SOURCE: Supertel Hospitality, Inc.

Supertel Hospitality, Inc.

August 14, 2014 16:12 ET

Supertel Hospitality Reports 2014 Second Quarter Results

NORFOLK, NE--(Marketwired - August 14, 2014) - Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT), today announced its results for the second quarter ended June 30, 2014. 

2014 Second Quarter Key Events 

  • Revenues from continuing operations of $16.1 million increased 8.6 percent over the same 2013 period.
  • Improved revenue per available room (RevPAR) 8.7 percent to $45.39 for the same-store, continuing operations hotels.
  • Sold five hotels in the second quarter and one hotel following the close of the quarter.
  • Improved Adjusted EBITDA to $5.1 million, an increase of 16.0 percent over the same 2013 period.
  • Increased Adjusted FFO (AFFO) to $2.0 million, an increase of 131.4 percent over the same 2013 period.

Second Quarter Operating and Financial Results

Second quarter 2014 revenues from continuing operations rose 8.6 percent to $16.1 million compared to the same year-ago period. The increase was due in part to improved results at the four hotels rebranded in 2013, improvement in the Washington D.C. market, increased construction business in the Midwest, along with aggressive rate and sales strategies implemented to capitalize on improving economic conditions.

Supertel had a 2014 second quarter net loss attributable to common shareholders of $(11.3) million, or $(3.44) per basic and diluted share, compared to net earnings of $1.5 million or $0.53 per basic share and $(0.01) per diluted share for the same 2013 period. The loss was due to the change in valuation of the derivative liabilities for the quarter. The fair value of the derivative liabilities increased by an aggregate of $11.7 million and decreased by an aggregate of $2.1 million during the second quarter of 2014 and 2013, respectively. The change in fair value is due primarily to a change in the conversion price of the Series C Preferred Stock and exercise price of the related warrants following the completion of the company's 2014 second quarter subscription rights offering.

Funds from operations (FFO) was $(9.6) million for the 2014 second quarter, compared to $3.0 million in the same 2013 period. Adjusted funds from operations (AFFO), which is FFO adjusted to exclude gains and losses on derivative liabilities, acquisition and termination expense, and terminated equity transactions expense, in the 2014 second quarter was $2.0 million, compared to $0.9 million in the same 2013 period.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $(7.4) million for the 2014 second quarter, compared to $6.1 million in the same year-ago period. Adjusted EBITDA, which is EBITDA before noncontrolling interest, net gain/loss on disposition of assets, impairment, preferred stock dividends, unrealized gain/loss on derivatives, acquisition and termination expense and terminated equity transactions expense, was $5.1 million, compared to $4.4 million for the 2013 second quarter.

In the second quarter 2014, the 47-hotel same store portfolio reported an increase in revenue per available room (RevPAR) of 8.7 percent to $45.39, led by a 7.7 percent improvement in occupancy to 69.9 percent, and a 0.9 percent increase in ADR to $64.92, compared to the 2013 second quarter. 

"I am pleased with the improvements we saw in the second quarter," said Jeffrey Dougan, Supertel's Chief Operating Officer. "It is clear that our work to properly position each hotel within its submarket is starting to pay off."

Disposition Program

In the 2014 second quarter the company sold five hotels with an aggregate of 378 rooms and combined gross proceeds of $9.2 million. The proceeds were used to reduce debt.

The five sold hotels include:

  • 65-room Baymont Inn and Suites in Brooks, Kentucky sold April 24, 2014 for $1.7 million
  • 101-room Super 8 in Omaha, West Dodge, Nebraska sold May 6, 2014 for $1.6 million
  • 108-room Super 8 in Boise, Idaho sold June 4, 2014 for $2.8 million
  • 40-room Super 8 in Clarinda, Iowa sold June 11, 2014 for $1.7 million
  • 64-room Super 8 in Norfolk, Nebraska sold June 23, 2014 for $1.4 million

Following the close of the 2014 second quarter, the company sold the 172-room Savannah Suites in Jonesboro, Georgia on July 15, 2014 for $1.4 million.

As of June 30, 2014, the company is marketing 16 hotels for sale and expects to generate approximately $23.7 million in gross proceeds to be used primarily to pay off the underlying loans and provide capital to reinvest in existing core properties.

