-- Sold five hotels in the 2010 fourth quarter, bringing the full year's sales activities to nine properties divested, generating gross proceeds of $11.7 million. -- Reduced mortgage debt to $175.0 million at the end of fiscal 2010 from $189.5 million at the end of fiscal 2009. -- Improved Continuing Operations portfolio's Revenue per Available Room (RevPAR) by 6.5 percent in the 2010 fourth quarter and 3.1 percent for the full year."We made considerable progress on the implementation of our updated business plan in 2010," said Kelly A. Walters, Supertel president and CEO. "Our first priority was to review our portfolio against revised strategic criteria and set into motion a plan to significantly upgrade our assets. We sold nine hotels and presently have 18 additional properties classified as Held for Sale. Dispositions were hampered somewhat by the lack of credit available to buyers. Although borrowing remains difficult, financing hotel acquisitions is becoming increasingly feasible." "Concurrent with upgrading our portfolio, we took important steps to strengthen our balance sheet, reducing debt by 7.7 percent by year-end," he added. "We still have considerable work on both fronts, but the improvements in our results to date validate our new direction. An improving hotel economy is expected to have a positive impact on the speed of our disposition program and accelerate RevPAR growth and profitability at our core properties." Fourth Quarter Results The company had a net loss of $(3.8) million for the 2010 fourth quarter, compared to a net loss of $(25.4) million for the same 2009 period. The 2010 fourth quarter loss includes a $2.5 million non-cash impairment charge. All income and expenses related to sold hotels are classified as discontinued operations. After recognition of noncontrolling interest and dividends for preferred stock shareholders, the net loss attributable to common shareholders was $(4.2) million, or $(0.18) per diluted share, for the 2010 fourth quarter, compared with a net loss attributable to common shareholders of $(25.7) million, or $(1.17) per diluted share, for the like 2009 period. Fourth quarter 2010 revenues from continuing operations increased $1.2 million, or 6.5 percent, bolstered by the economic recovery. The portfolio of 88 hotels in continuing operations in the 2010 fourth quarter, compared with the same period a year earlier, reported an 8.2 percent increase in occupancy and a 1.6 percent decrease in average daily rate (ADR), for a 6.5 percent rise in RevPAR, compared to a 9.1 percent RevPAR increase for the industry, as reported by Smith Travel Research.
Fourth Qtr 2010 vs Fourth Qtr 2009
Occupancy (%) ADR ($) RevPar ($)
---------------- ----------------- -----------------
Chg 2010 2009 Chg 2010 2009 Chg 2010 2009
---- ----- ----- ---- ----- ----- ---- ----- -----
Industry - Total US
Market 7.0% 53.5 50.0 1.9% 98.25 96.46 9.1% 52.59 48.22
Supertel - Total
Portfolio 8.2% 57.8 53.4 -1.6% 47.61 48.40 6.5% 27.52 25.85
Chain Scale
All Midscale w/o F &
B * 7.4% 53.9 50.2 1.7% 83.31 81.95 9.1% 44.89 41.13
Supertel - Midscale
w/o F & B 11.1% 53.9 48.5 -3.5% 63.60 65.94 7.1% 34.28 32.00
All Economy 7.4% 47.8 44.5 0.1% 47.43 47.39 7.5% 22.65 21.07
Supertel - Economy 4.1% 55.4 53.2 1.1% 47.97 47.44 5.3% 26.58 25.25
Supertel - Extended
Stay 16.4% 74.5 64.0 -4.6% 22.92 24.02 11.1% 17.08 15.38
* "w/o F & B" indicates without food and beverage.
Industry Source: STR Monthly Review
Midscale without Food and Beverage Hotels
Fourth quarter RevPAR for the company's 30 midscale without food and
beverage hotels in continuing operations increased 7.1 percent to $34.28,
the result of an 11.1 percent rise in occupancy to 53.9 percent, offset by
a 3.5 percent decrease in ADR to $63.60.
Economy Hotels
The company's 51 economy hotels in continuing operations reported a 5.3
percent increase in RevPAR to $26.58 in the 2010 fourth quarter. Occupancy
improved 4.1 percent to 55.4 percent, and ADR rose 1.1 percent to $47.97.
Extended Stay Hotels
The company's seven extended stay hotels in continuing operations reported
an 11.1 percent increase in RevPAR to $17.08, as a result of a 16.4 percent
increase in occupancy to 74.5 percent, offset by a 4.6 percent decline in
ADR to $22.92.
