Financial News

Ashford Prime Reports Fourth Quarter And Year End 2017 Results

DALLAS, Feb. 28, 2018 /PRNewswire/ -- Ashford Hospitality Prime, Inc. (NYSE: AHP) ("Ashford Prime" or the "Company") today reported the following results and performance measures for the fourth quarter ended December 31, 2017.  The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA are comparable assuming each of the hotel properties in the Company's hotel portfolio as of December 31, 2017 were owned as of the beginning of each of the periods presented.  Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2017, with the fourth quarter ended December 31, 2016 (see discussion below).  The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

STRATEGIC OVERVIEW

  • Focused strategy of investing in luxury hotels and resorts
  • Targets conservative leverage levels of 45% Net Debt to Gross Assets
  • Highly-aligned management team and advisory structure
  • Dividend yield of approximately 7.4%

FINANCIAL AND OPERATING HIGHLIGHTS

  • Net income attributable to common stockholders for the quarter was $23.2 million or $0.65 per diluted share. For the full year of 2017, net income attributable to common stockholders was $16.2 million or $0.51 per diluted share.
  • Comparable RevPAR for all hotels that did not incur business interruption claims decreased 1.1% to $174.39 during the fourth quarter  
  • Comparable RevPAR for all hotels not under renovation decreased 2.7% to $181.23 during the fourth quarter
  • Comparable Hotel EBITDA Margin for all hotels increased 299 basis points to 30.3% for the quarter
  • Comparable Hotel EBITDA flow-through for all hotels was ­­­­101% for the quarter
  • Adjusted funds from operations (AFFO) was $0.31 per diluted share for the quarter as compared with $0.34 per diluted share from the prior-year quarter
  • Adjusted EBITDA was $22.0 million for the quarter, compared with $21.6 million for the prior year quarter
  • During the quarter, the Company booked $4.1 million of business interruption income related to lost profits at the Ritz-Carlton St. Thomas and the Pier House Resort during September, October and November 2017
  • During the quarter, the Company announced that it entered into an agreement with Marriott to convert its Courtyard San Francisco Downtown hotel to an Autograph Collection property
  • During the quarter, the Company announced that it had completed the sale of its Marriott Plano Legacy hotel in Plano, Texas for $104 million
  • Subsequent to the end of the quarter, the Company announced it has entered into a definitive agreement to acquire the 266-room Ritz-Carlton Sarasota in Sarasota, FL for $171 million ($643,000 per key)
  • Capex invested during the quarter was $10.3 million

UPDATE ON IMPACT FROM HURRICANES AND CALIFORNIA WILDFIRES
As previously announced, the Company's Ritz-Carlton St. Thomas resort received physical damage from Hurricane Irma and the Company continues to work with its insurers to assess the damage and impact to operations. Three of the six guestroom buildings on the property were damaged, and the Company, along with Ritz-Carlton, continues to work on a comprehensive capital investment plan to rebuild the resort. The resort, which represents 8.3% of Ashford Prime's Hotel EBITDA on a trailing twelve-month basis through the fourth quarter, remains functioning and currently has 83 of its 180 guest rooms available for those taking part in the recovery effort.  The resort has suspended online reservations until October 2018. 

The Company's Pier House Resort & Spa sustained minor physical damage from Hurricane Irma, and the hotel is currently accepting reservations and has resumed operations with all of its 142 guest rooms available and in service. 

In the fourth quarter, the Company recognized $4.1 million of business interruption income for these two properties related to lost profits for the period of September through November. The Company will continue to work with its insurers on the business interruption claim at these properties.

During the quarter, the Company's two properties in Yountville, California – the Bardessono Hotel & Spa and the Hotel Yountville – were negatively impacted by the wildfires that affected Northern California.  While neither property incurred any physical damage to their structures, the fires had a significant impact on the business operations of the hotels and the Company is in the process of working with its insurers on business interruption claims.  As part of that effort, the Company expects to record $2.3 million in business interruption income in the first quarter for lost profits from the fourth quarter at these two hotels.  The Company has a deductible of $500,000 associated with this claim.

RITZ-CARLTON SARASOTA ACQUISITION
On February 16, 2018, the Company announced it had entered into a definitive agreement to acquire the 266-room Ritz-Carlton Sarasota in Sarasota, FL for $171 million ($643,000 per key).  The purchase price represents a trailing twelve month cap rate, as of December 31, 2017, of 6.0% and the Company expects to realize a stabilized unleveraged yield of approximately 8% on its investment.  To fund the acquisition, the Company plans to use cash on its balance sheet as well as either drawing on its revolving credit line or securing a non-recourse mortgage loan on the property.  The acquisition is expected to close in April 2018, subject to customary closing conditions.  Because the acquisition is subject to customary closing conditions, the Company can give no assurance that the transaction will be consummated by such date or at all. 

UPDATE ON NON-CORE HOTELS STRATEGY
During the fourth quarter, the Company announced the finalization of its strategy for its non-core hotels.  On November 1, 2017, the Company announced plans to convert its Courtyard San Francisco Downtown hotel to an Autograph Collection hotel by December 2019 pursuant to a conversion PIP currently estimated to be approximately $30 million incremental to capital projects already underway - including updates to the guestrooms, guest bathrooms, corridors, lobby, restaurant, facade, and meeting space - which will create a distinctive theme and style for the property that is commensurate with the Autograph Collection product. Marriott will continue to manage the property after the conversion.

Additionally, on November 1, 2017, the Company announced that it had completed the sale of its Marriott Plano Legacy hotel in Plano, Texas for $104 million.  The Company also announced that it is in the process of marketing for sale its other non-core hotel, the Renaissance Tampa in Tampa, FL. 

CAPITAL STRUCTURE
At December 31, 2017, the Company had total assets of $1.4 billion.  As of December 31, 2017, the Company had $826 million of mortgage debt of which $48 million related to its joint venture partner's share of debt on the Capital Hilton and Hilton La Jolla Torrey Pines.  The Company's total combined debt had a blended average interest rate of 4.3%.

PORTFOLIO REVPAR
As of December 31, 2017, the portfolio consisted of twelve properties.  During the fourth quarter of 2017, seven of the Company's hotels were not under renovation.  The Company believes reporting its operating metrics for its hotels on a comparable total basis (all 12 hotels) and comparable not under renovation basis (7 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.

  • Comparable RevPAR decreased 9.2% to $188.15 for all hotels on a 5.3% decrease in ADR and a 4.2% decrease in occupancy
  • Comparable RevPAR decreased 2.7% to $181.23 for hotels not under renovation on a 0.8% decrease in ADR and a 1.9% decrease in occupancy
  • Comparable RevPAR decreased 1.1% for all hotels that did not incur business interruption claims on a 2.2% increase in ADR and a 3.2% decrease in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
The Company believes year-over-year Comparable Hotel EBITDA and Comparable 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 Comparable Hotel EBITDA and Comparable 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 Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin.  The details of the quarterly calculations for the previous four quarters for the twelve hotels are provided in the table attached to this release.

COMMON STOCK DIVIDEND
On December 11, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.16 per diluted share for the Company's common stock for the fourth quarter ending December 31, 2017.  The dividend, which equates to an annual rate of $0.64 per share, was paid on January 16, 2018, to shareholders of record as of December 29, 2017.

The Board also approved the Company's dividend policy for 2018.  The Company expects to pay a quarterly cash dividend of $0.16 per share for 2018, or $0.64 per share on an annualized basis.  The Board will continue to review its dividend policy on a quarter-to-quarter basis.  The adoption of a dividend policy does not commit the Board of Directors to declare future dividends or the amount thereof.

"Hurricanes Irma and Maria as well as the wildfires in Northern California had a significant impact on the operations of four of our properties and on our overall results for the quarter," said Richard J. Stockton, Ashford Prime's President and Chief Executive Officer.  "However, on a positive note, we continue to work with our insurers on business interruption claims at the affected properties and during the quarter we were able to realize approximately $4.1 million in business interruption recoveries.  We remain focused on the execution of our strategies within the luxury chain scale segment and are excited about our pending acquisition of the Ritz-Carlton Sarasota.  With the upbranding of the Courtyard San Francisco, the sale of the Marriott Plano and the announced listing for sale of the Tampa Renaissance, we are pleased to have made significant progress on our strategy for our non-core hotels and refining our portfolio.  We will continue to look for ways to accretively grow our luxury hotel portfolio and maximize returns for our shareholders."

INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Prime, Inc. will conduct a conference call on Thursday, March 1, 2018, at 11:00 a.m. ET.  The number to call for this interactive teleconference is (719) 325-4821.  A replay of the conference call will be available through Thursday, March 8, 2018, by dialing (719) 457-0820 and entering the confirmation number, 5950335.

The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2017 earnings release conference call.  The live broadcast of Ashford Prime's quarterly conference call will be available online at the Company's web site, www.ahpreit.com on Thursday, March 1, 2018, beginning at 11:00 a.m. ET.  The online replay will follow shortly after the call and continue for approximately one year.

Substantially all of our non-current assets consist of real estate investments secured by real estate.  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 industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel EBITDA.  FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us.  None of FFO, AFFO, EBITDA or Hotel EBITDA represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions.  However, management believes FFO, AFFO, EBITDA, and Hotel EBITDA to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

*  *  *  *  *

Ashford Hospitality Prime is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.

Ashford has created an Ashford App for the hospitality REIT investor community.  The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford."

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements in this press release may include, among others, statements about the implied share price for the Company's common stock.  These forward-looking statements are subject to risks and uncertainties.  When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements.  Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Prime's control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation:  general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; our ability to successfully complete and integrate acquisitions, and manage our planned growth, and the degree and nature of our competition.  These and other risk factors are more fully discussed in Ashford Prime's filings with the Securities and Exchange Commission.  EBITDA is defined as net income before interest, taxes, depreciation and amortization.  EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price.  A capitalization rate is determined by dividing the property's annual net operating income by the purchase price.  Net operating income is the property's funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues.  Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues.  Hotel EBITDA Margin is Hotel EBITDA divided by total revenues.  Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.

