CHICAGO, May 6 /PRNewswire-FirstCall/ -- Strategic Hotels &
Resorts (NYSE: BEE) today reported results for the first quarter
ended March 31, 2009. First Quarter Recap -- Comparable funds from
operations (Comparable FFO) was a loss of $0.15 per diluted share
compared with income of $0.30 per diluted share in the prior year.
-- Quarterly Comparable EBITDA was $22.8 million compared with
$55.7 million in the prior year. -- North American total revenue
per available room (Total RevPAR) decreased 22.8 percent and
revenue per available room (RevPAR) decreased 24.1 percent driven
by a 10.1 percentage point decrease in occupancy and an 11.1
percent decrease in average daily rate (ADR). Non-rooms revenue
declined by 22.0 percent. -- European Total RevPAR decreased 26.1
percent (12.3 percent in constant dollars) and RevPAR decreased
29.3 percent (14.4 percent in constant dollars). -- North American
gross operating profit (GOP) and EBITDA margins contracted 560
basis points and 630 basis points, respectively. North American
EBITDA per room declined 43.7 percent. Chief Executive Officer
Laurence Geller remarked, "Despite continued pressures on the
luxury market, we are executing plans on all of our key strategic
fronts. Our revenue growth continues to outperform comparable
national indices for luxury hotels. Operating controls at our
hotels are significantly reducing costs while making substantial
improvements in productivity. And, we have made great strides
toward right sizing our corporate overhead for today's business
realities with a run rate reduction over 20% from levels in 2007.
We also have confidence in the structural elements of our balance
sheet with no maturing debt until 2011 and liquidity provided
through a durable amended bank credit facility. "As we move
forward, we continue to focus on further enhancing our liquidity
through aggressive and innovative asset management, limiting
capital outlays, and seeking opportunities to raise efficiently
priced equity through disciplined processes and carefully executed
hotel sales." Financial Results The company reported first quarter
2009 financial results as follows: -- Net loss attributable to
common shareholders was $43.2 million, or $0.57 per diluted share,
for the first quarter of 2009, compared with net loss attributable
to common shareholders of $7.9 million, or $0.11 per diluted share,
for the first quarter of 2008. -- Comparable EBITDA was $22.8
million compared with $55.7 million for the first quarter of 2008.
-- FFO was a loss of $10.6 million, or $0.14 per diluted share,
compared with income of $18.9 million, or $0.25 per diluted share,
in the first quarter of 2008. Comparable FFO was a loss of $11.4
million, or $0.15 per diluted share, compared with income of $22.6
million, or $0.30 per diluted share, in the first quarter of 2008.
Bank Credit Facility Amendment During the first quarter, the
company completed an amendment to its bank credit facility which
amended certain terms and covenants in order to provide protection
against the deteriorating operating environment. The amended terms
include a reduction in total facility size to $400.0 million, an
increase in pricing to LIBOR plus 375 basis points and security
interests in five previously unsecured hotel properties. In return,
the company negotiated a reduction of the minimum corporate fixed
charge coverage ratio to 0.9 times and an increase in maximum
corporate leverage to 80%. The maturity date of the facility
remains unchanged with an initial maturity in March 2011 and a one
year extension option available upon achieving certain specified
performance criteria. Earnings Call The company will conduct its
first quarter 2009 conference call for investors and other
interested parties on May 7, 2009 at 10:00 a.m. Eastern Time (ET).
