☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 27-4706509 | |||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
3 Bethesda Metro Center, Suite 1000 | |||||||||||
Bethesda, | Maryland | 20814 | |||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of Class | Trading Symbol | Name of Exchange on Which Registered | ||||||||||||
Common Shares of beneficial interest, par value $0.01 per share | RLJ | New York Stock Exchange | ||||||||||||
$1.95 Series A Cumulative Convertible Preferred Shares, par value $0.01 per share | RLJ-A | New York Stock Exchange |
Page | ||||||||
Consolidated Financial Statements (unaudited) | ||||||||
June 30, 2021 | December 31, 2020 | ||||||||||
Assets | |||||||||||
Investment in hotel properties, net | $ | 4,395,901 | $ | 4,486,416 | |||||||
Investment in unconsolidated joint ventures | 6,891 | 6,798 | |||||||||
Cash and cash equivalents | 657,892 | 899,813 | |||||||||
Restricted cash reserves | 38,842 | 34,977 | |||||||||
Hotel and other receivables, net of allowance of $90 and $292, respectively | 25,352 | 13,346 | |||||||||
Lease right-of-use assets | 140,321 | 142,989 | |||||||||
Prepaid expense and other assets | 31,338 | 32,833 | |||||||||
Total assets | $ | 5,296,537 | $ | 5,617,172 | |||||||
Liabilities and Equity | |||||||||||
Debt, net | $ | 2,407,345 | $ | 2,587,731 | |||||||
Accounts payable and other liabilities | 150,713 | 172,325 | |||||||||
Advance deposits and deferred revenue | 22,777 | 32,177 | |||||||||
Lease liabilities | 121,305 | 122,593 | |||||||||
Accrued interest | 6,140 | 6,206 | |||||||||
Distributions payable | 8,339 | 8,752 | |||||||||
Total liabilities | 2,716,619 | 2,929,784 | |||||||||
Commitments and Contingencies (Note 11) | |||||||||||
Equity | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized | |||||||||||
Series A Cumulative Convertible Preferred Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475 shares issued and outstanding, liquidation value of $328,266, at June 30, 2021 and December 31, 2020 | 366,936 | 366,936 | |||||||||
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 166,626,796 and 165,002,752 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 1,666 | 1,650 | |||||||||
Additional paid-in capital | 3,083,175 | 3,077,142 | |||||||||
Accumulated other comprehensive loss | (36,297) | (69,050) | |||||||||
Distributions in excess of net earnings | (855,106) | (710,161) | |||||||||
Total shareholders’ equity | 2,560,374 | 2,666,517 | |||||||||
Noncontrolling interests: | |||||||||||
Noncontrolling interest in consolidated joint ventures | 12,349 | 13,002 | |||||||||
Noncontrolling interest in the Operating Partnership | 7,195 | 7,869 | |||||||||
Total noncontrolling interests | 19,544 | 20,871 | |||||||||
Total equity | 2,579,918 | 2,687,388 | |||||||||
Total liabilities and equity | $ | 5,296,537 | $ | 5,617,172 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Operating revenues | |||||||||||||||||||||||
Room revenue | $ | 166,554 | $ | 27,853 | $ | 269,326 | $ | 246,745 | |||||||||||||||
Food and beverage revenue | 12,983 | 1,271 | 19,225 | 32,039 | |||||||||||||||||||
Other revenue | 14,717 | 3,467 | 25,255 | 19,289 | |||||||||||||||||||
Total revenues | 194,254 | 32,591 | 313,806 | 298,073 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Room expense | 42,898 | 12,469 | 72,325 | 76,222 | |||||||||||||||||||
Food and beverage expense | 8,709 | 1,801 | 13,265 | 28,181 | |||||||||||||||||||
Management and franchise fee expense | 12,630 | (1,827) | 17,991 | 15,317 | |||||||||||||||||||
Other operating expense | 56,883 | 37,933 | 106,003 | 118,890 | |||||||||||||||||||
Total property operating expenses | 121,120 | 50,376 | 209,584 | 238,610 | |||||||||||||||||||
Depreciation and amortization | 46,915 | 49,229 | 93,858 | 98,402 | |||||||||||||||||||
Impairment losses | — | — | 5,946 | — | |||||||||||||||||||
Property tax, insurance and other | 24,048 | 25,348 | 44,129 | 54,041 | |||||||||||||||||||
General and administrative | 12,133 | 11,673 | 22,934 | 23,441 | |||||||||||||||||||
Transaction costs | 195 | 20 | 255 | 30 | |||||||||||||||||||
Total operating expenses | 204,411 | 136,646 | 376,706 | 414,524 | |||||||||||||||||||
Other (expense) income, net | (9,720) | 282 | (9,255) | 859 | |||||||||||||||||||
Interest income | 220 | 579 | 604 | 3,545 | |||||||||||||||||||
Interest expense | (26,366) | (23,794) | (54,261) | (47,607) | |||||||||||||||||||
Gain (loss) on sale of hotel properties, net | 103 | (8) | 1,186 | 94 | |||||||||||||||||||
Loss on extinguishment of indebtedness, net | (6,207) | — | (6,207) | — | |||||||||||||||||||
Loss before equity in income (loss) from unconsolidated joint ventures | (52,127) | (126,996) | (130,833) | (159,560) | |||||||||||||||||||
Equity in income (loss) from unconsolidated joint ventures | 60 | (975) | (238) | (390) | |||||||||||||||||||
Loss before income tax (expense) benefit | (52,067) | (127,971) | (131,071) | (159,950) | |||||||||||||||||||
Income tax (expense) benefit | (154) | 11,805 | (268) | 12,955 | |||||||||||||||||||
Net loss | (52,221) | (116,166) | (131,339) | (146,995) | |||||||||||||||||||
Net loss attributable to noncontrolling interests: | |||||||||||||||||||||||
Noncontrolling interest in consolidated joint ventures | 506 | 524 | 1,242 | 1,837 | |||||||||||||||||||
Noncontrolling interest in the Operating Partnership | 268 | 568 | 664 | 760 | |||||||||||||||||||
Net loss attributable to RLJ | (51,447) | (115,074) | (129,433) | (144,398) | |||||||||||||||||||
Preferred dividends | (6,279) | (6,279) | (12,557) | (12,557) | |||||||||||||||||||
Net loss attributable to common shareholders | $ | (57,726) | $ | (121,353) | $ | (141,990) | $ | (156,955) | |||||||||||||||
Basic and diluted per common share data: | |||||||||||||||||||||||
Net loss per share attributable to common shareholders | $ | (0.35) | $ | (0.74) | $ | (0.87) | $ | (0.95) | |||||||||||||||
Weighted-average number of common shares | 163,996,003 | 163,543,701 | 163,911,475 | 165,346,717 | |||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||
Net loss | $ | (52,221) | $ | (116,166) | $ | (131,339) | $ | (146,995) | |||||||||||||||
Unrealized gain (loss) on interest rate derivatives | 5,375 | (6,582) | 22,095 | (63,059) | |||||||||||||||||||
Reclassification of unrealized losses on discontinued cash flow hedges to other (expense) income, net | 10,658 | — | 10,658 | — | |||||||||||||||||||
Comprehensive loss | (36,188) | (122,748) | (98,586) | (210,054) | |||||||||||||||||||
Comprehensive loss attributable to noncontrolling interests: | |||||||||||||||||||||||
Noncontrolling interest in consolidated joint ventures | 506 | 524 | 1,242 | 1,837 | |||||||||||||||||||
Noncontrolling interest in the Operating Partnership | 268 | 568 | 664 | 760 | |||||||||||||||||||
Comprehensive loss attributable to RLJ | $ | (35,414) | $ | (121,656) | $ | (96,680) | $ | (207,457) |
Shareholders’ Equity | Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares |
Par
Value |
Additional
Paid-in Capital |
Distributions in excess of net earnings |
Accumulated Other Comprehensive
Loss |
Operating
Partnership |
Consolidated
Joint Ventures |
Total
Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 12,879,475 | $ | 366,936 | 165,002,752 | $ | 1,650 | $ | 3,077,142 | $ | (710,161) | $ | (69,050) | $ | 7,869 | $ | 13,002 | $ | 2,687,388 | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (129,433) | — | (664) | (1,242) | (131,339) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on interest rate derivatives | — | — | — | — | — | — | 22,095 | — | — | 22,095 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of unrealized losses on discontinued cash flow hedges to other (expense) income, net | — | — | — | — | — | — | 10,658 | — | — | 10,658 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from consolidated joint venture partners | — | — | — | — | — | — | — | — | 589 | 589 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock | — | — | 1,759,193 | 17 | (17) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of share-based compensation | — | — | — | — | 8,124 | — | — | — | — | 8,124 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | — | — | (133,767) | (1) | (2,074) | — | — | — | — | (2,075) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock | — | — | (1,382) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions on preferred shares | — | — | — | — | — | (12,557) | — | — | — | (12,557) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions on common shares and units | — | — | — | — | — | (2,955) | — | (10) | — | (2,965) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 12,879,475 | $ | 366,936 | 166,626,796 | $ | 1,666 | $ | 3,083,175 | $ | (855,106) | $ | (36,297) | $ | 7,195 | $ | 12,349 | $ | 2,579,918 |
Shareholders’ Equity | Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares |
Par
Value |
Additional
Paid-in Capital |
Distributions in excess of net earnings |
Accumulated Other Comprehensive
Loss |
Operating
Partnership |
Consolidated
Joint Ventures |
Total
Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 12,879,475 | $ | 366,936 | 164,918,126 | $ | 1,649 | $ | 3,078,824 | $ | (795,706) | $ | (52,330) | $ | 7,470 | $ | 12,365 | $ | 2,619,208 | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (51,447) | — | (268) | (506) | (52,221) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on interest rate derivatives | — | — | — | — | — | — | 5,375 | — | — | 5,375 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of unrealized losses on discontinued cash flow hedges to other (expense) income, net | — | — | — | — | — | — | 10,658 | — | — | 10,658 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from consolidated joint venture partners | — | — | — | — | — | — | — | — | 490 | 490 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock | — | — | 1,759,193 | 17 | (17) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of share-based compensation | — | — | — | — | 5,180 | — | — | — | — | 5,180 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | — | — | (50,523) | — | (812) | — | — | — | — | (812) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions on preferred shares | — | — | — | — | — | (6,279) | — | — | — | (6,279) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions on common shares and units | — | — | — | — | — | (1,674) | — | (7) | — | (1,681) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 12,879,475 | $ | 366,936 | 166,626,796 | $ | 1,666 | $ | 3,083,175 | $ | (855,106) | $ | (36,297) | $ | 7,195 | $ | 12,349 | $ | 2,579,918 |
Shareholders’ Equity | Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares |
Par
Value |
Additional
Paid-in Capital |
Distributions in excess of net earnings | Accumulated Other Comprehensive Loss |
Operating
Partnership |
Consolidated
Joint Ventures |
Total
Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 12,879,475 | $ | 366,936 | 169,852,246 | $ | 1,699 | $ | 3,127,982 | $ | (274,769) | $ | (19,514) | $ | 10,084 | $ | 14,065 | $ | 3,226,483 | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (144,398) | — | (760) | (1,837) | (146,995) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on interest rate derivatives | — | — | — | — | — | — | (63,059) | — | — | (63,059) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of Operating Partnership units | — | — | — | — | — | — | — | (8) | — | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from consolidated joint venture partners | — | — | — | — | — | — | — | — | 1,264 | 1,264 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock | — | — | 801,463 | 8 | (8) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of share-based compensation | — | — | — | — | 6,487 | — | — | — | — | 6,487 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | — | — | (62,987) | (1) | (848) | — | — | — | — | (849) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares acquired as part of a share repurchase program | — | — | (5,489,335) | (55) | (62,550) | — | — | — | — | (62,605) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock | — | — | (8,434) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions on preferred shares | — | — | — | — | — | (12,557) | — | — | — | (12,557) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions on common shares and units | — | — | — | — | — | (2,518) | — | (172) | — | (2,690) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 12,879,475 | $ | 366,936 | 165,092,953 | $ | 1,651 | $ | 3,071,063 | $ | (434,242) | $ | (82,573) | $ | 9,144 | $ | 13,492 | $ | 2,945,471 |
Shareholders’ Equity | Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares |
Par
Value |
Additional
Paid-in Capital |
Distributions in excess of net earnings | Accumulated Other Comprehensive Loss |
Operating
Partnership |
Consolidated
Joint Ventures |
Total
Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 12,879,475 | $ | 366,936 | 164,842,781 | $ | 1,648 | $ | 3,067,693 | $ | (311,223) | $ | (75,991) | $ | 9,749 | $ | 13,022 | $ | 3,071,834 | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (115,074) | — | (568) | (524) | (116,166) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on interest rate derivatives | — | — | — | — | — | — | (6,582) | — | — | (6,582) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from consolidated joint venture partners | — | — | — | — | — | — | — | — | 994 | 994 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock | — | — | 276,294 | 3 | (3) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of share-based compensation | — | — | — | — | 3,588 | — | — | — | — | 3,588 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | — | — | (24,112) | — | (215) | — | — | — | — | (215) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock | — | — | (2,010) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions on preferred shares | — | — | — | — | — | (6,279) | — | — | — | (6,279) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions on common shares and units | — | — | — | — | — | (1,666) | — | (37) | — | (1,703) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 12,879,475 | $ | 366,936 | 165,092,953 | $ | 1,651 | $ | 3,071,063 | $ | (434,242) | $ | (82,573) | $ | 9,144 | $ | 13,492 | $ | 2,945,471 |
For the six months ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities | |||||||||||
Net loss | $ | (131,339) | $ | (146,995) | |||||||
Adjustments to reconcile net loss to cash flow used in operating activities: | |||||||||||
Gain on sale of hotel properties, net | (1,186) | (94) | |||||||||
Loss on extinguishment of indebtedness, net | 6,207 | — | |||||||||
Depreciation and amortization | 93,858 | 98,402 | |||||||||
Amortization of deferred financing costs | 2,685 | 2,067 | |||||||||
Other amortization | (1,177) | (1,192) | |||||||||
Reclassification of unrealized losses on discontinued cash flow hedges to other (expense) income, net | 10,658 | — | |||||||||
Unrealized loss on discontinued cash flow hedges | — | 1,186 | |||||||||
Equity in loss from unconsolidated joint ventures | 238 | 390 | |||||||||
Impairment losses | 5,946 | — | |||||||||
Amortization of share-based compensation | 7,600 | 6,021 | |||||||||
Deferred income taxes | — | (13,062) | |||||||||
Changes in assets and liabilities: | |||||||||||
Hotel and other receivables, net | (12,071) | 28,352 | |||||||||
Prepaid expense and other assets | 1,969 | 16,176 | |||||||||
Accounts payable and other liabilities | 2,058 | (31,642) | |||||||||
Advance deposits and deferred revenue | (9,399) | (16,243) | |||||||||
Accrued interest | (66) | 2,268 | |||||||||
Net cash flow used in operating activities | (24,019) | (54,366) | |||||||||
Cash flows from investing activities | |||||||||||
Proceeds from the sale of hotel properties, net | 16,268 | 94 | |||||||||
Improvements and additions to hotel properties | (25,087) | (44,678) | |||||||||