"The hotel industry began recovering in the spring of 2010, a trend that
continues year-to-date in 2011," Walters said. "Our operating strategy was
to concentrate on significantly improving occupancy and top line revenue
and remain conservative with room rates. This stimulated a solid
improvement in demand. Moving forward, we intend to begin to increase rate
while keeping a close eye on occupancy trends. It remains a delicate
balance at this phase of the recovery, especially in many of our markets,
but rate is a primary focus in 2011."
"Another important phase of our strategy is to optimize the operating
efficiency of our hotels," Walters pointed out. "We solicited bids during
the year from hotel management companies to manage our hotels. We expect
to complete our review process, and make our decision, if any, on a manager
or managers for our hotels during 2011."
Hotel and property operating expenses from continuing operations for the
2010 fourth quarter increased $0.9 million, or 6.1 percent, primarily due
to costs associated with higher occupancy levels at the properties.
Interest expense from continuing operations remained essentially unchanged
at $2.5 million for the quarter. Depreciation and amortization expense
from continuing operations decreased $0.2 million.
Property operating income (POI) is calculated as revenue from room rentals
and other hotel services less hotel and property operating expenses. For
the 2010 fourth quarter, POI from continuing operations increased $0.3
million, or 8.1 percent, compared to the year-ago period. This variance
resulted from the increased revenue, slightly offset by increased expenses.
General and administration expense from continuing operations for the 2010
fourth quarter rose $0.2 million, compared to the year-ago period, related
primarily to increased professional fees, partially offset by a decrease in
taxes. General and administrative expense for the year declined $0.4
million.
Disposition Program
During 2010 the company sold nine hotels for approximately $11.7 million,
resulting in a gain on sale of approximately $1.4 million. Proceeds were
used primarily to strengthen the balance sheet by reducing debt. The sold
properties include:
-- Comfort Inn Dublin, VA 99 rooms -- Super 8 Kingdom City, MO 60 rooms -- Masters Inn Cave City, KY 97 rooms -- Super 8 Parsons, KS 48 rooms -- Booneslick Lodge Neosho, MO 47 rooms -- Booneslick Lodge Jane, MO 45 rooms -- Super 8 Neosho, MO 58 rooms -- Super 8 Lenexa, KS 101 rooms -- Masters Inn Augusta, GA 120 rooms"The 2010 hotel sales activity supports the first phase of our business plan, which is to improve our overall financial performance by liquidating underperforming assets that no longer fit our core holdings model," he noted. "The following table clearly shows the quality bifurcation in our portfolio, as measured by POI, between those assets designated Held for Sale and those currently in our core portfolio. The operating results of our 18 properties presently being marketed for sale, as shown in the Discontinued Operations figures in the following table, contrast sharply with our Continuing Operations hotels. We expect to see a significant improvement in our return on investment results after we sell these properties."
Three months Twelve months
POI as a percentage of revenue from room ended ended
rentals and other hotel services: December 31, December 31,
-------------- --------------
2010 2009 2010 2009
------ ------ ------ ------
Continuing Operations 20.3% 20.0% 23.6% 25.2%
Discontinued Operations 5.5% 3.5% 11.0% 12.8%
During 2010, the company invested $4.3 million to upgrade its properties
and maintain brand standards at its hotels. Walters noted that Supertel
plans to nearly double that investment to $8.5 million in 2011. "The
planned upgrades will be made in phases and will be largely transparent to
guests, with an anticipated minimal effect on occupancy."
Balance Sheet
The company continued to improve its balance sheet strength and flexibility
in 2010 through mortgage debt reduction, loan term extensions, and covenant
modifications.
As of December 31, 2010, Supertel had $144.6 million in outstanding debt on
hotels in continuing operations with an average term of 4.1 years and
weighted average annual interest rate of 6.19 percent.
"We have $17.9 million in debt coming due in 2011 (in addition to $5.4
million of principal amortization) and are working closely with our lenders
to secure longer-term debt," said Connie Scarpello, Supertel's chief
financial officer. "The lending community is still recovering from a deep
downturn and remains quite conservative. However, recent discussions would
indicate that credit markets have begun to improve, with hospitality
investments becoming an increasingly attractive option to lenders."
Dividends
The company did not declare a common stock dividend in 2010 or for the 2010
fourth quarter. To date preferred dividends have continued uninterrupted.
