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RLJ Lodging Trust Reports First Quarter 2022 Results

- March RevPAR achieved ~84% of 2019

- Adjusted EBITDA of $54.6 million and Adjusted FFO per share of $0.14

- Amended corporate credit facilities to allow for share repurchases

RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three months ended March 31, 2022.

Highlights

  • Pro forma RevPAR of $107.39 for Q1, representing 74% of 2019 levels, improving 5% from Q4 2021
  • Total revenue of $242.9 million
  • Net loss attributable to common shareholders of $21.5 million
  • Net loss per share attributable to common shareholders of $0.13
  • Pro forma Hotel EBITDA of $63.2 million
  • Adjusted EBITDA of $54.6 million
  • Adjusted FFO per diluted common share and unit of $0.14
  • Repaid remaining $200.0 million outstanding on the line of credit
  • Amended corporate credit facilities to allow for share repurchases during covenant waiver period
  • Approximately $1.1 billion of liquidity, including $479.0 million of unrestricted cash

“First quarter operating results exceeded our expectations, benefiting from accelerating demand in our urban markets,” commented Leslie D. Hale, President and Chief Executive Officer. “The pace of recovery throughout the first quarter was driven by broad improvement across all markets and segments, including sustained leisure strength along with a notable pick up in business transient and group demand which achieved new highs of the pandemic in March, a trend that continued into April. Against this rapidly improving backdrop, we made significant progress towards our internal growth catalysts, further strengthened our balance sheet by paying down the remaining balance on our line of credit, and amended our credit facility to allow for share repurchases thereby expanding the range of capital allocation opportunities available to us.”

The prefix “pro forma” as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. Pro forma RevPAR and pro forma Hotel EBITDA Margin are reported on a comparable basis and therefore exclude any hotels sold during the period and non-comparable hotels that were not open for operation or were closed for renovation for comparable periods. Explanations of EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included within this release.

 

Financial and Operating Highlights

($ in thousands, except ADR, RevPAR, and per share amounts)

(unaudited)

 

 

For the three months ended March 31,

 

2022

2021

Operational Overview: (1)

 

 

Pro forma ADR

$175.57

$119.84

Pro forma Occupancy

61.2%

44.2%

Pro forma RevPAR

$107.39

$52.95

 

 

 

Financial Overview:

 

 

Total Revenues

$242,899

$119,552

Pro forma Hotel Revenue

$240,664

$117,179

 

 

 

Net Loss

($15,469)

($79,117)

 

 

 

Pro forma Hotel EBITDA (2)

$63,186

$15,004

Pro forma Hotel EBITDA Margin

26.3%

12.8%

Adjusted EBITDA

$54,594

$3,592

 

 

 

Adjusted FFO

$23,894

($29,767)

Adjusted FFO Per Diluted Common Share and Unit

$0.14

($0.18)

Note:

(1) Pro forma statistics reflect the Company's 95 hotel portfolio as of May 4, 2022.

(2) Pro forma Hotel EBITDA for the three months ended March 31, 2022 and 2021 excludes $0.2 million net income and $3.2 million net loss, respectively, from sold hotels. Pro forma Hotel EBITDA for the three months ended March 31, 2021 includes $0.4 million net loss from acquired hotels.

Operational Update

Positive momentum in lodging fundamentals accelerated throughout the first quarter with broad growth across all segments and markets. The Company’s urban markets benefited from improvements in both business transient and group demand, which accelerated as most remaining COVID restrictions were eliminated and the pace of office reopenings increased, which allowed weekday results to strengthen and citywide events to be well-attended. The Company’s urban markets also continued to benefit from robust leisure demand. These improving trends enabled March to achieve pro forma RevPAR of $135.01 and pro forma Hotel EBITDA of $35.6 million, which represented approximately 84% and 78% of 2019 levels, respectively, achieving new highs of the pandemic. This positive momentum from the first quarter has continued into the second quarter.

Dispositions

During the first quarter, the Company sold the Marriott Denver Airport at Gateway Park, and subsequent to quarter end, sold the SpringHill Suites Denver North Westminster, for total consideration of approximately $50.0 million. These hotels were sold on an opportunistic basis at an aggregate multiple of approximately 13.4x 2019 Hotel EBITDA inclusive of brand required capital expenditure programs. The Company’s Denver footprint now consists of four hotels in the submarkets of Cherry Creek, Denver South and Boulder.

