Fourth Quarter Net Loss Available for Common Shareholders of
$(0.66) Per Share
Fourth Quarter Normalized FFO Available for Common Shareholders of
$0.61 Per Share
NEWTON, Mass.--(BUSINESS WIRE)--
Hospitality Properties Trust (Nasdaq: HPT) today announced its financial
results for the quarter and year ended December 31, 2018:
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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2018
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2017
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2018
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2017
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($ in thousands, except per share and RevPAR data)
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Net income (loss) available for common shareholders
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$
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(108,860
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)
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$
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31,545
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$
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185,734
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$
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203,815
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Net income (loss) available for common shareholders per share
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$
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(0.66
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$
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0.19
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$
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1.13
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$
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1.24
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Adjusted EBITDA (1) |
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$
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149,773
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$
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135,312
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$
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805,303
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$
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773,654
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Normalized FFO available for common shareholders (1) |
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$
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99,994
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$
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87,865
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$
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605,708
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$
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585,734
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Normalized FFO available for common shareholders per share (1) |
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$
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0.61
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$
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0.54
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$
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3.69
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$
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3.57
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Portfolio Performance
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Comparable hotel RevPAR
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$
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86.24
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$
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87.70
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$
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96.22
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$
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95.74
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Change in comparable hotel RevPAR
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(1.7
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%)
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—
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0.5
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%
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—
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RevPAR (all hotels)
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$
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86.53
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$
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87.85
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$
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95.14
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$
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95.87
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Change in RevPAR (all hotels)
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(1.5
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%)
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—
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(0.8
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%)
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—
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Coverage of HPT’s minimum returns and rents for hotels
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0.77x
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0.90x
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0.97x
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1.06x
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Coverage of HPT's minimum rents for travel centers
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1.59x
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1.46x
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1.63x
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1.50x
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(1)
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Reconciliations of net income (loss) determined in accordance with
U.S. generally accepted accounting principles, or GAAP, to earnings
before interest, taxes, depreciation and amortization, or EBITDA,
and EBITDA as adjusted, or Adjusted EBITDA, and net income (loss)
available for common shareholders determined in accordance with GAAP
to funds from operations, or FFO, available for common shareholders,
and Normalized FFO available for common shareholders, for the
quarters and years ended December 31, 2018 and 2017 appear later in
this press release.
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John Murray, President and Chief Executive Officer of HPT, made the
following statement:
“HPT’s fourth quarter 2018 comparable hotel RevPAR declined 1.7%
compared to the prior year period due to occupancy decreases associated
with thirty-seven hotel renovations, non-recurring business related to
the hurricanes in Texas and Florida in the prior year period that
negatively impacted our Wyndham and IHG portfolios in particular and
competition from supply growth. For hotels not impacted by renovations
or hurricanes, comparable RevPAR increased 2.0%. Looking ahead to 2019,
we expect renovations will occur at fewer of our hotels compared to 2018.
Our TA properties' total gross margin increased by $23.6 million, or
8.1%, for the fourth quarter 2018, versus the same period last year
driven by a 32.5% increase in fuel margin and a 1.9% increase in
non-fuel margin. Travel center minimum rent coverage was 1.63 times for
the year ended 2018.
In January 2019, HPT completed the sale of 20 travel centers to TA for
$308.2 million for a significant gain. We used the proceeds to repay
amounts outstanding on our revolving credit facility and for general
business purposes, including to acquire the Kimpton® Hotel
Palomar in Washington, D.C. for $141.5 million in February 2019."
Results for the Quarter and Year Ended December 31, 2018 and
Recent Activities:
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Net Income (Loss) Available for Common Shareholders: Net loss
available for common shareholders for the quarter ended December 31,
2018 was $108.9 million, or $0.66 per diluted share, compared to net
income available for common shareholders of $31.5 million, or $0.19
per diluted share, for the quarter ended December 31, 2017. Net loss
available for common shareholders for the quarter ended December 31,
2018 includes $106.1 million, or $0.65 per diluted share, of
unrealized losses on equity securities and $53.6 million, or $0.33 per
diluted share, of business management incentive fee expense. Net
income available for common shareholders for the quarter ended
December 31, 2017 includes $36.3 million, or $0.22 per diluted share,
of business management incentive fee expense and a $5.4 million, or
$0.03 per diluted share, tax benefit related to the federal tax
legislation referred to as the Tax Cuts and Jobs Act, or the Tax Act.
The weighted average number of diluted common shares outstanding was
164.3 million and 164.2 million for the quarters ended December 31,
2018 and 2017, respectively.
Net income available for
common shareholders for the year ended December 31, 2018 was $185.7
million, or $1.13 per diluted share, compared to net income available
for common shareholders of $203.8 million, or $1.24 per diluted share,
for the year ended December 31, 2017. Net income available for common
shareholders for the year ended December 31, 2018 includes $53.6
million, or $0.33 per diluted share, of business management incentive
fee expense and $16.7 million, or $0.10 per diluted share, of
unrealized losses on equity securities. Net income available for
common shareholders for the year ended December 31, 2017 includes
$74.6 million, or $0.45 per diluted share, of business management
incentive fee expense, a $9.3 million, or $0.06 per diluted share,
gain on sale of real estate, a $5.4 million, or $0.03 per diluted
share, tax benefit related to the Tax Act, and was reduced by $9.9
million, or $0.06 per diluted share, for the amount by which the
liquidation preference for HPT's 7.125% Series D cumulative redeemable
preferred shares that were redeemed during the year exceeded the
carrying value of those preferred shares as of the date of the
redemption. The weighted average number of diluted common shares
outstanding was 164.3 million and 164.2 million for the years ended
December 31, 2018 and 2017, respectively.
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Adjusted EBITDA: Adjusted EBITDA for the quarter ended
December 31, 2018 compared to the same period in 2017 increased 10.7%
to $149.8 million.
Adjusted EBITDA for the year ended
December 31, 2018 compared to the same period in 2017 increased 4.1%
to $805.3 million.
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Normalized FFO Available for Common Shareholders: Normalized
FFO available for common shareholders for the quarter ended
December 31, 2018 were $100.0 million, or $0.61 per diluted share,
compared to Normalized FFO available for common shareholders of $87.9
million, or $0.54 per diluted share, for the quarter ended
December 31, 2017. Normalized FFO available for common shareholders
includes $53.6 million, or $0.33 per diluted share, and $74.6 million,
or $0.45 per diluted share, of business management incentive fee
expense for the quarters ended December 31, 2018 and 2017,
respectively.