The forward-looking statements included in this press release are only made as of the date of this press release.  Investors should not place undue reliance on these forward-looking statements.  We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)



December 31,
2017


December 31,
2016

ASSETS




Investments in hotel properties, gross

$        1,403,110


$           1,258,412

Accumulated depreciation

(257,268)


(243,880)

Investments in hotel properties, net

1,145,842


1,014,532

Cash and cash equivalents

137,522


126,790

Restricted cash

47,820


37,855

Accounts receivable, net of allowance of $94 and $96, respectively

14,334


18,194

Insurance receivable

8,825


Inventories

1,425


1,479

Note receivable

8,098


8,098

Deferred costs, net

656


1,020

Prepaid expenses

3,670


3,669

Investment in Ashford Inc., at fair value

18,124


8,407

Derivative assets

594


1,149

Other assets

9,426


2,249

Intangible assets, net

22,545


22,846

Due from Ashford Trust OP, net


488

Due from AQUA U.S. Fund


2,289

Due from related party, net

349


377

Due from third-party hotel managers

4,589


7,555

Total assets

$        1,423,819


$           1,256,997





LIABILITIES AND EQUITY




Liabilities:




Indebtedness, net

$           820,959


$              764,616

Accounts payable and accrued expenses

56,803


44,791

Dividends and distributions payable

8,146


5,038

Due to Ashford Trust OP, net


Due to Ashford Inc.

1,703


5,085

Due to affiliate


2,500

Due to third-party hotel managers

1,709


973

Intangible liability, net

3,569


3,625

Other liabilities

1,628


1,432

Total liabilities

894,517


828,060





5.50% Series B cumulative convertible preferred stock, $0.01 par value, 4,965,850 and 2,890,850 shares issued and

     outstanding at December 31, 2017 and 2016, respectively

106,123


65,960

Redeemable noncontrolling interests in operating partnership

46,627


59,544

Equity:




    Common stock, $0.01 par value, 200,000,000 shares authorized, 32,120,210 and 26,021,552 shares issued and 
          outstanding at December 31, 2017 and 2016, respectively

321


260

Additional paid-in capital

469,791


401,790

Accumulated deficit

(88,807)


(93,254)

Total stockholders' equity of the Company

381,305


308,796

Noncontrolling interest in consolidated entities

(4,753)


(5,363)

Total equity

376,552


303,433

Total liabilities and equity

$        1,423,819


$           1,256,997

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)



Three Months Ended


Year Ended


December 31,


December 31,


2017


2016


2017


2016

REVENUE








Rooms

$  61,803


$  65,066


$   286,006


$   287,844

Food and beverage

20,815


23,596


96,415


95,618

Other

9,896


5,290


31,484


22,267

Total hotel revenue

92,514


93,952


413,905


405,729

Other

42


25


158


128

Total revenue

92,556


93,977


414,063


405,857

EXPENSES








Hotel operating expenses








Rooms

14,623


15,700


65,731


65,541

Food and beverage

14,579


16,815


68,469


68,471

Other expenses

27,388


26,191


122,322


113,114

Management fees

3,431


3,498


15,074


15,456

Total hotel operating expenses

60,021


62,204


271,596


262,582

Property taxes, insurance and other

5,696


5,862


21,337


20,539

Depreciation and amortization

12,689


11,555


52,262


45,897

Impairment charges

60



1,068


Advisory services fee:








Base advisory fee

2,221


2,009


8,800


8,343

Reimbursable expenses

476


771


2,017


2,798

Incentive fee


(772)



Non-cash stock/unit-based compensation

615


594


(1,683)


3,814

Contract modification cost



5,000


Transaction costs

40


(44)


6,678


457

Corporate, general and administrative:








Non-cash stock/unit-based compensation

20



265


271

Other general and administrative

1,119


(2,128)


7,881


14,015

Total operating expenses

82,957


80,051


375,221


358,716

OPERATING INCOME (LOSS)

9,599


13,926


38,842


47,141

Equity in earnings (loss) of unconsolidated entity




(2,587)

Interest income

215


35


690


167

Gain (loss) on sale of hotel property

23,797



23,797


26,359

Other income (expense)

(85)


(77)


(377)


(165)

Interest expense

(9,045)


(9,052)


(34,034)


(37,712)

Amortization of loan costs

(1,149)


(763)


(4,903)


(3,169)

Write-off of loan costs and exit fees

(1,531)



(3,874)


(2,595)

Unrealized gain (loss) on investments

6,314


(879)


9,717


(1,970)

Unrealized gain (loss) on derivatives

(527)


(1,793)


(2,056)


425

INCOME (LOSS) BEFORE INCOME TAXES

27,588


1,397


27,802


25,894

Income tax (expense) benefit

856


(552)


522


(1,574)

NET INCOME (LOSS)

28,444


845


28,324


24,320

(Income) loss from consolidated entities attributable to noncontrolling interest

(528)


(536)


(3,264)


(3,105)

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

(2,996)


95


(2,038)


(1,899)

NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

24,920


404


23,022


19,316

Preferred dividends

(1,708)


(994)


(6,795)


(3,860)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$  23,212


$     (590)


$     16,227


$     15,456









INCOME (LOSS) PER SHARE – BASIC AND DILUTED








Basic:








Net income (loss) attributable to common stockholders

$      0.73


$    (0.03)


$         0.52


$         0.57

Weighted average common shares outstanding – basic

31,610


25,532


30,473


26,648

Diluted:








Net income (loss) attributable to common stockholders

$      0.65


$    (0.03)


$         0.51


$         0.55

Weighted average common shares outstanding – diluted

38,178


25,532


34,706


31,195

Dividends declared per common share:

$      0.16


$      0.12


$         0.64


$         0.46

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA

(in thousands)

(unaudited)



Three Months Ended


Year Ended


December 31,


December 31,


2017


2016


2017


2016

Net income (loss)

$                          28,444


$                               845


$                          28,324


$                          24,320

   (Income) loss from consolidated entities attributable to noncontrolling interest

(528)


(536)


(3,264)


(3,105)

   Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

(2,996)


95


(2,038)


(1,899)

Net income (loss) attributable to the Company

24,920


404


23,022


19,316

Interest income

(213)


(35)


(683)


(167)

Interest expense and amortization of loan costs

9,691


9,393


37,029


39,232

Depreciation and amortization

11,952


10,838


49,361


43,054

Income tax expense (benefit)

(708)


552


(389)


1,574

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

2,996


(95)


2,038


1,899

EBITDA available to the Company and OP unitholders

48,638


21,057


110,378


104,908

Amortization of favorable (unfavorable) contract assets (liabilities)

44


37


180


106

Transaction and management conversion costs

74


(44)


6,774


457

Other (income) expense

85


77


377


165

(Gain) loss on sale of hotel property

(23,797)



(23,797)


(26,359)

Write-off of loan costs and exit fees

1,531



3,874


2,595

Unrealized (gain) loss on investments

(6,314)


879


(9,717)


1,970

Unrealized (gain) loss on derivatives

524


1,791


2,053


(427)

Non-cash stock/unit-based compensation

665


615


(1,327)


4,156

Legal, advisory and settlement costs

203


(2,862)


3,711


11,194

Contract modification cost



5,000


Software implementation costs



79


Impairment and uninsured hurricane related costs

308



4,889


Company's portion of unrealized (gain) loss of investment in securities investment fund




2,587

Adjusted EBITDA available to the Company and OP unitholders

$                          21,961


$                          21,550


$                        102,474


$                        101,352

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO

(in thousands, except per share amounts)

(unaudited)



Three Months Ended


Year Ended


December 31,


December 31,


2017


2016


2017


2016

Net income (loss)

$                          28,444


$                               845


$                          28,324


$                          24,320

(Income) loss from consolidated entities attributable to noncontrolling interest

(528)


(536)


(3,264)


(3,105)

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

(2,996)


95


(2,038)


(1,899)

Preferred dividends

(1,708)


(994)


(6,795)


(3,860)

Net income (loss) attributable to common stockholders

23,212


(590)


16,227


15,456

Depreciation and amortization on real estate

11,952


10,838


49,361


43,054

Impairment charges on real estate

60



1,068


Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

2,996


(95)


2,038


1,899

(Gain) loss on sale of hotel property

(23,797)



(23,797)


(26,359)

FFO available to common stockholders and OP unitholders

14,423


10,153


44,897


34,050

Preferred dividends

1,708


994


6,795


3,860

Transaction and management conversion costs

74


(44)


6,774


457

Other (income) expense

85


77


377


165

Write-off of loan costs and exit fees

1,531



3,874


2,595

Unrealized (gain) loss on investments

(6,314)


879


(9,717)


1,970

Unrealized (gain) loss on derivatives

524


1,791


2,053


(427)

Non-cash stock/unit-based compensation

665


615


(1,327)


4,156

Legal, advisory and settlement costs

203


(2,862)


3,711


11,194

Contract modification cost



5,000


Software implementation costs



79


Uninsured hurricane related costs

248



3,821


Tax reform

(161)



(161)


Company's portion of unrealized (gain) loss of investment in securities investment fund




2,587

Adjusted FFO available to the Company and OP unitholders

$                          12,986


$                          11,603


$                          66,176


$                          60,607

Adjusted FFO per diluted share available to the Company and OP unitholders

$                              0.31


$                              0.34


$                              1.62


$                              1.73

Weighted average diluted shares

42,406


33,891


40,957


34,999

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

DECEMBER 31, 2017

(dollars in thousands)

(unaudited)


Indebtedness


Maturity


Interest Rate


Fixed-
Rate
Debt


Floating-
Rate
Debt


Total
Debt


Comparable
TTM
Hotel
EBITDA (9)


Comparable
TTM
EBITDA
Debt Yield

GACC Sofitel - 1 hotel


March 2018


LIBOR + 2.30%


$



$

80,000


(1)

$

80,000



$

5,778



7.2

%

Credit Agricole Pier House - 1 hotel


March 2018


LIBOR + 2.25%




70,000


(2)

70,000



10,982



15.7

%

TIF Philly CY - 1 hotel


June 2018


12.85%


8,098





8,098



N/A



N/A


Apollo Ritz-Carlton St. Thomas - 1 hotel


December 2018


LIBOR + 4.95%




42,000


(3)

42,000



10,595



25.2

%

Morgan Stanley Pool - 4 hotels


February 2019


LIBOR + 2.58%




277,628


(4)

277,628



48,169



17.4

%

JPMorgan Park Hyatt Beaver Creek - 1 hotel


April 2019


LIBOR + 2.75%




67,500


(5)

67,500



9,387



13.9

%

Aareal - 2 hotels


November 2019


LIBOR + 2.65%




190,010


(6)

190,010



32,412



17.1

%

Secured revolving credit facility - various


November 2019


Base Rate(8) + 1.25% to 2.50% or
LIBOR + 2.25% to 3.50%





(7)



N/A



N/A


BAML Hotel Yountville - 1 hotel


May 2022


LIBOR + 2.55%




51,000



51,000



5,157



10.1

%

BAML Bardessono - 1 hotel


August 2022


LIBOR + 2.55%




40,000



40,000



4,441



11.1

%

Total






$

8,098



$

818,138



$

826,236



$

126,921



15.4

%

Percentage






1.0

%


99.0

%


100.0

%





Weighted average interest rate






12.85

%


4.24

%


4.32

%






All indebtedness is non-recourse with the exception of the secured revolving credit facility.

