NEW YORK, March 13, 2015 /PRNewswire/ -- Morgans Hotel
Group Co. (NASDAQ: MHGC) (the "Company") today reported financial
results for the quarter and year ended December 31, 2014.
Fourth Quarter Highlights
- Adjusted EBITDA, defined below, was $17.7 million in the fourth quarter of 2014, an
increase of $0.2 million, or 1%, from
the same period in 2013.
- Excluding The Light Group ("TLG"), the controlling interests of
which the Company sold in January
2015, as discussed below, Adjusted EBITDA was $16.2 million for the fourth quarter of 2014, an
increase of $0.1 million, or 0.7%,
from the same period in 2013.
- Operating margins at the Company's Owned Hotels and leased food
and beverage operations increased approximately 90 basis points
during the fourth quarter of 2014 as compared to the same period in
2013, primarily as a result of cost saving initiatives implemented
in 2014.
- Revenue per available room ("RevPAR") for System-Wide
Comparable Hotels decreased by 0.8% on a year-over-year basis
during the fourth quarter of 2014. System-Wide Comparable Hotels'
room revenues plus resort fees increased 1.1% during the fourth
quarter of 2014 as compared to the same period in 2013.
- In November 2014, the Company
continued its global expansion with the opening of 10 Karakoy, a
71-room Morgans Original in Istanbul,
Turkey. This marked the Company's third new hotel opening in
2014, preceded by Delano Las Vegas and Mondrian London.
- In the fourth quarter of 2014, the Company repaid and retired
its outstanding $49.1 million of
Convertible Notes and $19.1 million
of TLG Promissory Notes held by the minority owners of TLG.
- On January 23, 2015, the Company
completed the sale of its equity interests in TLG for net proceeds
of $32.8 million (the "TLG Equity
Sale"). As a result, pro forma cash as of December 31, 2014 was $46.3 million.
- The Company added two additional guestrooms at Hudson during the fourth quarter of 2014.
These rooms, coupled with the 10 additional guestrooms added in the
third quarter of 2014, bring the room count at Hudson to 878 as of December 31, 2014. The Company currently has 60
single room occupancy units ("SROs") remaining at Hudson, which it intends to convert, together
with other space in the hotel, into additional guest rooms in the
future.
Full Year Highlights
- Adjusted EBITDA was $55.1 million
for the year ended 2014, a $2.9
million or 5.6% increase over the year ended 2013, due to
EBTIDA growth at all of the Company's Owned Hotels.
- Excluding TLG, Adjusted EBITDA was $48.7
million, a $4.8 million or
10.9% increase for the year ended 2014 as compared to same period
in 2013.
- Operating margins at the Company's Owned Hotels and leased food
and beverage operations increased approximately 260 basis points
for the year ended 2014 as compared to the same period in 2013,
primarily as a result of cost saving initiatives implemented in
2014.
- RevPAR for System-Wide Comparable Hotels increased 2.8% for the
year ended December 31, 2014 as
compared to the same period in 2013. System-Wide Comparable Hotels'
room revenues plus resort fees increased 3.3% during 2014 as
compared to the same period in 2013.
Jason T. Kalisman, Interim Chief
Executive Officer, stated, "Throughout 2014, we continued to make
progress against our plan of strengthening our balance sheet and
delivering on our asset-light, brand focused strategy, leveraging
our position as the leader in the international boutique hotel
segment. We successfully refinanced the debt of Hudson and Delano on attractive terms,
streamlined our cost-structure throughout the organization and sold
our controlling interest in TLG – all of which has led to stronger
financial positioning, value creation and a greater ability to grow
our portfolio of one-of-a-kind brands. We're extremely pleased with
these achievements and the performance of our current operations
and our key projects in 2014 – including Mondrian London and Delano
Las Vegas."
Fourth Quarter 2014 Operating Results
Adjusted EBITDA for the fourth quarter of 2014 was
$17.7 million, an increase of
$0.2 million, or 1.0%, over the same
period in 2013. Excluding TLG, the equity interests of which
were sold in January 2015, Adjusted
EBITDA was $16.2 million for the
fourth quarter of 2014, an increase of $0.1
million, or 0.7%, from the same period in 2013.
EBITDA at the Company's Owned Hotels experienced an
approximately 1% increase during the fourth quarter of 2014 as
compared to the same period in 2013 due primarily to an 11.3%
increase at Delano South Beach, which was partially offset by a
4.4% decrease at Hudson.
RevPAR at System-Wide Comparable Hotels decreased by 0.8% in the
fourth quarter of 2014 as compared to the same period in 2013, due
to a 1.2% decrease in ADR offset in part by a 0.4% increase in
occupancy. The Company implemented a resort fee at certain of
its hotels in 2014. System-Wide Comparable Hotels' room
revenues plus resort fees increased 1.1% during the fourth quarter
of 2014 as compared to the same period in 2013.
RevPAR from System-Wide Comparable Hotels in New York decreased 3.9% for the quarter ended
December 31, 2014 over the same
period in 2013, due to decreased ADR. Occupancy at the
Company's New York hotels stayed
strong at 91.3%, remaining even with occupancy reported during the
fourth quarter of 2013. RevPAR at Hudson decreased by 5.3% during the fourth
quarter of 2014 as compared to 2013. Occupancy at
Hudson was relatively even with an
increase of 0.2% to 92.1% for the quarter. ADR at
Hudson declined 5.5% during the
quarter, primarily as a result of an increase in competitive room
supply. Hudson's room
revenues plus resort fees decreased by 0.7% during the fourth
quarter of 2014 as compared to the same period in 2013.
RevPAR from System-Wide Comparable Hotels in Miami decreased 4.4% in the fourth quarter of
2014 as compared to the fourth quarter of 2013. Delano South
Beach experienced a RevPAR decrease of 4.9% during the fourth
quarter of 2014 as compared to the same period in 2013, primarily
due to market softness in October and November partially offset by
a 4.4% ADR increase in December 2014
as compared to December 2013. EBITDA at Delano South Beach
increased 11.3% in the fourth quarter of 2014, compared to the same
period in 2013, primarily due to a strong food and beverage
performance, the implementation of a resort fee in the latter half
of 2014, and operating efficiencies. Delano's room
revenues plus resort fees decreased 1.7% in the fourth quarter of
2014 as compared to the same period in 2013.
