CHICAGO, June 2, 2014 /PRNewswire/ -- Strategic
Hotels & Resorts, Inc. (the "Company") (NYSE: BEE) today
announced that management is raising its guidance ranges for full
year 2014 Comparable EBITDA and Comparable FFO per fully diluted
share to reflect the closing of the common equity offering, the
acquisition of the remaining 63.6 percent interest in the Hotel del
Coronado, which is expected to close in early June, and the
redemption of the 8.25% Series C Cumulative Redeemable Preferred
Stock, which is expected to be completed in early July.
For the year ending December 31,
2014, the Company anticipates that Comparable EBITDA will be
in the range of $230.0 million to $250.0
million and Comparable FFO in the range of $0.59 and $0.68 per
fully diluted share. Management is also reaffirming its
guidance for Total United States RevPAR and Total RevPAR growth in
the range between 5.0 percent to 7.0 percent, and EBITDA margin
expansion of 120-200 basis points.
Guidance
Metrics
|
Previous
Range
|
|
Revised
Range
|
RevPAR
|
5.0% -
7.0%
|
|
5.0% -
7.0%
|
Total
RevPAR
|
5.0% -
7.0%
|
|
5.0% -
7.0%
|
EBITDA Margin
expansion
|
120 – 200 basis
points
|
|
120 – 200 basis
points
|
Comparable
EBITDA
|
$210M -
$230M
|
|
$230M -
$250M
|
Comparable FFO per
diluted share
|
$0.57 -
$0.67
|
|
$0.59 -
$0.68
|
Note: The Comparable FFO per fully diluted share range
reflects the recently announced sale of 41.4 million shares of
common stock at $10.50 per share,
including 5.4 million shares of common stock issued pursuant to the
exercise in full of the underwriters' over-allotment option
About the Company
Strategic Hotels & Resorts, Inc. is a real estate investment
trust (REIT) which owns and provides value enhancing asset
management of high-end hotels and resorts in the United States and Europe. The company currently has ownership
interests in 16 properties with an aggregate of 7,862 rooms and
835,000 square feet of multi-purpose meeting and banqueting
space.
This press release contains forward-looking statements about
the Company. Except for historical information, the matters
discussed in this press release, including the Company's intended
use of proceeds, are forward-looking statements subject to certain
risks and uncertainties. Actual results could differ materially
from the Company's projections. Factors that may contribute to
these differences include, but are not limited to the
following: conditions to closing the acquisition of the
Hotel del Coronado may not be satisfied, closing on the acquisition
of the Hotel del Coronado may be delayed, the effects of economic
conditions and disruption in financial markets upon business and
leisure travel and the hotel markets in which the Company invests;
the Company's liquidity and refinancing demands; the Company's
ability to obtain, refinance or extend maturing debt; the Company's
ability to maintain compliance with covenants contained in its debt
facilities; stagnation or deterioration in economic and market
conditions, particularly impacting business and leisure travel
spending in the markets where the Company's hotels operate and in
which the Company invests, including luxury and upper upscale
product; general volatility of the capital markets and the market
price of the Company's shares of common stock; availability of
capital; the Company's ability to dispose of properties in a manner
consistent with its investment strategy and liquidity needs;
hostilities and security concerns, including future terrorist
attacks, or the apprehension of hostilities, in each case that
affect travel within or to the United
States, Germany or other
countries where the Company invests; difficulties in identifying
properties to acquire and completing acquisitions; the Company's
failure to maintain effective internal control over financial
reporting and disclosure controls and procedures; risks related to
natural disasters; increases in interest rates and operating costs,
including insurance premiums and real property taxes; delays and
cost-overruns in construction and development; marketing challenges
associated with entering new lines of business or pursuing new
business strategies; the Company's failure to maintain its status
as a REIT; changes in the competitive environment in the Company's
industry and the markets where the Company invests; changes in real
estate and zoning laws or regulations; legislative or regulatory
changes, including changes to laws governing the taxation of REITs;
changes in generally accepted accounting principles, policies and
guidelines; and litigation, judgments or settlements.
Additional risks are discussed in the Company's filings with
the SEC, including those appearing under the heading "Item 1A. Risk
Factors" in the Company's most recent Form 10-K and subsequent Form
10-Qs. Although the Company believes the expectations reflected in
such forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be
attained. The forward-looking statements are made as of the date of
this press release, and the Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise, except as
required by law.
The following tables reconcile projected 2014 net income
attributable to common shareholders to projected Comparable EBITDA,
Comparable FFO and Comparable FFO per diluted share (in millions,
except per share data):
|
Low
Range
|
|
High
Range
|
Net Income
Attributable to Common Shareholders
|
$289.5
|
|
$309.5
|
Depreciation and
Amortization
|
134.9
|
|
134.9
|
Interest
Expense
|
86.7
|
|
86.7
|
Income
Taxes
|
3.1
|
|
3.1
|
Non-controlling
Interests
|
1.3
|
|
1.3
|
Adjustments from
Consolidated Affiliates
|
(16.1)
|
|
(16.1)
|
Adjustments from
Unconsolidated Affiliates
|
7.9
|
|
7.9
|
Preferred Shareholder
Dividends
|
13.7
|
|
13.7
|
Preferred Stock
Redemption Liability
|
3.7
|
|
3.7
|
Realized Portion of
Deferred Gain on Sale Leasebacks
|
(0.2)
|
|
(0.2)
|
Gain on Sale of
Asset
|
(155.8)
|
|
(155.8)
|
Gain on Consolidation
of Affiliate
|
(141.1)
|
|
(141.1)
|
Other
Adjustments
|
2.4
|
|
2.4
|
Comparable
EBITDA
|
$230.0
|
|
$250.0
|
|
Low
Range
|
|
High
Range
|
Net Income
Attributable to Common Shareholders
|
$289.5
|
|
$309.5
|
Depreciation and
Amortization
|
134.1
|
|
134.1
|
Realized Portion of
Deferred Gain on Sale Leasebacks
|
(0.2)
|
|
(0.2)
|
Gain on Sale of
Asset
|
(155.8)
|
|
(155.8)
|
Gain on Consolidation
of Affiliate
|
(141.1)
|
|
(141.1)
|
Non-controlling
Interests
|
1.2
|
|
1.2
|
Adjustments from
Consolidated Affiliates
|
(8.6)
|
|
(8.6)
|
Adjustments from
Unconsolidated Affiliates
|
4.8
|
|
4.8
|
Interest Rate Swap
OCI Amortization
|
8.9
|
|
8.9
|
Preferred Stock
Redemption Liability
|
3.7
|
|
3.7
|
Other
Adjustments
|
2.1
|
|
2.1
|
Comparable
FFO
|
$138.6
|
|
$158.6
|
Comparable FFO per
Diluted Share
|
$0.59
|
|
$0.68
|
SOURCE Strategic Hotels & Resorts, Inc.