PALM BEACH, Fla., May 8 /PRNewswire-FirstCall/ -- Innkeepers USA Trust
(NYSE: KPA), a hotel real estate investment trust (REIT) and a leading
owner of upscale extended-stay hotel properties throughout the United
States, today announced results for the three months ended March 31, 2007.
%
Q1 2007 Q1 2006 Change*
--------------------------------------------------------------------------
Total revenue $80,194 $64,226 25 %
--------------------------------------------------------------------------
Net income (loss) applicable to common
shareholders $3,112 $3,200 (3)%
--------------------------------------------------------------------------
Diluted income (loss) per share $0.07 $0.07 0 %
--------------------------------------------------------------------------
Funds from operations (FFO) $14,430 $13,442 7 %
--------------------------------------------------------------------------
Adjusted FFO $14,430 $12,947 11 %
--------------------------------------------------------------------------
FFO per share $0.30 $0.28 7 %
--------------------------------------------------------------------------
Adjusted FFO per share $0.30 $0.27 11 %
--------------------------------------------------------------------------
Earnings before interest, taxes, depreciation
and amortization (EBITDA) $27,377 $22,483 22 %
--------------------------------------------------------------------------
Adjusted EBITDA $27,408 $21,913 25 %
*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 and reconciled to
net income applicable to common shareholders later in this press release.
Adjusted FFO, Adjusted FFO per chare and Adjusted EBITDA exclude other
charges and discontinued operations.
See reconciliations of net income applicable to common shareholders to
FFO per share, Adjusted FFO per share and Adjusted EBITDA included in the
tables of this press release. FFO per share, Adjusted FFO per share, and
Adjusted EBITDA are not GAAP financial measures and are discussed in
further detail in this press release.
In addition, as previously announced, the company noted that it will
not hold a 2007 first quarter earnings conference call as a result of the
proposed acquisition of Innkeepers by affiliates of Apollo Investment
Corporation, pending approval of shareholders in a special meeting to be
held in the second quarter.
Operating Results
Revenue per available room (RevPAR) for the 2007 first quarter at the
company's 68 comparable hotels improved 6.1 percent to $84.72, led by an
8.3 percent increase in average daily rate (ADR) to $120.17, offset by a
150-basis-point decline in occupancy to 70.5 percent. The 2007 first
quarter comparable hotels exclude the two hotels in Montvale and Atlantic
City, N.J. that currently are closed and being converted to the Courtyard
by Marriott brand, and five hotels acquired in the 2006 fourth quarter and
a hotel acquired through an unconsolidated joint venture in the fourth
quarter.
Gross operating profit (GOP) margins (hotel revenue less hotel
expenses, before property taxes and insurance) for the company's comparable
hotels improved 160 basis points in the 2007 first quarter to 43.4 percent.
For the quarter, GOP flowthrough (increase in GOP compared to the increase
in revenue) was 71 percent.
"We had a good, positive start to 2007 as FFO and EBITDA finished just
above our original guidance," said Jeffrey H. Fisher, chief executive
officer and president. "FFO was a penny over our FFO guidance and consensus
analyst expectations, and EBITDA exceeded the top end of our range by a few
hundred thousand dollars. We continued to see healthy margin growth despite
high utility and insurance costs, as our operator continued to push rate in
the quarter and did a good job of driving those increases through to FFO
and EBITDA. At 71 percent, our GOP flowthrough was approximately 15
percentage points above what we projected for the first quarter, and our
operating team should be commended for producing these solid results.
"Our Silicon Valley properties experienced positive RevPAR increases
for the thirteenth consecutive quarter, and remain one of our leading
growth markets," he said. RevPAR at the company's eight Silicon Valley,
Calif. hotels improved 7.5 percent in the first quarter, reflecting a 15.0
percent advance in ADR to $138.74, offset by a 5.1 percentage point
decrease in occupancy to 73.3 percent. Excluding Silicon Valley, RevPAR for
the company's comparable hotels increased 5.8 percent in the quarter.
"In addition, we reported strong results in Seattle, Philadelphia and
Dallas, as RevPAR at our four hotels in each of these cities rose an
average of more than 9 percent in the period."