Subsequent Events

On April 29, 2022, the Company's Board of Trustees authorized a $250.0 million share repurchase program.

Balance Sheet

As of March 31, 2022, the Company had approximately $1.1 billion of total liquidity comprising approximately $479.0 million of unrestricted cash, $600.0 million available under its revolving credit facility ("Revolver"), and $2.2 billion of debt outstanding. In February, the Company repaid the remaining $200.0 million outstanding on its Revolver and currently has the full $600.0 million of available capacity. In April 2022, the Company exercised the first extension option on a $200.0 million mortgage loan to extend the maturity to April 2023. The Company has no debt maturities until 2023.

In April, the Company amended its corporate credit facilities to allow for share repurchases during the covenant waiver period. The Company expects to exit the covenant waiver period after the second quarter.

Dividends

The Company’s Board of Trustees declared a quarterly cash dividend of $0.01 per common share of beneficial interest of the Company in the first quarter. The dividend was paid on April 15, 2022 to shareholders of record as of March 31, 2022.

The Company's Board of Trustees declared a quarterly cash dividend of $0.4875 on the Company’s Series A Preferred Shares. The dividend was paid on April 29, 2022 to shareholders of record as of March 31, 2022.

Earnings Call

The Company will conduct its quarterly analyst and investor conference call on May 5, 2022 at 10:00 a.m. (Eastern Time). The conference call can be accessed by dialing (877) 407-3982 or (201) 493-6780 for international participants and requesting RLJ Lodging Trust’s first 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 pro forma 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, high-margin, focused-service and compact full-service hotels. The Company's portfolio currently consists of 95 hotels with approximately 21,100 rooms, located in 22 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, measures being taken in response to the COVID-19 pandemic, and the impact of the COVID-19 pandemic on our business, 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 the Company’s actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: the current global economic uncertainty and a worsening of global economic conditions or low levels of economic growth; the duration and scope of the COVID-19 pandemic and its impact on the demand for travel and on levels of consumer confidence; actions governments, businesses and individuals take in response to the pandemic, the impact of the pandemic on global and regional economies, travel, and economic activity; public adoption rates of COVID-19 vaccines, including booster shots, and their effectiveness against emerging variants of COVID-19, such as the Delta and Omicron variants, and the pace of recovery when the COVID-19 pandemic subsides; increased direct and indirect competition, changes in government regulations or accounting rules; changes in local, national and global real estate conditions; declines in the lodging industry; seasonality of the lodging industry; risks related to natural disasters, such as earthquakes and hurricanes; hostilities, including international military conflicts, future terrorist attacks or fear of hostilities that affect travel, public health and/or economic activity and epidemics and/or pandemics, including COVID-19; the Company’s ability to obtain lines of credit or permanent financing on satisfactory terms; changes in interest rates; access to capital through offerings of the Company’s common and preferred shares of beneficial interest, or debt; the Company’s ability to identify suitable acquisitions; the Company’s ability to close on identified acquisitions and integrate those businesses; and inaccuracies of the Company’s accounting estimates. Moreover, investors are cautioned to interpret many of the risks identified under the section entitled "Risk Factors" in the Company's Form 10-K for the year ended December 31, 2021, as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. Given these uncertainties, undue reliance should not be placed on such statements. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance on these forward looking statements and urges investors to carefully review the disclosures the Company makes concerning risks and uncertainties in the sections entitled “Risk Factors,” “Forward- Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report, as well as risks, uncertainties and other factors discussed in other documents filed by the Company with the Securities and Exchange Commission.

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.

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) provision for income taxes, including income taxes applicable to sales of assets; and (3) depreciation and amortization. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions.

In addition to EBITDA, the Company presents EBITDAre in accordance with NAREIT guidelines, which defines EBITDAre as net income or loss (calculated in accordance with GAAP) excluding interest expense, income tax expense, depreciation and amortization expense, gains or losses from sales of real estate, impairment, and adjustments for unconsolidated partnerships and joint ventures. The Company believes that the presentation of EBITDAre provides useful information to investors regarding the Company's operating performance and can facilitate comparisons of operating performance between periods and between REITs.

