SOURCE: Condor Hospitality Trust, Inc.

Condor Hospitality Trust, Inc.

March 24, 2016 17:57 ET

Condor Hospitality Trust Reports 2015 Results

20 Non-Core Hotels Sold | 3 Premium-Branded Hotels Acquired | $30.0 Million Capital Raise [1]

NORFOLK, NE--(Marketwired - March 24, 2016) - Condor Hospitality Trust, Inc. (NASDAQ: CDOR) (the "Company") today announced results for the fourth quarter and year ended December 31, 2015. 

"The Company continued to accelerate the disposition of legacy hotels in 2015 to recycle capital into higher margin, increased quality lodging assets," said Bill Blackham, Condor's Chief Executive Officer. "As this transition evolves, the operating margins have increased from 24.3 percent in 2014 to 26.5 percent in 2015 and we expect further improvement in 2016 as we seek to sell over 20 additional legacy hotels and fully invest the proceeds into hotels that meet our new investment strategy."

2015 Key Accomplishments

Acquisitions: In October 2015, the Company acquired three premium-branded hotels in an off-market transaction for $42.5 million. The properties are representative of the new strategic direction of the Company's portfolio into higher quality, premium-branded select-service properties. The properties include the 116-room SpringHill Suites San Antonio Downtown/Riverwalk, the 142-room Hotel Indigo Hartsfield-Jackson Atlanta International Airport, and the 120-room Courtyard Jacksonville Flagler Center. The assets are performing consistently with the Company's underwriting at the time of acquisition.

Dispositions: In 2015, the Company sold 17 non-core hotels for gross proceeds of $54.7 million. Following the close of the fourth quarter 2015, the Company sold three non-core hotels with an aggregate of 364 rooms for combined gross proceeds of $7.0 million. The Company is currently marketing 14 hotels for sale and expects to generate approximately $11.0 million in cash after associated debt repayments and related expenses. These excess proceeds are expected to be recycled into properties that fit the Company's new investment criteria.

Balance Sheet: Significant progress has been made in reducing future debt maturities and improving the Company's liquidity position since December 31, 2014. On October 26, 2015, the Company successfully closed a $10.0 million mortgage loan with Huntington National Bank which was used to refinance an existing loan with Citigroup Global Markets Realty Corp. that was set to mature in November 2015. The loan was the last remaining significant loan maturity in 2015 and positions the Company with no significant 2016 loan maturities. Based on the improvements in its liquidity and debt maturity schedule, management has concluded that there is no longer substantial doubt regarding the Company's ability to continue as a going concern.

Capital Raise: Subsequent to the close of the year, Condor announced that it had raised $30.0 million in a private placement transaction with an affiliate of the StepStone Group. A portion of the proceeds will be used to redeem in cash all outstanding Series A and Series B preferred stock on April 15, 2016, including all unpaid accrued dividends. Excess proceeds will be utilized by the Company to accelerate the strategic repositioning of its portfolio to high quality select-service, limited service, extended stay, and compact full service hotels. Simultaneously with StepStone's investment in Series D preferred stock, the Company's outstanding Series C preferred stock was also exchanged for the newly created Series D preferred stock, resulting in one class of preferred stock for which the Company can require conversion entirely to common stock upon the occurrence of defined capital events. Refer to the Company's Form 8-K filed March 16, 2016 for further details.

Management: On March 3, 2015, the Company hired industry veteran Bill Blackham as Chief Executive Officer. Mr. Blackham, previously the president and CEO of Eagle Hospitality, has an accomplished record of establishing and growing public and private companies. On September 21, 2015, the Company hired Arinn A. Cavey, formerly with KPMG LLP, as Chief Accounting Officer. Arinn will oversee the Company's financial plans, SEC compliance matters, and banking relationships. On October 27, 2015, the Company hired Jonathan J. Gantt, formerly with Starwood Hotels & Resorts, as Senior Vice President and Chief Financial Officer. Jonathan will lead the Company's capital raising efforts as well as provide overall direction for the Company's accounting, financial reporting, tax, and budget activities.

