Hotel Michel Angelo http://hotelmichelangelo.net/ Tue, 09 Aug 2022 12:33:44 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://hotelmichelangelo.net/wp-content/uploads/2021/04/cropped-icon-32x32.png Hotel Michel Angelo http://hotelmichelangelo.net/ 32 32 AI and robots could soon help predict what customers want, says CEO of Rosewood Hotels https://hotelmichelangelo.net/ai-and-robots-could-soon-help-predict-what-customers-want-says-ceo-of-rosewood-hotels/ Tue, 09 Aug 2022 12:33:44 +0000 https://hotelmichelangelo.net/ai-and-robots-could-soon-help-predict-what-customers-want-says-ceo-of-rosewood-hotels/

Sonia Cheng, CEO of Rosewood Hotel Group, says the future of work will involve personalized guest experiences thanks to advances in technology

(Washington Post illustration; Rosewood Hotel Group)

Comment

Imagine this: you’ve been head down at work for several weeks when suddenly you hear a ping. You’ve received an email suggesting you’re late for a vacation, and you’re presented with a list of resorts in the cities you want to visit.

So you book a trip. When you arrive at your hotel, the staff know your name. They know you want an ocean view and extra towels, and you’ll probably need a 9 a.m. wake up call. They are aware that you need a gluten free menu for room service and you will want a Late departure. And you had nothing to say.

This is the kind of personalization that Sonia Cheng, Managing Director of Rosewood Hotel Group, envisions for the future of the hospitality industry using data analytics. It’s one of the technology projects she leads at the Hong Kong-based private international hotel chain, which operates more than 45 hotels in 16 countries, including London, Paris, Beijing, Abu Dhabi and Shanghai.

But that’s not all on Cheng’s plate. After the pandemic wreaked havoc on the hospitality and travel industry, Cheng said his company was struggling to attract talent during a tough labor shortage. Additionally, Cheng said the pandemic has changed the way people work and travel, which means adapting and changing direction quickly. His advice to leaders? Learn to make quick decisions and work as a team.

Cheng shared his vision for the future of work and the hospitality industry. His answers have been edited for clarity.

Q: What is the current labor policy for Rosewood employees?

A: Our managers manage their teams. There is no set rule on how many days a week people should be in the office. If you really need to work from home, work from home. It is really appreciated by our associates. It is also something that allows our company to be attractive to external talent. We also remain flexible in how we recruit and place talent around the world.

Sonia Cheng, CEO of Rosewood Hotel Group, said there were no rules limiting the number of days associates at their luxury hotels can work from home. (Video: The Washington Post)

Q: What changes can hospitality workers expect in a post-pandemic world?

A: We are looking to eliminate some of the tedious tasks through robotics or machine learning to make work more flexible. We are exploring how automation and technology for the back office can simplify processes for our employees. However, in the hospitality industry, we are still a people business. It is therefore necessary to find a balance between high tech and high touch. Ultimately, I think customers want to build that relationship with our associates, and that’s something technology can’t replace.

Q: What lessons from the pandemic will you use going forward?

A: We need to stay flexible and agile. The pandemic happened very quickly and we reacted very quickly. We immediately implemented contactless check-in, hybrid meetings and [new processes for] how we work in different geographies and understand customer needs. For example, in many cities, [people started taking] stays. We were the first hotel brand to launch staycations in Hong Kong and transform Rosewood Hong Kong into an urban resort.

Q: How have travel trends changed?

A: With business travel, due to the pandemic, customers are more willing to stay longer in [one place] so that they can communicate with their colleagues. And with all the technology designed for online collaboration, you can work on the go. Thus, their vacations also tend to be longer as they schedule business meetings with their vacation time. Clients also travel with larger groups and families.

Sonia Cheng, CEO of Rosewood Hotel Group, says the luxury hotel chain tries to meet specific guest desires using online behaviors and data sources. (Video: The Washington Post)

Q: What new trends have you seen from what customers want?

A: Customers are more focused on their well-being. And they focus on how we can provide exclusivity. Some of these trends will remain post-pandemic. We launched our new wellness brand, Aspire, to fit wellness. And we’ve accelerated our plans to offer wellness classes online. At Rosewood Residences (the company’s apartment rental brand), we offer individual villas and exclusive accommodations. During the pandemic, everyone’s behavior online has increased. So we are looking at different e-commerce projects. Rosewood would be more than just a hotel brand. It would be a luxury lifestyle brand where we would offer different curated products.

Q: Has the pandemic changed expansion plans?

A: The business has been quite resilient. In 2021, we had the highest number of signings we have had at Rosewood Hotel Group. And just recently, we announced new projects that will join our portfolio, including in Raleigh, Miami and Venice. Next year we are on track to open Rosewood Amsterdam, Rosewood Munich, Kona Village in Hawaii as well as Rosewood Doha [in Qatar]. The rate of opening was therefore not called into question.

Q: What has changed for customers and what is planned for the future?

A: After the pandemic, it is very important that we recognize the names of our customers and can anticipate their needs. We are therefore also building a centralized system called Data Lake House where we can anticipate needs based on customer profiles and personalize their journey.

Q: What are Rosewood’s top technology priorities?

A: The Data Lake House is a big project that I believe will transform the way we develop travel for our customers. We can analyze data and travel patterns to anticipate future Rosewood locations that would be suitable for our customers. [It should capture] your preferences during your stay, and [identify if] there is a template on what kind of rooms you like to book.

Q: How have you connected a more dispersed workforce?

A: The Insider app connects our associates around the world. We share company news and associates can post their photos, things they find interesting or stories or articles they find inspiring so that they can build community and have a sense of culture, especially during the pandemic.

Q: How does Rosewood view emerging technologies such as the Metaverse?

A: NFTs and the metaverse — every company is watching this space, including us. It is too early to tell. If we do anything, it has to be something unique, differentiating and right for the brand. We need time to investigate.

What you need to know about the future of work in the metaverse

Q: What do workers expect from you as an employer?

A: They become quite selective in terms of the companies they choose. It is very important for them to join a company that has a strong commitment to positive impact and truly empowers its associates. We are committed to ensuring strong diversity and supporting different groups. Today’s talent really values ​​organizations that have a strong sense of purpose. And they want to join a company that’s not only doing well, but really doing good for the community.

Sonia Cheng, CEO of Rosewood Hotel Group, said there were no rules limiting the number of days associates at their luxury hotels can work from home. (Video: The Washington Post)

Q: What is your biggest challenge?

A: The talent shortage is a challenge that everyone faces. Being an attractive and performance-oriented company for workers is important. So, in addition to providing technology to facilitate work, it is important that we provide a solid career path. We built the Rosewood Academy where we nurture top talent and provide them with courses and programs.

Q: What should workers and guests expect from Rosewood in the future?

A: Five years from now you will see an organization that has a very strong sense of purpose. With technology, we should be able to personalize our customers’ experience. We have around 30 hotels in the pipeline, so in five years you’ll see our portfolio more than double.

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IHG announces ‘Diamond Era’ as it marks 60 years in Australia https://hotelmichelangelo.net/ihg-announces-diamond-era-as-it-marks-60-years-in-australia/ Mon, 08 Aug 2022 23:29:40 +0000 https://hotelmichelangelo.net/ihg-announces-diamond-era-as-it-marks-60-years-in-australia/

IHG Hotels and Resorts celebrates a milestone of 60 years of its brands in Australia this week.

A series of celebratory events are planned at its properties throughout August and throughout the rest of the year and IHG will also offer a social media series with video messages from colleagues past and present to remember the people who have made the company what it is today.

“I’m so proud to celebrate an incredible milestone for a company that I love so much and that holds such a special place in the hearts of the many people who have been part of the journey over these 60 incredible years,” said the director. General of IHG. for Japan, Australasia and the Pacific, Leanne Harwood.

A photo of the InterContinental Adelaide rooms from the IHG archives Source: IHG

“It is truly a wonderful time of celebration, reflection and excitement for the future as we enter our ‘Diamond Era’ for IHG.”

“I am very grateful to have the opportunity to lead IHG here in this market today, but there are so many who have been part of our deep heritage and continued our pioneering spirit to lead the way before me. This anniversary is an opportunity for us to give back and say thank you.Thank you to our colleagues, thank you to the owners, thank you to our former leaders and thank you to our loyal guests, who have accompanied us on this exciting journey.

Industry-leading body, the Accommodation Association, congratulated IHG for reaching this important milestone.

Vacuum cleaners have come a long way since the early days of the InterContinental Adelaide. Source: IHG

“IHG and its portfolio of well-known brands have been integral to the growth of the accommodation industry and the reputation of our employees who go above and beyond to deliver incredible experiences,” said Accommodation Association CEO Richard Munro.

“Organizationally, the Accommodation Association also benefits from the leadership of Leanne Harwood, IHG Hotels and Resorts Senior Managing Director for Japan, Australasia and the Pacific, as President. It is an absolute pleasure to recognize and congratulate everyone who has played a role in the growth of IHG over the past 60 years in Australia.

IHG through the decades

A message of thanks to the Beatles for their stay at the InterContinental Southern Cross Hotel Melbourne. . Source: https://australianfoodtimeline.com.au/southern-cross-hotel/

On August 14, 1962, the legendary InterContinental Southern Cross Hotel Melbourne opened its doors, becoming the country’s first international hotel. Introduced by American airline Pan Am, founder of the InterContinental brand, the luxurious American-style hotel has attracted celebrities, royalty and rockstars from Frank Sinatra to Princess Diana and the Beatles.

“We couldn’t wish for a more iconic property to mark the launch of our long and impressive history in Australia and, although the Southern Cross Hotel is no longer with us, its legacy lives on in the iconic properties we continue to work with. ‘open. our owners today and we are very honored to celebrate this 60-year milestone with our colleagues, owners and guests,” said Harwood.

InterContinental Southern Cross Hotel Melbourne was one of the most luxurious hotels of its time. Source: https://australianfoodtimeline.com.au/southern-cross-hotel/

In the decades that followed, the Holiday Inn and Crowne Plaza brands entered the Australian market and established properties in destinations such as Cairns, Cable Beach, Hamilton Island, Newcastle, Melbourne and Sydney.

Bass Hotels and Resorts acquired the Holiday Inn and InterContinental brands in the 1980s and 1990s respectively, leading to rapid growth of these brands in Australia. In 2000, Bass acquired Southern Pacific Hotels Corporation (SPHC), transitioning its Parkroyal and Centra brands, before divesting its hotel business, known as Six Continents. In 2003, the company was renamed InterContinental Hotels Group (IHG), and it eventually became IHG Hotels and Resorts in 2021.

IHG’s bright and colorful Voco Hotel in Melbourne

In what the company calls its Diamond Age, IHG is experiencing its greatest period of organic growth. It now has 68 hotels open and signed in Australia and 95 across the Australasia and Pacific region. These properties span eight brands and three Collections: InterContinental, Kimpton, Vignette Collection and Hotel Indigo in the Luxury and Lifestyle portfolio; voco and Crowne Plaza in the Premium portfolio; and Holiday Inn and Holiday Inn Express in the Essentials portfolio.

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Power sector favors Transcorp as profit hits 9-year high – https://hotelmichelangelo.net/power-sector-favors-transcorp-as-profit-hits-9-year-high/ Mon, 08 Aug 2022 12:20:43 +0000 https://hotelmichelangelo.net/power-sector-favors-transcorp-as-profit-hits-9-year-high/

Transnational Corporation of Nigeria Plcin its recently released half-year (S1) financial statements on the Nigeria Exchange Group (NGX), announced its highest profit in nine years, with the company’s energy operating segment contributing 84.59% of the profit total for the period, according to findings by BusinessDay.

Its profit after tax increased by 84.77% to N12.01 billion in the first half of 2022 from N6.50 billion in the first half of 2021.

The company’s revenue also increased by 18.08% to N62.89 billion in the first half of 2022 from N53.26 billion in the corresponding period of 2022, the revenue highest semester recorded by the company in 9 years.

On a quarterly basis, revenue increased by 0.35% to N31.50 billion in the second quarter (Q2) of 2022 from N31.39 billion in the first quarter (Q1) of 2022.

A further breakdown of the operating segments shows that the energy segment of the business contributed the bulk of 76.16% to N47.90 billion in the first half of 2022. However, the energy segment hotel business grew the most by 70.81% to N14.98 billion in the first quarter. of 2022 compared to 8.77 billion naira for the corresponding period of 2021.

Similarly, its energy operating segment also grew by 7.66% to N47.90 billion in the first half of 2022 from N44.49 billion in the first half of 2022, while its Business Center operations increased by 48.2% to N4.52 billion in the first half of 2022. N3.05 billion in the reporting period.

Commenting on the performance, Owen Omogiafo, Group Chairman/Chief Executive of Transcorp, attributed the group’s continued strong performance to the growth of its power and hospitality businesses, which continued to excel despite the environment. operational difficult.

Omogiafo said: “In our electricity sector, despite the challenges of grid instability and gas reliability, we have seen considerable growth in our electricity investments, with an increase in our available capacity. of 21% (100 MW) compared to last year and an improvement in our overall operational efficiency. We have continued to make progress with our OPL281 investment and are on track to achieve our integrated energy strategy and increase returns for all stakeholders.

The conglomerate company’s cost of sales rose 6.82% to N31.78 billion in the first half of 2022 from N29.75 billion in the first half of 2021, with natural and fuel costs accounting for 67, 56% of total cost of sales during the period. .

However, repairs and maintenance, food and beverage and rooms were the main drivers of the increase in the cost of sales, with repairs and maintenance increasing by 372.27% to reach 2.98 billion. naira, food and beverages increased by 80.56% to 2.60 naira. billion, and rooms increased by 70.7% to reach N1.34 billion in the first half of 2022.

The company’s administrative expenses during the period increased by 45.20% to N10.89 billion in the first half of 2022 from N7.50 billion in the corresponding period last year.

Transcorp Group recorded a decrease in net finance costs of 23.84% to 6.07 billion naira in the first half of 2022, compared to 7.97 billion naira in the previous period (1st half of 2021).

The decline in finance charges can be attributed to a sharp decline in interest charges despite the increase in interest income to N521.1 million in the first half of 2022 from N304.7 million in the first half of 2021.

Interest expense decreased by 20.41% to N6.59 billion in the first half of 2022 from N8.28 billion in the corresponding period of 2021.

Similarly, foreign exchange loss on borrowings decreased by 20.61% to N1.04 billion in the first half of 2022 from N1.31 billion in the first half of 2021.

Read also:

The company’s total registered assets increased by 16.45% to N417.19 billion in the first half of 2022 from N358.26 billion in the first half of 2021.

Equity of Transcorp Group during the reporting period amounted to N157.49 billion, an increase of 31.41% from N119.85 billion in the first half of 2021.

Businessday’s analysis to measure the rate of return owners of a company’s common stock receive on their holdings shows a return on equity (ROE) of 14.31% in the first half of 2022.

The conglomerate company’s cash and cash equivalents, which indicate the value of a company’s assets that are in cash or can be converted into cash immediately, amounted to N5.32 billion in the first half of 2022, down 68.18% from N16.72 billion in the first half. of the previous year.

The company generated 5.19 billion naira from its operating activities in the first half of 2022, down 77.84% from the 23.42 billion naira it generated in the first half of 2021.

The conglomerate reported negative cash flow used in investing activities of N-3.55 in the first half of 2022 due to the large cash outflow in the period.

Also Read: Transcorp Group Announces 32.3% Increase in Revenue, Total Assets Reach N416 Billion

A breakdown of cash flow used in investing activities shows that the Transcorp Group paid interest amounting to N521.09 million and invested in the purchase of fixed assets amounting to N3 .31 billion naira in the first half of 2022.

Its cash inflow from investing activities during the period was derived from dividend income on equity securities and proceeds from the sale of property, plant and equipment, which amounted to N128.68 million and N128.68 million, respectively. N151.36 million.

Similarly, its net cash flow used in financing activities was negative, amounting to N10.42 billion in the first half of 2022 due to the net movement of borrowings, interest and dividend payments during the period, which amounted to 3.02 billion naira, 6 billion naira. 0.59 billion and 812.96 million naira respectively.

The conglomerate reported total borrowings of N103.06 billion in the first half of 2022, down 17.58% from the N125.04 billion reported in the first half of 2021.

Transcorp debt

Businessday’s analysis to measure the extent to which equity can meet obligations to its creditors, in the event of a downturn, shows a leverage ratio of 17.90%.

The company reported earnings per share (EPS) of N14.40 per share in the first half of 2022, up 82.05% from N7.91 billion in the first half of 2021.

Owen Omogiafo said, “Across all of our businesses, we are relentless in executing our transformation and growth agenda and are pleased with the results achieved so far. We have invested strategically over the years in long-term projects and businesses that continue to generate productive returns and position the Transcorp Group as an institution that delivers value to all stakeholders and transcends many generations.

According to her, Transcorp Group is fully prepared to maintain its growth trajectory for the rest of the year and beyond, despite the macro-economic problems. “We do not intend to rest on our laurels, and we will continue to surpass past performances” assured Owen Omogiafo to his stakeholders.

Transnational Corporation of Nigeria Plc is a diversified conglomerate with business interests in the power generation, hospitality, and oil and gas sectors.

It owns and operates the Transcorp Hilton Hotel in Abuja and the Transcorp Hotel in Calabar. In the energy sector, the company is involved in upstream oil development and has interests in refining exploration and oil and gas marketing.

Other business interests include power generation, maritime operations and the supply of products for the mining and construction sectors, including stone, sand, lime and iron. Transnational Corporation of Nigeria Plc is headquartered in Lagos, Nigeria.