Adjustments to FFO and EBITDA

The Company adjusts FFO, EBITDA, and EBITDAre for certain items that the Company considers either outside the normal course of operations or extraordinary. 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, is beneficial to an investor’s understanding of its 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 taxes, and non-cash 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.

Pro forma Consolidated Hotel EBITDA includes prior ownership information provided by the sellers of the hotels for periods prior to our acquisition of the hotels, which has not been audited and excludes results from sold hotels as applicable. Pro forma Hotel EBITDA and pro forma Hotel EBITDA Margin exclude the results of non-comparable hotels that were under renovation or not open for the entirety of the comparable periods. The following is a summary of pro forma hotel adjustments:

Pro forma adjustments: Acquired hotels

For the three months ended March 31, 2022 and 2021, pro forma 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

Pro forma adjustments: Sold hotels

For the three months ended March 31, 2022 and 2021, pro forma 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)

 
 

 

March 31,

2022

 

December 31, 2021

Assets

 

 

 

Investment in hotel properties, net

$

4,155,048

 

 

$

4,219,116

 

Investment in unconsolidated joint ventures

 

6,644

 

 

 

6,522

 

Cash and cash equivalents

 

479,047

 

 

 

665,341

 

Restricted cash reserves

 

43,254

 

 

 

48,528

 

Hotel and other receivables, net of allowance of $322 and $274, respectively

 

37,876

 

 

 

31,091

 

Lease right-of-use assets

 

143,606

 

 

 

144,988

 

Prepaid expense and other assets

 

56,182

 

 

 

33,390

 

Total assets

$

4,921,657

 

 

$

5,148,976

 

Liabilities and Equity

 

 

 

Debt, net

$

2,210,725

 

 

$

2,409,438

 

Accounts payable and other liabilities

 

129,962

 

 

 

155,136

 

Advance deposits and deferred revenue

 

21,434

 

 

 

20,047

 

Lease liabilities

 

122,326

 

 

 

123,031

 

Accrued interest

 

8,210

 

 

 

19,110

 

Distributions payable

 

8,208

 

 

 

8,347

 

Total liabilities

 

2,500,865

 

 

 

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 March 31, 2022 and December 31, 2021

 

366,936

 

 

 

366,936

 

Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 166,843,586 and 166,503,062 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively

 

1,668

 

 

 

1,665

 

Additional paid-in capital

 

3,097,166

 

 

 

3,092,883

 

Distributions in excess of net earnings

 

(1,069,769

)

 

 

(1,046,739

)

Accumulated other comprehensive income (loss)

 

11,214

 

 

 

(17,113

)

Total shareholders’ equity

 

2,407,215

 

 

 

2,397,632

 

Noncontrolling interests:

 

 

 

Noncontrolling interest in the Operating Partnership

 

6,209

 

 

 

6,316

 

Noncontrolling interest in consolidated joint ventures

 

7,368

 

 

 

9,919

 

Total noncontrolling interest

 

13,577

 

 

 

16,235

 

Total equity

 

2,420,792

 

 

 

2,413,867

 

Total liabilities and equity

$

4,921,657

 

 

$

5,148,976

 

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

RLJ Lodging Trust

Consolidated Statements of Operations

(Amounts in thousands, except share and per share data)

(unaudited)

 

For the three months ended March 31,

 

 

2022

 

 

 

2021

 

Revenues

 

 

 

Operating revenues

 

 

 

Room revenue

$

205,779

 

 

$

102,772

 

Food and beverage revenue

 

20,901

 

 

 

6,242

 

Other revenue

 

16,219

 

 

 

10,538

 

Total revenues

 

242,899

 

 

 

119,552

 

Expenses

 

 

 

Operating expenses

 

 

 

Room expense

 

53,828

 

 

 

29,427

 

Food and beverage expense

 

16,169

 

 

 

4,556

 

Management and franchise fee expense

 

20,388

 

 

 

5,361

 

Other operating expense

 

68,654

 

 

 

49,120

 

