Innkeepers USA Trust Announces Fourth Quarter and Year 2004 Earnings; RevPAR Increases 9.5 Percent in Fourth Quarter.PALM BEACH, Fla. -- Innkeepers USA Trust (NYSE NYSE See: New York Stock Exchange : KPA), a hotel real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) and a leading owner of upscale extended-stay hotel properties throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , today announced results for the fourth quarter and the year 2004.
% Year Year %
4Q 2004* 4Q 2003* Change* 2004* 2003* Change*
----------------------------------------------------------------------
Net loss
applicable to
common
shareholders $(2,340) $(7,359) 68% $(1,138) $(18,144) 94%
----------------------------------------------------------------------
Diluted loss per
share $(0.06) $(0.20) 70% $(0.03) $(0.49) 94%
----------------------------------------------------------------------
Funds from
operations
(FFO) $5,796 $1,464 296% $31,418 $15,893 98%
----------------------------------------------------------------------
Adjusted FFO $5,867 $5,243 12% $34,631 $27,553 26%
----------------------------------------------------------------------
FFO per share $0.15 $0.04 275% $0.81 $0.41 98%
----------------------------------------------------------------------
Adjusted FFO per
share $0.15 $0.14 7% $0.89 $0.71 25%
----------------------------------------------------------------------
Earnings before
interest,
taxes,
depreciation
and
amortization
(EBITDA) $15,353 $10,078 52% $74,276 $50,152 48%
----------------------------------------------------------------------
Adjusted EBITDA $15,428 $13,857 11% $72,458 $61,869 17%
----------------------------------------------------------------------
*In thousands, except per share and percentage change data
FFO, Adjusted FFO, FFO per share, Adjusted FFO per share, EBITDA
and Adjusted EBITDA are not generally accepted accounting
principles (GAAP) financial measures and are discussed in further
detail on pages 6-7.
FFO and FFO per share for the year 2004 include $4,249,000 in
issuance costs pertaining to the Series A Cumulative Convertible
preferred shares that were redeemed in January 2004. The Series A
preferred share issuance costs have been excluded from Adjusted
FFO, Adjusted FFO per share, EBITDA and Adjusted EBITDA.
FFO, FFO per share and EBITDA for the fourth quarter 2003 includes
$10,249,000 in percentage lease revenue that was deferred for the
first, second and third quarters 2003. The deferred percentage
lease revenue is not recognized as revenue for the fourth quarter
2003 for Adjusted FFO, Adjusted FFO per share and Adjusted EBITDA.
Adjusted FFO, Adjusted FFO per share and Adjusted EBITDA exclude
other charges and discontinued operations.
Highlights In 2004, the company achieved a number of significant milestones: --Reported the first year of positive revenue per available room (RevPAR RevPAR A performance metric in the hotel industry which stands for "revenue per available room." RevPAR is typically calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. ) growth since the year 2000. --Completed the acquisition by its wholly owned taxable REIT subsidiaries Taxable REIT Subsidiaries (TRSs) allow real estate investment trusts (REITs) to more effectively compete with other real estate owners. They do this by providing services to tenants or third parties such as landscaping, cleaning or concierge, and they provide new (TRS See traffic engineering methods. TRS - term rewriting system ) of all its leases from its former lessees. --Doubled the amount of its quarterly common share dividend in the third quarter 2004. The company paid $0.18 in common share dividends for 2004, which included a $0.03 common share dividend for the first and second quarters and $0.06 for the third and fourth quarters 2004. --Completed an offering of new 8.0% Series C Cumulative Preferred Noun 1. cumulative preferred - preferred stock whose dividends if omitted accumulate until paid out cumulative preferred stock preference shares, preferred shares, preferred stock - stock whose holders are guaranteed priority in the payment of dividends but shares and used proceeds to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. its Series A 8.625% Cumulative Convertible Preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . --Continued to shed shed rural building used for agricultural pursuits. shed hands miscellaneous workers in a shearing shed at shearing time, i.e. persons other than the shearers, wool classers. non-strategic assets with the sale of a Residence Inn in Eden Prairie Eden Prairie A city of eastern Minnesota, a residential suburb of Minneapolis. Population: 57,300. , Minn., and a Hampton Hampton, part of Greater London, England Hampton, since 1965 part of the Greater London outer borough of Richmond upon Thames, SE England, on the Thames River. It is the site of Hampton Court Palace, which occupies about eight acres (3. Inn in Norcross Norcross can refer to any of the following: Places United States
--Completed the purchase of three hotel properties representing 544 rooms: the Homewood Homewood. 1 City (1990 pop. 22,922), Jefferson co., N central Ala., a residential suburb of Birmingham; inc. 1921. 2 Village (1990 pop. 19,278), Cook co., NE Ill., a residential suburb of Chicago; platted 1852, inc. 1892. Suites-Riverwalk/Downtown San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , the Four Points by Sheraton Four Points by Sheraton is Starwood Hotels & Resorts mid-market hotel brand, targeted towards business travelers and small conventions. Four Points was created by the former ITT Sheraton before Starwood acquired the firm in 1998. , Ft. Walton Beach, Fla., and a hotel property in downtown Louisville Downtown Louisville is the largest central business district in the state of Kentucky and the urban hub of the Louisville, Kentucky Metropolitan Area. Its boundaries are the Ohio River to the north, Hancock Street to the east, York and Jacob Streets to the south, and 9th Street to , Ky., to be converted to a Hampton Inn. --Acquired a site in Valencia Valencia, region, Spain Valencia (välān`thēä), autonomous region (1990 pop. 3,902,429) and former kingdom, E Spain, on the Mediterranean. It now comprises the provinces of Alicante, Castellón, and Valencia. , Calif., for $3.7 million, with plans to build a 157-suite Embassy Suites, which is projected to open in 2006. --Announced in December December: see month. the pending acquisition of three hotel properties, which closed in late December and January January: see month. 2005, comprising 387 rooms in downtown Downtown (called a "city centre" in British English) is a term used in North America when referring to a city's core, usually both in a geographical and commercial / community sense. Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C. (Doubletree dou·ble·tree n. A crossbar on a wagon or carriage to which two whiffletrees are attached for harnessing two animals abreast. Noun 1. Guest Suites), Columbia Columbia, cities, United States Columbia (kəlŭm`bēə). 1 City (1990 pop. 75,883), Howard co., central Md., between Washington, D.C., and Baltimore. , Md. (Hampton Inn) and Montvale Montvale may mean:
A court or courtyard is an enclosed area, often a space enclosed by a building that is open to the sky. ). --In January sold Residence Inns in Portland Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Ore. and Vancouver Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , Wash. --Spent $25 million on selected capital projects at its hotel properties. --Completed a new $135 million revolving unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. line of credit. --Maintained a low-levered balance sheet. Debt to investment in hotels at cost ratio is 30 percent at December 31, 2004. --The nearest term maturity on the company's outstanding debt is in 2007. Results RevPAR for the company's 66 comparable hotel properties increased 9.5 percent for the fourth quarter 2004 to $66.51. Occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy increased 3.3 percent to 70.2 percent, and average daily rate (ADR ADR - Astra Digital Radio ) increased 6.0 percent to $94.74 for the fourth quarter 2004. The RevPAR improvement of 9.5 percent for the fourth quarter 2004 reflects a 13.3 percent increase in RevPAR at the company's eight Silicon Valley, Calif., hotel properties primarily as a result of a continuing rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in the local economy and the beginning of the return of the business traveler Traveler (U.S. English) or Traveller (British English) may refer to:
RevPAR for the company's 66 comparable hotel properties improved 7.8 percent for the year 2004 to $70.54. Occupancy rose 4.2 percent to 73.9 percent, and ADR increased 3.5 percent to $95.42 for the year 2004. Adjusted FFO FFO See: Funds from operations per share and Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the fourth quarter 2004 was $0.15 and $15.4 million, respectively, compared to $0.14 and $13.9 million for the fourth quarter 2003 (see pages 6-7 for a further discussion regarding these financial measures). The Adjusted FFO per share of $0.15 increased $0.01 compared to the fourth quarter 2003 due to the 9.5 percent RevPAR increase being offset by a TRS net loss of $(2.7) million. The Adjusted FFO per share of $0.15 exceeded our Adjusted FFO per share guidance of $0.12 for the fourth quarter. 2005 Outlook "2004 was our first full-fledged full-fledged adj. 1. Having reached full development; mature. 2. Having full status or rank: a full-fledged lawyer. 3. Having fully developed adult plumage. Adj. 1. year of recovery and was an excellent year for Innkeepers," said Jeffrey H. Fisher fisher, name of a large North American marten, Martes pennanti. This carnivorous, largely arboreal mammal is found in hardwood forests of Canada, the extreme N United States, and mountain ranges of the W United States. , Innkeepers chief executive officer and president. "Particularly gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. at this stage were the RevPAR gains driven by ADR and occupancy. We believe we are in the early innings INNINGS, estates. Lands gained from the sea by draining. Cunn. L. Dict. h. t.; Law of Sewers, 31. of a well-entrenched recovery, and we are looking forward to a robust 2005 due to the positive market dynamics of low supply growth and rising demand. "The acquisition market also is strong, with buyers and sellers finally coming together as a result of higher confidence in future cash flows," he said. "We have closed on the three acquisitions we announced in December 2004, all in the Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. , which we believe has a strong long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth curve." Fisher noted that three hotels are closed and in the process of being rebranded and repositioned. "The Louisville Louisville (l  `ēvĭl), city (1990 pop. 269,063), seat of Jefferson co., NW Ky., at the Falls of the Ohio; inc. 1780. , Ky., Hampton