The Company's System-Wide Comparable Hotels on the West Coast
generated 13.9% RevPAR growth in the fourth quarter of 2014 as
compared to 2013, with a 21.5% RevPAR increase at Mondrian Los
Angeles and a 9.2% RevPAR increase at Clift.
The Company's managed hotels in London, Sanderson, St Martins Lane, and Mondrian
London, are non-comparable during 2014 due to a major renovation of
Sanderson and St Martins Lanes'
guestrooms and public spaces, and the opening of Mondrian London on
September 30, 2014.
Management fees increased $0.7
million, or 13.1%, during the fourth quarter of 2014 as
compared to the same period in 2013, primarily due to fees from the
newly opened Mondrian London.
Hotel operating expenses decreased $2.8
million, or 6.5%, during the fourth quarter of 2014 as
compared to the same period in 2013, primarily due to cost-saving
initiatives implemented in May 2014. As a result, operating
margins at the Company's Owned Hotels and leased food and beverage
operations increased approximately 90 basis points during the
fourth quarter of 2014 as compared to the same period in 2013.
Corporate expenses, excluding stock compensation expense, were
relatively flat with a 0.4% increase during the fourth quarter of
2014 as compared to the same period in 2013.
Interest expense increased by $0.8
million, or 7.2%, during the fourth quarter of 2014 as
compared to the same period in 2013, primarily due to a larger debt
balance outstanding during the fourth quarter of 2014 as compared
to the fourth quarter of 2013.
The Company recorded a net loss of $6.7
million in the fourth quarter of 2014 compared to a net loss
of $6.4 million in the fourth quarter
of 2013.
Full Year Operating Results
For the full year 2014, Adjusted EBITDA was $55.1 million, an increase of 5.6% from 2013,
primarily due to operational efficiencies in 2014. RevPAR at
System-Wide Comparable Hotels increased by 2.8% in 2014 as compared
to 2013, driven by a 1.8% increase in occupancy and 1.0% increase
in ADR. Operating margins at the Company's Owned Hotels and
leased food and beverage operations increased approximately 260
basis points for the year ended 2014, as compared to the same
period in 2013, primarily as a result of cost saving initiatives
implemented in 2014. Corporate expenses, excluding stock
compensation expense and The Light Group, were $19.0 million, a decrease of $2.8 million or 12.9% from 2013. The
Company recorded a net loss of $50.7
million for the year ended December
31, 2014, compared to a net loss of $44.2 million for the year ended December 31, 2013 due primarily to increased
interest expense offset by the positive impact of operational
efficiencies.
Balance Sheet and Liquidity
The Company's total consolidated debt at December 31, 2014 was $605.7 million, which includes $99.9 million of capital lease obligations
related primarily to Clift.
At December 31, 2014, the Company
had approximately $13.5 million in
cash and cash equivalents and $13.9
million in restricted cash.
On January 23, 2015, the Company
completed the TLG Equity Sale to Hakkasan Holdings LLC for
$32.8 million, net of closing
costs. Had the TLG Equity Sale been completed on
December 31, 2014, pro forma cash and
cash equivalents would have been approximately $46.3 million. As a result of the TLG
Equity Sale, the assets and liabilities of TLG have been classified
as held for sale on the Company's December
31, 2014 and 2013 consolidated balance sheets.
During the fourth quarter of 2014, the Company repaid and
retired the outstanding Convertible Notes of approximately
$49.1 million and the TLG Promissory
Notes of approximately $19.1 million,
with cash on hand. In October
2014, the Company funded its Mondrian London key money
obligation of approximately $15.3
million (£9.4 million).
As of December 31, 2014, the
Company had approximately $391.0
million of remaining Federal tax net operating loss
carryforwards to offset future income, including gains on asset
sales.
Development
In November 2014, the Company
continued its global expansion with the opening of 10 Karakoy, a
71-room Morgans Original in Istanbul,
Turkey, which is subject to a franchise agreement.
This marked the Company's third new hotel opening in 2014, preceded
by Delano Las Vegas and Mondrian London, both of which opened in
September 2014.
Additionally, the Company has a management agreement for a
Mondrian in Doha, Qatar which is
expected to open in late 2015.
The Company added two additional guestrooms at Hudson during the fourth quarter of
2014. These rooms, coupled with the 10 additional guestrooms
added in the third quarter of 2014, bring the room count at
Hudson to 878 as of December 31, 2014. The total cost of these
12 new guestrooms was approximately $2.0
million. The Company currently has 60 SROs remaining at
Hudson, and, together with other
space in the hotel, it intends to convert into guest rooms in the
future.
Investor Conference Call
The Company will host a conference call to review its quarter
and 2014 full year's results on Friday,
March 13, 2015 at 9:00 AM Eastern
time. The call will be webcast live over the Internet and
will be accessible at www.morganshotelgroup.com under the Investors
section. Participants should follow the instructions provided on
the website for the download and installation of audio applications
necessary to join the webcast.
The call will also be accessible live over the phone by dialing
(877) 874-1586 (within U.S.) or (719) 325-4765 (outside U.S.) and
providing the following passcode: 1908175. A playback of the
conference call will be available beginning at 12:00 p.m. ET, Friday,
March 13, 2015, through March
20, 2015. To access the playback, please dial (888)
203-1112 (within U.S.) or (719) 457-0820 (outside U.S.) and enter
passcode 1908175.
Additional Definitions
"Adjusted EBITDA," as adjusted for certain items as described
below in "Non-GAAP Financial Measures," means adjusted earnings
before interest, taxes, depreciation and amortization, as further
defined below. During the third quarter of 2014, the Company
changed its definition of Adjusted EBITDA to include the operating
results of Clift, an owned hotel. Management believes the inclusion
of Clift, which is subject to a 99-year lease and accounted for as
a financing, is a more accurate depiction of the Company's
operating results and is consistent with the Company's presentation
of Clift in accordance with generally accepted accounting
principles in the United States
("U.S. GAAP"). Prior periods have been restated to include Clift's
operating results in Adjusted EBITDA.
"EBITDA" means earnings before interest, income taxes,
depreciation and amortization.
"Owned Hotels" means Hudson in
New York, Delano South Beach in
Miami Beach, and Clift in
San Francisco, which the Company
leases under a long-term lease.
