Winston (NYSE:WXH)
Historical Stock Chart
From Jul 2019 to Jul 2024
Winston Hotels, Inc. (NYSE: WXH), a real estate
investment trust (REIT) and owner of premium limited-service, upscale
extended-stay and full-service hotels, today announced results for the
first quarter ended March 31, 2006.
2006 Highlights
-- Same-store RevPAR rose 11 percent; gross operating margin
increased 174 basis points, excluding (1) hotels that were
negatively impacted by renovation and (2) higher energy costs
-- Increased EBITDA by $1.7 million to $11.9 million
-- Raised annual FFO available to common shareholders per share
guidance to $1.09 to $1.15, compared to $1.04 to $1.10
previously forecasted, and raised annual RevPAR expectation
from 5 to 7 percent to 6 to 8 percent
-- Opened 123-room Courtyard by Marriott in Kansas City
-- Funded $20.3 million "B" note with Canyon Partners
-- Today, expects to close a 10-year, $176 million CMBS loan at a
fixed interest rate of 5.94 percent
2006 First Quarter Operating Results
Net income available to common shareholders was $4.4 million for
the 2006 first quarter, or $0.17 per share, compared to net income
available to common shareholders of $1.1 million, or $0.04 per share,
for the same period in 2005. Net income available to common
shareholders for the 2006 first quarter included a net gain of $4.5
million on the sale of the Southlake, Ga. Hampton Inn, which is
excluded from funds from operations (FFO) available to common
shareholders.
FFO available to common shareholders for the 2006 first quarter
was $5.5 million, compared to $6.0 million in the 2005 first quarter,
or $0.20 and $0.22 per common share, respectively. FFO declined as
expected from the previous year due primarily to higher interest
expense, higher general and administrative costs and higher management
fees. However, FFO available to common shareholders per share exceeded
the company's high-end guidance range by $0.02 per share and First
Call consensus analyst expectations by $0.03 per share. The company
had approximately 27.8 million and 27.6 million fully diluted weighted
average common shares outstanding in the 2006 and 2005 reporting
periods, respectively.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) for the 2006 first quarter was $11.9 million, compared to
$10.2 million in the 2005 first quarter.
2006 Second Quarter Outlook and Guidance
For the 2006 second quarter, the company forecasts net income per
share available to common shareholders of $0.17 to $0.19. On a same
store basis, the company expects 2006 second quarter RevPAR to
increase 6 to 8 percent as compared to the prior year's second
quarter.
FFO per share available to common shareholders is expected to be
between $0.33 and $0.35 for the 2006 second quarter.
2006 Yearly Outlook and Guidance Revised
For the year ended December 31, 2006, the company forecasts net
income per share available to common shareholders of $0.51 to $0.57.
On a same store basis, the company expects 2006 RevPAR to increase 6
to 8 percent from the prior year, compared to 5 to 7 percent
forecasted earlier this year.
FFO per share available to common shareholders for the year ended
December 31, 2006 is expected to be between $1.09 and $1.15, compared
to the $1.04 to $1.10 forecasted earlier this year. This guidance
assumes no hotel acquisitions, dispositions, developments or
placements of hotel debt during the year ended December 31, 2006,
other than those activities discussed below.
Hotel Development
"During 2006, we continued to upgrade our portfolio through the
disposition of two older properties at attractive prices and the
opening of a new hotel we developed," said Robert W. Winston III,
chief executive officer.
On April 20, 2006 the company opened a 123-room Courtyard by
Marriott in Kansas City, Mo., which it converted from a six-story,
former historic apartment building. The hotel's central location is
convenient to multiple leisure and business demand generators. The
company is excited about the earnings potential of this property. The
company also made substantial progress on three additional properties
that it has under construction. All currently are on schedule and on
budget, including:
-- A 121-room, $12.5 million Hilton Garden Inn in Akron, Ohio,
which is scheduled to open in the 2006 fourth quarter. The
property is owned by a joint venture in which the company
holds a 70 percent equity interest.
-- A wholly owned, 142-room, $19.6 million Homewood Suites hotel
in Princeton, N.J. which is expected to open in the 2007 first
quarter.
