Ashford Hospitality Prime Results

Ashford Prime Reports First Quarter 2017 Results

Adjusted Funds From Operations Per Share Increased 18% - Comparable RevPAR for all Hotels Not Under Renovation Increased 5.8% - Comparable Hotel EBITDA Margin for all Hotels Not Under Renovation Increased 50 bps

Ashford

Ashford Hospitality Prime, Inc. (NYSE:  AHP) yesterday reported the following results and performance measures for the first quarter ended March 31, 2017.  The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA are comparable assuming each of the hotel properties in the Company's hotel portfolio as of March 31, 2017 were owned as of the beginning of each of the periods presented.  Unless otherwise stated, all reported results compare the first quarter ended March 31, 2017, with the first quarter ended March 31, 2016 (see discussion below).  The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

STRATEGIC OVERVIEW

  • Focused strategy of investing in luxury hotels and resorts 
  • Targets conservative leverage levels of 45% Net Debt to Gross Assets 
  • Highly-aligned management team and advisory structure 
  • Dividend yield of approximately 6%

FINANCIAL AND OPERATING HIGHLIGHTS

  • Net loss attributable to common stockholders for the quarter was $1.7 million or $0.07 per diluted share 
  • Comparable RevPAR for all hotels increased 2.5% to $221.11 during the first quarter 
  • Comparable RevPAR for all hotels not under renovation increased 5.8% to $284.67 during the first quarter 
  • Adjusted funds from operations (AFFO) was $0.46 per diluted share for the quarter as compared with $0.39 per diluted share from the prior-year quarter, an increase of 18% 
  • Adjusted EBITDA was $23.7 million for the quarter 
  • During the quarter, the Company increased its quarterly common dividend by 33%, from $0.12 per diluted share to $0.16 per diluted share 
  • During the quarter, the Company announced that it had refinanced three mortgage loans with existing outstanding balances totaling approximately $334 million with a new loan totaling $365 million
  • During the quarter, the Company announced it had entered into an amended and restated advisory agreement with Ashford Inc. (NYSE MKT: AINC) to significantly lower the termination fee and address other investor feedback; subject to shareholder approval 
  • During the quarter, the Company announced it had entered into a settlement agreement with Sessa Capital. As part of the agreement, the Company is adding three new independent directors to its Board, Sessa will not run a slate of director candidates for the Company's Board through 2018, and all litigation between the Company and Sessa will be dismissed. 
  • During the quarter, the Company announced it has entered into a definitive agreement to acquire the 80-room Hotel Yountville in Yountville, CA for $96.5 million ($1,200,000 per key) 
  • During the quarter, the Company completed its underwritten public offering of 5,750,000 shares of common stock at a price of $12.15 per share 
  • The Company completed its underwritten public offering of 2,075,000 shares of 5.50% Series B Cumulative Convertible Preferred Stock at a price of $20.19 per share 
  • During the quarter, the Company completed the acquisition of the 190-room Park Hyatt Beaver Creek Resort & Spa in Beaver Creek, Colorado for $145.5 million ($766,000 per key). Concurrent with the completion of the acquisition, the Company financed the hotel with a $67.5 million non-recourse mortgage loan. 
  • Capex invested in the quarter was $9.3 million

REFINED STRATEGY TO ENHANCE SHAREHOLDER VALUE 

On January 24, 2017, the Company announced refinements to its strategy in an effort to enhance shareholder value following its newly-appointed CEO, Richard Stockton, having conducted and completed an in-depth strategic review. The review included meeting with investors, inspecting the Company's hotel properties and dialogue with corporate and property level management teams. These refinements, which were unanimously endorsed by the Board of Directors, include the following:

  • Focused Portfolio: Going forward, the Company's portfolio will be predominantly focused on investing in the luxury chain scale segment. The Company will continue to target acquisitions of hotels with a RevPAR of at least 2.0x the national average. As a result, four hotels have been designated as non-core to the portfolio, including the Courtyard Philadelphia Downtown Hotel, Courtyard San Francisco Downtown Hotel, Renaissance Tampa Hotel and Marriott Legacy Center Hotel in Plano, Texas. The Company intends to either reposition or opportunistically sell these hotels in the future if conditions warrant. The Company will also simultaneously pursue new acquisitions in order to grow the portfolio consistent with its stated strategy. 
  • Increased Dividend: The Company's 2017 dividend policy was amended commencing with the first quarter by increasing the quarterly cash dividend for the Company's common stock by 33%, from $0.12 per diluted share to $0.16 per diluted share. This equates to an annual rate of $0.64 per diluted share, representing a yield of approximately 6% based on the closing stock price on May 2, 2017.
  • Reaffirming Conservative Leverage: The Company will continue to target conservative leverage, with a target leverage level of 45% Net Debt to Gross Assets. 
  • Strong Liquidity: The Company will continue to focus on having access to liquidity for both opportunistic investments and as a hedge against economic uncertainty. The Company will target holding 10-15% of its gross debt balance in cash.

UPDATE ON STRATEGIC FOCUS TO INVEST IN LUXURY HOTELS AND RESORTS 

On March 1, 2017, the Company announced it had entered into a definitive agreement to acquire the 80-room Hotel Yountville in Yountville, CA for $96.5 million ($1,200,000 per key).  The Company intends to finance the property with approximately $50 million of non-recourse mortgage debt.  The acquisition is expected to close in the second quarter of 2017, subject to customary closing conditions and the approval of a development agreement by the town of Yountville.  Because the acquisition is subject to customary closing conditions, the Company can give no assurance that the transaction will be consummated by such date or at all.  

On March 31, 2017, the Company completed the acquisition of the 190-room Park Hyatt Beaver Creek Resort & Spa in Beaver Creek, Colorado for $145.5 million ($766,000 per key).   Concurrent with the completion of the acquisition, the Company has financed the hotel with a $67.5 million non-recourse mortgage loan.  This loan is interest only and provides for a floating interest rate of LIBOR + 2.75% with a two-year term and three, one-year extension options subject to the satisfaction of certain conditions.  The property will continue to be operated as a Park Hyatt under a management agreement with Hyatt.

AMENDED ADVISORY AGREEMENT WITH ASHFORD INC. 

On January 24, 2017, the Company announced it had entered into an amended and restated advisory agreement with Ashford Inc. (NYSE MKT: AINC) to significantly lower the termination fee and address other investor feedback.  Highlights of the amended agreement include the following:

  • Removal of the tax gross-up provision and the 1.1 times multiple from the calculation of the termination fee.
  • The revenues and allocated expenses of Ashford Inc. used to calculate the termination fee will be publicly disclosed on a quarterly basis. A full calculation of the termination fee under both the existing third amended and restated advisory agreement and the proposed fourth amended and restated advisory agreement was included in the proxy statement that was filed by the Company with the SEC on February 21, 2017 in connection with obtaining stockholder approval of the amended agreement.
  • The termination provisions of the advisory agreement have been amended and, specifically, a change in a majority of the Company's incumbent directors no longer triggers a termination fee.
  • The advisor's right under the existing advisory agreement to appoint a "Designated Chief Executive Officer" has been eliminated. The role of the recently appointed CEO of Ashford Prime, Richard Stockton, is not impacted by the removal of this provision, and he will continue to serve as CEO in the same capacity as he has since his appointment on November 14, 2016.
  • In addition to the termination fee, a payment of $45 million would be owed to Ashford Inc. in the event the amended agreement is terminated prior to any incremental growth in the hotel portfolio. This amount will reduce ratably to zero over time based on incremental asset growth.
  • At the effective date of the amended agreement, the Company will pay Ashford Inc. $5.0 million in cash.

The Company's Board of Directors, acting upon the unanimous recommendation of a special committee of independent directors, unanimously approved the amended agreement, and resolved to recommend that the Company's stockholders approve the amended agreement. The special committee exclusively negotiated the amended agreement on behalf of the Company with the assistance of independent legal and financial advisors. The amended agreement will not become effective unless it is approved by the Company's stockholders.

A summary of the terms of the amended agreement and the complete amended agreement can be found in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on January 25, 2017.

CAPITAL STRUCTURE 

At March 31, 2017, the Company had total assets of $1.5 billion.  As of March 31, 2017, the Company had $865 million of mortgage debt of which $48 million related to its joint venture partner's share of debt on the Capital Hilton and Hilton La Jolla Torrey Pines.  The Company's total combined debt had a blended average interest rate of 3.9%.

On January 24, 2017, the Company announced that it had refinanced three mortgage loans with existing outstanding balances totaling approximately $334 million. The previous mortgage loans that were refinanced had final maturity dates in April 2017. The new loan totals $365 million and has a two-year initial term with five one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and provides for a floating interest rate of LIBOR + 2.58%. The loan is secured by five hotels: Plano Marriott Legacy Town Center, Seattle Marriott Waterfront, Tampa Renaissance, San Francisco Courtyard Downtown and Philadelphia Courtyard Downtown. The new loan contains flexible release provisions should the Company decide to sell any of the hotels. The Company expects to realize approximately $12 million in annual savings in interest and principal payments based on the current forward LIBOR curve.

In March 2017, the Company completed its underwritten public offering of 5,750,000 shares of the Company's common stock at a price to the public of $12.15 per share. Total net proceeds from the offering, after deducting the underwriters' discounts and commissions and estimated offering expenses, were approximately $67 million. 

The Company completed its underwritten public offering of 2,075,000 shares of the Company's 5.50% Series B Cumulative Convertible Preferred Stock at a price to the public of $20.19 per share.  Dividends on the preferred stock will accrue at a rate of 5.50% per annum on the liquidation preference of $25.00 per share.  Total net proceeds from the offering, after deducting the underwriters' discounts and commissions and estimated offering expenses, were approximately $41 million. 

PORTFOLIO REVPAR 

As of March 31, 2017, the portfolio consisted of twelve properties.  During the first quarter of 2017, eight of the Company's hotels were not under renovation.  The Company believes reporting its operating metrics for its hotels on a comparable total basis (all 12 hotels) and comparable not under renovation basis (8 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio.  Details of each category are provided in the tables attached to this release.

  • Comparable RevPAR increased 2.5% to $221.11 for all hotels on a 1.5% increase in ADR and a 1.0% increase in occupancy 
  • Comparable RevPAR increased 5.8% to $284.67 for hotels not under renovation on a 2.9% increase in ADR and a 2.8% increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS

The Company believes year-over-year Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons.  Given the substantial seasonality in the Company's portfolio, to help investors better understand this seasonality, the Company provides quarterly detail on its Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company's portfolio as of the end of the current period.  As the Company's portfolio mix changes from time to time so will the seasonality for Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin.  The details of the quarterly calculations for the previous four quarters for the twelve hotels are provided in the table attached to this release.