Inn, is scheduled to open in the second quarter 2005, and the Atlantic
City Atlantic City, city (1990 pop. 37,986), Atlantic co., SE N.J., an Atlantic resort and convention center; settled c.1790, inc. 1854. Situated on Absecon Island, a barrier island 10 mi (16. , N.J. Courtyard is expected to open in the fourth quarter 2005. In
January 2005, we acquired a hotel in Montvale, N.J., which is closed and
is in the process of being rebranded to a Courtyard, with an opening
expected in 2006."Our acquisition strategy remains the same, targeting premium brands in the upscale and upscale extended stay sectors and hotels with the potential to be rebranded and repositioned, in major markets with strong demand generators and high barriers to new competition. In addition, we continue to selectively pursue development opportunities with compelling economics, like our acquisition of the Valencia, Calif., site, where we plan to build an Embassy Suites. "Our disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of strategy involves possibly selling a few selected hotels that are deemed nonstrategic. "2005 appears to be a continuation continuation - continuation passing style of 2004, as rising demand improves our ability to move rate in the right direction. We are forecasting 6.0 percent RevPAR improvement for 2005. 2005 Guidance David Bulger Bul´ger n. 1. (Golf) A driver or a brassy with a convex face. , executive vice president, chief financial officer and treasurer TREASURER. An officer entrusted with the treasures or money either of a private individual, a corporation, a company, or a state. 2. It is his duty to use ordinary diligence in the performance of his office, and to account with those whose money he has. , said that, based upon the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. RevPAR forecast for the company's year 2005, forecasted financial results are as follows (in millions, except per share data):
1Q 2Q 3Q 4Q Year
2005 2005 2005 2005 2005
----------------------------------------------------------------------
RevPAR % increase 6.0% 6.0% 6.0% 6.0% 6.0%
----------------------------------------------------------------------
Net income applicable to
common shareholders $0 $6 $6 $0 $12
----------------------------------------------------------------------
Diluted income per share $0.00 $0.15 $0.15 $0.00 $0.30
----------------------------------------------------------------------
FFO $7 $14 $15 $8 $44
----------------------------------------------------------------------
Adjusted FFO $8 $14 $15 $8 $45
----------------------------------------------------------------------
FFO per share $0.17 $0.32 $0.34 $0.20 $1.03
----------------------------------------------------------------------
Adjusted FFO per share $0.20 $0.32 $0.34 $0.20 $1.06
----------------------------------------------------------------------
EBITDA $17 $24 $25 $18 $84
----------------------------------------------------------------------
Adjusted EBITDA $17 $24 $25 $18 $84
----------------------------------------------------------------------
The TRS is projected to be breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations in year 2005, which includes $1.1 million for the amortization of deferred franchise conversion costs and $0.5 million for the amortization of lease acquisition cost, compared to the TRS net loss of $(4.6) million for the year 2004. The TRS on a comparable basis with the year 2004 has a projected year 2005 hotel gross margin of 77 percent and hotel gross operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. percentage of 43 percent, as compared to 76 and 42 percent, respectively, for the year 2004. The company has budgeted $17 million for selected capital projects at its hotel properties (excludes year 2005 acquisitions, developments and in-progress rebranding Rebranding is the process by which a product or service developed with one brand or company or product line affiliation is marketed or distributed with a different identity. projects). The company's assumptions for its year 2005 guidance includes the recently completed 4.4 million common share offering on February February: see month. 16, with the use of proceeds from the offering paying down a portion of the outstanding balance on the unsecured line of credit, and does not include the effects of any additional sales, acquisitions or developments of new hotels or other capital transactions, except as previously noted. The 4.4 million common share offering, which is expected to close today, is $0.06 dilutive to the year 2005 Adjusted FFO per share, assuming the use of proceeds from the offering are not reinvested into acquisitions. The company intends to pay the regular quarterly dividend on the Series C Cumulative Preferred shares. The common share dividend will be evaluated on a quarterly basis for the year 2005, with the first quarter 2005 common share dividend approved at $0.06. Innkeepers USA Trust is a hotel real estate investment trust (REIT) and a leading owner of upscale extended-stay hotel properties throughout the United States. The company owns 69 hotels with a total of 8,725 suites or rooms in 20 states and Washington, D.C., and focuses on acquiring and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. developing upscale and upscale extended-stay hotels with premium brands and the rebranding and repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of other hotel properties. For more information about Innkeepers USA Trust, visit the company's web site at www.innkeepersusa.com. To listen to a web cast of the company's fourth quarter 2004 and year 2004 conference call on February 22, 2005, at 2 p.m. Eastern time, go to the web site and click on Conference Calls. Interested parties may listen to an archived web cast of the conference call on the web site, or may dial (800) 405-2236, pass code 11024060, to hear a telephone replay. The archived web cast and telephone replay will be available through Tuesday Tuesday: see week. , March 1, 2005. Included in this press release are certain non-GAAP financial measures within the meaning of Securities and Exchange Commission (SEC) rules and regulations that are different from measures calculated and presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). (generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ). These non-GAAP financial measures are (i) funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. (FFO), (ii) FFO per share, (iii) Adjusted FFO, (iv) Adjusted FFO per share and (v) net income (loss) (computed in accordance with GAAP) before interest, taxes, depreciation and amortization, common and preferred minority interests and preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) (EBITDA) and Adjusted EBITDA. The following explains why we believe these measures help provide investors with a more complete understanding of our financial and operating performance. FFO As Defined by NAREIT NAREIT National Association of Real Estate Investment Trusts and Adjusted FFO The National Association of Real Estate Investment Trusts (NAREIT) adopted the definition of FFO in order to promote an industry standard measure of REIT financial and operating performance. Management believes that the presentation of FFO and Adjusted FFO (defined below) provides useful supplemental information to investors regarding the company's financial condition and results of operations, particularly in reference to the company's ability to service debt, fund capital expenditures and pay cash dividends. Many other real estate companies use FFO as a measure of their financial and operating performance, which provides another basis of comparison for management. FFO, as defined, adds back historical cost depreciation. Historical cost depreciation assumes the value of real estate assets diminishes predictably over a certain period of time. In fact, real estate asset values historically have increased or decreased with market conditions. Consequently, FFO and Adjusted FFO may be useful supplemental measures in evaluating financial and operating performance by disregarding dis·re·gard tr.v. dis·re·gard·ed, dis·re·gard·ing, dis·re·gards 1. To pay no attention or heed to; ignore. 