-- A wholly owned, 119-room, $13.3 million Hilton Garden Inn in
Wilmington, N.C., which is expected to open in the 2007 first
quarter.
"With acquisition values at historically high levels, we are
pleased to have the ability to create value through development, where
we have significant expertise," Winston said. "We are looking at a
number of sites to build upscale hotels, including the new aloft brand
by Starwood Hotels and Resorts, for which we are a preferred
developer. We will continue to carefully balance the advantages of
acquisition versus development, with a goal of upgrading and expanding
our portfolio with appropriate risk-adjusted returns. Although we
continue to have an active acquisition pipeline, we seek to acquire
properties that we believe will provide value to our shareholders in
the long term."
Hotel Dispositions
In March 2006, the company sold the 126-room Southlake, Ga.
Hampton Inn for net sales proceeds of $8.5 million, resulting in a net
gain of $4.5 million. In April 2006, Winston sold the 146-room
Wilmington, N.C. Comfort Inn for net proceeds of $5.7 million,
resulting in a net gain of $1.0 million.
"The sale of these two hotels, the addition of the recently opened
Courtyard by Marriott in Kansas City, together with three additional
properties under construction that are expected to open in late 2006
and early 2007, are consistent with the company's strategy to
selectively prune our older assets that no longer meet our strategic
long-term growth objectives and to reinvest the proceeds in properties
that we believe have long-term growth potential," said Joe Green,
president and chief financial officer.
Hotel Debt Financing Program
During the 2006 first quarter, the company closed on a loan in its
previously announced program with GE Commercial Franchise Finance
(GEFF), which is designed to provide a highly streamlined,
cost-effective loan program for hoteliers. Under the program, GEFF and
the company provide seamless mortgage loans for up to 85 percent of a
project's cost. The company has funded $0.8 million of the total $2.3
million first loss piece, or the "B" note, of a $12 million total loan
amount for a 140-room Hilton Garden Inn under construction in
Columbia, S.C. The underlying construction-to-five-year-permanent
loan, bears interest at an all in annual yield to the company equal to
30-day LIBOR plus approximately 12 percent. The company is obligated
to fund the remaining $1.5 million balance of the "B" note ratably
over the projected construction period, which is expected to be
completed during the fourth quarter of 2006.
In May 2006, the company and GEFF closed on a $7.5 million
construction-to-permanent loan amount for a 122-room Hilton Garden Inn
under construction in Tuscaloosa, Tenn. with an estimated all-in cost
of $9.3 million. The company is obligated to fund a $1.7 million "B"
note ratably over the projected construction period, which is expected
to be completed during the fourth quarter of 2006. During the
construction period, the then outstanding "B" note bears interest at a
variable rate equal to 90-day LIBOR plus 7.63 percent per annum;
thereafter, the spread reduces to 7.43 percent. In addition, the "B"
note accrues interest of 3.29 percent per annum until maturity, which
is five years from the date the property opens to the general public.
During the 2006 second quarter, the company also provided a $20.3
million "B" note as part of a $66 million senior note originated by
Canyon Partners, to fund Downtown Resorts, LLC's $91.5 million
refinance and refurbishment of the 25,500-square-foot Lady Luck casino
and adjacent 627-room hotel, which is expected to be completed during
the first quarter of 2007. The loan bears interest at a fixed rate of
12.63 percent for two years with two, one-year extensions.
"We continue to have a very active pipeline for our loan
platform", Green said. "These transactions are complex and are
difficult to close on a predictable basis. However, we believe we can
achieve superior returns on these financings and that this is a highly
effective growth strategy for the company."
Same Store Operating Statistics
First quarter 2006 revenue per available room (RevPAR) for the
company's 43 hotels that were open during both the first quarter of
2006 and 2005, rose 10.4 percent, led by a 6.7 percent increase in
average daily room rate (ADR) and a 3.5 percent increase in occupancy.
First quarter 2006 operating margins increased to 39.9 percent from
39.5 percent in the same period a year earlier, despite significant
pressure from hotels that were negatively impacted by renovation,
rising fuel prices, franchise fees and higher guest frequency program
costs. However, these costs were partially offset by improvements in
labor costs, general repairs and maintenance, room operating
supplies/expenses and a number of recently implemented energy-saving
measures.