The Board of Directors continues to monitor requirements to maintain the
Company's REIT status on a quarterly basis.
Outlook
"The reinvigoration of Supertel and its portfolio continues according to
our updated business plan," Walters said. "We are encouraged by the
steadily improving industry fundamentals during this early stage of what is
forecasted to be a protracted economic recovery. We believe this phase of
the cycle will usher in improved financial performance for well positioned
hotel owners. As Supertel recovers, we will work to further upgrade our
portfolio and delever the balance sheet to optimize upside potential while
minimizing the effects of downturns that historically occur in the hotel
industry.
"The hotel industry is evolving every day, and we must embrace the new
trends and adapt our portfolio accordingly, shedding those properties that
are late in their product cycle. Portfolio management will remain a
constant and dynamic process as we strive to upgrade the quality of our
hotel assets and their operations.
"We continue to make steady progress in the disposition of our non-core
assets. The next phase of our plan is to hone our operating results by
engaging operators with strong local market knowledge and who are applying
programs that are consistent with the best practices in the industry.
"The future of Supertel lies in the character of our committed and talented
management team," he said. "We already are applying the lessons learned
from this most difficult recent recession. The hospitality industry's
future looks bright as demand growth is projected by Colliers PKF
Hospitality Research and Smith Travel Research to outstrip supply through
2013. We are a better company with a better portfolio than last year, and
our goal is to continue that trend."
About Supertel Hospitality, Inc.
As of December 31, 2010, Supertel Hospitality, Inc. (
As of
December 31, December 31,
2010 2009
----------- -----------
ASSETS
Investments in hotel properties $ 295,907 $ 295,393
Less accumulated depreciation 90,086 80,265
----------- -----------
205,821 215,128
Cash and cash equivalents 333 428
Accounts receivable, net of allowance for
doubtful accounts of $133 and $95 1,717 2,043
Prepaid expenses and other assets 13,372 4,779
Deferred financing costs, net 988 1,414
Investment in hotel properties held for sale 34,413 50,603
----------- -----------
$ 256,644 $ 274,395
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable, accrued expenses and other
liabilities $ 17,732 $ 10,340
Debt related to hotel properties held for sale 30,443 37,634
Long-term debt 144,567 151,879
----------- -----------
192,742 199,853
----------- -----------
Redeemable noncontrolling interest in
consolidated partnership, at redemption value 511 511
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; 22,917,509 and 22,002,322 shares
outstanding 229 220
Common stock warrants 252 -
Additional paid-in capital 121,384 120,153
Distributions in excess of retained earnings (66,479) (54,420)
----------- -----------
Total shareholder equity 55,394 65,961
Noncontrolling interest in consolidated
partnership, redemption value $250 and $237 335 408
----------- -----------
Total equity 55,729 66,369
----------- -----------
$ 256,644 $ 274,395
=========== ===========
The following table sets forth the Company's results of operations for the
three and twelve months ended December 31, 2010 and 2009, respectively.
(in thousands, except per share data)
Three months Twelve months
ended December 31, ended December 31,
-------------------- --------------------
Unaudited Unaudited
2010 2009 2010 2009
--------- --------- --------- ---------
REVENUES
Room rentals and other hotel
services $ 19,194 $ 18,019 $ 84,114 $ 81,570
--------- --------- --------- ---------
EXPENSES
Hotel and property operations 15,301 14,419 64,241 60,985
Depreciation and amortization 2,685 2,839 11,011 11,405
General and administrative 861 675 3,443 3,813
--------- --------- --------- ---------
18,847 17,933 78,695 76,203
--------- --------- --------- ---------
EARNINGS BEFORE NET LOSSES ON
DISPOSITIONS OF ASSETS, OTHER
INCOME, INTEREST EXPENSE,
IMPAIRMENT LOSSES,
NONCONTROLLING INTEREST AND
INCOME TAX BENEFIT 347 86 5,419 5,367
Net losses on dispositions of
assets (11) (38) (66) (114)
Other income 30 34 122 134
Interest expense (2,496) (2,417) (9,702) (9,581)
Impairment losses - (7,399) (2,147) (7,399)
--------- --------- --------- ---------
LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND
NONCONTROLLING INTEREST (2,130) (9,734) (6,374) (11,593)
Income tax benefit (expense) 472 (164) 897 549
--------- --------- --------- ---------
LOSS FROM CONTINUING OPERATIONS (1,658) (9,898) (5,477) (11,044)
