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Press Release


Condor Hospitality Trust Reports Third Quarter 2020 Results

Company Release - 11/16/2020 4:56 PM ET

NORFOLK, Neb.--(BUSINESS WIRE)-- Condor Hospitality Trust, Inc. (NYSE American: CDOR) (the “Company”) today announced results for the third quarter ended September 30, 2020.

THIRD QUARTER RELEASE FINANCIAL HIGHLIGHTS

  • Revenue in the third quarter 2020 of $8.8 million, comprised of $8.8 million generated entirely from New Investment Platform Hotels, a 39.7% decrease from $14.7 million generated by New Investment Platform Hotels in the third quarter 2019.
  • Same-Store Revenue of $8.8 million for the third quarter 2020 decreased $8.9 million over the third quarter Same-Store Revenue of $17.7 million in 2019, while Same-Store ADR for the New Investment Platform Hotels decreased 25.9% in the third quarter of 2020 compared to the third quarter of 2019, and Same-Store RevPAR for the New Investment Platform Hotels in the 2020 third quarter decreased 49.5% compared to the same quarter in 2019, all adversely affected by the COVID-19 pandemic and industry wide falloff of travel.
  • Net Earnings (Loss) Attributable to Common Shareholders of ($5.0 million), or ($0.42) per Diluted Share in the third quarter, compared to ($2.1 million), or ($0.18) per share, in the 2019 third quarter. Decline in Net Earnings Attributable to Common Shareholders primarily caused by decreased revenues and the resulting $4.3 million decrease in hotel EBITDA in the third quarter compared to the same period in 2019 attributable to the COVID-19 pandemic.
  • Adjusted Funds from Operations was ($1.3 million), or ($0.11) per Diluted Share, a $3.9 million decrease from $2.6 million, or $0.22, in the 2019 third quarter.
  • Same-Store Hotel EBITDA decreased to $1.6 million from $6.1 million in Last Year’s Third Quarter.

MANAGEMENT COMMENTARY

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

“The Condor portfolio in the third quarter continued to achieve very impressive and outperforming results through continuing difficult market conditions. While RevPAR declined 49.5% compared to the third quarter in 2019, it continued to improve from $29.50 in the second quarter achieving approximately $45 in July, approximately $49 in August and over $49 in September. Occupancy continued improving from 33.9% in the second quarter to 56.46% for the month of September. Our hotels EBITDA margin was an impressive 17.7% given the low $47.60 RevPAR for the quarter as we achieved significant reductions in labor costs and expenses on a per occupied room basis such as housekeeping and complimentary food costs. The chart that follows illustrates the continuing portfolio improvement which is driven by our team’s efforts in capturing more than our fair share of growing leisure demand at the primarily drive to secondary non-urban hotel locations comprised of over 50% extended stay hotels. During September we announced the termination of the merger agreement and subsequent to the end of the quarter we announced a $7 million dollar settlement.”

 

 

 

 

 

 

 

 

 

 

 

 

 

July

 

August

 

September

 

October

Same-Store ADR

$

91.62

 

$

89.87

 

$

87.42

 

$

90.14

Same-Store Occupancy

 

48.8%

 

 

54.3%

 

 

56.5%

 

 

56.8%

Same-Store RevPAR

$

44.72

 

$

48.78

 

$

49.36

 

$

51.21

FINANCIAL SUMMARY

At September 30, 2020, the Company’s total portfolio included 15 hotels, representing 1,908 rooms.

Total Company Financial Results

($ in millions except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

2020

 

2019

 

Change

 

2020

 

2019

 

Change

Revenue

$

8.8

 

 

$

14.7

 

 

-39.7%

 

$

26.9

 

 

$

46.7

 

 

-42.5%

Net Loss Attributable to Common Shareholders

$

(5.0

)

 

$

(2.1

)

 

NA

 

$

(14.5

)

 

$

(3.7

)

 

NA

Diluted Earnings (Loss) per Share

$

(0.42

)

 

$

(0.18

)

 

NA

 

$

(1.21

)

 

$

(0.31

)

 

NA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds from Operations (FFO)*

$

(2.0

)

 