Purchase deposits | (1,500) | — | |||||||||
Contributions to unconsolidated joint ventures | (331) | (100) | |||||||||
Distributions from unconsolidated joint ventures in excess of earnings | — | 1,577 | |||||||||
Net cash flow used in investing activities | (10,650) | (43,107) | |||||||||
Cash flows from financing activities | |||||||||||
Borrowings under Revolver | — | 400,000 | |||||||||
Repayment of Revolver | (200,000) | — | |||||||||
Proceeds from issuance of $500 Million Senior Notes due 2026 | 500,000 | — | |||||||||
Scheduled mortgage loan principal payments | (1,488) | (1,687) | |||||||||
Repayments of Term Loans | (356,338) | — | |||||||||
Repayments of mortgage loans | (120,469) | — | |||||||||
Repurchase of common shares under a share repurchase program | — | (62,605) | |||||||||
Repurchase of common shares to satisfy employee tax withholding requirements | (2,075) | (849) | |||||||||
Distributions on preferred shares | (12,557) | (12,557) | |||||||||
Distributions on common shares | (3,369) | (57,700) | |||||||||
Distributions on and redemption of Operating Partnership units | (10) | (427) | |||||||||
Payments of deferred financing costs | (7,670) | (2,106) | |||||||||
Contributions from consolidated joint venture partners | 589 | 1,264 | |||||||||
Net cash flow (used in) provided by financing activities | (203,387) | 263,333 | |||||||||
Net change in cash, cash equivalents, and restricted cash reserves | (238,056) | 165,860 | |||||||||
Cash, cash equivalents, and restricted cash reserves, beginning of year | 934,790 | 927,160 | |||||||||
Cash, cash equivalents, and restricted cash reserves, end of period | $ | 696,734 | $ | 1,093,020 |
June 30, 2021 | December 31, 2020 | ||||||||||
Land and improvements | $ | 1,086,138 | $ | 1,089,597 | |||||||
Buildings and improvements | 4,072,090 | 4,084,712 | |||||||||
Furniture, fixtures and equipment | 695,164 | 697,404 | |||||||||
5,853,392 | 5,871,713 | ||||||||||
Accumulated depreciation | (1,457,491) | (1,385,297) | |||||||||
Investment in hotel properties, net | $ | 4,395,901 | $ | 4,486,416 |
June 30, 2021 | December 31, 2020 | ||||||||||
Equity basis of the joint venture investments | $ | (6,283) | $ | (6,687) | |||||||
Cost of the joint venture investments in excess of the joint venture book value | 13,174 | 13,485 | |||||||||
Investment in unconsolidated joint ventures | $ | 6,891 | $ | 6,798 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Operating income (loss) | $ | 215 | $ | (695) | $ | 73 | $ | 170 | |||||||||||||||
Depreciation of cost in excess of book value | (155) | (280) | (311) | (560) | |||||||||||||||||||
Equity in income (loss) income from unconsolidated joint ventures | $ | 60 | $ | (975) | $ | (238) | $ | (390) |
Hotel Property Name | Location | Sale Date | Rooms | |||||||||||||||||
Courtyard Houston Sugarland | Stafford, TX | January 21, 2021 | 112 | |||||||||||||||||
Residence Inn Indianapolis Fishers | Indianapolis, IN | May 10, 2021 | 78 | |||||||||||||||||
Residence Inn Chicago Naperville | Warrenville, IL | May 12, 2021 | 130 | |||||||||||||||||
Total | 320 |
For the three months ended June 30, 2021 | For the three months ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Room Revenue | Food and Beverage Revenue | Other Revenue | Total Revenue | Room Revenue | Food and Beverage Revenue | Other Revenue | Total Revenue | ||||||||||||||||||||||||||||||||||||||||
South Florida | $ | 28,175 | $ | 3,483 | $ | 2,177 | $ | 33,835 | $ | 2,449 | $ | 143 | $ | 291 | $ | 2,883 | |||||||||||||||||||||||||||||||
Southern California | 22,560 | 1,384 | 2,524 | 26,468 | 5,064 | 270 | 654 | 5,988 | |||||||||||||||||||||||||||||||||||||||
Northern California | 14,563 | 428 | 1,043 | 16,034 | 2,716 | 16 | 483 | 3,215 | |||||||||||||||||||||||||||||||||||||||
Chicago | 12,131 | 1,681 | 573 | 14,385 | 2,964 | 385 | 139 | 3,488 | |||||||||||||||||||||||||||||||||||||||
Charleston | 8,520 | 1,161 | 541 | 10,222 | 1,507 | 118 | 129 | 1,754 | |||||||||||||||||||||||||||||||||||||||
Houston | 7,248 | 167 | 769 | 8,184 | 1,463 | 6 | 167 | 1,636 | |||||||||||||||||||||||||||||||||||||||
New York City | 6,622 | 266 | 273 | 7,161 | 2,618 | 6 | 65 | 2,689 | |||||||||||||||||||||||||||||||||||||||
Austin | 5,952 | 317 | 709 | 6,978 | 525 | 28 | 509 | 1,062 | |||||||||||||||||||||||||||||||||||||||
Denver | 5,519 | 899 | 227 | 6,645 | 691 | 6 | 87 | 784 | |||||||||||||||||||||||||||||||||||||||
Washington, DC | 5,944 | 60 | 476 | 6,480 | 1,931 | 170 | 98 | 2,199 | |||||||||||||||||||||||||||||||||||||||
Pittsburgh | 5,440 | 706 | 204 | 6,350 | 608 | 32 | 75 | 715 | |||||||||||||||||||||||||||||||||||||||
Louisville | 3,551 | 942 | 667 | 5,160 | 292 | — | 9 | 301 | |||||||||||||||||||||||||||||||||||||||
New Orleans | 4,657 | 29 | 658 | 5,344 | 29 | — | 72 | 101 | |||||||||||||||||||||||||||||||||||||||
Orlando | 4,120 | 254 | 894 | 5,268 | (17) | — | 51 | 34 | |||||||||||||||||||||||||||||||||||||||
Atlanta | 4,501 | 83 | 605 | 5,189 | 474 | 11 | 172 | 657 | |||||||||||||||||||||||||||||||||||||||
Other | 27,051 | 1,123 | 2,377 | 30,551 | 4,539 | 80 | 466 | 5,085 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 166,554 | $ | 12,983 | $ | 14,717 | $ | 194,254 | $ | 27,853 | $ | 1,271 | $ | 3,467 | $ | 32,591 |
For the six months ended June 30, 2021 | For the six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Room Revenue | Food and Beverage Revenue | Other Revenue | Total Revenue | Room Revenue | Food and Beverage Revenue | Other Revenue | Total Revenue | ||||||||||||||||||||||||||||||||||||||||
South Florida | $ | 49,003 | $ | 5,848 | $ | 3,933 | $ | 58,784 | $ | 33,572 | $ | 4,639 | $ | 2,243 | $ | 40,454 | |||||||||||||||||||||||||||||||
Southern California | 34,465 | 1,722 | 3,931 | 40,118 | 28,924 | 3,132 | 2,798 | 34,854 | |||||||||||||||||||||||||||||||||||||||
Northern California | 23,407 | 645 | 1,743 | 25,795 | 36,227 | 3,801 | 1,788 | 41,816 | |||||||||||||||||||||||||||||||||||||||
Chicago | 18,522 | 2,365 | 931 | 21,818 | 11,878 | 2,606 | 605 | 15,089 | |||||||||||||||||||||||||||||||||||||||
Houston | 12,571 | 265 | 1,437 | 14,273 | 12,402 | 720 | 1,141 | 14,263 | |||||||||||||||||||||||||||||||||||||||
Charleston | 11,698 | 1,461 | 942 | 14,101 | 6,474 | 1,465 | 491 | 8,430 | |||||||||||||||||||||||||||||||||||||||
Pittsburgh | 10,070 | 943 | 374 | 11,387 | 5,228 | 1,137 | 372 | 6,737 | |||||||||||||||||||||||||||||||||||||||
Austin | 9,559 | 539 | 1,188 | 11,286 | 8,033 | 1,289 | 1,759 | 11,081 | |||||||||||||||||||||||||||||||||||||||
Washington DC | 10,079 | 89 | 760 | 10,928 | 10,755 | 370 | 639 | 11,764 | |||||||||||||||||||||||||||||||||||||||
New York City | 9,860 | 283 | 402 | 10,545 | 18,913 | 2,140 | 999 | 22,052 | |||||||||||||||||||||||||||||||||||||||
Denver | 7,720 | 1,297 | 557 | 9,574 | 7,450 | 2,274 | 423 | 10,147 | |||||||||||||||||||||||||||||||||||||||
Orlando | 6,967 | 387 | 1,719 | 9,073 | 5,707 | 417 | 607 | 6,731 | |||||||||||||||||||||||||||||||||||||||
Atlanta | 7,649 | 151 | 1,098 | 8,898 | 7,038 | 421 | 723 | 8,182 | |||||||||||||||||||||||||||||||||||||||
New Orleans | 7,007 | 29 | 1,041 | 8,077 | 7,310 | 306 | 791 | 8,407 | |||||||||||||||||||||||||||||||||||||||
Louisville | 5,332 | 1,310 | 1,022 | 7,664 | 6,190 | 3,778 | 871 | 10,839 | |||||||||||||||||||||||||||||||||||||||
Other | 45,417 | 1,891 | 4,177 | 51,485 | 40,644 | 3,544 | 3,039 | 47,227 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 269,326 | $ | 19,225 | $ | 25,255 | $ | 313,806 | $ | 246,745 | $ | 32,039 | $ | 19,289 | $ | 298,073 |
June 30, 2021 | December 31, 2020 | ||||||||||
$500 Million Senior Notes due 2026, net | $ | 492,746 | $ | — | |||||||
$475 Million Senior Notes due 2025, net | 493,397 | 495,759 | |||||||||
Revolver | 200,000 | 400,000 | |||||||||
Term Loans, net | 814,225 | 1,168,304 | |||||||||
Mortgage loans, net | 406,977 | 523,668 | |||||||||