Residence Inn by Marriott Generation 1 Franchise Extensions
During the quarter, Marriott extended the franchise terms on 21 of
Innkeepers' 29 first generation (Gen 1) Residence Inns through December 31,
2021, an extension of approximately nine years, based on weighted average
number of rooms. Certain of the extensions are subject to receipt of lender
consent.
The company must complete property improvement plans mandated by
Marriott for 23 Gen 1 Residence Inns over the next five years. The company
estimates that the completion of these plans will cost approximately $40
million, or approximately $14,000 per room. This includes approximately $25
million, or $8,700 per room, for required capital replacement cycle
expenditures and approximately $15 million, or $5,300 per room, to
implement Marriott's new "Innfusion" standards. The Innfusion upgrades
include the addition of stainless steel-looking appliances, granite counter
tops, new cabinets and ceramic cook tops.
The company may transfer any of the 23 hotels to a Marriott-approved
transferee. The transferee will obtain the remaining franchise term subject
to completion of a Marriott-approved property improvement plan. If the
transfer occurs before March 23, 2008, the transferee's property
improvement plan will be the same as the company's plan, but the transferee
must complete the plan by the earlier of two years after the transfer or
the date that the company would have had to complete the plan. The terms
for the company's two Sunnyvale, Calif. Gen 1 hotels will remain unchanged
at July 2023.
Marriott will not extend the franchises for six hotels with a total of
468 rooms. The franchise agreements for these hotels will terminate between
June 30, 2007 and December 31, 2010. The EBITDA for these six hotels in
2006 was approximately 3 percent of company EBITDA, and their return on
investment was less than 7 percent in 2006.
Capital Recycling Update
Innkeepers currently has two hotels closed and undergoing renovation
and one new property under construction. The company expects to open the
renovated Montvale, N.J. property as a Courtyard by Marriott in June and
its Atlantic City hotel as a Courtyard by Marriott in September. The under-
construction, 155-suite Embassy Suites in Valencia, Calif. is expected to
open in August.
Fisher noted that after the end of the quarter, the company sold the
independent Sunrise Suites in Tinton Falls, N.J.
Capital Structure
Innkeepers added $20 million in debt under its unsecured line of credit
in the quarter due primarily to the conversion and development costs of the
three hotels noted above, as well as the seasonal cash shortfall that
occurs in operations in the first and fourth quarters. At year-end 2006,
the company's average interest rate on its fixed-rate debt interest was
6.84 percent with an average maturity of 6.1 years. The company's debt to
investment in hotels at cost ratio was approximately 40 percent with 74
percent at fixed rates. The company has $66 million available on its
unsecured line of credit.
Dividend
The company paid a first quarter dividend of $0.23 per common share and
unit. As required by its agreement with affiliates of Apollo Investment
Corporation, the company has suspended any common share and unit dividend
payments pending its acquisition, which is expected to be voted upon by
shareholders in the 2007 second quarter. The company will continue to pay
its preferred share dividends.
Innkeepers USA Trust owns 74 hotels with a total of 9,808 rooms or
suites and one 355-room hotel in which it owns a 49 percent equity interest
in 21 states and Washington, D.C., and focuses on acquiring or developing
premium- branded upscale extended-stay and select-service hotels, the core
of the company's portfolio; selected full-service hotels; and turn-around
opportunities for hotels that operate under or can be converted to the
industry's leading brands. For more information about Innkeepers USA Trust,
visit the company's web site at http://www.innkeepersusa.com.
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 with GAAP (generally accepted accounting
principles). These non- GAAP financial measures are (i) funds from
operations (FFO), (ii) FFO per share, (iii) Adjusted FFO, (iv) Adjusted FFO
per share, (v) net income (loss) (computed in accordance with GAAP) before
interest, taxes, depreciation and amortization, common and preferred
minority interests and preferred dividends (EBITDA), and (vi) Adjusted
EBITDA. The following explains why we believe these measures, when
considered along with earnings per share, calculated in accordance with
GAAP, help provide investors with a more complete understanding of our
financial and operating performance.
FFO As Defined by NAREIT 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, FFO per share,
Adjusted FFO (defined below) and Adjusted FFO per share provide 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 investment trusts use FFO as a measure of
their financial and operating performance, and therefore 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, 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 and impairment losses. FFO, Adjusted FFO,
FFO per share, Adjusted FFO per share are reconciled to net income (loss)
applicable to common shareholders determined in accordance with GAAP in the
accompanying schedules.
