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Press Release


Condor Hospitality Trust Reports First Quarter 2018 Results

Company Release - 5/9/2018 4:10 PM ET

BETHESDA, Md.--(BUSINESS WIRE)-- Condor Hospitality Trust, Inc. (NYSE American: CDOR) (the “Company”) today announced results for the first quarter ended March 31, 2018.

FIRST QUARTER RELEASE FINANCIAL HIGHLIGHTS

  • Revenue of $16.7 million a 61% Increase to Revenue of $10.4 million in Last Year’s First Quarter
  • Net Earnings Attributable to Common Shareholders of $0.6 million or $0.05 per Diluted Share
  • Adjusted Funds from Operations Increased to $3.5 million, or $0.29 per Diluted Share, a 994% increase from $0.3 million in Last Year’s First Quarter
  • Hotel EBITDA Increased to $7.4 million from $4.0 million, and Adjusted EBITDAre Increased 136% Over Last Year’s First Quarter
  • Achieved 3.9% First Quarter Same-Store RevPAR Growth over Prior Year*
  • Expanded First Quarter Same-Store Hotel EBITDA Margin by 60 Basis Points to 38.9% over Prior Year*

FIRST QUARTER PORTFOLIO ACCOMPLISHMENTS

  • Acquired Two New Investment Platform Hotels for Approximately $36.1 million
  • Sold Two Legacy Assets Generating $8.2 million in Gross Proceeds

*New investment platform hotels only; Includes results prior to our ownership to illustrate same-store performance

MANAGEMENT COMMENTARY

Bill Blackham, Condor’s Chief Executive Officer, commented:

“With the transformation of Condor substantially complete, we continued to deliver strong operating results in the first quarter of 2018 due to our differentiated acquisition strategy of acquiring relatively new high-quality select-service hotels mostly in leading secondary markets. We achieved 3.9% same-store RevPAR growth and expanded hotel EBITDA margins by 60 bps on our new investment platform hotels. Our differentiated investment thesis and our intensive asset management efforts are responsible for our favorable operating performance in the quarter.

In addition to our strong operating results, we also achieved notable portfolio accomplishments. In the first quarter, we sold two legacy hotel assets generating gross proceeds of $8.2 million and acquired two new investment platform hotels, located in Austin and Charleston, for $36.1 million. We now have only three legacy hotels remaining, one of which is under contract to be sold. Additionally, with the acquisition of the two new investment platform hotels, we have now assembled a portfolio of 15 high-quality, select-service assets in attractive growth markets with an average age of less than 4 years.”

FINANCIAL SUMMARY

At March 31, 2018, the Company’s total portfolio included 18 hotels, representing 2,215 rooms.

           

Total Company Financial Results

($ in millions except per share amounts)

 
Three months ended March 31,
2018 2017 Change
Revenue $ 16.7 $ 10.4 61.0%
Net Earnings (Loss) Attributable to Common Shareholders $ 0.6 $ (14.0 ) N/A
Diluted Earnings (Loss) per Share $ 0.05 $ (4.75 ) N/A
 
Funds from Operations (FFO)* $ 3.3 $ (0.7 ) N/A
FFO per Diluted Share* $ 0.26 $ (4.19 ) N/A
Adjusted FFO* $ 3.5 $ 0.3 994.4%
Adjusted FFO per Diluted Share* $ 0.29 $ 0.10 190.0%
 
Hotel EBITDA* $ 7.4 $ 4.0 83.8%
Adjusted EBITDAre* $ 5.8 $ 2.5 135.7%
 

*Please see the Reg. G reconciliation tables at the end of this release.

The improvement in year-over-year financial performance was primarily driven by higher revenue and higher margins from the New Investment Platform hotels.

NEW INVESTMENT PLATFORM

At March 31, 2018, the Company’s new investment platform included 15 hotels, representing 1,908 rooms.

           

New Investment Platform Operational Results**

($ in millions except per share amounts and operating metrics)

 
Three months ended March 31,
2018 2017 Change
Same-Store RevPAR $ 102.01 $ 98.16 3.9%
Same-Store Occupancy 79.74% 79.39% 0.4%
Same-Store ADR $ 127.93 $ 123.64 3.5%
 
Same-Store Hotel EBITDA*^ $ 6.2 $ 6.2 1.0%
Same-Store Hotel EBITDA Margin* 38.9% 38.3% 0.6%
 

*Please see the Reg. G reconciliation tables at the end of this release.

**Financial results presented above include results from prior to our ownership.

^Due to differences in the allocation of JV preferred returns, JV activity was 100% attributed to Condor in the first quarter of 2017 and 80% attributed to Condor in the first quarter of 2018

LEGACY PLATFORM

At March 31, 2018, the Company’s legacy platform included 3 hotels, representing 307 rooms.

