-- Revenue from continuing operations rose 6.5 percent
-- Net loss per diluted share of $(0.02) compared to prior year
net loss of $(0.06) per diluted share
-- FFO of $0.10 per diluted share, and FFO without impairment of
$0.15 per diluted share
Revenues from continuing operations for the 2010 third quarter rose 6.5
percent to $24.9 million, compared to the same year-ago period. Net loss
attributable to common shareholders for the 2010 third quarter was $(0.5)
million, or $(0.02) per diluted share, compared to net loss attributable to
common shareholders of $(1.4) million, or $(0.06) per diluted share, in the
2009 same quarter. The $0.9 million improvement in earnings was primarily
the result of an increase in revenue from continuing operations.
Funds from operations (FFO), which includes $0.9 million of impairment
charges, for the 2010 third quarter was $2.4 million, or $0.10 per diluted
share. Third quarter impairment charges included $1.3 million resulting
from declining expectations related to recoverability of carrying values on
seven of the hotels held for sale and was partially offset by $0.4 million
of impairment charges recovered on two held for sale hotels.
Funds from operations (FFO) without impairment, a non-cash item, in the
2010 third quarter, improved 20.7 percent to $3.3 million, or $0.15 per
diluted share, compared to $2.8 million, or $0.13 per diluted share, in the
same 2009 period.
Earnings before interest, taxes, depreciation and amortization,
noncontrolling interest and preferred stock dividends (Adjusted EBITDA)
increased to $5.8 million, compared to $5.5 million for the third quarter
of 2009.
Third Quarter Highlights
-- Revenue per available room (RevPAR) rose 6.6 percent, led by
an 8.4 percent increase in occupancy
-- Sold a Super 8 hotel in Parsons, Kansas, with net proceeds
used to reduce debt.
-- Entered into sales contracts on two additional held for sale
hotels, bringing the number to six under contract at September 30
"Our two primary focuses are improving revenues and strengthening our
balance sheet, primarily through selling non-strategic assets," said Kelly
A. Walters, Supertel's president and CEO. "Since the close of the quarter,
we have sold five additional held for sale hotels with gross proceeds of
$5.8 million, notwithstanding the fact that the difficult economy,
especially the lack of debt financing, is restraining a lot of activity."
Operating Results
Third quarter 2010 revenues from continuing operations rose $1.5 million,
or 6.5 percent, to $24.9 million over the third quarter 2009. The
continuing operations portfolio of 89 hotels in the 2010 third quarter,
compared with the same period a year earlier, reported an 8.4 percent
increase in occupancy and a 1.7 percent decrease in ADR, resulting in a 6.6
percent increase in RevPAR. This compares to an 8.4 percent RevPAR
increase for the hotel industry, as reported by Smith Travel Research.
Third Qtr 2010 vs Third Qtr 2009 (Continuing Operations)
Occupancy (%) ADR ($) RevPAR ($)
----------------- ----------------- -----------------
Chg 2010 2009 Chg 2010 2009 Chg 2010 2009
---- ----- ----- ---- ----- ----- ---- ----- -----
Industry - Total US
Market 6.7% 63.9 59.9 1.6% 99.07 97.47 8.4% 63.34 58.41
Supertel - Total
Portfolio 8.4% 68.7 63.4 -1.7% 50.66 51.53 6.6% 34.81 32.67
Chain Scale
All Midscale w/o F&B 7.3% 65.0 60.6 0.7% 87.61 86.97 8.1% 56.93 52.66
Supertel - Midscale 9.7% 68.7 62.6 -0.2% 69.78 69.93 9.5% 47.93 43.79
All Economy 7.2% 58.1 54.2 -1.2% 52.62 53.28 5.9% 30.55 28.86
Supertel - Economy 4.7% 66.9 63.9 -1.0% 49.20 49.70 3.7% 32.91 31.75
Supertel - Extended
Stay 20.8% 76.0 62.9 -4.9% 23.12 24.31 14.9% 17.58 15.30
** "w/o F&B" indicates without food and beverage.
Industry Source: STR Quarterly Hotel Review
Economy hotels
The company's 54 continuing operations economy hotels reported a 3.7
percent increase in RevPAR, compared to 5.9 percent for the industry, to
$32.91 in the 2010 third quarter, resulting from a 4.7 percent rise in
occupancy to 66.9 percent and a 1.0 percent decrease in ADR to $49.20.