Subsequent Events

On August 1, 2014, Supertel's revolving credit facility with Great Western Bank was extended to June 30, 2015. Additionally, the interest rate was reduced from 4.95 percent to 4.5 percent.

Capital Reinvestment

The company invested $0.9 million in capital improvements throughout the portfolio in the 2014 second quarter to upgrade its properties and maintain brand standards, bringing the year to date investment to $1.3 million. Notable capital improvements included renovations at the former Captain's Table restaurant located at the Solomons (Beacon Marina), Maryland Comfort Inn; computer upgrades at all hotels to ensure PCI compliance; and an exterior update at the Burlington, Iowa Super 8.

Balance Sheet

As of June 30, 2014, Supertel had $81.7 million in outstanding debt on its continuing operations hotels with an average term of 2.3 years and weighted average annual interest rate of 6.4 percent.

Dividends

The company did not declare a dividend on common stock in the 2014 second quarter. 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: SPPRP), quarterly dividends on the outstanding shares of its 10.00% Series B Preferred Cumulative Stock (NASDAQ: SPPRO), and the quarterly dividends on the outstanding shares of its 6.25% Series C Cumulative Convertible Preferred Stock to preserve capital and improve liquidity. The board of directors will continue to monitor the dividend policy.

Outlook 2014

"The company generated meaningful progress in its operational and financial pursuits in the second quarter. RevPar increased significantly over our same quarter results in 2013, sales of non-core assets continued as called for in our business plan, and Supertel's debt burden is now more consistent with the industry," said Kelly Walters, Supertel's President and Chief Executive Officer.

"Looking forward, the company must grow its asset base to compete effectively for capital in the public markets. Buoyed by the improving balance sheet, the Board of Directors is actively engaged with our financial advisors to chart a path toward restoring our access to equity capital. Patience remains essential as we continue our transformation to premium branded, select service hotels where economies of scale work in our favor."

About Supertel Hospitality, Inc.

Supertel Hospitality, Inc. (NASDAQ: SPPR) is a self-administered real estate investment trust that specializes in the ownership of select-service hotels. The company currently owns 62 hotels comprising 5,459 rooms in 20 states. Supertel's hotels are franchised by a number of the industry's most well-regarded brand families including Hilton, Choice and Wyndham. For more information or to make a hotel reservation, visit www.supertelinc.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:

  
  
Supertel Hospitality, Inc. 
Balance Sheet 
As of June 30, 2014 and December 31, 2013 
(Dollars in thousands, except share and per share data) 
          
          
   As of  
   June 30,   December 31,  
   2014   2013  
   (unaudited)      
            
ASSETS           
 Investments in hotel properties  $192,518   $194,078  
 Less accumulated depreciation   69,220    68,475  
    123,298    125,603  
            
 Cash and cash equivalents   639    45  
 Accounts receivable, net of allowance for doubtful accounts of $17 and $20   
2,187
   
1,083
 
 Prepaid expenses and other assets   5,258    4,000  
 Deferred financing costs, net   2,332    2,601  
 Investment in hotel properties, held for sale, net   28,958    38,753  
   $162,672   $172,085  
            
LIABILITIES AND EQUITY           
LIABILITIES           
 Accounts payable, accrued expenses and other liabilities  $9,662   $7,745  
 Derivative liabilities, at fair value   15,510    5,907  
 Debt related to hotel properties held for sale   23,666    35,224  
 Long-term debt   81,743    82,821  
    130,581    131,697  
            
 Redeemable preferred stock           
  10% 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;           
  8% Series A, 2,500,000 shares authorized, $.01 par value, 803,270 shares outstanding, liquidation preference of $8,033   
8
   
8
 
  6.25% Series C, 3,000,000 shares authorized, $.01 par value, 3,000,000 shares outstanding, liquidation preference of $30,000   
30
   
30
 
  Common stock, $.01 par value, 200,000,000 shares authorized; 4,684,266 and 2,897,539 shares outstanding   
47
   
29
 
 Additional paid-in capital   137,941    135,293  
 Distributions in excess of retained earnings   (113,694 )  (102,747 )
  Total shareholders' equity   24,332    32,613  
Noncontrolling interest           
 Noncontrolling interest in consolidated partnership, redemption value $22 and $87   
97
   