Financial performance of Transcorp
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GCC needs to secure its investment landscape: report https://hotelmichelangelo.net/gcc-needs-to-secure-its-investment-landscape-report/ Sun, 07 Aug 2022 20:17:48 +0000 https://hotelmichelangelo.net/gcc-needs-to-secure-its-investment-landscape-report/

Saudi Arabia targets $3.3 billion in cumulative investment through 2030, says deputy minister

RIYADH: Saudi Arabia has adopted more than 600 economic reforms since the launch of the Vision 2030 plan with the aim of attracting SR12.4 trillion ($3.3 trillion) in cumulative investment and 1.8 trillion SR of foreign direct investment between 2021 and 2030 under the National Investment Strategy, said a deputy minister of the Ministry of Investment.

Speaking to Arab News Saad Al-Shahrani, Acting Deputy Minister for Investment Promotion at Saudi Arabia’s Ministry of Investment, said the Kingdom achieved an 18% increase in foreign direct investment in 2020 , even though global FDI had decreased by 35% due to the pandemic.

The flow of FDI in 2021 increased by 257% compared to 2020, largely thanks to a SR 46.5 billion infrastructure agreement concluded by Aramco with a consortium of global investors in the second quarter of 2021.

If the huge Aramco deal is excluded, the Kingdom attracted SR5.3 billion in the second quarter of last year.

Al-Shahrani added that the NIS launched in 2021 is a plan to transform the Kingdom into a global hub for business and talent.

Saad Al-Shahrani

During the interview, the Minister disclosed that FDI flow in the first quarter of 2022 increased by 10% to SR 7.4 billion compared to the same period last year.

He further said that NIS helped MISA close 49 investment deals worth SR3.5 billion in the second quarter of 2022, creating 2,000 jobs across all sectors.

“These figures testify to the good execution of the government’s strategy and the impact of new reforms, initiatives and investment opportunities”, declared the Deputy Minister.

He added, “The Kingdom has made remarkable progress in many economic and investment indicators, ranking third in the Ease of Minority Investor Protection Index out of 132 countries, for the year 2021.”

Fastest growing among G-20 countries

The deputy minister further noted that the Kingdom had reached the top spot among 22 countries in Ipsos’ Global Consumer Confidence Index for May 2022.

Citing the International Monetary Fund’s World Economic Outlook 2022, Al-Shahrani said the Kingdom is now the fastest growing nation among the Group of 20 countries, with a growth rate of 7.6 percent. .

“Saudi Arabia’s regulatory transformation has a direct impact on the basic economy. Along with healthy demand and investor interest in the oil sector, our non-oil economy has shown strong growth,” he added.

The deputy minister said flash estimates of real gross domestic product growth in the second quarter showed 11.8% year-on-year growth, the highest rate since 2011, supported by real GDP growth from activities. oil and non-oil by 23.1% and 5.4%, respectively.

Industrial production on the rise

Commenting on the rise in the industrial production index, Al-Shahrani said: “The IPI rose 24% year on year in May 2022, with manufacturing increasing by more than 28%. These numbers are a direct result of the government’s active diversification efforts.

He also claimed that the Kingdom will become one of the most competitive economies in the world and an attractive investment destination by 2030.

The Deputy Minister further noted that digital transactions are increasing in Saudi Arabia, in line with the government’s goal to have 70% of all transactions be digital by 2025.

“Policymakers have listened to investors’ needs and responded appropriately to create an investment ecosystem that rivals the best in the world,” he continued.

The future of Saudi Arabia is tourism

The Deputy Minister further indicated that tourism will soon become one of the main drivers of the Saudi economy as the economic diversification drive continues.

He revealed that the Kingdom has already issued more than 3,500 tourism investment licenses, a crucial step towards reaching 10% of the national GDP through tourism by 2030.

Al-Shahrani added that the Kingdom will welcome more than 100 million tourists by 2030 and generate one million jobs in the sector.

“NEOM, The Red Sea Project, AlUla, Soudah, AMAALA and Diriyah Gate are huge opportunities for investors,” he continued.

The Deputy Minister further disclosed that the Kingdom’s airline, SAUDIA, will add 94 new destinations to bring visitors to the Kingdom by 2030.

In addition to tourism, MISA also signs agreements with companies in the renewable energy, logistics and pharmaceutical sectors, the deputy minister added.

“It is abundantly clear that the headwinds that are whetting the appetite of global investors are not blowing in Saudi Arabia’s direction. The government’s strategy, inspired leadership, talent at all levels, well-executed reforms and a clear vision of the future have combined to make the Kingdom an investment powerhouse,” Al-Shahrani said.

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Expert advocates profitability for hospitality entrepreneurs https://hotelmichelangelo.net/expert-advocates-profitability-for-hospitality-entrepreneurs/ Sun, 07 Aug 2022 10:43:33 +0000 https://hotelmichelangelo.net/expert-advocates-profitability-for-hospitality-entrepreneurs/

Hospitality and hospitality consultant, Abdulkarim Ahmed, advised hotel businesses to look for new sources of revenue to weather the ongoing economic downturn.

Ahmed, who said this in a recent interview in Abuja, urged hoteliers to diversify their customer base by looking at potential new markets that are emerging.

Ahmed, who is the managing director of V-Hospitality, a management consultancy, said: “It’s a great time for hoteliers to experiment with a variety of digital initiatives to attract young, affluent and savvy travelers. of technology by leveraging customers of online touchpoints and providing digital tours, live streaming via social media, among others, in addition to promoting local attractions, cuisine and outdoor excursions.

The tourism sector and hotel businesses have been negatively impacted by the pandemic and aggravated by the ongoing war in Ukraine coupled with economic downturns in most countries.

Ahmed, who has enjoyed great success with his flagship boutique hotel, Vanern Residence in Abuja, advised hoteliers and other hospitality businesses to work on profitability, take a close look at their businesses’ operating expenses and find ways to reduce these costs.

According to him, “you can for example try to make your suppliers accept more flexible conditions. By adjusting your sales estimate, you could strike a balance between supply and demand, resulting in a more stable cash flow.
Vanern Residence, he said, was able to ride out the pandemic by seeing the lockdown as an opportunity, which led to developing a unique service offering for customers.
He also urged businesses to “offer your visitors or customers a product or service that is not currently available in the industry in which you work. Investigate flaws in your competitors’ products and service offerings, using market research to achieve this”.

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Plan for new building, restaurant, pool at Bermudiana Beach Resort approved – The Royal Gazette https://hotelmichelangelo.net/plan-for-new-building-restaurant-pool-at-bermudiana-beach-resort-approved-the-royal-gazette/ Sat, 06 Aug 2022 10:59:00 +0000 https://hotelmichelangelo.net/plan-for-new-building-restaurant-pool-at-bermudiana-beach-resort-approved-the-royal-gazette/

The Bermudiana Beach Resort on the south shore of Warwick (file photo by Blaire Simmons)

A plan to renovate Bermudiana Beach Resort to make it guest-ready has received the green light from the Development Applications Board.

The plan, submitted this year, includes new beach access, an arrivals building, new dining facilities and a swimming pool overlooking the South Shore.

While only one objection to the plan was received from the Bermuda Audubon Society, a planning report said the concerns had already been addressed in a previously approved application for the site.

The report states: “The work contained in this request is necessary to provide additional amenities to the condominium hotel.

“In the context of the change of use of the site, the proposed development is appropriate for the site, in accordance with tourism policies, and will allow the enjoyment of the land and is therefore supported for approval.”

The application for the station included the creation of a new two-storey reception building and an event support building with a kitchen and washrooms on the west side of the site.

One of the existing buildings on the northeast side of the site, Block C, would be modified to add a restaurant as well as a loading dock, basement and terrace.

Proposals also included a moongate and pool deck on the south side of the site, as well as a poolside bar and grill.

The new plans included a staircase and lift on the southeast side of the station to replace the funicular access to the beach.

The planning report stated that although the arrivals and event support buildings were close to the public thoroughfare, council would be justified in using its discretion to approve it given the layout of the property.

The report also supported changes to hotel amenities on site from previously approved plans.

“All proposed amenities along the South Cliff and located in areas where development has been proposed and approved in previous applications,” the report writer said.

“The most notable change is the move of the pool from the west side of the property to the east side with a separate pool bar, grill and washroom facilities.

“This building has been reduced to a practical minimum and its need is justified since the restaurant is no longer located nearby and therefore cannot be relied upon for standard hotel pool services.”

The report also highlighted the removal of a previously planned funicular with a combination of a lift and stairs to bring visitors from the cliff to the beach.

“All previous structures will be block-built, plastered and painted, with Bermuda image embellishments incorporated where appropriate, such as the beach storage building with a white roof and shutter,” the report said.

“None of these structures are visible from outside the property except on the water.”

The report says the policies allow discretion for coastal development under certain criteria.

“This criterion involves the stipulation that the proposal cannot be located in a development area beyond the boundaries of the Coastal Reserve,” the report says.

“The structures facilitating access to the beach and the beach storage structure cannot be located beyond the coastal reserve and continue to justify the discretion of the council in that the purpose is to accommodate a use incidental to the development on the land, it will allow access to water and provide the necessary facilities to promote the enjoyment of the land.

“Given the extent and characteristics of the coastline and the new tourist use proposed for the site, the scale of the proposed development is appropriate.”

The Bermudiana Beach resort – originally the Grand Atlantic housing estate – was due to open in 2020, but funding issues have meant the opening date has been pushed back until next March.

Plans to renovate the site had previously been approved, but David Burt, the Prime Minister, who is also Minister for Tourism, announced this year that new plans would be drawn up with the support of the Hilton hotel franchise.

Contractor BCM began work on the complex after a $10 million government guarantee-backed loan was approved in June 2021.

But the Bermudiana Development Company dropped development partners MacLellan & Associates, CBE Holdings and Bermuda Realty in September last year.

Mr Burt said the resort developer had hired engineering firm Brunel Limited, a Bermudian company involved in several major hotel projects, and Miami-based RAD Architecture, a hospitality specialist.

The Bermuda Audubon Society expressed concerns about the proposal and filed an objection to the plans.

Their letter of objection stated that although the site is zoned for tourism purposes, there is an overlying conservation area of ​​woodland reserve along the north and south sides.

Two buildings and part of a third have already been constructed, but the proposal foresees further development in the areas.

The letter also said the location raised concerns about the future of the nearby Southlands Estate, a national park.

Plans that proposed to turn the southeast section of Southlands into car park and event space for the hotel had previously been rejected, but the new request includes a connecting path and gate to an event lawn on Southlands.

“It is quite concerning and perhaps inappropriate for Bermuda Housing Corporation to assume that such an event lawn will be approved in the future,” the company said.

“There is no justification for the placement of these facilities in this location at this time.”

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Restaurant and Hospitality Professionals Delighted Milwaukee to Welcome RNC https://hotelmichelangelo.net/restaurant-and-hospitality-professionals-delighted-milwaukee-to-welcome-rnc/ Fri, 05 Aug 2022 20:13:00 +0000 https://hotelmichelangelo.net/restaurant-and-hospitality-professionals-delighted-milwaukee-to-welcome-rnc/

MILWAUKEE (CBS 58) – It’s no secret that those working in the restaurant and hospitality industries have had a tough few years due to the COVID-19 pandemic, chain issues in supply and staffing shortages. The announcement of hosting the Republican National Convention in Milwaukee in 2024 could be seen as a breath of fresh air.

“We couldn’t be more excited,” exclaimed Brandon Drusch, General Manager of Saint Kate – The Arts Hotel. “It’s a big opportunity for us and Milwaukee to really rewrite history. For us, that’s a big deal.”

The city and the businesses there missed out on the millions of dollars the Democratic National Convention was expected to generate in 2020 after the convention was made mostly virtual amid the pandemic. Now, the RNC is giving the community a second chance to showcase all it has to offer.

“It’s a rebuild, and we’re ready,” Drusch said. “We do it every day, and for us to have the opportunity to put that on an international level, that’s what excites us.”

Paul Bartolotta is the co-founder and chef of Bartolotta restaurants. He is also an active board member of Visit Milwaukee, MMAC and the Wisconsin Restaurant Association. He was in Chicago for the announcement.

“They made the right choice. They chose the right city,” Bartolotta said, speaking to CBS 58 by phone. “We have an amazing city. We have so much to show for it. Milwaukee is capable and has hosted a lot of great things over the years and it just shows what a higher level we can do.”

Bartolotta also highlighted the economic impact the convention will have not only for the city, but also for the employees who keep the businesses running.

“We have a lot of fabulous, hardworking people who are going to benefit from this,” Bartolotta said. “Waiters, bartenders in our industry who are going to be tipped, hotels are going to have higher occupancy. We’re going to have the opportunity to not only generate revenue, but also improve the quality of life by investing in the future of our city.”

The RNC is expected to take place in July or August 2024.

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The future of hospitality https://hotelmichelangelo.net/the-future-of-hospitality/ Fri, 05 Aug 2022 11:33:56 +0000 https://hotelmichelangelo.net/the-future-of-hospitality/

Innovation technology has been one of the most popular topics discussed in business circles in recent years. While most companies want to innovate in one way or another, the results of these innovations and their overall impact on the bottom line could be overshadowed if thorough research is not conducted.

This has had the effect that some hotels are unsure of what actually constitutes impactful innovation, with innovation in some cases even seen as an enemy of success as its implementation means that guests also start comparing all establishments, including competitors, based on the new experiences they offer.

Large hotel chains tend to have an advantage in achieving their innovation goals because they traditionally have greater access to knowledge-based tools. However, SMEs tend to be more adaptable when it comes to dealing with the challenges associated with change. Nevertheless, it is not always easy for both sides of the spectrum. Regardless of their size, companies do not have the resources (time, knowledge and budget) to work on several types of innovation at the same time. Choosing a strategy on how to innovate is therefore essential.

  1. Innovation in the hospitality industry

The first mistake is to think that innovation only concerns new products. Any improvement in the user experience is also an innovation and may simply involve a basic update of existing tools and features. The goal will always be to positively influence the customer.

Hospitality companies finally understand the importance of creativity and the relationship between entrepreneurship, creative thinking and its positive impact on innovation.

There is no exclusive territory for innovation, nor the prerogative of big budgets. There are as many forms and models of innovation as there are types of companies.

  1. The innovation sector

Innovation in the hospitality industry must be centered around the guest, who is the cornerstone of the hotel business model, and the immediate future will demand that it be brought into the conversation.

  1. How to innovate in hotels of all sizes

Implementing open innovation practices has multiple benefits, including shortening the time it takes to research and bring a solution to market. Moreover, including customers in the development of new solutions will make the filtering of ideas more effective, since they are the main beneficiaries and those who have the strongest connection to the experience.

In addition to customers, hotels have the opportunity to involve their employees in Open Innovation processes. In this way, both audiences contribute to creating new solutions and improvements and all become active creators in innovation.

  1. How to Leverage Open Innovation in Hotels as a Strategic Partner

Open innovation is therefore a very good option to innovate in any hotel and promote the advancement of the hotel industry.

Harnessing the full power of open innovation also requires attracting innovative employees. Management must decide what type of innovation it wants to introduce, when and at what pace, as well as the types of synergies that will be created within the organization. All of these factors mean that the company must identify the employees most suited to working as a team for these purposes. Innovative companies attract innovative employees and vice versa.

Innovation requires transformative people who collaborate, share and have the ability to integrate knowledge and experience.

  1. Become an innovator

Innovative employees are not only those with great ideas, but those who dare to experiment, apply their experience and transfer it to others. The future of hospitality needs professionals who are reliable, independent, able to handle uncertainty, but also open to pivoting and readjusting if the project calls for it. Innovation is knocking at our door.



LinkedIn


Disclaimer

The opinions expressed above are those of the author.



END OF ARTICLE



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CVENT HOLDING CORP. Management report and analysis of the financial situation and operating results. (Form 10-Q) https://hotelmichelangelo.net/cvent-holding-corp-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-q/ Thu, 04 Aug 2022 20:26:17 +0000 https://hotelmichelangelo.net/cvent-holding-corp-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-q/

Insight


The Company was founded in 1999 in the Washington, D.C. metro area as a provider
of event registration software to meeting and event organizers. Since that time,
we have continually innovated to develop a comprehensive platform of event
marketing and management solutions and hospitality solutions. We believe that
since inception, we have demonstrated an entrepreneurial spirit, culture of
teamwork and sense of resilience, particularly in moments of crisis. This is
best evidenced by the Company's continued progress and innovation in the midst
of challenges like the recessions of 2001 and 2008 and the global COVID-19
pandemic.


The Company is a leading cloud-based platform of enterprise event marketing and
management and hospitality solutions. We power the marketing and management of
meetings and events through our Event Cloud and Hospitality Cloud solutions. Our
Event Cloud consists of tools to enable event organizers to manage the entire
event lifecycle and deliver engaging experiences across every type of event and
all event delivery models: in-person, virtual and hybrid. Event Cloud serves as
the system of record for event and engagement data collected across an
organization's total event program, which comprises every internal and external
event an organization hosts or attends ("Total Event Program"). Our Hospitality
Cloud offers a marketplace that connects event organizers looking for the
appropriate event space for their in-person and hybrid events with hoteliers and
venue operators through a vertical search engine built on our proprietary
database of detailed event space information. In addition, our Hospitality Cloud
provides marketing and software solutions that hotels and venues leverage to
digitally showcase their event space to attract valuable leads and grow their
businesses. This combination of the Cvent Event Cloud and Hospitality Cloud
results in a cohesive platform that we believe generates powerful network
effects and attracts more event organizers and hotels and venues.



