- Announces 60% increase in quarterly
dividend to $0.08 per common share
- Launched three conversions and acquired
one high quality hotel
- Maintained $1.1 billion of liquidity and
no debt maturities until 2024
RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported
results for the three months and year ended December 31, 2022.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230227005749/en/
The Mills House Hotel, Charleston, SC.
(Photo: Business Wire)
Fourth Quarter
Highlights
- Portfolio comparable RevPAR of $127.25
- Revenue of $302.2 million
- Net income attributable to common shareholders of $0.3
million
- Net income per diluted share attributable to common
shareholders of $0.00
- Adjusted EBITDA of $79.0 million
- Adjusted FFO per diluted common share and unit of $0.33
- Addressed all 2023 debt maturities
- Launched The Mills House Hotel, a Curio Collection Hotel by
Hilton in Charleston, South Carolina, Zachari Dunes on Mandalay
Beach, a Curio Collection Hotel by Hilton in Oxnard, California and
The Pierside Hotel in Santa Monica, California
- Repurchased 0.7 million common shares at an average price per
share of $10.66
Full Year Highlights
- Portfolio comparable RevPAR of $129.61
- Revenue of $1.2 billion
- Net income attributable to common shareholders of $16.8
million
- Net income per diluted share attributable to common
shareholders of $0.10
- Adjusted EBITDA of $336.5 million
- Adjusted FFO per diluted common share and unit of $1.36
- Acquired 21c Hotel Nashville for $59.0 million and sold two
non-core hotels for gross proceeds of $49.9 million
- Exited all COVID-related restrictions on corporate debt
facilities
- Repurchased 4.9 million common shares for $57.6 million at an
average price per share of $11.75
- Maintained $1.1 billion of liquidity, including $481.3 million
of unrestricted cash and undrawn revolver
“We were pleased that the strengthening lodging fundamentals we
saw throughout last year, especially in Urban markets, carried into
the fourth quarter,” commented Leslie D. Hale, President and Chief
Executive Officer. “Relative to this improving backdrop, we
successfully executed on our key initiatives, including capturing
the recovery in Urban markets, launching all three of our
conversions and entering the growth market of Nashville. We
achieved these priorities while strengthening our balance sheet and
returning capital to our shareholders through thoughtful share
repurchases and dividend raises, including our most recent dividend
raise of 60% beginning with this quarter. While the current
environment remains uncertain, the continuing improvement in
business travel, group booking momentum and the ongoing recovery in
Urban leisure gives us confidence that Urban markets will continue
to outperform the industry on a relative basis this year, which
will benefit our Urban-centric portfolio.”
The prefix “Comparable” as defined by the Company, denotes
operating results which include results for periods prior to its
ownership and exclude sold hotels. Explanations of EBITDA,
EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO,
and Adjusted FFO, as well as reconciliations of those measures to
net income or loss, if applicable, are included within this
release.
Financial and
Operating Highlights
($ in millions, except ADR, RevPAR, and
per share amounts)
(unaudited)
For the three months ended
December 31,
For the year ended
December 31,
2022
2021
2022
2021
Operational Overview: (1)
Comparable ADR
$190.24
$164.12
$188.22
$149.52
Comparable Occupancy
66.9 %
62.4 %
68.9 %
57.6 %
Comparable RevPAR
$127.25
$102.48
$129.61
$86.18
Financial Overview:
Total Revenues
$302.2
$238.1
$1,193.7
$785.7
Comparable Hotel Revenue
$302.2
$240.2
$1,196.9
$786.7
Net Income (Loss)
$6.8
($27.9)
$42.2
($311.1)
Comparable Hotel EBITDA (2)
$87.6
$64.8
$370.0
$202.7
Comparable Hotel EBITDA Margin
29.0 %
27.0 %
30.9 %
25.8 %
Adjusted EBITDA
$79.0
$54.7
$336.5
$162.0
Adjusted FFO
$52.8
$22.6
$221.1
$31.4
Adjusted FFO Per Diluted Common Share and
Unit
$0.33
$0.14
$1.36
$0.19
Note:
(1) Comparable statistics reflect the
Company's 96 hotel portfolio owned as of December 31, 2022.