"System-Wide Comparable Hotels" means all Morgans Hotel Group
branded hotels operated by the Company, except for hotels added or
under major renovation during the current or the prior year,
development projects and hotels no longer managed by the
Company. System-Wide Comparable Hotels for the quarter and
year ended December 31, 2014 and 2013
exclude Sanderson and St Martins
Lane in London, which were both
under major renovations during 2014, Mondrian London, which opened
on September 30, 2014, Delano Las
Vegas, a licensed hotel, 10 Karakoy, a franchised hotel,
Ames, which the Company no longer
manages effective July 17, 2013,
Delano Marrakech, which the Company no longer manages effective
November 12, 2013, and Hotel Las
Palapas, which is not a Morgans Hotel Group branded hotel, and as
of April 1, 2013, was no longer
managed by the Company.
About Morgans Hotel Group
Morgans Hotel Group Co. (NASDAQ: MHGC) is widely credited
as the creator of the first "boutique" hotel and a continuing
leader of the hotel industry's boutique sector. Morgans Hotel Group
operates Delano in South Beach, Mondrian in Los
Angeles, New York, South Beach and
London, Hudson in New York, Morgans and Royalton
in New York, Clift in San Francisco, Shore Club in South
Beach and Sanderson and St Martins
Lane in London. Morgans Hotel Group has ownership interests
or owns several of these hotels. Morgans Hotel Group also has
expanded its brand through Delano in Las Vegas, a
licensed hotel, and 10 Karaköy in Istanbul, Turkey, a franchised hotel. Morgans
Hotel Group has other hotels in various stages of development to be
operated under management or franchise agreements, including a
Mondrian property in Doha, Qatar.
For more information please visit www.morganshotelgroup.com.
Forward-Looking and Cautionary Statements
This press release may contain certain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements relate to,
among other things, the operating performance of our investments
and financing needs. Forward-looking statements are generally
identifiable by use of forward-looking terminology such as "may,"
"will," "should," "potential," "intend," "expect," "endeavor,"
"seek," "anticipate," "estimate," "overestimate," "underestimate,"
"believe," "could," "project," "predict," "continue" or other
similar words or expressions. These forward-looking
statements reflect our current views about future events and are
subject to risks, uncertainties, assumptions and changes in
circumstances that may cause our actual results to differ
materially from those expressed in any forward-looking statement.
Forward-looking statements in this press release include, without
limitation, statements regarding the Company's expectation related
to its ability to grow in the future, expected hotel openings and
its development efforts, including the opening of new hotels in the
future, and renovations at Hudson.
Important risks and factors that could cause our actual results
to differ materially from those expressed in any forward-looking
statements include, but are not limited to economic, business,
competitive market and regulatory conditions such as: a downturn in
economic and market conditions, both in the U.S. and
internationally, particularly as it impacts demand for travel,
hotels, dining and entertainment; the Company's levels of debt, its
ability to refinance its current outstanding debt, repay
outstanding debt or make payments on guaranties as they may become
due, general volatility of the capital markets and the Company's
ability to access the capital markets and the ability of our joint
ventures to do the foregoing; the impact of financial and other
covenants in the Company's loan agreements and other debt
instruments that limit the Company's ability to borrow and restrict
its operations; the Company's history of losses; the Company's
ability to compete in the "boutique" or "lifestyle" hotel segments
of the hospitality industry and changes in the competitive
environment in the Company's industry and the markets where it
invests; the Company's ability to protect the value of its name,
image and brands and its intellectual property; risks related to
natural disasters, terrorist attacks, the threat of terrorist
attacks and similar disasters; risks related to the Company's
international operations, such as global economic conditions,
political or economic instability, compliance with foreign
regulations and satisfaction of international business and
workplace requirements; the Company's ability to timely fund the
renovations and capital improvements necessary to maintain its
properties at the quality of the Morgans Hotel Group and associated
brands; risks associated with the acquisition, development and
integration of properties and businesses; the risks of conducting
business through joint venture entities over which the Company may
not have full control; the Company's ability to perform under
management agreements and to resolve any disputes with owners of
properties that the Company manages but does not wholly own;
potential terminations of management agreements; the impact of any
material litigation, claims or disputes, including labor disputes;
the seasonal nature of the hospitality business and other aspects
of the hospitality industry that are beyond the Company's; our
ability to comply with complex U.S. and international regulations,
including regulations related to the environment, labor, food and
beverage operations and data privacy; ability to maintain effective
and competitive technology platforms; ownership of a substantial
block of our common stock by a small number of investors and the
ability of such investors to influence key decisions; the impact of
any dividend payments or accruals on our preferred securities on
our cash flow and the value of our common stock; the impact of any
strategic alternatives considered by the special transaction
committee of our Board of Directors and/or pursued by the Company;
and other risk factors discussed in the Company's Annual Report on
Form 10-K for the fiscal year ended December
31, 2013, which was filed with the Securities and Exchange
Commission (the "SEC") on March 13,
2014, and other documents filed by the Company with the SEC
from time to time. All forward-looking statements in this press
release are made as of the date hereof, based upon information
known to management as of the date hereof, and the Company assumes
no obligations to update or revise any of its forward-looking
statements even if experience or future changes show that indicated
results or events will not be realized.