Normalized FFO available for common
shareholders for the year ended December 31, 2018 were $605.7 million,
or $3.69 per diluted share, compared to Normalized FFO available for
common shareholders of $585.7 million, or $3.57 per diluted share, for
the year ended December 31, 2017. Normalized FFO available for common
shareholders includes $53.6 million, or $0.33 per diluted share, and
$74.6 million, or $0.45 per diluted share, of business management
incentive fee expense for the years ended December 31, 2018 and 2017,
respectively.
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Hotel RevPAR (comparable hotels): For the quarter ended
December 31, 2018 compared to the same period in 2017 for HPT’s 323
hotels that were owned continuously since October 1, 2017: average
daily rate, or ADR, increased 0.8% to $126.45; occupancy decreased 1.7
percentage points to 68.2%; and revenue per available room, or RevPAR,
decreased 1.7% to $86.24.
For the year ended December 31,
2018 compared to the same period in 2017 for HPT’s 303 hotels that
were owned continuously since January 1, 2017: ADR increased 1.7% to
$128.64; occupancy decreased 0.9 percentage points to 74.8%; and
RevPAR increased 0.5% to $96.22.
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Hotel RevPAR (all hotels): For the quarter ended December 31,
2018 compared to the same period in 2017 for HPT’s 326 hotels that
were owned as of December 31, 2018: ADR increased 0.8% to $126.87;
occupancy decreased 1.6 percentage points to 68.2%; and RevPAR
decreased 1.5% to $86.53.
For the year ended December 31,
2018 compared to the same period in 2017 for HPT’s 326 hotels that
were owned as of December 31, 2018: ADR increased 1.7% to $129.80;
occupancy decreased 1.8 percentage points to 73.3%; and RevPAR
decreased 0.8% to $95.14.
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Coverage of Minimum Returns and Rents: For the quarter ended
December 31, 2018, the aggregate coverage ratio of (x) total hotel
revenues minus all hotel expenses and FF&E reserve escrows which are
not subordinated to minimum returns or rents due to HPT to (y) HPT’s
minimum returns or rents due from hotels decreased to 0.77x from 0.90x
for the quarter ended December 31, 2017.
For the year
ended December 31, 2018, the aggregate coverage ratio of (x) total
hotel revenues minus all hotel expenses and FF&E reserve escrows which
are not subordinated to minimum returns or rents due to HPT to (y)
HPT’s minimum returns or rents due from hotels decreased to 0.97x from
1.06x for the year ended December 31, 2017.
For the
quarter ended December 31, 2018, the aggregate coverage ratio of (x)
total travel center revenues less travel center expenses to (y) HPT’s
minimum rent due from leased travel centers increased to 1.59x from
1.46x for the quarter ended December 31, 2017.
For the year
ended December 31, 2018, the aggregate coverage ratio of (x) total
travel center revenues less travel center expenses to (y) HPT’s
minimum rent due from leased travel centers increased to 1.63x from
1.50x for the year ended December 31, 2017.
As of
December 31, 2018, approximately 74% of HPT’s aggregate annual minimum
returns and rents were secured by guarantees or security deposits from
HPT’s managers and tenants pursuant to the terms of HPT’s operating
agreements.
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Recent Property Acquisition Activities: In October 2018, HPT
acquired a hotel with 164 suites located in Scottsdale, AZ for a
purchase price of $35.9 million, excluding acquisition related costs.
HPT rebranded this hotel to the Sonesta Suites® brand and
added it to its management agreement with Sonesta International Hotels
Corporation, or Sonesta.
In February 2019, HPT acquired the
335 room Hotel Palomar located in Washington, D.C. for a purchase
price of $141.5 million, excluding acquisition related costs. HPT
added this Kimpton® branded hotel to its management
agreement with InterContinental Hotels Group, plc (LON: IHG; NYSE: IHG
(ADRs)), or IHG.
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Transaction with TravelCenters of America: As previously
announced, on January 16, 2019, HPT entered agreements with
TravelCenters of America LLC (Nasdaq: TA), or TA, to sell 20 travel
centers to TA that HPT owned and leased to TA, and to amend their
leases.
HPT completed the sale of 20 travel centers in 15
states to TA for $308.2 million in January 2019. HPT expects to
realize a gain of approximately $160.0 million from these sales in the
first quarter of 2019. HPT used the proceeds from these sales to repay
borrowings under its revolving credit facility and for general
business purposes, including hotel acquisitions. The aggregate annual
minimum rents due from TA for the remaining 179 travel centers HPT
leases to TA was $246.1 million upon completion of the sales.
Under
the terms of the amended leases, HPT will receive an aggregate of
$70.5 million of previously deferred rents in 16 equal quarterly
installments beginning on April 1, 2019. Timing of the repayment was
accelerated from the previously staggered due dates between June 2024
and December 2030 in exchange for the deferred rent amounts being
discounted, HPT will receive additional potential percentage rent
beginning in 2020 equal to 0.5% of the excess of nonfuel revenues over
nonfuel revenues in 2019 at the leased travel centers. This percentage
rent is in addition to any percentage rent amounts HPT is already
receiving from TA. In addition, the lease term under each of the five
TA leases was extended three years.
Tenants and Managers:
As of December 31, 2018, HPT had
eight operating agreements with six hotel operating companies for 326
hotels with 50,543 rooms, which represented 67% of HPT’s total annual
minimum returns and rents, and five lease agreements with TA for 199
travel centers, which represented 33% of HPT’s total annual minimum
returns and rents.
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Marriott Agreements: As of December 31, 2018, 122 of HPT’s
hotels were operated by subsidiaries of Marriott International, Inc.
(Nasdaq: MAR), or Marriott, under three agreements. HPT’s Marriott No.
1 agreement includes 53 hotels, and provides for annual minimum return
payments to HPT of $70.1 million as of December 31, 2018
(approximately $17.5 million per quarter). During the three months
ended December 31, 2018, HPT realized returns under its Marriott No. 1
agreement of $16.7 million. Because there is no guarantee or security
deposit for this agreement, the minimum returns HPT receives under
this agreement are limited to available hotel cash flows after payment
of operating expenses and funding of a FF&E reserve. HPT’s Marriott
No. 234 agreement includes 68 hotels and requires annual minimum
returns to HPT of $107.4 million as of December 31, 2018
(approximately $26.8 million per quarter). During the three months
ended December 31, 2018, HPT realized returns under its Marriott No.