COMMON STOCK DIVIDEND 

On March 14, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.16 per diluted share for the Company's common stock for the first quarter ending March 31, 2017.  The dividend, which equates to an annual rate of $0.64per share, is payable on April 17, 2017, to shareholders of record as of March 31, 2017.

"We are pleased with our first quarter 2017 performance, highlighted by solid growth in AFFO per share of 18% over the prior year," said Richard J. Stockton, Ashford Prime's President and Chief Executive Officer. "We continue to focus on maximizing shareholder value and delivering strong operational results and, with the acquisitions of Hotel Yountville and Park Hyatt Beaver Creek Resort & Spa, we are continuing to execute on our refined strategy to meaningfully grow our portfolio within the luxury chain scale segment."

Ashford Hospitality Prime is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.

Ashford has created an Ashford App for the hospitality REIT investor community.  The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford."

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)

March 31,

December 31,

2017

2016

ASSETS

Investments in hotel properties, gross

$                1,411,428

$              1,258,412

Accumulated depreciation

(254,168)

(243,880)

Investments in hotel properties, net

1,157,260

1,014,532

Cash and cash equivalents

161,314

126,790

Restricted cash

35,779

37,855

Accounts receivable, net of allowance of $81 and $96, respectively

24,912

18,194

Inventories

1,790

1,479

Note receivable

8,098

8,098

Deferred costs, net

924

1,020

Prepaid expenses

6,471

3,669

Investment in Ashford Inc., at fair value

11,498

8,407

Derivative assets

414

1,149

Other assets

9,068

2,249

Intangible assets, net

22,760

22,846

Due from Ashford Trust OP, net

-

488

Due from AQUA U.S. Fund

-

2,289

Due from related party, net

598

377

Due from third-party hotel managers

9,936

7,555

 

     Total assets

$                1,450,822

$              1,256,997

LIABILITIES AND EQUITY

Liabilities:

Indebtedness, net

$                   856,161

$                 764,616

Accounts payable and accrued expenses

52,939

44,791

Dividends payable

8,025

5,038

Due to Ashford Trust OP, net

6

-

Due to Ashford Inc.

3,525

5,085

Due to affiliate

-

2,500

Due to third-party hotel managers

962

973

Intangible liability, net

3,611

3,625

Other liabilities

1,465

1,432

 

     Total liabilities

926,694

828,060

5.50% Series B cumulative convertible preferred stock, $0.01 par value, 4,865,850 and 2,890,850 shares issued and

outstanding at March 31, 2017 and December 31, 2016, respectively

104,321

65,960

Redeemable noncontrolling interests in operating partnership

48,585

59,544

Equity:

 

Common stock, $0.01 par value, 200,000,000 shares authorized, 31,765,912 and 26,021,552 shares issued and

 

 

     outstanding at March 31, 2017 and December 31, 2016, respectively

317

260

 

Additional paid-in capital

467,535

401,790

 

Accumulated deficit

(91,246)

(93,254)

 

 

     Total stockholders' equity of the Company

376,606

308,796

Noncontrolling interest in consolidated entities

(5,384)

(5,363)

 

     Total equity

371,222

303,433

 

 

          Total liabilities and equity

$                1,450,822

$              1,256,997

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 Three Months Ended 

 March 31, 

2017

2016

REVENUE

Rooms

$                 67,418

$                 69,251

Food and beverage

24,473

24,865

Other

5,365

5,648

 

     Total hotel revenue

97,256

99,764

Other

40

33

 

     Total revenue

97,296

99,797

EXPENSES

Hotel operating expenses

 

Rooms

15,797

15,819

 

Food and beverage

16,861

17,445

 

Other expenses

27,731

28,339

 

Management fees 

3,545

3,807

 

 

     Total hotel operating expenses

63,934

65,410

Property taxes, insurance and other

5,074

5,043

Depreciation and amortization

11,971

11,904

Advisory services fee:

 

     Base advisory fee

2,003

2,025

 

     Reimbursable expenses

547

652

 

     Non-cash stock/unit-based compensation

(1,685)

(613)

Transaction costs

4,328

-

Corporate, general and administrative:

 

     Non-cash stock/unit-based compensation

18

-

 

     Other general and administrative

3,856

3,923

 

 

          Total operating expenses

90,046

88,344

OPERATING INCOME (LOSS)

7,250

11,453

Equity in earnings (loss) of unconsolidated entity

-

(2,650)

Interest income

112

32

Other income (expense)

(157)

(10)

Interest expense

(7,153)

(9,753)

Amortization of loan costs

(1,049)

(881)

Write-off of loan costs and exit fees

(1,963)

-

Unrealized gain (loss) on investments

3,091

(1,493)

Unrealized gain (loss) on derivatives

(898)

3,533

INCOME (LOSS) BEFORE INCOME TAXES

(767)

231

Income tax (expense) benefit

478

(370)

NET INCOME (LOSS)

(289)

(139)

(Income) loss from consolidated entities attributable to noncontrolling interest

21

(145)

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

255

150

NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

(13)

(134)

Preferred dividends

(1,673)

(894)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$                 (1,686)

$                 (1,028)

INCOME (LOSS) PER SHARE – BASIC AND DILUTED

Basic:

 

     Net income (loss) attributable to common stockholders

$                   (0.07)

$                   (0.04)

 

     Weighted average common shares outstanding – basic

27,267

28,343

Diluted:

 

     Net income (loss) attributable to common stockholders

$                   (0.07)

$                   (0.04)

 

     Weighted average common shares outstanding – diluted

27,267

28,343

Dividends declared per common share:

$                     0.16

$                     0.10

 

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA 

 (in thousands) 

 (unaudited) 

 Three Months Ended 

 March 31, 

2017

2016

 Net income (loss) 

$                    (289)

$                    (139)

 (Income) loss from consolidated entities attributable to noncontrolling interest 

21

(145)

 Net (income) loss attributable to redeemable noncontrolling interests in operating partnership 

255

150

 Net income (loss) attributable to the Company 

(13)

(134)

Interest income

(112)

(32)

Interest expense and amortization of loan costs

7,764

10,229

Depreciation and amortization 

11,251

11,200

Income tax expense (benefit)

(501)

370

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

(255)

(150)

 EBITDA available to the Company and OP unitholders 

18,134

21,483

Amortization of favorable (unfavorable) contract assets (liabilities)

49

(39)

Transaction costs

4,328

-

Other (income) expense 

157

10

Write-off of loan costs and exit fees

1,963

-

Unrealized (gain) loss on investments

(3,091)

1,493

Unrealized (gain) loss on derivatives

898

(3,533)

Non-cash stock/unit-based compensation

(1,668)

(613)

Legal, advisory and settlement costs

2,945

3,313

Company's portion of unrealized (gain) loss of investment in securities investment fund

-

2,650

 Adjusted EBITDA available to the Company and OP unitholders 

$                 23,715

$                 24,764

 RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO 

 (in thousands, except per share amounts) 

 (unaudited) 

 Three Months Ended 

 March 31, 

2017

2016

 Net income (loss) 

$                    (289)

$                    (139)

 (Income) loss from consolidated entities attributable to noncontrolling interest 

21

(145)

 Net (income) loss attributable to redeemable noncontrolling interests in operating partnership 

255

150

 Preferred dividends 

(1,673)

(894)

 Net income (loss) attributable to common stockholders 

(1,686)

(1,028)

Depreciation and amortization on real estate

11,251

11,200

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

(255)

(150)

 FFO available to common stockholders and OP unitholders 

9,310

10,022

Preferred dividends

1,673

894

Transaction costs

4,328

-

Other (income) expense 

157

10

Write-off of loan costs and exit fees

1,963

-

Unrealized (gain) loss on investments

(3,091)

1,493

Unrealized (gain) loss on derivatives

898

(3,533)

Non-cash stock/unit-based compensation

(1,668)

(613)

Legal, advisory and settlement costs

2,945

3,313

Company's portion of unrealized (gain) loss of investment in securities investment fund

-

2,650

 Adjusted FFO available to the Company and OP unitholders 

$                 16,515

$                 14,236

 Adjusted FFO per diluted share available to the Company and OP unitholders 

$                     0.46

$                     0.39

 Weighted average diluted shares 

36,272

36,290

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

MARCH 31, 2017

(dollars in thousands)

(unaudited)

 Comparable 

 Comparable 

 Fixed-Rate 

 Floating-Rate 

 Total 

 TTM Hotel 

 TTM EBITDA 

Indebtedness

Maturity

Interest Rate

 Debt 

 Debt 

 Debt 

EBITDA (8)

 Debt Yield 

 Column Financial Bardessono - 1 hotel 

December 2017

LIBOR + 4.95%

$                      -

$              40,000

(1)

$              40,000

$                5,119

12.8%

 Apollo Ritz-Carlton St. Thomas - 1 hotel 

December 2017

LIBOR + 4.95%

-

42,000

(1)

42,000

8,250

19.6%

 GACC Sofitel - 1 hotel 

March 2018

LIBOR + 2.30%

-

80,000

(2)

80,000

7,947

9.9%

 Credit Agricole Pier House - 1 hotel 

March 2018

LIBOR + 2.25%

-

70,000

(3)

70,000

10,223

14.6%

 TIF Philly CY - 1 hotel 

June 2018

12.85%

8,098

-

8,098

N/A

N/A

 Morgan Stanley Pool - 5 hotels 

February 2019

LIBOR + 2.58%

-

365,000

(4)

365,000

57,842

15.8%

 JPMorgan Park Hyatt Beaver Creek - 1 hotel 

April 2019

LIBOR + 2.75%

-

67,500

(1)

67,500

9,950

14.7%

 Aareal - 2 hotels 

November 2019

LIBOR + 2.65%

-

192,092

(5)

192,092

32,196

16.8%

 Secured revolving credit facility - Various 

November 2019

Base Rate(7)+ 1.25% to 2.50% or LIBOR + 2.25% to 3.50%

-

-

(6)

-

N/A

N/A

 Total 

$                8,098

$            856,592

$            864,690

$            131,527

15.2%

 Percentage 

0.9%

99.1%

100.0%

 Weighted average interest rate 

12.85%

3.77%

3.85%

All indebtedness is non-recourse with the exception of the secured revolving credit facility.

