Apple Hospitality REIT announced results of operations for the first quarter ended March 31, 2021, that included adjusted EBITDAre of approximately US$27 million, MFFO of approximately US$9 million and Comparable Hotels Adjusted Hotel EBITDA Margin of approximately 23%. All hotels are open and the portfolio sequentially improve all operating metrics each month, driven by a variety of demand generators. Operationally, the company produced its strongest quarterly results since the beginning of the pandemic with occupancy exceeding industry averages. Portfolio occupancy improvement and outperformance continued with the month of April reaching approximately 68%. Hotel operating expenses were reduced by approximately 33% and 41% during the first quarter of 2021, as compared to the same periods of 2020 and 2019, respectively. The company produced sufficient cash from operations to cover property-level and corporate-level costs, including debt service and capital expenditures, achieving Adjusted Hotel EBITDA of approximately US$35 million.
Park Hotels & Resorts announced results for the first quarter ended March 31, 2021, beating on revenues and operating margins. Highlights included pro-forma RevPAR of US$40.79, a decrease of 70% from the same period in 2020; pro-forma occupancy for 42 consolidated hotels open during the entirety of the first quarter was 37.4%; net loss and net loss attributable to stockholders were US$(191) million and US$(190) million, respectively; adjusted EBITDA was US$(49) million; pro-forma Hotel Adjusted EBITDA improved 34.7% compared to the fourth quarter of 2020. Thomas Baltimore, Jr., chairman and CEO said he was very encouraged by the momentum of improvement in Park’s portfolio during the first quarter. “Our hotels in drive-to markets continue to outperform and now our fly-to leisure hotels in Hawaii and Puerto Rico are exceeding our expectations, helping to drive consecutive monthly increases in occupancy through the first quarter and positive Hotel Adjusted EBITDA in March.”
DiamondRock Hospitality Co. reported a loss in a key measure in its first quarter. The results surpassed Wall Street expectations. Funds from operations loss were US$24.9 million, or 12 cents per share, in the period, beating consensus estimate of 15 cents per share loss. The company also said it had a loss of US$173.3 million, or 82 cents per share. It posted revenue of US$72.9 million in the period, also topping Street forecasts of US$66.8 million. In March, the company entered into an agreement to sell The Lexington in New York City for US$185M, representing an approximate 12.5x EBITDA multiple on 2019 earnings and a 6.3% capitalization rate on 2019 net operating income. On April 30, DRH sold the wholly owned subsidiary of Frenchman’s Reef in St. Thomas to an affiliate of Fortress Investment Group and DRH received US$35M in cash as well as a participation right in the future profits of the hotel once certain metrics are achieved.
Ashford Hospitality Trust reported Q1 earnings that included a quarterly loss of US$0.30 per share versus consensus estimate of a US$0.75 loss. This compares to loss of US$1.20 per share a year ago. This quarterly report represents an FFO surprise of 60%. A quarter ago, it was expected that this hotel owner would post a loss of US$1.54 per share when it actually produced a loss of US$1.67, delivering a surprise of -8.44%. Ashford, with some 100 hotels and 22,278 rooms, posted revenues of US$115.83 million for the quarter, beating the consensus estimate by 1.2%. The company has topped consensus revenue estimates just once over the last four quarters. Ashford Hospitality reported an overall net loss of US$91.6 million for the first quarter.