2. To treat without proper respect or attentiveness. n. , or adding back, historical cost depreciation in the calculation of FFO and Adjusted FFO. Additionally, FFO per share and Adjusted FFO per share targets have historically been used to determine a significant portion of the incentive compensation of the company's senior management. NAREIT defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (losses) from sales of property, plus real estate depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. The company calculates FFO in compliance with the NAREIT definition. The company defines Adjusted FFO as FFO (as defined by NAREIT), adjusted for non-recurring and/or non-cash items, including discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. losses. FFO is reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. to net income (loss) applicable to common shareholders determined in accordance with GAAP on page 11. EBITDA and Adjusted EBITDA EBITDA is defined as net income (loss) (computed in accordance with GAAP) before interest, taxes, depreciation and amortization, common and preferred minority interests and preferred dividends. The company defines Adjusted EBITDA as EBITDA adjusted for non-recurring and/or non-cash items, including gains (losses) from sales of property, discontinued operations and impairment losses. Management believes that the presentation of EBITDA and Adjusted EBITDA provides useful supplemental information to investors regarding the company's financial condition and results of operations, particularly in reference to the company's ability to service debt, fund capital expenditures and pay cash dividends. EBITDA and Adjusted EBITDA are also factors in management's evaluation of the financial and operating performance of the company, hotel level performance, investment opportunities, dispositions and financing transactions. FFO, FFO per share, Adjusted FFO, Adjusted FFO per share, EBITDA and Adjusted EBITDA, as presented, may not be comparable to FFO, FFO per share, Adjusted FFO, Adjusted FFO per share, EBITDA and Adjusted EBITDA as calculated by other real estate companies. These measures do not reflect certain expenses that the company incurred and will incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. , such as depreciation and interest (although we show such expenses in the reconciliation of these measures to their most directly comparable GAAP measures). None of these measures should be considered as an alternative to net income, cash flow provided by operating activities, or any other financial and operating performance measure prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). by GAAP. These measures should only be used in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with GAAP measures. EBITDA is reconciled to net income (loss) applicable to common shareholders determined in accordance with GAAP on page 11. Cautionary statements set forth in reports filed by the company from time to time with the SEC discuss important factors impacting, or that could impact, the company and its results or forecasted results. These factors include, without limitation, (i) direct exposure to the operational risks of the hotel business (including decreasing hotel revenues and increasing hotel expenses) under the company's taxable REIT subsidiary structure, (ii) risk that war, terrorism terrorism, the threat or use of violence, often against the civilian population, to achieve political or social ends, to intimidate opponents, or to publicize grievances. or similar activities, widespread health alerts, disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. in oil imports or higher oil prices or changes in domestic or international political environments negatively affect the travel industry and the company, (iii) risk that the performance and prospects of businesses and industries that are important hotel demand generators in the company's key markets decline (e.g., technology, automotive, aerospace), (iv) risk that international, national, regional and/or local economic conditions will, among other things, negatively affect demand for the company's hotel rooms and the availability and terms of financing, (v) risk that the company's ability to maintain its properties in competitive condition becomes prohibitively pro·hib·i·tive also pro·hib·i·to·ry adj. 1. Prohibiting; forbidding: took prohibitive measures. 2. expensive, (vi) risk that pricing in the hotel acquisition market becomes prohibitively expensive or non-financeable and that potential acquisitions or developments do not perform in accordance with expectations, (vii) changes in travel patterns or the prevailing means of commerce (i.e., e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. ), (viii) the complex tax rules that the company must satisfy to qualify as a REIT, and (ix) governmental regulation that may increase the company's cost of doing business or otherwise negatively effect its business or its attractiveness as an investment and create risk of liability for non-compliance (e.g., changes in laws affecting taxes or dividends, compliance with the Americans with Disabilities Act Americans with Disabilities Act, U.S. civil-rights law, enacted 1990, that forbids discrimination of various sorts against persons with physical or mental handicaps. , workers compensation law changes, the Sarbanes-Oxley law, etc.).
INNKEEPERS USA TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except share and per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
----------------------- -----------------------
Revenue:
----------------------- -----------------------
Hotel Operating
--------------- ----------------------- -----------------------
Rooms $48,513 $4,907 $192,260 $6,588
----------------------- -----------------------
Food and beverage 269 0 1,061 0
----------------------- -----------------------
Telephone 414 69 1,769 75
----------------------- -----------------------
Other 1,243 124 4,544 176
----------------------- -----------------------
Corporate
--------- ----------------------- -----------------------
Percentage lease(1) 0 26,746 5,010 76,624
----------------------- -----------------------
Other 80 98 385 366
----------------------- -----------------------
Total revenue $50,519 $31,944 $205,029 $83,829
----------------------- -----------------------
Expenses:
----------------------- -----------------------
Hotel Operating
--------------- ----------------------- -----------------------
Rooms $11,681 $1,360 $43,253 $1,729
----------------------- -----------------------
Food and beverage 218 0 1,020 0
----------------------- -----------------------
Telephone 777 70 2,571 86
----------------------- -----------------------
Other 602 53 2,036 68
----------------------- -----------------------
General and
administrative 5,171 614 18,509 792
----------------------- -----------------------
Franchise and
marketing fees 3,322 378 13,305 507
----------------------- -----------------------
Amortization of
deferred franchise
conversion 274 34 1,047 34
----------------------- -----------------------
Advertising and
promotions 1,759 233 6,618 286
----------------------- -----------------------
Utilities 2,405 337 9,290 426
----------------------- -----------------------
Repairs and
maintenance 3,013 316 10,771 382
----------------------- -----------------------
Management fees 1,618 210 6,382 343
----------------------- -----------------------
Amortization of
deferred lease
acquisition 131 32 512 32
----------------------- -----------------------
Insurance 398 44 1,543 53
----------------------- -----------------------
Corporate
--------- ----------------------- -----------------------
Depreciation 8,202 8,285 31,806 31,907
----------------------- -----------------------
Amortization of
franchise fees 15 14 53 54
----------------------- -----------------------
Ground rent 130 128 505 504
----------------------- -----------------------
Interest 4,744 4,329 18,553 17,422
----------------------- -----------------------
Amortization of
loan origination
fees 235 269 953 1,076
----------------------- -----------------------
Property taxes and
insurance 2,695 2,805 11,355 11,623
----------------------- -----------------------
General and
administrative 1,302 1,290 5,413 5,161
----------------------- -----------------------
Amortization of
unearned
compensation(2) 194 373 948 1,443
----------------------- -----------------------
Other charges(3) 0 (332) 875 1,224
----------------------- -----------------------
Total expenses $48,886 $20,842 $187,318 $75,152
----------------------- -----------------------
----------------------- -----------------------
Income before
minority interest $1,633 $11,102 $17,711 $8,677
----------------------- -----------------------
Minority interest,
common 70 228 32 563
----------------------- -----------------------
Minority interest,
preferred (1,068) (1,068) (4,272) (4,272)
----------------------- -----------------------
Income from
continuing
operations $635 $10,262 $13,471 $4,968
----------------------- -----------------------
-----------------------------------------------
Discontinued
operations(4) (75) (15,126) 1,129 (13,129)
-----------------------------------------------
Net income (loss) $560 ($4,864) $14,600 ($8,161)
----------------------- -----------------------
----------------------- -----------------------
Series A preferred
share issuance
costs(5) 0 0 (4,249) 0
----------------------- -----------------------
Preferred share
dividends (2,900) (2,495) (11,489) (9,983)
-----------------------------------------------
Net loss applicable
to common
shareholders ($2,340) ($7,359) ($1,138) ($18,144)
----------------------- -----------------------
----------------------- -----------------------
Diluted loss per
share ($0.06) ($0.20) ($0.03) ($0.49)
----------------------- -----------------------
Weighted average
number of common -----------------------------------------------
shares 37,774,527 37,268,311 37,576,641 37,357,033
-----------------------------------------------
(1) Percentage lease revenue was recognized on leases with entities
other than the TRSs
(2) Amortization of unearned compensation for the year 2004 includes
$101,000 of restricted common share grants that vested on an
accelerated basis upon separation of employment of a former officer.