Impact of COVID-19



The global COVID-19 pandemic has created and may continue to create significant
uncertainty in macroeconomic conditions, including inflation, changes in
interest rates, supply chain disruptions and labor shortages, which, in turn,
could decrease overall economic activity or cause a recession in the U.S. or in
the global economy. COVID-19 and these macroeconomic conditions significantly
impacted our ability to sign new clients, and to upsell to and renew contracts
with our existing clients, starting in March 2020. Our customer count declined
7.5% as of June 30, 2022 as compared to June 30, 2021. The extent to which the
ongoing presence of COVID-19 and these macroeconomic conditions will affect our
business is uncertain and will depend on political, social, economic and
regulatory forces that are outside of the Company's control, including but not
limited to the incidence and severity of additional virus variants and actions
that may be taken by regulators and businesses (including our customers) in
response to the pandemic and these macroeconomic conditions. See also Part I.
Item 1A. "Risk Factors - The effects of the global COVID-19 pandemic have
materially affected how we and our customers are operating our businesses, and
the duration and extent to which this will impact our future results of
operations and overall financial performance remains uncertain" in our Annual
Report on Form 10-K for the year ended December 31, 2021 for more information.



Key Business Metric


In addition to our financial information determined in accordance with generally
accepted accounting principles in the U.S. ("GAAP"), we review the following key
business metric to measure our performance, identify trends, formulate business
plans and make strategic decisions.


Net retention rate in dollars


To evaluate the efficacy of our land and expand model, we examine the rate at
which our customers increase their spend with us for our solutions. Our net
dollar retention rate measures our ability to retain and increase spend across
our existing customer base through expanded use of our platform, offset by
customers who choose to stop using our solutions or spend less with us.


We calculate our net dollar retention rate as a quotient of the following:

Denominator: Revenue from customers whose revenue existed in the twelve months
ending on the day twelve months prior to the date as of which the retention rate
is being reported.

Numerator: Last 12 months revenue from customers whose revenue is reflected in the denominator.



In the Event Cloud, we define a customer as a party who has entered into an
active subscription contract with us. The majority of our customers are parties
who are separate organizations. In certain instances, separate business units of
an organization that have each entered into separate subscription agreements
with us are considered separate customers. In the Hospitality Cloud, we define a
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customer as an entity with an active account with the Company, where the
customer pays for the account or the account has been paid for by the customer's
parent company. For example, a corporate brand's individual hotel properties
whose accounts are paid for by that property's corporate brand would be
considered separate customers.


The calculation excludes transactional revenue, revenue associated with our
client conference and revenue associated with acquisitions where by-client
revenue is not available. This revenue comprised 5.1% and 1.6% of revenue for
the three months ended June 30, 2022 and 2021, respectively, and 4.4% and 2.3%
of revenue for the six months ended June 30, 2022 and 2021, respectively.


We believe our ability to not only retain, but upsell and cross-sell additional
features and products to, our existing customers will continue to support our
net dollar retention rate. As of June 30, 2022 and 2021, our net dollar
retention rate was 114.1% and 85.0%, respectively. The year-over-year increase
in our net dollar retention rate is primarily due to the lessening impact of the
global COVID-19 pandemic in 2021 and 2022 on both the Event and Hospitality
Clouds, and the adoption of our new virtual solution, Attendee Hub. With
in-person meetings and events now beginning to quickly return, our net dollar
retention rate currently exceeds pre-COVID levels. Although we believe our net
dollar retention rate will approximate pre-COVID levels in the near-term as the
rate of growth of in-person meetings and events normalizes, we believe our net
dollar retention rate may exceed historical levels longer-term as a result of
the market opportunity created by virtual and hybrid events and the accelerated
digitization of the meetings and events industry.


Our net dollar retention rate may fluctuate as a result of a number of factors,
including the growing level of our revenue base, the level of penetration within
our customer base, expansion of products and features, our ability to retain our
customers and our ability to upsell and cross-sell to our customers. Our
calculation of net dollar retention rate may differ from similarly titled
metrics presented by other companies.



Components of operating results

Revenue


We generate revenue from two primary sources: Event Cloud subscription-based
solutions and Hospitality Cloud marketing-based and subscription-based
solutions. Subscription-based solution revenue consists primarily of fees to
provide our customers with access to our cloud-based software platform.
Marketing-based solution revenue consists primarily of fees for digital
advertising on the Cvent Supplier Network ("CSN") or one of our other online
advertising platforms.


Event Cloud

We generate the majority of our Event Cloud revenue from subscriptions for our
event marketing and management software solution. Subscription revenue is driven
primarily by the number of registrations purchased and the number and complexity
of mobile applications, onsite events and virtual events purchased in addition
to additional modules that enhance the functionality of the software solution.
In some cases, the subscription price is based on the number of subscriptions
being purchased by the customer.


The terms of our Event Cloud contracts are typically non-cancellable, have
annual or multi-year terms, and are billed in advance on an annual or quarterly
basis, as applicable. In the case of multi-year agreements, the agreement
sometimes includes annual price increases over the contract term. Our agreements
are sum-certain and not pay-as-you-go. Generally, if a customer exceeds their
purchased number of registrations, the customer will incur an overage fee. We
recognize revenue associated with Event Cloud subscription agreements ratably
over the term of the contract. Certain revenue associated with Onsite Solutions
and Attendee Hub products is recognized at a point in time as the services are
performed and the performance obligations are satisfied. Amounts that have been
contractually invoiced are initially recorded as deferred revenue and are
recognized as revenue ratably over the subscription period. We refer to
contractual amounts that have not been invoiced as unbilled contract value, and
together with deferred revenue, remaining performance obligations. Unbilled
contract value is not reflected in our consolidated financial statements.

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Home cloud


We generate our Hospitality Cloud revenue from marketing and subscription-based
software solutions. Marketing solutions revenue is primarily driven by the
number of advertisements purchased on CSN. The advertisement price is primarily
determined by the term, targeted geography, market tier, number and prominence
of the advertising placement. Subscription revenue is driven primarily by the
number of licenses purchased for our lead scoring solution to prioritize group
RFPs, three-dimensional hotel tours, event diagramming to collaborate with event
organizers on designing optimal event layouts and viewing three-dimensional
renderings, room block management to enable event attendees to reserve hotel
rooms, business transient solutions and business intelligence solutions to
benchmark against internal and targeted competitive metrics. In some cases, the
subscription price is based on the number of subscriptions being purchased by
the customer.


The terms of our subscription and marketing contracts are typically
non-cancellable, annual or multi-year terms, and are typically billed in advance
on an annual or quarterly basis, as applicable. In the case of multi-year
agreements, the agreement sometimes includes annual price increases over the
contract term. Our agreements are typically sum-certain and not based on usage.
We recognize revenue associated with these agreements ratably over the term of
the subscription or advertising period. Amounts that have been contractually
invoiced are initially recorded as deferred revenue and are recognized as
revenue ratably over the subscription or advertising period. We refer to
contractual amounts that have not been invoiced as unbilled contract value, and
together with deferred revenue, remaining performance obligations. Unbilled
contract value is not reflected in our consolidated financial statements. See
"Key Factors Affecting Our Performance -Seasonality" included in Part II, Item
7. Management's Discussion and Analysis of Financial Condition and Results of
Operations included in our Annual Report on Form 10-K for the year ended
December 31, 2021 for the effects of seasonality on our Hospitality Cloud
Revenue.


For multi-year agreements for either Event Cloud or Hospitality Cloud solutions,
we typically invoice the amount for the first year of the contract at signing,
followed by subsequent annual invoices at the anniversary of each year. Since we
bill most of our customers in advance, there can be amounts that we have not yet
been contractually able to invoice. Until such time as these amounts are
invoiced or recognized in revenue, they are considered by us to be unbilled
contract value, and together with deferred revenue, remaining performance
obligations. As of June 30, 2022 and December 31, 2021 our total current
deferred revenue was $268.6 million and $239.8 million, respectively, which
amounts do not include unbilled contract value for contracts not yet billed of
$516.4 million and $573.4 million, respectively. We expect that the amount of
unbilled contract value relative to the total value of our contracts will change
from year to year for several reasons, including the amount of cash collected
early in the contract term, the specific timing and duration of customer
agreements, varying invoicing cycles of agreements, the specific timing of
customer renewal, changes in customer financial circumstances and foreign
currency fluctuations. We expect to recognize approximately 69.9% of our
remaining performance obligations as revenue over the subsequent 24 months, and
the remainder thereafter.


Cost of revenue

Cost of revenue primarily consists of employee-related expenses, such as
salaries, benefits, bonuses and stock-based compensation, related to providing
support and hosting our solutions, costs of cloud-based data center capacity,
software license fees, costs to support our onsite solutions and virtual
products, interchange fees related to merchant services and amortization expense
associated with capitalized software. In addition, we allocate a portion of
overhead, such as rent and depreciation and amortization to cost of revenue
based on headcount.


Although the Company breaks out revenue by cloud, we do not track or manage the
business by cost of revenue by cloud. Rather, we manage cost of revenue by type
of direct cost, and a significant portion of these direct costs are shared costs
to support both Event Cloud and Hospitality Cloud solutions. This is consistent
with the Company's approach to management of the business as one comprehensive
solution for the entire event management lifecycle.


We are invested in our customers' success and as such, we will continue to
invest in providing support, expanding our capacity to support our growth and
developing new features to support virtual, hybrid and in-person events and
enhance our existing products, which in the near-term is expected to result in
higher cost of revenue in absolute dollars.


Gross profit and gross margin


Gross profit is total revenue less total cost of revenue. Gross margin is gross
profit expressed as a percentage of total revenue. We expect that our gross
margin may fluctuate from period to period as a result of seasonality related to
our onsite solutions, virtual and merchant services products in the near-term,
and additional costs associated with potential future acquisitions.


Operating Expenses

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Our operating expenses include sales and marketing expenses, research and development expenses, general and administrative expenses, and amortization of intangible assets, excluding amounts included in cost of sales.

Sales and Marketing


Sales and marketing expenses primarily consist of personnel and related expenses
for our sales and marketing staff, including salaries, benefits, bonuses,
commissions and stock-based compensation. We capitalize commissions when they
are earned by staff, which is when the customer contract is signed. We amortize
capitalized commissions over the average historic customer contract life. In
addition to staff costs, our cost of marketing includes product marketing and
other brand-building and lead generation tactics such as webinars, trade shows,
product seminars, content marketing, digital marketing, third-party content
distribution and our annual client conference, Cvent CONNECT. In addition, we
also allocate a portion of overhead, such as rent and depreciation to sales and
marketing based on headcount.


We intend to continue to invest in sales and marketing and expect spending in
these areas to increase in absolute dollars in the near-term as we continue to
expand our business both domestically and internationally and take advantage of
the growing need for virtual and hybrid events. We expect sales and marketing
expenses to continue to be among the most significant components of our
operating expenses.


Research and development

Research and development expenses consist primarily of personnel and related
expenses for our research and development staff, including salaries, benefits,
bonuses and stock-based compensation and the cost of third-party contractors.
Research and development expenses, other than software development costs that
qualify for capitalization, are expensed as incurred. In addition, we allocate a
portion of overhead, such as rent and depreciation to research and development
based on headcount.


With the exception of software developed by companies we have acquired, we
maintain a unified software code base for our entire platform, which we believe
improves the efficiency of our research and development activities. We expect
research and development expenses to increase in absolute dollars in the
near-term as we continue to expand our product offerings, including our virtual
and hybrid event functionality, and integrate and support potential future
acquired businesses and technologies.


general and administrative


General and administrative expenses consist primarily of personnel and related
expenses for administrative, internal information technology operations,
finance, legal and human resource staff, including salaries, benefits, bonuses
and stock-based compensation, as well as professional fees, insurance premiums
and other corporate expenses. In addition, we allocate a portion of overhead,
such as rent and depreciation to general and administrative based on headcount.


We expect our general and administrative expenses to increase in absolute
dollars in the near-term as we continue to expand our operations and hire
additional personnel to support our growth. Additionally, we expect to incur
incremental general and administrative expenses to comply with the requirements
of being a public company.


Amortization of intangible assets, excluding amounts included in cost of sales


Intangible asset amortization, exclusive of amounts included in cost of revenue,
consists entirely of amortization expenses related to acquired customer
relationship and trademark intangible assets. This line item excludes intangible
asset amortization related to cost of revenue, which is defined as acquired
developed technology and capitalized software intangible asset amortization.

We expect to continue to pursue strategic acquisition opportunities and, if successful, expect our intangible asset amortization expense to increase in absolute dollars.

Other

Our other income/expense items include interest expense, amortization of deferred financing fees and debt discount, gain/loss on divestitures, net and other income/expense, net.



Interest expense

Interest expense relates primarily to interest payments on our outstanding
borrowings under our credit facilities as further described in Note 11. "Debt"
to the unaudited condensed consolidated financial statements included in Part I,
Item 1 of this Quarterly
                                       22
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Report. From June 30, 2022the Company had outstanding loans $195.0 million during his five-year term, $500.0 million senior secured revolving credit facility (the “Revolving Credit Facility”).

Amortization of deferred financing costs and debt discount

The amortization of deferred financing costs and the debt discount consists of the amortization of the initial fees paid at the beginning of our credit facilities.

Loss on extinguishment of debt


Loss on extinguishment of debt consists of the write-off of unamortized deferred
financing costs associated with the repayment and termination of the Term Loan
Facility (as defined in Note 11. "Debt" to the unaudited condensed consolidated
financial statements included in Part I, Item 1 of this Quarterly Report).

Other income, net

Other income/(expense), net, primarily includes interest income, foreign exchange gains or losses and import tax credits.

Provision for income taxes

The provision for income taxes consists mainly of income taxes WE
federal and state income taxes and income taxes in foreign jurisdictions in which we do business.

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Operating results

Comparison of the three months ended June 30, 2022 and 2021


The following table sets forth our consolidated statement of operations for the
periods indicated:

                                                           Three Months Ended June 30,
                                                            2022                 2021
                                                                 (in thousands)
Consolidated Statement of Operations Data:
Revenue:
Event cloud                                            $      112,634       $       85,590
Hospitality cloud                                              48,328               37,224
Total revenue                                                 160,962              122,814
Cost of revenue                                                65,560               45,999
Gross profit                                                   95,402               76,815
Operating expenses:
Sales and marketing                                            48,826               33,070
Research and development                                       33,128               24,657
General and administrative                                     25,997               21,600
Intangible asset amortization, exclusive of amounts
included in cost of revenue                                    12,160               12,929
Total operating expenses                                      120,111               92,256
Loss from operations                                          (24,709 )            (15,441 )
Interest expense                                               (2,605 )             (7,638 )
Amortization of deferred financial costs and debt
discount                                                         (257 )               (941 )
Loss on extinguishment of debt                                 (3,219 )                  -
Other income, net                                                 624                3,998
Loss before income taxes                                      (30,166 )            (20,022 )
Provision for income taxes                                      1,334                1,825
Net loss                                               $      (31,500 )     $      (21,847 )



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The following table sets forth data from our Consolidated Statements of Income expressed as a percentage of total revenue for the periods indicated:


                                                           Three Months 

Ended June 30th,

                                                           2022             

2021

Consolidated Statement of Operations Data:
Revenue:
Event Cloud                                                     70.0 %                 69.7 %
Hospitality Cloud                                               30.0 %                 30.3 %
Total revenue                                                  100.0 %                100.0 %
Cost of revenue                                                 40.7 %                 37.5 %
Gross profit                                                    59.3 %                 62.5 %
Operating expenses:
Sales and marketing                                             30.3 %                 26.9 %
Research and development                                        20.6 %                 20.1 %
General and administrative                                      16.2 %                 17.6 %
Intangible asset amortization, exclusive of amounts
included in cost of revenue                                      7.6 %                 10.5 %
Total operating expenses                                        74.6 %                 75.1 %
Loss from operations                                           (15.4 %)               (12.6 %)
Interest expense                                                (1.6 %)                (6.2 %)
Amortization of deferred financial costs and debt
discount                                                        (0.2 %)                (0.8 %)
Loss on extinguishment of debt                                  (2.0 %)                 0.0 %
Other income, net                                                0.4 %                  3.3 %
Loss before income taxes                                       (18.7 %)               (16.3 %)
Provision for income taxes                                       0.8 %                  1.5 %
Net loss                                                       (19.6 %)               (17.8 %)




Revenue

                      Three Months Ended
                           June 30,
                      2022          2021        $ Change       % Change
                               (in thousands)
Revenue:
Event Cloud         $ 112,634     $  85,590     $  27,044           31.6 %
Hospitality Cloud      48,328        37,224        11,104           29.8 %
Total revenue       $ 160,962     $ 122,814     $  38,148           31.1 %




Total revenue for the three months ended June 30, 2022 was $161.0 million, an
increase of $38.1 million, or 31.1% compared to the three months ended June 30,
2021. Event Cloud revenue accounted for $112.6 million, or 70.0% of total
revenue, and Hospitality Cloud revenue accounted for $48.3 million, or 30.0% of
total revenue, for the three months ended June 30, 2022.

Event Cloud revenue increased $27.0 million, or 31.6%, during the three months
ended June 30, 2022 compared to the prior year. The increase was due to the
strong performance of products that support in-person meetings as in-person
meetings continue to return. While revenue associated with our virtual solution
is still one of our top Event Cloud revenue components, the return of in-person
meetings has caused a revenue mix shift towards products that support in-person
and hybrid meetings. Additionally, $1.0 million of the revenue increase was
related to our client conference, Cvent CONNECT, which was held in the second
quarter of 2022 compared to the third quarter of 2021.

Hospitality Cloud revenue increased $11.1 million, or 29.8%, during the three
months ended June 30, 2022 compared to the prior year primarily due to increased
demand of our advertising and software solutions driven by the continued return
of in-person meetings and events. Additionally, $2.7 million of the revenue
increase was related to our client conference, Cvent CONNECT, which was held in
the second quarter of 2022 compared to the third quarter of 2021.
                                       25
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We generate the majority of our revenue from North America. Revenue from outside
North America accounted for 11.4% and 13.3% of total revenue for the three
months ended June 30, 2022 and 2021, respectively. In the near-term, in absolute
dollars, we expect that total revenue from outside North America will increase
at the same rate as the rest of our business, and as such, we expect total
revenue from outside of North America as a proportion of total revenue will not
substantially change.