Income
Statements
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Year
|
|
|
|
|
|
Ended December
31,
|
|
Ended December
31,
|
|
|
|
|
|
2014
|
2013
|
|
2014
|
2013
|
|
|
|
|
|
|
|
|
|
|
Revenues :
|
|
|
|
|
|
|
|
|
|
Rooms
|
|
|
|
|
$ 33,021
|
$ 33,520
|
|
$ 123,781
|
$
120,823
|
Food &
beverage
|
|
|
|
|
21,056
|
24,372
|
|
82,233
|
84,085
|
Other
hotel
|
|
|
|
|
2,093
|
1,479
|
|
6,225
|
4,863
|
|
Total hotel
revenues
|
|
|
|
56,170
|
59,371
|
|
212,239
|
209,771
|
Management
fee-related parties and other income
|
|
|
6,213
|
5,495
|
|
22,722
|
26,715
|
|
Total
revenues
|
|
|
|
62,383
|
64,866
|
|
234,961
|
236,486
|
|
|
|
|
|
|
|
|
|
|
Operating Costs and
Expenses :
|
|
|
|
|
|
|
|
|
Rooms
|
|
|
|
|
9,437
|
9,326
|
|
37,333
|
36,624
|
Food &
beverage
|
|
|
|
|
15,613
|
17,428
|
|
60,447
|
61,763
|
Other
departmental
|
|
|
|
942
|
839
|
|
3,311
|
3,261
|
Hotel selling,
general and administrative
|
|
|
|
10,320
|
11,254
|
|
41,724
|
43,942
|
Property taxes,
insurance and other
|
|
|
|
4,395
|
4,698
|
|
16,549
|
17,339
|
|
Total hotel operating
expenses
|
|
|
40,707
|
43,545
|
|
159,364
|
162,929
|
Corporate expenses
:
|
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
|
|
351
|
525
|
|
3,447
|
4,077
|
|
Other
|
|
|
|
4,652
|
4,632
|
|
22,583
|
23,549
|
Depreciation and
amortization
|
|
|
|
6,981
|
6,839
|
|
28,875
|
27,374
|
Restructuring and
disposal costs
|
|
|
|
2,162
|
3,500
|
|
14,531
|
11,451
|
Development
costs
|
|
|
|
781
|
619
|
|
4,709
|
2,987
|
Impairment loss on
receivables and other assets from managed hotel and unconsolidated
joint venture
|
-
|
87
|
|
-
|
6,029
|
|
Total operating costs
and expenses
|
|
55,634
|
59,747
|
|
233,509
|
238,396
|
|
Operating income
(loss)
|
|
|
6,749
|
5,119
|
|
1,452
|
(1,910)
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
|
12,391
|
11,556
|
|
54,308
|
45,990
|
Equity in (income)
loss of unconsolidated joint ventures
|
|
(2)
|
55
|
|
(9)
|
828
|
Gain on asset
sales
|
|
|
|
(2,005)
|
(2,005)
|
|
(8,020)
|
(8,020)
|
Other non-operating
expenses
|
|
|
|
1,785
|
1,437
|
|
3,735
|
2,726
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
tax expense
|
|
|
(5,420)
|
(5,924)
|
|
(48,562)
|
(43,434)
|
|
Income tax
expense
|
|
|
|
1,130
|
175
|
|
1,481
|
716
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
|
(6,550)
|
(6,099)
|
|
(50,043)
|
(44,150)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
(177)
|
(303)
|
|
(681)
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Morgans Hotel Group
|
|
$
(6,727)
|
$
(6,402)
|
|
$ (50,724)
|
$
(44,155)
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends and accretion
|
|
(3,879)
|
(4,340)
|
|
(15,827)
|
(14,316)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common stockholders
|
|
$ (10,606)
|
$ (10,742)
|
|
$ (66,551)
|
$
(58,471)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
Basic and diluted
attributable to common stockholders
|
$
(0.31)
|
$
(0.32)
|
|
$
(1.95)
|
$
(1.78)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic and diluted
|
34,370
|
33,555
|
|
34,133
|
32,867
|
Selected Hotel
Operating Statistics
|
( In Actual
Dollars)
|
|
|
( In Constant
Dollars, if different)
|
( In Actual
Dollars)
|
|
|
( In Constant
Dollars, if different)
|
|
|
|
|
Three
Months
|
|
|
Three
Months
|
|
|
Year
|
|
|
Year
|
|
|
|
|
|
Ended December
31,
|
%
|
|
Ended December
31,
|
%
|
|
Ended December
31,
|
%
|
|
Ended December
31,
|
%
|
|
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
BY
REGION
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northeast
Comparable Hotels (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
91.3%
|
91.3%
|
0.0%
|
|
|
|
|
|
89.7%
|
88.6%
|
1.2%
|
|
|
|
|
|
ADR
|
|
|
$ 293.33
|
$ 305.14
|
-3.9%
|
|
|
|
|
|
$ 265.89
|
$ 269.76
|
-1.4%
|
|
|
|
|
|
RevPAR
|
|
|
$ 267.81
|
$ 278.59
|
-3.9%
|
|
|
|
|
|
$ 238.50
|
$ 239.01
|
-0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
West Coast
Comparable Hotels (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
87.9%
|
80.5%
|
9.2%
|
|
|
|
|
|
89.3%
|
84.9%
|
5.2%
|
|
|
|
|
|
ADR
|
|
|
$ 262.30
|
$ 251.37
|
4.3%
|
|
|
|
|
|
$ 273.16
|
$ 257.65
|
6.0%
|
|
|
|
|
|
RevPAR
|
|
|
$ 230.56
|
$ 202.35
|
13.9%
|
|
|
|
|
|
$ 243.93
|
$ 218.74
|
11.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Miami Comparable
Hotels (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
62.6%
|
68.1%
|
-8.1%
|
|
|
|
|
|
70.2%
|
70.7%
|
-0.7%
|
|
|
|
|
|
ADR
|
|
|
$ 392.40
|
$ 377.34
|
4.0%
|
|
|
|
|
|
$ 357.14
|
$ 347.47
|
2.8%
|
|
|
|
|
|
RevPAR
|
|
|
$ 245.64
|
$ 256.97
|
-4.4%
|
|
|
|
|
|
$ 250.71
|
$ 245.66
|
2.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
Comparable Hotels (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
83.2%
|
82.9%
|
0.4%
|
|
|
|
|
|
84.6%
|
83.1%
|
1.8%
|
|
|
|
|
|
ADR
|
|
|
$ 305.34
|
$ 309.07
|
-1.2%
|
|
|
|
|
|
$ 287.20
|
$ 284.33
|
1.0%
|
|
|
|
|
|
RevPAR
|
|
|
$ 254.04
|
$ 256.22
|
-0.8%
|
|
|
|
|
|
$ 242.97
|
$ 236.28
|
2.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Comparable Hotels (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide
Comparable Hotels (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
83.2%
|
82.9%
|
0.4%
|
|
83.2%
|
82.9%
|
0.4%
|
|
84.6%
|
83.1%
|
1.8%
|
|
84.6%
|
83.1%
|
1.8%
|
|
ADR
|
|
|
$ 305.34
|
$ 309.07
|
-1.2%
|
|
$ 305.34
|
$ 309.07
|
-1.2%
|
|
$ 287.20
|
$ 284.33
|
1.0%
|
|
$ 287.20
|
$ 284.33
|
1.0%
|
|
RevPAR
|
|
|
$ 254.04
|
$ 256.22
|
-0.8%
|
|
$ 254.04
|
$ 256.22
|
-0.8%
|
|
$ 242.97
|
$ 236.28
|
2.8%
|
|
$ 242.97
|
$ 236.28
|
2.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Northeast Comparable
Hotels for the periods ended December 31, 2014 and 2013 consist of
Hudson, Morgans, Royalton and Mondrian SoHo in New York. Ames
in Boston is non-comparable during the periods presented as the
hotel was no longer managed by the Company effective July 17,
2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
West Coast Comparable
Hotels for the periods ended December 31, 2014 and 2013 consist of
Mondrian Los Angeles and Clift in San Francisco. Delano Las
Vegas, which opened in September 2014, is non-comparable as this
hotel is subject to a license agreement and managed by affiliates
of MGM Resorts International ("MGM").