The following table details the same store operating statistics,
which include 43 consolidated hotels that were open throughout both
the three months ended March 31, 2006 and 2005 (includes 41 wholly
owned hotels and two hotels owned through joint ventures, the Chapel
Hill, N.C. Courtyard by Marriott and the Ponte Vedra, Fla. Hampton
Inn).
-0-
*T
Same Store Operating Statistics
----------------------------------------------------------------------
Three Months Ended
March 31,
-------------------------------------
2006 2005 Change
-------------- -------- -----------
Hotel room revenues $34,223 $31,279 9.4%
RevPAR $ 62.88 $ 56.94 10.4%
Occupancy 68.0% 65.7% 3.5%
Average Daily rate $ 92.48 $ 86.64 6.7%
Gross Operating Profit margin 39.9% 39.5% 0.4%pts.
----------------------------------------------------------------------
*T
Excluding the operating results for the three months ended March
31, 2006 and 2005 of five hotels that were negatively impacted by
renovations (i) RevPAR increased 11.0 percent to $64.14 from $57.80;
and (ii) operating margins increased 130 basis points to 40.5 percent
from 39.2 percent. In addition, but for higher energy costs, operating
margins would have improved by 174 basis points.
Strengthened Balance Sheet
Today, the company expects to closed a 10-year $176 million
commercial mortgage backed security (CMBS) loan with General Electric
Capital Corporation, which will be collateralized by 16 of its hotels.
The $176 million facility will bear interest only for four years at a
fixed rate of 5.94 percent and thereafter will amortize over a 30-year
period. Under the terms of the facility, the properties will not be
cross-collateralized and the loans will be assumable, should any of
the individual properties be sold. The net proceeds will be used to
defease and payoff the $61.3 million outstanding balance of the
company's 7.38 percent fixed rate mortgage loan and to pay down the
outstanding balance under the company's existing revolving corporate
line of credit, which at March 31, 2006 bore interest at 30-day LIBOR
(5.08 percent at May 5, 2006) plus 2.50 percent.
"With interest rates continuing to rise, we believe it was
critical to lock in attractive long-term rates," Green said. "Because
the properties are not cross-collateralized, the structure gives us
flexibility to manage our portfolio more effectively."
Also in April 2006, the company modified its $50 million master
repurchase agreement with Marathon Structured Finance Fund (Marathon).
The modified agreement reduced the interest rates from LIBOR plus 4.5
percent for loans funding the acquisition of existing hotels to LIBOR
plus 2.75 percent, and from LIBOR plus 5.5 percent for loans funding
the development or redevelopment of hotels to LIBOR plus 3.0 percent,
respectively.
"We continue to seek every opportunity to reduce our interest
costs," Green said. "By using the net proceeds from the new CMBS loan
facility to pay off outstanding debt balances under our existing CMBS
loan facility and our corporate line of credit, and by reducing the
interest rates under our master repurchase agreement with Marathon, we
expect to save approximately $1.1 million in interest expense during
the remainder of 2006."
Dividends
During the 2006 first quarter, the company declared a regular cash
dividend of $0.15 per common share and a cash dividend of $0.50 per
share of Series B Preferred Stock. "We continue to evaluate our policy
on a quarterly basis and currently are comfortable with the payout
level of our stock dividends," Winston said.
Winston Hotels' 2006 first quarter investor conference call is
scheduled for 10 a.m. EST today, May 9, 2006. The call also will be
simulcast over the Internet via the company's Web site,
www.winstonhotels.com. The replay will be available on the company's
Web site for 30 days and via telephone for seven days by calling
800-475-6701, access code 826983.
About the Company
As of March 31, 2006 the company owned or was invested in 55 hotel
properties in 17 states having an aggregate of 7,542 rooms. This
included 48 wholly owned properties with an aggregate of 6,594 rooms,
a 60 percent ownership interest in a joint-venture that owns one hotel
with 138 rooms; a 49 percent ownership interest in a joint venture
that owns one hotel with 118 rooms, a 48.78 percent ownership interest
in a joint venture that owns one hotel with 147 rooms, and a 13.05
percent ownership interest in a joint venture that owns four hotels
with an aggregate of 545 rooms. As of March 31, 2006 the company had
hotel loans receivable totaling approximately $38.8 million. The
company does not hold an ownership interest in any of the hotels for
which it has provided financing. For more information about Winston
Hotels, visit the company's Web site at www.winstonhotels.com.