(2) Comparable Hotel EBITDA for the three
months ended December 31, 2022 and 2021 excludes $0.6 million net
income and $1.7 million net loss, respectively, from sold hotels.
Comparable Hotel EBITDA for the year ended December 31, 2022 and
2021 excludes $1.2 million net income and $7.6 million net loss,
respectively, from sold hotels. Comparable Hotel EBITDA for the
three months ended December 31, 2021 includes $1.1 million net
income from acquired hotels. Comparable Hotel EBITDA for the year
ended December 31, 2022 and 2021 includes $0.6 million and $3.4
million net income, respectively, from acquired hotels.
Operational Update
During the fourth quarter of 2022, the Company’s portfolio
generated Comparable RevPAR of $127.25, achieving 94% of the
comparable period in 2019. Comparable occupancy for the fourth
quarter of 2022 recovered to 89% of 2019 levels while comparable
ADR achieved 105% of 2019 levels. During the fourth quarter, the
Company's portfolio benefitted from growth in urban markets and
sustained pricing power led by continuing recovery of business
travel and strong group activity. Leisure trends remained healthy
and performed in line with normal seasonality.
Acquisitions
In 2022, the Company acquired the 21c Hotel Nashville, a
124-room boutique lifestyle hotel in downtown Nashville for $59.0
million, or approximately $476,000 per key. The property was
converted to a hotel in 2017, following the transformational
conversion of the historic Gray & Dudley Building.
Conversions
The Company has successfully launched its three hotel
conversions of The Mills House Hotel, a Curio Collection Hotel by
Hilton in Charleston, South Carolina, Zachari Dunes on Mandalay
Beach, a Curio Collection Hotel by Hilton in Oxnard, California and
The Pierside Hotel, an independently branded lifestyle property
located in Santa Monica, California. All three conversions are
anticipated to outperform the Company's original underwriting and
demonstrate the ability of the Company to unlock significant
embedded value in the portfolio.
Share Repurchases
During 2022, the Company repurchased 4.9 million shares for
$57.6 million, at an average price per share of $11.75, which
included approximately 0.7 million common shares for $7.6 million
at an average price per share of $10.66 during the fourth quarter.
Since January 2023, the Company has repurchased $0.5 million of
shares at an average price per share of $10.49. The Company's share
buyback program currently has approximately $191.9 million of
remaining capacity.
Balance Sheet
As of December 31, 2022, the Company had approximately $1.1
billion of total liquidity, comprising approximately $481.3 million
of unrestricted cash and $600.0 million available under its
revolving credit facility ("Revolver"), and $2.2 billion of debt
outstanding.
In November 2022, the Company amended its term loan facility to
increase it from $100.0 million to $200.0 million and extend its
maturity to January 2026, with two one year extension options. The
incremental $100.0 million of proceeds were funded in two tranches,
with $5.0 million funded at closing in November 2022 and $95.0
million funded through a delayed draw feature in early 2023 that
was used to repay $94.0 million maturing term loans in January
2023.
In January 2023, the Company exercised its option to extend the
maturities of approximately $225.0 million of term loans to
2024.
Dividends
The Company’s Board of Trustees recently declared a quarterly
cash dividend of $0.05 per common share of beneficial interest of
the Company in the fourth quarter. The dividend was paid on January
17, 2023 to shareholders of record as of December 31, 2022.
The Company’s Board of Trustees also declared an increase in its
quarterly cash dividend to $0.08 per common share of beneficial
interest of the Company for the first quarter of 2023, which
represents a 60% increase from the prior quarter dividend. The
dividend will be paid on April 17, 2023 to shareholders of record
as of March 31, 2023.
The Company's Board of Trustees declared a quarterly cash
dividend of $0.4875 on the Company’s Series A Preferred Shares in
the fourth quarter. The dividend was paid on January 31, 2023 to
shareholders of record as of December 31, 2022.