234 agreement of $26.8 million. HPT’s Marriott No. 234 agreement is
partially secured by a security deposit and a limited guaranty from
Marriott; during the three months ended December 31, 2018, HPT reduced
the available security deposit by $0.9 million to cover shortfalls in
hotel cash flows available to pay the minimum returns due to HPT
during the period. As of December 31, 2018, the available security
deposit from Marriott for the Marriott No. 234 agreement was $32.7
million and there was $30.7 million available under Marriott’s
guaranty for up to 90% of the minimum returns due to HPT to cover
future payment shortfalls if and after the available security deposit
is depleted. HPT's Marriott No. 5 agreement includes one resort hotel
in Kauai, HI which is leased to Marriott on a full recourse basis. The
contractual rent due to HPT for this hotel for the three months ended
December 31, 2018 of $2.6 million was paid to HPT.
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IHG Agreement: As of December 31, 2018, 100 of HPT’s hotels
were operated by subsidiaries of IHG, under one agreement requiring
annual minimum returns and rents to HPT of $193.7 million as of
December 31, 2018 (approximately $48.4 million per quarter). During
the three months ended December 31, 2018, HPT realized returns and
rents under its IHG agreement of $39.3 million. HPT's IHG agreement is
partially secured by a security deposit. As of December 31, 2018, the
available IHG security deposit which HPT held to pay future payment
shortfalls remained at the contractually capped amount of $100.0
million. In connection with the February acquisition of the Hotel
Palomar described above, IHG will provide HPT $5.0 million to
supplement the existing security deposit.
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Sonesta Agreement: As of December 31, 2018, 51 of HPT’s hotels
were operated under a management agreement with Sonesta, requiring
annual minimum returns of $127.1 million as of December 31, 2018
(approximately $31.8 million per quarter). During the three months
ended December 31, 2018, HPT realized returns under its Sonesta
agreement of $16.5 million. Because there is no guarantee or security
deposit for this agreement, the minimum returns HPT receives under
this agreement are limited to available hotel cash flows after payment
of operating expenses including management and related fees.
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Wyndham Agreement: As of December 31, 2018, 22 of HPT’s hotels
were operated under a management agreement with a subsidiary of
Wyndham Hotels & Resorts, Inc. (NYSE: WH), or Wyndham, requiring
annual minimum returns of $27.8 million as of December 31, 2018
(approximately $6.9 million per quarter). The guaranty provided by
Wyndham with respect to the management agreement was limited to $35.7
million and has been depleted since 2017. HPT's agreement with the
Wyndham subsidiary provides that if the hotels' cash flows available
after payment of hotel operating expenses are less than the minimum
returns due to HPT and if the guaranty is depleted, to avoid default
Wyndham is required to pay HPT the greater of the available hotel cash
flows after payment of hotel operating expenses and 85% of the
contractual minimum amount due. During the three months ended
December 31, 2018, HPT realized returns under its Wyndham agreement of
$5.9 million, which represents 85% of the minimum returns due for the
period. HPT also leases 48 vacation units in one of the hotels to a
subsidiary of Wyndham Destinations, Inc. (NYSE: WYND), or
Destinations, which requires annual minimum rent of $1.5 million
(approximately $0.4 million per quarter). The guaranty provided by
Destinations with respect to the lease is unlimited. The contractual
rent due to HPT under the lease for Destinations' 48 vacation units
during the three months ended December 31, 2018 was paid to HPT.
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Hyatt Agreement: As of December 31, 2018, 22 of HPT’s hotels
were operated under a management agreement with a subsidiary of Hyatt
Hotels Corporation (NYSE: H), or Hyatt, requiring annual minimum
returns of $22.0 million as of December 31, 2018 (approximately $5.5
million per quarter). During the three months ended December 31, 2018,
HPT realized returns under its Hyatt agreement of $5.5 million. HPT’s
Hyatt agreement is partially secured by a limited guaranty from Hyatt.
During the three months ended December 31, 2018, the hotels under this
agreement generated cash flows that were less than the minimum returns
due to HPT, and Hyatt made $1.6 million of guaranty payments to cover
the shortfall. As of December 31, 2018, there was $21.9 million
available under Hyatt's guaranty.
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Radisson Agreement: As of December 31, 2018, nine of HPT’s
hotels were operated under a management agreement with a subsidiary of
Radisson Hospitality, Inc., or Radisson, requiring annual minimum
returns of $18.9 million as of December 31, 2018 (approximately $4.7
million per quarter). During the three months ended December 31, 2018,
HPT realized returns under its Radisson agreement of $4.7 million.
HPT’s Radisson agreement is partially secured by a limited guaranty
from Radisson. During the three months ended December 31, 2018, the
hotels under this agreement generated cash flows that were less than
the minimum returns due to HPT, and Radisson made $1.0 million of
guaranty payments to cover the shortfall. As of December 31, 2018,
there was $42.6 million available under Radisson's guaranty.
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Travel Center Agreements: As of December 31, 2018, HPT’s 199
travel centers located along the U.S. Interstate Highway system were
leased to TA under five lease agreements, which require aggregate
annual minimum rents of $289.2 million (approximately $72.3 million
per quarter). As of December 31, 2018, all payments due to HPT from TA
under these leases were current. See above regarding transactions we
completed with TA in January 2019.
Conference Call:
At 10:00 a.m. Eastern Time this morning, President and Chief Executive
Officer, John Murray, and Chief Financial Officer and Treasurer, Brian
Donley, will host a conference call to discuss HPT's fourth quarter and
full year 2018 financial results. The conference call telephone number
is (877) 329-3720. Participants calling from outside the United States
and Canada should dial (412) 317-5434. No pass code is necessary to
access the call from either number. Participants should dial in about 15
minutes prior to the scheduled start of the call. A replay of the
conference call will be available through Wednesday, March 6, 2019. To
access the replay, dial (412) 317-0088. The replay pass code is 10127677.
A live audio webcast of the conference call will also be available in a
listen-only mode on HPT’s website, which is located at www.hptreit.com.