Midscale without food and beverage hotels
Third quarter RevPAR for the company's 28 continuing operations midscale
without food and beverage hotels rose 9.5 percent to $47.93. Occupancy for
these properties rose 9.7 percent while ADR was essentially flat, down 0.2
percent, to $69.78.
Extended-stay hotels
The company's seven continuing operations extended stay hotels reported a
14.9 percent increase in RevPAR to $17.58, reflecting a 20.8 percent rise
in occupancy to 76.0 percent, partially offset by a 4.9 percent decline in
ADR to $23.12.
"We instructed our operators to focus on building occupancy, rather than
driving room rate during the quarter, especially at our extended-stay
properties," Walters noted. "We believe there will be an opportunity to
increase rate in the near future, but expect that it will vary from market
to market and from day to day. We are encouraged by the slow, steady pace
of recovery that is giving us a little more flexibility and a little less
resistance from travelers. Our operators are monitoring revenue management
on a daily basis."
Hotel and property operations expenses from continuing operations for the
2010 third quarter increased $1.0 million, or 5.9 percent, over the like
2009 period, compared to a 6.5 percent improvement in revenues. The
majority of the cost increase was hotel payroll-related as a result of
higher occupancy.
For the 2010 third quarter, property operating income (POI) from continuing
operations increased $0.5 million to $6.7 million, compared to the year-ago
period. POI as a percent of revenue improved 0.4 percentage points from
26.6 percent in the 2009 third quarter to 27.0 percent for the 2010 third
quarter. (POI is calculated as revenue from room rentals and other hotel
services less hotel and property operations expenses.) This increase
resulted from the improvement in revenue exceeding the increase in
expenses. "In addition to more focused operations management, the sale of
non-strategic hotels, which typically have lower performance metrics, is
having a positive effect on margins," he said.
General and administration expense from continuing operations for the 2010
third quarter dropped $0.3 million compared to the prior period. "We
continue to root out excess costs and lower our overall expenses," he
noted.
Dispositions
During the third quarter, one hotel was sold for a price of $1.1 million
with net proceeds used to reduce debt. Subsequent to the third quarter,
five hotels were sold for an aggregate $5.8 million, the net proceeds of
which were also used to reduce debt. As of today, the company has 17
properties held for sale.
Impairment of $1.3 million was recorded on seven of the 22 properties
classified in discontinued operations in the third quarter. A total of
$0.4 million of impairment was recovered on two held for sale properties,
for a net impairment charge of $0.9 million. The new impairment was the
result of the continued decline of real estate prices, resulting in a
reduction in the estimated value of these hotels.
"Buyers have shown a lot of interest in our properties, but getting the
hotels to closing is taking longer than we originally forecasted. Credit
availability remains a challenge for buyers, but has improved somewhat as
of late," said Connie Scarpello, Supertel's chief financial officer.
Balance Sheet
The company as of September 30, 2010 has $145.5 million in outstanding debt
on hotels in continuing operations with an average term of 4.4 years and
weighted average annual interest rate of 6.2 percent.
The Wells Fargo mortgage loan, maturing on August 12, 2010, was extended to
March 12, 2011 and currently has a balance of $5.4 million.
Dividends
The company did not declare a common stock dividend for the 2010 third
quarter. Preferred dividends have continued uninterrupted. The company
will monitor requirements to maintain its REIT status and will continue to
evaluate the dividend policy on a quarterly basis.
Outlook
"We continue to make progress in making Supertel a stronger, more viable
company," Walters said. "If we maintain our disposition program at the
current pace, we will have a much stronger portfolio by mid-year 2011.
While we still have a ways to go and the economic rebound remains
uncertain, we have begun very preliminary stages of planning to restructure
our portfolio with larger, more midscale properties in markets with higher
barriers to new competition. We believe this will give us greater
protection during the negative part of the hotel economic cycle and overall
better returns on our investment. This will not happen until we get our
balance sheet in much better shape, but we are encouraged enough to begin
thinking about how to execute the next phase of our strategy and put the
company back on a growth track and restore the dividend."
About Supertel Hospitality, Inc.
As of November 10, 2010, Supertel Hospitality, Inc. owns 106 hotels
aggregating 9,353 rooms in 23 states. The company's hotel portfolio
includes Super 8, Comfort Inn/Comfort Suites, Hampton Inn, Holiday Inn
Express, Supertel Inn, Days Inn, Ramada Limited, Guest House Inn, Sleep
Inn, Savannah Suites, Masters Inn, Key West Inns and Baymont Inn. This
diversity enables the company to participate in the best practices of each
of these respected hospitality partners. The company specializes in
limited service hotels, which do not normally offer food and beverage
service. For more information or to make a hotel reservation, visit
www.supertelinc.com.