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Miami Comparable
Hotels for the periods ended December 31, 2014 and 2013 consist of
Delano South Beach, Mondrian South Beach and Shore Club in Miami
Beach, Florida.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
United States
Comparable Hotels for the periods ended December 31, 2014 and 2013
consist of Hudson, Morgans, Royalton, Mondrian SoHo, Mondrian Los
Angeles, Clift, Delano South Beach, Mondrian South Beach and Shore
Club. Ames is non-comparable during the periods presented as
the hotel was no longer managed by the Company effective July
17, 2013, and Delano Las Vegas, which opened in September 2014, is
non-comparable as this hotel is subject to a license agreement and
managed by affiliates of MGM.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
The Company has no
International Comparable Hotels for the periods ended December 31,
2014 and 2013. Sanderson and St Martins Lane in London
are non-comparable, as they both were under major renovation during
2014. Mondrian London, which opened on September 30, 2014, is
also non-comparable. 10 Karaköy, which opened in November
2014 and is subject to a franchise agreement is
non-comparable. Delano Marrakech is non-comparable for the
periods presented as the hotel was no longer managed by the Company
effective November 12, 2013. Additionally, Hotel Las Palapas
in Mexico is non-comparable, as this hotel is not a Morgans Hotel
Group branded hotel and as of April 1, 2013, was no longer managed
by the Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
System-Wide
Comparable Hotels include all Morgans Hotel Group branded hotels
operated by the Company, except for hotels added or under major
renovation during the current or the prior year, development
projects and discontinued operations. System-Wide Comparable
Hotels for the periods ended December 31, 2014 and 2013 exclude
Sanderson and St Martins Lane in London, which both were under
renovations during 2014, Delano Las Vegas, which opened in
September 2014, is non-comparable as this hotel is subject to a
license agreement and managed by affiliates of MGM, Mondrian
London, which opened on September 30, 2014, 10 Karaköy, which
opened in November 2014 and is subject to a franchise agreement,
Ames, which the Company no longer manages effective July 17, 2013,
Delano Marrakech, which the Company no longer manages effective
November 12, 2013, and Hotel Las Palapas, which is not a Morgans
Hotel Group branded hotel, and as of April 1, 2013, was no longer
managed by the Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Hotel
Operating Statistics
|
( In Actual
Dollars)
|
|
|
( In Constant
Dollars, if different)
|
( In Actual
Dollars)
|
|
|
( In Constant
Dollars, if different)
|
|
|
|
|
Three
Months
|
|
|
Three
Months
|
|
|
Year
|
|
|
Year
|
|
|
|
|
|
Ended December
31,
|
%
|
|
Ended December
31,
|
%
|
|
Ended December
31,
|
%
|
|
Ended December
31,
|
%
|
|
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
BY
OWNERSHIP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned Comparable
Hotels (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
87.6%
|
86.5%
|
1.3%
|
|
|
|
|
|
88.2%
|
85.6%
|
3.0%
|
|
|
|
|
|
ADR
|
|
|
$ 283.89
|
$ 294.03
|
-3.4%
|
|
|
|
|
|
$ 267.78
|
$ 269.94
|
-0.8%
|
|
|
|
|
|
RevPAR
|
|
|
$ 248.69
|
$ 254.34
|
-2.2%
|
|
|
|
|
|
$ 236.18
|
$ 231.07
|
2.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joint Venture
Comparable Hotels (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
77.8%
|
79.6%
|
-2.3%
|
|
|
|
|
|
81.5%
|
81.8%
|
-0.4%
|
|
|
|
|
|
ADR
|
|
|
$ 358.20
|
$ 346.38
|
3.4%
|
|
|
|
|
|
$ 318.34
|
$ 306.20
|
4.0%
|
|
|
|
|
|
RevPAR
|
|
|
$ 278.68
|
$ 275.72
|
1.1%
|
|
|
|
|
|
$ 259.45
|
$ 250.47
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed Comparable
Hotels (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
78.5%
|
78.4%
|
0.1%
|
|
|
|
|
|
80.1%
|
79.4%
|
0.9%
|
|
|
|
|
|
ADR
|
|
|
$ 317.43
|
$ 315.91
|
0.5%
|
|
|
|
|
|
$ 306.34
|
$ 298.18
|
2.7%
|
|
|
|
|
|
RevPAR
|
|
|
$ 249.18
|
$ 247.67
|
0.6%
|
|
|
|
|
|
$ 245.38
|
$ 236.75
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide
Comparable Hotels
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
83.2%
|
82.9%
|
0.4%
|
|
83.2%
|
82.9%
|
0.4%
|
|
84.6%
|
83.1%
|
1.8%
|
|
84.6%
|
83.1%
|
1.8%
|
|
ADR
|
|
|
$ 305.34
|
$ 309.07
|
-1.2%
|
|
$ 305.34
|
$ 309.07
|
-1.2%
|
|
$ 287.20
|
$ 284.33
|
1.0%
|
|
$ 287.20
|
$ 284.33
|
1.0%
|
|
RevPAR
|
|
|
$ 254.04
|
$ 256.22
|
-0.8%
|
|
$ 254.04
|
$ 256.22
|
-0.8%
|
|
$ 242.97
|
$ 236.28
|
2.8%
|
|
$ 242.97
|
$ 236.28
|
2.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
Hotels
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
92.1%
|
91.9%
|
0.2%
|
|
|
|
|
|
90.9%
|
89.0%
|
2.1%
|
|
|
|
|
|
ADR
|
|
|
$ 251.72
|
$ 266.27
|
-5.5%
|
|
|
|
|
|
$ 229.25
|
$ 236.44
|
-3.0%
|
|
|
|
|
|
RevPAR
|
|
|
$ 231.83
|
$ 244.70
|
-5.3%
|
|
|
|
|
|
$ 208.39
|
$ 210.43
|
-1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delano South
Beach
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
65.2%
|
69.1%
|
-5.6%
|
|
|
|
|
|
70.6%
|
68.6%
|
2.9%
|
|
|
|
|
|
ADR
|
|
|
$ 575.52
|
$ 571.20
|
0.8%
|
|
|
|
|
|
$ 520.41
|
$ 524.66
|
-0.8%
|
|
|
|
|
|
RevPAR
|
|
|
$ 375.24
|
$ 394.70
|
-4.9%
|
|
|
|
|
|
$ 367.41
|
$ 359.92
|
2.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clift
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
88.8%
|
83.2%
|
6.7%
|
|
|
|
|
|
91.1%
|
86.7%
|
5.1%
|
|
|
|
|
|
ADR
|
|
|
$ 250.91
|
$ 245.34
|
2.3%
|
|
|
|
|
|
$ 255.55
|
$ 244.88
|
4.4%
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|
|
RevPAR
|
|
|
$ 222.81
|
$ 204.12
|
9.2%
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|
|
|
|
|
$ 232.81
|
$ 212.31
|
9.7%
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(1)
|
Owned Comparable
Hotels for the periods ended December 31, 2014 and 2013 consist of
Hudson, Delano South Beach, and Clift in San
Francisco.