Participants wanting to access the webcast should visit HPT’s website
about five minutes before the call. The archived webcast will be
available for replay on HPT’s website for about one week after the call. The
transcription, recording and retransmission in any way of HPT’s fourth
quarter conference call is strictly prohibited without the prior written
consent of HPT.
Supplemental Data:
A copy of HPT’s Fourth Quarter 2018 Supplemental Operating and Financial
Data is available for download at HPT’s website, which is located at www.hptreit.com.
HPT’s website is not incorporated as part of this press release.
Hospitality Properties Trust is a real estate investment trust, or REIT,
which owns a diverse portfolio of hotels and travel centers located in
45 states, the District of Columbia, Puerto Rico and Canada. HPT’s
properties are operated under long term management or lease agreements.
HPT is managed by the operating subsidiary of The RMR Group Inc.
(Nasdaq: RMR), an alternative asset management company that is
headquartered in Newton, Massachusetts.
Please see the pages attached hereto for a more detailed statement of
HPT’s operating results and financial condition and for an explanation
of HPT’s calculation of FFO available for common shareholders and
Normalized FFO available for common shareholders, EBITDA and Adjusted
EBITDA and a reconciliation of those amounts to amounts determined in
accordance with GAAP.
WARNING CONCERNING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING
STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER HPT USES
WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”,
“ESTIMATE”, "WILL", “MAY” AND NEGATIVES OR DERIVATIVES OF THESE OR
SIMILAR EXPRESSIONS, HPT IS MAKING FORWARD LOOKING STATEMENTS. THESE
FORWARD LOOKING STATEMENTS ARE BASED UPON HPT’S PRESENT INTENT, BELIEFS
OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO
OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
CONTAINED IN OR IMPLIED BY HPT’S FORWARD LOOKING STATEMENTS AS A RESULT
OF VARIOUS FACTORS. FOR EXAMPLE:
-
MR. MURRAY STATES IN THIS PRESS RELEASE THAT HPT'S COMPARABLE HOTEL
REVPAR FOR HOTELS NOT IMPACTED BY RENOVATIONS OR HURRICANES GREW
DURING THE FOURTH QUARTER OF 2018 COMPARED WITH THE PRIOR YEAR PERIOD,
THAT TA PROPERTIES' GROSS MARGIN IMPROVED DURING THE FOURTH QUARTER OF
2018 COMPARED WITH THE PRIOR YEAR PERIOD AND THAT COVERAGE OF HPT'S
TRAVEL CENTER MINIMUM RENTS WAS 1.63 TIMES FOR THE YEAR ENDED 2018.
MR. MURRAY ALSO STATES IN THIS PRESS RELEASE THAT HPT EXPECTS
RENOVATIONS WILL OCCUR AT FEWER OF HPT'S HOTELS IN 2019. THESE
STATEMENTS MAY IMPLY HOTEL REVPAR AT HPT'S COMPARABLE HOTELS THAT ARE
NOT UNDER RENOVATION OR NOT IMPACTED BY HURRICANES MAY CONTINUE TO
GROW, TA PROPERTIES' GROSS MARGIN WILL CONTINUE TO INCREASE OR
COVERAGE OF MINIMUM RETURNS AND RENTS WILL REMAIN ABOVE 1.0 TIMES FOR
HPT'S TRAVEL CENTERS. IN FACT, COMPARABLE HOTEL REVPAR, EXCLUDING SUCH
ITEMS OR OTHERWISE, MAY NOT GROW AND MAY DECLINE. FURTHER, THE NUMBER
OF HOTELS HPT MAY RENOVATE IN 2019 MAY EXCEED ITS EXPECTATIONS DUE TO
VARIOUS POSSIBLE REASONS, INCLUDING CHANGED CONDITIONS AND COMPETITIVE
DEMANDS. IN ADDITION, TA'S IMPROVED PROPERTY RESULTS MAY NOT CONTINUE
AND ITS OPERATING RESULTS MAY DECLINE, AND COVERAGE OF HPT'S MINIMUM
RETURNS AND RENTS MAY DECLINE IN FUTURE PERIODS. IN ADDITION,
RENOVATIONS MAY NOT OCCUR AT FEWER OF HPT'S HOTELS THAN IN 2018.
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AS OF DECEMBER 31, 2018, APPROXIMATELY 74% OF HPT’S AGGREGATE ANNUAL
MINIMUM RETURNS AND RENTS WERE SECURED BY GUARANTEES OR SECURITY
DEPOSITS FROM HPT’S MANAGERS AND TENANTS. THIS MAY IMPLY THAT THESE
MINIMUM RETURNS AND RENTS WILL BE PAID. IN FACT, CERTAIN OF THESE
GUARANTEES AND SECURITY DEPOSITS ARE LIMITED IN AMOUNT AND DURATION
AND ALL THE GUARANTEES ARE SUBJECT TO THE GUARANTORS’ ABILITIES AND
WILLINGNESS TO PAY. HPT CANNOT BE SURE OF THE FUTURE FINANCIAL
PERFORMANCE OF HPT’S PROPERTIES AND WHETHER SUCH PERFORMANCE WILL
COVER HPT’S MINIMUM RETURNS AND RENTS, WHETHER THE GUARANTEES OR
SECURITY DEPOSITS WILL BE ADEQUATE TO COVER FUTURE SHORTFALLS IN THE
MINIMUM RETURNS OR RENTS DUE TO HPT WHICH THEY GUARANTEE OR SECURE, OR
REGARDING HPT’S MANAGERS’, TENANTS’ OR GUARANTORS’ FUTURE ACTIONS IF
AND WHEN THE GUARANTEES AND SECURITY DEPOSITS EXPIRE OR ARE DEPLETED
OR THEIR ABILITIES OR WILLINGNESS TO PAY MINIMUM RETURNS AND RENTS
OWED TO HPT. MOREOVER, THE SECURITY DEPOSITS HPT HOLDS ARE NOT
SEGREGATED FROM HPT’S OTHER ASSETS AND THE APPLICATION OF SECURITY
DEPOSITS TO COVER PAYMENT SHORTFALLS WILL RESULT IN HPT RECORDING
INCOME, BUT WILL NOT RESULT IN HPT RECEIVING ADDITIONAL CASH. THE
BALANCE OF HPT’S ANNUAL MINIMUM RETURNS AND RENTS AS OF DECEMBER 31,
2018 WAS NOT SECURED BY GUARANTEES OR SECURITY DEPOSITS.
-
WE EXPECT TO RECOGNIZE A GAIN OF APPROXIMATELY $160.0 MILLION FROM OUR
SALE OF 20 TRAVEL CENTERS TO TA IN THE FIRST QUARTER OF 2019. ANY GAIN
WE MAY RECOGNIZE MAY BE LESS THAN THE AMOUNT WE CURRENTLY EXPECT.