Rebranding: On July 15, 2015, the Company changed its name to Condor Hospitality Trust, Inc. from Supertel Hospitality, Inc. The name change marks the beginning of a new strategic direction for the Company, including a repositioning of its portfolio into higher quality, significantly newer, premium-branded hotels. The Company's common stock trading symbol changed from SPPR to CDOR. In addition, the Company launched a new website: www.condorhospitality.com.

[1] Three hotels sold subsequent to year-end 2015; $30 million capital raise closed March 16, 2016

Summary Financial Results

RevPAR: For the fourth quarter, revenue per available room (RevPAR) for the 39 same-store hotels declined 3.5 percent to $35.87. The decrease was attributed to an 11.1 percent reduction in occupancy to 56.0 percent, partially offset by an 8.5 percent increase in average daily rate (ADR) to $64.05. In 2015, RevPAR for the same-store hotels increased 2.6 percent to $40.91. The increase was driven by a 7.3 percent increase in ADR to $64.34, offset by a 4.4 percent decline in occupancy to 63.6 percent.

Revenue: Condor's fourth quarter 2015 revenue from continuing operations was $13.1 million compared to $13.2 million in the same 2014 period. In 2015, revenue from continuing operations was $57.3 million, compared to $57.4 million in the prior year. The slight decrease in annual revenue in 2015 was primarily due to the loss of $4.2 million of revenue attributable to 10 hotels in continuing operations sold during the year, which was effectively offset by increased revenue from our October 2015 acquisitions of $2.6 million and increased revenue from legacy held for use ($1.1 million) and held for sale ($0.4 million) properties in continuing operations between the periods.

Net Earnings: Fourth quarter net earnings attributable to common shareholders was $3.4 million, or $0.69 per basic share and $0.01 per diluted share, respectively, compared to a net loss of $(3.8) million, or $(0.80) per basic and diluted share for the same 2014 period. For the year, net earnings attributable to common shareholders was $9.5 million, or $1.94 per basic share and $(0.00) per diluted share, compared to a net loss of $(19.7) million or $(5.05) per basic and diluted share for the same 2014 period.

The results, excluding 2015 earnings per diluted share, include a non-cash derivative gain of $3.6 million for the three months ended December 31, 2015, compared to a derivative loss of $(0.2) million in the same quarter of 2014, and a non-cash derivative gain of $11.6 million for 2015, compared to a derivative loss of $(14.4) million for the same 2014 period. When the value of the derivative liability increases, a loss is recorded and when it decreases, a gain is recorded. One of the key drivers of the value of the derivatives is the market value of the common stock.

Capital Reinvestment: The Company invested $2.2 million in capital improvements throughout the portfolio in the fourth quarter 2015 to upgrade its properties and maintain brand standards, bringing the year to date investment to $5.3 million. Notable capital improvements in 2015 included renovations at the Rocky Mount, Virginia, Comfort Inn and rebranding upgrades at three hotels: Princeton, West Virginia, Quality Inn; Morgantown, West Virginia, Quality Inn; and Culpeper, Virginia, Quality Inn. 

Balance Sheet: The Company had cash and available revolver of $4.9 million and $2.5 million, respectively, at December 31, 2015. As of December 31, 2015, the Company had total outstanding debt of $87.5 million, with $70.3 million associated with assets held for use with a weighted average maturity of 3.0 years and a weighted average interest rate of 5.13%.

Dividends: The Company did not declare a dividend on common stock in the fourth quarter 2015. The Company's board of directors elected to suspend the payment of monthly dividends commencing December 31, 2013 on the outstanding shares of its 8.00% Series A Cumulative Convertible Preferred Stock (NASDAQ: CDORP), quarterly dividends on the outstanding shares of its 10.00% Series B Preferred Cumulative Stock (NASDAQ: CDORO), and quarterly dividends on the outstanding shares of its 6.25% Series C Cumulative Convertible Preferred Stock to preserve capital and improve liquidity. Upon the execution of the StepStone transaction and Preferred Series A and B redemption discussed above, all accumulated dividends will be paid in full. The board of directors will continue to monitor the dividend policy.