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:
The following table sets forth the Company's balance sheet as of September
30, 2010 and December 31, 2009. The Company owned 111 hotels (including 22
hotels held for sale) at September 30, 2010 and 115 hotels (including 19
hotels held for sale) as of December 31, 2009 respectively. (in thousands,
except share and per share data).
As of
September 30, December 31,
2010 2009
----------- -----------
(unaudited)
ASSETS
Investments in hotel properties $ 302,265 $ 302,759
Less accumulated depreciation 87,823 80,110
----------- -----------
214,442 222,649
Cash and cash equivalents 612 428
Accounts receivable, net of allowance for
doubtful accounts of $93 and $95 2,292 2,043
Prepaid expenses and other assets 7,628 4,779
Deferred financing costs, net 1,100 1,414
Investment in hotel properties, held for sale,
net 34,384 43,082
----------- -----------
$ 260,458 $ 274,395
=========== ===========
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable, accrued expenses and other
liabilities $ 13,842 $ 10,340
Debt related to hotel properties held for sale 32,991 35,575
Long-term debt 145,526 153,938
----------- -----------
192,359 199,853
----------- -----------
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
EQUITY
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 121,379 120,153
Distributions in excess of retained earnings (62,303) (54,420)
----------- -----------
Total shareholders' equity 59,565 65,961
Noncontrolling interest
Noncontrolling interest in consolidated
partnership, redemption value $201 and $237 361 408
----------- -----------
Total equity 59,926 66,369
----------- -----------
COMMITMENTS AND CONTINGENCIES
$ 260,458 $ 274,395
=========== ===========
The following table sets forth the Company's unaudited results of
operations for the three and nine months ended September 30, 2010 and 2009,
respectively.
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2010 2009 2010 2009
-------- -------- -------- --------
REVENUES (unaudited) (unaudited)
Room rentals and other hotel
services $ 24,878 $ 23,364 $ 66,185 $ 64,781
-------- -------- -------- --------
EXPENSES
Hotel and property operations 18,161 17,157 50,214 47,797
Depreciation and amortization 2,850 2,923 8,598 8,790
General and administrative 782 1,120 2,582 3,138
-------- -------- -------- --------
21,793 21,200 61,394 59,725
-------- -------- -------- --------
EARNINGS BEFORE NET LOSS ON
DISPOSITIONS OF ASSETS, OTHER
INCOME, INTEREST EXPENSE AND
INCOME TAXES 3,085 2,164 4,791 5,056
Net loss on dispositions of assets (16) (26) (57) (78)
Other income 31 28 92 100
Interest expense (2,425) (2,467) (7,331) (7,324)
Impairment - - (2,147) -
-------- -------- -------- --------
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES 675 (301) (4,652) (2,246)
Income tax (expense) benefit (98) 231 578 858
-------- -------- -------- --------
INCOME (LOSS) FROM CONTINUING
OPERATIONS 577 (70) (4,074) (1,388)
Loss from discontinued operations,
net of tax (668) (939) (2,709) (703)
-------- -------- -------- --------
NET LOSS (91) (1,009) (6,783) (2,091)
Noncontrolling interest (13) (38) 5 (21)
-------- -------- -------- --------
NET LOSS ATTRIBUTABLE TO
CONTROLLING INTERESTS (104) (1,047) (6,778) (2,112)
Preferred stock dividends (368) (368) (1,105) (1,105)
-------- -------- -------- --------
NET LOSS ATTRIBUTABLE
TO COMMON SHAREHOLDERS $ (472) $ (1,415) $ (7,883) $ (3,217)
======== ======== ======== ========
NET INCOME (LOSS) PER COMMON SHARE
- BASIC AND DILUTED
EPS from continuing operations $ 0.01 $ (0.02) $ (0.23) $ (0.12)
======== ======== ======== ========
EPS from discontinued operations $ (0.03) $ (0.04) $ (0.12) $ (0.03)
======== ======== ======== ========
EPS Basic and Diluted $ (0.02) $ (0.06) $ (0.35) $ (0.15)
======== ======== ======== ========
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Unaudited-In thousands, except per share data:
Three months ended Nine Months ended
September 30, September 30,
2010 2009 2010 2009
-------- -------- -------- --------
Weighted average shares outstanding
for: calculation of earnings per
share and FFO per share - basic
and diluted 22,880 21,880 22,435 21,542
======== ======== ======== ========
Reconciliation of net income to FFO
Net income (loss) attributable to
common shareholders $ (472) $ (1,415) $ (7,883) $ (3,217)
Depreciation and amortization 2,908 3,559 8,959 10,870
Net gain on disposition of assets (46) (83) (513) (1,047)
-------- -------- -------- --------
FFO available to common shareholders 2,390 2,061 563 6,606
Impairment 933 693 5,649 843
-------- -------- -------- --------
FFO without impairment, a non-cash
item $ 3,323 $ 2,754 $ 6,212 $ 7,449
======== ======== ======== ========
FFO per share - basic $ 0.10 $ 0.09 $ 0.03 $ 0.31
======== ======== ======== ========
FFO without impairment, a non-cash
item, per share - basic $ 0.15 $ 0.13 $ 0.28 $ 0.35
======== ======== ======== ========
FFO per share - diluted $ 0.10 $ 0.09 $ 0.03 $ 0.31
======== ======== ======== ========
FFO without impairment, a non-cash
item, per share - diluted $ 0.15 $ 0.13 $ 0.28 $ 0.35
======== ======== ======== ========
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, 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 in this unprecedented economic time.
