-- Sold two hotels in the 2009 fourth quarter. Divested eight properties
for the full year for net proceeds of $17.2 million.
-- Classified 18 properties as held for sale in the 2009 fourth quarter,
for a total of 19 properties held for sale as of December 31.
-- Refinanced a $9.0 million mortgage loan and extended the term of a
second $9.0 million loan.
-- Reduced total liabilities to $199.9 million at the end of fiscal 2009
from $216.5 million at the end of fiscal 2008.
-- Reorganized the senior management team, appointed a new chairman, and
expanded an existing executive position to include COO duties.
"During the past year, the new management team reviewed all aspects of the
company and its growth strategies," said Kelly A. Walters, Supertel
president and CEO. "A key part of that process was finalized in the fourth
quarter when we completed a comprehensive review of our hotel portfolio.
We have updated our strategy to not only reflect today's changed economic
conditions but also how we will evaluate our hotels and their value based
on new and more stringent criteria. The review of each property now
includes debt service capability, hold period, estimated return on
investment, and local market conditions.
"Implementing this updated strategy has created impairment issues and
short-term losses, but we believe it will result in a stronger, more
resilient real estate portfolio that will be less susceptible to the value
swings that occur in the hotel industry," he said.
Fourth Quarter Results
The company had a net loss of $(25.4) million for the 2009 fourth quarter,
compared to net earnings of $3.6 million for the same 2008 period. The
2009 fourth quarter loss includes a $23.3 million non-cash impairment
charge. Additionally, the 2008 fourth quarter resulted in net income due
to a $5.6 million gain being recognized on the sale of two hotels in the
fourth quarter, partially offset by a loss from continuing operations of
$(0.7) million and a $(1.3) million loss from discontinued operations. All
income and expenses related to sold hotels are classified as discontinued
operations.
After recognition of non-controlling interest and dividends for preferred
stock shareholders, the net loss attributable to common shareholders was
$(25.7) million, or $(1.17) per diluted share, for the 2009 fourth quarter,
compared with net earnings available to common shareholders of $3.0
million, or $0.14 per diluted share, for the like 2008 period.
Fourth quarter 2009 revenues from continuing operations decreased $2.3
million, or 10.5 percent, primarily due to the economic downturn. The
company's 59 continuing operations economy hotels reported a 12.2 percent
decrease in revenue per available room (RevPAR) to $24.34 in the 2009
fourth quarter, caused by a 9.8 percent drop in occupancy to 51.6 percent
and a 2.7 percent decrease in average daily rate (ADR) to $47.12. The
company's eight continuing operations extended-stay hotels reported a 6.5
percent increase in RevPAR to $15.62, as a result of an 11.4 percent
increase in occupancy to 63.5 percent, offset by a 4.4 percent decline in
ADR to $24.60.
Fourth quarter RevPAR for the company's 29 continuing operations midscale
without food and beverage hotels decreased 11.6 percent to $32.73, the
result of a 7.6 percent drop in occupancy to 49.6 percent, and a 4.2
percent decrease in ADR to $66.03.
The portfolio of 96 hotels in continuing operations in the 2009 fourth
quarter, compared with the same period a year earlier, reported a 5.9
percent decline in occupancy, and a 4.8 percent decrease in ADR, for a 10.5
percent decline in RevPAR, compared to an 11.7 percent RevPAR decline for
the industry, as reported by Smith Travel Research.
"It remains a very difficult operating environment," Walters said. "We
believe the past two years have been the most challenging from an
operations standpoint since the Great Depression. As the year progressed,
the rate of decline slowed, a trend that continues into the 2010 first
quarter."
Hotel and property operations expenses from continuing operations for the
2009 fourth quarter declined $0.5 million, or 3.1 percent. The decrease
primarily results from cost-saving measures implemented to compensate for
lower occupancy.