Outlook

"Condor has achieved significant progress in 2015 with key staffing additions, reduced interest costs on debt with staggered maturities, completed attractive acquisitions we expect to have attractive yields in 2016, and improved management contracts having better alignment to reward improved results," said Blackham. "The most important accomplishment started in 2015 and completed in the first quarter of 2016 is the convertible preferred stock setting the stage for significantly larger market capitalization needed to raise additional capital to implement our growth strategy. At this writing, we are evaluating many attractive properties for possible acquisition by the Company."

About Condor Hospitality Trust, Inc.
Condor Hospitality Trust, Inc. (NASDAQ: CDOR) is a self-administered real estate investment trust that specializes in the investment and ownership of upper midscale and upscale, premium-branded select-service, extended stay and limited service hotels. The Company currently owns 39 hotels in 18 states. Condor's hotels are franchised by a number of the industry's most well-regarded brand families including Hilton, Marriott, InterContinental Hotels Group, Choice and Wyndham. For more information or to make a hotel reservation, visit www.condorhospitality.com.

Forward Looking Statement
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These risks are discussed in the Company's filings with the Securities and Exchange Commission.

SELECTED FINANCIAL DATA:

 
 
Condor Hospitality Trust, Inc.
Consolidated Balance Sheet
As of December 31, 2015 and 2014
(In thousands, except share and per share amounts)
             
    As of December 31,  
    2015     2014  
Assets            
Investments in hotel properties   $ 144,870     $ 105,520  
Less accumulated depreciation     37,938       38,331  
      106,932       67,189  
                 
Cash and cash equivalents     4,870       173  
Restricted cash     3,776       2,478  
Accounts receivable, net of allowance for doubtful accounts of $10 and $25     1,169       1,190  
Prepaid expenses and other assets     1,782       1,784  
Deferred financing costs, net     1,575       1,637  
Investment in hotel properties, held for sale, net     23,767       71,993  
                 
Total Assets   $ 143,871     $ 146,444  
                 
Liabilities and Equity                
Liabilities                
Accounts payable, accrued expenses and other liabilities   $ 5,419     $ 6,666  
Derivative liabilities, at fair value     8,759       20,337  
Debt related to hotel properties held for sale     17,218       47,536  
Long-term debt     70,318       45,151  
Total Liabilities     101,714       119,690  
Redeemable preferred stock                
10% Series B, 800,000 shares authorized; $.01 par value, 332,500 shares outstanding, liquidation preference of $10,812     7,662       7,662  
                 
Equity                
Shareholders' equity                
Preferred stock, 40,000,000 shares authorized;                
8% Series A, 2,500,000 shares authorized, $.01 par value, 803,270 shares outstanding, liquidation preference of $9,485     8       8  
6.25% Series C, 3,000,000 shares authorized, $.01 par value, 3,000,000 shares outstanding, liquidation preference of $34,492     30       30  
Common stock, $.01 par value, 200,000,000 shares authorized;4,941,878 and 4,692,965 shares outstanding     49       47  
Additional paid-in capital     138,387       137,900  
Accumulated deficit     (105,858 )     (118,983 )
Total shareholders' equity     32,616       19,002  
                 
Noncontrolling interest                
Noncontrolling interest in consolidated partnership,redemption value $1,197 and $25     1,879       90  
Total Equity     34,495       19,092  
                 
Total Liabilities and Equity   $ 143,871     $ 146,444  
                 
   
Condor Hospitality Trust, Inc.  
Consolidated Statement of Operations  
For the Three and Twelve Months ended December 31, 2015 and 2014  
(In thousands, except per share amounts)  
                         
    Three months     Years  
    ended December 31,     ended December 31,  
    Unaudited     Unaudited              
    2015     2014     2015     2014  
Revenue                                
Room rentals and other hotel services   $ 13,075     $ 13,157     $ 57,341     $ 57,409  
                                 
Operating Expenses                                
Hotel and property operations     10,087       10,323       42,186       43,256  
Depreciation and amortization     1,564       1,593       5,400       6,437  
General and administrative     1,310       1,201       5,493       4,192  
Acquisition and terminated transactions     490       -       684       -  
Terminated equity transactions     66       -       246       76  
Total operating expenses     13,517       13,117       54,009       53,961  
                                 