To arrive at FFO without impairment, a non-cash item, 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 and our liquidity needs change, the potential for impairment
charges of our hotel properties will disappear or become immaterial. We
believe FFO, without impairment, provides investors with an additional
measure to better evaluate our operating performance during 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 operations 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
over the long term.
Three months ended Nine months ended
September 30, September 30,
2010 2009 2010 2009
-------- -------- -------- --------
RECONCILIATION OF NET LOSS TO
ADJUSTED EBITDA
Net loss attributable to common
shareholders $ (472) $ (1,415) $ (7,883) $ (3,217)
Interest, including disc ops 3,011 3,377 9,141 9,783
Income tax benefit, including disc
ops (33) (448) (1,201) (1,506)
Depreciation and amortization,
including disc ops 2,908 3,559 8,959 10,870
-------- -------- -------- --------
EBITDA 5,414 5,073 9,016 15,930
Noncontrolling interest 13 38 (5) 21
Preferred stock dividends 368 368 1,105 1,105
-------- -------- -------- --------
Adjusted EBITDA $ 5,795 $ 5,479 $ 10,116 $ 17,056
======== ======== ======== ========
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 nine months ended September 30, 2010 and
2009, respectively.
Unaudited Three months Nine months
ended ended
September 30, September 30,
2010 2009 2010 2009
------- ------- ------- -------
Same Store:
Revenue per available room
(RevPAR):
Midscale w/o F&B $ 47.93 $ 43.79 $ 42.58 $ 40.82
Economy $ 32.91 $ 31.75 $ 29.16 $ 29.31
Extended Stay $ 17.58 $ 15.30 $ 17.52 $ 15.57
------- ------- ------- -------
Total $ 34.81 $ 32.67 $ 31.16 $ 30.48
======= ======= ======= =======
Average daily room rate (ADR):
Midscale w/o F&B $ 69.78 $ 69.93 $ 66.87 $ 69.53
Economy $ 49.20 $ 49.70 $ 47.28 $ 49.47
Extended Stay $ 23.12 $ 24.31 $ 23.31 $ 24.69
------- ------- ------- -------
Total $ 50.66 $ 51.53 $ 48.54 $ 51.09
======= ======= ======= =======
Occupancy percentage:
Midscale w/o F&B 68.7% 62.6% 63.7% 58.7%
Economy 66.9% 63.9% 61.7% 59.3%
Extended Stay 76.0% 62.9% 75.2% 63.1%
------- ------- ------- -------
Total 68.7% 63.4% 64.2% 59.7%
======= ======= ======= =======
"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 operations, as it better communicates the comparability of its hotels' operating results.