$

0.7

 

 

NA

 

$

(5.6

)

 

$

4.8

 

 

NA

FFO per Diluted Share*

$

(0.18

)

 

$

0.05

 

 

NA

 

$

(0.51

)

 

$

0.37

 

 

NA

Adjusted FFO*

$

(1.3

)

 

$

2.6

 

 

NA

 

$

(3.4

)

 

$

9.4

 

 

NA

Adjusted FFO per Diluted Share*

$

(0.11

)

 

$

0.22

 

 

NA

 

$

(0.29

)

 

$

0.78

 

 

NA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel EBITDA*

$

1.6

 

 

$

5.9

 

 

-73.6%

 

$

5.4

 

 

$

20.9

 

 

-74.3%

Adjusted EBITDAre*

$

0.7

 

 

$

4.7

 

 

-85.7%

 

$

2.1

 

 

$

17.1

 

 

-87.5%

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

Same Store Operational Results**

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

2020

 

2019

 

Change

 

2020

 

2019

 

Change

Same-Store RevPAR

$

47.60

 

$

94.31

 

-49.5%

 

$

53.17

 

$

101.71

 

-47.7%

Same-Store Occupancy

 

53.15%

 

 

78.06%

 

-31.9%

 

 

51.07%

 

 

80.17%

 

-36.3%

Same-Store ADR

$

89.56

 

$

120.81

 

-25.9%

 

$

104.13

 

$

126.87

 

-17.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same-Store Hotel EBITDA*

$

1.6

 

$

6.1

 

-74.6%

 

$

5.5

 

$

21.7

 

-74.7%

Same-Store Hotel EBITDA Margin*

 

17.7%

 

 

34.7%

 

-17.0%

 

 

19.3%

 

 

38.3%

 

-19.0%

*Please see the Reg. G reconciliation tables at the end of this release.
**Financial results presented above include results from prior to our ownership.

BALANCE SHEET

As of September 30, 2020, the Company had cash and cash equivalents (including restricted cash) of $9.4 million. As of September 30, 2020, the Company had total outstanding long-term debt of $180.3 million with a weighted average maturity of 1.0 years and a weighted average interest rate of 3.63%.

PORTFOLIO ACTIVITY

On February 14, 2020, the Company completed the acquisition of the remaining 20% interest in the joint venture that owned the Atlanta Aloft property (the “Atlanta Aloft”) for $7.3 million. The acquisition was funded with debt drawn under the Company’s Key Bank revolving credit facility.

CAPITAL INVESTMENTS

The Company invested $0.4 million in capital improvements throughout the portfolio in the nine months ended September 30, 2020 to upgrade its properties and maintain brand standards.

OUTLOOK AND GUIDANCE

The Company has suspended guidance until further notice.

DIVIDENDS

On March 30, 2020, the Sixth Amendment to the Key Bank credit facility was signed which provides that no cash dividends or distributions may be made to common or preferred shareholders for the remaining term of the debt.

EARNINGS CALL

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 15 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

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “estimate”, “believe”, “continue”, “project”, “plan”, the negative version of these words or other similar expressions. Readers are cautioned not to place undue reliance on any such forward-looking statements.

All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Factors which could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in economic conditions generally and the real estate market specifically, legislative/regulatory changes (including changes to laws governing the taxation of real estate investment trusts), availability of capital, risks associated with debt financing, interest rates, competition, supply and demand for hotel rooms in our current and proposed market areas, policies and guidelines applicable to real estate investment trusts, risks related to uncertainty and disruption in global economic markets as a result of COVID-19 (commonly referred to as the coronavirus), and other risks and uncertainties described herein, and in our filings with the Securities and Exchange Commission (“SEC”) from time to time. These risks and uncertainties should be considered in evaluating any forward-looking statements.

The forward-looking statements represent Condor’s views as of the date on which such statements were made. Condor anticipates that subsequent events and developments may cause those views to change. These forward-looking statements should not be relied upon as representing Condor’s views as of any date subsequent to the date hereof. Condor expressly disclaims a duty to provide updates to forward-looking statements, whether as a result of new information, future events or other occurrences.

