Over the past two weeks hotel brands have been releasing their results for Q3 2014, and now real estate investment trusts (REITs) are chiming in. Across the board numbers are high, as the industry continues to build steam and REIT activity increases.
DiamondRock Hospitality saw one of the industry's highest pro forma RevPAR increases for REITS, from 18.6 percent from comparable periods in 2013 to $170.88, while its pro forma adjusted EBITDA margin was 31.39 percent, up 531 basis points from 2013. The company's third-quarter Adjusted EBITDA was up 31 percent to $66.8 million. Meanwhile, the company's ADR rose 10.7 percent (to $201.90), while occupancy increased 5.6 percent (to 84.6 and 170).
"The third quarter was the highest growth quarter in the 10-year history of the Company," Mark W. Brugger, president and CEO of DiamondRock, said in a release. "We continue to reap the benefits of our urban and resort focus and the payoff from our value-add strategies implemented over the past few years, as well as benefiting from strong lodging fundamentals. Moreover, our industry-leading profit margin expansion is a testament to our asset management initiatives to increase market share and tightly control expenses."
Chesapeake Lodging Trust also posted increased RevPAR, up 7.3 percent across its 19-hotel portfolio, while the company's total revenue for three months ending Sept. 30 was $130.8 million, up from $122.4 million during 2013. The company's adjusted hotel EBITDA reached $47.2 million, up from $42.8 million the year prior.
Meanwhile, Chatham Lodging Trust reported a 10.5 percent RevPAR increase to $142 during the third quarter, while adjusted EBITDA shot up 82 percent to $28.5 million. The company's adjusted funds from operations (FFO) also rose 82 percent to $28.5 million. For three months ended Sept. 30, the company's occupancy rose to 88.1 percent from 85.7 percent, and Chatham's net income rose to $8.7 million from $2.5 million the year prior.
“Our third quarter set numerous records, with RevPAR surging 10.5 percent, well above industry growth of 9.2 percent, and our industry-leading margins accelerating another 640 basis points to 46.5 percent,” Jeffrey H. Fisher, Chatham’s president and CEO, said in a release. "These strong results enabled us to generate adjusted EBITDA and adjusted FFO per share above our and consensus expectations."
Lastly, Sunstone Hotel Investors' comparable hotel RevPAR increased 7.7 percent to $171.47, while its adjusted EBITDA increased 31 percent to $91.4 million. The company is sitting on 83.7 year-to-date occupancy, and its net income more than doubled for the period of three months ending Sept. 30, reaching $33.6 million in 2014 over $15.8 million in 2013.
Other REITs, such as FelCor, Hersha Hospitality Trust and Host Hotels & Resorts, released their numbers last week, showing comparable results with increases in RevPAR and net income.