-
WYNDHAM'S $35.7 MILLION LIMITED GUARANTY HAS BEEN DEPLETED SINCE 2017.
HPT DOES NOT HOLD A SECURITY DEPOSIT WITH RESPECT TO AMOUNTS DUE UNDER
THE WYNDHAM AGREEMENT. WYNDHAM HAS PAID 85% OF THE MINIMUM RETURNS DUE
TO HPT FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2018. HPT CAN
PROVIDE NO ASSURANCE AS TO WHETHER WYNDHAM WILL CONTINUE TO PAY AT
LEAST THE GREATER OF AVAILABLE HOTEL CASH FLOWS AFTER PAYMENT OF HOTEL
OPERATING EXPENSES AND 85% OF THE MINIMUM RETURNS DUE TO HPT OR IF
WYNDHAM WILL DEFAULT ON ITS PAYMENTS.
-
HPT HAS NO GUARANTEES OR SECURITY DEPOSITS FOR THE MINIMUM RETURNS DUE
TO HPT FROM HPT'S MARRIOTT NO. 1 OR SONESTA AGREEMENTS. ACCORDINGLY,
HPT MAY RECEIVE AMOUNTS THAT ARE LESS THAN THE CONTRACTUAL MINIMUM
RETURNS STATED IN THESE AGREEMENTS.
THE INFORMATION CONTAINED IN HPT’S FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER THE CAPTION “RISK FACTORS”
IN HPT’S PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER
IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES FROM HPT’S FORWARD
LOOKING STATEMENTS. HPT’S FILINGS WITH THE SEC ARE AVAILABLE ON THE
SEC’S WEBSITE AT WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.
EXCEPT AS REQUIRED BY LAW, HPT DOES NOT INTEND TO UPDATE OR CHANGE ANY
FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS
OR OTHERWISE.
|
HOSPITALITY PROPERTIES TRUST
|
CONSOLIDATED STATEMENTS OF INCOME
|
(amounts in thousands, except share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating revenues (1) |
|
|
|
$
|
464,833
|
|
|
|
$
|
450,506
|
|
|
|
$
|
1,960,958
|
|
|
|
$
|
1,843,501
|
|
Rental income (2) |
|
|
|
84,745
|
|
|
|
83,490
|
|
|
|
328,446
|
|
|
|
323,764
|
|
FF&E reserve income (3) |
|
|
|
1,221
|
|
|
|
1,146
|
|
|
|
5,132
|
|
|
|
4,670
|
|
Total revenues
|
|
|
|
550,799
|
|
|
|
535,142
|
|
|
|
2,294,536
|
|
|
|
2,171,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating expenses (1) |
|
|
|
336,298
|
|
|
|
314,001
|
|
|
|
1,392,355
|
|
|
|
1,279,547
|
|
Depreciation and amortization
|
|
|
|
102,769
|
|
|
|
99,848
|
|
|
|
403,077
|
|
|
|
386,659
|
|
General and administrative (4) |
|
|
|
66,582
|
|
|
|
49,305
|
|
|
|
104,862
|
|
|
|
125,402
|
|
Total expenses
|
|
|
|
505,649
|
|
|
|
463,154
|
|
|
|
1,900,294
|
|
|
|
1,791,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of real estate (5) |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,348
|
|
Dividend income
|
|
|
|
876
|
|
|
|
626
|
|
|
|
2,754
|
|
|
|
2,504
|
|
Unrealized losses on equity securities (6) |
|
|
|
(106,085
|
)
|
|
|
—
|
|
|
|
(16,737
|
)
|
|
|
—
|
|
Interest income
|
|
|
|
435
|
|
|
|
208
|
|
|
|
1,528
|
|
|
|
798
|
|
Interest expense (including amortization of debt issuance costs and
debt discounts and premiums of $2,570, $2,331, $10,177 and $8,871,
respectively)
|
|
|
|
(49,624
|
)
|
|
|
(46,250
|
)
|
|
|
(195,213
|
)
|
|
|
(181,579
|
)
|
Loss on early extinguishment of debt (7) |
|
|
|
—
|
|
|
|
(146
|
)
|
|
|
(160
|
)
|
|
|
(146
|
)
|
Income (loss) before income taxes and equity in earnings (losses) of
an investee
|
|
|
|
(109,248
|
)
|
|
|
26,426
|
|
|
|
186,414
|
|
|
|
211,252
|
|
Income tax benefit (expense) (8) |
|
|
|
754
|
|
|
|
5,045
|
|
|
|
(1,195
|
)
|
|
|
3,284
|
|
Equity in earnings (losses) of an investee
|
|
|
|
(366
|
)
|
|
|
74
|
|
|
|
515
|
|
|
|
607
|
|
Net income (loss)
|
|
|
|
(108,860
|
)
|
|
|
31,545
|
|
|
|
185,734
|
|
|
|
215,143
|
|
Preferred distributions
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,435
|
)
|
Excess of liquidation preference over carrying value of preferred
shares
redeemed (9) |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,893
|
)
|
Net income (loss) available for common shareholders
|
|
|
|
$
|
(108,860
|
)
|
|
|
$
|
31,545
|
|
|
|
$
|
185,734
|
|
|
|
$
|
203,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (basic)
|
|
|
|
164,278
|
|
|
|
164,192
|
|
|
|
164,229
|
|
|
|
164,146
|
|
Weighted average common shares outstanding (diluted)
|
|
|
|
164,278
|
|
|
|
164,205
|
|
|
|
164,258
|
|
|
|
164,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) available for common shareholders per common share
(basic and diluted)
|
|
|
|
$
|
(0.66
|
)
|
|
|
$
|
0.19
|
|
|
|
$
|
1.13
|
|
|
|
$
|
1.24
|
|
See Notes on pages 11 and 12
|
|
|
|
|
HOSPITALITY PROPERTIES TRUST
|
|
|
RECONCILIATIONS OF FUNDS FROM OPERATIONS,
|
|
|
NORMALIZED FUNDS FROM OPERATIONS, EBITDA AND ADJUSTED EBITDA
|
|
|
(amounts in thousands, except share data)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Calculation of FFO and Normalized FFO available for common
shareholders: (10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) available for common shareholders
|
|
|
|
$
|
(108,860
|
)
|
|
|
$
|
31,545
|
|
|
|
$
|
185,734
|
|
|
|
$
|
203,815
|
|
Add (Less):
|
|
Depreciation and amortization
|
|
|
|
102,769
|
|
|
|
99,848
|
|
|
|
403,077
|
|
|
|
386,659
|
|
|
|
Gain on sale of real estate (5) |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,348
|
)
|
FFO available for common shareholders
|
|
|
|
(6,091
|
)
|
|
|
131,393
|
|
|
|
588,811
|
|
|
|
581,126
|
|
Add (Less):
|
|
Business management incentive fees (4)
|
|
|
|
—
|
|
|
|
(38,243
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
Loss on early extinguishment of debt (7) |
|
|
|
—
|
|
|
|
146
|
|
|
|
160
|
|
|
|
146
|
|
|
|
Excess of liquidation preference over carrying value of preferred
shares redeemed (9) |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,893
|
|
|
|
Unrealized losses on equity securities (6) |
|
|
|
106,085
|
|
|
|
—
|
|
|
|
16,737
|
|
|
|
—
|
|
|
|
Deferred tax benefit (8) |
|
|
|
—
|
|
|
|
(5,431
|
)
|
|
|
—
|
|
|
|
(5,431
|
)
|
Normalized FFO available for common shareholders
|
|
|
|
99,994