(3) Other charges for the year 2004 include $392,000 in severance
costs to a former officer, a $250,000 reimbursement to Innkeepers
Hospitality Management, Inc. (IHM) for expenses incurred for the
transition of 17 hotel properties managed by affiliates of Marriott
International, Inc. to IHM management and $233,000 of TRS transaction
costs. Other charges in 2003 include TRS transaction costs and a
litigation settlement.
(4) Discontinued operations for the year 2004 includes two hotel
properties sold in January 2004 and July 2004, respectively, and
three hotel properties that were held for sale at December 31, 2004.
The operations of the five hotel properties have been recognized and
categorized as discontinued operations. Discontinued operations for
the year 2004 also includes a $626,000 impairment loss relating to
two of the three hotel properties held for sale at December 31, 2004.
Discontinued operations for the year 2003, in addition to the five
hotel properties noted above, also include another hotel property
that was sold in September 2003. The operations of the six hotel
properties have been recognized and categorized as discontinued
operations. Discontinued operations for the year 2003 also includes
a $15,243,000 impairment loss relating to the hotel property sold in
July 2004 and two of the three hotel properties held for sale at
December 31, 2004.
(5) Issuance costs pertaining to the Series A Cumulative Convertible
Preferred shares that were redeemed in January 2004.
INNKEEPERS USA TRUST
CALCULATION OF FFO, EBITDA AND RECONCILIATION TO NET LOSS (UNAUDITED)
(in thousands, except share and per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
----------------------- -----------------------
CALCULATION OF FFO
----------------------- -----------------------
Net loss applicable
to common
shareholders ($2,340) ($7,359) ($1,138) ($18,144)
----------------------- -----------------------
Depreciation 8,202 8,285 31,806 31,907
----------------------- -----------------------
Depreciation included
in discontinued
operations 0 766 1,564 2,636
----------------------- -----------------------
Loss (Gain) on sale
of hotels included
in discontinued
operations 4 0 (782) 57
----------------------- -----------------------
Minority interest,
common (70) (228) (32) (563)
----------------------- -----------------------
Minority interest,
preferred
----------------------- -----------------------
FFO $5,796 $1,464 $31,418 $15,893
----------------------- -----------------------
Weighted average number
of common shares and ----------------------- -----------------------
common share
equivalents 39,196,016 38,632,431 39,013,311 38,630,167
-----------------------------------------------
FFO per share $0.15 $0.04 $0.81 $0.41
-----------------------------------------------
----------------------- -----------------------
FFO $5,796 $1,464 $31,418 $15,893
----------------------- -----------------------
Series A preferred
share issuance costs 0 0 4,249 0
----------------------- -----------------------
Other charges 0 (332) 875 1,224
----------------------- -----------------------
Discontinued
operations (555) (883) (2,537) (4,807)
----------------------- -----------------------
Loss on hotels
classified as held -----------------------------------------------
for sale included in
discontinued
operations 626 15,243 626 15,243
-----------------------------------------------
Deferred percentage
lease revenue 0 (10,249) 0 0
----------------------- -----------------------
Adjusted FFO $5,867 $5,243 $34,631 $27,553
----------------------- -----------------------
Adjusted FFO per share $0.15 $0.14 $0.89 $0.71
----------------------- -----------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
----------------------- -----------------------
CALCULATION OF EBITDA
----------------------- -----------------------
Net loss applicable
to common
shareholders ($2,340) ($7,359) ($1,138) ($18,144)
----------------------- -----------------------
Interest 4,744 4,329 18,553 17,422
----------------------- -----------------------
Depreciation and
amortization 9,051 9,007 35,319 34,546
----------------------- -----------------------
Depreciation
included in
discontinued
operations 0 766 1,564 2,636
-----------------------------------------------
Minority interest,
common (70) (228) (32) (563)
-----------------------------------------------
Minority interest,
preferred 1,068 1,068 4,272 4,272
-----------------------------------------------
Series A preferred
share issuance
costs 0 0 4,249 0
-----------------------------------------------
Preferred share
dividends 2,900 2,495 11,489 9,983
----------------------- -----------------------
EBITDA $15,353 $10,078 $74,276 $50,152
----------------------- -----------------------
Other charges 0 (332) 875 1,224
----------------------- -----------------------
Discontinued
operations (555) (883) (2,537) (4,807)
----------------------- -----------------------
Loss (Gain) on sale
of hotels included
in discontinued
operations 4 0 (782) 57
----------------------- -----------------------
Loss on hotels
classified as held ----------------------- -----------------------
for sale included
in discontinued
operations 626 15,243 626 15,243
----------------------- -----------------------
Deferred percentage
lease revenue 0 (10,249) 0 0
----------------------- -----------------------
Adjusted EBITDA $15,428 $13,857 $72,458 $61,869
----------------------- -----------------------
INNKEEPERS USA TRUST
RECONCILIATION OF FFO AND
EBITDA TO NET INCOME (UNAUDITED)
(2005 GUIDANCE)
(in thousands, except per share data)
Twelve Months Ended
December 31,
2005
-------------------
CALCULATION OF FFO
-------------------
Net income applicable to common shareholders $12,000
-------------------
Depreciation 33,000
-------------------
Gain on sale of hotel included in discontinued
operations (1,000)
-------------------
FFO $44,000
-------------------
Loss on extinguishment of debt 1,000
-------------------
Adjusted FFO $45,000
-------------------
Weighted average number of common shares
-------------------
and common share equivalents 42,500
-------------------
FFO per share $1.03
-------------------
Adjusted FFO per share $1.06
-------------------
Twelve Months Ended
December 31,
2005
-------------------
CALCULATION OF EBITDA
-------------------
Net income applicable to common shareholders $12,000
-------------------
Interest 20,000
-------------------
Depreciation and amortization 35,600
-------------------
Minority interest, common 400
-------------------
Minority interest, preferred 4,000
-------------------
Preferred share dividends 12,000
-------------------
EBITDA $84,000
-------------------
Gain on sale of hotel included in discontinued
operations (1,000)
-------------------
Loss on extinguishment of debt 1,000
-------------------
Adjusted EBITDA $84,000
-------------------
INNKEEPERS USA TRUST
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share data)
December 31, December 31,
2004 2003
-------------------------
ASSETS
Investment in hotel properties:
-------------------------
Land and improvements $127,392 $102,823
-------------------------
Building and improvements 687,754 654,848
-------------------------
Furniture and equipment 101,909 92,206
-------------------------
Renovations in process 2,794 3,160
-------------------------
Hotels under development 3,864 0
-------------------------
Hotels held for sale 19,299 2,979
-------------------------
943,012 856,016
-------------------------
Accumulated depreciation (207,853) (189,156)
-------------------------
Net investment in hotel properties 735,159 666,860
-------------------------
-------------------------
Cash and cash equivalents 22,837 9,586
-------------------------
Restricted cash and cash equivalents 10,781 7,586
-------------------------
Accounts receivable 4,577 8,091
-------------------------
Prepaids and inventory 2,539 1,794
-------------------------
Deferred and other 20,099 12,823
-------------------------
Total assets $795,992 $706,740
-------------------------
-------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
-------------------------
Debt $286,865 $232,174
-------------------------
Accounts payable and accrued expenses 12,663 8,982
-------------------------
Payable to manager 209 811
-------------------------
Franchise conversion fee obligations 10,825 5,249