113
 
            
  Total equity   24,429    32,726  
            
COMMITMENTS AND CONTINGENCIES           
   $162,672   $172,085  
         
         
  
  
Supertel Hospitality, Inc. 
Statement of Operations 
For three and six months ended June 30, 2014 and 2013, respectively 
(Dollars in thousands, except per share data) 
                  
                  
   Three Months Ended   Six Months Ended  
   June 30,   June 30,  
   2014   2013   2014   2013  
REVENUES                     
 Room rentals and other hotel services  $16,059   $14,789   $27,349   $26,170  
                      
EXPENSES                     
 Hotel and property operations   11,102    10,878    20,924    20,710  
 Depreciation and amortization   1,617    1,532    3,219    3,122  
 General and administrative   1,092    980    2,077    2,039  
 Acquisition and termination expense   0    28    0    49  
 Terminated equity transactions   (3 )  0    65    0  
    13,808    13,418    26,285    25,920  
                      
EARNINGS BEFORE NET LOSS ON DISPOSITIONS OF ASSETS, OTHER INCOME, INTEREST EXPENSE AND INCOME TAXES   


2,251
   


1,371
   


1,064
   


250
 
                      
Net loss on dispositions of assets   (1 )  (8 )  (27 )  (37 )
Other income (loss)   (11,624 )  2,131    (9,478 )  1,834  
Interest expense   (1,819 )  (1,330 )  (3,548 )  (2,669 )
Loss on debt extinguishment   (94 )  (117 )  (104 )  (208 )
Impairment   0    (7 )  119    (7 )
                      
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES   
(11,287
)  
2,040
   
(11,974
)  
(837
)
                      
Income tax expense   0    0    0    0  
                      
EARNINGS (LOSS) FROM CONTINUING OPERATIONS   
(11,287
)  
2,040
   
(11,974
)  
(837
)
                      
Gain (loss) from discontinued operations, net of tax   829    338    1,011    (850 )
                      
NET EARNINGS (LOSS)   (10,458 )  2,378    (10,963 )  (1,687 )
                      
Loss (earnings) attributable to noncontrolling interest   15    (4 )  16    3  
                      
NET EARNINGS (LOSS) ATTRIBUTABLE TO CONTROLLING INTERESTS   
(10,443
)  
2,374
   
(10,947
)  
(1,684
)
                      
Preferred stock dividends declared and undeclared   (858 )  (837 )  (1,704 )  (1,674 )
                      
NET EARNINGS (LOSS) ATTRIBUTABLE                     
TO COMMON SHAREHOLDERS  $(11,301 ) $1,537   $(12,651 ) $(3,358 )
                      
NET EARNINGS (LOSS) PER COMMON SHARE - BASIC AND DILUTED                     
                   
EPS from continuing operations - Basic  $(3.69 ) $0.41   $(4.42 ) $(0.87 )
EPS from discontinued operations - Basic  $0.25   $0.12   $0.33   $(0.29 )
EPS Basic  $(3.44 ) $0.53   $(4.09 ) $(1.16 )
EPS Diluted  $(3.44 ) $(0.01 ) $(4.09 ) $(1.16 )
                      
                 
  
  
Reconciliation of Non-GAAP Financial Measures 
(Unaudited - In thousands, except per share data) 
                  
   Three months   Six months  
   ended June 30,   ended June 30,  
   2014   2013   2014   2013  
Weighted average shares outstanding for:                     
 calculation of earnings per share - basic   3,287    2,889    3,092    2,888  
 calculation of earnings per share - diluted   3,287    10,389    3,092    2,888  
                      
Weighted average shares outstanding for:                     
 calculation of FFO per share - basic   3,287    2,889    3,092    2,888  
 calculation of FFO per share - diluted   3,287    10,389    3,092    2,890  
                      
Reconciliation of Weighted average number of shares for                     
EPS basic to FFO per share diluted:                     
EPS basic shares   3,287    2,889    3,092    2,888  
 Restricted Stock   -    -    -    2  
 Series C Preferred Stock   -    3,750    -    -  
 Warrants   -    3,750            
FFO per share diluted shares   3,287    10,389    3,092    2,890  
                      