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. Many other businesses measure
their performance, in part, by their EBITDA results, which provide another
basis for comparison between companies. 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. EBITDA and Adjusted
EBITDA are reconciled to net income (loss) applicable to common
shareholders determined in accordance with GAAP in the accompanying
schedules.
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, 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, net cash provided by operating
activities, or any other financial and operating performance measure
prescribed by GAAP. These measures should only be used in conjunction with
GAAP measures.
Forward-Looking Statement Safe Harbor
This press release, and other publicly available information on the
company, includes forward looking statements within the meaning of federal
securities law. These statements include terms such as "should," "may,"
"believe" and "estimate," or assumptions, estimates or forecasts about
future hotel and company performance and results, and the company's future
need for capital. Such statements should not be relied on because they
involve risks that could cause actual results to differ materially from the
company's expectations when such statements are made. Some of these risks
are set forth in reports filed from time to time with the SEC and include,
without limitation, (i) the company engages in a number of related party
transactions that create conflicts of interest, (ii) the operational risks
of the hotel business (including decreasing hotel revenues and increasing
hotel expenses), (iii) risks that war, terrorism or similar activities,
widespread health alerts, disruption in oil imports or higher oil prices,
or changes in domestic or international political environments negatively
affect the travel industry and the company, (iv) risk of declines in the
performance and prospects of businesses and industries (e.g., technology,
automotive, aerospace, pharmaceuticals) that are important hotel demand
generators in the company's key markets (e.g. the Silicon Valley, CA,
Northern NJ, Washington, DC, etc.), (v) risk that poor, declining and/or
uncertain 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, (vi)
risk that the company's ability to maintain its properties in competitive
condition becomes prohibitively expensive, (vii) 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, (viii) risk that the company may invest in
hotels of a size or nature (e.g., upscale full service or resort) different
than those it has focused on historically (e.g., upscale extended-stay, and
mid-scale limited service); (ix) risks that the company may be uninsured or
underinsured against property, casualty or other risks that may negatively
affect its properties, or business, including but not limited to
earthquakes or hurricanes; (x) risks related to an increasing focus on
development, including permitting risks, increasing the proportion of
company assets not producing revenue at a given time and risks that
projects cost more, take longer to complete or do not perform as
anticipated; (xi) changes in travel patterns or the prevailing means of
commerce (i.e., e-commerce) may reduce demand for hotels in general or the
company's hotels in particular, (xii) the complex tax rules that the
company must satisfy to qualify as a REIT and the potentially severe
consequences of failing to satisfy such requirements, (xiii) 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 wages, taxes or dividends, compliance with building
codes, compliance with the Americans with Disabilities Act, workers
compensation law changes, the Sarbanes-Oxley law, etc.), and (xiv) approval
of the transaction with Apollo by the shareholders of Innkeepers and the
satisfaction of closing conditions to the transaction. The company
undertakes no obligation to update any forward looking statement to reflect
actual results, changes in the company's expectation, or for any other
reason.