 

Legacy Platform Operational Results*

($ in millions except per share amounts and operating metrics)

           
Three months ended March 31,
2018 2017 Change
Same-Store RevPAR $ 49.91 $ 51.01 -2.2%
Same-Store Occupancy 68.82% 74.69% -7.9%
Same-Store ADR $ 72.51 $ 68.29 6.2%
 
Same-Store Hotel EBITDA* $ 0.4 $ 0.4 -1.8%
Same-Store Hotel EBITDA Margin* 25.9% 25.8% 0.2%
 

* Please see the Reg. G reconciliation tables at the end of this release.

PORTFOLIO ACTIVITY

The Company’s investment strategy is to assemble a portfolio of premium-branded, select-service hotels in the top 100 Metropolitan Statistical Areas (“MSAs”) with a particular focus on MSAs ranked between 20 to 60. Since restarting its portfolio transformation in 2015, the Company has acquired 14 high-quality select-service hotels representing 1,808 rooms in its target markets for a total purchase price of approximately $277 million. Additionally, during this time, the Company has sold 52 legacy assets for a total gross sales price of approximately $153 million.

Acquisitions

During the first quarter of 2018, the Company acquired the TownePlace Suites Austin North Tech Ridge and the Home2 Suites Summerville-Charleston in South Carolina for a combined purchase price of $36.1 million. Aimbridge Hospitality was retained as the manager of the TownePlace Suites while Inn Ventures is the manager of our new Home2 Suites.

Dispositions

During the first quarter of 2018, the Company sold the Supertel Inn in Creston, IA for $2.1 million and the Comfort Suites in South Bend, IN for $6.1 million. Net proceeds from the sales were applied to outstanding debt on the Company’s $150 million secured credit facility. The Company has only three legacy hotels remaining in the portfolio, and one of these hotels is currently under contract for sale while another is being marketed for sale.

BALANCE SHEET AND CAPITAL MARKETS ACTIVITY

As of March 31, 2018, the Company had cash and cash equivalents (including restricted cash) of $9.6 million and available revolver lending capacity of $3.3 million. As of March 31, 2018, the Company had total outstanding long-term debt of $145.0 million associated with assets held for use with a weighted average maturity of 2.8 years and a weighted average interest rate of 4.29%.

During the first quarter of 2018, the Company sold 12,334 shares of common stock under the ATM program at an average sales price of $10.40 per share for net proceeds totaling approximately $103,000.

CAPITAL INVESTMENTS

The Company invested $0.7 million in capital improvements throughout the portfolio in the quarter ended March 31, 2018, to upgrade its properties and maintain brand standards.

OUTLOOK AND GUIDANCE

The Company reiterates its previously announced 2018 Outlook Forecast as included below. Condor plans to reexamine full year 2018 guidance following the end of the second quarter of 2018.

       
 
2018 Outlook ($ in millions except per share amounts) Low High
RevPAR growth (13 new investment platform hotels owned as of December 31, 2017) 3.0% 4.5%
2018 Outlook for 17-Hotel Portfolio
Forecast hotel revenue $ 74.0 $ 75.4
Forecast net earnings $ 1.7 $ 2.5
Forecast earnings per share - Diluted $ 0.09 $ 0.16
Forecast Hotel EBITDA* $ 28.8 $ 29.7
Forecast AFFO per common share and common unit - Diluted* $ 1.13 $ 1.19
 

*Please see the Reg. G reconciliation tables at the end of this release.

DIVIDENDS

On March 22, 2018, the Board of Directors declared a quarterly cash common stock dividend of $0.195 per share for the first quarter of 2018. The common stock dividend represented an annualized yield of approximately 7.6% based on the closing price of the Company’s common shares on March 21, 2018. The first quarter dividend was paid on April 9, 2018 to shareholders of record as of April 2, 2018.

EARNINGS CALL

The Company will conduct its quarterly conference call on Thursday, May 10, 2018, at 9:30 AM ET. To participate in the conference call, dial 1-877-425-9470 [International: 1-201-389-0878] approximately ten minutes before the call begins.

A live webcast of the Earnings Call will also be available through the Company's website. To access, log on to http://condorhospitality.com ten minutes prior to the call. A replay of the conference call webcast will be archived and available online through the Investor Relations section of http://condorhospitality.com.

About Condor Hospitality Trust, Inc.