(1)

This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the second was exercised in March 2017.

(2)

This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in March 2017.

(3)

This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in December 2017.

(4)

This mortgage loan has five one-year extension options subject to satisfaction of certain conditions.

(5)

This mortgage loan has three one-year extension options subject to satisfaction of certain conditions.

(6)

This mortgage loan has two one-year extension options subject to satisfaction of certain conditions.

(7)

This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2019.

(8)

Base Rate, as defined in the secured revolving credit facility agreement, is the greater of (i) the prime rate set by Bank of America, or (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%.

(9)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.


 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED

DECEMBER 31, 2017

(dollars in thousands)

(unaudited)




2018


2019


2020


2021


2022


Thereafter


Total

Secured revolving credit facility - various


$            —


$            —


$            —


$            —


$            —


$            —


$            —

TIF Philly CY - 1 hotel


8,098







8,098

GACC Sofitel - 1 hotel



80,000






80,000

Credit Agricole Pier House - 1 hotel




70,000





70,000

Apollo Ritz-Carlton St. Thomas - 1 hotel




42,000





42,000

Aareal - 2 hotels





177,486




177,486

JPMorgan Park Hyatt Beaver Creek - 1 hotel






67,500



67,500

BAML Hotel Yountville - 1 hotel






51,000



51,000

BAML Bardessono - 1 hotel






40,000



40,000

Morgan Stanley Pool - 4 hotels







277,628


277,628

Principal due in future periods


$       8,098


$     80,000


$   112,000


$   177,486


$   158,500


$   277,628


$   813,712

Scheduled amortization payments remaining


3,176


3,120


3,312


2,916




12,524

Total indebtedness


$     11,274


$     83,120


$   115,312


$   180,402


$   158,500


$   277,628


$   826,236

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS

(unaudited)


ALL HOTELS:




Three Months Ended December 31,



Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


Actual


Comparable



2017


2017


2017


2016


2016


2016


% Variance


% Variance


Rooms revenue (in thousands)

$

61,803



$

(1,858)



$

59,945



$

65,066



$

2,972



$

68,038



(5.01)

%


(11.89)

%


RevPAR

$

186.65



$

(148.30)



$

188.15



$

191.04



$

(241.07)



$

207.27



(2.30)

%


(9.22)

%


Occupancy

77.19

%


(77.32)

%


77.18

%


80.70

%


84.50

%


80.56

%


(4.35)

%


(4.20)

%


ADR

$

241.81



$

(191.81)



$

243.78



$

236.73



$

(285.30)



$

257.29



2.15

%


(5.25)

%


ALL HOTELS:




Year Ended December 31,



Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


Actual


Comparable



2017


2017


2017


2016


2016


2016


% Variance


% Variance


Rooms revenue (in thousands)

$

286,006



$

(3,256)



$

282,750



$

287,844



$

5,607



$

293,451



(0.64)

%


(3.65)

%


RevPAR

$

206.42



$

(34.16)



$

219.15



$

205.54



$

(59.31)



$

224.71



0.43

%


(2.47)

%


Occupancy

80.97

%


(70.49)

%


81.75

%


82.94

%


78.28

%


83.27

%


(2.38)

%


(1.83)

%


ADR

$

254.92



$

(48.46)



$

268.07



$

247.83



$

(75.76)



$

269.85



2.86

%


(0.66)

%


NOTES:

(1)   The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of
        each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties
        sold during the period.

(2)   All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.



ALL HOTELS


   NOT UNDER RENOVATION:

Three Months Ended December 31,



Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


Actual


Comparable



2017


2017


2017


2016


2016


2016


% Variance


% Variance


Rooms revenue (in thousands)

$

33,187



$

(1,858)



$

31,329



$

29,164



$

2,972



$

32,136



13.79

%


(2.51)

%


RevPAR

$

179.00



$

(148.30)



$

181.23



$

157.72



$

(241.07)



$

186.20



13.49

%


(2.67)

%


Occupancy

75.81

%


(77.32)

%


75.70

%


77.63

%


84.50

%


77.14

%


(2.34)

%


(1.87)

%


ADR

$

236.13



$

(191.81)



$

239.40



$

203.17



$

(285.30)



$

241.39



16.22

%


(0.82)

%


ALL HOTELS


   NOT UNDER RENOVATION:

Year Ended December 31,



Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


Actual


Comparable



2017


2017


2017


2016


2016


2016


% Variance


% Variance


Rooms revenue (in thousands)

$

146,358



$

(3,256)



$

143,102



$

136,871



$

5,607



$

142,478



6.93

%


0.44

%


RevPAR

$

187.51



$

(34.16)



$

208.84



$

175.22



$

(59.31)



$

207.51



7.01

%


0.64

%


Occupancy

79.54

%


(70.49)

%


80.80

%


80.37

%


78.28

%


80.66

%


(1.03)

%


0.17

%


ADR

$

235.74



$

(48.46)



$

258.47



$

218.01



$

(75.76)



$

257.27



8.13

%


0.47

%


NOTES:

(1)   The above comparable information assumes the seven hotel properties owned and included in the Company's operations at December 31, 2017, and not under renovation during
        the three months ended December 31, 2017, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel
        properties acquired during the period offset by results from hotel properties sold during the period.

(2)   All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)   Excluded Hotels Under Renovation:

       Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

HOTEL EBITDA

(dollars in thousands)

(unaudited)


ALL HOTELS:

Three Months Ended


Year Ended



December 31,


December 31,



2017


2016


% Variance


2017


2016


% Variance


Total hotel revenue

$     92,514


$     93,952


(1.53)%


$    413,905


$    405,729


2.02 %


Non-comparable adjustments

(2,942)


4,948




(4,164)


16,563




Comparable total hotel revenue

$     89,572


$     98,900


(9.43)%


$    409,741


$    422,292


(2.97)%















Hotel EBITDA

$     28,168


$     26,326


7.00 %


$    128,300


$    124,239


3.27 %


Non-comparable adjustments

(1,076)


635




(1,379)


2,475




Comparable hotel EBITDA

$     27,092


$     26,961


0.49 %


$    126,921


$    126,714


0.16 %


Hotel EBITDA margin

30.45 %


28.02 %


2.43 %


31.00 %


30.62 %


0.38 %


Comparable hotel EBITDA margin

30.25 %


27.26 %


2.99 %


30.98 %


30.01 %


0.97 %















Hotel EBITDA adjustments attributable to consolidated noncontrolling interests

$        1,620


$        1,722


(5.91)%


$        8,103


$        7,586


6.82 %


Hotel EBITDA attributable to the Company and OP unitholders

$      26,548


$      24,604


7.90 %


$    120,197


$    116,653


3.04 %


Comparable hotel EBITDA attributable to the Company and OP unitholders

$      25,472


$      25,239


0.92 %


$    118,818


$    119,128


(0.26)%


NOTES:

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.


Adjustments have been made to the pre-acquisition results as indicated below:


(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

ALL HOTELS
     NOT UNDER RENOVATION:

Three Months Ended


Year Ended

December 31,


December 31,



2017


2016


% Variance


2017


2016


% Variance


Total hotel revenue

$     50,206


$     44,215


13.55 %


$   217,169


$    195,160


11.28 %


Non-comparable adjustments

(2,942)


4,948




(4,164)


16,563




Comparable total hotel revenue

$     47,264


$     49,163


(3.86)%


$   213,005


$    211,723


0.61 %















Hotel EBITDA

$     14,568


$     14,398


1.18 %


$     70,536


$      66,585


5.93 %


Non-comparable adjustments

(1,076)


635




(1,379)


2,475




Comparable hotel EBITDA

$     13,492


$     15,033


(10.25)%


$     69,157


$      69,060


0.14 %


Hotel EBITDA margin

29.02 %


32.56 %


(3.54)%


32.48 %


34.12 %


(1.64)%


Comparable hotel EBITDA margin

28.55 %


30.58 %


(2.03)%


32.47 %


32.62 %


(0.15)%















Hotel EBITDA adjustments attributable to consolidated noncontrolling interests

$           675


$          698


(3.24)%


$       3,685


$        3,231


14.07 %


Hotel EBITDA attributable to the Company and OP unitholders

$      13,893


$     13,700


1.41 %


$     66,851


$      63,354


5.52 %


Comparable hotel EBITDA attributable to the Company and OP unitholders

$      12,817


$     14,335


(10.59)%


$     65,472


$      65,829


(0.54)%


NOTES:

(1)

The above comparable information assumes the seven hotel properties owned and included in the Company's operations at December 31, 2017, and not under renovation during the three months ended December 31, 2017, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.


Adjustments have been made to the pre-acquisition results as indicated below:


(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4)

Excluded Hotels Under Renovation:


Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)




Three Months Ended December 31,



Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


Actual


Comparable



2017


2017


2017


2016


2016


2016


% Variance


% Variance

CAPITAL HILTON WASHINGTON D.C.

