Debt, net | $ | 2,407,345 | $ | 2,587,731 |
Covenant | Compliance | |||||||||||||
Consolidated Indebtedness less than Adjusted Total Assets | < .65x | Yes | ||||||||||||
Consolidated Secured Indebtedness less than Adjusted Total Assets | < .45x | Yes | ||||||||||||
Unencumbered Asset to Unencumbered Debt Ratio | > 150.0% | Yes | ||||||||||||
Interest Coverage Ratio | > 1.5x | No |
Outstanding Borrowings at | ||||||||||||||||||||||||||
Interest Rate | Maturity Date | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||
$475 Million Senior Notes due 2025 (1) (2) (3) | 6.00% | June 2025 | $ | 493,397 | $ | 495,759 |
Outstanding Borrowings at | ||||||||||||||||||||||||||
Interest Rate at June 30, 2021 (1) | Maturity Date | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||
Revolver (2) | 3.53% | May 2024 | $ | 200,000 | $ | 400,000 | ||||||||||||||||||||
$400 Million Term Loan Maturing 2023 (3) | 4.73% | January 2023 | 203,944 | 400,000 | ||||||||||||||||||||||
$225 Million Term Loan Maturing 2023 (4) | 4.72% | January 2023 | 114,718 | 225,000 | ||||||||||||||||||||||
$150 Million Term Loan Maturing 2023 (5) | 4.66% | June 2023 | 100,000 | 150,000 | ||||||||||||||||||||||
$400 Million Term Loan Maturing 2025 | 4.37% | May 2025 | 400,000 | 400,000 | ||||||||||||||||||||||
1,018,662 | 1,575,000 | |||||||||||||||||||||||||
Deferred financing costs, net (6) | (4,437) | (6,696) | ||||||||||||||||||||||||
Total Revolver and Term Loans, net | $ | 1,014,225 | $ | 1,568,304 |
Covenant | Compliance | |||||||||||||
Leverage ratio (1) | <= 7.00x | N/A (3) | ||||||||||||
Fixed charge coverage ratio (2) | >= 1.50x | N/A (3) | ||||||||||||
Secured indebtedness ratio | <= 45.0% | N/A (3) | ||||||||||||
Unencumbered indebtedness ratio | <= 60.0% | N/A (3) | ||||||||||||
Unencumbered debt service coverage ratio | >= 2.00x | N/A (3) | ||||||||||||
Maintain minimum liquidity level | >= $150.0 million | Yes |
Outstanding Borrowings at | |||||||||||||||||||||||||||||||||||
Number of Assets Encumbered | Interest Rate at June 30, 2021 | Maturity Date | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||
Mortgage loan (1) | 7 | 3.30 | % | April 2022 | (5) | $ | 200,000 | $ | 200,000 | ||||||||||||||||||||||||||
Mortgage loan (2) | 1 | 4.94 | % | October 2022 | 27,606 | 27,972 | |||||||||||||||||||||||||||||
Mortgage loan (1) | 4 | 2.77 | % | April 2024 | (5) | 85,000 | 85,000 | ||||||||||||||||||||||||||||
Mortgage loan (1) | 3 | 3.35 | % | April 2024 | (5) | 96,000 | 96,000 | ||||||||||||||||||||||||||||
Mortgage loan (3) | 1 | — | June 2022 | (6) | — | 30,332 | |||||||||||||||||||||||||||||
Mortgage loan (4) | 3 | — | October 2022 | (6) | — | 86,775 | |||||||||||||||||||||||||||||
19 | 408,606 | 526,079 | |||||||||||||||||||||||||||||||||
Deferred financing costs, net | (1,629) | (2,411) | |||||||||||||||||||||||||||||||||
Total mortgage loans, net | $ | 406,977 | $ | 523,668 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Senior Notes | $ | 6,685 | $ | 5,940 | $ | 12,627 | $ | 11,883 | |||||||||||||||
Revolver and Term Loans | 14,023 | 12,705 | 31,201 | 23,356 | |||||||||||||||||||
Mortgage loans | 4,294 | 4,475 | 7,748 | 9,115 | |||||||||||||||||||
Amortization of deferred financing costs | 1,364 | 1,045 | 2,685 | 2,067 | |||||||||||||||||||
Undesignated interest rate swaps | — | (371) | — | 1,186 | |||||||||||||||||||
Total interest expense | $ | 26,366 | $ | 23,794 | $ | 54,261 | $ | 47,607 |
Notional value at | Fair value at | |||||||||||||||||||||||||||||||||||||
Hedge type |
Interest
rate |
Maturity | June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||
Swap-cash flow | 1.15% | April 2021 | $ | — | $ | 100,000 | $ | — | $ | (398) | ||||||||||||||||||||||||||||
Swap-cash flow | 1.20% | April 2021 | — | 100,000 | — | (418) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 2.15% | April 2021 | — | 75,000 | — | (594) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 1.91% | April 2021 | — | 75,000 | — | (523) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 1.61% | June 2021 | 50,000 | 50,000 | — | (433) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 1.56% | June 2021 | 50,000 | 50,000 | — | (416) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 1.71% | June 2021 | 50,000 | 50,000 | — | (462) | ||||||||||||||||||||||||||||||||
Swap-cash flow (1) | 2.29% | December 2022 | 200,000 | 200,000 | (6,759) | (9,044) | ||||||||||||||||||||||||||||||||
Swap-cash flow (2) | 2.29% | December 2022 | 125,000 | 125,000 | (4,220) | (5,648) | ||||||||||||||||||||||||||||||||
Swap-cash flow (3) | 2.38% | December 2022 | 87,780 | 200,000 | (3,097) | (9,436) | ||||||||||||||||||||||||||||||||
Swap-cash flow (4) | 2.38% | December 2022 | 36,875 | 100,000 | (1,301) | (4,716) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 2.75% | November 2023 | 100,000 | 100,000 | (5,935) | (7,635) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 2.51% | December 2023 | 75,000 | 75,000 | (4,197) | (5,284) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 2.39% | December 2023 | 75,000 | 75,000 | (3,962) | (5,012) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 1.35% | September 2021 | 49,000 | 49,000 | (157) | (454) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 1.28% | September 2022 | 100,000 | 100,000 | (1,452) | (2,035) | ||||||||||||||||||||||||||||||||
Swap-cash flow (5) | 1.24% | September 2025 | 150,000 | 150,000 | (3,074) | (5,508) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 1.16% | April 2024 | 50,000 | 50,000 | (1,069) | (1,464) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 1.20% | April 2024 | 50,000 | 50,000 | (1,129) | (1,526) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 1.15% | April 2024 | 50,000 | 50,000 | (1,056) | (1,450) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 1.10% | April 2024 | 50,000 | 50,000 | (983) | (1,374) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 0.98% | April 2024 | 25,000 | 25,000 | (404) | (596) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 0.95% | April 2024 | 25,000 | 25,000 | (382) | (573) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 0.93% | April 2024 | 25,000 | 25,000 | (367) | (558) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 0.90% | April 2024 | 25,000 | 25,000 | (345) | (535) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 0.85% | December 2024 | 50,000 | 50,000 | (520) | (1,249) | ||||||||||||||||||||||||||||||||
Swap-cash flow | 0.75% | December 2024 | 50,000 | 50,000 | (343) | (1,047) | ||||||||||||||||||||||||||||||||
Swap-cash flow (6) | 0.65% | January 2026 | 50,000 | 50,000 | 248 | (662) | ||||||||||||||||||||||||||||||||
$ | 1,598,655 | $ | 2,124,000 | $ | (40,504) | $ | (69,050) |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
$500 Million Senior Notes due 2026, net | $ | 492,746 | $ | 505,490 | $ | — | $ | — | |||||||||||||||
$475 Million Senior Notes due 2025, net | 493,397 | 485,877 | 495,759 | 484,229 | |||||||||||||||||||
Revolver and Term Loans, net | 1,014,225 | 1,002,808 | 1,568,304 | 1,543,636 | |||||||||||||||||||
Mortgage loans, net | 406,977 | 398,564 | 523,668 | 512,118 | |||||||||||||||||||
Debt, net | $ | 2,407,345 | $ | 2,392,739 | $ | 2,587,731 | $ | 2,539,983 |
Fair Value at June 30, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Interest rate swap asset | $ | — | $ | 248 | $ | — | $ | 248 | |||||||||||||||
Interest rate swap liability | — | (40,752) | — | (40,752) | |||||||||||||||||||
Total | $ | — | $ | (40,504) | $ | — | $ | (40,504) |
Fair Value at December 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Interest rate swap liability | $ | — | $ | (69,050) | $ | — | $ | (69,050) | |||||||||||||||
Total | $ | — | $ | (69,050) | $ | — | $ | (69,050) |
2021 | |||||||||||
Number of
Shares |
Weighted-Average
Grant Date Fair Value |
||||||||||
Unvested at January 1, 2021 | 1,252,228 | $ | 15.17 | ||||||||
Granted | 1,733,358 | 15.93 | |||||||||