Interest expense from continuing operations remained essentially unchanged
at $2.6 million for the quarter. Depreciation and amortization expense
from continuing operations remained flat at $3.1 million.
Property operating income (POI) is calculated as revenue from room rentals
and other hotel services less hotel and property operations expenses. For
the 2009 fourth quarter, POI from continuing operations decreased $1.8
million, or 32.9 percent, compared to the year-ago period. This decrease
resulted from the decline in revenue, slightly offset by reduced expenses.
General and administration expense from continuing operations for the 2009
fourth quarter dropped $0.1 million, or 9.5 percent, compared to the
year-ago period. The decrease is related primarily to reduction in
professional fees, partially offset by an increase in payroll expense due
to severance pay.
Disposition Program
During 2009, the company sold eight hotels for approximately $17.2 million,
resulting in a gain on sale of approximately $2.5 million, which was used
to strengthen the balance sheet by reducing debt. The properties sold are:
-- Super 8 Charles City, IA 43 rooms -- Holiday Inn Express Gettysburg, PA 51 rooms -- Masters Inn Kissimmee, FL 116 rooms -- Comfort Inn Ellsworth, ME 63 rooms -- Super 8 Anamosa, IA 35 rooms -- Comfort Inn Dahlgren, VA 59 rooms -- Masters Inn Orlando, FL 120 rooms -- Masters Inn Kissimmee, FL 187 rooms"The sale of these assets and the 18 properties we have currently classified as held for sale will strategically strengthen our portfolio," Walters said. "A key component of our new strategy is to reduce our weighting in the economy sector. This segment has relatively low barriers to new competition and has small owner/operators whose cost structure often is substantially lower than the large owner/operator cost structure. "Economy hotels will remain an important part of our portfolio," he noted. "However, over time, we intend to balance our portfolio with more properties in the midscale without food and beverage segment, which historically has been less volatile for us, with more moderate declines in the down-part of the economic cycle and greater upside potential during the up-portion of the economic cycle." Balance Sheet The company continued to improve its balance sheet in 2009 through dispositions, debt repayment, debt extensions and refinancings. In the second quarter, the company refinanced a $9.0 million, 8.4 percent loan scheduled to mature in November 2009. The loan was refinanced using a $10 million, 5.5 percent facility due in May 2012. A second $9.0 million loan was extended and currently is due in August 2010. "We are negotiating with the lender and with other credit sources to refinance this loan, which is our principal debt maturing in 2010. Sales of hotels in 2010 are also expected to reduce the amount of the loan we ultimately refinance," Walters said. The company as of December 31, 2009 has $164.5 million in outstanding debt on hotels in continuing operations with an average term of 4.8 years and weighted average annual interest rate of 5.98 percent. Dividends The company did not declare a common stock dividend for the 2009 fourth quarter or full year. The company will monitor requirements to maintain its REIT status and will regularly evaluate the dividend policy. Outlook "The economy is showing signs of stabilizing, and the rate of decline in RevPAR appears to be slowing," Walters said. "The pace of declining occupancy is decelerating but getting traction in room rates remains a challenge. We continue to work closely with our management companies to enhance revenues while stringently controlling costs. We not only are looking at today, but at how we can continue to hold costs without sacrificing the guest experience when the economy begins to gain momentum. Our foremost priorities in 2010 are preserving and generating capital sufficient to fund our liquidity needs. "We are finalizing our strategic plan and intend to provide greater detail in the near future," he noted. "Our senior management team is in harmony with a more clarified vision of the future, and we are taking the appropriate steps to optimize our opportunities as the economy rebounds." About Supertel Hospitality, Inc. As of March 31, 2010, Supertel Hospitality, Inc. (