Additional factors that may affect the Company’s business or financial results are described in the risk factors included in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

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, 2020

 

December 31, 2019

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Investment in hotel properties, net

 

$

268,328

 

 

$

222,063

 

Investment in unconsolidated joint venture

 

 

-

 

 

 

4,244

 

Cash and cash equivalents

 

 

3,297

 

 

 

2,584

 

Restricted cash, property escrows

 

 

6,081

 

 

 

5,811

 

Accounts receivable, net

 

 

966

 

 

 

1,099

 

Prepaid expenses and other assets

 

 

1,604

 

 

 

1,118

 

Derivative assets, at fair value

 

 

-

 

 

 

22

 

Total Assets

 

$

280,276

 

 

$

236,941

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Accounts payable, accrued expenses, and other liabilities

 

$

8,280

 

 

$

5,523

 

Dividends and distributions payable

 

 

603

 

 

 

145

 

Land option liability

 

 

8,497

 

 

 

-

 

Derivative liabilities, at fair value

 

 

1,009

 

 

 

366

 

Convertible debt, at fair value

 

 

1,025

 

 

 

1,080

 

Long-term debt, net of deferred financing costs

 

 

179,315

 

 

 

134,001

 

Total Liabilities

 

 

198,729

 

 

 

141,115

 

 

 

 

 

 

 

 

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 $9,853 and $9,395

 

 

10,050

 

 

 

10,050

 

Common stock, $.01 par value, 200,000,000 shares authorized; 12,007,712 and 11,993,608 shares outstanding

 

 

120

 

 

 

120

 

Additional paid-in capital

 

 

233,400

 

 

 

233,189

 

Accumulated deficit

 

 

(162,067

)

 

 

(147,582

)

Total Shareholders' Equity

 

 

81,503

 

 

 

95,777

 

Noncontrolling interest in consolidated partnership (Condor Hospitality Limited Partnership), redemption value of $11 and $47

 

 

44

 

 

 

49

 

Total Equity

 

 

81,547

 

 

 

95,826

 

 

 

 

 

 

 

 

Total Liabilities and Equity

 

$

280,276

 

 

$

236,941

 

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,

 

 

2020

 

2019

 

2020

 

2019

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Room rentals and other hotel services

 

$

8,841

 

 

$

14,666

 

 

$

26,879

 

 

$

46,746

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Hotel and property operations

 

 

7,334

 

 

 

9,718

 

 

 

22,238

 

 

 

29,266

 

Depreciation and amortization

 

 

2,780

 

 

 

2,405

 

 

 

8,267

 

 

 

7,161

 

General and administrative

 

 

894

 

 

 

1,210

 

 

 

3,101

 

 

 

4,445

 

Acquisition and terminated transactions

 

 

-

 

 

 

1

 

 

 

-

 

 

 

15

 

Strategic alternatives, net

 

 

636

 

 

 

1,052

 

 

 

860

 

 

 

1,886

 

Total operating expenses

 

 

11,644

 

 

 

14,386

 

 

 

34,466

 

 

 

42,773

 

Operating income (loss)

 

 

(2,803

)

 

 

280

 

 

 

(7,587

)

 

 

3,973

 

Net gain (loss) on disposition of assets

 

 

(3

)

 

 

(14

)

 

 

(13

)

 

 

9

 

Equity in earnings (loss) of joint venture

 

 

-

 

 

 

(84

)

 

 

80

 

 

 

595

 

Net gain (loss) on derivatives and convertible debt

 

 

131

 

 

 

(223

)

 

 

(609

)

 

 

(916

)

Other expense, net

 

 

(4

)

 

 

(27

)

 

 

(90

)

 

 

(80

)

Interest expense

 

 

(2,103

)

 

 

(1,912

)

 

 

(6,153

)

 

 

(6,169

)

Loss before income taxes

 

 

(4,782

)

 

 

(1,980

)

 

 

(14,372

)

 

 

(2,588

)

Income tax benefit (expense)

 

 

(27

)

 

 

(8

)

 

 

340

 

 

 

(655

)

Net loss

 

 

(4,809

)

 

 

(1,988

)

 

 

(14,032

)