INNKEEPERS USA TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
Three Months Ended
March 31,
--------------------------
2007 2006
--------------------------------------------------------------------------
Revenue:
Hotel operating
Rooms $73,798 $60,195
Food and beverage 3,684 2,078
Telephone 397 360
Other 2,186 1,484
Other 129 109
--------------------------------------------------------------------------
Total revenue 80,194 64,226
--------------------------------------------------------------------------
Expenses:
Hotel operating
Rooms 14,614 12,522
Food and beverage 2,703 1,584
Telephone 848 731
Other 872 723
General and administrative 8,031 6,310
Franchise and marketing fees 5,508 4,124
Amortization of deferred franchise conversion 292 292
Advertising and promotions 2,495 2,225
Utilities 4,097 3,401
Repairs and maintenance 4,040 2,725
Management fees 2,398 1,944
Amortization of deferred lease acquisition 131 131
Insurance 406 408
Corporate
Depreciation 10,923 9,176
Amortization of franchise fees 30 18
Ground rent 149 138
Interest 8,493 5,049
Amortization of loan origination fees 262 218
Property taxes and insurance 4,164 2,997
General and administrative 3,369 2,778
Other charges (income) -- (495)
--------------------------------------------------------------------------
Total expenses 73,825 56,999
--------------------------------------------------------------------------
Income before minority interest and
equity in loss of unconsolidated entity 6,369 7,227
Minority interest, common (68) (55)
Minority interest, preferred -- (1,045)
Equity in loss of unconsolidated entity (224) --
--------------------------------------------------------------------------
Income from continuing operations 6,077 6,127
Loss from discontinued operations (34) (102)
Gain (loss) on disposition of assets (31) 75
--------------------------------------------------------------------------
Net income 6,012 6,100
Preferred share dividends (2,900) (2,900)
--------------------------------------------------------------------------
Net income applicable to common shareholders $3,112 $3,200
--------------------------------------------------------------------------
Earnings per share data:
Basic - continuing operations $0.07 $0.07
--------------------------------------------------------------------------
Basic $0.07 $0.07
--------------------------------------------------------------------------
Basic - weighted average shares 46,839,919 42,864,826
--------------------------------------------------------------------------
Diluted - continuing operations $0.07 $0.07
--------------------------------------------------------------------------
Diluted $0.07 $0.07
--------------------------------------------------------------------------
Diluted - weighted average shares 48,245,178 43,298,181
--------------------------------------------------------------------------
INNKEEPERS USA TRUST
CALCULATION OF FFO, ADJUSTED FFO, EBITDA, ADJUSTED EBITDA AND
RECONCILIATION TO NET INCOME APPLICABLE TO COMMON SHAREHOLDERS
(in thousands, except share and per share data)
Three Months Ended
March 31,
2007 2006
----------------------------
CALCULATION OF FFO
Net income applicable to common shareholders $3,112 $3,200
Depreciation 10,923 9,176
Depreciation included in discontinued
operations 44 41
Depreciation in unconsolidated entity 252 --
Loss (gain) on disposition of assets 31 (75)
Minority interest, preferred -- 1,045
Minority interest, common 68 55
----------------------------
Diluted FFO $14,430 $13,442
----------------------------
Weighted average number of common
shares and common share equivalents 48,245,178 47,766,481
----------------------------
Diluted FFO per share $0.30 $0.28
----------------------------
FFO 14,430 13,442
Other charges -- (495)
----------------------------
Adjusted FFO $14,430 $12,947
----------------------------
Adjusted FFO per share $0.30 $0.27
----------------------------
Three Months Ended
March 31,
2007 2006
----------------------------
CALCULATION OF EBITDA
Net income applicable to common shareholders $3,112 $3,200
Interest 8,493 5,049
Depreciation and amortization 12,220 10,193
Depreciation included in discontinued
operations 44 41
Depreciation, amortization and
interest in unconsolidated entity 540 --
Minority interest, common 68 55
Minority interest, preferred -- 1,045
Preferred share dividends 2,900 2,900
----------------------------
EBITDA $27,377 $22,483
----------------------------
Other charges -- (495)
Loss (gain) on disposition of assets 31 (75)
----------------------------
Adjusted EBITDA $27,408 $21,913
----------------------------
INNKEEPERS USA TRUST
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
March 31, December 31,
2007 2006
-------------------------------------------------------------------------
ASSETS
Investment in hotels:
Land and improvements $182,417 $182,382
Buildings and improvements 969,198 959,030
Furniture and equipment 123,795 124,008
Renovations in process 49,344 33,778
Hotels held for sale, net 4,751 4,734
Hotels under development 13,389 8,688
-------------------------------------------------------------------------
1,342,894 1,312,620