Reconciliation of net loss to FFO                     
Net loss attributable to common shareholders  $(11,301 ) $1,537   $(12,651 ) $(3,358 )
Depreciation and amortization   1,655    1,842    3,331    3,802  
Net (gain) loss on disposition of assets   (465 )  (1,350 )  (608 )  (1,297 )
Impairment   506    954    477    1,461  
FFO  $(9,605 ) $2,983   $(9,451 ) $608  
Unrealized (gain) loss on derivatives   11,718    (2,137 )  9,603    (1,820 )
Gain on debt conversion   (88 )  -    (88 )  -  
Acquisition and termination expense   -    28    -    49  
Terminated equity transactions   (3 )  -    65    -  
Adjusted FFO  $2,022   $874   $129   $(1,163 )
                      
FFO per share - basic  $(2.92 ) $1.03   $(3.06 ) $0.21  
Adjusted FFO per share - basic  $0.62   $0.30   $0.04   $(0.40 )
FFO per share - diluted  $(2.92 ) $0.13   $(3.06 ) $0.21  
Adjusted FFO per share - diluted  $0.17   $0.13   $0.04   $(0.40 )
                      
                 

FFO and Adjusted FFO ("AFFO") are non-GAAP financial measures. We consider FFO and AFFO to be market accepted measures of an equity REIT's operating performance, which are 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, amortization and impairment of real estate assets. We believe our method of calculating FFO complies with the NAREIT definition. AFFO is FFO adjusted to exclude gains or losses on derivative liabilities and gain on debt conversion, which are non-cash charges against income and which do not represent results from our core operations. AFFO also adds back acquisition costs and equity offering expense. FFO and AFFO do 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 and AFFO should not be considered as alternatives to net income (loss) (computed in accordance with GAAP) as an indicator of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. 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.

Diluted FFO per share and diluted Adjusted FFO per share are computed after adjusting the numerator and denominator of the basic computation for the effects of any dilutive potential common shares outstanding during the period. The Company's outstanding stock options and certain warrants to purchase common stock would be antidilutive and are not included in the dilution computation.

We use FFO and AFFO as performance measures to facilitate a periodic evaluation of our operating results relative to those of our peers. We consider FFO and AFFO to be useful additional measures 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 and AFFO provide a meaningful indication of our performance. 

  
  
EBITDA and Adjusted EBITDA 
(Unaudited - In thousands) 
                  
                  
   Three months   Six months  
   ended June 30,   ended June 30,  
   2014   2013   2014   2013  
RECONCILIATION OF NET EARNINGS (LOSS) TO ADJUSTED EBITDA                     
Net earnings (loss) attributable to common shareholders  $
(11,301
) $
1,537
  $
(12,651
) $
(3,358
)
Interest expense, including discontinued operations   
2,167
   
2,097
   
4,347
   
4,327
 
Loss on debt extinguishment   94    608    104    891  
Income tax expense (benefit), including discontinued operations   
0
   
0
   
0
   
0
 
Depreciation and amortization, including discontinued operations   
1,655
   
1,842
   
3,331
   
3,802
 
 EBITDA   (7,385 )  6,084    (4,869 )  5,662  
Noncontrolling interest   (15 )  4    (16 )  (3 )
Net gain on disposition of assets   (465 )  (1,350 )  (608 )  (1,297 )
Impairment   506    954    477    1,461  
Preferred stock dividends declared and undeclared   
858
   
837
   
1,704
   
1,674
 
Unrealized (gain) loss on derivatives   11,718    (2,137 )  9,603    (1,820 )
Gain on debt conversion   (88 )  0    (88 )  0  
Acquisition and termination expense   0    28    0    49  
Terminated equity transactions   (3 )  0    65    0  
 ADJUSTED EBITDA  $5,126   $4,420   $6,268   $5,726  
                      
                 

EBITDA and Adjusted EBITDA are financial measures that are not calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We calculate EBITDA and 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 EBITDA and Adjusted EBITDA also do not represent an amount that accrues directly to common shareholders. In calculating Adjusted EBITDA, we add back noncontrolling interest, net (gain) loss on disposition of assets, preferred stock dividends, acquisition expenses and equity offering expense which are cash charges. We also add back impairment, gain on debt conversion and unrealized gain or loss on derivatives, which are non-cash charges.