(1)This mortgage loan has three one-year extension options subject to satisfaction of certain conditions.  

(2)This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the second was exercised in March 2017.

(3)This mortgage loan has three one-year extension options subject to satisfaction of certain conditions, of which the first was exercised in March 2017.

(4)On January 18, 2017, we refinanced three mortgage loans totaling $333.7 million set to mature in April 2017 with a new $365.0 million loan with a two-year initial term and five one-year extension options subject to the satisfaction of certain conditions. The new loan is interest only and bears interest at a rate of LIBOR + 2.58%. 

(5)This mortgage loan has two one-year extension options subject to satisfaction of certain conditions.

(6)This credit facility has two one-year extension options subject to advance notice, certain conditions and a 0.25% extension fee beginning November 2019.

(7)Base Rate, as defined in the secured revolving credit facility agreement, is the greater of (i) the prime rate set by Bank of America, or (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%.

(8)See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.  

 

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED 

 MARCH 31, 2017 

 (in thousands) 

 (unaudited) 

2017

2018

2019

2020

2021

 Thereafter 

 Total 

 Secured revolving credit facility - Various 

$               -

$               -

$               -

$               -

$               -

$               -

$               -

 TIF Philly CY - 1 hotel 

-

8,098

-

-

-

-

8,098

 GACC Sofitel - 1 hotel 

-

-

80,000

-

-

-

80,000

 Credit Agricole Pier House - 1 hotel 

-

-

-

70,000

-

-

70,000

 Column Financial Bardessono - 1 hotel 

-

-

-

40,000

-

-

40,000

 Apollo Ritz-Carlton St. Thomas - 1 hotel 

-

-

-

42,000

-

-

42,000

 Aareal - 2 hotels 

-

-

-

-

177,486

-

177,486

 Morgan Stanley Pool - 5 hotels 

-

-

-

-

-

365,000

365,000

 JPMorgan Park Hyatt Beaver Creek - 1 hotel 

-

-

-

-

-

67,500

67,500

 Principal due in future periods 

$               -

$         8,098

$       80,000

$     152,000

$     177,486

$     432,500

$     850,084

 Scheduled amortization payments remaining 

2,319

2,939

3,120

3,312

2,916

-

14,606

 Total indebtedness 

$         2,319

$       11,037

$       83,120

$     155,312

$     180,402

$     432,500

$     864,690

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS 

(unaudited)

ALL HOTELS:

Three Months Ended

March 31,

Actual

Non-

comparable 

adjustments

Comparable

Actual

Non-

comparable 

adjustments

Comparable

Actual

Comparable

2017

2017

2017

2016

2016

2016

% Variance

% Variance

Rooms revenue (in thousands)

$         67,418

$               10,034

$         77,452

$         69,251

$                 7,156

$         76,407

(2.65%)

1.37%

RevPAR

$        202.35

$              586.82

$        221.11

$        192.56

$           (1,310.59)

$         215.74

5.08%

2.49%

Occupancy

78.43%

83.74%

78.69%

77.77%

(66.68%)

77.94%

0.85%

0.96%

ADR

$        258.00

$              700.74

$        281.00

$        247.62

$          (1,965.35)

$         276.81

4.19%

1.51%

NOTES:

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at March 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results from the hotel sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

ALL HOTELS

Three Months Ended

NOT UNDER RENOVATION:

March 31,

Actual

Non-

comparable 

adjustments

Comparable

Actual

Non-

comparable 

adjustments

Comparable

Actual

Comparable

2017

2017

2017

2016

2016

2016

% Variance

% Variance

Rooms revenue (in thousands)

$         45,537

$               10,034

$         55,571

$         45,952

$                 7,156

$         53,108

(0.90%)

4.64%

RevPAR

$        255.66

$              586.82

$        284.67

$        226.55

$          (1,310.59)

$         269.07

12.85%

5.80%

Occupancy

83.03%

83.74%

83.09%

80.46%

(66.68%)

80.84%

3.19%

2.78%

ADR

$        307.93

$              700.74

$        342.61

$        281.56

$          (1,965.35)

$        332.83

9.37%

2.94%

NOTES:

(1)

The above comparable information assumes the eight hotel properties owned and included in the Company's operations at March 31, 2017, and not under renovation during the three months ended March 31, 2017, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results from the hotel sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

Excluded Hotels Under Renovation: 

Philadelphia Courtyard Downtown, Plano Marriott Legacy Town Center, San Francisco Courtyard Downtown, Chicago Sofitel Magnificent Mile

 

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 HOTEL EBITDA 

 (dollars in thousands) 

 (unaudited) 

 ALL HOTELS: 

 Three Months Ended 

March 31,

2017

2016

 % Variance 

 Total hotel revenue 

$           97,256

$           99,764

(2.51%)

 Non-comparable adjustments 

18,810

14,841

 Comparable total hotel revenue 

$         116,066

$         114,605

1.27%

 Hotel EBITDA 

$           28,731

$           29,457

(2.46%)

 Non-comparable adjustments 

7,068

5,619

 Comparable Hotel EBITDA 

$           35,799

$           35,076

2.06%

 Hotel EBITDA Margin 

29.54%

29.53%

0.01%

 Comparable Hotel EBITDA Margin 

30.84%

30.61%

0.23%

 Hotel EBITDA adjustments attributable to consolidated noncontrolling interests 

$             2,223

$             1,760

26.31%

 Hotel EBITDA attributable to the Company and OP unitholders 

$           26,508

$           27,697

(4.29%)

 Comparable Hotel EBITDA attributable to the Company and OP unitholders 

$           33,576

$           33,316

0.78%

 NOTES: 

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at March 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results from the hotel sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 ALL HOTELS 

 NOT UNDER RENOVATION: 

 Three Months Ended 

March 31,

2017

2016

 % Variance 

 Total hotel revenue 

$           68,168

$           68,920

(1.09%)

 Non-comparable adjustments 

18,810

14,841

 Comparable total hotel revenue 

$           86,978

$           83,761

3.84%

 Hotel EBITDA 

$           22,030

$           21,977

0.24%

 Non-comparable adjustments 

7,068

5,619

 Comparable Hotel EBITDA 

$           29,098

$           27,596

5.44%

 Hotel EBITDA Margin 

32.32%

31.89%

0.43%

 Comparable Hotel EBITDA Margin 

33.45%

32.95%

0.50%

 Hotel EBITDA adjustments attributable to consolidated noncontrolling interests 

$             2,223

$             1,760

26.31%

 Hotel EBITDA attributable to the Company and OP unitholders 

$           19,807

$           20,217

(2.03%)

 Comparable Hotel EBITDA attributable to the Company and OP unitholders 

$           26,875

$           25,836

4.02%

 NOTES: 

(1)

The above comparable information assumes the eight hotel properties owned and included in the Company's operations at March 31, 2017, and not under renovation during the three months ended March 31, 2017, were owned as of the beginning of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results from the hotel sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

(4)

Excluded Hotels Under Renovation: 

Philadelphia Courtyard Downtown, Plano Marriott Legacy Town Center, San Francisco Courtyard Downtown, Chicago Sofitel Magnificent Mile

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY:

Three Months Ended March 31,

Actual

Non-

comparable 

adjustments

Comparable

Actual

Non-

comparable 

adjustments

Comparable

Actual

Comparable

2017

2017

2017

2016

2016

2016

% Variance

% Variance

CAPITAL HILTON WASHINGTON D.C.

Selected Financial Information:

Rooms Revenue

$       10,874

$                      -

$       10,874

$         9,226

$                       -

$         9,226

17.86%

17.86%

Total Hotel Revenue 

$       15,835

$                      -

$       15,835

$       13,766

$                       -

$       13,766

15.03%

15.03%

Hotel EBITDA

$         5,005

$                      -

$         5,005

$         3,615

$                       -

$         3,615

38.45%

38.45%

Hotel EBITDA Margin

31.61%

31.61%

26.26%

26.26%

5.35%

5.35%

Selected Operating Information:

RevPAR

$      219.68

$                      -

$      219.68

$      184.35

$                       -

$      184.35

19.17%

19.17%

Occupancy

86.49%

0.00%

86.49%

81.45%

0.00%

81.45%

6.19%

6.19%

ADR

$      253.99

$                      -

$      253.99

$      226.32

$                       -

$      226.32

12.23%

12.23%

LA JOLLA HILTON TORREY PINES

Selected Financial Information:

Rooms Revenue

$         6,125

$                      -

$         6,125

$         5,824

$                       -

$         5,824

5.17%

5.17%

Total Hotel Revenue 

$       11,236

$                      -

$       11,236

$       10,839

$                       -

$       10,839

3.66%

3.66%

Hotel EBITDA

$         3,887

$                      -

$         3,887

$         3,425

$                       -

$         3,425

13.49%

13.49%

Hotel EBITDA Margin

34.59%

34.59%

31.60%

31.60%

2.99%

2.99%

Selected Operating Information:

RevPAR

$      172.73

$                      -

$      172.73

$      162.44

$                       -

$      162.44

6.33%

6.33%

Occupancy

79.87%

0.00%

79.87%

77.94%

0.00%

77.94%

2.48%

2.48%

ADR

$      216.25

$                      -

$      216.25

$      208.42

$                       -

$      208.42

3.76%

3.76%

CHICAGO SOFITEL MAGNIFICENT MILE

Selected Financial Information:

Rooms Revenue

$         3,473

$                      -

$         3,473

$         3,618

$                       -

$         3,618

(4.01%)

(4.01%)

Total Hotel Revenue 

$         4,786

$                      -

$         4,786

$         5,260

$                       -

$         5,260

(9.01%)

(9.01%)

Hotel EBITDA

$      (1,176)

$                      -

$      (1,176)

$         (723)

$                       -

$         (723)

(62.66%)

(62.66%)

Hotel EBITDA Margin

(24.57%)

(24.57%)

(13.75%)

(13.75%)

(10.82%)

(10.82%)

Selected Operating Information:

RevPAR

$        92.99

$                      -

$        92.99

$        95.80

$                       -

$        95.80

(2.94%)

(2.94%)

Occupancy

66.57%

0.00%

66.57%

65.07%

0.00%

65.07%

2.31%

2.31%

ADR

$      139.67

$                      -

$      139.67

$      147.23

$                       -

$      147.23

(5.13%)