Condor Hospitality Trust, Inc. (NYSE American: CDOR) is a self-administered real estate investment trust that specializes in the investment and ownership of upper midscale and upscale, premium-branded, select-service, extended-stay, and limited-service hotels in the top 100 Metropolitan Statistical Areas (“MSAs”) with a particular focus on the top 20 to 60 MSAs. The Company currently owns 18 hotels in 10 states. Condor’s hotels are franchised by a number of the industry’s most well-regarded brand families including Hilton, Marriott, and InterContinental Hotels.

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 events, results or performance to differ from those projected presented in the forward-looking statement. These forward-looking statements are based on assumptions that management has made in light of experience in the business in which the Company operates, as well as other factors management believes to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of events, performance or results. They involve risks, uncertainties (some of which are beyond the Company’s control) and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect events, performance or results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include among other things, risk factors described from time to time in the Company’s filings with the Securities and Exchange Commission. The Company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.

 

SELECTED FINANCIAL DATA:

 

Condor Hospitality Trust, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited - In thousands, except share and per share data)

 
       
As of
March 31, 2018 December 31, 2017
 

Assets

Investment in hotel properties, net $ 240,307 $ 205,730
Investment in unconsolidated joint venture 7,616 7,747
Cash and cash equivalents 4,609 5,441
Restricted cash, property escrows 4,983 4,894
Accounts receivable, net 1,995 1,707
Prepaid expenses and other assets 2,274 3,220
Derivative assets, at fair value 818 391
Investment in hotel properties held for sale, net   6,115     13,850  
Total Assets $ 268,717   $ 242,980  
 

Liabilities and Equity

 
Liabilities
Accounts payable, accrued expenses, and other liabilities $ 6,835 $ 7,046
Dividends and distributions payable 2,479 2,470
Convertible debt, at fair value 1,049 1,069
Long-term debt, net of deferred financing costs 141,825 112,621
Long-term debt related to hotel properties held for sale, net of deferred financing costs   6,007     7,960  
Total Liabilities 158,195 131,166
 
Equity
Shareholders' Equity
Preferred stock, 40,000,000 shares authorized:
6.25% Series E, 925,000 shares authorized, $.01 par value, 925,000 shares outstanding, liquidation preference of $9,395 10,050 10,050
Common stock, $.01 par value, 200,000,000 shares authorized; 11,873,139 and 11,833,573 shares outstanding 119 118
Additional paid-in capital 231,071 230,727
Accumulated deficit   (132,164 )   (130,489 )
Total Shareholders' Equity 109,076 110,406
Noncontrolling interest in consolidated partnership (Condor Hospitality Limited Partnership), redemption value of $925 and $871   1,446     1,408  
Total Equity 110,522 111,814
           
Total Liabilities and Equity $ 268,717   $ 242,980  
 
 

Condor Hospitality Trust, Inc. and Subsidiaries

Consolidated Statements of Operations

(Unaudited - In thousands, except per share data)

       
 
Three months ended March 31,
2018 2017
Revenue
Room rentals and other hotel services $ 16,679   $ 10,361  
Operating Expenses
Hotel and property operations 10,414 7,613
Depreciation and amortization 2,259 1,051
General and administrative 1,869 1,492
Acquisition and terminated transactions 19 502
Equity transactions   -     343  
Total operating expenses   14,561     11,001  
Operating income (loss) 2,118 (640 )
Net loss on disposition of assets (24 ) (3 )
Equity in earnings of joint venture 229 111
Net gain on derivatives and convertible debt 447 175
Other expense, net (14 ) (1 )
Interest expense (1,928 ) (971 )
Loss on debt extinguishment - (800 )
Impairment (loss) recovery, net   93     (271 )
Earnings (loss) from continuing operations before income taxes 921 (2,400 )
Income tax expense   (129 )   -  
Net earnings (loss) 792 (2,400 )
(Earnings) loss attributable to noncontrolling interest   (6 )   50  
Net earnings (loss) attributable to controlling interests 786 (2,350 )
Dividends declared and in kind dividends deemed on preferred stock   (144 )   (11,603 )
Net earnings (loss) attributable to common shareholders $ 642   $ (13,953 )
 

Earnings per Share

Total - Basic Earnings (Loss) per Share $ 0.05 $ (4.75 )
Total - Diluted Earnings (Loss) per Share $ 0.05 $ (4.75 )
 

Reconciliation of Non-GAAP Financial Measures (Unaudited)

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

FFO and AFFO

The following table reconciles net earnings (loss) to FFO and AFFO for the three months ended March 31, 2018 and 2017 (in thousands). All amounts presented include our portion of the results of our unconsolidated Atlanta JV.