EBITDA and Adjusted EBITDA do not represent cash generated from operating activities determined by GAAP and should not be considered as alternatives to net income, cash flow from operations or any other operating performance measure prescribed by GAAP. EBITDA and Adjusted EBITDA are not measures of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to make cash distributions. Neither do the measurements reflect cash expenditures for long-term assets and other items that have been and will be incurred. EBITDA and 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. EBITDA and Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

Property Operating Income (POI) - Continuing and Discontinued Operations

This presentation includes non-GAAP financial measures, and should not be considered as an alternative to loss from continuing operations or loss from discontinued operations, net of tax. 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. Same store results for the quarter are for 47 hotels in continuing operations.

                  
             
Unaudited-in thousands except statistical data:  Three months   Six months  
 ended June 30,   ended June 30,  
   2014   2013   2014   2013  
Total Same Store Hotels:                     
 Revenue per available room (RevPAR):  $45.39   $41.75   $38.75   $37.12  
 Average daily room rate (ADR):  $64.92   $64.35   $62.83   $62.94  
 Occupancy percentage:   69.9 %  64.9 %  61.7 %  59.0 %
                      
Revenue from room rentals and                     
other hotel services consists of:                     
Room rental revenue  $15,514   $14,278   $26,348   $25,246  
Telephone revenue   3    3    5    5  
Other hotel service revenues   542    508    996    919  
 Total revenue from room rentals and other hotel services  $
16,059
  $
14,789
  $
27,349
  $
26,170
 
                      
Hotel and property operations expense                     
 Total hotel and property operations expense  $11,102   $10,878   $20,924   $20,710  
                      
Property Operating Income ("POI")                     
 Total property operating income  $4,957   $3,911   $6,425   $5,460  
                      
POI as a percentage of revenue from room rentals and other hotel services                     
 Total POI as a percentage of revenue   30.9 %  26.4 %  23.5 %  20.9 %
                      
                      
Discontinued Operations                     
                      
Room rentals and other hotel services                     
 Total room rental and other hotel services  $4,739   $7,614   $8,987   $14,411  
                      
Hotel and property operations expense                     
 Total hotel and property operations expense  $3,484   $6,119   $7,104   $12,120  
                      
Property Operating Income ("POI")                     
 Total property operating income  $1,255   $1,495   $1,883   $2,291  
                      
POI as a percentage of revenue from room rentals and other hotel services                     
 Total POI as a percentage of revenue   26.5 %  19.6 %  21.0 %  15.9 %
                      
                 

(Unaudited - In thousands, except statistical data)

POI from continuing operations is reconciled to net loss as follows:                       

             
                  
   Three months   Six months  
   ended June 30,   ended June 30,  
   2014   2013   2014   2013  
                      
                      
Net earnings (loss) from continuing operations  $

(11,287
) $

2,040
  $

(11,974
) $

(837
)
Depreciation and amortization   1,617    1,532    3,219    3,122  
Net loss on disposition of assets   1    8    27    37  
Other (income) expense   11,624    (2,131 )  9,478    (1,834 )
Interest expense   1,819    1,330    3,548    2,669  
Loss on debt extinguishment   94    117    104    208  
General and administrative expense   1,092    980    2,077    2,039  
Acquisition and termination expense   0    28    0    49  
Equity offering expense   (3 )  0    65    0  
Impairment expense   0    7    (119 )  7  
POI - continuing operations  $4,957   $3,911   $6,425   $5,460  
                      
                 

POI from discontinued operations is reconciled to loss from discontinued operations, net of tax, as follows:

                  
                  
   Three months   Six months  
   ended June 30,   ended June 30,  
   2014   2013   2014   2013  
Gain (loss) from discontinued operations  $829   $338   $1,011   $(850 )
Depreciation and amortization from discontinued operations   

38
   

310
   

112
   

680
 
Net gain on disposition of assets from discontinued operations   

(466
)  

(1,358
)  

(635
)  

(1,334
)
Interest expense from discontinued operations   348    767    799    1,658  
Loss on debt extinguishment   0    491    0    683  
Impairment losses from discontinued operations   506    947    596    1,454  
POI - discontinued operations  $1,255   $1,495   $1,883   $2,291  
                      