Interested individuals are invited to listen to the call by
telephone at 888-713-4199 (toll international: 617-213-4861) with
pass code 24417368. To participate on the web cast, log on to
http://www.strategichotels.com/ or
https://www.theconferencingservice.com/prereg/key.process?key=PPBXE66T7
15 minutes before the call to download the necessary software. For
those unable to listen to the call live, a taped rebroadcast will
be available beginning at 1:00 p.m. ET on May 7, 2009, through
11:59 p.m. ET on May 14, 2009. To access the replay, dial
888-286-8010 (toll international: 617-801-6888) and request replay
pin number 33077752. A replay of the call will also be available on
the Internet at http://www.strategichotels.com/ or
http://www.earnings.com/ for 30 days after the call. The company
also produces supplemental financial data that includes detailed
information regarding its operating results. This supplemental data
is considered an integral part of this earnings release. These
materials are available on the Strategic Hotels & Resorts'
website at http://www.strategichotels.com/ within the first quarter
information section. Portfolio Definitions North American hotel
comparisons for the first quarter 2009 are derived from the
company's hotel portfolio at March 31, 2009, consisting of
properties in which operations are included in the consolidated
results of the company. European hotel comparisons for the first
quarter 2009 are derived from the company's European owned and
leased hotel properties at March 31, 2009. 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,
Mexico and Europe. The company currently has ownership interests in
19 properties with an aggregate of 8,358 rooms. For a list of
current properties and for further information, please visit the
company's website at http://www.strategichotels.com/. This press
release contains forward-looking statements about Strategic Hotels
& Resorts (the "Company"). Except for historical information,
the matters discussed in this press release 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: economic conditions generally and in
the real estate market specifically, including further
deterioration of the current global economic downturn and the
extent of its effect on business and leisure travel and the lodging
industry; demand for hotel rooms in our current and proposed market
areas; outbreak of contagious diseases such as the H1N1 virus;
availability of capital; ability to obtain or refinance debt or
comply with covenants contained in our debt facilities; rising
interest rates and operating costs; rising insurance premiums; cash
available for capital expenditures; competition; ability to dispose
of existing properties in a manner consistent with our disposition
strategy; delays and cost overruns in construction and development;
demand for hotel condominiums; marketing challenges associated with
entering new lines of business; risks related to natural disasters;
the effect of threats of terrorism and increased security
precautions on travel patterns and hotel bookings; the outbreak of
hostilities and international political instability; legislative or
regulatory changes, including changes to laws governing the
taxation of REITs; and changes in generally accepted accounting
principles, policies and guidelines applicable to REITs. Additional
risks are discussed in the Company's filings with the Securities
and Exchange Commission, including those appearing in the Company's
most recent form 10-K and subsequent 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 we undertake no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise. Strategic Hotels &
Resorts, Inc. and Subsidiaries (SHR) Consolidated Statements of
Operations (in thousands, except per share data) Three Months Ended
March 31, --------- 2009 2008 ---- ---- Revenues: Rooms $96,586
$130,280 Food and beverage 57,106 79,124 Other hotel operating
revenue 25,791 27,154 ------ ------ 179,483 236,558 Lease revenue
1,120 1,287 ----- ----- Total revenues 180,603 237,845 -------
------- Operating Costs and Expenses: Rooms 27,289 33,125 Food and
beverage 42,827 56,743 Other departmental expenses 55,238 62,562
Management fees 6,763 9,609 Other hotel expenses 13,782 16,042
Lease expense 3,966 4,327 Depreciation and amortization 34,103
27,603 Impairment losses and other charges 459 - Corporate expenses
10,424 7,430 ------ ----- Total operating costs and expenses
194,851 217,441 ------- ------- Operating (loss) income (14,248)
20,404 Interest expense (23,966) (22,842) Interest income 414 595