-------------------------
Distributions payable 5,450 3,977
-------------------------
Minority interest in Partnership 51,088 51,689
-------------------------
Total liabilities 367,100 302,882
-------------------------
-------------------------
Shareholders' equity:
-------------------------
Preferred shares, $0.01 par value, 145,000 115,750
20,000,000 shares authorized, 5,800,000 -------------------------
and 4,630,000 shares issued and
outstanding, respectively -------------------------
-------------------------
Common shares, $0.01 par value, 380 376
100,000,000 shares authorized, 37,563,499 -------------------------
and 37,966,756 issued and outstanding,
respectively -------------------------
-------------------------
Additional paid-in capital 396,631 393,349
-------------------------
Unearned compensation (448) (897)
-------------------------
Distributions in excess of earnings (112,671) (104,720)
-------------------------
Total shareholders' equity 428,892 403,858
-------------------------
Total liabilities and shareholders'
equity $795,992 $706,740
-------------------------
INNKEEPERS USA TRUST
DEBT COMPOSITION (UNAUDITED)
As of December 31, 2004
(outstanding balance in thousands)
Stated
Outstanding Interest Maturity Encumbered
DEBT Balance Rate Date Properties
----------------------------------------------------------------------
---------------------------------------------
Unsecured Line of July 2007
Credit(1) $60,000 3.82% -
---------------------------------------------
Industrial Revenue December 2014
Bonds(1) $10,000 3.00% -
---------------------------------------------
Term Loan #1 $24,000 8.17% October 2007 8
---------------------------------------------
Term Loan #2 $36,000 8.15% March 2009 8
---------------------------------------------
Term Loan #3 $36,000 7.02% April 2010 8
---------------------------------------------
Term Loan #4 $56,000 7.16% October 2009 8
---------------------------------------------
Term Loan #5 $50,000 7.75% January 2011 6
---------------------------------------------
Mortgage $13,000 10.35% June 2010 1
---------------------------------------------
Adjustment(2) $2,000 - - -
---------------------------------------------
TOTAL $287,000 6.8%(3) 5 years(4) 39
---------------------------------------------
(1) Variable rated debt. The stated interest rate of the industrial
revenue bonds includes an annual letter of credit fee of 1.25%
(2) Adjustment to record $13 million mortgage at a fair market
interest rate of 7% (the stated interest rate is 10.35%)
(3) Weighted average calculated using the stated interest rate
(4) Weighted average
maturity
INNKEEPERS USA TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Twelve Months Ended
December 31,
2004 2003
--------------------
--------------------
Cash flows from operating activities:
--------------------
Net income (loss) $14,600 ($8,161)
--------------------
Adjustments to reconcile net income (loss) to
net cash provided by operating activities: --------------------
--------------------
Depreciation and amortization 36,883 37,182
--------------------
Minority interests 4,240 3,709
--------------------
Loss on hotels classified as held for sale
included in discontinued operations 626 15,243
--------------------
Loss (Gain) on sale of hotels included in
discontinued operations (782) 57
--------------------
Changes in operating assets and liabilities:
--------------------
Accounts receivable 3,514 693
--------------------
Prepaids and inventory (745) 323
--------------------
Accounts payable and accrued expenses 3,681 1,282
--------------------
Payable to manager (602) 811
--------------------
Net cash provided by operating activities $61,415 $51,139
--------------------
--------------------
Cash flows from investing activities:
--------------------
Investment in hotel properties ($110,194) ($35,663)
--------------------
Deposit for acquisition of hotel properties (1,784) 0
--------------------
Proceeds from sale of hotels 8,727 1,990
--------------------
Net withdrawals (deposits) into restricted cash
and cash equivalents (3,195) 6,565
--------------------
Lease acquisition (1,336) (3,895)
--------------------
Payment of franchise fees (272) (10)
--------------------
Repayment of advances 325 0
--------------------
Net cash used in investing activities ($107,729) ($31,013)
--------------------
--------------------
Cash flows from financing activities:
--------------------
Proceeds from debt issuance $85,574 $0
--------------------
Payments on debt (30,883) (4,556)
--------------------
Payments on franchise conversion obligations (120) 0
--------------------
Distributions paid to unit holders (4,442) (4,624)
--------------------
Distributions paid to shareholders (16,862) (21,241)
--------------------
Redemption of shares and units (115,730) (1,055)
--------------------
Proceeds from issuance of common and preferred
shares 143,155 (153)
--------------------
Loan origination fees and costs paid (1,127) (278)
--------------------
Net cash provided (used) by financing
activities $59,565 ($31,907)
--------------------
--------------------
Net increase (decrease) in cash and cash
equivalents $13,251 ($11,781)
--------------------
Cash and cash equivalents at beginning of period 9,586 21,367
--------------------
Cash and cash equivalents at end of period $22,837 $9,586
--------------------
Supplemental cash flow information:
--------------------
Interest paid $18,146 $17,454
--------------------
INNKEEPERS USA TRUST
OTHER DATA (UNAUDITED)
(in thousands, except shares data)
December 31, December 31,
2004 2003
-------------------------
CAPITALIZATION
-------------------------
Common share market capitalization $539,000 $314,000
-------------------------
Market capitalization $1,042,000 $704,000
-------------------------
Common share closing price $14.20 $8.37
-------------------------
Common share dividend(1) $0.18 $0.17
-------------------------
Common share dividend yield(1) 1.3% 2.0%
-------------------------
Preferred share closing price $25.75 $25.20
-------------------------
Preferred share dividend(2) $2.04 $2.11
-------------------------
Preferred share dividend yield(2) 7.9% 8.4%
-------------------------
DEBT COVERAGE
-------------------------
Debt weighted average interest rate 6.8% 7.5%
-------------------------
Debt to investment in hotel properties 30% 27%
-------------------------
Debt and preferred shares to investment
in hotel properties 46% 41%
-------------------------
Debt to market capitalization 28% 33%
-------------------------
Debt and preferred shares to market
capitalization 41% 49%
-------------------------
LIQUIDITY/FLEXIBILITY
-------------------------
Debt Due 2004 - $5,000
-------------------------
Debt Due 2005 $6,000 $6,000
-------------------------
Debt Due 2006 $7,000 $7,000
-------------------------
Debt Due 2007 and thereafter $274,000 $214,000
-------------------------
-------------------------
Unencumbered hotel assets(3) 43% 42%
-------------------------
Unsecured Line of Credit Outstanding
Balance $60,000 $0
-------------------------
Unsecured Line of Credit Available
Balance(4) $65,000 $125,000
-------------------------
SHARES AND UNITS OUTSTANDING
-------------------------
Common Shares 37,966,756 37,563,499
-------------------------
Common Partnership Units 1,117,056 1,167,236
-------------------------
Preferred Partnership Units 3,884,469 3,884,469
-------------------------
Preferred Shares(5) 5,800,000 6,857,493
-------------------------
(1) Regular common share dividends declared for the year 2004 and
regular and special common share dividends declared for the year 2003
(2) Regular preferred share dividends declared for the years 2004 and
2003
(3) Based upon the number of hotels
(4) The actual amount that may be borrowed is contingent upon many
factors, such as compliance with unsecured line of credit covenants
and the use of proceeds from borrowings. The $135 million revolving
unsecured line of credit available balance has been reduced by a $10
million letter of credit.
(5) December 31, 2004 includes Series C Cumulative preferred shares
issued in January 2004 that are not convertible into common shares.
December 31, 2003 includes Series A Cumulative convertible preferred
shares which were redeemed in January 2004 and assumes the conversion
of these preferred shares into common shares.