Accumulated depreciation (273,926) (263,381)
-------------------------------------------------------------------------
Net investment in hotels 1,068,968 1,049,239
Cash and cash equivalents 13,647 10,485
Restricted cash and cash equivalents 7,049 7,064
Investment in unconsolidated entity 3,941 4,132
Accounts receivable, net 7,339 5,991
Prepaid expenses 3,174 4,249
Deferred and other 20,363 20,846
-------------------------------------------------------------------------
Total assets $1,124,481 $1,102,006
-------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Debt $533,735 $515,290
Accounts payable and accrued expenses 26,567 26,987
Payable to manager 878 176
Franchise conversion fee obligations 9,531 9,660
Distributions payable 13,185 13,110
-------------------------------------------------------------------------
Total liabilities 583,896 565,223
Minority interest in Partnership 5,420 19,112
Shareholders' equity:
Preferred shares, $0.01 par value,
20,000,000 shares authorized,
5,800,000 shares issued and outstanding 145,000 145,000
Common shares, $0.01 par value,
100,000,000 shares authorized,
47,805,765 and 45,732,800 issued and
outstanding, respectively 478 457
Additional paid-in capital 532,739 507,384
Distributions in excess of earnings (143,052) (135,170)
-------------------------------------------------------------------------
Total shareholders' equity 535,165 517,671
-------------------------------------------------------------------------
Total liabilities and shareholders' equity $1,124,481 $1,102,006
-------------------------------------------------------------------------
INNKEEPERS USA TRUST
DEBT COMPOSITION
As of March 31, 2007
(outstanding balance in thousands)
Stated
Outstanding Interest Maturity Encumbered
DEBT Balance Rate Date Properties
--------------------------------------------------------------------------
Unsecured Line of Credit(1) $127,000 6.57% September 2008 --
Industrial Revenue Bonds(1) 10,000 3.65% December 2014 --
Term Loan #1 21,640 8.17% October 2007 8
Term Loan #2 33,098 8.15% March 2009 8
Term Loan #3 27,322 7.02% April 2010 7
Term Loan #4 44,098 7.16% October 2009 6
Term Loan #5 48,560 7.75% January 2011 6
Mortgage Loans 12,203 10.35% June 2010 1
Mortgage Loans 75,000 6.03% September 2016 3
Mortgage Loans 13,700 5.41% July 2010 1
Mortgage Loans 120,000 5.98% October 2016 3
Adjustments (4) 1,114 -- -- --
--------
TOTAL $533,735 6.78%(2) 6.1 years(3) 43 (5)
========
(1) Variable rated debt. The stated interest rate of the industrial
revenue bonds includes an annual letter of credit fee of 1.25%
(2) Weighted average calculated using the stated interest rate
(3) Weighted average maturity of debt, excluding the unsecured line of
credit
(4) Adjustment to record $13 million mortgage at a fair market interest
rate of 7% (the stated interest rate is 10.35%)
(5) Does not include the Sheraton Raleigh, of which we own a 49% interest,
which is encumbered but not consolidated
INNKEEPERS USA TRUST
OTHER DATA
(in thousands, except shares data)
March 31, March 31,
2007 2006
----------------------------
CAPITALIZATION
Common share market capitalization $789,000 $741,000
----------------------------
Total equity market capitalization $935,000 $950,000
----------------------------
Common share closing price $16.28 $16.95
----------------------------
Common share dividend(1) $0.81 $0.55
----------------------------
Common share dividend yield(1) 5.0% 3.2%
----------------------------
Preferred share closing price $25.11 $24.79
----------------------------
Preferred share dividend(2) $2.00 $2.00
----------------------------
Preferred share dividend yield(2) 8.0% 8.1%
----------------------------
DEBT COVERAGE
Debt weighted average interest rate 6.8% 7.2%
----------------------------
Debt to investment in hotel
properties, at cost 40% 27%
----------------------------
Debt and preferred shares to
investment in hotel properties 51% 41%
----------------------------
LIQUIDITY/FLEXIBILITY
Debt due 2006 -- $4,000
----------------------------
Debt due 2007 $25,000 $103,000
----------------------------
Debt due 2008 $133,000 $5,000
----------------------------
Debt due 2009 and thereafter $375,735 $168,475
----------------------------
Unencumbered hotel assets(3) 57% 48%
----------------------------
Unsecured Line of Credit
outstanding balance $127,000 $76,574
----------------------------
Unsecured Line of Credit
available balance(4) $66,500 $46,926
----------------------------
SHARES AND UNITS OUTSTANDING
Common Shares 47,805,765 43,023,202
----------------------------
Common Partnership Units 665,981 666,891
----------------------------
Preferred Partnership Units -- 3,801,409
----------------------------
Preferred Shares 5,800,000 5,800,000
----------------------------
(1) Regular common share dividends declared for the trailing twelve
months ended March 31, 2007 and 2006
(2) Regular annual preferred share dividends
(3) Based upon the number of hotels, excluding the Sheraton Raleigh
(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 $205 million unsecured
line of credit available balance has been reduced by $11.5 million in
letters of credit.