                 
             
                  
   Three months   Six months  
   ended June 30,   ended June 30,  
   2014   2013   2014   2013  
                      
POI--continuing operations   4,957    3,911    6,425    5,460  
POI--discontinued operations   1,255    1,495    1,883    2,291  
Total - POI  $6,212   $5,406   $8,308   $7,751  
                      
Total POI as a percentage of revenues   29.9 %  24.1 %  22.9 %  19.1 %
                      
                 

The comparisons of same store operations are for 47 hotels in continuing operations as of April 1, 2013 for the three months ended June 30, 2014 and exclude 16 properties held for sale.

 
 
Supertel Hospitality, Inc.
Operating Statistics by Region
For three and six months ended June 30, 2014 and 2013, respectively
(Unaudited - except per share data)
                           
                           
   Three months ended June 30, 2014  Three months ended June 30, 2013
   Room            Room          
Region  Count  RevPAR  Occupancy   ADR  Count  RevPAR  Occupancy   ADR
Mountain  106  $47.14  79.6 % $59.26  106  $47.46  83.6 % $56.79
West North Central  1,150   38.98  71.2 %  54.73  1,150   37.54  69.4 %  54.09
East North Central  723   47.80  68.5 %  69.78  723   45.83  67.0 %  68.42
Middle Atlantic  142   48.48  78.0 %  62.18  142   46.54  74.3 %  62.61
South Atlantic  1,097   53.82  70.2 %  76.62  1,097   47.13  60.6 %  77.80
East South Central  364   45.28  67.4 %  67.14  364   38.46  59.4 %  64.75
West South Central  176   21.58  58.1 %  37.12  176   18.63  46.1 %  40.44
Total Same Store  3,758  $45.39  69.9 % $64.92  3,758  $41.75  64.9 % $64.35
                               
Total Continuing Operations  3,758  $45.39  69.9 % $64.92  3,758  $41.75  64.9 % $64.35
                               
States included in the Regions
Mountain  Montana
West North Central  Iowa, Kansas, Missouri, Nebraska and South Dakota
East North Central  Indiana and Wisconsin
Middle Atlantic  Pennsylvania
South Atlantic  Florida, Maryland, North Carolina,
   Virginia and West Virginia
East South Central  Kentucky and Tennessee
West South Central  Louisiana
    
   
   Three months ended June 30, 2014  Three months ended June 30, 2013
   Room                 Room               
Brand  Count  RevPAR  Occupancy  ADR  Count  RevPAR  Occupancy  ADR
Select Service                                    
 Upscale                                    
  Hilton Garden Inn  100  $ 85.19  73.4 %  $ 116.03  100  $ 87.85  69.3 %  $ 126.71
 Total Upscale  100  $ 85.19  73.4 %  $ 116.03  100  $ 87.85  69.3 %  $ 126.71
 Upper Midscale                                    
  Comfort Inn / Suites  1,298    54.11  71.9 %    75.28  1,298    48.66  65.8 %    74.00
  Other Upper Midscale  59    34.29  50.5 %    67.83  59    26.54  40.5 %    65.50
  Total Upper Midscale  1,357  $ 53.25  71.0 %  $ 75.04  1,357  $ 47.70  64.7 %  $ 73.77
 Midscale                                    
  Sleep Inn  90    50.03  65.7 %    76.13  90    45.20  58.9 %    76.74
  Quality Inn  122    40.26  56.2 %    71.65  122    32.20  46.7 %    68.89
 Total Midscale  212  $ 44.41  60.2 %  $ 73.72  212  $ 37.72  51.9 %  $ 72.67
 Economy                                    
  Days Inn  642    35.86  66.3 %    54.08  642    34.10  62.5 %    54.61
  Super 8  1,246    37.95  72.1 %    52.64  1,246    36.37  70.3 %    51.71
  Other Economy (1)  201    50.18  69.5 %    72.23  201    40.67  51.7 %    78.63
 Total Economy  2,089  $ 38.48  70.1 %  $ 54.93  2,089  $ 36.09  66.1 %  $ 54.58
                                     
Total Same Store  3,758  $ 45.39  69.9 %  $ 64.92  3,758  $ 41.75  64.9 %  $ 64.35
                                     
                                     
Total Continuing Operations  3,758  $ 45.39  69.9 %  $ 64.92  3,758  $ 41.75  64.9 %  $ 64.35
                                     
1  Includes Rodeway Inn and Independent Brands

The comparisons of same store operations are for 47 hotels in continuing operations as of January 1, 2013 for the six months ended June 30, 2014 and exclude 16 properties held for sale.