Cost of Revenue

                    Three Months Ended
                         June 30,
                     2022          2021       $ Change       % Change
                             (in thousands)
Cost of revenue   $   65,560     $ 45,999     $  19,561           42.5 %




Cost of revenue for the three months ended June 30, 2022 was $65.6 million, an
increase of $19.6 million, or 42.5%, compared to the three months ended June 30,
2021. This increase was primarily driven by a $5.0 million increase in employee
expense due to a 34.5% increase in average headcount, a $2.7 million increase in
hosting expense, a $1.5 million increase in stock-based compensation and a $1.4
million increase in amortization of capitalized software development costs.
Additionally, third-party costs related to supporting virtual, in-person, and
hybrid events increased $4.9 million and credit card interchange fees related to
our merchant services business increased $1.9 million primarily driven by the
continued return of in-person meetings and events. Further, costs associated
with our client conference, Cvent CONNECT, which was held in the second quarter
of 2022 compared to the third quarter of 2021, increased by $2.0 million.

Operating Expenses

                                            Three Months Ended
                                                 June 30,
                                            2022          2021         $ Change        % Change
                                                      (in thousands)
Sales and marketing                      $   48,826     $  33,070     $    15,756            47.6 %
Research and development                     33,128        24,657           8,471            34.4 %
General and administrative                   25,997        21,600           4,397            20.4 %
Intangible asset amortization,
exclusive of amounts included in cost
of revenue                                   12,160        12,929            (769 )          (5.9 %)
Total operating expenses                 $  120,111     $  92,256     $    27,855            30.2 %




Sales and Marketing. Sales and marketing expenses for the three months ended
June 30, 2022 were $48.8 million, an increase of $15.8 million, or 47.6%,
compared to the three months ended June 30, 2021. This increase was primarily
driven by a $5.9 million increase in employee expense due to a 16.9% increase in
average headcount, a $3.6 million increase in stock-based compensation and a
$1.7 million increase in marketing program spend. Additionally, costs associated
with our client conference, Cvent CONNECT, which was held in the second quarter
of 2022 compared to the third quarter of 2021, increased by $4.4 million.

Research and Development. Research and development expenses for the three months
ended June 30, 2022 were $33.1 million, an increase of $8.5 million, or 34.4%,
compared to the three months ended June 30, 2021. This increase was primarily
driven by a $7.0 million increase in employee expense due to a 16.5% increase in
average headcount and a $1.9 million increase in stock-based compensation.

General and Administrative. General and administrative expenses for the three
months ended June 30, 2022 were $26.0 million, an increase of $4.4 million, or
20.4%, compared to the three months ended June 30, 2021. This increase was
primarily driven by a $2.0 million increase in employee expense due to a 23.9%
increase in average headcount, a $2.0 million increase in stock-based
compensation, a $1.1 million increase in contracted services and a $1.0 million
increase in corporate insurance related to public company directors' and
officers' insurance. A portion of these cost increases is also related to costs
incurred as a publicly traded company. The increases were partially offset by a
$1.3 million decrease in bad debt expense.

Intangible Asset Amortization, Exclusive of Amounts Included in Cost of Revenue.
Intangible asset amortization, exclusive of amounts included in cost of revenue
for the three months ended June 30, 2022 was $12.2 million, a decrease of $0.8
million, or 5.9%, compared to the three months ended June 30, 2021. This
decrease was driven primarily by the scheduled decline in the amortization of
intangible assets acquired in past years and no significant business
acquisitions occurring in 2022.
                                       26
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Interest Expense

                     Three Months Ended
                          June 30,
                      2022          2021        $ Change       % Change
                               (in thousands)
Interest expense   $   (2,605 )   $ (7,638 )   $    5,033          (65.9 %)




Interest expense for the three months ended June 30, 2022 was $2.6 million, a
decrease of $5.0 million, or 65.9%, compared to the three months ended June 30,
2021. This decrease was driven primarily by a significantly lower principal
amount on our outstanding long-term debt through May 2022. In May 2022, the
Company fully repaid its Term Loan Facility and entered into the Revolving
Credit Facility, borrowings under which bear a lower interest rate than was the
case under the Term Loan Facility.

Amortization of deferred financing costs and debt discount

                                             Three Months Ended
                                                  June 30,
                                            2022             2021         $ Change       % Change
                                                       (in thousands)
Amortization of deferred financing
costs and debt discount                  $     (257 )     $     (941 )   $      684           (72.7 %)




Amortization of deferred financing costs and debt discount for the three months
ended June 30, 2022 was $0.3 million, a decrease of $0.7 million, or 72.7%,
compared to the three months ended June 30, 2021 due to the acceleration of
amortization of deferred financing costs and debt discount associated with the
prepayment of the outstanding principal balance under the Term Loan Facility.


Loss on extinguishment of debt

                                    Three Months Ended
                                         June 30,
                                     2022            2021      $ Change       % Change
                                             (in thousands)

Loss on extinguishment of debt ($3,219) $- ($3,219)

100.0%




Loss on extinguishment of debt for the three months ended June 30, 2022 was $3.2
million, which is due to the acceleration of amortization of deferred financing
costs and debt discount associated with repayment of the outstanding principal
balance under the Term Loan Facility.

Other Income, Net

                      Three Months Ended
                           June 30,
                      2022           2021       $ Change       % Change
                               (in thousands)
Other income, net   $    624       $  3,998     $  (3,374 )        (84.4 %)




Other income, net for the three months ended June 30, 2022 was $0.6 million, a
decrease of $3.4 million, or 84.4%, as compared to the three months ended June
30, 2021. Other income for the three months ended June 30, 2022 and 2021
consisted primarily of foreign currency gains.

Provision for Income Taxes

                               Three Months Ended
                                    June 30,
                                2022          2021        $ Change       % Change
                                         (in thousands)
Provision for income taxes   $    1,334      $ 1,825     $     (491 )        (26.9 %)



                                       27
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Provision for income taxes for the three months ended June 30, 2022 was $1.3
million, a decrease of $0.5 million, or 26.9%, compared to the three months
ended June 30, 2021. The decrease primarily resulted from the recording of lower
pre-tax book income in high tax foreign jurisdictions.


                                       28
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Comparison of the six months ended June 30, 2022 and 2021


The following table sets forth our consolidated statement of operations for the
periods indicated:

                                                           Six Months Ended June 30,
                                                           2022                 2021
                                                                 (in thousands)
Consolidated Statement of Operations Data:
Revenue:
Event cloud                                            $     207,621       $      166,723
Hospitality cloud                                             90,697               73,378
Total revenue                                                298,318              240,101
Cost of revenue                                              121,760               89,844
Gross profit                                                 176,558              150,257
Operating expenses:
Sales and marketing                                           88,917               61,907
Research and development                                      64,534               46,331
General and administrative                                    50,948               38,354
Intangible asset amortization, exclusive of amounts
included in cost of revenue                                   24,314               25,964
Total operating expenses                                     228,713              172,556
Loss from operations                                         (52,155 )            (22,299 )
Interest expense                                              (5,197 )            (15,171 )
Amortization of deferred financial costs and debt
discount                                                        (577 )             (1,884 )
Loss on extinguishment of debt                                (3,219 )                  -
Other income, net                                                885                4,271
Loss before income taxes                                     (60,263 )            (35,083 )
Provision for income taxes                                     2,625                3,325
Net loss                                               $     (62,888 )     $      (38,408 )



                                       29
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The following table sets forth data from our Consolidated Statements of Income expressed as a percentage of total revenue for the periods indicated:


                                                            Six Months 

Ended June 30th,

                                                           2022             

2021

Consolidated Statement of Operations Data:
Revenue:
Event Cloud                                                     69.6 %                 69.4 %
Hospitality Cloud                                               30.4 %                 30.6 %
Total revenue                                                  100.0 %                100.0 %
Cost of revenue                                                 40.8 %                 37.4 %
Gross profit                                                    59.2 %                 62.6 %
Operating expenses:
Sales and marketing                                             29.8 %                 25.8 %
Research and development                                        21.6 %                 19.3 %
General and administrative                                      17.1 %                 16.0 %
Intangible asset amortization, exclusive of amounts
included in cost of revenue                                      8.2 %                 10.8 %
Total operating expenses                                        76.7 %                 71.9 %
Loss from operations                                           (17.5 %)                (9.3 %)
Interest expense                                                (1.7 %)                (6.3 %)
Amortization of deferred financial costs and debt
discount                                                        (0.2 %)                (0.8 %)
Loss on extinguishment of debt                                  (1.1 %)                 0.0 %
Other income, net                                                0.3 %                  1.8 %
Loss before income taxes                                       (20.2 %)               (14.6 %)
Provision for income taxes                                       0.9 %                  1.4 %
Net loss                                                       (21.1 %)               (16.0 %)


Revenue

                       Six Months Ended
                           June 30,
                      2022          2021        $ Change       % Change
                               (in thousands)
Revenue:
Event Cloud         $ 207,621     $ 166,723     $  40,898           24.5 %
Hospitality Cloud      90,697        73,378        17,319           23.6 %
Total revenue       $ 298,318     $ 240,101     $  58,217           24.2 %




Total revenue for the six months ended June 30, 2022 was $298.3 million, an
increase of $58.2 million, or 24.2%, compared to the six months ended June 30,
2021. Event Cloud revenue accounted for $207.6 million, or 69.6% of total
revenue, and Hospitality Cloud revenue accounted for $90.7 million, or 30.4% of
total revenue, for the six months ended June 30, 2022.

Event Cloud revenue increased $40.9 million, or 24.5%, during the six months
ended June 30, 2022 compared to the prior year. The increase was due to the
strong performance of products that support in-person meetings as in-person
meetings continue to return. While revenue associated with our virtual solution
is still one of our top Event Cloud revenue components, the return of in-person
meetings has caused a revenue mix shift towards products that support in-person
and hybrid meetings.

Hospitality Cloud revenue increased $17.3 million, or 23.6%, during the six
months ended June 30, 2022 compared to the prior year primarily due to increased
demand of our advertising and software solutions driven by the continued return
of in-person meetings and events. Additionally, $2.7 million of the revenue
increase was related to our client conference, Cvent CONNECT, which was held in
the second quarter of 2022 compared to the third quarter of 2021.

We generate the majority of our revenue from North America. Revenue from outside
North America accounted for 11.7% and 13.5% of total revenue for the six months
ended June 30, 2022 and 2021, respectively. In the near-term, in absolute
dollars, we expect
                                       30
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that total revenue from outside North America will increase at the same rate as
the rest of our business, and as such, we expect total revenue from outside of
North America as proportion of total revenue will not substantially change.

Revenue cost


                     Six Months Ended
                         June 30,
                    2022          2021       $ Change       % Change
                             (in thousands)
Cost of revenue   $ 121,760     $ 89,844     $  31,916           35.5 %




Cost of revenue for the six months ended June 30, 2022 was $121.8 million, an
increase of $31.9 million, or 35.5%, compared to the six months ended June 30,
2021. This increase was primarily driven by an $8.9 million increase in employee
expense due to a 33.9% increase in average headcount, a $5.5 million increase in
hosting expense, a $2.0 million increase in stock-based compensation and a $1.8
million increase in amortization of capitalized software development costs.
Additionally, third-party costs related to supporting virtual, in-person, and
hybrid events increased $6.9 million and credit card interchange fees related to
our merchant services business increased $3.6 million, both of which were
primarily driven by the continued return of in-person meetings and events.
Further, costs associated with our client conference, Cvent CONNECT, which was
held in the second quarter of 2022 compared to the third quarter of 2021,
increased by $2.0 million.

Operating Expenses

                                            Six Months Ended
                                                June 30,
                                           2022          2021         $ Change        % Change
                                                     (in thousands)
Sales and marketing                      $  88,917     $  61,907     $    27,010            43.6 %
Research and development                    64,534        46,331          18,203            39.3 %
General and administrative                  50,948        38,354          12,594            32.8 %
Intangible asset amortization,
exclusive of amounts included in cost
of revenue                                  24,314        25,964          (1,650 )          (6.4 %)
Total operating expenses                 $ 228,713     $ 172,556     $    56,157            32.5 %




Sales and Marketing. Sales and marketing expenses for the six months ended June
30, 2022 were $88.9 million, an increase of $27.0 million, or 43.6%, compared to
the six months ended June 30, 2021. This increase was primarily driven by an
$11.5 million increase in employee expense due to a 16.0% increase in average
headcount, a $6.4 million increase in stock-based compensation, a $4.1 million
increase in marketing program spend and a $0.9 million increase in travel
related expense. Additionally, costs associated with our client conference,
Cvent CONNECT, which was held in the second quarter of 2022 compared to the
third quarter of 2021, increased by $4.5 million.

Research and Development. Research and development expenses for the six months
ended June 30, 2022 were $64.5 million, an increase of $18.2 million, or 39.3%,
compared to the six months ended June 30, 2021. This increase was primarily
driven by a $12.2 million increase in employee expense due to a 15.0% increase
in average headcount, a $4.4 million increase in stock-based compensation and a
$2.4 million decrease in wage subsidies received pursuant to the Canada
Emergency Wage Subsidy program in 2022 compared to 2021.

General and Administrative. General and administrative expenses for the six
months ended June 30, 2022 were $50.9 million, an increase of $12.6 million, or
32.8%, compared to the six months ended June 30, 2021. This increase was
primarily driven by a $5.5 million increase in stock-based compensation, a $4.1
million increase in employee expense due to a 24.4% increase in average
headcount, a $2.0 million increase in corporate insurance related to public
company directors' and officers' insurance, a $1.8 million increase in
contracted services and a $1.0 million increase in licenses & fees. A portion of
these cost increases is also related to costs incurred as a publicly traded
company. These increases were partially offset by a $1.1 million decrease in bad
debt expense and a $0.9 million decrease in legal costs.

Intangible Asset Amortization, Exclusive of Amounts Included in Cost of Revenue.
Intangible asset amortization, exclusive of amounts included in cost of revenue
for the six months ended June 30, 2022 was $24.3 million, a decrease of $1.7
million, or, 6.4% compared to the six months ended June 30, 2021. This decrease
was driven primarily by the scheduled decline in the amortization of intangible
assets acquired in past years and no significant business acquisitions occurring
in 2022.
                                       31
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Interest Expense

                      Six Months Ended
                          June 30,
                     2022         2021         $ Change       % Change
                              (in thousands)
Interest expense   $ (5,197 )   $ (15,171 )   $    9,974          (65.7 %)




Interest expense for the six months ended June 30, 2022 was $5.2 million, a
decrease of $10.0 million, or 65.7%, compared to the six months ended June 30,
2021. This decrease was driven primarily by a significantly lower principal
amount on our outstanding long-term debt through May 2022. In May 2022, the
Company fully repaid its Term Loan Facility and entered into the Revolving
Credit Facility, borrowings under which bear a lower interest rate than was the
case under the Term Loan Facility.

Amortization of deferred financing costs and debt discount

                                              Six Months Ended
                                                  June 30,
                                             2022          2021         $ Change       % Change
                                                      (in thousands)
Amortization of deferred financing
costs and debt discount                   $     (577 )   $  (1,884 )   $    1,307           (69.4 %)




Amortization of deferred financing costs and debt discount for the six months
ended June 30, 2022 was $0.6 million, a decrease of $1.3 million, or 69.4%,
compared to the six months ended June 30, 2021 due to the acceleration of
amortization of deferred financing costs and debt discount associated with the
prepayment of the outstanding principal balance under the Term Loan Facility.

Loss on extinguishment of debt

                                    Six Months Ended
                                        June 30,
                                     2022          2021      $ Change       % Change
                                            (in thousands)

Loss on extinguishment of debt ($3,219) $- ($3,219)

100.0%




Loss on extinguishment of debt for the six months ended June 30, 2022 was $3.2
million, which is due to the acceleration of debt issuance costs amortization
associated with repayment of the outstanding principal balance under the Term
Loan Facility.

Other Income, Net

                      Six Months Ended
                          June 30,
                     2022          2021       $ Change       % Change
                              (in thousands)
Other income, net   $   885       $ 4,271     $  (3,386 )        (79.3 %)




Other income, net for the six months ended June 30, 2022 was $0.9 million, a
decrease of $3.4 million, or 79.3%, as compared to the six months ended June 30,
2021. Other income for the six months ended June 30, 2022 and 2021 consisted
primarily of foreign currency gains.

Provision for Income Taxes

                               Six Months Ended
                                   June 30,
                               2022         2021        $ Change       % Change
                                        (in thousands)
Provision for income taxes   $   2,625     $ 3,325     $     (700 )        (21.1 %)



Provision for income taxes for the six months ended June 30, 2022 has been $2.6 milliona decrease of $0.7 millionor 21.1%, compared to the half-year ended
June 30, 2021. The decrease is primarily due to the recognition of lower pre-tax accounting profit in foreign high-tax jurisdictions.

                                       32
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Non-GAAP Financial Measures



In addition to our results determined in accordance with GAAP, we believe the
non-GAAP measures of Adjusted EBITDA and Adjusted EBITDA margin are useful in
evaluating our operating performance. We believe that non-GAAP financial
information, when taken collectively, may be helpful to investors because it
provides consistency and comparability with past financial performance and
assists in comparisons with other companies, some of which use similar non-GAAP
information to supplement their GAAP results. The non-GAAP financial information
is presented for supplemental informational purposes only, and should not be
considered a substitute for financial information presented in accordance with
GAAP, and may be different from similarly-titled non-GAAP measures used by other
companies. A reconciliation is provided below for each non-GAAP financial
measure to the most directly comparable financial measure stated in accordance
with GAAP. Investors are encouraged to review the related GAAP financial
measures and the reconciliation of these non-GAAP financial measures to their
most directly comparable GAAP financial measures.