|
|
|
|
$
|
87,865
|
|
|
|
$
|
605,708
|
|
|
|
$
|
585,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (basic)
|
|
|
|
164,278
|
|
|
|
164,192
|
|
|
|
164,229
|
|
|
|
164,146
|
|
Weighted average common shares outstanding (diluted)
|
|
|
|
164,278
|
|
|
|
164,205
|
|
|
|
164,258
|
|
|
|
164,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted per common share amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO available for common shareholders
|
|
|
|
$
|
(0.04
|
)
|
|
|
$
|
0.80
|
|
|
|
$
|
3.59
|
|
|
|
$
|
3.54
|
|
|
|
Normalized FFO available for common shareholders
|
|
|
|
$
|
0.61
|
|
|
|
$
|
0.54
|
|
|
|
$
|
3.69
|
|
|
|
$
|
3.57
|
|
|
|
Distributions declared per share
|
|
|
|
$
|
0.53
|
|
|
|
$
|
0.52
|
|
|
|
$
|
2.11
|
|
|
|
$
|
2.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Calculation of EBITDA and Adjusted EBITDA: (11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
(108,860
|
)
|
|
|
$
|
31,545
|
|
|
|
$
|
185,734
|
|
|
|
$
|
215,143
|
|
Add (Less):
|
|
Interest expense
|
|
|
|
49,624
|
|
|
|
46,250
|
|
|
|
195,213
|
|
|
|
181,579
|
|
|
|
Income tax expense (benefit) (8) |
|
|
|
(754
|
)
|
|
|
(5,045
|
)
|
|
|
1,195
|
|
|
|
(3,284
|
)
|
|
|
Depreciation and amortization
|
|
|
|
102,769
|
|
|
|
99,848
|
|
|
|
403,077
|
|
|
|
386,659
|
|
EBITDA
|
|
|
|
42,779
|
|
|
|
172,598
|
|
|
|
785,219
|
|
|
|
780,097
|
|
Add (Less):
|
|
General and administrative expense paid in common shares (12)
|
|
|
|
909
|
|
|
|
811
|
|
|
|
3,187
|
|
|
|
2,759
|
|
|
|
Business management incentive fees (4) |
|
|
|
—
|
|
|
|
(38,243
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
Loss on early extinguishment of debt (7) |
|
|
|
—
|
|
|
|
146
|
|
|
|
160
|
|
|
|
146
|
|
|
|
Gain on sale of real estate (5) |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,348
|
)
|
|
|
Unrealized losses on equity securities (6) |
|
|
|
106,085
|
|
|
|
—
|
|
|
|
16,737
|
|
|
|
—
|
|
Adjusted EBITDA
|
|
|
|
$
|
149,773
|
|
|
|
$
|
135,312
|
|
|
|
$
|
805,303
|
|
|
|
$
|
773,654
|
|
See Notes on pages 11 and 12
(1)
|
|
As of December 31, 2018, HPT owned 326 hotels; 324 of these hotels
were managed by hotel operating companies and two hotels were leased
to hotel operating companies. As of December 31, 2018, HPT also
owned 199 travel centers; all 199 of these travel centers were
leased to a travel center operating company under five lease
agreements. HPT’s consolidated statements of income include hotel
operating revenues and expenses of managed hotels and rental income
from its leased hotels and travel centers. Certain of HPT's managed
hotels had net operating results that were, in the aggregate,
$31,610 and $14,138 less than the minimum returns due to HPT for the
three months ended December 31, 2018 and 2017, respectively, and
$50,203 and $31,477 less than the minimum returns due to HPT for the
years ended December 31, 2018 and 2017, respectively. When managers
of these hotels are required to fund the shortfalls under the terms
of HPT’s management agreements or their guarantees, HPT reflects
such fundings (including security deposit applications) in its
consolidated statements of income as a reduction of hotel operating
expenses. The reduction to hotel operating expenses was $6,748 and
$2,885 for the three months ended December 31, 2018 and 2017,
respectively, and $5,569 and $4,673 for the years ended December 31,
2018 and 2017, respectively. When HPT reduces the amounts of the
security deposit it holds for any of its operating agreements for
payment deficiencies, it does not result in additional cash flows to
HPT of the deficiency amounts, but reduces the refunds due to the
respective tenants or managers who have provided HPT with these
deposits upon expiration of the respective operating agreement. The
security deposits are non-interest bearing and are not held in
escrow. HPT had shortfalls at certain of its managed hotel
portfolios not funded by the managers of these hotels under the
terms of its management agreements of $15,981 and $44,634 for the
three months and year ended December 31, 2018, respectively, which
represent the unguaranteed portions of HPT's minimum returns from
its Sonesta and Wyndham agreements. HPT had shortfalls at certain of
its managed hotel portfolios not funded by the managers of these
hotels under the terms of its management agreements of $10,522 and
$26,804 for the three months and year ended December 31, 2017,
respectively, which represents the unguaranteed portion of HPT's
minimum returns from its Sonesta agreement. Certain of HPT’s managed
hotel portfolios had net operating results that were, in the
aggregate, $2,918 more than the minimum returns due to HPT for the
three months ended December 31, 2017 and $35,464 and $68,338 more
than the minimum returns due to HPT for the years ended December 31,
2018 and 2017, respectively. The net operating results of HPT's
managed hotel portfolios did not exceed the minimum returns due to
HPT for the three months ended December 31, 2018. Certain of HPT's
guarantees and its security deposits may be replenished by a share
of future cash flows from the applicable hotel operations in excess
of the minimum returns due to HPT pursuant to the terms of the
respective agreements. When HPT's guarantees and security deposits
are replenished by cash flows from hotel operations, HPT reflects
such replenishments in its consolidated statements of income as an
increase to hotel operating expenses. HPT had $10,743 and $25,419 of
guaranty and security deposit replenishments for the years ended
December 31, 2018 and 2017, respectively. There were no
replenishments for either of the three months ended December 31,
2018 or 2017.
