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Press Release


Condor Hospitality Trust Reports Third Quarter 2018 Results

Company Release - 11/12/2018 7:00 AM ET

BETHESDA, Md.--(BUSINESS WIRE)-- Condor Hospitality Trust, Inc. (NYSE American:CDOR) (the “Company”) today announced results for the third quarter ended September 30, 2018.

THIRD QUARTER RELEASE FINANCIAL HIGHLIGHTS

  • Revenue of $15.5 million a 1% Decrease to Revenue of $15.6 million in Last Year’s Third Quarter
  • Net Earnings Attributable to Common Shareholders of $2.5 million, or $0.21 per Diluted Share, compared to ($1.2) million, or ($0.11) per share in Last Year’s Third Quarter
  • Adjusted Funds from Operations Decreased to $2.2 million, or $0.18 per Diluted Share, a 34% Decrease from $3.3 million in Last Year’s Third Quarter Caused Primarily by a $740k Increase in Interest Expense
  • Hotel EBITDA Decreased to $6.2 million from $6.3 million, and Adjusted EBITDAre Decreased 5% Over Last Year’s Third Quarter

THIRD QUARTER PORTFOLIO ACCOMPLISHMENTS

  • Sold One Legacy Asset Generating $5.1 million in Gross Proceeds

MANAGEMENT COMMENTARY

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

“On September 27, 2018, Condor initiated a process to evaluate strategic alternatives to enhance shareholder value. Until the conclusion of this process, Condor is suspending the issuance of earnings guidance and the holding of earnings conference calls. This past quarter we signed a contract to sell the sole remaining legacy asset, the Quality Inn Solomons Island. While currently scheduled to close by year-end, there can be no guarantee that this planned disposition will close. This final asset sale will bring the total number of legacy assets sold to 55 since Condor launched the strategic repositioning of its portfolio in 2015.”

FINANCIAL SUMMARY
At September 30, 2018, the Company’s total portfolio included 16 hotels, representing 1,967 rooms.

                         
Total Company Financial Results

($ in millions except per share amounts)

 
Three months ended September 30, Nine months ended September 30,
2018 2017 Change 2018 2017 Change
Revenue $ 15.5 $ 15.6 -0.6% $ 50.0 $ 40.2 24.4%
Net Earnings (Loss) Attributable to Common Shareholders $ 2.5 $ (1.2) NA $ 5.9 $ (10.5) NA
Diluted Earnings (Loss) per Share $ 0.21 $ (0.11) NA $ 0.49 $ (1.21) NA
 
Funds from Operations (FFO)* $ 1.7 $ 2.1 -20.8% $ 8.7 $ 4.0 117.0%
FFO per Diluted Share* $ 0.13 $ 0.18 -27.8% $ 0.69 $ 0.42 64.3%
Adjusted FFO* $ 2.2 $ 3.3 -33.8% $ 9.9 $ 6.5 53.1%
Adjusted FFO per Diluted Share* $ 0.18 $ 0.28 -35.7% $ 0.82 $ 0.69 18.8%
 
Hotel EBITDA* $ 6.2 $ 6.3 -2.0% $ 21.6 $ 16.0 34.9%
Adjusted EBITDAre* $ 4.7 $ 5.0 -4.7% $ 17.1 $ 11.6 48.1%

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

 

NEW INVESTMENT PLATFORM
At September 30, 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 September 30, Nine months ended September 30,
2018 2017 Change 2018 2017 Change
Same-Store RevPAR $ 95.57 $ 95.69 -0.1% $ 100.82 $ 98.06 2.8%
Same-Store Occupancy 79.31% 80.17% -1.1% 81.01% 80.51% 0.6%
Same-Store ADR $ 120.51 $ 119.35 1.0% $ 124.45 $ 121.80 2.2%
 
Same-Store Hotel EBITDA* $ 5.3 $ 5.6 -4.5% $ 18.2 $ 17.5 3.9%
Same-Store Hotel EBITDA Margin* 34.6% 36.2% -1.6% 37.7% 37.3% 0.4%
 
*Please see the Reg. G reconciliation tables at the end of this release.
**Financial results presented above include results from prior to our ownership.
 