Adjusted EBITDA and Adjusted EBITDA margin


Adjusted EBITDA and Adjusted EBITDA margin are supplemental measures of
operating performance monitored by management that are not defined under GAAP
and that do not represent, and should not be considered as, an alternative to
net loss or net loss margin, as determined by GAAP. We define Adjusted EBITDA as
net loss adjusted for interest expense, amortization of deferred financing costs
and debt discount, gain/(loss) on extinguishment of debt, gain/(loss) on
divestitures, net, other income/(expense), net, provision for/(benefit from)
income taxes, depreciation, amortization of software development costs,
intangible asset amortization, stock-based compensation expense, restructuring
expense, cost related to acquisitions, and other items. Adjusted EBITDA margin
represents Adjusted EBITDA divided by revenue. We use Adjusted EBITDA and
Adjusted EBITDA margin to understand and evaluate our core operating performance
and trends. We believe Adjusted EBITDA and Adjusted EBITDA margin are helpful to
investors, analysts, and other interested parties because they can assist in
providing a more consistent and comparable overview of our operations across our
historical financial periods.


Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools,
and you should not consider either in isolation or as a substitute for analysis
of our results as reported under GAAP. Because of these limitations, you should
consider Adjusted EBITDA and Adjusted EBITDA margin alongside other financial
performance measures, including net loss, net loss margin and our other GAAP
results. In evaluating Adjusted EBITDA and Adjusted EBITDA margin, you should be
aware that in the future we may incur expenses that are the same as or similar
to some of the adjustments in this presentation. Our presentation of Adjusted
EBITDA and Adjusted EBITDA margin should not be construed to imply that our
future results will be unaffected by the types of items excluded from the
calculation of Adjusted EBITDA and Adjusted EBITDA margin. Adjusted EBITDA and
Adjusted EBITDA margin are not a presentation made in accordance with GAAP and
the use of the terms may vary from others in our industry.

                                       33
--------------------------------------------------------------------------------


A reconciliation of Adjusted EBITDA to net loss and of Adjusted EBITDA margin to
net loss margin (defined as net loss divided by revenue), the most directly
comparable GAAP measures, respectively, for the three and six months ending June
30, 2022 and 2021, is as follows:

                                             Three Months Ended June 30,            Six Months Ended June 30,
                                              2022                 2021               2022               2021
                                                    (in thousands)                        (in thousands)
Adjusted EBITDA:
Net loss                                  $     (31,500 )      $     (21,847 )    $     (62,888 )      $ (38,408 )
Adjustments
Interest expense                                  2,605                7,638              5,197           15,171
Amortization of deferred financing
costs and debt discount                             257                  941                577            1,884
Loss on extinguishment of debt                    3,219                    -              3,219                -
Other income, net                                  (624 )             (3,998 )             (885 )         (4,271 )
Provision for income taxes                        1,334                1,825              2,625            3,325
Depreciation                                      1,886                2,901              3,924            5,985
Amortization of software development
costs                                            16,760               15,214             32,722           30,409
Intangible asset amortization                    12,160               12,929             24,314           25,964
Stock-based compensation expense                 16,952                7,815             26,720            8,423
Restructuring expense (1)                           259                  312                536              566
Cost related to acquisitions (2)                    629                  764                817            1,186
Other items (3)                                    (575 )                289               (757 )         (2,802 )
Adjusted EBITDA                           $      23,362        $      24,783      $      36,121        $  47,432
Adjusted EBITDA Margin:
Revenue                                   $     160,962        $     122,814      $     298,318        $ 240,101
Net loss margin (4)                               (19.6 %)             (17.8 %)           (21.1 %)         (16.0 %)
Adjusted EBITDA margin (4)                         14.5 %               20.2 %             12.1 %           19.8 %



(1)
Restructuring expense includes retention bonuses to employees of acquired
entities and costs to discontinue use of a back-office system and closing of
office space.
(2)
Represents costs incurred in association with acquisition activity, including
due diligence and post-acquisition earn out payments.
(3)
Includes other costs associated with litigation, private equity management fees,
and credit facility fees, net of the gain from government subsidies related to
the global COVID-19 pandemic.
(4)
Net loss margin represents net loss divided by revenue and Adjusted EBITDA
margin represents Adjusted EBITDA divided by revenue.

Cash and capital resources


Our principal sources of liquidity are cash and cash equivalents, on-going
collection of our accounts receivable and our Revolving Credit Facility (see
Note 11. "Debt" to the unaudited condensed consolidated financial statements
included in Part I, Item 1 of this Quarterly Report). Cash and cash equivalents
may include holdings in bank demand deposits, money market instruments and
certificates of deposit. We also periodically invest a portion of our excess
cash in short-term investments with stated maturity dates between three months
and one year from the purchase date.


We believe that existing cash and cash equivalents and short-term investments
held by us, cash and cash equivalents anticipated to be generated by us and
borrowing capacity under our revolving line of credit are sufficient to meet
working capital requirements, anticipated capital expenditures, and contractual
obligations for at least 12 months and beyond. We also believe that these
financial resources will continue to allow us to manage the ongoing impact of
COVID-19 on our business operations for the foreseeable future, including
mitigating potential reductions in revenue and delays in payments from our
customers and partners. Our future capital requirements will depend on several
factors, including but not limited to our obligation to repay any amounts
outstanding under our Revolving Credit Facility, our subscription growth rate,
subscription renewal activity, billing frequency, the timing and extent of
spending to support development efforts, the expansion of sales and marketing
activities, the introduction of new and enhanced solutions, the continuing
market adoption of our platform and our level of acquisition activity or other
strategic transactions. In the future, we may enter into arrangements to acquire
or invest in complementary businesses, services and technologies, including
intellectual property rights.

                                       34
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We may be required to seek additional equity or debt financing. In the event
that additional financing is required from outside sources, we may not be able
to raise it on terms acceptable to us or at all. If we are unable to raise
additional capital or generate cash flows necessary to expand our operations and
invest in new technologies, this could reduce our ability to compete
successfully and harm our results of operations.


Cash flow


The following table presents a summary of our consolidated cash flows from
operating, investing and financing activities for the six months ended June 30,
2022 and 2021:

                                                           Six Months Ended June 30,
                                                           2022                 2021
                                                                 (in thousands)
Net cash provided by operating activities              $     107,648       $       95,598
Net cash used in investing activities                        (47,099 )            (48,274 )
Net cash used in financing activities                        (72,694 )            (16,902 )
Effect of exchange rate changes on cash, cash
equivalents and restricted cash                               (5,809 )               (744 )
Change in cash, cash equivalents, and restricted
cash                                                         (17,954 )      

29,678

Cash, cash equivalents, and restricted cash at
beginning of year                                            126,629        

65,470

Cash, cash equivalents, and restricted cash at June
30, 2022                                               $     108,675       $       95,148
Cash paid for interest                                 $       5,177       $       15,181


Operating Activities

Net cash provided by operating activities is significantly influenced by the
amount of cash we invest in personnel and infrastructure to support the
anticipated growth of our business and the amount and timing of customer
payments. Cash provided by operations in the six months ended June 30, 2022 and
2021 is primarily attributable to net loss adjusted for non-cash items. Cash
provided by operations is also attributable to the change in accounts receivable
and deferred revenue, which is driven by the seasonality of our business as a
result of higher levels of invoicing in the first and fourth quarters and our
collections process. Our cash flows from operating activities are generally
reflective of our ability to invoice annual subscription fees upfront with
payments due 30 days after the customer's receipt of the invoice.


For the six months ended June 30, 2022, net cash provided by operating
activities was $107.6 million, which was primarily driven by net loss adjusted
for non-cash items, a $28.6 million increase in deferred revenue and a $32.6
million decrease in accounts receivable, partially offset by a $20.6 million
increase in capitalized commissions, net. For the six months ended June 30,
2021, net cash provided by operating activities was $95.6 million, which was
primarily driven by a $34.1 million decrease in accounts receivable, a $33.3
million increase in deferred revenue and net loss adjusted for non-cash items.

Investing activities


Our investing activities have consisted primarily of costs related to software
developed for internal use, purchases of computer equipment and leasehold
improvements, purchases and sales of short-term investments and business
acquisitions. During 2021 and 2022, the impact of the pandemic lessened, and as
these effects continue to lessen and as our business begins to grow again, we
expect our capital expenditures and our investment activity to continue to
increase.


For the six months ended June 30, 2022, net cash used in investing activities
was $47.1 million, reflecting $25.0 million in capitalized software development,
$14.9 million in net purchases of short-term investments, $4.5 million in
acquisitions, net of cash acquired and $2.7 million in purchases of property and
equipment. For the six months ended June 30, 2021, net cash used in investing
activities was $48.3 million, reflecting $19.4 million in capitalized software
development, $14.8 million for the acquisition of Shoflo, LLC, $12.1 million of
purchases of short-term investments net of maturities and $2.0 million of
purchases of property and equipment.

Fundraising activities


Our financing activities have consisted primarily of principal payments on the
Company's variable rate first lien loan, (the "Term Loan Facility"), partially
offset by net borrowings under the Revolving Credit Facility and proceeds from
the exercise of stock options. For the six months ended June 30, 2022, net cash
used in financing activities was $72.7 million, consisting primarily of the
repayment of $265.0 million in the Company's Term Loan as well as $70.0 million
in repayments under the Revolving Credit Facility partially offset by $265.0
million in borrowings under the Revolving Credit Facility, as well as proceeds
from the exercise of stock options. For the six months ended June 30, 2021, net
cash used in financing activities was $16.9 million, consisting of $13.4 million
in repayments on the Company's prior $40.0 million revolving credit facility and
$4.0 million of scheduled principal payments on the Company's Term Loan
Facility.
                                       35
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Commitments and contingencies


See the information set forth in Note 13. "Commitments and Contingencies" to the
unaudited condensed consolidated financial statements included in Part I, Item 1
of this Quarterly Report.

Indemnification Agreements

In the ordinary course of business, we enter into agreements of varying scope
and terms pursuant to which we agree to indemnify customers, vendors, lessors,
business partners and other parties with respect to certain matters, including,
but not limited to, losses related to breach of confidentiality and claims by
third parties of intellectual property infringement, misappropriation or other
violation. See Part I, Item 1A. "Risk Factors-We have indemnity provisions under
our contracts with our customers, channel partners and other third parties,
which could have a material adverse effect on our business" in our Annual Report
on Form 10-K for the year ended December 31, 2021. In addition, we enter into
indemnification agreements with our directors and certain officers and employees
that require us, among other things, to indemnify them against certain
liabilities that may arise by reason of their status or service as directors,
officers or employees. There are no claims that we are aware of that could have
a material effect on our consolidated balance sheets, consolidated statements of
operations and comprehensive loss, or consolidated statements of cash flows.


Critical Accounting Estimates


The preparation of financial statements and related disclosures in conformity
with U.S. GAAP and the Company's discussion and analysis of its financial
condition and operating results require the Company's management to make
judgments, assumptions and estimates that affect the amounts reported. Note 2.
"Summary of Significant Accounting Policies" to the unaudited condensed
consolidated Financial Statements in Part I, Item 1 of this Quarterly Report and
in the Notes to Consolidated Financial Statements in Part II, Item 8 of our
Annual Report on Form 10-K for the year ended December 31, 2021 describe the
significant accounting policies and methods used in the preparation of the
Company's condensed consolidated financial statements. There have been no
material changes to the Company's critical accounting estimates since our Annual
Report on Form 10-K for the year ended December 31, 2021.

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XENIA HOTELS & RESORTS, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://hotelmichelangelo.net/xenia-hotels-resorts-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Wed, 03 Aug 2022 20:26:34 +0000 https://hotelmichelangelo.net/xenia-hotels-resorts-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/
Certain statements in this Quarterly Report on Form 10-Q, other than purely
historical information, are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"). These statements include
statements about Xenia's plans, objectives, strategies, financial performance
and outlook, trends, the amount and timing of future cash distributions,
prospects or future events and involve known and unknown risks that are
difficult to predict. As a result, our actual financial results, performance,
achievements or prospects may differ materially from those expressed or implied
by these forward-looking statements. In some cases, you can identify
forward-looking statements by the use of words such as "may," "could," "expect,"
"intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance,"
"predict," "potential," "continue," "likely," "will," "would," "illustrative"
and variations of these terms and similar expressions, or the negative of these
terms or similar expressions. Such forward-looking statements are necessarily
based upon estimates and assumptions that, while considered reasonable by Xenia
and its management based on their knowledge and understanding of the business
and industry, are inherently uncertain. These statements are not guarantees of
future performance, and stockholders should not place undue reliance on
forward-looking statements. Forward-looking statements in this Form 10-Q
include, among others, statements about our plans, strategies and the effects of
the COVID-19 pandemic and other macroeconomic factors, including on the demand
for travel (including leisure travel and transient and group business travel),
capital expenditures and the timing of renovations, and derivations thereof,
financial performance, prospects or future events. There are a number of risks,
uncertainties and other important factors, many of which are beyond our control,
that could cause our actual results to differ materially from the
forward-looking statements contained in this Quarterly Report on Form 10-Q. Such
risks, uncertainties and other important factors include, among others: the
factors set forth under "Part I-Item 1A. Risk Factors" and "Part II-Item 7.
Management's Discussion and Analysis of Financial Condition and Results of
Operations" in our Annual Report on Form 10-K filed with the U.S. Securities and
Exchange Commission (the "SEC") on March 1, 2022, as may be updated elsewhere in
this report; and the information set forth in other Quarterly Reports on Form
10-Q and Current Reports on Form 8-K that we have filed or will file with the
SEC; the short- and longer-term effects of the COVID-19 pandemic, including on
the demand for travel (including leisure travel and transient and group business
travel), and levels of consumer confidence; actions that governments,
businesses, and individuals take in response to the COVID-19 pandemic or any
resurgence of the disease or its variants, including limiting or banning travel
and implementation of social distancing requirements; the impact of the COVID-19
pandemic, and actions taken in response to the COVID-19 pandemic or any
resurgence of the disease or its variants, on global and regional economies,
travel, and economic activity, including the duration and magnitude of its
impact on staffing levels, impacts to supply chains, and consumer discretionary
spending; the broad distribution of COVID-19 vaccines and boosters and wide
acceptance by the general population of such vaccines and boosters; the
effectiveness of the vaccines and boosters; the ability of third-party managers
or other partners to successfully navigate the impacts of the COVID-19 pandemic
including labor shortages; the pace of recovery following the COVID-19 pandemic
or any resurgence of the disease or its variants; COVID-19 may cause us to incur
additional expenses; our ability to successfully negotiate amendments and
covenant waivers under our indebtedness; our ability to comply with contractual
covenants; business, financial and operating risks inherent to real estate
investments and the lodging industry; seasonal and cyclical volatility in the
lodging industry; adverse changes in specialized industries, such as the energy,
technology and/or tourism industries that result in a sustained downturn of
related businesses and corporate spending that may negatively impact our
revenues and results of operations; difficulties in procuring required products
caused by supply chain disruptions; macroeconomic and other factors beyond our
control that can adversely affect and reduce demand for hotel rooms, food and
beverage services, and/or meeting facilities, including inflation; contraction
in the U.S. and/or global economy or low levels of economic growth; inflationary
pressures which increases our labor and other costs of providing services to
guests and meeting hotel brand standards, as well as costs related to
construction and other capital expenditures, increases in interest rates,
property and other taxes, and insurance which could result in reduced operating
profit margins; levels of spending in business and leisure segments as well as
consumer confidence; declines in occupancy and average daily rate; decreased
demand for business travel due to technological advancements and preferences for
virtual over in-person meetings and/or changes in guest and consumer
preferences, including consideration of the impact of travel on the environment;
fluctuations in the supply of hotels, due to hotel construction and/or
renovation and expansion of existing hotels, and demand for hotel rooms; changes
in the competitive environment in the lodging industry, including due to
consolidation of management companies, franchisors and online travel agencies,
and changes in the markets where we own hotels; events beyond our control, such
as war, terrorist or cyber-attacks, mass casualty events, government shutdowns
and closures, travel-related health concerns, and natural disasters; cyber
incidents and information technology failures, including unauthorized access to
our computer systems and/or our vendors' computer systems, and our third-party
management companies' or franchisors' computer systems and/or their vendors'
computer systems; our inability to directly operate our properties and reliance
on third-party hotel management companies to operate and manage our hotels; our
ability to maintain good relationships with our third-party hotel management
companies and franchisors; our failure to maintain and/or comply with brand
operating standards; our ability to maintain our brand licenses at our hotels;
relationships with labor unions and changes in labor laws (including increases
in minimum wages); loss of our senior management team or key corporate
personnel; our ability to identify and consummate acquisitions and dispositions
of hotels; our ability to integrate and successfully operate any hotel

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properties acquired in the future and the risks associated with these hotel
properties; the impact of hotel renovations, repositionings, redevelopments and
re-branding activities; our ability to access capital for renovations and
acquisitions and general operating needs on terms and at times that are
acceptable to us; the fixed cost nature of hotel ownership; our ability to
service, restructure or refinance our debt on terms and at times that are
acceptable to us; changes in interest rates and operating costs, including labor
and service related costs; compliance with regulatory regimes and local laws;
uninsured or under insured losses, including those relating to natural
disasters, the physical effects of climate change, civil unrest, terrorism or
cyber-attacks; changes in distribution channels, such as through internet travel
intermediaries or websites that facilitate short-term rental of homes and
apartments from owners; the amount of debt that we currently have or may incur
in the future; provisions in our debt agreements that may restrict the operation
of our business; our organizational and governance structure; our status as a
real estate investment trust ("REIT"); our taxable REIT subsidiary ("TRS")
lessee structure; the cost of compliance with and liabilities under
environmental, health and safety laws; adverse litigation judgments or
settlements; changes in real estate and zoning laws; increases in insurance or
other fixed costs and increases in real property tax valuations or rates;
changes in federal, state or local tax law, including legislative,
administrative, regulatory or other actions affecting REITs; changes in
governmental regulations or interpretations thereof; and estimates relating to
our ability to make distributions to our stockholders in the future.

