to the Chatham portfolio, the robust performance was experienced across many markets with 19 of the 47 hotels experiencing RevPAR growth of approximately 10 percent or higher. Denver, Fort Lauderdale, Silicon Valley, Washington D.C. area hotels and certain New Jersey hotels performed very well,” stated Dennis Craven, Chatham’s chief operating officer.

For the Inland joint venture portfolio, RevPAR rose 2.6 percent to $100 on a 1.2 percent increase in average daily rate to $125 and a 1.4 percent increase in occupancy to 80 percent. Gross operating margins were flat at 42.2 percent. The Inland joint venture contributed adjusted EBITDA and adjusted funds from operations to Chatham during the third quarter of approximately $2.1 million and $1.2 million, respectively, and Chatham received distributions of $1.0 million during the quarter and $2.4 million year-to-date through the end of the third quarter.

“In the aggregate, the joint venture investments are generating strong, leveraged cash-on-cash returns and are on track to deliver yields of approximately 17 percent in 2015 based on expected distributions and our aggregate joint venture investments of approximately $50 million,” Craven said.

Acquisitions

During the quarter, the company completed the acquisition of three, high quality hotels comprising 320 rooms for approximately $100 million, or $312,500 per room. The acquired hotels include the 81-room Residence Inn Boston (Dedham), Mass., the 105-room Residence Inn Fort Lauderdale Intracoastal/Il Lugano and the 134-room Hilton Garden Inn Marina del Rey, Calif.

“Once again, we acquired three assets in non-marketed transactions which allows us to more efficiently invest capital and earn higher returns,” Craven emphasized. “These three hotels fit in perfectly with our high quality portfolio and sit ideally in some of the fastest growing markets in the country. RevPAR in these three markets is up double digits so far in 2015, and 2016 looks to be another strong year.”

Opened in 1998, the Residence Inn Dedham is proximate to 9.7 million square feet of office space within a 10-mile radius and is within walking distance of the 675,000-square-foot Legacy Place Life Style Retail Center, the market’s premier retail and restaurant destination. The property draws significant corporate demand from local corporations such as MediTech, Adidas/Reebok and Analog Devices, as well as others within the Route 128 corridor.

The Residence Inn Fort Lauderdale Intracoastal/Il Lugano opened in 2008 as the Il Lugano Hotel and Residences and was converted to a Residence Inn in 2014. The stunning, 14-story building is located on the eastern edge of the Intracoastal Waterway at Oakland Park Blvd., in Fort Lauderdale and includes 105 oversized suites ranging from 550 to more than 850 square feet, all with views of the Intracoastal Waterway and/or the Atlantic Ocean. Other hotel amenities include the Coastal View Restaurant, an intracoastal waterfront meeting room, 177-space parking garage and waterfront deck with docks that can be expanded for added food and beverage operations. The Fort Lauderdale market continues to experience significant growth in tourism, and the hotel is expected to benefit from the almost $2.5 billion expansion and renovation of the Fort Lauderdale International Airport which will attract additional travelers from the United States, Central America and South America.

The Hilton Garden Inn Marina del Rey converted from an independent hotel in June 2013 after an extensive renovation and received the “Best Conversion Award” by Hilton in 2014. The hotel includes the popular Marina Bar & Grill; two versatile meeting venues; and spacious rooms, suites and loft-style casitas with their own private patios; as well as an underground parking garage that serves hotel guests and visitors to the city. The area is anchored by large, well-known technology companies, in addition to a growing start-up tech community.

Capital Markets & Capital Structure

As of September 30, 2015, the company had net debt of $587.1 million (total consolidated debt less unrestricted cash). Total debt outstanding was $603.2 million at an average interest rate of 4.5 percent, comprised of $543.2 million of fixed rate mortgage debt at an average interest rate of 4.7 percent and $60.0 million outstanding on the company’s $175 million senior secured revolving credit facility which currently carries an interest rate of 2.7 percent.

Chatham’s leverage ratio was approximately 41 percent at September 30, 2015, based on the ratio of the company’s net debt to hotel investments at cost. The weighted average maturity date for Chatham’s fixed rate debt is January 2024. As of September 30, 2015, Chatham’s proportionate share of joint venture debt and unrestricted cash was $169.3 million and $3.3 million, respectively.