(5.13%)

BARDESSONO HOTEL AND SPA

Selected Financial Information:

Rooms Revenue

$         2,457

$                        -

$         2,457

$         2,290

$                       -

$         2,290

7.29%

7.29%

Total Hotel Revenue 

$         3,484

$                        -

$         3,484

$         3,452

$                       -

$         3,452

0.93%

0.93%

Hotel EBITDA

$            233

$                        -

$            233

$            143

$                       -

$            143

62.94%

62.94%

Hotel EBITDA Margin

6.69%

6.69%

4.14%

4.14%

2.55%

2.55%

Selected Operating Information:

RevPAR

$      440.31

$                      -

$      440.31

$      405.89

$                       -

$      405.89

8.48%

8.48%

Occupancy

75.70%

0.00%

75.70%

75.31%

0.00%

75.31%

0.52%

0.52%

ADR

$      581.65

$                      -

$      581.65

$      538.96

$                       -

$      538.96

7.92%

7.92%

KEY WEST PIER HOUSE RESORT

Selected Financial Information:

Rooms Revenue

$         5,682

$                      -

$         5,682

$         5,844

$                       -

$         5,844

(2.77%)

(2.77%)

Total Hotel Revenue 

$         6,977

$                      -

$         6,977

$         7,072

$                       -

$         7,072

(1.34%)

(1.34%)

Hotel EBITDA

$         3,662

$                      -

$         3,662

$         3,668

$                       -

$         3,668

(0.16%)

(0.16%)

Hotel EBITDA Margin

52.49%

52.49%

51.87%

51.87%

0.62%

0.62%

Selected Operating Information:

RevPAR

$      444.59

$                      -

$      444.59

$      452.26

$                       -

$      452.26

(1.70%)

(1.70%)

Occupancy

89.43%

0.00%

89.43%

92.87%

0.00%

92.87%

(3.71%)

(3.71%)

ADR

$      497.15

$                      -

$      497.15

$      486.97

$                       -

$      486.97

2.09%

2.09%

PARK HYATT BEAVER CREEK

Selected Financial Information:

Rooms Revenue

$               -

$               10,034

$       10,034

$               -

$                  9,892

$         9,892

0.00%

1.44%

Total Hotel Revenue 

$               -

$               18,810

$       18,810

$               -

$                18,028

$       18,028

0.00%

4.34%

Hotel EBITDA

$               -

$                 7,068

$         7,068

$               -

$                  6,847

$         6,847

0.00%

3.23%

Hotel EBITDA Margin

0.00%

37.58%

0.00%

37.98%

0.00%

(0.40%)

Selected Operating Information:

RevPAR

$             -

$              586.82

$      586.82

$             -

$               572.10

$      572.10

0.00%

2.57%

Occupancy

0.00%

83.74%

83.74%

0.00%

81.58%

81.58%

0.00%

2.65%

ADR

$             -

$              700.74

$      700.74

$             -

$               701.24

$      701.24

0.00%

(0.07%)

PHILADELPHIA COURTYARD DOWNTOWN

Selected Financial Information:

Rooms Revenue

$         4,960

$                      -

$         4,960

$         5,065

$                       -

$         5,065

(2.07%)

(2.07%)

Total Hotel Revenue 

$         6,122

$                      -

$         6,122

$         6,265

$                       -

$         6,265

(2.28%)

(2.28%)

Hotel EBITDA

$         1,583

$                      -

$         1,583

$         1,697

$                       -

$         1,697

(6.72%)

(6.72%)

Hotel EBITDA Margin

25.86%

25.86%

27.09%

27.09%

(1.23%)

(1.23%)

Selected Operating Information:

RevPAR

$      110.44

$                      -

$      110.44

$      111.54

$                       -

$      111.54

(0.99%)

(0.99%)

Occupancy

74.73%

0.00%

74.73%

75.31%

0.00%

75.31%

(0.77%)

(0.77%)

ADR

$      147.79

$                      -

$      147.79

$      148.10

$                       -

$      148.10

(0.21%)

(0.21%)

PLANO MARRIOTT LEGACY TOWN CENTER

Selected Financial Information:

Rooms Revenue

$         5,106

$                      -

$         5,106

$         5,217

$                       -

$         5,217

(2.13%)

(2.13%)

Total Hotel Revenue 

$         8,559

$                      -

$         8,559

$         8,541

$                       -

$         8,541

0.21%

0.21%

Hotel EBITDA

$         3,056

$                      -

$         3,056

$         2,977

$                       -

$         2,977

2.65%

2.65%

Hotel EBITDA Margin

35.71%

35.71%

34.86%

34.86%

0.85%

0.85%

Selected Operating Information:

RevPAR

$      140.43

$                      -

$      140.43

$      141.92

$                       -

$      141.92

(1.05%)

(1.05%)

Occupancy

71.78%

0.00%

71.78%

68.97%

0.00%

68.97%

4.07%

4.07%

ADR

$      195.64

$                      -

$      195.64

$      205.78

$                       -

$      205.78

(4.93%)

(4.93%)

SAN FRANCISCO COURTYARD DOWNTOWN

Selected Financial Information:

Rooms Revenue

$         8,342

$                      -

$         8,342

$         9,399

$                       -

$         9,399

(11.25%)

(11.25%)

Total Hotel Revenue 

$         9,621

$                      -

$         9,621

$       10,778

$                       -

$       10,778

(10.73%)

(10.73%)

Hotel EBITDA

$         3,238

$                      -

$         3,238

$         3,529

$                       -

$         3,529

(8.25%)

(8.25%)

Hotel EBITDA Margin

33.66%

33.66%

32.74%

32.74%

0.92%

0.92%

Selected Operating Information:

RevPAR

$      228.87

$                      -

$      228.87

$      255.02

$                       -

$      255.02

(10.25%)

(10.25%)

Occupancy

79.30%

0.00%

79.30%

87.73%

0.00%

87.73%

(9.61%)

(9.61%)

ADR

$      288.62

$                      -

$      288.62

$      290.70

$                       -

$      290.70

(0.72%)

(0.72%)

SEATTLE COURTYARD DOWNTOWN

Selected Financial Information:

Rooms Revenue

$               -

$                        -

$             -

$         2,736

$               (2,736)

$             -

(100.00%)

0.00%

Total Hotel Revenue 

$               -

$                        -

$             -

$         3,187

$               (3,187)

$             -

(100.00%)

0.00%

Hotel EBITDA

$               -

$                        -

$             -

$         1,228

$               (1,228)

$             -

(100.00%)

0.00%

Hotel EBITDA Margin

0.00%

0.00%

38.53%

0.00%

(38.53%)

0.00%

Selected Operating Information:

RevPAR

$             -

$                      -

$             -

$      120.26

$             (120.26)

$             -

(100.00%)

0.00%

Occupancy

0.00%

0.00%

0.00%

78.01%

(78.01%)

0.00%

(100.00%)

0.00%

ADR

$             -

$                      -

$             -

$      154.16

$             (154.16)

$             -

(100.00%)

0.00%

SEATTLE MARRIOTT WATERFRONT

Selected Financial Information:

Rooms Revenue

$         5,413

$                      -

$         5,413

$         4,987

$                       -

$         4,987

8.54%

8.54%

Total Hotel Revenue 

$         7,498

$                      -

$         7,498

$         6,864

$                       -

$         6,864

9.24%

9.24%

Hotel EBITDA

$         2,567

$                      -

$         2,567

$         2,171

$                       -

$         2,171

18.24%

18.24%

Hotel EBITDA Margin

34.24%

34.24%

31.63%

31.63%

2.61%

2.61%

Selected Operating Information:

RevPAR

$      168.00

$                      -

$      168.00

$      153.08

$                       -

$      153.08

9.75%

9.75%

Occupancy

81.23%

0.00%

81.23%

73.56%

0.00%

73.56%

10.43%

10.43%

ADR

$      206.81

$                      -

$      206.81

$      208.09

$                       -

$      208.09

(0.62%)

(0.62%)

ST. THOMAS RITZ-CARLTON

Selected Financial Information:

Rooms Revenue

$         9,743

$                        -

$         9,743

$         9,837

$                       -

$         9,837

(0.96%)

(0.96%)

Total Hotel Revenue 

$       15,675

$                        -

$       15,675

$       16,319

$                       -

$       16,319

(3.95%)

(3.95%)

Hotel EBITDA

$         4,408

$                        -

$         4,408

$         4,971

$                       -

$         4,971

(11.33%)

(11.33%)

Hotel EBITDA Margin

28.12%

28.12%

30.46%

30.46%

(2.34%)

(2.34%)

Selected Operating Information:

RevPAR

$      601.42

$                      -

$      601.42

$      600.53

$                       -

$      600.53

0.15%

0.15%

Occupancy

78.68%

0.00%

78.68%

79.47%

0.00%

79.47%

(0.99%)

(0.99%)

ADR

$      764.40

$                      -

$      764.40

$      755.62

$                       -

$      755.62

1.16%

1.16%

TAMPA RENAISSANCE

Selected Financial Information:

Rooms Revenue

$         5,243

$                      -

$         5,243

$         5,208

$                       -

$         5,208

0.67%

0.67%

Total Hotel Revenue 

$         7,463

$                      -

$         7,463

$         7,421

$                       -

$         7,421

0.57%

0.57%

Hotel EBITDA

$         2,268

$                      -

$         2,268

$         2,756

$                       -

$         2,756

(17.71%)

(17.71%)

Hotel EBITDA Margin

30.39%

30.39%

37.14%

37.14%

(6.75%)

(6.75%)

Selected Operating Information:

RevPAR

$      198.81

$                      -

$      198.81

$      195.32

$                       -

$      195.32

1.79%

1.79%

Occupancy

84.08%

0.00%

84.08%

88.19%

0.00%

88.19%

(4.66%)

(4.66%)

ADR

$      236.45

$                      -

$      236.45

$      221.47

$                       -

$      221.47

6.76%

6.76%

PRIME PROPERTIES TOTAL

Selected Financial Information:

Rooms Revenue

$       67,418

$               10,034

$       77,452

$       69,251

$                  7,156

$       76,407

(2.65%)

1.37%

Total Hotel Revenue 

$       97,256

$               18,810

$     116,066

$       99,764

$                14,841

$     114,605

(2.51%)

1.27%

Hotel EBITDA

$       28,731

$                 7,068

$       35,799

$       29,457

$                  5,619

$       35,076

(2.46%)

2.06%

Hotel EBITDA Margin

29.54%

30.84%

29.53%

30.61%

0.01%

0.23%

Selected Operating Information:

RevPAR

$      202.35

$              586.82

$      221.11

$      192.56

$          (1,310.59)

$      215.74

5.08%

2.49%

Occupancy

78.44%

83.74%

78.69%

77.77%

(66.68%)

77.94%

0.86%

0.96%

ADR

$      258.00

$              700.74

$      281.00

$      247.62

$          (1,965.35)

$      276.81

4.19%

1.51%

NOTES:

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at March 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results from the hotel sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY

(in thousands, except operating information)

(unaudited)

THE FOLLOWING TABLE PRESENTS SELECTED FINANCIAL AND OPERATING INFORMATION BY PROPERTY:

TTM Ended March 31,

Actual

Non-

comparable 

adjustments

Comparable

2017

2017

2017

CAPITAL HILTON WASHINGTON D.C.