Loss on early extinguishment of debt (883) - Equity in earnings
(losses) of joint ventures 139 (779) Foreign currency exchange gain
(loss) 2,015 (3,209) Other expenses, net (39) (262) --- ---- Loss
before income taxes, loss on sale of noncontrolling interests in
hotel properties and discontinued operations (36,568) (6,093)
Income tax expense (100) (212) ---- ---- Loss before loss on sale
of noncontrolling interests in hotel properties and discontinued
operations (36,668) (6,305) Loss on sale of noncontrolling
interests in hotel properties - (5) --- --- Loss from continuing
operations (36,668) (6,310) Income from discontinued operations,
net of tax - 5,200 --- ----- Net loss $(36,668) $(1,110) Net loss
attributable to the noncontrolling interests in SHR's operating
partnership 446 2 Net loss attributable to the noncontrolling
interests in consolidated affiliates 753 897 --- --- Net loss
attributable to SHR (35,469) (211) Preferred shareholder dividends
(7,721) (7,721) ------ ------ Net loss attributable to SHR common
shareholders $(43,190) $(7,932) ======== ======= Basic and Diluted
Loss Per Share: Loss from continuing operations attributable to SHR
common shareholders $(0.57) $(0.18) Income from discontinued
operations attributable to SHR common shareholders - 0.07 --- ----
Net loss attributable to SHR common shareholders $(0.57) $(0.11)
====== ====== Weighted average common shares outstanding 75,166
74,950 ====== ====== Strategic Hotels & Resorts, Inc. and
Subsidiaries (SHR) Consolidated Balance Sheets (in thousands,
except share data) March 31, December 31, 2009 2008 ---- ----
Assets Investment in hotel properties, net $2,358,243 $2,383,860
Goodwill 118,002 120,329 Intangible assets, net of accumulated
amortization of $3,414 and $3,096 31,445 32,277 Investment in joint
ventures 81,584 82,122 Cash and cash equivalents 128,283 80,954
Restricted cash and cash equivalents 28,796 37,358 Accounts
receivable, net of allowance for doubtful accounts of $2,477 and
$2,203 64,180 70,945 Deferred financing costs, net of accumulated
amortization of $6,981 and $6,655 16,566 10,375 Deferred tax assets
36,246 38,260 Other assets 46,987 52,687 ------ ------ Total assets
$2,910,332 $2,909,167 ========== ========== Liabilities and
Shareholders' Equity Liabilities: Mortgages and other debt payable
$1,292,896 $1,301,535 Exchangeable senior notes, net of discount
166,198 165,155 Bank credit facility 296,000 206,000 Accounts
payable and accrued expenses 240,991 281,918 Deferred tax
liabilities 31,232 34,236 Deferred gain on sale of hotels 97,800
104,251 ------ ------- Total liabilities 2,125,117 2,093,095
Noncontrolling interests in SHR's operating partnership 5,096 5,330
Equity: SHR's shareholders' equity: 8.50% Series A Cumulative
Redeemable Preferred Stock ($0.01 par value; 4,488,750 shares
issued and outstanding; liquidation preference $25.00 per share)
108,206 108,206 8.25% Series B Cumulative Redeemable Preferred
Stock ($0.01 par value; 4,600,000 shares issued and outstanding;
liquidation preference $25.00 per share) 110,775 110,775 8.25%
Series C Cumulative Redeemable Preferred Stock ($0.01 par value;
5,750,000 shares issued and outstanding; liquidation preference
$25.00 per share) 138,940 138,940 Common shares ($0.01 par value;
150,000,000 common shares authorized; 74,971,069 and 74,410,012
common shares issued and outstanding) 750 744 Additional paid-in
capital 1,233,077 1,228,774 Accumulated deficit (745,732) (710,263)
Accumulated other comprehensive loss (92,277) (93,637) -------
------- Total SHR's shareholders' equity 753,739 783,539 -------
------- Noncontrolling interests in consolidated affiliates 26,380
27,203 ------ ------ Total equity 780,119 810,742 ------- -------
Total liabilities and equity $2,910,332 $2,909,167 ==========
========== Strategic Hotels & Resorts, Inc. and Subsidiaries
(SHR) FINANCIAL HIGHLIGHTS Supplemental Financial Data (in
thousands, except per share information) March 31, 2009
-------------- Pro Rata Share Consolidated --------------
------------ Capitalization -------------- Common shares
outstanding 74,971 74,971 Operating partnership units outstanding
976 976 Stock options outstanding 885 885 Restricted stock units
outstanding 1,079 1,079 ----- ----- Combined shares, options and
units outstanding 77,911 77,911 Common stock price at end of period
$0.69 $0.69 ----- ----- Common equity capitalization $53,759
$53,759 Preferred equity capitalization (at $25.00 face value)
370,236 370,236 Consolidated debt (excludes the discount on