“Our balance sheet is in great shape with relatively low leverage, and it is substantially protected from any rise in interest rates given the fact that most of our debt is long-term and fixed rate. Our attractive capital structure enables us to generate significant free cash flow,” explained Jeremy Wegner, Chatham’s chief financial officer. “In 2015, we expect to generate about $36 million of free cash flow after dividends and capital expenditures. During the quarter, we acquired approximately $100 million of assets, renovated one wholly owned hotel and paid $11.4 million of dividends while our net debt only increased $83.8 million. We intend to use our substantial free cash flow to continue to pay down debt or fund future capital expenditures, including the Silicon Valley expansions. We have eight unencumbered hotels, and we have over $100 million of capacity on our line of credit.”

Hotel Reinvestments/Expansions

During the third quarter, Chatham completed the renovation of the Residence Inn Houston-West University in Texas. Chatham will perform renovations in the fourth quarter on the SpringHill Suites in Savannah, Ga., as well as the Homewood Suites in San Antonio, Texas, which accelerated its start date from January 2016 to October 2015.

The 32-room expansion of the Residence Inn Palo Alto Mountain View in Silicon Valley remains on track to be completed in the 2016 second quarter. The two Sunnyvale expansions are scheduled to begin in early 2016, and the San Mateo expansion is expected to start later in 2016.

To view full third quarter financial results and tables please visit:

http://phx.corporate-ir.net/phoenix.zhtml?c=237429&p=irol-newsArticle&ID=2107125

Strategic Hotels & Resorts, Inc. reports third quarter net income of $23.3 million compared to $21 million in the third quarter of 2014. Total United States portfolio RevPAR increased 4.2 percent in the third quarter of 2015.

"We are pleased to report another solid quarter of operating results which translated into attractive growth in our key financial metrics. Looking forward, we are also pleased to report continued strong group pace into 2016," commented Raymond L. "Rip" Gellein, Chairman and Chief Executive Officer of Strategic Hotels & Resorts. "Importantly, we continue to make progress towards closing our previously announced merger with Blackstone," summarized Gellein.

Third Quarter Highlights

  • Total consolidated revenues were $354.4 million in the third quarter of 2015, a 16.1 percent increase over the prior year period. The increase was primarily driven by the acquisitions of the Four Seasons Resort Scottsdale at Troon North, the Montage Laguna Beach resort and the Four Seasons Hotel Austin.
  • Net income attributable to common shareholders was $23.3 million, or $0.08 per diluted share, in the third quarter of 2015, compared with $21.0 million, or $0.07 per diluted share, in the third quarter of 2014.
  • Comparable FFO was $0.25 per diluted share in the third quarter of 2015, compared with $0.23 per diluted share in the prior year period, an 8.7 percent increase over the prior year period.
  • Comparable EBITDA was $89.2 million in the third quarter of 2015, compared with $75.2 million in the prior year period, an 18.6 percent increase between periods as a result of the Company's acquisition activity and same store growth.
  • Same Store United States portfolio RevPAR increased 3.3 percent in the third quarter of 2015, driven by a 3.0 percent increase in ADR and a 0.2 percentage point increase in occupancy compared to the third quarter of 2014. Total RevPAR increased 3.3 percent between periods, with non-rooms revenue increasing 3.4 percent between periods.
  • Total United States portfolio RevPAR increased 4.2 percent in the third quarter of 2015, driven by a 3.2 percent increase in ADR and a 0.7 percentage point increase in occupancy compared to the third quarter of 2014. Total RevPAR increased 4.2 percent between periods, with non-rooms revenue increasing 4.1 percent between periods.
  • Group occupied room nights in the Total United States portfolio decreased 3.3 percent in the third quarter 2015 while transient occupied room nights increased 3.8 percent compared to the third quarter of 2014. Group ADR increased 4.0 percent and transient ADR increased 1.8 percent compared to the third quarter of 2014.
  • Same Store United States and Total United States portfolio EBITDA margins expanded 50 basis points and 70 basis points, respectively, in the third quarter of 2015, compared to the third quarter of 2014. EBITDA margins in both years have been adjusted to exclude the amortization of the below market hotel management agreement related to the Hotel del Coronado, and other adjustments related to the adoption of the USALI Eleventh Revised Edition to improve comparability between years.