Loss from discontinued
operations (2,161) (15,536) (5,125) (16,481)
--------- --------- --------- ---------
NET LOSS (3,819) (25,434) (10,602) (27,525)
Noncontrolling interest 12 150 17 130
--------- --------- --------- ---------
NET LOSS ATTRIBUTABLE TO
CONTROLLING INTERESTS (3,807) (25,284) (10,585) (27,395)
Preferred stock dividend (369) (368) (1,474) (1,474)
NET LOSS ATTRIBUTABLE --------- --------- --------- ---------
TO COMMON SHAREHOLDERS $ (4,176) $ (25,652) $ (12,059) $ (28,869)
========= ========= ========= =========
NET EARNINGS PER COMMON SHARE -
BASIC:
EPS from continuing operations $ (0.09) $ (0.47) $ (0.31) $ (0.58)
========= ========= ========= =========
EPS from discontinued
operations $ (0.09) $ (0.70) $ (0.22) $ (0.75)
========= ========= ========= =========
EPS Basic $ (0.18) $ (1.17) $ (0.53) $ (1.33)
========= ========= ========= =========
NET EARNINGS PER COMMON SHARE -
DILUTED: $ (0.18) $ (1.17) $ (0.53) $ (1.33)
========= ========= ========= =========
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
In thousands, except per share data:
Three months Twelve months
ended December 31, ended December 31,
-------------------- --------------------
unaudited unaudited
2010 2009 2010 2009
--------- --------- --------- ---------
Weighted average number of
shares outstanding for EPS
basic 22,918 21,956 22,556 21,647
diluted 22,918 21,956 22,556 21,647
Weighted average number of shares
outstanding for FFO per share
basic 22,918 21,956 22,556 21,647
diluted 22,918 21,956 22,556 21,647
Reconciliation of net loss to
FFO-Unaudited
Net loss attributable to common
shareholders $ (4,176) $ (25,652) $ (12,059) $ (28,869)
Depreciation and amortization,
including discontinued
operations 2,748 3,370 11,708 14,241
Net gains on disposition of
assets (763) (1,217) (1,276) (2,264)
--------- --------- --------- ---------
FFO $ (2,191) $ (23,499) $ (1,627) $ (16,892)
--------- --------- --------- ---------
Impairment 2,549 23,305 8,198 24,148
--------- --------- --------- ---------
FFO without impairment, a
non-cash item $ 358 $ (194) $ 6,571 $ 7,256
========= ========= ========= =========
FFO per share - basic $ (0.10) $ (1.07) $ (0.07) $ (0.78)
========= ========= ========= =========
FFO without impairment, a
non-cash item, per share -
basic $ 0.02 $ (0.01) $ 0.29 $ 0.34
========= ========= ========= =========
FFO per share - diluted $ (0.10) $ (1.07) $ (0.07) $ (0.78)
========= ========= ========= =========
FFO without impairment, a
non-cash item, per share -
diluted $ 0.02 $ (0.01) $ 0.29 $ 0.34
========= ========= ========= =========
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.
FFO without impairment, a non-cash item, ("FFO without impairment") is a
non-GAAP financial measure. As a result of a significant downturn in hotel
and lodging fundamentals that took place in 2008 and 2009 and the related
decrease in hotel and real estate valuations, we decided that FFO available
to common shareholders did not provide all of the information that allows
us to better evaluate our operating performance.
To arrive at FFO without impairment, we adjust FFO available to common
shareholders, to exclude the following items:
(i) impairment charges of hotel properties that we have sold or expect to
sell, included in discontinued operations; and
(ii) impairment charges of hotel properties classified as Held for Use.
We believe that these items are driven by factors relating to the
fundamental disruption in the global financial and real estate markets,
rather than factors specific to the company or the performance of our
properties or investments.
The impairment charges of hotel properties that were recognized in 2009 and
2010 were primarily based on valuations of hotels, which had declined due
to market conditions that we no longer expected to hold for long-term
investment, and/or for which we have reduced our prior expected holding
periods. In order to enhance liquidity, we have declared certain properties
as Held for Sale and may declare other properties Held for Sale. To the
extent these properties are expected to be sold at a loss, we record an
impairment charge when the loss is known. We have recognized certain of
these impairment charges over several quarters in 2009 and 2010 and we
believe it is reasonably likely that we will recognize similar charges and
gains in the near future. However, we believe that as the financial markets
stabilize, the potential for impairment charges of our hotel properties
will diminish. We believe FFO without impairment provides investors with
an additional measure to evaluate our operating performance as we come out
of this period of fundamental disruption in the global financial and real
estate markets.