INNKEEPERS USA TRUST
HOTEL OPERATING RESULTS (UNAUDITED)
Three Months Ended
December 31,
December 31, % Inc
2004 2004 2003 (dec)
-----------------------------------------
PORTFOLIO(1)
----------------------------- -----------------------------
Average Daily Rate $94.74 $89.35 6.03%
-----------------------------
Occupancy 70.20% 67.97% 3.28%
-----------------------------
RevPAR $66.51 $60.73 9.52%
-----------------------------
------------
Number of hotel properties 66
------------
Percent of total rooms 100.0%
------------
Percent of room revenue(2) 100.0%
------------
BY SEGMENT
-----------------------------
Upscale Extended Stay
-----------------------------
Average Daily Rate $97.37 $92.06 5.77%
-----------------------------
Occupancy 72.94% 70.89% 2.89%
-----------------------------
RevPAR $71.02 $65.26 8.83%
-----------------------------
------------
Number of hotel properties 51
------------
Percent of total rooms 75.3%
------------
Percent of room revenue(2) 80.8%
------------
Upscale(1)
-----------------------------
Average Daily Rate $86.88 $75.25 15.46%
-----------------------------
Occupancy 57.19% 67.56% -15.35%
-----------------------------
RevPAR $49.69 $50.84 -2.26%
-----------------------------
------------
Number of hotel properties 2
------------
Percent of total rooms 4.3%
------------
Percent of room revenue(2) 3.3%
------------
Mid Priced(1)
-----------------------------
Average Daily Rate $85.00 $80.52 5.56%
-----------------------------
Occupancy 62.84% 57.32% 9.63%
-----------------------------
RevPAR $53.41 $46.15 15.73%
-----------------------------
------------
Number of hotel properties 13
------------
Percent of total rooms 20.4%
------------
Percent of room revenue(2) 15.9%
------------
BY FRANCHISE AFFILIATION
-----------------------------
Residence Inn
-----------------------------
Average Daily Rate $97.38 $92.20 5.62%
-----------------------------
Occupancy 71.97% 69.27% 3.90%
-----------------------------
RevPAR $70.08 $63.86 9.74%
-----------------------------
------------
Number of hotel properties 44
------------
Percent of total rooms 64.4%
------------
Percent of room revenue(2) 69.1%
------------
Three Months Ended
December 31,
December 31, % Inc
2004 2004 2003 (dec)
-----------------------------------------
Summerfield Suites
-----------------------------
Average Daily Rate $92.64 $87.56 5.80%
-----------------------------
Occupancy 79.51% 80.76% -1.55%
-----------------------------
RevPAR $73.66 $70.72 4.16%
-----------------------------
------------
Number of hotel properties 6
------------
Percent of total rooms 9.1%
------------
Percent of room revenue(2) 10.2%
------------
Hampton Inn(1)
-----------------------------
Average Daily Rate $87.10 $81.13 7.36%
-----------------------------
Occupancy 63.79% 57.96% 10.06%
-----------------------------
RevPAR $55.56 $47.03 18.14%
-----------------------------
------------
Number of hotel properties 11
------------
Percent of total rooms 16.8%
------------
Percent of room revenue(2) 13.6%
------------
BY MANAGEMENT COMPANY
-----------------------------
Innkeepers Hospitality Management(1)(3)
-----------------------------
Average Daily Rate $94.90 $89.68 5.82%
-----------------------------
Occupancy 70.77% 68.06% 3.98%
-----------------------------
RevPAR $67.16 $61.04 10.03%
-----------------------------
------------
Number of hotel properties 65
------------
Percent of total rooms 97.4%
------------
Percent of room revenue(2) 98.2%
------------
Third Party Managed
-----------------------------
Average Daily Rate $86.10 $76.50 12.55%
-----------------------------
Occupancy 49.24% 64.78% -23.99%
-----------------------------
RevPAR $42.40 $49.56 -14.45%
-----------------------------
------------
Number of hotel properties 1
------------
Percent of total rooms 2.6%
------------
Percent of room revenue(2) 1.8%
------------
Three Months Ended
December 31,
December 31, % Inc
2004 2004 2003 (dec)
-----------------------------------------
BY GEOGRAPHIC REGION
-----------------------------
New England
(ME, NH, VT, MA, CT, RI)
-----------------------------
Average Daily Rate $89.47 $90.12 -0.72%
-----------------------------
Occupancy 65.77% 57.98% 13.44%
-----------------------------
RevPAR $58.85 $52.25 12.63%
-----------------------------
------------
Number of hotel properties 5
------------
Percent of total rooms 7.0%
------------
Percent of room revenue(2) 5.9%
------------
Middle Atlantic(1)
(NY, NJ, PA)
-----------------------------
Average Daily Rate $101.81 $97.00 4.96%
-----------------------------
Occupancy 70.38% 69.80% 0.83%
-----------------------------
RevPAR $71.66 $67.71 5.83%
-----------------------------
------------
Number of hotel properties 10
------------
Percent of total rooms 13.7%
------------
Percent of room revenue(2) 15.1%
------------
South Atlantic(1)
(DE, MD, WV, DC, VA, NC, SC,
GA, FL)
-----------------------------
Average Daily Rate $91.82 $83.17 10.40%
-----------------------------
Occupancy 69.72% 66.87% 4.26%
-----------------------------
RevPAR $64.01 $55.62 15.08%
-----------------------------
------------
Number of hotel properties 13
------------
Percent of total rooms 20.9%
------------
Percent of room revenue(2) 19.9%
------------
East North Central (OH, MI,
IN, IL, WI)
-----------------------------
Average Daily Rate $88.00 $83.59 5.28%
-----------------------------
Occupancy 65.09% 63.18% 3.02%
-----------------------------
RevPAR $57.28 $52.81 8.46%
-----------------------------
------------
Number of hotel properties 12
------------
Percent of total rooms 16.2%
------------
Percent of room revenue(2) 14.0%
------------
East South Central(1)
(KY, TN, AL, MS)
-----------------------------
Average Daily Rate $81.18 $73.46 10.51%
-----------------------------
Occupancy 78.96% 80.63% -2.07%
-----------------------------
RevPAR $64.10 $59.23 8.22%
-----------------------------
------------
Number of hotel properties 2
------------
Percent of total rooms 2.1%
------------
Percent of room revenue(2) 2.2%
------------
Three Months Ended
December 31,
December 31, % Inc
2004 2004 2003 (dec)
-----------------------------------------
West North Central
(MN, IA, MO, KS, NE, SD, ND)
-----------------------------
Average Daily Rate $79.32 $77.24 2.69%
-----------------------------
Occupancy 74.05% 73.45% 0.82%
-----------------------------
RevPAR $58.74 $56.74 3.52%
-----------------------------
------------
Number of hotel properties 1
------------
Percent of total rooms 0.8%
------------
Percent of room revenue(2) 0.7%
------------
West South Central
(AR, LA, OK, TX)
-----------------------------
Average Daily Rate $88.96 $85.71 3.79%
