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Condor Hospitality Trust Reports Second Quarter 2019 Results

BETHESDA, Md.--(BUSINESS WIRE)--

Condor Hospitality Trust, Inc. (NYSE American: CDOR) (the “Company”) today announced results for the second quarter ended June 30, 2019.

SECOND QUARTER RELEASE FINANCIAL HIGHLIGHTS

  • Revenue in the second quarter 2019 of $16.2 million, comprised of $16.2 million generated entirely from New Investment Platform Hotels, a 1.2% decrease from $16.4 million generated by New Investment Platform Hotels in the $17.8 million 2018 second quarter Revenue that included $1.4 million of Legacy Hotel Revenue.
  • Same-Store Revenue of $37.5 million for the first six months of 2019 increased $0.5 million over the first six months Same-Store Revenue of $37.0 million in 2018.
  • Same-Store RevPAR for the New Investment Platform Hotels in the 2019 second quarter decreased 0.7% compared to the same quarter in 2018, affected by a weak convention schedule in San Antonio that had a direct impact on the SpringHill Suites. Excluding the SpringHill Suites, New Investment Platform RevPAR increased by 0.4%. Same-Store RevPAR of $105.47 for the New Investment Platform Hotels for the first six months of 2019 Increased 1.6% over 2018 first six months RevPAR of $103.84.
  • Net Earnings (Loss) Attributable to Common Shareholders of ($1.4 million), or ($0.12) per Diluted Share, compared to $2.7 million, or $0.23 per share, in the 2018 second quarter. Decline in Net Earnings Attributable to Common Shareholders primarily caused by no Legacy Hotels remaining in the second quarter 2019, compared to $0.4 million of EBITDA generated from Legacy Hotels in the second quarter 2018, $0.8 million in Equity Transaction and Strategic Alternatives costs incurred in the second quarter 2019, $0.4 million increase in income tax expense, and $0.5 million Decline in Net Gain on Derivatives and Convertible Debt for the quarter. Additionally, the second quarter 2018 included a $1.9 million gain from Legacy Hotel sales.
  • Adjusted Funds from Operations was $3.5 million, or $0.28 per Diluted Share, a $0.9 million Decline from $4.4 million, or $0.34, in the 2018 second quarter. The decline was a result of a $0.4 million increase in income tax expense, and a $0.2 million increase in stock-based compensation expense in the second quarter 2019 and the second quarter 2018 included $0.4 million of EBITDA from Legacy Hotels.
  • Same-Store Hotel EBITDA decreased to $7.5 million from $7.6 million, a 1.3% decrease over prior year second quarter influenced by the weakness in the San Antonio market mentioned above and the positive impact of FEMA business in hurricane affected Texas and Florida markets in Q2 2018.

MANAGEMENT COMMENTARY

Bill Blackham, Condor’s Chief Executive Officer, commented:

“For the first six months of 2019 our portfolio has outperformed the overall market when compared to the U.S. national RevPAR growth of 1.3% for all chain scales excluding luxury and upper upscale reported by Smith Travel Research. Our proforma same-store RevPAR for the second quarter 2019 excluding the SpringHill Suites increased 0.4% as compared to (0.4)% for upscale and 0.0% for upper midscale, as reported by Smith Travel Research. Importantly for the first six months our operating results as a portfolio are slightly ahead of our projections. In the first six months of 2019 Same-Store Hotel EBITDA is approximately 0.7% higher than the same period in the prior year at $14.9 million compared to $14.8 million, and our margins while declining in the quarter, did so moderately reducing 30 bps from 40.2% in 2018 to 39.9% in 2019 and were 39.8% for the first six months of 2019 compared to 40.1%. Additionally, we have elected to not renew 3 hotel management contracts and with new management we believe we will be better positioned to increase performance on our San Antonio and Jacksonville assets which experienced $0.33 million in revenue decline and $0.28 million in EBITDA decline in thenull