Total property operating expenses

 

159,039

 

 

 

88,464

 

Depreciation and amortization

 

46,865

 

 

 

46,943

 

Impairment losses

 

 

 

 

5,946

 

Property tax, insurance and other

 

22,513

 

 

 

20,081

 

General and administrative

 

14,134

 

 

 

10,800

 

Transaction costs

 

62

 

 

 

60

 

Total operating expenses

 

242,613

 

 

 

172,294

 

Other income, net

 

7,285

 

 

 

465

 

Interest income

 

172

 

 

 

384

 

Interest expense

 

(24,561

)

 

 

(27,895

)

Gain on sale of hotel properties, net

 

1,417

 

 

 

1,083

 

Loss before equity in income (loss) from unconsolidated joint ventures

 

(15,401

)

 

 

(78,705

)

Equity in income (loss) from unconsolidated joint ventures

 

122

 

 

 

(298

)

Loss before income tax expense

 

(15,279

)

 

 

(79,003

)

Income tax expense

 

(190

)

 

 

(114

)

Net loss

 

(15,469

)

 

 

(79,117

)

Net loss attributable to noncontrolling interests:

 

 

 

Noncontrolling interest in the Operating Partnership

 

104

 

 

 

396

 

Noncontrolling interest in consolidated joint ventures

 

118

 

 

 

736

 

Net loss attributable to RLJ

 

(15,247

)

 

 

(77,985

)

Preferred dividends

 

(6,279

)

 

 

(6,279

)

Net loss attributable to common shareholders

$

(21,526

)

 

$

(84,264

)

Basic and diluted per common share data:

 

 

 

Net loss per share attributable to common shareholders

$

(0.13

)

 

$

(0.51

)

Weighted-average number of common shares

 

164,179,661

 

 

 

163,826,009

 

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

 

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 March 31,

 

 

2022

 

 

 

2021

 

Net loss

$

(15,469

)

 

$

(79,117

)

Preferred dividends

 

(6,279

)

 

 

(6,279

)

Depreciation and amortization

 

46,865

 

 

 

46,943

 

Gain on sale of hotel properties, net

 

(1,417

)

 

 

(1,083

)

Impairment losses

 

 

 

 

5,946

 

Noncontrolling interest in consolidated joint ventures

 

118

 

 

 

736

 

Adjustments related to consolidated joint ventures (1)

 

(49

)

 

 

(75

)

Adjustments related to unconsolidated joint ventures (2)

 

295

 

 

 

294

 

FFO

 

24,064

 

 

 

(32,635

)

Transaction costs

 

62

 

 

 

60

 

Amortization of share-based compensation

 

5,185

 

 

 

2,752

 

Non-cash income tax expense

 

(135

)

 

 

 

Derivative gains in accumulated other comprehensive income (loss) reclassified to earnings (3)

 

(5,866

)

 

 

 

Other expenses (4)

 

584

 

 

 

56

 

Adjusted FFO

$

23,894

 

 

$

(29,767

)

 

 

 

 

Adjusted FFO per common share and unit-basic

$

0.14

 

 

$

(0.18

)

Adjusted FFO per common share and unit-diluted

$

0.14

 

 

$

(0.18

)

 

 

 

 

Basic weighted-average common shares and units outstanding (5)

 

164,951

 

 

 

164,598

 

Diluted weighted-average common shares and units outstanding (5)

 

165,516

 

 

 

164,598

 

Note:

(1) Includes depreciation and amortization expense 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) Reclassification of interest rate swap gains 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 $0.3 million of non-cash interest expense related to discontinued interest rate hedges during the three months ended March 31, 2022.