exchangeable senior notes) 1,768,896 1,768,896 Pro rata share of
unconsolidated debt 282,825 - Pro rata share of consolidated debt
(107,065) - Cash and cash equivalents (128,283) (128,283) --------
-------- Total enterprise value $2,240,368 $2,064,608 ==========
========== Net Debt / Total Enterprise Value 81.1% 79.5% Preferred
Equity / Total Enterprise Value 16.5% 17.9% Common Equity / Total
Enterprise Value 2.4% 2.6% Strategic Hotels & Resorts, Inc. and
Subsidiaries (SHR) Investment in the Hotel del Coronado (in
thousands) Three Months Ended March 31, ----------- 2009 2008 ----
---- Total revenues (100%) $28,192 $34,858 Property EBITDA (100%)
$8,506 $11,449 Equity in losses of joint venture (SHR 45%
ownership) Property EBITDA $3,828 $5,152 Depreciation and
amortization (1,903) (1,900) Interest expense (2,061) (4,411) Other
expense, net (183) (28) Income taxes 213 340 --- --- Equity in
losses of joint venture $(106) $(847) ===== ===== EBITDA
Contribution from investment in Hotel del Coronado Equity in losses
of joint venture $(106) $(847) Depreciation and amortization 1,903
1,900 Interest expense 2,061 4,411 Income taxes (213) (340) ----
---- EBITDA Contribution for investment in Hotel del Coronado
$3,645 $5,124 ====== ====== FFO Contribution from investment in
Hotel del Coronado Equity in losses of joint venture $(106) $(847)
Depreciation and amortization 1,903 1,900 ----- ----- FFO
Contribution for investment in Hotel del Coronado $1,797 $1,053
====== ====== Interest Spread over Loan Debt Rate LIBOR Amount
Maturity ---- --------- ----- ------ --------- CMBS Mortgage and
Mezzanine 2.58% 208 bp $610,000 January 2011 (a) Revolving Credit
Facility 3.00% 250 bp 18,500 January 2011 (a) ------ 628,500 Cash
and cash equivalents 47,543 ------ Net Debt $580,957 ======== (a)
Includes extension options. LIBOR Effective Cap Notional Cap Date
Rate Amount Maturity --- ----------- ------ -------- -------- CMBS
Mortgage and Mezzanine Loan and Revolving Credit Facility Cap
January 2009 5.0% $630,000 January 2011 CMBS Mortgage and Mezzanine
Loan and Revolving Credit Facility Cap June 2009 3.0%-5.0% $630,000
January 2010 Strategic Hotels & Resorts, Inc. and Subsidiaries
(SHR) Leasehold Information (in thousands) Three Months Ended March
31, ----------- 2009 2008 ---- ---- Paris Marriott Champs Elysees:
Property EBITDA $2,607 $4,005 Revenue (a) $2,607 $4,005 Lease
Expense (2,862) (3,059) Less: Deferred Gain on Sale Leaseback
(1,100) (1,263) ------ ------ Adjusted Lease Expense (3,962)
(4,322) ------- ----- EBITDA Contribution from Leasehold $(1,355)
$(317) ======= ===== Marriott Hamburg: Property EBITDA $1,353
$1,562 Revenue (a) $1,120 $1,287 Lease Expense (1,104) (1,268)
Less: Deferred Gain on Sale Leaseback (51) (59) --- --- Adjusted
Lease Expense (1,155) (1,327) ---- ---- EBITDA Contribution from
Leasehold $(35) $(40) ==== ==== Total Leaseholds: Property EBITDA
$3,960 $5,567 Revenue (a) $3,727 $5,292 Lease Expense (3,966)
(4,327) Less: Deferred Gain on Sale Leaseback (1,151) (1,322)
------ ------ Adjusted Lease Expense (5,117) (5,649) ------- -----
EBITDA Contribution from Leasehold $(1,390) $(357) ======= =====
March 31, December 31, Security Deposits (b): 2009 2008 ---- ----
Paris Marriott Champs Elysees $11,822 $15,507 Marriott Hamburg
6,643 6,984 ----- ----- Total $18,465 $22,491 ======= ======= (a)
For the three months ended March 31, 2009 and 2008, Reveue for the
Paris Marriott Champs Elysees represents Property EBITDA. For the
three months ended March 31, 2009 and 2008, Revenue for the
Marriott Hamburg represents lease revenue. (b) The security
deposits are recorded in other assets on the consolidated balance
sheets. StrategicHotels & Resorts, Inc. and Subsidiaries (SHR)
Non-GAAP Financial Measures In addition to REIT hotel income, six
other non-GAAP financial measures are presented for the Company
that we believe are useful to management and investors as key
measures of our operating performance: Funds from Operations (FFO);
FFO - Fully Diluted; Comparable FFO; Earnings Before Interest
Expense, Taxes, Depreciation and Amortization (EBITDA); Adjusted
EBITDA; and Comparable EBITDA. A reconciliation of these measures
to net loss attributable to SHR common shareholders, the most
directly comparable GAAP measure, is set forth in the following
tables. We compute FFO in accordance with standards established by
the National Association of Real Estate Investment Trusts, or
NAREIT, which adopted a definition of FFO in order to promote an
industry-wide standard measure of REIT operating performance.