These factors are not necessarily all of the important factors that could cause
our actual financial results, performance, achievements or prospects to differ
materially from those expressed in or implied by any of our forward-looking
statements. Other unknown or unpredictable factors also could harm our results.
All forward-looking statements attributable to us or persons acting on our
behalf are expressly qualified in their entirety by the cautionary statements
set forth above. Forward-looking statements speak only as of the date they are
made, and we do not undertake or assume any obligation to update publicly any of
these forward-looking statements to reflect actual results, new information or
future events, changes in assumptions or changes in other factors affecting
forward-looking statements, except to the extent required by applicable laws. If
we update one or more forward-looking statements, no inference should be drawn
that we will make additional updates with respect to those or other
forward-looking statements.

The following discussion and analysis should be read in conjunction with the
Company's Unaudited Condensed Consolidated Financial Statements and accompanying
notes, which appear elsewhere in this Quarterly Report on Form 10-Q.

Insight


Xenia Hotels & Resorts, Inc. ("we", "us", "our", "Xenia" or the "Company") is a
self-advised and self-administered REIT that invests in uniquely positioned
luxury and upper upscale hotels and resorts with a focus on top 25 lodging as
well as key leisure destinations in the United States. As of June 30, 2022, we
owned 34 hotels, comprising 9,812 rooms, across 14 states. Our hotels are
operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton,
Fairmont, Loews, Hilton, The Kessler Collection and Davidson.

Ongoing impact of COVID-19 on our business

The outbreak and global spread of the COVID-19 pandemic has led federal, state and local governments to United States to impose measures to control its spread, including restrictions on freedom of movement and business operations, and also to implement phased policies to reopen parts of the country. The effects of the COVID-19 pandemic on the hospitality industry have been significant and unprecedented.


Our hotel portfolio began to see improvements in leisure demand during the
second half of 2020, a trend that accelerated in 2021 and has continued in 2022.
During the first half of 2022, operations continued to improve including strong
leisure bookings, higher levels of business transient demand and improving group
demand resulting in total portfolio ADR climbing above 2019 levels for the
comparable period.

Despite this improvement, there remains significant uncertainty regarding the
pace of recovery and whether and when business travel and larger group meetings
will return to pre-pandemic levels. We may be impacted by, among other things,
the distribution and acceptance of COVID-19 vaccines and boosters, breakthrough
cases, and new variants of COVID-19, as well as the ongoing local, national and
global responses to the virus. As the recovery continues, we expect that the
pace will vary from market to market and may be uneven in nature. Additionally,
there has been increasing uncertainty regarding the broader economic environment
as higher levels of inflation have persisted along with rising interest rates
and increased concerns of a recession in the near term.

Additionally, there has been increasing uncertainty regarding the broader
economic environment as higher levels of inflation have persisted along with
rising interest rates and increased concerns of a recession. We rely on our
ability to raise room rates and prices of other products and services to keep
pace with inflation. Our hotel operators generally possess the ability to adjust
room rates daily, except for certain group or corporate rates contractually
committed to in advance, in a stable macroeconomic

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environment. However, our operators may be unable to increase rates faster than inflation, or even at the same rate, when inflation levels are high due to competitive pressures or prevailing economic conditions.

presentation basis


The accompanying condensed consolidated financial statements include the
accounts of the Company, the Operating Partnership, and XHR Holding. The
Company's subsidiaries generally consist of limited liability companies, limited
partnerships and the TRS. The effects of all inter-company transactions have
been eliminated. Corporate costs directly associated with our principal
executive offices, personnel and other administrative costs are reflected as
general and administrative expenses on the condensed consolidated statements of
operations and comprehensive income (loss).

Our income and expenses


Our revenue is primarily derived from hotel operations, including rooms revenue,
food and beverage revenue and other revenue, which consists of parking, spa,
resort fees, other guest services, and tenant leases, among other items.

Our operating costs and expenses consist of the costs to provide hotel services,
including rooms expense, food and beverage expense, other direct and indirect
operating expenses, and management and franchise fees. Rooms expense includes
housekeeping wages and associated payroll taxes, room supplies, laundry services
and front desk costs. Food and beverage expense primarily includes the cost of
food, beverages and associated labor. Other direct and indirect hotel expenses
include labor and other costs associated with the other operating department
revenue, as well as labor and other costs associated with general and
administrative departments, sales and marketing, information technology and
telecommunications, repairs and maintenance and utility costs. We enter into
management agreements with independent third-party management companies to
operate our hotels. The management companies typically earn base and incentive
management fees based on the levels of revenues and profitability of each
individual hotel.

Key operational performance indicators


We measure hotel results of operations and the operating performance of our
business by evaluating financial and nonfinancial metrics such as Revenue Per
Available Room ("RevPAR"); average daily rate ("ADR"); occupancy rate
("occupancy"); earnings before interest, income taxes, depreciation and
amortization for real estate ("EBITDAre") and Adjusted EBITDAre; and funds from
operations ("FFO") and Adjusted FFO. We evaluate individual hotel and
company-wide performance with comparisons to budgets, prior periods and
competing properties. RevPAR, ADR, and occupancy may be impacted by
macroeconomic factors as well as regional and local economies and events. See
"Non-GAAP Financial Measures" for further discussion of the Company's use,
definitions and limitations of EBITDAre, Adjusted EBITDAre, FFO and Adjusted FFO
and the reasons management believes these financial measures are useful to
investors.

Results of Operations

Lodging Industry Overview

We began to see improvements in leisure demand during the second half of 2020, a
trend that accelerated in 2021 and has continued into the first half of 2022.
Further, by mid-February, we began to experience higher levels of business
transient and group business which continued into the second quarter. Despite
this relative improvement, there is still significant uncertainty regarding the
pace of recovery and the length of time it will take for business travel and
larger group meetings to return to pre-pandemic levels. Persistent inflation,
rising interest rates and fears of a recession in the near term have further
increased uncertainty regarding the pace of recovery for the lodging industry.

The U.S. lodging industry has historically exhibited a strong correlation to
U.S. GDP, which decreased at an estimated annual rate of approximately 1.4% and
0.9% during the first and second quarters of 2022, according to the U.S.
Department of Commerce, compared to the annual rate growth trend from the third
and fourth quarters of 2021 of 2.3% and 6.9%, respectively. The decrease during
the second quarter reflected decreases in private inventory investment,
residential fixed investment, federal government spending, state and local
government spending and nonresidential fixed investment that were partially
offset by increases in exports, personal consumption expenditures, and imports.
In addition, the unemployment rate remained at 3.6% in June from March and fell
from 3.9% in December 2021 and from 4.8% in September 2021. The unemployment
rate has declined considerably from the April 2020 high of 14.7%.

The U.S. lodging industry has been more acutely impacted by the COVID-19
pandemic than the overall U.S. economy and other industries and has not
experienced the same level of recovery as the U.S. economy which is largely due
to the persistence of the COVID-19 pandemic and its variants and sentiment
towards business and leisure travel as a result of the pandemic. Additionally,
we expect the recovery of the lodging industry will take longer than it will for
the broader economy and many other industries. Further, we continue to monitor
and evaluate the challenges associated with inflationary pressures and rising
interest rates, the evolving workforce landscape, particularly related to
achieving the appropriate balance between hotel staffing

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levels and demand as our hotel operations increase, as well as ongoing supply chain issues that may continue to affect hotels’ ability to source operating supplies and other materials.


Demand increased 12.5% and 18.3%, respectively, during the three and six months
ended June 30, 2022. New hotel supply increased by 2.3% and 3.1%, respectively,
during the same period. The significant increase in demand led to increases in
industry RevPAR of 38.8% and 49.4% for the three and six months ended June 30,
2022 compared to 2021, which was driven by an increase in occupancy of 10.0% and
14.8% coupled with a 26.2% and 30.1% increase in ADR, respectively. All U.S.
data for the three and six months ended June 30, 2022 are per industry reports.

Overview of the second quarter of 2022


Our total portfolio RevPAR, which includes the results of hotels sold or
acquired for the period of ownership by the Company, increased 77.5% and 98.4%
to $185.44 and $165.16 for the three and six months ended June 30, 2022 compared
to $104.50 and $83.25 for the three and six months ended June 30, 2021,
respectively. The increase in our total portfolio RevPAR for the three and six
months ended June 30, 2022 compared to the same period in 2021 was driven by
increases in leisure transient business and improving business transient and
corporate group demand.

Net income increased 166.6% for the three months ended June 30, 2022 compared to
net loss in 2021, which was primarily attributed to an increase in operating
income of $56.0 million from the 33-comparable hotels owned during the three
months ended June 30, 2022 and 2021 as a result of a recovery from the COVID-19
pandemic, a $12.3 million reduction in impairment and other losses, other income
of $1.5 million in 2022 from insurance proceeds in excess of recognized losses
related to damage sustained at Loews New Orleans Hotel during Hurricane Ida
compared to other loss of $2.8 million in 2021 from the termination of four
interest rate hedges, a $1.6 million increase in operating income attributed to
the acquisition of W Nashville, a $1.4 million reduction in loss on
extinguishment of debt and a $0.6 million reduction in operating loss attributed
to the sale of hotels in November 2021 and January 2022. These increases were
partially offset by a $3.4 million increase in income tax expense, a $1.0
million increase in corporate general and administrative expenses and a $0.7
million increase in interest expense attributed to a higher weighted-average
interest rate.

Net income increased 122.8% for the six months ended June 30, 2022 compared to
net loss in 2021, which was primarily attributed to an increase in operating
income of $115.3 million from the 33-comparable hotels owned during the six
months ended June 30, 2022 and 2021 as a result of a recovery from the COVID-19
pandemic, an $11.0 million reduction in impairment and other losses, other
income of $2.5 million in 2022 from insurance proceeds in excess of recognized
losses related to damage sustained at Loews New Orleans Hotel during Hurricane
Ida compared to other loss of $2.8 million in 2021 from the termination of four
interest rate hedges, a $1.8 million increase in operating income attributed to
the acquisition of W Nashville, a $1.2 million reduction in operating loss
attributed to the sale of hotels in November 2021 and January 2022 and a $1.1
million reduction in loss on extinguishment of debt. These increases were
partially offset by a $4.8 million increase in income tax expense, a $2.5
million increase in interest expense attributed to a higher weighted-average
interest rate, a $1.9 million increase in corporate general and administrative
expenses and a $1.1 million reduction in gain on business interruption
insurance.

Adjusted EBITDAre and Adjusted FFO attributable to common stock and unit holders
for the three and six months ended June 30, 2022 increased 223.6% and 483.7%,
and 626.7% and 912.1%, respectively, compared to 2021, which was attributable to
the extent and timing of the impact of and recovery from the COVID-19 pandemic
on our results of operations. Refer to "Non-GAAP Financial Measures" for the
definition of these financial measures, a description of the reasons we believe
they are useful to investors as key supplemental measures of our operating
performance and the reconciliation of these non-GAAP financial measures to net
income (loss) attributable to common stock and unit holders.

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Operation Information Comparison

The following table shows selected operating information for the three and six months ended June 30, 2022 and 2021:

                                                                                             Six Months Ended
                                                                                                 June 30,
                                                                                          2022              2021                Change
Number of properties at January 1                                                          34                35                   (1)
Properties acquired                                                                         1                 -                    1
Properties disposed                                                                        (1)                -                   (1)
Number of properties at June 30                                                            34                35                   (1)

Number of rooms at January 1                                                              9,659            10,011                (352)
Rooms in properties acquired                                                               346                -                   346
Rooms in properties disposed(1)                                                           (193)               -                  (193)
Number of rooms at June 30                                                                9,812            10,011                (199)

                              Three Months Ended                                             Six Months Ended
                                   June 30,                                                      June 30,
                            2022              2021                Increase                2022              2021               Increase
Total Portfolio
Statistics:
Occupancy(2)                 68.9  %           48.8  %               2,010   bps           62.9  %           40.8  %             2,210   bps
ADR(2)                   $ 269.20          $ 214.03                   25.8     %       $ 262.76          $ 203.92                 28.9     %
RevPAR(2)                $ 185.44          $ 104.50                   77.5     %       $ 165.16          $  83.25                 98.4     %

(1) During the six months ended June 30, 2022the Company sold a 191-room hotel and reduced the number of rooms from two to Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch.


(2)  For hotels acquired during the applicable period, includes operating
statistics since the date of acquisition. For hotels disposed of during the
period, operating results and statistics are included through the date of the
respective disposition. The six months ended June 30, 2021 includes hotels that
had suspended operations for a portion of the period presented.

Revenue

Revenue includes rooms, catering and other revenue from our hotels as follows (in thousands):


                       Three Months Ended June 30,                                                          Six Months Ended June 30,
                         2022                  2021             Increase            % Change                 2022                  2021             Increase            % Change
Revenues:
Rooms revenues     $      165,580          $  95,195          $  70,385                  73.9  %       $      288,778          $ 150,841          $ 137,937                  91.4  %
Food and beverage
revenues                   96,781             40,143             56,638                 141.1  %              164,516             61,735            102,781                 166.5  %
Other revenues             21,090             16,636              4,454                  26.8  %               40,504             27,250             13,254                  48.6  %
Total revenues     $      283,451          $ 151,974          $ 131,477                  86.5  %       $      493,798          $ 239,826          $ 253,972                 105.9  %


Rooms revenues

Rooms revenues increased by $70.4 million, or 73.9%, to $165.6 million for the
three months ended June 30, 2022 from $95.2 million for the three months ended
June 30, 2021 primarily due to increases in occupancy and ADR due to a recovery
from the COVID-19 pandemic. Additionally, the acquisition of W Nashville in
March 2022 contributed to the increase in rooms revenue by $8.8 million. The
increase is net of a reduction of $2.9 million attributed to the sale of
Marriott Charleston Town Center in November 2021 and Kimpton Hotel Monaco
Chicago in January 2022 (collectively, "the hotels sold in November 2021 and
January 2022").

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Rooms revenues increased by $137.9 million, or 91.4%, to $288.8 million for the
six months ended June 30, 2022 from $150.8 million for the six months ended
June 30, 2021 primarily due to increases in occupancy and ADR due to a recovery
from the COVID-19 pandemic. Additionally, the acquisition of W Nashville in
March 2022 contributed to the increase in rooms revenue by $9.1 million. This
increase is net of a reduction of $4.1 million attributed to the hotels sold in
November 2021 and January 2022.

Food and beverage revenue


Food and beverage revenues increased by $56.6 million, or 141.1%, to $96.8
million for the three months ended June 30, 2022 from $40.1 million for the
three months ended June 30, 2021 primarily due to increases in occupancy due to
a recovery from the COVID-19 pandemic. Additionally, the acquisition of W
Nashville in March 2022 contributed to the increase in food and beverage revenue
by $6.9 million. This increase is net of a reduction of $0.7 million attributed
to the hotels sold in November 2021 and January 2022.

Food and beverage revenues increased by $102.8 million, or 166.5%, to $164.5
million for the six months ended June 30, 2022 from $61.7 million for the six
months ended June 30, 2021 primarily due to increases in occupancy due to a
recovery from the COVID-19 pandemic. Additionally, the acquisition of W
Nashville in March 2022 contributed to the increase in food and beverage revenue
by $7.1 million. This increase is net of a reduction of $0.9 million in food and
beverage revenues attributed to the hotels sold in November 2021 and January
2022.

Other revenues

Other revenues increased by $4.5 million, or 26.8%, to $21.1 million for the
three months ended June 30, 2022 from $16.6 million for the three months ended
June 30, 2021 primarily due to a recovery from the COVID-19 pandemic. This
increase includes $1.8 million in additional revenues from cancellations and
attrition as well as $0.6 million attributed to the acquisition of W Nashville
in March 2022. These increases are net of a reduction of $0.2 million attributed
to the hotels sold in November 2021 and January 2022.

Other revenues increased by $13.3 million, or 48.6%, to $40.5 million for the
six months ended June 30, 2022 from $27.3 million for the six months ended
June 30, 2021 primarily due to a recovery from the COVID-19 pandemic. This
increase includes $5.0 million in additional revenues from cancellations and
attrition as well as $0.6 million attributed to the acquisition of W Nashville
in March 2022. These increases are net of a reduction of $0.4 million attributed
to the hotels sold in November 2021 and January 2022.

Hotel running costs

Hotel operating expenses consist of the following (in thousands):


                        Three Months Ended June 30,                                                         Six Months Ended June 30,
                          2022                  2021            Increase            % Change                 2022                  2021             Increase            % Change
Hotel operating
expenses:
Rooms expenses      $       36,423          $  22,388          $ 14,035                  62.7  %       $       65,640          $  37,925          $  27,715                  73.1  %
Food and beverage
expenses                    60,298             28,592            31,706                 110.9  %              105,908             46,770             59,138                 126.4  %
Other direct
expenses                     6,366              4,736             1,630                  34.4  %               11,660              7,934              3,726                  47.0  %
Other indirect
expenses                    63,059             44,047            19,012                  43.2  %              116,919             81,374             35,545                  43.7  %
Management and
franchise fees              11,049              6,140             4,909                  80.0  %               18,675              8,984              9,691                 107.9  %
Total hotel
operating expenses  $      177,195          $ 105,903          $ 71,292                  67.3  %       $      318,802          $ 182,987          $ 135,815                  74.2  %


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Total hotel operating expenses


In general, hotel operating costs fluctuate based on various factors, including
occupancy, labor costs, utilities and insurance costs. Luxury and upper upscale
hotels generally have higher fixed costs than other types of hotels due to the
level of services and amenities provided to guests.