Unaudited-In thousands, except
statistical data: Three months ended Nine months ended
September 30, September 30,
2010 2009 2010 2009
--------- --------- --------- ---------
Total Hotels:
Revenue per available room
(RevPAR): $ 34.81 $ 32.67 $ 31.16 $ 30.48
Average daily room rate
(ADR): $ 50.66 $ 51.53 $ 48.54 $ 51.09
Occupancy percentage: 68.7% 63.4% 64.2% 59.7%
Revenue from room rentals and
other hotel services consists
of:
Room rental revenue $ 24,161 $ 22,676 $ 64,179 $ 62,782
Telephone revenue 74 76 229 224
Other hotel service revenues 643 612 1,777 1,775
--------- --------- --------- ---------
Total revenue from room
rentals and other hotel
services $ 24,878 $ 23,364 $ 66,185 $ 64,781
========= ========= ========= =========
Hotel and property operations
expense
Total hotel and property
operations expense $ 18,161 $ 17,157 $ 50,214 $ 47,797
========= ========= ========= =========
Property Operating Income
("POI")
Total property operating
income $ 6,717 $ 6,207 $ 15,971 $ 16,984
========= ========= ========= =========
POI as a percentage of revenue
from room rentals and other
hotel services
Total POI as a percentage of
revenue 27.0% 26.6% 24.1% 26.2%
========= ========= ========= =========
Same Store reflects 89 hotels.
RECONCILIATION OF NET INCOME
(LOSS) FROM CONTINUING
OPERATIONS TO POI
Net income (loss) $ 577 $ (70) $ (4,074) $ (1,388)
Depreciation and amortization 2,850 2,923 8,598 8,790
Net loss on disposition of
assets 16 26 57 78
Other income (31) (28) (92) (100)
Interest expense 2,425 2,467 7,331 7,324
General and administrative
expense 782 1,120 2,582 3,138
Income tax (benefit) expense 98 (231) (578) (858)
Impairment - - 2,147 -
--------- --------- --------- ---------
POI $ 6,717 $ 6,207 $ 15,971 $ 16,984
========= ========= ========= =========
Net loss as a percentage of
continuing operations revenue
from room rentals and other
hotel services 2.3% (0.3%) (6.2%) (2.1%)
========= ========= ========= =========
Same Store reflects 89 hotels in continuing operations for the three months
and year to date ended September 30, 2010 and 2009.
The following unaudited table presents our RevPAR, ADR and Occupancy, by
region, for the three months ended September 30, 2010 and 2009,
respectively. The comparisons of same store operations are for 89 hotels
in continuing operations as of July 1, 2009.
Three months ended Three months ended
September 30, 2010 September 30, 2009
----------------------- -----------------------
Same Store Room Room
Region Count RevPAR Occupancy ADR Count RevPAR Occupancy ADR
----- ------ -------- ------ ----- ------ -------- ------
Mountain 214 $42.56 82.0% $51.87 214 $40.48 72.9% $55.53
West North
Central 2,447 32.68 66.2% 49.36 2,447 33.60 68.3% 49.17
East North
Central 964 47.49 72.3% 65.67 964 44.74 68.4% 65.44
Middle Atlantic 142 50.03 82.8% 60.42 142 46.43 68.0% 68.23
South
Atlantic 2,645 30.20 69.4% 43.50 2,645 26.69 59.3% 45.01
East South
Central 677 39.16 62.2% 62.92 677 35.35 57.4% 61.59
West South
Central 456 31.29 69.3% 45.17 456 24.88 53.3% 46.73
----- ------ -------- ------ ----- ------ -------- ------
Total Hotels 7,545 $34.81 68.7% $50.66 7,545 $32.67 63.4% $51.53
===== ====== ======== ====== ===== ====== ======== ======
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 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 nine months ended September 30, 2010 and 2009, respectively. The
comparisons of same store operations are for 89 hotels in continuing
operations owned as of January 1, 2009.
Nine months ended Nine months ended
September 30, 2010 September 30, 2009
----------------------- -----------------------
Same Store Room Room
Region Count RevPAR Occupancy ADR Count RevPAR Occupancy ADR
----- ------ -------- ------ ----- ------ -------- ------
Mountain 214 $34.71 70.5% $49.24 214 $34.22 64.9% $52.72
West North
Central 2,447 28.73 60.2% 47.70 2,447 29.99 61.7% 48.57
East North
Central 964 38.42 62.5% 61.43 964 37.13 59.2% 62.71
Middle Atlantic 142 41.46 70.5% 58.85 142 40.22 60.3% 66.71
South Atlantic 2,645 28.82 67.7% 42.55 2,645 27.46 59.2% 46.39
East South
Central 677 35.57 58.5% 60.77 677 34.59 56.1% 61.65
West South
Central 456 31.00 72.0% 43.04 456 25.62 54.7% 46.85
----- ------ -------- ------ ----- ------ -------- ------
Total Hotels 7,545 $31.16 64.2% $48.54 7,545 $30.48 59.7% $51.09
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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 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