Selected Financial Information:

















Rooms revenue

$

9,417



$



$

9,417



$

10,055



$



$

10,055



(6.35)

%


(6.35)

%


Total hotel revenue

$

13,535



$



$

13,535



$

14,389



$



$

14,389



(5.94)

%


(5.94)

%


Hotel EBITDA

$

3,780



$



$

3,780



$

4,096



$



$

4,096



(7.71)

%


(7.71)

%


Hotel EBITDA margin

27.93

%




27.93

%


28.47

%




28.47

%


(0.54)

%


(0.54)

%


Selected Operating Information:

















RevPAR

$

186.11



$



$

186.11



$

198.71



$



$

198.71



(6.34)

%


(6.34)

%


Occupancy

82.00

%


%


82.00

%


87.00

%


%


87.00

%


(5.75)

%


(5.75)

%


ADR

$

226.96



$



$

226.96



$

228.39



$



$

228.39



(0.63)

%


(0.63)

%


















LA JOLLA HILTON TORREY PINES

















Selected Financial Information:

















Rooms revenue

$

5,155



$



$

5,155



$

5,184



$



$

5,184



(0.56)

%


(0.56)

%


Total hotel revenue

$

9,500



$



$

9,500



$

10,062



$



$

10,062



(5.59)

%


(5.59)

%


Hotel EBITDA

$

2,700



$



$

2,700



$

2,790



$



$

2,790



(3.23)

%


(3.23)

%


Hotel EBITDA margin

28.42

%




28.42

%


27.73

%




27.73

%


0.69

%


0.69

%


Selected Operating Information:

















RevPAR

$

142.22



$



$

142.22



$

143.01



$



$

143.01



(0.55)

%


(0.55)

%


Occupancy

79.05

%


%


79.05

%


82.73

%


%


82.73

%


(4.45)

%


(4.45)

%


ADR

$

179.91



$



$

179.91



$

172.86



$



$

172.86



4.08

%


4.08

%


















CHICAGO SOFITEL MAGNIFICENT MILE

















Selected Financial Information:

















Rooms revenue

$

6,400



$



$

6,400



$

7,032



$



$

7,032



(8.99)

%


(8.99)

%


Total hotel revenue

$

8,751



$



$

8,751



$

9,577



$



$

9,577



(8.62)

%


(8.62)

%


Hotel EBITDA

$

1,575



$



$

1,575



$

2,187



$



$

2,187



(27.98)

%


(27.98)

%


Hotel EBITDA margin

18.00

%




18.00

%


22.84

%




22.84

%


(4.84)

%


(4.84)

%


Selected Operating Information:

















RevPAR

$

167.65



$



$

167.65



$

184.17



$



$

184.17



(8.97)

%


(8.97)

%


Occupancy

80.23

%


%


80.23

%


84.04

%


%


84.04

%


(4.53)

%


(4.53)

%


ADR

$

208.96



$



$

208.96



$

219.15



$



$

219.15



(4.65)

%


(4.65)

%


















BARDESSONO HOTEL AND SPA

















Selected Financial Information:

















Rooms revenue

$

2,557



$



$

2,557



$

3,629



$



$

3,629



(29.54)

%


(29.54)

%


Total hotel revenue

$

3,442



$



$

3,442



$

4,868



$



$

4,868



(29.29)

%


(29.29)

%


Hotel EBITDA

$

494



$



$

494



$

1,431



$



$

1,431



(65.48)

%


(65.48)

%


Hotel EBITDA margin

14.35

%




14.35

%


29.40

%




29.40

%


(15.05)

%


(15.05)

%


Selected Operating Information:

















RevPAR

$

448.27



$



$

448.27



$

636.22



$



$

636.22



(29.54)

%


(29.54)

%


Occupancy

62.83

%


%


62.83

%


83.59

%


%


83.59

%


(24.84)

%


(24.84)

%


ADR

$

713.43



$



$

713.43



$

761.11



$



$

761.11



(6.26)

%


(6.26)

%


















KEY WEST PIER HOUSE RESORT

















Selected Financial Information:

















Rooms revenue

$

3,949



$



$

3,949



$

4,527



$



$

4,527



(12.77)

%


(12.77)

%


Total hotel revenue

$

6,365



$



$

6,365



$

5,679



$



$

5,679



12.08

%


12.08

%


Hotel EBITDA

$

3,457



$



$

3,457



$

2,469



$



$

2,469



40.02

%


40.02

%


Hotel EBITDA margin

54.31

%




54.31

%


43.48

%




43.48

%


10.83

%


10.83

%


Selected Operating Information:

















RevPAR

$

302.25



$



$

302.25



$

346.56



$



$

346.56



(12.79)

%


(12.79)

%


Occupancy

70.06

%


%


70.06

%


83.40

%


%


83.40

%


(16.00)

%


(16.00)

%


ADR

$

431.44



$



$

431.44



$

415.56



$



$

415.56



3.82

%


3.82

%


















HOTEL YOUNTVILLE

















Selected Financial Information:

















Rooms revenue

$

2,085



$



$

2,085



$



$

3,382



$

3,382



%


(38.35)

%


Total hotel revenue

$

2,546



$



$

2,546



$



$

4,011



$

4,011



%


(36.52)

%


Hotel EBITDA

$

491



$



$

491



$



$

1,567



$

1,567



%


(68.67)

%


Hotel EBITDA margin

19.29

%




19.29

%


%




39.07

%


19.29

%


(19.78)

%


Selected Operating Information:

















RevPAR

$

283.36



$



$

283.36



$



$

459.41



$

459.41



%


(38.32)

%


Occupancy

56.47

%


%


56.47

%


%


82.68

%


82.68

%


%


(31.70)

%


ADR

$

501.82



$



$

501.82



$



$

555.67



$

555.67



%


(9.69)

%


















PARK HYATT BEAVER CREEK

















Selected Financial Information:

















Rooms revenue

$

3,833



$



$

3,833



$



$

4,232



$

4,232



%


(9.43)

%


Total hotel revenue

$

8,309



$



$

8,309



$



$

8,785



$

8,785



%


(5.42)

%


Hotel EBITDA

$

1,181



$



$

1,181



$



$

1,766



$

1,766



%


(33.13)

%


Hotel EBITDA margin

14.21

%




14.21

%


%




20.10

%


14.21

%


(5.89)

%


Selected Operating Information:

















RevPAR

$

219.25



$



$

219.25



$



$

242.13



$

242.13



%


(9.45)

%


Occupancy

46.70

%


%


46.70

%


%


50.14

%


50.14

%


%


(6.86)

%


ADR

$

469.50



$



$

469.50



$



$

482.89



$

482.89



%


(2.77)

%


















PHILADELPHIA COURTYARD DOWNTOWN

















Selected Financial Information:

















Rooms revenue

$

7,255



$



$

7,255



$

6,250



$



$

6,250



16.08

%


16.08

%


Total hotel revenue

$

8,720



$



$

8,720



$

7,580



$



$

7,580



15.04

%


15.04

%


Hotel EBITDA

$

3,518



$



$

3,518



$

2,794



$



$

2,794



25.91

%


25.91

%


Hotel EBITDA margin

40.34

%




40.34

%


36.86

%




36.86

%


3.48

%


3.48

%


Selected Operating Information:

















RevPAR

$

158.04



$



$

158.04



$

136.15



$



$

136.15



16.08

%


16.08

%


Occupancy

81.69

%


%


81.69

%


79.86

%


%


79.86

%


2.29

%


2.29

%


ADR

$

193.47



$



$

193.47



$

170.49



$



$

170.49



13.48

%


13.48

%


















PLANO MARRIOTT LEGACY TOWN CENTER

















Selected Financial Information:

















Rooms revenue

$

1,858



$

(1,858)



$



$

4,642



$

(4,642)



$



(59.97)

%


%


Total hotel revenue

$

2,942



$

(2,942)



$



$

7,848



$

(7,848)



$



(62.51)

%


%


Hotel EBITDA

$

1,076



$

(1,076)



$



$

2,698



$

(2,698)



$



(60.12)

%


%


Hotel EBITDA margin

36.57

%




%


34.38

%




%


2.19

%


%


Selected Operating Information:

















RevPAR

$

148.30



$

(148.30)



$



$

124.89



$

(124.89)



$



18.74

%


%


Occupancy

77.32

%


(77.32)

%


%


67.98

%


(67.98)

%


%


13.74

%


%


ADR

$

191.81



$

(191.81)



$



$

183.71



$

(183.71)



$



4.41

%


%


















SAN FRANCISCO COURTYARD DOWNTOWN

















Selected Financial Information:

















Rooms revenue

$

7,392



$



$

7,392



$

8,147



$



$

8,147



(9.27)

%


(9.27)

%


Total hotel revenue

$

8,529



$



$

8,529



$

9,295



$



$

9,295



(8.24)

%


(8.24)

%


Hotel EBITDA

$

2,436



$



$

2,436



$

1,987



$



$

1,987



22.60

%


22.60

%


Hotel EBITDA margin

28.56

%




28.56

%


21.38

%




21.38

%


7.18

%


7.18

%


Selected Operating Information:

















RevPAR

$

196.93



$



$

196.93



$

218.63



$



$

218.63



(9.93)

%


(9.93)

%


Occupancy

77.26

%


%


77.26

%


88.07

%


%


88.07

%


(12.27)

%


(12.27)

%


ADR

$

254.89



$



$

254.89



$

248.26



$



$

248.26



2.67

%


2.67

%

















SEATTLE MARRIOTT WATERFRONT

















Selected Financial Information:

















Rooms revenue

$

6,385



$



$

6,385



$

5,693



$



$

5,693



12.16

%


12.16

%


Total hotel revenue

$

8,665



$



$

8,665



$

8,212



$



$

8,212



5.52

%


5.52

%


Hotel EBITDA

$

3,330



$



$

3,330



$

3,048



$



$

3,048



9.25

%


9.25

%


Hotel EBITDA margin

38.43

%




38.43

%


37.12

%




37.12

%


1.31

%


1.31

%


Selected Operating Information:

