       
Three months ended March 31,

Reconciliation of Net earnings (loss) to FFO and AFFO

2018 2017
Net earnings (loss) $ 792 $ (2,400 )
Depreciation and amortization expense 2,259 1,051
Depreciation and amortization expense from JV 285 354
Net loss on disposition of assets 24 3
Net loss on disposition of assets from JV 7 1
Impairment loss (recovery), net   (93 )   271  
FFO 3,274 (720 )
Dividends declared and in kind dividends deemed on preferred stock   (144 )   (11,603 )
FFO attributable to common shares and common units 3,130 (12,323 )
Net gain on derivatives and convertible debt (447 ) (175 )
Acquisition and terminated transactions expense 19 502
Equity transactions expense - 343
Loss on debt extinguishment - 800
Stock-based compensation and LTIP expense 402 77
Amortization of deferred financing fees 353 136
Amortization of deferred financing fees from JV 45 57
Non-recurring dividends above stated rates declared and in kind dividends deemed on preferred stock   -     10,903  
AFFO attributable to common shares and common units $ 3,502   $ 320  
 
FFO attributable to common shares and common units - Basic Shares $ 3,130 $ (12,323 )
Preferred dividends and fair value adjustments   111     -  
FFO attributable to common shares and common units - Diluted Shares $ 3,241   $ (12,323 )
 
FFO per common share and common unit - Basic $ 0.26 $ (4.19 )
FFO per common share and common unit - Diluted $ 0.26 $ (4.19 )
 
Weighted average common shares and common units - Basic FFO 11,835,279 3,089,987
Weighted average common shares and common units - Diluted FFO 12,536,203 3,089,987
 
AFFO attributable to common shares and common units - Basic Shares $ 3,502 $ 320
Convertible note interest 16 -
Preferred dividends at stated rates   144     -  
AFFO attributable to common shares and common units - Diluted Shares $ 3,662   $ 320  
 
AFFO per common share and common unit - Basic $ 0.30 $ 0.10
AFFO per common share and common unit - Diluted $ 0.29 $ 0.10
 
Weighted average common shares and common units - Basic 11,835,279 3,089,987
Weighted average common shares and common units - Diluted 12,633,472 3,106,961
 

We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net earnings or loss computed in accordance with GAAP, excluding gains or losses from sales of real estate assets, impairment, and the depreciation and amortization of real estate assets. FFO is calculated both for the Company in total and as FFO attributable to common shares and common units, which is FFO reduced by preferred stock dividends. AFFO is FFO attributable to common shares and common units adjusted to exclude items we do not believe are representative of the results from our core operations, including non-cash gains or losses on derivatives and convertible debt, stock-based compensation expense, amortization of certain fees, losses on debt extinguishment, and in-kind dividends above stated rates, and cash charges for acquisition and equity transaction costs. All REITs do not calculate FFO and AFFO in the same manner; therefore, our calculation may not be the same as the calculation of FFO and AFFO for similar REITs.

We consider FFO to be 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 assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, we believe that FFO provides a meaningful indication of our performance. We believe that AFFO provides useful supplemental information to investors regarding our ongoing operating performance that, when considered with net income and FFO, is beneficial to an investor’s understanding of our operating performance. We present FFO and AFFO per common share and common unit because our common units are redeemable for common shares. We believe it is meaningful for the investor to understand FFO and AFFO applicable to common shares and common units.

EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA

The following table reconciles net earnings (loss) to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA for the three months ended March 31, 2018 and 2017 (in thousands). All amounts presented our portion of the results of our unconsolidated Atlanta JV.

       
Three months ended March 31,

Reconciliation of Net earnings (loss) to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA

2018 2017
Net earnings (loss) $ 792 $ (2,400 )
Interest expense 1,928 971
Interest expense from JV 492 662
Loss on debt extinguishment - 800
Income tax expense 129 -
Depreciation and amortization expense 2,259 1,051
Depreciation and amortization expense from JV   285     354  
EBITDA 5,885 1,438
Net loss on disposition of assets 24 3
Net loss on disposition of assets from JV 7 1
Impairment loss (recovery), net   (93 )   271  
EBITDAre 5,823 1,713
Net gain on derivatives and convertible debt (447 ) (175 )
Stock-based compensation and LTIP expense 402 77
Acquisition and terminated transactions expense 19 502
Equity transactions expense   -     343  
Adjusted EBITDAre 5,797 2,460
General and administrative expense, excluding stock compensation and LTIP expense 1,467 1,415
Other expense, net 14 1
Unallocated hotel and property operations expense   89     132  
Hotel EBITDA $ 7,367   $ 4,008  
 
Revenue $ 16,679 $ 10,361
JV revenue   2,618     2,989  
Condor and JV revenue $ 19,297   $ 13,350  
Hotel EBITDA as a percentage of revenue 38.2 % 30.0 %
 

