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TheStreet Open House

MHI Hospitality Corporation Reports Financial Results For Third Quarter 2011

MHI Hospitality Corporation (NASDAQ: MDH) (“MHI” or the “Company”), a self-managed and self-administered lodging real estate investment trust (a “REIT”), today reported its consolidated results for the third quarter ended September 30, 2011. The Company’s results include the following *:

 
Three months ended Nine months ended
September 30, 2011   September 30, 2010 September 30, 2011   September 30, 2010
($ in thousands except per share data)
 
Total Revenue $ 20,015 $ 19,538 $ 61,680 $ 58,563
Net loss attributable to the Company

(1,117

)

(1,004

)

(2,289

)

(1,529 )
 
EBITDA 3,641

 

3,663

 

12,951

 

12,689
Adjusted EBITDA 3,685

 

3,667

 

13,401

 

12,046
Hotel EBITDA 4,206

 

4,220

 

14,659

 

13,639
 
FFO 859

 

974

 

3,814

 

4,782
Adjusted FFO 827

 

983

 

4,955

 

4,467
 
Net loss per diluted share attributable to the Company

$

(0.11

)

 

$

(0.11

)

 

$

(0.23

)

 

$

(0.16

)

FFO per diluted share and unit 0.07

 

0.08

 

0.29

 

0.37
Adjusted FFO per diluted share and unit 0.06

 

0.08

 

0.38

 

0.35
 

(*) Earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, hotel EBITDA, funds from operations (“FFO”), adjusted FFO, FFO per share and adjusted FFO per share are non-GAAP financial measures. See further discussion of these non-GAAP measures, including definitions related thereto, and reconciliations to net income (loss) later in this press release.

HIGHLIGHTS:

  • Common Dividends. The Company announced a reinstatement of its common dividend in July and paid a dividend (distribution) of $0.02 per common share (and unit) on October 11, 2011. On October 17, 2011, the Company declared another quarterly dividend (distribution) of $0.02 per common share (and unit), payable on January 11, 2012 to stockholders (and unitholders) of record as of December 15, 2011.
  • RevPAR. Room revenue per available room (“RevPAR”) for the Company’s wholly-owned properties increased 3.0 percent over the third quarter 2010 to $72.88 driven by a 4.0 percent increase in average daily rate (“ADR”). For the first nine months of 2011, RevPAR increased 6.0 percent over the comparable period in 2010.
  • Hotel EBITDA. The Company generated hotel EBITDA of approximately $4.2 million during the third quarter 2011, bringing its year-to-date total to $14.7 million, an increase of $1.1 million over the comparable nine-month period in 2010.
  • Adjusted EBITDA. The Company generated adjusted EBITDA of approximately $3.7 million during the third quarter 2011, bringing its year-to-date total to $13.4 million, an increase of $1.4 million over the comparable nine-month period in 2010.
  • Adjusted FFO. The Company generated adjusted FFO of approximately $0.8 million during the third quarter 2011 and $5.0 million for the first nine months of 2011. This represents an increase of $0.5 million over the comparable nine-month period in 2010.
  • Capital Expenditures. So far this fiscal year, the Company has invested approximately $4.2 million of capital throughout its portfolio, including approximately $1.9 million at the Holiday Inn Brownstone, located in Raleigh, North Carolina, in anticipation of its conversion to the Doubletree by Hilton Brownstone-University during the fourth quarter 2011.
  • Hurricane Irene. The Company estimates the impact of Hurricane Irene on its wholly-owned portfolio was approximately $500,000 in lost revenue during the third quarter 2011, including an approximately $1.90 negative effect on RevPAR for such period. If the Company had realized the revenues from such lost business, the Company estimates its RevPAR for the third quarter 2011 would have increased 5.6% over the comparable period in 2010. The Company estimates that the overall effect of Hurricane Irene on its net income was approximately $350,000 for the third quarter 2011.

Andrew M. Sims, Chairman and CEO of MHI Hospitality Corporation, commented, “Hurricane Irene created a speed bump in our quarterly earnings, causing cancellations over a ten-day period from Fort Lauderdale north to Philadelphia. Since then, September and October 2011 results resumed the progress MHI experienced earlier in the year.”

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