|
|
|
|
(2)
|
|
Rental income includes $3,150 and $3,170 for the three months ended
December 31, 2018 and 2017, respectively, and $12,509 and $12,378
for the years ended December 31, 2018 and 2017, respectively, of
adjustments necessary to record scheduled rent increases under
certain of HPT’s leases, the deferred rent obligations under HPT’s
travel center leases and the estimated future payments to HPT under
its travel center leases for the cost of removing underground
storage tanks on a straight line basis. Rental income also includes
$3,695 and $2,106 in both the three months and years ended December
31, 2018 and 2017, respectively, of percentage rental income.
|
|
|
|
(3)
|
|
Various percentages of total sales at certain of HPT’s hotels are
escrowed as reserves for future renovations or refurbishment, or
FF&E reserve escrows. HPT owns all the FF&E reserve escrows for its
hotels. HPT reports deposits by its tenants into the escrow accounts
under its hotel leases as FF&E reserve income. HPT does not report
the amounts which are escrowed as FF&E reserves for its managed
hotels as FF&E reserve income.
|
|
|
|
(4)
|
|
Incentive fees under HPT’s business management agreement with The
RMR Group LLC are payable after the end of each calendar year, are
calculated based on common share total return, as defined, and are
included in general and administrative expense in HPT’s consolidated
statements of income. In calculating net income (loss) in accordance
with GAAP, HPT recognizes estimated business management incentive
fee expense, if any, in the first, second and third quarters.
Although HPT recognizes this expense, if any, in the first, second
and third quarters for purposes of calculating net income (loss),
HPT does not include these amounts in the calculation of Normalized
FFO available for common shareholders or Adjusted EBITDA until the
fourth quarter, which is when the business management incentive fee
expense amount for the year, if any, is determined. General and
administrative expense includes $53,635 of business management
incentive fee expense for both the three months and year ended
December 31, 2018 and $36,330 and $74,573 of business management
incentive fee expense for the three months and year ended December
31, 2017, respectively. Business management incentive fees for 2018
and 2017 were paid in January 2019 and 2018, respectively.
|
|
|
|
(5)
|
|
HPT recorded a $9,348 gain on sale of real estate during the three
months ended September 30, 2017 in connection with the sales of
three hotels.
|
|
|
|
(6)
|
|
Unrealized losses on equity securities represent the adjustment
required to adjust the carrying value of HPT's investments in The
RMR Group Inc. and TA common shares to their fair value as of
December 31, 2018 in accordance with new GAAP standards effective
January 1, 2018.
|
|
|
|
(7)
|
|
HPT recorded a loss of $160 on early extinguishment of debt in the
three months ended June 30, 2018 in connection with the amendment of
its revolving credit facility and term loan. HPT recorded a loss of
$146 on early extinguishment of debt in the three months ended
December 31, 2017 in connection with the redemption of certain
senior unsecured notes.
|
|
|
|
(8)
|
|
HPT realized a $5,431 tax benefit in the three months ended December
31, 2017 related to the enactment of the Tax Act.
|
|
|
|
(9)
|
|
In February 2017, HPT redeemed all 11,600,000 of its outstanding
7.125% Series D cumulative redeemable preferred shares at the stated
liquidation preference of $25.00 per share plus accrued and unpaid
distributions to the date of redemption (an aggregate of $291,435).
The liquidation preference of the redeemed shares exceeded the
carrying amount for the redeemed shares as of the date of redemption
by $9,893, or $0.06 per share, and HPT reduced net income available
to common shareholders in the three months ended March 31, 2017 by
that excess amount.