We calculate EBITDA, EBITDAre, and Adjusted EBITDAre by adding back to net earnings or loss certain non-operating expenses and certain non-cash charges which are based on historical cost accounting that we believe may be of limited significance in evaluating current performance. We believe these adjustments can help eliminate the accounting effects of depreciation and amortization and financing decisions and facilitate comparisons of core operating profitability between periods. In calculating EBITDA, we add back to net earnings or loss interest expense, loss on debt extinguishment, income tax expense, and depreciation and amortization expense. NAREIT adopted EBITDAre in order to promote an industry-wide measure of REIT operating performance. We adjust EBITDA by adding back net gain/loss on disposition of assets and impairment charges to calculate EBITDAre. To calculate Adjusted EBITDAre, we adjust EBITDAre to add back acquisition and terminated transactions expense and equity transactions expense, which are cash charges. We also add back stock –based compensation expense and gain/loss on derivatives and convertible debt, which are non-cash charges. EBITDA, EBITDAre, and Adjusted EBITDAre, as presented, may not be comparable to similarly titled measures of other companies.

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

The Company further excludes general and administrative expenses, other non-operating income or expense, and certain hotel and property operations expenses that are not allocated to individual properties in assessing hotel performance (primarily certain general liability and other insurance costs, land lease costs, and office and banking fees) from Adjusted EBITDAre to calculate Hotel EBITDA. Hotel EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

Hotel EBITDA is intended to isolate property level operational performance over which the Company’s hotel operators have direct control. We believe Hotel EBITDA is helpful to investors as it better communicates the comparability of our hotels’ operating results for all of the Company’s hotel properties and is used by management to measure the performance of the Company’s hotels and the effectiveness of the operators of the hotels.

Same-Store Revenue and Hotel EBITDA

The following tables present our same-store revenue, Hotel EBITDA, and Hotel EBITDA margin broken down by property type for the three months ended March 31, 2018 and 2017 (in thousands) and reconcile these same-store measures to total revenue and Hotel EBITDA as presented above. Same-store results include all our hotels owned at March 31, 2018, with the exception of the Austin TownePlace Suites, opened on January 3, 2017, and the Summerville Home2 Suites, opened on July 18, 2017 (no prior period results available) and reflect the performance of these hotels during the entire period, regardless of our ownership during the period presented. Results for the hotels for periods prior to our ownership were provided to us by prior owners and have not been adjusted by us or audited or reviewed by our independent auditors. All amounts presented operations as well as our portion of the results of our unconsolidated Atlanta Aloft JV. Results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included here only for comparison purposes.

       

Revenue - Reconciliation of Same-

Store to Actual

Three months ended March 31,
2018 2017
Condor and JV Revenue – Actual* $ 19,297 $ 13,350
Revenue earned on properties owned at March 31, 2018 prior to the Company’s ownership, excluding the Austin TownePlace Suites and the Summerville Home2 Suites - 7,094
Revenue earned on properties disposed of prior to March 31, 2018 during the period of ownership (397 ) (2,818 )
Revenue earned on Austin TownePlace Suites and Summerville Home2 Suites subsequent to ownership   (1,413 )   -  
Total Revenue – Same-Store* $ 17,487   $ 17,626  
 
 
Revenue – Same-Store by Type
Three months ended March 31,
2018 2017
New investment platform* $ 16,015 $ 16,119
Legacy held for use 265 379
Legacy held for sale   1,207     1,128  
Total Revenue – Same-Store* $ 17,487   $ 17,626  
 
 

Hotel EBITDA – Reconciliation of

Same-Store to Actual

Three months ended March 31,
2018 2017
Condor and JV Hotel EBITDA – Actual* $ 7,367 $ 4,008
Hotel EBITDA earned on properties owned at March 31, 2018 prior to the Company’s ownership, excluding the Austin TownePlace Suites and the Summerville Home2 Suites - 2,993
Hotel EBITDA earned on properties disposed of prior to March 31, 2018 during the period of ownership (42 ) (436 )
Hotel EBITDA earned on Austin TownePlace Suites and Summerville Home2 Suites subsequent to ownership   (707 )   -  
Total Hotel EBITDA – Same-Store* $ 6,618   $ 6,565  
 
 
Hotel EBITDA – Same-Store by Type
Three months ended March 31,
2018 2017
New investment platform* $ 6,237 $ 6,177
Legacy held for use 43 77
Legacy held for sale   338     311  
Total Hotel EBITDA – Same-Store* $ 6,618   $ 6,565  
 
 
Hotel EBITDA Margin by Property Type
Three months ended March 31,
  2018     2017  
New investment platform 38.9 % 38.3 %
Legacy held for use 16.2 % 20.3 %
Legacy held for sale   28.0 %   27.6 %
Total Portfolio – Same-Store   37.8 %   37.2 %
 

*Due to differences in the allocation of JV preferred returns, JV activity was 100% attributed to Condor in the first quarter of 2017 and 80% attributed to Condor in the first quarter of 2018

Non-GAAP Measures Included in 2018 Guidance and Outlook

The following tables reconcile forecast net earnings to forecast FFO and AFFO and forecast EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA for the year ending December 31, 2018 (in millions, except per share amounts) using the definitions of these non-GAAP measures as discussed above.