Selected Financial Information:

Rooms Revenue

$            42,785

$                         -

$            42,785

Total Hotel Revenue 

$            60,681

$                         -

$            60,681

Hotel EBITDA

$            18,812

$                         -

$            18,812

Hotel EBITDA Margin

31.00%

31.00%

Selected Operating Information:

RevPAR

$           213.12

$                       -

$           213.12

Occupancy

89.85%

0.00%

89.85%

ADR

$           237.21

$                         -

$           237.21

LA JOLLA HILTON TORREY PINES

Selected Financial Information:

Rooms Revenue

$            23,865

$                         -

$            23,865

Total Hotel Revenue 

$            42,455

$                         -

$            42,455

Hotel EBITDA

$            13,384

$                         -

$            13,384

Hotel EBITDA Margin

31.53%

31.53%

Selected Operating Information:

RevPAR

$           165.95

$                       -

$           165.95

Occupancy

84.32%

0.00%

84.32%

ADR

$           196.80

$                         -

$           196.80

CHICAGO SOFITEL MAGNIFICENT MILE

Selected Financial Information:

Rooms Revenue

$            26,881

$                         -

$            26,881

Total Hotel Revenue 

$            36,405

$                         -

$            36,405

Hotel EBITDA

$              7,947

$                         -

$              7,947

Hotel EBITDA Margin

21.83%

21.83%

Selected Operating Information:

RevPAR

$           177.46

$                       -

$           177.46

Occupancy

82.84%

0.00%

82.84%

ADR

$           214.23

$                         -

$           214.23

BARDESSONO HOTEL AND SPA

Selected Financial Information:

Rooms Revenue

$            14,214

$                         -

$            14,214

Total Hotel Revenue 

$            18,966

$                         -

$            18,966

Hotel EBITDA

$              5,119

$                         -

$              5,119

Hotel EBITDA Margin

26.99%

26.99%

Selected Operating Information:

RevPAR

$           628.09

$                       -

$           628.09

Occupancy

84.49%

0.00%

84.49%

ADR

$           743.35

$                         -

$           743.35

KEY WEST PIER HOUSE RESORT

Selected Financial Information:

Rooms Revenue

$            18,604

$                         -

$            18,604

Total Hotel Revenue 

$            23,340

$                         -

$            23,340

Hotel EBITDA

$            10,223

$                         -

$            10,223

Hotel EBITDA Margin

43.80%

43.80%

Selected Operating Information:

RevPAR

$           358.94

$                       -

$           358.94

Occupancy

87.04%

0.00%

87.04%

ADR

$           412.40

$                         -

$           412.40

PARK HYATT BEAVER CREEK

Selected Financial Information:

Rooms Revenue

$                     -

$                 18,919

$            18,919

Total Hotel Revenue 

$                     -

$                 40,931

$            40,931

Hotel EBITDA

$                     -

$                   9,950

$              9,950

Hotel EBITDA Margin

0.00%

24.31%

Selected Operating Information:

RevPAR

$                   -

$                272.82

$           272.82

Occupancy

0.00%

62.50%

62.50%

ADR

$                   -

$                436.48

$           436.48

PHILADELPHIA COURTYARD DOWNTOWN

Selected Financial Information:

Rooms Revenue

$            27,155

$                         -

$            27,155

Total Hotel Revenue 

$            32,500

$                         -

$            32,500

Hotel EBITDA

$            12,442

$                         -

$            12,442

Hotel EBITDA Margin

38.28%

38.28%

Selected Operating Information:

RevPAR

$           149.10

$                       -

$           149.10

Occupancy

81.68%

0.00%

81.68%

ADR

$           182.54

$                         -

$           182.54

PLANO MARRIOTT LEGACY TOWN CENTER

Selected Financial Information:

Rooms Revenue

$            19,788

$                         -

$            19,788

Total Hotel Revenue 

$            32,020

$                         -

$            32,020

Hotel EBITDA

$            11,100

$                         -

$            11,100

Hotel EBITDA Margin

34.67%

34.67%

Selected Operating Information:

RevPAR

$           134.19

$                       -

$           134.19

Occupancy

71.27%

0.00%

71.27%

ADR

$           188.29

$                         -

$           188.29

SAN FRANCISCO COURTYARD DOWNTOWN

Selected Financial Information:

Rooms Revenue

$            35,192

$                         -

$            35,192

Total Hotel Revenue 

$            40,207

$                         -

$            40,207

Hotel EBITDA

$            12,499

$                         -

$            12,499

Hotel EBITDA Margin

31.09%

31.09%

Selected Operating Information:

RevPAR

$           238.07

$                       -

$           238.07

Occupancy

87.48%

0.00%

87.48%

ADR

$           272.14

$                         -

$           272.14

SEATTLE COURTYARD DOWNTOWN

Selected Financial Information:

Rooms Revenue

$              4,233

$                (4,233)

$                    -

Total Hotel Revenue 

$              4,808

$                (4,808)

$                    -

Hotel EBITDA

$              1,936

$                (1,936)

$                    -

Hotel EBITDA Margin

40.27%

0.00%

Selected Operating Information:

RevPAR

$           186.07

$              (186.07)

$                  -

Occupancy

89.45%

(89.45%)

0.00%

ADR

$           208.01

$              (208.01)

$                  -

SEATTLE MARRIOTT WATERFRONT

Selected Financial Information:

Rooms Revenue

$            29,174

$                         -

$            29,174

Total Hotel Revenue 

$            38,282

$                         -

$            38,282

Hotel EBITDA

$            15,511

$                         -

$            15,511

Hotel EBITDA Margin

40.52%

40.52%

Selected Operating Information:

RevPAR

$           223.26

$                       -

$           223.26

Occupancy

84.99%

0.00%

84.99%

ADR

$           262.69

$                         -

$           262.69

ST. THOMAS RITZ-CARLTON

Selected Financial Information:

Rooms Revenue

$            27,701

$                         -

$            27,701

Total Hotel Revenue 

$            49,634

$                         -

$            49,634

Hotel EBITDA

$              8,250

$                         -

$              8,250

Hotel EBITDA Margin

16.62%

16.62%

Selected Operating Information:

RevPAR

$           421.64

$                       -

$           421.64

Occupancy

78.26%

0.00%

78.26%

ADR

$           538.77

$                         -

$           538.77

TAMPA RENAISSANCE

Selected Financial Information:

Rooms Revenue

$            16,419

$                         -

$            16,419

Total Hotel Revenue 

$            23,923

$                         -

$            23,923

Hotel EBITDA

$              6,290

$                         -

$              6,290

Hotel EBITDA Margin

26.29%

26.29%

Selected Operating Information:

RevPAR

$           153.53

$                       -

$           153.53

Occupancy

80.19%

0.00%

80.19%

ADR

$           191.47

$                         -

$           191.47

PRIME PROPERTIES TOTAL

Selected Financial Information:

Rooms Revenue

$          286,011

$                 14,686

$          300,697

Total Hotel Revenue 

$          403,221

$                 36,123

$          439,344

Hotel EBITDA

$          123,513

$                   8,014

$          131,527

Hotel EBITDA Margin

30.63%

29.94%

Selected Operating Information:

RevPAR

$           208.16

$                315.17

$           211.67

Occupancy

83.20%

49.35%

82.09%

ADR

$           250.21

$                638.67

$           257.87

NOTES:

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at March 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results from the hotel sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)

Actual

Non-

comparable 

adjustments

Comparable

Actual

Non-

comparable 

adjustments

Comparable

Actual

Non-

comparable 

adjustments

Comparable

Actual

Non-

comparable 

adjustments

Comparable

2017

2017

2017

2016

2016

2016

2016

2016

2016

2016

2016

2016

1st Quarter

1st Quarter

1st Quarter

4th Quarter

4th Quarter

4th Quarter

3rd Quarter

3rd Quarter

3rd Quarter

2nd Quarter

2nd Quarter

2nd Quarter

Total Hotel Revenue

$              97,256

$              18,810

$            116,066

$              93,952

$                8,785

$            102,737

$              99,618

$                8,756

$            108,374

$            112,395

$                (228)

$            112,167

Hotel EBITDA

$              28,731

$                7,068

$              35,799

$              26,326

$                1,547

$              27,873

$              29,971

$                1,658

$              31,629

$              38,485

$             (2,259)

$              36,226

Hotel EBITDA Margin

29.54%

30.84%

28.02%

27.13%

30.09%

29.19%

34.24%

32.30%

EBITDA % of Total TTM

23.3%

27.2%

21.2%

21.2%

24.3%

24.1%

31.2%

27.5%

JV Interests in EBITDA

$                2,223

$                    -

$                2,223

$                1,722

$                     -

$                1,722

$                1,688

$                    -

$                1,688

$                2,416

$                    -

$                2,416

Actual

Non-

comparable 

adjustments

Comparable

2017

2017

2017

TTM

TTM

TTM

Total Hotel Revenue

$            403,221

$              36,123

$            439,344

Hotel EBITDA

$            123,513

$                8,014

$            131,527

Hotel EBITDA Margin

30.63%

29.94%

EBITDA % of Total TTM

100.0%

100.0%

JV Interests in EBITDA

$                8,049

$                    -

$                8,049

NOTES:

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at March 31, 2017, were owned as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results from the hotel sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 TOTAL ENTERPRISE VALUE 

MARCH 31, 2017

 (in thousands, except share price) 

 (unaudited) 

March 31,

2017

End of quarter common shares outstanding

31,766

Partnership units outstanding (common stock equivalents)

4,939

Combined common shares and partnership units outstanding

36,705

Common stock price at quarter end

$                        10.61

Market capitalization at quarter end

$                    389,440

Series B convertible preferred stock

$                    121,646

Debt on balance sheet date

$                    864,690

Joint venture partner's share of consolidated debt

$                    (48,023)

Net working capital (see below)

$                  (181,853)

Total enterprise value (TEV)

$                 1,145,900

Ashford Inc. Investment:

Common stock owned at end of quarter

195

Common stock price at quarter end

$                       59.00

Market value of Ashford Inc. investment

$                     11,498

Cash and cash equivalents

$                    157,946

Restricted cash

$                      34,161

Accounts receivable, net

$                      23,086

Prepaid expenses

$                        6,039

Due from affiliates, net

$                      (2,934)

Due from third-party hotel managers, net

$                        9,181

Market value of Ashford Inc. investment

$                      11,498

Total current assets

$                    238,977

Accounts payable, net & accrued expenses

$                      49,099

Dividends payable

$                        8,025

Total current liabilities

$                      57,124

Net working capital*

$                    181,853

* Includes the Company's pro rata share of net working capital in joint ventures.