Total hotel operating expenses increased $71.3 million, or 67.3%, to $177.2
million for the three months ended June 30, 2022 from $105.9 million for the
three months ended June 30, 2021 primarily due to increases in occupancy and
other related operating costs due to a recovery from the COVID-19 pandemic.
Additionally, W Nashville contributed to the increase in hotel operating
expenses by $10.4 million. The increase in total hotel operating expenses is net
of a reduction of $3.2 million attributed to the hotels sold in November 2021
and January 2022.

Total hotel operating expenses increased $135.8 million, or 74.2%, to $318.8
million for the six months ended June 30, 2022 from $183.0 million for the six
months ended June 30, 2021 primarily due to increases in occupancy and other
related operating costs due to a recovery from the COVID-19 pandemic.
Additionally, W Nashville contributed to the increase in hotel operating
expenses by $10.7 million. The increase in total hotel operating expenses is net
of a reduction of $5.3 million attributed to the hotels sold in November 2021
and January 2022.

Corporate and other expenses

Corporate and other expenses break down as follows (in thousands):

                          Three Months Ended June 30,                                                            Six Months Ended June 30,
                                                                  Increase /                                                                             Increase /
                            2022                 2021             (Decrease)             % Change                 2022                  2021             (Decrease)             % Change

Depreciation and amortization $34,251 $33,008 $1,243

                   3.8  %       $       64,816          $  66,205          $     (1,389)                 (2.1) %
Real estate taxes,
personal property
taxes and insurance           11,369            10,997                   372                   3.4  %               22,224             21,537                   687                   3.2  %
Ground lease expense             833               379                   454                 119.8  %                1,350                782                   568                  72.6  %
General and
administrative
expenses                       9,083             8,096                   987                  12.2  %               16,869             15,018                 1,851                  12.3  %
Gain on business
interruption
insurance                          -                 -                     -                     -  %                    -             (1,116)                1,116                 100.0  %

Impairment and other
losses                             -            12,313               (12,313)               (100.0) %                1,278             12,313               (11,035)                (89.6) %

Total head office and other expenses $55,536 $64,793 ($9,257)

                (14.3) %       $      106,537          $ 114,739          $     (8,202)                 (7.1) %


Depreciation and amortization


Depreciation and amortization expense increased $1.2 million, or 3.8%, to $34.3
million for the three months ended June 30, 2022 from $33.0 million for the
three months ended June 30, 2021. This increase was primarily attributed to the
acquisition of W Nashville in March 2022, partially offset by reduction
attributed to the timing of fully depreciated assets during the comparable
periods and a reduction in depreciation expense related to the hotels sold in
November 2021 and January 2022.

Depreciation and amortization expense decreased $1.4 million, or (2.1)%, to
$64.8 million for the six months ended June 30, 2022 from $66.2 million for the
six months ended June 30, 2021. This decrease was primarily attributed to the
timing of fully depreciated assets during the comparable periods and a reduction
in depreciation expense related to the hotels sold in November 2021 and January
2022, partially offset by an increase in depreciation expense attributed to the
acquisition of W Nashville in March 2022.

                                       32

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Property taxes, personal property taxes and insurance


Real estate taxes, personal property taxes and insurance expense increased $0.4
million, or 3.4%, and $0.7 million, or 3.2%, to $11.4 million and $22.2 million
for the three and six months ended June 30, 2022 from $11.0 million and $21.5
million for the three and six months ended June 30, 2021. This year-to-date
increase was primarily attributed increases in insurance premiums of $1.6
million, a $1.5 million non-recurring property tax refund received in 2021 and
$0.8 million attributed to the acquisition of W Nashville in March 2022. These
increases were partially offset by a $2.1 million reduction in real estate taxes
and a $0.9 million reduction related to the hotels sold in November 2021 and
January 2022.

Ground lease expense

Ground lease expense increased $0.5 million, or 119.8%, and $0.6 million, or
72.6%, to $0.8 million and $1.4 million for the three and six months ended
June 30, 2022 from $0.4 million and $0.8 million for the three and six months
ended June 30, 2021. The increase was primarily attributable to an increase in
percentage rent in 2022, which is based on revenues at certain hotels with
ground leases, compared to 2021.

General and administrative expenses


General and administrative expenses increased $1.0 million, or 12.2% and $1.9
million, or 12.3%, to $9.1 million and $16.9 million for the three and six
months ended June 30, 2022 from $8.1 million and $15.0 million for the three and
six months ended June 30, 2021 primarily due to increases in compensation
expense.

Gain on business interruption insurance

The gain on business interruption insurance was $1.1 million for the six months ended June 30, 2021which was attributed to insurance proceeds for a portion of lost revenue associated with cancellations related to the COVID-19 pandemic.

Depreciation and other losses

In August 2021Hurricane Ida hit Loews Hotel New Orleans situated in New Orleans, Louisiana. In the six months ended June 30, 2022the Company expensed additional repair and cleanup costs related to the hurricane $1.3 million.


During the three and six months ended June 30, 2022, the Company concluded that
it intended to sell the 352-room Marriott Charleston Town Center, in Charleston,
West Virginia and began marketing the property. Based on multiple bids from
qualified buyers and ongoing price discussions, the Company expected the hotel
to be sold for a price that was less than its net book value. As a result, an
impairment loss of approximately $12.3 million was recorded for the three and
six months ended June 30, 2021.

Non-operating income and expenses

Non-operating income and expenses consist of the following items (in thousands):

                            Three Months Ended June 30,                                                                            Six Months Ended June 30,
                               2022                2021            Increase / (Decrease)             % Change                  2022                          2021              Increase / (Decrease)             % Change

Non-operating income and expenses:


Other income (loss)      $       1,681          $ (2,805)                  4,486                          159.9  %                904                       (2,689)                    3,593                          133.6  %
Interest expense               (20,353)          (19,691)                   (662)                          (3.4) %            (40,891)                     (38,441)                   (2,450)                          (6.4) %
Loss on extinguishment
of debt                              -            (1,356)                  1,356                          100.0  %               (294)                      (1,356)                    1,062                           78.3  %
Income tax expense              (3,570)             (169)                 (3,401)                      (2,012.4) %             (5,177)                        (334)                   (4,843)                      (1,450.0) %


Other income (loss)

Other income increased $4.5 million, or 159.9%, and $3.6 million, or 133.6%, to
$1.7 million and $0.9 million for the three and six months ended June 30, 2022
from a loss of $2.8 million and $2.7 million for the three and six months ended
June 30, 2021. The increase was primarily attributed to a gain of $1.5 million
and $2.5 million from insurance proceeds settlements in excess of recognized
losses associated with hurricane-related damage at Loews New Orleans Hotel for
the three and six months ended June 30, 2022 coupled with the recognition of
$2.8 million of costs associated with the termination of four interest rate
hedges for the three and six months ended June 30, 2021.

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Interest expense


Interest expense increased $0.7 million, or 3.4%, and $2.5 million, or 6.4%, to
$20.4 million and $40.9 million for the three and six months ended June 30, 2022
from $19.7 million and $38.4 million for the three and six months ended June 30,
2021. The increase was primarily due to an increase in the weighted-average
interest rate, partially offset by a decrease in the outstanding debt as of June
30, 2022 compared to 2021. Refer to Note 5 in the accompanying condensed
consolidated financial statements for further discussion.

Loss on extinguishment of debt


The loss on extinguishment of debt of $0.3 million for the six months ended
June 30, 2022 was attributable to the write-off of unamortized debt issuance
costs upon the early repayment of one mortgage loan. The loss on extinguishment
of debt of $1.4 million for the three and six months ended June 30, 2021 was
attributable to the write off of unamortized debt issuance costs upon the early
repayment of the corporate credit facility term loan that was due to mature in
August 2023 and one mortgage loan.

income tax expense


Income tax expense increased $3.4 million, or 2,012.4%, and $4.8 million, or
1,450.0%, to $3.6 million and $5.2 million for the three and six months ended
June 30, 2022 from $0.2 million and $0.3 million for the three and six months
ended June 30, 2021. The increase from prior year was primarily attributed to
higher projected taxable income related to the recovery from the COVID-19
pandemic and the acquisition of W Nashville in March 2022 coupled with an
increase in the effective tax rate for the first half of 2022 compared to 2021.
These increases were partially offset by the use of the Company's federal and
state net operation loss carryforwards.

Cash and capital resources


We expect to meet our short-term liquidity requirements from cash on hand, cash
flow from hotel operations, use of our unencumbered asset base, asset
dispositions, borrowings under our revolving credit facility, and proceeds from
various capital market transactions, including issuances of debt and equity
securities. The objectives of our cash management policy are to maintain the
availability of liquidity and minimize operational costs.

On a long-term basis, our objectives are to maximize revenue and profits
generated by our existing properties and acquired hotels, to further enhance the
value of our portfolio and produce an attractive current yield, as well as to
generate sustainable and predictable cash flow from our operations to distribute
to our common stock and unit holders. We believe successful improvements to the
performance of our portfolio will result in increased operating cash flows over
time. Additionally, we may meet our long-term liquidity requirements through
additional borrowings, the issuance of equity and debt securities, which may not
be available on advantageous terms or at all, and/or proceeds from the sales of
hotels.

Liquidity

As of June 30, 2022, we had $223.8 million of consolidated cash and cash
equivalents and $46.9 million of restricted cash and escrows. The restricted
cash as of June 30, 2022 primarily consisted of $40.7 million related to
furniture, fixtures and equipment replacement reserves ("FF&E reserves") as
required per the terms of our management and franchise agreements, cash held in
restricted escrows of $4.2 million primarily for real estate taxes and mortgage
escrows, $1.7 million in deposits made for capital projects and $0.3 million for
disposition-related holdbacks.

As of June 30, 2022, there was no outstanding balance on our revolving credit
facility and the full $450 million is available to be borrowed. Proceeds from
future borrowings may be used for working capital, general corporate or other
purposes permitted by the amended revolving credit agreement.

In May 2021, we upsized the ATM Agreement and, as a result, we had $200 million
available for sale under the ATM Agreement as of June 30, 2022. The terms of the
amended revolving credit facility imposed restrictions on the use of proceeds
raised from equity issuances, however those restrictions expired as a result of
the Company exiting the covenant waiver period.

We remain committed to increasing total shareholder returns through the
following priorities: (1) maximize revenue and profits generated by our existing
properties and acquired hotels, including the continued focused management of
expenses, (2) further enhance the value of our portfolio and produce an
attractive current yield and (3) generate sustainable and predictable cash flow
from our operations to distribute to our common stock and unit holders. Future
determinations regarding the declaration and payment of dividends will be at the
discretion of our Board of Directors and will depend on then-existing
conditions, including our results of operations, payout ratio, capital
requirements, financial condition, prospects, contractual arrangements, any
limitations on payment of dividends present in our current and future debt
agreements, maintaining our REIT status and other factors that our Board of
Directors may deem relevant.

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Debt and loan commitments

From June 30, 2022our total outstanding debt was $1.4 billion and had a weighted average interest rate of 5.20%.

Mortgages


In January 2022, we repaid in full the $65.0 million outstanding balance on the
mortgage loan collateralized by The Ritz-Carlton, Pentagon City. Our mortgage
loan agreements require contributions to be made to FF&E reserves. In addition,
certain quarterly financial covenants were waived for a period of time specified
in the respective amended loan agreements and certain financial covenants have
been adjusted following the waiver periods.

Business credit facilities


Certain financial covenants related to our amended corporate credit facilities
were suspended until the date that the compliance certificates demonstrating
compliance with the financial covenants thereunder for the fiscal quarter ending
June 30, 2022 were delivered (such period, the "covenant waiver period").
Certain financial covenants that were suspended during the covenant waiver
period resumed quarterly testing beginning with the fiscal quarter ending June
30, 2022 but remain at modified covenant levels through the second quarter in
2023 (such period, unless earlier terminated by the Operating Partnership in
accordance with the terms of the amended corporate credit facilities, the
"permitted variations period"). In addition, the amended corporate credit
facilities had certain restrictions and covenants which were applicable during
the covenant waiver period, including (i) mandatory prepayment requirements,
(ii) affirmative covenants related to the pledge of equity of certain
subsidiaries and (iii) negative covenants restricting certain acquisitions,
investments, capital expenditures, ground leases and distributions. A minimum
liquidity covenant also applied during the covenant waiver period.

We determined that we met our modified financial covenants for the quarter ended
June 30, 2022 and delivered the compliance certificates demonstrating such
compliance under the amended corporate credit facilities and, as a result, are
no longer subject to the additional restrictions and covenants that applied
during the covenant waiver period, other than in respect of certain restrictions
and covenants related to the pledge of equity of certain subsidiaries which
remain applicable until after the end of the permitted variations period.

Senior Notes


The indentures governing the Senior Notes contain customary covenants that limit
the Operating Partnership's ability and, in certain circumstances, the ability
of its subsidiaries, to borrow money, create liens on assets, make distributions
and pay dividends, redeem or repurchase stock, make certain types of
investments, sell stock in certain subsidiaries, enter into agreements that
restrict dividends or other payments from subsidiaries, enter into transactions
with affiliates, issue guarantees of indebtedness and sell assets or merge with
other companies. These limitations are subject to a number of important
exceptions and qualifications set forth in the indentures.

Debt commitments


As of June 30, 2022, we were not in compliance with its debt covenants on one
mortgage loan which did not result in an event of default but allows the lender
the option to institute a cash sweep until covenant compliance is achieved for a
period of time specified in the loan agreement. The cash sweep permits the
lender to withdraw excess cash generated by the property into a separate bank
account that they control, which may be used to reduce the outstanding loan
balance.

Derivatives


As of June 30, 2022, we had eight interest rate swaps with an aggregate notional
amount of $250.0 million. These swaps fix a portion of the variable interest
rate on two of our mortgage loans for a portion of the term of each respective
mortgage loan and fix LIBOR for a portion of the term of our one outstanding
corporate credit facility term loan agented by KeyBank National Association. Our
interest rate swaps are scheduled to expire later in 2022 which will increase
our exposure to rising interest rates. The corporate credit facility term loan
spread may vary, as it is determined by our leverage ratio. The applicable
interest rate for the corporate credit facility term loan was set to the highest
level of grid-based pricing during the covenant waiver period; however, with the
delivery of the compliance certificates under the corporate credit facilities
for the fiscal quarter ending June 30, 2022, we exited the covenant waiver
period and the applicable interest rate reverted to pricing based on the
Company's leverage ratio. In addition, two interest rate swaps were terminated
in January 2022 in connection with the repayment of a $65.0 million mortgage
loan.

Our ability to apply hedge accounting in the future could be impacted to the
extent that the payment terms of our loans change. The discontinuation of hedge
accounting could result in future changes in the fair market values of hedges
and/or a portion or all of the $0.2 million balance of accumulated other
comprehensive income as of June 30, 2022 to be recognized on the condensed
consolidated statements of operations and comprehensive income (loss) through
net income (loss). Any future

                                       35
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defaults by the Company under the terms of its hedges, including those which may
arise from cross default provisions with loan agreements, could result in the
Company being immediately liable for the fair market value liability of the
defaulted hedges.

In March 2021, the Financial Conduct Authority ("FCA") announced that USD LIBOR
will no longer be published after June 30, 2023. This announcement has several
implications, including setting the spread that may be used to automatically
convert contracts from LIBOR to the Secured Overnight Financing Rate ("SOFR").
Additionally, banking regulators were encouraging banks to discontinue new LIBOR
debt issuance by December 31, 2021. Any changes adopted by the FCA or other
governing bodies in the method used for determining LIBOR may result in a sudden
or prolonged increase or decrease in reported LIBOR. If that were to occur, our
interest payments could change. In addition, uncertainty about the extent and
manner of future changes may result in interest rates and/or payments that are
higher or lower than if LIBOR were to remain available in its current form.

All of our interest rate swap contracts mature prior to June 30, 2023. While we
expect LIBOR to be available in substantially its current form through maturity,
it is possible that LIBOR will become unavailable prior to that date. This could
result, for example, if sufficient banks decline to make submissions to the
LIBOR administrator. In that case, the risks associated with the transition to
an alternative reference rate will be accelerated and magnified. The
introduction of an alternative rate also may create additional basis risk and
increased volatility as alternative rates are phased in and utilized in parallel
with LIBOR.

Capital Markets

We maintain an established "At-the-Market" ("ATM") program pursuant to an Equity
Distribution Agreement ("ATM Agreement") with Wells Fargo Securities, LLC,
Robert W. Baird & Co. Incorporated, Jefferies LLC, KeyBanc Capital Markets Inc.
and Raymond James & Associates, Inc. In accordance with the terms of the ATM
Agreement, which was amended and upsized in May 2021, we may from time to time
offer and sell shares of our common stock having an aggregate offering price up
to $200 million. No shares were sold under the ATM Agreement during the three
and six months ended June 30, 2022 and, as of June 30, 2022, $200 million of
common stock remained available for issuance.

Our Board of Directors has authorized a stock repurchase program pursuant to
which we are authorized to purchase up to $175 million of our outstanding common
stock in the open market, in privately negotiated transactions or otherwise,
including pursuant to Rule 10b5-1 plans (the "Repurchase Program"). The
Repurchase Program does not have an expiration date. This Repurchase Program may
be suspended or discontinued at any time and does not obligate us to acquire any
particular amount of shares. As of June 30, 2022, we had approximately $94.7
million remaining under our share repurchase authorization.

No shares were purchased under the buyback program during the three and six months ended June 30, 2022 and 2021. The terms of our amended corporate credit facilities prohibited us from repurchasing our common shares until we complied with applicable covenants. However, these restrictions expired following our exit from the waiver period.

