Ashford Hospitality Trust and Chatham Lodging Trust both reported their first-quarter earnings and the news was good for both REITs as both EBITDA and RevPAR grew exponentially.
Here are Ashford's highlights:
- RevPAR for the Ashford Trust Portfolio hotels increased 7.5% during the quarter
- RevPAR for all Ashford Trust Portfolio hotels not under renovation increased 8.5% during the quarter
- Hotel EBITDA increased 10.4% for all Ashford Trust Portfolio hotels
- Hotel EBITDA flow-through was 53% for all Ashford Trust Portfolio hotels
- Net loss attributable to common shareholders for the Company was $10.9 million, or $0.13 per diluted share, compared with net loss attributable to common shareholders of $23.2 million, or $0.34 per diluted share, in the prior-year quarter
- Adjusted funds from operations (AFFO) for the Company was $0.25 per diluted share for the quarter as compared with $0.35 from the prior-year quarter
- Interest rate derivative income decreased by $6.2 million from the prior year quarter, impacting AFFO per share by $0.06
- The prior year results also include the operations of the Ashford Prime portfolio
- During the first quarter, the Company refinanced its $165 million MIP Portfolio mortgage loan with a new $200 million non-recourse mortgage loan resulting in excess proceeds of approximately $30 million
- Ashford Trust announced its Board of Directors unanimously approved a plan to spin-off its asset management business into a separate publicly traded company in the form of a taxable distribution to be comprised of common stock in Ashford, Inc., a newly formed or successor company of the Company's existing advisor subsidiary, Ashford Hospitality Advisors LLC
- At the end of the first quarter 2014, the Company had total net working capital, including its pro rata share of the Highland Hospitality Portfolio net working capital and the market value of its OP Units in Ashford Prime, of $395 million
Here are Chatham's highlights:
- Portfolio RevPAR - Increased hotel RevPAR 7.8 percent to $105 for Chatham's 25 wholly owned hotels.
- Comparable Hotel RevPAR- Grew hotel RevPAR 6.5 percent, excluding the Residence Inn Washington, D.C. hotel, which was without a brand for a portion of the 2013 first quarter.
- Adjusted EBITDA - Rose 41 percent to $13.2 million.
- Adjusted FFO - Improved 66 percent to $7.4 million. Adjusted FFO per diluted share rose 8 percent to$0.28 from $0.26.
- Operating Margins - Expanded hotel EBITDA margins 70 basis points to 34.9 percent. Gross Operating Profit margins rose 10 basis points to 42.2 percent.
- Innkeepers Joint Venture - Reached agreement to sell the Cerberus/Chatham joint venture for $1.3 billion.
- Chatham will recognize a gain of approximately $77 million or $2.90 per share on the transaction.
- Northstar Realty Finance (NYSE: NRF) and Chatham will acquire 47 of the 51 hotels in an 89.7/10.3 percent joint venture respectively for $958.5 million.
- Chatham will acquire four Silicon Valley Residence Inn hotels for $341.5 million.
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