Operating income (loss)     (442 )     40       3,332       3,448  
                                 
Net gain (loss) on dispositions of assets     1,996       (36 )     4,802       1  
Unrealized derivative gain (loss)     3,570       (212 )     11,578       (14,430 )
Other income (expense)     (8 )     3       114       116  
Interest expense     (1,310 )     (1,697 )     (5,445 )     (7,019 )
Loss on debt extinguishment     (102 )     (18 )     (213 )     (158 )
Impairment loss     (311 )     (1,388 )     (3,828 )     (1,269 )
                                 
Earnings (loss) from continuing operations before income taxes     3,393       (3,308 )     10,340       (19,311 )
Income tax expense       -       -       -       -  
                                 
Earnings (loss) from continuing operations     3,393       (3,308 )     10,340       (19,311 )
                                 
Gain from discontinued operations, net of tax     1,424       413       3,982       3,052  
                                 
Net earnings (loss)     4,817       (2,895 )     14,322       (16,259 )
                                 
(Earnings) loss attributable to noncontrolling interest     (476 )     4       (1,197 )     23  
                                 
Net earnings (loss) attributable to controlling interests     4,341       (2,891 )     13,125       (16,236 )
Preferred stock dividends declared and undeclared     (925 )     (879 )     (3,632 )     (3,452 )
Net earnings (loss) attributable to common shareholders   $ 3,416     $ (3,770 )   $ 9,493     $ (19,688 )
                                 
Basic Earnings Per Share (EPS)                                
Basic EPS from continuing operations   $ 0.44     $ (0.89 )   $ 1.22     $ (5.84 )
Basic EPS from discontinued operations     0.25       0.09       0.72       0.79  
Total EPS Basic   $ 0.69     $ (0.80 )   $ 1.94     $ (5.05 )
                                 
Diluted Earnings Per Share (EPS)                                
Diluted EPS from continuing operations   $ (0.04 )   $ (0.89 )   $ (0.15 )   $ (5.84 )
Diluted EPS from discontinued operations     0.05       0.09       0.15       0.79  
Total EPS Diluted   $ 0.01     $ (0.80 )   $ -     $ (5.05 )
                                 
                                 

Reconciliation of Non-GAAP Financial Measures (Unaudited)

Non-GAAP financial measures are measures of our historical financial performance that are different from measures calculated and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We report Funds from Operations ("FFO"), Adjusted FFO ("AFFO"), Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA"), Adjusted EBITDA, and Property Operating Income ("POI") as non-GAAP measures that we believe are useful to investors as key measures of our operating results and which management uses to facilitate a periodic evaluation of our operating results relative to those of our peers. Our non-GAAP measures should not be considered as an alternative to U.S. GAAP net income (loss) or operating income (loss) as an indication of financial performance or to U.S. GAAP cash flows from operating activities as a measure of liquidity. Additionally, these measures are not indicative of funds available to fund cash needs or our ability to make cash distributions as they have not been adjusted to consider cash requirements for capital expenditures, property acquisitions, debt service obligations, or other commitments.

FFO and AFFO

The following table reconciles net earnings (loss) to FFO and AFFO for the three months and years ended December 31 (in thousands.) All amounts presented include both continuing and discontinued operations.

                         
                         
    Three months     Years  
    ended December 31,      ended December 31,  
Reconciliation of Net earnings (loss) to FFO and AFFO   2015     2014     2015     2014  
                                 
Net earnings (loss)   $ 4,817     $ (2,895 )   $ 14,322     $ (16,259 )
Depreciation and amortization expense     1,564       1,593       5,400       6,549  
Net (gain) loss on disposition of assets     (3,330 )     26       (7,795 )     (2,750 )
Impairment loss     312       1,523       3,708       2,921  
FFO     3,363       247       15,635       (9,539 )
(Earnings) loss attributable to noncontrolling interests     (476 )     4       (1,197 )     23  
Preferred stock dividends declared and undeclared     (925 )     (879 )     (3,632 )     (3,452 )
FFO available to common shareholders     1,962       (628 )     10,806       (12,968 )
Unrealized (gain) loss on derivatives     (3,570 )     212       (11,578 )     14,430  
Acquisition and terminated transactions expense     490       -       684       -  
Gain on debt conversion     -       -       -       (88 )
Terminated equity transaction expense     66       -       246       76  
Adjusted FFO available to common shareholders   $ (1,052 )   $ (416 )   $ 158     $ 1,450  
                                 