LEGACY PLATFORM
At September 30, 2018, the Company’s legacy platform included one hotel, representing 59 rooms.

                         
Legacy Platform Operational Results*

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

 
Three months ended September 30, Nine months ended September 30,
2018 2017 Change 2018 2017 Change
Same-Store RevPAR $ 59.56 $ 71.31 -16.5% $ 47.54 $ 63.80 -25.5%
Same-Store Occupancy 64.00% 80.14% -20.1% 54.36% 79.44% -31.6%
Same-Store ADR $ 93.05 $ 88.98 4.6% $ 87.46 $ 80.30 8.9%
 
Same-Store Hotel EBITDA* $ 0.1 $ 0.1 -1.4% $ 0.3 $ 0.3 -22.7%
Same-Store Hotel EBITDA Margin* 33.5% 30.1% 3.4% 25.4% 26.2% -0.8%
 

* 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 54 legacy assets for a total gross sales price of approximately $166 million.

Acquisitions
During the third quarter of 2018, the Company did not acquire any hotels.

Dispositions
During the third quarter of 2018, the Company sold the Super 8 in Creston, IA for $5.1 million. Net proceeds from the sale were applied to outstanding debt on the Company’s $150 million secured credit facility. The Company has only one legacy hotel remaining in the portfolio.

BALANCE SHEET AND CAPITAL MARKETS ACTIVITY
As of September 30, 2018, the Company had cash and cash equivalents (including restricted cash) of $11.0 million and available revolver borrowing capacity of $7.6 million. As of September 30, 2018, the Company had total outstanding long-term debt of $138.2 million associated with assets held for use with a weighted average maturity of 2.4 years and a weighted average interest rate of 4.90%.

During the third quarter of 2018, the Company did not sell any shares of common stock under the ATM program.

CAPITAL INVESTMENTS
The Company invested $1.5 million in capital improvements throughout the portfolio in the nine months ended September 30, 2018, to upgrade its properties and maintain brand standards.

OUTLOOK AND GUIDANCE
Due to the pursuit of Strategic Alternatives, the Company has suspended guidance until further notice.

DIVIDENDS
On September 5, 2018, the Board of Directors declared a quarterly cash common stock dividend of $0.195 per share for the third quarter of 2018. The common stock dividend represented an annualized yield of approximately 7.5% based on the closing price of the Company’s common shares on September 7, 2018. The third quarter dividend was paid on October 3, 2018 to shareholders of record as of September 21, 2018.

EARNINGS CALL
Due to the pursuit of Strategic Alternatives, the Company will not be conducting a third quarter earnings conference call.

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 16 hotels in 8 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
September 30, 2018 December 31, 2017
 

Assets

Investment in hotel properties, net $ 232,103 $ 201,722
Investment in unconsolidated joint venture 6,638 7,747
Cash and cash equivalents 5,194 5,441
Restricted cash, property escrows 5,791 4,894
Accounts receivable, net 2,185 1,707
Prepaid expenses and other assets 2,502 3,220
Derivative assets, at fair value 1,090 391
Investment in hotel properties held for sale, net   4,085   17,858
Total Assets $ 259,588 $ 242,980
 

Liabilities and Equity

 
Liabilities
Accounts payable, accrued expenses, and other liabilities $ 7,532 $ 7,046
Dividends and distributions payable 2,480 2,470
Convertible debt, at fair value 1,049 1,069
Long-term debt, net of deferred financing costs 135,690 111,097
Long-term debt related to hotel properties held for sale, net of deferred financing costs   1,212   9,484
Total Liabilities 147,963 131,166
 
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; 11,883,554 and 11,833,573 shares outstanding 119 118
Additional paid-in capital 231,750 230,727
Accumulated deficit   (131,543)   (130,489)
Total Shareholders' Equity 110,376 110,406
Noncontrolling interest in consolidated partnership (Condor Hospitality Limited Partnership), redemption value of $824 and $871   1,249   1,408
Total Equity 111,625 111,814
       
Total Liabilities and Equity $ 259,588 $ 242,980
 
                 
Condor Hospitality Trust, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited - In thousands, except per share data)
 