We analyze our operating performance primarily by revenues from our hotel
properties, net of operating, administrative and financing expenses which
are not directly impacted by short term fluctuations in the market value of
our hotel properties. As a result, although these non-cash impairment
charges have had a material impact on our financial results and are
reflected in our financial statements, the removal of the effects of these
items allows us to better understand the core operating performance of our
properties.
Three months Twelve months
ended December 31, ended December 31,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
RECONCILIATION OF NET EARNINGS
(LOSS) TO ADJUSTED EBITDA
Net loss attributable to common
shareholders $ (4,176) $ (25,652) $ (12,059) $ (28,869)
Interest expense, including
discontinued operations 3,083 3,232 12,224 13,015
Income tax benefit, including
discontinued operations (557) (141) (1,757) (1,647)
Depreciation and amortization,
including discontinued
operations 2,748 3,370 11,708 14,241
--------- --------- --------- ---------
EBITDA 1,098 (19,191) 10,116 (3,260)
Noncontrolling interest (12) (150) (17) (130)
Preferred stock dividend 369 368 1,474 1,474
--------- --------- --------- ---------
Adjusted EBITDA $ 1,455 $ (18,973) $ 11,573 $ (1,916)
========= ========= ========= =========
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, 2010
and 2009, respectively.
Unaudited-In thousands, except
statistical data: Three months Twelve months
ended ended
December 31, December 31,
---------------- ----------------
2010 2009 2010 2009
------- ------- ------- -------
Same Store:
Revenue per available room
(RevPAR):
Midscale w/o F&B $ 34.28 $ 32.00 $ 39.11 $ 37.28
Economy $ 26.58 $ 25.25 $ 29.18 $ 29.02
Extended Stay $ 17.08 $ 15.38 $ 17.41 $ 15.53
Total $ 27.52 $ 25.85 $ 30.47 $ 29.54
======= ======= ======= =======
Average daily room rate (ADR):
Midscale w/o F&B $ 63.60 $ 65.94 $ 65.01 $ 67.87
Economy $ 47.97 $ 47.44 $ 47.81 $ 49.17
Extended Stay $ 22.92 $ 24.02 $ 23.21 $ 24.52
Total $ 47.61 $ 48.40 $ 48.47 $ 50.57
======= ======= ======= =======
Occupancy percentage:
Midscale w/o F&B 53.9% 48.5% 60.2% 54.9%
Economy 55.4% 53.2% 61.0% 59.0%
Extended Stay 74.5% 64.0% 75.0% 63.3%
Total 57.8% 53.4% 62.9% 58.4%
======= ======= ======= =======
"w/o F & B" indicates without food and beverage.
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.
Unaudited-In thousands, except
statistical data: Three months Twelve months
ended December 31, ended December 31,
------------------ ------------------
2010 2009 2010 2009
-------- -------- -------- --------
Total Hotels:
Revenue per available room
(RevPAR): $ 27.52 $ 25.85 $ 30.47 $ 29.54
Average daily room rate (ADR): $ 47.61 $ 48.40 $ 48.47 $ 50.57
Occupancy percentage: 57.8% 53.4% 62.9% 58.4%
Revenue from room rentals and other
hotel services consists of:
Room rental revenue $ 18,566 $ 17,435 $ 81,533 $ 79,050
Telephone revenue 68 72 297 295
Other hotel service revenues 560 512 2,284 2,225
-------- -------- -------- --------
Total revenue from room rentals and
other hotel services $ 19,194 $ 18,019 $ 84,114 $ 81,570
======== ======== ======== ========
Hotel and property operations expense
Total hotel and property
operations expense $ 15,301 $ 14,419 $ 64,241 $ 60,985
======== ======== ======== ========
Property Operating Income (POI)
Total property operating income $ 3,893 $ 3,600 $ 19,873 $ 20,585
======== ======== ======== ========
POI as a percentage of revenue from
room rentals and other hotel
services
Total POI as a percentage of
revenue 20.3% 20.0% 23.6% 25.2%
======== ======== ======== ========
Discontinued Operations:
Room rentals and other hotel services
Total room rental and other hotel
services $ 3,682 $ 4,495 $ 18,266 $ 23,924
======== ======== ======== ========
Hotel and property operations expense
Total hotel and property