                                 

We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT), which defines FFO as net earnings computed in accordance with GAAP, excluding gains or losses from sales of real estate assets, impairment, and the depreciation and amortization of real estate assets. FFO is calculated both for the Company in total and as FFO available to common shareholders, which is FFO excluding earnings attributable to noncontrolling interests and preferred stock dividends. AFFO is FFO available to common shareholders adjusted to exclude items we do not believe are representative of the results from our core operations, such as non-cash unrealized gains or losses on derivative liabilities, gains on debt conversion, and cash charges for acquisition costs and terminated equity offering expense. All REITs do not calculate FFO and AFFO in the same manner; therefore, our calculation may not be the same as the calculation of FFO and AFFO for similar REITs.

We consider FFO and AFFO to be useful additional measures of performance for an equity REIT because they facilitate 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 and AFFO provide a meaningful indication of our performance.

EBITDA and Adjusted EBITDA

The following table reconciles net earnings (loss) to EBITDA and Adjusted EBITDA for the three months and years ended December 31 (in thousands). All amounts presented include both continuing and discontinued operations.

                         
                         
    Three months     Years ended  
    ended December 31,     December 31,  
    2015     2014     2015     2014  
Reconciliation of Net earnings (loss) to EBITDA and Adjusted EBITDA                                
Net earnings (loss)   $ 4,817     $ (2,895 )   $ 14,322     $ (16,259 )
Interest expense     1,359       1,876       5,745       8,256  
Loss on debt extinguishment     102       17       213       278  
Income tax expense     -       -       -       -  
Depreciation and amortization expense     1,564       1,593       5,400       6,549  
EBITDA   $ 7,842     $ 591     $ 25,680     $ (1,176 )
Net gain on disposition of assets     (3,330 )     26       (7,795 )     (2,750 )
Impairment (recovery) loss     312       1,523       3,708       2,921  
Unrealized (gain) loss on derivatives     (3,570 )     212       (11,578 )     14,430  
Acquisition and terminated transactions expense     490       -       684       -  
Gain on debt conversion     -       -       -       (88 )
Terminated equity transactions expense     66       -       246       76  
Adjusted EBITDA   $ 1,810     $ 2,352     $ 10,945     $ 13,413  
                                 
                                 

We calculate EBITDA and Adjusted EBITDA by adding back to net earnings (loss) certain non-operating expenses and certain non-cash charges which are based on historical cost accounting which 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. In calculating EBITDA, we add back to net earnings (loss) interest expense, loss on debt extinguishment, income tax expense, and depreciation and amortization expense. In calculating Adjusted EBITDA, we adjust EBITDA to add back net (gain) loss on disposition of assets, acquisition and terminated transactions expense, and terminated equity transactions expense, which are cash charges. We also add back impairment, gain on debt conversion, and unrealized derivative gain or loss, which are non-cash charges. Our current calculation of EBITDA varies from that presented in previous filings as EBITDA was historically calculated based on net earnings (loss) available to common shareholders with preferred dividends and noncontrolling interest added back only to Adjusted EBITDA. EBITDA and Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

We believe that EBITDA and Adjusted EBITDA to be useful additional measures of our operating performance, excluding the impact of our capital structure (primarily interest expense), our asset base (primarily depreciation and amortization expense), and other items we do not believe are representative of the results from our core operations.

Property Operating Income

The following table reconciles operating income (loss) to POI for the three months and years ended December 31 (in thousands). All amounts presented include only continuing operations unless otherwise noted.