 

 

(3,243

)

Loss attributable to noncontrolling interest

 

 

2

 

 

 

10

 

 

 

5

 

 

 

17

 

Net loss attributable to controlling interests

 

 

(4,807

)

 

 

(1,978

)

 

 

(14,027

)

 

 

(3,226

)

Dividends declared and undeclared on preferred stock

 

 

(169

)

 

 

(145

)

 

 

(458

)

 

 

(434

)

Net loss attributable to common shareholders

 

$

(4,976

)

 

$

(2,123

)

 

$

(14,485

)

 

$

(3,660

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) per Share

 

 

 

 

 

 

 

 

 

 

 

 

Total - Basic Earnings (Loss) per Share

 

$

(0.42

)

 

$

(0.18

)

 

$

(1.21

)

 

$

(0.31

)

Total - Diluted Earnings (Loss) per Share

 

$

(0.42

)

 

$

(0.18

)

 

$

(1.21

)

 

$

(0.31

)

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to consolidated financial statements.

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 loss to FFO and AFFO for the three and nine months ended September 30, 2020 and 2019 (in thousands). All amounts presented include our portion of the results of our unconsolidated Atlanta JV prior to our acquisition of the remaining 20% interest from our joint venture partner on February 14, 2020.

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

Reconciliation of Net loss to FFO and AFFO

2020

 

2019

 

2020

 

2019

Net loss

$

(4,809

)

 

$

(1,988

)

 

$

(14,032

)

 

$

(3,243

)

Depreciation and amortization expense

 

2,780

 

 

 

2,405

 

 

 

8,267

 

 

 

7,161

 

Depreciation and amortization expense from JV

 

-

 

 

 

299

 

 

 

145

 

 

 

895

 

Net (gain) loss on disposition of assets

 

3

 

 

 

14

 

 

 

13

 

 

 

(9

)

Net loss on disposition of assets from JV

 

-

 

 

 

2

 

 

 

-

 

 

 

2

 

FFO

 

(2,026

)

 

 

732

 

 

 

(5,607

)

 

 

4,806

 

Dividends declared and undeclared on preferred stock

 

(169

)

 

 

(145

)

 

 

(458

)

 

 

(434

)

FFO attributable to common shares and common units

 

(2,195

)

 

 

587

 

 

 

(6,065

)

 

 

4,372

 

Net (gain) loss on derivatives and convertible debt

 

(131

)

 

 

223

 

 

 

609

 

 

 

916

 

Net loss on derivatives from JV

 

-

 

 

 

-

 

 

 

-

 

 

 

1

 

Acquisition and terminated transactions expense

 

-

 

 

 

1

 

 

 

-

 

 

 

15

 

Strategic alternatives expense, net

 

636

 

 

 

1,052

 

 

 

860

 

 

 

1,886

 

Stock-based compensation expense

 

70

 

 

 

141

 

 

 

236

 

 

 

901

 

Amortization of deferred financing fees

 

284

 

 

 

286

 

 

 

829

 

 

 

981

 

Amortization of deferred financing fees from JV

 

-

 

 

 

143

 

 

 

93

 

 

 

234

 

Loss on extinguishment of debt from JV

 

-

 

 

 

138

 

 

 

-

 

 

 

138

 

AFFO attributable to common shares and common units

$

(1,336

)

 

$

2,571

 

 

$

(3,438

)

 

$

9,444

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO attributable to common shares and common units - Basic and Diluted

$

(2,195

)

 

$

587

 

 

$

(6,065

)

 

$

4,372

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per common share and common unit - Basic

$

(0.18

)

 

$

0.05

 

 

$

(0.51

)

 

$

0.37

 

FFO per common share and common unit - Diluted

$

(0.18

)

 

$

0.05

 

 

$

(0.51

)

 

$

0.37

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares and common units - Basic FFO

 

11,976,008

 

 

 

11,919,944

 

 

 

11,965,915

 

 

 

11,901,936

 

Weighted average common shares and common units - Diluted FFO

 

11,976,008

 

 

 

11,925,323

 

 

 

11,965,915

 

 

 

11,921,438

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFO attributable to common shares and common units - Basic