Notes About Forward-Looking Statements
In addition to historical information, this press release contains
forward-looking statements. The reader can identify these statements
by use of words like "may," "will," "expect," "project," "anticipate,"
"estimate," "target," "believe," or "continue" or similar expressions,
including without limitation its acquisition, disposition and
development plans for hotel properties, its hotel lending plans, its
dividend policy, and its estimated net income available to common
shareholders, net income available to common shareholders per share,
FFO available to common shareholders, FFO available to common
shareholders per share and RevPAR. These statements represent the
company's judgment and are subject to risks and uncertainties that
could cause actual operating results to differ materially from those
expressed or implied in the forward looking statements including, but
not limited to, changes in general economic conditions, lower
occupancy rates, lower average daily rates, acquisition risks,
development risks including risk of construction delay, cost overruns,
occupancy and governmental permits, zoning, the increase of
development costs in connection with projects that are not pursued to
completion, the risk of non-payment of subordinated loans, or the
failure to make additional hotel debt investments and investments in
hotels. Other risks are discussed in the company's filings with the
Securities and Exchange Commission, including but not limited to its
Annual Report on Form 10-K for the year ended December 31, 2005.
Notes About Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures as
defined under Securities and Exchange Commission ("SEC") rules. As
required by SEC rules, the company has provided reconciliation in this
press release of each non-GAAP financial measure to its most directly
comparable GAAP measure. We believe that these non-GAAP measures, when
combined with the company's primary GAAP presentations required by the
SEC, help improve our equity holders' ability to understand our
operating performance and make it easier to compare the results of our
company with other hotel REITs. A description of each is provided
below.
FFO and FFO Available to Common Shareholders
The company reports FFO in accordance with the definition of the
National Association of Real Estate Investment Trusts ("NAREIT").
NAREIT defines FFO as net income (loss) (determined in accordance with
generally accepted accounting principles, or "GAAP"), excluding gains
(losses) from sales of property, plus depreciation and amortization,
and after adjustments for unconsolidated partnerships and joint
ventures (which are calculated to reflect FFO on the same basis). The
company further subtracts preferred stock dividends from FFO to
calculate FFO available to common shareholders. FFO available to
common shareholders is a performance measure used by the company in
its budgeting and forecasting models, it is discussed during Board
meetings, and is considered when making decisions regarding
acquisitions, sales of properties and other investments, and is a
metric in determining executive compensation. The calculation of FFO
and FFO available to common shareholders may vary from entity to
entity, and as such the presentation of FFO and FFO available to
common shareholders by the company may not be comparable to other
similarly titled measures of other reporting companies. FFO and FFO
available to common shareholders are not intended to represent cash
flows for the period. FFO and FFO available to common shareholders
have not been presented as an alternative to net income, and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP.
FFO is a supplemental industry-wide measure of REIT operating
performance, the definition of which was first proposed by NAREIT in
1991 (and clarified in 1995, 1999 and 2002) in response to perceived
drawbacks associated with the presentation of net income under GAAP as
applied to REITs. Since the introduction of the definition by NAREIT,
the term has come to be widely used by REITs. Historical GAAP cost
accounting for real estate assets implicitly assumes that the value of
real estate assets diminishes predictably over time. Since real estate
values instead have historically risen or fallen with market
conditions, most industry investors have considered presentations of
operating results for real estate companies that use historical GAAP
cost accounting to be insufficient by themselves. Accordingly, the
company believes FFO and FFO available to common shareholders
(combined with the company's primary GAAP presentations required by
the SEC) improve our investors' ability to understand the company's
operating performance.
Operating Margin
Gross operating profit margin, which is referred to herein as
"operating margin," is defined as hotel revenues minus hotel operating
costs before property taxes, insurance and management fees, divided by
hotel revenues.