(5) Includes 0.8 million weighted-average operating partnership units for the three month periods ended March 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 March 31,

 

 

2022

 

 

 

2021

 

Net loss

$

(15,469

)

 

$

(79,117

)

Depreciation and amortization

 

46,865

 

 

 

46,943

 

Interest expense, net of interest income

 

24,389

 

 

 

27,511

 

Income tax expense

 

190

 

 

 

114

 

Adjustments related to unconsolidated joint ventures (1)

 

407

 

 

 

410

 

EBITDA

 

56,382

 

 

 

(4,139

)

Gain on sale of hotel properties, net

 

(1,417

)

 

 

(1,083

)

Impairment losses

 

 

 

 

5,946

 

EBITDAre

 

54,965

 

 

 

724

 

Transaction costs

 

62

 

 

 

60

 

Amortization of share-based compensation

 

5,185

 

 

 

2,752

 

Derivative losses in accumulated other comprehensive income (loss) reclassified to earnings (2)

 

(5,866

)

 

 

 

Other expenses (3)

 

248

 

 

 

56

 

Adjusted EBITDA

 

54,594

 

 

 

3,592

 

General and administrative (4)

 

8,949

 

 

 

8,048

 

Other corporate adjustments (5)

 

(166

)

 

 

513

 

Consolidated Hotel EBITDA

 

63,377

 

 

 

12,153

 

Pro forma adjustments - (income) loss from sold hotels

 

(191

)

 

 

3,229

 

Pro forma adjustments - loss from acquired hotels

 

 

 

 

(378

)

Pro forma Hotel EBITDA

$

63,186

 

 

$

15,004

 

Note: Pro forma statistics reflect the Company's 95 hotel portfolio as of May 4, 2022.

(1) Includes our ownership interest in the interest, depreciation, and amortization expense of the unconsolidated joint ventures.

(2) Reclassification of interest rate swap gains from accumulated other comprehensive income (loss) to earnings for discontinued interest rate hedges.

(3) Represents expenses and income outside of the normal course of operations.

(4) Excludes amortization of share-based compensation reflected in Adjusted EBITDA.

(5) 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)

 

Pro forma Hotel EBITDA Margin

 

For the three months ended March 31,

 

 

2022

 

 

 

2021

 

Total revenue

$

242,899

 

 

$

119,552

 

Pro forma adjustments - revenue from sold hotels

 

(2,220

)

 

 

(4,217

)

Pro forma adjustments - revenue from prior ownership of acquired hotels

 

 

 

 

1,865

 

Other corporate adjustments / non-hotel revenue

 

(15

)

 

 

(21

)

Pro forma Hotel Revenue

$

240,664

 

 

$

117,179

 

 

 

 

 

Pro forma Hotel EBITDA

$

63,186

 

 

$

15,004

 

 

 

 

 

Pro forma Hotel EBITDA Margin

 

26.3

%

 

 

12.8

%

Note: Pro forma statistics reflect the Company's 95 hotel portfolio as of May 4, 2022.

 

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

March 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

 

3.30%

 

 

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

 

 

 

 

 

 

3.25%

 

$

406,000

 

 

 

 

 

 

 

 

 

 

Corporate Debt

 

 

 

 

 

 

 

 

 

Revolver (4)

4

 

May 2025

 

Floating

 

 

$

$150 Million Term Loan Maturing 2024

2

 

Jun 2024

 

Floating

 

4.18%

 

 

100,000

$400 Million Term Loan Maturing 2023

5

 

Jan 2023

 

Floating

 

4.69%

 

 

52,261

$400 Million Term Loan Maturing 2024

5

 

Jan 2024

 

Floating

 

4.69%

 

 

151,683

$225 Million Term Loan Maturing 2023

5

 

Jan 2023

 

Floating

 

4.69%

 

 

41,745

$225 Million Term Loan Maturing 2024

5

 

Jan 2024

 

Floating

 

4.03%

 

 

72,973

$400 Million Term Loan Maturing 2025

5

 

May 2025

 

Floating

 

4.00%

 

 

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

 

 

 

 

 

 

4.04%

 

$

1,818,662

 

 

 

 

 

 

 

 

 

 

Weighted Average / Total

 

 

 

 

 

 

3.89%

 

$

2,224,662

Note:

(1) The floating interest rate is hedged with an interest rate swap.

(2) Interest rates as of March 31, 2022.

(3) Excludes the impact of fair value adjustments and deferred financing costs.

(4) As of March 31, 2022, there was $600.0 million of borrowing capacity on the Revolver, which is charged an unused commitment fee of 0.25% annually.

 

Contacts

Sean M. Mahoney, Executive Vice President and Chief Financial Officer – (301) 280-7774

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