-----------------------------
Occupancy 76.19% 69.70% 9.31%
-----------------------------
RevPAR $67.78 $59.74 13.46%
-----------------------------
------------
Number of hotel properties 5
------------
Percent of total rooms 8.4%
------------
Percent of room revenue(2) 7.5%
------------
Mountain
(MT, ID, WY, CO, UT, NM, AZ,
NV)
-----------------------------
Average Daily Rate $89.45 $83.41 7.24%
-----------------------------
Occupancy 64.80% 68.17% -4.94%
-----------------------------
RevPAR $57.97 $56.86 1.95%
-----------------------------
------------
Number of hotel properties 2
------------
Percent of total rooms 3.5%
------------
Percent of room revenue(2) 3.1%
------------
Pacific
(WA, OR, CA, AK, HI)
-----------------------------
Average Daily Rate $102.27 $96.40 6.09%
-----------------------------
Occupancy 72.66% 71.56% 1.54%
-----------------------------
RevPAR $74.31 $68.98 7.73%
-----------------------------
------------
Number of hotel properties 16
------------
Percent of total rooms 27.4%
------------
Percent of room revenue(2) 31.6%
------------
BY SELECTED MSA
-----------------------------
Atlanta
-----------------------------
Average Daily Rate $86.52 $87.48 -1.10%
-----------------------------
Occupancy 65.76% 51.87% 26.78%
-----------------------------
RevPAR $56.89 $45.37 25.39%
-----------------------------
------------
Number of hotel properties 2
------------
Percent of total rooms 3.4%
------------
Percent of room revenue(2) 3.2%
------------
Three Months Ended
December, 31
December 31, % Inc
2004 2004 2003 (dec)
-----------------------------------------
Boston
-----------------------------
Average Daily Rate $76.15 $80.08 -4.91%
-----------------------------
Occupancy 56.21% 43.36% 29.64%
-----------------------------
RevPAR $42.80 $34.72 23.27%
-----------------------------
------------
Number of hotel properties 2
------------
Percent of total rooms 3.7%
------------
Percent of room revenue(2) 2.2%
------------
Chicago
-----------------------------
Average Daily Rate $88.12 $84.07 4.82%
-----------------------------
Occupancy 64.45% 59.75% 7.87%
-----------------------------
RevPAR $56.79 $50.23 13.06%
-----------------------------
------------
Number of hotel properties 4
------------
Percent of total rooms 6.8%
------------
Percent of room revenue(2) 5.6%
------------
Dallas/Ft. Worth
-----------------------------
Average Daily Rate $80.08 $77.69 3.08%
-----------------------------
Occupancy 76.67% 67.19% 14.11%
-----------------------------
RevPAR $61.40 $52.21 17.60%
-----------------------------
------------
Number of hotel properties 4
------------
Percent of total rooms 6.6%
------------
Percent of room revenue(2) 6.1%
------------
Denver
-----------------------------
Average Daily Rate $89.45 $83.41 7.24%
-----------------------------
Occupancy 64.80% 68.17% -4.94%
-----------------------------
RevPAR $57.97 $56.86 1.95%
-----------------------------
------------
Number of hotel properties 2
------------
Percent of total rooms 3.5%
------------
Percent of room revenue(2) 3.1%
------------
Detroit
-----------------------------
Average Daily Rate $92.39 $87.55 5.53%
-----------------------------
Occupancy 64.11% 69.62% -7.91%
-----------------------------
RevPAR $59.23 $60.96 -2.84%
-----------------------------
------------
Number of hotel properties 3
------------
Percent of total rooms 4.4%
------------
Percent of room revenue(2) 4.3%
------------
Three Months Ended
December 31,
December 31, % Inc
2004 2004 2003 (dec)
-----------------------------------------
Hartford
-----------------------------
Average Daily Rate $104.04 $101.61 2.39%
-----------------------------
Occupancy 75.08% 71.41% 5.14%
-----------------------------
RevPAR $78.12 $72.55 7.68%
-----------------------------
------------
Number of hotel properties 2
------------
Percent of total rooms 2.3%
------------
Percent of room revenue(2) 2.6%
------------
Philadelphia
-----------------------------
Average Daily Rate $94.97 $89.00 6.71%
-----------------------------
Occupancy 74.52% 74.83% -0.41%
-----------------------------
RevPAR $70.78 $66.60 6.28%
-----------------------------
------------
Number of hotel properties 4
------------
Percent of total rooms 5.6%
------------
Percent of room revenue(2) 5.9%
------------
Richmond
-----------------------------
Average Daily Rate $88.54 $83.86 5.58%
-----------------------------
Occupancy 75.31% 80.89% -6.90%
-----------------------------
RevPAR $66.67 $67.83 -1.71%
-----------------------------
------------
Number of hotel properties 2
------------
Percent of total rooms 2.2%
------------
Percent of room revenue(2) 2.3%
------------
San Francisco/San
Jose/Oakland
-----------------------------
Average Daily Rate $103.89 $96.95 7.16%
-----------------------------
Occupancy 70.07% 66.26% 5.75%
-----------------------------
RevPAR $72.80 $64.24 13.33%
-----------------------------
------------
Number of hotel properties 8
------------
Percent of total rooms 14.5%
------------
Percent of room revenue(2) 16.3%
------------
Seattle/Portland
-----------------------------
Average Daily Rate $97.59 $93.44 4.44%
-----------------------------
Occupancy 72.99% 73.00% -0.01%
-----------------------------
RevPAR $71.23 $68.21 4.43%
-----------------------------
------------
Number of hotel properties 6
------------
Percent of total rooms 9.0%
------------
Percent of room revenue(2) 10.0%
------------
Three Months Ended
December 31,
December 31, % Inc
2004 2004 2003 (dec)
-----------------------------------------
Washington, D.C.(1)
-----------------------------
Average Daily Rate $112.87 $98.56 14.52%
-----------------------------
Occupancy 68.26% 71.88% -5.04%
-----------------------------
RevPAR $77.05 $70.84 8.77%
-----------------------------
------------
Number of hotel properties 3
------------
Percent of total rooms 5.2%
------------
Percent of room revenue(2) 6.1%
------------
(1) Hotel operating results exclude one hotel property acquired in
June 2003 which will be converted to a Courtyard hotel, one hotel
property acquired in June 2004 which will be converted to a Hampton
Inn hotel and one hotel property acquired in December 2004.
(2) Room revenue for the year 2004
(3) 17 of the 60 hotel properties managed by Innkeepers Hospitality
Management, Inc. (IHM) were previously managed by affiliates of
Marriott International, Inc. during a portion of the year 2003. IHM
assumed management of one Sunrise Suites hotel previously managed by
affiliates of Wyndham International, Inc. on March 1, 2004, and five
Summerfield Suites by Wyndham hotels previously managed by affiliates
of Wyndham International, Inc. on April 1, 2004.