       
2018 Outlook ($ in millions except per share amounts) Low High
RevPAR growth (13 new investment platform hotels owned as of December 31, 2017) 3.0 % 4.5 %
2018 Outlook for 17-Hotel Portfolio
Forecast hotel revenue $ 74.0 $ 75.4
Forecast net earnings $ 1.7 $ 2.5
Forecast earnings per share - Diluted $ 0.09 $ 0.16
Forecast Hotel EBITDA* $ 28.8 $ 29.7
Forecast AFFO per common share and common unit - Diluted* $ 1.13 $ 1.19
 
 
Low High
Forecast net earnings $ 1.7 $ 2.5
Interest expense 8.5 8.5
Depreciation and amortization expense   11.4     11.4  
Forecast EBITDA 21.5 22.4
Net gain on disposition of assets   -     -  
Forecast EBITDAre 21.5 22.4
Acquisitions and terminated transactions expense - -
Stock-based compensation and LTIP expense   1.0     1.0  
Forecast Adjusted EBITDAre 22.5 23.4
Cash general and administrative expense and other expenses   6.3     6.3  
Forecast Hotel EBITDA (17 Hotels) $ 28.8   $ 29.7  
 
 
Low High
Forecast net earnings $ 1.7 $ 2.5
Depreciation and amortization expense 11.4 11.4
Net gain on disposition of assets   -     -  
Forecast FFO 13.1 13.9
Preferred dividends   (0.6 )   (0.6 )
Forecast FFO attributable to common shares and common units 12.5 13.3
Acquisitions and terminated transactions expense - -
Stock-based compensation and LTIP expense 1.0 1.0
Amortization of deferred financing fees   0.2     0.2  
Forecast AFFO attributable to common shares and common units - Basic $ 13.7   $ 14.5  
 
Forecast AFFO attributable to common shares and common units - Diluted $ 14.3 $ 15.1
Forecast AFFO per common share and common unit - Diluted $ 1.13 $ 1.19
Diluted common shares and common units 12.7 12.7
 

Condor Hospitality Trust, Inc. Operating Statistics

The following tables present our same-store occupancy, ADR, and RevPAR for all our hotels owned at March 31, 2018, with the exception of the Austin TownePlace Suites, which was opened on January 3, 2017, and Summerville, SC Home2 Suites which was opened on July 18, 2017 (no prior period results available). Same-store occupancy, ADR, and RevPAR reflect the performance of hotels during the entire period, regardless of our ownership during the period presented. Results for the hotels for periods prior to our ownership were provided to us by prior owners and have not been adjusted by us or audited or reviewed by our independent auditors. The performance metrics for the hotel acquired through our Atlanta JV, also presented below, reflect 100% of the operating results of the property, including our interest and the interest of our partner.

                       
Three months ended March 31,
2018 2017
Occupancy ADR RevPAR Occupancy ADR RevPAR
Solomons Hilton Garden Inn 73.41 % $ 125.74 $ 92.30 73.58 % $ 118.70 $ 87.33
Atlanta Hotel Indigo 81.13 % $ 108.30 $ 87.87 74.07 % $ 104.45 $ 77.37
Jacksonville Courtyard by Marriott 85.04 % $ 113.26 $ 96.31 76.02 % $ 114.83 $ 87.29
San Antonio SpringHill Suites 86.36 % $ 143.28 $ 123.74 81.49 % $ 140.69 $ 114.66
Leawood Aloft 63.41 % $ 127.49 $ 80.84 74.00 % $ 126.10 $ 93.31
Lexington Home2 Suites 74.51 % $ 103.30 $ 76.97 74.23 % $ 105.56 $ 78.35
Round Rock Home2 Suites 86.48 % $ 120.15 $ 103.91 85.37 % $ 123.17 $ 105.16
Tallahassee Home2 Suites 84.23 % $ 130.54 $ 109.95 80.79 % $ 124.91 $ 100.92
South Haven Home2 Suites 81.26 % $ 110.84 $ 90.07 89.22 % $ 111.59 $ 99.56
Lake Mary Hampton Inn & Suites 86.22 % $ 154.76 $ 133.44 84.89 % $ 132.62 $ 112.58
Austin Residence Inn 83.43 % $ 135.16 $ 112.76 77.57 % $ 141.54 $ 109.80
El Paso Fairfield Inn 75.92 % $ 99.69 $ 75.69 77.89 % $ 109.61 $ 85.38
Wholly owned new investment platform properties 79.78 % $ 123.56 $ 98.57 78.84 % $ 121.52 $ 95.80
Atlanta Aloft JV 79.49 % $ 152.80 $ 121.46 82.52 % $ 135.12 $ 111.50
Total new investment platform 79.74 % $ 127.93 $ 102.01 79.39 % $ 123.64 $ 98.16
 
