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PRESS RELEASE
For Immediate Release
Contact: Douglas W. Vicari (571) 349-9452
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The Trust acquired the Hyatt Herald Square New York in December 2011 for $52.0 million, or $428,000 per
key, and the Hyatt Place New York Midtown South in March 2013 for $76.2 million, or $412,000 per key. The $138.0 million aggregate sale price represents a 5.9% trailing twelve month NOI cap rate.
NON-GAAP
FINANCIAL MEASURES
The Trust reports the following seven
non-GAAP
financial measures (within the meaning of the rules of the Securities
and Exchange Commission) that it believes are useful to investors as key measures of its operating performance: (1) EBITDA
re
, (2) Adjusted Corporate EBITDA
re
, (3) Adjusted Hotel EBITDA
re
, (4) Adjusted Hotel
EBITDA
re
Margin, (5) FFO, (6) FFO available to common shareholders and (7) AFFO available to common shareholders. Reconciliations of all
non-GAAP
financial measures to the most comparable
GAAP measure are included in the accompanying financial tables.
EBITDA
re
— The Trust calculates EBITDA
re
in accordance with standards
established by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines EBITDA
re
as net income (calculated in accordance with GAAP) before interest, income taxes, depreciation and amortization, gains
(losses) from sales of real estate, impairment charges of depreciated real estate, and adjustments for unconsolidated partnerships and joint ventures. The Trust believes that EBITDA
re
provides investors a useful financial measure to evaluate
the Trust’s operating performance, excluding the impact of the Trust’s capital structure (primarily interest expense) and the Trust’s asset base (primarily depreciation and amortization).
Adjusted Corporate EBITDA
re
— The Trust further adjusts EBITDA
re
for certain additional recurring and
non-recurring
items that are not in NAREIT’s definition of EBITDA
re
. Specifically, the Trust adjusts for hotel acquisition costs and
non-cash
amortization of
operating lease
right-of-use
assets, intangible assets and liabilities, deferred franchise costs, and deferred key money, all of which are recurring items. For the three
and six months ended June 30, 2019, the Trust also adjusted for
non-recurring
costs related to the Park merger. The Trust believes that Adjusted Corporate EBITDA
re
provides investors another
financial measure of its operating performance that provides for greater comparability of its core operating results between periods.
Adjusted Hotel
EBITDA
re
— The Trust further adjusts Adjusted Corporate EBITDA
re
for corporate general and administrative expenses, which is a recurring item. The Trust believes that Adjusted Hotel EBITDA
re
provides investors a useful
financial measure to evaluate the Trust’s hotel operating performance by excluding the impact of corporate-level expenses.
Adjusted Hotel
EBITDA
re
Margin — Adjusted Hotel EBITDA
re
Margin is defined as Adjusted Hotel EBITDA
re
as a percentage of total revenues. The Trust believes that Adjusted Hotel EBITDA
re
Margin provides investors another useful
financial measure to evaluate the Trust’s hotel operating performance.