INNKEEPERS USA TRUST
HOTEL OPERATING RESULTS (UNAUDITED)
Three Months Ended
March 31, %
March 31, 2007 2007 2006 Inc (dec)
-----------------------------------------
PORTFOLIO(1)
--------------------------------
Average Daily Rate $120.17 $110.97 8.29%
-------------------------
Occupancy 70.50% 71.95% -2.02%
-------------------------
RevPAR $84.72 $79.85 6.10%
-------------------------
Number of hotel properties 68
------
Percent of total rooms 100.0%
------
Percent of room revenue(2) 100.0%
------
BY SEGMENT
--------------------------------
Upscale Extended Stay
Average Daily Rate $119.01 $109.35 8.84%
-------------------------
Occupancy 73.83% 76.20% -3.11%
-------------------------
RevPAR $87.87 $83.33 5.46%
-------------------------
Number of hotel properties 49
------
Percent of total rooms 71.1%
------
Percent of room revenue(2) 73.1%
------
Upscale(1)
Average Daily Rate $153.11 $139.78 9.54%
-------------------------
Occupancy 61.91% 63.33% -2.25%
-------------------------
RevPAR $94.79 $88.52 7.08%
-------------------------
Number of hotel properties 5
------
Percent of total rooms 8.2%
------
Percent of room revenue(2) 10.1%
------
Mid Priced(1)
Average Daily Rate $110.54 $104.77 5.50%
-------------------------
Occupancy 62.84% 61.15% 2.76%
-------------------------
RevPAR $69.46 $64.07 8.41%
-------------------------
Number of hotel properties 14
------
Percent of total rooms 20.7%
------
Percent of room revenue(2) 16.8%
------
BY FRANCHISE AFFILIATION
--------------------------------
Residence Inn
Average Daily Rate $119.59 $109.53 9.18%
-------------------------
Occupancy 73.04% 76.07% -3.99%
-------------------------
RevPAR $87.35 $83.32 4.83%
-------------------------
Number of hotel properties 42
------
Percent of total rooms 60.5%
------
Percent of room revenue(2) 61.7%
------
Hyatt Summerfield Suites
Average Daily Rate $107.96 $102.62 5.20%
-------------------------
Occupancy 77.25% 75.25% 2.65%
-------------------------
RevPAR $83.40 $77.22 7.99%
-------------------------
Number of hotel properties 6
------
Percent of total rooms 8.9%
------
Percent of room revenue(2) 8.7%
------
Hampton Inn(1)
Average Daily Rate $111.34 $104.50 6.54%
-------------------------
Occupancy 61.40% 58.54% 4.89%
-------------------------
RevPAR $68.36 $61.18 11.74%
-------------------------
Number of hotel properties 12
------
Percent of total rooms 17.9%
------
Percent of room revenue(2) 14.3%
------
BY MANAGEMENT COMPANY
--------------------------------
Innkeepers Hospitality Management(1)(3)(4)
Average Daily Rate $120.47 $111.16 8.38%
-------------------------
Occupancy 70.99% 72.28% -1.78%
-------------------------
RevPAR $85.53 $80.34 6.45%
-------------------------
Number of hotel properties 67
------
Percent of total rooms 97.4%
------
Percent of room revenue(2) 98.4%
------
Third Party Managed
Average Daily Rate $104.45 $102.51 1.89%
-------------------------
Occupancy 51.81% 59.52% -12.96%
-------------------------
RevPAR $54.11 $61.01 -11.31%
-------------------------
Number of hotel properties 1
------
Percent of total rooms 2.6%
------
Percent of room revenue(2) 1.6%
------
BY GEOGRAPHIC REGION
--------------------------------
New England [ME, NH, VT, MA, CT, RI]
Average Daily Rate $110.60 $107.54 2.84%
-------------------------
Occupancy 57.58% 59.90% -3.88%
-------------------------
RevPAR $63.68 $64.42 -1.15%
-------------------------
Number of hotel properties 5
------
Percent of total rooms 4.4%
------
Percent of room revenue(2) 4.0%
------
Middle Atlantic(1) [NY, NJ, PA]