To view full third quarter financial results and tables please visit:

http://ir.strategichotels.com/phoenix.zhtml?c=176522&p=irol-newsArticle&ID=2107256

Belmond Ltd. reports third quarter net income of $10 milliion compared to $14.9 million in Q3 2014. RevPAR up 13% over prior-year quarter on a constant currency basis.

Highlights:

  • Third quarter same store revenue per available room (“RevPAR”) up 13% over prior-year quarter on a constant currency basis, exceeding guidance range of 5% to 9%
  • Third quarter total revenue up $13.7 million or 8% over prior-year quarter on a constant currency basis
  • Third quarter total adjusted EBITDA up $8.1 million or 19% over prior-year quarter on a constant currency basis
  • Appointed seasoned hospitality executive and board member Roeland Vos president and chief executive officer in September 2015
  • Announced the appointment of Philippe Cassis to executive vice president, chief operating officer in August 2015
  • Announced the appointment of Lord Livingston to the Company's board of directors in October 2015

Belmond Ltd. (NYSE:BEL) (the “Company”), owners, part-owners or managers of 46 luxury hotel, restaurant, tourist train and river cruise properties operating in 23 countries, today announced its results for the third quarter ended September 30, 2015.

Total revenue for the third quarter of 2015 was $173.7 million, down $14.1 million or 8% from $187.8 million for the third quarter of 2014 largely due to year-over-year currency depreciation. In constant currency, total revenue for the third quarter of 2015 increased $13.7 million or 8% over the third quarter of 2014.

Total hotels revenue for the third quarter was $145.5 million, a decrease of $13.2 million or 8% from $158.7 million for the third quarter of 2014 largely due to year-over-year currency depreciation. In constant currency, total hotels revenue for the third quarter of 2015 increased $13.1 million or 10% over the prior-year quarter primarily due to revenue growth of $11.8 million or 15% at the Company's European hotels.

Same store RevPAR for owned hotels for the third quarter of 2015 increased 13% over the prior-year quarter on a constant currency basis as a result of a 7% increase in average daily rate ("ADR") and a 3 percentage point increase in occupancy.

Total adjusted EBITDA for the third quarter of 2015 was $51.9 million, a $1.6 million or 3% decrease from total adjusted EBITDA of $53.5 million for the third quarter of 2014 largely due to year-over-year currency depreciation. In constant currency, total adjusted EBITDA for the third quarter of 2015 increased $8.1 million or 19% primarily as a result of year-over-year adjusted EBITDA growth of $7.2 million or 21% at the Company's European hotels and $1.6 million or 26% for the Company's PeruRail joint venture.

Adjusted net earnings from continuing operations for the third quarter of 2015 were $14.6 million ($0.14 per common share), a $2.4 million or 14% decrease from $17.0 million ($0.16 per common share) for the third quarter of 2014.

Roeland Vos, president and chief executive officer, remarked: “I am honored by my recent appointment as Belmond's CEO and am excited by the opportunities I see for this Company. I firmly believe we have a solid strategy and that we have the foundation in place to accelerate the pace of growth on that strategy. At the same time, we will remain steadfastly focused on our near-term performance. Our 2015 results reflect that continued focus and illustrate the benefit of this year's revenue-generation efforts, including U.S. sales and marketing efforts to drive incremental outbound demand to Europe. In the second quarter, we saw a meaningful year-over-year increase in constant currency results largely driven by the performance of our European hotels, and that momentum continued into the second half of the year. For the third quarter, on a constant currency basis, same store RevPAR for our European hotels increased 19% largely as a result of an 8 percentage point increase in occupancy. This growth from our European hotels helped drive overall growth for the third quarter, with total same store RevPAR up 13% and adjusted EBITDA up 19%, both in constant currency and as compared to the third quarter of 2014.

"Looking at the remainder of 2015, we expect that the strong constant currency performance we experienced for the first nine months of the year will continue through the fourth quarter. As a result of exceeding our third quarter guidance, coupled with stronger growth expectations for our fourth quarter of 2015, we have again increased our full year 2015 guidance. Our same store, constant currency RevPAR guidance for the full year is now for growth of between 8% and 12%."