NAREIT defines FFO as net income (or loss) (computed in accordance
with GAAP) excluding losses or gains from sales of depreciable
property plus real estate-related depreciation and amortization,
and after adjustments for our portion of these items related to
unconsolidated partnerships and joint ventures. We also present FFO
- Fully Diluted, which is FFO plus income or loss attributable to
convertible noncontrolling interests. We also present Comparable
FFO, which is FFO - Fully Diluted excluding the impact of any gains
or losses on early extinguishment of debt, impairment losses,
foreign currency exchange gains or losses and other non-recurring
charges. We believe that the presentation of FFO, FFO - Fully
Diluted and Comparable FFO provides useful information to
management and investors regarding our results of operations
because they are measures of our ability to fund capital
expenditures and expand our business. In addition, FFO is widely
used in the real estate industry to measure operating performance
without regard to items such as depreciation and amortization. We
also present Comparable FFO per diluted share as a non- GAAP
measure of our performance. We calculate Comparable FFO per diluted
share for a given operating period as our Comparable FFO (as
defined above) divided by the weighted average of fully diluted
shares outstanding. Comparable FFO per diluted share, in accordance
with NAREIT, is adjusted for the effects of dilutive securities.
Dilutive securities may include shares granted under share-based
compensation plans, operating partnership units and exchangeable
debt securities. No effect is shown for securities that are
anti-dilutive. EBITDA represents net loss attributable to SHR
common shareholders excluding: (i) interest expense, (ii) income
tax expense, including deferred income tax benefits and expenses
applicable to our foreign subsidiaries and income taxes applicable
to sale of assets; and (iii) depreciation and amortization. EBITDA
also excludes interest expense, income tax expense and depreciation
and amortization of our equity method investments. EBITDA is
presented on a full participation basis, which means we have
assumed conversion of all convertible noncontrolling interests of
our operating partnership into our common stock and includes
preferred dividends. We believe this treatment of noncontrolling
interests provides more useful information for management and our
investors and appropriately considers our current capital
structure. We also present Adjusted EBITDA, which eliminates the
effect of realizing deferred gains on our sale leasebacks. We also
present Comparable EBITDA, which eliminates the effect of gains or
losses on sales of assets, early extinguishment of debt, impairment
losses, foreign currency exchange gains or losses and other
non-recurring charges. We believe EBITDA, Adjusted EBITDA and
Comparable EBITDA are useful to management and investors in
evaluating our operating performance because they provide
management and investors with an indication of our ability to incur
and service debt, to satisfy general operating expenses, to make
capital expenditures and to fund other cash needs or reinvest cash
into our business. We also believe they help management and
investors meaningfully evaluate and compare the results of our
operations from period to period by removing the impact of our
asset base (primarily depreciation and amortization) from our
operating results. Our management also uses EBITDA, Adjusted EBITDA
and Comparable EBITDA as measures in determining the value of
acquisitions and dispositions. We caution investors that amounts
presented in accordance with our definitions of FFO, FFO - Fully
Diluted, Comparable FFO, EBITDA, Adjusted EBITDA and Comparable
EBITDA may not be comparable to similar measures disclosed by other
companies, since not all companies calculate these non-GAAP
measures in the same manner. FFO, FFO - Fully Diluted, Comparable
FFO, EBITDA, Adjusted EBITDA and Comparable EBITDA should not be
considered as an alternative measure of our net loss or operating
performance. FFO, FFO - Fully Diluted, Comparable FFO, EBITDA,
Adjusted EBITDA and Comparable EBITDA may include funds that may
not be available for our discretionary use due to functional
requirements to conserve funds for capital expenditures and
property acquisitions and other commitments and uncertainties.