The Company's Board of Trustees recently declared a quarterly
cash dividend of $0.4875 on the Company’s Series A Preferred Shares
for the first quarter of 2023. The dividend will be paid on April
28, 2023 to shareholders of record as of March 31, 2023.
2023 Outlook
The Company's first quarter outlook includes all hotels owned as
of February 27, 2023.
Q1 2023
Comparable RevPAR
$133.00 to $137.00
Comparable Hotel EBITDA
$85.0M to $91.0.M
Adjusted EBITDA
$76.0M to $82.0M
Adjusted FFO per share
$0.29 to $0.33
Potential future acquisitions, dispositions, financings, or
share repurchases are not incorporated into the Company's outlook
below and could result in a material change to the Company's
outlook.
Earnings Call
The Company will conduct its quarterly analyst and investor
conference call on February 28, 2023, at 10:00 a.m. (Eastern
Standard Time). The conference call can be accessed by dialing
(877) 407-3982 or (201) 493-6780 for international participants and
requesting RLJ Lodging Trust’s fourth quarter earnings conference
call. Additionally, a live webcast of the conference call will be
available through the Company’s website at
http://www.rljlodgingtrust.com. A replay of the conference call
webcast will be archived and available through the Investor
Relations section of the Company’s website for two weeks.
Supplemental Information
Please refer to the schedule of supplemental information for
additional detail and Comparable operating statistics, which is
available through the Investor Relations section of the Company's
website.
About Us
RLJ Lodging Trust is a self-advised, publicly traded real estate
investment trust that owns primarily premium-branded,
rooms-oriented, high-margin, focused-service and compact
full-service hotels. The Company's portfolio currently consists of
96 hotels with approximately 21,200 rooms, located in 23 states and
the District of Columbia and an ownership interest in one
unconsolidated hotel with 171 rooms.
Forward Looking
Statements
This information contains certain statements, other than purely
historical information, including estimates, projections,
statements relating to the Company’s business plans, objectives and
expected operating results, and the assumptions upon which those
statements are based, that are “forward looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements generally are identified by the
use of the words “believe,” “project,” “expect,” “anticipate,”
“estimate,” “plan,” “may,” “will,” “will continue,” “intend,”
“should,” “may,” or similar expressions. Although the Company
believes that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, beliefs and
expectations, such forward-looking statements are not predictions
of future events or guarantees of future performance and our actual
results could differ materially from those set forth in the
forward-looking statements. Except as required by law, the Company
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise. The Company cautions investors not to
place undue reliance on these forward looking statements and urges
investors to carefully review the disclosures the Company makes
concerning risks and uncertainties in the sections entitled “Risk
Factors,” “Forward- Looking Statements,” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2022, which will be filed on February 28,
2023, as well as risks, uncertainties and other factors discussed
in other documents filed by the Company with the Securities and
Exchange Commission.
For additional information or to receive press
releases via email, please visit our website:
http://www.rljlodgingtrust.com
RLJ Lodging Trust Non-GAAP and
Accounting Commentary
Non-Generally Accepted Accounting
Principles (“Non-GAAP”) Financial Measures
The Company considers the following non-GAAP financial measures
useful to investors as key supplemental measures of its
performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) EBITDAre,
(5) Adjusted EBITDA, (6) Hotel EBITDA, and (7) Hotel EBITDA Margin.
These Non-GAAP financial measures should be considered along with,
but not as alternatives to, net income or loss as a measure of its
operating performance. FFO, Adjusted FFO, EBITDA, EBITDAre,
Adjusted EBITDA, Hotel EBITDA, and Hotel EBITDA Margin as
calculated by the Company may not be comparable to other companies
that do not define such terms exactly as the Company defines such
terms.