To view full third quarter financial results and tables please visit:

http://investor.belmond.com/news/2015/11-04-2015-221057226.aspx

RLJ Lodging Trust reports third quarter net Income of $40.6 million, compared to $36.8 million for the comparable period in 2014. Pro forma RevPAR increased 2.9%

Highlights:

  • Pro forma RevPAR increased 2.9%, Pro forma ADR increased 5.2%, and Pro forma Occupancy decreased 2.2%
  • Achieved Pro forma Hotel EBITDA Margin of 37.1%
  • Pro forma Consolidated Hotel EBITDA increased 2.6% to $105.9 million
  • Repurchased 5.0 million shares for $140.1 million
  • Completed and opened two hotel conversion properties located in San Francisco and Houston
  • Acquired three hotels in attractive high-growth markets for $175.9 million
  • Sold two non-strategic properties for $19.8 million, one of which was sold subsequent to quarter end

“We continued to deliver solid performance across our portfolio, despite softness in select markets and tough year-over-year comparisons to last year’s exceptional quarterly results. I am also particularly pleased with our ability to return value to our shareholders as we executed on our $200.0 million share repurchase program,” commented Thomas J. Baltimore, Jr., President and Chief Executive Officer. “We believe we have positioned the Company for continuous growth; our recent conversions, acquisitions, and renovations are providing strong catalysts to our high-quality portfolio and are expected to drive additional growth in 2016 and beyond.”

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. Pro forma RevPAR and Pro forma Hotel EBITDA Margin are reported on a comparable basis and therefore exclude hotels sold during the period and non-comparable hotels that were not open for operation or were closed for renovation for comparable periods. Explanations of EBITDA, Adjusted EBITDA, Hotel EBITDA, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included at the end of this release.

Pro forma RevPAR for the three months ended September 30, 2015, increased 2.9% over the comparable period in 2014, driven by a Pro forma ADR increase of 5.2%, which was offset by a Pro forma Occupancy decrease of 2.2%. Excluding Houston, which experienced softness in the quarter, Pro forma RevPAR growth was 3.9%. Five of the Company’s markets achieved double-digit RevPAR growth, including Portland, Dallas, Northern California, Southern California, and San Antonio, which experienced RevPAR growth of 17.5%, 16.4%, 13.7%, 11.3%, and 10.4%, respectively. For the nine months ended September 30, 2015, Pro forma RevPAR increased 4.3% over the comparable period in 2014, driven by a Pro forma ADR increase of 5.9%, which was offset by a Pro forma Occupancy decrease of 1.4%.

Pro forma Hotel EBITDA Margin for the three months ended September 30, 2015, increased eight basis points over the comparable period in 2014 to 37.1%. Excluding Houston, Pro forma Hotel EBITDA Margin increased 47 basis points. For the nine months ended September 30, 2015, Pro forma Hotel EBITDA Margin increased 22 basis points over the comparable period in 2014 to 36.6%.

Pro forma Consolidated Hotel EBITDA includes the results of non-comparable hotels. For the three months ended September 30, 2015, Pro forma Consolidated Hotel EBITDA increased $2.7 million to $105.9 million, representing a 2.6% increase over the comparable period in 2014. For the nine months ended September 30, 2015, Pro forma Consolidated Hotel EBITDA increased $19.8 million to $310.7 million, representing an increase of 6.8% over the comparable period in 2014.

Adjusted EBITDA for the three months ended September 30, 2015, decreased $2.9 million to $98.8 million, representing a 2.8% decrease over the comparable period in 2014. For the nine months ended September 30, 2015, Adjusted EBITDA increased $13.6 million to $290.3 million, representing an increase of 4.9% over the comparable period in 2014.

Adjusted FFO for the three months ended September 30, 2015, decreased $2.8 million to $84.6 million, representing a 3.2% decrease over the comparable period in 2014. For the nine months ended September 30, 2015, Adjusted FFO increased $15.4 million to $249.9 million, representing an increase of 6.5% over the comparable period in 2014.

Adjusted FFO per diluted share and unit for the three and nine months ended September 30, 2015, was $0.66 and $1.90, respectively, based on the Company’s diluted weighted-average common shares and units outstanding of 129.0 million and 131.3 million for each period, respectively.

Non-recurring items which were noteworthy for the three months ended September 30, 2015, included a gain of $0.8 million primarily associated with the sale of a hotel. For the nine months ended September 30, 2015, non-recurring items included gains totaling $23.8 million attributed to the sale of 22 hotels.