RevPAR

$

192.21



$



$

192.21



$

172.85



$



$

172.85



11.20

%


11.20

%


Occupancy

82.98

%


%


82.98

%


78.97

%


%


78.97

%


5.08

%


5.08

%


ADR

$

231.63



$



$

231.63



$

218.89



$



$

218.89



5.82

%


5.82

%


















ST. THOMAS RITZ-CARLTON

















Selected Financial Information:

















Rooms revenue

$

1,458



$



$

1,458



$

6,141



$



$

6,141



(76.26)

%


(76.26)

%


Total hotel revenue

$

5,128



$



$

5,128



$

10,797



$



$

10,797



(52.51)

%


(52.51)

%


Hotel EBITDA

$

2,352



$



$

2,352



$

1,189



$



$

1,189



97.81

%


97.81

%


Hotel EBITDA margin

45.87

%




45.87

%


11.01

%




11.01

%


34.86

%


34.86

%


Selected Operating Information:

















RevPAR

$

229.69



$



$

229.69



$

370.82



$



$

370.82



(38.06)

%


(38.06)

%


Occupancy

75.06

%


%


75.06

%


69.38

%


%


69.38

%


8.19

%


8.19

%


ADR

$

306.00



$



$

306.00



$

534.49



$



$

534.49



(42.75)

%


(42.75)

%


















TAMPA RENAISSANCE

















Selected Financial Information:

















Rooms revenue

$

4,059



$



$

4,059



$

3,766



$



$

3,766



7.78

%


7.78

%


Total hotel revenue

$

6,082



$



$

6,082



$

5,645



$



$

5,645



7.74

%


7.74

%


Hotel EBITDA

$

1,778



$



$

1,778



$

1,637



$



$

1,637



8.61

%


8.61

%


Hotel EBITDA margin

29.23

%




29.23

%


29.00

%




29.00

%


0.23

%


0.23

%


Selected Operating Information:

















RevPAR

$

150.59



$



$

150.59



$

139.77



$



$

139.77



7.74

%


7.74

%


Occupancy

78.80

%


%


78.80

%


77.38

%


%


77.38

%


1.84

%


1.84

%


ADR

$

191.10



$



$

191.10



$

180.63



$



$

180.63



5.80

%


5.80

%


















PRIME PROPERTIES TOTAL

















Selected Financial Information:

















Rooms revenue

$

61,803



$

(1,858)



$

59,945



$

65,066



$

2,972



$

68,038



(5.01)

%


(11.89)

%


Total hotel revenue

$

92,514



$

(2,942)



$

89,572



$

93,952



$

4,948



$

98,900



(1.53)

%


(9.43)

%


Hotel EBITDA

$

28,168



$

(1,076)



$

27,092



$

26,326



$

635



$

26,961



7.00

%


0.49

%


Hotel EBITDA margin

30.45

%




30.25

%


28.02

%




27.26

%


2.43

%


2.99

%


Selected Operating Information:

















RevPAR

$

186.65



$

(148.30)



$

188.15



$

191.04



$

(241.07)



$

207.27



(2.30)

%


(9.22)

%


Occupancy

77.19

%


(77.32)

%


77.18

%


80.70

%


84.50

%


80.56

%


(4.35)

%


(4.20)

%


ADR

$

241.81



$

(191.81)



$

243.78



$

236.73



$

(285.30)



$

257.29



2.15

%


(5.25)

%



NOTES:

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the
periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.


Adjustments have been made to the pre-acquisition results as indicated below:


(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4)

Table excludes Seattle Courtyard Downtown which was sold on July 1, 2016.

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)




Year Ended December 31,



Actual


Non-
comparable
Adjustments


Comparable


Actual


Non-
comparable
Adjustments


Comparable


Actual


Comparable



2017


2017


2017


2016


2016


2016


% Variance


% Variance

CAPITAL HILTON WASHINGTON D.C.

















Selected Financial Information:

















Rooms revenue

$

42,325



$



$

42,325



$

41,137



$



$

41,137



2.89

%


2.89

%


Total hotel revenue

$

59,316



$



$

59,316



$

58,612



$



$

58,612



1.20

%


1.20

%


Hotel EBITDA

$

17,672



$



$

17,672



$

17,422



$



$

17,422



1.43

%


1.43

%


Hotel EBITDA margin

29.79

%




29.79

%


29.72

%




29.72

%


0.07

%


0.07

%


Selected Operating Information:

















RevPAR

$

210.83



$



$

210.83



$

204.36



$



$

204.36



3.17

%


3.17

%


Occupancy

88.63

%


%


88.63

%


88.59

%


%


88.59

%


0.05

%


0.05

%


ADR

$

237.87



$



$

237.87



$

230.69



$



$

230.69



3.11

%


3.11

%


















LA JOLLA HILTON TORREY PINES

















Selected Financial Information:

















Rooms revenue

$

24,683



$



$

24,683



$

23,564



$



$

23,564



4.75

%


4.75

%


Total hotel revenue

$

43,949



$



$

43,949



$

42,058



$



$

42,058



4.50

%


4.50

%


Hotel EBITDA

$

14,740



$



$

14,740



$

12,922



$



$

12,922



14.07

%


14.07

%


Hotel EBITDA margin

33.54

%




33.54

%


30.72

%




30.72

%


2.82

%


2.82

%


Selected Operating Information:

















RevPAR

$

171.64



$



$

171.64



$

163.41



$



$

163.41



5.04

%


5.04

%


Occupancy

83.65

%


%


83.65

%


83.83

%


%


83.83

%


(0.21)

%


(0.21)

%


ADR

$

205.19



$



$

205.19



$

194.93



$



$

194.93



5.26

%


5.26

%


















CHICAGO SOFITEL MAGNIFICENT MILE

















Selected Financial Information:

















Rooms revenue

$

24,841



$



$

24,841



$

27,026



$



$

27,026



(8.08)

%


(8.08)

%


Total hotel revenue

$

33,302



$



$

33,302



$

36,879



$



$

36,879



(9.70)

%


(9.70)

%


Hotel EBITDA

$

5,778



$



$

5,778



$

8,400



$



$

8,400



(31.21)

%


(31.21)

%


Hotel EBITDA margin

17.35

%




17.35

%


22.78

%




22.78

%


(5.43)

%


(5.43)

%


Selected Operating Information:

















RevPAR

$

164.00



$



$

164.00



$

177.93



$



$

177.93



(7.83)

%


(7.83)

%


Occupancy

80.92

%


%


80.92

%


82.42

%


%


82.42

%


(1.82)

%


(1.82)

%


ADR

$

202.66



$



$

202.66



$

215.89



$



$

215.89



(6.13)

%


(6.13)

%


















BARDESSONO HOTEL AND SPA

















Selected Financial Information:

















Rooms revenue

$

13,414



$



$

13,414



$

14,047



$



$

14,047



(4.51)

%


(4.51)

%


Total hotel revenue

$

17,701



$



$

17,701



$

18,934



$



$

18,934



(6.51)

%


(6.51)

%


Hotel EBITDA

$

4,441



$



$

4,441



$

5,029



$



$

5,029



(11.69)

%


(11.69)

%


Hotel EBITDA margin

25.09

%




25.09

%


26.56

%




26.56

%


(1.47)

%


(1.47)

%


Selected Operating Information:

















RevPAR

$

592.77



$



$

592.77



$

619.02



$



$

619.02



(4.24)

%


(4.24)

%


Occupancy

76.96

%


%


76.96

%


84.37

%


%


84.37

%


(8.78)

%


(8.78)

%


ADR

$

770.19



$



$

770.19



$

733.66



$



$

733.66



4.98

%


4.98

%


















KEY WEST PIER HOUSE RESORT

















Selected Financial Information:

















Rooms revenue

$

17,202



$



$

17,202



$

18,766



$



$

18,766



(8.33)

%


(8.33)

%


Total hotel revenue

$

23,232



$



$

23,232



$

23,435



$



$

23,435



(0.87)

%


(0.87)

%


Hotel EBITDA

$

10,982



$



$

10,982



$

10,229



$



$

10,229



7.36

%


7.36

%


Hotel EBITDA margin

47.27

%




47.27

%


43.65

%




43.65

%


3.62

%


3.62

%


Selected Operating Information:

















RevPAR

$

331.87



$



$

331.87



$

361.08



$



$

361.08



(8.09)

%


(8.09)

%


Occupancy

77.07

%


%


77.07

%


87.90

%


%


87.90

%


(12.32)

%


(12.32)

%


ADR

$

430.59



$



$

430.59



$

410.79



$



$

410.79



4.82

%


4.82

%


















HOTEL YOUNTVILLE

















Selected Financial Information:

















Rooms revenue

$

8,140



$

3,473



$

11,613



$



$

13,698



$

13,698



%


(15.22)

%


Total hotel revenue

$

9,599



$

4,276



$

13,875



$



$

16,410



$

16,410



%


(15.45)

%


Hotel EBITDA

$

3,924



$

1,233



$

5,157



$



$

6,960



$

6,960



%


(25.91)

%


Hotel EBITDA margin

40.88

%




37.17

%


%




42.41

%


40.88

%


(5.24)

%


Selected Operating Information:

















RevPAR

$

433.00



$

333.88



$

397.69



$



$

467.82



$

467.82



%


(14.99)

%


Occupancy

71.78

%


75.52

%


73.11

%


%


86.42

%


86.42

%


%


(15.40)

%


ADR

$

603.21



$

442.11



$

543.95



$



$

541.31



$

541.31



%


0.49

%


















PARK HYATT BEAVER CREEK

















Selected Financial Information:

















Rooms revenue

$

8,753



$

10,034



$

18,787



$



$

18,777



$

18,777



%


0.05

%


Total hotel revenue

$

21,969



$

18,810



$

40,779



$



$

40,149



$

40,149



%


1.57

%


Hotel EBITDA

$

2,419



$

6,968



$

9,387



$



$

9,700



$

9,700



%


(3.23)

%


Hotel EBITDA margin

11.01

%




23.02

%


%




24.16

%


11.01

%


(1.14)

%


Selected Operating Information:

















RevPAR

$

167.51



$

586.82



$

270.90



$



$

270.02



$

270.02



%


0.33

%


Occupancy

53.94

%


83.74

%


61.29

%


%


62.03

%


62.03

%


%


(1.19)