Funds From Operations
(“FFO”)
The Company calculates Funds from Operations ("FFO") in
accordance with standards established by the National Association
of Real Estate Investment Trusts, or NAREIT, which defines FFO as
net income or loss (calculated in accordance with GAAP), excluding
gains or losses from sales of real estate, impairment, the
cumulative effect of changes in accounting principles, plus
depreciation and amortization, and adjustments for unconsolidated
partnerships and joint ventures. Historical cost accounting for
real estate assets implicitly assumes that the value of real estate
assets diminishes predictably over time. Since real estate values
have instead historically risen or fallen with market conditions,
most real estate industry investors consider FFO to be helpful in
evaluating a real estate company’s operations. The Company believes
that the presentation of FFO provides useful information to
investors regarding the Company’s operating performance and can
facilitate comparisons of operating performance between periods and
between real estate investment trusts (“REITs”), even though FFO
does not represent an amount that accrues directly to common
shareholders.
The Company’s calculation of FFO may not be comparable to
measures calculated by other companies who do not use the NAREIT
definition of FFO or do not calculate FFO per diluted share in
accordance with NAREIT guidance. Additionally, FFO may not be
helpful when comparing the Company to non-REITs. The Company
presents FFO attributable to common shareholders, which includes
unitholders of limited partnership interest (“OP units”) in RLJ
Lodging Trust, L.P., the Company’s operating partnership, because
the OP units are redeemable for common shares of the Company. The
Company believes it is meaningful for the investor to understand
FFO attributable to all common shares and OP units.
EBITDA and EBITDAre
Earnings Before Interest, Taxes, Depreciation, and Amortization
("EBITDA") is defined as net income or loss excluding: (1) interest
expense; (2) income tax benefit or expense; and (3) depreciation
and amortization expense. The Company considers EBITDA useful to an
investor in evaluating and facilitating comparisons of its
operating performance between periods and between REITs by removing
the impact of its capital structure (primarily interest expense)
and asset base (primarily depreciation and amortization) from its
operating results. In addition, EBITDA is used as one measure in
determining the value of hotel acquisitions and dispositions.
In addition to EBITDA, the Company presents EBITDAre in
accordance with NAREIT guidelines, which defines EBITDAre as net
income or loss (calculated in accordance with GAAP) excluding
interest expense, income tax benefit or expense, depreciation and
amortization expense, gains or losses from sales of real estate,
impairment, and adjustments for unconsolidated joint ventures. The
Company believes that the presentation of EBITDAre provides useful
information to investors regarding the Company's operating
performance and can facilitate comparisons of operating performance
between periods and between REITs.
Adjustments to FFO and
EBITDA
The Company adjusts FFO, EBITDA, and EBITDAre for certain items
that the Company considers outside the normal course of operations.
The Company believes that Adjusted FFO, Adjusted EBITDA, and
Adjusted EBITDAre provide useful supplemental information to
investors regarding its ongoing operating performance that, when
considered with net income or loss, FFO, EBITDA, and EBITDAre, are
beneficial to an investor’s understanding of the Company's
operating performance. The Company adjusts FFO, EBITDA, and
EBITDAre for the following items:
- Transaction Costs: The Company excludes transaction costs
expensed during the period
- Pre-Opening Costs: The Company excludes certain costs related
to pre-opening of hotels
- Non-Cash Expenses: The Company excludes the effect of certain
non-cash items such as the amortization of share-based
compensation, non-cash income tax expense or benefit, and non-cash
interest expense related to discontinued interest rate hedges
- Other Non-Operational Expenses: The Company excludes the effect
of certain non-operational expenses representing income and
expenses outside the normal course of operations
Hotel EBITDA and Hotel EBITDA
Margin
With respect to Consolidated Hotel EBITDA, the Company believes
that excluding the effect of corporate-level expenses and certain
non-cash items provides a more complete understanding of the
operating results over which individual hotels and operators have
direct control. The Company believes property-level results provide
investors with supplemental information about the ongoing
operational performance of the Company’s hotels and the
effectiveness of third-party management companies.
Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin
include prior ownership information provided by the sellers of the
hotels for periods prior to our acquisition of the hotels and
excludes results from sold hotels as applicable. The following is a
summary of Comparable hotel adjustments:
Comparable adjustments: Acquired
hotels
For the years ended December 31, 2022 and 2021, Comparable
adjustments included the following acquired hotels:
- Hampton Inn & Suites Atlanta Midtown acquired in August
2021
- AC Hotel Boston Downtown acquired in October 2021
- Moxy Denver Cherry Creek acquired in December 2021
- 21c Hotel Nashville acquired in July 2022
Comparable adjustments: Sold
hotels
For the years ended December 31, 2022 and 2021, Comparable
adjustments included the following sold hotels:
- Courtyard Houston Sugarland sold in January 2021
- Residence Inn Chicago Naperville sold in May 2021
- Residence Inn Indianapolis Fishers sold in May 2021
- Fairfield Inn & Suites Chicago Southeast Hammond sold in
July 2021
- Residence Inn Chicago Southeast Hammond sold in August
2021
- Courtyard Chicago Southeast Hammond sold in August 2021
- Embassy Suites Secaucus-Meadowlands ground lease expired in
October 2021
- DoubleTree Hotel Metropolitan New York City sold in December
2021
- Marriott Denver Airport at Gateway Park sold in March 2022
- SpringHill Suites Denver North Westminster sold in April
2022
RLJ Lodging Trust
Consolidated Balance
Sheets
(Amounts in thousands, except
share and per share data)
(unaudited)
December 31,
2022
December 31, 2021
Assets
Investment in hotel properties, net
$
4,180,328
$
4,219,116
Investment in unconsolidated joint
ventures
6,979
6,522
Cash and cash equivalents
481,316
665,341
Restricted cash reserves
55,070
48,528
Hotel and other receivables, net of
allowance of $319 and $274, respectively
38,528
31,091
Lease right-of-use assets
136,915
144,988
Prepaid expense and other assets
79,089
33,390
Total assets
$
4,978,225
$
5,148,976
Liabilities and Equity
Debt, net
$
2,217,555
$
2,409,438
Accounts payable and other liabilities
155,916
155,136
Advance deposits and deferred revenue
23,769
20,047
Lease liabilities
117,010
123,031
Accrued interest
20,707
19,110
Distributions payable
14,622
8,347
Total liabilities
2,549,579
2,735,109
Equity
Shareholders’ equity:
Preferred shares of beneficial interest,
$0.01 par value, 50,000,000 shares authorized
Series A Cumulative Convertible Preferred
Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475
shares issued and outstanding, liquidation value of $328,266, at
December 31, 2022 and 2021
366,936
366,936
Common shares of beneficial interest,
$0.01 par value, 450,000,000 shares authorized; 162,003,533 and
166,503,062 shares issued and outstanding at December 31, 2022 and
2021, respectively
1,620
1,665
Additional paid-in capital
3,054,958
3,092,883
Accumulated other comprehensive income
(loss)
40,591
(17,113
)
Distributions in excess of net
earnings
(1,049,441
)
(1,046,739
)
Total shareholders’ equity
2,414,664
2,397,632
Noncontrolling interest:
Noncontrolling interest in consolidated
joint ventures
7,669
9,919
Noncontrolling interest in the Operating
Partnership
6,313
6,316
Total noncontrolling interest
13,982
16,235
Total equity
2,428,646
2,413,867
Total liabilities and equity
$
4,978,225
$
5,148,976
Note:
The corresponding notes to the
consolidated financial statements can be found in the Company’s
Annual Report on Form 10-K.