Non-recurring items are included in net income attributable to common shareholders 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 in this press release for the three and nine months ended September 30, 2015 and 2014.

Net income attributable to common shareholders for the three months ended September 30, 2015, was $40.6 million, compared to $36.8 million for the comparable period in 2014. For the nine months ended September 30, 2015, net income attributable to common shareholders was $144.4 million, compared to $101.6 million for the comparable period in 2014.

Net cash flow from operating activities for the nine months ended September 30, 2015, totaled $232.9 million, compared to $224.1 million for the comparable period in 2014.

Acquisitions

On July 15, 2015, the Company acquired the 164-room Hyatt Place DC/Downtown/K Street in Washington, DC for $68.0 million, or approximately $415,000 per key. The Company expects that the purchase price will represent a forward capitalization rate of approximately 7.1% based on the hotel's projected 2016 net operating income.

On July 20, 2015, the Company acquired the 170-room Homewood Suites Seattle/Lynnwood in Lynnwood, WA for $37.9 million, or approximately $223,000 per key. The Company expects that the purchase price will represent a forward capitalization rate of approximately 8.0% based on the hotel's projected 2016 net operating income.

On September 25, 2015, the Company acquired the 156-room Residence Inn Palo Alto Los Altos in Los Altos, CA for $70.0 million, or approximately $449,000 per key. The Company expects that the purchase price will represent a forward capitalization rate of approximately 8.1% based on the hotel's projected 2016 net operating income.

Conversions

On August 24, 2015, the Company completed the conversion of the 167-room SpringHill Suites Houston Downtown / Convention Center in Houston, TX for an all-in investment of $32.6 million, or approximately $195,000 per key. The Company expects a forward capitalization rate of approximately 8.0% based on the hotel's projected 2016 net operating income.

On September 19, 2015, the Company completed the conversion of the 166-room Courtyard San Francisco Union Square in San Francisco, CA for an all-in investment of $56.5 million, or approximately $340,000 per key. The Company expects a forward capitalization rate of approximately 8.6% based on the hotel's projected 2016 net operating income.

Dispositions

On July 7, 2015, the Company sold the 80-room Residence Inn South Bend in South Bend, IN for $5.8 million.

To view full third quarter financial results and tables please visit:

http://investor.rljlodgingtrust.com/phoenix.zhtml?c=243028&p=irol-news&nyo=0

Ashford Hospitality Trust reports third quarter 2015 net loss of $24.8 million compared to a net loss of $22 million in the year ago quarter. RevPAR for all hotels increased 5.0% during the quarter.

– 5.0% RevPAR Increase for All Hotels for the Third Quarter

– Adjusted EBITDA Increased 26%

– Adjusted Funds From Operations per Share Increased 40%

Ashford Hospitality Trust, Inc. (NYSE: AHT) ("the Company" or "Ashford Trust") today reported financial results and performance measures for the third quarter ended September 30, 2015. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) are pro forma assuming each of the hotel properties in the Company's hotel portfolio as of September 30, 2015 were owned as of the beginning of each of the periods presented. Unless otherwise stated, all reported results compare the third quarter ended September 30, 2015, with the third quarter ended September 30, 2014 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables.

OVERVIEW

  • Opportunistic focus on upper upscale full service hotels
  • Uses moderate debt levels of approximately 55 – 60% net debt/gross assets
  • Attractive dividend yield of approximately 6.9%
  • One of the highest long-term total shareholder returns in the industry

FINANCIAL AND OPERATING HIGHLIGHTS

  • RevPAR for all hotels increased 5.0% during the quarter
  • RevPAR for all hotels not under renovation increased 5.8% during the quarter
  • Adjusted EBITDA increased $21.6 million or 26%
  • Adjusted funds from operations (AFFO) was $0.35 per diluted share for the quarter as compared with $0.25 from the prior-year quarter representing an increase of 40%
  • The Company's common stock is currently trading at an approximate 6.9% dividend yield
  • On July 7, 2015, the Company announced it had completed the conversion of the 260-room Beverly Hills Marriott, formerly the Crowne Plaza Beverly Hills, following an extensive $26.0 million renovation
  • On July 27, 2015, the Company distributed the remaining shares that it owned of Ashford Hospitality Prime, Inc. (NYSE: AHP) ("Ashford Prime") to its shareholders
  • Capex invested in the quarter was $42.2 million

CAPITAL STRUCTURE

At September 30, 2015, the Company had total assets of $4.9 billion in continuing operations. As of September 30, 2015, the Company had $3.7 billion of mortgage debt in continuing operations. Ashford Trust's total combined debt had a blended average interest rate of 4.97%.