INNKEEPERS USA TRUST
HOTEL OPERATING RESULTS (UNAUDITED)
Twelve Months Ended
December 31,
% Inc
2004 2003 (dec)
-----------------------------
PORTFOLIO(1)
----------------------------------------------------------------------
Average Daily Rate $95.42 $92.24 3.45%
-----------------------------
Occupancy 73.92% 70.96% 4.17%
-----------------------------
RevPAR $70.54 $65.45 7.78%
-----------------------------
BY SEGMENT
-----------------------------------------
Upscale Extended Stay
-----------------------------
Average Daily Rate $97.25 $94.15 3.29%
-----------------------------
Occupancy 77.21% 73.68% 4.79%
-----------------------------
RevPAR $75.09 $69.37 8.25%
-----------------------------
Upscale(1)
-----------------------------
Average Daily Rate $102.69 $96.24 6.70%
-----------------------------
Occupancy 67.89% 73.06% -7.08%
-----------------------------
RevPAR $69.72 $70.31 -0.84%
-----------------------------
Mid Priced(1)
-----------------------------
Average Daily Rate $85.94 $83.00 3.54%
-----------------------------
Occupancy 62.89% 60.68% 3.64%
-----------------------------
RevPAR $54.05 $50.37 7.31%
-----------------------------
BY FRANCHISE AFFILIATION
-----------------------------------------
Residence Inn
-----------------------------
Average Daily Rate $97.38 $94.77 2.75%
-----------------------------
Occupancy 76.42% 71.73% 6.54%
-----------------------------
RevPAR $74.42 $67.98 9.47%
-----------------------------
Twelve Months Ended
December 31,
% Inc
2004 2003 (dec)
-----------------------------
Summerfield Suites
-----------------------------
Average Daily Rate $93.76 $88.66 5.75%
-----------------------------
Occupancy 83.06% 86.53% -4.01%
-----------------------------
RevPAR $77.88 $76.71 1.53%
-----------------------------
Hampton Inn(1)
-----------------------------
Average Daily Rate $87.76 $83.94 4.55%
-----------------------------
Occupancy 63.94% 61.37% 4.19%
-----------------------------
RevPAR $56.12 $51.51 8.95%
-----------------------------
BY MANAGEMENT COMPANY
-----------------------------------------
Innkeepers Hospitality Management(1)(3)
-----------------------------
Average Daily Rate $95.09 $91.96 3.40%
-----------------------------
Occupancy 74.07% 70.76% 4.68%
-----------------------------
RevPAR $70.44 $65.07 8.25%
-----------------------------
Third Party Managed
-----------------------------
Average Daily Rate $117.24 $106.57 10.01%
-----------------------------
Occupancy 65.11% 82.43% -21.01%
-----------------------------
RevPAR $76.34 $87.85 -13.10%
-----------------------------
Twelve Months Ended
December 31,
% Inc
2004 2003 (dec)
-----------------------------
BY GEOGRAPHIC REGION
-----------------------------------------
New England (ME, NH, VT, MA, CT, RI)
-----------------------------
Average Daily Rate $91.88 $90.38 1.66%
-----------------------------
Occupancy 63.37% 60.40% 4.92%
-----------------------------
RevPAR $58.23 $54.59 6.67%
-----------------------------
Middle Atlantic(1) (NY, NJ, PA)
-----------------------------
Average Daily Rate $103.26 $99.53 3.75%
-----------------------------
Occupancy 74.00% 73.21% 1.08%
-----------------------------
RevPAR $76.41 $72.87 4.86%
-----------------------------
South Atlantic(1)
(DE, MD, WV, DC, VA, NC, SC, GA, FL)
-----------------------------
Average Daily Rate $94.68 $89.05 6.32%
-----------------------------
Occupancy 73.46% 69.68% 5.42%
-----------------------------
RevPAR $69.55 $62.05 12.09%
-----------------------------
East North Central (OH, MI, IN, IL, WI)
-----------------------------
Average Daily Rate $87.22 $86.15 1.24%
-----------------------------
Occupancy 68.94% 67.15% 2.67%
-----------------------------
RevPAR $60.13 $57.85 3.94%
-----------------------------
East South Central(1) (KY, TN, AL, MS)
-----------------------------
Average Daily Rate $81.28 $78.04 4.15%
-----------------------------
Occupancy 86.33% 80.80% 6.84%
-----------------------------
RevPAR $70.17 $63.06 11.27%
-----------------------------
Twelve Months Ended
December 31,
% Inc
2004 2003 (dec)
-----------------------------
West North Central
(MN, IA, MO, KS, NE, SD, ND)
-----------------------------
Average Daily Rate $81.22 $78.52 3.44%
-----------------------------
Occupancy 77.99% 78.51% -0.66%
-----------------------------
RevPAR $63.35 $61.65 2.76%
-----------------------------
West South Central (AR, LA, OK, TX)
-----------------------------
Average Daily Rate $86.00 $83.65 2.81%
-----------------------------
Occupancy 78.48% 76.51% 2.57%
-----------------------------
RevPAR $67.49 $63.99 5.47%
-----------------------------
Mountain (MT, ID, WY, CO, UT, NM, AZ, NV)
-----------------------------
Average Daily Rate $88.22 $86.98 1.43%
-----------------------------
Occupancy 70.19% 73.71% -4.78%
-----------------------------
RevPAR $61.92 $64.12 -3.43%
-----------------------------
Pacific (WA, OR, CA, AK, HI)
-----------------------------
Average Daily Rate $102.31 $99.35 2.98%
-----------------------------
Occupancy 77.95% 72.80% 7.07%
-----------------------------
RevPAR $79.75 $72.33 10.26%
-----------------------------
BY SELECTED MSA
-----------------------------------------
Atlanta
-----------------------------
Average Daily Rate $89.95 $91.40 -1.59%
-----------------------------
Occupancy 71.97% 58.25% 23.55%
-----------------------------
RevPAR $64.74 $53.24 21.60%
-----------------------------
Twelve Months Ended
December 31,
% Inc
2004 2003 (dec)
-----------------------------
Boston
-----------------------------
Average Daily Rate $77.59 $79.37 -2.24%
-----------------------------
Occupancy 52.95% 47.64% 11.15%
-----------------------------
RevPAR $41.08 $37.81 8.65%
-----------------------------
Chicago
-----------------------------
Average Daily Rate $88.79 $86.86 2.22%
-----------------------------
Occupancy 64.46% 63.61% 1.34%
-----------------------------
RevPAR $57.24 $55.25 3.60%
-----------------------------
Dallas/Ft. Worth
-----------------------------
Average Daily Rate $80.45 $78.87 2.00%
-----------------------------
Occupancy 79.08% 75.64% 4.55%
-----------------------------
RevPAR $63.62 $59.66 6.64%
-----------------------------
Denver
-----------------------------
Average Daily Rate $88.22 $86.98 1.43%
-----------------------------
Occupancy 70.19% 73.71% -4.78%
-----------------------------
RevPAR $61.92 $64.12 -3.43%
-----------------------------
Detroit
-----------------------------
Average Daily Rate $90.19 $90.79 -0.66%
-----------------------------
Occupancy 74.57% 72.72% 2.54%
-----------------------------
RevPAR $67.26 $66.02 1.88%
-----------------------------
Twelve Months Ended
December 31,
% Inc
2004 2003 (dec)
-----------------------------
Hartford
-----------------------------
Average Daily Rate $105.08 $102.04 2.98%
-----------------------------
Occupancy 73.02% 72.76% 0.36%
-----------------------------
RevPAR $76.73 $74.25 3.34%
-----------------------------
Philadelphia
-----------------------------
Average Daily Rate $94.85 $90.23 5.12%
-----------------------------
Occupancy 76.61% 77.13% -0.67%
-----------------------------
RevPAR $72.66 $69.59 4.41%
-----------------------------
Richmond
-----------------------------
Average Daily Rate $91.34 $83.41 9.51%
-----------------------------
Occupancy 76.64% 75.88% 1.00%
-----------------------------
RevPAR $70.01 $63.29 10.62%
-----------------------------
San Francisco/San Jose/Oakland
-----------------------------
Average Daily Rate $103.78 $102.53 1.22%
-----------------------------
Occupancy 74.68% 65.96% 13.22%
-----------------------------
RevPAR $77.51 $67.63 14.61%
-----------------------------
Seattle/Portland
-----------------------------
Average Daily Rate $98.47 $94.51 4.19%
-----------------------------
Occupancy 78.56% 77.38% 1.52%
-----------------------------
RevPAR $77.35 $73.13 5.77%
-----------------------------
Twelve Months Ended
December 31,
% Inc
2004 2003 (dec)
-----------------------------
Washington, D.C.(1)
-----------------------------
Average Daily Rate $108.27 $101.00 7.20%
-----------------------------
Occupancy 74.61% 70.19% 6.30%
-----------------------------
RevPAR $80.77 $70.89 13.94%
-----------------------------
(1) Hotel operating results exclude one hotel property acquired in
June 2003 which will be converted to a Courtyard hotel, one hotel
property acquired in June 2004 which will be converted to a Hampton
Inn hotel and one hotel property acquired in December 2004.
(2) Room revenue for the year 2004
(3) 17 of the 60 hotel properties managed by Innkeepers Hospitality
Management, Inc. (IHM) were previously managed by affiliates of
Marriott International, Inc. during a portion of the year 2003. IHM
assumed management of one Sunrise Suites hotel previously managed by
affiliates of Wyndham International, Inc. on March 1, 2004, and five
Summerfield Suites by Wyndham hotels previously managed by affiliates
of Wyndham International, Inc. on April 1, 2004.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion