in addition to the value of its lodging revenues, what other value is inherent in a hotel?

CorePoint Lodging Reports Third Quarter 2021 Results

IRVING, Texas, Nov. 08, 2021 (Earth NEWSWIRE) -- CorePoint Lodging Inc. (NYSE: CPLG) ("CorePoint" or the "Company"), a pure play select-service hotel owner strategically focused on the midscale and upper-midscale segments, today reported operational and fiscal results for the tertiary quarter ended September xxx, 2021.

Third Quarter 2021 and Subsequent Highlights

  • Internet income of $17 million, or $0.28 earnings per diluted share
  • Comparable RevPAR of $66.38, an increment of 71.4% from the same catamenia in 2020 and a decrease of 4.ix% from the same period in 2019
  • Adjusted EBITDAre of $34 meg
  • Adjusted FFO attributable to common stockholders of $29 1000000, or $0.47 per diluted share
  • Sold 15 non-core hotels for a combined gross sales toll of approximately $96 meg during the quarter
  • Repaid $102 million in total debt during the quarter
  • Subsequent to quarter finish, sold 5 non-cadre hotels for a gross sales price of approximately $36 one thousand thousand, resulting in a total of 159 non-core hotels sold since March 2019 for a combined gross sales price of approximately $768 meg
  • An additional 41 hotels are under contract with qualified buyers, expected to generate approximately $278 million of gross proceeds, and are generally expected to close in the first half of 2022, subject to market and other conditions

Subsequent to quarter end, as announced today, the Visitor has entered into a definitive understanding to be acquired through a joint venture betwixt affiliates of Highgate and Cerberus Majuscule Direction, Fifty.P. ("Cerberus"). For additional details, encounter the Form 8-K filed by the Company before today with the Securities and Exchange Commission nether Items one.01 and 7.01.

Selected Statistical and Financial Data
(Unaudited, $ in millions, except RevPAR and ADR)

Three Months Ended September 30, 9 Months Ended September 30,
2021 2020 % Change 2021 2020 % Change
Net income (loss) $ 17 $ (8 ) 312.5 % $ xiv $ (136 ) 110.3 %
Total revenues $ 142 $ 107 32.seven % $ 377 $ 325 16.0 %
Adjusted EBITDAre $ 34 $ 8 325.0 % $ 68 $ ten 580.0 %
Adapted FFO attributable to common stockholders $ 29 $ N/M $ 49 $ (14 ) 450.0 %
Comparable Occupancy (ane) 63.iii % 51.6 % one,170 bps 59.7 % 47.one % one,260 bps
Comparable ADR (i) $ 104.93 $ 74.97 twoscore.0 % $ 92.30 $ 82.26 12.2 %
Comparable RevPAR (1) $ 66.38 $ 38.72 71.4 % $ 55.08 $ 38.77 42.1 %
Comparable Hotel Adjusted EBITDAre margin (one) 28.five % 12.3 % 1,620 bps 23.1 % 8.3 % 1,480 bps

____________________
(1) Comparable Hotels consists of all of the 160 hotels owned as of September xxx, 2021.
N/1000 = Not Meaningful

Third Quarter 2021 Financial and Operating Results

The Company reported net income of $17 million, or $0.28 earnings per diluted share, for the quarter concluded September 30, 2021, compared to a internet loss of $(8) million, or $(0.14) loss per diluted share, for the quarter ended September 30, 2020. Increases in year-over-year revenues partially starting time by increases in operating and other expenses led to the increase in cyberspace income.

Comparable RevPAR for the third quarter of 2021 increased 71.4% over the same period of 2020 with 1,058 basis points of RevPAR Index market share decline. The growth in comparable RevPAR was driven past a 40.0% increment in comparable ADR and a 1,170 bps increment in comparable occupancy. The increases in comparable ADR and comparable occupancy were primarily due to increased demand in 2021 as compared to the COVID-xix pandemic impact in 2020. Summit performing markets included Anaheim, Santa Ana and San Diego, California, Miami, Florida, Myrtle Beach, South Carolina, Boston, Massachusetts, and Chicago, Illinois.

Adjusted EBITDAre for the tertiary quarter of 2021 was $34 one thousand thousand equally compared to $8 million for the same period in 2020. The year-over-year increase was primarily due to increases in rooms revenue.

Operations Update and Measures to Mitigate Impact of COVID-19

The Company'southward hotels' room need and rates continued to benefit from leisure travel, certain segments of corporate travel related to essential businesses and being located in bulldoze-to destinations. The post-obit table summarizes select operating statistics for the months of July, August, and September 2021:

Comparable Occupancy Comparable ADR Comparable RevPAR
July 2021 69.0 % $ 111.85 $ 77.16
August 2021 61.5 % $ 102.50 $ 63.04
September 2021 59.2 % $ 99.xx $ 58.68

The Company continues to implement certain cost containment measures with respect to hotel and corporate spending. Appropriately, hotel operating expenses increased at a slower footstep than room acquirement, primarily due to suspension of buffet-style breakfast service and express housekeeping services for multi-night stays at many of our hotels.

Dispositions

Since CorePoint announced its initial non-core disposition programme of 78 hotels in March 2019, 73 of these hotels have been successfully sold for a combined gross sales cost of approximately $291 million and an additional 3 phase one hotels are nether contract with qualified buyers, expected to generate approximately $fourteen million in gross gain. The Company's expanded non-core disposition programme announced in March 2020 includes an additional phase two grouping of 132 hotels. Of the phase two hotels, 86 have been successfully sold for a combined gross sales toll of approximately $477 million and an boosted 38 phase two hotels are nether contract with qualified buyers, expected to generate approximately $264 one thousand thousand in gross gain. In that location can be no assurance as to the timing of any future sales or whether such sales will be completed at all. The Company is unable to forecast at this time the impact from the COVID-19 pandemic on the timing of or gross proceeds from nugget sales.

Hotel Disposition Summary ($ in millions):

Stage 1 Phase 2 Total
Total number of non-core hotels: 78 132 210
Full yr 2019:
Number of hotels sold 43 1 44
Gross proceeds $ 173 $ 4 $ 177
Portion of internet gain used to repay debt $ 111 $ three $ 114
Total year 2020:
Number of hotels sold 26 35 61
Gross proceeds $ 103 $ 171 $ 274
Portion of net proceeds used to repay debt $ 64 $ 132 $ 196
First quarter 2021:
Number of hotels sold two 7 ix
Gross proceeds $ 7 $ 35 $ 42
Portion of net proceeds used to repay debt $ 6 $ 30 $ 36
2d quarter 2021:
Number of hotels sold 25 25
Gross proceeds $ $ 143 $ 143
Portion of net proceeds used to repay debt $ $ 125 $ 125
Third quarter 2021:
Number of hotels sold 2 13 15
Gross proceeds $ 8 $ 88 $ 96
Portion of cyberspace proceeds used to repay debt $ seven $ fourscore $ 87
Fourth quarter 2021 (to date):
Number of hotels sold v 5
Gross proceeds $ $ 36 $ 36
Portion of net gain used to repay debt $ $ 32 $ 32

Uppercase Investments

The Company invested approximately $5 million in capital improvements in the third quarter of 2021. Equally previously disclosed, CorePoint is currently deferring all non-essential majuscule investments and expenditures, with the exception of life condom or critical operational needs, resulting in an expected almanac majuscule spend approximate of $15 million to $twenty meg, excluding whatever hurricane restoration costs which are predominantly covered by insurance proceeds.

Hurricane Ida Update

During the third quarter of 2021, Hurricane Ida impacted four of the Visitor's hotels in Louisiana, resulting in property harm at each of the hotels and the temporary disruption of operations. As of October 31, 2021, approximately 450 rooms remained out of service due to the impact of the hurricane. We expect these rooms to be placed back in service on a staggered footing over the adjacent several months. The Visitor expects that insurance proceeds, excluding whatever applicative insurance deductibles, volition be sufficient to cover a significant portion of the holding damage to the hotels and the related operating loss.

Residual Canvass and Liquidity

As of September 30, 2021, the Company had total cash and greenbacks equivalents of $174 million, excluding lender and other escrows of approximately $45 one thousand thousand.

As of September thirty, 2021, the Company had total debt principal outstanding of $537 million, which consisted of the following:

(Unaudited, $ in millions)

Debt Involvement Rate Maturity Date Principal Balance
Outstanding
CMBS Loan (1)(2) Fifty + 3.04% June 2025 $ 477
Revolving Credit Facility (3) L + 6.00% May 2022 sixty
Total $ 537

____________________

(1) Maturity date assumes the exercise of all borrower extension options. The next maturity date is June 2022, with borrower options to extend the maturity engagement for three successive terms of one year each. In June 2021, the Company extended the CMBS Facility to June 2022 under the second extension pick. Corporeality shown represents gross principal balance outstanding.

(2) Equally noted in the Hotel Disposition Summary tabular array to a higher place, the Company used approximately $32 one thousand thousand of net gain from its nugget sales subsequent to quarter end to reduce the CMBS main balance outstanding to $445 1000000 equally of today.

(3) Subsequent to quarter end, the Visitor repaid $five meg to reduce the Revolving Credit Facility main balance outstanding to $55 1000000 as of today.

Dividends

As previously disclosed, the Company has currently suspended its common stock dividend, resulting in the preservation of approximately $11 million of cash per quarter, or approximately $45 million on an annualized basis. All future dividends will exist at the sole discretion of CorePoint'due south Board of Directors and will depend upon, among other things, compliance with debt covenants and maintenance of our REIT qualification.

Earnings Call and Webcast

In light of the proposed transaction, the Company will not conduct an earnings call.

Forwards-Looking Statements

This press release contains "forrad-looking statements" within the meaning of Section 27A of the Securities Act of 1933, every bit amended and Section 21E of the Securities Exchange Deed of 1934, as amended. Such forward-looking statements ofttimes contain words such as "assume," "will," "anticipate," "believe," "predict," "projection," "potential," "contemplate," "plan," "forecast," "approximate," "look," "intend," "is targeting," "may," "should," "would," "could," "goal," "seek," "hope," "aim," "continue" and other similar words or expressions or the negative thereof or other variations thereon. Forward-looking statements are made based upon management'southward current expectations and beliefs and are not guarantees of future performance. Such frontward-looking statements involve numerous assumptions, risks and uncertainties that may crusade bodily results to differ materially from those expressed or implied in any such statements. Our actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a consequence of risks and uncertainties which include, among others: completion of the proposed transaction is subject to diverse risks and uncertainties related to, among other things, its terms, timing, structure, benefits, costs and completion; required approvals to complete the proposed transaction by our stockholders and the receipt of certain regulatory approvals, to the extent required, and the timing and conditions for such approvals; and the satisfaction of the closing conditions to the proposed transaction; business, financial and operating risks inherent to the lodging manufacture; macroeconomic and other factors beyond our control, including without limitation the furnishings of the ongoing COVID-19 pandemic or other pandemics or outbreaks of contagious disease; the geographic concentration of our hotels; our inability to compete finer; our concentration in the La Quinta brand; our dependence on the functioning of LQ Management L.50.C. and other third-party hotel managers and franchisors; covenants in our hotel management and franchise agreements that limit or restrict the sale of our hotels; risks posed by our disposition activities, including our ability to contract with qualified buyers and the chance that purchasers may not have the access to capital or meet other requirements; risks resulting from significant investments in existent estate; cyber threats and the risk of data breaches or disruptions of technology information systems; the growth of net reservation channels; disruptions to the functioning or transition of the reservation systems, accounting systems or other engineering science programs for our hotels, and other applied science programs and system upgrades; and our substantial indebtedness, including restrictions imposed on our ability to access our greenbacks. Additional risks and uncertainties include, among others, those risks and uncertainties described under "Risk Factors" in our Annual Study on Course 10-Grand for the twelvemonth ended December 31, 2020, our Quarterly Written report on Form 10-Q for the quarterly menstruation concluded June 30, 2021 and in our Quarterly Written report on Form x-Q for the quarterly period ended September 30, 2021, which is expected to filed on or virtually the engagement of this press release, equally such factors may be updated or superseded from time to time in our periodic filings with the SEC. You lot are urged to carefully consider all such factors and we note that the COVID-19 pandemic may have the effect of heightening many of the risks and uncertainties described. Equally such, the three and nine months concluded September thirty, 2021, are unlikely to be comparable to periods prior to the onset of the pandemic or to other periods affected past the pandemic, and are not indicative of hereafter functioning. Although it is believed that the expectations reflected in such forward-looking statements are reasonable and are expressed in skillful faith, such expectations may non show to be right and persons reading this advice are therefore cautioned not to place undue reliance on these frontward-looking statements, which speak just to expectations as of the appointment of this communication. Nosotros undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. If nosotros make any future public statements or disclosures which modify or impact whatever of the forward-looking statements contained in or accompanying this printing release, such statements or disclosures volition be accounted to modify or supercede such statements in this press release.

Not-GAAP Financial Measures

We refer to certain not-GAAP financial measures in this press release including FFO, Adjusted FFO, Adjusted FFO per diluted share, EBITDA, EBITDAre, Adjusted EBITDAre, Hotel Adapted EBITDAre, Comparable Hotel Adjusted EBITDAre, and Comparable Hotel Adapted EBITDAre margin. All such non-GAAP financial measures are unaudited. Delight see the tables to this press release for definitions of such non-GAAP financial measures and reconciliations of such fiscal measures to the most directly comparable fiscal measures calculated and presented in accord with accounting principles generally accustomed in the Us ("GAAP") for historical periods.

Virtually CorePoint

CorePoint Lodging Inc. (NYSE: CPLG) is the only pure-play publicly traded U.Southward. lodging REIT strategically focused on the buying of midscale and upper-midscale select-service hotels. CorePoint owns a geographically diverse portfolio in bonny locations primarily in or nigh employment centers, airports, and major travel thoroughfares. The portfolio consists of primarily La Quinta branded hotels. For more information, please visit CorePoint's website at world wide web.corepoint.com.

Contact:

Becky Roseberry
SVP - Finance and Investor Relations
214-501-5535
investorrelations@corepoint.com

CorePoint Lodging Inc.
Consolidated Remainder Sheets (Unaudited)
($ in millions, except per share amounts)

September xxx, 2021 December 31, 2020
Assets:
Real estate
State $ 446 $ 511
Buildings and improvements 1,590 1,813
Article of furniture, fixtures, and other equipment 239 293
Gross operating real manor two,275 2,617
Less accumulated depreciation (i,018 ) (1,083 )
Net operating real estate 1,257 1,534
Structure in progress 2 5
Full real estate, cyberspace ane,259 1,539
Right of use assets 14 xvi
Greenbacks and cash equivalents 174 143
Accounts receivable 18 13
Lender and other escrows 45 35
Other assets 18 xx
Total Avails $ 1,528 $ 1,766
Liabilities and Equity:
Liabilities:
Debt, internet $ 537 $ 810
Mandatorily redeemable preferred stock fifteen 15
Accounts payable and accrued expenses 63 48
Other liabilities 34 36
Total Liabilities 649 909
Commitments and contingencies
Equity:
Mutual stock, $0.01 par value per share; ane.0 billion shares authorized; 58.4 million and 58.0 million shares issued and outstanding equally of September 30, 2021 and December 31, 2020, respectively ane 1
Boosted paid-in-capital 971 963
Accumulated deficit (95 ) (109 )
Noncontrolling interest 2 2
Total Disinterestedness 879 857
Full Liabilities and Equity $ i,528 $ 1,766

CorePoint Lodging Inc.
Consolidated Statements of Operations (Unaudited)
(in millions, except per share amounts)

Three Months Concluded September thirty, Ix Months Ended September 30,
2021 2020 2021 2020
Revenues:
Rooms $ 139 $ 105 $ 369 $ 318
Other 3 ii 8 vii
Total Revenues 142 107 377 325
Operating Expenses:
Rooms 58 52 161 171
Other departmental and back up 20 20 59 59
Property tax, insurance and other 10 fourteen 37 45
Management and royalty fees 14 11 37 32
Corporate general and administrative 10 seven 24 21
Depreciation and amortization 33 39 108 121
Gain on sales of real estate (29 ) (27 ) (81 ) (59 )
Gain on prey (four ) (3 ) (7 )
Impairment loss 4 4 54
Full Operating Expenses 120 112 346 437
Operating income (loss) 22 (five ) 31 (112 )
Other Income (Expenses):
Interest expense (six ) (nine ) (20 ) (35 )
Other income (expenses), net one 3 3 5
Total Other Expenses (5 ) (6 ) (17 ) (30 )
Income (loss) earlier income taxes 17 (eleven ) 14 (142 )
Income revenue enhancement benefit iii 6
Net income (loss) $ 17 $ (8 ) $ 14 $ (136 )
Weighted average common shares outstanding:
Weighted average common shares outstanding - basic 57.1 56.vii 57.0 56.vi
Weighted average common shares outstanding - diluted 61.3 56.seven 61.0 56.six
Earnings (loss) per share:
Basic earnings (loss) per share $ 0.30 $ (0.14 ) $ 0.25 $ (2.40 )
Diluted earnings (loss) per share $ 0.28 $ (0.14 ) $ 0.23 $ (ii.40 )

RECONCILIATIONS

The tables beneath provide a reconciliation of Hotel Adjusted EBITDAre, Adapted EBITDAre, EBITDAre and EBITDA to net income (loss), and a reconciliation of FFO and Adjusted FFO to net income (loss). We believe this financial data provides meaningful supplemental information because it represents how management views the business and reviews our operating operation. It is also used past management when publicly providing the business outlook. See the definitions of "EBITDA," "EBITDAre," "Adjusted EBITDAre," "Comparable Hotel Adjusted EBITDAre," "FFO" and "Adapted FFO," for a further explanation of the use of these measures.

"EBITDA." Earnings before interest, income taxes, depreciation and amortization ("EBITDA") is a commonly used measure in many REIT and non-REIT related industries. Nosotros believe EBITDA is useful in evaluating our operating performance because it provides an indication of our ability to incur and service debt, to satisfy general operating expenses, and to make capital expenditures. We calculate EBITDA excluding discontinued operations. EBITDA is intended to be a supplemental non-GAAP financial measure out that is independent of a company's capital letter structure.

"EBITDAre." We present EBITDAre in accord with guidelines established past the National Association of Existent Estate Investment Trusts ("Nareit"). Nareit defines EBITDAre as EBITDA adjusted for gains or losses on the disposition of backdrop, impairments, and adjustments to reverberate the entity's share of EBITDAre of unconsolidated affiliates. We believe EBITDAre is a useful performance measure out to help investors evaluate and compare the results of our operations from menses to period.

"Adapted EBITDAre." Adjusted EBITDAre is calculated as EBITDAre adjusted for sure items, such every bit restructuring and separation transaction expenses, acquisition transaction expenses, stock-based compensation expense, severance expense, and other items not indicative of ongoing operating operation.

The Company believes that EBITDAre and Adjusted EBITDAre provide useful information to investors almost it and its financial condition and results of operations for the following reasons: (i) EBITDAre and Adjusted EBITDAre are amid the measures used by the Company's management to evaluate its operating performance and make day-to-day operating decisions; and (two) EBITDAre and Adapted EBITDAre are ofttimes used past securities analysts, investors, lenders and other interested parties equally a common performance mensurate to compare results or estimate valuations across companies in and apart from the Company's industry sector.

EBITDA, EBITDAre and Adapted EBITDAre are not recognized terms nether GAAP, accept limitations as belittling tools and should not be considered either in isolation or as a substitute for net income (loss), cash menses or other methods of analyzing the Visitor's results as reported under GAAP. Some of these limitations are that these measures:

  • do non reverberate changes in, or greenbacks requirements for, the Company'southward working majuscule needs;
  • do not reflect the Company's involvement expense, or the greenbacks requirements necessary to service interest or primary payments, on its indebtedness;
  • practice non reflect the Visitor'due south tax expense or the cash requirements to pay its taxes;
  • do not reflect historical cash expenditures or futurity requirements for capital expenditures or contractual commitments;
  • EBITDAre and Adjusted EBITDAre do non include gains or losses on the disposition of properties which may exist material to our operating performance and cash flow;
  • do non reflect the impact on earnings or changes resulting from matters that the Company considers non to be indicative of our futurity operations, including but not limited to discontinued operations, impairment, acquisition and disposition activities and restructuring expenses;
  • although depreciation, amortization and damage are non-cash charges, the assets existence depreciated, amortized or impaired will often have to be replaced, upgraded or repositioned in the hereafter, and EBITDA, EBITDAre and Adapted EBITDAre do not reflect any cash requirements for such replacements; and
  • other companies in the Company's industry may calculate EBITDA, EBITDAre and Adjusted EBITDAre differently, limiting their usefulness as comparative measures.

Because of these limitations, EBITDA, EBITDAre and Adapted EBITDAre should not be considered as a replacement to net income (loss) presented in accord with GAAP, discretionary cash available to the Visitor to reinvest in the growth of its business or as measures of greenbacks that volition exist available to the Company to meet its obligations.

"Hotel Adjusted EBITDAre" measures property-level results at the Company's hotels earlier corporate-level expenses and is a central measure of a hotel's profitability. The Company presents Hotel Adapted EBITDAre to help the Visitor and its investors evaluate the ongoing operating performance of the Company's properties.

"Comparable Hotel Adjusted EBITDAre" measures property-level results at the Company'south Comparable hotels before corporate-level expenses and is a primal measure of a hotel's profitability. The Company presents Hotel Adjusted EBITDAre to help the Company and its investors evaluate the ongoing operating performance of the Company's properties.

"Comparable Hotel Adapted EBITDAre margin" represents the ratio of Comparable Hotel Adjusted EBITDAre to total revenues.

Funds from operations ("FFO") and "Adjusted FFO". We present Nareit FFO attributable to mutual stockholders and Nareit FFO per diluted share (as defined beneath) every bit not-GAAP measures of our operation. We calculate funds from operations ("FFO") owing to common stockholders for a given operating menses in accord with standards established by Nareit, as net income or loss (calculated in accordance with GAAP), excluding depreciation and acquittal related to real estate, gains or losses on sales of certain real estate assets, impairment write-downs of real estate assets, discontinued operations, income taxes related to sales of certain real estate assets, and the cumulative issue of changes in accounting principles, plus adjustments for unconsolidated articulation ventures. Adjustments for unconsolidated joint ventures are calculated to reflect our pro rata share of the FFO of those entities on the same basis. Since real estate values historically take risen or fallen with market conditions, many industry investors have considered presentation of operating results for real manor companies that use historical cost accounting to be insufficient by themselves. For these reasons, Nareit adopted the FFO metric in order to promote an industry wide measure of REIT operating performance. We believe Nareit FFO provides useful information to investors regarding our operating performance and can facilitate comparisons of operating performance betwixt periods and between REITs. Our presentation may not exist comparable to FFO reported by other REITs that exercise not ascertain the terms in accordance with the current Nareit definition, or that translate the current Nareit definition differently than we practice. We calculate Nareit FFO per diluted share every bit our Nareit FFO divided by the number of fully diluted shares outstanding during a given operating period.

We besides present Adjusted FFO owing to common stockholders when evaluating our performance considering we believe that the exclusion of sure additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. Management historically has fabricated the adjustments detailed below in evaluating our functioning and in our annual upkeep process. Nosotros believe that the presentation of Adapted FFO provides useful supplemental information that is beneficial to an investor'southward complete understanding of our operating operation. We accommodate Nareit FFO attributable to mutual stockholders for the post-obit items, and refer to this measure as Adjusted FFO owing to common stockholders: transaction expense associated with the potential disposition of or acquisition of real estate or businesses; severance expense; share-based compensation expense; litigation gains and losses outside the ordinary course of business; acquittal of debt issuance costs; reorganization costs and separation transaction expenses; loss on early extinguishment of debt; straight-line ground lease expense; casualty losses; deferred tax expense; and other items that we believe are not representative of our current or future operating performance.

Nareit FFO attributable to common stockholders and Adjusted FFO attributable to common stockholders have limitations as analytical tools and should not exist considered either in isolation or every bit a substitute for net income (loss), greenbacks menstruation or other methods of analyzing our results equally reported under GAAP. Nareit FFO is not an indication of our liquidity, nor is it indicative of funds available to fund our cash needs, including our power to fund dividends. Nareit FFO is also not a useful measure out in evaluating cyberspace asset value because impairments are taken into business relationship in determining net asset value but not in determining Nareit FFO. Investors are cautioned that we may not recover any impairment charges in the futurity. Accordingly, Nareit FFO should exist reviewed in connection with GAAP measurements. Nosotros believe our presentation of Nareit FFO is in accord with the Nareit definition; however, our Nareit FFO may non be comparable to amounts calculated by other REITs.

ADJUSTED EBITDAre Non-GAAP RECONCILIATIONS
(unaudited, in millions)

Three Months Ended September 30, Ix Months Ended September 30,
2021 2020 2021 2020
Internet income (loss) $ 17 $ (8 ) $ fourteen $ (136 )
Interest expense 6 9 20 35
Income tax benefit (3 ) (half dozen )
Depreciation and amortization 33 39 108 121
EBITDA 56 37 142 xiv
Gain on sales of real estate (29 ) (27 ) (81 ) (59 )
Gain on casualty (four ) (three ) (vii )
Damage loss 4 four 54
EBITDAre 31 6 62 2
Equity-based compensation expense two iii seven viii
Income from charter modification (1 ) (1 )
Strategic alternatives exploration expenses one 1
Income from terminated sale contracts (1 ) (one )
Other, cyberspace i (1 ) i
Adjusted EBITDAre $ 34 $ 8 $ 68 $ x

Additional information:

  • Other, net represents additional income and expenses that are not representative of our electric current or future operating performance, which are individually less significant. For the three and 9 months concluded September 30, 2021, other, internet includes $1 million and $2 million of business break insurance proceeds, respectively. For the iii and ix months ended September 30, 2020, other, net includes $2 million and $4 million of business suspension insurance proceeds, respectively.

HOTEL Adjusted EBITDA AND Total REVENUES
NON-GAAP RECONCILIATION
(unaudited, in millions)

Three Months Concluded September 30, Ix Months Ended September 30,
2021 2020 2021 2020
Adjusted EBITDAre $ 34 $ 8 $ 68 $ ten
Corporate general and authoritative expenses (i) 6 4 15 12
Hotel Adjusted EBITDAre 40 12 83 22
Impact of non-comparable hotels (2) (1 ) (ii ) (5 ) (2 )
Comparable Hotel Adjusted EBITDAre ( 3) $ 39 $ x $ 78 $ xx
Three Months Ended September 30, Nine Months Concluded September thirty,
2021 2020 2021 2020
Total Revenues $ 142 $ 107 $ 377 $ 325
Impact of non-comparable hotels (2) (five ) (26 ) (39 ) (84 )
Comparable Hotel Revenues ( 3) $ 137 $ 81 $ 338 $ 241

____________________

(i) Reflects adjustments to exclude the effects of corporate general and administrative costs not already adjusted in calculating Adjusted EBITDAre.

(2) Includes the impact of hotels sold that are excluded from the

Comparable Hotels

.

(three)

Comparable Hotels

consists of all of the 160 hotels owned as of

September thirty, 2021

.

Adjusted FFO Not-GAAP RECONCILIATION
(unaudited, in millions)

Three Months Concluded September 30, 9 Months Concluded September 30,
2021 2020 2021 2020
Net income (loss) $ 17 $ (eight ) $ fourteen $ (136 )
Depreciation and amortization 33 39 108 121
Gain on sales of existent estate (29 ) (27 ) (81 ) (59 )
Gain on casualty (four ) (iii ) (7 )
Impairment loss 4 iv 54
Nareit defined FFO attributable to common stockholders 25 42 (27 )
Equity-based compensation expense 2 3 7 8
Non-greenbacks income tax expense (benefit) (iii ) (2 )
Amortization expense of debt issuance costs 1 ane 1 7
Income from charter modification (1 ) (1 )
Strategic alternatives exploration expenses 1 1
Income from terminated sale contracts (1 ) (i )
Other, net 1 (one ) ane
Adjusted FFO owing to common stockholders $ 29 $ $ 49 $ (14 )
Weighted average number of shares outstanding, diluted 61.iii 56.7 61.0 56.6
Adapted FFO per diluted share $ 0.47 $ $ 0.80 $ (0.25 )

____________________

Additional information:

  • Other, net represents additional income and expenses that are non representative of our current or future operating functioning, which are individually less significant. For the iii and 9 months ended September 30, 2021, other, net includes $ane meg and $2 meg of business suspension insurance proceeds, respectively. For the iii and nine months ended September xxx, 2020, other, net includes $2 meg and $iv one thousand thousand of business concern interruption insurance proceeds, respectively.
  • Weighted average number of shares outstanding, diluted presented above may differ from weighted average number of shares outstanding, diluted presented for GAAP purposes when there is a internet loss and all potentially dilutive securities are anti-dilutive. In that location are no dilutive securities for purposes of computing net loss or negative FFO.

Sure Divers TERMS

Average daily rate ("ADR") represents hotel room revenues divided by full number of rooms rented in a given menses. ADR measures the average room price attained past a hotel or group of hotels, and ADR trends provide useful information concerning pricing policies and the nature of the invitee base of a hotel or grouping of hotels. Changes in room rates have an impact on overall revenues and profitability.

"Occupancy" represents the total number of rooms rented in a given period divided past the full number of rooms available at a hotel or group of hotels. Occupancy measures the utilization of our hotels' available capacity, which may be affected from time to fourth dimension by our repositioning, holding casualties and other activities. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given menstruum. Occupancy levels also help us determine doable ADR levels as demand for hotel rooms increases or decreases.

Revenue per available room ("RevPAR") is defined as the product of the ADR charged and the average daily occupancy achieved. RevPAR does non include bad debt expense or other ancillary, non-room revenues, such as food and beverage revenues or parking, telephone or other guest service revenues generated by a hotel, which are not significant for united states.

RevPAR changes that are driven predominately by occupancy take different implications for overall revenue levels and incremental hotel operating profit than changes driven predominately by ADR. For instance, increases in occupancy at a hotel would lead to increases in room and other revenues, too equally incremental operating costs (including, but non limited to, housekeeping services, utilities and room assiduities costs). RevPAR increases due to higher ADR, however, would more often than not non result in boosted operating costs, with the exception of those charged or incurred as a percentage of revenue, such as management and royalty fees, credit carte du jour fees and booking commissions. As a result, changes in RevPAR driven by increases or decreases in ADR generally have a greater event on operating profitability at our hotels than changes in RevPAR driven by occupancy levels.

"RevPAR Index" measures a hotel's fair market place share of its competitive gear up's revenue per available room.

"Comparable Hotels" are divers as hotels that were active and operating in our system for at least 1 full agenda year as of the end of the applicable reporting period and were active and operating as of Jan 1st of the previous year. Comparable Hotels exclude: (i) hotels that sustained substantial property impairment or other business concern interruption; (ii) hotels that are sold or classified as held for auction; or (iii) hotels in which comparable results are otherwise not bachelor. Management uses Comparable Hotels every bit the ground upon which to evaluate ADR, occupancy, and RevPAR. Direction calculates comparable ADR, occupancy, and RevPAR using the same set of Comparable Hotels as defined above. Further, we study variances in comparable ADR, occupancy, and RevPAR between periods for the set of Comparable Hotels existing at the reporting date versus the results of the same set of hotels in the prior period.

HOTEL COUNT RECONCILIATION

Hotel Count
Every bit of December 31, 2018 315
Hotels sold (44)
As of December 31, 2019 271
Hotels sold (61)
Other (1) (one)
As of Dec 31, 2020 209
Hotels sold (9)
As of March 31, 2021 200
Hotels sold (25)
As of June 30, 2021 175
Hotels sold (two) (fifteen)
Every bit of September 30, 2021 160
Hotels sold subsequent to quarter cease (3) (five)
As of November 8, 2021 155
Total hotels sold 159

_____________

(1) In the second quarter of 2020, the Company permanently tending of i hotel, 140 rooms, that was subject to a ground lease
(2) The Company sold xv hotels in the 3rd quarter of 2021, totaling 1,753 rooms. Of these backdrop sold, ane was located in each of the following locations: El Paso, Texas; Appleton, Wisconsin; Fort Myers, Florida; Alexandria, Louisiana; Orlando, Florida; Orem, Utah; Naples, Florida; Tampa, Florida; Greenwood Hamlet, Colorado; Atlanta, Georgia; Stockton, California; Stafford, Texas; Tampa, Florida; Sarasota, Florida; and Albuquerque, New Mexico
(3) From September 30, 2021 through today, the Visitor sold 5 hotels, totaling 626 rooms. Of these properties sold, one was located in each of the post-obit locations: Nashville, Tennessee; Houston, Texas; Clearwater, Florida; Winston - Salem, North Carolina; and Greensboro, Northward Carolina


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CorePoint Lodging Inc.

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Source: https://www.corepoint.com/news/2021/11-08-2021-112012723

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