Vested | (408,776) | 15.46 | |||||||||
Forfeited | (1,382) | 11.29 | |||||||||
Unvested at June 30, 2021 | 2,575,428 | $ | 15.64 |
Date of Award |
Number of
Units Granted |
Grant Date Fair Value |
Conversion Range | Risk Free Interest Rate | Volatility | |||||||||||||||||||||||||||
February 2018 (1) | 264,000 | $13.99 | 0% to 150% | 2.42% | 27.44% | |||||||||||||||||||||||||||
February 2019 | 260,000 | $19.16 | 0% to 200% | 2.52% | 27.19% | |||||||||||||||||||||||||||
February 2020 | 489,000 | $11.59 | 0% to 200% | 1.08% | 23.46% | |||||||||||||||||||||||||||
February 2021 | 431,151 | $20.90 | 0% to 200% | 0.23% | 69.47% |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net loss attributable to RLJ | $ | (51,447) | $ | (115,074) | $ | (129,433) | $ | (144,398) | |||||||||||||||
Less: Preferred dividends | (6,279) | (6,279) | (12,557) | (12,557) | |||||||||||||||||||
Less: Dividends paid on unvested restricted shares | (26) | (15) | (36) | (29) | |||||||||||||||||||
Less: Undistributed earnings attributable to unvested restricted shares | — | — | — | — | |||||||||||||||||||
Net loss attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ | (57,752) | $ | (121,368) | $ | (142,026) | $ | (156,984) | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average number of common shares - basic and diluted | 163,996,003 | 163,543,701 | 163,911,475 | 165,346,717 | |||||||||||||||||||
Net loss per share attributable to common shareholders - basic and diluted | $ | (0.35) | $ | (0.74) | $ | (0.87) | $ | (0.95) |
For the six months ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Reconciliation of cash, cash equivalents, and restricted cash reserves | |||||||||||
Cash and cash equivalents | $ | 657,892 | $ | 1,048,442 | |||||||
Restricted cash reserves | 38,842 | 44,578 | |||||||||
Cash, cash equivalents, and restricted cash reserves | $ | 696,734 | $ | 1,093,020 | |||||||
Interest paid | $ | 54,603 | $ | 44,870 | |||||||
Income taxes paid | $ | 154 | $ | 187 | |||||||
Operating cash flow lease payments for operating leases | $ | 5,718 | $ | 6,466 | |||||||
Supplemental investing and financing transactions | |||||||||||
In connection with the sale of hotel properties, the Company recorded the following: | |||||||||||
Sale of hotel properties | $ | 17,677 | $ | — | |||||||
Transaction costs | (980) | 94 | |||||||||
Operating prorations | (429) | — | |||||||||
Proceeds from the sale of hotel properties, net | $ | 16,268 | $ | 94 | |||||||
Supplemental non-cash transactions | |||||||||||
Accrued capital expenditures | $ | 6,065 | $ | 7,770 | |||||||
For the three months ended June 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Operating revenues | |||||||||||||||||||||||
Room revenue | $ | 166,554 | $ | 27,853 | $ | 138,701 | |||||||||||||||||
Food and beverage revenue | 12,983 | 1,271 | 11,712 | ||||||||||||||||||||
Other revenue | 14,717 | 3,467 | 11,250 | ||||||||||||||||||||
Total revenues | 194,254 | 32,591 | 161,663 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Room expense | 42,898 | 12,469 | 30,429 | ||||||||||||||||||||
Food and beverage expense | 8,709 | 1,801 | 6,908 | ||||||||||||||||||||
Management and franchise fee expense | 12,630 | (1,827) | 14,457 | ||||||||||||||||||||
Other operating expense | 56,883 | 37,933 | 18,950 | ||||||||||||||||||||
Total property operating expenses | 121,120 | 50,376 | 70,744 | ||||||||||||||||||||
Depreciation and amortization | 46,915 | 49,229 | (2,314) | ||||||||||||||||||||
Property tax, insurance and other | 24,048 | 25,348 | (1,300) | ||||||||||||||||||||
General and administrative | 12,133 | 11,673 | 460 | ||||||||||||||||||||
Transaction costs | 195 | 20 | 175 | ||||||||||||||||||||
Total operating expenses | 204,411 | 136,646 | 67,765 | ||||||||||||||||||||
Other (expense) income, net | (9,720) | 282 | (10,002) | ||||||||||||||||||||
Interest income | 220 | 579 | (359) | ||||||||||||||||||||
Interest expense | (26,366) | (23,794) | (2,572) | ||||||||||||||||||||
Gain (loss) on sale of hotel properties, net | 103 | (8) | 111 | ||||||||||||||||||||
Loss on extinguishment of indebtedness, net | (6,207) | — | (6,207) | ||||||||||||||||||||
Loss before equity in income (loss) from unconsolidated joint ventures | (52,127) | (126,996) | 74,869 | ||||||||||||||||||||
Equity in income (loss) from unconsolidated joint ventures | 60 | (975) | 1,035 | ||||||||||||||||||||
Loss before income tax (expense) benefit | (52,067) | (127,971) | 75,904 | ||||||||||||||||||||
Income tax (expense) benefit | (154) | 11,805 | (11,959) | ||||||||||||||||||||
Net loss | (52,221) | (116,166) | 63,945 | ||||||||||||||||||||
Net loss attributable to noncontrolling interests: | |||||||||||||||||||||||
Noncontrolling interest in consolidated joint ventures | 506 | 524 | (18) | ||||||||||||||||||||
Noncontrolling interest in the Operating Partnership | 268 | 568 | (300) | ||||||||||||||||||||
Net loss attributable to RLJ | (51,447) | (115,074) | 63,627 | ||||||||||||||||||||
Preferred dividends | (6,279) | (6,279) | — | ||||||||||||||||||||
Net loss attributable to common shareholders | $ | (57,726) | $ | (121,353) | $ | 63,627 |
For the three months ended June 30, | |||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||
Occupancy | 57.9 | % | 11.4 | % | 83.5 | % | |||||||||||||||||
ADR | $ | 142.11 | $ | 117.14 | $ | 189.60 | |||||||||||||||||
RevPAR | $ | 82.22 | $ | 13.34 | $ | 158.30 |
For the three months ended June 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | |||||||||||||||||||||
Room expense | $ | 42,789 | $ | 12,278 | $ | 30,511 | |||||||||||||||||
Food and beverage expense | 8,696 | 1,801 | 6,895 | ||||||||||||||||||||
Management and franchise fee expense | 12,567 | (1,950) | 14,517 | ||||||||||||||||||||
Other operating expense | 56,670 | 37,463 | 19,207 | ||||||||||||||||||||
Total property operating expenses | $ | 120,722 | $ | 49,592 | $ | 71,130 |
For the three months ended June 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | |||||||||||||||||||||
Senior Notes | $ | 6,685 | $ | 5,940 | $ | 745 | |||||||||||||||||
Revolver and Term Loans | 14,023 | 12,705 | 1,318 | ||||||||||||||||||||
Mortgage loans | 4,294 | 4,475 | (181) | ||||||||||||||||||||
Amortization of deferred financing costs | 1,364 | 1,045 | 319 | ||||||||||||||||||||
Undesignated interest rate swaps | — | (371) | 371 | ||||||||||||||||||||
Total interest expense | $ | 26,366 | $ | 23,794 | $ | 2,572 |
For the six months ended June 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Operating revenues | |||||||||||||||||||||||
Room revenue | $ | 269,326 | $ | 246,745 | $ | 22,581 | |||||||||||||||||
Food and beverage revenue | 19,225 | 32,039 | (12,814) | ||||||||||||||||||||
Other revenue | 25,255 | 19,289 | 5,966 | ||||||||||||||||||||
Total revenues | 313,806 | 298,073 | 15,733 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Room expense | 72,325 | 76,222 | (3,897) | ||||||||||||||||||||
Food and beverage expense | 13,265 | 28,181 | (14,916) | ||||||||||||||||||||
Management and franchise fee expense | 17,991 | 15,317 | 2,674 | ||||||||||||||||||||
Other operating expense | 106,003 | 118,890 | (12,887) | ||||||||||||||||||||
Total property operating expenses | 209,584 | 238,610 | (29,026) | ||||||||||||||||||||
Depreciation and amortization | 93,858 | 98,402 | (4,544) | ||||||||||||||||||||
Impairment losses | 5,946 | — | 5,946 | ||||||||||||||||||||
Property tax, insurance and other | 44,129 | 54,041 | (9,912) | ||||||||||||||||||||
General and administrative | 22,934 | 23,441 | (507) | ||||||||||||||||||||
Transaction costs | 255 | 30 | 225 | ||||||||||||||||||||
Total operating expenses | 376,706 | 414,524 | (37,818) | ||||||||||||||||||||
Other (expense) income, net | (9,255) | 859 | (10,114) | ||||||||||||||||||||
Interest income | 604 | 3,545 | (2,941) | ||||||||||||||||||||
Interest expense | (54,261) | (47,607) | (6,654) | ||||||||||||||||||||