$

(1,336

)

 

$

2,571

 

 

$

(3,438

)

 

$

9,444

 

Convertible note interest

 

-

 

 

 

16

 

 

 

-

 

 

 

48

 

Preferred dividends at stated rates

 

-

 

 

 

-

 

 

 

-

 

 

 

434

 

AFFO attributable to common shares and common units - Diluted

$

(1,336

)

 

$

2,587

 

 

$

(3,438

)

 

$

9,926

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFO per common share and common unit - Basic

$

(0.11

)

 

$

0.22

 

 

$

(0.29

)

 

$

0.79

 

AFFO per common share and common unit - Diluted

$

(0.11

)

 

$

0.22

 

 

$

(0.29

)

 

$

0.78

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares and common units - Basic AFFO

 

11,976,008

 

 

 

11,919,944

 

 

 

11,965,915

 

 

 

11,901,936

 

Weighted average common shares and common units - Diluted AFFO

 

11,976,008

 

 

 

12,690,703

 

 

 

11,965,915

 

 

 

12,686,818

 

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 terminated transaction and strategic alternatives costs, net of related receipts. 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 loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA for the three and nine months ended September 30, 2020 and 2019 (in thousands). All amounts presented our portion of the results of our unconsolidated Atlanta JV prior to our acquisition of the remaining 20% interest from our joint venture partner on February 14, 2020.

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

Reconciliation of Net loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA

2020

 

2019

 

2020

 

2019

Net loss

$

(4,809

)

 

$

(1,988

)

 

$

(14,032

)

 

$

(3,243

)

Interest expense

 

2,103

 

 

 

1,912

 

 

 

6,153

 

 

 

6,169

 

Interest expense from JV

 

-

 

 

 

536

 

 

 

225

 

 

 

1,645

 

Income tax expense (benefit)

 

27

 

 

 

8

 

 

 

(340

)

 

 

655

 

Loss on extinguishment of debt from JV

 

-

 

 

 

138

 

 

 

-

 

 

 

138

 

Depreciation and amortization expense

 

2,780

 

 

 

2,405

 

 

 

8,267

 

 

 

7,161

 

Depreciation and amortization expense from JV

 

-

 

 

 

299

 

 

 

145

 

 

 

895

 

EBITDA

 

101

 

 

 

3,310

 

 

 

418

 

 

 

13,420

 

Net loss (gain) on disposition of assets

 

3

 

 

 

14

 

 

 

13

 

 

 

(9

)

Net loss on disposition of assets from JV

 

-

 

 

 

2

 

 

 

-

 

 

 

2

 

EBITDAre

 

104

 

 

 

3,326

 

 

 

431

 

 

 

13,413

 

Net loss (gain) on derivatives and convertible debt

 

(131

)

 

 

223

 

 

 

609

 

 

 

916

 

Net loss on derivative from JV

 

-

 

 

 

-

 

 

 

-

 

 

 

1

 

Stock-based compensation expense

 

70

 

 

 

141

 

 

 

236

 

 

 

901

 

Acquisition and terminated transactions expense

 

-

 

 

 

1

 

 

 

-

 

 

 

15

 

Strategic alternatives expense, net

 

636

 

 

 

1,052

 

 

 

860

 

 

 

1,886

 

Adjusted EBITDAre

 

679

 

 

 

4,743

 

 

 

2,136

 

 

 

17,132

 

General and administrative expense, excluding stock compensation expense

 

824

 

 

 

1,069

 

 

 

2,865

 

 

 

3,544

 

Other expense, net

 

4

 

 

 

27

 

 

 

90

 

 

 

80

 

Unallocated hotel and property operations expense

 

55

 

 

 

86

 

 

 

278

 

 

 

153

 

Hotel EBITDA

$

1,562

 

 

$

5,925

 

 

$

5,369

 

 

$

20,909

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

8,841

 

 

$

14,666

 

 

$

26,879

 

 

$

46,746

 

JV revenue

 

-

 

 

 

2,446

 

 

 

1,218

 

 

 

8,092

 

Condor and JV revenue

$

8,841

 

 

$

17,112

 