%


ADR

$

310.52



$

700.74



$

441.98



$



$

435.33



$

435.33



%


1.53

%


















PHILADELPHIA COURTYARD DOWNTOWN

















Selected Financial Information:

















Rooms revenue

$

26,337



$



$

26,337



$

27,260



$



$

27,260



(3.39)

%


(3.39)

%


Total hotel revenue

$

31,862



$



$

31,862



$

32,643



$



$

32,643



(2.39)

%


(2.39)

%


Hotel EBITDA

$

12,221



$



$

12,221



$

12,557



$



$

12,557



(2.68)

%


(2.68)

%


Hotel EBITDA margin

38.36

%




38.36

%


38.47

%




38.47

%


(0.11)

%


(0.11)

%


Selected Operating Information:

















RevPAR

$

144.60



$



$

144.60



$

149.26



$



$

149.26



(3.12)

%


(3.12)

%


Occupancy

81.83

%


%


81.83

%


81.80

%


%


81.80

%


0.04

%


0.04

%


ADR

$

176.71



$



$

176.71



$

182.46



$



$

182.46



(3.15)

%


(3.15)

%


















PLANO MARRIOTT LEGACY TOWN CENTER

















Selected Financial Information:

















Rooms revenue

$

16,763



$

(16,763)



$



$

19,899



$

(19,899)



$



(15.76)

%


%


Total hotel revenue

$

27,250



$

(27,250)



$



$

32,001



$

(32,001)



$



(14.85)

%


%


Hotel EBITDA

$

9,570



$

(9,570)



$



$

11,021



$

(11,021)



$



(13.17)

%


%


Hotel EBITDA margin

35.12

%




%


34.44

%




%


0.68

%


%


Selected Operating Information:

















RevPAR

$

136.49



$

(136.49)



$



$

134.58



$

(134.58)



$



1.42

%


%


Occupancy

72.76

%


(72.76)

%


%


70.57

%


(70.57)

%


%


3.10

%


%


ADR

$

187.59



$

(187.59)



$



$

190.70



$

(190.70)



$



(1.63)

%


%


















SAN FRANCISCO COURTYARD DOWNTOWN

















Selected Financial Information:

















Rooms revenue

$

32,109



$



$

32,109



$

36,249



$



$

36,249



(11.42)

%


(11.42)

%


Total hotel revenue

$

36,929



$



$

36,929



$

41,365



$



$

41,365



(10.72)

%


(10.72)

%


Hotel EBITDA

$

12,737



$



$

12,737



$

12,790



$



$

12,790



(0.41)

%


(0.41)

%


Hotel EBITDA margin

34.49

%




34.49

%


30.92

%




30.92

%


3.57

%


3.57

%


Selected Operating Information:

















RevPAR

$

216.12



$



$

216.12



$

244.54



$



$

244.54



(11.62)

%


(11.62)

%


Occupancy

79.93

%


%


79.93

%


89.55

%


%


89.55

%


(10.74)

%


(10.74)

%


ADR

$

270.38



$



$

270.38



$

273.07



$



$

273.07



(0.99)

%


(0.99)

%

















SEATTLE MARRIOTT WATERFRONT

















Selected Financial Information:

















Rooms revenue

$

31,409



$



$

31,409



$

28,748



$



$

28,748



9.26

%


9.26

%


Total hotel revenue

$

40,714



$



$

40,714



$

37,648



$



$

37,648



8.14

%


8.14

%


Hotel EBITDA

$

16,209



$



$

16,209



$

15,115



$



$

15,115



7.24

%


7.24

%


Hotel EBITDA margin

39.81

%




39.81

%


40.15

%




40.15

%


(0.34)

%


(0.34)

%


Selected Operating Information:

















RevPAR

$

239.50



$



$

239.50



$

219.40



$



$

219.40



9.16

%


9.16

%


Occupancy

87.99

%


%


87.99

%


83.07

%


%


83.07

%


5.92

%


5.92

%


ADR

$

272.19



$



$

272.19



$

264.10



$



$

264.10



3.06

%


3.06

%


















ST. THOMAS RITZ-CARLTON

















Selected Financial Information:

















Rooms revenue

$

23,171



$



$

23,171



$

27,795



$



$

27,795



(16.64)

%


(16.64)

%


Total hotel revenue

$

43,957



$



$

43,957



$

50,278



$



$

50,278



(12.57)

%


(12.57)

%


Hotel EBITDA

$

10,595



$



$

10,595



$

8,813



$



$

8,813



20.22

%


20.22

%


Hotel EBITDA margin

24.10

%




24.10

%


17.53

%




17.53

%


6.57

%


6.57

%


Selected Operating Information:

















RevPAR

$

442.26



$



$

442.26



$

421.90



$



$

421.90



4.83

%


4.83

%


Occupancy

79.94

%


%


79.94

%


78.46

%


%


78.46

%


1.89

%


1.89

%


ADR

$

553.27



$



$

553.27



$

537.75



$



$

537.75



2.89

%


2.89

%


















TAMPA RENAISSANCE

















Selected Financial Information:

















Rooms revenue

$

16,859



$



$

16,859



$

16,384



$



$

16,384



2.90

%


2.90

%


Total hotel revenue

$

24,125



$



$

24,125



$

23,881



$



$

23,881



1.02

%


1.02

%


Hotel EBITDA

$

7,002



$



$

7,002



$

6,777



$



$

6,777



3.32

%


3.32

%


Hotel EBITDA margin

29.02

%




29.02

%


28.38

%




28.38

%


0.64

%


0.64

%


Selected Operating Information:

















RevPAR

$

157.65



$



$

157.65



$

152.79



$



$

152.79



3.18

%


3.18

%


Occupancy

81.96

%


%


81.96

%


81.22

%


%


81.22

%


0.91

%


0.91

%


ADR

$

192.34



$



$

192.34



$

188.12



$



$

188.12



2.24

%


2.24

%


















PRIME PROPERTIES TOTAL

















Selected Financial Information:

















Rooms revenue

$

286,006



$

(3,256)



$

282,750



$

287,844



$

5,607



$

293,451



(0.64)

%


(3.65)

%


Total hotel revenue

$

413,905



$

(4,164)



$

409,741



$

405,729



$

16,563



$

422,292



2.02

%


(2.97)

%


Hotel EBITDA

$

128,300



$

(1,379)



$

126,921



$

124,239



$

2,475



$

126,714



3.27

%


0.16

%


Hotel EBITDA margin

31.00

%




30.98

%


30.62

%




30.01

%


0.38

%


0.97

%


Selected Operating Information:

















RevPAR

$

206.42



$

(34.16)



$

219.15



$

205.54



$

(59.31)



$

224.71



0.43

%


(2.47)

%


Occupancy

80.97

%


(70.49)

%


81.75

%


82.94

%


78.28

%


83.27

%


(2.38)

%


(1.83)

%


ADR

$

254.92



$

(48.46)



$

268.07



$

247.83



$

(75.76)



$

269.85



2.86

%


(0.66)

%


NOTES:

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the
periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.


Adjustments have been made to the pre-acquisition results as indicated below:


(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4)

Table excludes Seattle Courtyard Downtown which was sold on July 1, 2016.

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)



Actual


Non-comparable Adjustments


Comparable


Actual


Non-comparable Adjustments


Comparable


Actual


Non-comparable Adjustments


Comparable


Actual


Non-comparable Adjustments


Comparable


2017


2017


2017


2017


2017


2017


2017


2017


2017


2017


2017


2017


4th Quarter


4th Quarter


4th Quarter


3rd Quarter


3rd Quarter


3rd Quarter


2nd Quarter


2nd Quarter


2nd Quarter


1st Quarter


1st Quarter


1st Quarter

Total Hotel Revenue

$            92,514


$              (2,942)


$                 89,572


$       108,080


$           (6,871)


$                101,209


$        116,055


$                (7,307)


$               108,748


$           97,256


$              12,956


$                110,212

Hotel EBITDA

$            28,168


$              (1,076)


$                 27,092


$         33,030


$          (2,402)


$                 30,628


$          38,371


$                (2,474)


$                 35,897


$           28,731


$                4,573


$                 33,304

Hotel EBITDA Margin

30.45 %




30.25 %


30.56 %




30.26 %


33.06 %




33.01 %


29.54 %




30.22 %

























EBITDA % of Total TTM

22.0 %




21.4 %


25.7 %




24.1 %


29.9 %




28.3 %


22.4 %




26.2 %

























JV Interests in EBITDA

$               1,620


$                      —


$                   1,620


$            1,618


$                  —


$                      1,618


$            2,642


$                           —


$                    2,642


$             2,223


$                         —


$                    2,223


























Actual


Non-comparable Adjustments


Comparable




















2017


2017


2017




















TTM


TTM


TTM



















Total Hotel Revenue

$         413,905


$              (4,164)


$                409,741



















Hotel EBITDA

$         128,300


$              (1,379)


$                126,921



















Hotel EBITDA Margin

31.00 %




30.98 %











































EBITDA % of Total TTM

100.0 %




100.0 %











































JV Interests in EBITDA

$               8,103


$                      —


$                     8,103




















NOTES:

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties
acquired during the period offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.


Adjustments have been made to the pre-acquisition results as indicated below:


(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

TOTAL ENTERPRISE VALUE

DECEMBER 31, 2017

(in thousands, except share price)

(unaudited)



December 31, 2017

End of quarter common shares outstanding

32,120

Partnership units outstanding (common stock equivalents)

4,790

Combined common shares and partnership units outstanding

36,910

Common stock price at quarter end

$                            9.73

Market capitalization at quarter end

$                      359,134

Series B convertible preferred stock

$                      124,146

Debt on balance sheet date

$                      826,236

Joint venture partner's share of consolidated debt

$                      (47,503)

Net working capital (see below)

$                    (161,359)

Total enterprise value (TEV)

$                   1,100,654



Ashford Inc. Investment:


Common stock owned at end of quarter

195

Common stock price at quarter end

$                          93.00

Market value of Ashford Inc. investment

$                        18,124



Cash and cash equivalents

$                      131,827

Restricted cash

$                        46,142

Accounts receivable, net

$                        13,545

Insurance receivable

$                          8,825

Prepaid expenses

$                          3,525

Due from third-party hotel managers, net

$                          3,015

Market value of Ashford Inc. investment

$                        18,124

Total current assets

$                      225,003



Accounts payable, net & accrued expenses

$                        54,143

Dividends payable

$                          8,146

Due to affiliates, net

$                          1,355

Total current liabilities

$                        63,644



Net working capital*

$                      161,359



* Includes the Company's pro rata share of net working capital in joint ventures.