 

Ashford Hospitality Prime, Inc. and Subsidiaries

Anticipated Capital Expenditures Calendar (a)

2017

Rooms

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Actual

Estimated

Estimated

Estimated

Philadelphia Courtyard Downtown

499

x

Plano Marriott Legacy Town Center

404

x

x

x

San Francisco Courtyard Downtown

405

x

x

x

x

Chicago Sofitel Magnificent Mile

415

x

x

Capital Hilton Washington D.C.

550

x

(a)Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2017 are included in this table.

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO HOTEL EBITDA

(in thousands)

(unaudited)

2017

2016

2016

2016

March 31, 2017

1st Quarter

4th Quarter

3rd Quarter

2nd Quarter

TTM

Net income (loss)

$                       14,951

$                       12,615

$                     42,999

$                25,004

$                      95,569

(Income) loss from consolidated entities attributable to 

noncontrolling interests

(1,444)

(971)

(965)

(1,700)

(5,080)

Net income (loss) attributable to the Company

13,507

11,644

42,034

23,304

90,489

Non-property adjustments

-

1

(26,358)

9

(26,348)

Interest income

(10)

(10)

(9)

(8)

(37)

Interest expense

1,280

1,672

1,655

1,623

6,230

Amortization of loan costs

130

135

133

130

528

Depreciation and amortization

11,851

11,555

11,175

11,263

45,844

Income tax expense (benefit)

133

(21)

53

(92)

73

Non-Hotel EBITDA ownership expense

396

379

323

556

1,654

Income (loss) from consolidated entities attributable to 

noncontrolling interests

1,444

971

965

1,700

5,080

Hotel EBITDA including amounts attributable to

noncontrolling interest

28,731

26,326

29,971

38,485

123,513

Non-comparable adjustments

7,068

1,547

1,658

(2,259)

8,014

Comparable Hotel EBITDA

$                       35,799

$                       27,873

$                     31,629

$                36,226

$                    131,527

NOTES:

 

 

(1)

The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at March 31, 2017, were owned  as of the 

beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results 

from the hotel sold during the period.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Three months Ended March 31, 2017

Capital 

Hilton 

Washington 

D.C.

La Jolla 

Hilton 

Torrey 

Pines

Chicago 

Sofitel 

Magnificent 

Mile

Bardessono 

Hotel & Spa

Key West 

Pier House 

Resort

Park Hyatt 

Beaver 

Creek

Philadelphia 

Courtyard 

Downtown

Plano 

Marriott  

Legacy 

Town 

Center

San 

Francisco 

Courtyard  

Downtown

Seattle 

Courtyard  

Downtown

Seattle 

Marriott 

Waterfront

St. Thomas 

Ritz-Carlton 

Tampa 

Renaissance

Hotel Total

Corporate / 

Allocated

Ashford 

Hospitality 

Prime, Inc.

Net income (loss)

$        3,286

$        2,265

$       (2,768)

$         (547)

$        2,963

$             (7)

$            10

$        1,867

$       2,217

$             -

$       1,570

$       2,749

$          1,346

$     14,951

$         (15,240)

$           (289)

(Income) loss from consolidated entities 

attributable to noncontrolling interests

(854)

(590)

-

-

-

-

-

-

-

-

-

-

-

(1,444)

1,465

21

Net (income) loss attributable to redeemable 

noncontrolling interests in operating partnership

-

-

-

-

-

-

-

-

-

-

-

-

-

-

255

255

Net income (loss) attributable to the Company

2,432

1,675

(2,768)

(547)

2,963

(7)

10

1,867

2,217

-

1,570

2,749

1,346

13,507

(13,520)

(13)

Non-property adjustments

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Interest Income

(2)

(1)

-

-

-

-

-

-

(3)

-

(3)

(1)

-

(10)

(102)

(112)

Interest expense

-

-

617

-

-

7

54

-

-

-

-

602

-

1,280

5,873

7,153

Amortization of loan cost

-

-

-

-

-

-

-

-

-

-

-

130

-

130

919

1,049

Depreciation and amortization

1,588

1,518

972

618

689

-

1,507

1,188

989

-

994

855

933

11,851

120

11,971

Income tax expense (benefit)

-

94

(1)

-

-

-

2

(1)

-

-

-

39

-

133

(611)

(478)

Non-Hotel EBITDA ownership expense

133

11

4

162

10

-

10

2

35

-

6

34

(11)

396

(396)

-

Income (loss) from consolidated entities 

attributable to noncontrolling interests

854

590

-

-

-

-

-

-

-

-

-

-

-

1,444

(1,444)

-

Hotel EBITDA including amounts attributable 

to noncontrolling interest

5,005

3,887

(1,176)

233

3,662

-

1,583

3,056

3,238

-

2,567

4,408

2,268

28,731

(9,161)

19,570

Less: EBITDA adjustments attributable to non-

controlling interest

(397)

(382)

-

-

-

-

-

-

-

-

-

-

-

(779)

(402)

(1,181)

(Income) loss from consolidated entities 

attributable to noncontrolling interests

(854)

(590)

-

-

-

-

-

-

-

-

-

-

-

(1,444)

1,444

-

Net income (loss) attributable to redeemable 

noncontrolling interest in operating partnership

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(255)

(255)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Hotel EBITDA attributable to the Company and OP unitholders

$        3,754

$        2,915

$       (1,176)

$          233

$        3,662

$             -

$        1,583

$        3,056

$       3,238

$             -

$       2,567

$       4,408

$          2,268

$     26,508

$          (8,374)

$        18,134

Non-comparable adjustments

-

-

-

-

-

7,068

-

-

-

-

-

-

-

7,068

Comparable Hotel EBITDA

$        5,005

$        3,887

$       (1,176)

$          233

$        3,662

$        7,068

$        1,583

$        3,056

$       3,238

$             -

$       2,567

$       4,408

$          2,268

$     35,799

ALL HOTELS NOT UNDER RENOVATION:

Hotel EBITDA including amounts attributable to noncontrolling interest

$        5,005

$        3,887

$             -

$          233

$        3,662

$             -

$             -

$             -

$           -

$             -

$       2,567

$       4,408

$          2,268

$     22,030

Non-comparable adjustments

-

-

-

-

-

7,068

-

-

-

-

-

-

-

7,068

Comparable Hotel EBITDA

$        5,005

$        3,887

$             -

$          233

$        3,662

$        7,068

$             -

$             -

$           -

$             -

$       2,567

$       4,408

$          2,268

$     29,098

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 HOTEL EBITDA BY LOAN POOL 

 (in thousands) 

 (unaudited) 

GACC Sofitel - 1 hotel 

$            -

$             -

$       (1,176)

$            -

$             -

$             -

$             -

$             -

$           -

$             -

$           -

$           -

$               -

$     (1,176)

Credit Agricole Pier House - 1 hotel 

-

-

-

-

3,662

-

-

-

-

-

-

-

-

3,662

Column Financial Bardessono - 1 hotel 

-

-

-

233

-

-

-

-

-

-

-

-

-

233

Apollo Ritz-Carlton St Thomas - 1 hotel 

-

-

-

-

-

-

-

-

-

-

-

4,408

-

4,408

Aareal - 2 hotels 

5,005

3,887

-

-

-

-

-

-

-

-

-

-

-

8,892

Morgan Stanley Pool -5 hotels

-

-

-

-

-

-

1,583

3,056

3,238

-

2,567

-

2,268

12,712

JP Morgan Park Hyatt Beaver Creek -1 hotel

-

-

-

-

-

7,068

-

-

-

-

-

-

-

7,068

Total

$        5,005

$        3,887

$       (1,176)

$          233

$        3,662

$        7,068

$        1,583

$        3,056

$       3,238

$             -

$       2,567

$       4,408

$          2,268

$     35,799

NOTES:

(1)   The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at March 31, 2017, were owned  as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results

        from the hotel sold during the period.

(2)   All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)   Excluded Hotels Under Renovation 

       Philadelphia Courtyard Downtown; Plano Marriott Legacy Town Center; San Francisco Courtyard Downtown; Chicago Sofitel Magnificent Mile

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Three months Ended December 31, 2016

Capital 

Hilton 

Washington 

D.C.

La Jolla 

Hilton 

Torrey 

Pines

Chicago 

Sofitel 

Magnificent 

Mile

Bardessono 

Hotel & Spa

Key West 

Pier House 

Resort

Park Hyatt 

Beaver 

Creek

Philadelphia 

Courtyard 

Downtown

Plano 

Marriott  

Legacy 

Town 

Center

San 

Francisco 

Courtyard  

Downtown

Seattle 

Courtyard  

Downtown

Seattle 

Marriott 

Waterfront

St. Thomas 

Ritz-Carlton 

Tampa 

Renaissance

Hotel Total

Corporate / 

Allocated

Ashford 

Hospitality 

Prime, Inc.