Legacy hotels held for sale 74.44 % $ 71.43 $ 53.17 72.78 % $ 67.84 $ 49.38
Legacy hotels held for use 45.61 % $ 79.81 $ 36.40 82.59 % $ 69.93 $ 57.76
Total legacy 68.82 % $ 72.51 $ 49.91 74.69 % $ 68.29 $ 51.01
                       
Total portfolio 78.06 % $ 120.41 $ 93.99 78.67 % $ 115.55 $ 90.90
 
Austin TownePlace Suites (1) 82.56 % $ 126.63 $ 104.55 59.71 % $ 108.42 $ 64.73
Summerville Home2 Suites (1) 87.28 % $ 119.94 $ 104.68 - $ - $ -
 

1 | Excluded from the Total new investment platform calculation because the hotel was not operational for the entirety of the three months ended March 31, 2017

                       
Condor Hospitality Trust, Inc.
Property List | As of the Date of this Release
 
New Investment Platform | Acquired from January 1, 2012 - May 9, 2018

Hotel Name

City

State

Rooms

Acquisition Date

Purchase Price

(in millions)

1 Hilton Garden Inn Dowell/Solomons MD 100 05/25/2012 $11.5
2 SpringHill Suites San Antonio TX 116 10/01/2015 $17.5
3 Courtyard by Marriott Jacksonville FL 120 10/02/2015 $14.0
4 Hotel Indigo College Park GA 142 10/02/2015 $11.0
5 Aloft1 Atlanta GA 254 08/22/2016 $43.6
6 Aloft Leawood KS 156 12/14/2016 $22.5
7 Home2 Suites Lexington KY 103 03/24/2017 $16.5
8 Home2 Suites Round Rock TX 91 03/24/2017 $16.8
9 Home2 Suites Tallahassee FL 132 03/24/2017 $21.5
10 Home2 Suites Southaven MS 105 04/14/2017 $19.0
11 Hampton Inn & Suites Lake Mary FL 130 06/19/2017 $19.3
12 Fairfield Inn & Suites El Paso TX 124 08/31/2017 $16.4
13 Residence Inn Austin TX 120 08/31/2017 $22.4
14 TownePlace Suites Austin TX 122 01/18/2018 $19.8
15 Home2 Suites Summerville SC 93 02/21/2018 $16.3
Total New Investment Platform 1,908 $288.1
 
 
Current Legacy Hotel Portfolio

Hotel Name

City

State

Rooms

Acquisition Date

Status (2)

16 Super 8 Creston IA 121 09/19/1978 HFS
17 Quality Inn Solomons MD 59 06/01/1986 Hold
18 Comfort Suites Ft. Wayne IN 127 11/07/2005 HFS
Total 307
 
Total Portfolio | As of May 9, 2018 2,215
 

1 | Owned 80% by Condor

2 | HFS indicates the asset was marketed as held for sale at March 31, 2018

 
                       
52 Dispositions | For Period January 1, 2015 - May 9, 2018

Hotel Name

City

State

Rooms

Disposition Date

Gross Proceeds
(in millions)