RevPAR
RevPAR is an acronym for Revenue Per Available Room, which is
determined by multiplying average daily rate by occupancy percentage
for any given period. RevPAR does not include food and beverage or
other ancillary revenues, such as parking, telephone, or other guest
services generated by the property. Similar to the reporting periods
for the company's statement of operations, hotel operating statistics
(i.e., RevPAR, average daily rate and average occupancy) are always
reported on a quarter to date and/or year to date basis.
EBITDA
EBITDA is an acronym for Earnings before Interest, Taxes,
Depreciation, and Amortization, which is defined as GAAP net income
(loss) adjusted for interest expense, taxes, depreciation and
amortization. The company further subtracts gains (losses) from sales
of property to calculate EBITDA. EBITDA is helpful to investors and
management as a measure of the performance of the company because it
provides an indication of the operating performance of the properties
within the portfolio and is not impacted by the capital structure of
the REIT. EBITDA does not represent cash generated from operating
activities as determined by GAAP and should not be considered as an
alternative to GAAP net income as an indication of our financial
performance or to cash flow from operating activities as determined by
GAAP as a measure of our liquidity, nor is it indicative of funds
available to fund our cash needs, including our ability to make cash
distributions. EBITDA may include funds that may not be available for
the company's discretionary use due to functional requirements to
conserve funds for capital expenditures and property acquisitions, and
other commitments and uncertainties.
-0-
*T
WINSTON HOTELS, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands)
As of As of
March 31, Dec. 31,
2006 2005
----------------------------------------------------------------------
ASSETS
Land $54,557 $55,758
Buildings and improvements 411,220 422,081
Furniture and equipment 62,664 63,048
----------------------------------------------------------------------
Operating properties 528,441 540,887
Less accumulated depreciation 137,444 139,259
----------------------------------------------------------------------
390,997 401,628
Properties under development 30,787 25,139
----------------------------------------------------------------------
Net investment in hotel properties 421,784 426,767
Assets held for sale 15,700 11,009
Corporate furniture fixtures and
equipment, net 519 371
Cash 18,894 15,047
Accounts receivable, net 3,577 3,820
Notes receivable 38,839 38,050
Investment in joint ventures 1,746 1,795
Deferred expenses, net 6,978 6,807
Prepaid expenses and other assets 23,573 12,556
Deferred tax asset 11,823 11,471
----------------------------------------------------------------------
Total assets $543,433 $527,693
======================================================================
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS'
EQUITY
Lines of credit $178,196 $157,896
Mortgage loans 102,669 99,874
Accounts payable and accrued expenses 19,471 27,915
Distributions payable 6,055 6,011
----------------------------------------------------------------------
Total liabilities 306,391 291,696
----------------------------------------------------------------------
Minority interest 12,548 12,786
----------------------------------------------------------------------
Commitments and contingencies - -
Shareholders' equity:
Preferred stock, Series B, $.01 par value, 5,000
shares authorized, 3,680 shares issued and
outstanding (liquidation preference of $93,840) 37 37
Common stock, $.01 par value, 50,000
shares authorized, 26,801 shares issued
and 26,458 shares outstanding at March 31,
2006 and 26,509 shares issued and
outstanding at December 31, 2005 265 265
Additional paid-in capital 324,647 325,238
Unearned compensation - (1,454)
Distributions in excess of earnings (100,455) (100,875)
----------------------------------------------------------------------
Total shareholders' equity 224,494 223,211
----------------------------------------------------------------------
Total liabilities, minority interest and
shareholders' equity $543,433 $527,693
======================================================================
WINSTON HOTELS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended March 31,
2006 2005
---------------------------------- ------------ -----------
Operating revenue:
Rooms $ 37,349 $ 29,506
Food and beverage 2,553 1,821
Other operating departments 1,123 723
- -
Joint venture fee income 52 61
---------------------------------- ------------ -----------
Total operating revenue 41,077 32,111
---------------------------------- ------------ -----------
Hotel operating expenses:
Rooms 8,020 6,536
Food and beverage 2,098 1,497
Other operating departments 861 638
Undistributed operating expenses:
Property operating expenses 8,758 6,602
Real estate taxes and property
and casualty insurance 1,887 1,677
Franchise costs 2,567 2,134
Maintenance and repair 2,178 1,790
Management fees 1,429 723
General and administrative 3,028 1,989
