CHICAGO, Feb. 27 /PRNewswire-FirstCall/ -- Strategic Hotels & Resorts (NYSE: BEE - News) today reported results for the fourth quarter and year ended December 31, 2007.Fourth Quarter Financial Highlights -- Comparable funds from operations (FFO) was $0.43 per diluted share, an increase of 43.3 percent compared with $0.30 in the prior year. -- Quarterly Comparable EBITDA was $68.3 million, an increase of 23.5 percent compared with $55.3 million in the prior year. -- Total North American total revenue per available room (Total RevPAR) increased 7.5 percent and revenue per available room (RevPAR) increased 7.2 percent driven by a 5.2 percent increase in average daily rate (ADR) and a 1.4 percentage-point increase in occupancy. Non-rooms revenues grew by 8.4 percent. The company's North American Same Store and Total North American portfolios were the same in the fourth quarter. -- European Same Store Total RevPAR increased 17.2 percent and RevPAR increased 21.4 percent driven by a 22.6 percent increase in ADR. Non- rooms revenues grew by 9.9 percent. -- Total North American gross operating profit margins expanded 270 basis points. Total North American EBITDA margins expanded 420 basis points. -- Total North American gross operating profit per room increased 16.0 percent. Total North American EBITDA per room increased 27.3 percent. -- Residential activity contributed $2.3 million in EBITDA and $1.4 million of Comparable FFO, or $0.02 per diluted share. Full-Year 2007 Financial Highlights -- Comparable FFO was $1.64 per diluted share, an increase of 17.1 percent compared with $1.40 in the prior year. Management estimates 2007 results were reduced by $2.4 million, or $0.03 per diluted share, related to disruption caused by capital project activity. -- Comparable EBITDA was $273.5 million, an increase of 38.7 percent compared with $197.1 million in the prior year. -- Excluding the impact of residential sales and the Hyatt Regency New Orleans (which had a net negligible impact on full year results), Comparable FFO would have been $1.54 per diluted share, a 10.0 percent increase over the prior year, and Comparable EBITDA would have been $259.3 million, a 31.6 percent increase over the prior year. -- Total RevPAR increased 9.9 percent and RevPAR increased 9.5 percent in the North American Same Store portfolio for the year ending December 31, 2007. Growth was driven by a 6.1 percent increase in ADR and a 2.3 percentage-point increase in occupancy. Non-rooms revenues grew by 11.0 percent. -- Total RevPAR increased 7.4 percent and RevPAR increased 7.4 percent in the Total North American portfolio for the year ending December 31, 2007. Growth was driven by a 5.6 percent increase in average daily rate (ADR) and a 1.3 percentage-point increase in occupancy. Non-rooms revenues grew by 7.8 percent. -- European Same Store Total RevPAR increased 12.6 percent and RevPAR increased 13.6 percent driven by a 16.1 percent increase in ADR. Non- rooms revenues grew by 10.1 percent. -- Total North American hotel gross operating profit margins expanded 190 basis points. North American same store property EBITDA margins expanded 140 basis points. -- Total North American gross operating profit per room increased 13.1 percent. North American same store EBITDA per room increased 15.6 percent. -- Residential activity contributed $14.4 million in EBITDA and $7.6 million of Comparable FFO, or $0.10 per diluted share. Fourth Quarter Events -- On December 28, 2007, the company closed on an agreement to sell the Hyatt Regency New Orleans to Poydras Properties Hotel Holdings Co., LLC for a gross sales price of $32.0 million. -- On December 10, 2007, the company announced that it had entered into a partnership with Sunstone Hotel Investors, Inc. (NYSE: SHO - News) ("Sunstone") to own and operate BuyEfficient LLC, an electronic purchasing platform that allows members to procure food, operating supplies, furniture, fixtures and equipment. Under the terms of the agreement, the company acquired a 50.0 percent interest in BuyEfficient, from Sunstone for a gross sales price of $6.3 million. -- The company purchased approximately 60 acres of oceanfront land near the Four Seasons Punta Mita Resort in Nayarit, Mexico for a mixed-use development. The effective purchase price of $45.8 million will be paid in installments through 2009.
Laurence Geller, chief executive officer said, "2007 was a year in which Strategic Hotels & Resorts made great strides. At the beginning of the year, we tasked ourselves with the execution of an ambitious set of objectives. We delivered on each of these promises -- exceptional operating results and the achievement of key measurement metrics, settlement of the insurance claim at the Hyatt Regency New Orleans and its subsequent sale, recycling of capital through our joint venture with the Government of Singapore, successful sale of our residential units at the Hotel del Coronado and their return to our rental pool, completion of the majority of our master planning objectives, execution of our programmed capital projects, implementation of additional significant operating programs and systems, and early and efficient implementation of our property level-contingency plans as needed.
"With this strong foundation solidly in place, we are well positioned to quickly and thoughtfully adapt to the current changing and volatile economic environment. As we move into 2008, our seasoned management team is poised to continue its disciplined and systematic execution of our operating, marketing and physical master planned activities, while being constantly sensitive to any changes in the economy and marketplace."
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