On July 1, 2015, the Company announced that it had closed on the acquisition of the 237-room W Atlanta Downtown hotel for total consideration of $56.8 million ($239,000 per key). On a forward 12-month basis, the purchase price represents an estimated cap rate of 7.2% on net operating income and an estimated 11.6x EBITDA multiple. The Company financed the property with a $40.5 million non-recourse mortgage loan. The loan is interest only and provides for a floating interest rate of LIBOR + 5.10%.

On July 27, 2015, the Company distributed the remaining shares that it owned of Ashford Prime to its shareholders through a pro-rata, taxable dividend which equated to approximately 0.04 shares of Ashford Prime common stock for every share of Ashford Trust common stock owned. Ashford Trust no longer has any ownership interest in Prime.

PORTFOLIO REVPAR

As of September 30, 2015, the Ashford Trust portfolio consisted of direct hotel investments with 130 properties classified in continuing operations. During the third quarter of 2015, 115 of the Company's hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for the hotels in continuing operations on a pro forma total basis (all 130 hotels) and pro forma not under renovation basis (115 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio. Details of each category are provided in the tables attached to this release.

  • Pro forma RevPAR increased 5.0% to $115.93 for all hotels on a 4.2% increase in ADR and a 0.8% increase in occupancy
  • Pro forma RevPAR increased 5.8% to $118.58 for hotels not under renovation on a 3.9% increase in ADR and a 1.8% increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

The Company believes year-over-year Hotel EBITDA and Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company's portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Hotel EBITDA and Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company's portfolio as of the end of the current period. As the Company's portfolio mix changes from time to time so will the seasonality for Pro forma Hotel EBITDA and Pro forma Hotel EBITDA Margin. The details of the quarterly calculations for the previous four quarters for the 130 hotels are provided in the table attached to this release.

STRATEGY REFINEMENTS

Ashford Trust is reaffirming its previously announced strategy refinements as follows:

  • The Company will focus on acquiring and owning upper upscale, full service hotels
  • The Company is not planning nor expects any future platform spinoffs
  • The Company will continue to target a net debt to gross assets ratio of 55% – 60%
  • The Company will continue to target cash and cash equivalents at a level of 25% – 35% of its total equity market capitalization for the purposes of:
    • property-level and corporate-level working capital needs
    • as a hedge against a downturn in the economy or hotel fundamentals
    • to be prepared to pursue accretive investments or stock buybacks as those opportunities arise
  • The sale process for the Company's 24 select-service hotel portfolio is on track with anticipated closing in the first quarter of 2016 with expected gross proceeds of approximately $550-$600 million
  • The Company intends to take an opportunistic approach to selling its remaining select-service hotels in the future to further simplify and streamline the platform

PLANNED SALE OF SELECT-SERVICE HOTEL PORTFOLIO

The for-sale, 24 select-service hotel portfolio totals 4,410 rooms, is encumbered by approximately $190.0 million of long-term, fixed rate debt and approximately $194.0 million of maturing or floating rate debt for total debt of approximately $384.0 million. The current trailing 12-month NOI for the portfolio is approximately $45.0 million, and the trailing 12-month RevPAR for the portfolio is approximately $88. It is anticipated that the sale will be completed in the first quarter of 2016.

To view full third quarter financial results and tables please visit:

http://www.ahtreit.com/resourcefiles/pdf/q3-aht-release.pdf

Ashford Hospitality Prime reports third quarter 2015 net loss of $7.7 million compared to net gain of $3.4 million in Q3 2014. RevPAR for all hotels increased 2.7% to $204.34 during the third quarter.