operations expense $ 3,481 $ 4,338 $ 16,252 $ 20,862
======== ======== ======== ========
Property Operating Income (POI)
Total property operating income $ 201 $ 157 $ 2,014 $ 3,062
======== ======== ======== ========
POI as a percentage of revenue from
room rentals and other hotel
services
Total POI as a percentage of
revenue 5.5% 3.5% 11.0% 12.8%
======== ======== ======== ========
RECONCILIATION OF NET LOSS
FROM CONTINUING OPERATIONS TO
POI-UNAUDITED:
Net loss $ (3,819) $ (25,434) $ (10,602) $ (27,525)
Depreciation and amortization,
including discontinued
operations 2,748 3,370 11,708 14,241
Net gain on disposition of
assets, including discontinued
operations (763) (1,217) (1,276) (2,264)
Other income (30) (34) (122) (134)
Interest expense, including
discontinued operations 3,083 3,232 12,224 13,015
General and administrative
expense 883 675 3,514 3,813
Impairment losses 2,549 23,305 8,198 24,148
Income tax benefit, including
discontinued operations (557) (140) (1,757) (1,647)
Room rentals and other hotel
services - discontinued
operations (3,682) (4,495) (18,266) (23,924)
Hotel and property operations
expense - discontinued
operations 3,481 4,338 16,252 20,862
--------- --------- --------- ---------
POI $ 3,893 $ 3,600 $ 19,873 $ 20,585
========= ========= ========= =========
Same Store reflects 88 hotels in continuing operations for the three months
and year to date ended December 31, 2010 and 2009.
The following table presents our RevPAR, ADR and Occupancy, by region, for
the three months ended December 31, 2010 and 2009, respectively. The
comparisons of same store operations are for 88 hotels in continuing
operations as of October 1, 2009.
Three months ended Three months ended
December 31, 2010 December 31, 2009
-------------------- --------------------
Same Store Room Occu- Room Occu-
Region Count RevPAR pancy ADR Count RevPAR pancy ADR
------ ------ ----- ------ ------ ------ ----- ------
Mountain 214 $22.96 48.7% $47.18 214 $25.29 53.6% $47.15
West North Central 2,511 25.89 54.5% 47.50 2,511 24.71 52.6% 47.00
East North Central 964 32.08 53.5% 60.02 964 32.82 51.0% 64.30
Middle Atlantic/New
England 142 41.33 72.9% 56.72 142 35.01 54.9% 63.82
South Atlantic 2,369 26.05 64.5% 40.37 2,369 22.91 54.7% 41.87
East South Central 677 31.71 51.6% 61.41 677 28.23 48.0% 58.81
West South Central 456 26.17 59.1% 44.27 456 26.48 63.6% 41.62
------ ------ ----- ------ ------ ------ ----- ------
Total Same Store 7,333 $27.52 57.8% $47.61 7,333 $25.85 53.4% $48.40
====== ====== ===== ====== ====== ====== ===== ======
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 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, 2010 and 2009, respectively. The
comparisons of same store operations are for 88 hotels in continuing
operations owned as of January 1, 2009.
2010 2009
--------------------------- ---------------------------
Same Store Room Occu- Room Occu-
Region Count RevPAR pancy ADR Count RevPAR pancy ADR
------ ------ ----- ------ ------ ------ ----- ------
Mountain 214 $31.75 65.0% $48.85 214 $31.96 62.1% $51.50
West North Central 2,511 27.95 58.7% 47.61 2,511 28.80 60.0% 48.02
East North Central 964 36.83 60.3% 61.11 964 36.04 57.2% 63.07
Middle Atlantic/New
England 142 41.43 71.1% 58.30 142 38.90 58.9% 66.04
South Atlantic 2,369 28.72 68.2% 42.10 2,369 26.61 58.4% 45.56
East South Central 677 34.60 56.8% 60.91 677 32.99 54.1% 61.01
West South Central 456 29.78 68.8% 43.31 456 25.84 56.9% 45.38
------ ------ ----- ------ ------ ------ ----- ------
Total Same Store
Hotels 7,333 $30.47 62.9% $48.47 7,333 $29.54 58.4% $50.57
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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 Kentucky and Tennessee
West South Central Arkansas and Louisiana
Contact Information: Contact: Jerry Daly, Carol McCune Daly Gray (Media Contact) 703.435.6293