Gain on sale of hotel properties, net | 1,186 | 94 | 1,092 | ||||||||||||||||||||
Loss on extinguishment of indebtedness, net | (6,207) | — | (6,207) | ||||||||||||||||||||
Loss before equity in loss from unconsolidated joint ventures | (130,833) | (159,560) | 28,727 | ||||||||||||||||||||
Equity in loss from unconsolidated joint ventures | (238) | (390) | 152 | ||||||||||||||||||||
Loss before income tax (expense) benefit | (131,071) | (159,950) | 28,879 | ||||||||||||||||||||
Income tax (expense) benefit | (268) | 12,955 | (13,223) | ||||||||||||||||||||
Net loss | (131,339) | (146,995) | 15,656 | ||||||||||||||||||||
Net loss attributable to noncontrolling interests: | |||||||||||||||||||||||
Noncontrolling interest in consolidated joint ventures | 1,242 | 1,837 | (595) | ||||||||||||||||||||
Noncontrolling interest in the Operating Partnership | 664 | 760 | (96) | ||||||||||||||||||||
Net loss attributable to RLJ | (129,433) | (144,398) | 14,965 | ||||||||||||||||||||
Preferred dividends | (12,557) | (12,557) | — | ||||||||||||||||||||
Net loss attributable to common shareholders | $ | (141,990) | $ | (156,955) | $ | 14,965 |
For the six months ended June 30, | |||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||
Occupancy | 50.4 | % | 36.0 | % | 80.0 | % | |||||||||||||||||
ADR | $ | 132.37 | $ | 167.87 | $ | 188.23 | |||||||||||||||||
RevPAR | $ | 66.71 | $ | 60.47 | $ | 150.50 |
For the six months ended June 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | |||||||||||||||||||||
Room expense | $ | 72,013 | $ | 75,407 | $ | (3,394) | |||||||||||||||||
Food and beverage expense | 13,256 | 28,153 | (14,897) | ||||||||||||||||||||
Management and franchise fee expense | 17,818 | 15,006 | 2,812 | ||||||||||||||||||||
Other operating expense | 105,410 | 117,322 | (11,912) | ||||||||||||||||||||
Total property operating expenses | $ | 208,497 | $ | 235,888 | $ | (27,391) |
For the six months ended June 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | |||||||||||||||||||||
Senior Notes | $ | 12,627 | $ | 11,883 | $ | 744 | |||||||||||||||||
Revolver and Term Loans | 31,201 | 23,356 | 7,845 | ||||||||||||||||||||
Mortgage loans | 7,748 | 9,115 | (1,367) | ||||||||||||||||||||
Amortization of deferred financing costs | 2,685 | 2,067 | 618 | ||||||||||||||||||||
Undesignated interest rate swaps | — | 1,186 | (1,186) | ||||||||||||||||||||
Total interest expense | $ | 54,261 | $ | 47,607 | $ | 6,654 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net loss | $ | (52,221) | $ | (116,166) | $ | (131,339) | $ | (146,995) | |||||||||||||||
Preferred dividends | (6,279) | (6,279) | (12,557) | (12,557) | |||||||||||||||||||
Depreciation and amortization | 46,915 | 49,229 | 93,858 | 98,402 | |||||||||||||||||||
(Gain) loss on sale of hotel properties, net | (103) | 8 | (1,186) | (94) | |||||||||||||||||||
Impairment losses | — | — | 5,946 | — | |||||||||||||||||||
Noncontrolling interest in consolidated joint ventures | 506 | 524 | 1,242 | 1,837 | |||||||||||||||||||
Adjustments related to consolidated joint ventures (1) | (75) | (74) | (150) | (149) | |||||||||||||||||||
Adjustments related to unconsolidated joint ventures (2) | 291 | 489 | 585 | 982 | |||||||||||||||||||
FFO | (10,966) | (72,269) | (43,601) | (58,574) | |||||||||||||||||||
Transaction costs | 195 | 20 | 255 | 30 | |||||||||||||||||||
Loss on extinguishment of indebtedness, net | 6,207 | — | 6,207 | — | |||||||||||||||||||
Amortization of share-based compensation | 4,848 | 3,325 | 7,600 | 6,021 | |||||||||||||||||||
Non-cash income tax benefit | — | (11,821) | — | (13,062) | |||||||||||||||||||
Unrealized (gain) loss on discontinued cash flow hedges | — | (371) | — | 1,186 | |||||||||||||||||||
Corporate- and property-level severance | — | 209 | — | 209 | |||||||||||||||||||
Derivative losses in accumulated other comprehensive loss reclassified to earnings (3) | 10,658 | — | 10,658 | — | |||||||||||||||||||
Other expenses (4) | 353 | 835 | 409 | 989 | |||||||||||||||||||
Adjusted FFO | $ | 11,295 | $ | (80,072) | $ | (18,472) | $ | (63,201) |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net loss | $ | (52,221) | $ | (116,166) | $ | (131,339) | $ | (146,995) | |||||||||||||||
Depreciation and amortization | 46,915 | 49,229 | 93,858 | 98,402 | |||||||||||||||||||
Interest expense, net of interest income | 26,146 | 23,215 | 53,657 | 44,062 | |||||||||||||||||||
Income tax expense (benefit) | 154 | (11,805) | 268 | (12,955) | |||||||||||||||||||
Adjustments related to unconsolidated joint ventures (1) | 408 | 609 | 818 | 1,226 | |||||||||||||||||||
EBITDA | 21,402 | (54,918) | 17,262 | (16,260) | |||||||||||||||||||
(Gain) loss on sale of hotel properties, net | (103) | 8 | (1,186) | (94) | |||||||||||||||||||
Impairment losses | — | — | 5,946 | — | |||||||||||||||||||
EBITDAre
|
21,299 | (54,910) | 22,022 | (16,354) | |||||||||||||||||||
Transaction costs | 195 | 20 | 255 | 30 | |||||||||||||||||||
Loss on extinguishment of indebtedness, net | 6,207 | — | 6,207 | — | |||||||||||||||||||
Amortization of share-based compensation | 4,848 | 3,325 | 7,600 | 6,021 | |||||||||||||||||||
Corporate- and property-level severance | — | 209 | — | 209 | |||||||||||||||||||
Derivative losses in accumulated other comprehensive loss reclassified to earnings (2) | 10,658 | — | 10,658 | — | |||||||||||||||||||
Other expenses (3) | 353 | 835 | 409 | 989 | |||||||||||||||||||
Adjusted EBITDA | $ | 43,560 | $ | (50,521) | $ | 47,151 | $ | (9,105) |
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Fixed rate debt (1) | $ | 347 | $ | 27,061 | $ | — | $ | — | $ | 474,888 | $ | 500,000 | $ | 1,002,296 | |||||||||||||||||||||||||||
Weighted-average interest rate | 4.94 | % | 4.94 | % | — | % | — | % | 6.00 | % | 3.75 | % | 4.85 | % | |||||||||||||||||||||||||||
Variable rate debt (1) | $ | — | $ | 200,000 | $ | 418,662 | $ | 381,000 | $ | 400,000 | $ | — | $ | 1,399,662 | |||||||||||||||||||||||||||
Weighted-average interest rate (2) | — | % | 3.30 | % | 4.71 | % | 3.32 | % | 4.37 | % | — | % | 4.03 | % | |||||||||||||||||||||||||||
Total (3) | $ | 347 | $ | 227,061 | $ | 418,662 | $ | 381,000 | $ | 874,888 | $ | 500,000 | $ | 2,401,958 |
Period |
Total number
of shares purchased (1) |
Average price
paid per share |
Total number of
shares purchased as part of publicly announced plans or programs |
Maximum number
of shares that may yet be purchased under the plans or programs (2) |
|||||||||||||||||||||||||
April 1, 2021 through April 30, 2021 | 18,317 | $ | 16.36 | — | — | ||||||||||||||||||||||||
May 1, 2021 through May 31, 2021 | 32,206 | $ | 15.88 | — | — | ||||||||||||||||||||||||
June 1, 2021 through June 30, 2021 | — | $ | — | — | — | ||||||||||||||||||||||||
Total | 50,523 | — |
Exhibit
Number |
Description of Exhibit | |||||||||||||
3.1 | ||||||||||||||
3.2 | ||||||||||||||
3.3 | ||||||||||||||
3.4 | ||||||||||||||
3.5 | ||||||||||||||
3.6 | ||||||||||||||
4.1 | ||||||||||||||
10.1 | ||||||||||||||
10.2 | ||||||||||||||
10.3* | ||||||||||||||
10.4* | ||||||||||||||
10.5* | ||||||||||||||
31.1* | ||||||||||||||
31.2* | ||||||||||||||
32.1* | ||||||||||||||
101.INS | Inline XBRL Instance Document | Submitted electronically with this report | ||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | Submitted electronically with this report | ||||||||||||
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document | Submitted electronically with this report | ||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Submitted electronically with this report | ||||||||||||
101.LAB | Inline XBRL Taxonomy Label Linkbase Document | Submitted electronically with this report | ||||||||||||
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document | Submitted electronically with this report | ||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and included in Exhibit 101) | Submitted electronically with this report |