 

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

ANTICIPATED CAPITAL EXPENDITURES CALENDAR (a)




2017


2018


Rooms

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter


1st Quarter

2nd Quarter

3rd Quarter

4th Quarter



Actual

Actual

Actual

Actual


Estimated

Estimated

Estimated

Estimated

Capital Hilton Washington D.C.

550




x


x


x

x

Chicago Sofitel Magnificent Mile

415

x



x


x

x



Key West Pier House Resort

142



x

x






Philadelphia Courtyard Downtown

499

x








x

San Francisco Courtyard Downtown

405

x

x

x

x


x

x

x

x

St. Thomas Ritz-Carlton

180



x

x


x

x

x

x

Total


3

1

3

5


4

3

3

4



(a)

Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2017-2018 are included
in this table.

 

 

Exhibit 1


ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



2017


2017


2017


2017


December 31, 2017


4th Quarter


3rd Quarter


2nd Quarter


1st Quarter


TTM

Net income (loss)

$           35,206


$             10,705


$          21,607


$          14,951


$                         82,469

(Income) loss from consolidated entities attributable to noncontrolling interest

(1,035)


(872)


(1,825)


(1,444)


(5,176)

Net income (loss) attributable to the Company

34,171


9,833


19,782


13,507


77,293

Non-property adjustments

(23,720)


1,008




(22,712)

Interest income

(13)


(18)


(10)


(10)


(51)

Interest expense

2,986


2,744


2,204


1,280


9,214

Amortization of loan costs

310


307


271


130


1,018

Depreciation and amortization

12,705


14,134


13,468


11,851


52,158

Income tax expense (benefit)

(607)


(404)


366


133


(512)

Non-hotel EBITDA ownership expense

1,301


4,554


465


396


6,716

Income (loss) from consolidated entities attributable to noncontrolling interest

1,035


872


1,825


1,444


5,176

Hotel EBITDA including amounts attributable to noncontrolling interest

28,168


33,030


38,371


28,731


128,300










Non-comparable adjustments

(1,076)


(2,402)


(2,474)


4,573


(1,379)











Comparable hotel EBITDA

$           27,092


$             30,628


$          35,897


$          33,304


$                       126,921

 

 

Exhibit 1


ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



Three Months Ended December 31, 2017


Capital Hilton Washington D.C.


La Jolla Hilton Torrey Pines


Chicago Sofitel Magnificent Mile


Bardessono Hotel & Spa


Key West Pier House Resort


Hotel Yountville


Park Hyatt Beaver Creek


Philadelphia Courtyard Downtown


Plano Marriott Legacy Town Center


San Francisco Courtyard Downtown


Seattle Courtyard Downtown


Seattle Marriott Waterfront


St. Thomas Ritz-Carlton


Tampa Renaissance


Hotel Total


Corporate / Allocated


Ashford Hospitality Prime, Inc.

Net income (loss)

$     2,003


$       1,921


$       (502)


$        (745)


$      2,416


$       (744)


$       (484)


$       1,927


$    24,587


$          512


$            —


$     2,240


$      1,226


$         849


$   35,206


$    (6,762)


$   28,444

(Income) loss from consolidated entities attributable to noncontrolling interest

(534)


(501)














(1,035)


507


(528)

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
















(2,996)


(2,996)

Net income (loss) attributable to the Company

1,469


1,420


(502)


(745)


2,416


(744)


(484)


1,927


24,587


512



2,240


1,226


849


34,171


(9,251)


24,920

Non-property adjustments





505





(23,797)





(428)



(23,720)


23,720


Interest income

(2)


(6)











(3)


(1)


(1)


(13)


(202)


(215)

Interest expense



733


388



499


697







669



2,986


6,059


9,045

Amortization of loan cost




35



34


131







110



310


839


1,149

Depreciation and amortization

1,696


1,468


1,290


647


712


655


824


1,540


135


1,486



1,047


265


940


12,705


(16)


12,689

Income tax expense (benefit)


(593)







11






(25)



(607)


(249)


(856)

Non-hotel EBITDA ownership expense

83


(90)


54


169


(176)


47


13


40


151


438



46


536


(10)


1,301


(1,301)


Income (loss) from consolidated entities attributable to noncontrolling interest

534


501














1,035


(1,035)


Hotel EBITDA including amounts attributable to noncontrolling interest

3,780


2,700


1,575


494


3,457


491


1,181


3,518


1,076


2,436



3,330


2,352


1,778


28,168


18,564


46,732

Less: EBITDA adjustments attributable to noncontrolling interest

(411)


(174)














(585)


(505)


(1,090)

(Income) loss from consolidated entities attributable to noncontrolling interest

(534)


(501)














(1,035)


1,035


Net income (loss) attributable to redeemable noncontrolling interests in operating partnership
















2,996


2,996

Hotel EBITDA attributable to the Company and OP unitholders

$      2,835


$      2,025


$        1,575


$         494


$      3,457


$          491


$        1,181


$       3,518


$       1,076


$     2,436


$            —


$     3,330


$      2,352


$       1,778


$   26,548


$   22,090


$   48,638

Non-comparable adjustments









(1,076)







(1,076)





Comparable hotel EBITDA

$      3,780


$      2,700


$        1,575


$         494


$      3,457


$          491


$        1,181


$       3,518


$            —


$     2,436


$            —


$     3,330


$      2,352


$       1,778


$   27,092





ALL HOTELS NOT UNDER 
     RENOVATION:


































Hotel EBITDA including amounts attributable to noncontrolling interest

$            —


$      2,700


$            —


$         494


$            —


$          491


$        1,181


$       3,518


$       1,076


$            —


$            —


$     3,330


$            —


$       1,778


$    14,568





Non-comparable adjustments









(1,076)







(1,076)





Comparable hotel EBITDA

$            —


$      2,700


$            —


$         494


$            —


$          491


$        1,181


$       3,518


$            —


$            —


$            —


$     3,330


$            —


$       1,778


$    13,492






NOTES:

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period
offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.


Adjustments have been made to the pre-acquisition results as indicated below:


(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

Excluded Hotels Under Renovation:


Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

 

Exhibit 1


ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



Three Months Ended December 31, 2016


Capital Hilton Washington D.C.


La Jolla Hilton Torrey Pines


Chicago Sofitel Magnificent Mile


Bardessono Hotel & Spa


Key West Pier House Resort


Hotel Yountville


Park Hyatt Beaver Creek


Philadelphia Courtyard Downtown


Plano Marriott Legacy Town Center


San Francisco Courtyard Downtown


Seattle Courtyard Downtown


Seattle Marriott Waterfront


St. Thomas Ritz-Carlton


Tampa Renaissance


Hotel Total


Corporate / Allocated


Ashford Hospitality Prime, Inc.

Net income (loss)

$     2,448


$      1,204


$         586


$         663


$        1,781


$            —


$            —


$          818


$       1,533


$       1,160


$            —


$      2,078


$       (353)


$         697


$     12,615


$    (11,770)


$         845

(Income) loss from consolidated entities attributable to noncontrolling interest

(645)


(326)














(971)


435


(536)

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
















95


95

Net income (loss) attributable to the Company

1,803


878


586


663


1,781




818


1,533


1,160



2,078


(353)


697


11,644


(11,240)


404

Non-property adjustments













1



1


(1)


Interest income








(1)


(1)


(4)



(3)


(1)



(10)


(25)


(35)

Interest expense



586






496






590



1,672


7,380


9,052

Amortization of loan cost








8






127



135


628


763

Depreciation and amortization

1,582


1,512


951


610


687




1,470


1,174


825



964


831


949


11,555



11,555

Income tax expense (benefit)

29


(32)







(2)






(16)



(21)


573


552

Non-hotel EBITDA ownership expense

37


106


64


158


1




5


(8)


6



9


10


(9)


379


(379)


Income (loss) from consolidated entities attributable to noncontrolling interest

645


326














971


(971)


Hotel EBITDA including amounts attributable to noncontrolling interest

4,096


2,790


2,187


1,431


2,469




2,794


2,698


1,987



3,048


1,189


1,637


26,326


(4,035)


22,291

Less: EBITDA adjustments attributable to noncontrolling interest

(379)


(372)














(751)


(388)


(1,139)

(Income) loss from consolidated entities attributable to noncontrolling interest

(645)


(326)














(971)


971


Net income (loss) attributable to redeemable noncontrolling interests in operating partnership
















(95)


(95)

Hotel EBITDA attributable to the Company and OP unitholders

$      3,072


$     2,092


$       2,187


$       1,431


$     2,469


$            —


$            —


$      2,794


$     2,698


$       1,987


$            —


$     3,048


$       1,189


$       1,637


$   24,604


$    (3,547)


$     21,057

Non-comparable adjustments






1,567


1,766



(2,698)







635





Comparable hotel EBITDA

$     4,096


$      2,790


$       2,187


$       1,431


$     2,469


$       1,567


$       1,766


$      2,794


$            —


$       1,987


$            —


$     3,048


$       1,189


$       1,637


$    26,961





ALL HOTELS NOT UNDER 
     RENOVATION:


































Hotel EBITDA including amounts attributable to noncontrolling interest

$            —


$      2,790


$            —


$       1,431


$            —


$            —


$            —


$      2,794


$     2,698


$            —


$            —


$     3,048


$            —


$       1,637


$    14,398





Non-comparable adjustments






1,567


1,766



(2,698)







635





Comparable hotel EBITDA

$            —


$      2,790


$            —


$       1,431


$            —


$       1,567


$       1,766


$      2,794


$            —


$            —


$            —


$     3,048


$            —


$       1,637


$    15,033






NOTES:

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period
offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.