Average Daily Rate $122.71 $119.12 3.01%
-------------------------
Occupancy 68.02% 64.53% 5.41%
-------------------------
RevPAR $83.46 $76.87 8.59%
-------------------------
Number of hotel properties 11
------
Percent of total rooms 16.2%
------
Percent of room revenue(2) 15.8%
------
South Atlantic(1) [DE, MD, WV, DC, VA,
NC, SC, GA, FL]
Average Daily Rate $127.92 $119.93 6.67%
-------------------------
Occupancy 69.81% 72.20% -3.31%
-------------------------
RevPAR $89.30 $86.58 3.13%
-------------------------
Number of hotel properties 15
------
Percent of total rooms 22.7%
------
Percent of room revenue(2) 23.7%
------
East North Central [OH, MI, IN, IL, WI]
Average Daily Rate $98.95 $94.04 5.23%
-------------------------
Occupancy 65.31% 68.73% -4.98%
-------------------------
RevPAR $64.63 $64.63 0.00%
-------------------------
Number of hotel properties 12
------
Percent of total rooms 15.9%
------
Percent of room revenue(2) 12.0%
------
East South Central(1) [KY, TN, AL, MS]
Average Daily Rate $98.71 $94.95 3.96%
-------------------------
Occupancy 72.48% 63.00% 15.05%
-------------------------
RevPAR $71.54 $59.82 19.60%
-------------------------
Number of hotel properties 3
------
Percent of total rooms 4.2%
------
Percent of room revenue(2) 3.5%
------
West North Central [MN, IA, MO, KS, NE,
SD, ND]
Average Daily Rate $89.05 $83.54 6.59%
-------------------------
Occupancy 73.33% 84.69% -13.41%
-------------------------
RevPAR $65.30 $70.75 -7.70%
-------------------------
Number of hotel properties 1
------
Percent of total rooms 0.8%
------
Percent of room revenue(2) 0.6%
------
West South Central [AR, LA, OK, TX]
Average Daily Rate $110.95 $100.00 10.95%
-------------------------
Occupancy 80.97% 81.43% -0.58%
-------------------------
RevPAR $89.83 $81.43 10.32%
-------------------------
Number of hotel properties 5
------
Percent of total rooms 8.3%
------
Percent of room revenue(2) 8.7%
------
Mountain [MT, ID, WY, CO, UT, NM, AZ, NV]
Average Daily Rate $106.62 $92.60 15.13%
-------------------------
Occupancy 69.69% 74.60% -6.57%
-------------------------
RevPAR $74.31 $69.08 7.57%
-------------------------
Number of hotel properties 2
------
Percent of total rooms 3.4%
------
Percent of room revenue(2) 3.0%
------
Pacific [WA, OR, CA, AK, HI]
Average Daily Rate $135.29 $118.52 14.15%
-------------------------
Occupancy 75.21% 79.02% -4.82%
-------------------------
RevPAR $101.74 $93.65 8.64%
-------------------------
Number of hotel properties 14
------
Percent of total rooms 24.2%
------
Percent of room revenue(2) 28.8%
------
BY SELECTED MSA
--------------------------------
Atlanta
Average Daily Rate $115.80 $109.82 5.45%
-------------------------
Occupancy 72.33% 76.13% -4.98%
-------------------------
RevPAR $83.76 $83.60 0.19%
-------------------------
Number of hotel properties 2
------
Percent of total rooms 3.4%
------
Percent of room revenue(2) 3.3%
------
Boston
Average Daily Rate $112.50 $110.29 2.00%
-------------------------
Occupancy 46.24% 44.23% 4.56%
-------------------------
RevPAR $52.03 $48.78 6.66%
-------------------------
Number of hotel properties 2
------
Percent of total rooms 1.2%
------
Percent of room revenue(2) 1.3%
------
Chicago
Average Daily Rate $105.82 $95.93 10.31%
-------------------------
Occupancy 59.93% 65.22% -8.10%
-------------------------
RevPAR $63.42 $62.56 1.37%
-------------------------
Number of hotel properties 4
------
Percent of total rooms 6.7%
------
Percent of room revenue(2) 5.0%
------
Dallas/Ft. Worth