Depreciation 5,233 4,141
Amortization 493 250
---------------------------------- ------------ -----------
Total operating expenses 36,552 27,977
---------------------------------- ------------ -----------
Operating income 4,525 4,134
---------------------------------- ------------ -----------
Interest and other income 1,386 1,520
Interest expense (4,412) (2,407)
---------------------------------- ------------ -----------
Income before allocation to
minority interest in
Partnership, allocation to minority
interest in consolidated
joint ventures, income taxes,
and equity in income (loss) of
unconsolidated joint ventures 1,499 3,247
(Income) loss allocation to
minority interest in Partnership 4 (64)
(Income) loss allocation to
minority interest in
consolidated joint ventures 134 (128)
Income tax benefit 98 132
Equity in income (loss) of
unconsolidated joint ventures 22 (62)
---------------------------------- ------------ -----------
Income from continuing
operations 1,757 3,125
Discontinued operations:
Income (loss) from discontinued
operations 274 (62)
Gain (loss) on sale of
discontinued operations 4,249 (85)
Loss on impairment of asset held
for sale - -
---------------------------------- ------------ -----------
Net income 6,280 2,978
Preferred stock distribution (1,840) (1,840)
---------------------------------- ------------ -----------
Net income available to
common shareholders $ 4,440 $ 1,138
================================== ============ ===========
Basic weighted average number of
common shares outstanding 26,418 26,283
---------------------------------- ------------ -----------
Diluted weighted average number of
common shares outstanding 26,418 27,601
---------------------------------- ------------ -----------
Income (loss) per common share
basic and diluted:
Income (loss) from continuing
operations $ - $ 0.05
Income (loss) from discontinued
operations 0.17 (0.01)
---------------------------------- ------------ -----------
Net income available to common
shareholders 0.17 0.04
---------------------------------- ------------ -----------
Per share dividends to common
shareholders $ 0.15 $ 0.15
---------------------------------- ------------ ----------
WINSTON HOTELS, INC.
RECONCILIATION OF NET INCOME TO FFO,
FFO AVAILABLE TO COMMON SHAREHOLDERS
AND FFO AVAILABLE TO COMMON SHAREHOLDERS PER SHARE
($ in thousands, except per share amounts)
--------------------------------------------------------------------
Three Months Ended
March 31,
2006 2005
----------------------------------------------- -------- --------
Net income $ 6,280 $ 2,978
(Gain) loss on sale (4,455) 90
Minority interest in Partnership allocation of
income (loss) (4) 64
Minority interest in Partnership allocation of
gain (loss)
on sale of discontinued operations 206 (5)
Minority interest in Partnership allocation of
income (loss) from discontinued operations 13 (3)
Depreciation 4,846 3,871
Depreciation from discontinued operations 172 606
Depreciation from joint ventures 258 191
-------- -------
FFO 7,316 7,792
Preferred stock dividend (1,840) (1,840)
-------- -------
FFO Available to Common Shareholders $ 5,476 $ 5,952
======== =======
Weighted average common shares
outstanding assuming dilution 27,752 27,601
----------------
FFO Available to Common Shareholders per share $ 0.20 $ 0.22
======== =======
--------------------------------------------------------------------
Common dividend per share $ 0.15 $ 0.15
=============================================== ======== ========
WINSTON HOTELS, INC.
2006 SECOND QUARTER AND YEARLY GUIDANCE
RECONCILIATION OF NET INCOME TO
FFO AVAILABLE TO COMMON SHAREHOLDERS/a
($ in thousands, except per share amounts)
----------------------------------------------------------------------
Quarter Ended Year Ended
June 30, Dec. 31,
2006 2006
----------------------------------------------------------------------
Guidance Guidance
Range Range
Low High Low High
-------- ------- ------- -------
Net income 6,350 7,000 20,900 22,500
Gain on sale (1,000) (1,000) (5,500) (5,500)
Minority interest 200 200 600 700
Depreciation 5,400 5,400 21,400 21,400
Depreciation from joint ventures 60 60 300 300
Preferred stock dividend (1,840) (1,840) (7,360) (7,360)
----------------------------------------------------------------------
FFO Available to Common Shareholders 9,170 9,820 30,340 32,040
======================================================================
Weighted average common
shares assuming dilution 27,800 27,800 27,900 27,900
----------------------------------------------------------------------
FFO Available to Common Shareholders
per share $0.33 $0.35 $1.09 $1.15
======================================================================
/a: Assumes no hotel acquisitions, and no hotel dispositions,
developments or placements of hotel debt, except for the operations
and related debt of the Courtyard by Marriott hotel in Kansas City,
MO. and the Hilton Garden Inn in Akron, Ohio, the new fixed-rate
financing with GECC, the modified financing with Marathon and the
three loans closed in 2006 under our hotel debt financing program.