Announced Decision to Explore Strategic Alternatives to Increase Shareholder Value

Ashford Hospitality Prime, Inc. (NYSE: AHP) ("Ashford Prime" or the "Company") today reported the following results and performance measures for the third quarter ended September 30, 2015. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) are pro forma assuming each of the hotel properties in the Company's hotel portfolio as of September 30, 2015 were owned as of the beginning of each of the periods presented. Unless otherwise stated, all reported results compare the third quarter ended September 30, 2015, with the third quarter ended September 30, 2014 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

OVERVIEW

  • Focuses on luxury hotels in resort and gateway markets
  • Targets conservative leverage levels of Net Debt/EBITDA of 5.0x or less
  • Above market alignment of management and shareholders
  • Recently doubled dividend to yield approximately 2.7%

FINANCIAL AND OPERATING HIGHLIGHTS

  • RevPAR for all hotels increased 2.7% to $204.34 during the third quarter, driven by a 3.7% increase in ADR and a 1.0% decrease in occupancy
  • On July 9, 2015, the Company announced it had completed the acquisition of the leasehold interest in the award-winning 62-room Bardessono Hotel and Spa in Yountville, CA for total consideration of $85.0 million. Ashford Inc. provided $2.0 million in key money consideration for the acquisition
  • On August 28, 2015, the Company announced that the Independent Directors of the Board made the decision to explore a full range of strategic alternatives, including a possible sale of the Company
  • Capex invested in the quarter was $5.2 million

CAPITAL STRUCTURE

At September 30, 2015, the Company had total assets of $1.3 billion in continuing operations. As of September 30, 2015, the Company had $760 million of mortgage debt in continuing operations of which $49 million related to its joint venture partner's share of debt on the Capital Hilton and Hilton La Jolla Torrey Pines. Ashford Prime's total combined debt had a blended average interest rate of 4.54%.

On July 9, 2015, the Company announced it had closed on the acquisition of the leasehold interest in the award-winning 62-room Bardessono Hotel and Spa in Yountville, CA for a total consideration of $85.0 million. Ashford Inc. provided $2.0 million in key money consideration for the acquisition.

PORTFOLIO REVPAR

As of September 30, 2015, the Ashford Prime Portfolio consisted of direct hotel investments with eleven properties classified in continuing operations. During the third quarter of 2015, nine of the Company's hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for the hotels in continuing operations on a pro forma total basis (all eleven hotels) and pro forma not under renovation basis (nine hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio. Details of each category are provided in the tables attached to this release.

  • Pro forma RevPAR increased 2.7% to $204.34 for all hotels on a 3.7% increase in ADR and a 1.0% decrease in occupancy
  • Pro forma RevPAR increased 3.0% to $216.78 for hotels not under renovation on a 2.8% increase in ADR and a 0.2% increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

The Company believes year-over-year Hotel EBITDA and Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company's portfolio, to help investors better understand this seasonality, the Company provides quarterly detail on its Hotel EBITDA and Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company's portfolio as of the end of the current period. As the Company's portfolio mix changes from time to time so will the seasonality for Pro forma Hotel EBITDA and Pro forma Hotel EBITDA Margin. The details of the quarterly calculations for the previous four quarters for the eleven hotels included in continuing operations are provided in the table attached to this release.

To view full third quarter financial results and tables please visit:

http://www.ahpreit.com/ResourceFiles/pdf/ahp-q3-2015-earnings-release.pdf

Ashford reports adjusted net income for the third quarter of 2015 of $3.0 million, or $1.34 per diluted share, compared with a loss of $4.4 million, or $2.24 per diluted share, for the third quarter of 2014.

Ashford (NYSE MKT: AINC) (the "Company") today reported the following results and performance measures for the third quarter ended September 30, 2015. On November 12, 2014, the Company completed its spin-off from Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Trust"), but the Company has presented its prior year financial statements in accordance with GAAP, which requires that historical carve-out financial statements be presented. Accordingly, the Company's results for the prior year period may not be representative of results in future periods. Also, for the third quarter, the Company has consolidated the financial position and operating results of the private investment funds managed by Ashford Investment Management. The financial impact from this consolidation is adjusted out of the Company's financials through the noncontrolling interests in consolidated entities line items on the Company's income statement and balance sheet. Unless otherwise stated, all reported results compare the third quarter ended September 30, 2015, with the third quarter ended September 30, 2014 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables.

OVERVIEW

  • Fee based, low cap-ex business model
  • Diversified platform of multiple fee generators
  • Leader in asset and investment management for the real estate & hospitality sectors

FINANCIAL AND OPERATING HIGHLIGHTS

  • On September 18, 2015, the Company announced that it entered into a definitive agreement for a business combination with Remington Holdings, LP ("Remington") creating the only