As of
December 31, December 31,
2009 2008
-------------- --------------
ASSETS
Investments in hotel properties $ 319,770 $ 330,271
Less accumulated depreciation 86,069 77,028
-------------- --------------
233,701 253,243
Cash and cash equivalents 428 712
Accounts receivable, net of allowance for
doubtful accounts of $95 and $107 2,043 2,401
Prepaid expenses and other assets 4,779 2,903
Deferred financing costs, net 1,414 1,580
Investment in hotel properties held for
sale 32,030 60,638
-------------- --------------
$ 274,395 $ 321,477
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable, accrued expenses and
other liabilities $ 10,340 $ 13,697
Debt related to hotel properties held for
for sale 24,975 37,022
Long-term debt 164,538 165,784
-------------- --------------
199,853 216,503
-------------- --------------
Redeemable noncontrolling interest in
consolidated partnership,
at redemption value 511 1,778
Redeemable preferred stock
Series B, 800,000 shares authorized; $.01
par value, 332,500 shares outstanding,
liquidation preference of $8,312 7,662 7,662
SHAREHOLDERS' EQUITY
Preferred stock, 40,000,000 shares authorized;
Series A, 2,500,000 shares authorized,
$.01 par value, 803,270 shares
outstanding, liquidation preference
of $8,033 8 8
Common stock, $.01 par value, 100,000,000
shares authorized; 22,002,322
and 20,924,677 shares outstanding 220 209
Additional paid-in capital 120,153 112,804
Distributions in excess of retained
earnings (54,420) (25,551)
-------------- --------------
Total shareholder equity 65,961 87,470
Noncontrolling interest in consolidated
partnership, redemption value
$237 and $2,101 408 8,064
-------------- --------------
Total Equity 66,369 95,534
-------------- --------------
$ 274,395 $ 321,477
============== ==============
The following table sets forth the Company's results of operations for the
three and twelve
months ended December 31, 2009 and 2008, respectively.
(in thousands, except per share data)
Three months Twelve months
ended December 31, ended December 31,
-------------------- --------------------
Unaudited Unaudited
2009 2008 2009 2008
--------- --------- --------- ---------
REVENUES
Room rentals and other hotel
services $ 19,622 $ 21,933 $ 88,970 $ 99,256
--------- --------- --------- ---------
EXPENSES
Hotel and property operations 15,963 16,479 67,360 71,132
Depreciation and amortization 3,105 3,115 12,457 12,067
General and administrative 675 746 3,813 3,696
--------- --------- --------- ---------
19,743 20,340 83,630 86,895
--------- --------- --------- ---------
EARNINGS BEFORE NET GAINS
(LOSSES) ON DISPOSITIONS
OF ASSETS, OTHER INCOME,
INTEREST EXPENSE, IMPAIRMENT
LOSSES, NONCONTROLLING
INTEREST AND INCOME TAX
BENEFIT (121) 1,593 5,340 12,361
Net gains (losses) on
dispositions of assets (67) - (146) 1
Other income 34 38 134 129
Interest expense (2,620) (2,684) (10,414) (10,738)
Impairment losses (10,872) - (10,872) -
EARNINGS (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME
TAXES AND NONCONTROLLING
INTEREST (13,646) (1,053) (15,958) 1,753
Income tax benefit 12 373 1,047 507
--------- --------- --------- ---------
EARNINGS (LOSS) FROM CONTINUING
OPERATIONS (13,634) (680) (14,911) 2,260
Earnings (loss) from
discontinued operations (11,800) 4,265 (12,614) 4,999
--------- --------- --------- ---------
NET EARNINGS (LOSS) (25,434) 3,585 (27,525) 7,259
Noncontrolling interest income
(expense) 150 (247) 130 (603)
--------- --------- --------- ---------
NET INCOME (LOSS) ATTRIBUTABLE
TO CONTROLLING INTERESTS (25,284) 3,338 (27,395) 6,656
Preferred stock dividends (368) (369) (1,474) (1,160)