                         
                         
    Three months     Years ended  
    ended December 31,     December 31,  
    2015     2014     2015     2014  
                         
Reconciliation of Operating income (loss) to POI                                
Operating income (loss)   $ (442 )   $ 40     $ 3,332     $ 3,448  
Depreciation and amortization expense     1,564       1,593       5,400       6,437  
General and administrative expense     1,310       1,201       5,493       4,192  
Acquisition and terminated transactions expense     490       -       684       -  
Terminated equity transactions expense     66       -       246       76  
Room rentals and property operations expense, discontinued operations     716       2,318       4,296       14,969  
Hotel and property operating expense, discontinued operations     (576 )     (1,601 )     (3,127 )     (11,545 )
POI   $ 3,128     $ 3,551     $ 16,324     $ 17,577  
                                 
                                 

We calculate POI as room rentals and other hotel services revenue less hotel and property operating expenses. We believe POI is helpful to investors as it better communicates the comparability of our hotels' operating results for all of the Company's hotel properties. POI as presented above includes both continuing and discontinued operations.

 
Condor Hospitality Trust, Inc.
Operating Statistics
                                           
    For the years ended December 31,
    2015   2014   2013
    Occupancy     ADR   RevPar   Occupancy     ADR   RevPar   Occupancy     ADR   RevPar
Same store HFU   65.32 %   $ 75.10   $ 49.06   67.23 %   $ 70.66   $ 47.50   63.72 %   $ 69.62   $ 44.36
Same store HFS   61.42 %     50.09     30.77   65.62 %     46.30   $ 30.38   63.09 %     45.81     28.90
Total same store   63.58 %   $ 64.34   $ 40.91   66.51 %   $ 59.95   $ 39.88   63.44 %   $ 59.07   $ 37.48
                                                       
Acquisitions   65.22 %   $ 116.48   $ 75.97   -     $ -   $ -   -     $ -   $ -
                                                       
                                           
    For the three months ended December 31,
    2015   2014   2013
    Occupancy     ADR   RevPar   Occupancy     ADR   RevPar   Occupancy     ADR   RevPar
Same store HFU   57.33 %   $ 74.43   $ 42.68   62.63 %   $ 70.02   $ 43.85   58.77 %   $ 67.95   $ 39.93
Same store HFS   54.34 %     50.41     27.39   63.50 %     45.52     28.91   60.06 %     44.64     26.81
Total same store   56.00 %   $ 64.05   $ 35.87   63.02 %   $ 59.02   $ 37.19   59.34 %   $ 57.44   $ 34.09
                                                       
Acquisitions   65.22 %   $ 116.48   $ 75.97   -     $ -   $ -   -     $ -   $ -
                                                       
                                                       
           
Condor Hospitality Trust, Inc.          
Property List | Fourth Quarter and Full Year Earnings Release Dated March 24, 2016  
             
                         
Current Hotel Portfolio [Excludes Acquisitions as Detailed Below]    
                         
Ref   Hotel Name   City   State   Rooms   Acquisition Date   Status 1
1   Quality Inn   Princeton   WV   50   1/1/1985   Hold
2   Comfort Inn   Farmville   VA   51   7/1/1985   Hold
3   Quality Inn   Solomons   MD   60   6/1/1986   Hold
4   Key West Inn   Key Largo   FL   40   8/1/1987   Hold
5   Quality Inn   Morgantown   WV   81   10/1/1996   Hold
6   Comfort Inn   Shelby   NC   76   2/1/1989   Hold
7   Comfort Suites   Ft. Wayne   IN   127   11/7/2005   Hold
8   Comfort Suites   Lafayette   IN   62   11/7/2005   Hold
9   Comfort Inn and Suites   Warsaw   IN   71   11/7/2005   Hold
10   Comfort Suites   South Bend   IN   135   11/30/2005   Hold
11   Super 8   Billings   MT   106   1/5/2007   Hold
12   Hilton Garden Inn   Dowell/Solomons   MD   100   5/25/2012   Hold
13   Super 8   O'Neill   NE   72   7/30/1982   HFS
14   Super 8   Keokuk   IA   61   2/22/1985   HFS
15   Quality Inn   Culpeper   VA   49   5/1/1986   HFS
16   Comfort Inn   New Castle   PA   79   7/1/1987   HFS
17   Super 8   Pittsburg   KS   64   8/14/1987   HFS
18   Super 8   Storm Lake   IA   59   10/11/1990   HFS
19   Comfort Inn   Harlan   KY   61   7/1/1993   HFS
20   Comfort Inn   Chambersburg   PA   63   10/1/1993   HFS
21   Super 8   Portage   WI   61   6/7/1996   HFS
22   Clarion Inn   Cleveland   TN   59   3/1/1998   HFS
23   Savannah Suites   Atlanta   GA   164   11/16/2006   HFS
24   Days Inn   Bossier City   LA   176   4/4/2007   HFS
25   Comfort Inn   Glasgow   KY   60   1/1/2008   HFS
26   Super 8   Coralville   IA   84   12/21/1985   Legacy
27   Super 8   Creston   IA   121   9/19/1978   Legacy
28   Super 8   Mount Pleasant   IA   55   8/29/1988   Legacy
29   Comfort Inn   Rocky Mount   VA   61   4/1/1989   Legacy
30   Days Inn   Farmville   VA   59   9/1/1990   Legacy
31   Quality Inn   Danville   KY   63   8/1/1994   Legacy
32   Super 8   Menomonie   WI   81   4/1/1997   Legacy
33   Comfort Suites   Marion   IN   62   11/7/2005   Legacy
34   Supertel Inn/Conference Center   Creston   IA   41   6/30/2006   Legacy
35   Days Inn Airport   Sioux Falls   SD   86   1/1/2008   Legacy
36   Super 8   Burlington   IA   62   12/30/1986   Legacy
    Total           2,762        
                         