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(2)
|
Joint Venture
Comparable Hotels for the periods ended December 31, 2014 and 2013
consist of Mondrian South Beach and Mondrian SoHo. Ames is
non-comparable for the periods presented as effective April 26,
2013, the Company entered into an agreement with its joint venture
partner pursuant to which, among other things, the Company assigned
its equity interests in the joint venture to its joint venture
partner. Prior to April 26, 2013, the Company owned Ames
through an unconsolidated joint venture in which the Company held a
minority interest ownership of approximately 31%. Effective
July 17, 2013, the Company no longer manages this hotel.
Shore Club is non-comparable for the periods presented as effective
December 30, 2013, the Company no longer had a meaningful ownership
interest in the hotel. Prior to December 30, 2013, the Company
owned Shore Club through an unconsolidated joint venture in which
the Company held a minority interest ownership of approximately 7%.
The Company continues to manage Shore Club. Effective March
6, 2015, the Company no longer holds any equity interest in
Mondrian SoHo.
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(3)
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Managed Comparable
Hotels for the periods ended December 31, 2014 and 2013 consist of
Morgans, Royalton, Shore Club, and Mondrian Los Angeles.
Managed hotels that are non-comparable for the periods presented
are Sanderson and St Martins Lane in London, which both were under
renovations during 2014, Mondrian London, which opened on September
30, 2014, Delano Marrakech, which was no longer managed by the
Company effective November 12, 2013, Hotel Las Palapas, which is
not a Morgans Hotel Group branded hotel and as of April 1, 2013,
was no longer managed by the Company, and Ames, which was no longer
managed by the Company effective July 17, 2013.
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|
Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
The Company believes that EBITDA is a useful financial metric to
assess its operating performance before the impact of investing and
financing transactions and income taxes. It also facilitates
comparison between the Company and its competitors. Given the
significant investments that the Company and its joint ventures
have made in the past in property and equipment, depreciation and
amortization expense comprises a meaningful portion of our cost
structure. The Company believes that EBITDA will provide investors
with a useful tool for assessing the comparability between periods
because it eliminates depreciation and amortization expense
attributable to capital expenditures.
The Company's management has historically used adjusted EBITDA
("Adjusted EBITDA") when evaluating the operating performance for
the entire Company as well as for individual properties or groups
of properties because it believes the Company's core business model
is that of an owner and operator of hotels, and the inclusion or
exclusion of certain items is necessary to provide the most
accurate measure of on-going core operating results and to evaluate
comparative results period over period. As such, Adjusted
EBITDA excludes other non-operating expense (income) that does not
relate to the on-going performance of our assets. The Company
excludes the following items from EBITDA to arrive at Adjusted
EBITDA:
- Other non-operating expenses, such as costs associated with
discontinued operations and previously owned hotels, both
consolidated and unconsolidated, transaction costs related to
business acquisitions, changes in the fair value of debt and equity
instruments, miscellaneous litigation and settlement costs and
other expenses that relate to the financing and investing
activities of the Company;
- Restructuring and disposal costs, which include expenses
incurred related to the Company's corporate restructuring
initiatives, such as professional fees, litigation and settlement
costs, executive terminations and severance costs related to such
restructuring initiatives, including the March 2014 corporate office termination plan and
proxy contests, and gains or losses on asset disposals as part of
major renovation projects or restructuring;
- Development costs, including transaction costs related to the
acquisition or termination of projects, internal development
payroll and other costs and pre-opening expenses incurred related
to new concepts at existing hotel and the development of new
hotels, and the write-off of abandoned development projects
previously capitalized;
- Impairment loss on development projects and hotels and
receivables from unconsolidated joint ventures and managed hotels.
The Company may incur additional non-cash impairment charges
related to assets under development, wholly-owned assets, or our
investments in joint ventures. The Company believes these
adjustments are necessary to provide the most accurate measure of
core operating results as a means to evaluate comparative
results;
- EBITDA related to hotels and food and beverage entities
reported as discontinued operations to more accurately reflect the
operating performance of assets in which the Company expects to
have an ongoing direct or indirect ownership interest;
- Stock-based compensation expense, as this is not necessarily an
indication of the operating performance of the Company's assets;
and
- Gains recognized on asset sales, as the Company believes that
including them in Adjusted EBITDA is not consistent with reflecting
the ongoing performance of its assets. In addition, the Company
believes material gains or losses from the net book value of
disposed assets is not particularly meaningful given that the
depreciated asset value on which the gains are calculated often
does not reflect market value of the assets.
The Company also makes an adjustment to EBITDA for hotels in
which its percentage ownership interest has changed to facilitate
period-over-period comparisons and to more accurately reflect the
operating performance of assets based on its actual
ownership. In this respect, the Company's method of
calculating Adjusted EBITDA may change from prior periods, and
calculations of Adjusted EBITDA could continue to vary from quarter
to quarter to reflect changing ownership interests.