Although we believe that FFO, FFO - Fully Diluted, Comparable FFO,
EBITDA, Adjusted EBITDA and Comparable EBITDA can enhance your
understanding of our financial condition and results of operations,
these non-GAAP financial measures, when viewed individually, are
not necessarily a better indicator of any trend as compared to
comparable GAAP measures such as net loss attributable to SHR
common shareholders. In addition, you should be aware that adverse
economic and market conditions might negatively impact our cash
flow. Below, we have provided a quantitative reconciliation of FFO,
FFO - Fully Diluted, Comparable FFO, EBITDA, Adjusted EBITDA and
Comparable EBITDA to the most directly comparable GAAP financial
performance measure, which is net loss attributable to SHR common
shareholders, and provide an explanatory description by footnote of
the items excluded from FFO, FFO - Fully Diluted, EBITDA and
Adjusted EBITDA. Strategic Hotels & Resorts, Inc. and
Subsidiaries (SHR) Reconciliation of Net Loss Attributable to SHR
Common Shareholders to EBITDA, Adjusted EBITDA and Comparable
EBITDA (in thousands) Three Months Ended March 31, --------- 2009
2008 ---- ---- Net loss attributable to SHR common shareholders
$(43,190) $(7,932) Depreciation and amortization - continuing
operations 34,103 27,603 Depreciation and amortization -
discontinued operations - 690 Interest expense - continuing
operations 23,966 22,842 Income taxes - continuing operations 100
212 Income taxes - discontinued operations - 90 Noncontrolling
interests (446) (2) Adjustments from consolidated affiliates (a)
(1,564) (1,671) Adjustments from unconsolidated affiliates 3,899
5,989 Preferred shareholder dividends 7,721 7,721 ----- -----
EBITDA 24,589 55,542 Realized portion of deferred gain on sale
leasebacks (1,151) (1,322) ------ ------ Adjusted EBITDA 23,438
54,220 ------ ------ Gain on sale of assets - continuing operations
(2) (117) Gain on sale of assets - discontinued operations - (416)
Loss on sale of noncontrolling interests in hotel properties - 5
Impairment losses and other charges - continuing operations 459 -
Foreign currency exchange (gain) loss (b) (2,015) 3,209 Hyatt
Regency La Jolla noncontrolling interest (a) - (1,180) Loss on
early extinguishment of debt - continuing operations 883 - --- ---
Comparable EBITDA $22,763 $55,721 ======= ======= (a) The
noncontrolling interest partner's share of the Hyatt Regency La
Jolla's property EBITDA is not deducted from net loss attributable
to SHR common shareholders under GAAP accounting rules for the
three months ended March 31, 2008. Under new accounting rules
effective January 1, 2009, the noncontrolling interest partner's
share of the Hyatt Regency La Jolla's property EBITDA is included
in adjustments from consolidated affiliates for the three months
ended March 31, 2009. (b) Foreign currency exchange loss applicable
to third-party and inter- company debt and certain balance sheet
items held by foreign subsidiaries. Strategic Hotels & Resorts,
Inc. and Subsidiaries (SHR) Reconciliation of Net Loss Attributable
to SHR Common Shareholders to Funds From Operations (FFO), FFO -
Fully Diluted and Comparable FFO (in thousands, except per share
data) Three Months Ended March 31, --------- 2009 2008 ---- ----
Net loss attributable to SHR common shareholders $(43,190) $(7,932)
Depreciation and amortization - continuing operations 34,103 27,603
Depreciation and amortization - discontinued operations - 690
Corporate depreciation (304) (292) Gain on sale of assets -
continuing operations (2) (117) Gain on sale of assets -
discontinued operations - (416) Loss on sale of noncontrolling
interests in hotel properties - 5 Realized portion of deferred gain
on sale leasebacks (1,151) (1,322) Deferred tax expense on realized
portion of deferred gain on sale leasebacks 343 394 Noncontrolling
interests adjustments (457) (387) Adjustments from consolidated
affiliates (a) (1,832) (1,275) Adjustments from unconsolidated
affiliates 1,935 1,900 ----- ----- FFO (10,555) 18,851 Convertible
noncontrolling interests 11 385 --- --- FFO - Fully Diluted
(10,544) 19,236 Impairment losses and other charges - continuing
operations 459 - Foreign currency exchange (gain) loss, net of tax
(b) (2,177) 3,916 Hyatt Regency La Jolla noncontrolling interest
(a) - (589) Loss on early extinguishment of debt - continuing
operations 883 - --- --- Comparable FFO $(11,379) $22,563 ========
======= Comparable FFO per diluted share $(0.15) $0.30 ====== =====
Weighted average diluted shares 75,166 76,086 ====== ====== (a) The