 
Acquisitions | For Period January 1, 2015 - December 31, 2015
                         
Ref   Hotel Name   City   State   Rooms   Acquisition Date   Purchase Price
(in millions)
37   SpringHill Suites   San Antonio   TX   116   10/1/2015   $17.5
38   Courtyard by Marriott Flagler Center   Jacksonville   FL   120   10/2/2015   $14.0
39   Hotel Indigo   College Park   GA   142   10/2/2015   $11.0
    Total Acquisitions           378       $42.5
                         
 
Dispositions | For Period January 1, 2015 - December 31, 2015 2
                         
Ref   Hotel Name   City   State   Rooms   Disposition Date   Gross Proceeds
(in millions)
1   Super 8   West Plains   MO   49   1/15/2015   $1.5
2   Super 8   Green Bay   WI   83   1/29/2015   $2.2
3   Super 8   Columbus   GA   74   3/16/2015   $0.9
4   Sleep Inn & Suites   Omaha   NE   90   3/19/2015   $2.9
5   Savannah Suites   Chamblee   GA   120   4/1/2015   $4.4
6   Savannah Suites   Augusta   GA   172   4/1/2015   $3.4
7   Super 8   Batesville   AR   49   4/30/2015   $1.5
8   Days Inn   Ashland   KY   63   7/1/2015   $2.2
9   Comfort Inn   Alexandria   VA   150   7/13/2015   $12.0
10   Days Inn   Alexandria   VA   200   7/13/2015   $6.5
11   Super 8   Manhattan   KS   85   8/28/2015   $3.2
12   Quality Inn   Sheboygan   WI   59   10/6/2015   $2.3
13   Super 8   Hays   KS   76   10/14/2015   $1.9
14   Days Inn   Glasgow   KY   58   10/16/2015   $1.8
15   Super 8   Tomah   WI   65   10/21/2015   $1.4
16   Rodeway Inn   Fayetteville   NC   120   11/3/2015   $2.6
17   Savannah Suites   Savannah   GA   160   12/22/2015   $4.0
    Total FY2015           1,673       $54.7
18   Super 8   Kirksville   MO   61   1/4/2016   $1.5
19   Super 8   Lincoln   NE   133   1/7/2016   $2.8
20   Savannah Suites   Greenville   SC   170   1/8/2016   $2.7
    Total Subsequent to Year-End 2015       364       $7.0
                         
    Total Dispositions           2,037       $61.7
                         
     
1 |    Status indicates the Company's current plan for the asset: Hold indicates the Company plans to hold the asset, HFS indicates the asset is currently marketed for sale, and legacy indicates that the Company considers the hotel part of its disposition strategy.
2 |   Three hotels closed subsequent to the close of year-end 2015, as detailed; HFS as of December 31, 2015.
     

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