The Company believes Adjusted EBITDA provides management and its
investors with a more accurate financial metric by which to
evaluate our performance as it eliminates the impact of costs
incurred related to investing and financing transactions.
Internally, the Company's management utilizes Adjusted EBITDA to
measure the performance of its core on-going operations and is used
extensively during its annual budgeting process. Management
also uses Adjusted EBITDA as a measure in determining the value of
acquisitions, expansion opportunities, and dispositions and
borrowing capacity. Adjusted EBITDA is a key metric which
management evaluates prior to execution of any strategic investing
or financing opportunity.
The Company has historically reported Adjusted EBITDA to its
investors and believes that this continued inclusion of Adjusted
EBITDA provides consistency in its financial reporting and enables
investors to perform more meaningful comparisons of past, present
and future operating results and to evaluate the results of its
core on-going operations.
The use of EBITDA and Adjusted EBITDA has certain limitations.
The Company's presentation of EBITDA and Adjusted EBITDA may be
different from the presentation used by other companies and
therefore comparability may be limited. Depreciation expense for
various long-term assets, interest expense, income taxes and other
items have been and will be incurred and are not reflected in the
presentation of EBITDA or Adjusted EBITDA. Each of these items
should also be considered in the overall evaluation of the
Company's results. Additionally, EBITDA and Adjusted EBITDA do not
reflect capital expenditures and other investing activities and
should not be considered as a measure of the Company's liquidity.
The Company compensates for these limitations by providing the
relevant disclosure of its depreciation, interest and income tax
expense, capital expenditures and other items in its
reconciliations to its financial measures under U.S. GAAP and/or in
its consolidated financial statements, all of which should be
considered when evaluating its performance. The term EBITDA is not
defined under U.S. GAAP and EBITDA is not a measure of net income,
operating income, operating performance or liquidity presented in
accordance with U.S. GAAP. In addition, EBITDA is impacted by
reorganization of businesses and other restructuring-related
charges. When assessing the Company's operating performance, you
should not consider this data in isolation, or as a substitute for
the Company's net income, operating income or any other operating
performance measure that is calculated in accordance with U.S.
GAAP.
A reconciliation of net loss, the most directly comparable U.S.
GAAP measure, to EBITDA and Adjusted EBITDA for each of the
respective periods indicated is as follows:
EBITDA
Reconciliation
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
Three
Months
|
|
Year
|
|
|
|
|
|
|
Ended December
31,
|
|
Ended December
31,
|
|
|
|
|
|
|
2014
|
2013
|
|
2014
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Morgans Hotel Group Co.
|
|
$
(6,727)
|
$
(6,402)
|
|
$
(50,724)
|
$
(44,155)
|
Interest expense,
net
|
|
|
|
|
12,391
|
11,556
|
|
54,308
|
45,990
|
Income tax
expense
|
|
|
|
|
1,130
|
175
|
|
1,481
|
716
|
Depreciation and
amortization expense
|
|
|
6,981
|
6,839
|
|
28,875
|
27,374
|
Proportionate share
of interest expense
|
|
|
|
|
|
|
|
from
unconsolidated joint ventures
|
|
|
1,154
|
(311)
|
|
4,598
|
6,311
|
Proportionate share
of depreciation expense
|
|
|
|
|
|
|
from
unconsolidated joint ventures
|
|
|
385
|
88
|
|
1,567
|
1,944
|
Net (income) loss
attributable to noncontrolling interest
|
|
(13)
|
116
|
|
(111)
|
(988)
|
Proportionate share
of loss from unconsolidated joint
|
|
|
|
|
|
|
ventures not
recorded due to negative investment balances
|
|
(858)
|
872
|
|
(4,988)
|
(6,192)
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
|
|
14,443
|
12,933
|
|
35,006
|
31,000
|
|
|
|
|
|
|
|
|
|
|
|
Other non operating
expenses
|
|
|
|
1,785
|
1,437
|
|
3,735
|
2,726
|
Other non operating
expense from unconsolidated
|
|
|
|
|
|
|
joint
ventures
|
|
|
|
|
171
|
435
|
|
1,652
|
1,892
|
Restructuring and
disposal costs
|
|
|
2,162
|
3,500
|
|
14,531
|
11,451
|
Development
costs
|
|
|
|
|
781
|
619
|
|
4,709
|
2,987
|
Impairment loss on
receivables from managed hotel
and
unconsolidated joint venture
|
|
-
|
87
|
|
-
|
6,029
|
Stock based
compensation expense
|
|
|
351
|
525
|
|
3,447
|
4,077
|
Gain on asset
sales
|
|
|
|
|
(2,005)
|
(2,005)
|
|
(8,020)
|
(8,020)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
$
17,688
|
$
17,531
|
|
$
55,060
|
$
52,142
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
Excluding The Light Group
|
|
$
16,195
|
$
16,079
|
|
$
48,723
|
$
43,939
|
Hotel EBITDA
Analysis (1)
|
|
|
|
|
|
|
|
|
(In thousands,
except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
|
Year
|
|
|
|
|
|
Ended December
31,
|
%
|
|
Ended December
31,
|
%
|
|
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Hudson
|
|
|
|
$ 7,881
|
$ 8,244
|
-4%
|
|
$ 21,788
|
$ 20,851
|
4%
|
Delano South
Beach
|
|
5,470
|
4,913
|
11%
|
|
19,426
|
16,423
|
18%
|
Clift
|
|
|
|
1,393
|
1,415
|
-2%
|
|
7,734
|
7,010
|
10%
|
|
Owned Comparable
Hotels (2)
|
14,744
|
14,572
|
1%
|
|
48,948
|
44,284
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
Mondrian SoHo - Joint
Venture
|
|
875
|
760
|
15%
|
|
2,753
|
2,484
|
11%
|
Mondrian South Beach
- Joint Venture (3)
|
(22)
|
227
|
-110%
|
|
84
|
504
|
-83%
|
Shore Club
(4)
|
|
|
-
|
98
|
-100%
|
|
-
|
290
|
-100%
|
St Martins Lane food
and beverage (5)
|
-
|
238
|
-100%
|
|
-
|
-
|
0%
|
Sanderson food and
beverage (5)
|
-
|
146
|
-100%
|
|
-
|
-
|
0%
|
Las Vegas restaurant
leases (6)
|
|
720
|
925
|
-22%
|
|
3,987
|
2,555
|
56%
|
Ames (7)
|
|
|
|
-
|
-
|
0%
|
|
-
|
(95)
|
-100%
|
|
Other Hotel and
F&B EBITDA
|
1,573
|
2,394
|
166%
|
|
6,824
|
5,738
|
219%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
.