Three months ended
September 30,

Nine months ended
September 30,

2018 2017 2018 2017
Revenue
Room rentals and other hotel services $ 15,462 $ 15,562 $ 49,975 $ 40,175
Operating Expenses
Hotel and property operations 10,148 10,269 31,318 27,106
Depreciation and amortization 2,423 1,993 7,126 4,813
General and administrative 1,599 1,702 5,073 4,705
Acquisition and terminated transactions 96 453 186 1,170
Equity transactions   -   -   -   343
Total operating expenses   14,266   14,417   43,703   38,137
Operating income 1,196 1,145 6,272 2,038
Net gain (loss) on disposition of assets 3,716 (46) 5,587 4,803
Equity in earnings (loss) of joint venture (41) 159 251 295
Net gain on derivatives and convertible debt 116 14 719 416
Other expense, net (23) (43) (57) (83)
Interest expense (2,154) (1,405) (6,173) (3,468)
Loss on debt extinguishment - - - (800)
Impairment (loss) recovery, net   -   (848)   93   (1,598)
Earnings (loss) before income taxes 2,810 (1,024) 6,692 1,603
Income tax expense   (132)   (15)   (315)   (50)
Net earnings (loss) 2,678 (1,039) 6,377 1,553
(Earnings) loss attributable to noncontrolling interest   (20)   7   (47)   (10)
Net earnings (loss) attributable to controlling interests 2,658 (1,032) 6,330 1,543
Dividends declared and in kind dividends deemed on preferred stock   (145)   (205)   (434)   (12,079)
Net earnings (loss) attributable to common shareholders $ 2,513 $ (1,237) $ 5,896 $ (10,536)
 

Earnings(Loss) per Share

Total - Basic Earnings (Loss) per Share $ 0.21 $ (0.11) $ 0.50 $ (1.21)
Total - Diluted Earnings (Loss) per Share $ 0.21 $ (0.11) $ 0.49 $ (1.21)
 

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 and nine months ended September 30, 2018 and 2017 (in thousands). All amounts presented include our portion of the results of our unconsolidated Atlanta JV.

                 

Three months ended
September 30,

Nine months ended
September 30,

Reconciliation of Net earnings (loss) to FFO and AFFO

2018 2017 2018 2017
Net earnings (loss) $ 2,678 $ (1,039) $ 6,377 $ 1,553
Depreciation and amortization expense 2,423 1,993 7,126 4,813
Depreciation and amortization expense from JV 289 284 866 852
Net (gain) loss on disposition of assets (3,716) 46 (5,587) (4,803)
Net loss on disposition of assets from JV 15 1 29 4
Impairment loss (recovery), net   -   848   (93)   1,598
FFO 1,689 2,133 8,718 4,017
Dividends declared and in kind dividends deemed on preferred stock   (145)   (205)   (434)   (12,079)
FFO attributable to common shares and common units 1,544 1,928 8,284 (8,062)
Net gain on derivatives and convertible debt (116) (14) (719) (416)
Net loss on derivative from JV - - - 2
Acquisition and terminated transactions expense 96 453 186 1,170
Equity transactions expense - - - 343
Loss on debt extinguishment - - - 800
Stock-based compensation and LTIP expense 247 508 912 665
Amortization of deferred financing fees 363 310 1,080 726
Amortization of deferred financing fees from JV 45 46 136 136
Non-recurring dividends above stated rates declared and in kind dividends deemed on preferred stock   -   60   -   11,090
AFFO attributable to common shares and common units $ 2,179 $ 3,291 $ 9,879 $ 6,454
 
FFO attributable to common shares and common units - Basic Shares $ 1,544 $ 2,133 $ 8,284 $ 4,017
Convertible note interest and fair value adjustments - 4 27 (230)
Preferred dividends and fair value adjustments   -   -   -   152
FFO attributable to common shares and common units - Diluted Shares $ 1,544 $ 2,137 $ 8,311 $ 3,939
 
FFO per common share and common unit - Basic $ 0.13 $ 0.18 $ 0.70 $ 0.45
FFO per common share and common unit - Diluted $ 0.13 $ 0.18 $ 0.69 $ 0.42
 