Net income (loss)

$        2,448

$        1,204

$           586

$          663

$        1,781

$             -

$           818

$        1,533

$       1,160

$             -

$       2,078

$        (353)

$             697

$     12,615

$         (11,770)

$            845

(Income) loss from consolidated entities 

attributable to noncontrolling interests

(645)

(326)

-

-

-

-

-

-

-

-

-

-

-

(971)

435

(536)

Net (income) loss attributable to redeemable 

noncontrolling interests in operating partnership

-

-

-

-

-

-

-

-

-

-

-

-

-

-

95

95

Net income (loss) attributable to the Company

1,803

878

586

663

1,781

-

818

1,533

1,160

-

2,078

(353)

697

11,644

(11,240)

404

Non-property adjustments

-

-

-

-

-

-

-

-

-

-

-

1

-

1

(1)

-

Interest Income

-

-

-

-

-

-

(1)

(1)

(4)

-

(3)

(1)

-

(10)

(25)

(35)

Interest expense

-

-

586

-

-

-

496

-

-

-

-

590

-

1,672

7,380

9,052

Amortization of loan cost

-

-

-

-

-

-

8

-

-

-

-

127

-

135

628

763

Depreciation and amortization

1,582

1,512

951

610

687

-

1,470

1,174

825

-

964

831

949

11,555

-

11,555

Income tax expense (benefit)

29

(32)

-

-

-

-

(2)

-

-

-

-

(16)

-

(21)

573

552

Non-Hotel EBITDA ownership expense

37

106

64

158

1

-

5

(8)

6

-

9

10

(9)

379

(379)

-

Income (loss) from consolidated entities attributable to noncontrolling interests

645

326

-

-

-

-

-

-

-

-

-

-

-

971

(971)

-

Hotel EBITDA including amounts attributable to noncontrolling interest

4,096

2,790

2,187

1,431

2,469

-

2,794

2,698

1,987

-

3,048

1,189

1,637

26,326

(4,035)

22,291

Less: EBITDA adjustments attributable to non-controlling interest

(379)

(372)

-

-

-

-

-

-

-

-

-

-

-

(751)

(388)

(1,139)

(Income) loss from consolidated entities attributable to noncontrolling interests

(645)

(326)

-

-

-

-

-

-

-

-

-

-

-

(971)

971

-

Net income (loss) attributable to redeemable noncontrolling interest in operating partnership

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(95)

(95)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Hotel EBITDA attributable to the Company and OP unitholders

$        3,072

$        2,092

$        2,187

$        1,431

$        2,469

$             -

$        2,794

$        2,698

$       1,987

$             -

$       3,048

$       1,189

$          1,637

$     24,604

$          (3,547)

$        21,057

Non-comparable adjustments

-

-

-

-

-

1,547

-

-

-

-

-

-

-

1,547

Comparable Hotel EBITDA

$        4,096

$        2,790

$        2,187

$        1,431

$        2,469

$        1,547

$        2,794

$        2,698

$       1,987

$             -

$       3,048

$       1,189

$          1,637

$     27,873

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 HOTEL EBITDA BY LOAN POOL 

 (in thousands) 

 (unaudited) 

GACC Sofitel - 1 hotel 

$            -

$             -

$        2,187

$            -

$             -

$             -

$             -

$             -

$           -

$             -

$           -

$           -

$               -

$       2,187

Credit Agricole Pier House - 1 hotel 

-

-

-

-

2,469

-

-

-

-

-

-

-

-

2,469

Column Financial Bardessono - 1 hotel 

-

-

-

1,431

-

-

-

-

-

-

-

-

-

1,431

Apollo Ritz-Carlton St Thomas - 1 hotel 

-

-

-

-

-

-

-

-

-

-

-

1,189

-

1,189

Aareal - 2 hotels 

4,096

2,790

-

-

-

-

-

-

-

-

-

-

-

6,886

Morgan Stanley Pool -5 hotels

-

-

-

-

-

-

2,794

2,698

1,987

-

3,048

-

1,637

12,164

JP Morgan Park Hyatt Beaver Creek -1 hotel

-

-

-

-

-

1,547

-

-

-

-

-

-

-

1,547

Total

$        4,096

$        2,790

$        2,187

$        1,431

$        2,469

$        1,547

$        2,794

$        2,698

$       1,987

$             -

$       3,048

$       1,189

$          1,637

$     27,873

NOTES:

(1)   The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at March 31, 2017, were owned  as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results

        from the hotel sold during the period.

(2)   All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Three months Ended September 30, 2016

Capital 

Hilton 

Washington 

D.C.

La Jolla 

Hilton 

Torrey 

Pines

Chicago 

Sofitel 

Magnificent 

Mile

Bardessono 

Hotel & Spa

Key West 

Pier House 

Resort

Park Hyatt 

Beaver 

Creek

Philadelphia 

Courtyard 

Downtown

Plano 

Marriott  

Legacy 

Town 

Center

San 

Francisco 

Courtyard  

Downtown

Seattle 

Courtyard  

Downtown

Seattle 

Marriott 

Waterfront

St. Thomas 

Ritz-Carlton 

Tampa 

Renaissance

Hotel Total

Corporate / 

Allocated

Ashford 

Hospitality 

Prime, Inc.

Net income (loss)

$        1,697

$        1,937

$        1,515

$        1,137

$           987

$             -

$        2,090

$        1,211

$       3,114

$      26,356

$       4,426

$     (1,488)

$              17

$     42,999

$         (21,677)

$        21,322

(Income) loss from consolidated entities 

attributable to noncontrolling interests

(457)

(508)

-

-

-

-

-

-

-

-

-

-

-

(965)

(1,539)

(2,504)

Net (income) loss attributable to redeemable 

noncontrolling interests in operating partnership

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(1,960)

(1,960)

Net income (loss) attributable to the Company

1,240

1,429

1,515

1,137

987

-

2,090

1,211

3,114

26,356

4,426

(1,488)

17

42,034

(25,176)

16,858

Non-property adjustments

-

-

-

-

-

-

-

-

-

(26,359)

-

1

-

(26,358)

26,358

-

Interest Income

-

-

-

-

-

-

(1)

(1)

(4)

-

(2)

(1)

-

(9)

(41)

(50)

Interest expense

-

-

572

-

-

-

499

-

-

-

-

584

-

1,655

7,373

9,028

Amortization of loan cost

-

-

-

-

-

-

8

-

-

-

-

125

-

133

634

767

Depreciation and amortization

1,586

1,504

931

605

678

-

1,467

1,055

673

-

952

778

946

11,175

-

11,175

Income tax expense (benefit)

-

71

-

-

-

-

13

-

-

-

-

(31)

-

53

(557)

(504)

Non-Hotel EBITDA ownership expense

(55)

13

8

174

11

-

5

8

24

(1)

10

139

(13)

323

(323)

-

Income (loss) from consolidated entities attributable 

to noncontrolling interests

457

508

-

-

-

-

-

-

-

-

-

-

-

965

(965)

-

Hotel EBITDA including amounts attributable to 

noncontrolling interest

3,228

3,525

3,026

1,916

1,676

-

4,081

2,273

3,807

(4)

5,386

107

950

29,971

7,303

37,274

Less: EBITDA adjustments attributable to non-

controlling interest

(372)

(352)

-

-

-

-

-

-

-

-

-

-

-

(724)

(407)

(1,131)

(Income) loss from consolidated entities attributable 

to noncontrolling interests

(457)

(508)

-

-

-

-

-

-

-

-

-

-

-

(965)

965

-

Net income (loss) attributable to redeemable 

noncontrolling interest in operating partnership

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1,960

1,960

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Hotel EBITDA attributable to the Company and 

OP unitholders

$        2,399

$        2,665

$        3,026

$        1,916

$        1,676

$             -

$        4,081

$        2,273

$       3,807

$             (4)

$       5,386

$         107

$             950

$     28,282

$            9,821

$        38,103

Non-comparable adjustments

-

-

-

-

1,654

-

-

-

4

-

-

-

1,658

Comparable Hotel EBITDA

$        3,228

$        3,525

$        3,026

$        1,916

$        1,676

$        1,654

$        4,081

$        2,273

$       3,807

$             -

$       5,386

$         107

$             950

$     31,629

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 HOTEL EBITDA BY LOAN POOL 

 (in thousands) 

 (unaudited) 

GACC Sofitel - 1 hotel 

$            -

$             -

$        3,026

$            -

$             -

$             -

$             -

$             -

$           -

$             -

$           -

$           -

$               -

$       3,026

Credit Agricole Pier House - 1 hotel 

-

-

-

-

1,676

-

-

-

-

-

-

-

-

1,676

Column Financial Bardessono - 1 hotel 

-

-

-

1,916

-

-

-

-

-

-

-

-

-

1,916

Apollo Ritz-Carlton St Thomas - 1 hotel 

-

-

-

-

-

-

-

-

-

-

-

107

-

107

Aareal - 2 hotels 

3,228

3,525

-

-

-

-

-

-

-

-

-

-

-

6,753

Morgan Stanley Pool -5 hotels

-

-

-

-

-

-

4,081

2,273

3,807

-

5,386

-

950

16,497

JP Morgan Park Hyatt Beaver Creek -1 hotel

-

-

-

-

-

1,654

-

-

-

-

-

-

-

1,654

Total

$        3,228

$        3,525

$        3,026

$        1,916

$        1,676

$        1,654

$        4,081

$        2,273

$       3,807

$             -

$       5,386

$         107

$             950

$     31,629

NOTES:

(1)   The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at March 31, 2017, were owned  as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results

        from the hotel sold during the period.

(2)   All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Three months Ended June 30, 2016

Capital 

Hilton 

Washington 

D.C.

La Jolla 

Hilton 

Torrey 

Pines

Chicago 

Sofitel 

Magnificent 

Mile

Bardessono 

Hotel & Spa

Key West 

Pier House 

Resort

Park Hyatt 

Beaver 

Creek

Philadelphia 

Courtyard 

Downtown

Plano 

Marriott  

Legacy 

Town 

Center

San 

Francisco 

Courtyard  

Downtown

Seattle 

Courtyard  

Downtown

Seattle 

Marriott 

Waterfront

St. Thomas 

Ritz-Carlton 

Tampa 

Renaissance

Hotel Total

Corporate / 

Allocated

Ashford 

Hospitality 

Prime, Inc.

