DiamondRock Completes Sale Of Orlando Airport Marriott
"We are pleased to complete the sale of the
For the year ending
The total consideration, including near-term capital expenditures, represents a 4.9% capitalization rate on the Hotel's average net operating income and a 16.2x multiple on the Hotel's average
The Company expects to record a gain on the sale, which will be excluded from its reported Adjusted EBITDA and Adjusted FFO and does not expect to adjust its dividend to account for the gain. The Company's full year 2016 guidance assumed the Hotel generated Adjusted EBITDA and Adjusted FFO of approximately
The cash proceeds from the sale were used to repay the
About the Company
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," "forecast," "plan" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: national and local economic and business conditions, including the potential for additional terrorist attacks, that will affect occupancy rates at the Company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the Company's indebtedness; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company's filings with the
Reconciliation of
(Unaudited, in millions)
Orlando Marriott Actual Results |
||||
Year Ended December 31, 2015 |
5-Year Average Ending December 31, |
|||
Net Income (Loss) |
$ 2.7 |
$ (0.7) |
||
Depreciation Expense |
2.3 |
2.8 |
||
Interest Expense |
2.5 |
3.2 |
||
Hotel Adjusted EBITDA |
$ 7.5 |
$ 5.3 |
||
Capital Reserve Contribution |
(1.3) |
(1.1) |
||
Net Operating Income |
$ 6.2 |
$ 4.2 |
Reconciliation of Net Income to Adjusted EBITDA and Adjusted FFO
(Unaudited, in millions)
Orlando Marriott Forecasted Non-Ownership Period |
||||
Q2 2016 |
FY 2016 |
|||
Net Income |
$ 0.2 |
$ 1.9 |
||
Depreciation Expense |
0.1 |
1.2 |
||
Interest Expense |
-- |
-- |
||
Adjusted EBITDA |
$ 0.3 |
$ 3.1 |
||
Income Tax Expense |
(0.0) |
(0.4) |
||
Adjusted FFO |
$ 0.3 |
$ 2.7 |
This press release includes certain non-GAAP financial measures as defined under
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SOURCE
Sean Mahoney, (240) 744-1150