Adjustments have been made to the pre-acquisition results as indicated below:


(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

Excluded Hotels Under Renovation:


Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

 

Exhibit 1


ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



Year Ended December 31, 2017


Capital Hilton Washington D.C.


La Jolla Hilton Torrey Pines


Chicago Sofitel Magnificent Mile


Bardessono Hotel & Spa


Key West Pier House Resort


Hotel Yountville


Park Hyatt Beaver Creek


Philadelphia Courtyard Downtown


Plano Marriott Legacy Town Center


San Francisco Courtyard Downtown


Seattle Courtyard Downtown


Seattle Marriott Waterfront


St. Thomas Ritz-Carlton


Tampa Renaissance


Hotel Total


Corporate / Allocated


Ashford Hospitality Prime, Inc.

Net income (loss)

$   10,489


$     9,333


$     (1,613)


$        640


$     6,235


$        803


$   (2,546)


$     5,884


$  29,398


$      7,275


$            10


$    11,999


$      1,329


$     3,233


$  82,469


$  (54,145)


$  28,324

(Income) loss from consolidated entities attributable to noncontrolling interest

(2,754)


(2,422)














(5,176)


1,912


(3,264)

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
















(2,038)


(2,038)

Net income (loss) attributable to the Company

7,735


6,911


(1,613)


640


6,235


803


(2,546)


5,884


29,398


7,275


10


11,999


1,329


3,233


77,293


(54,271)


23,022

Non-property adjustments





823





(23,797)





252


10


(22,712)


22,712


Interest income

(17)


(12)







(1)



(4)



(12)


(4)


(1)


(51)


(639)


(690)

Interest expense



2,738


573



1,249


2,032


54






2,568



9,214


24,820


34,034

Amortization of loan cost




46



78


388







506



1,018


3,885


4,903

Depreciation and amortization

6,510


5,976


4,578


2,533


2,850


1,674


2,456


6,082


3,796


4,918



4,081


2,949


3,755


52,158


104


52,262

Income tax expense (benefit)


(532)


(1)






22


(1)







(512)


(10)


(522)

Non-hotel EBITDA ownership expense

690


(25)


76


649


1,074


120


89


180


174


548



141


2,995


5


6,716


(6,716)


Income (loss) from consolidated entities attributable to noncontrolling interest

2,754


2,422














5,176


(5,176)


Hotel EBITDA including amounts attributable to noncontrolling interest

17,672


14,740


5,778


4,441


10,982


3,924


2,419


12,221


9,570


12,737


10


16,209


10,595


7,002


128,300


(15,291)


113,009

Less: EBITDA adjustments attributable to noncontrolling interest

(1,664)


(1,263)














(2,927)


(1,742)


(4,669)

(Income) loss from consolidated entities attributable to noncontrolling interest

(2,754)


(2,422)














(5,176)


5,176


Net income (loss) attributable to redeemable noncontrolling interests in operating partnership
















2,038


2,038

Hotel EBITDA attributable to the Company and OP unitholders

$    13,254


$     11,055


$      5,778


$      4,441


$   10,982


$       3,924


$      2,419


$    12,221


$      9,570


$    12,737


$            10


$   16,209


$    10,595


$     7,002


$  120,197


$    (9,819)


$  110,378

Non-comparable adjustments






1,233


6,968



(9,570)



(10)





(1,379)





Comparable hotel EBITDA

$    17,672


$    14,740


$      5,778


$      4,441


$   10,982


$       5,157


$     9,387


$    12,221


$            —


$    12,737


$            —


$   16,209


$    10,595


$     7,002


$  126,921





ALL HOTELS NOT UNDER 
     RENOVATION:


































Hotel EBITDA including amounts attributable to noncontrolling interest

$            —


$    14,740


$            —


$      4,441


$            —


$       3,924


$      2,419


$    12,221


$      9,570


$            —


$            10


$   16,209


$            —


$     7,002


$   70,536





Non-comparable adjustments






1,233


6,968



(9,570)



(10)





(1,379)





Comparable hotel EBITDA

$            —


$    14,740


$            —


$      4,441


$            —


$       5,157


$     9,387


$    12,221


$            —


$            —


$            —


$   16,209


$            —


$     7,002


$    69,157







































HOTEL EBITDA BY LOAN POOL

(in thousands)

(unaudited)



































GACC Sofitel - 1 hotel

$            —


$            —


$      5,778


$            —


$            —


$            —


$            —


$            —


$            —


$            —


$            —


$            —


$            —


$            —


$      5,778





Credit Agricole Pier House - 1 hotel





10,982











10,982





BAML Bardessono - 1 hotel




4,441












4,441





BAML Hotel Yountville - 1 hotel






5,157










5,157





Apollo Ritz-Carlton St Thomas - 1 hotel













10,595



10,595





Aareal - 2 hotels

17,672


14,740














32,412





Morgan Stanley Pool -4 hotels








12,221



12,737



16,209



7,002


48,169





JP Morgan Park Hyatt Beaver Creek -1 hotel







9,387









9,387





Total

$    17,672


$    14,740


$      5,778


$      4,441


$   10,982


$       5,157


$     9,387


$    12,221


$            —


$    12,737



$   16,209


$    10,595


$     7,002


$  126,921






NOTES:

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period
offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.


Adjustments have been made to the pre-acquisition results as indicated below:


(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

Excluded Hotels Under Renovation:


Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

 

Exhibit 1


ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)



Year Ended December 31, 2016


Capital Hilton Washington D.C.


La Jolla Hilton Torrey Pines


Chicago Sofitel Magnificent Mile


Bardessono Hotel & Spa


Key West Pier House Resort


Hotel Yountville


Park Hyatt Beaver Creek


Philadelphia Courtyard Downtown


Plano Marriott Legacy Town Center


San Francisco Courtyard Downtown


Seattle Courtyard Downtown


Seattle Marriott Waterfront


St. Thomas Ritz-Carlton


Tampa Renaissance


Hotel Total


Corporate / Allocated


Ashford Hospitality Prime, Inc.

Net income (loss)

$     11,234


$     6,883


$       1,766


$      1,942


$        7,511


$            —


$            —


$     4,434


$     6,649


$     10,091


$    28,725


$     11,288


$      2,661


$      3,019


$   96,203


$  (71,883)


$   24,320

(Income) loss from consolidated entities attributable to noncontrolling interest

(2,940)


(1,816)














(4,756)


1,651


(3,105)

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
















(1,899)


(1,899)

Net income (loss) attributable to the Company

8,294


5,067


1,766


1,942


7,511




4,434


6,649


10,091


28,725


11,288


2,661


3,019


91,447


(72,131)


19,316

Non-property adjustments











(26,359)



43



(26,316)


26,316


Interest income

(1)


(1)







(3)


(2)


(15)



(10)


(3)



(35)


(132)


(167)

Interest expense



2,261






1,977






2,319



6,557


31,155


37,712

Amortization of loan cost



119






31






504



654


2,515


3,169

Depreciation and amortization

6,269


6,008


4,152


2,398


2,703




5,853


4,324


2,676


834


3,803


3,147


3,730


45,897



45,897

Income tax expense (benefit)

29


(121)







18






(16)



(90)


1,664


1,574

Non-hotel EBITDA ownership expense

(109)


153


102


689


15




247


50


38


(36)


34


158


28


1,369


(1,369)


Income (loss) from consolidated entities attributable to noncontrolling interest

2,940


1,816














4,756


(4,756)


Hotel EBITDA including amounts attributable to noncontrolling interest

17,422


12,922


8,400


5,029


10,229




12,557


11,021


12,790


3,164


15,115


8,813


6,777


124,239


(16,738)


107,501

Less: EBITDA adjustments attributable to noncontrolling interest

(1,415)


(1,415)














(2,830)


(1,662)


(4,492)

(Income) loss from consolidated entities attributable to noncontrolling interest

(2,940)


(1,816)














(4,756)


4,756


Net income (loss) attributable to redeemable noncontrolling interests in operating partnership
















1,899


1,899

Hotel EBITDA attributable to the Company and OP unitholders

$    13,067


$      9,691


$     8,400


$      5,029


$    10,229


$            —


$            —


$     12,557


$      11,021


$    12,790


$      3,164


$       15,115


$      8,813


$       6,777


$   116,653


$    (11,745)


$ 104,908

Non-comparable adjustments






6,960


9,700



(11,021)



(3,164)





2,475





Comparable hotel EBITDA

$    17,422


$    12,922


$     8,400


$      5,029


$    10,229


$      6,960


$      9,700


$     12,557


$            —


$    12,790


$            —


$       15,115


$      8,813


$       6,777


$   126,714





ALL HOTELS NOT UNDER 
     RENOVATION:


































Hotel EBITDA including amounts attributable to noncontrolling interest

$            —


$    12,922


$            —


$      5,029


$            —


$            —


$            —


$     12,557


$      11,021


$            —


$      3,164


$       15,115


$            —


$       6,777


$    66,585





Non-comparable adjustments






6,960


9,700



(11,021)



(3,164)





2,475





Comparable hotel EBITDA

$            —


$    12,922


$            —


$      5,029


$            —


$      6,960


$      9,700


$     12,557


$            —


$            —


$            —


$       15,115


$            —


$       6,777


$   69,060






NOTES:

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at December 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from hotel properties acquired during the period
offset by results from hotel properties sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.


Adjustments have been made to the pre-acquisition results as indicated below:


(a) Management fee expense was adjusted to reflect current contractual rates.

(3)

Excluded Hotels Under Renovation:


Capital Hilton Washington D.C., Chicago Sofitel Magnificent Mile, Key West Pier House Resort, San Francisco Courtyard Downtown, St. Thomas Ritz-Carlton

 

 

Cision View original content:http://www.prnewswire.com/news-releases/ashford-prime-reports-fourth-quarter-and-year-end-2017-results-300606112.html

SOURCE Ashford Hospitality Prime, Inc.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.

Use the myMotherLode.com Keyword Search to go straight to a specific page

Popular Pages

  • Local News
  • US News
  • Weather
  • State News
  • Events
  • Traffic
  • Sports
  • Dining Guide
  • Real Estate
  • Classifieds
  • Financial News
  • Fire Info
Feedback