 

$

28,097

 

 

$

54,838

 

Hotel EBITDA as a percentage of revenue

 

17.7

%

 

 

34.6

%

 

 

19.1

%

 

 

38.1

%

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 strategic alternatives expense, net of related receipts, 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, 2020 and 2019 (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, 2020. 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. 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 ended September 30,

 

 

2020

 

2019

 

2020

 

2019

Condor and JV Revenue - Actual

 

$

8,841

 

$

17,112

 

$

28,097

 

$

54,838

 

Revenue earned on properties disposed of prior to September 30, 2020 during the period of ownership

 

 

-

 

 

-

 

 

-

 

 

(272

)

Revenue earned related to joint venture interest in the Atlanta JV prior to acquisition of this interest on February 14, 2020

 

 

-

 

 

612

 

 

304

 

 

2,023

 

Total Revenue - Same-Store

 

$

8,841

 

$

17,724

 

$

28,401

 

$

56,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel EBITDA - Reconciliation of Actual to Same-Store

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2020

 

2019

 

2020

 

2019

Condor and JV Hotel EBITDA - Actual

 

$

1,562

 

$

5,925

 

$

5,369

 

$

20,909

 

Hotel EBITDA earned on properties disposed of prior to September 30, 2020 during the period of ownership

 

 

-

 

 

-

 

 

-

 

 

(63

)

Hotel EBITDA earned related to joint venture interest in the Atlanta JV prior to acquisition of this interest on February 14, 2020

 

 

-

 

 

223

 

 

111

 

 

819

 

Total Hotel EBITDA - Same-Store

 

$

1,562

 

$

6,148

 

$

5,480

 

$

21,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel EBITDA Margin

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2020

 

2019

 

2020

 

2019

Total Hotel EBITDA Margin

 

 

17.7%

 

 

34.7%

 

 

19.3%

 

 

38.3%

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, 2020. The statistics for the Company’s two hotels that were temporarily closed due to the effects of COVID-19, the Solomons Hilton Garden Inn, which was closed on April 2, 2020 and reopened on July 1, 2020, and the Leawood Aloft, which was closed on April 9, 2020 and reopened on July 1, 2020, include only the periods that the properties were operational. With the exception of these COVID-19 related closures, 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

2020

 

2019

 

Occupancy

 

ADR

 

RevPAR

 

Occupancy

 

ADR

 

RevPAR

Solomons Hilton Garden Inn

43.29%

 

$

102.56

 

$

44.40

 

81.29%

 

$

120.27

 

$

97.77

Atlanta Hotel Indigo

52.48%

 

$

91.93

 

$

48.25

 

73.70%

 

$

101.40

 

$

74.73

Jacksonville Courtyard by Marriott

43.14%

 

$

87.08

 

$

37.57

 

71.65%

 

$

116.27

 

$

83.31

San Antonio SpringHill Suites

41.60%

 

$

73.21

 

$

30.46

 

74.13%

 

$

119.90

 

$

88.88

Leawood Aloft

39.14%

 

$

79.33

 

$

31.05

 

70.38%

 

$

130.56

 

$

91.89

Lexington Home2 Suites

75.92%

 

$

88.80

 

$

67.42

 

86.50%

 

$

117.56

 

$

101.69

Round Rock Home2 Suites

55.73%

 

$

72.36

 

$

40.33

 

83.29%

 

$

110.62

 

$

92.13

Tallahassee Home2 Suites

75.16%

 

$

101.82

 

$

76.52

 

80.09%

 

$

119.11

 

$

95.40

South Haven Home2 Suites

86.66%

 

$

90.73

 

$

78.62

 

89.40%

 

$

122.60

 

$

109.60

Lake Mary Hampton Inn & Suites

41.32%

 

$

100.57

 

$

41.56

 

68.70%

 

$

126.29

 

$

86.76

Austin Residence Inn

69.48%

 

$

85.23

 

$

59.22

 

80.43%

 

$

127.59

 

$

102.62

El Paso Fairfield Inn

47.36%

 

$

85.67

 

$

40.57

 

88.60%

 

$

107.52

 

$

95.26

Austin TownePlace Suites

42.81%

 