Winston Hotels, Inc.
Reconciliation Of Net Income To EBITDA
($ in thousands)
Three Months
Ended
March 31,
2006 2005
------ ------
Net income $6,280 $2,978
Add back:
Minority interest in Partnership allocation of income
(loss) (4) 64
Minority interest in Partnership allocation of gain
(loss) 206 (5)
Minority interest in Partnership allocation of income
(loss) from discontinued operations 13 (3)
Interest expense 3,957 2,200
Interest expense from joint ventures 309 155
Depreciation 4,846 3,871
Depreciation from discontinued operations 172 606
Depreciation from joint ventures 258 191
Amortization expense 462 250
Amortization expense from joint ventures 27 6
Benefits from income tax (183) (202)
(Gain) loss on sale (4,455) 90
EBITDA $11,888 $10,201
Winston Hotels, Inc.
Three Months Ended March 31, Same-Store RevPAR Statistics
Total for 43 Hotels
Three Months
Ended March 31,
----------------------
2006 2005 % CH
------ ---------------
Combined Brands
-----------------------------------
Comfort Inn/Suites & Quality
Suites $45.87 $43.04 6.6%
Courtyard, Fairfield Inn,
Residence Inn $67.99 $58.64 15.9%
Hampton Inn/Suites $62.50 $55.26 13.1%
Hilton Garden Inn $74.15 $67.97 9.1%
Holiday Inn Express/Select $51.04 $48.90 4.4%
Homewood Suites $75.46 $70.87 6.5%
Region
-----------------------------------
South Atlantic $61.01 $55.22 10.5%
East North Central $71.26 $58.73 21.3%
West South Central $46.01 $40.89 12.5%
West North Central $ 0.00 $ 0.00 0.0%
Mountain $89.73 $81.55 10.0%
New England $60.74 $56.03 8.4%
Middle Atlantic $70.81 $68.48 3.4%
Segment
-----------------------------------
Upscale $72.59 $65.52 10.8%
Mid-scale w/ F&B $53.09 $48.58 9.3%
Mid-scale w/o F&B $54.73 $49.82 9.9%
Service
-----------------------------------
Limited-service $55.23 $50.08 10.3%
Full-service $64.73 $57.95 11.7%
Extended-stay $78.40 $72.86 7.6%
Total $62.88 $56.94 10.4%
----------------------------------- ------ ---------------
*T
The above presentation includes 41 of the company's 48 wholly
owned hotels as of March 31, 2006, as well as two joint venture hotels
the company held an ownership interest in throughout the periods
presented. These joint venture hotels include the Chapel Hill, N.C.
Courtyard by Marriott and the Ponte Vedra, Fla. Hampton Inn.
The above presentation excludes wholly owned properties which were
sold prior to March 31, 2006, the Hampton Inn & Suites Baltimore Inner
Harbor in Maryland which was acquired in September 2005 and the six
hotels acquired in October 2005. The above presentation also excludes
the Stanley Hotel in Estes Park, Colo., which was acquired in August
2005, in which the company owns a 60 percent interest. These
properties were not open throughout each of the periods presented;
therefore they are excluded from the table above.
-0-
*T
Winston Hotels, Inc.