RLJ Lodging Trust
Consolidated Statements of
Operations
(Amounts in thousands, except
share and per share data)
(unaudited)
For the three months ended
December 31,
For the year ended December
31,
2022
2021
2022
2021
Revenues
Operating revenues
Room revenue
$
248,636
$
198,476
$
1,002,454
$
667,853
Food and beverage revenue
34,372
22,756
117,027
58,994
Other revenue
19,183
16,857
74,181
58,817
Total revenues
302,191
238,089
1,193,662
785,664
Expenses
Operating expenses
Room expense
65,426
53,089
253,441
177,365
Food and beverage expense
26,088
15,949
87,402
41,790
Management and franchise fee expense
23,719
19,060
95,565
53,276
Other operating expense
80,437
65,490
308,000
239,092
Total property operating expenses
195,670
153,588
744,408
511,523
Depreciation and amortization
44,529
46,855
184,875
187,778
Impairment losses
—
—
—
144,845
Property tax, insurance and other
20,790
23,433
86,996
88,852
General and administrative
15,402
11,962
56,330
47,526
Transaction costs
230
(7
)
(345
)
94
Total operating expenses
276,621
235,831
1,072,264
980,618
Other income (expense), net
780
965
9,496
(7,614
)
Interest income
2,759
170
4,559
996
Interest expense
(22,114
)
(25,172
)
(93,155
)
(106,366
)
Gain (loss) on sale of hotel properties,
net
21
(5,511
)
1,017
(2,378
)
(Loss) gain on extinguishment of
indebtedness, net
(39
)
—
(39
)
893
Income (loss) before equity in income
(loss) from unconsolidated joint ventures
6,977
(27,290
)
43,276
(309,423
)
Equity in income (loss) from
unconsolidated joint ventures
202
(7
)
457
(477
)
Income (loss) before income tax
expense
7,179
(27,297
)
43,733
(309,900
)
Income tax expense
(379
)
(634
)
(1,518
)
(1,188
)
Net income (loss)
6,800
(27,931
)
42,215
(311,088
)
Net (income) loss attributable to
noncontrolling interests:
Noncontrolling interest in consolidated
joint ventures
(181
)
58
(210
)
4,384
Noncontrolling interest in the Operating
Partnership
(6
)
145
(80
)
1,536
Net income (loss) attributable to RLJ
6,613
(27,728
)
41,925
(305,168
)
Preferred dividends
(6,279
)
(6,279
)
(25,115
)
(25,115
)
Net income (loss) attributable to common
shareholders
$
334
$
(34,007
)
$
16,810
$
(330,283
)
Basic per common share data:
Net income (loss) per share attributable
to common shareholders
$
—
$
(0.21
)
$
0.10
$
(2.01
)
Weighted-average number of common
shares
159,769,645
164,099,763
161,947,807
163,998,390
Diluted per common share data:
Net income (loss) per share attributable
to common shareholders
$
—
$
(0.21
)
$
0.10
$
(2.01
)
Weighted-average number of common
shares
160,327,264
164,099,763
162,292,865
163,998,390
Note:
The Statements of Comprehensive Income and
corresponding notes to the consolidated financial statements can be
found in the Company’s Annual Report on Form 10-K.
RLJ Lodging Trust
Reconciliation of Non-GAAP
Measures
(Amounts in thousands, except
per share data)
(unaudited)
Funds From Operations (FFO)
Attributable to Common Shareholders and Unitholders
For the three months ended
December 31,
For the year ended December
31,
2022
2021
2022
2021
Net income (loss)
$
6,800
$
(27,931
)
$
42,215
$
(311,088
)
Preferred dividends
(6,279
)
(6,279
)
(25,115
)
(25,115
)
Depreciation and amortization
44,529
46,855
184,875
187,778
Impairment losses
—
—
—
144,845
(Gain) loss on sale of hotel properties,
net
(21
)
5,511
(1,017
)
2,378
Noncontrolling interest in consolidated
joint ventures
(181
)
58
(210
)
4,384
Adjustments related to consolidated joint
ventures (1)
(43
)
(154
)
(187
)
(2,780
)
Adjustments related to unconsolidated
joint ventures (2)
239
292
1,070
1,168
FFO
45,044
18,352
201,631
1,570
Transaction costs
230
(7
)
(345
)
94
Pre-opening costs
738
—
2,258
144
Loss (gain) on extinguishment of
indebtedness, net
39
—
39
(893
)
Amortization of share-based
compensation
5,590
4,289
21,664
17,054
Non-cash income tax benefit
(17
)
(40
)
(17
)
(40
)
Non-cash interest expense related to
discontinued interest rate hedges
178
—
680
—
Corporate and property-level severance
(3)
—
—
—
904
Derivative (gains) losses in accumulated
other comprehensive income (loss) reclassified to earnings (4)
—
—
(5,866
)
10,658
Other expenses (income) (5)
1,011
(34
)
1,067
1,942
Adjusted FFO
$
52,813
$
22,560
$
221,111
$
31,433
Adjusted FFO per common share and
unit-basic
$
0.33
$
0.14
$
1.36
$
0.19
Adjusted FFO per common share and
unit-diluted
$
0.33
$
0.14
$
1.36
$
0.19
Basic weighted-average common shares and
units outstanding (6)
160,541
164,872
162,720
164,771
Diluted weighted-average common shares and
units outstanding (6)
161,099
165,277
163,065
165,199
Note:
(1) Includes depreciation and amortization
expense, impairment loss and loss on sale of hotel allocated to the
noncontrolling interest in the consolidated joint ventures.
(2) Includes our ownership interest in the
depreciation and amortization expense of the unconsolidated joint
ventures.
(3) The year ended December 31, 2021
includes severance for associates at hotels operating under
collective bargaining agreements.
(4) Reclassification of interest rate swap
(gains) losses from accumulated other comprehensive income (loss)
to earnings for discontinued interest rate hedges.
(5) Represents expenses and income outside
of the normal course of operations, including debt modification
costs, legal and other costs, and hurricane-related costs that were
not reimbursed by insurance.
(6) Includes 0.8 million weighted-average
operating partnership units for the three and twelve months ended
December 31, 2022 and 2021.
RLJ Lodging Trust
Reconciliation of Non-GAAP
Measures
(Amounts in thousands)
(unaudited)
Earnings Before Interest, Taxes,
Depreciation, and Amortization (EBITDA)
For the three months ended
December 31,
For the year ended December
31,
2022
2021
2022
2021
Net income (loss)
$
6,800
$
(27,931
)
$
42,215
$
(311,088
)
Depreciation and amortization
44,529
46,855
184,875
187,778
Interest expense, net
19,355
25,002
88,596
105,370
Income tax expense
379
634
1,518
1,188
Adjustments related to unconsolidated
joint ventures (1)
351
408
1,519
1,633
EBITDA
71,414
44,968
318,723
(15,119
)
(Gain) loss on sale of hotel properties,
net
(21
)
5,511
(1,017
)
2,378
Impairment losses
—
—
—
144,845
EBITDAre
71,393
50,479
317,706
132,104
Transaction costs
230
(7
)
(345
)
94
Pre-opening costs
738
135
2,258
144
Loss (gain) on extinguishment of
indebtedness, net
39
—
39
(893
)
Amortization of share-based
compensation
5,590
4,289
21,664
17,054
Corporate and property-level severance
(2)
—
—
—
904
Derivative (gains) losses in accumulated
other comprehensive loss (income) reclassified to earnings (3)
—
—
(5,866
)
10,658
Other (income) expenses (4)
1,011
(169
)
1,067
1,942
Adjusted EBITDA
79,001
54,727
336,523
162,007
General and administrative (5)
9,812
7,673
34,666
30,472
Other corporate adjustments (6)
(568
)
(360
)
(569
)
(784
)
Consolidated Hotel EBITDA
88,245
62,040
370,620
191,695
Comparable adjustments - (income) loss
from sold hotels
(676
)
1,722
(1,186
)
7,565
Comparable adjustments - income from
acquired hotels
—
1,055
558
3,441
Comparable Hotel EBITDA
$
87,569
$
64,817
$
369,992
$
202,701
Note:
(1) Includes our ownership interest in the
interest, depreciation, and amortization expense of the
unconsolidated joint ventures.
(2)The year ended December 31, 2021
includes severance for associates at hotels operating under
collective bargaining agreements.
(3) Reclassification of interest rate swap
(gains) losses from accumulated other comprehensive income (loss)
to earnings for discontinued interest rate hedges.
(4) Represents expenses and income outside
of the normal course of operations including debt modification
costs, legal and other costs, and hurricane-related costs that were
not reimbursed by insurance.
(5) Excludes amortization of share-based
compensation costs reflected in Adjusted EBITDA.
(6) Other corporate adjustments include
property-level adjustments and certain revenues and expenses at
corporate entities. These items include interest income,
amortization of deferred management fees, key money amortization,
ground rent amortization, legal fees, revenues and expenses
associated with non-hotel properties, income (loss) from
unconsolidated entities, internal lease rent expense, and other
items.
RLJ Lodging Trust
Reconciliation of Non-GAAP
Measures
(Amounts in thousands)
(unaudited)
Comparable Hotel EBITDA Margin
For the three months ended
December 31,
For the year ended December
31,
2022
2021
2022
2021
Total revenue
$
302,191
$
238,089
$
1,193,662
$
785,664
Comparable adjustments - revenue from sold
hotels
—
(2,901
)
(2,337
)
(20,423
)
Comparable adjustments - revenue from
prior ownership of acquired hotels
—
5,029
5,585
21,561
Other corporate adjustments / non-hotel
revenue
(16
)
(14
)
(60
)
(63
)
Comparable Hotel Revenue
$
302,175
$
240,203
$
1,196,850
$
786,739
Comparable Hotel EBITDA
$
87,569
$
64,817
$
369,992
$
202,701
Comparable Hotel EBITDA Margin
29.0
%
27.0
%
30.9
%
25.8
%
RLJ Lodging Trust
Consolidated Debt
Summary
(Amounts in thousands)
(unaudited)
Loan
Base Term (Years)
Maturity (incl.
extensions)
Floating / Fixed (1)
Interest Rate (2)
Balance as of December 31,
2022 (3)
Mortgage Debt
Mortgage loan - 1 hotel
10
Jan 2029
Fixed
5.06%
$
25,000
Mortgage loan - 7 hotels
3
Apr 2024
Floating
3.25%
200,000
Mortgage loan - 3 hotels
5
Apr 2026
Floating
2.53%
96,000
Mortgage loan - 4 hotels
5
Apr 2026
Floating
3.43%
85,000
Weighted-Average / Mortgage
Total
3.23%
$
406,000
Corporate Debt
Revolver (4)
4
May 2025
Floating
—%
$
—
$200 Million Term Loan Maturing 2026
(5)
3
Jan 2028
Floating
2.85%
105,000
$400 Million Term Loan Maturing 2023
(6)
5
Jan 2023
Floating
3.84%
52,261
$400 Million Term Loan Maturing 2024
(7)
5
Jan 2024
Floating
3.84%
151,683
$225 Million Term Loan Maturing 2023
(6)
5
Jan 2023
Floating
3.84%
41,745
$225 Million Term Loan Maturing 2024
(7)
5
Jan 2024
Floating
3.18%
72,973
$400 Million Term Loan Maturing 2025
5
May 2025
Floating
3.24%
400,000
$500 Million Senior Notes due 2026
5
Jul 2026
Fixed
3.75%
500,000
$500 Million Senior Notes due 2029
8
Sep 2029
Fixed
4.00%
500,000
Weighted Average / Corporate
Total
3.64%
$
1,823,662
Weighted-Average / Gross Debt
3.57%
$
2,229,662
Note:
(1) The floating interest rate is hedged
with an interest rate swap.
(2) Interest rates as of December 31,
2022.
(3) Excludes the impact of fair value
adjustments and deferred financing costs.
(4) As of December 31, 2022, there was
$600.0 million of borrowing capacity on the Revolver, which is
charged an unused commitment fee of 0.25% annually.
(5) Remaining $95.0 million delayed draw
was funded in January 2023 and full $200.0 million is currently
outstanding.
(6) Loan was repaid in January 2023.
(7) Loan was extended to January 2024 in
January 2023.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230227005749/en/
Sean M. Mahoney, Executive Vice President
and Chief Financial Officer – (301) 280-7774
RLJ Lodging (NYSE:RLJ)
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