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Strategic Hotels & Resorts – Pleased to announce the declaration of the first quarter preferred dividend

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Strategic Hotels & Resorts, Inc. (NYSE: BEE) reported results for the fourth quarter and full year ended December 31, 2011.

“Despite lingering global and domestic uncertainty, Strategic Hotels’ superior operating performance again led our competitive set, delivering enviable fourth quarter and full year results,” said Laurence Geller, Chief Executive Officer of Strategic Hotels & Resorts, Inc.  ”With strong and steady demand growth, permanent productivity enhancements, irreplaceable assets with no competition from new supply, a pipeline of profit enhancement opportunities and a completely restructured balance sheet, the Company is ideally positioned for the future.  With these tailwinds, I am pleased to announce the declaration of the first quarter preferred dividend and look forward to continued operating and financial success in 2012.”

Fourth Quarter Highlights

  • Net loss attributable to common shareholders was $15.9 million, or $0.09 per diluted share, in the fourth quarter of 2011, compared with a net loss attributable to common shareholders of $134.8 million, or $0.89 per diluted share, in the fourth quarter of 2010.
  • Comparable funds from operations (Comparable FFO) was $0.11 per diluted share in the fourth quarter of 2011 compared with $0.03 per diluted share in the prior year period.  During the quarter, a $10.7 million one-time gain was recorded related to the successful preferred equity tender completed on December 19, 2011.  Excluding this adjustment, Comparable FFO would have been $0.05 per diluted share.
  • Comparable EBITDA was $39.9 million in the fourth quarter of 2011 compared with $34.5 million in the prior year period, a 15.9 percent increase.
  • United States same store revenue per available room (RevPAR) increased 10.1 percent in the fourth quarter of 2011, driven by a 6.5 percent increase in average daily rate (ADR) and a 2.2 percentage point increase in occupancy, compared to the fourth quarter 2010.  Total revenue per available room (Total RevPAR) increased 10.0 percent with non-rooms revenue increasing by 9.9 percent between periods.
  • North American same store RevPAR increased 9.8 percent in the fourth quarter of 2011, driven by a 6.4 percent increase in ADR and a 2.1 percentage point increase in occupancy, compared to the fourth quarter 2010.  Total RevPAR increased 9.0 percent with non-rooms revenue increasing by 8.1 percent between periods.
  • Total North American RevPAR, which includes results from the recently acquired Four Seasons Jackson Hole and Four Seasons Silicon Valley hotels, increased 10.2 percent in the fourth quarter of 2011, driven by a 6.7 percent increase in ADR and a 2.2 percentage point increase in occupancy, compared to the fourth quarter 2010.  Total RevPAR increased 9.5 percent with non-rooms revenue increasing by 8.8 percent between periods.
  • European RevPAR decreased 0.1 percent (a 0.6 percent increase in constant dollars) in the fourth quarter of 2011, driven by a 0.1 percent decline in ADR (a 0.5 percent increase in constant dollars) and no change in occupancy between periods. European Total RevPAR increased 2.3 percent in the fourth quarter over the prior year period (2.6 percent in constant dollars).
  • United States same store EBITDA margins contracted 50 basis points in the fourth quarter of 2011  compared to the fourth quarter of 2010.  North American same store EBITDA margins contracted 80 basis points between periods.  Excluding certain one-time property tax refunds of $4.9 million received during the fourth quarter of 2010, United States same store and North American same store EBITDA margins expanded 290 and 240 basis points, respectively, in the fourth quarter.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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