NET EARNINGS (LOSS)
ATTRIBUTABLE TO --------- --------- --------- ---------
COMMON SHAREHOLDERS $ (25,652) $ 2,969 $ (28,869) $ 5,496
========= ========= ========= =========
NET EARNINGS (LOSS) PER COMMON
SHARE - BASIC AND DILUTED
EPS from continuing operations $ (0.63) $ (0.05) $ (0.75) $ 0.04
========= ========= ========= =========
EPS from discontinued
operations $ (0.54) $ 0.19 $ (0.58) $ 0.22
========= ========= ========= =========
EPS basic and diluted $ (1.17) $ 0.14 $ (1.33) $ 0.26
========= ========= ========= =========
AMOUNTS ATTRIBUTABLE TO COMMON
SHAREHOLDERS
Income from continuing
operations, net of tax $ (13,932) $ (1,036) $ (16,386) $ 826
Discontinued operations, net of
tax (11,720) 4,005 (12,483) 4,670
--------- --------- --------- ---------
Net earnings (loss) $ (25,652) $ 2,969 $ (28,869) $ 5,496
========= ========= ========= =========
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
In thousands, except per share data:
Three months Twelve months
ended December 31, ended December 31,
-------------------- --------------------
unaudited unaudited
2009 2008 2009 2008
--------- --------- --------- ---------
Weighted average number of
shares outstanding for EPS
basic 21,956 20,924 21,647 20,840
diluted 21,956 20,924 21,647 20,840
Weighted average number of
shares outstanding for FFO per
share
basic 21,956 20,924 21,647 20,840
diluted 21,956 20,924 21,647 22,346
Reconciliation of Weighted
average number of shares for
EPS diluted to FFO per share
diluted:
EPS diluted shares 21,956 20,924 21,647 20,840
Common stock issuable upon
exercise or conversion of:
Series A Preferred Stock - - - 1,506
--------- --------- --------- ---------
FFO per share diluted shares 21,956 20,924 21,647 22,346
========= ========= ========= =========
Reconciliation of net earnings
(loss) to FFO-Unaudited
Net earnings (loss) available
to common shareholders $ (25,652) $ 2,969 $ (28,869) $ 5,496
Depreciation and amortization,
including disc ops 3,370 3,837 14,241 14,982
Net (gains) losses on
disposition of assets (1,217) (5,583) (2,264) (5,581)
--------- --------- --------- ---------
FFO $ (23,499) $ 1,223 $ (16,892) $ 14,897
Impairment 23,305 250 24,148 250
Adjusted FFO (without
impairment expense) $ (194) $ 1,473 $ 7,256 $ 15,147
========= ========= ========= =========
FFO per share - basic $ (1.07) $ 0.06 $ (0.78) $ 0.71
========= ========= ========= =========
Adjusted FFO per share (without
impairment expense) - basic $ (0.01) $ 0.07 $ 0.34 $ 0.73
========= ========= ========= =========
FFO per share - diluted $ (1.07) $ 0.06 $ (0.78) $ 0.70
========= ========= ========= =========
Adjusted FFO per share (without
impairment expense) - diluted $ (0.01) $ 0.07 $ 0.34 $ 0.71
========= ========= ========= =========
FFO is a non-GAAP financial measure. We consider FFO to be a market
accepted measure of an equity REIT's operating performance, which is
necessary, along with net earnings (loss), for an understanding of our
operating results. FFO, as defined under the National Association of Real
Estate Investment Trusts (NAREIT) standards, consists of net income
computed in accordance with GAAP, excluding gains (or losses) from sales of
real estate assets, plus depreciation and amortization of real estate
assets. We believe our method of calculating FFO complies with the NAREIT
definition. FFO does not represent amounts available for management's
discretionary use because of needed capital replacement or expansion, debt
service obligations, or other commitments and uncertainties. FFO should
not be considered as an alternative to net income (loss) (computed in
accordance with GAAP) as an indicator of our liquidity, nor is it
indicative of funds available to fund our cash needs, including our ability
to pay dividends or make distributions. All REITs do not calculate FFO in
the same manner; therefore, our calculation may not be the same as the
calculation of FFO for similar REITs.