noncontrolling interest partner's share of the Hyatt Regency La
Jolla's property FFO is not deducted from net loss attributable to
SHR common shareholders under GAAP accounting rules for the three
months ended March 31, 2008. Under new accounting rules effective
January 1, 2009, the noncontrolling interest partner's share of the
Hyatt Regency LaJolla's property EBITDA is included in adjustments
from consolidated affiliates for the three months ended March 31,
2009. (b) Foreign currency exchange loss applicable to third-party
and inter- company debt and certain balance sheet items held by
foreign subsidiaries. Strategic Hotels & Resorts, Inc. and
Subsidiaries (SHR) Debt Summary (dollars in thousands) Interest
Loan Debt Rate Spread (a) Amount Maturity (b) ---- ---------
---------- ------ ------------- Punta Mita land parcel promissory
note N/A N/A $16,891 August 2009 Bank credit facility 4.25% 375 bp
296,000 March 2011 Westin St. Francis 1.20% 70 bp 220,000 August
2011 Fairmont Scottsdale Princess 1.06% 56 bp 180,000 September
2011 InterContinental Chicago 1.56% 106 bp 121,000 October 2011
InterContinental Miami 1.23% 73 bp 90,000 October 2011
InterContinental Prague (c) 2.71% 120 bp (c) 138,174 March 2012
Loews Santa Monica Beach Hotel 1.13% 63 bp 118,250 March 2012
Ritz-Carlton Half Moon Bay 1.17% 67 bp 76,500 March 2012
Exchangeable senior notes, net of discount 3.50% (d) Fixed 166,198
April 2012 Fairmont Chicago 1.20% 70 bp 123,750 April 2012 Hyatt
Regency La Jolla 1.50% 100 bp 97,500 September 2012 Marriott London
Grosvenor Square (e) 2.75% 110 bp (e) 110,831 October 2013 -------
$1,755,094 ========== (a) Spread over LIBOR (0.50% at March 31,
2009). (b) Includes extension options, excluding the conditional
one-year extension option on the bank credit facility. (c)
Principal balance of euro 104,000,000 at March 31, 2009. Spread
over three-month EURIBOR (1.51% at March 31, 2009). (d) Reflects
the cash coupon. (e) Principal balance of 77,250,000 pounds
Sterling at March 31, 2009. Spread over three-month GBP LIBOR
(1.65% at March 31, 2009). U.S. Interest Rate Swaps Fixed Pay Rate
Notional Swap Effective Date Against LIBOR Amount Maturity
------------------- ------------- ------ -------- April 2005 4.59%
$75,000 April 2012 June 2005 4.12% 50,000 June 2012 June 2006 5.50%
75,000 June 2013 August 2006 5.42% 100,000 August 2013 March 2007
4.84% 100,000 July 2012 March 2009 0.70% 50,000 September 2009
March 2009 0.78% 50,000 December 2009 March 2009 0.90% 75,000 April
2010 March 2009 1.12% 50,000 December 2010 March 2009 1.38% 50,000
August 2011 March 2009 0.64% 50,000 September 2009 March 2009 1.02%
50,000 December 2010 March 2009 0.64% 50,000 December 2009 March
2009 1.04% 100,000 February 2011 March 2009 1.22% 50,000 August
2011 ---- ------ 2.60% $975,000 ==== ======== European Interest
Rate Swap Fixed Pay Rate Against Notional Swap Effective Date GBP
LIBOR Amount Maturity ------------------- --------- --------
-------- October 2007 5.72% 77,250 pounds Sterling October 2013
Fixed Pay Rate Notional Swap Effective Date Against EURIBOR Amount
Maturity ------------------- --------------- ------ --------
September 2008 4.53% euro 104,000 March 2012 Forward-Starting
Interest Rate Swaps Fixed Pay Rate Notional Swap Effective Date
Against LIBOR Amount Maturity ------------------- -------------
-------- -------- September 2009 4.90% $100,000 September 2014
December 2009 4.96% 100,000 December 2014 April 2010 5.42% 75,000
April 2015 December 2010 5.23% 100,000 December 2015 February 2011
5.27% 100,000 February 2016 ------- $475,000 ======== At March 31,
2009, future scheduled debt principal payments (including
non-conditional extension options) are as follows: Years ended
Amount December 31, (in thousands) ------------ -------------- 2009
$16,891 2010 7,101 2011 914,101 2012 728,839 2013 101,964
Thereafter - --- 1,768,896 Less discount on exchangeable senior
notes (13,802) ------- Total $1,755,094 ========== Percent of fixed
rate debt including U.S. and European swaps 80.2% Weighted average
interest rate including U.S. and European swaps (f) 3.82% Weighted
average maturity of fixed rate debt (debt with maturity of greater
than one year) 3.88 (f) Excludes the amortization of deferred
financing costs, amortization of the discount on the exchangeable
senior notes and the amortization of the interest rate swap costs.
DATASOURCE: Strategic Hotels & Resorts CONTACT: Ryan Bowie,
Vice President and Treasurer of Strategic Hotels & Resorts,
+1-312-658-5766 Web Site: http://www.strategichotels.com/
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