Net income (loss)

$        4,822

$        1,755

$        2,435

$          760

$        1,738

$             -

$        1,784

$        2,017

$       2,871

$        1,642

$       3,565

$       1,094

$             521

$     25,004

$         (22,712)

$          2,292

(Income) loss from consolidated entities 

attributable to noncontrolling interests

(1,238)

(462)

-

-

-

-

-

-

-

-

-

-

-

(1,700)

1,780

80

Net (income) loss attributable to redeemable 

noncontrolling interests in operating partnership

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(184)

(184)

Net income (loss) attributable to the Company

3,584

1,293

2,435

760

1,738

-

1,784

2,017

2,871

1,642

3,565

1,094

521

23,304

(21,116)

2,188

Non-property adjustments

-

-

-

-

-

-

-

-

-

-

-

9

-

9

(9)

-

Interest Income

-

-

-

-

-

-

(1)

(1)

(4)

-

(2)

-

-

(8)

(42)

(50)

Interest expense

-

-

554

-

-

-

496

-

-

-

-

573

-

1,623

8,256

9,879

Amortization of loan cost

-

-

-

-

-

-

8

-

-

-

-

122

-

130

628

758

Depreciation and amortization

1,558

1,494

916

597

676

-

1,458

1,051

595

295

939

758

926

11,263

-

11,263

Income tax expense (benefit)

-

(85)

-

-

-

-

5

-

-

-

-

(12)

-

(92)

1,248

1,156

Non-Hotel EBITDA ownership expense

103

18

5

182

2

-

235

6

5

3

8

2

(13)

556

(556)

-

Income (loss) from consolidated entities 

attributable to noncontrolling interests

1,238

462

-

-

-

-

-

-

-

-

-

-

-

1,700

(1,700)

-

Hotel EBITDA including amounts attributable 

to noncontrolling interest

6,483

3,182

3,910

1,539

2,416

-

3,985

3,073

3,467

1,940

4,510

2,546

1,434

38,485

(13,291)

25,194

Less: EBITDA adjustments attributable to non-

controlling interest

(366)

(350)

-

-

-

-

-

-

-

-

-

-

-

(716)

(397)

(1,113)

(Income) loss from consolidated entities 

attributable to noncontrolling interests

(1,238)

(462)

-

-

-

-

-

-

-

-

-

-

-

(1,700)

1,700

-

Net income (loss) attributable to redeemable 

noncontrolling interest in operating partnership

-

-

-

-

-

-

-

-

-

-

-

-

-

-

184

184

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Hotel EBITDA attributable to the Company and 

OP unitholders

$        4,879

$        2,370

$        3,910

$        1,539

$        2,416

$             -

$        3,985

$        3,073

$       3,467

$        1,940

$       4,510

$       2,546

$          1,434

$     36,069

$         (11,804)

$        24,265

Non-comparable adjustments

-

-

-

-

(319)

-

-

-

(1,940)

-

-

-

(2,259)

Comparable Hotel EBITDA

$        6,483

$        3,182

$        3,910

$        1,539

$        2,416

$         (319)

$        3,985

$        3,073

$       3,467

$             -

$       4,510

$       2,546

$          1,434

$     36,226

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 HOTEL EBITDA BY LOAN POOL 

 (in thousands) 

 (unaudited) 

GACC Sofitel - 1 hotel 

$            -

$             -

$        3,910

$            -

$             -

$             -

$             -

$             -

$           -

$             -

$           -

$           -

$               -

$       3,910

Credit Agricole Pier House - 1 hotel 

-

-

-

-

2,416

-

-

-

-

-

-

-

-

2,416

Column Financial Bardessono - 1 hotel 

-

-

-

1,539

-

-

-

-

-

-

-

-

-

1,539

Apollo Ritz-Carlton St Thomas - 1 hotel 

-

-

-

-

-

-

-

-

-

-

-

2,546

-

2,546

Aareal - 2 hotels 

6,483

3,182

-

-

-

-

-

-

-

-

-

-

-

9,665

Morgan Stanley Pool -5 hotels

-

-

-

-

-

-

3,985

3,073

3,467

-

4,510

-

1,434

16,469

JP Morgan Park Hyatt Beaver Creek -1 hotel

-

-

-

-

-

(319)

-

-

-

-

-

-

-

(319)

Total

$        6,483

$        3,182

$        3,910

$        1,539

$        2,416

$         (319)

$        3,985

$        3,073

$       3,467

$             -

$       4,510

$       2,546

$          1,434

$     36,226

NOTES:

(1)   The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at March 31, 2017, were owned  as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results

        from the hotel sold during the period.

(2)   All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

 

Exhibit 1

ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Three months Ended March 31, 2016

Capital 

Hilton 

Washington 

D.C.

La Jolla 

Hilton 

Torrey 

Pines

Chicago 

Sofitel 

Magnificent 

Mile

Bardessono 

Hotel & Spa

Key West 

Pier House 

Resort

Park Hyatt 

Beaver 

Creek

Philadelphia 

Courtyard 

Downtown

Plano 

Marriott  

Legacy 

Town 

Center

San 

Francisco 

Courtyard  

Downtown

Seattle 

Courtyard  

Downtown

Seattle 

Marriott 

Waterfront

St. Thomas 

Ritz-Carlton 

Tampa 

Renaissance

Hotel Total

Corporate / 

Allocated

Ashford 

Hospitality 

Prime, Inc.

Net income (loss)

$        2,267

$        1,986

$       (2,770)

$         (618)

$        3,005

$             -

$         (258)

$        1,888

$       2,945

$           727

$       1,218

$       3,411

$          1,784

$     15,585

$         (15,724)

$           (139)

(Income) loss from consolidated entities 

attributable to noncontrolling interests

(600)

(520)

-

-

-

-

-

-

-

-

-

-

-

(1,120)

975

(145)

Net (income) loss attributable to redeemable 

noncontrolling interests in operating partnership

-

-

-

-

-

-

-

-

-

-

-

-

-

-

150

150

Net income (loss) attributable to the Company

1,667

1,466

(2,770)

(618)

3,005

-

(258)

1,888

2,945

727

1,218

3,411

1,784

14,465

(14,599)

(134)

Non-property adjustments

-

-

-

-

-

-

-

-

-

-

-

32

-

32

(32)

-

Interest Income

-

-

-

-

-

-

(1)

-

(4)

-

(2)

(1)

-

(8)

(24)

(32)

Interest expense

-

-

550

-

-

-

486

-

-

-

-

571

-

1,607

8,146

9,753

Amortization of loan cost

-

-

119

-

-

-

8

-

-

-

-

129

-

256

625

881

Depreciation and amortization

1,543

1,499

1,351

587

662

-

1,459

1,044

583

539

947

782

908

11,904

-

11,904

Income tax expense (benefit)

-

(74)

-

-

-

-

2

-

-

-

-

42

-

(30)

400

370

Non-Hotel EBITDA ownership expense

(195)

14

27

174

1

-

1

45

5

(38)

8

5

64

111

(111)

-

Income (loss) from consolidated entities 

attributable to noncontrolling interests

600

520

-

-

-

-

-

-

-

-

-

-

-

1,120

(1,120)

-

Hotel EBITDA including amounts attributable 

to noncontrolling interest

3,615

3,425

(723)

143

3,668

-

1,697

2,977

3,529

1,228

2,171

4,971

2,756

29,457

(6,715)

22,742

Less: EBITDA adjustments attributable to non-

controlling interest

(304)

(336)

-

-

-

-

-

-

-

-

-

-

-

(640)

(469)

(1,109)

(Income) loss from consolidated entities 

attributable to noncontrolling interests

(600)

(520)

-

-

-

-

-

-

-

-

-

-

-

(1,120)

1,120

-

Net income (loss) attributable to redeemable 

noncontrolling interest in operating partnership

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(150)

(150)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Hotel EBITDA attributable to the Company and 

OP unitholders

$        2,711

$        2,569

$         (723)

$          143

$        3,668

$             -

$        1,697

$        2,977

$       3,529

$        1,228

$       2,171

$       4,971

$          2,756

$     27,697

$          (6,214)

$        21,483

Non-comparable adjustments

-

-

-

-

6,847

-

-

-

(1,228)

-

-

-

5,619

Comparable Hotel EBITDA

$        3,615

$        3,425

$         (723)

$          143

$        3,668

$        6,847

$        1,697

$        2,977

$       3,529

$             -

$       2,171

$       4,971

$          2,756

$     35,076

ALL HOTELS NOT UNDER RENOVATION:

Hotel EBITDA including amounts attributable 

to noncontrolling interest

$        3,615

$        3,425

$             -

$          143

$        3,668

$             -

$             -

$             -

$           -

$        1,228

$       2,171

$       4,971

$          2,756

$     21,977

Non-comparable adjustments

-

-

-

-

-

6,847

-

-

-

(1,228)

-

-

-

5,619

Comparable Hotel EBITDA

$        3,615

$        3,425

$             -

$          143

$        3,668

$        6,847

$             -

$             -

$           -

$             -

$       2,171

$       4,971

$          2,756

$     27,596

 ASHFORD HOSPITALITY PRIME, INC. AND SUBSIDIARIES 

 HOTEL EBITDA BY LOAN POOL 

 (in thousands) 

 (unaudited) 

GACC Sofitel - 1 hotel 

$            -

$             -

$         (723)

$            -

$             -

$             -

$             -

$             -

$           -

$             -

$           -

$           -

$               -

$        (723)

Credit Agricole Pier House - 1 hotel 

-

-

-

-

3,668

-

-

-

-

-

-

-

-

3,668

Column Financial Bardessono - 1 hotel 

-

-

-

143

-

-

-

-

-

-

-

-

-

143

Apollo Ritz-Carlton St Thomas - 1 hotel 

-

-

-

-

-

-

-

-

-

-

-

4,971

-

4,971

Aareal - 2 hotels 

3,615

3,425

-

-

-

-

-

-

-

-

-

-

-

7,040

Morgan Stanley Pool -5 hotels

-

-

-

-

-

-

1,697

2,977

3,529

-

2,171

-

2,756

13,130

JP Morgan Park Hyatt Beaver Creek -1 hotel

-

-

-

-

-

6,847

-

-

-

-

-

-

-

6,847

Total

$        3,615

$        3,425

$         (723)

$          143

$        3,668

$        6,847

$        1,697

$        2,977

$       3,529

$             -

$       2,171

$       4,971

$          2,756

$     35,076

NOTES:

(1)   The above comparable information assumes the twelve hotel properties owned and included in the Company's operations at March 31, 2017, were owned  as of the beginning of each of the periods presented. Non-comparable adjustments include pre-acquisition results from the hotel acquired during the period offset by results

        from the hotel sold during the period.

(2)   All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

(3)   Excluded Hotels Under Renovation 

       Philadelphia Courtyard Downtown; Plano Marriott Legacy Town Center; San Francisco Courtyard Downtown; Chicago Sofitel Magnificent Mile



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