Three Months Ended March 31, Same-Store ADR Statistics
Total for 43 Hotels
Three Months Ended
March 31,
-----------------------------
2006 2005 % CH
-----------------------------
Combined Brands
------------------------------
Comfort Inn/Suites & Quality
Suites $67.90 $66.25 2.5%
Courtyard, Fairfield Inn,
Residence Inn $101.70 $88.55 14.9%
Hampton Inn/Suites $90.64 $83.61 8.4%
Hilton Garden Inn $108.11 $106.37 1.6%
Holiday Inn Express/Select $89.32 $83.62 6.8%
Homewood Suites $96.70 $95.97 0.8%
Region
------------------------------
South Atlantic $87.04 $81.48 6.8%
East North Central $109.46 $95.32 14.8%
West South Central $84.49 $77.99 8.3%
West North Central $0.00 $0.00 0.0%
Mountain $104.33 $99.69 4.7%
New England $95.32 $95.28 0.0%
Middle Atlantic $113.65 $109.12 4.2%
Segment
------------------------------
Upscale $101.66 $96.31 5.6%
Mid-scale w/ F&B $85.97 $86.00 0.0%
Mid-scale w/o F&B $82.96 $75.65 9.7%
Service
------------------------------
Limited-service $83.39 $76.11 9.6%
Full-service $99.09 $93.70 5.8%
Extended-stay $99.03 $97.13 2.0%
Total $92.48 $86.64 6.7%
------------------------------ -----------------------------
*T
The above presentation includes 41 of the company's 48 wholly
owned hotels as of March 31, 2006, as well as two joint venture hotels
the company held an ownership interest in throughout the periods
presented. These joint venture hotels include the Chapel Hill, N.C.
Courtyard by Marriott and the Ponte Vedra, Fla. Hampton Inn.
The above presentation excludes wholly owned properties which were
sold prior to March 31, 2006, the Hampton Inn & Suites Baltimore Inner
Harbor in Maryland which was acquired in September 2005 and the six
hotels acquired in October 2005. The above presentation also excludes
the Stanley Hotel in Estes Park, Colo., which was acquired in August
2005, in which the company owns a 60 percent interest. These
properties were not open throughout each of the periods presented;
therefore they are excluded from the table above.
-0-
*T
Winston Hotels, Inc.
Three Months Ended March 31, Same-Store Occupancy Statistics
Total for 43 Hotels
Three Months Ended
March 31,
2006 2005 %CH
------------------------
Combined Brands
-------------------------------------
Comfort Inn/Suites & Quality Suites 67.6% 65.0% 4.0%
Courtyard, Fairfield Inn, Residence
Inn 66.9% 66.2% 1.1%
Hampton Inn/Suites 69.0% 66.1% 4.4%
Hilton Garden Inn 68.6% 63.9% 7.4%
Holiday Inn Express/Select 57.1% 58.5% -2.4%
Homewood Suites 78.0% 73.8% 5.7%
Region
-------------------------------------
South Atlantic 70.1% 67.8% 3.4%
East North Central 65.1% 61.6% 5.7%
West South Central 54.5% 52.4% 4.0%
West North Central 0.0% 0.0% 0.0%
Mountain 86.0% 81.8% 5.1%
New England 63.7% 58.8% 8.3%
Middle Atlantic 62.3% 62.8% -0.8%
Segment
-------------------------------------
Upscale 71.4% 68.0% 5.0%
Mid-scale w/ F&B 61.8% 56.5% 9.4%
Mid-scale w/o F&B 66.0% 65.9% 0.2%
Service
-------------------------------------
Limited-service 66.2% 65.8% 0.6%
Full-service 65.3% 61.8% 5.7%
Extended-stay 79.2% 75.0% 5.6%
Total 68.0% 65.7% 3.5%
------------------------------------- -------------------------
*T
The above presentation includes 41 of the company's 48 wholly
owned hotels as of March 31, 2006, as well as two joint venture hotels
the company held an ownership interest in throughout the periods
presented. These joint venture hotels include the Chapel Hill, N.C.
Courtyard by Marriott and the Ponte Vedra, Fla. Hampton Inn.
The above presentation excludes wholly owned properties which were
sold prior to March 31, 2006, the Hampton Inn & Suites Baltimore Inner
Harbor in Maryland which was acquired in September 2005 and the six
hotels acquired in October 2005. The above presentation also excludes
the Stanley Hotel in Estes Park, Colo., which was acquired in August
2005, in which the company owns a 60 percent interest. These
properties were not open throughout each of the periods presented;
therefore they are excluded from the table above.