RLJ LODGING TRUST | |||||
Dated: August 6, 2021 | /s/ LESLIE D. HALE | ||||
Leslie D. Hale | |||||
President and Chief Executive Officer | |||||
Dated: August 6, 2021 | /s/ SEAN M. MAHONEY | ||||
Sean M. Mahoney | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) | |||||
Dated: August 6, 2021 | /s/ CHRISTOPHER A. GORMSEN | ||||
Christopher A. Gormsen | |||||
Senior Vice President and Chief Accounting Officer | |||||
(Principal Accounting Officer) |
1. PURPOSE
|
1
|
||||
2. DEFINITIONS
|
1
|
||||
3. ADMINISTRATION OF THE PLAN
|
8
|
||||
3.1 Committee
|
8
|
||||
3.2 Board.
|
9
|
||||
3.3 Terms of Awards.
|
9
|
||||
3.4 Forfeiture; Recoupment.
|
10
|
||||
3.5 No Repricing.
|
11
|
||||
3.6 Deferral Arrangement.
|
11
|
||||
3.7 No Liability.
|
11
|
||||
3.8 Share Issuance/Book-Entry.
|
12
|
||||
4. SHARES SUBJECT TO THE PLAN
|
12
|
||||
4.1 Number of Shares Available for Awards.
|
12
|
||||
4.2 Adjustments in Authorized Shares.
|
12
|
||||
4.3 Share Usage.
|
12
|
||||
5. EFFECTIVE DATE, Term, AND AMENDMENTS
|
13
|
||||
5.1 Effective Date.
|
13
|
||||
5.2 Term.
|
13
|
||||
5.3 Amendment, Suspension, and Termination of the Plan.
|
14
|
||||
6. AWARD eligibility AND LIMITATIONS
|
14
|
||||
6.1 Service Providers and Other Persons.
|
14
|
||||
6.2 Limitation on Shares Subject to Awards and Cash Awards.
|
14
|
||||
6.3 Stand-Alone, Additional, Tandem and Substitute Awards.
|
14
|
||||
7. AWARD AGREEMENT
|
15
|
||||
8. TERMS AND CONDITIONS OF OPTIONS
|
15
|
||||
8.1 Option Price.
|
15
|
||||
8.2 Vesting and Exercisability.
|
15
|
||||
8.3 Term.
|
16
|
||||
8.4 Termination of Service.
|
16
|
||||
8.5 Limitations on Exercise of Option.
|
16
|
||||
8.6 Method of Exercise.
|
16
|
||||
8.7 Rights of Holders of Options.
|
16
|
||||
8.8 Delivery of Share Certificates.
|
16
|
||||
8.9 Transferability of Options.
|
16
|
||||
8.10 Family Transfers.
|
16
|
||||
8.11 Limitations on Incentive Share Options.
|
17
|
||||
8.12 Notice of Disqualifying Disposition.
|
18
|
||||
9. TERMS AND CONDITIONS OF share Appreciation Rights
|
18
|
||||
9.1 Right to Payment and SAR Exercise Price.
|
18
|
||||
9.2 Other Terms.
|
18
|
9.3 Term.
|
18
|
||||
9.4 Transferability of SARs.
|
19
|
||||
9.5 Family Transfers.
|
19
|
||||
10. TERMS AND CONDITIONS OF RESTRICTED SHARES and SHARE units
|
19
|
||||
10.1 Grant of Restricted Shares or Share Units.
|
19
|
||||
10.2 Restrictions.
|
19
|
||||
10.3 Restricted Share Certificates.
|
20
|
||||
10.4 Rights of Holders of Restricted Shares.
|
20
|
||||
10.5 Rights of Holders of Share Units.
|
20
|
||||
10.6 Termination of Service.
|
20
|
||||
10.7 Purchase of Restricted Shares and Shares Subject to Share Units.
|
20
|
||||
10.8 Delivery of Shares.
|
21
|
||||
11. TERMS AND CONDITIONS OF UNRESTRICTED SHARE AWARDS and other equity-based awards
|
22
|
||||
12. FORM OF PAYMENT FOR OPTIONS AND RESTRICTED SHARES
|
22
|
||||
12.1 General Rule.
|
22
|
||||
12.2 Surrender of Shares.
|
22
|
||||
12.3 Cashless Exercise.
|
22
|
||||
12.4 Other Forms of Payment.
|
23
|
||||
13. TERMS AND CONDITIONS OF Dividend Equivalent RIGHTS
|
23
|
||||
13.1 Dividend Equivalent Rights.
|
23
|
||||
13.2 Termination of Service.
|
24
|
||||
14. TERMS AND CONDITIONS OF PERFORMANCE AWARDS
|
24
|
||||
14.1 Grant of Performance Awards.
|
24
|
||||
14.2 Value of Performance Awards.
|
24
|
||||
14.3 Earning of Performance Awards.
|
24
|
||||
14.4 Form and Timing of Payment of Performance Awards.
|
24
|
||||
14.5 Performance Conditions.
|
25
|
||||
14.6 Settlement of Awards; Other Terms.
|
25
|
||||
14.7 Performance Measures.
|
25
|
||||
15. TERMS AND CONDITIONS OF long-term incentive units
|
25
|
||||
16. PARACHUTE LIMITATIONS
|
25
|
||||
17. REQUIREMENTS OF LAW
|
26
|
||||
17.1 General.
|
26
|
||||
17.2 Rule 16b-3.
|
27
|
||||
18. EFFECT OF CHANGES IN CAPITALIZATION
|
27
|
||||
18.1 Changes in Shares.
|
27
|
||||
18.2 Reorganization in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control.
|
28
|
||||
18.3 Change in Control.
|
28
|
18.4 Adjustments.
|
30
|
||||
18.5 No Limitations on Company.
|
30
|
||||
19. GENERAL PROVISIONS
|
30
|
||||
19.1 Disclaimer of Rights.
|
29
|
||||
19.2 Nonexclusivity of the Plan.
|
31
|
||||
19.3 Withholding Taxes.
|
31
|
||||
19.4 Captions.
|
32
|
||||
19.5 Other Provisions.
|
32
|
||||
19.6 Number and Gender.
|
32
|
||||
19.7 Severability.
|
32
|
||||
19.8 Governing Law.
|
32
|
||||
19.9 Code Section 409A.
|
32
|
Grantee: | Date: | |||||||||||||
(Signature) | ||||||||||||||
Company: | Date: | |||||||||||||
(Signature) | ||||||||||||||
Name:
|
||||||||||||||
Title:
|
President & Chief Executive Officer |
Restricted Shares |
This Agreement evidences an award of Restricted Shares (the “Restricted Shares”) in the number set forth on the cover sheet of this Agreement and subject to the vesting and other conditions set forth in this Agreement (including the cover sheet and all attachments) and in the Plan.
|
||||
Non-Transferability | To the extent not yet vested, your Restricted Shares may not be sold, assigned, transferred, pledged, hypothecated, or otherwise encumbered, whether by operation of law or otherwise, nor may the Restricted Shares be made subject to execution, attachment, or similar process. If you attempt to do any of these things, the Restricted Shares will immediately become forfeited. | ||||
Issuance |
The Company will issue your Restricted Shares in the name set forth on the cover sheet as of the Grant Date.
The issuance of the Restricted Shares shall be evidenced in such a manner as the Company, in its discretion, deems appropriate, including, without limitation, book-entry, direct registration or issuance of one or more share certificates, with any unvested Restricted Shares bearing the appropriate restrictions imposed by this Agreement. As your interest in the Restricted Shares vests, the recordation of the number of Restricted Shares attributable to you will be appropriately modified if necessary.
|
||||
Vesting |
Your right to the Restricted Shares will vest in accordance with the vesting schedule set forth on Attachment A, subject to your continued Service through the applicable vesting date set forth on Attachment A.
Notwithstanding your vesting schedule, the unvested Restricted Shares will become 100% vested upon your termination of Service due to your death or Disability.
|
||||
Change in Control | Notwithstanding the vesting schedule set forth above, upon the occurrence of a Change in Control, the unvested Restricted Shares will become 100% vested as of immediately prior to but contingent on the occurrence of such Change in Control. |
Leaves of Absence |
For purposes of this Agreement, your Service does not terminate when you go on a bona fide leave of absence that was approved by the Company in writing if the terms of the leave provide for continued Service crediting or when continued Service crediting is required by applicable law. Your Service terminates in any event when the approved leave ends unless you immediately return to active employee work.
The Company may determine, in its discretion, which leaves count for this purpose, and when your Service terminates under the Plan in accordance with the provisions of the Plan.
|
||||
Forfeiture of Unvested Restricted Shares |
Unless the termination of your Service triggers accelerated vesting of your Restricted Shares or other treatment pursuant to the terms of this Agreement, the Plan, or any other written agreement between the Company or any Affiliate and you, including but not limited to any employment agreement, you will automatically forfeit, as of the date of such termination of Service, to the Company all of the unvested Restricted Shares in the event you are no longer providing Service.
|
||||
Forfeiture of Rights |
If you should take actions in violation or breach of or in conflict with any non-competition agreement, any agreement prohibiting solicitation of employees or clients of any the Company or any Affiliate or any confidentiality obligation with respect to the Company or any Affiliate or otherwise in competition with the Company or any Affiliate, the Company has the right to cause an immediate forfeiture of your rights to the Restricted Shares awarded under this Agreement and the Restricted Shares shall immediately expire.
In addition, if you have vested in Restricted Shares during the three (3) year period prior to your actions, you will owe the Company a cash payment (or forfeiture of Restricted Shares) in an amount determined as follows: (1) for any Restricted Shares that you have sold prior to receiving notice from the Company, the amount will be the proceeds received from the sale(s), and (2) for any Restricted Shares that you still own, the amount will be the number of Restricted Shares owned times the fair market value of the Restricted Shares on the date you receive notice from the Company (provided, that the Company may require you to satisfy your payment obligations hereunder either by forfeiting and returning to the Company the Restricted Shares or any other Shares or making a cash payment or a combination of these methods as determined by the Company in its sole discretion).
|
Legends |
If and to the extent that the Restricted Shares are represented by certificates rather than book entry, all certificates representing the Restricted Shares issued under this grant shall, where applicable, have endorsed thereon the following legends:
“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN VESTING, FORFEITURE AND OTHER RESTRICTIONS ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS CERTIFICATE.”
To the extent the Restricted Shares are represented by a book entry, such book entry will contain an appropriate legend or restriction similar to the foregoing.
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Adjustments |
In the event of any share dividend, share split, change in the corporate structure affecting the Shares, or any change in the corporate structure that is not a Change in Control, the number or kind of Shares covered by this Award shall be adjusted pursuant to the Plan.
Your Restricted Shares shall be subject to the terms of any applicable agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.
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Applicable Law |
This Agreement will be interpreted and enforced under the laws of the State of Maryland, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.
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The Plan
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The text of the Plan is incorporated in this Agreement by reference.
Certain capitalized terms used in this Agreement are defined in the Plan and have the meaning set forth in the Plan.
This Agreement (including the cover sheet and all attachments) and the Plan constitute the entire understanding between you and the Company regarding this grant. Any prior agreements, commitments, or negotiations concerning this grant are superseded; except that any written employment, consulting, confidentiality, non-competition, non-solicitation and/or severance agreement between you and the Company or any Affiliate shall supersede this Agreement with respect to its subject matter.
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Data Privacy | In order to administer the Plan, the Company may process personal data about you. Such data includes, but is not limited to, information provided in this Agreement and any changes thereto, other appropriate personal and financial data about you such as your contact information, payroll information, and any other information that might be deemed appropriate by the Company to facilitate the administration of the Plan. By accepting this grant, you give explicit consent to the Company to process any such personal data. | ||||
Code Section 409A | The grant of Restricted Shares under this Agreement is intended to be exempt from Code Section 409A, and, accordingly, to the maximum extent permitted, this Agreement will be interpreted and administered to be exempt from Code Section 409A. |
Vesting Date | Shares | ||||
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Title:
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President & Chief Executive Officer |
PSUs |
This Agreement evidences an award of Performance Share Units (the “PSUs”) entitling you to the number of Shares to be determined in accordance with the terms and conditions of this Agreement and the Plan.
The number of Shares, if any, that may be issued pursuant to the terms of this Agreement will be calculated based on the attainment, as determined by the Company’s Compensation Committee (the “Committee”), of the specified absolute and relative performance metrics (“Performance Metrics”) set forth in Exhibit A over the Performance Period set forth on the cover sheet of this Agreement, which number of Shares may be equal to all or a portion, including none, of the Maximum Number of PSUs set forth on the cover sheet of this Agreement.
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Non-Transferability | Your PSUs may not be sold, assigned, transferred, pledged, hypothecated, or otherwise encumbered, whether by operation of law or otherwise, nor may the PSUs be made subject to execution, attachment, or similar process. If you attempt to do any of these things, the PSUs will immediately become forfeited. |
Vesting |
Except as otherwise provided below in “Termination of Service” or “Change in Control,” your PSUs will vest on the date the Committee certifies the achievement of the Performance Metrics following the close of the Performance Period (the “Certification Date”), and subject to your continued Service from the Grant Date through the end of the Performance Period, but only to the extent that the Performance Metrics have been achieved. Promptly following the completion of the Performance Period, the Committee will review and certify in writing (i) whether, and to what extent, the Performance Metrics for the Performance Period have been achieved and (ii) the number of PSUs that will vest. Such certification will be final, conclusive, and binding.
If the Committee’s certification of the Performance Metrics produces vesting in a fractional PSU, the number of PSUs that vest shall be rounded down to the next whole integer.
You will forfeit to the Company all of your unvested PSUs to the extent the specified Performance Metrics have not been achieved, as determined by the Committee, effective as of the Certification Date.