|
|
|
|
(10)
|
|
HPT calculates FFO available for common shareholders and Normalized
FFO available for common shareholders as shown above. FFO available
for common shareholders is calculated on the basis defined by The
National Association of Real Estate Investment Trusts, or Nareit,
which is net income (loss) available for common shareholders,
calculated in accordance with GAAP, excluding any gain or loss on
sale of properties and loss on impairment of real estate assets, if
any, plus real estate depreciation and amortization, as well as
certain other adjustments currently not applicable to HPT. HPT’s
calculation of Normalized FFO available for common shareholders
differs from Nareit’s definition of FFO available for common
shareholders because HPT includes business management incentive
fees, if any, only in the fourth quarter versus the quarter when
they are recognized as expense in accordance with GAAP due to their
quarterly volatility not necessarily being indicative of HPT’s core
operating performance and the uncertainty as to whether any such
business management incentive fees will be payable when all
contingencies for determining such fees are known at the end of the
calendar year, and HPT excludes the loss on early extinguishment of
debt, excess of liquidation preference over carrying value of
preferred shares redeemed, unrealized losses on equity securities
and certain deferred tax benefits. HPT considers FFO available for
common shareholders and Normalized FFO available for common
shareholders to be appropriate supplemental measures of operating
performance for a REIT, along with net income (loss) and net income
(loss) available for common shareholders. HPT believes that FFO
available for common shareholders and Normalized FFO available for
common shareholders provide useful information to investors because
by excluding the effects of certain historical amounts, such as
depreciation expense, FFO available for common shareholders and
Normalized FFO available for common shareholders may facilitate a
comparison of HPT’s operating performance between periods and with
other REITs. FFO available for common shareholders and Normalized
FFO available for common shareholders are among the factors
considered by HPT’s Board of Trustees when determining the amount of
distributions to its shareholders. Other factors include, but are
not limited to, requirements to maintain HPT’s qualification for
taxation as a REIT, limitations in its credit agreement and public
debt covenants, the availability to HPT of debt and equity capital,
HPT’s expectation of its future capital requirements and operating
performance and HPT’s expected needs for and availability of cash to
pay its obligations. FFO available for common shareholders and
Normalized FFO available for common shareholders do not represent
cash generated by operating activities in accordance with GAAP and
should not be considered alternatives to net income (loss) or net
income (loss) available for common shareholders as indicators of
HPT’s operating performance or as measures of HPT’s liquidity. These
measures should be considered in conjunction with net income (loss)
and net income (loss) available for common shareholders as presented
in HPT’s consolidated statements of income. Other real estate
companies and REITs may calculate FFO available for common
shareholders and Normalized FFO available for common shareholders
differently than HPT does.
|
|
|
|
(11)
|
|
HPT calculates EBITDA and Adjusted EBITDA as shown above. HPT
considers EBITDA and Adjusted EBITDA to be appropriate supplemental
measures of its operating performance, along with net income (loss)
and net income (loss) available for common shareholders. HPT
believes that EBITDA and Adjusted EBITDA provide useful information
to investors because by excluding the effects of certain historical
amounts, such as interest, depreciation and amortization expense,
EBITDA and Adjusted EBITDA may facilitate a comparison of current
operating performance with HPT’s past operating performance. In
calculating Adjusted EBITDA, HPT includes business management
incentive fees only in the fourth quarter versus the quarter when
they are recognized as expense in accordance with GAAP due to their
quarterly volatility not necessarily being indicative of HPT’s core
operating performance and the uncertainty as to whether any such
business management incentive fees will be payable when all
contingencies for determining such fees are known at the end of the
calendar year. EBITDA and Adjusted EBITDA do not represent cash
generated by operating activities in accordance with GAAP and should
not be considered alternatives to net income (loss) or net income
(loss) available for common shareholders as indicators of operating
performance or as measures of HPT’s liquidity. These measures should
be considered in conjunction with net income (loss) and net income
(loss) available for common shareholders as presented in HPT’s
consolidated statements of income. Other real estate companies and
REITs may calculate EBITDA and Adjusted EBITDA differently than HPT
does.
|
|
|
|
(12)
|
|
Amounts represent the equity compensation for HPT’s trustees, its
officers and certain other employees of HPT’s manager.
|
|
|
|
|
HOSPITALITY PROPERTIES TRUST
|
CONSOLIDATED BALANCE SHEETS
|
(amounts in thousands, except share data)
|
(Unaudited)
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
ASSETS
|
|
|
|
|
|
|
|
Real estate properties:
|
|
|
|
|
|
|
|
Land
|
|
|
|
$
|
1,626,239
|
|
|
|
$
|
1,668,797
|
|
Buildings, improvements and equipment
|
|
|
|
7,896,734
|
|
|
|
7,758,862
|
|
Total real estate properties, gross
|
|
|
|
9,522,973
|
|
|
|
9,427,659
|
|
Accumulated depreciation
|
|
|
|
(2,973,384
|
)
|
|
|
(2,784,478
|
)
|
Total real estate properties, net
|
|
|
|
6,549,589
|
|
|
|
6,643,181
|
|
Cash and cash equivalents
|
|
|
|
25,966
|
|
|
|
24,139
|
|
Restricted cash
|
|
|
|
50,037
|
|
|
|
73,357
|
|
Due from related persons
|
|
|
|
91,212
|
|
|
|
78,513
|
|
Other assets, net
|
|
|
|
460,275
|
|
|
|
331,195
|
|
Total assets
|
|
|
|
$
|
7,177,079
|
|
|
|
$
|
7,150,385
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Unsecured revolving credit facility
|
|
|
|
$
|
177,000
|
|
|
|
$
|
398,000
|
|
Unsecured term loan, net
|
|
|
|
397,292
|
|
|
|
399,086
|
|
Senior unsecured notes, net
|
|
|
|
3,598,295
|
|
|
|
3,203,962
|
|
Security deposits
|
|
|
|
132,816
|
|
|
|
126,078
|
|
Accounts payable and other liabilities
|
|
|
|
211,332
|
|
|
|
184,788
|
|
Due to related persons
|
|
|
|
62,913
|
|
|
|
83,049
|
|
Total liabilities
|
|
|
|
4,579,648
|
|
|
|
4,394,963
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
Common shares of beneficial interest, $.01 par value; 200,000,000
shares authorized; 164,441,709 and 164,349,141 shares issued and
outstanding, respectively
|
|
|
|
1,644
|
|
|
|
1,643
|
|
Additional paid in capital
|
|
|
|
4,545,481
|
|
|
|
4,542,307
|
|
Cumulative net income
|
|
|
|
3,575,307
|
|
|
|
3,310,017
|
|
Cumulative other comprehensive income (loss)
|
|
|
|
(266
|
)
|
|
|
79,358
|
|
Cumulative preferred distributions
|
|
|
|
(343,412
|
)
|
|
|
(343,412
|
)
|
Cumulative common distributions
|
|
|
|
(5,181,323
|
)
|
|
|
(4,834,491
|
)
|
Total shareholders’ equity
|
|
|
|
2,597,431
|
|
|
|
2,755,422
|
|
Total liabilities and shareholders’ equity
|
|
|
|
$
|
7,177,079
|
|
|
|
$
|
7,150,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Maryland Real Estate Investment Trust with transferable shares of
beneficial interest listed on the Nasdaq.
No shareholder,
Trustee or officer is personally liable for any act or obligation of the
Trust.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190227005189/en/
Katie Strohacker, Senior Director, Investor Relations
(617) 796-8232
Source: Hospitality Properties Trust