One of the Company’s largest transformations during 2012 was the full renovation and conversion of the Fairfield Inn & Suites in Ft. Worth, TX. This renovation included moving walls in order to expand the lobby and breakfast areas. All guestrooms were fully renovated, adding the full Marriott package including new furniture. The renovation totaled $2.9 million and was completed in June of 2012.The Fairfield Inn in Seattle (Bellevue), WA was also fully renovated and converted in 2012 to a Fairfield Inn & Suites property. This conversion included complete guestroom and guest bathroom renovations. The exercise room was increased in size and all new equipment was installed. The market was relocated in order to increase the lobby and breakfast areas, which is now serviced by the kitchen that was re-built during the project. The entire exterior was painted and new signage installed. The renovation totaled $2.6 million and was completed in February of 2012. “We have seen positive results from the renovation and re-branding capital we have deployed over the past several quarters,” said Mr. Hansen. “We believe our recent substantial RevPAR growth is, in part, driven by the completion of this renovation work.” Balance Sheet
- At December 31, 2012, the Company had total outstanding debt of $312.6 million, including $58.0 million outstanding on its senior secured revolving credit facility, and the Company had $14.0 million of cash and cash equivalents.
- At February 25, 2013, following the completion of a public offering on January 14, 2013 and the re-payment of debt with net proceeds, the Company has a total outstanding debt of $283.0 million. Maximum borrowing capacity is $112.1 million under the senior secured revolving credit facility. The Company has no outstanding borrowings under its facility, $3.7 million in standby letters of credit, and $108.4 million available to borrow. In addition, the Company also has 19 unencumbered hotels available to further expand its borrowing base.
- The Company’s weighted average interest rate on its debt outstanding at February 25, 2013 is 5.60%.