Capital expenditures and reserve funds


We maintain each of our properties in good repair and condition and in
conformity with applicable laws and regulations, franchise agreements and
management agreements. Routine capital expenditures are administered by the
hotel management companies. However, we have approval rights over the capital
expenditures as part of the annual budget process for each of our properties.
From time to time, certain of our hotels may undergo renovations as a result of
our decision to expand or upgrade portions of the hotels, such as guest rooms,
public space, meeting space and/or restaurants, in order to better compete with
other hotels in our markets. In addition, upon the acquisition of a hotel we may
be required to complete a property improvement plan in order to bring the hotel
into compliance with the respective brand standards. If permitted by the terms
of the management agreement, funding for a renovation will first come from the
FF&E reserves. We are obligated to maintain reserve funds with respect to
certain agreements with our hotel management companies, franchisors and lenders
to provide funds, generally 3% to 5% of hotel revenues, sufficient to cover the
cost of certain capital improvements to the hotels and to periodically replace
and update furniture, fixtures and equipment. Certain of the agreements require
that we reserve this cash in separate accounts. To the extent that the FF&E
reserves are not available or adequate to cover the cost of the renovation, we
may fund a portion of the renovation with cash on hand, borrowings from our
revolving credit facility and/or other sources of available liquidity. We have
been, and will continue to be, prudent with respect to our capital spending,
taking into account our cash flows from operations.

As of June 30, 2022 and December 31, 2021, we had a total of $40.7 million and
$29.3 million, respectively, of FF&E reserves. During the three and six months
ended June 30, 2022 we made total capital expenditures of $14.3 million and
$21.8 million, respectively, and during the three and six months ended June 30,
2021, we made total capital expenditures of $4.6 million and $11.9 million,
respectively.

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Off-balance sheet arrangements


As of June 30, 2022, we had various contracts outstanding with third-parties in
connection with the renovation of certain of our hotel properties. The remaining
commitments under these contracts as of June 30, 2022 totaled $14.5 million.

Sources and uses of species


Our principal sources of cash are cash flows from operations, borrowing under
debt financings, including draws on our revolving credit facility, and from
various types of equity offerings or the sale of our hotels. As a result of the
impact the COVID-19 pandemic has had on our business, along with rising rates of
inflation and interest rates, certain sources of capital may not be as readily
available to us as they have been historically or may come at higher costs. Our
principal uses of cash are asset acquisitions, capital investments, routine debt
service and debt repayments, operating costs, corporate expenses and dividends.
We may also elect to use cash to buy back our common stock in the future under
the Repurchase Program.

Comparison of the six months ended June 30, 2022 half-year ended
June 30, 2021

The table below presents summarized cash flow information for the Condensed Consolidated Statements of Cash Flows (in thousands):


                                                                     Six 

Months ended June 30th,

                                                                     2022                     2021
Net cash provided by operating activities                   $       98,635               $      4,822
Net cash used in investing activities                             (314,680)                    (9,971)
Net cash (used in) provided by financing activities                (67,507)                   111,272

(decrease) net increase in cash and cash equivalents and restricted cash

                                             $     (283,552)              $    106,123

Cash and cash equivalents and restricted cash, beginning of period

                                                          554,231                    428,786
Cash and cash equivalents and restricted cash, at end of
period                                                      $      270,679               $    534,909


Operating

•Cash provided by operating activities was $98.6 million and $4.8 million for
the six months ended June 30, 2022 and 2021, respectively. Cash flows from
operating activities generally consist of the net cash generated by our hotel
operations, partially offset by the cash paid for interest, corporate expenses
and other working capital changes. Our cash flows from operating activities may
also be affected by changes in our portfolio resulting from hotel acquisitions,
dispositions or renovations. The net increase in cash from operating activities
during the six months ended June 30, 2022 was primarily due to an increase in
hotel operating income attributed to a recovery from the impact of the COVID-19
pandemic and the acquisition of W Nashville in March 2022, net of reductions
from the hotels sold in November 2021 and January 2022. Refer to the "Results of
Operations" section for further discussion of our operating results for
the three and six months ended June 30, 2022 and 2021.

Invest


•Cash used in investing activities was $314.7 million and $10.0 million for the
six months ended June 30, 2022 and 2021, respectively. Cash used in investing
activities for the six months ended June 30, 2022 was attributed to $328.5
million for the acquisition of W Nashville and $21.8 million in capital
improvements at our hotel properties, which was partially offset by net proceeds
of $32.8 million from the disposition of Kimpton Hotel Monaco Chicago, $1.5
million of proceeds from property insurance and $1.4 million of performance
guaranty payments received that were recorded as a reduction in the respective
hotel's cost basis. Cash used in investing activities for the six months ended
June 30, 2021 was attributed to $11.9 million in capital improvements at our
hotel properties, which was partially offset by $1.9 million of performance
guaranty payments received that were recorded as a reduction in the respective
hotel's cost basis.

Financing

•Cash used in financing activities was $67.5 million and cash provided by
financing activities was $111.3 million for the six months ended June 30, 2022
and 2021, respectively. Cash used in financing activities for the six months
ended June 30, 2022 was attributed the repayment of mortgage debt totaling $65.0
million, principal payments of mortgage debt totaling $2.0 million and shares
redeemed to satisfy tax withholding on vested share-based compensation of $0.5
million. Cash provided by financing activities for the six months ended June 30,
2021 was primarily attributed $500.0 million in proceeds from the issuance of
the 2021 Senior Notes, offset by the repayment of the revolving credit facility
of $163.1 million, the repayment of one corporate credit facility term loan
totaling $150.0 million, the repayment of

                                       37

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mortgage debt totaling $56.8 million, payment of loan fees and issuance costs of
$10.1 million, principal payments of mortgage debt totaling $4.2 million,
redemption of Operating Partnership Units for common stock and cash of $4.1
million, and shares redeemed to satisfy tax withholding on vested share-based
compensation of $0.4 million.

Non-GAAP Financial Measures

We consider the following non-GAAP financial measures to be useful to investors
as key supplemental measures of our operating performance: EBITDA, EBITDAre,
Adjusted EBITDAre, FFO and Adjusted FFO. These non-GAAP financial measures
should be considered along with, but not as alternatives to, net income or loss,
operating profit, cash from operations, or any other operating performance
measure as prescribed per GAAP.

EBITDA, EBITDAre and adjusted EBITDAre


EBITDA is a commonly used measure of performance in many industries and is
defined as net income or loss (calculated in accordance with GAAP)
excluding interest expense, provision for income taxes (including income taxes
applicable to sale of assets) and depreciation and amortization. We consider
EBITDA useful to investors in evaluating and facilitating comparisons of our
operating performance between periods and between REITs by removing the impact
of our capital structure (primarily interest expense) and asset base (primarily
depreciation and amortization) from our operating results, even though EBITDA
does not represent an amount that accrues directly to common stockholders. In
addition, EBITDA is used as one measure in determining the value of hotel
acquisitions and dispositions and, along with FFO and Adjusted FFO, is used by
management in the annual budget process for compensation programs.

We calculate EBITDAre in accordance with standards established by the National
Association of Real Estate Investment Trusts ("Nareit"). Nareit defines EBITDAre
as EBITDA plus or minus losses and gains on the disposition of depreciated
property, including gains or losses on change of control, plus impairments of
depreciated property and of investments in unconsolidated affiliates caused by a
decrease in the value of depreciated property in the affiliate, and adjustments
to reflect the entity's share of EBITDAre of unconsolidated affiliates.

We further adjust EBITDAre to exclude the impact of non-controlling interests in
consolidated entities other than our Operating Partnership Units because our
Operating Partnership Units may be redeemed for common stock. We also adjust
EBITDAre for certain additional items such as depreciation and amortization
related to corporate assets, hotel property acquisition, terminated transaction
and pre-opening expenses, amortization of share-based compensation, non-cash
ground rent and straight-line rent expense, the cumulative effect of changes in
accounting principles, and other costs we believe do not represent recurring
operations and are not indicative of the performance of our underlying hotel
property entities. We believe it is meaningful for investors to understand
Adjusted EBITDAre attributable to all common stock and unit holders. We believe
Adjusted EBITDAre attributable to common stock and unit holders provides
investors with another useful financial measure in evaluating and facilitating
comparison of operating performance between periods and between REITs that
report similar measures.

FFO and Adjusted FFO


We calculate FFO in accordance with standards established by Nareit, as amended
in the December 2018 restatement white paper, which defines FFO as net income or
loss (calculated in accordance with GAAP), excluding real estate-related
depreciation, amortization and impairments, gains or losses from sales of real
estate, the cumulative effect of changes in accounting principles, similar
adjustments for unconsolidated partnerships and consolidated variable interest
entities, and items classified by GAAP as extraordinary. Historical cost
accounting for real estate assets implicitly assumes that the value of real
estate assets diminishes predictably over time. Since real estate values instead
have historically risen or fallen with market conditions, most industry
investors consider presentations of operating results for real estate companies
that use historical cost accounting to be insufficient by themselves. We believe
that the presentation of FFO provides useful supplemental information to
investors regarding operating performance by excluding the effect of real estate
depreciation and amortization, gains or losses from sales for real estate,
impairments of real estate assets, extraordinary items and the portion of these
items related to unconsolidated entities, all of which are based on historical
cost accounting and which may be of lesser significance in evaluating current
performance. We believe that the presentation of FFO can facilitate comparisons
of operating performance between periods and between REITs, even though FFO does
not represent an amount that accrues directly to common stockholders. Our
calculation of FFO may not be comparable to measures calculated by other
companies who do not use the Nareit definition of FFO or do not calculate FFO
per diluted share in accordance with Nareit guidance. Additionally, FFO may not
be helpful when comparing us to non-REITs. We present FFO attributable to common
stock and unit holders, which includes our Operating Partnership Units because
our Operating Partnership Units may be redeemed for common stock. We believe it
is meaningful for the investor to understand FFO attributable to common stock
and unit holders.

We further adjust FFO for certain additional items that are not in Nareit's
definition of FFO such as hotel property acquisition, terminated transaction and
pre-opening expenses, amortization of debt origination costs and share-based
compensation, non-cash ground rent and straight-line rent expense, and other
items we believe do not represent recurring operations. We believe

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that Adjusted FFO provides investors with useful supplemental information that
may facilitate comparisons of ongoing operating performance between periods and
between REITs that make similar adjustments to FFO and is beneficial to
investors' complete understanding of our operating performance.

The following is a reconciliation of net income (loss) to EBITDA, EBITDAre and
Adjusted EBITDAre attributable to common stock and unit holders for the three
and six months ended June 30, 2022 and 2021 (in thousands):

                                                          Three Months Ended June 30,                    Six Months Ended June 30,
                                                            2022                  2021                   2022                    2021
Net income (loss)                                     $       28,478          $ (42,743)         $      23,001               $ (100,720)
Adjustments:
Interest expense                                              20,353             19,691                 40,891                   38,441
Income tax expense                                             3,570                169                  5,177                      334
Depreciation and amortization                                 34,251             33,008                 64,816                   66,205
EBITDA                                                $       86,652          $  10,125          $     133,885               $    4,260
Impairment of investment properties(1)                             -             12,313                      -                   12,313

EBITDAre                                              $       86,652          $  22,438          $     133,885               $   16,573

Reconciliation with adjusted EBITDA Depreciation and impairment related to company assets

                                                $         (104)         $    (102)         $        (206)              $     (203)
Gain on insurance recoveries(2)                               (1,519)                 -                 (2,513)                       -
Loss on extinguishment of debt                                     -              1,356                    294                    1,356

Amortization of share-based compensation expense               3,578              3,643                  5,785                    5,938
Non-cash ground rent and straight-line rent expense               16                 33                     32                       51

Other non-recurring expenses(3)                                    -                 20                  1,292                       23

Adjusted EBITDA is attributable to common shares and unit holders

                                          $       88,623          $  27,388          $     138,569               $   23,738


(1)   During the three and six months ended June 30, 2021, the Company recorded
a $12.3 million impairment loss related to Marriott Charleston Town Center,
which was attributed to its net book value exceeding the undiscounted cash flows
over a shortened expected hold period.

(2)   During the three and six months ended June 30, 2022, the Company recorded
$1.5 million and $2.5 million, respectively, of insurance proceeds in excess of
recognized losses related to damage sustained at Loews New Orleans Hotel during
Hurricane Ida in August 2021. These gains on insurance recovery are included in
other income (loss) on the condensed consolidated statement of operations and
comprehensive income (loss) for the periods then ended.

(3) During the six months ended June 30, 2022the Company recorded repair and clean-up costs related to the hurricane of $1.3 million which is included in impairment and other losses in the condensed consolidated statement of income and comprehensive income for the period then ended.


The following is a reconciliation of net income (loss) to FFO and Adjusted FFO
attributable to common stock and unit holders for the three and six months ended
June 30, 2022 and 2021 (in thousands):

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                                                           Three Months Ended June 30,                 Six Months Ended June 30,
                                                             2022                  2021                2022                 2021
Net income (loss)                                      $       28,478      

($42,743) $23,001 ($100,720)
Adjustments: Depreciation charges related to investment properties

                                                     34,147             32,906                64,610              66,002
Impairment of investment properties(1)                              -             12,313                     -              12,313

FFO Attributable to Common Share and Unitholders $62,625

$2,476 $87,611 ($22,405)


Reconciliation to Adjusted FFO
Gain on insurance recoveries(2)                        $       (1,519)      

$- $(2,513) $ – Loss on extinguishment of debt

                                      -              1,356                   294               1,356

Loan related costs, net of adjustment related to
non-controlling interests(3)                                    1,331              1,558                 2,617               3,324
Amortization of share-based compensation expense                3,578              3,643                 5,785               5,938
Non-cash ground rent and straight-line rent expense                16                 33                    32                  51

Other non-recurring expenses(4)                                     -                 20                 1,292                  23

Adjusted FFO attributable to common shares and unitholders

                                                $       66,031       

$9,086 $95,118 ($11,713)



(1)   During the three and six months ended June 30, 2021, the Company recorded
a $12.3 million impairment loss related to Marriott Charleston Town Center,
which was attributed to its net book value exceeding the undiscounted cash flows
over a shortened expected hold period.

(2)   During the three and six months ended June 30, 2022, the Company recorded
$1.5 million and $2.5 million, respectively, of insurance proceeds in excess of
recognized losses related to damage sustained at Loews New Orleans Hotel during
Hurricane Ida in August 2021. These gains on insurance recovery are included in
other income (loss) on the condensed consolidated statement of operations and
comprehensive income (loss) for the periods then ended.

(3) Loan costs include amortization of debt premiums, discounts and deferred loan origination fees.

(4) During the six months ended June 30, 2022the Company recorded repair and clean-up costs related to the hurricane of $1.3 million which is included in impairment and other losses in the condensed consolidated statement of income and comprehensive income for the period then ended.

Use and Limitations of Non-GAAP Financial Measures


EBITDA, EBITDAre, Adjusted EBITDAre, FFO, and Adjusted FFO do not represent cash
generated from operating activities under GAAP and should not be considered as
alternatives to net income or loss, operating profit, cash flows from operations
or any other operating performance measure prescribed by GAAP. Although we
present and use EBITDA, EBITDAre, Adjusted EBITDAre, FFO and Adjusted FFO
because we believe they are useful to investors in evaluating and facilitating
comparisons of our operating performance between periods and between REITs that
report similar measures, the use of these non-GAAP measures has certain
limitations as analytical tools. These non-GAAP financial measures are not
measures of our liquidity, nor are they indicative of funds available to meet
our cash needs, including our ability to fund capital expenditures, contractual
commitments, working capital, service debt or make cash distributions. These
measurements do not reflect cash expenditures for long-term assets and other
items that we have incurred and will incur. These non-GAAP financial measures
may include funds that may not be available for discretionary use due to
functional requirements to conserve funds for capital expenditures, property
acquisitions, and other commitments and uncertainties. These non-GAAP financial
measures as presented may not be comparable to non-GAAP financial measures as
calculated by other real estate companies.

We compensate for these limitations by separately considering the impact of the
excluded items to the extent they are material to operating decisions or
assessments of our operating performance. Our reconciliations to the most
comparable GAAP financial measures, and our condensed consolidated statements of
operations and comprehensive income (loss), include interest expense, and other
excluded items, all of which should be considered when evaluating our
performance, as well as the usefulness of our non-GAAP financial measures. These
non-GAAP financial measures reflect additional ways of viewing our operations
that we believe, when viewed with our GAAP results and the reconciliations to
the corresponding GAAP financial measures, provide a more complete understanding
of factors and trends affecting our business than could be obtained absent this
disclosure. We strongly encourage investors to review our financial information
in its entirety and not to rely on a single financial measure.

Significant Accounting Policies and Estimates


The preparation of financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions that affect the reported amount of
assets and liabilities at the date of our financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual amounts may
differ significantly from these estimates

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and assumptions. We evaluate our estimates, assumptions and judgments to confirm
that they are reasonable and appropriate on an ongoing basis, based on
information that is then available to us as well as our experience relating to
various matters. All of our significant accounting policies, including certain
critical accounting policies, are disclosed in our Annual Report on Form 10-K
for the year ended December 31, 2021 and Note 2 in the accompanying condensed
consolidated financial statements included herein.

Seasonality


Demand in the lodging industry is affected by recurring seasonal patterns, which
are greatly influenced by overall economic cycles, the geographic locations of
the hotels and the customer mix at the hotels. The impact of the COVID-19
pandemic has and may continue to disrupt our historical seasonal patterns.

New accounting statements not yet implemented

See Note 2 to the accompanying condensed consolidated financial statements for additional information regarding recently issued accounting pronouncements.

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