We use FFO as a performance measure to facilitate a periodic evaluation of
our operating results relative to those of our peers, who, like us, are
typically members of NAREIT. We consider FFO a useful additional measure
of performance for an equity REIT because it facilitates an understanding
of the operating performance of our properties without giving effect to
real estate depreciation and amortization, which assume that the value of
real estate assets diminishes predictably over time. Since real estate
values have historically risen or fallen with market conditions, we believe
that FFO provides a meaningful indication of our performance.
We view the impairment charges as a nonrecurring expense, and we have
excluded the impairment charges in calculating Adjusted FFO.
Three months Twelve months
ended December 31, ended December 31,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
(Unaudited)(Unaudited)
RECONCILIATION OF NET EARNINGS
(LOSS) TO ADJUSTED EBITDA
Net earnings (loss)
available to common
shareholders $ (25,652) $ 2,969 $ (28,869) $ 5,496
Interest expense,
including disc ops 3,232 3,376 13,015 13,848
Income tax benefit,
including disc ops (141) (117) (1,647) (305)
Depreciation and
amortization, including
disc ops 3,370 3,837 14,241 14,982
--------- --------- --------- ---------
EBITDA (19,191) 10,065 (3,260) 34,021
Noncontrolling interest (150) 247 (130) 603
Preferred stock dividend 368 369 1,474 1,160
--------- --------- --------- ---------
Adjusted EBITDA $ (18,973) $ 10,681 $ (1,916) $ 35,784
========= ========= ========= =========
Adjusted EBITDA is a financial measure that is not calculated in accordance
with accounting principles generally accepted in the United States of
America ("GAAP"). We calculate Adjusted EBITDA by adding back to net
earnings (loss) available to common shareholders certain non-operating
expenses and non-cash charges which are based on historical cost accounting
and we believe may be of limited significance in evaluating current
performance. We believe these adjustments can help eliminate the accounting
effects of depreciation and amortization and financing decisions and
facilitate comparisons of core operating profitability between periods,
even though Adjusted EBITDA also does not represent an amount that accrues
directly to common shareholders. In calculating Adjusted EBITDA, we also
add back preferred stock dividends and noncontrolling interests, which are
cash charges.
Adjusted EBITDA doesn't represent cash generated from operating activities
determined by GAAP and should not be considered as an alternative to net
income, cash flow from operations or any other operating performance
measure prescribed by GAAP. Adjusted EBITDA is not a measure of our
liquidity, nor is Adjusted EBITDA indicative of funds available to fund our
cash needs, including our ability to make cash distributions. Neither does
the measurement reflect cash expenditures for long-term assets and other
items that have been and will be incurred. Adjusted EBITDA may include
funds that may not be available for management's discretionary use due to
functional requirements to conserve funds for capital expenditures,
property acquisitions, and other commitments and uncertainties. To
compensate for this, management considers the impact of these excluded
items to the extent they are material to operating decisions or the
evaluation of our operating performance. Adjusted EBITDA, as presented, may
not be comparable to similarly titled measures of other companies.
The following table sets forth the operations of the Company's same store
hotel properties for the three and twelve months ended December 31, 2009
and 2008, respectively. This presentation includes non-GAAP financial
measures. The Company believes that the presentation of hotel property
operating income (POI) is helpful to investors, and represents a more
useful description of its core operations, as it better communicates the
comparability of its hotels' operating results.