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Termination of Service |
Notwithstanding any provisions in your employment agreement or offer letter with the Company or its Affiliates (if any, the “Employment Agreement”) to the contrary, (i) in the event that your Service terminates after the Grant Date and prior to the end of the Performance Period (A) by the Company or its Affiliates without Cause or by you for Good Reason or (B) due to your death or Disability (as defined in the Plan, except as otherwise defined in your Employment Agreement) or (ii) in the event that your Service terminates eighteen (18) months or more after the Grant Date and prior to the end of the Performance Period (A) by the Company’s or its Affiliates’ providing written notice to terminate your Employment Agreement as of the end of the Initial or the Extension Term (as defined in your Employment Agreement) or (B) by you as a result of your Retirement (as defined in your Employment Agreement), you will vest in a portion of your PSUs based on actual achievement of the Performance Metrics as of the Certification Date (or as of immediately prior to an earlier Change in Control), multiplied by your total months of Service from the beginning of the Performance Period to the date your Service terminates divided by thirty six (36). Notwithstanding any provisions of your Employment Agreement which, if applied, would result in vesting, and except as provided below in this section in connection with a Change in Control, if your Service terminates prior to the end of the Performance Period, you will forfeit all PSUs that do not vest in accordance with the preceding sentence.
For purposes of this Agreement, “Good Reason” shall have the meaning set forth in you Employment Agreement, but if not defined therein, means (x) a material reduction in your annual base salary as of immediately prior to the Grant Date (or as the same may be increased from time to time) or a material reduction in your annual target bonus opportunity as of immediately prior to the Grant Date or (y) the relocation of your principal place of employment to a location more than thirty-five (35) miles from your principal place of employment as of the Grant Date or the Company’s requiring you to be based anywhere other than such principal place of employment (or permitted relocation thereof) except for required travel on the Company’s business to an extent substantially consistent with your business travel obligations as of immediately prior to the Grant Date. To qualify as “Good Reason,” you must provide notice to the Company of any of the foregoing occurrences within ninety (90) days following the initial
occurrence, the Company shall have thirty (30) days to remedy such occurrence, and if not remedied, you must resign within thirty (30) days following the end of such remedy period.
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Change in Control |
Upon the occurrence of a Change in Control prior to the end of the Performance Period, provided that you continue in Service as of immediately prior to such Change in Control, (i) if less than half of the Performance Period has lapsed as of such Change in Control, your PSUs will vest, as of immediately prior to but contingent on the occurrence of such Change in Control, based on deemed achievement of target level performance, and (ii) if at least half of the Performance Period has lapsed as of such Change in Control, your PSUs will vest, immediately prior to but contingent on the occurrence of such Change in Control, based on the greater of (A) deemed achievement of target level performance or (B) determination of actual performance as of a date reasonably proximal to the date of consummation of such Change in Control as determined by the Committee, in its sole discretion. Upon the occurrence of a Change in Control, you will forfeit all PSUs that do not vest in accordance with the preceding sentence.
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Leaves of Absence |
For purposes of this Agreement, your Service does not terminate when you go on a bona fide leave of absence that was approved by the Company in writing if the terms of the leave provide for continued Service crediting or when continued Service crediting is required by applicable law. Your Service terminates in any event when the approved leave ends unless you immediately return to active employee work.
The Company may determine, in its discretion, which leaves count for this purpose, and when your Service terminates under the Plan in accordance with the provisions of the Plan.
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Issuance of Shares |
The Company will issue any Shares earned pursuant hereto in your name as of the date that you vest in the PSUs. Such delivery will be made as soon as practicable after the date on which your PSUs vest and, in any event, within thirty (30) days thereafter but not later than March 15th of the calendar year following the calendar year in which the Performance Period ends or an earlier Change in Control occurs.
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Book Entry Restrictions | Any Shares issued hereunder may be issued in book entry form. In such event, the Company shall cause the transfer agent for the Shares to make a book entry record showing ownership for the Shares in your name subject to the terms and conditions of this Agreement. The Company shall issue or cause to be issued to you an account statement acknowledging your ownership of such Shares. |
Shareholder Rights; Dividends |
You, or your estate or heirs, do not have any of the rights of a shareholder of the Company (including, without limitation, the right to vote or receive dividends declared or paid on the Shares) with respect to the PSUs unless and until the PSUs vest and a certificate for such Shares relating to such vested PSUs has been issued or an appropriate book entry has been made.
Notwithstanding the foregoing, the Company grants you a Dividend Equivalent Right relating to each PSU which vests, if any, pursuant to this Agreement or the Plan. If the Company declares a cash dividend on the Company’s outstanding Shares during the Performance Period, you shall receive an amount of cash equal to the number of PSUs which vest pursuant to this Agreement, multiplied by the amount of the cash dividend per Share declared during the Performance Period, as if you had held a number of Shares equal to the number of PSUs which vest under this Agreement as of each dividend record date during the Performance Period. For purposes of the foregoing sentence only, if the PSUs are subject to accelerated vesting, the “Performance Period” shall be deemed to have ended as of the date of the event which serves as the basis for such accelerated vesting. This cash payment relating to your vested PSUs shall be made as soon as practicable after the date on which your PSUs vest and, in any event, within thirty (30) days thereafter but not later than March 15th of the calendar year following the calendar year in which the Performance Period ends or an earlier Change in Control occurs.
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Withholding Taxes |
In the event that the Company or any Affiliate determines that any federal, state, local, or foreign tax or withholding payment is required relating to the PSUs, the issuance of Shares with respect to the PSUs, or the Dividend Equivalent Rights under this Agreement, the Company or any Affiliate shall have the right to require such payments from you, or withhold such amounts from other payments due to you from the Company or any Affiliate (including withholding the delivery of Shares otherwise deliverable under this Agreement).
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Recoupment |
This Award is subject to mandatory repayment by you to the Company to the extent you are or in the future become subject to any Company “clawback” or recoupment policy that requires the repayment by you to the Company of compensation paid by the Company to you in the event that you fail to comply with, or violate, the terms or requirements of such policy.
If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws and you knowingly engaged in the misconduct, were grossly negligent in engaging in the misconduct, knowingly failed to prevent the misconduct or were grossly negligent in failing to prevent the misconduct, you shall reimburse the Company the amount of any payment in settlement of this Award earned or accrued during the twelve (12)-month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurred) of the financial document that contained such material noncompliance.
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Retention Rights | This Agreement does not give you the right to be retained by the Company or an Affiliate in any capacity. Unless otherwise specified in your Employment Agreement, the Company and any Affiliates reserve the right to terminate your Service at any time and for any reason. | |||||||
Adjustments |
In the event of any share dividend, share split, change in the corporate structure affecting the Shares, or any change in the corporate structure that is not a Change in Control, the number or kind of Shares covered by this Award shall be adjusted pursuant to the Plan.
Your PSUs shall be subject to the terms of any applicable agreement of merger, liquidation, or reorganization in the event the Company is subject to such corporate activity.
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Applicable Law | This Agreement will be interpreted and enforced under the laws of the State of Maryland, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction. | |||||||
The Plan | The text of the Plan is incorporated in this Agreement by reference. Certain capitalized terms used in this Agreement but not defined herein are defined in the Plan and have the meaning set forth in the Plan. | |||||||
This Agreement (including the cover sheet and all attachments) and the Plan constitute the entire understanding between you and the Company regarding this grant of PSUs and any underlying Shares. Any prior agreements, commitments, or negotiations concerning this grant are superseded. | ||||||||
Data Privacy | In order to administer the Plan, the Company may process personal data about you. Such data includes, but is not limited to, information provided in this Agreement and any changes thereto, other appropriate personal and financial data about you such as your contact information, payroll information, and any other information that might be deemed appropriate by the Company to facilitate the administration of the Plan. | |||||||
By accepting this grant, you give explicit consent to the Company to process any such personal data. | ||||||||
Code Section 409A |
The grant of PSUs under this Agreement is intended to be exempt from, or to comply with, Code Section 409A to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Agreement will be interpreted and administered to be in compliance with Code Section 409A.
To the extent that the Company determines that you would be subject to the additional 20% tax imposed on certain non-qualified deferred compensation plans pursuant to Code Section 409A as a result of any provision of this Agreement, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional tax. The nature of any such amendment shall be determined by the Company.
Notwithstanding any provision of the Plan or this Agreement to the contrary, to the extent required to avoid accelerated taxation and tax penalties under Code Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan or this Agreement during the six (6)-month period immediately following your Separation from Service will instead be paid on the first payroll date after the six (6)-month anniversary of your Separation from Service (or your death, if earlier).
For purposes of this Award, a termination of Service only occurs upon an event that would be a Separation from Service within the meaning of Code Section 409A.
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RLJ LODGING TRUST | |||||
Dated: August 6, 2021 | /s/ LESLIE D. HALE | ||||
Leslie D. Hale | |||||
President and Chief Executive Officer | |||||
RLJ LODGING TRUST | |||||
Dated: August 6, 2021 | /s/ SEAN M. MAHONEY | ||||
Sean M. Mahoney | |||||
Executive Vice President and Chief Financial Officer | |||||
RLJ LODGING TRUST | |||||
Dated: August 6, 2021 | /s/ LESLIE D. HALE | ||||
Leslie D. Hale | |||||
President and Chief Executive Officer | |||||
/s/ SEAN M. MAHONEY | |||||
Sean M. Mahoney | |||||
Executive Vice President and Chief Financial Officer | |||||