|
|
|
|
.
|
|
|
Total Hotel and
F&B EBITDA
|
$
16,317
|
$
16,966
|
-4%
|
|
$
55,772
|
$
50,022
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For joint
venture hotels, represents the Company's share of the respective
hotels' EBITDA, after management fees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Reflects
the Company's comparable owned hotels.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Effective
March 6, 2015, the Company no longer holds any equity ownership in
Mondrian SoHo.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Effective
December 30, 2013, the Company no longer had a meaningful ownership
interest in Shore Club. Prior to December 30, 2013, the Company
owned Shore Club through an unconsolidated joint venture in which
the Company held a minority interest ownership of approximately 7%.
The Company continues to manage Shore Club.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) The Company owned
100% of the food and beverge joint venture entity which leased and
operated all food and beverage venues located at Sanderson and St
Martins Lane. MHG continued to own and operate the food and
beverage venues at the hotels under a lease agreement with the
hotel owner. Effective January 1, 2014, the Company
transferred all of its ownerhship interest in the food and beverage
venues at St Martins Lane to the hotel owner. The Company
will continue to manage the transferred food and beverage venues.
The Company continues to lease and operate certain food and
beverage venues at Sanderson. Amounts presented represent the
respective hotels' food and beverage EBITDA, after management
fees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) Reflects EBITDA
from the leasehold interests in three food and beverage venues at
Mandalay Bay in Las Vegas which the Company acquired in August
2012. The three venues were re-concepted and renovated and
opened in December 2012, February 2013 and July 2013,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) On April 26,
2013, the Company entered into an agreement with its joint venture
partner pursuant to which, among other things, the Company assigned
its equity interests in the joint venture to its joint venture
partner. Prior to April 26, 2013, the Company owned Ames
through an unconsolidated joint venture in which the Company held a
minority interest ownership of approximately 31%. Effective
July 17, 2013, the Company no longer manages this
hotel.
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned Hotel Room
Revenue Analysis
|
|
|
|
|
|
|
|
(In thousands,
except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
|
Year
|
|
|
|
|
|
Ended December
31,
|
%
|
|
Ended December
31,
|
%
|
|
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Hudson
|
|
|
|
$ 18,701
|
$ 19,489
|
-4%
|
|
$ 66,144
|
$ 66,505
|
-1%
|
Delano South
Beach
|
|
|
6,695
|
7,045
|
-5%
|
|
26,019
|
25,485
|
2%
|
Clift
|
|
|
|
7,625
|
6,986
|
9%
|
|
31,618
|
28,833
|
10%
|
|
Total Owned
Hotels
|
|
$
33,021
|
$
33,520
|
-1%
|
|
$
123,781
|
$
120,823
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned Hotel
Revenue Analysis
|
Three
Months
|
|
|
Year
|
|
(In thousands,
except percentages)
|
Ended December
31,
|
%
|
|
Ended December
31,
|
%
|
|
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Hudson
|
|
|
|
$ 24,178
|
$ 24,073
|
0%
|
|
$ 85,177
|
$ 81,534
|
4%
|
Delano South
Beach
|
|
|
13,027
|
13,048
|
0%
|
|
48,840
|
47,504
|
3%
|
Clift
|
|
|
|
10,962
|
10,496
|
4%
|
|
44,061
|
42,102
|
5%
|
|
Total Owned
Hotels
|
|
$
48,167
|
$
47,617
|
1%
|
|
$
178,078
|
$
171,140
|
4%
|
Balance
Sheets
|
|
|
|
(In
thousands)
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
|
|
|
ASSETS:
|
|
|
|
Property and
equipment, net
|
$ 277,825
|
|
$
292,496
|
Goodwill
|
54,057
|
|
54,057
|
Investments in and
advances to unconsolidated joint ventures
|
10,492
|
|
10,492
|
Assets held for
sale
|
34,284
|
|
41,668
|
Cash and cash
equivalents
|
13,493
|
|
10,025
|
Restricted
cash
|
13,939
|
|
22,144
|
Accounts receivable,
net
|
10,475
|
|
13,833
|
Related party
receivables
|
3,560
|
|
3,694
|
Prepaid expenses and
other assets
|
8,493
|
|
10,162
|
Deferred tax asset,
net
|
77,204
|
|
78,758
|
Other assets,
net
|
47,422
|
|
33,878
|
Total
assets
|
$
551,244
|
|
$
571,207
|
|
|
|
|
LIABILITIES and
STOCKHOLDERS' DEFICIT:
|
|
|
|
Debt and capital
lease obligations, net
|
$ 605,743
|
|
$
541,940
|
Debt of assets held
for sale
|
-
|
|
18,811
|
Accounts payable and
accrued liabilities
|
32,524
|
|
39,340
|
Accounts payable and
accrued liabilities of assets held for sale
|
1,128
|
|
2,287
|
Deferred gain on
asset sales
|
125,398
|
|
133,419
|
Other
liabilities
|
13,866
|
|
13,891
|
Total
liabilities
|
778,659
|
|
749,688
|
|
|
|
|
Redeemable
noncontrolling interest
|
5,042
|
|
4,953
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Total Morgans Hotel
Group Co. stockholders' deficit
|
(233,006)
|
|
(183,924)
|
Noncontrolling
interest
|
549
|
|
490
|
Total
deficit
|
(232,457)
|
|
(183,434)
|
|
|
|
|
Total liabilities,
redeemable noncontrolling interest and stockholders'
deficit
|
$
551,244
|
|
$
571,207
|
Contacts:
Investors
Richard Szymanski
Morgans Hotel Group Co.
212.277.4188
Media
Daniel Gagnier/
Nathaniel Garnick
Sard Verbinnen & Co
212.687.8080
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/morgans-hotel-group-reports-fourth-quarter-and-full-year-2014-results-300050108.html
SOURCE Morgans Hotel Group Co.