Three months Twelve months
ended December 31, ended December 31,
------------------------ ------------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
Same Store: * (Unaudited) (Unaudited)
Revenue per
available room
(RevPAR):
Midscale w/o
F&B ** $ 32.73 $ 37.01 $ 38.00 $ 43.49
Economy $ 24.34 $ 27.71 $ 28.19 $ 31.03
Extended Stay $ 15.62 $ 14.67 $ 15.58 $ 16.18
----------- ----------- ----------- -----------
Total $ 25.31 $ 28.29 $ 28.96 $ 32.20
=========== =========== =========== ===========
Average daily room
rate (ADR):
Midscale w/o
F&B ** $ 66.03 $ 68.94 $ 67.78 $ 71.17
Economy $ 47.12 $ 48.43 $ 48.83 $ 49.48
Extended Stay $ 24.60 $ 25.73 $ 24.78 $ 25.30
----------- ----------- ----------- -----------
Total $ 47.88 $ 50.31 $ 49.90 $ 51.54
=========== =========== =========== ===========
Occupancy
percentage:
Midscale w/o
F&B ** 49.6% 53.7% 56.1% 61.1%
Economy 51.6% 57.2% 57.7% 62.7%
Extended Stay 63.5% 57.0% 62.9% 63.9%
----------- ----------- ----------- -----------
Total 52.9% 56.2% 58.0% 62.5%
=========== =========== =========== ===========
Three months Twelve months
ended December 31, ended December 31,
------------------------ ------------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Total Hotels:
Revenue per available
room (RevPAR): $ 25.31 $ 28.29 $ 28.96 $ 32.20
Average daily room
rate (ADR): $ 47.88 $ 50.31 $ 49.90 $ 51.54
Occupancy
percentage: 52.9% 56.2% 58.0% 62.5%
Revenue from room
rentals and other
hotel services
consists of:
Room rental revenue $ 18,995 $ 21,245 $ 86,239 $ 96,258
Telephone revenue 73 67 299 319
Other hotel service
revenues 554 621 2,432 2,679
----------- ----------- ----------- -----------
Total revenue from room
rentals and other
hotel services $ 19,622 $ 21,933 $ 88,970 $ 99,256
=========== =========== =========== ===========
Room rentals and other
hotel services
Total room rental and
other hotel services $ 19,622 $ 21,933 $ 88,970 $ 99,256
=========== =========== =========== ===========
Hotel and property
operations expense
Total hotel and
property operations
expense $ 15,963 $ 16,479 $ 67,360 $ 71,132
=========== =========== =========== ===========
Property Operating
Income ("POI")
Total property
operating income $ 3,659 $ 5,454 $ 21,610 $ 28,124
=========== =========== =========== ===========
POI as a percentage of
revenue from room
rentals and other
hotel services
Total POI as a
percentage of
revenue 18.6% 24.9% 24.3% 28.3%
=========== =========== =========== ===========
* Same Store reflects 96 hotels in continuing operations for the three
months and year to date ended December 31, 2009 and 2008.
** "w/o F & B" indicates without food and beverage.
RECONCILIATION OF NET
EARNINGS (LOSS) TO POI Three months Twelve months
ended December 31, ended December 31,
------------------------ ------------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Net earnings (loss) $ (25,434) $ 3,585 $ (27,525) $ 7,259
Depreciation and
amortization,
including disc ops 3,370 3,837 14,241 14,982
Net (gain) loss on
disposition of assets,
including disc ops (1,217) (5,583) (2,264) (5,581)
Other income (34) (38) (134) (129)
Interest expense,
including disc ops 3,232 3,376 13,015 13,848
General and
administrative expense 675 746 3,813 3,696
Impairment losses 23,305 250 24,148 250
Income tax benefit,
including disc ops (141) (117) (1,647) (305)
Room rentals and other
hotel services -
discontinued
operations (2,893) (5,262) (16,524) (25,729)
Hotel and property
operations expense -
discontinued
operations 2,796 4,660 14,487 19,833
----------- ----------- ----------- -----------
POI $ 3,659 $ 5,454 $ 21,610 $ 28,124
=========== =========== =========== ===========
The following table presents our RevPAR, ADR and Occupancy, by region, for
the three months ended December 31, 2009 and 2008, respectively. The
comparisons of same store operations are for 96 hotels in continuing
operations as of October 1, 2008.
