Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Hospitality Properties Trust — Q4 2015 Earnings Presentation
26 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Feb 24, 2016
Slide 1: Hospitality Properties Trust Q4 2015 Investor Presentation
Wyndham Grand Chigcago Riverfront, Chicago, IL Exhibit 99.1 Operator: Wyndham Hotel Group Guest Rooms: 334 Vacation Rental Units: 48 Hospitality Properties Trust Q4 2015 Investor Presentation
Slide 2: Disclaimer
Disclaimer. THIS PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER WE USE WORDS SUCH AS "BELIEVE," "EXPECT," "ANTICIPATE," "INTEND," "PLAN," "ESTIMATE," OR SIMILAR EXPRESSIONS, WE ARE
Slide 3: HPT's high quality properties, conservative profile and secure cash flows provide a growing dividend
HPT’s high quality properties, conservative profile and secure cash flows provide a growing and well covered dividend. • Favorable market trends – lodging and travel center industry. • Diversified portfolio of recently renovated, high quality properties. • Long term portfolio agreements that can pro
Slide 4: Economic growth continues. U.S. hotel industry forecasts remain optimistic
Economic growth continues. U.S. hotel industry forecasts remain optimistic. Lodging Industry Forecasts 2016 2017 PKF PWC STR YTD Preliminary PKF PWC STR Supply 1.9% 1.9% 1.7% 1.5% - - 1.9% Demand 2.1% - 2.3% 1.2% - - 2.1% Occupancy 0.3% 0.3% 0.6% -2% to 0% - - 0.2% Average Rate 5.2% 5.2% 4.4% 2% to
Slide 5: Economic growth continues. Increasing regulation may cater to full service travel center advantages
Economic growth continues. Increasing regulation may cater to full service travel center advantages. Issue Implication ¾ Fuel and non-fuel demand is expected to see continued steady growth over the next decade. Travel centers which provide services to professional truck drivers from restaurants to c
Slide 6: HPT is one of the most geographically diverse lodging REITs
HPT is one of the most geographically diverse lodging REITs that owns hotels and travel centers operated under recognized brands. • $8.6 billion investment portfolio (historical investment basis(1)). • Total of 495 properties located in 45 states, Puerto Rico and Canada. ¾ 302 hotels with 45,864 roo
Slide 7: HPT has $5.4 billion invested in full service, select service and extended stay hotels
HPT has $5.4 billion invested in 302 full service, select service and extended stay hotels. HPT Hotel Managers Unique Agreements (by $ invested) InterContinental Hotels Group • 9 Hotel Management Agreements/Leases Marriott International, Inc. plc 122 hotels / 17,086 rooms $1,779 million 93 hotels /
Slide 8: Staybridge Suites Lake Buena Vista, Orlando, FL
Staybridge Suites Lake Buena Vista, Orlando, FL Operator: Intercontinental Hotel Group Guest Rooms: 150 Hospitality Properties Trust 8
Slide 9: Marriott Residence Inn San Antonio Downtown/Alamo Plaza
Marriott Residence Inn San Antonio Downtown/Alamo Plaza, San Antonio, TX Operator: Marriott International, Inc. Guest Rooms: 220 Hospitality Properties Trust 9
Slide 10: HPT has $3.2 billion invested in travel centers along the U.S. Interstate Highway System
HPT has $3.2 billion invested in 193 travel centers located along the U.S. Interstate Highway System. • Travel Centers of America operates two of the strongest travel center brands in the industry. HPT owns or leases 147 “TA” travel centers located in 40 states. • 5 Triple Net Leases Seville, OH • H
Slide 11: 79% of HPT's total minimum rents and returns are secured by deposits or guarantees
79% of HPT’s total minimum rents and returns are secured by deposits or guarantees. Coverage (1) No. of No. of Annual Minimum Agreement Properties Rooms Return/Rent % of Total Q4 LTM Security Features 1 Marriott No. 1 53 7,610 $68,356 9% 1.07x 1.33x - 2 Marriott No. 234 68 9,120 106,243 15% 0.94x 1.