Weighted average common shares and common units - Basic FFO 11,892,404 11,620,839 11,867,801 8,836,855
Weighted average common shares and common units - Diluted FFO 11,899,760 11,741,711 11,980,377 9,481,009
 
AFFO attributable to common shares and common units - Basic Shares $ 2,179 $ 3,291 $ 9,879 $ 6,454
Convertible note interest 16 16 48 48
Preferred dividends at stated rates   -   145   434   989
AFFO attributable to common shares and common units - Diluted Shares $ 2,195 $ 3,452 $ 10,361 $ 7,491
 
AFFO per common share and common unit - Basic $ 0.18 $ 0.28 $ 0.83 $ 0.73
AFFO per common share and common unit - Diluted $ 0.18 $ 0.28 $ 0.82 $ 0.69
 
Weighted average common shares and common units - Basic AFFO 11,892,404 11,620,839 11,867,801 8,836,855
Weighted average common shares and common units - Diluted AFFO 11,997,029 12,409,822 12,648,488 10,778,706
 

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 and nine months ended September 30, 2018 and 2017 (in thousands). All amounts presented our portion of the results of our unconsolidated Atlanta JV.

                 

Three months ended
September 30,

Nine months ended
September 30,

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

2018 2017 2018 2017
Net earnings (loss) $ 2,678 $ (1,039) $ 6,377 $ 1,553
Interest expense 2,154 1,405 6,173 3,468
Interest expense from JV 543 478 1,553 1,470
Loss on debt extinguishment - - - 800
Income tax expense 132 15 315 50
Depreciation and amortization expense 2,423 1,993 7,126 4,813
Depreciation and amortization expense from JV   289   284   866   852
EBITDA 8,219 3,136 22,410 13,006
Net (gain) loss on disposition of assets (3,716) 46 (5,587) (4,803)
Net loss on disposition of assets from JV 15 1 29 4
Impairment loss (recovery), net   -   848   (93)   1,598
EBITDAre 4,518 4,031 16,759 9,805
Net gain on derivatives and convertible debt (116) (14) (719) (416)
Net loss on derivative from JV - - - 2
Stock-based compensation and LTIP expense 247 508 912 665
Acquisition and terminated transactions expense 96 453 186 1,170
Equity transactions expense   -   -   -   343
Adjusted EBITDAre 4,745 4,978 17,138 11,569
General and administrative expense, excluding stock compensation and LTIP expense 1,352 1,194 4,161 4,040
Other expense, net 23 43 57 83
Unallocated hotel and property operations expense   81   111   229   308
Hotel EBITDA $ 6,201 $ 6,326 $ 21,585 $ 16,000
 
Revenue $ 15,462 $ 15,562 $ 49,975 $ 40,175
JV revenue   2,485   2,439   7,587   7,279
Condor and JV revenue $ 17,947 $ 18,001 $ 57,562 $ 47,454
Hotel EBITDA as a percentage of revenue 34.6% 35.1% 37.5% 33.7%
 

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 and nine months ended September 30, 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 September 30, 2018, with the exception of the Austin TownePlace Suites (opened on January 3, 2017) and the Summerville Home2 Suites (opened on July 18, 2017), for which prior period results are not available for all periods presented, 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 include 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 Actual to Same-Store
Three months ended September 30, Nine months September 30,
2018 2017 2018 2017
Condor and JV Revenue - Actual $ 17,947 $ 18,001 $ 57,562 $ 47,454
Revenue earned on properties owned at September 30, 2018 prior to the Company's ownership, excluding the Austin TownePlace Suites, and the Summerville Home2 Suites - 1,251 - 11,441
Revenue earned on properties disposed of prior to September 30, 2018 during the period of ownership (393) (3,365) (3,091) (10,801)
Revenue earned on Austin TownePlace Suites, and Summerville Home2 Suites subsequent to ownership   (1,761)   -   (5,335)   -
Total Revenue - Same-Store $ 15,793 $ 15,887 $ 49,136 $ 48,094
 
 
 
Revenue - Same-Store by Type
Three months ended September 30, Nine months September 30,
2018 2017 2018 2017
New investment platform $ 15,360 $ 15,398 $ 48,105 $ 46,800
Legacy held for sale   433   489   1,031   1,294
Total Revenue - Same-Store $ 15,793 $ 15,887 $ 49,136 $ 48,094
 