Average Daily Rate $98.95 $90.26 9.63%
-------------------------
Occupancy 80.18% 80.36% -0.22%
-------------------------
RevPAR $79.34 $72.53 9.39%
-------------------------
Number of hotel properties 4
------
Percent of total rooms 6.5%
------
Percent of room revenue(2) 6.0%
------
Denver
Average Daily Rate $106.62 $92.60 15.13%
-------------------------
Occupancy 69.69% 74.60% -6.57%
-------------------------
RevPAR $74.31 $69.08 7.57%
-------------------------
Number of hotel properties 2
------
Percent of total rooms 3.4%
------
Percent of room revenue(2) 3.0%
------
Detroit
Average Daily Rate $96.33 $100.55 -4.20%
-------------------------
Occupancy 67.61% 70.78% -4.48%
-------------------------
RevPAR $65.12 $71.17 -8.50%
-------------------------
Number of hotel properties 3
------
Percent of total rooms 4.3%
------
Percent of room revenue(2) 3.3%
------
Hartford
Average Daily Rate $113.35 $110.99 2.12%
-------------------------
Occupancy 67.74% 70.51% -3.92%
-------------------------
RevPAR $76.79 $78.26 -1.89%
-------------------------
Number of hotel properties 2
------
Percent of total rooms 2.3%
------
Percent of room revenue(2) 2.1%
------
Philadelphia
Average Daily Rate $108.47 $103.57 4.74%
-------------------------
Occupancy 75.61% 72.08% 4.89%
-------------------------
RevPAR $82.01 $74.65 9.86%
-------------------------
Number of hotel properties 4
------
Percent of total rooms 5.5%
------
Percent of room revenue(2) 5.3%
------
Richmond
Average Daily Rate $108.00 $102.51 5.36%
-------------------------
Occupancy 77.87% 74.03% 5.20%
-------------------------
RevPAR $84.11 $75.88 10.84%
-------------------------
Number of hotel properties 2
------
Percent of total rooms 2.2%
------
Percent of room revenue(2) 2.2%
------
San Francisco/San Jose/Oakland
(Silicon valley)
Average Daily Rate $138.74 $120.65 14.99%
-------------------------
Occupancy 73.29% 78.43% -6.55%
-------------------------
RevPAR $101.69 $94.63 7.46%
-------------------------
Number of hotel properties 8
------
Percent of total rooms 14.3%
------
Percent of room revenue(2) 17.0%
------
Seattle/Portland
Average Daily Rate $136.69 $114.37 19.52%
-------------------------
Occupancy 73.62% 80.36% -8.38%
-------------------------
RevPAR $100.64 $91.91 9.50%
-------------------------
Number of hotel properties 4
------
Percent of total rooms 6.0%
------
Percent of room revenue(2) 7.1%
------
Washington, D.C.(1)
Average Daily Rate $152.76 $144.08 6.02%
-------------------------
Occupancy 62.78% 66.28% -5.29%
-------------------------
RevPAR $95.90 $95.50 0.42%
-------------------------
Number of hotel properties 4
------
Percent of total rooms 6.4%
------
Percent of room revenue(2) 7.2%
------
(1) Hotel operating results exclude one hotel property acquired in June
2003 which is closed for conversion to a Courtyard hotel, one hotel
property acquired in February 2005 which is closed for conversion to a
Courtyard hotel, and the five hotels acquired during the fourth
quarter of 2006.
(2) Includes the Sunrise Suites Tinton Falls, NJ.
Contact:
Dennis Craven (Company) Jerry Daly or Carol McCune
Chief Financial Officer Daly Gray (Media)
(561) 227-1302 (703) 435-6293
SOURCE Innkeepers USA Trust
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Related links:
http://www.innkeepersusa.com/
CONTACT:
Company, Dennis Craven, Chief Financial
Officer of Innkeepers USA Trust, +1-561-227-1302; or Media, Jerry
Daly or Carol McCune, both of Daly Gray, +1-703-435-6293
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