Slide 12: Sonesta Hotel, Ft Lauderdale, FL
Sonesta Hotel, Ft Lauderdale, FL Operator: Sonesta International Hotels Corp. Guest Rooms: 240 Hospitality Properties Trust
Slide 13: HPT believes its portfolio activity and renovations have resulted in outperformance
HPT believes its portfolio activity and renovations have resulted in outperformance. Hotel Renovations TA’s Full Service Offering • From 2010 through 4Q15, HPT has completed renovations at • Despite efficiency headwinds, TA has reported flat to positive 271 hotels at a cost of approximately $1 billi
Slide 14: Courtyard Atlanta Midtown/Georgia Tech, Atlanta, GA
Courtyard Atlanta Midtown/Georgia Tech, Atlanta, GA Operator: Marriott International, Inc. Guest Rooms: 168 Hospitality Properties Trust 14
Slide 15: Sonesta ES Suites Princeton, Princeton, NJ
Sonesta ES Suites Princeton, Princeton, NJ Operator: Sonesta International Hotels Corp. Guest Rooms: 124 Hospitality Properties Trust 15
Slide 16: Improving coverage and strong EBITDA and FFO results
This performance has resulted in improving coverage and strong EBITDA and FFO results. (In thousands except number of properties, As of and for the three months ended number of rooms and per share data.) December 31, 2015 2014 Property data: Number of properties 495 475 Number of rooms 45,864 44,107
Slide 17: HPT will continue benefitting from hotel renovations and travel center improvements
HPT believes it will continue benefitting from hotel renovations and travel center improvements and from overall health of the portfolio. • HPT expects to fund $81.4 million of planned hotel improvements in 2016 at fourteen hotels. • HPT expects to fund $150.0 million of travel center improvements i
Slide 18: Subsequent to 12/31, we have closed one transaction
Subsequent to 12/31, we have closed one transaction. • In January, 2016, HPT agreed to acquire the luxury boutique Hotel Monaco in the center of downtown Portland, Oregon for a purchase price of $114 million dollars. This hotel has 221 rooms, the successful Red Star Tavern restaurant and bar, over 8
Slide 19: HPT has a conservative financial profile
HPT has a conservative financial profile. Pro forma Book Capitalization as of December 31, 2015 (1) ($ in thousands) Unsecured floating rate debt $ 865,000 $2,908 Unsecured fixed rate debt 2,908,478 44% $2,812 Total debt 3,773,478 43% Shareholders equity (book value) 2,812,082 $865 13% Total Book Ca
Slide 20: HPT has well laddered debt maturities and capacity for disciplined growth
HPT has well laddered debt maturities and the capacity for disciplined growth. (1) • No secured debt. HPT Pro forma Term Debt Maturities as of December 31, 2015 • Unsecured senior notes: ($ in millions) ¾ $2,433 million as of December 31, 2015 $900 ($2,422 million net of discounts.) $800 ¾ All fixed
Slide 21: HPT's high quality properties, conservative profile and secure cash flows provide a growing dividend
HPT’s high quality properties, conservative profile and secure cash flows provide a growing and well covered dividend. • Favorable market trends – lodging and travel center industry. • Diversified portfolio of recently renovated, high quality properties. • Long term portfolio agreements that can pro
Slide 22: Calculation of EBITDA and Adjusted EBITDA
Calculation of EBITDA and Adjusted EBITDA. CALCULATION OF EBITDA AND ADJUSTED EBITDA (1) (in thousands) For the Three Months Ended, For the Year Ended December 31, 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 2015 2014 Net income (loss) $ (19,494) $ 61,185 $ 83,146 $ 41,581 $ 56,523 $ 166,418
Slide 23: Calculation of funds from operation (FFO) and Normalized FFO
Calculation of funds from operation (FFO) and Normalized FFO. CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO AVAILABLE FOR COMMON SHAREHOLDERS (1) (dollar amounts in thousands, except per share data) For the Three Months Ended, For the Year Ended December 31, 12/31/2015 9/30/2015 6/30
Slide 24: Non-GAAP financial measures definitions
Non-GAAP financial measures definitions. Definition of EBITDA We calculate EBITDA and Adjusted EBITDA as shown in Exhibit A. We consider EBITDA and Adjusted EBITDA to be appropriate measures of our operating performance, along with net income, net income available for common shareholders, operating
Slide 25: Courtyard by Marriott, Camarillo, CA
Courtyard by Marriott, Camarillo, CA. Guest Rooms: 130. Sonesta Resort, Hilton Head, SC Operator: Sonesta International Hotels Corp. Hospitality Properties Trust Guest Rooms:25 340
Slide 26: Hospitality Properties Trust Q4 2015
Wyndham Grand Chigcago Riverfront, Chicago, IL Operator: Wyndham Hotel Group Guest Rooms: 334 Vacation Rental Units: 48 Hospitality Properties Trust Q4 2015 Investor Presentation
Hospitality Properties Trust — Q4 2015 Earnings Presentation on 6ix