 
 
 
Hotel EBITDA - Reconciliation of Actual to Same-Store
Three months ended September 30, Nine months September 30,
2018 2017 2018 2017
Condor and JV Hotel EBITDA - Actual $ 6,201 $ 6,326 $ 21,585 $ 16,000
Hotel EBITDA earned on properties owned at September 30, 2018 prior to the Company's ownership, excluding the Austin TownePlace Suites, and the Summerville Home2 Suites - 415 - 4,644
Hotel EBITDA earned on properties disposed of prior to September 30, 2018 during the period of ownership (128) (1,021) (866) (2,839)
Hotel EBITDA earned on Austin TownePlace Suites, and Summerville Home2 Suites subsequent to ownership   (606)   -   (2,305)   -
Total Hotel EBITDA - Same-Store $ 5,467 $ 5,720 $ 18,414 $ 17,805
 
 
 
Hotel EBITDA - Same-Store by Type
Three months ended September 30, Nine months September 30,
2018 2017 2018 2017
New investment platform $ 5,322 $ 5,573 $ 18,152 $ 17,466
Legacy held for sale   145   147   262   339
Total Hotel EBITDA - Same-Store $ 5,467 $ 5,720 $ 18,414 $ 17,805
 
 
 
Hotel EBITDA Margin by Property Type
Three months ended September 30, Nine months September 30,
2018 2017 2018 2017
New investment platform 34.6% 36.2% 37.7% 37.3%
Legacy held for sale   33.5%   30.1%   25.4%   26.2%
Total Hotel EBITDA Margin - Same-Store   34.6%   36.0%   37.5%   37.0%
 

Condor Hospitality Trust, Inc. Operating Statistics

The following tables present our same-store occupancy, ADR, and RevPAR for all our hotels owned at September 30, 2018, with the exception of the Austin TownePlace Suites (opened on January 3, 2017) and Summerville Home2 Suites (opened on July 18, 2017), for which prior period results are not available for all periods presented. 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 September 30,
2018 2017
Occupancy ADR RevPAR Occupancy ADR RevPAR
Solomons Hilton Garden Inn 79.65% $ 129.80 $ 103.39 87.95% $ 123.26 $ 108.40
Atlanta Hotel Indigo 72.60% $ 101.94 $ 74.00 76.61% $ 100.78 $ 77.20
Jacksonville Courtyard by Marriott 72.21% $ 113.52 $ 81.97 72.49% $ 111.02 $ 80.48
San Antonio SpringHill Suites 78.39% $ 125.19 $ 98.14 77.73% $ 120.28 $ 93.49
Leawood Aloft 78.96% $ 123.19 $ 97.28 86.80% $ 125.95 $ 109.32
Lexington Home2 Suites 84.65% $ 111.14 $ 94.07 89.62% $ 112.21 $ 100.55
Round Rock Home2 Suites 81.74% $ 113.74 $ 92.97 81.96% $ 112.29 $ 92.03
Tallahassee Home2 Suites 88.04% $ 114.45 $ 100.77 80.46% $ 120.99 $ 97.35
South Haven Home2 Suites 86.60% $ 112.06 $ 97.05 91.48% $ 117.70 $ 107.67
Lake Mary Hampton Inn & Suites 77.72% $ 122.32 $ 95.06 80.09% $ 110.99 $ 88.89
Austin Residence Inn 78.07% $ 124.16 $ 96.93 75.97% $ 121.20 $ 92.07
El Paso Fairfield Inn 82.52% $ 102.05 $ 84.21 70.11% $ 105.23 $ 73.77
Wholly owned new investment platform properties 79.87% $ 116.00 $ 92.65 80.66% $ 115.45 $ 93.12
Atlanta Aloft JV 76.16% $ 147.26 $ 112.16 77.42% $ 142.37 $ 110.23
Total new investment platform 79.31% $ 120.51 $ 95.57 80.17% $ 119.35 $ 95.69
 