$

74.74

 

$

32.00

 

68.32%

 

$

106.07

 

$

72.47

Summerville Home2 Suites

68.92%

 

$

94.56

 

$

65.17

 

82.92%

 

$

129.09

 

$

107.04

Atlanta Aloft

40.92%

 

$

97.91

 

$

40.07

 

79.16%

 

$

138.00

 

$

109.24

Total Same-Store Portfolio

53.15%

 

$

89.56

 

$

47.60

 

78.06%

 

$

120.81

 

$

94.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30,

 

2020

 

2019

 

Occupancy

 

ADR

 

RevPAR

 

Occupancy

 

ADR

 

RevPAR

Solomons Hilton Garden Inn

50.90%

 

$

114.34

 

$

58.20

 

78.01%

 

$

122.93

 

$

95.90

Atlanta Hotel Indigo

53.28%

 

$

94.22

 

$

50.21

 

76.16%

 

$

107.72

 

$

82.04

Jacksonville Courtyard by Marriott

51.88%

 

$

101.92

 

$

52.88

 

76.56%

 

$

121.20

 

$

92.79

San Antonio SpringHill Suites

40.26%

 

$

103.57

 

$

41.70

 

80.28%

 

$

130.59

 

$

104.84

Leawood Aloft

43.54%

 

$

104.15

 

$

45.35

 

69.49%

 

$

132.42

 

$

92.01

Lexington Home2 Suites

55.90%

 

$

93.27

 

$

52.14

 

80.92%

 

$

116.18

 

$

94.01

Round Rock Home2 Suites

49.91%

 

$

86.23

 

$

43.03

 

84.15%

 

$

116.72

 

$

98.22

Tallahassee Home2 Suites

61.19%

 

$

112.80

 

$

69.02

 

89.15%

 

$

125.15

 

$

111.57

South Haven Home2 Suites

68.75%

 

$

97.94

 

$

67.34

 

90.70%

 

$

119.14

 

$

108.06

Lake Mary Hampton Inn & Suites

43.92%

 

$

125.26

 

$

55.01

 

79.09%

 

$

138.79

 

$

109.76

Austin Residence Inn

64.34%

 

$

104.40

 

$

67.17

 

82.91%

 

$

136.01

 

$

112.77

El Paso Fairfield Inn

49.08%

 

$

97.27

 

$

47.74

 

86.01%

 

$

105.69

 

$

90.90

Austin TownePlace Suites

46.70%

 

$

91.47

 

$

42.71

 

72.37%

 

$

112.11

 

$

81.13

Summerville Home2 Suites

62.73%

 

$

103.48

 

$

64.91

 

83.32%

 

$

130.73

 

$

108.92

Atlanta Aloft

39.70%

 

$

120.96

 

$

48.02

 

79.70%

 

$

154.97

 

$

123.52

Total Same-Store Portfolio

51.07%

 

$

104.13

 

$

53.17

 

80.17%

 

$

126.87

 

$

101.71

 

 

 

 

 

 

 

 

Condor Hospitality Trust, Inc.

 

Property List | As of September 30, 2020

 

 

 

 

 

 

 

 

 

New Investment Platform | Acquired from January 1, 2012 – September 30, 2020

 

 

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 Portfolio | As of September 30, 2020

 

 

1,908

 

$288.1

 

 

 

 

 

 

 

 

1 | Represents the purchase statistics from the purchase of this hotel by the originally 80% owned unconsolidated joint venture. The Company purchased the remaining 20% interest in the joint venture from our joint venture partner on February 14, 2020 for $7.3 million.

 

 

 

 

 

 

 

 

 

55 Dispositions | For Period January 1, 2015 – September 30, 2020

 

 

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

55

 

Quality Inn

Solomons

MD

59

03/22/2019

$4.3

 

 

Total 2019

 

 

59

 

$4.3

 

 

 

 

 

 

 

 

 

 

Total Dispositions

 

 

4,696

 

$169.9

 

 

 

 

 

 

 

 

Acquisitions | For Period January 1, 2015 – September 30, 2020

 

 

Hotel Name

City

State

Rooms<