                       
                                     
   Six months ended June 30, 2014  Six months ended June 30, 2013
   Room                 Room               
Region  Count  RevPAR  Occupancy  ADR  Count  RevPAR  Occupancy  ADR
Mountain  106  $ 39.90  70.1 %  $ 56.90  106  $ 39.19  71.1 %  $ 55.13
West North Central  1,150    32.87  62.2 %    52.88  1,150    31.99  60.8 %    52.58
East North Central  723    42.04  62.0 %    67.85  723    39.44  59.9 %    65.81
Middle Atlantic  142    40.78  69.2 %    58.91  142    40.72  67.6 %    60.28
South Atlantic  1,097    45.69  61.5 %    74.30  1,097    44.38  58.7 %    75.63
East South Central  364    37.45  57.5 %    65.11  364    34.21  53.4 %    64.10
West South Central  176    20.86  56.0 %    37.26  176    17.66  42.0 %    42.06
Total Same Store  3,758  $ 38.75  61.7 %  $ 62.83  3,758  $ 37.12  59.0 %  $ 62.94
                                     
                                     
Total Continuing Operations  3,758  $ 38.75  61.7 %  $ 62.83  3,758  $ 37.12  59.0 %  $ 62.94
                                     
States included in the Regions  
Mountain  Idaho and Montana
West North Central  Iowa, Kansas, Missouri and Nebraska
East North Central  Indiana and Wisconsin
Middle Atlantic  Pennsylvania
South Atlantic  Florida, Maryland, North Carolina,
   Virginia and West Virginia
East South Central  Kentucky and Tennessee
West South Central  Louisiana
    
   
     
     
   Six months ended June 30, 2014  Six months ended June 30, 2013
   Room                 Room               
Brand  Count  RevPAR  Occupancy  ADR  Count  RevPAR  Occupancy  ADR
Select Service                                    
 Upscale                                    
  Hilton Garden Inn  100  $ 73.26  65.7 %  $ 111.58  100  $ 81.83  64.6 %  $ 126.61
 Total Upscale  100  $ 73.26  65.7 %  $ 111.58  100  $ 81.83  64.6 %  $ 126.61
 Upper Midscale                                    
  Comfort Inn / Suites  1,298  $ 45.79  63.4 %  $ 72.25  1,298  $ 42.92  60.5 %  $ 70.88
  Clarion  59    31.18  47.0 %    66.30  59    30.48  44.1 %    69.07
 Total Upper Midscale  1,357  $ 45.16  62.7 %  $ 72.06  1,357  $ 42.37  59.8 %  $ 70.82
 Midscale                                    
  Sleep Inn  90    41.43  58.4 %    70.94  90    38.81  53.7 %    72.32
  Quality Inn  122    31.99  46.8 %    68.38  122    25.55  38.3 %    66.66
 Total Midscale  212  $ 36.00  51.7 %  $ 69.61  212  $ 31.18  44.8 %  $ 69.53
 Economy                                    
  Days Inn  642    30.79  59.4 %    51.81  642    30.42  57.0 %    53.32
  Super 8  1,246    31.81  62.6 %    50.80  1,246    30.65  61.2 %    50.11
  Other Economy (1)  201    49.78  64.9 %    76.64  201    47.09  57.8 %    81.53
 Total Economy  2,089  $ 33.22  61.9 %  $ 53.71  2,089  $ 32.16  59.6 %  $ 53.98
                                     
Total Same Store  3,758  $ 38.75  61.7 %  $ 62.83  3,758  $ 37.12  59.0 %  $ 62.94
                                     
Total Continuing Operations  3,758  $ 38.75  61.7 %  $ 62.83  3,758  $ 37.12  59.0 %  $ 62.94
                                     
                                     
1  Includes Rodeway Inn and Independent Brands
   
   

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