Total legacy held for sale 64.00% $ 93.05 $ 59.56 80.14% $ 88.98 $ 71.31
                   
Total Same-Store Portfolio 78.79% $ 119.74 $ 94.34 80.17% $ 118.31 $ 94.85
 
Austin TownePlace Suites (1) 69.66% $ 109.98 $ 76.62 70.57% $ 115.46 $ 81.48
Summerville Home2 Suites (1) 80.08% $ 126.55 $ 101.35 52.12% $ 125.03 $ 65.17
 
1 | Excluded from the total new investment platform calculation because the hotel was not operational for the entirety of the nine months ended September 30, 2017 (prior period results are not available for all periods presented)
 
                         
Nine months ended September 30,
2018 2017
Occupancy ADR RevPAR Occupancy ADR RevPAR
Solomons Hilton Garden Inn 78.27% $ 126.07 $ 98.68 80.80% $ 120.25 $ 97.16
Atlanta Hotel Indigo 78.29% $ 103.45 $ 80.99 74.52% $ 101.72 $ 75.80
Jacksonville Courtyard by Marriott 80.13% $ 116.48 $ 93.34 74.86% $ 114.31 $ 85.57
San Antonio SpringHill Suites 84.56% $ 137.68 $ 116.42 79.04% $ 131.58 $ 104.00
Leawood Aloft 73.76% $ 127.81 $ 94.27 82.48% $ 126.95 $ 104.71
Lexington Home2 Suites 80.76% $ 112.71 $ 91.02 83.62% $ 114.78 $ 95.98
Round Rock Home2 Suites 85.50% $ 118.48 $ 101.30 84.09% $ 119.68 $ 100.64
Tallahassee Home2 Suites 86.77% $ 120.13 $ 104.24 82.68% $ 123.16 $ 101.83
South Haven Home2 Suites 86.44% $ 114.61 $ 99.07 91.52% $ 117.01 $ 107.09
Lake Mary Hampton Inn & Suites 81.98% $ 136.94 $ 112.27 83.17% $ 120.73 $ 100.41
Austin Residence Inn 81.85% $ 130.77 $ 107.03 78.25% $ 132.38 $ 103.59
El Paso Fairfield Inn 81.63% $ 100.67 $ 82.18 72.53% $ 106.14 $ 76.98
Wholly owned new investment platform properties 81.38% $ 120.54 $ 98.10 80.38% $ 119.23 $ 95.84
Atlanta Aloft JV 78.94% $ 147.26 $ 116.24 81.26% $ 136.21 $ 110.69
Total new investment platform 81.01% $ 124.45 $ 100.82 80.51% $ 121.80 $ 98.06
 
Total legacy held for sale 54.36% $ 87.46 $ 47.54 79.44% $ 80.30 $ 63.80
                   
Total Same-Store Portfolio 80.10% $ 123.59 $ 99.00 80.48% $ 120.40 $ 96.89
 
Austin TownePlace Suites (1) 78.64% $ 117.84 $ 92.68 64.83% $ 112.43 $ 72.88
Summerville Home2 Suites (1) 85.10% $ 129.06 $ 109.83 52.12% $ 125.03 $ 65.17
 
1 | Excluded from the total new investment platform calculation because the hotel was not operational for the entirety of the nine months ended September 30, 2017
 
                       
Condor Hospitality Trust, Inc.
Property List | As of the Date of this Release
                                     
New Investment Platform | Acquired from January 1, 2012 - November 12, 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 Quality Inn Solomons MD 59 06/01/1986 HFS
Total 59
 
Total Portfolio | As of November 12, 2018 1,967
                                     
1 | Owned 80% by Condor

2 | HFS indicates the asset was marketed as held for sale at September 30, 2018

 
                       
54 Dispositions | For Period January 1, 2015 - November 12, 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
53 Comfort Suites Ft. Wayne IN 127 05/30/2018 $7.1
54 Super 8 Creston IA 121 08/30/2018 $5.1
Total 2018 424 $20.4
   
      Total Dispositions                 4,637           $165.6
 
                       
Acquisitions | For Period January 1, 2015 - November 12, 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, 301-861-3305
Chief Financial Officer & Senior Vice President
jgantt@trustcondor.com

Source: Condor Hospitality Trust, Inc.