1 Super 8 West Plains MO 49 01/15/2015 $1.5
2 Super 8 Green Bay WI 83 01/29/2015 $2.2
3 Super 8 Columbus GA 74 03/16/2015 $0.9
4 Sleep Inn & Suites Omaha NE 90 03/19/2015 $2.9
5 Savannah Suites Chamblee GA 120 04/01/2015 $4.4
6 Savannah Suites Augusta GA 172 04/01/2015 $3.4
7 Super 8 Batesville AR 49 04/30/2015 $1.5
8 Days Inn Ashland KY 63 07/01/2015 $2.2
9 Comfort Inn Alexandria VA 150 07/13/2015 $12.0
10 Days Inn Alexandria VA 200 07/13/2015 $6.5
11 Super 8 Manhattan KS 85 08/28/2015 $3.2
12 Quality Inn Sheboygan WI 59 10/06/2015 $2.3
13 Super 8 Hays KS 76 10/14/2015 $1.9
14 Days Inn Glasgow KY 58 10/16/2015 $1.8
15 Super 8 Tomah WI 65 10/21/2015 $1.4
16 Rodeway Inn Fayetteville NC 120 11/03/2015 $2.6
17 Savannah Suites Savannah GA 160 12/22/2015 $4.0
Total 2015 1,673 $54.7
18 Super 8 Kirksville MO 61 01/04/2016 $1.5
19 Super 8 Lincoln NE 133 01/07/2016 $2.8
20 Savannah Suites Greenville SC 170 01/08/2016 $2.7
21 Super 8 Portage WI 61 03/30/2016 $2.4
22 Super 8 O'Neill NE 72 04/25/2016 $1.7
23 Quality Inn Culpeper VA 49 05/10/2016 $2.2
24 Super 8 Storm Lake IA 59 05/19/2016 $2.8
25 Clarion Inn Cleveland TN 59 05/24/2016 $2.2
26 Super 8 Coralville IA 84 05/26/2016 $3.4
27 Super 8 Keokuk IA 61 05/27/2016 $2.2
28 Comfort Inn Chambersburg PA 63 06/06/2016 $2.1
29 Super 8 Pittsburg KS 64 08/08/2016 $1.6
30 Super 8 Mount Pleasant IA 54 09/09/2016 $1.9
31 Quality Inn Danville KY 63 09/19/2016 $2.3
32 Super 8 Menomonie WI 81 09/26/2016 $3.0
33 Comfort Inn Glasgow KY 60 10/14/2016 $2.4
34 Days Inn Sioux Falls SD 86 11/04/2016 $2.1
35 Comfort Inn Shelby NC 76 11/07/2016 $4.1
36 Comfort Inn Rocky Mount VA 61 11/17/2016 $2.2
37 Days Inn Farmville VA 59 11/17/2016 $2.4
38 Comfort Suites Marion IN 62 11/18/2016 $3.0
39 Comfort Inn Farmville VA 50 11/30/2016 $2.6
40 Quality Inn Princeton WV 50 12/05/2016 $2.1
41 Super 8 Burlington IA 62 12/21/2016 $2.8
42 Savannah Suites Atlanta GA 164 12/22/2016 $2.9
Total 2016 1,864 $61.4
43 Comfort Inn New Castle PA 79 03/27/2017 $2.5
44 Super 8 Billings MT 106 03/28/2017 $4.2
45 Comfort Inn Harlan KY 61 04/03/2017 $1.9
46 Comfort Suites Lafayette IN 62 04/18/2017 $3.9
47 Key West Inn Key Largo FL 40 05/17/2017 $7.6
48 Quality Inn Morgantown WV 81 08/30/2017 $2.6
49 Days Inn Bossier City LA 176 09/13/2017 $1.4
50 Comfort Inn & Suites Warsaw IN 71 12/20/2017 $5.0
Total 2017 676 $29.1
51 Supertel Inn/Conference Center Creston IA 41 01/25/2018 $2.1
52 Comfort Suites South Bend IN 135 03/15/2018 $6.1
Total 2018 176 $8.2
   
      Total Dispositions                 4,389           $153.4
 
 
 
 
14 Acquisitions | For Period January 1, 2015 - May 9, 2018

Hotel Name

City

State

Rooms

Acquisition Date

Purchase Price

(in millions)

1 SpringHill Suites San Antonio TX 116 10/01/2015 $17.5
2 Courtyard by Marriott Jacksonville FL 120 10/02/2015 $14.0
3 Hotel Indigo College Park GA 142 10/02/2015 $11.0
4 Aloft1 Atlanta GA 254 08/22/2016 $43.6
5 Aloft Leawood KS 156 12/14/2016 $22.5
6 Home2 Suites Lexington KY 103 03/24/2017 $16.5
7 Home2 Suites Round Rock TX 91 03/24/2017 $16.8
8 Home2 Suites Tallahassee FL 132 03/24/2017 $21.5
9 Home2 Suites Southaven MS 105 04/14/2017 $19.0
10 Hampton Inn & Suites Lake Mary FL 130 06/19/2017 $19.3
11 Fairfield Inn & Suites El Paso TX 124 08/31/2017 $16.4
12 Residence Inn Austin TX 120 08/31/2017 $22.4
13 TownePlace Suites Austin TX 122 01/18/2018 $19.8
14 Home2 Suites Summerville SC 93 02/21/2018 $16.3
Total Acquisitions 1,808 $276.6
 

1 | Owned 80% by Condor

 

Condor Hospitality Trust, Inc.
Jonathan J. Gantt
Chief Financial Officer & Senior Vice President
301-861-3305
jgantt@trustcondor.com

Source: Condor Hospitality Trust, Inc.