Three months ended Three months ended
December 31, 2009 December 31, 2008
------------------------------- -------------------------------
Same Store Room Occup- Room Occup-
Region Count RevPAR ancy ADR Count RevPAR ancy ADR
------- ------- ------ ------- ------- ------- ------ -------
Mountain 214 $ 25.29 53.6% $ 47.15 214 $ 30.44 61.1% $ 49.81
West North
Central 2,670 24.48 52.2% 46.87 2,670 28.84 61.3% 47.04
East North
Central 1,081 32.77 52.0% 63.05 1,081 37.25 58.3% 63.84
Middle
Atlantic/
New England 142 35.01 54.9% 63.82 142 38.48 57.4% 67.01
South
Atlantic 2,772 22.12 53.6% 41.23 2,772 23.90 52.4% 45.59
East South
Central 822 26.64 46.9% 56.81 822 28.88 49.6% 58.22
West South
Central 456 26.48 63.6% 41.62 456 25.19 53.8% 46.82
------- ------- ------ ------- ------- ------- ------ -------
Total Same
Store 8,157 $ 25.31 52.9% $ 47.88 8,157 $ 28.29 56.2% $ 50.31
------- ------- ------ ------- ------- ------- ------ -------
States included in the Regions
Mountain Idaho and Montana
West North Central Iowa, Kansas, Missouri, Nebraska and South Dakota
East North Central Indiana and Wisconsin
Middle Atlantic/
New England Pennsylvania
South Atlantic Delaware, Florida, Georgia, Maryland, North Carolina,
South Carolina, Virginia and West Virginia
East South Central Alabama, Kentucky and Tennessee
West South Central Arkansas and Louisiana
The following table presents our RevPAR, ADR and Occupancy, by region, for
the twelve months ended December 31, 2009 and 2008, respectively. The
comparisons of same store operations are for 96 hotels owned as of January
1, 2008, including nine of the ten hotels purchased on January 2, 2008.
2009 2008
------------------------------- -------------------------------
Same Store Room Occup- Room Occup-
Region Count RevPAR ancy ADR Count RevPAR ancy ADR
------- ------- ------ ------- ------- ------- ------ -------
Mountain 214 $ 31.96 62.1% $ 51.50 214 $ 38.02 73.2% $ 51.97
West North
Central 2,670 28.44 59.4% 47.86 2,670 31.47 65.2% 48.25
East North
Central 1,081 36.25 58.5% 61.96 1,081 41.85 65.3% 64.11
Middle
Atlantic/
New England 142 38.90 58.9% 66.04 142 43.47 64.3% 67.63
South
Atlantic 2,772 25.71 57.8% 44.48 2,772 28.39 60.3% 47.07
East South
Central 822 31.29 53.2% 58.82 822 33.59 55.5% 60.53
West South
Central 456 25.84 56.9% 45.38 456 27.91 59.7% 46.73
------- ------- ------ ------- ------- ------- ------ -------
Total Same
Store
Hotels 8,157 $ 28.96 58.0% $ 49.90 8,157 $ 32.20 62.5% $ 51.54
======= ======= ====== ======= ======= ======= ====== =======
States included in the Regions
Mountain Idaho and Montana
West North Central Iowa, Kansas, Missouri, Nebraska and South Dakota
East North Central Indiana and Wisconsin
Middle Atlantic/
New England Pennsylvania
South Atlantic Delaware, Florida, Georgia, Maryland, North Carolina,
South Carolina, Virginia and West Virginia
East South Central Alabama, Kentucky and Tennessee
West South Central Arkansas and Louisiana
Contact Information: Contact: Mr. Kelly A. Walters President and CEO Ms. Connie Scarpello Sr. Vice President & CFO 402.371.2520 Jerry Daly, Carol McCune Daly Gray (Media Contact) 703.435.6293